Table of Contents
OMB APPROVAL |
OMB Number: 3235-0570 |
Expires: September 30, 2007 |
Estimated average burden |
hours per response: 19.4 |
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: October 31
Date of reporting period: October 31, 2007
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
![](https://capedge.com/proxy/N-CSR/0000950137-08-000175/c21990c2199004.gif)
Table of Contents
1 | ||||||||
2 | ||||||||
Expense Examples | 8 | |||||||
Report of Independent Registered Public Accounting Firm | 10 | |||||||
11 | ||||||||
36 | ||||||||
38 | ||||||||
39 | ||||||||
40 | ||||||||
46 | ||||||||
53 | ||||||||
Certifications | ||||||||
Certifications |
Mutual fund investing involves risk; principal loss is possible.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE |
Table of Contents
Message to Shareholders December 10, 2007
Dear Shareholders: | |
We invite you to take a few minutes to review the results of the fiscal year ended October 31, 2007. |
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 Chairperson of the Board First American Investment Funds, Inc. | Thomas S. Schreier, Jr. President First American Investment Funds, Inc. |
First American Funds 2007 Annual Report 1
Table of Contents
Equity Index Fund
Investment Objective: to provide investment results that correspond to the performance of the Standard & Poor’s
500 Index* (“S&P 500 Index”).
500 Index* (“S&P 500 Index”).
How did the fund perform for the fiscal year ended October 31, 2007?
The First American Equity Index Fund (the “fund”), Class Y shares, returned 14.22% for the fiscal year October 31, 2007 (Class A shares returned 13.93% without taking the sales charge into account). By comparison, the fund’s benchmark, the S&P 500 Index, returned 14.56% for the same period.
General economic and market conditions
Economic growth was generally below its long-term potential growth rate during the fiscal year as evidenced by the increase in the unemployment rate to 4.7% in October from 4.4% a year earlier. The subpar pace of domestic economic growth, along with significant credit market imbalances that developed in August and caused a broader tightening in financial market conditions, led the Federal Reserve to cut the Fed funds rate by 50 basis points on September 18 and another 25 basis points on October 31. Despite these rate cuts by the Fed, equity markets generally remained below the high levels reached earlier in the year, and then weakened significantly subsequent to year end. This weakness in the market corresponded with the reporting of third-quarter S&P earnings results, which showed the first year-over-year decline in operating earnings since the final quarter of 2001. Expectations for fourth-quarter earnings growth were lowered significantly as well, resulting in a challenging market environment as the new fiscal year began.
Fund Overview
The fund is invested to replicate the S&P 500 Index as closely as possible with consideration given to turnover costs and fees. As a result, the fund performed very similarly to the index. The index includes 500 leading companies in the major industries of the U.S. economy and covers about 75% of the dollar value of all traded stocks in the U.S. market.
The best-performing sectors during the fiscal year were energy, materials, and technology, having risen by 39%, 34%, and 27%, respectively. The only sector to post negative returns over the same period was financials, falling by 3%. Since the credit crisis that began in August, the overall consumer discretionary sector has fallen 0.5% with its constituent apparel and retailing industries falling 6% and 4%, respectively. Over the same three months technology firms have risen by 14.4%.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Top 10 Holdings as of October 31, 20071 (% of net assets)
Exxon Mobil | 3.8 | % | ||
General Electric | 3.1 | |||
Microsoft | 2.2 | |||
AT&T | 1.9 | |||
Procter & Gamble | 1.6 | |||
Bank of America | 1.6 | |||
Citigroup | 1.5 | |||
Cisco Systems | 1.5 | |||
Chevron | 1.4 | |||
Johnson & Johnson | 1.4 |
Sector Allocation as of October 31, 20071 (% of net assets)
Financials | 19.2% | |||
Information Technology | 17.0 | |||
Energy | 11.7 | |||
Healthcare | 11.5 | |||
Industrials | 11.4 | |||
Consumer Staples | 9.5 | |||
Consumer Discretionary | 9.0 | |||
Telecommunication Services | 3.6 | |||
Utilities | 3.3 | |||
Materials | 3.3 | |||
Short-Term Investments | 0.5 | |||
100.0% |
1 | Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security. |
2 First American Funds 2007 Annual Report
Table of Contents
Annual Performance1,2
October 31, 2007 | September 30, 2007* | |||||||||||||||||||||||||||||||||||||||
Since Inception | Since Inception | |||||||||||||||||||||||||||||||||||||||
1 year | 5 years | 10 years | 2/01/99 | 9/24/01 | 1 year | 5 years | 10 years | 2/01/99 | 9/24/01 | |||||||||||||||||||||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||||||||||||||||||||||||||
Class A | 7.67% | 11.97% | 5.90% | — | — | 9.38% | 13.52% | 5.38% | — | — | ||||||||||||||||||||||||||||||
Class B | 8.05% | 12.15% | 5.70% | — | — | 9.92% | 13.71% | 5.19% | — | — | ||||||||||||||||||||||||||||||
Class C | 12.09% | 12.40% | — | 2.55% | — | 13.92% | 13.93% | — | 2.39% | — | ||||||||||||||||||||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||||||||||||||||||||||||||
Class A | 13.93% | 13.25% | 6.50% | — | — | 15.77% | 14.81% | 5.98% | — | — | ||||||||||||||||||||||||||||||
Class B | 13.05% | 12.40% | 5.70% | — | — | 14.92% | 13.95% | 5.19% | — | — | ||||||||||||||||||||||||||||||
Class C | 13.09% | 12.40% | — | 2.55% | — | 14.92% | 13.93% | — | 2.39% | — | ||||||||||||||||||||||||||||||
Class R | 13.65% | 13.04% | — | — | 8.55% | 15.48% | 14.61% | — | — | 8.40% | ||||||||||||||||||||||||||||||
Class Y | 14.22% | 13.53% | 6.77% | — | — | 16.07% | 15.08% | 6.24% | — | — | ||||||||||||||||||||||||||||||
S&P 500 Index3 | 14.56% | 13.88% | 7.10% | 3.93% | 9.29% | 16.44% | 15.45% | 6.57% | 3.78% | 9.14% |
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
1 | Mutual fund investing involves risk; principal loss is possible. Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 5.50% for Class A shares and the contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV. | |
Performance reflects contractual fee waivers in effect during the periods indicated. In the absence of such fee waivers, total returns would be reduced. | |
As of the most recent prospectus, the fund’s total annual operating expense ratio for Class A, Class B, Class C, Class R, and Class Y shares was 0.76%, 1.51%, 1.51%, 1.01%, and 0.51%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through June 30, 2008 so that total annual fund operating expenses for Class A, Class B, Class C, Class R, and Class Y shares do not exceed 0.62%, 1.37%, 1.37%, 0.87%, and 0.37%, respectively. These fee waivers and expense reimbursements may be terminated at any time after June 30, 2008, at the discretion of the advisor. Prior to that time, such waivers and reimbursements may not be terminated without the approval of the fund’s board of directors. |
Value of $10,000 Investment1,2,4 as of October 31, 2007
First American Equity Index Fund, Class A (NAV) | $ | 18,772 | ||||||
First American Equity Index Fund, Class A (POP) | - - - - | $ | 17,737 | |||||
S&P 500 Index3 | $ | 19,860 | ||||||
The chart at right, illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 10/31/1997 to 10/31/2007) as compared to the S&P 500 Index3. |
![(LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950137-08-000175/c21990c2199001.gif)
* | This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period. |
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
3 | An unmanaged, market capitalization-weighted index based on the average weighted performance of 500 widely held large-cap common stocks. |
4 | Performance for Class B, Class C, Class R, and Class Y shares is not presented. Performance for these classes will vary due to the different expense structures. |
First American Funds 2007 Annual Report 3
Table of Contents
Mid Cap Index Fund
Investment Objective: to provide investment results that correspond to the performance of the Standard & Poor’s MidCap 400 Index* (“S&P MidCap 400 Index”).
How did the fund perform for the fiscal year ended October 31, 2007?
The First American Mid Cap Index Fund (the “fund”), Class Y shares, returned 16.52% for the fiscal year ended October 31, 2007 (Class A shares returned 16.32% without taking the sales charge into account). By comparison, the fund’s benchmark, the S&P MidCap 400 Index, returned 17.02% for the same period.
General economic and market conditions
Economic growth was generally below its long-term potential growth rate during the fiscal year as evidenced by the increase in the unemployment rate to 4.7% in October from 4.4% a year earlier. The subpar pace of domestic economic growth, along with significant credit market imbalances that developed in August and caused a broader tightening in financial market conditions, led the Federal Reserve to cut the Fed funds rate by 50 basis points on September 18 and another 25 basis points on October 31. Despite these rate cuts by the Fed, equity markets generally remained below the high levels reached earlier in the year, and then weakened significantly subsequent to year end. This weakness in the market corresponded with the reporting of third-quarter S&P earnings results, which showed the first year-over-year decline in operating earnings since the final quarter of 2001. Expectations for fourth-quarter earnings growth were lowered significantly as well, resulting in a challenging market environment as the new fiscal year began.
Fund Overview
The fund is invested to replicate the S&P MidCap 400 Index as closely as possible with consideration given to turnover costs and fees. As a result, the fund performed very similarly to the index. The index includes stocks that reflect the risk and return characteristics of the broader mid-cap universe. Mid-cap stocks are now being recognized as an independent asset class and the capitalization range of this index covers about 10% of the U.S. equities market.
The best-performing sectors during the fiscal year were energy, materials, and telecommunications, having risen by 43%, 37%, and 33%, respectively. The only sector to post negative returns over the same period was financials, falling by 1.5%. A large portion of the financial sector’s performance can be explained by the 16% decline in the mid-cap banking industry.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Top 10 Holdings as of October 31, 20071 (% of net assets)
First American Prime Obligations Fund, Class Z | 7.2 | % | ||
Intuitive Surgical | 0.9 | |||
Lyondell Chemical | 0.9 | |||
Cameron International | 0.8 | |||
Gamestop, Class A | 0.7 | |||
Southwestern Energy | 0.7 | |||
Harris | 0.6 | |||
Amphenol, Class A | 0.6 | |||
FMC Technologies | 0.6 | |||
Hologic | 0.6 |
Sector Allocation as of October 31, 20071 (% of net assets)
Industrials | 14.2 | % | ||
Information Technology | 14.2 | |||
Financials | 13.5 | |||
Consumer Discretionary | 12.5 | |||
Healthcare | 11.4 | |||
Energy | 8.6 | |||
Materials | 7.3 | |||
Utilities | 7.0 | |||
Consumer Staples | 2.9 | |||
Telecommunication Services | 0.9 | |||
Short-Term Investments | 7.4 | |||
Other Assets and Liabilities, Net2 | 0.1 | |||
100.0 | % |
1 | Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security. |
2 | Investments in securities typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
4 First American Funds 2007 Annual Report
Table of Contents
Annual Performance1,2
October 31, 2007 | September 30, 2007* | |||||||||||||||||||||||||||||||||||||||
Since Inception | Since Inception | |||||||||||||||||||||||||||||||||||||||
1 year | 5 years | 11/04/99 | 11/27/00 | 9/24/01 | 1 year | 5 years | 11/04/99 | 11/27/00 | 9/24/01 | |||||||||||||||||||||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||||||||||||||||||||||||||
Class A | 9.92% | 15.64% | 9.89% | — | — | 11.48% | 16.00% | 9.65% | — | — | ||||||||||||||||||||||||||||||
Class B | 10.41% | 15.88% | 9.87% | — | — | 12.08% | 16.24% | 9.64% | — | — | ||||||||||||||||||||||||||||||
Class C | 14.39% | 16.10% | — | — | 13.20% | 16.14% | 16.46% | — | — | 12.92% | ||||||||||||||||||||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||||||||||||||||||||||||||
Class A | 16.32% | 16.97% | 10.67% | — | — | 18.00% | 17.33% | 10.43% | — | — | ||||||||||||||||||||||||||||||
Class B | 15.41% | 16.10% | 9.87% | — | — | 17.08% | 16.46% | 9.64% | — | — | ||||||||||||||||||||||||||||||
Class C | 15.39% | 16.10% | — | — | 13.20% | 17.14% | 16.46% | — | — | 12.92% | ||||||||||||||||||||||||||||||
Class R | 16.01% | 16.76% | — | 9.04% | — | 17.60% | 17.13% | — | 8.74% | — | ||||||||||||||||||||||||||||||
Class Y | 16.52% | 17.26% | 10.94% | — | — | 18.28% | 17.63% | 10.70% | — | — | ||||||||||||||||||||||||||||||
S&P MidCap 400 Index3 | 17.02% | 17.78% | 11.74% | 10.11% | 14.89% | 18.76% | 18.17% | 11.51% | 9.82% | 14.62% |
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
1 | Stocks of mid-capitalization companies may be slightly less volatile than those of small-capitalization companies, but they still involve substantial risk and may be subject to increased volatility and more price fluctuation than large-capitalization companies. |
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. | |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 5.50% for Class A shares and the contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV. | |
Performance reflects contractual fee waivers in effect during the periods indicated. In the absence of such fee waivers, total returns would be reduced. | |
As of the most recent prospectus, the fund’s total annual operating expense ratio for Class A, Class B, Class C, Class R, and Class Y shares was 0.81%, 1.56%, 1.56%, 1.06%, and 0.56%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least June 30, 2008 so that total annual fund operating expenses for Class A, Class B, Class C, Class R, and Class Y shares do not exceed 0.75%, 1.50%, 1.50%, 1.00%, and 0.50%, respectively. These fee waivers and expense reimbursements may be terminated at any time after June 30, 2008, at the discretion of the advisor. Prior to that time, such waivers and reimbursements may not be terminated without the approval of the fund’s board of directors. |
Value of 10,000 Investment1,2,4 as of October 31, 2007
First American Mid Cap Index Fund, Class A (NAV) | $ | 22,487 | ||||||
First American Mid Cap Index Fund, Class A (POP) | - - - - | $ | 21,254 | |||||
S&P MidCap 400 Index3 | $ | 24,281 | ||||||
The chart at right, illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 11/04/1999 to 10/31/2007) as compared to the S&P MidCap 400 Index3. |
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950137-08-000175/c21990c2199002.gif)
* | This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period. |
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
3 | An unmanaged, market value-weighted index of 400 mid-cap companies. |
4 | Performance for Class B, Class C, Class R, and Class Y shares is not presented. Performance for these classes will vary due to the different expense structures. |
First American Funds 2007 Annual Report 5
Table of Contents
Small Cap Index Fund
Investment Objective: to provide investment results that correspond to the performance of the Russell 2000 Index*.
How did the fund perform for the fiscal year ended October 31, 2007?
The First American Small Cap Index Fund (the “fund”), Class Y shares, returned 8.84% for the fiscal year ended October 31, 2007 (Class A shares returned 8.56% without taking the sales charge into account). By comparison, the fund’s benchmark, the Russell 2000 Index, returned 9.27% for the same period.
General economic and market conditions
Economic growth was generally below its long-term potential growth rate during the fiscal year as evidenced by the increase in the unemployment rate to 4.7% in October from 4.4% a year earlier. The subpar pace of domestic economic growth, along with significant credit market imbalances that developed in August and caused a broader tightening in financial market conditions, led the Federal Reserve to cut the Fed funds rate by 50 basis points on September 18 and another 25 basis points on October 31. Despite these rate cuts by the Fed, equity markets generally remained below the high levels reached earlier in the year, and then weakened significantly subsequent to year end. This weakness in the market corresponded with the reporting of third-quarter S&P earnings results, which showed the first year-over-year decline in operating earnings since the final quarter of 2001. Expectations for fourth-quarter earnings growth were lowered significantly as well, resulting in a challenging market environment as the new fiscal year began.
Fund Overview
The fund is invested to replicate the Russell 2000 Index as closely as possible with consideration given to turnover costs and fees. The index includes the traded shares of U.S. companies ranked 1,001 through 3,000 in size, thereby skipping large- and mid-capitalization names in the list of investable companies.
The best-performing sectors during the fiscal year were materials and energy, having risen by 42% and 21%, respectively. The two sectors to post negative returns over the same period were financials and consumer discretionary, falling by 10% and 1%, respectively. Since the credit crisis that began in August, the consumer discretionary sector has fallen 0.7%, with the retailing and media industries falling 6% and 4%, respectively. Over the same three months healthcare companies rose by 14%.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Top 10 Holdings as of October 31, 20071 (% of net assets)
Hologic | 0.6% | |||
First American Prime Obligations Fund, Class Z | 0.6 | |||
Exterran Holdings | 0.4 | |||
CF Industries Holdings | 0.4 | |||
FLIR Systems | 0.3 | |||
U.S. Treasury Bill, 3.813%, 01/24/2008 | 0.3 | |||
Chipotle Mexican Grill, Class B | 0.3 | |||
Equinix | 0.3 | |||
Sotheby’s Holdings, Class A | 0.3 | |||
Priceline.com | 0.3 |
Sector Allocation as of October 31, 20071 (% of net assets)
Financials | 19.0% | |||
Information Technology | 18.5 | |||
Industrials | 15.2 | |||
Consumer Discretionary | 14.4 | |||
Healthcare | 13.4 | |||
Energy | 5.8 | |||
Materials | 5.5 | |||
Consumer Staples | 2.9 | |||
Utilities | 2.8 | |||
Telecommunication Services | 1.6 | |||
Short-Term Investments | 0.9 | |||
100.0% |
1 | Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security. |
6 First American Funds 2007 Annual Report
Table of Contents
Annual Performance1,2
October 31, 2007 | September 30, 2007* | |||||||||||||||||||||||||||||||||||||||
Since Inception | Since Inception | |||||||||||||||||||||||||||||||||||||||
1 year | 5 years | 12/30/98 | 12/11/00 | 9/24/01 | 1 year | 5 years | 12/30/98 | 12/11/00 | 9/24/01 | |||||||||||||||||||||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||||||||||||||||||||||||||
Class A | 2.61% | 16.36% | 8.81% | — | — | 5.52% | 16.40% | 8.56% | — | — | ||||||||||||||||||||||||||||||
Class B | 3.07% | 16.49% | — | 8.23% | — | 5.94% | 16.58% | — | 7.91% | — | ||||||||||||||||||||||||||||||
Class C | 6.83% | 16.73% | — | — | 12.13% | 9.85% | 16.80% | — | — | 11.81% | ||||||||||||||||||||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||||||||||||||||||||||||||
Class A | 8.56% | 17.68% | 9.51% | — | — | 11.64% | 17.73% | 9.26% | — | — | ||||||||||||||||||||||||||||||
Class B | 7.78% | 16.71% | — | 8.23% | — | 10.78% | 16.80% | — | 7.91% | — | ||||||||||||||||||||||||||||||
Class C | 7.78% | 16.73% | — | — | 12.13% | 10.82% | 16.80% | — | — | 11.81% | ||||||||||||||||||||||||||||||
Class R | 8.34% | 17.37% | 9.30% | — | — | 11.38% | 17.44% | 9.05% | — | — | ||||||||||||||||||||||||||||||
Class Y | 8.84% | 17.91% | 9.72% | — | — | 11.93% | 17.96% | 9.47% | — | — | ||||||||||||||||||||||||||||||
Russell 2000 Index3 | 9.27% | 18.67% | 9.59% | 9.37% | 14.35% | 12.34% | 18.75% | 9.34% | 9.04% | 14.03% |
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
1 | Stocks of small-capitalization companies involve substanital risk. These stocks historically have experienced greater price volatility than stocks of larger companies, and they may be expected to do so in the future. |
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. | |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 5.50% for Class A shares and the contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV. | |
Performance reflects contractual fee waivers in effect during the periods indicated. In the absence of such fee waivers, total returns would be reduced. | |
As of the most recent prospectus, the fund’s total annual operating expense ratio (including acquired fund fees and expenses, which the fund indirectly bears before waivers) for Class A, Class B, Class C, Class R, and Class Y shares was 1.11%, 1.86%, 1.86%, 1.36%, and 0.86%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least June 30, 2008 so that total annual fund operating expenses (net of acquired fund fees and expenses) for Class A, Class B, Class C, Class R, and Class Y shares do not exceed 0.83%, 1.58%, 1.58%, 1.08%, and 0.58%, respectively. These fee waivers and expense reimbursements may be terminated at any time after June 30, 2008, at the discretion of the advisor. Prior to that time, such waivers and reimbursements may not be terminated without the approval of the fund’s board of directors. |
Value of 10,000 Investment1,2,4 as of October 31, 2007
First American Small Cap Index Fund, Class A (NAV) | $ | 22,310 | ||||||
First American Small Cap Index Fund, Class A (POP) | - - - - | $ | 21,087 | |||||
Russell 2000 Index3 | $ | 22,465 | ||||||
The chart at right, illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 12/30/1998 to 10/31/2007) as compared to the Russell 2000 Index3. |
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950137-08-000175/c21990c2199003.gif)
* | This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period. |
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
On September 24, 2001, the Small Cap Index Fund became the successor by merger to the Firstar Small Cap Index Fund, a serier of Firstar Funds, Inc. Prior to the merger, the First American Fund had no assets or liabilities. Performance presented prior to September 24, 2001, represents that of the Firstar Small Cap Index Fund. The Firstar Small Cap Index Fund was organized on December 11, 2000, and, prior to that, was a separate series of Mercantile Mutual Funds, Inc. |
3 | An unmanaged index that measures the performance of the 2,000 smallest companies in the Russell 3000 Index. |
4 | Performance for Class B, Class C, Class R, and Class Y shares is not presented. Performance for these classes will vary due to the different expense structures. |
First American Funds 2007 Annual Report 7
Table of Contents
Expense Examples
As a shareholder of one or more of the funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. The examples below are intended to help you understand your ongoing costs (in dollars) of investing in the funds and to compare these costs with the ongoing costs of investing in other mutual funds. The examples are based on an investment of $1,000 invested in a fund at the beginning of the period and held for the entire period from May 1, 2007 to October 31, 2007.
Actual Expenses
For each class of each fund, two lines are presented in the table below — the first line for each class provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular fund and class, to estimate the expenses that you paid over the period. Simply divide your account value in the fund and class by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” for your fund and class to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
For each class of each fund, the second line for each class provides information about hypothetical account values and hypothetical expenses based on the respective fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical examples with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the tables for each class of each fund is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Equity Index Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (5/01/07 to | ||||||||||
Value (5/01/07) | Value (10/31/07) | 10/31/07) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 1,052.50 | $ | 3.21 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.08 | $ | 3.16 | ||||||
Class B Actual2 | $ | 1,000.00 | $ | 1,048.40 | $ | 7.07 | ||||||
Class B Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.30 | $ | 6.97 | ||||||
Class C Actual2 | $ | 1,000.00 | $ | 1,048.40 | $ | 7.07 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.30 | $ | 6.97 | ||||||
Class R Actual2 | $ | 1,000.00 | $ | 1,051.00 | $ | 4.50 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.82 | $ | 4.43 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 1,053.90 | $ | 1.92 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,023.34 | $ | 1.89 |
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.62%, 1.37%, 1.37%, 0.87%, and 0.37% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
2 | Based on the actual returns for the six-month period ended October 31, 2007 of 5.25%, 4.84%, 4.84%, 5.10%, and 5.39% for Class A, Class B, Class C, Class R, and Class Y, respectively. |
8 First American Funds 2007 Annual Report
Table of Contents
Expense Examples concluded
Mid Cap Index Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (5/01/07 to | ||||||||||
Value (5/01/07) | Value (10/31/07) | 10/31/07) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 1,041.90 | $ | 3.81 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.48 | $ | 3.77 | ||||||
Class B Actual2 | $ | 1,000.00 | $ | 1,037.80 | $ | 7.65 | ||||||
Class B Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.69 | $ | 7.58 | ||||||
Class C Actual2 | $ | 1,000.00 | $ | 1,037.70 | $ | 7.65 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.69 | $ | 7.58 | ||||||
Class R Actual2 | $ | 1,000.00 | $ | 1,040.90 | $ | 5.09 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.21 | $ | 5.04 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 1,043.20 | $ | 2.52 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.74 | $ | 2.50 |
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.74%, 1.49%, 1.49%, 0.99%, and 0.49% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
2 | Based on the actual returns for the six-month period ended October 31, 2007 of 4.19%, 3.78%, 3.77%, 4.09%, and 4.32% for Class A, Class B, Class C, Class R, and Class Y, respectively. |
Small Cap Index Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period3 (5/01/07 to | ||||||||||
Value (5/01/07) | Value (10/31/07) | 10/31/07) | ||||||||||
Class A Actual4 | $ | 1,000.00 | $ | 1,019.70 | $ | 4.17 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.07 | $ | 4.18 | ||||||
Class B Actual4 | $ | 1,000.00 | $ | 1,015.90 | $ | 7.98 | ||||||
Class B Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.29 | $ | 7.98 | ||||||
Class C Actual4 | $ | 1,000.00 | $ | 1,016.40 | $ | 7.98 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.29 | $ | 7.98 | ||||||
Class R Actual4 | $ | 1,000.00 | $ | 1,018.40 | $ | 5.49 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.76 | $ | 5.50 | ||||||
Class Y Actual4 | $ | 1,000.00 | $ | 1,021.00 | $ | 2.90 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.33 | $ | 2.91 |
3 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.82%, 1.57%, 1.57%, 1.08%, and 0.57% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
4 | Based on the actual returns for the six-month period ended October 31, 2007 of 1.97%, 1.59%, 1.64%, 1.84%, and 2.10% for Class A, Class B, Class C, Class R, and Class Y, respectively. |
First American Funds 2007 Annual Report 9
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 Equity Index, Mid Cap Index, and Small Cap Index funds (series of First American Investment Funds, Inc.) (the “funds”) as of October 31, 2007, and 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 designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2007, by correspondence with the custodian and brokers, or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the funds listed above of First American Investment Funds, Inc. at October 31, 2007, the results of their operations, changes in their net assets, and their financial highlights for the periods indicated therein in conformity with U.S. generally accepted accounting principles.
![-s- Ernst & Young LLP](https://capedge.com/proxy/N-CSR/0000950137-08-000175/c21990ernstyo.gif)
Minneapolis, Minnesota
December 19, 2007
10 First American Funds 2007 Annual Report
Table of Contents
Schedule of Investments October 31, 2007, all dollars are rounded to thousands (000)
Equity Index Fund | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Common Stocks – 99.5% | ||||||||
Consumer Discretionary – 9.0% | ||||||||
Abercrombie & Fitch, Class A (a) | 12,558 | $ | 995 | |||||
Amazon.com (a) (b) | 44,612 | 3,977 | ||||||
Apollo Group, Class A (a) (b) | 20,735 | 1,643 | ||||||
Autonation (a) (b) | 23,956 | 424 | ||||||
Autozone (a) (b) | 7,711 | 959 | ||||||
Bed Bath & Beyond (b) | 42,507 | 1,443 | ||||||
Best Buy (a) | 59,004 | 2,863 | ||||||
Big Lots (a) (b) | 16,310 | 391 | ||||||
Black & Decker (a) | 9,408 | 846 | ||||||
Brunswick (a) | 13,279 | 296 | ||||||
Carnival (a) | 61,090 | 2,931 | ||||||
CBS, Class B (a) | 110,291 | 3,165 | ||||||
Centex | 18,278 | 458 | ||||||
Circuit City Stores | 24,406 | 194 | ||||||
Clear Channel Communications | 66,765 | 2,522 | ||||||
Coach (b) | 53,839 | 1,968 | ||||||
Comcast, Class A (a) (b) | 451,177 | 9,497 | ||||||
D.R. Horton | 39,576 | 502 | ||||||
Darden Restaurants | 19,126 | 822 | ||||||
Dillard’s, Class A (a) | 8,726 | 201 | ||||||
DIRECTV Group (b) | 111,262 | 2,946 | ||||||
Dow Jones & Company | 9,431 | 564 | ||||||
E.W. Scripps, Class A (a) | 10,871 | 489 | ||||||
Eastman Kodak | 40,327 | 1,156 | ||||||
Expedia (b) | 29,583 | 966 | ||||||
Family Dollar Stores (a) | 22,025 | 558 | ||||||
Ford Motor (a) (b) | 297,824 | 2,642 | ||||||
Fortune Brands | 20,313 | 1,702 | ||||||
Gannett (a) | 34,042 | 1,444 | ||||||
Gap (a) | 77,973 | 1,474 | ||||||
General Motors (a) | 82,160 | 3,220 | ||||||
Genuine Parts (a) | 24,606 | 1,207 | ||||||
Goodyear Tire & Rubber (a) (b) | 29,788 | 898 | ||||||
H&R Block (a) | 47,484 | 1,035 | ||||||
Harley-Davidson (a) | 36,381 | 1,874 | ||||||
Harman International Industries | 8,850 | 745 | ||||||
Harrah’s Entertainment (a) | 26,922 | 2,376 | ||||||
Hasbro | 22,421 | 669 | ||||||
Home Depot (a) | 218,031 | 6,870 | ||||||
IAC/ InterActiveCorp (a) (b) | 31,532 | 929 | ||||||
International Game Technology (a) | 47,671 | 2,079 | ||||||
Interpublic Group of Companies (a) (b) | 59,333 | 614 | ||||||
J.C. Penney (a) | 32,215 | 1,812 | ||||||
Johnson Controls | 85,419 | 3,735 | ||||||
Jones Apparel Group (a) | 16,698 | 350 | ||||||
KB HOME | 11,106 | 307 | ||||||
Kohl’s (a) (b) | 43,758 | 2,405 | ||||||
Leggett & Platt (a) | 26,139 | 508 | ||||||
Lennar | 20,194 | 461 | ||||||
Limited Brands (a) | 49,408 | 1,087 | ||||||
Liz Claiborne (a) | 15,171 | 432 | ||||||
Lowe’s (a) | 219,642 | 5,906 | ||||||
Macy’s | 66,329 | 2,124 | ||||||
Marriott International, Class A (a) | 46,545 | 1,913 | ||||||
Mattel (a) | 57,491 | 1,201 | ||||||
McDonald’s | 172,291 | 10,286 | ||||||
McGraw-Hill (a) | 54,772 | 2,741 | ||||||
New York Times, Class A (a) | 20,546 | 402 | ||||||
Newell Rubbermaid (a) | 38,557 | 1,124 | ||||||
News | 336,133 | 7,284 | ||||||
Nike, Class B (a) | 53,815 | 3,566 | ||||||
Nordstrom (a) | 28,650 | 1,130 | ||||||
Office Depot (a) (b) | 39,901 | 749 | ||||||
Officemax (a) | 9,922 | 314 | ||||||
Omnicom Group (a) | 51,589 | 2,630 | ||||||
Polo Ralph Lauren (a) | 8,844 | $ | 608 | |||||
Pulte Homes (a) | 30,763 | 457 | ||||||
RadioShack (a) | 19,954 | 411 | ||||||
Sears (a) (b) | 11,598 | 1,563 | ||||||
Sherwin-Williams (a) | 17,473 | 1,117 | ||||||
Snap-On | 8,307 | 415 | ||||||
Stanley Works (a) | 11,497 | 662 | ||||||
Staples | 103,748 | 2,421 | ||||||
Starbucks (a) (b) | 107,224 | 2,861 | ||||||
Starwood Hotels & Resorts Worldwide (a) | 30,168 | 1,715 | ||||||
Target | 122,613 | 7,524 | ||||||
Tiffany & Company | 21,105 | 1,143 | ||||||
Time Warner (a) | 546,289 | 9,975 | ||||||
TJX | 61,801 | 1,788 | ||||||
Tribune | 12,196 | 369 | ||||||
VF | 12,436 | 1,084 | ||||||
Viacom, Class B (a) (b) | 102,914 | 4,249 | ||||||
Walt Disney (a) | 283,761 | 9,827 | ||||||
Wendy’s International | 12,592 | 438 | ||||||
Whirlpool (a) | 11,121 | 881 | ||||||
Wyndham Worldwide | 29,358 | 964 | ||||||
Yum! Brands | 77,818 | 3,134 | ||||||
178,627 | ||||||||
Consumer Staples – 9.5% | ||||||||
Altria Group (a) | 303,523 | 22,136 | ||||||
Anheuser-Busch | 110,085 | 5,645 | ||||||
Archer-Daniels-Midland | 93,304 | 3,338 | ||||||
Avon Products (a) | 67,813 | 2,779 | ||||||
Brown-Forman, Class B | 10,972 | 812 | ||||||
Campbell Soup | 25,692 | 950 | ||||||
Clorox | 21,308 | 1,333 | ||||||
Coca-Cola Enterprises (a) | 31,901 | 823 | ||||||
Coca-Cola | 293,262 | 18,112 | ||||||
Colgate-Palmolive (a) | 73,401 | 5,598 | ||||||
ConAgra Foods | 75,441 | 1,790 | ||||||
Constellation Brands, Class A (a) (b) | 27,356 | 687 | ||||||
Costco Wholesale (a) | 65,558 | 4,409 | ||||||
CVS | 219,365 | 9,163 | ||||||
Dean Foods (a) | 18,760 | 521 | ||||||
Estee Lauder, Class A (a) | 10,727 | 471 | ||||||
General Mills | 46,309 | 2,673 | ||||||
H.J. Heinz | 47,511 | 2,223 | ||||||
Hershey Foods (a) | 25,795 | 1,112 | ||||||
Kellogg | 36,532 | 1,929 | ||||||
Kimberly-Clark | 61,554 | 4,364 | ||||||
Kraft Foods, Class A | 223,548 | 7,469 | ||||||
Kroger (a) | 102,681 | 3,018 | ||||||
McCormick | 19,027 | 666 | ||||||
Molson Coors Brewing | 13,666 | 782 | ||||||
Pepsi Bottling (a) | 19,623 | 845 | ||||||
PepsiCo | 238,400 | 17,575 | ||||||
Procter & Gamble | 453,089 | 31,499 | ||||||
Reynolds American (a) | 24,705 | 1,592 | ||||||
Safeway | 63,588 | 2,162 | ||||||
Sara Lee | 107,835 | 1,784 | ||||||
SUPERVALU | 29,990 | 1,162 | ||||||
Sysco | 94,213 | 3,231 | ||||||
Tyson Foods, Class A | 35,820 | 566 | ||||||
UST (a) | 23,204 | 1,237 | ||||||
Walgreen | 143,349 | 5,684 | ||||||
Wal-Mart Stores | 347,627 | 15,716 | ||||||
Whole Foods Market (a) | 20,401 | 1,011 | ||||||
Wrigley, William Jr. (a) | 29,158 | 1,798 | ||||||
188,665 | ||||||||
First American Funds 2007 Annual Report 11
Table of Contents
Schedule of Investments October 31, 2007, all dollars are rounded to thousands (000)
Equity Index Fund (continued) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Energy – 11.7% | ||||||||
Anadarko Petroleum | 68,472 | $ | 4,041 | |||||
Apache | 47,420 | 4,923 | ||||||
Baker Hughes | 48,747 | 4,227 | ||||||
BJ Services (a) | 42,699 | 1,075 | ||||||
Chesapeake Energy (a) | 59,090 | 2,333 | ||||||
Chevron (a) | 310,160 | 28,383 | ||||||
ConocoPhillips | 236,262 | 20,073 | ||||||
Consol Energy | 26,405 | 1,492 | ||||||
Devon Energy | 65,622 | 6,129 | ||||||
El Paso (a) | 101,053 | 1,785 | ||||||
ENSCO International (a) | 21,036 | 1,167 | ||||||
EOG Resources (a) | 34,611 | 3,066 | ||||||
Exxon Mobil | 810,010 | 74,513 | ||||||
Halliburton | 135,754 | 5,351 | ||||||
Hess (a) | 39,376 | 2,820 | ||||||
Marathon Oil (a) | 100,771 | 5,959 | ||||||
Murphy Oil | 25,339 | 1,866 | ||||||
Nabors Industries (a) (b) | 42,034 | 1,180 | ||||||
National-Oilwell Varco (a) (b) | 51,068 | 3,740 | ||||||
Noble Energy | 13,300 | 1,018 | ||||||
Noble | 39,866 | 2,111 | ||||||
Occidental Petroleum | 119,131 | 8,226 | ||||||
Peabody Energy | 38,454 | 2,144 | ||||||
Rowan (a) | 15,719 | 613 | ||||||
Schlumberger (a) | 166,622 | 16,091 | ||||||
Smith International (a) | 28,309 | 1,870 | ||||||
Spectra Energy (a) | 85,476 | 2,221 | ||||||
Sunoco | 17,527 | 1,290 | ||||||
Tesoro (a) | 19,841 | 1,201 | ||||||
Transocean (a) (b) | 41,584 | 4,964 | ||||||
Valero Energy | 79,226 | 5,580 | ||||||
Weatherford International (b) | 48,714 | 3,162 | ||||||
Williams | 86,423 | 3,153 | ||||||
XTO Energy | 55,325 | 3,672 | ||||||
231,439 | ||||||||
Financials – 19.2% | ||||||||
ACE | 44,105 | 2,673 | ||||||
AFLAC (a) | 70,970 | 4,455 | ||||||
Allstate (a) | 87,656 | 4,593 | ||||||
Ambac Financial Group | 15,509 | 571 | ||||||
American Capital Strategies (a) | 25,478 | 1,106 | ||||||
American Express | 175,895 | 10,721 | ||||||
American International Group | 370,750 | 23,402 | ||||||
Ameriprise Financial | 33,191 | 2,090 | ||||||
AON | 46,322 | 2,099 | ||||||
Apartment Investment & Management – REIT (a) | 14,017 | 655 | ||||||
Assurant | 14,320 | 837 | ||||||
Avalonbay Communities – REIT (a) | 11,493 | 1,410 | ||||||
Bank of America | 640,423 | 30,920 | ||||||
Bank Of New York Mellon (a) | 164,279 | 8,025 | ||||||
BB&T (a) | 76,759 | 2,838 | ||||||
Bear Stearns (a) | 17,179 | 1,952 | ||||||
Boston Properties – REIT (a) | 17,173 | 1,861 | ||||||
Capital One Financial | 59,985 | 3,934 | ||||||
CB Richard Ellis Group (a) (b) | 27,059 | 660 | ||||||
Charles Schwab | 133,480 | 3,102 | ||||||
Chubb | 51,649 | 2,755 | ||||||
Cincinnati Financial | 22,343 | 889 | ||||||
CIT Group (a) | 28,696 | 1,011 | ||||||
Citigroup | 723,157 | 30,300 | ||||||
CME Group | 7,069 | 4,710 | ||||||
Comerica (a) | 23,547 | 1,099 | ||||||
Commerce Bancorp (a) | 26,165 | 1,066 | ||||||
Countrywide Financial | 85,066 | 1,320 | ||||||
Developers Diversified Realty – REIT (a) | 18,031 | 909 | ||||||
Discover Financial Services | 70,961 | 1,370 | ||||||
E*TRADE Financial (a) (b) | 61,138 | $ | 681 | |||||
Equity Residential Properties Trust – REIT (a) | 41,980 | 1,754 | ||||||
Fannie Mae | 136,892 | 7,808 | ||||||
Federated Investors, Class B | 11,897 | 512 | ||||||
Fifth Third Bancorp (a) | 78,500 | 2,455 | ||||||
First Horizon National (a) | 17,763 | 463 | ||||||
Franklin Resources (a) | 23,776 | 3,083 | ||||||
Freddie Mac | 96,613 | 5,046 | ||||||
General Growth Properties – REIT (a) | 35,368 | 1,923 | ||||||
Genworth Financial, Class A (a) | 63,884 | 1,744 | ||||||
Goldman Sachs Group | 58,947 | 14,614 | ||||||
Hartford Financial Services Group (a) | 40,685 | 3,948 | ||||||
Host Hotels & Resorts – REIT (a) | 75,639 | 1,676 | ||||||
Hudson City Bancorp | 68,025 | 1,065 | ||||||
Huntington Bancshares (a) | 52,722 | 944 | ||||||
IntercontinentalExchange (a) (b) | 10,047 | 1,790 | ||||||
JPMorgan Chase | 502,564 | 23,621 | ||||||
Janus Capital Group (a) | 25,308 | 873 | ||||||
KeyCorp (a) | 57,939 | 1,648 | ||||||
Kimco Realty – REIT (a) | 36,530 | 1,517 | ||||||
Legg Mason | 17,721 | 1,470 | ||||||
Lehman Brothers Holdings (a) | 76,620 | 4,853 | ||||||
Leucadia National | 23,755 | 1,203 | ||||||
Lincoln National | 43,079 | 2,687 | ||||||
Loew’s | 64,325 | 3,158 | ||||||
M&T Bank (a) | 11,354 | 1,129 | ||||||
Marsh & McLennan (a) | 74,356 | 1,925 | ||||||
Marshall & Ilsley (a) | 37,393 | 1,597 | ||||||
MBIA (a) | 19,093 | 822 | ||||||
Merrill Lynch | 125,668 | 8,297 | ||||||
MetLife | 107,590 | 7,408 | ||||||
MGIC Investment | 14,465 | 280 | ||||||
Moody’s (a) | 32,085 | 1,403 | ||||||
Morgan Stanley (a) | 153,632 | 10,333 | ||||||
National City (a) | 83,090 | 2,015 | ||||||
Northern Trust | 26,187 | 1,970 | ||||||
NYSE Euronext (a) | 38,133 | 3,580 | ||||||
Plum Creek Timber – REIT (a) | 26,383 | 1,179 | ||||||
PNC Financial Services (a) | 49,776 | 3,592 | ||||||
Principal Financial Group | 43,585 | 2,949 | ||||||
Progressive (a) | 114,543 | 2,119 | ||||||
Prologis – REIT (a) | 37,030 | 2,657 | ||||||
Prudential Financial (a) | 67,480 | 6,527 | ||||||
Public Storage – REIT (a) | 17,705 | 1,434 | ||||||
Regions Financial (a) | 104,435 | 2,832 | ||||||
SAFECO | 18,030 | 1,044 | ||||||
Simon Property Group – REIT (a) | 32,238 | 3,356 | ||||||
SLM | 59,025 | 2,784 | ||||||
Sovereign Bancorp | 53,740 | 775 | ||||||
State Street (a) | 57,558 | 4,591 | ||||||
SunTrust Banks | 48,271 | 3,504 | ||||||
Synovus Financial | 41,706 | 1,099 | ||||||
T. Rowe Price Group (a) | 35,295 | 2,267 | ||||||
Torchmark | 14,816 | 965 | ||||||
Travelers | 97,221 | 5,076 | ||||||
U.S. Bancorp (a) (c) | 258,248 | 8,563 | ||||||
UnumProvident (a) | 48,751 | 1,138 | ||||||
Vornado Realty Trust – REIT (a) | 18,848 | 2,106 | ||||||
Wachovia (a) | 276,120 | 12,627 | ||||||
Washington Mutual | 132,966 | 3,707 | ||||||
Wells Fargo | 472,729 | 16,078 | ||||||
XL Capital Limited, Class A (a) | 26,834 | 1,931 | ||||||
Zions Bancorporation | 12,033 | 711 | ||||||
380,239 | ||||||||
Healthcare – 11.5% | ||||||||
Abbott Laboratories | 221,884 | 12,119 | ||||||
Aetna | 74,065 | 4,160 |
12 First American Funds 2007 Annual Report
Table of Contents
Equity Index Fund (continued) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Allergan (a) | 44,377 | $ | 2,999 | |||||
AmerisourceBergen | 26,001 | 1,225 | ||||||
Amgen (a) (b) | 156,831 | 9,113 | ||||||
Applied Biosystems Group – Applera (a) | 28,247 | 1,049 | ||||||
Barr Pharmaceuticals (b) | 15,838 | 908 | ||||||
Baxter International (a) | 94,022 | 5,642 | ||||||
Becton, Dickinson & Company (a) | 35,940 | 3,000 | ||||||
Biogen IDEC (a) (b) | 40,262 | 2,997 | ||||||
Boston Scientific (a) (b) | 173,711 | 2,409 | ||||||
Bristol-Myers Squibb | 284,016 | 8,518 | ||||||
C.R. Bard (a) | 14,786 | 1,236 | ||||||
Cardinal Health | 54,288 | 3,693 | ||||||
Celgene (a) (b) | 54,823 | 3,618 | ||||||
CIGNA (a) | 41,533 | 2,180 | ||||||
Coventry Health Care (b) | 22,636 | 1,365 | ||||||
Covidien (b) | 71,290 | 2,966 | ||||||
Eli Lilly (a) | 143,006 | 7,744 | ||||||
Express Scripts (b) | 37,211 | 2,348 | ||||||
Forest Laboratories, Class A (b) | 45,870 | 1,792 | ||||||
Genzyme (a) (b) | 37,509 | 2,850 | ||||||
Gilead Sciences (b) | 134,763 | 6,225 | ||||||
Hospira (b) | 23,478 | 970 | ||||||
Humana (a) (b) | 23,426 | 1,756 | ||||||
IMS Health | 28,319 | 714 | ||||||
Johnson & Johnson | 418,009 | 27,242 | ||||||
King Pharmaceuticals (a) (b) | 35,117 | 372 | ||||||
Laboratory Corporation of America (a) (b) | 16,972 | 1,167 | ||||||
Manor Care (a) | 10,601 | 706 | ||||||
McKesson HBOC | 43,189 | 2,855 | ||||||
Medco Health Solutions (a) (b) | 39,217 | 3,701 | ||||||
Medtronic (a) | 169,055 | 8,020 | ||||||
Merck | 311,063 | 18,123 | ||||||
Millipore (a) (b) | 6,959 | 540 | ||||||
Mylan Laboratories (a) | 30,496 | 459 | ||||||
Patterson Companies (a) (b) | 19,678 | 770 | ||||||
PerkinElmer | 19,194 | 528 | ||||||
Pfizer | 1,012,821 | 24,925 | ||||||
Quest Diagnostics (a) | 22,640 | 1,204 | ||||||
Schering-Plough | 219,316 | 6,693 | ||||||
St. Jude Medical (a) (b) | 48,824 | 1,989 | ||||||
Stryker (a) | 41,376 | 2,938 | ||||||
Tenet Healthcare (a) (b) | 66,906 | 235 | ||||||
Thermo Fisher Scientific (a) (b) | 57,896 | 3,405 | ||||||
UnitedHealth Group | 188,262 | 9,253 | ||||||
Varian Medical Systems (a) (b) | 18,396 | 897 | ||||||
Watson Pharmaceuticals (a) (b) | 15,674 | 479 | ||||||
WellPoint (b) | 87,452 | 6,929 | ||||||
Wyeth | 194,123 | 9,440 | ||||||
Zimmer Holdings (b) | 35,360 | 2,457 | ||||||
228,923 | ||||||||
Industrials – 11.4% | ||||||||
3M | 103,935 | 8,976 | ||||||
Allied Waste Industries (a) (b) | 29,788 | 377 | ||||||
American Standard (a) (b) | 25,398 | 947 | ||||||
Avery Dennison (a) | 15,433 | 894 | ||||||
Boeing | 116,318 | 11,468 | ||||||
Burlington Northern Santa Fe (a) | 48,380 | 4,216 | ||||||
C.H. Robinson Worldwide (a) | 24,701 | 1,233 | ||||||
Caterpillar (a) | 93,372 | 6,966 | ||||||
Cintas (a) | 19,591 | 717 | ||||||
Cooper Industries, Class A (a) | 26,447 | 1,386 | ||||||
CSX | 62,853 | 2,814 | ||||||
Cummins | 15,047 | 1,805 | ||||||
Danaher (a) | 33,552 | 2,874 | ||||||
Deere & Company (a) | 32,467 | 5,029 | ||||||
Dover | 23,432 | 1,078 | ||||||
Eaton | 20,946 | 1,939 | ||||||
Emerson Electric (a) | 116,841 | $ | 6,107 | |||||
Equifax | 18,348 | 706 | ||||||
Expeditors International of Washington (a) | 26,026 | 1,318 | ||||||
FedEx (a) | 43,497 | 4,495 | ||||||
Fluor | 11,280 | 1,782 | ||||||
General Dynamics | 55,192 | 5,020 | ||||||
General Electric | 1,474,978 | 60,710 | ||||||
Goodrich | 17,142 | 1,194 | ||||||
Honeywell International | 112,522 | 6,797 | ||||||
Illinois Tool Works (a) | 57,833 | 3,312 | ||||||
Ingersoll-Rand, Class A | 44,749 | 2,253 | ||||||
ITT | 26,068 | 1,744 | ||||||
Jacobs Engineering Group (a) (b) | 17,366 | 1,513 | ||||||
L-3 Communications Holdings | 18,030 | 1,977 | ||||||
Lockheed Martin (a) | 50,459 | 5,553 | ||||||
Masco (a) | 54,507 | 1,313 | ||||||
Monster Worldwide (a) (b) | 18,279 | 742 | ||||||
Norfolk Southern | 58,768 | 3,035 | ||||||
Northrop Grumman (a) | 50,480 | 4,221 | ||||||
Paccar | 54,075 | 3,004 | ||||||
Pall | 17,885 | 717 | ||||||
Parker Hannifin (a) | 24,931 | 2,004 | ||||||
Pitney Bowes (a) | 24,883 | 996 | ||||||
Precision Castparts (a) | 19,741 | 2,957 | ||||||
R.R. Donnelley & Sons | 30,737 | 1,238 | ||||||
Raytheon (a) | 62,821 | 3,996 | ||||||
Robert Half International (a) | 24,419 | 735 | ||||||
Rockwell Automation | 24,035 | 1,656 | ||||||
Rockwell Collins | 25,293 | 1,892 | ||||||
Ryder System (a) | 8,968 | 429 | ||||||
Southwest Airlines (a) | 114,208 | 1,623 | ||||||
Terex (b) | 14,594 | 1,083 | ||||||
Textron | 37,955 | 2,627 | ||||||
Tyco International | 71,290 | 2,935 | ||||||
Union Pacific | 37,868 | 4,849 | ||||||
United Parcel Service, Class B | 153,032 | 11,493 | ||||||
United Technologies | 142,847 | 10,941 | ||||||
W.W. Grainger (a) | 10,929 | 983 | ||||||
Waste Management (a) | 75,182 | 2,736 | ||||||
225,405 | ||||||||
Information Technology – 17.0% | ||||||||
Adobe Systems (b) | 85,541 | 4,097 | ||||||
Advanced Micro Devices (a) (b) | 79,656 | 1,042 | ||||||
Affiliated Computer Services, Class A (b) | 14,310 | 725 | ||||||
Agilent Technologies (a) (b) | 61,150 | 2,253 | ||||||
Akamai Technologies (a) (b) | 23,984 | 940 | ||||||
Altera | 51,419 | 1,009 | ||||||
Analog Devices | 47,204 | 1,579 | ||||||
Apple (b) | 124,822 | 23,710 | ||||||
Applied Materials | 199,434 | 3,873 | ||||||
Autodesk (a) (b) | 32,634 | 1,596 | ||||||
Automatic Data Processing | 83,218 | 4,124 | ||||||
BMC Software (b) | 29,434 | 996 | ||||||
Broadcom, Class A (a) (b) | 67,940 | 2,211 | ||||||
CA (a) | 59,390 | 1,571 | ||||||
Ciena (a) (b) | 12,329 | 590 | ||||||
Cisco Systems (b) | 873,800 | 28,888 | ||||||
Citrix Systems (b) | 26,073 | 1,121 | ||||||
Cognizant Technology Solutions, Class A (b) | 41,490 | 1,720 | ||||||
Computer Sciences (b) | 24,248 | 1,416 | ||||||
Compuware (a) (b) | 43,887 | 439 | ||||||
Convergys (b) | 20,008 | 367 | ||||||
Corning (a) | 226,972 | 5,509 | ||||||
Dell (b) | 334,760 | 10,244 | ||||||
eBay (a) (b) | 163,749 | 5,911 | ||||||
Electronic Arts (b) | 43,961 | 2,687 | ||||||
Electronic Data Systems (a) | 68,677 | 1,483 |
First American Funds 2007 Annual Report 13
Table of Contents
Schedule of Investments October 31, 2007, all dollars are rounded to thousands (000)
Equity Index Fund (continued) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
EMC (a) (b) | 302,832 | $ | 7,689 | |||||
Fidelity National Information Services (a) | 23,608 | 1,089 | ||||||
Fiserv (a) (b) | 26,554 | 1,471 | ||||||
Google, Class A (a) (b) | 32,899 | 23,260 | ||||||
Hewlett-Packard | 377,937 | 19,532 | ||||||
IBM | 197,134 | 22,891 | ||||||
Intel | 830,363 | 22,337 | ||||||
Intuit (a) (b) | 50,315 | 1,619 | ||||||
Jabil Circuit | 25,862 | 562 | ||||||
JDS Uniphase (b) | 30,494 | 465 | ||||||
Juniper Networks (a) (b) | 74,457 | 2,680 | ||||||
KLA-Tencor (a) | 27,327 | 1,439 | ||||||
Lexmark International Group, Class A (a) (b) | 13,648 | 573 | ||||||
Linear Technology (a) | 32,037 | 1,058 | ||||||
LSI Logic (a) (b) | 110,820 | 731 | ||||||
MEMC Electronic Materials (a) (b) | 32,201 | 2,358 | ||||||
Microchip Technology | 31,492 | 1,045 | ||||||
Micron Technology (a) (b) | 109,618 | 1,152 | ||||||
Microsoft | 1,191,964 | 43,876 | ||||||
Molex | 20,465 | 584 | ||||||
Motorola | 334,028 | 6,276 | ||||||
National Semiconductor (a) | 34,693 | 872 | ||||||
Network Appliance (b) | 52,847 | 1,664 | ||||||
Novell (b) | 54,847 | 415 | ||||||
Novellus Systems (a) (b) | 19,037 | 541 | ||||||
NVIDIA (a) (b) | 79,485 | 2,812 | ||||||
Oracle (b) | 570,033 | 12,638 | ||||||
Paychex | 47,360 | 1,979 | ||||||
QLogic (a) (b) | 22,977 | 357 | ||||||
QUALCOMM | 240,328 | 10,269 | ||||||
SanDisk (a) (b) | 32,918 | 1,462 | ||||||
Seagate Technology, Escrow Shares (b) (d) | 44,886 | — | ||||||
Sun Microsystems (a) (b) | 515,230 | 2,942 | ||||||
Symantec (a) (b) | 130,028 | 2,442 | ||||||
Tektronix | 11,975 | 453 | ||||||
Tellabs (a) (b) | 65,265 | 575 | ||||||
Teradata (a) (b) | 26,058 | 743 | ||||||
Teradyne (a) (b) | 27,565 | 340 | ||||||
Texas Instruments | 211,031 | 6,880 | ||||||
Tyco Electronics | 71,290 | 2,543 | ||||||
Unisys (a) (b) | 46,602 | 283 | ||||||
VeriSign (a) (b) | 35,315 | 1,204 | ||||||
Waters (b) | 15,891 | 1,223 | ||||||
Western Union | 111,607 | 2,460 | ||||||
Xerox (b) | 135,993 | 2,372 | ||||||
Xilinx | 49,570 | 1,209 | ||||||
Yahoo! (a) (b) | 195,110 | 6,068 | ||||||
337,534 | ||||||||
Materials – 3.3% | ||||||||
Air Products and Chemicals | 32,283 | 3,159 | ||||||
Alcoa | 125,633 | 4,974 | ||||||
Allegheny Technologies (a) | 14,804 | 1,513 | ||||||
Ashland | 10,388 | 610 | ||||||
Ball (a) | 14,733 | 731 | ||||||
Bemis (a) | 15,002 | 422 | ||||||
Dow Chemical (a) | 139,187 | 6,269 | ||||||
E.I. Du Pont de Nemours | 130,762 | 6,474 | ||||||
Eastman Chemical (a) | 10,483 | 698 | ||||||
Ecolab (a) | 26,237 | 1,238 | ||||||
Freeport-McMoRan Copper & Gold (a) | 55,285 | 6,506 | ||||||
Hercules (a) | 15,474 | 291 | ||||||
International Flavors & Fragrances (a) | 9,938 | 519 | ||||||
International Paper (a) | 62,857 | 2,323 | ||||||
MeadWestvaco | 25,801 | 868 | ||||||
Monsanto (a) | 78,435 | 7,658 | ||||||
Newmont Mining (a) | 64,850 | 3,298 | ||||||
Nucor (a) | 43,540 | 2,700 | ||||||
Pactiv (b) | 21,521 | $ | 591 | |||||
PPG Industries | 24,020 | 1,795 | ||||||
Praxair | 46,810 | 4,001 | ||||||
Rohm & Haas | 20,515 | 1,064 | ||||||
Sealed Air (a) | 23,281 | 580 | ||||||
Sigma-Aldrich | 19,077 | 986 | ||||||
Temple-Inland (a) | 15,529 | 833 | ||||||
Titanium Metals (a) (b) | 12,080 | 425 | ||||||
United States Steel | 17,121 | 1,847 | ||||||
Vulcan Materials (a) | 14,543 | 1,244 | ||||||
Weyerhaeuser | 31,874 | 2,420 | ||||||
66,037 | ||||||||
Telecommunication Services – 3.6% | ||||||||
ALLTEL | 51,170 | 3,641 | ||||||
AT&T | 889,764 | 37,183 | ||||||
CenturyTel (a) | 15,805 | 696 | ||||||
Citizens Communications | 49,441 | 651 | ||||||
Embarq (a) | 21,645 | 1,146 | ||||||
Qwest Communications International (a) (b) | 231,391 | 1,661 | ||||||
Sprint (a) | 417,586 | 7,141 | ||||||
Verizon Communications | 416,062 | 19,168 | ||||||
Windstream | 68,496 | 921 | ||||||
72,208 | ||||||||
Utilities – 3.3% | ||||||||
AES (b) | 96,834 | 2,073 | ||||||
Allegheny Energy (b) | 23,926 | 1,451 | ||||||
Ameren (a) | 27,088 | 1,465 | ||||||
American Electric Power | 55,676 | 2,684 | ||||||
Centerpoint Energy (a) | 45,908 | 770 | ||||||
CMS Energy | 32,525 | 552 | ||||||
Consolidated Edison | 32,659 | 1,538 | ||||||
Constellation Energy | 26,074 | 2,469 | ||||||
Dominion Resources | 41,671 | 3,818 | ||||||
DTE Energy (a) | 23,335 | 1,158 | ||||||
Duke Energy | 181,850 | 3,486 | ||||||
Dynegy, Class A (b) | 71,774 | 661 | ||||||
Edison International | 45,906 | 2,670 | ||||||
Entergy | 33,095 | 3,967 | ||||||
Exelon | 96,853 | 8,018 | ||||||
FirstEnergy | 46,745 | 3,258 | ||||||
FPL Group (a) | 58,464 | 4,000 | ||||||
Integrys Energy Group | 5,111 | 275 | ||||||
Nicor (a) | 6,502 | 281 | ||||||
NiSource | 39,573 | 809 | ||||||
PG&E (a) | 55,197 | 2,701 | ||||||
Pinnacle West Capital | 14,473 | 585 | ||||||
PPL | 55,574 | 2,873 | ||||||
Progress Energy (a) | 34,784 | 1,670 | ||||||
Public Service Enterprise Group (a) | 36,478 | 3,487 | ||||||
Questar (a) | 24,882 | 1,420 | ||||||
Sempra Energy | 38,071 | 2,342 | ||||||
Southern | 104,753 | 3,840 | ||||||
TECO Energy (a) | 30,261 | 509 | ||||||
Xcel Energy (a) | 59,040 | 1,331 | ||||||
66,161 | ||||||||
Total Common Stocks (Cost $1,079,456) | 1,975,238 | |||||||
Short-Term Investments – 0.5% | ||||||||
Money Market Fund – 0.4% | ||||||||
First American Prime Obligations Fund, Class Z (c) | 7,443,702 | 7,444 | ||||||
14 First American Funds 2007 Annual Report
Table of Contents
Equity Index Fund (concluded) | |||||||||
DESCRIPTION | SHARES/PAR | VALUE | |||||||
U.S. Treasury Obligation – 0.1% | |||||||||
U.S. Treasury Bill | |||||||||
3.813%, 01/24/2008 (e) | $ | 2,900 | $ | 2,874 | |||||
Total Short-Term Investments (Cost $10,312) | 10,318 | ||||||||
Investment Purchased with Proceeds from Securities Lending – 21.7% | |||||||||
Mount Vernon Securities Lending Prime Portfolio (f) | |||||||||
(Cost $432,259) | 432,258,520 | 432,259 | |||||||
Total Investments – 121.7% | |||||||||
(Cost $1,522,027) | 2,417,815 | ||||||||
Other Assets and Liabilities, Net – (21.7)% | (431,692 | ) | |||||||
Total Net Assets – 100.0% | $ | 1,986,123 | |||||||
(a) | This security or a portion of this security is out on loan at October 31, 2007. Total loaned securities had a value of $424,260 at October 31, 2007. See note 2 in Notes to Financial Statements. |
(b) | Non-income producing security. |
(c) | Investment in affiliated security. As of October 31, 2007, the market value of these investments was $16,007 or 0.8% of total net assets. See notes 3 and 4 in Notes to Financial Statements. |
(d) | Security is fair valued and illiquid. As of October 31, 2007, the value of this investment was $0 or 0.0% of total net assets. See note 2 in Notes to Financial Statements. |
(e) | Security has been deposited as initial margin on open futures contracts. Yield shown is effective yield as of October 31, 2007. See note 2 in Notes to Financial Statements. |
(f) | The fund may loan securities representing up to one third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks, or other institutional borrowers of securities. The fund maintains collateral equal to at least 100% of the value of the securities loaned. The adequacy of the collateral is monitored on a daily basis. The cash collateral received by the fund is invested in this affiliated money market fund. See note 2 in Notes to Financial Statements. |
REIT – | Real Estate Investment Trust |
Schedule of Open Futures Contracts
Number of | Notional | |||||||||||||||
Contracts | Contract | Settlement | Unrealized | |||||||||||||
Description | Purchased | Value | Month | Appreciation | ||||||||||||
S&P 500 Futures | 25 | $ | 9,718 | December 2007 | $ | 145 | ||||||||||
Mid Cap Index Fund | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Common Stocks – 92.5% | ||||||||
Consumer Discretionary – 12.5% | ||||||||
99 Cents Only Stores (a) (b) | 14,937 | $ | 161 | |||||
Advanced Auto Parts | 29,417 | 1,004 | ||||||
Aeropostale (a) (b) | 21,590 | 494 | ||||||
American Eagle Outfitters | 60,190 | 1,431 | ||||||
American Greetings, Class A (a) | 16,365 | 431 | ||||||
AnnTaylor Stores (b) | 18,549 | 575 | ||||||
Applebee’s International | 20,980 | 532 | ||||||
ArvinMeritor (a) | 20,242 | 300 | ||||||
Barnes & Noble | 15,118 | 584 | ||||||
Belo, Class A (a) | 24,597 | 455 | ||||||
BLYTH | 7,766 | 148 | ||||||
Bob Evans Farms | 10,422 | 294 | ||||||
Borders Group (a) | 17,473 | 269 | ||||||
BorgWarner (a) | 16,116 | 1,704 | ||||||
Boyd Gaming | 15,721 | 658 | ||||||
Brinker International | 29,579 | 751 | ||||||
Callaway Golf (a) | 18,739 | 325 | ||||||
CarMax (a) (b) | 60,512 | 1,263 | ||||||
CBRL Group (a) | 6,779 | 271 | ||||||
Charming Shoppes (a) (b) | 33,621 | 250 | ||||||
Cheesecake Factory (a) (b) | 21,710 | 487 | ||||||
Chico’s FAS (a) (b) | 49,168 | 646 | ||||||
Chipotle Mexican Grill, Class A (a) (b) | 9,236 | 1,284 | ||||||
Coldwater Creek (a) (b) | 17,105 | 153 | ||||||
Collective Brands (a) (b) | 18,409 | 340 | ||||||
Corinthian Colleges (a) (b) | 23,694 | 388 | ||||||
DeVry (a) | 16,714 | 914 | ||||||
Dick’s Sporting Goods (b) | 23,226 | 775 | ||||||
Dollar Tree Stores (b) | 26,379 | 1,010 | ||||||
Entercom Communications (a) | 7,823 | 145 | ||||||
Foot Locker | 43,603 | 649 | ||||||
Furniture Brands International (a) | 13,964 | 168 | ||||||
Gamestop, Class A (b) | 44,544 | 2,638 | ||||||
Gentex (a) | 41,234 | 857 | ||||||
Getty Images (b) | 13,131 | 371 | ||||||
Guess? | 15,244 | 783 | ||||||
Hanesbrands (b) | 26,856 | 834 | ||||||
Harte-Hanks | 13,972 | 246 | ||||||
Hovnanian Enterprises, Class A (a) (b) | 10,218 | 116 | ||||||
International Speedway, Class A | 8,746 | 389 | ||||||
John Wiley & Sons, Class A | 11,658 | 513 | ||||||
Lamar Advertising, Class A (a) | 22,097 | 1,181 | ||||||
Lear (a) (b) | 21,590 | 767 | ||||||
Lee Enterprises (a) | 13,128 | 211 | ||||||
Life Time Fitness (a) (b) | 8,868 | 538 | ||||||
M.D.C. Holdings | 9,758 | 395 | ||||||
Matthews International, Class A | 8,767 | 400 | ||||||
Media General, Class A | 6,910 | 193 | ||||||
Modine Manufacturing | 9,595 | 223 | ||||||
Mohawk Industries (a) (b) | 15,196 | 1,297 | ||||||
Netflix (a) (b) | 13,684 | 362 | ||||||
NVR (a) (b) | 1,524 | 725 | ||||||
O’Reilly Automotive (b) | 31,252 | 1,032 | ||||||
Pacific Sunwear of California (a) (b) | 19,404 | 324 | ||||||
PetSmart (a) | 38,740 | 1,160 | ||||||
Phillips Van-Heusen (a) | 15,554 | 744 | ||||||
Regis | 12,978 | 436 | ||||||
Rent-A-Center (a) (b) | 19,825 | 317 | ||||||
Ross Stores | 38,369 | 1,037 | ||||||
Ruby Tuesday (a) | 14,473 | 231 | ||||||
Ryland Group (a) | 12,281 | 349 | ||||||
Saks (a) | 38,692 | 819 | ||||||
Scholastic (b) | 7,155 | 283 | ||||||
Scientific Games, Class A (a) (b) | 18,236 | 659 | ||||||
Strayer Education | 3,540 | 660 |
First American Funds 2007 Annual Report 15
Table of Contents
Schedule of Investments October 31, 2007, all dollars are rounded to thousands (000)
Mid Cap Index Fund (continued) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Thor Industries (a) | 9,951 | $ | 478 | |||||
Timberland, Class A (a) (b) | 14,075 | 275 | ||||||
Toll Brothers (a) (b) | 35,560 | 815 | ||||||
Travelcenters Fractional Shares (b) (c) | 0.70 | — | ||||||
Tupperware (a) | 16,184 | 584 | ||||||
Urban Outfitters (a) (b) | 31,471 | 795 | ||||||
Valassis Communications (a) (b) | 13,606 | 134 | ||||||
Warnaco Group, Class A (b) | 12,960 | 527 | ||||||
Washington Post, Class B (a) | 1,554 | 1,319 | ||||||
Williams-Sonoma (a) | 24,969 | 785 | ||||||
45,661 | ||||||||
Consumer Staples – 2.9% | ||||||||
Alberto-Culver | 23,583 | 613 | ||||||
BJ’s Wholesale Club (a) (b) | 18,181 | 652 | ||||||
Church & Dwight (a) | 17,852 | 845 | ||||||
Corn Products International | 20,979 | 892 | ||||||
Energizer Holdings (a) (b) | 16,254 | 1,695 | ||||||
Hansen Natural (b) | 16,946 | 1,152 | ||||||
Hormel Foods | 20,385 | 744 | ||||||
JM Smucker (a) | 16,455 | 879 | ||||||
Lancaster Colony | 6,633 | 266 | ||||||
NBTY (b) | 15,895 | 566 | ||||||
PepsiAmericas | 16,984 | 607 | ||||||
Ruddick (a) | 9,529 | 324 | ||||||
Smithfield Foods (b) | 31,134 | 893 | ||||||
Tootsie Roll Industries | 7,623 | 196 | ||||||
Universal (a) | 6,537 | 319 | ||||||
10,643 | ||||||||
Energy – 8.6% | ||||||||
Arch Coal (a) | 40,466 | 1,659 | ||||||
Bill Barrett (a) (b) | 9,298 | 435 | ||||||
Cameron International (a) (b) | 31,308 | 3,048 | ||||||
Cimarex Energy | 22,548 | 914 | ||||||
Denbury Resources (b) | 33,814 | 1,914 | ||||||
Encore Acquisition (a) (b) | 11,792 | 433 | ||||||
Exterran Holdings (a) (b) | 17,911 | 1,508 | ||||||
FMC Technologies (b) | 36,023 | 2,184 | ||||||
Forest Oil (a) (b) | 24,640 | 1,197 | ||||||
Frontier Oil | 29,694 | 1,360 | ||||||
Grant Prideco (a) (b) | 36,638 | 1,801 | ||||||
Helmerich & Payne | 29,128 | 921 | ||||||
Newfield Exploration (b) | 36,311 | 1,955 | ||||||
Overseas Shipholding Group | 7,960 | 592 | ||||||
Patterson-UTI Energy (a) | 43,407 | 866 | ||||||
Pioneer Natural Resources (a) | 35,019 | 1,787 | ||||||
Plains Exploration & Production (a) (b) | 21,268 | 1,084 | ||||||
Pogo Producing | 16,237 | 967 | ||||||
Pride International (a) (b) | 45,772 | 1,689 | ||||||
Quicksilver Resources (a) (b) | 15,551 | 886 | ||||||
Southwestern Energy (b) | 47,830 | 2,474 | ||||||
Superior Energy Services (a) (b) | 20,721 | 768 | ||||||
Tidewater (a) | 16,407 | 897 | ||||||
31,339 | ||||||||
Financials – 13.5% | ||||||||
AMB Property – REIT (a) | 27,983 | 1,829 | ||||||
American Financial Group | 19,366 | 579 | ||||||
AmeriCredit (a) (b) | 33,172 | 468 | ||||||
Arthur J. Gallagher | 27,367 | 728 | ||||||
Associated Banc-Corp | 37,158 | 1,072 | ||||||
Astoria Financial (a) | 23,032 | 599 | ||||||
Bank of Hawaii | 14,737 | 783 | ||||||
Brown & Brown | 31,715 | 799 | ||||||
Cathay General Bancorp (a) | 11,534 | 357 | ||||||
City National (a) | 11,920 | 806 | ||||||
Colonial BancGroup (a) | 42,838 | 822 | ||||||
Commerce Group | 9,108 | $ | 332 | |||||
Cousins Properties (a) | 12,354 | 356 | ||||||
Cullen/ Frost Bankers | 14,476 | 770 | ||||||
Duke Realty – REIT | 39,962 | 1,285 | ||||||
Eaton Vance (a) | 35,664 | 1,784 | ||||||
Equity One (a) | 10,429 | 273 | ||||||
Everest Re Group (a) | 18,236 | 1,943 | ||||||
Fidelity National Title Group (a) | 61,713 | 950 | ||||||
First American | 26,333 | 793 | ||||||
First Community Bancorp | 6,205 | 302 | ||||||
First Niagara Financial Group (a) | 23,590 | 311 | ||||||
FirstMerit (a) | 23,865 | 506 | ||||||
GATX (a) | 14,408 | 590 | ||||||
Hanover Insurance Group | 14,519 | 669 | ||||||
HCC Insurance Holdings | 31,989 | 956 | ||||||
Highwoods Properties – REIT (a) | 15,851 | 570 | ||||||
Horace Mann Educators | 12,084 | 250 | ||||||
Hospitality Properties Trust – REIT (a) | 25,603 | 1,014 | ||||||
IndyMac Bancorp (a) | 19,601 | 263 | ||||||
Jefferies Group (a) | 31,368 | 838 | ||||||
Jones Lang LaSalle (a) | 10,507 | 1,002 | ||||||
Liberty Property Trust – REIT | 25,151 | 946 | ||||||
Macerich – REIT (a) | 19,799 | 1,697 | ||||||
Mack-Cali Realty – REIT | 18,934 | 750 | ||||||
Mercury General | 10,017 | 514 | ||||||
MoneyGram International (a) | 23,210 | 370 | ||||||
Nationwide Health Properties – REIT (a) | 25,094 | 783 | ||||||
New York Community Bancorp (a) | 86,950 | 1,618 | ||||||
Nuveen Investments, Class A | 22,083 | 1,431 | ||||||
Old Republic International | 64,385 | 987 | ||||||
PMI Group (a) | 24,224 | 388 | ||||||
Potlatch – REIT (a) | 10,835 | 516 | ||||||
Protective Life | 19,578 | 839 | ||||||
Radian Group (a) | 22,517 | 284 | ||||||
Raymond James Financial (a) | 26,392 | 983 | ||||||
Rayonier – REIT | 22,067 | 1,066 | ||||||
Regency Centers – REIT (a) | 18,704 | 1,337 | ||||||
SEI Investments | 35,280 | 1,116 | ||||||
StanCorp Financial Group | 15,269 | 842 | ||||||
SVB Financial (a) (b) | 11,013 | 570 | ||||||
TCF Financial (a) | 31,153 | 709 | ||||||
UDR – REIT (a) | 37,698 | 895 | ||||||
Unitrin | 14,565 | 675 | ||||||
W.R. Berkley | 48,176 | 1,450 | ||||||
Waddell & Reed Financial, Class A (a) | 23,765 | 789 | ||||||
Washington Federal | 25,750 | 622 | ||||||
Webster Financial | 15,937 | 578 | ||||||
Weingarten Realty Investors – REIT (a) | 23,119 | 885 | ||||||
Westamerica Bancorporation (a) | 8,328 | 400 | ||||||
Wilmington Trust | 19,162 | 697 | ||||||
49,336 | ||||||||
Healthcare – 11.4% | ||||||||
Advanced Medical Optics (a) (b) | 16,933 | 465 | ||||||
Affymetrix (a) (b) | 18,926 | 482 | ||||||
Apria Healthcare Group (b) | 12,284 | 297 | ||||||
Beckman Coulter | 17,380 | 1,231 | ||||||
Cephalon (a) (b) | 18,727 | 1,381 | ||||||
Cerner (a) (b) | 18,378 | 1,095 | ||||||
Charles River Laboratories International (a) (b) | 19,157 | 1,111 | ||||||
Community Health Systems (a) (b) | 26,805 | 883 | ||||||
Covance (b) | 18,421 | 1,520 | ||||||
DENTSPLY International | 43,143 | 1,789 | ||||||
Edwards Lifesciences (a) (b) | 16,388 | 823 | ||||||
Endo Pharmaceuticals (b) | 37,791 | 1,107 | ||||||
Gen-Probe (b) | 14,481 | 1,014 | ||||||
Health Management Associates, Class A | 67,908 | 449 | ||||||
Health Net (b) | 30,835 | 1,653 |
16 First American Funds 2007 Annual Report
Table of Contents
Mid Cap Index Fund (continued) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Henry Schein (b) | 24,681 | $ | 1,478 | |||||
Hillenbrand Industries | 17,174 | 948 | ||||||
Hologic (b) | 32,002 | 2,174 | ||||||
Intuitive Surgical (a) (b) | 10,572 | 3,456 | ||||||
Invitrogen (a) (b) | 13,492 | 1,226 | ||||||
Kindred Healthcare (a) (b) | 8,841 | 188 | ||||||
Kyphon (b) | 12,722 | 902 | ||||||
Lifepoint Hospitals (a) (b) | 16,310 | 498 | ||||||
Lincare Holdings (a) (b) | 23,532 | 818 | ||||||
Medicis Pharmaceutical, Class A (a) | 14,528 | 431 | ||||||
Millennium Pharmaceuticals (a) (b) | 88,528 | 1,046 | ||||||
Mine Safety Appliances | 7,420 | 340 | ||||||
Omnicare (a) | 34,472 | 1,017 | ||||||
Par Pharmaceutical Companies (b) | 10,085 | 186 | ||||||
PDL BioPharma (a) (b) | 32,169 | 682 | ||||||
Perrigo (a) | 21,788 | 516 | ||||||
Pharmaceutical Product Development (a) | 29,263 | 1,236 | ||||||
Psychiatric Solutions (a) (b) | 14,850 | 588 | ||||||
Resmed (a) (b) | 21,315 | 883 | ||||||
Sepracor (a) (b) | 29,741 | 819 | ||||||
Service Corporation International | 40,062 | 580 | ||||||
STERIS (a) | 18,156 | 527 | ||||||
Techne (a) (b) | 10,631 | 693 | ||||||
Universal Health Services | 14,950 | 729 | ||||||
Valeant Pharmaceuticals International (a) (b) | 25,761 | 375 | ||||||
Varian (b) | 8,928 | 660 | ||||||
VCA Antech (a) (b) | 23,048 | 1,061 | ||||||
Ventana Medical Systems (b) | 8,770 | 772 | ||||||
Vertex Pharmaceuticals (b) | 36,723 | 1,188 | ||||||
WellCare Group (b) | 11,652 | 282 | ||||||
41,599 | ||||||||
Industrials – 14.2% | ||||||||
AGCO (a) (b) | 25,861 | 1,543 | ||||||
AirTran Holdings (a) (b) | 25,469 | 265 | ||||||
Alaska Air Group (b) | 11,154 | 283 | ||||||
Alexander & Baldwin | 12,067 | 632 | ||||||
Alliant Techsystems (a) (b) | 9,409 | 1,039 | ||||||
AMETEK | 30,076 | 1,414 | ||||||
Avis Budget Group (b) | 29,064 | 607 | ||||||
Brinks | 12,630 | 791 | ||||||
Career Education (a) (b) | 26,596 | 951 | ||||||
Carlisle Companies (a) | 16,810 | 663 | ||||||
ChoicePoint (a) (b) | 21,657 | 852 | ||||||
Con-way | 12,692 | 541 | ||||||
Copart (b) | 20,199 | 775 | ||||||
Corporate Executive Board (a) | 10,892 | 776 | ||||||
Crane | 14,242 | 676 | ||||||
Deluxe (a) | 14,464 | 583 | ||||||
Donaldson | 19,453 | 834 | ||||||
DRS Technologies (a) | 11,516 | 661 | ||||||
Dun & Bradstreet | 16,310 | 1,580 | ||||||
Dycom Industries (b) | 11,813 | 334 | ||||||
Fastenal (a) | 35,368 | 1,573 | ||||||
Federal Signal | 13,432 | 180 | ||||||
Flowserve | 15,759 | 1,244 | ||||||
Graco (a) | 18,383 | 724 | ||||||
Granite Construction (a) | 9,619 | 412 | ||||||
Harsco | 23,359 | 1,416 | ||||||
Herman Miller (a) | 17,226 | 469 | ||||||
HNI (a) | 13,420 | 582 | ||||||
Hubbell, Class B | 16,809 | 925 | ||||||
IDEX | 22,324 | 791 | ||||||
ITT Educational Services (b) | 8,665 | 1,102 | ||||||
J.B. Hunt Transport Services (a) | 26,133 | 724 | ||||||
JetBlue Airways (a) (b) | 49,861 | 455 | ||||||
Joy Global (a) | 30,261 | 1,757 | ||||||
KBR (b) | 46,785 | 2,006 | ||||||
Kelly Services, Class A | 5,671 | $ | 119 | |||||
Kennametal | 11,019 | 1,005 | ||||||
Korn/ Ferry International (b) | 12,602 | 241 | ||||||
Lincoln Electric Holdings | 12,099 | 874 | ||||||
Manpower | 24,537 | 1,834 | ||||||
MSC Industrial Direct, Class A | 13,169 | 641 | ||||||
Navigant Consulting (a) (b) | 11,767 | 155 | ||||||
Nordson | 9,512 | 509 | ||||||
Oshkosh Truck (a) | 20,613 | 1,117 | ||||||
Pentair (a) | 28,015 | 991 | ||||||
Quanta Services (a) (b) | 47,391 | 1,564 | ||||||
Republic Services | 45,505 | 1,556 | ||||||
Rollins | 7,993 | 243 | ||||||
Roper Industries (a) | 24,513 | 1,736 | ||||||
Sequa, Class A (b) | 2,049 | 356 | ||||||
Sotheby’s Holdings, Class A (a) | 18,350 | 994 | ||||||
SPX | 16,255 | 1,647 | ||||||
Stericycle (b) | 24,286 | 1,417 | ||||||
Teleflex (a) | 11,493 | 841 | ||||||
Thomas & Betts (b) | 14,309 | 801 | ||||||
Timken (a) | 26,419 | 879 | ||||||
Trinity Industries (a) | 22,715 | 821 | ||||||
United Rentals (a) (b) | 20,455 | 699 | ||||||
Werner Enterprises (a) | 13,571 | 258 | ||||||
YRC Worldwide (a) (b) | 16,631 | 409 | ||||||
51,867 | ||||||||
Information Technology – 14.2% | ||||||||
3Com (b) | 111,892 | 546 | ||||||
ACI Worldwide (b) | 10,379 | 237 | ||||||
Activision (a) (b) | 79,076 | 1,870 | ||||||
Acxiom | 19,012 | 250 | ||||||
ADC Telecommunications (b) | 32,773 | 613 | ||||||
ADTRAN | 17,072 | 411 | ||||||
Advent Software (a) (b) | 5,737 | 317 | ||||||
Alliance Data Systems (b) | 22,049 | 1,773 | ||||||
Amphenol, Class A (a) | 50,086 | 2,217 | ||||||
Andrew (a) (b) | 42,988 | 630 | ||||||
Arrow Electronics (b) | 34,078 | 1,362 | ||||||
Atmel (b) | 136,914 | 670 | ||||||
Avnet (a) (b) | 41,976 | 1,751 | ||||||
Avocent (a) (b) | 14,250 | 385 | ||||||
Broadridge Financial Solutions | 38,370 | 767 | ||||||
Cadence Design Systems (a) (b) | 78,681 | 1,542 | ||||||
Ceridian (b) | 38,799 | 1,394 | ||||||
CheckFree (a) (b) | 24,723 | 1,175 | ||||||
CommScope (a) (b) | 17,248 | 814 | ||||||
Cree (a) (b) | 23,737 | 665 | ||||||
CSG Systems International (b) | 12,132 | 249 | ||||||
Cypress Semiconductor (a) (b) | 42,270 | 1,545 | ||||||
Diebold (a) | 18,586 | 778 | ||||||
Digital River (a) (b) | 11,120 | 590 | ||||||
DST Systems (a) (b) | 14,772 | 1,251 | ||||||
F5 Networks (a) (b) | 23,591 | 850 | ||||||
Fair Isaac | 17,795 | 675 | ||||||
Fairchild Semiconductor International, Class A (a) (b) | 34,239 | 625 | ||||||
Gartner, Class A (b) | 19,505 | 427 | ||||||
Global Payments | 22,435 | 1,067 | ||||||
Harris | 37,417 | 2,266 | ||||||
Imation | 9,576 | 213 | ||||||
Ingram Micro, Class A (b) | 40,930 | 869 | ||||||
Integrated Device Technology (b) | 56,016 | 752 | ||||||
International Rectifier (a) (b) | 20,197 | 674 | ||||||
Intersil, Class A | 39,533 | 1,199 | ||||||
Jack Henry & Associates (a) | 21,303 | 623 | ||||||
KEMET (b) | 24,893 | 176 | ||||||
Lam Research (a) (b) | 37,437 | 1,879 |
First American Funds 2007 Annual Report 17
Table of Contents
Schedule of Investments October 31, 2007, all dollars are rounded to thousands (000)
Mid Cap Index Fund (continued) | |||||||||
DESCRIPTION | SHARES | VALUE | |||||||
Lattice Semiconductor (b) | 32,010 | $ | 134 | ||||||
Macrovision (b) | 14,857 | 357 | |||||||
McAfee (b) | 44,977 | 1,860 | |||||||
Mentor Graphics (a) (b) | 25,087 | 402 | |||||||
Micrel | 15,639 | 142 | |||||||
MPS Group (a) (b) | 29,429 | 359 | |||||||
National Instruments | 15,789 | 512 | |||||||
NCR (b) | 50,111 | 1,383 | |||||||
Palm (a) (b) | 29,144 | 263 | |||||||
Parametric Technology (b) | 32,167 | 614 | |||||||
Plantronics (a) | 13,538 | 370 | |||||||
Polycom (b) | 25,074 | 702 | |||||||
Powerwave Technologies (a) (b) | 35,820 | 199 | |||||||
RF Micro Devices (a) (b) | 55,090 | 343 | |||||||
Semtech (a) (b) | 18,398 | 315 | |||||||
Silicon Laboratories (a) (b) | 15,713 | 687 | |||||||
SRA International, Class A (b) | 10,407 | 286 | |||||||
Sybase (a) (b) | 25,533 | 730 | |||||||
Synopsys (b) | 39,394 | 1,113 | |||||||
Tech Data (b) | 15,468 | 608 | |||||||
TriQuint Semiconductor (b) | 38,946 | 244 | |||||||
ValueClick (a) (b) | 28,005 | 762 | |||||||
Vishay Intertechnology (b) | 52,627 | 663 | |||||||
Western Digital (b) | 61,337 | 1,590 | |||||||
Wind River Systems (b) | 21,338 | 267 | |||||||
Zebra Technology, Class A (a) (b) | 19,339 | 756 | |||||||
51,758 | |||||||||
Materials – 7.3% | |||||||||
Airgas | 22,190 | 1,120 | |||||||
Albemarle | 22,207 | 1,061 | |||||||
Cabot Microelectronics | 18,961 | 664 | |||||||
Carpenter Technology | 7,149 | 1,036 | |||||||
CF Industries Holdings (a) | 13,478 | 1,185 | |||||||
Chemtura (a) | 69,524 | 648 | |||||||
Cleveland-Cliffs | 11,538 | 1,104 | |||||||
Commercial Metals | 34,237 | 1,074 | |||||||
Cytec Industries | 11,760 | 784 | |||||||
Ferro | 11,947 | 247 | |||||||
Florida Rock Industries | 14,259 | 897 | |||||||
FMC | 21,311 | 1,225 | |||||||
Louisiana Pacific (a) | 29,514 | 486 | |||||||
Lubrizol | 19,418 | 1,318 | |||||||
Lyondell Chemical (a) | 70,986 | 3,368 | |||||||
Martin Marietta Materials (a) | 12,050 | 1,559 | |||||||
Minerals Technologies | 5,615 | 394 | |||||||
Olin (a) | 19,960 | 455 | |||||||
Packaging Corporation of America | 25,963 | 827 | |||||||
Reliance Steel & Aluminum | 18,122 | 1,057 | |||||||
RPM (a) | 33,480 | 717 | |||||||
Scotts (a) | 12,162 | 558 | |||||||
Sensient Technologies | 12,968 | 388 | |||||||
Sonoco Products | 28,399 | 878 | |||||||
Steel Dynamics (a) | 26,470 | 1,409 | |||||||
Terra Industries (a) (b) | 25,727 | 949 | |||||||
Valspar | 27,869 | 698 | |||||||
Worthington Industries (a) | 20,506 | 513 | |||||||
26,619 | |||||||||
Telecommunication Services – 0.9% | |||||||||
Cincinnati Bell (a) (b) | 68,764 | 373 | |||||||
NeuStar, Class A (a) (b) | 21,179 | 724 | |||||||
Telephone & Data Systems | 29,832 | 2,082 | |||||||
3,179 | |||||||||
Utilities – 7.0% | |||||||||
AGL Resources | 21,761 | 860 | |||||||
Alliant Energy | 34,901 | 1,396 | |||||||
Aqua America (a) | 37,131 | $ | 864 | ||||||
Aquila (a) (b) | 104,758 | 438 | |||||||
Black Hills (a) | 10,128 | 450 | |||||||
DPL (a) | 33,045 | 960 | |||||||
Energy East | 43,862 | 1,223 | |||||||
Equitable Resources (a) | 33,912 | 1,910 | |||||||
Great Plains Energy (a) | 21,010 | 627 | |||||||
Hawaiian Electric Industries | 23,116 | 536 | |||||||
IDACORP (a) | 12,049 | 420 | |||||||
MDU Resources Group | 51,368 | 1,447 | |||||||
National Fuel Gas (a) | 22,405 | 1,086 | |||||||
Northeast Utilities (a) | 43,134 | 1,330 | |||||||
NSTAR (a) | 30,552 | 1,074 | |||||||
OGE Energy (a) | 24,241 | 928 | |||||||
ONEOK | 30,096 | 1,503 | |||||||
Pepco Holdings | 55,942 | 1,594 | |||||||
PNM Resources (a) | 21,486 | 537 | |||||||
Puget Energy | 29,469 | 833 | |||||||
SCANA (a) | 32,688 | 1,327 | |||||||
Sierra Pacific Resources | 62,072 | 1,047 | |||||||
Vectren (a) | 21,758 | 610 | |||||||
Westar Energy (a) | 24,712 | 658 | |||||||
WGL Holdings | 13,811 | 468 | |||||||
Wisconsin Energy | 33,474 | 1,603 | |||||||
25,729 | |||||||||
Total Common Stocks | |||||||||
(Cost $239,525) | 337,730 | ||||||||
Short-Term Investments – 7.4% | |||||||||
Money Market Fund – 7.2% | |||||||||
First American Prime Obligations Fund, Class Z (d) | 26,182,661 | 26,183 | |||||||
U.S. Treasury Obligation – 0.2% | |||||||||
U.S. Treasury Bill 3.813%, 01/24/2008 (e) | $ | 1,000 | 991 | ||||||
Total Short-Term Investments | |||||||||
(Cost $27,172) | 27,174 | ||||||||
Investment Purchased with Proceeds from Securities Lending – 39.7% | |||||||||
Mount Vernon Securities Lending Prime Portfolio (f) (Cost $144,912) | 144,912,282 | 144,912 | |||||||
Total Investments – 139.6% (Cost $411,609) | 509,816 | ||||||||
Other Assets and Liabilities, Net – (39.6)% | (144,716 | ) | |||||||
Total Net Assets – 100.0% | $ | 365,100 | |||||||
(a) | This security or a portion of this security is out on loan at October 31, 2007. Total loaned securities had a market value of $141,917 at October 31, 2007. See note 2 in Notes to Financial Statements. |
(b) | Non-income producing security. |
(c) | Security is fair valued and illiquid. As of October 31, 2007, the market value of this investment was $0 or 0.0% 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 to 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 October 31, 2007. See note 2 in Notes to Financial Statements. |
(f) | The fund may loan securities representing up to one third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks, or other institutional borrowers of securities. The fund maintains collateral equal to at least 100% of the value of the securities loaned. The adequacy of the |
18 First American Funds 2007 Annual Report
Table of Contents
Mid Cap Index Fund (concluded)
collateral is monitored on a daily basis. The cash collateral received by the fund is invested in this affiliated money market fund. See note 2 in Notes to Financial Statements. |
REIT – | Real Estate Investment Trust |
Schedule of Open Futures Contracts
Number of | Notional | |||||||||||||||
Contracts | Contract | Settlement | Unrealized | |||||||||||||
Description | Purchased | Value | Month | Appreciation | ||||||||||||
S&P Mid Cap 400 Futures | 59 | $ | 26,907 | December 2007 | $ | 257 | ||||||||||
Small Cap Index Fund | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Common Stocks – 99.1% | ||||||||
Consumer Discretionary – 14.4% | ||||||||
1-800-Flowers.com, Class A (a) | 2,466 | $ | 30 | |||||
99 Cents Only Stores (a) (b) | 4,300 | 46 | ||||||
A.C. Moore Arts & Crafts (a) | 1,672 | 28 | ||||||
Aaron Rents (b) | 4,243 | 90 | ||||||
Aeropostale (a) (b) | 7,229 | 166 | ||||||
AFC Enterprises (a) | 2,602 | 35 | ||||||
Aftermarket Technology (a) | 2,003 | 69 | ||||||
Ambassadors Group | 1,762 | 32 | ||||||
Ambassadors International | 739 | 15 | ||||||
American Axle & Manufacturing Holdings | 4,102 | 113 | ||||||
American Greetings, Class A (b) | 5,079 | 134 | ||||||
Amerigon (a) (b) | 1,982 | 39 | ||||||
Ameristar Casinos | 2,318 | 75 | ||||||
Andersons | 1,472 | 73 | ||||||
Applebee’s International | 6,873 | 174 | ||||||
Arbitron (b) | 2,961 | 150 | ||||||
Arctic Cat (b) | 1,101 | 16 | ||||||
ArvinMeritor (b) | 6,519 | 97 | ||||||
Asbury Automotive Group (b) | 1,780 | 33 | ||||||
Avatar Holdings (a) (b) | 571 | 27 | ||||||
Bally Technologies (a) (b) | 4,883 | 197 | ||||||
Beazer Homes USA (b) | 3,585 | 40 | ||||||
Bebe Stores | 2,442 | 34 | ||||||
Belo, Class A (b) | 7,763 | 144 | ||||||
Benihana (a) | 1,129 | 20 | ||||||
Big 5 Sporting Goods (b) | 2,245 | 40 | ||||||
BJs Restaurants (a) | 1,504 | 30 | ||||||
Blockbuster, Class A (a) (b) | 17,610 | 93 | ||||||
Blount International (a) | 3,696 | 45 | ||||||
Blue Nile (a) (b) | 1,353 | 107 | ||||||
Bluegreen (a) (b) | 2,437 | 18 | ||||||
BLYTH | 2,331 | 44 | ||||||
Bob Evans Farms | 3,281 | 92 | ||||||
Bon-Ton Stores (b) | 939 | 17 | ||||||
Books-A-Million | 1,464 | 20 | ||||||
Borders Group (b) | 5,370 | 83 | ||||||
Brookfield Homes (b) | 1,212 | 18 | ||||||
Brown Shoe | 4,135 | 84 | ||||||
Buckle | 1,238 | 53 | ||||||
Buffalo Wild Wings (a) | 1,620 | 50 | ||||||
Build-A-Bear Workshop (a) (b) | 1,521 | 29 | ||||||
Building Materials Holding (b) | 2,847 | 22 | ||||||
Cabelas (a) (b) | 2,984 | 58 | ||||||
Cache (a) | 1,342 | 21 | ||||||
California Pizza Kitchen (a) | 2,666 | 43 | ||||||
Callaway Golf | 6,616 | 115 | ||||||
Capella Education Company (a) | 985 | 61 | ||||||
Carmike Cinemas (b) | 1,203 | 19 | ||||||
Carrols Restaurant Group (a) | 912 | 10 | ||||||
Carters (a) (b) | 4,567 | 101 | ||||||
Casual Male Retail Group (a) | 2,913 | 24 | ||||||
Cato, Class A (b) | 2,967 | 60 | ||||||
CBRL Group (b) | 2,417 | 96 | ||||||
CEC Entertainment (a) | 2,624 | 78 | ||||||
Champion Enterprise (a) (b) | 7,038 | 83 | ||||||
Charlotte Russe Holding (a) | 2,320 | 34 | ||||||
Charming Shoppes (a) (b) | 11,352 | 84 | ||||||
Charter Communications, Class A (a) (b) | 37,736 | 78 | ||||||
Cherokee | 764 | 29 | ||||||
Children’s Place Retail Stores (a) | 2,062 | 53 | ||||||
Chipotle Mexican Grill, Class B (a) | 3,006 | 371 | ||||||
Christopher & Banks (b) | 3,319 | 46 | ||||||
Churchill Downs | 783 | 40 | ||||||
Cinemark Holdings (a) | 2,567 | 44 | ||||||
Citadel Broadcasting | 16,706 | 73 |
First American Funds 2007 Annual Report 19
Table of Contents
Schedule of Investments October 31, 2007, all dollars are rounded to thousands (000)
Small Cap Index Fund (continued) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Citi Trends (a) (b) | 1,271 | $ | 25 | |||||
CKE Restaurants (b) | 5,781 | 94 | ||||||
CKX (a) (b) | 4,371 | 53 | ||||||
Coinmach Service (b) | 2,558 | 34 | ||||||
Coinstar (a) | 2,654 | 91 | ||||||
Collective Brands (a) (b) | 5,987 | 111 | ||||||
Columbia Sportswear (b) | 1,074 | 52 | ||||||
Conn’s (a) (b) | 806 | 21 | ||||||
Cooper Tire & Rubber | 5,461 | 122 | ||||||
Core Mark Holding (a) | 801 | 28 | ||||||
Corinthian Colleges (a) (b) | 7,945 | 130 | ||||||
Courier | 1,043 | 39 | ||||||
Cox Radio (a) | 3,049 | 37 | ||||||
Crown Media Holdings, Class A (a) | 2,148 | 17 | ||||||
CSK Auto (a) (b) | 4,308 | 49 | ||||||
CSS Industries | 712 | 28 | ||||||
Cumulus Media, Class A (a) | 3,361 | 35 | ||||||
Deckers Outdoor (a) | 1,126 | 157 | ||||||
Denny’s (a) | 10,082 | 49 | ||||||
DeVry (b) | 5,497 | 301 | ||||||
DG Fastchannel (a) | 1,213 | 30 | ||||||
Dolan Media (a) | 974 | 26 | ||||||
Domino’s Pizza (b) | 3,729 | 58 | ||||||
Dover Downs Gaming & Entertainment | 1,280 | 14 | ||||||
Dress Barn (a) | 4,294 | 70 | ||||||
Drew Industries (a) | 1,723 | 68 | ||||||
DSW (a) (b) | 1,437 | 32 | ||||||
Eddie Bauer (a) | 2,792 | 21 | ||||||
Emmis Communications, Class A | 2,918 | 15 | ||||||
Entercom Communications (b) | 3,001 | 56 | ||||||
Entravision Communications (a) (b) | 6,791 | 62 | ||||||
Ethan Allen Interiors (b) | 2,427 | 75 | ||||||
Exide Technologies (a) (b) | 6,974 | 58 | ||||||
Finish Line, Class A | 4,456 | 17 | ||||||
Fisher Communications (a) | 548 | 26 | ||||||
Fleetwood Enterprises (a) (b) | 6,326 | 57 | ||||||
Fossil (a) | 4,001 | 150 | ||||||
Fred’s (b) | 3,674 | 39 | ||||||
Furniture Brands International (b) | 4,433 | 53 | ||||||
Gaiam (a) | 1,680 | 39 | ||||||
Gander Mountain (a) (b) | 462 | 2 | ||||||
Gatehouse Media | 30 | — | ||||||
Gaylord Entertainment (a) (b) | 3,740 | 204 | ||||||
Gemstar-TV Guide International (a) | 22,961 | 158 | ||||||
Genesco (a) | 2,087 | 96 | ||||||
GenTek (a) | 1,055 | 36 | ||||||
G-iii Apparel Group (a) | 1,193 | 19 | ||||||
Global Sources (a) (b) | 1,441 | 47 | ||||||
Gray Television | 4,036 | 38 | ||||||
Great Wolf Resorts (a) | 2,676 | 35 | ||||||
Group 1 Automotive (b) | 2,226 | 69 | ||||||
GSI Commerce (a) (b) | 1,832 | 52 | ||||||
Gymboree (a) | 2,811 | 96 | ||||||
Harris Interactive (a) | 4,835 | 22 | ||||||
Haverty Furniture (b) | 2,038 | 17 | ||||||
Hayes Lemmerz International (a) (b) | 8,714 | 41 | ||||||
Heelys (a) (b) | 625 | 5 | ||||||
Helen of Troy (a) | 2,779 | 50 | ||||||
Hibbett Sports (a) (b) | 2,898 | 68 | ||||||
Home Solutions of America (a) (b) | 3,616 | 9 | ||||||
Hooker Furniture | 926 | 20 | ||||||
Hot Topic (a) | 4,343 | 33 | ||||||
Hovnanian Enterprises, Class A (a) (b) | 3,432 | 39 | ||||||
Iconix Brand Group (a) | 4,649 | 106 | ||||||
IHOP (b) | 1,612 | 102 | ||||||
Insight Enterprises (a) (b) | 4,433 | 123 | ||||||
Interactive Data | 3,166 | 102 | ||||||
Interface, Class A | 4,775 | 91 | ||||||
INVESTools (a) | 4,796 | 70 | ||||||
iRobot (a) (b) | 1,301 | 24 | ||||||
Isle of Capri Casinos (a) (b) | 1,485 | 30 | ||||||
J. Crew Group (a) (b) | 3,572 | 134 | ||||||
Jack in the Box (a) | 5,742 | 180 | ||||||
JAKKS Pacific (a) | 2,730 | 72 | ||||||
Jamba (a) (b) | 4,770 | 26 | ||||||
Jo-Ann Stores (a) | 2,365 | 46 | ||||||
Jos. A. Bank Clothiers (a) (b) | 1,776 | 52 | ||||||
Journal Communications, Class A | 3,905 | 35 | ||||||
Kellwood | 2,385 | 40 | ||||||
Kenneth Cole Productions | 902 | 17 | ||||||
Kimball International | 1,916 | 26 | ||||||
Knology (a) | 2,387 | 40 | ||||||
Krispy Kreme Doughnuts (a) (b) | 5,859 | 19 | ||||||
K-Swiss, Class A | 2,505 | 59 | ||||||
Lakes Entertainment (a) | 1,634 | 14 | ||||||
Landry’s Restaurants (b) | 1,551 | 45 | ||||||
La-Z-Boy (b) | 4,711 | 37 | ||||||
LeapFrog Enterprises (a) (b) | 3,420 | 26 | ||||||
Lear (a) (b) | 7,001 | 249 | ||||||
Lee Enterprises (b) | 4,223 | 68 | ||||||
Libbey (b) | 1,321 | 24 | ||||||
Life Time Fitness (a) (b) | 2,955 | 179 | ||||||
Lifetime Brands (b) | 1,164 | 19 | ||||||
Lin TV, Class A (a) | 2,501 | 36 | ||||||
Lithia Motors (b) | 1,630 | 28 | ||||||
Live Nation (a) | 6,163 | 126 | ||||||
LKQ (a) (b) | 4,619 | 178 | ||||||
LodgeNet Entertainment (a) (b) | 2,084 | 45 | ||||||
Lodgian (a) | 1,720 | 21 | ||||||
Lululemon Athletica (a) (b) | 1,282 | 68 | ||||||
M/ I Homes | 1,107 | 18 | ||||||
Maidenform Brands (a) | 2,108 | 31 | ||||||
Marcus | 1,941 | 37 | ||||||
Marine Products | 1,449 | 12 | ||||||
MarineMax (a) (b) | 1,435 | 20 | ||||||
Martha Stewart Living (a) (b) | 2,462 | 34 | ||||||
Marvel Entertainment (a) (b) | 4,866 | 120 | ||||||
Matthews International, Class A | 3,101 | 141 | ||||||
McCormick & Schmick’s Seafood Restaurants (a) | 1,002 | 17 | ||||||
Media General, Class A | 2,028 | 57 | ||||||
Mediacom Communications (a) | 5,449 | 31 | ||||||
Men’s Wearhouse (b) | 4,736 | 200 | ||||||
Meritage Homes (a) (b) | 2,276 | 37 | ||||||
Midas (a) | 1,370 | 22 | ||||||
Modine Manufacturing | 2,973 | 69 | ||||||
Monaco Coach | 2,895 | 34 | ||||||
Monarch Casino & Resort (a) | 1,007 | 31 | ||||||
Monro Muffler Brake | 1,650 | 38 | ||||||
Morgans Hotel Group (a) | 1,859 | 42 | ||||||
Morningstar (a) | 1,359 | 101 | ||||||
Mortons Restaurant Group (a) | 387 | 5 | ||||||
Movado Group | 1,578 | 47 | ||||||
MTR Gaming Group (a) | 1,880 | 16 | ||||||
Multimedia Games (a) (b) | 2,708 | 24 | ||||||
National Cinemedia (a) | 2,917 | 79 | ||||||
National Presto Industries | 428 | 23 | ||||||
Nautilus (b) | 2,893 | 19 | ||||||
Netflix (a) (b) | 4,281 | 113 | ||||||
New York & Company (a) | 2,209 | 16 | ||||||
Nexstar Broadcasting Group (a) | 975 | 9 | ||||||
Noble International | 1,129 | 21 | ||||||
Oakley | 2,345 | 69 | ||||||
O’Charleys | 2,439 | 39 | ||||||
Orbitz Worldwide (a) | 3,106 | 33 |
20 First American Funds 2007 Annual Report
Table of Contents
Small Cap Index Fund (continued) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Overstock.com (a) (b) | 1,510 | $ | 59 | |||||
Oxford Industries (b) | 1,516 | 39 | ||||||
P.F. Chang’s China Bistro (a) (b) | 2,365 | 69 | ||||||
Pacific Sunwear of California (a) (b) | 6,440 | 108 | ||||||
Palm Harbor Homes (a) (b) | 1,060 | 15 | ||||||
Papa John’s International (a) | 1,973 | 46 | ||||||
Pep Boys – Manny, Moe & Jack | 3,863 | 57 | ||||||
Perry Ellis International (a) | 1,055 | 24 | ||||||
PetMed Express (a) | 1,938 | 28 | ||||||
Pier 1 Imports | 8,098 | 41 | ||||||
Pinnacle Entertainment (a) | 5,436 | 159 | ||||||
Playboy Enterprises, Class B (a) | 2,269 | 25 | ||||||
Polaris Industries (b) | 3,280 | 161 | ||||||
Premier Exibitions (a) (b) | 2,682 | 30 | ||||||
Prestige Brand Holdings (a) (b) | 3,069 | 32 | ||||||
Priceline.com (a) (b) | 3,475 | 324 | ||||||
Primedia (a) | 4,043 | 37 | ||||||
Quiksilver (a) | 11,841 | 160 | ||||||
Radio One (a) | 7,016 | 24 | ||||||
Raser Technologies (a) (b) | 2,851 | 32 | ||||||
RC2 (a) (b) | 1,943 | 58 | ||||||
RCN | 2,496 | 36 | ||||||
Red Robin Gourmet Burgers (a) | 1,683 | 67 | ||||||
Regis | 4,063 | 137 | ||||||
Rent-A-Center (a) (b) | 6,453 | 103 | ||||||
Retail Ventures (a) (b) | 2,358 | 20 | ||||||
Riviera Holdings (a) | 927 | 26 | ||||||
Ruby Tuesday (b) | 4,980 | 80 | ||||||
Russ Berrie and Company (a) | 1,524 | 27 | ||||||
Ruth’s Chris Steak House (a) | 1,802 | 23 | ||||||
Salem Communications | 843 | 7 | ||||||
Sally Beauty Holdings (a) | 8,583 | 79 | ||||||
Sauer-Danfoss (b) | 1,100 | 28 | ||||||
Scholastic (a) | 2,799 | 111 | ||||||
Sealy (b) | 4,101 | 54 | ||||||
Select Comfort (a) (b) | 4,521 | 52 | ||||||
Shoe Carnival (a) | 870 | 14 | ||||||
Shuffle Master (a) (b) | 3,420 | 47 | ||||||
Shutterfly (a) | 1,339 | 45 | ||||||
Sinclair Broadcast Group, Class A | 4,585 | 55 | ||||||
Six Flags (a) (b) | 6,995 | 23 | ||||||
Skechers U.S.A., Class A (a) (b) | 1,870 | 46 | ||||||
Skyline | 671 | 24 | ||||||
Smith & Wesson (a) (b) | 3,013 | 36 | ||||||
Sonic Automotive, Class A | 2,843 | 72 | ||||||
Sonic (a) (b) | 5,804 | 144 | ||||||
Source Interlink Companies (a) (b) | 3,515 | 11 | ||||||
Spanish Broadcasting System (a) | 3,696 | 10 | ||||||
Spartan Motors (b) | 2,953 | 41 | ||||||
Speedway Motorsports | 1,277 | 46 | ||||||
Stage Stores | 4,230 | 79 | ||||||
Stamps.com (a) | 1,597 | 22 | ||||||
Standard Motor Products | 1,444 | 12 | ||||||
Standard-Pacific (b) | 5,938 | 28 | ||||||
Steak ’N Shake (a) | 2,672 | 40 | ||||||
Stein Mart | 2,713 | 18 | ||||||
Steiner Leisure (a) | 1,566 | 70 | ||||||
Steinway Musical Instruments | 851 | 25 | ||||||
Steven Madden | 2,047 | 46 | ||||||
Stoneridge (a) | 1,302 | 13 | ||||||
Strayer Education (b) | 1,411 | 263 | ||||||
Sturm, Ruger & Company (a) | 2,077 | 19 | ||||||
Sun-Times Media Group | 6,396 | 14 | ||||||
Superior Industries International (b) | 1,550 | 31 | ||||||
Syntax Brillian (a) (b) | 5,260 | 24 | ||||||
Systemax (b) | 949 | 22 | ||||||
Talbots (b) | 2,125 | 31 | ||||||
Tarragon Realty Investors (a) (b) | 1,203 | 2 | ||||||
Tempur-Pedic International (b) | 7,611 | 274 | ||||||
Tenneco Automotive (a) | 4,438 | 136 | ||||||
Texas Roadhouse, Class A (a) | 5,257 | 67 | ||||||
Timberland, Class A (a) (b) | 4,330 | 84 | ||||||
TiVo (a) (b) | 7,852 | 56 | ||||||
Town Sports International Holdings (a) | 1,490 | 23 | ||||||
Triarc, Class B | 5,425 | 61 | ||||||
True Religion Apparel (a) (b) | 1,361 | 21 | ||||||
Trump Entertainment Resorts (a) (b) | 3,004 | 23 | ||||||
Tuesday Morning (b) | 2,842 | 22 | ||||||
Tupperware | 5,563 | 201 | ||||||
Tween Brands (a) (b) | 2,814 | 86 | ||||||
Under Armour (a) (b) | 2,148 | 134 | ||||||
UniFirst | 1,031 | 39 | ||||||
Universal Electronics (a) | 1,370 | 49 | ||||||
Vail Resorts (a) | 2,863 | 174 | ||||||
Valassis Communications (a) (b) | 4,391 | 43 | ||||||
ValueVision Media (a) | 2,437 | 13 | ||||||
VistaPrint (a) (b) | 3,957 | 188 | ||||||
Visteon (a) | 12,589 | 80 | ||||||
Volcom (a) | 1,355 | 40 | ||||||
Warnaco Group, Class A (a) | 4,246 | 173 | ||||||
WCI Communities (a) (b) | 2,832 | 15 | ||||||
West Marine (a) (b) | 1,439 | 16 | ||||||
Westwood One (b) | 6,384 | 14 | ||||||
Wet Seal, Class A (a) (b) | 7,734 | 20 | ||||||
Weyco Group | 236 | 8 | ||||||
Winnebago Industries (b) | 2,898 | 75 | ||||||
WMS Industries (a) (b) | 3,678 | 128 | ||||||
Wolverine World Wide (b) | 4,995 | 128 | ||||||
World Wrestling Entertainment | 2,097 | 32 | ||||||
Xerium Technologies | 1,754 | 7 | ||||||
Zale (a) (b) | 4,491 | 95 | ||||||
Zumiez (a) (b) | 1,489 | 62 | ||||||
18,438 | ||||||||
Consumer Staples – 2.9% | ||||||||
Alico | 408 | 19 | ||||||
Alliance One International (a) | 9,526 | 62 | ||||||
American Dairy (a) (b) | 595 | 13 | ||||||
American Oriental Bioengineering (a) (b) | 4,614 | 64 | ||||||
Arden Group, Class A | 107 | 15 | ||||||
Boston Beer, Class A (a) | 565 | 29 | ||||||
Cadiz (a) (b) | 1,089 | 21 | ||||||
Cal-Maine Foods (b) | 1,155 | 28 | ||||||
Casey’s General Stores | 4,633 | 132 | ||||||
Central European Distribution (a) (b) | 2,968 | 158 | ||||||
Central Garden & Pet, Class A (a) | 5,782 | 48 | ||||||
Chattem (a) (b) | 1,555 | 116 | ||||||
Chiquita Brands International (b) | 3,893 | 73 | ||||||
Coca-Cola Bottling | 491 | 29 | ||||||
Darling International (a) | 6,972 | 70 | ||||||
Elizabeth Arden (a) (b) | 2,236 | 56 | ||||||
Farmer Brothers | 747 | 19 | ||||||
Flowers Foods | 7,038 | 154 | ||||||
Fresh Del Monte Produce | 2,604 | 94 | ||||||
Great Atlantic & Pacific Tea (a) (b) | 1,800 | 58 | ||||||
Green Mountain Coffee Roasters (a) (b) | 1,713 | 64 | ||||||
Hain Celestial Group (a) (b) | 3,015 | 106 | ||||||
Imperial Sugar (b) | 1,167 | 30 | ||||||
Ingles Markets, Class A | 1,157 | 32 | ||||||
Inter Parfums | 546 | 13 | ||||||
J&J Snack Foods | 1,380 | 49 | ||||||
Jones Soda (a) (b) | 2,259 | 21 | ||||||
Lancaster Colony | 2,003 | 80 | ||||||
Lance | 2,843 | 60 | ||||||
Longs Drug Stores | 3,022 | 159 |
First American Funds 2007 Annual Report 21
Table of Contents
Schedule of Investments October 31, 2007, all dollars are rounded to thousands (000)
Small Cap Index Fund (continued) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
M & F Worldwide (a) (b) | 1,078 | $ | 57 | |||||
Mannatech (b) | 1,753 | 14 | ||||||
Maui Land & Pineapple (a) | 476 | 14 | ||||||
MGP Ingredients | 986 | 9 | ||||||
Nash-Finch (b) | 1,230 | 46 | ||||||
National Beverage | 996 | 8 | ||||||
Nu Skin Enterprises, Class A (b) | 4,613 | 80 | ||||||
Pantry (a) (b) | 2,099 | 59 | ||||||
Pathmark Stores (a) | 2,943 | 39 | ||||||
Peets Coffee & Tea (a) (b) | 1,360 | 37 | ||||||
Performance Food Group (a) | 3,240 | 87 | ||||||
Pilgrim’s Pride | 3,890 | 115 | ||||||
PriceSmart | 925 | 26 | ||||||
Ralcorp Holdings (a) | 2,499 | 141 | ||||||
Reddy Ice Holdings | 1,277 | 35 | ||||||
Revlon (a) | 21,633 | 25 | ||||||
Ruddick (b) | 3,526 | 120 | ||||||
Sanderson Farms | 1,551 | 54 | ||||||
Seaboard | 35 | 57 | ||||||
Spartan Stores | 2,257 | 50 | ||||||
Spectrum Brands (a) | 3,562 | 15 | ||||||
Synutra International (a) (b) | 367 | 11 | ||||||
Tiens Biotech Group USA (a) (b) | 625 | 2 | ||||||
Tootsie Roll Industries | 3,248 | 84 | ||||||
Treehouse Foods (a) | 2,854 | 80 | ||||||
United Natural Foods (a) (b) | 3,926 | 114 | ||||||
Universal | 2,395 | 117 | ||||||
USANA Health Sciences (a) (b) | 774 | 32 | ||||||
Vector Group (b) | 2,857 | 62 | ||||||
Village Super Market | 340 | 19 | ||||||
WD-40 Company (b) | 1,613 | 64 | ||||||
Weis Markets | 834 | 37 | ||||||
Winn Dixie Stores (a) (b) | 3,139 | 74 | ||||||
3,656 | ||||||||
Energy – 5.8% | ||||||||
Allis Chalmers Energy (a) (b) | 2,316 | 41 | ||||||
Alon USA Energy | 958 | 35 | ||||||
Arena Resources (a) | 2,588 | 94 | ||||||
Arlington Tankers | 58 | 1 | ||||||
Atlas America | 2,166 | 125 | ||||||
ATP Oil & Gas (a) (b) | 1,974 | 113 | ||||||
Atwood Oceanics (a) (b) | 2,748 | 231 | ||||||
Aventine Renewable Energy (a) (b) | 2,748 | 29 | ||||||
Basic Energy Services (a) (b) | 3,747 | 74 | ||||||
Berry Petroleum, Class A (b) | 3,472 | 169 | ||||||
Bill Barrett (a) (b) | 2,941 | 138 | ||||||
Bois D’ Arc Energy (a) | 1,447 | 32 | ||||||
BPZ Energy (a) (b) | 4,732 | 54 | ||||||
Brigham Exploration (a) | 4,699 | 35 | ||||||
Bristow Group (a) | 1,855 | 93 | ||||||
Bronco Drilling (a) (b) | 2,385 | 32 | ||||||
Cal Dive (a) (b) | 2,049 | 27 | ||||||
Callon Petroleum (a) | 2,099 | 31 | ||||||
Carbo Ceramics (b) | 1,924 | 86 | ||||||
Carrizo Oil & Gas (a) | 2,168 | 111 | ||||||
Clayton Williams Energy (a) | 521 | 16 | ||||||
Complete Production Services (a) | 3,919 | 78 | ||||||
Comstock Resources (a) (b) | 4,227 | 155 | ||||||
Concho Resources (a) | 1,896 | 37 | ||||||
Contango Oil & Gas Company (a) | 1,202 | 53 | ||||||
Crosstex Energy (b) | 2,491 | 92 | ||||||
Dawson Geophysical (a) | 777 | 62 | ||||||
Delek US Holdings | 1,078 | 26 | ||||||
Delta Petroleum (a) (b) | 6,021 | 113 | ||||||
Dril-Quip (a) | 2,287 | 122 | ||||||
Edge Petroleum (a) (b) | 2,609 | 24 | ||||||
Encore Acquisition (a) (b) | 4,943 | 181 | ||||||
Energy Partners (a) | 2,590 | 40 | ||||||
Evergreen Energy (a) (b) | 7,671 | 36 | ||||||
EXCO Resources (a) | 5,372 | 91 | ||||||
Exterran Holdings (a) (b) | 5,585 | 470 | ||||||
FX Energy (a) | 3,274 | 23 | ||||||
General Maritime (b) | 2,624 | 74 | ||||||
GeoGlobal Resources (a) (b) | 3,096 | 12 | ||||||
Geokinetics (a) | 626 | 13 | ||||||
Geomet (a) | 1,658 | 9 | ||||||
GMX Resources (a) (b) | 909 | 35 | ||||||
Golar LNG (b) | 3,199 | 83 | ||||||
Goodrich Petroleum (a) (b) | 1,299 | 43 | ||||||
Grey Wolf (a) (b) | 18,858 | 106 | ||||||
Gulf Island Fabrication | 665 | 23 | ||||||
GulfMark Offshore (a) | 1,686 | 79 | ||||||
Gulfport Energy (a) | 1,811 | 40 | ||||||
Harvest Natural Resources (a) | 3,443 | 47 | ||||||
Hercules Offshore (a) (b) | 7,570 | 205 | ||||||
Horizon Offshore (a) | 2,996 | 48 | ||||||
Hornbeck Offshore Services (a) (b) | 2,222 | 87 | ||||||
International Coal Group (a) (b) | 11,239 | 60 | ||||||
Ion Geophysical (a) (b) | 6,519 | 99 | ||||||
Kayne Anderson Energy | 917 | 23 | ||||||
Knightsbridge Tankers (b) | 1,569 | 40 | ||||||
Lufkin Industries | 1,456 | 87 | ||||||
Mariner Energy (a) (b) | 7,134 | 178 | ||||||
MarkWest Hydrocarbon | 615 | 37 | ||||||
Matrix Service (a) | 2,126 | 63 | ||||||
McMoRan Exploration (a) (b) | 2,624 | 32 | ||||||
Meridian Resource (a) | 8,478 | 21 | ||||||
Natco Group (a) (b) | 1,510 | 81 | ||||||
Newpark Resources (a) | 8,245 | 52 | ||||||
NGP Capital Resources | 1,712 | 27 | ||||||
Nova Biosource Fuels (a) (b) | 2,875 | 8 | ||||||
NTR Acquisition (a) | 2,385 | 23 | ||||||
Oil States International (a) (b) | 4,799 | 207 | ||||||
Oilsands Quest (a) (b) | 11,455 | 63 | ||||||
Pacific Ethanol (a) (b) | 3,263 | 26 | ||||||
Parallel Petroleum (a) (b) | 3,708 | 76 | ||||||
Parker Drilling (a) | 10,452 | 88 | ||||||
Penn Virginia (b) | 3,668 | 178 | ||||||
Petrocorp, Escrow Shares (a) (b) (c) | 2,040 | — | ||||||
Petrohawk Energy (a) | 15,552 | 288 | ||||||
Petroleum Development (a) | 1,420 | 65 | ||||||
PetroQuest Energy (a) | 4,409 | 57 | ||||||
PHI (a) | 1,249 | 43 | ||||||
Pioneer Drilling (a) | 4,273 | 52 | ||||||
Rentech (a) (b) | 14,902 | 32 | ||||||
Resource America, Class A (b) | 1,211 | 19 | ||||||
Rosetta Resources (a) | 4,863 | 92 | ||||||
RPC (b) | 3,146 | 35 | ||||||
Ship Finance International (b) | 2,889 | 79 | ||||||
Stone Energy (a) | 2,584 | 115 | ||||||
SulphCo (a) (b) | 4,050 | 26 | ||||||
Superior Offshore International (a) | 933 | 10 | ||||||
Superior Well Services (a) | 1,436 | 29 | ||||||
Swift Energy (a) (b) | 2,742 | 130 | ||||||
T-3 Energy Services (a) | 497 | 24 | ||||||
Toreador Resources (a) (b) | 1,383 | 15 | ||||||
Trico Marine Service (a) (b) | 874 | 28 | ||||||
TXCO Resources (a) | 3,013 | 35 | ||||||
Union Drilling (a) | 904 | 12 | ||||||
US BioEnergy (a) | 1,060 | 8 | ||||||
Vaalco Energy (a) | 5,952 | 30 | ||||||
Venoco (a) | 1,144 | 26 | ||||||
VeraSun Energy (a) (b) | 3,026 | 41 | ||||||
Warren Resources (a) | 5,510 | 84 |
22 First American Funds 2007 Annual Report
Table of Contents
Small Cap Index Fund (continued) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
W-H Energy Services (a) | 2,790 | $ | 161 | |||||
Whiting Petroleum (a) (b) | 3,558 | 192 | ||||||
Willbros Group (a) (b) | 2,388 | 91 | ||||||
World Fuel Services | 2,667 | 118 | ||||||
7,480 | ||||||||
�� | ||||||||
Financials – 19.0% | ||||||||
1st Source | 1,166 | 22 | ||||||
Abington Bancorp | 962 | 9 | ||||||
ACA Capital Holdings (a) (b) | 751 | 3 | ||||||
Acadia Realty Trust – REIT (b) | 2,973 | 79 | ||||||
Advance America Cash Advance Centers | 6,119 | 59 | ||||||
Advanta, Class B | 3,044 | 48 | ||||||
Agree Realty – REIT | 368 | 12 | ||||||
Alabama National BanCorporation | 1,469 | 116 | ||||||
Alesco Financial (b) | 5,555 | 22 | ||||||
Alexander’s – REIT (a) | 214 | 86 | ||||||
Alexandria Real Estate Equities – REIT (b) | 2,329 | 240 | ||||||
Alfa (b) | 3,445 | 63 | ||||||
AMCORE Financial | 2,238 | 53 | ||||||
American Campus Communities – REIT | 1,617 | 46 | ||||||
American Equity Investment Life Holding (b) | 5,711 | 56 | ||||||
American Financial Realty Trust – REIT | 12,287 | 83 | ||||||
American Physicians Capital (b) | 1,118 | 49 | ||||||
American West Bancorp | 1,111 | 21 | ||||||
Ameris Bancorp | 1,239 | 21 | ||||||
Amerisafe (a) | 1,723 | 28 | ||||||
Amtrust Financial Services (b) | 2,347 | 33 | ||||||
Anchor Bancorp (b) | 1,921 | 47 | ||||||
Anthracite Capital – REIT | 6,106 | 51 | ||||||
Anworth Mortgage Asset – REIT (b) | 5,669 | 39 | ||||||
Apollo Investment (b) | 7,623 | 159 | ||||||
Arbor Realty Trust – REIT | 918 | 17 | ||||||
Ares Capital (b) | 4,138 | 69 | ||||||
Argo Group International Holdings (a) (b) | 2,636 | 112 | ||||||
Ashford Hospitality Trust – REIT (b) | 10,140 | 100 | ||||||
Aspen Insurance | 8,083 | 221 | ||||||
Assured Guaranty | 6,216 | 143 | ||||||
Asta Funding (b) | 1,139 | 40 | ||||||
Baldwin & Lyons, Class B | 905 | 24 | ||||||
BancFirst | 731 | 33 | ||||||
Banco Latinoamericano de Exportaciones | 2,496 | 49 | ||||||
Bancorp Bank (a) | 1,104 | 20 | ||||||
Bank Mutual | 5,073 | 56 | ||||||
Bank of the Ozarks (b) | 1,551 | 45 | ||||||
BankAtlantic Bancorp, Class A (b) | 4,612 | 19 | ||||||
BankFinancial | 1,730 | 28 | ||||||
BankUnited Financial, Class A (b) | 2,794 | 24 | ||||||
Banner | 1,220 | 40 | ||||||
Berkshire Hills Bancorp (b) | 726 | 20 | ||||||
BioMed Realty Trust – REIT (b) | 6,215 | 148 | ||||||
Boston Private Financial (b) | 3,392 | 98 | ||||||
Brookline Bancorp (b) | 5,782 | 62 | ||||||
Calamos Asset Management | 2,561 | 87 | ||||||
Capital City Bank Group (b) | 1,449 | 41 | ||||||
Capital Corporation of the West | 1,032 | 20 | ||||||
Capital Lease Funding – REIT (b) | 3,230 | 30 | ||||||
Capital Southwest (b) | 304 | 37 | ||||||
Capital Trust – REIT (b) | 1,497 | 50 | ||||||
Capitol Bancorp (b) | 1,428 | 30 | ||||||
Cascade Bancorp (b) | 2,280 | 44 | ||||||
Cash America International (b) | 2,723 | 106 | ||||||
Cathay General Bancorp (b) | 4,770 | 148 | ||||||
CBRE Realty Finance – REIT | 1,153 | 6 | ||||||
Cedar Shopping Centers – REIT | 4,180 | 54 | ||||||
Centennial Bank Holdings (a) | 4,998 | 28 | ||||||
Center Financial | 1,375 | 18 | ||||||
Centerline Holdings (b) | 5,382 | 74 | ||||||
Central Pacific Financial | 2,818 | 63 | ||||||
Chemical Financial (b) | 2,275 | 57 | ||||||
Chittenden (b) | 4,228 | 151 | ||||||
Citizens Banking (b) | 6,942 | 106 | ||||||
Citizens (a) (b) | 1,692 | 15 | ||||||
City Bank (b) | 1,284 | 31 | ||||||
City Holdings | 1,907 | 72 | ||||||
Clayton Holdings (a) | 890 | 4 | ||||||
Clifton Savings Bancorp | 2,036 | 22 | ||||||
CNA Surety (a) | 1,651 | 33 | ||||||
CoBiz | 1,846 | 33 | ||||||
Cohen & Steers (b) | 1,571 | 59 | ||||||
Columbia Banking System | 1,656 | 51 | ||||||
Commerce Group (b) | 5,058 | 185 | ||||||
Community Bancorp – Nevada (a) (b) | 218 | 4 | ||||||
Community Bank System | 3,220 | 67 | ||||||
Community Banks | 2,387 | 72 | ||||||
Community Trust Bancorp | 1,395 | 41 | ||||||
Compass Diversified Trust | 1,940 | 31 | ||||||
CompuCredit (a) (b) | 1,865 | 37 | ||||||
Consolidated-Tomoka Land | 558 | 38 | ||||||
Corporate Office Properties Trust – REIT (b) | 3,730 | 154 | ||||||
Corus Bankshares (b) | 3,569 | 39 | ||||||
Cousins Properties – REIT (b) | 3,768 | 108 | ||||||
Cowen Group (a) | 1,449 | 18 | ||||||
Crawford & Company (a) | 1,640 | 11 | ||||||
Credit Acceptance (a) | 469 | 11 | ||||||
Crystal River Capital – REIT | 2,292 | 33 | ||||||
CVB Financial (b) | 6,081 | 71 | ||||||
DCT Industrial Trust – REIT (b) | 14,955 | 160 | ||||||
Deerfield Triarc Capital – REIT (b) | 4,236 | 40 | ||||||
Delphi Financial Group, Class A (b) | 3,982 | 154 | ||||||
Delta Financial (b) | 1,515 | 8 | ||||||
DiamondRock Hospitality – REIT (b) | 7,386 | 142 | ||||||
Digital Realty Trust – REIT (b) | 4,886 | 215 | ||||||
Dime Community Bancshares | 3,192 | 46 | ||||||
Dollar Financial (a) | 1,471 | 48 | ||||||
Donegal Group, Class A | 1,616 | 28 | ||||||
Downey Financial (b) | 1,684 | 69 | ||||||
EastGroup Properties – REIT (b) | 2,177 | 104 | ||||||
Education Realty Trust – REIT | 2,645 | 34 | ||||||
eHealth (a) (b) | 558 | 16 | ||||||
EMC Insurance Group | 583 | 15 | ||||||
Employers Holdings | 3,225 | 62 | ||||||
Encore Capital Group (a) (b) | 1,474 | 17 | ||||||
Energy Infrastructure Acquisition (a) | 2,046 | 20 | ||||||
Enstar Group | 643 | 82 | ||||||
Enterprise Financial Services (b) | 999 | 22 | ||||||
Entertainment Properties Trust – REIT (b) | 2,444 | 134 | ||||||
Epoch Holdings | 797 | 11 | ||||||
Equity Lifestyle Properties – REIT (b) | 2,169 | 109 | ||||||
Equity One – REIT | 4,053 | 106 | ||||||
eSpeed, Class A (a) | 2,505 | 25 | ||||||
Evercore Partners | 804 | 21 | ||||||
Extra Space Storage – REIT (b) | 5,489 | 86 | ||||||
Ezcorp (a) | 3,664 | 48 | ||||||
F.N.B. (b) | 5,535 | 92 | ||||||
FBL Financial Group, Class A | 922 | 37 | ||||||
FBR Capital Markets (a) (b) | 2,837 | 36 | ||||||
Fcstone Group (a) | 807 | 28 | ||||||
Federal Agricultural Mortgage, Class C (b) | 1,135 | 33 | ||||||
FelCor Lodging Trust – REIT (b) | 5,480 | 115 | ||||||
Financial Federal (b) | 2,491 | 67 | ||||||
First Acceptance (a) | 1,941 | 8 | ||||||
First Bancorp – North Carolina | 1,267 | 23 | ||||||
First Bancorp of Puerto Rico (b) | 7,238 | 64 | ||||||
First Busey | 1,472 | 31 |
First American Funds 2007 Annual Report 23
Table of Contents
Schedule of Investments October 31, 2007, all dollars are rounded to thousands (000)
Small Cap Index Fund (continued) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
First Cash Financial Services (a) | 2,408 | $ | 47 | |||||
First Charter (b) | 3,188 | 97 | ||||||
First Commonwealth Financial – Pennsylvania (b) | 6,786 | 78 | ||||||
First Community Bancorp | 1,945 | 95 | ||||||
First Community Bancshares – Nevada | 982 | 34 | ||||||
First Financial – Indiana | 1,210 | 37 | ||||||
First Financial Bancorp – Ohio | 3,385 | 40 | ||||||
First Financial Bankshares | 2,027 | 79 | ||||||
First Financial Holdings | 1,377 | 40 | ||||||
First Indiana | 1,313 | 42 | ||||||
First Industrial Realty Trust – REIT (b) | 4,162 | 170 | ||||||
First Merchants | 1,679 | 37 | ||||||
First Mercury Financial (a) | 1,133 | 25 | ||||||
First Midwest Bancorp (b) | 4,559 | 154 | ||||||
First Niagara Financial Group (b) | 10,931 | 144 | ||||||
First Place Financial | 1,642 | 27 | ||||||
First Potomac Realty Trust – REIT (b) | 2,080 | 43 | ||||||
First Regional Bancorp (a) | 929 | 22 | ||||||
First South Bancorp (b) | 406 | 10 | ||||||
First State Bancorp – New Mexico | 1,648 | 28 | ||||||
FirstBank, Fractional Shares (a) (c) | 0.29 | — | ||||||
FirstFed Financial (a) (b) | 1,619 | 69 | ||||||
FirstMerit (b) | 7,382 | 157 | ||||||
Flagstar Bancorp | 3,955 | 32 | ||||||
Flushing Financial | 2,439 | 41 | ||||||
FPIC Insurance Group (a) | 1,136 | 47 | ||||||
Franklin Bank (a) (b) | 1,304 | 10 | ||||||
Franklin Street Properties – REIT (b) | 5,302 | 86 | ||||||
Freedom Acquisition Holdings (a) (b) | 5,127 | 68 | ||||||
Fremont General (b) | 6,213 | 17 | ||||||
Friedman Billings Ramsey Group – REIT (b) | 14,406 | 62 | ||||||
Frontier Financial (b) | 3,591 | 80 | ||||||
GAMCO Investors | 484 | 30 | ||||||
Getty Realty – REIT | 2,175 | 62 | ||||||
GFI Group (a) | 1,232 | 106 | ||||||
Glacier Bancorp | 4,919 | 100 | ||||||
Gladstone Capital (b) | 1,349 | 25 | ||||||
Glimcher Realty Trust – REIT | 3,604 | 80 | ||||||
GMH Communities Trust – REIT | 3,072 | 23 | ||||||
Gramercy Capital – REIT | 1,222 | 32 | ||||||
Great Southern Bancorp | 1,161 | 27 | ||||||
Greene County Bancshares | 401 | 13 | ||||||
Greenhill & Company (b) | 1,821 | 135 | ||||||
Grubb & Ellis (a) | 1,449 | 12 | ||||||
Hallmark Financial Services (a) | 379 | 6 | ||||||
Hancock Holding (b) | 2,453 | 93 | ||||||
Hanmi Financial | 4,137 | 46 | ||||||
Harleysville Group | 1,584 | 49 | ||||||
Harleysville National (b) | 2,656 | 40 | ||||||
Healthcare Realty Trust – REIT (b) | 4,443 | 117 | ||||||
Heartland Financial USA | 1,422 | 28 | ||||||
Hercules Technology Growth Capital | 2,118 | 27 | ||||||
Heritage Commerce | 1,355 | 25 | ||||||
Hersha Hospitality Trust – REIT | 3,950 | 43 | ||||||
HFF (a) | 1,466 | 15 | ||||||
Highwoods Properties – REIT (b) | 5,317 | 191 | ||||||
Hilb, Rogal & Hobbs (b) | 3,363 | 148 | ||||||
Hilltop Holdings (a) | 4,528 | 54 | ||||||
Home Properties – REIT (b) | 3,314 | 170 | ||||||
Horace Mann Educators | 4,768 | 99 | ||||||
Horizon Financial | 1,409 | 24 | ||||||
IBERIABANK | 1,097 | 54 | ||||||
IMPAC Mortgage Holdings – REIT (b) | 7,487 | 8 | ||||||
Imperial Capital Bancorp | 645 | 14 | ||||||
Independence Holdings | 669 | 11 | ||||||
Independent Bank – Michigan | 2,070 | 22 | ||||||
Independent Bank (b) | 1,482 | 44 | ||||||
Infinity Property & Casualty | 1,778 | 72 | ||||||
Inland Real Estate – REIT (b) | 5,327 | 79 | ||||||
Integra Bank | 1,815 | 31 | ||||||
Interactive Brokers Group (a) | 3,667 | 106 | ||||||
International Bancshares | 4,438 | 97 | ||||||
International Securities Exchange | 3,565 | 239 | ||||||
Investors Bancorp (a) (b) | 3,982 | 60 | ||||||
Investors Real Estate Trust – REIT (b) | 4,580 | 50 | ||||||
IPC Holdings | 5,838 | 175 | ||||||
Irwin Financial | 1,843 | 18 | ||||||
James River Group | 943 | 32 | ||||||
JER Investment Trust – REIT (b) | 1,874 | 21 | ||||||
Kansas City Life Insurance | 60 | 3 | ||||||
KBW (a) (b) | 2,683 | 81 | ||||||
Kearny Financial | 1,963 | 26 | ||||||
Kite Realty Group Trust – REIT | 2,652 | 48 | ||||||
KNBT Bancorp | 2,849 | 49 | ||||||
Knight Capital Group, Class A (a) (b) | 9,665 | 130 | ||||||
Kohlberg Capital | 1,312 | 17 | ||||||
LaBranche (a) | 5,215 | 29 | ||||||
Ladenburg Thalman Financial Services (a) (b) | 8,982 | 17 | ||||||
Lakeland Bancorp | 2,242 | 30 | ||||||
Lakeland Financial | 1,186 | 25 | ||||||
LandAmerica Financial Group (b) | 1,569 | 44 | ||||||
LaSalle Hotel Properties – REIT (b) | 3,818 | 158 | ||||||
Lexington Corporate Properties Trust – REIT (b) | 6,547 | 130 | ||||||
LTC Properties – REIT (b) | 1,977 | 50 | ||||||
Luminent Mortgage Capital – REIT (b) | 4,710 | 9 | ||||||
Macatawa Bank | 2,010 | 22 | ||||||
Maguire Properties – REIT (b) | 3,777 | 103 | ||||||
MainSource Financial Group (b) | 1,403 | 24 | ||||||
Marathon Acquisition (a) (b) | 3,471 | 28 | ||||||
MarketAxess Holdings (a) (b) | 2,918 | 46 | ||||||
Max Capital Hamilton | 5,531 | 156 | ||||||
MB Financial (b) | 2,797 | 93 | ||||||
MCG Capital | 4,745 | 66 | ||||||
Meadowbrook Insurance Group (a) | 2,599 | 25 | ||||||
Medical Properties Trust – REIT (b) | 3,089 | 41 | ||||||
Meruelo Maddux Properties (a) | 3,510 | 17 | ||||||
MFA Mortgage Investments – REIT (b) | 9,190 | 79 | ||||||
Mid-America Apartment Communities – REIT (b) | 2,068 | 108 | ||||||
Midland | 1,131 | 72 | ||||||
Midwest Banc Holdings (b) | 1,484 | 20 | ||||||
Mission West Properties | 1,707 | 20 | ||||||
Montpelier Holdings | 10,251 | 184 | ||||||
Move (a) | 9,856 | 25 | ||||||
MVC Capital (b) | 2,225 | 38 | ||||||
Nara Bancorp | 2,094 | 32 | ||||||
NASB Financial (b) | 441 | 13 | ||||||
National Financial Partners (b) | 3,826 | 209 | ||||||
National Health Investors – REIT | 2,136 | 63 | ||||||
National Interstate | 487 | 16 | ||||||
National Penn Bancshares (b) | 5,055 | 85 | ||||||
National Penn Bancshares, Fractional Shares (a) (c) | 0.50 | — | ||||||
National Retail Properties – REIT (b) | 5,971 | 151 | ||||||
National Western Life Insurance, Class A | 207 | 45 | ||||||
Nationwide Health Properties – REIT (b) | 7,550 | 236 | ||||||
Navigators Group (a) | 1,185 | 71 | ||||||
NBT Bancorp | 3,119 | 77 | ||||||
Nelnet, Class A (b) | 1,606 | 30 | ||||||
NewAlliance Bancshares (b) | 10,799 | 151 | ||||||
Newcastle Investment – REIT (b) | 4,029 | 60 | ||||||
Newstar Financial (a) | 1,267 | 13 | ||||||
Nexcen Brands (a) | 3,855 | 24 | ||||||
NorthStar Realty Finance – REIT (b) | 5,745 | 54 | ||||||
Northwest Bancorp (b) | 1,845 | 54 |
24 First American Funds 2007 Annual Report
Table of Contents
Small Cap Index Fund (continued) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Novastar Financial – REIT (b) | 897 | $ | 5 | |||||
NYMAGIC (b) | 432 | 12 | ||||||
Ocwen Financial (a) (b) | 3,645 | 27 | ||||||
Odyssey RE Holdings | 2,598 | 97 | ||||||
Old National Bancorp (b) | 6,092 | 102 | ||||||
Old Second Bancorp | 1,511 | 43 | ||||||
Omega Financial | 1,160 | 32 | ||||||
OMEGA Healthcare Investors – REIT (b) | 5,774 | 97 | ||||||
optionsXpress Holdings | 4,006 | 119 | ||||||
Oriental Financial Group | 2,365 | 30 | ||||||
Pacific Capital Bancorp | 4,313 | 89 | ||||||
Park National (b) | 1,111 | 88 | ||||||
Parkway Properties – REIT | 1,595 | 69 | ||||||
Partners Trust Financial Group | 4,182 | 52 | ||||||
Patriot Capital Funding | 1,674 | 21 | ||||||
PennantPark Investment (a) | 1,834 | 24 | ||||||
Pennsylvania – REIT | 2,947 | 112 | ||||||
Penson Worldwide (a) | 1,334 | 23 | ||||||
Peoples Bancorp – Ohio | 1,222 | 31 | ||||||
PFF Bancorp (b) | 2,018 | 22 | ||||||
Phoenix Companies | 10,464 | 144 | ||||||
Pinnacle Financial Partners (a) | 1,134 | 33 | ||||||
Piper Jaffray Companies (a) (b) | 1,828 | 94 | ||||||
Platinum Underwriters Holdings | 5,489 | 198 | ||||||
PMA Capital (a) | 3,171 | 31 | ||||||
Post Properties – REIT | 4,002 | 164 | ||||||
Potlatch – REIT (b) | 3,800 | 181 | ||||||
Presidential Life | 1,981 | 35 | ||||||
Primus Guaranty (a) (b) | 4,129 | 38 | ||||||
PrivateBancorp (b) | 1,744 | 49 | ||||||
ProAssurance (a) (b) | 2,895 | 160 | ||||||
Prospect Capital Corporation (b) | 1,823 | 27 | ||||||
Prosperity Bancshares | 2,869 | 93 | ||||||
Provident Bankshares (b) | 2,957 | 73 | ||||||
Provident Financial Services (b) | 6,041 | 96 | ||||||
Provident New York Bancorp | 4,049 | 51 | ||||||
PS Business Parks – REIT | 1,570 | 92 | ||||||
QC Holdings | 687 | 10 | ||||||
Quadra Realty Trust (a) | 1,618 | 13 | ||||||
RAIT Financial Trust – REIT (b) | 5,623 | 51 | ||||||
Ramco-Gershenson Properties Trust – REIT | 2,078 | 59 | ||||||
Realty Income – REIT (b) | 7,848 | 232 | ||||||
Redwood Trust – REIT (b) | 2,159 | 57 | ||||||
Renasant | 1,526 | 35 | ||||||
Republic Bancorp – Kentucky, Class A | 979 | 15 | ||||||
Resource Capital Corporation (b) | 2,020 | 21 | ||||||
RLI | 2,209 | 129 | ||||||
Rockville Financial | 1,178 | 18 | ||||||
S&T Bancorp | 2,275 | 75 | ||||||
Safety Insurance Group | 1,413 | 51 | ||||||
Sanders Morris Harris Group | 1,728 | 16 | ||||||
Sandy Spring Bancorp | 1,544 | 46 | ||||||
Santander Bancorp | 403 | 6 | ||||||
Saul Centers – REIT | 1,077 | 59 | ||||||
SCBT Financial (b) | 936 | 30 | ||||||
Scottish Group (a) | 6,236 | 16 | ||||||
SeaBright Insurance Holdings (a) | 1,643 | 27 | ||||||
Seacoast Banking (b) | 1,666 | 24 | ||||||
Security Bank (b) | 1,289 | 13 | ||||||
Security Capital Assurance (b) | 2,186 | 29 | ||||||
Selective Insurance Group (b) | 5,664 | 138 | ||||||
Senior Housing Properties Trust – REIT | 6,521 | 146 | ||||||
Sierra Bancorp | 444 | 12 | ||||||
Signature Bank (a) | 2,581 | 88 | ||||||
Simmons First National, Class A | 1,296 | 35 | ||||||
South Financial Group (b) | 6,800 | 141 | ||||||
Southside Bancshares (b) | 1,182 | 26 | ||||||
Southwest Bancorp – Oklahoma | 1,500 | 28 | ||||||
Sovran Self Storage – REIT (b) | 1,888 | 89 | ||||||
State Auto Financial | 1,613 | 44 | ||||||
Sterling Bancorp | 2,045 | 30 | ||||||
Sterling Bancshares (b) | 6,824 | 83 | ||||||
Sterling Financial – Pennsylvania | 2,421 | 44 | ||||||
Sterling Financial – Washington (b) | 4,540 | 102 | ||||||
Stewart Information Services | 1,899 | 55 | ||||||
Stifel Financial (a) (b) | 1,447 | 82 | ||||||
Strategic Hotels & Resorts – REIT | 6,914 | 151 | ||||||
Suffolk Bancorp | 1,014 | 34 | ||||||
Sun Bancorp – New Jersey (a) | 1,591 | 28 | ||||||
Sun Communities – REIT (b) | 2,100 | 64 | ||||||
Sunstone Hotel Investors – REIT (b) | 5,487 | 153 | ||||||
Superior Bancorp (a) (b) | 1,590 | 12 | ||||||
Susquehanna Bancshares (b) | 4,782 | 96 | ||||||
SVB Financial (a) (b) | 3,144 | 163 | ||||||
SWS Group | 2,330 | 44 | ||||||
SY Bancorp (b) | 1,341 | 34 | ||||||
Tanger Factory Outlet Centers – REIT (b) | 3,573 | 151 | ||||||
Taylor Capital Group | 549 | 14 | ||||||
Technology Investment Capital (b) | 1,541 | 20 | ||||||
Tejon Ranch (a) | 1,076 | 43 | ||||||
Texas Capital Bancshares (a) | 2,482 | 55 | ||||||
Thomas Properties Group | 2,178 | 27 | ||||||
Thomas Weisel Partners Group (a) (b) | 1,978 | 31 | ||||||
TierOne | 1,656 | 38 | ||||||
Tompkins Trustco | 895 | 37 | ||||||
Tower Group | 2,054 | 62 | ||||||
Tradestation Group (a) | 2,652 | 32 | ||||||
Triad Guaranty (a) (b) | 920 | 7 | ||||||
TriCo Bancshares | 1,619 | 36 | ||||||
TrustCo Bank Corporation of New York (b) | 6,889 | 73 | ||||||
Trustmark (b) | 4,488 | 121 | ||||||
UCBH Holdings (b) | 9,162 | 156 | ||||||
UMB Financial (b) | 2,331 | 98 | ||||||
Umpqua Holdings (b) | 5,516 | 93 | ||||||
Union Bankshares | 1,570 | 34 | ||||||
United American Indemnity (a) | 2,262 | 50 | ||||||
United Bankshares | 3,299 | 100 | ||||||
United Community Banks (b) | 3,309 | 73 | ||||||
United Community Financial | 3,229 | 21 | ||||||
United Fire & Casualty | 1,773 | 57 | ||||||
United Security Bancshares (b) | 762 | 13 | ||||||
Universal American Financial (a) | 3,909 | 95 | ||||||
Universal Health Realty Income Trust – REIT | 1,463 | 54 | ||||||
Univest Corporation of Pennsylvania | 1,367 | 30 | ||||||
Urstadt Biddle Properties, Class A – REIT | 2,727 | 45 | ||||||
US Global Investors (b) | 1,084 | 25 | ||||||
USB Holding | 1,331 | 29 | ||||||
USB Holding, Fractional Shares (a) (c) | 0.10 | — | ||||||
U-Store-It Trust (b) | 4,202 | 54 | ||||||
Virginia Commerce Bancorp (a) (b) | 2,039 | 29 | ||||||
W Holding Company (b) | 10,711 | 23 | ||||||
Waddell & Reed Financial, Class A (b) | 8,315 | 276 | ||||||
Washington Real Estate Investment Trust – REIT (b) | 4,131 | 146 | ||||||
Washington Trust Bancorp | 1,508 | 38 | ||||||
WesBanco | 1,917 | 44 | ||||||
West Coast Bancorp – Oregon | 1,756 | 48 | ||||||
Westamerica Bancorporation (b) | 2,756 | 133 | ||||||
Western Alliance Bancorp (a) (b) | 1,156 | 26 | ||||||
Westfield Financial | 1,508 | 15 | ||||||
Wilshire Bancorp | 2,018 | 21 | ||||||
Winthrop Realty Trust – REIT | 3,976 | 22 | ||||||
Wintrust Financial | 2,215 | 81 | ||||||
World Acceptance (a) (b) | 1,804 | 58 |
First American Funds 2007 Annual Report 25
Table of Contents
Schedule of Investments October 31, 2007, all dollars are rounded to thousands (000)
Small Cap Index Fund (continued) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
WP Stewart & Company (b) | 1,147 | $ | 7 | |||||
WSFS Financial | 629 | 36 | ||||||
Zenith National Insurance (b) | 3,595 | 144 | ||||||
24,356 | ||||||||
Healthcare – 13.4% | ||||||||
Abaxis (a) | 2,198 | 64 | ||||||
ABIOMED (a) (b) | 2,081 | 28 | ||||||
ACADIA Pharmaceuticals (a) (b) | 2,852 | 44 | ||||||
Accuray (a) (b) | 1,197 | 24 | ||||||
Acorda Therapeutics (a) (b) | 2,282 | 46 | ||||||
Adams Respiratory Therapeutics (a) (b) | 3,266 | 144 | ||||||
Affymax (a) | 390 | 11 | ||||||
Affymetrix (a) (b) | 6,291 | 160 | ||||||
Air Methods (a) (b) | 1,072 | 58 | ||||||
Akorn (a) (b) | 4,542 | 34 | ||||||
Albany Molecular Research (a) (b) | 2,376 | 43 | ||||||
Alexion Pharmaceuticals (a) | 3,214 | 246 | ||||||
Alexza Pharmaceuticals (a) | 1,860 | 15 | ||||||
Align Technology (a) (b) | 5,486 | 114 | ||||||
Alkermes (a) | 9,221 | 149 | ||||||
Alliance Imaging (a) | 1,826 | 18 | ||||||
Allos Therapeutics (a) | 3,830 | 22 | ||||||
Allscripts Healthcare Solutions (a) (b) | 5,076 | 141 | ||||||
Alnylam Pharmaceuticals (a) (b) | 3,223 | 102 | ||||||
Alpharma, Class A (a) | 3,975 | 82 | ||||||
Altus Pharmaceuticals (a) | 1,946 | 27 | ||||||
AMAG Pharmaceuticals (a) | 1,306 | 85 | ||||||
Amedisys (a) (b) | 2,432 | 103 | ||||||
American Dental Partners (a) | 1,149 | 28 | ||||||
American Medical Systems (a) (b) | 6,867 | 88 | ||||||
AMERIGROUP (a) (b) | 4,838 | 169 | ||||||
Amicus Therapeutics (a) | 456 | 8 | ||||||
AMN Healthcare Services (a) | 3,338 | 63 | ||||||
Amsurg, Class A (a) | 2,929 | 77 | ||||||
Analogic | 1,279 | 73 | ||||||
AngioDynamics (a) | 2,033 | 41 | ||||||
Animal Health International (a) | 1,082 | 12 | ||||||
Applera (a) | 7,255 | 118 | ||||||
Apria Healthcare Group (a) (b) | 4,057 | 98 | ||||||
Arena Pharmaceuticals (a) (b) | 5,397 | 52 | ||||||
Ariad Pharmaceuticals (a) | 6,456 | 33 | ||||||
ArQule (a) (b) | 3,555 | 28 | ||||||
Array BioPharma (a) (b) | 3,685 | 41 | ||||||
ArthroCare (a) (b) | 2,643 | 171 | ||||||
Aspect Medical Systems (a) | 1,734 | 24 | ||||||
Assisted Living Concept (a) | 5,520 | 49 | ||||||
Auxilium Pharmaceuticals (a) | 2,508 | 66 | ||||||
Beijing Medical Pharmaceuticals (a) (b) | 2,443 | 30 | ||||||
Bentley Pharmaceuticals (a) | 1,752 | 24 | ||||||
Biodel (a) | 459 | 8 | ||||||
BioMarin Pharmaceutical (a) (b) | 8,769 | 243 | ||||||
Biomimetic Therapeutics (a) | 983 | 14 | ||||||
Bionovo (a) (b) | 4,129 | 10 | ||||||
Bio-Rad Laboratories, Class A (a) (b) | 1,713 | 165 | ||||||
Bio-Reference Labs (a) | 1,193 | 38 | ||||||
Bradley Pharmaceuticals (a) | 1,492 | 29 | ||||||
Bruker BioSciences (a) | 5,958 | 62 | ||||||
Cadence Pharmaceuticals (a) | 1,482 | 21 | ||||||
Cantel Medical (a) | 1,056 | 19 | ||||||
Capital Senior Living (a) (b) | 2,246 | 20 | ||||||
Caraco Pharmaceutical Laboratories (a) | 1,326 | 21 | ||||||
Cell Genesys (a) (b) | 6,033 | 21 | ||||||
Centene (a) | 4,229 | 99 | ||||||
Cepheid (a) | 5,051 | 131 | ||||||
Chemed | 2,320 | 133 | ||||||
Computer Programs & Systems | 820 | 20 | ||||||
Conceptus (a) (b) | 2,354 | 52 | ||||||
CONMED (a) | 2,594 | 74 | ||||||
Corvel (a) | 778 | 21 | ||||||
Cross Country Healthcare (a) | 2,940 | 46 | ||||||
CryoLife (a) | 2,063 | 14 | ||||||
Cubist Pharmaceuticals (a) (b) | 5,074 | 119 | ||||||
Cutera (a) | 1,242 | 30 | ||||||
CV Therapeutics (a) (b) | 5,648 | 58 | ||||||
Cyberonics (a) (b) | 2,119 | 31 | ||||||
Cynosure (a) | 696 | 26 | ||||||
Cypress Bioscience (a) (b) | 3,358 | 45 | ||||||
Cytokinetics (a) | 3,196 | 16 | ||||||
Cytrx (a) (b) | 7,960 | 30 | ||||||
Datascope | 1,208 | 44 | ||||||
Dendreon (a) (b) | 8,003 | 60 | ||||||
Discovery Laboratories (a) | 7,757 | 19 | ||||||
DJO (a) | 2,240 | 112 | ||||||
Durect (a) (b) | 6,337 | 37 | ||||||
Eclipsys (a) | 4,188 | 94 | ||||||
Emergency Medical Services (a) (b) | 851 | 26 | ||||||
Emergent Biosolutions (a) | 540 | 5 | ||||||
Emeritus (a) (b) | 511 | 17 | ||||||
Encysive Pharmaceuticals (a) (b) | 5,796 | 8 | ||||||
Enzo Biochem (a) | 2,661 | 32 | ||||||
Enzon (a) (b) | 4,305 | 41 | ||||||
eResearch Technology (a) | 3,591 | 40 | ||||||
ev3 (a) (b) | 4,248 | 62 | ||||||
Exelixis (a) (b) | 8,703 | 96 | ||||||
Genomic Health (a) (b) | 1,285 | 33 | ||||||
Gentiva Health Services (a) | 2,639 | 50 | ||||||
Genvec (a) (b) | 6,075 | 15 | ||||||
Geron (a) (b) | 6,732 | 51 | ||||||
Greatbatch (a) (b) | 2,145 | 53 | ||||||
GTx (a) | 1,525 | 24 | ||||||
Haemonetics (a) | 2,434 | 125 | ||||||
Halozyme Therapeutics (a) | 5,904 | 54 | ||||||
Hansen Medical (a) (b) | 877 | 34 | ||||||
HealthExtras (a) | 2,638 | 77 | ||||||
Healthsouth (a) (b) | 7,220 | 145 | ||||||
HealthSpring (a) | 4,385 | 92 | ||||||
Healthways (a) (b) | 3,321 | 202 | ||||||
HMS Holdings (a) | 1,925 | 55 | ||||||
Hologic (a) | 10,356 | 703 | ||||||
Human Genome Sciences (a) (b) | 12,312 | 116 | ||||||
Hythiam (a) (b) | 2,682 | 20 | ||||||
ICU Medical (a) (b) | 1,184 | 47 | ||||||
Idenix Pharmaceuticals (a) | 2,550 | 7 | ||||||
I-Flow (a) (b) | 2,189 | 40 | ||||||
Illumina (a) (b) | 4,915 | 276 | ||||||
Immucor (a) (b) | 6,316 | 204 | ||||||
Immunomedics (a) | 5,324 | 12 | ||||||
Incyte (a) (b) | 8,227 | 71 | ||||||
Indevus Pharmaceuticals (a) | 5,346 | 41 | ||||||
Integra LifeSciences (a) (b) | 1,650 | 80 | ||||||
InterMune (a) (b) | 2,641 | 53 | ||||||
Invacare (b) | 2,639 | 71 | ||||||
inVentiv Health (a) (b) | 2,789 | 118 | ||||||
Inverness Medical Innovations (a) (b) | 4,508 | 271 | ||||||
Isis Pharmaceuticals (a) (b) | 8,009 | 141 | ||||||
Javelin Pharmaceuticals (a) | 3,898 | 21 | ||||||
Kendle International (a) (b) | 1,268 | 51 | ||||||
Kensey Nash (a) | 1,063 | 29 | ||||||
Keryx Biopharmaceuticals (a) (b) | 4,454 | 46 | ||||||
Kindred Healthcare (a) (b) | 2,772 | 59 | ||||||
Kosan Biosciences (a) | 3,899 | 20 | ||||||
K-V Pharmaceutical, Class A (a) (b) | 3,550 | 111 | ||||||
Kyphon (a) (b) | 4,350 | 308 | ||||||
LCA-Vision | 1,840 | 31 |
26 First American Funds 2007 Annual Report
Table of Contents
Small Cap Index Fund (continued) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
LHC Group (a) (b) | 927 | $ | 21 | |||||
LifeCell (a) (b) | 3,109 | 137 | ||||||
Ligand Pharmaceuticals | 8,270 | 44 | ||||||
Luminex (a) (b) | 3,303 | 53 | ||||||
Magellan Health Services (a) | 3,588 | 151 | ||||||
MannKind (a) (b) | 3,825 | 35 | ||||||
Martek Biosciences (a) (b) | 2,958 | 90 | ||||||
Masimo (a) | 359 | 12 | ||||||
Matria Healthcare (a) (b) | 2,157 | 55 | ||||||
Maxygen (a) | 2,706 | 20 | ||||||
Medarex (a) (b) | 11,550 | 138 | ||||||
MedCath (a) | 851 | 24 | ||||||
Medical Action Industries (a) | 1,423 | 29 | ||||||
Medicines (a) (b) | 4,744 | 91 | ||||||
Medicis Pharmaceutical, Class A (b) | 5,121 | 152 | ||||||
Medivation (a) | 1,957 | 41 | ||||||
Mentor (b) | 3,496 | 149 | ||||||
Meridian Bioscience (b) | 2,902 | 96 | ||||||
Merit Medical Systems (a) | 2,618 | 34 | ||||||
Metabolix (a) | 1,325 | 38 | ||||||
MGI Pharma (a) (b) | 7,683 | 250 | ||||||
Micrus Endovascular (a) | 1,376 | 27 | ||||||
Mine Safety Appliances | 2,580 | 118 | ||||||
Minrad International (a) | 4,319 | 19 | ||||||
Molecular Insight Pharmaceuticals (a) | 459 | 3 | ||||||
Molina Healthcare (a) (b) | 1,273 | 49 | ||||||
Momenta Pharmaceuticals (a) | 2,429 | 32 | ||||||
MWI Veterinary Supply (a) | 396 | 17 | ||||||
Myriad Genetics (a) (b) | 3,730 | 206 | ||||||
NABI Biopharmaceuticals (a) | 5,902 | 23 | ||||||
Nastech Pharmaceutical (a) (b) | 2,252 | 31 | ||||||
National Healthcare | 635 | 32 | ||||||
Natus Medical (a) | 1,901 | 34 | ||||||
Nektar Therapeutics (a) | 8,408 | 50 | ||||||
Neurocrine Biosciences (a) (b) | 3,484 | 32 | ||||||
Neurogen (a) (b) | 2,902 | 11 | ||||||
Nighthawk Radiology Holdings (a) (b) | 1,933 | 45 | ||||||
Northstar Neuroscience (a) | 1,109 | 15 | ||||||
Novacea (a) | 606 | 5 | ||||||
Noven Pharmaceuticals (a) (b) | 2,329 | 36 | ||||||
NuVasive (a) | 3,421 | 146 | ||||||
NxStage Medical (a) (b) | 1,853 | 27 | ||||||
Obagi Medical Products (a) (b) | 212 | 5 | ||||||
Odyssey Healthcare (a) | 3,400 | 35 | ||||||
Omnicell (a) | 2,792 | 74 | ||||||
Omrix Biopharmaceuticals (a) | 1,257 | 44 | ||||||
Onyx Pharmaceuticals (a) (b) | 4,980 | 233 | ||||||
OraSure Technologies (a) | 4,235 | 38 | ||||||
Orexigen Therapeutics (a) | 669 | 10 | ||||||
Orthofix International (a) | 1,517 | 82 | ||||||
OSI Pharmaceuticals (a) (b) | 5,288 | 220 | ||||||
Osiris Therapeutics (a) (b) | 1,172 | 17 | ||||||
Owens & Minor | 3,715 | 151 | ||||||
Pain Therapeutics (a) | 3,266 | 34 | ||||||
Palomar Medical Technologies (a) (b) | 1,713 | 43 | ||||||
Par Pharmaceutical Companies (a) | 3,426 | 63 | ||||||
PAREXEL International (a) | 2,757 | 127 | ||||||
Penwest Pharmaceuticals (a) | 2,136 | 18 | ||||||
Perrigo (b) | 7,048 | 167 | ||||||
PharmaNet Development Group (a) (b) | 1,712 | 55 | ||||||
Pharmerica (a) (b) | 1,014 | 16 | ||||||
Pharmion (a) (b) | 2,376 | 114 | ||||||
PolyMedica (b) | 2,221 | 118 | ||||||
Poniard Pharmaceuticals (a) | 2,133 | 10 | ||||||
POZEN (a) (b) | 2,521 | 24 | ||||||
PRA International (a) | 1,414 | 43 | ||||||
Progenics Pharmaceutical (a) | 2,302 | 53 | ||||||
Protalix Biotherapeutics (a) | 179 | 1 | ||||||
PSS World Medical (a) (b) | 6,163 | 124 | ||||||
Psychiatric Solutions (a) (b) | 5,206 | 206 | ||||||
Quidel (a) | 2,667 | 55 | ||||||
Radiation Therapy Services (a) (b) | 1,269 | 39 | ||||||
Regeneration Technologies (a) | 2,731 | 29 | ||||||
Regeneron Pharmaceutical (a) (b) | 5,837 | 128 | ||||||
RehabCare Group (a) | 1,533 | 32 | ||||||
Res-Care (a) | 2,235 | 55 | ||||||
Rigel Pharmaceuticals (a) | 2,757 | 29 | ||||||
Salix Pharmaceuticals (a) (b) | 4,324 | 51 | ||||||
Santarus (a) (b) | 4,712 | 10 | ||||||
Savient Pharmaceuticals (a) | 5,125 | 72 | ||||||
Sciele Pharma (a) (b) | 2,915 | 74 | ||||||
Seattle Genetics (a) (b) | 3,827 | 46 | ||||||
Senomyx (a) (b) | 3,080 | 36 | ||||||
Sirona Dental Systems (a) (b) | 1,720 | 58 | ||||||
Sirtris Pharmaceuticals (a) (b) | 555 | 9 | ||||||
Skilled Healthcare Group (a) | 2,054 | 34 | ||||||
Somaxon Pharmaceuticals (a) | 932 | 8 | ||||||
Sonic Innovations (a) | 2,419 | 25 | ||||||
SonoSite (a) | 1,681 | 59 | ||||||
Spectranetics (a) | 3,160 | 51 | ||||||
Stereotaxis (a) | 2,403 | 37 | ||||||
STERIS (b) | 5,950 | 173 | ||||||
Stewart Enterprises, Class A | 9,121 | 83 | ||||||
Sun Healthcare Group (a) | 3,938 | 64 | ||||||
Sunrise Senior Living (a) | 4,100 | 152 | ||||||
SuperGen (a) | 4,864 | 22 | ||||||
SurModics (a) (b) | 1,392 | 79 | ||||||
Symmetry Medical (a) (b) | 3,238 | 56 | ||||||
Telik (a) (b) | 5,139 | 21 | ||||||
Tercica (a) (b) | 3,023 | 19 | ||||||
Thoratec (a) (b) | 5,046 | 101 | ||||||
Tomotherapy (a) (b) | 564 | 12 | ||||||
TriZetto Group (a) (b) | 4,401 | 72 | ||||||
Trubion Pharmaceuticals (a) (b) | 792 | 11 | ||||||
United Therapeutics (a) (b) | 1,906 | 130 | ||||||
Valeant Pharmaceuticals International (a) (b) | 8,714 | 127 | ||||||
Vanda Pharmaceuticals (a) (b) | 2,438 | 37 | ||||||
Varian (a) | 2,812 | 208 | ||||||
Ventana Medical Systems (a) | 2,555 | 225 | ||||||
Verenium Corporation (a) (b) | 3,726 | 20 | ||||||
ViroPharma (a) | 6,401 | 55 | ||||||
Visicu (a) | 1,408 | 11 | ||||||
Vital Images (a) (b) | 1,300 | 23 | ||||||
Vital Signs (b) | 572 | 30 | ||||||
Vivus (a) | 5,352 | 27 | ||||||
Volcano (a) | 2,174 | 37 | ||||||
West Pharmaceutical Services | 3,140 | 130 | ||||||
Wright Medical Group (a) | 3,189 | 85 | ||||||
XenoPort (a) | 1,966 | 96 | ||||||
XOMA (a) (b) | 12,077 | 44 | ||||||
Zoll Medical (a) | 1,894 | 46 | ||||||
ZymoGenetics (a) (b) | 3,875 | 52 | ||||||
17,247 | ||||||||
Industrials – 15.2% | ||||||||
3D Systems (a) (b) | 1,395 | 31 | ||||||
A.O. Smith | 1,839 | 69 | ||||||
AAON | 1,459 | 27 | ||||||
AAR (a) (b) | 3,495 | 112 | ||||||
ABM Industries | 4,068 | 96 | ||||||
ABX Air (a) | 6,158 | 39 | ||||||
ACCO Brands (a) (b) | 4,266 | 91 | ||||||
Accuride (a) | 2,339 | 24 | ||||||
Actuant, Class A | 2,643 | 182 | ||||||
Acuity Brands (b) | 3,983 | 190 |
First American Funds 2007 Annual Report 27
Table of Contents
Schedule of Investments October 31, 2007, all dollars are rounded to thousands (000)
Small Cap Index Fund (continued) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Administaff | 2,212 | $ | 88 | |||||
Advisory Board (a) (b) | 1,875 | 120 | ||||||
Aecom Technology (a) | 3,691 | 125 | ||||||
Aerovironment (a) | 496 | 13 | ||||||
AirTran Holdings (a) (b) | 8,370 | 87 | ||||||
Alaska Air Group (a) | 3,878 | 99 | ||||||
Albany International, Class A (b) | 2,628 | 99 | ||||||
Allegiant Travel (a) | 289 | 10 | ||||||
Altra Holdings (a) | 916 | 15 | ||||||
Amerco (a) (b) | 1,009 | 65 | ||||||
American Commercial Lines (a) (b) | 6,039 | 90 | ||||||
American Ecology | 1,487 | 36 | ||||||
American Railcar Industries (b) | 933 | 21 | ||||||
American Reprographics (a) (b) | 2,697 | 55 | ||||||
American Science & Engineering (b) | 954 | 58 | ||||||
American Superconductor (a) (b) | 3,693 | 100 | ||||||
American Woodmark (b) | 1,194 | 30 | ||||||
Ameron International | 859 | 93 | ||||||
Ampco-Pittsburgh | 742 | 30 | ||||||
Amrep (b) | 173 | 6 | ||||||
Apogee Enterprises | 2,640 | 62 | ||||||
Applied Industrial Technology (b) | 3,949 | 140 | ||||||
ARGON ST (a) | 1,320 | 27 | ||||||
Arkansas Best (b) | 2,067 | 57 | ||||||
Arrowhead Research (a) (b) | 3,104 | 13 | ||||||
Asset Acceptance Capital | 1,552 | 17 | ||||||
Astec Industries (a) | 1,734 | 79 | ||||||
ASV (a) (b) | 1,867 | 22 | ||||||
Atlas Air Worldwide Holdings (a) | 1,223 | 72 | ||||||
AZZ (a) | 1,068 | 36 | ||||||
Badger Meter (b) | 1,228 | 47 | ||||||
Baldor Electric (b) | 4,074 | 164 | ||||||
Barnes Group (b) | 3,655 | 134 | ||||||
Barrett Business Services | 720 | 12 | ||||||
Beacon Roofing Supply (a) (b) | 4,059 | 36 | ||||||
BlueLinx Holdings | 751 | 4 | ||||||
Bowne & Company (b) | 2,952 | 51 | ||||||
Brady, Class A (b) | 4,337 | 160 | ||||||
Briggs & Stratton (b) | 4,535 | 102 | ||||||
Bright Horizons Family Solutions (a) | 2,398 | 93 | ||||||
Bucyrus International (b) | 3,379 | 279 | ||||||
Builders FirstSource (a) | 1,121 | 8 | ||||||
Cascade | 1,083 | 68 | ||||||
Casella Waste Systems (a) | 2,084 | 31 | ||||||
CBIZ (a) (b) | 5,386 | 48 | ||||||
CDI (b) | 885 | 24 | ||||||
Celadon Group (a) | 1,999 | 16 | ||||||
Cenveo (a) (b) | 4,922 | 111 | ||||||
Ceradyne (a) (b) | 2,493 | 171 | ||||||
Chart Industries (a) | 1,159 | 38 | ||||||
Circor International | 1,735 | 87 | ||||||
CLARCOR | 4,753 | 173 | ||||||
Clean Harbors (a) (b) | 1,520 | 75 | ||||||
Coleman Cable (a) (b) | 769 | 10 | ||||||
Columbus McKinnon (a) | 1,726 | 57 | ||||||
Comfort Systems USA (b) | 4,171 | 61 | ||||||
Commercial Vehicle Group (a) | 2,177 | 30 | ||||||
COMSYS IT Partners (a) | 1,572 | 28 | ||||||
Consolidated Graphics (a) | 965 | 62 | ||||||
Cornell (a) | 645 | 16 | ||||||
CoStar Group (a) (b) | 1,651 | 95 | ||||||
CPI (b) | 477 | 16 | ||||||
CRA International (a) (b) | 1,098 | 57 | ||||||
Cubic | 1,393 | 63 | ||||||
Curtiss-Wright | 4,051 | 228 | ||||||
Deluxe (b) | 4,759 | 192 | ||||||
Diamond Management & Technology Consultation | 2,589 | 28 | ||||||
Dollar Thrifty Automotive (a) | 2,173 | 75 | ||||||
Dycom Industries (a) | 3,966 | 112 | ||||||
Dynamex (a) | 1,396 | 41 | ||||||
Dynamic Materials | 1,218 | 67 | ||||||
DynCorp International (a) | 2,585 | 59 | ||||||
Eagle Bulk Shipping (b) | 3,826 | 130 | ||||||
EDO (b) | 1,649 | 96 | ||||||
Electro Rent (a) | 1,588 | 23 | ||||||
EMCOR Group (a) | 5,848 | 201 | ||||||
Encore Wire (b) | 2,152 | 45 | ||||||
Energy Conversion Devices (a) (b) | 3,631 | 99 | ||||||
EnerSys (a) | 1,961 | 36 | ||||||
ENGlobal (a) (b) | 1,665 | 23 | ||||||
Ennis Business Forms | 2,693 | 55 | ||||||
EnPro Industries (a) | 2,074 | 85 | ||||||
ESCO Technologies (a) (b) | 2,379 | 98 | ||||||
Esterline Technologies (a) (b) | 2,345 | 128 | ||||||
Evergreen Solar (a) (b) | 8,661 | 100 | ||||||
Exponent (a) | 1,685 | 51 | ||||||
ExpressJet Holdings (a) (b) | 4,746 | 16 | ||||||
Federal Signal | 4,174 | 56 | ||||||
First Advantage (a) | 357 | 7 | ||||||
Flow International (a) | 3,417 | 29 | ||||||
Force Protection (a) (b) | 6,241 | 112 | ||||||
Forward Air (b) | 2,766 | 90 | ||||||
Franklin Electric (b) | 1,769 | 77 | ||||||
FreightCar America | 1,183 | 51 | ||||||
FTD Group | 1,647 | 23 | ||||||
FTI Consulting (a) | 3,913 | 212 | ||||||
FuelCell Energy (a) (b) | 5,536 | 56 | ||||||
Fuel-Tech (a) (b) | 1,587 | 47 | ||||||
G&K Services, Class A | 1,973 | 80 | ||||||
Gehl Company (a) | 690 | 13 | ||||||
Genco Shipping & Trading (b) | 1,629 | 117 | ||||||
GenCorp (a) (b) | 5,144 | 61 | ||||||
Genesee & Wyoming, Class A (a) | 3,257 | 96 | ||||||
Genlyte Group (a) (b) | 2,529 | 165 | ||||||
Geo Group (a) (b) | 4,765 | 151 | ||||||
Geoeye (a) (b) | 1,605 | 50 | ||||||
GEVITY HR | 2,241 | 22 | ||||||
Global Cash Access Holdings (a) | 3,239 | 32 | ||||||
Goodman Global (a) (b) | 3,002 | 74 | ||||||
Gorman-Rupp | 1,052 | 41 | ||||||
Granite Construction (b) | 3,407 | 146 | ||||||
Great Lakes Dredge & Dock (a) | 231 | 2 | ||||||
Greenbrier Companies (b) | 1,332 | 36 | ||||||
Griffon (a) | 2,734 | 42 | ||||||
H & E Equipment Services (a) | 1,205 | 21 | ||||||
Hardinge | 1,018 | 33 | ||||||
Healthcare Services Group (b) | 3,903 | 86 | ||||||
Heartland Express (b) | 5,315 | 74 | ||||||
HEICO (b) | 2,025 | 110 | ||||||
Heidrick & Struggles International (a) (b) | 1,804 | 78 | ||||||
Herman Miller | 5,823 | 159 | ||||||
Hexcel (a) (b) | 8,648 | 216 | ||||||
Horizon Lines, Class A (b) | 3,084 | 97 | ||||||
Houston Wire & Cable (a) (b) | 1,543 | 27 | ||||||
Hub Group (a) (b) | 3,555 | 90 | ||||||
Hudson Highland Group (a) | 2,313 | 27 | ||||||
Hurco (a) | 512 | 29 | ||||||
Huron Consulting Group (a) (b) | 1,790 | 125 | ||||||
ICT Group (a) | 700 | 8 | ||||||
IHS, Class A (a) | 2,798 | 176 | ||||||
II-VI (a) | 2,311 | 80 | ||||||
IKON Office Solutions | 9,860 | 130 | ||||||
InnerWorkings (a) (b) | 2,137 | 34 | ||||||
Innovative Solutions & Support (a) | 1,156 | 25 |
28 First American Funds 2007 Annual Report
Table of Contents
Small Cap Index Fund (continued) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Insituform Technologies, Class A (a) (b) | 2,674 | $ | 38 | |||||
Insteel Industries | 1,440 | 17 | ||||||
Integrated Electrical Services (a) (b) | 1,226 | 29 | ||||||
Interline Brands (a) | 2,665 | 64 | ||||||
Ionatron (a) (b) | 2,726 | 10 | ||||||
Jackson Hewitt Tax Service | 2,963 | 93 | ||||||
JetBlue Airways (a) (b) | 16,373 | 149 | ||||||
Kadant (a) | 1,278 | 42 | ||||||
Kaman | 2,444 | 92 | ||||||
Kaydon (b) | 2,680 | 144 | ||||||
Kelly Services, Class A | 1,918 | 40 | ||||||
Kenexa (a) (b) | 2,317 | 68 | ||||||
Kforce (a) | 2,861 | 34 | ||||||
Knight Transportation (b) | 5,631 | 90 | ||||||
Knoll | 3,139 | 60 | ||||||
Korn/ Ferry International (a) | 4,083 | 78 | ||||||
Labor Ready (a) | 4,257 | 75 | ||||||
Ladish (a) | 1,448 | 66 | ||||||
Lawson Products | 438 | 16 | ||||||
Layne Christensen (a) | 1,088 | 62 | ||||||
LB Foster (a) | 1,054 | 45 | ||||||
LECG (a) | 2,007 | 35 | ||||||
Lindsay Manufacturing (b) | 1,134 | 56 | ||||||
LSI Industries (b) | 2,083 | 39 | ||||||
Marten Transport (a) | 1,647 | 23 | ||||||
MasTec (a) | 3,725 | 59 | ||||||
McGrath Rentcorp | 2,280 | 78 | ||||||
Medis Technologies (a) (b) | 2,114 | 30 | ||||||
Mercury Computer Systems (a) | 2,038 | 32 | ||||||
Michael Baker (a) | 662 | 35 | ||||||
Middleby (a) | 1,378 | 90 | ||||||
Midwest Air Group (a) | 2,255 | 37 | ||||||
Miller Industries (a) | 987 | 14 | ||||||
Mobile Mini (a) | 3,423 | 61 | ||||||
Moog, Class A (a) | 3,475 | 160 | ||||||
MTC Technologies (a) | 998 | 18 | ||||||
Mueller Industries | 3,463 | 125 | ||||||
Mueller Water Products, Class A (b) | 10,524 | 124 | ||||||
Multi Color | 441 | 10 | ||||||
NACCO Industries, Class A | 516 | 53 | ||||||
Navigant Consulting (a) (b) | 5,328 | 70 | ||||||
NCI Building Systems (a) (b) | 1,850 | 72 | ||||||
Nordic American Tanker Shipping (b) | 2,469 | 96 | ||||||
Nordson (b) | 2,847 | 152 | ||||||
NuCo2 (a) | 1,122 | 29 | ||||||
Odyssey Marine Exploration (a) | 3,769 | 26 | ||||||
Old Dominion Freight Lines (a) | 2,986 | 67 | ||||||
On Assignment (a) | 2,631 | 22 | ||||||
Orbital Sciences (a) (b) | 5,442 | 139 | ||||||
Pacer International | 3,378 | 50 | ||||||
Park-Ohio Holdings (a) | 736 | 18 | ||||||
Patriot Transportation Holdings (a) | 60 | 6 | ||||||
PeopleSupport (a) | 2,270 | 26 | ||||||
Perini (a) | 2,448 | 140 | ||||||
PGT (a) | 599 | 5 | ||||||
PHH (a) | 4,907 | 110 | ||||||
Pico Holdings (a) | 919 | 38 | ||||||
Pike Electric (a) | 1,214 | 24 | ||||||
Pinnacle Airlines (a) | 1,805 | 29 | ||||||
Polypore International (a) | 703 | 12 | ||||||
Portfolio Recovery Associates (b) | 1,592 | 72 | ||||||
Powell Industries (a) | 741 | 31 | ||||||
Power-One (a) (b) | 6,881 | 39 | ||||||
Preformed Line Products | 24 | 1 | ||||||
Pre-Paid Legal Services (a) | 826 | 49 | ||||||
Protection One (a) | 244 | 3 | ||||||
Raven Industries | 1,711 | 74 | ||||||
RBC Bearings (a) | 2,113 | 85 | ||||||
Regal-Beloit (b) | 2,931 | 144 | ||||||
Republic Airways Holdings (a) | 3,070 | 65 | ||||||
Resources Connection (b) | 4,735 | 108 | ||||||
Robbins & Myers | 1,370 | 99 | ||||||
Rollins | 2,598 | 79 | ||||||
RSC Holdings (a) | 1,911 | 28 | ||||||
Rush Enterprises (a) | 3,043 | 52 | ||||||
Saia (a) | 1,442 | 20 | ||||||
SAIC (a) | 8,003 | 158 | ||||||
Schawk | 1,597 | 36 | ||||||
School Specialty (a) | 1,961 | 66 | ||||||
Sequa, Class A (a) | 651 | 113 | ||||||
SI International (a) | 1,057 | 30 | ||||||
Simpson Manufacturing (b) | 3,383 | 101 | ||||||
SkyWest (b) | 5,918 | 162 | ||||||
Sotheby’s Holdings, Class A (b) | 6,219 | 337 | ||||||
Spherion (a) | 5,172 | 45 | ||||||
Standard Parking (a) | 527 | 23 | ||||||
Standard Register | 1,611 | 21 | ||||||
Standex International | 1,216 | 26 | ||||||
Stanley (a) | 734 | 19 | ||||||
Star Maritime Acquisition (a) (b) | 1,950 | 29 | ||||||
Sun Hydraulics | 1,023 | 37 | ||||||
TAL International Group | 1,310 | 31 | ||||||
Taleo (a) | 1,400 | 39 | ||||||
TBS International (a) | 446 | 28 | ||||||
Team (a) (b) | 1,312 | 42 | ||||||
Tecumseh Products, Class A (a) | 1,419 | 26 | ||||||
Teledyne Technologies (a) | 3,324 | 174 | ||||||
Teletech Holdings (a) | 3,833 | 96 | ||||||
Tennant | 1,453 | 69 | ||||||
Tetra Tech (a) (b) | 5,328 | 124 | ||||||
The Lamson & Sessions Company (a) | 1,434 | 39 | ||||||
The Provident Service (a) | 996 | 32 | ||||||
Titan International | 2,172 | 66 | ||||||
TransDigm Group (a) | 839 | 38 | ||||||
Tredegar | 2,993 | 52 | ||||||
Trex (a) (b) | 1,219 | 13 | ||||||
Triumph Group | 1,511 | 120 | ||||||
TurboChef Technologies (a) | 1,803 | 28 | ||||||
Twin Disc (b) | 419 | 28 | ||||||
UAP Holding | 4,721 | 150 | ||||||
Ultrapetrol Bahamas (a) | 1,396 | 26 | ||||||
United Industrial | 782 | 63 | ||||||
United Stationers (a) | 2,554 | 148 | ||||||
Universal Forest Products | 1,531 | 55 | ||||||
Universal Technical Institute (a) | 2,199 | 41 | ||||||
Universal Truckload Services (a) | 355 | 6 | ||||||
Valmont Industries (b) | 1,816 | 174 | ||||||
Viad | 1,986 | 70 | ||||||
Vicor | 1,784 | 25 | ||||||
Volt Information Sciences (a) | 1,408 | 22 | ||||||
Wabash National | 2,800 | 28 | ||||||
Walter Industries | 4,775 | 146 | ||||||
Washington Group International (a) | 2,677 | 261 | ||||||
Waste Connections (a) | 6,048 | 204 | ||||||
Waste Services (a) | 789 | 7 | ||||||
Watsco | 2,100 | 87 | ||||||
Watson Wyatt & Company Holdings (b) | 4,001 | 191 | ||||||
Watts Water Technologies, Class A (b) | 2,749 | 78 | ||||||
Werner Enterprises (b) | 4,266 | 81 | ||||||
Westinghouse Air Brake Technologies | 4,468 | 168 | ||||||
Woodward Governor | 2,749 | 184 | ||||||
19,488 | ||||||||
First American Funds 2007 Annual Report 29
Table of Contents
Schedule of Investments October 31, 2007, all dollars are rounded to thousands (000)
Small Cap Index Fund (continued) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Information Technology – 18.5% | ||||||||
3Com (a) | 35,687 | $ | 174 | |||||
Acacia Research – Acacia Technology (a) | 2,877 | 47 | ||||||
ACI Worldwide (a) | 3,408 | 78 | ||||||
Acme Packet (a) | 2,025 | 29 | ||||||
Actel (a) | 2,542 | 29 | ||||||
Actuate (a) (b) | 5,823 | 51 | ||||||
Adaptec (a) | 10,852 | 38 | ||||||
ADTRAN | 5,401 | 130 | ||||||
Advanced Analogic Technologies (a) (b) | 3,062 | 37 | ||||||
Advanced Energy Industries (a) | 3,083 | 49 | ||||||
Advent Software (a) (b) | 1,682 | 93 | ||||||
Agilysys | 2,262 | 39 | ||||||
Airvana (a) | 777 | 5 | ||||||
AMIS Holdings (a) | 4,359 | 33 | ||||||
Amkor Technology (a) (b) | 9,658 | 109 | ||||||
ANADIGICS (a) (b) | 5,187 | 76 | ||||||
Anaren (a) | 1,572 | 25 | ||||||
Andrew (a) (b) | 14,280 | 209 | ||||||
Anixter International (a) (b) | 2,832 | 203 | ||||||
Ansoft (a) (b) | 1,494 | 45 | ||||||
ANSYS (a) | 6,482 | 252 | ||||||
Applied Micro Circuits (a) (b) | 25,970 | 84 | ||||||
Ariba (a) | 7,244 | 94 | ||||||
Arris Group (a) (b) | 9,997 | 115 | ||||||
Art Technology Group (a) (b) | 11,382 | 52 | ||||||
AsiaInfo Holdings (a) | 2,904 | 35 | ||||||
Aspen Technology (a) | 8,077 | 141 | ||||||
Asyst Technologies (a) | 4,766 | 23 | ||||||
Atheros Communications (a) (b) | 5,305 | 186 | ||||||
ATMI (a) | 3,142 | 101 | ||||||
Audiovox (a) | 1,539 | 18 | ||||||
Authorize Net Holdings (a) (b) | 2,811 | 66 | ||||||
Avanex (a) (b) | 16,984 | 31 | ||||||
Avid Technology (a) (b) | 4,101 | 121 | ||||||
Avocent (a) (b) | 4,742 | 128 | ||||||
Axcelis Technologies (a) (b) | 9,321 | 44 | ||||||
Bankrate (a) (b) | 1,044 | 48 | ||||||
BearingPoint (a) (b) | 18,317 | 88 | ||||||
Bel Fuse | 1,053 | 33 | ||||||
Belden CDT (b) | 4,184 | 244 | ||||||
Benchmark Electronics (a) (b) | 6,271 | 129 | ||||||
Black Box | 1,591 | 64 | ||||||
Blackbaud | 4,030 | 109 | ||||||
Blackboard (a) (b) | 2,619 | 131 | ||||||
Blue Coat Systems (a) | 2,535 | 103 | ||||||
Borland Software (a) (b) | 6,666 | 29 | ||||||
Bottomline Technologies (a) | 1,567 | 25 | ||||||
Brightpoint (a) (b) | 4,663 | 76 | ||||||
Brooks Automation (a) | 7,341 | 95 | ||||||
Cabot Microelectronics (a) | 2,181 | 87 | ||||||
CACI International, Class A (a) (b) | 2,833 | 153 | ||||||
Cass Information Systems | 600 | 22 | ||||||
Cavium Networks (a) (b) | 281 | 8 | ||||||
C-COR.net (a) | 4,721 | 58 | ||||||
Checkpoint Systems (a) (b) | 3,803 | 115 | ||||||
Chordiant Software (a) | 3,002 | 43 | ||||||
CIBER (a) | 4,978 | 39 | ||||||
Cirrus Logic (a) | 8,602 | 53 | ||||||
CMGI (a) | 45,449 | 64 | ||||||
CNET Networks (a) | 13,866 | 112 | ||||||
Cogent (a) | 3,992 | 59 | ||||||
Cognex | 4,056 | 73 | ||||||
Coherent (a) | 2,884 | 95 | ||||||
Cohu | 2,285 | 37 | ||||||
Commvault Systems (a) | 3,253 | 66 | ||||||
Comscore (a) | 545 | 20 | ||||||
Comtech Group (a) (b) | 1,510 | 32 | ||||||
Comtech Telecommunications (a) (b) | 2,212 | 120 | ||||||
Comverge (a) (b) | 501 | 18 | ||||||
Concur Technologies (a) | 3,176 | 114 | ||||||
Conexant Systems (a) | 47,275 | 60 | ||||||
CPI International (a) | 730 | 15 | ||||||
Cray (a) | 2,976 | 18 | ||||||
Credence Systems (a) | 9,840 | 30 | ||||||
CSG Systems International (a) | 3,978 | 82 | ||||||
CTS | 3,290 | 41 | ||||||
CyberSource (a) (b) | 2,806 | 46 | ||||||
Cymer (a) (b) | 2,910 | 124 | ||||||
Daktronics (b) | 2,914 | 87 | ||||||
Data Domain (a) | 536 | 18 | ||||||
DealerTrack Holdings (a) (b) | 3,061 | 150 | ||||||
Digi International (a) | 2,412 | 39 | ||||||
Digital River (a) (b) | 3,791 | 201 | ||||||
Diodes (a) | 2,742 | 91 | ||||||
Dionex (a) | 1,744 | 153 | ||||||
Ditech Networks (a) | 2,560 | 13 | ||||||
Divx (a) | 2,129 | 27 | ||||||
Double-take Software (a) | 769 | 18 | ||||||
DSP Group (a) | 2,612 | 41 | ||||||
DTS (a) (b) | 1,918 | 55 | ||||||
Eagle Test Systems (a) | 270 | 3 | ||||||
EarthLink (a) (b) | 11,272 | 89 | ||||||
Echelon (a) (b) | 2,744 | 60 | ||||||
Electro Scientific Industries (a) | 2,787 | 61 | ||||||
Electronics for Imaging (a) (b) | 5,210 | 119 | ||||||
Emulex (a) | 7,826 | 169 | ||||||
Enernoc (a) | 343 | 16 | ||||||
Entegris (a) | 11,119 | 101 | ||||||
Epicor Software (a) | 5,861 | 68 | ||||||
EPIQ Systems (a) | 2,149 | 42 | ||||||
Equinix (a) (b) | 2,977 | 347 | ||||||
Euronet Worldwide (a) (b) | 4,204 | 135 | ||||||
Exar (a) | 2,240 | 27 | ||||||
Excel Technologies (a) | 1,115 | 31 | ||||||
Exlservice Holdings (a) (b) | 2,072 | 56 | ||||||
Extreme Networks (a) | 11,724 | 51 | ||||||
FalconStor Software (a) | 2,934 | 41 | ||||||
FARO Technologies (a) | 1,345 | 39 | ||||||
FEI (a) (b) | 3,251 | 94 | ||||||
Finisar (a) (b) | 23,084 | 54 | ||||||
FLIR Systems (a) (b) | 6,079 | 422 | ||||||
FormFactor (a) | 4,350 | 170 | ||||||
Forrester Research (a) | 1,591 | 38 | ||||||
Foundry Networks (a) (b) | 13,359 | 282 | ||||||
Gartner, Class A (a) | 6,325 | 138 | ||||||
Genesis Microchip (a) | 3,490 | 26 | ||||||
Gerber Scientific (a) | 2,332 | 26 | ||||||
Glu Mobile (a) | 646 | 6 | ||||||
Greenfield Online (a) | 1,990 | 30 | ||||||
Harmonic (a) | 7,256 | 89 | ||||||
Harris Stratex Networks, Class A (a) (b) | 2,482 | 47 | ||||||
Heartland Payment Systems (b) | 1,095 | 33 | ||||||
Hittite Microwave (a) | 1,101 | 55 | ||||||
Hughes Communications (a) | 113 | 7 | ||||||
Hutchinson Technology (a) | 2,491 | 59 | ||||||
Hypercom (a) | 4,884 | 26 | ||||||
i2 Technologies (a) (b) | 1,463 | 25 | ||||||
Ibasis | 3,041 | 24 | ||||||
iGATE (a) | 2,232 | 20 | ||||||
Imation | 3,111 | 69 | ||||||
Imergent (b) | 1,129 | 27 | ||||||
Immersion (a) (b) | 2,384 | 39 | ||||||
Infinera Corporation (a) (b) | 841 | 19 |
30 First American Funds 2007 Annual Report
Table of Contents
Small Cap Index Fund (continued) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Informatica (a) | 8,024 | $ | 137 | |||||
Information Services Group (a) | 3,140 | 24 | ||||||
InfoSpace (b) | 3,025 | 58 | ||||||
infoUSA | 3,212 | 34 | ||||||
Integral Systems | 1,062 | 24 | ||||||
Interactive Intelligence (a) | 1,194 | 31 | ||||||
Interdigital (a) | 4,301 | 92 | ||||||
Intermec (a) (b) | 4,994 | 127 | ||||||
Internap Network Services (a) | 4,486 | 75 | ||||||
Internet Capital Group (a) | 3,544 | 45 | ||||||
InterVoice (a) | 3,562 | 35 | ||||||
Interwoven (a) | 4,154 | 59 | ||||||
Intevac (a) | 2,153 | 38 | ||||||
iPass (a) | 4,628 | 22 | ||||||
IPG Photonics (a) | 977 | 19 | ||||||
Isilon Systems (a) | 781 | 4 | ||||||
Itron (a) (b) | 2,536 | 273 | ||||||
Ixia (a) | 4,018 | 42 | ||||||
IXYS (a) | 2,622 | 28 | ||||||
J2 Global Communications (a) (b) | 4,526 | 152 | ||||||
Jack Henry & Associates (b) | 7,421 | 217 | ||||||
JDA Software (a) | 2,354 | 59 | ||||||
KEMET (a) | 7,699 | 54 | ||||||
Keynote Systems (a) | 207 | 3 | ||||||
Kulicke & Soffa (a) (b) | 5,514 | 42 | ||||||
L-1 Identity Solutions (a) (b) | 5,430 | 101 | ||||||
Landauer | 915 | 45 | ||||||
Lattice Semiconductor (a) | 10,525 | 44 | ||||||
Lawson Software (a) | 12,236 | 138 | ||||||
Limelight Networks (a) (b) | 1,687 | 22 | ||||||
Lionbridge Technologies (a) | 5,550 | 26 | ||||||
Liquidity Services (a) | 801 | 10 | ||||||
Littelfuse (a) (b) | 2,039 | 65 | ||||||
Liveperson (a) | 3,366 | 19 | ||||||
Lo-Jack (a) (b) | 1,856 | 33 | ||||||
LoopNet (a) | 2,486 | 47 | ||||||
Loral Space & Communications (a) | 869 | 35 | ||||||
LTX (a) | 6,070 | 20 | ||||||
Macrovision (a) (b) | 4,864 | 117 | ||||||
Magma Design Automation (a) (b) | 3,414 | 51 | ||||||
Magna Entertainment (a) | 4,576 | 10 | ||||||
Manhattan Associates (a) | 2,473 | 75 | ||||||
ManTech International (a) | 1,698 | 67 | ||||||
Marchex (b) | 2,566 | 29 | ||||||
Mattson Technology (a) | 4,796 | 42 | ||||||
Maximus | 2,012 | 96 | ||||||
Measurement Specialties (a) (b) | 1,441 | 40 | ||||||
Mentor Graphics (a) (b) | 7,859 | 126 | ||||||
Mercadolibre (a) (b) | 1,470 | 66 | ||||||
Methode Electronics, Class A | 3,423 | 43 | ||||||
Micrel | 5,094 | 46 | ||||||
Micros Systems (a) (b) | 3,774 | 271 | ||||||
Microsemi (a) (b) | 6,865 | 183 | ||||||
MicroStrategy (a) | 877 | 86 | ||||||
Microtune (a) | 5,204 | 31 | ||||||
Midway Games (a) (b) | 2,121 | 7 | ||||||
MIPS Technologies, Class A (a) | 4,225 | 33 | ||||||
MKS Instruments (a) (b) | 4,516 | 91 | ||||||
Monolithic Power Systems (a) | 2,018 | 44 | ||||||
Monotype Imaging Holdings (a) | 405 | 6 | ||||||
MPS Group (a) (b) | 9,403 | 115 | ||||||
MRV Communications (a) (b) | 12,910 | 37 | ||||||
MSC.Software (a) | 4,025 | 56 | ||||||
MTS Systems (b) | 1,627 | 72 | ||||||
Multi-Fineline Electronix (a) (b) | 833 | 12 | ||||||
Ness Technologies (a) | 2,071 | 24 | ||||||
Net 1 UEPS Technologies (a) (b) | 3,835 | 123 | ||||||
Netezza (a) | 212 | 3 | ||||||
NETGEAR (a) (b) | 3,361 | 119 | ||||||
Netlogic Microsystems (a) | 1,646 | 55 | ||||||
Network Equipment Technologies (a) | 2,418 | 36 | ||||||
Newport (a) (b) | 3,206 | 44 | ||||||
Nextwave Wireless (a) | 2,487 | 15 | ||||||
NIC | 3,511 | 26 | ||||||
Novatel Wireless (a) | 2,790 | 73 | ||||||
Nuance Communications (a) | 12,350 | 273 | ||||||
Omniture (a) (b) | 2,592 | 89 | ||||||
OmniVision Technologies (a) (b) | 5,235 | 116 | ||||||
ON Semiconductor (a) (b) | 22,259 | 227 | ||||||
On2 Technologies (a) (b) | 10,350 | 12 | ||||||
Online Resources (a) | 2,314 | 21 | ||||||
Opentv (a) | 8,591 | 12 | ||||||
Openwave Systems | 8,003 | 32 | ||||||
Oplink Communications (a) | 1,804 | 27 | ||||||
Opnext (a) (b) | 1,712 | 20 | ||||||
Optium (a) | 1,123 | 12 | ||||||
Orbcomm (a) | 2,406 | 20 | ||||||
OSI Systems (a) | 1,596 | 40 | ||||||
OYO Geospace (a) | 407 | 44 | ||||||
Packeteer (a) (b) | 3,415 | 30 | ||||||
Palm (a) (b) | 9,015 | 81 | ||||||
Parametric Technology (a) | 10,533 | 201 | ||||||
Park Electrochemical (b) | 1,853 | 58 | ||||||
PC Connection (a) | 853 | 13 | ||||||
PDF Solutions (a) | 2,049 | 16 | ||||||
Pegasystems | 1,230 | 14 | ||||||
Perficient (a) | 2,687 | 51 | ||||||
Pericom Semiconductor (a) | 2,709 | 40 | ||||||
Perot Systems, Class A (a) | 8,006 | 117 | ||||||
Phase Forward (a) | 3,505 | 83 | ||||||
Photronics (a) (b) | 4,101 | 45 | ||||||
Plantronics (b) | 4,408 | 121 | ||||||
Plexus (a) | 4,249 | 110 | ||||||
PLX Technology (a) | 2,582 | 27 | ||||||
PMC-Sierra (a) | 19,594 | 177 | ||||||
Polycom (a) (b) | 8,470 | 237 | ||||||
Powerwave Technologies (a) (b) | 11,402 | 63 | ||||||
Progress Software (a) (b) | 3,762 | 123 | ||||||
Pros Holdings (a) | 715 | 13 | ||||||
QAD | 1,425 | 13 | ||||||
Quality Systems (b) | 1,561 | 57 | ||||||
Quantum (a) (b) | 19,343 | 77 | ||||||
Quest Software (a) (b) | 6,257 | 109 | ||||||
Rackable Systems (a) (b) | 2,859 | 39 | ||||||
Radiant Systems (a) | 2,518 | 41 | ||||||
RadiSys (a) | 2,060 | 28 | ||||||
RealNetworks (a) | 9,369 | 68 | ||||||
Renaissance Learning (b) | 781 | 11 | ||||||
RF Micro Devices (a) (b) | 17,810 | 111 | ||||||
RightNow Technologies (a) (b) | 1,551 | 31 | ||||||
Rimage (a) | 927 | 24 | ||||||
Rofin-Sinar Technologies (a) | 1,426 | 112 | ||||||
Rogers (a) | 1,621 | 79 | ||||||
Rudolph Technologies (a) | 2,405 | 31 | ||||||
S1 (a) | 5,032 | 42 | ||||||
Safeguard Scientifics (a) (b) | 12,414 | 29 | ||||||
Sapient (a) | 7,476 | 52 | ||||||
SAVVIS (a) (b) | 2,520 | 95 | ||||||
ScanSource (a) | 2,491 | 92 | ||||||
SeaChange International (a) | 2,701 | 17 | ||||||
Secure Computing (a) (b) | 4,272 | 42 | ||||||
Semitool (a) | 1,777 | 16 | ||||||
Semtech (a) (b) | 6,099 | 104 | ||||||
Sigma Designs (a) (b) | 2,553 | 150 |
First American Funds 2007 Annual Report 31
Table of Contents
Schedule of Investments October 31, 2007, all dollars are rounded to thousands (000)
Small Cap Index Fund (continued) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Silicon Graphics (a) (b) | 598 | $ | 11 | |||||
Silicon Image (a) | 7,972 | 51 | ||||||
Silicon Storage Technology (a) | 8,899 | 30 | ||||||
Sirenza Microdevices (a) | 3,607 | 60 | ||||||
SiRF Technology Holdings (a) (b) | 5,050 | 151 | ||||||
Skyworks Solutions (a) (b) | 15,614 | 144 | ||||||
Smart Modular Technologies (a) | 4,598 | 41 | ||||||
Smith Micro Software (a) (b) | 2,718 | 42 | ||||||
Sohu.com (a) (b) | 2,520 | 151 | ||||||
Solera Holdings (a) | 2,408 | 52 | ||||||
Sonic Solutions (a) (b) | 2,617 | 31 | ||||||
SonicWALL (a) (b) | 5,855 | 61 | ||||||
Sonus Networks (a) (b) | 23,156 | 160 | ||||||
Sourcefire (a) | 608 | 6 | ||||||
Sourceforge (a) | 6,416 | 17 | ||||||
Spansion (a) | 8,250 | 58 | ||||||
SPSS (a) | 1,687 | 64 | ||||||
SRA International, Class A (a) | 3,588 | 99 | ||||||
Standard Microsystems (a) | 2,277 | 89 | ||||||
Starent Networks (a) | 477 | 12 | ||||||
STEC (a) (b) | 2,968 | 19 | ||||||
Stratasys (a) | 1,992 | 52 | ||||||
Super Micro Computer (a) | 847 | 8 | ||||||
Superior Essex (a) | 1,861 | 62 | ||||||
Supertex (a) | 1,143 | 42 | ||||||
Switch & Data Facilities (a) | 1,170 | 23 | ||||||
Sybase (a) (b) | 8,375 | 240 | ||||||
Sycamore Networks (a) | 16,901 | 72 | ||||||
Sykes Enterprises (a) | 2,700 | 48 | ||||||
Symmetricom (a) | 4,888 | 23 | ||||||
Synaptics (a) (b) | 2,422 | 132 | ||||||
Synchronoss Technologies (a) (b) | 1,690 | 68 | ||||||
SYNNEX (a) | 890 | 20 | ||||||
Syntel (b) | 825 | 35 | ||||||
Take-Two Interactive Software (a) (b) | 6,688 | 126 | ||||||
TASER International (a) (b) | 5,693 | 95 | ||||||
Technitrol | 3,989 | 117 | ||||||
Techtarget (a) (b) | 706 | 12 | ||||||
Techwell (a) (b) | 1,372 | 17 | ||||||
Tekelec (a) (b) | 5,587 | 74 | ||||||
Terremark Worldwide (a) | 4,757 | 37 | ||||||
Tessera Technologies (a) (b) | 4,540 | 173 | ||||||
The Knot (a) (b) | 2,532 | 49 | ||||||
TheStreet.com (b) | 1,897 | 26 | ||||||
THQ (a) | 6,137 | 166 | ||||||
TIBCO Software (a) (b) | 19,120 | 175 | ||||||
TNS | 2,489 | 40 | ||||||
Travelzoo (a) | 678 | 12 | ||||||
Trident Microsystems (a) (b) | 5,237 | 39 | ||||||
TriQuint Semiconductor (a) | 13,739 | 86 | ||||||
TTM Technologies (a) | 3,869 | 50 | ||||||
Tyler Technologies (a) | 3,572 | 58 | ||||||
Ultimate Software Group (a) | 2,240 | 77 | ||||||
Ultra Clean Holdings (a) | 1,741 | 22 | ||||||
Ultratech (a) (b) | 2,131 | 25 | ||||||
Unica (a) | 900 | 12 | ||||||
United Online (b) | 5,483 | 96 | ||||||
Universal Display (a) | 2,606 | 49 | ||||||
UTStarcom (a) (b) | 9,741 | 31 | ||||||
ValueClick (a) | 9,155 | 249 | ||||||
Vasco Data Security International (a) | 2,400 | 63 | ||||||
Veeco Instruments (a) (b) | 2,900 | 52 | ||||||
Veraz Networks (a) (b) | 572 | 5 | ||||||
ViaSat (a) | 2,273 | 69 | ||||||
Vignette (a) | 2,620 | 45 | ||||||
Visual Sciences (a) | 1,807 | 33 | ||||||
Vocus (a) (b) | 1,189 | 43 | ||||||
Volterra Semiconductor (a) (b) | 1,934 | 24 | ||||||
Websense (a) | 4,125 | 76 | ||||||
Wind River Systems (a) | 6,845 | 86 | ||||||
Wright Express (a) (b) | 3,964 | 153 | ||||||
X-Rite (b) | 2,384 | 33 | ||||||
Zoran (a) | 4,821 | 123 | ||||||
Zygo (a) | 1,499 | 18 | ||||||
23,755 | ||||||||
Materials – 5.5% | ||||||||
A. Schulman | 2,361 | 56 | ||||||
A.M. Castle & Company | 980 | 29 | ||||||
AEP Industries (a) | 745 | 30 | ||||||
Alpha Natural Resources (a) | 5,723 | 157 | ||||||
AMCOL International (b) | 2,286 | 92 | ||||||
American Vanguard | 1,915 | 34 | ||||||
Apex Silver Mines (a) (b) | 5,378 | 110 | ||||||
AptarGroup | 6,347 | 284 | ||||||
Arch Chemicals | 2,229 | 102 | ||||||
Balchem | 1,712 | 37 | ||||||
Brush Engineered Metals (a) | 1,909 | 92 | ||||||
Buckeye Technologies (a) | 3,161 | 57 | ||||||
Calgon Carbon (a) (b) | 3,862 | 58 | ||||||
Cambrex | 2,782 | 32 | ||||||
Century Aluminum (a) | 2,320 | 135 | ||||||
CF Industries Holdings (b) | 5,150 | 453 | ||||||
Chesapeake (b) | 1,950 | 14 | ||||||
Claymont Steel Holdings (a) | 528 | 11 | ||||||
Coeur D’Alene Mines (a) (b) | 27,340 | 108 | ||||||
Compass Minerals International | 2,775 | 102 | ||||||
Deltic Timber | 1,002 | 56 | ||||||
Ferro | 3,979 | 82 | ||||||
Flotek Industries (a) (b) | 1,664 | 85 | ||||||
General Moly (a) (b) | 4,451 | 43 | ||||||
Georgia Gulf (b) | 3,154 | 38 | ||||||
Gibraltar Industries | 2,166 | 39 | ||||||
Glatfelter | 3,870 | 62 | ||||||
GrafTech International (a) | 9,106 | 172 | ||||||
Graphic Packaging (a) | 8,155 | 40 | ||||||
Greif, Class A | 3,043 | 194 | ||||||
H.B. Fuller (b) | 5,562 | 164 | ||||||
Haynes International (a) | 1,068 | 93 | ||||||
Headwaters (a) (b) | 3,614 | 52 | ||||||
Hecla Mining (a) (b) | 11,723 | 113 | ||||||
Hercules | 11,032 | 208 | ||||||
Innophos Holdings | 1,906 | 30 | ||||||
Innospec | 2,202 | 47 | ||||||
Kaiser Aluminum | 1,384 | 105 | ||||||
Koppers Holdings | 1,608 | 72 | ||||||
Landec (a) | 1,993 | 30 | ||||||
LSB Industries (a) (b) | 1,355 | 37 | ||||||
Mercer International (a) (b) | 2,654 | 25 | ||||||
Metal Management | 2,349 | 123 | ||||||
Minerals Technologies | 1,751 | 123 | ||||||
Myers Industries | 2,569 | 54 | ||||||
Neenah Paper | 1,153 | 39 | ||||||
NewMarket Group | 1,403 | 75 | ||||||
NL Industries | 909 | 10 | ||||||
Northwest Pipe (a) | 820 | 30 | ||||||
Olin (b) | 6,762 | 154 | ||||||
Olympic Steel | 865 | 23 | ||||||
OM Group (a) | 2,734 | 145 | ||||||
PolyOne (a) | 8,528 | 68 | ||||||
Quanex | 3,402 | 140 | ||||||
Rock-Tenn, Class A (b) | 3,087 | 90 | ||||||
Rockwood Holdings (a) (b) | 3,128 | 122 | ||||||
Royal Gold (b) | 1,904 | 67 | ||||||
RTI International Metals (a) | 2,105 | 165 |
32 First American Funds 2007 Annual Report
Table of Contents
Small Cap Index Fund (continued) | |||||||||
DESCRIPTION | SHARES | VALUE | |||||||
Schnitzer Steel Industries, Class A (b) | 2,007 | $ | 133 | ||||||
Schweitzer-Mauduit International | 1,541 | 43 | |||||||
Sensient Technologies | 4,500 | 135 | |||||||
Shengda Technologies (a) (b) | 1,586 | 13 | |||||||
Silgan Holdings (b) | 2,353 | 128 | |||||||
Spartech | 2,932 | 45 | |||||||
Stepan | 370 | 13 | |||||||
Stillwater Mining (a) (b) | 3,834 | 43 | |||||||
Symyx Technologies (a) | 3,048 | 28 | |||||||
Terra Industries (a) (b) | 8,515 | 314 | |||||||
Texas Industries (b) | 2,399 | 175 | |||||||
Tronox | 3,802 | 31 | |||||||
Universal Stainless & Alloy (a) | 609 | 23 | |||||||
Uranium Resources (a) (b) | 4,785 | 60 | |||||||
US Concrete (a) | 3,452 | 17 | |||||||
Us Gold Corporation (a) | 4,718 | 22 | |||||||
USEC (a) (b) | 9,339 | 82 | |||||||
Valhi | 232 | 6 | |||||||
W.R. Grace & Company (a) (b) | 6,674 | 198 | |||||||
Wausau-Mosinee Paper (b) | 4,342 | 43 | |||||||
Wheeling-Pittsburgh (a) (b) | 912 | 18 | |||||||
Worthington Industries (b) | 6,336 | 158 | |||||||
Zoltek Companies (a) | 1,996 | 88 | |||||||
7,024 | |||||||||
Telecommunication Services – 1.6% | |||||||||
Alaska Communications Systems Group | 4,335 | 70 | |||||||
Aruba Networks (a) (b) | 730 | 14 | |||||||
Atlantic Tele-Network (b) | 544 | 20 | |||||||
Bigband Networks (a) | 1,130 | 7 | |||||||
Cbeyond (a) (b) | 1,892 | 74 | |||||||
Centennial Communications, Class A (a) | 2,215 | 23 | |||||||
Cincinnati Bell (a) (b) | 24,288 | 132 | |||||||
Cogent Communications Group (a) (b) | 4,581 | 127 | |||||||
Consolidated Communications Holdings | 1,433 | 28 | |||||||
Dobson Communications, Class A (a) | 13,402 | 173 | |||||||
EMS Technologies (a) (b) | 1,566 | 44 | |||||||
FairPoint Communications (b) | 2,705 | 50 | |||||||
Fibertower (a) (b) | 9,440 | 30 | |||||||
General Communication, Class A (a) | 5,258 | 62 | |||||||
Global Crossing (a) (b) | 2,215 | 47 | |||||||
GlobalStar (a) (b) | 1,207 | 10 | |||||||
Golden Telecom (b) | 1,442 | 149 | |||||||
Hungarian Telephone & Cable (a) | 329 | 6 | |||||||
ICO Global Communication Holdings (a) | 9,431 | 41 | |||||||
IDT (b) | 4,603 | 37 | |||||||
InPhonic (a) (b) | 2,265 | 1 | |||||||
Iowa Telecommunication Services (b) | 3,081 | 61 | |||||||
iPCS (a) | 1,539 | 55 | |||||||
North Pittsburgh | 1,530 | 37 | |||||||
NTELOS Holdings (a) (b) | 2,523 | 76 | |||||||
Paetec Holding (a) (b) | 6,445 | 87 | |||||||
Premiere Global Services (a) | 6,491 | 107 | |||||||
Rural Cellular (a) | 1,119 | 50 | |||||||
Shenandoah Telecommunications (b) | 2,142 | 51 | |||||||
SureWest Communications | 1,326 | 35 | |||||||
Syniverse Holdings (a) | 2,334 | 39 | |||||||
Time Warner Telecom, Class A (a) (b) | 13,378 | 311 | |||||||
USA Mobility | 2,117 | 33 | |||||||
Vonage Holdings (a) (b) | 5,930 | 12 | |||||||
2,099 | |||||||||
Utilities – 2.8% | |||||||||
Allete (b) | 2,470 | 108 | |||||||
American States Water | 1,868 | 85 | |||||||
Aquila (a) (b) | 34,359 | 144 | |||||||
Avista | 4,837 | 107 | |||||||
Black Hills (b) | 3,270 | 145 | |||||||
California Water Service (b) | 1,881 | 83 | |||||||
Central Vermont Public Service | 933 | 30 | |||||||
CH Energy Group | 1,528 | 71 | |||||||
CLECO | 5,422 | 143 | |||||||
Consolidated Water (b) | 1,318 | 44 | |||||||
El Paso Electric (a) | 4,198 | 102 | |||||||
Empire District Electric | 2,984 | 72 | |||||||
EnergySouth | 721 | 41 | |||||||
IDACORP (b) | 4,033 | 141 | |||||||
ITC Holdings (b) | 3,897 | 223 | |||||||
Laclede Group | 2,348 | 82 | |||||||
MGE Energy (b) | 2,273 | 76 | |||||||
New Jersey Resources | 2,626 | 129 | |||||||
Nicor (b) | 4,129 | 179 | |||||||
Northwest Natural Gas | 2,315 | 111 | |||||||
NorthWestern | 3,492 | 96 | |||||||
Ormat Technologies | 751 | 40 | |||||||
Otter Tail | 2,898 | 100 | |||||||
Piedmont Natural Gas (b) | 6,722 | 172 | |||||||
PNM Resources (b) | 6,569 | 164 | |||||||
Portland General Electric | 2,776 | 78 | |||||||
SEMCO Energy (a) | 345 | 3 | |||||||
SJW (b) | 1,623 | 57 | |||||||
South Jersey Industries | 3,095 | 116 | |||||||
Southwest Gas | 3,863 | 115 | |||||||
Southwest Water | 2,261 | 29 | |||||||
UIL Holdings | 2,504 | 88 | |||||||
UniSource Energy Holding (b) | 3,233 | 103 | |||||||
Westar Energy (b) | 8,284 | 221 | |||||||
WGL Holdings | 4,200 | 142 | |||||||
3,640 | |||||||||
Total Common Stocks (Cost $89,833) | 127,183 | ||||||||
Warrants – 0.0% | |||||||||
Pegasus Wireless Warrants (b) (c) | |||||||||
(Cost $0) | 604 | — | |||||||
Short-Term Investments – 0.9% | |||||||||
Money Market Fund – 0.6% | |||||||||
First American Prime Obligations Fund, Class Z (d) | 694,842 | 695 | |||||||
U.S. Treasury Obligation – 0.3% | |||||||||
U.S. Treasury Bill | |||||||||
3.813%, 01/24/2008 (e) | $ | 400 | 396 | ||||||
Total Short-Term Investments (Cost $1,090) | 1,091 | ||||||||
Investment Purchased with Proceeds from Securities Lending – 47.4% | |||||||||
Mount Vernon Securities Lending Prime Portfolio (f) | |||||||||
(Cost $60,855) | 60,854,734 | 60,855 | |||||||
Total Investments – 147.4% (Cost $151,778) | 189,129 | ||||||||
Other Assets and Liabilities, Net – (47.4)% | (60,813 | ) | |||||||
Total Net Assets – 100.0% | $ | 128,316 | |||||||
(a) | Non-income producing security. |
(b) | This security or a portion of this security is out on loan at October 31, 2007. Total loaned securities had a market value of $59,078 at October 31, 2007. See note 2 in Notes to Financial Statements. |
(c) | Security is fair valued and illiquid. As of October 31, 2007, the fair value of these investments was $0 or 0.0% of total net assets. See note 2 in Notes to Financial Statements. |
First American Funds 2007 Annual Report 33
Table of Contents
Schedule of Investments October 31, 2007, all dollars are rounded to thousands (000)
Small Cap Index Fund (concluded)
(d) | 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. |
(e) | Security has been deposited as initial margin on open futures contracts. Yield shown is effective yield as of October 31, 2007. See note 2 in Notes to Financial Statements. |
(f) | The fund may loan securities representing up to one third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks, or other institutional borrowers of securities. The fund maintains collateral equal to at least 100% of the value of the securities loaned. The adequacy of the collateral is monitored on a daily basis. The cash collateral received by the fund is invested in this affiliated money market fund. See note 2 in Notes to Financial Statements. |
REIT – | Real Estate Investment Trust |
Schedule of Open Futures Contracts
Number of | Notional | |||||||||||||||
Contracts | Contract | Settlement | Unrealized | |||||||||||||
Description | Purchased | Value | Month | Appreciation | ||||||||||||
Russell 2000 Index Futures | 1 | $ | 416 | December 2007 | $ | 9 | ||||||||||
34 First American Funds 2007 Annual Report
Table of Contents
Small Cap Index Fund (concluded)
(This page intentionally left blank.)
Table of Contents
Statements of Assets and Liabilities | October 31, 2007, all dollars and shares are rounded to thousands (000), except per share data |
Equity | Mid Cap | Small Cap | ||||||||||||||
Index Fund | Index Fund | Index Fund | ||||||||||||||
Investments in unaffiliated securities, at cost | $ | 1,076,458 | $ | 240,514 | $ | 90,228 | ||||||||||
Investments in affiliated securities, at cost | 13,310 | 26,183 | 695 | |||||||||||||
Affiliated investment purchased with proceeds from securities lending, at cost (note 2) | 432,259 | 144,912 | 60,855 | |||||||||||||
ASSETS: | ||||||||||||||||
Investments in unaffiliated securities, at value* (note 2) | $ | 1,969,549 | $ | 338,721 | $ | 127,579 | ||||||||||
Investments in affiliated securities, at value (note 2) | 16,007 | 26,183 | 695 | |||||||||||||
Affiliated investment purchased with proceeds from securities lending, at value (note 2) | 432,259 | 144,912 | 60,855 | |||||||||||||
Cash | 32 | 52 | 82 | |||||||||||||
Receivable for dividends and interest | 1,921 | 302 | 103 | |||||||||||||
Receivable for investment securities sold | — | 311 | 300 | |||||||||||||
Receivable for capital shares sold | 610 | 54 | 32 | |||||||||||||
Receivable for variation margin | 123 | 448 | 7 | |||||||||||||
Prepaid expenses and other assets | 36 | 45 | 36 | |||||||||||||
Total assets | 2,420,537 | 511,028 | 189,689 | |||||||||||||
LIABILITIES: | ||||||||||||||||
Payable upon return of securities loaned (note 2) | 432,259 | 144,912 | 60,855 | |||||||||||||
Payable for investment securities purchased | — | 575 | 107 | |||||||||||||
Payable for capital shares redeemed | 1,428 | 284 | 331 | |||||||||||||
Payable to affiliates (note 3) | 624 | 138 | 70 | |||||||||||||
Payable for distribution and shareholder servicing fees | 92 | 13 | 6 | |||||||||||||
Accrued expenses and other liabilities | 11 | 6 | 4 | |||||||||||||
Total liabilities | 434,414 | 145,928 | 61,373 | |||||||||||||
Net assets | $ | 1,986,123 | $ | 365,100 | $ | 128,316 | ||||||||||
COMPOSITION OF NET ASSETS: | ||||||||||||||||
Portfolio capital | $ | 1,070,170 | $ | 232,474 | $ | 79,794 | ||||||||||
Undistributed (distributions in excess of) net investment income | (11 | ) | 371 | 84 | ||||||||||||
Accumulated net realized gain on investments (note 2) | 20,031 | 33,791 | 11,078 | |||||||||||||
Net unrealized appreciation of investments | 895,788 | 98,207 | 37,351 | |||||||||||||
Net unrealized appreciation of futures contracts | 145 | 257 | 9 | |||||||||||||
Net assets | $ | 1,986,123 | $ | 365,100 | $ | 128,316 | ||||||||||
* Including securities loaned, at value | $ | 424,260 | $ | 141,917 | $ | 59,078 | ||||||||||
The accompanying notes are an integral part of the financial statements.
36 First American Funds 2007 Annual Report
Table of Contents
Equity | Mid Cap | Small Cap | ||||||||||||
Index Fund | Index Fund | Index Fund | ||||||||||||
Class A: | ||||||||||||||
Net assets | $ | 213,957 | $ | 17,868 | $ | 9,109 | ||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 7,462 | 1,139 | 593 | |||||||||||
Net asset value and redemption price per share | $ | 28.67 | $ | 15.69 | $ | 15.37 | ||||||||
Maximum offering price per share1 | $ | 30.34 | $ | 16.60 | $ | 16.26 | ||||||||
Class B: | ||||||||||||||
Net assets | $ | 31,343 | $ | 2,248 | $ | 1,245 | ||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 1,109 | 146 | 84 | |||||||||||
Net asset value, offering price, and redemption price per share2 | $ | 28.27 | $ | 15.36 | $ | 14.86 | ||||||||
Class C: | ||||||||||||||
Net assets | $ | 19,585 | $ | 5,287 | $ | 2,916 | ||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 688 | 343 | 194 | |||||||||||
Net asset value, offering price, and redemption price per share2 | $ | 28.45 | $ | 15.41 | $ | 15.02 | ||||||||
Class R: | ||||||||||||||
Net assets | $ | 7,230 | $ | 5,913 | $ | 703 | ||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 253 | 379 | 46 | |||||||||||
Net asset value, offering price, and redemption price per share | $ | 28.63 | $ | 15.60 | $ | 15.16 | ||||||||
Class Y: | ||||||||||||||
Net assets | $ | 1,714,008 | $ | 333,784 | $ | 114,343 | ||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 59,799 | 21,257 | 7,439 | |||||||||||
Net asset value, offering price, and redemption price per share | $ | 28.66 | $ | 15.70 | $ | 15.37 | ||||||||
1 | The offering price is calculated by dividing the net asset value by 1 minus the maximum sales charge of 5.50%. | |
2 | Class B and C have a contingent deferred sales charge. For a description of this sales charge, see notes 1 and 3 in Notes to Financial Statements. |
First American Funds 2007 Annual Report 37
Table of Contents
Statements of Operations For the year ended October 31, 2007, all dollars are rounded to thousands (000)
Equity | Mid Cap | Small Cap | ||||||||||||||
Index Fund | Index Fund | Index Fund | ||||||||||||||
INVESTMENT INCOME: | ||||||||||||||||
Dividends from unaffiliated securities | $ | 38,052 | $ | 5,603 | $ | 1,941 | ||||||||||
Dividends from affiliated securities | 1,688 | 659 | 230 | |||||||||||||
Interest from unaffiliated securities | 134 | 49 | 20 | |||||||||||||
Securities lending income | 632 | 249 | 280 | |||||||||||||
Total investment income | 40,506 | 6,560 | 2,471 | |||||||||||||
EXPENSES (note 3): | ||||||||||||||||
Investment advisory fees | 5,103 | 925 | 568 | |||||||||||||
Administration fees | 4,547 | 834 | 372 | |||||||||||||
Transfer agent fees | 403 | 121 | 118 | |||||||||||||
Custodian fees | 102 | 19 | 7 | |||||||||||||
Professional fees | 42 | 42 | 42 | |||||||||||||
Registration fees | 67 | 53 | 52 | |||||||||||||
Postage and printing fees | 82 | 18 | 13 | |||||||||||||
Directors’ fees | 16 | 22 | 23 | |||||||||||||
Other expenses | 54 | 33 | 37 | |||||||||||||
Distribution and shareholder servicing fees – Class A | 543 | 42 | 26 | |||||||||||||
Distribution and shareholder servicing fees – Class B | 366 | 24 | 13 | |||||||||||||
Distribution and shareholder servicing fees – Class C | 199 | 49 | 28 | |||||||||||||
Distribution and shareholder servicing fees – Class R | 25 | 25 | 2 | |||||||||||||
Total expenses | 11,549 | 2,207 | 1,301 | |||||||||||||
Less: Fee waivers (note 3) | (2,885 | ) | (227 | ) | (411 | ) | ||||||||||
Less: Indirect payments from custodian (note 3) | (4 | ) | (2 | ) | (2 | ) | ||||||||||
Total net expenses | 8,660 | 1,978 | 888 | |||||||||||||
Investment income – net | 31,846 | 4,582 | 1,583 | |||||||||||||
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS AND FUTURES CONTRACTS – NET (note 6): | ||||||||||||||||
Net realized gain on unaffiliated investments | 37,487 | 38,080 | 13,831 | |||||||||||||
Net realized gain on affiliated investments | 767 | — | — | |||||||||||||
Net realized gain on in-kind distribution (note 8) | 121,979 | — | — | |||||||||||||
Net realized gain on futures contracts | 1,031 | 1,065 | 231 | |||||||||||||
Net change in unrealized appreciation or depreciation of unaffiliated investments | 75,164 | 12,962 | (3,070 | ) | ||||||||||||
Net change in unrealized appreciation or depreciation of affiliated investments | (966 | ) | — | — | ||||||||||||
Net change in unrealized appreciation or depreciation of futures contracts | (447 | ) | (65 | ) | (89 | ) | ||||||||||
Net gain on investments and futures contracts | 235,015 | 52,042 | 10,903 | |||||||||||||
Net increase in net assets resulting from operations | $ | 266,861 | $ | 56,624 | $ | 12,486 | ||||||||||
The accompanying notes are an integral part of the financial statements.
38 First American Funds 2007 Annual Report
Table of Contents
Statements of Changes in Net Assets all dollars are rounded to thousands (000)
Equity | Mid Cap | Small Cap | ||||||||||||||||||||||||||||
Index Fund | Index Fund | Index Fund | ||||||||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||||||||
10/31/07 | 10/31/06 | 10/31/07 | 10/31/06 | 10/31/07 | 10/31/06 | |||||||||||||||||||||||||
OPERATIONS: | ||||||||||||||||||||||||||||||
Investment income – net | $ | 31,846 | $ | 33,848 | $ | 4,582 | $ | 3,641 | $ | 1,583 | $ | 1,084 | ||||||||||||||||||
Net realized gain on unaffiliated investments | 37,487 | 47,833 | 38,080 | 16,650 | 13,831 | 19,061 | ||||||||||||||||||||||||
Net realized gain on affiliated investments | 767 | 394 | — | — | — | — | ||||||||||||||||||||||||
Net realized gain on in-kind distribution | 121,979 | — | — | — | — | — | ||||||||||||||||||||||||
Net realized gain (loss) on futures contracts | 1,031 | 1,901 | 1,065 | (149 | ) | 231 | 115 | |||||||||||||||||||||||
Net change in unrealized appreciation or depreciation of unaffiliated investments | 75,164 | 241,470 | 12,962 | 24,440 | (3,070 | ) | 8,715 | |||||||||||||||||||||||
Net change in unrealized appreciation or depreciation of affiliated investments | (966 | ) | 1,034 | — | — | — | — | |||||||||||||||||||||||
Net change in unrealized appreciation or depreciation of futures contracts | (447 | ) | 29 | (65 | ) | 333 | (89 | ) | 91 | |||||||||||||||||||||
Net increase in net assets resulting from operations | 266,861 | 326,509 | 56,624 | 44,915 | 12,486 | 29,066 | ||||||||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | ||||||||||||||||||||||||||||||
Investment income – net: | ||||||||||||||||||||||||||||||
Class A | (2,903 | ) | (3,188 | ) | (145 | ) | (118 | ) | (82 | ) | (65 | ) | ||||||||||||||||||
Class B | (253 | ) | (338 | ) | (5 | ) | (3 | ) | (2 | ) | — | |||||||||||||||||||
Class C | (134 | ) | (153 | ) | (10 | ) | (5 | ) | (5 | ) | (1 | ) | ||||||||||||||||||
Class R | (56 | ) | (26 | ) | (35 | ) | (3 | ) | (3 | ) | (1 | ) | ||||||||||||||||||
Class Y | (28,278 | ) | (30,181 | ) | (3,806 | ) | (3,558 | ) | (1,322 | ) | (1,226 | ) | ||||||||||||||||||
Net realized gain on investments: | ||||||||||||||||||||||||||||||
Class A | (2,670 | ) | — | (684 | ) | (865 | ) | (1,272 | ) | (306 | ) | |||||||||||||||||||
Class B | (488 | ) | — | (119 | ) | (215 | ) | (166 | ) | (45 | ) | |||||||||||||||||||
Class C | (235 | ) | — | (207 | ) | (203 | ) | (336 | ) | (71 | ) | |||||||||||||||||||
Class R | (42 | ) | — | (197 | ) | (7 | ) | (37 | ) | (5 | ) | |||||||||||||||||||
Class Y | (20,073 | ) | — | (15,634 | ) | (20,352 | ) | (17,014 | ) | (4,372 | ) | |||||||||||||||||||
Total distributions | (55,132 | ) | (33,886 | ) | (20,842 | ) | (25,329 | ) | (20,239 | ) | (6,092 | ) | ||||||||||||||||||
CAPITAL SHARE TRANSACTIONS (note 5): | ||||||||||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||||||||
Proceeds from sales | 40,302 | 41,039 | 6,269 | 4,721 | 1,987 | 2,728 | ||||||||||||||||||||||||
Reinvestment of distributions | 5,055 | 2,685 | 781 | 948 | 1,274 | 366 | ||||||||||||||||||||||||
Payments for redemptions | (83,782 | ) | (80,483 | ) | (5,602 | ) | (6,088 | ) | (4,270 | ) | (4,016 | ) | ||||||||||||||||||
Increase (decrease) in net assets from Class A transactions | (38,425 | ) | (36,759 | ) | 1,448 | (419 | ) | (1,009 | ) | (922 | ) | |||||||||||||||||||
Class B: | ||||||||||||||||||||||||||||||
Proceeds from sales | 1,244 | 1,830 | 218 | 226 | 413 | 267 | ||||||||||||||||||||||||
Reinvestment of distributions | 711 | 327 | 120 | 210 | 163 | 42 | ||||||||||||||||||||||||
Payments for redemptions (note 3) | (17,733 | ) | (21,365 | ) | (992 | ) | (1,406 | ) | (598 | ) | (668 | ) | ||||||||||||||||||
Decrease in net assets from Class B transactions | (15,778 | ) | (19,208 | ) | (654 | ) | (970 | ) | (22 | ) | (359 | ) | ||||||||||||||||||
Class C: | ||||||||||||||||||||||||||||||
Proceeds from sales | 1,794 | 1,467 | 938 | 1,893 | 428 | 1,234 | ||||||||||||||||||||||||
Reinvestment of distributions | 338 | 145 | 197 | 190 | 301 | 68 | ||||||||||||||||||||||||
Payments for redemptions (note 3) | (5,352 | ) | (8,052 | ) | (636 | ) | (1,365 | ) | (339 | ) | (1,040 | ) | ||||||||||||||||||
Increase (decrease) in net assets from Class C transactions | (3,220 | ) | (6,440 | ) | 499 | 718 | 390 | 262 | ||||||||||||||||||||||
Class R: | ||||||||||||||||||||||||||||||
Proceeds from sales | 4,337 | 2,111 | 2,240 | 3,997 | 598 | 264 | ||||||||||||||||||||||||
Reinvestment of distributions | 98 | 26 | 232 | 9 | 40 | 6 | ||||||||||||||||||||||||
Payments for redemptions | (1,177 | ) | (753 | ) | (1,070 | ) | (130 | ) | (216 | ) | (38 | ) | ||||||||||||||||||
Increase in net assets from Class R transactions | 3,258 | 1,384 | 1,402 | 3,876 | 422 | 232 | ||||||||||||||||||||||||
Class Y: | ||||||||||||||||||||||||||||||
Proceeds from sales | 299,763 | 279,571 | 52,493 | 46,865 | 22,880 | 25,574 | ||||||||||||||||||||||||
Reinvestment of distributions | 29,030 | 18,320 | 10,219 | 13,587 | 9,132 | 3,038 | ||||||||||||||||||||||||
Payments for redemptions | (732,535 | ) | (496,343 | ) | (95,477 | ) | (87,249 | ) | (46,440 | ) | (67,311 | ) | ||||||||||||||||||
Decrease in net assets from Class Y transactions | (403,742 | ) | (198,452 | ) | (32,765 | ) | (26,797 | ) | (14,428 | ) | (38,699 | ) | ||||||||||||||||||
Decrease in net assets from capital share transactions | (457,907 | ) | (259,475 | ) | (30,070 | ) | (23,592 | ) | (14,647 | ) | (39,486 | ) | ||||||||||||||||||
Total increase (decrease) in net assets | (246,178 | ) | 33,148 | 5,712 | (4,006 | ) | (22,400 | ) | (16,512 | ) | ||||||||||||||||||||
Net assets at beginning of year | 2,232,301 | 2,199,153 | 359,388 | 363,394 | 150,716 | 167,228 | ||||||||||||||||||||||||
Net assets at end of year | $ | 1,986,123 | $ | 2,232,301 | $ | 365,100 | $ | 359,388 | $ | 128,316 | $ | 150,716 | ||||||||||||||||||
Undistributed (distributions in excess of) net investment income at end of year | $ | (11 | ) | $ | — | $ | 371 | $ | — | $ | 84 | $ | — | |||||||||||||||||
First American Funds 2007 Annual Report 39
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 or | from Net | from Net | Distributions | Value | |||||||||||||||||||||||||||||||
Beginning | Investment | (Losses) on | Investment | Realized | from Return | End of | |||||||||||||||||||||||||||||||
of Period | Income | Investments | Income | Gains | of Capital | Period | |||||||||||||||||||||||||||||||
Equity Index Fund 1 | |||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||
2007 2 | $ | 25.80 | $ | 0.37 | $ | 3.16 | $ | (0.36 | ) | $ | (0.30 | ) | $ | — | $ | 28.67 | |||||||||||||||||||||
2006 2 | 22.59 | 0.33 | 3.21 | (0.33 | ) | — | — | 25.80 | |||||||||||||||||||||||||||||
2005 3 | 23.00 | 0.01 | (0.40 | ) | (0.02 | ) | — | — | 6 | 22.59 | |||||||||||||||||||||||||||
2005 4 | 20.91 | 0.34 | 2.09 | (0.34 | ) | — | — | 6 | 23.00 | ||||||||||||||||||||||||||||
2004 4 | 18.70 | 0.23 | 2.22 | (0.24 | ) | — | — | 6 | 20.91 | ||||||||||||||||||||||||||||
2003 4 | 15.31 | 0.21 | 3.38 | (0.20 | ) | — | — | 18.70 | |||||||||||||||||||||||||||||
Class B | |||||||||||||||||||||||||||||||||||||
2007 2 | $ | 25.47 | $ | 0.17 | $ | 3.11 | $ | (0.18 | ) | $ | (0.30 | ) | $ | — | $ | 28.27 | |||||||||||||||||||||
2006 2 | 22.31 | 0.15 | 3.17 | (0.16 | ) | — | — | 25.47 | |||||||||||||||||||||||||||||
2005 3 | 22.72 | — | (0.40 | ) | (0.01 | ) | — | — | 6 | 22.31 | |||||||||||||||||||||||||||
2005 4 | 20.66 | 0.18 | 2.06 | (0.18 | ) | — | — | 6 | 22.72 | ||||||||||||||||||||||||||||
2004 4 | 18.48 | 0.08 | 2.19 | (0.09 | ) | — | — | 6 | 20.66 | ||||||||||||||||||||||||||||
2003 4 | 15.13 | 0.08 | 3.35 | (0.08 | ) | — | — | 18.48 | |||||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||
2007 2 | $ | 25.62 | $ | 0.17 | $ | 3.14 | $ | (0.18 | ) | $ | (0.30 | ) | $ | — | $ | 28.45 | |||||||||||||||||||||
2006 2 | 22.44 | 0.15 | 3.19 | (0.16 | ) | — | — | 25.62 | |||||||||||||||||||||||||||||
2005 3 | 22.85 | — | (0.40 | ) | (0.01 | ) | — | — | 6 | 22.44 | |||||||||||||||||||||||||||
2005 4 | 20.78 | 0.18 | 2.07 | (0.18 | ) | — | — | 6 | 22.85 | ||||||||||||||||||||||||||||
2004 4 | 18.59 | 0.08 | 2.20 | (0.09 | ) | — | — | 6 | 20.78 | ||||||||||||||||||||||||||||
2003 4 | 15.23 | 0.08 | 3.36 | (0.08 | ) | — | — | 18.59 | |||||||||||||||||||||||||||||
Class R 5 | |||||||||||||||||||||||||||||||||||||
2007 2 | $ | 25.77 | $ | 0.29 | $ | 3.17 | $ | (0.30 | ) | $ | (0.30 | ) | $ | — | $ | 28.63 | |||||||||||||||||||||
2006 2 | 22.57 | 0.26 | 3.21 | (0.27 | ) | — | — | 25.77 | |||||||||||||||||||||||||||||
2005 3 | 22.98 | 0.01 | (0.40 | ) | (0.02 | ) | — | — | 6 | 22.57 | |||||||||||||||||||||||||||
2005 4 | 20.91 | 0.26 | 2.11 | (0.30 | ) | — | — | 6 | 22.98 | ||||||||||||||||||||||||||||
2004 4 | 18.70 | 0.23 | 2.20 | (0.22 | ) | — | — | 6 | 20.91 | ||||||||||||||||||||||||||||
2003 4 | 15.30 | 0.21 | 3.39 | (0.20 | ) | — | — | 18.70 | |||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||
2007 2 | $ | 25.79 | $ | 0.44 | $ | 3.16 | $ | (0.43 | ) | $ | (0.30 | ) | $ | — | $ | 28.66 | |||||||||||||||||||||
2006 2 | 22.58 | 0.39 | 3.21 | (0.39 | ) | — | — | 25.79 | |||||||||||||||||||||||||||||
2005 3 | 22.99 | 0.02 | (0.41 | ) | (0.02 | ) | — | — | 6 | 22.58 | |||||||||||||||||||||||||||
2005 4 | 20.91 | 0.40 | 2.08 | (0.40 | ) | — | — | 6 | 22.99 | ||||||||||||||||||||||||||||
2004 4 | 18.69 | 0.29 | 2.22 | (0.29 | ) | — | — | 6 | 20.91 | ||||||||||||||||||||||||||||
2003 4 | 15.30 | 0.25 | 3.38 | (0.24 | ) | — | — | 18.69 | |||||||||||||||||||||||||||||
1 | Per share data calculated using average shares outstanding method. | |
2 | For the period November 1 to October 31 in the year indicated. | |
3 | For the period October 1, 2005 to October 31, 2005. Effective October 1, 2005, the fund’s fiscal year-end was changed from September 30 to October 31. All ratios for the period have been annualized, except total return and portfolio turnover. | |
4 | For the period October 1 to September 30 in the year indicated. | |
5 | Prior to July 1, 2004, Class R shares were named Class S shares, which had lower fees and expenses. | |
6 | Includes a tax return of capital of less than $0.01. | |
7 | Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived. |
The accompanying notes are an integral part of the financial statements.
40 First American Funds 2007 Annual Report
Table of Contents
Ratio of Net | |||||||||||||||||||||||||||||||||||||
Ratio of | Investment | ||||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses to | Income (Loss) to | |||||||||||||||||||||||||||||||||||
Ratio of | Investment | Average | Average Net | ||||||||||||||||||||||||||||||||||
Net Assets | Expenses to | Income (Loss) | Net Assets | Assets | Portfolio | ||||||||||||||||||||||||||||||||
Total | End of | Average | to Average | (Excluding | (Excluding | Turnover | |||||||||||||||||||||||||||||||
Return 7 | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | |||||||||||||||||||||||||||||||
13.93 | % | $ | 213,957 | 0.62 | % | 1.37 | % | 0.76 | % | 1.23 | % | 4 | % | ||||||||||||||||||||||||
15.76 | 229,185 | 0.62 | 1.36 | 0.77 | 1.21 | 3 | |||||||||||||||||||||||||||||||
(1.70 | ) | 234,629 | 0.62 | 0.69 | 0.79 | 0.52 | — | ||||||||||||||||||||||||||||||
11.69 | 238,379 | 0.62 | 1.53 | 0.79 | 1.36 | 4 | |||||||||||||||||||||||||||||||
13.12 | 234,349 | 0.62 | 1.13 | 0.79 | 0.96 | 1 | |||||||||||||||||||||||||||||||
23.58 | 158,324 | 0.62 | 1.22 | 0.80 | 1.04 | 1 | |||||||||||||||||||||||||||||||
13.05 | % | $ | 31,343 | 1.37 | % | 0.63 | % | 1.51 | % | 0.49 | % | 4 | % | ||||||||||||||||||||||||
14.94 | 43,369 | 1.37 | 0.63 | 1.52 | 0.48 | 3 | |||||||||||||||||||||||||||||||
(1.78 | ) | 56,097 | 1.37 | (0.06 | ) | 1.54 | (0.23 | ) | — | ||||||||||||||||||||||||||||
10.86 | 58,857 | 1.37 | 0.79 | 1.54 | 0.62 | 4 | |||||||||||||||||||||||||||||||
12.31 | 69,828 | 1.37 | 0.38 | 1.54 | 0.21 | 1 | |||||||||||||||||||||||||||||||
22.72 | 71,624 | 1.37 | 0.47 | 1.55 | 0.29 | 1 | |||||||||||||||||||||||||||||||
13.09 | % | $ | 19,585 | 1.37 | % | 0.62 | % | 1.51 | % | 0.48 | % | 4 | % | ||||||||||||||||||||||||
14.93 | 20,714 | 1.37 | 0.62 | 1.52 | 0.47 | 3 | |||||||||||||||||||||||||||||||
(1.78 | ) | 24,195 | 1.37 | (0.05 | ) | 1.54 | (0.22 | ) | — | ||||||||||||||||||||||||||||
10.84 | 26,258 | 1.37 | 0.79 | 1.54 | 0.62 | 4 | |||||||||||||||||||||||||||||||
12.28 | 30,111 | 1.37 | 0.38 | 1.54 | 0.21 | 1 | |||||||||||||||||||||||||||||||
22.65 | 31,330 | 1.37 | 0.47 | 1.55 | 0.29 | 1 | |||||||||||||||||||||||||||||||
13.65 | % | $ | 7,230 | 0.87 | % | 1.07 | % | 1.01 | % | 0.93 | % | 4 | % | ||||||||||||||||||||||||
15.47 | 3,419 | 0.87 | 1.08 | 1.15 | 0.80 | 3 | |||||||||||||||||||||||||||||||
(1.72 | ) | 1,715 | 0.87 | 0.44 | 1.19 | 0.12 | — | ||||||||||||||||||||||||||||||
11.38 | 1,663 | 0.87 | 1.14 | 1.19 | 0.82 | 4 | |||||||||||||||||||||||||||||||
13.00 | 333 | 0.62 | 1.13 | 0.79 | 0.96 | 1 | |||||||||||||||||||||||||||||||
23.66 | 52,925 | 0.62 | 1.22 | 0.80 | 1.04 | 1 | |||||||||||||||||||||||||||||||
14.22 | % | $ | 1,714,008 | 0.37 | % | 1.62 | % | 0.51 | % | 1.48 | % | 4 | % | ||||||||||||||||||||||||
16.07 | 1,935,614 | 0.37 | 1.61 | 0.52 | 1.46 | 3 | |||||||||||||||||||||||||||||||
(1.69 | ) | 1,882,517 | 0.37 | 0.94 | 0.54 | 0.77 | — | ||||||||||||||||||||||||||||||
11.92 | 1,940,567 | 0.37 | 1.78 | 0.54 | 1.61 | 4 | |||||||||||||||||||||||||||||||
13.45 | 1,979,198 | 0.37 | 1.38 | 0.54 | 1.21 | 1 | |||||||||||||||||||||||||||||||
23.89 | 1,771,795 | 0.37 | 1.46 | 0.55 | 1.28 | 1 | |||||||||||||||||||||||||||||||
First American Funds 2007 Annual Report 41
Table of Contents
Financial Highlights For a share outstanding throughout the indicated periods.
Realized and | |||||||||||||||||||||||||||||||||
Net Asset | Net | Unrealized | Distributions | Distributions | Net Asset | ||||||||||||||||||||||||||||
Value | Investment | Gains | from Net | from Net | Value | ||||||||||||||||||||||||||||
Beginning | Income | (Losses) on | Investment | Realized | End of | ||||||||||||||||||||||||||||
of Period | (Loss) | Investments | Income | Gains | Period | ||||||||||||||||||||||||||||
Mid Cap Index Fund 1 | |||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||
2007 2 | $ | 14.25 | $ | 0.15 | $ | 2.08 | $ | (0.13 | ) | $ | (0.66 | ) | $ | 15.69 | |||||||||||||||||||
2006 2 | 13.52 | 0.11 | 1.55 | (0.11 | ) | (0.82 | ) | 14.25 | |||||||||||||||||||||||||
2005 3 | 13.82 | — | (0.30 | ) | — | — | 13.52 | ||||||||||||||||||||||||||
2005 4 | 11.84 | 0.09 | 2.40 | (0.09 | ) | (0.42 | ) | 13.82 | |||||||||||||||||||||||||
2004 4 | 10.36 | 0.05 | 1.67 | (0.05 | ) | (0.19 | ) | 11.84 | |||||||||||||||||||||||||
2003 4 | 8.51 | 0.04 | 2.08 | (0.04 | ) | (0.23 | ) | 10.36 | |||||||||||||||||||||||||
Class B | |||||||||||||||||||||||||||||||||
2007 2 | $ | 13.98 | $ | 0.04 | $ | 2.03 | $ | (0.03 | ) | $ | (0.66 | ) | $ | 15.36 | |||||||||||||||||||
2006 2 | 13.28 | — | 1.53 | (0.01 | ) | (0.82 | ) | 13.98 | |||||||||||||||||||||||||
2005 3 | 13.59 | (0.01 | ) | (0.30 | ) | — | — | 13.28 | |||||||||||||||||||||||||
2005 4 | 11.67 | (0.01 | ) | 2.37 | (0.02 | ) | (0.42 | ) | 13.59 | ||||||||||||||||||||||||
2004 4 | 10.25 | (0.03 | ) | 1.64 | — | (0.19 | ) | 11.67 | |||||||||||||||||||||||||
2003 4 | 8.44 | (0.03 | ) | 2.07 | — | (0.23 | ) | 10.25 | |||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||
2007 2 | $ | 14.03 | $ | 0.04 | $ | 2.03 | $ | (0.03 | ) | $ | (0.66 | ) | $ | 15.41 | |||||||||||||||||||
2006 2 | 13.32 | — | 1.55 | (0.02 | ) | (0.82 | ) | 14.03 | |||||||||||||||||||||||||
2005 3 | 13.63 | (0.01 | ) | (0.30 | ) | — | — | 13.32 | |||||||||||||||||||||||||
2005 4 | 11.70 | (0.01 | ) | 2.38 | (0.02 | ) | (0.42 | ) | 13.63 | ||||||||||||||||||||||||
2004 4 | 10.28 | (0.03 | ) | 1.64 | — | (0.19 | ) | 11.70 | |||||||||||||||||||||||||
2003 4 | 8.47 | (0.03 | ) | 2.07 | — | (0.23 | ) | 10.28 | |||||||||||||||||||||||||
Class R 5 | |||||||||||||||||||||||||||||||||
2007 2 | $ | 14.19 | $ | 0.11 | $ | 2.07 | $ | (0.11 | ) | $ | (0.66 | ) | $ | 15.60 | |||||||||||||||||||
2006 2 | 13.48 | 0.07 | 1.55 | (0.09 | ) | (0.82 | ) | 14.19 | |||||||||||||||||||||||||
2005 3 | 13.78 | — | (0.30 | ) | — | — | 13.48 | ||||||||||||||||||||||||||
2005 4 | 11.83 | 0.04 | 2.41 | (0.08 | ) | (0.42 | ) | 13.78 | |||||||||||||||||||||||||
2004 4 | 10.36 | 0.06 | 1.65 | (0.05 | ) | (0.19 | ) | 11.83 | |||||||||||||||||||||||||
2003 4 | 8.50 | 0.04 | 2.09 | (0.04 | ) | (0.23 | ) | 10.36 | |||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||
2007 2 | $ | 14.27 | $ | 0.19 | $ | 2.07 | $ | (0.17 | ) | $ | (0.66 | ) | $ | 15.70 | |||||||||||||||||||
2006 2 | 13.53 | 0.15 | 1.56 | (0.15 | ) | (0.82 | ) | 14.27 | |||||||||||||||||||||||||
2005 3 | 13.83 | 0.01 | (0.31 | ) | — | — | 13.53 | ||||||||||||||||||||||||||
2005 4 | 11.84 | 0.12 | 2.41 | (0.12 | ) | (0.42 | ) | 13.83 | |||||||||||||||||||||||||
2004 4 | 10.37 | 0.08 | 1.66 | (0.08 | ) | (0.19 | ) | 11.84 | |||||||||||||||||||||||||
2003 4 | 8.51 | 0.06 | 2.09 | (0.06 | ) | (0.23 | ) | 10.37 | |||||||||||||||||||||||||
1 | Per share data calculated using average shares outstanding method. | |
2 | For the period November 1 to October 31 in the year indicated. | |
3 | For the period October 1, 2005 to October 31, 2005. Effective in 2005, the fund’s fiscal year end was changed from September 30 to October 31. All ratios for the period have been annualized, except total return and portfolio turnover. | |
4 | For the period October 1 to September 30 in the year indicated. | |
5 | Prior to July 1, 2004, Class R shares were named Class S shares, which had lower fees and expenses. | |
6 | Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived. |
The accompanying notes are an integral part of the financial statements.
42 First American Funds 2007 Annual Report
Table of Contents
Ratio of Net | |||||||||||||||||||||||||||||||||||
Ratio of | Investment | ||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses to | Income (Loss) | |||||||||||||||||||||||||||||||||
Ratio of | Investment | Average | to Average Net | ||||||||||||||||||||||||||||||||
Net Assets | Expenses to | Income (Loss) | Net Assets | Assets | Portfolio | ||||||||||||||||||||||||||||||
Total | End of | Average | to Average | (Excluding | (Excluding | Turnover | |||||||||||||||||||||||||||||
Return 6 | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | |||||||||||||||||||||||||||||
16.32 | % | $ | 17,868 | 0.75 | % | 1.02 | % | 0.81 | % | 0.96 | % | 15 | % | ||||||||||||||||||||||
12.70 | 14,722 | 0.75 | 0.77 | 0.81 | 0.71 | 7 | |||||||||||||||||||||||||||||
(2.17 | ) | 14,318 | 0.75 | 0.26 | 0.80 | 0.21 | 1 | ||||||||||||||||||||||||||||
21.43 | 14,827 | 0.75 | 0.68 | 0.82 | 0.61 | 15 | |||||||||||||||||||||||||||||
16.80 | 11,987 | 0.75 | 0.47 | 0.80 | 0.42 | 14 | |||||||||||||||||||||||||||||
25.45 | 5,332 | 0.75 | 0.45 | 0.84 | 0.36 | 23 | |||||||||||||||||||||||||||||
15.41 | % | $ | 2,248 | 1.50 | % | 0.32 | % | 1.56 | % | 0.26 | % | 15 | % | ||||||||||||||||||||||
11.87 | 2,678 | 1.50 | 0.03 | 1.56 | (0.03 | ) | 7 | ||||||||||||||||||||||||||||
(2.28 | ) | 3,485 | 1.50 | (0.49 | ) | 1.55 | (0.54 | ) | 1 | ||||||||||||||||||||||||||
20.57 | 3,546 | 1.50 | (0.08 | ) | 1.57 | (0.15 | ) | 15 | |||||||||||||||||||||||||||
15.88 | 3,133 | 1.50 | (0.27 | ) | 1.55 | (0.32 | ) | 14 | |||||||||||||||||||||||||||
24.63 | 2,419 | 1.50 | (0.30 | ) | 1.59 | (0.39 | ) | 23 | |||||||||||||||||||||||||||
15.39 | % | $ | 5,287 | 1.50 | % | 0.28 | % | 1.56 | % | 0.22 | % | 15 | % | ||||||||||||||||||||||
11.96 | 4,320 | 1.50 | 0.02 | 1.56 | (0.04 | ) | 7 | ||||||||||||||||||||||||||||
(2.27 | ) | 3,388 | 1.50 | (0.49 | ) | 1.55 | (0.54 | ) | 1 | ||||||||||||||||||||||||||
20.60 | 3,533 | 1.50 | (0.08 | ) | 1.57 | (0.15 | ) | 15 | |||||||||||||||||||||||||||
15.83 | 2,653 | 1.50 | (0.27 | ) | 1.55 | (0.32 | ) | 14 | |||||||||||||||||||||||||||
24.55 | 1,756 | 1.50 | (0.30 | ) | 1.59 | (0.39 | ) | 23 | |||||||||||||||||||||||||||
16.01 | % | $ | 5,913 | 1.00 | % | 0.78 | % | 1.06 | % | 0.72 | % | 15 | % | ||||||||||||||||||||||
12.40 | 4,032 | 1.00 | 0.47 | 1.17 | 0.30 | 7 | |||||||||||||||||||||||||||||
(2.18 | ) | 131 | 1.00 | 0.01 | 1.20 | (0.19 | ) | 1 | |||||||||||||||||||||||||||
21.09 | 122 | 1.00 | 0.28 | 1.22 | 0.06 | 15 | |||||||||||||||||||||||||||||
16.62 | 1 | 0.75 | 0.49 | 0.80 | 0.44 | 14 | |||||||||||||||||||||||||||||
25.60 | 4,134 | 0.75 | 0.46 | 0.84 | 0.37 | 23 | |||||||||||||||||||||||||||||
16.52 | % | $ | 333,784 | 0.50 | % | 1.29 | % | 0.56 | % | 1.23 | % | 15 | % | ||||||||||||||||||||||
13.05 | 333,636 | 0.50 | 1.03 | 0.56 | 0.97 | 7 | |||||||||||||||||||||||||||||
(2.17 | ) | 342,072 | 0.50 | 0.51 | 0.55 | 0.46 | 1 | ||||||||||||||||||||||||||||
21.82 | 353,354 | 0.50 | 0.92 | 0.57 | 0.85 | 15 | |||||||||||||||||||||||||||||
16.97 | 313,403 | 0.50 | 0.73 | 0.55 | 0.68 | 14 | |||||||||||||||||||||||||||||
25.86 | 239,174 | 0.50 | 0.71 | 0.59 | 0.62 | 23 | |||||||||||||||||||||||||||||
First American Funds 2007 Annual Report 43
Table of Contents
Financial Highlights For a share outstanding throughout the indicated periods.
Realized and | |||||||||||||||||||||||||||||||||
Net Asset | Net | Unrealized | Distributions | Distributions | Net Asset | ||||||||||||||||||||||||||||
Value | Investment | Gains or | from Net | from Net | Value | ||||||||||||||||||||||||||||
Beginning | Income | (Losses) on | Investment | Realized | End of | ||||||||||||||||||||||||||||
of Period | (Loss) | Investments | Income | Gains | Period | ||||||||||||||||||||||||||||
Small Cap Index Fund 1 | |||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||
2007 2 | $ | 16.23 | $ | 0.14 | $ | 1.13 | $ | (0.12 | ) | $ | (2.01 | ) | $ | 15.37 | |||||||||||||||||||
2006 2 | 14.12 | 0.07 | 2.56 | (0.10 | ) | (0.42 | ) | 16.23 | |||||||||||||||||||||||||
2005 3 | 14.57 | — | (0.45 | ) | — | — | 14.12 | ||||||||||||||||||||||||||
2005 4 | 13.38 | 0.07 | 2.17 | (0.06 | ) | (0.99 | ) | 14.57 | |||||||||||||||||||||||||
2004 4 | 11.47 | 0.04 | 1.98 | (0.03 | ) | (0.08 | ) | 13.38 | |||||||||||||||||||||||||
2003 4 | 8.55 | 0.04 | 2.92 | (0.04 | ) | — | 11.47 | ||||||||||||||||||||||||||
Class B | |||||||||||||||||||||||||||||||||
2007 2 | $ | 15.77 | $ | 0.03 | $ | 1.09 | $ | (0.02 | ) | $ | (2.01 | ) | $ | 14.86 | |||||||||||||||||||
2006 2 | 13.76 | (0.04 | ) | 2.48 | (0.01 | ) | (0.42 | ) | 15.77 | ||||||||||||||||||||||||
2005 3 | 14.21 | (0.01 | ) | (0.44 | ) | — | — | 13.76 | |||||||||||||||||||||||||
2005 4 | 13.15 | (0.03 | ) | 2.08 | — | (0.99 | ) | 14.21 | |||||||||||||||||||||||||
2004 4 | 11.33 | (0.06 | ) | 1.96 | — | (0.08 | ) | 13.15 | |||||||||||||||||||||||||
2003 4 | 8.47 | (0.03 | ) | 2.90 | (0.01 | ) | — | 11.33 | |||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||
2007 2 | $ | 15.92 | $ | 0.03 | $ | 1.10 | $ | (0.02 | ) | $ | (2.01 | ) | $ | 15.02 | |||||||||||||||||||
2006 2 | 13.88 | (0.04 | ) | 2.51 | (0.01 | ) | (0.42 | ) | 15.92 | ||||||||||||||||||||||||
2005 3 | 14.34 | (0.01 | ) | (0.45 | ) | — | — | 13.88 | |||||||||||||||||||||||||
2005 4 | 13.26 | (0.03 | ) | 2.10 | — | (0.99 | ) | 14.34 | |||||||||||||||||||||||||
2004 4 | 11.43 | (0.06 | ) | 1.97 | — | (0.08 | ) | 13.26 | |||||||||||||||||||||||||
2003 4 | 8.54 | (0.03 | ) | 2.93 | (0.01 | ) | — | 11.43 | |||||||||||||||||||||||||
Class R 5 | |||||||||||||||||||||||||||||||||
2007 2 | $ | 16.04 | $ | 0.11 | $ | 1.11 | $ | (0.09 | ) | $ | (2.01 | ) | $ | 15.16 | |||||||||||||||||||
2006 2 | 13.97 | 0.03 | 2.53 | (0.07 | ) | (0.42 | ) | 16.04 | |||||||||||||||||||||||||
2005 3 | 14.43 | — | (0.46 | ) | — | — | 13.97 | ||||||||||||||||||||||||||
2005 4 | 13.31 | 0.04 | 2.11 | (0.04 | ) | (0.99 | ) | 14.43 | |||||||||||||||||||||||||
2004 4 | 11.41 | 0.03 | 1.97 | (0.02 | ) | (0.08 | ) | 13.31 | |||||||||||||||||||||||||
2003 4 | 8.52 | 0.05 | 2.88 | (0.04 | ) | — | 11.41 | ||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||
2007 2 | $ | 16.23 | $ | 0.18 | $ | 1.13 | $ | (0.16 | ) | $ | (2.01 | ) | $ | 15.37 | |||||||||||||||||||
2006 2 | 14.12 | 0.11 | 2.55 | (0.13 | ) | (0.42 | ) | 16.23 | |||||||||||||||||||||||||
2005 3 | 14.57 | 0.01 | (0.46 | ) | — | — | 14.12 | ||||||||||||||||||||||||||
2005 4 | 13.43 | 0.11 | 2.12 | (0.10 | ) | (0.99 | ) | 14.57 | |||||||||||||||||||||||||
2004 4 | 11.51 | 0.07 | 1.99 | (0.06 | ) | (0.08 | ) | 13.43 | |||||||||||||||||||||||||
2003 4 | 8.57 | 0.07 | 2.94 | (0.07 | ) | — | 11.51 | ||||||||||||||||||||||||||
1 | Per share data calculated using average shares outstanding method. | |
2 | For the period November 1 to October 31 in the year indicated. | |
3 | For the period October 1, 2005 to October 31, 2005. Effective in 2005, the Fund’s fiscal year-end was changed from September 30 to October 31. All ratios for the period have been annualized, except total return and portfolio turnover. | |
4 | For the period October 1 to September 30 in the year indicated. | |
5 | Prior to July 1, 2004, Class R shares were named Class S shares, which had lower fees and expenses. | |
6 | Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived. |
The accompanying notes are an integral part of the financial statements.
44 First American Funds 2007 Annual Report
Table of Contents
Ratio of Net | |||||||||||||||||||||||||||||||||||
Ratio of | Investment | ||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses to | Income (Loss) | |||||||||||||||||||||||||||||||||
Ratio of | Investment | Average | to Average Net | ||||||||||||||||||||||||||||||||
Net Assets | Expenses to | Income (Loss) | Net Assets | Assets | Portfolio | ||||||||||||||||||||||||||||||
Total | End of | Average | to Average | (Excluding | (Excluding | Turnover | |||||||||||||||||||||||||||||
Return 6 | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | |||||||||||||||||||||||||||||
8.56 | % | $ | 9,109 | 0.83 | % | 0.92 | % | 1.12 | % | 0.63 | % | 12 | % | ||||||||||||||||||||||
19.02 | 10,639 | 0.83 | 0.47 | 1.08 | 0.22 | 17 | |||||||||||||||||||||||||||||
(3.09 | ) | 10,067 | 0.83 | 0.27 | 1.01 | 0.09 | — | ||||||||||||||||||||||||||||
17.08 | 10,323 | 0.90 | 0.53 | 1.03 | 0.40 | 23 | |||||||||||||||||||||||||||||
17.71 | 8,749 | 0.93 | 0.30 | 1.02 | 0.21 | 25 | |||||||||||||||||||||||||||||
34.77 | 3,480 | 0.93 | 0.42 | 1.05 | 0.30 | 41 | |||||||||||||||||||||||||||||
7.78 | % | $ | 1,245 | 1.58 | % | 0.17 | % | 1.87 | % | (0.12 | )% | 12 | % | ||||||||||||||||||||||
18.07 | 1,333 | 1.58 | (0.28 | ) | 1.83 | (0.53 | ) | 17 | |||||||||||||||||||||||||||
(3.17 | ) | 1,498 | 1.58 | (0.48 | ) | 1.76 | (0.66 | ) | — | ||||||||||||||||||||||||||
15.82 | 1,555 | 1.65 | (0.23 | ) | 1.78 | (0.36 | ) | 23 | |||||||||||||||||||||||||||
16.83 | 1,494 | 1.68 | (0.46 | ) | 1.77 | (0.55 | ) | 25 | |||||||||||||||||||||||||||
33.87 | 993 | 1.68 | (0.33 | ) | 1.80 | (0.45 | ) | 41 | |||||||||||||||||||||||||||
7.78 | % | $ | 2,916 | 1.58 | % | 0.17 | % | 1.87 | % | (0.12 | )% | 12 | % | ||||||||||||||||||||||
18.15 | 2,662 | 1.58 | (0.28 | ) | 1.83 | (0.53 | ) | 17 | |||||||||||||||||||||||||||
(3.21 | ) | 2,068 | 1.58 | (0.48 | ) | 1.76 | (0.66 | ) | — | ||||||||||||||||||||||||||
15.84 | 2,256 | 1.65 | (0.23 | ) | 1.78 | (0.36 | ) | 23 | |||||||||||||||||||||||||||
16.77 | 1,939 | 1.68 | (0.46 | ) | 1.77 | (0.55 | ) | 25 | |||||||||||||||||||||||||||
33.94 | 1,268 | 1.68 | (0.33 | ) | 1.80 | (0.45 | ) | 41 | |||||||||||||||||||||||||||
8.34 | % | $ | 703 | 1.08 | % | 0.71 | % | 1.37 | % | 0.42 | % | 12 | % | ||||||||||||||||||||||
18.75 | 280 | 1.08 | 0.23 | 1.47 | (0.16 | ) | 17 | ||||||||||||||||||||||||||||
(3.19 | ) | 23 | 1.08 | 0.02 | 1.41 | (0.31 | ) | — | |||||||||||||||||||||||||||
16.45 | 11 | 1.15 | 0.30 | 1.43 | 0.02 | 23 | |||||||||||||||||||||||||||||
17.65 | 1 | 0.93 | 0.24 | 0.99 | 0.18 | 25 | |||||||||||||||||||||||||||||
34.54 | 3,210 | 0.93 | 0.52 | 1.05 | 0.40 | 41 | |||||||||||||||||||||||||||||
8.84 | % | $ | 114,343 | 0.58 | % | 1.16 | % | 0.87 | % | 0.87 | % | 12 | % | ||||||||||||||||||||||
19.32 | 135,802 | 0.58 | 0.72 | 0.83 | 0.47 | 17 | |||||||||||||||||||||||||||||
(3.09 | ) | 153,572 | 0.58 | 0.52 | 0.76 | 0.34 | — | ||||||||||||||||||||||||||||
16.93 | 164,156 | 0.65 | 0.78 | 0.78 | 0.65 | 23 | |||||||||||||||||||||||||||||
18.02 | 156,411 | 0.68 | 0.54 | 0.77 | 0.45 | 25 | |||||||||||||||||||||||||||||
35.23 | 119,102 | 0.68 | 0.68 | 0.80 | 0.56 | 41 | |||||||||||||||||||||||||||||
First American Funds 2007 Annual Report 45
Table of Contents
Notes to Financial Statements October 31, 2007, all dollars and shares are rounded to thousands (000)
1 > | Organization |
The Equity Index Fund, Mid Cap Index Fund, and Small Cap Index Fund (each a “fund” and collectively, the “funds”) are mutual funds offered by First American Investment Funds, Inc. (“FAIF”), which is a member of the First American Family of Funds. As of October 31, 2007, FAIF offered 42 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. The Equity Index Fund, Mid Cap Index Fund, and Small Cap Index Fund are each diversified open-end management investment companies. | |
FAIF offers Class A, Class B, Class C, Class R, and Class Y shares. Class A shares are sold with a front-end sales charge. 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. | |
The funds’ prospectus provides descriptions of each fund’s investment objective, principal investment strategies, and principal risks. All classes of shares have identical voting, dividend, liquidation, and other rights, and the same terms and conditions, except that certain fees, including distribution and shareholder servicing fees, may differ among classes. Each class has exclusive voting rights on any matters relating to that class’s servicing or distribution arrangements. |
2 > | Summary of Significant Accounting Policies |
The significant accounting policies followed by the funds are as follows: | |
SECURITY VALUATIONS – Security valuations for the funds’ investments are furnished by an independent pricing service that has been approved by the funds’ board of directors. Investments in equity securities that are traded on a national securities exchange (or reported on the Nasdaq national market system) are stated at the last quoted sales price if readily available for such securities on each business day. For securities traded on the Nasdaq national market system, the funds utilize the Nasdaq Official Closing Price which compares the last trade to the bid/ask range of a security. If the last trade falls within the bid/ask range, then that price will be the closing price. If the last trade is outside the bid/ask range, and falls above the ask, the ask 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. Debt obligations with 60 days or less remaining until maturity may be valued at their amortized cost, which approximates market value. | |
The following investment vehicles, when held by a fund, are priced as follows: Exchange listed futures and options on futures are priced at their last sale price on the exchange on which they are principally traded, as determined by FAF Advisors, on the day the valuation is made. If there were no sales on that day, futures and options on futures will be valued at the last reported bid price. Options on securities, indices, and currencies traded on Nasdaq or listed on a stock exchange, whether domestic or foreign, are valued at the last sale price on Nasdaq or on any exchange on the day the valuation is made. If there were no sales on that day, the options will be valued at the last sale price on the previous valuation date. Last sale prices are obtained from an independent pricing service. Forward contracts (other than currency forward contracts), swaps, and over-the-counter options on securities, indices, and currencies are valued at the quotations received from an independent pricing service, if available. | |
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. As of October 31, 2007, the Equity Index Fund, Mid Cap Index Fund, and Small Cap Index Fund had fair |
46 First American Funds 2007 Annual Report
Table of Contents
valued securities with a total market value of $0, $0, and $0 or 0.0%, 0.0%, and 0.0%, respectively, of total net assets for the fund. | |
Investments in open-end mutual funds are valued at their respective net asset values 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. | |
DISTRIBUTIONS TO SHAREHOLDERS – Distributions from net investment income are declared and paid quarterly for Mid Cap Index Fund and Small Cap Index Fund and monthly for Equity Index Fund. Distributions are payable in cash or reinvested in additional shares of the fund. Any net realized capital gains on sales of a fund’s securities are distributed to shareholders at least annually. | |
FEDERAL TAXES – Each fund is treated as a separate taxable entity. Each fund intends to continue to qualify as a regulated investment company as provided in Subchapter M of the Internal Revenue Code, as amended, and to distribute all taxable income, if any, to its shareholders. Accordingly, no provision for federal income taxes is required. | |
Net investment income and net realized gains (losses) may differ for financial statement and tax purposes because of temporary or permanent book-to-tax differences. These differences are primarily due to losses deferred from wash sales, the tax recognition of mark to market gains (losses) on open futures contracts, proceeds from securities litigation, and the sale of real estate investment trust securities (“REITs”). To the extent these differences are permanent, reclassifications are made to the appropriate equity accounts in the period in which the differences arise. | |
On the Statements of Assets and Liabilities the following reclassifications were made: |
Accumulated | Undistributed | |||||||||||
Net Realized | Net Investment | Portfolio | ||||||||||
Fund | Gain (Loss) | Income | Capital | |||||||||
Equity Index Fund | $ | (123,794 | ) | $ | (233 | ) | $ | 124,027 | ||||
Mid Cap Index Fund | (3,895 | ) | (210 | ) | 4,105 | |||||||
Small Cap Index Fund | (2,172 | ) | (85 | ) | 2,257 | |||||||
The tax character of distributions paid during the year 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 or year in which the amounts are distributed may differ from the period or year that the income or realized gains (losses) are recorded by the fund. The tax character of distributions paid during the fiscal year ended October 31, 2007 and the fiscal year ended October 31, 2006, were as follows: |
October 31, 2007 | ||||||||||||
Ordinary | Long Term | |||||||||||
Fund | Income | Gain | Total | |||||||||
Equity Index Fund | $ | 31,624 | $ | 23,508 | $ | 55,132 | ||||||
Mid Cap Index Fund | 4,340 | 16,502 | 20,842 | |||||||||
Small Cap Index Fund | 2,149 | 18,090 | 20,239 | |||||||||
October 31, 2006 | ||||||||||||
Ordinary | Long Term | |||||||||||
Fund | Income | Gain | Total | |||||||||
Equity Index Fund | $ | 33,446 | $ | 440 | $ | 33,886 | ||||||
Mid Cap Index Fund | 4,985 | 20,344 | 25,329 | |||||||||
Small Cap Index Fund | 1,293 | 4,799 | 6,092 | |||||||||
As of October 31, 2007, the components of accumulated earnings (deficit) on a tax basis were as follows: |
Undistributed | Undistributed | Other | Total | |||||||||||||||||
Ordinary | Long Term | Accumulated | Unrealized | Accumulated | ||||||||||||||||
Fund | Income | Capital Gains | Losses | Appreciation | Earnings | |||||||||||||||
Equity Index Fund | $ | 1,052 | $ | 35,765 | — | $ | 879,147 | $ | 915,964 | |||||||||||
Mid Cap Index Fund | 1,139 | 34,688 | — | 96,805 | 132,632 | |||||||||||||||
Small Cap Index Fund | 972 | 10,894 | (82 | ) | 36,743 | 48,527 | ||||||||||||||
First American Funds 2007 Annual Report 47
Table of Contents
Notes to Financial Statements October 31, 2007, all dollars and shares are rounded to thousands (000)
The difference between book and tax basis unrealized appreciation (depreciation) is primarily due to the tax deferral of losses on wash sales and the amount of gain (loss) recognized for tax purposes due to mark-to-market adjustments on open futures contracts. | |
FUTURES TRANSACTIONS – In order to gain exposure to or protect against changes in the market, maintain sufficient liquidity to meet redemption requests, and to increase the level of fund assets devoted to replicating the composition of the S&P and Russell indices while reducing transaction costs, the funds may enter into S&P and Russell Index futures contracts and other stock index futures contracts. Upon entering into a futures contract, the fund is required to deposit cash or pledge U.S. government securities. The margin required for a futures contract is set by the exchange on which the contract is traded. Subsequent payments, which are dependent on the daily fluctuations in the value of the underlying security or securities, are made or received by the fund each day (daily variation margin) and are recorded as unrealized gains (losses) until the contract is closed. When the contract is closed, the fund records a realized gain (loss) equal to the difference between the proceeds from (or cost of) the closing transaction and the fund’s basis in the contract. | |
Risks of entering into futures contracts, in general, include the possibility that there will not be a perfect price correlation between the futures contracts and the underlying securities. Second, it is possible that a lack of liquidity for futures contracts could exist in the secondary market, resulting in an inability to close a futures position prior to its maturity date. Third, the purchase of a futures contract involves the risk that a fund could lose more than the original margin deposit required to initiate a futures transaction. These contracts involve market risk in excess of the amount reflected in the fund’s statement of assets and liabilities. Unrealized gains (losses) on outstanding positions in futures contracts held at the close of the year will be recognized as capital gains (losses) for federal income tax purposes. | |
The funds’ outstanding futures contracts as of October 31, 2007, are disclosed in the Schedule of Investments. | |
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 October 31, 2007, Equity Index Fund, Mid Cap Index Fund, and Small Cap Index Fund had investments in illiquid securities with a total value of $0, $0, and $0 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: |
Equity Index Fund | Shares | Dates Acquired | Cost Basis | |||||||||
Seagate Technology, Escrow Shares | 45 | 11/00 to 11/02 | $ | — | ||||||||
Mid Cap Index Fund | Shares | Date Acquired | Cost Basis | |||||||||
Travelcenters, Fractional Shares | — | * | 10/01 | $ | — | |||||||
Small Cap Index Fund | Shares | Dates Acquired | Cost Basis | |||||||||
FirstBank, Fractional Share | — | * | 8/05 | $ | — | |||||||
National Penn, Fractional Share | — | * | 10/05 | — | ||||||||
Pegasus Wireless, Warrants | 604 | 8/06 | — | |||||||||
Petrocorp, Escrow Shares | 2 | 6/03 to 8/05 | — | |||||||||
USB Holding Company, Fractional Share | — | * | 8/05 | — | ||||||||
* | Due to the presentation of the financial statements in thousands, the number rounds to zero. |
SECURITIES LENDING – In order to generate additional income, each fund may lend securities representing up to one-third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks, or other institutional borrowers of securities. Each fund’s policy is to receive collateral from the borrower in the form of cash, U.S. government securities, or other high-grade debt obligations equal to at least 100% of the value of securities loaned. If the value of the securities on loan increases, additional collateral is received from the borrower. As with other extensions of credit, there may be risks of delay in recovery of the securities or even loss of rights in the collateral should the borrower of the security fail financially. | |
U.S. Bank National Association (“U.S. Bank”), the parent company of the funds’ advisor, serves as the securities lending agent for the funds in transactions involving the lending of portfolio securities on behalf of the funds. U.S. Bank acts as the securities lending agent pursuant to, and subject to compliance with conditions contained in, an exemptive order issued by the Securities and Exchange Commission (“SEC”). U.S. Bank receives fees as a percentage of each fund’s net income from securities |
48 First American Funds 2007 Annual Report
Table of Contents
lending transactions. Collateral for securities on loan is invested in a money market fund administered by FAF Advisors, Inc. (“FAF Advisors”) and FAF Advisors receives an administration fee equal to 0.02% of such fund’s average daily net assets. Securities lending fees paid to U.S. Bank by the funds for the fiscal year ended October 31, 2007, were as follows: |
Fund | Amount | |||
Equity Index Fund | $ | 264 | ||
Mid Cap Index Fund | 108 | |||
Small Cap Index Fund | 112 | |||
Each fund’s income from securities lending is recorded on the Statement of Operations as securities lending income net of fees paid to U.S. Bank. | |
SECURITY LITIGATION SETTLEMENTS – Income from settlement proceeds related to portfolio securities is recorded as an adjustment to realized or unrealized gains or losses when cash is received. For the fiscal year ended October 31, 2007, Equity Index Fund, Mid Cap Index Fund, and Small Cap Index Fund recorded $449, $555, and $112, respectively, as an adjustment to realized gains or losses for settlement proceeds related to securities no longer included in the portfolios. | |
EXPENSES – Expenses that are directly related to one of the funds are charged directly to that fund. Other operating expenses are allocated to the funds on several bases, including evenly across all funds, allocated based on relative net assets of all funds within the First American Family of Funds, or a combination of both methods. Class specific expenses, such as distribution fees and shareholder servicing fees, are borne by that class. Income, other expenses, and realized and unrealized gains and losses of a fund are allocated to each respective class in proportion to the relative net assets of each class. | |
INTERFUND LENDING PROGRAM – Pursuant to an exemptive order issued by the SEC, the funds, along with other registered investment companies in the First American Family of Funds, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating funds. The funds did not have any interfund lending transactions during the fiscal year ended October 31, 2007. | |
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 open-end First American Funds, preselected by each director. All amounts in the Plan are 100% vested and accounts under the Plan are obligations of the funds. Deferred amounts remain in the funds until distributed in accordance with the Plan. | |
USE OF ESTIMATES IN PREPARATION OF FINANCIAL STATEMENTS – The preparation of financial statements, in conformity with U.S. generally accepted accounting principles, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported results of operations during the reporting period. Actual results could differ from those estimates. |
3 > | Fees and Expenses |
INVESTMENT ADVISORY FEES – Pursuant to an investment advisory agreement (the “Agreement”), FAF Advisors manages each fund’s assets and furnishes related office facilities, equipment, research, and personnel. The Agreement requires each fund to pay FAF Advisors a monthly fee based upon average daily net assets. The annual fee for Equity Index Fund, Mid Cap Index Fund, and Small Cap Index Fund is 0.25%, 0.25%, and 0.40%, respectively. FAF Advisors has agreed to waive fees and reimburse other fund expenses through June 30, 2008, 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 | |||||||||||||||||
Equity Index Fund | 0.62 | % | 1.37 | % | 1.37 | % | 0.87 | % | 0.37 | % | ||||||||||||
Mid Cap Index Fund | 0.75 | 1.50 | 1.50 | 1.00 | 0.50 | |||||||||||||||||
Small Cap Index Fund | 0.83 | 1.58 | 1.58 | 1.08 | 0.58 | |||||||||||||||||
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. | |
ADMINISTRATION FEES – FAF Advisors serves as the funds’ administrator pursuant to an administration agreement between FAF Advisors and the funds. U.S. Bancorp Fund Services, LLC (“USBFS”) serves as sub-administrator pursuant to a sub-administration agreement between USBFS and FAF Advisors. FAF Advisors is a subsidiary of U.S. Bank. Both U.S. Bank and USBFS are direct subsidiaries of U.S. Bancorp. Under the administration agreement, FAF Advisors is compensated to provide, or compensates other entities to provide, services to the funds. These services include various legal, oversight, administrative, and accounting services. The funds pay FAF Advisors administration fees, which are calculated |
First American Funds 2007 Annual Report 49
Table of Contents
Notes to Financial Statements October 31, 2007, all dollars and shares are rounded to thousands (000)
daily and paid monthly, equal to each fund’s pro rata share of an amount equal, on a annual basis, to 0.25% of the aggregate average daily net assets of all open-end mutual funds in the First American Family of Funds up to $8 billion, 0.235% on the next $17 billion of the aggregate average daily net assets, 0.22% on the next $25 billion of the aggregate average daily net assets, and 0.20% of the aggregate average daily net assets in excess of $50 billion. All fees paid to the sub-administrator are paid from the administration fee. In addition to these fees, the funds may reimburse FAF Advisors and the sub-administrator for any out-of-pocket expenses incurred in providing administration services. | |
TRANSFER AGENT FEES – USBFS serves as the funds’ transfer agent pursuant to a transfer agent agreement with FAIF. The funds are charged transfer agent fees on a per shareholder account basis, subject to a minimum fee per share class. These fees are charged to each fund based upon the number of accounts within that fund. In addition to these fees, the funds may reimburse USBFS for out-of-pocket expenses incurred in providing transfer agent services. | |
CUSTODIAN FEES – U.S. Bank serves as the funds’ custodian pursuant to a custodian agreement with FAIF. The custodian fee charged for each fund is equal to an annual rate of 0.005% of average daily net assets. All fees are computed daily and paid monthly. | |
Under the custodian agreement, interest earned on uninvested cash balances is used to reduce a portion of each fund’s custodian expenses. These credits, if any, are disclosed as “Indirect payments from the custodian” in the Statement of Operations. Conversely, the custodian charges a fee for any cash overdrafts incurred, which will increase the fund’s custodian expenses. For the fiscal year ended October 31, 2007, custodian fees for Equity Index Fund, Mid Cap Index Fund, and Small Cap Index Fund were unchanged as a result of overdrafts and decreased by $4, $2, and $2, respectively, as a result of interest earned. | |
DISTRIBUTION AND SHAREHOLDER SERVICING FEES – Quasar Distributors, LLC (“Quasar”), a subsidiary of U.S. Bancorp, serves as distributor of the funds pursuant to a distribution agreement with FAIF. Under the distribution agreement, and pursuant to a plan adopted by each fund under rule 12b-1 of the Investment Company Act, each fund pays Quasar a monthly distribution and/or shareholder servicing fee equal to an annual rate of 0.25%, 1.00%, 1.00% and 0.50% of each fund’s average daily net assets attributable to Class A shares, Class B shares, Class C shares, and Class R shares, respectively. Class Y shares pay no distribution or shareholder servicing fees. These fees may be used by Quasar to provide compensation for sales support, distribution activities, and/or shareholder servicing activities. | |
Under these distribution and shareholder servicing agreements, the following amounts were retained by affiliates of FAF Advisors for the fiscal year ended October 31, 2007: |
Fund | Amount | |||
Equity Index Fund | $ | 438 | ||
Mid Cap Index Fund | 52 | |||
Small Cap Index Fund | 29 | |||
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 most other operating expenses including: legal, auditing, registration fees, postage and printing of shareholder reports, fees and expenses of independent directors, insurance, and other miscellaneous expenses. For the fiscal year ended October 31, 2007, legal fees and expenses of $16 were paid to a law firm of which an Assistant Secretary of the funds is a partner. | |
CONTINGENT DEFERRED SALES CHARGES – A contingent deferred sales charge (“CDSC”) is imposed on redemptions made in Class B shares. The CDSC varies depending on the number of years from time of payment for the purchase of Class B shares until the redemption of such shares. Class B shares automatically convert to Class A shares after eight years. |
CDSC as a Percentage | ||||
of Dollar Amount | ||||
Year Since Purchase | Subject to Charge | |||
First | 5.00 | % | ||
Second | 5.00 | |||
Third | 4.00 | |||
Fourth | 3.00 | |||
Fifth | 2.00 | |||
Sixth | 1.00 | |||
Seventh | — | |||
Eighth | — | |||
A CDSC of 1.00% is imposed on redemptions made in Class C shares for the first twelve months. | |
The CDSC for Class B shares and Class C shares is imposed on the value of the purchased shares or the value at the time of redemption, whichever is less. | |
For the fiscal year ended October 31, 2007, total front-end sales charges and CDSCs retained by affiliates of FAF Advisors for distributing the funds’ shares were as follows: |
Fund | Amount | |||
Equity Index Fund | $ | 155 | ||
Mid Cap Index Fund | 23 | |||
Small Cap Index Fund | 13 | |||
4 > | Investment in Common Stock of Affiliate |
As disclosed in the Schedule of Investments, Equity Index Fund owns common stock issued by U.S. Bancorp. For |
50 First American Funds 2007 Annual Report
Table of Contents
the fiscal year ended October 31, 2007, Equity Index Fund recorded a net realized gain from the sale of U.S. Bancorp common stock of $767 and $440 of dividend income from U.S. Bancorp common stock. At October 31, 2007, Equity Index Fund had an unrealized gain of $2,697 with respect to its investment in U.S. Bancorp common stock. |
5 > | Capital Share Transactions |
FAIF has 358 billion shares of $0.0001 par value capital stock authorized. Capital share transactions for the funds were as follows: |
Equity | Mid Cap | Small Cap | |||||||||||||||||||||||||||
Index Fund | Index Fund | Index Fund | |||||||||||||||||||||||||||
Year | Year | Year | Year | Year | Year | ||||||||||||||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | ||||||||||||||||||||||||
10/31/07 | 10/31/06 | 10/31/07 | 10/31/06 | 10/31/07 | 10/31/06 | ||||||||||||||||||||||||
Class A: | |||||||||||||||||||||||||||||
Shares issued | 1,499 | 1,707 | 428 | 338 | 131 | 177 | |||||||||||||||||||||||
Shares issued in lieu of cash distributions | 189 | 111 | 55 | 70 | 87 | 25 | |||||||||||||||||||||||
Shares redeemed | (3,108 | ) | (3,323 | ) | (377 | ) | (434 | ) | (281 | ) | (259 | ) | |||||||||||||||||
Total Class A transactions | (1,420 | ) | (1,505 | ) | 106 | (26 | ) | (63 | ) | (57 | ) | ||||||||||||||||||
Class B: | |||||||||||||||||||||||||||||
Shares issued | 47 | 78 | 15 | 16 | 28 | 18 | |||||||||||||||||||||||
Shares issued in lieu of cash distributions | 27 | 14 | 9 | 16 | 11 | 3 | |||||||||||||||||||||||
Shares redeemed | (668 | ) | (903 | ) | (69 | ) | (103 | ) | (40 | ) | (45 | ) | |||||||||||||||||
Total Class B transactions | (594 | ) | (811 | ) | (45 | ) | (71 | ) | (1 | ) | (24 | ) | |||||||||||||||||
Class C: | |||||||||||||||||||||||||||||
Shares issued | 66 | 62 | 64 | 139 | 29 | 84 | |||||||||||||||||||||||
Shares issued in lieu of cash distributions | 13 | 6 | 14 | 14 | 21 | 5 | |||||||||||||||||||||||
Shares redeemed | (200 | ) | (337 | ) | (43 | ) | (99 | ) | (23 | ) | (71 | ) | |||||||||||||||||
Total Class C transactions | (121 | ) | (269 | ) | 35 | 54 | 27 | 18 | |||||||||||||||||||||
Class R: | |||||||||||||||||||||||||||||
Shares issued | 160 | 87 | 151 | 283 | 40 | 18 | |||||||||||||||||||||||
Shares issued in lieu of cash distributions | 4 | 1 | 16 | — | 3 | — | |||||||||||||||||||||||
Shares redeemed | (44 | ) | (31 | ) | (72 | ) | (9 | ) | (14 | ) | (3 | ) | |||||||||||||||||
Total Class R transactions | 120 | 57 | 95 | 274 | 29 | 15 | |||||||||||||||||||||||
Class Y: | |||||||||||||||||||||||||||||
Shares issued | 11,085 | 11,626 | 3,523 | 3,363 | 1,488 | 1,699 | |||||||||||||||||||||||
Shares issued in lieu of cash distributions | 1,087 | 762 | 722 | 998 | 623 | 208 | |||||||||||||||||||||||
Shares redeemed | (27,413 | ) | (20,707 | ) | (6,374 | ) | (6,256 | ) | (3,040 | ) | (4,415 | ) | |||||||||||||||||
Total Class Y transactions | (15,241 | ) | (8,319 | ) | (2,129 | ) | (1,895 | ) | (929 | ) | (2,508 | ) | |||||||||||||||||
Net decrease in capital shares | (17,256 | ) | (10,847 | ) | (1,938 | ) | (1,664 | ) | (937 | ) | (2,556 | ) | |||||||||||||||||
Class B shares converted to Class A shares (reflected as Class A shares issued and Class B shares redeemed) during the fiscal year ended October 31, 2007 and the fiscal year ended October 31, 2006, as follows: |
Year Ended | Year Ended | |||||||
Fund | 10/31/07 | 10/31/06 | ||||||
Equity Index Fund | 397 | 373 | ||||||
Mid Cap Index Fund | 41 | 42 | ||||||
Small Cap Index Fund | 4 | 2 | ||||||
6 > | Investment Security Transactions |
During the fiscal year ended October 31, 2007, purchases of securities and proceeds from sales of securities other than temporary investments in short-term securities, were as follows: |
Fund | Purchases | Sales | ||||||
Equity Index Fund | $ | 79,808 | $ | 556,691 | ||||
Mid Cap Index Fund | 52,012 | 111,257 | ||||||
Small Cap Index Fund | 16,068 | 47,067 | ||||||
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 October 31, 2007, were as follows: |
Aggregate | Aggregate | Federal | ||||||||||||||
Gross | Gross | Income | ||||||||||||||
Fund | Appreciation | Depreciation | Net | Tax Cost | ||||||||||||
Equity Index Fund | $ | 960,899 | $ | (81,752 | ) | $ | 879,147 | $ | 1,538,668 | |||||||
Mid Cap Index Fund | 120,563 | (23,758 | ) | 96,805 | 413,011 | |||||||||||
Small Cap Index Fund | 46,539 | (9,796 | ) | 36,743 | 152,386 | |||||||||||
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 > | Redemption-in-Kind Transaction |
On November 1, 2006, the U.S. Bancorp Pension Plan redeemed $205,549 from the First American Equity Index Fund as a redemption-in-kind transaction. In this transaction, the fund distributed a proportionate amount of securities in the fund’s portfolio to the U.S. Bancorp Pension Plan. Remaining shareholders in the fund did not |
First American Funds 2007 Annual Report 51
Table of Contents
Notes to Financial Statements October 31, 2007, all dollars and shares are rounded to thousands (000)
recognize any additional capital gains from the transactions. |
9 > | New Accounting Pronouncement |
On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB Interpretation No. 48, “Accounting for Uncertainty in Income Taxes” (FIN 48). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented, and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the funds’ tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006, and is to be applied to all open tax years as of the effective date. Recent Securities and Exchange Commission guidance allows implementing FIN 48 in fund net asset value calculations as late as the funds’ last net asset value calculation in the first required financial statement reporting period. As a result, the funds will incorporate FIN 48 in their semiannual report on April 30, 2008. At this time, management is evaluating the implications of FIN 48 and its impact in the financial statements has not yet been determined. | |
In September 2006, the FASB issued Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value for financial reporting, establishes a framework for measuring fair value, and requires additional disclosure about the use of fair value measurements. FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. As of October 31, 2007, the funds do not believe the adoption of FAS 157 will impact the amounts reported in the financial statements; however, additional disclosures will be required about the inputs used to develop the measurements of fair value and the effect of certain measurements reported in the Statement of Operations for a fiscal period. |
52 First American Funds 2007 Annual Report
Table of Contents
Notice to Shareholders October 31, 2007 (unaudited)
TAX INFORMATION
The information set forth below is for each fund’s fiscal year 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 2008 on Form 1099-DIV. Please consult your tax advisor for proper treatment of this information. | |
For the fiscal year ended October 31, 2007, 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) | |||||||||
Equity Index Fund | 43 | % | 57 | % | 100 | % | ||||||
Mid Cap Index Fund | 79 | 21 | 100 | |||||||||
Small Cap Index Fund | 89 | 11 | 100 | |||||||||
a | Based on a percentage of the fund’s total distributions. |
Shareholder Notification of Federal Tax Status:
Each fund has designated the following percentages of the ordinary income distributions during the fiscal year ended October 31, 2007 as dividends qualifying for the dividends received deduction available to corporate shareholders: |
Equity Index Fund | 100.00 | % | ||
Mid Cap Index Fund | 97.63 | |||
Small Cap Index Fund | 76.15 | |||
In addition, each fund has designated the following percentages of the ordinary income distributions from net investment income during the fiscal year ended October 31, 2007 as qualified dividend income available to individual shareholders under the Jobs and Growth Tax Relief Reconciliation Act of 2003: |
Equity Index Fund | 100.00 | % | ||
Mid Cap Index Fund | 97.68 | |||
Small Cap Index Fund | 76.67 | |||
Additional Information Applicable to Foreign Shareholders Only:
The percentage of ordinary income distributions that are designated as interest-related dividends under Internal Revenue Code Section 871(k)(1)(C) for each fund were as follows: |
Fund | ||||
Equity Index Fund | 3.36 | % | ||
Mid Cap Index Fund | 9.80 | |||
Small Cap Index Fund | 7.67 | |||
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 | ||||
Equity Index Fund | 0.00 | % | ||
Mid Cap Index Fund | 7.93 | |||
Small Cap Index Fund | 35.34 | |||
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 www.sec.gov. |
First American Funds 2007 Annual Report 53
Table of Contents
Notice to Shareholders October 31, 2007 (unaudited)
FORM N-Q HOLDINGS INFORMATION
Each fund is required to file its complete schedule of portfolio holdings for the first and third quarters of each fiscal year with the Securities and Exchange Commission on Form N-Q. The funds’ Forms N-Q are available (1) without charge upon request by calling 800.677.FUND and (2) on the U.S. Securities and Exchange Commission’s website at www.sec.gov. In addition, you may review and copy the funds’ Forms N-Q at the Commission’s Public Reference Room in Washington, D.C. You may obtain information on the operation of the Public Reference Room by calling 1-800-SEC-0330. |
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, 2007, 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, 2007, the Board concluded its consideration of and approved the Agreement through June 30, 2008. | |
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 funds, (2) the investment performance of the funds, (3) the profitability of FAF Advisors related to the funds, including an analysis of FAF Advisors’ cost of providing services and comparative expense information, (4) whether economies of scale may be realized as the funds grow and whether fee levels are adjusted to enable fund investors to share in these 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 funds, including the funds’ distributor, sub-administrator, transfer agent and custodian. Finally, the Board considered FAF Advisors’ representation that the services provided by FAF Advisors under the Agreement are the type of services customarily provided by investment advisors in the fund industry. | |
The Board also considered compliance reports about FAF Advisors from the funds’ Chief Compliance Officer. | |
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 performance periods reviewed by the Board all ended on January 31, 2007. | |
Equity Index Fund. The Board noted that the objective of the fund is to provide investment results that correspond to the performance of the Standard & Poor’s 500 Composite Index and that the fund’s prospectus states the goal of attaining “at |
54 First American Funds 2007 Annual Report
Table of Contents
least 95%” correlation with the Index. The Board considered that results over the past three years on a gross-of-fees basis have a correlation to the Index of over 99%, even though, net of fees, the fund performed below its benchmark index for the one-, three-, five- and ten-year periods. The fund’s performance also was comparable to that of its performance universe for all periods, except that for the ten-year period Class A shares underperformed the performance universe. The Board concluded that, in light of the fund’s close tracking of its benchmark index and competitive performance vis-à-vis its performance universe, it would be in the interest of the fund and its shareholders to renew the Agreement. | |
Mid Cap Index Fund. The Board noted that the objective of the fund is to provide investment results that correspond to the performance of the Standard & Poor’s MidCap 400 Composite Index and that the fund’s prospectus states the goal of attaining “at least 95%” correlation with the Index. The Board considered that results over the past three years on a gross-of-fees basis have a correlation to the Index of over 99%, even though, net of fees, the fund performed below its benchmark index for the one-, three-and five-year periods. The fund’s performance was equal to or better than that of its performance universe for the three- and five-year periods while the fund underperformed its performance universe for the one-year period. The Board concluded that, in light of the fund’s close tracking of its benchmark index and competitive performance vis-à-vis its performance universe for longer periods, it would be in the interest of the fund and its shareholders to renew the Agreement. | |
Small Cap Index Fund. The Board noted that the objective of the fund is to provide investment results that correspond to the performance of the Russell 2000 Index and that the fund’s prospectus states the goal of attaining “at least 95%” correlation with the Index. The Board considered that results over the past three years on a gross-of-fees basis have a correlation to the Index of over 99%, even though, net of fees, the fund performed below its benchmark index for the one-, three- and five-year periods. The Board noted that the fund outperformed its performance universe for the one-year period while it underperformed its performance universe for the three-and five-year periods. The Board concluded that, in light of the fund’s close tracking of its benchmark index and its competitive one-year versus that of its performance universe, 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 advisors. The Board found that while the management fees for FAF Advisors’ institutional separate accounts are lower than the funds’ management fees, the funds receive additional services from FAF Advisors that separate accounts do not receive. | |
Using information provided by an independent data service, the Board also evaluated each fund’s advisory fee compared to the median advisory fee for other mutual funds similar in size, character and investment strategy, and each fund’s total expense ratio after waivers compared to the median total expense ratio, after waivers, of comparable funds. The Board considered FAF Advisors’ pricing philosophy. FAF Advisors attempts generally to maintain each fund’s total operating expenses at a level that approximates its peer group median total 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. The Board concluded that FAF Advisors’ pricing philosophy is a reasonable one and that the funds’ advisory fees and total expense ratios are reasonable in light of the services provided. | |
Further detail considered by the Board regarding the advisory fees and total expense ratios of each fund is set forth below: | |
Equity Index Fund. The Board considered that the fund’s contractual advisory fee, as well as its advisory fee and total expense ratio after waivers, are competitive with the peer group median. The Board concluded that the fund’s advisory fee and total expense ratio are reasonable. | |
Mid Cap Index Fund. The Board considered that the fund’s contractual advisory fee is equal to that of the peer group median, and that the fund’s advisory fee and the fund’s total expense ratio, after waivers, are competitive with the peer group median. The Board concluded that the fund’s advisory fee and total expense ratio are reasonable. | |
Small Cap Index Fund. The Board considered that, while the fund’s contractual advisory fee is higher than that of the peer group median, the fund’s advisory fee, after waivers, and the fund’s total expense ratio, after waivers, are lower than the peer group median. The Board concluded that the fund’s advisory fee and total expense ratio are reasonable. |
First American Funds 2007 Annual Report 55
Table of Contents
Notice to Shareholders October 31, 2007 (unaudited)
Economies of Scale in Providing Investment Advisory Services
The Board considered the extent to which each fund’s investment advisory fee reflects economies of scale for the benefit of fund shareholders. Based on information provided by FAF Advisors, the Board noted that profitability will likely increase somewhat as assets grow over time. The Board considered that, although the funds do not have advisory fee breakpoints in place, FAF Advisors has committed to waive advisory fees to the extent necessary to keep each fund’s total expenses generally in line with the median total expenses of a peer group of funds as selected by an independent data service. The Board considered FAF Advisors’ assertion that the median total expense ratio of a fund’s peer group will necessarily reflect the effect of any breakpoints in the advisory fee schedules of the funds in that group and any economies of scale which those funds realize. Therefore, by capping a fund’s total expense ratio at a level close to the median, fund shareholders will effectively receive the benefit of any breakpoints in the comparable funds’ advisory fee schedules and any such economies of scale. In light of FAF Advisors’ commitment to keep total fund expenses competitive, the Board concluded that it would be reasonable and in the best interest of each fund and its shareholders to renew the Agreement. |
Other Benefits to FAF Advisors
In evaluating the benefits that accrue to FAF Advisors through its relationship with the funds, the Board noted that FAF Advisors and certain of its affiliates serve the funds in various capacities, including as advisor, administrator, 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. | |
The Board also considered FAF Advisors’ use of the funds’ portfolio brokerage transactions to obtain research. The Board concluded, based on its own review and on representations of FAF Advisors, that FAF Advisors’ use of “soft” commission dollars was consistent with regulatory requirements. | |
After full consideration of these factors, the Board concluded that approval of the Agreement was in the best interest of each fund and its shareholders. |
56 First American Funds 2007 Annual Report
Table of Contents
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 February 2004 | First American Funds Complex: twelve registered investment companies, including sixty-two portfolios | None | |||||||
Roger A. Gibson P.O. Box 1329 Minneapolis, MN 55440-1329 (1946) | Director | Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since October 1997 | Director, Charterhouse Group, Inc., a private equity firm, since October 2005; Vice President and Chief Operating Officer, Cargo – United Airlines, from July 2001 through July 2004 | First American Funds Complex: twelve registered investment companies, including sixty-two 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 | First American Funds Complex: twelve registered investment companies, including sixty-two portfolios | None | |||||||
John P. Kayser P.O. Box 1329 Minneapolis, MN 55440-1329 (1949) | Director | Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since October 2006 | Retired; Principal from 1983 to 2004 and Chief Financial Officer and Chief Administrative Officer from 1988 to 2002, William Blair & Company, LLC | First American Funds Complex: twelve registered investment companies, including sixty-two 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 | First American Funds Complex: twelve registered investment companies, including sixty-two portfolios | None | |||||||
Richard K. Riederer P.O. Box 1329 Minneapolis, MN 55440-1329 (1944) | Director | Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since August 2001 | Owner and Chief Executive Officer, RKR Consultants, Inc. and non-profit board member since 2005; Director, President, and Chief Executive Officer, Weirton Steel through 2001 | First American Funds Complex: twelve registered investment companies, including sixty-two 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 September 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, Excensus™, LLC, a strategic demographic planning and application development firm since 2001 | First American Funds Complex: twelve registered investment companies, including sixty-two portfolios | None | |||||||
First American Funds 2007 Annual Report 57
Table of Contents
Notice to Shareholders October 31, 2007 (unaudited)
Independent Directors — concluded | ||||||||||||
Other | ||||||||||||
Position(s) | Term of Office | Number of Portfolios | Directorships | |||||||||
Name, Address, and | Held | and Length of | Principal Occupation(s) | in Fund Complex | Held by | |||||||
Year of Birth | with Funds | Time Served | During Past 5 Years | Overseen by Director | Director † | |||||||
Virginia L. Stringer P.O. Box 1329 Minneapolis, MN 55440-1329 (1944) | Chair; Director | Chair Term three years. Directors Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Chair of FAIF’s Board since September 1997; Director of FAIF since September 1987 | Governance consultant and non-profit board member; former 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 sixty-two portfolios | None | |||||||
James M. Wade P.O. Box 1329 Minneapolis, MN 55440-1329 (1943) | Director | Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since August 2001 | Owner and President, Jim Wade Homes, a homebuilding company | First American Funds Complex: twelve registered investment companies, including sixty-two 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.
58 First American Funds 2007 Annual Report
Table of Contents
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.; Chief Investment Officer of FAF Advisors, Inc., since September 2007 | |||
Jeffery M. Wilson FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1956)* | Vice President – Administration | Re-elected by the Board annually; Vice President – Administration of FAIF since March 2000 | Senior Vice President 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 October 2004 | Mutual Funds 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 | Mutual Funds Assistant Treasurer, FAF Advisors, Inc., since September 2005; prior thereto, Director, Senior Project Manager, FAF Advisors, Inc. from May 2003 to September 2005; prior thereto, 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 March 2005 | Chief Compliance Officer for First American Funds and FAF Advisors, Inc., since March 2005; prior thereto, Chief Compliance Officer, Franklin Advisors, Inc. and Chief Compliance Counsel, Franklin Templeton Investments from March 2004 to March 2005; prior thereto, Vice President, Charles Schwab & Co., Inc. | |||
Jason K. Mitchell FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1976)* | Anti-Money Laundering Officer | Re-elected by the Board annually; Anti-Money Laundering Officer of FAIF since September 2006 | Compliance Manager, FAF Advisors, Inc., since June 2006; prior thereto, Compliance Analyst, FAF Advisors, Inc. from October 2004 to June 2006; prior thereto, Senior Systems Helpdesk Analyst, Wachovia Retirement Services from November 2002 to October 2004; prior thereto, Senior Retirement Plan Specialist, PFPC, Inc. | |||
Kathleen L. Prudhomme FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1953)* | Secretary | Re-elected by the Board annually; Secretary of FAIF since December 2004; prior thereto, Assistant Secretary of FAIF since September 1998 through December 2004 | Deputy General Counsel, FAF Advisors, Inc., since November 2004; prior thereto, Partner, Dorsey & Whitney LLP, a Minneapolis-based law firm | |||
James D. Alt Dorsey & Whitney LLP 50 South Sixth Street Suite 1500, Minneapolis, MN 55402 (1951) | Assistant Secretary | Re-elected by the Board annually; Assistant Secretary of FAIF since December 2004; prior thereto, Secretary of FAIF since June 2002; Assistant Secretary of FAIF from September 1998 through June 2002 | Partner, Dorsey & Whitney LLP, a Minneapolis-based law firm | |||
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 | Counsel, FAF Advisors, Inc., since August 2004; prior thereto, Senior Counsel, Thrivent Financial for Lutherans | |||
First American Funds 2007 Annual Report 59
Table of Contents
Notice to Shareholders October 31, 2007 (unaudited)
Officers — concluded | ||||||
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 U.S. Bancorp Fund Services, LLC 615 E. Michigan Street Milwaukee, WI 53202 (1957)* | Assistant Secretary | Re-elected by the Board annually; Assistant Secretary of FAIF since June 2003 | Senior Vice President, U.S. Bancorp Fund Services, LLC | |||
Richard J. Ertel FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1967)* | Assistant Secretary | Re-elected by the Board annually; Assistant Secretary of FAIF since June 2006 and from June 2003 through August 2004 | Counsel, FAF Advisors, Inc., since May 2006; prior thereto, Counsel, Ameriprise Financial Services, Inc. from September 2004 to May 2006; prior to that, Counsel, FAF Advisors, Inc. from May 2003 to August 2004; prior to May 2003, Associate Counsel, Hartford Life and Accident Insurance Company | |||
* | Messrs. Schreier, Wilson, Gariboldi, Lui, Mitchell, 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. Mr. Arnold is an officer of U.S. Bancorp Fund Services, LLC, which is a subsidiary of U.S. Bancorp and which serves as Transfer Agent for FAIF. |
60 First American Funds 2007 Annual Report
Table of Contents
Board of Directors First American Investment Funds, Inc.
Virginia Stringer | |
Chairperson of First American Investment Funds, Inc. | |
Governance Consultant; former Owner and President of Strategic Management | |
Resources, Inc. | |
Benjamin Field III | |
Director of First American Investment Funds, Inc. | |
Retired; former Senior Financial Advisor, Senior Vice President, | |
Chief Financial Officer, and Treasurer of Bemis Company, Inc. | |
Roger Gibson | |
Director of First American Investment Funds, Inc. | |
Director of Charterhouse Group, Inc. | |
Victoria Herget | |
Director of First American Investment Funds, Inc. | |
Investment Consultant; former Managing Director of Zurich Scudder Investments | |
John Kayser | |
Director of First American Investment Funds, Inc. | |
Retired; former Principal, Chief Financial Officer, and Chief Administrative Officer of | |
William Blair & Company, LLC | |
Leonard Kedrowski | |
Director of First American Investment Funds, Inc. | |
Owner and President of Executive and Management Consulting, Inc. | |
Richard Riederer | |
Director of First American Investment Funds, Inc. | |
Owner and Chief Executive Officer of RKR Consultants, Inc. | |
Joseph Strauss | |
Director of First American Investment Funds, Inc. | |
Owner and President of Strauss Management Company | |
James Wade | |
Director of First American Investment Funds, Inc. | |
Owner and President of Jim Wade Homes | |
First American Investment Funds’ Board of Directors is comprised entirely of | |
independent directors. |
Table of Contents
![(FIRST AMERICAN FUNDS LOGO)](https://capedge.com/proxy/N-CSR/0000950137-08-000175/c21990faflogo.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 October 31, 2007. 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.
0153-07 12/2007 AR-INDEX
Table of Contents
![](https://capedge.com/proxy/N-CSR/0000950137-08-000175/c21990s4435103.gif)
Table of Contents
1 | |||||
Management Discussions and Performance Summaries | 2 | ||||
35 | |||||
43 | |||||
Real Estate Securities Fund | |||||
44 | |||||
46 | |||||
47 | |||||
48 | |||||
50 | |||||
International Funds | |||||
52 | |||||
57 | |||||
58 | |||||
59 | |||||
60 | |||||
Small Cap Funds | |||||
64 | |||||
71 | |||||
72 | |||||
74 | |||||
76 | |||||
Mid Cap Funds | |||||
84 | |||||
87 | |||||
88 | |||||
89 | |||||
90 | |||||
Large Cap Funds | |||||
94 | |||||
98 | |||||
99 | |||||
100 | |||||
102 | |||||
Balanced and Equity Income Funds | |||||
108 | |||||
117 | |||||
118 | |||||
119 | |||||
120 | |||||
124 | |||||
138 |
Mutual fund investing involves risk; principal loss is possible.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE |
Table of Contents
Message to Shareholders December 10, 2007
Dear Shareholders: | |
We invite you to take a few minutes to review the results of the fiscal year ended October 31, 2007. |
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 Chairperson of the Board First American Investment Funds, Inc. | Thomas S. Schreier, Jr. President First American Investment Funds, Inc. |
First American Funds 2007 Annual Report 1
Table of Contents
Real Estate Securities Fund
Investment Objective: to provide above-average current income and long-term capital appreciation
How did the fund perform for the fiscal year ended October 31, 2007?
The First American Real Estate Securities Fund (the “fund”), Class Y shares, returned 1.01% for the fiscal year ended October 31, 2007 (Class A shares returned 0.78% without taking the sales charge into account). By comparison, the fund’s benchmark, the MSCI U.S. REIT Index*, returned -0.29% for the same period.
What were the general economic and market conditions during the fiscal year?
Economic growth was generally below its long-term potential growth rate during the fiscal year as evidenced by the increase in the unemployment rate to 4.7% in October from 4.4% a year earlier. The subpar pace of domestic economic growth, along with significant credit market imbalances that developed in August and caused a broader tightening in financial market conditions, led the Federal Reserve to cut the Fed funds rate by 50 basis points on September 18 and another 25 basis points on October 31. Despite these rate cuts by the Fed, equity markets generally remained below the high levels reached earlier in the year, and then weakened significantly subsequent to year end. This weakness in the market corresponded with the reporting of third-quarter S&P 500 earnings results, which showed the first year-over-year decline in operating earnings since the final quarter of 2001. Expectations for fourth-quarter earnings growth were lowered significantly as well, resulting in a challenging market environment as the new fiscal year began.
What worked for the fund and why?
The fund benefited from individual stock selection. The portfolio had a bias toward growth and higher-quality companies, and continues to invest on a relative-value basis (with focus on individual stocks rather than economic or market cycles). Early in the fiscal year, an emphasis on coastal markets, which experienced better job growth and better supply/demand dynamics, proved beneficial. As the year progressed, the fund reduced its holdings in job markets with exposure to the financial services industry. The fund’s best-performing sectors were apartments, community centers, and offices.
What did not work for the fund and why?
The commercial mortgage REIT sector and real estate services sector underperformed due to negative market sentiment about the mortgage environment and slowing commercial real estate transaction volume.
What strategic moves were made by the fund and why?
The fund’s early emphasis on coastal markets was a successful strategy. The fund invests on a relative-value basis. One result of this is a fairly balanced position across the various property types. The fund was overweight in the industrial sector, given employment and gross domestic product growth and favorable supply/demand characteristics in that sector. In early 2007, the fund gained the ability to invest up to 15% of assets in non-dollar denominated real estate stocks. At the end of the fiscal year, the fund had less than 3% of assets in non-dollar denominated stocks.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Top 10 Holdings as of October 31, 20071 (% of net assets)
Simon Property Group | 7.5 | % | ||
Prologis | 5.1 | |||
Vornado Realty Trust | 4.7 | |||
Host Marriott | 4.3 | |||
Public Storage | 4.2 | |||
Boston Properties | 4.0 | |||
Marriott International, Class A | 3.9 | |||
SL Green Realty | 3.4 | |||
Duke Realty | 2.9 | |||
Macerich | 2.8 |
Sector Allocation as of October 31, 20071 (% of net assets)
Office | 17.2 | % | ||
Apartments | 14.3 | |||
Malls | 14.0 | |||
Hotels | 11.9 | |||
Industrials | 10.3 | |||
Community Centers | 9.8 | |||
Diversified | 6.2 | |||
Healthcare | 6.1 | |||
Self Storage | 4.5 | |||
Investment Companies | 2.3 | |||
International | 0.6 | |||
Net Lease | 0.4 | |||
Real Estate Service Provider | 0.3 | |||
Manufactured Homes | 0.3 | |||
Mortgage | 0.3 | |||
Student Housing | 0.1 | |||
Short-Term Investment | 0.7 | |||
Other Assets and Liabilities, Net2 | 0.7 | |||
100.0 | % |
1 | Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security. |
2 | Investments in securities typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
2 First American Funds 2007 Annual Report
Table of Contents
Annual Performance1,2
October 31, 2007 | September 30, 2007* | |||||||||||||||||||||||||||||||||||||||
Since Inception | Since Inception | |||||||||||||||||||||||||||||||||||||||
1 year | 5 years | 10 years | 2/1/2000 | 9/24/2001 | 1 year | 5 years | 10 years | 2/1/2000 | 9/24/2001 | |||||||||||||||||||||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||||||||||||||||||||||||||
Class A | (4.76 | )% | 22.92 | % | 13.31 | % | — | — | (0.42 | )% | 21.70 | % | 12.81 | % | — | — | ||||||||||||||||||||||||
Class B | (4.51 | )% | 23.21 | % | 13.11 | % | — | — | (0.12 | )% | 22.00 | % | 12.61 | % | — | — | ||||||||||||||||||||||||
Class C | (0.87 | )% | 23.40 | % | — | 19.98 | % | — | 3.67 | % | 22.19 | % | — | 19.96 | % | — | ||||||||||||||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||||||||||||||||||||||||||
Class A | 0.78 | % | 24.32 | % | 13.95 | % | — | — | 5.38 | % | 23.09 | % | 13.45 | % | — | — | ||||||||||||||||||||||||
Class B | 0.00 | % | 23.38 | % | 13.11 | % | — | — | 4.60 | % | 22.18 | % | 12.61 | % | — | — | ||||||||||||||||||||||||
Class C | 0.03 | % | 23.40 | % | — | 19.98 | % | — | 4.61 | % | 22.19 | % | — | 19.96 | % | — | ||||||||||||||||||||||||
Class R | 0.52 | % | 24.10 | % | — | — | 21.56% | 5.07 | % | 22.88 | % | — | — | 21.54 | % | |||||||||||||||||||||||||
Class Y | 1.01 | % | 24.64 | % | 14.24 | % | — | — | 5.63 | % | 23.41 | % | 13.74 | % | — | — | ||||||||||||||||||||||||
MSCI U.S. REIT Index3 | (0.29 | )% | 22.89 | % | 12.49 | % | 19.18 | % | 20.07% | 4.67 | % | 21.34 | % | 12.04 | % | 19.23 | % | 20.14 | % |
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
1 | Sector funds such as the First American Real Estate Securities Fund are more vulnerable to price fluctuation as a result of events that may affect the industry in which they focus than are funds that invest in multiple industries. Share prices of sector funds also will fluctuate with changing market conditions, as will share prices of other stock funds. Sector funds should not be treated as a core investment; rather, their role is to round out the growth portion of a well-diversified investment portfolio. |
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. | |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 5.50% for Class A shares and the contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV. | |
Investment performance reflects fee waivers that were in effect during the periods indicated. In the absence of such fee waivers, total returns would be reduced. | |
As of the most recent prospectus, the fund’s total annual operating expense ratio for Class A, Class B, Class C, Class R, and Class Y shares was 1.21%, 1.96%, 1.96%, 1.46%, and 0.96%, respectively. |
* | This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period. |
Value of $10,000 Investment1,2,4 as of October 31, 2007
Real Estate Securities Fund, Class A (NAV) | ![]() | $ | 36,914 | |||||
Real Estate Securities Fund, Class A (POP) | ![]() | $ | 34,880 | |||||
MSCI U.S. REIT Index3 | ![]() | $ | 32,438 | |||||
The chart at right illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 10/31/1997 to 10/31/2007) as compared to the MSCI U.S. REIT Index3. |
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950137-08-000175/c21990c2194801.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
3 | An unmanaged index of the most actively traded real estate investment trusts. |
4 | Performance for Class B, Class C, Class R, and Class Y shares is not presented. Performance for these classes will vary due to the different expense structures. |
First American Funds 2007 Annual Report 3
Table of Contents
International Fund
Investment Objective: long-term growth of capital
How did the fund perform for the fiscal year ended October 31, 2007?
The First American International Fund (the “fund”), Class Y shares, returned 19.23% for the fiscal year ended October 31, 2007 (Class A shares returned 18.92% without taking the sales charge into account). By comparison, the fund’s benchmark, the MSCI EAFE Index*, returned 25.43% for the same period.
What were the general economic and market conditions during the fiscal year?
Global equity markets posted significant gains in the 12 months ended October 31, 2007, but the ride was far from smooth. As the fiscal year progressed, market volatility increased. Rising commodity prices triggered inflationary concerns, which prompted a number of central banks to raise rates. A slowdown in the U.S. housing market raised questions about U.S. loan quality, which in turn triggered a credit crisis during the summer and a lowering of the U.S. discount and target rates. Despite the gyrations, however, the MSCI EAFE Index rose significantly in the fiscal year. Most sectors posted strong returns, with materials and telecommunications services leading the way. Industrials also had a strong year. The biggest laggard was healthcare, where markets continued to worry about pricing and pipelines. Regionally, aside from emerging markets, the standout performer for the year was the Pacific ex-Japan region. The region was driven by growth expectations as well as a huge surge in liquidity that saw record days of trading volumes across exchanges. Japan was the laggard, effectively posting a flat year in what was a strong global market backdrop.
What worked for the fund and why?
Stock selection, primarily in the energy sector, contributed to fund performance during the fiscal year. Shares of Companhia Vale do Rio Doce, the Brazilian diversified mineral company, contributed positively to relative returns as the market became increasingly focused on news about an early positive settlement of iron ore price negotiations. We believed that the stock was an inexpensive way to access the structurally sound iron ore market. Additionally, the continued fervor of corporate activity across the sector has supported the stock’s current discount valuation. Shares of Petroleo Brasileiro, a Brazilian oil company, rose as oil prices soared to record levels. The company also benefited from its very successful exploration program, which demonstrated its ability to extend growth beyond its current investment phase.
Mitsubishi, a Japanese trading company, had a positive impact on the fund. Japanese trading companies, in general, have done well this year on the back of continued strength in commodity prices, in which they deal extensively.
What did not work for the fund and why?
The North American business division of Wolseley, the world’s largest distributor of plumbing and heating equipment, was negatively impacted by U.S. housing woes. There were also concerns that ongoing rate hikes in the United Kingdom would be detrimental to the company, as its debt levels jumped following last year’s purchase of the DT Group. More recently, the company reported its first profit decline in six years.
Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group, two Japanese banks, detracted from performance. Japanese banks in general fared poorly, as investors sold off the sector indiscriminately due to dashed hopes of interest rate rises and mounting concerns about U.S. subprime exposure. Japanese rates were slow to rise and loan growth was lackluster, curtailing the expansion of net interest earnings.
What strategic moves were made by the fund and why?
The fund is purposely constructed to be diversified by both sector and region, compared to its benchmark. Deviations from the benchmark reflect stock selection decisions rather than tactical asset allocation decisions. The fund was positioned to focus on larger-capitalization, quality companies that were growing at a faster pace than their peers yet were still attractively priced.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
4 First American Funds 2007 Annual Report
Table of Contents
Top 10 Holdings as of October 31, 20071 (% of net assets)
Total | 3.6 | % | ||
HSBC | 3.2 | |||
Eni | 2.6 | |||
Vodafone | 2.5 | |||
BHP Billiton | 2.3 | |||
Tesco | 2.2 | |||
Standard Chartered | 2.2 | |||
Nokia Oyj | 2.1 | |||
UBS | 2.0 | |||
Axa | 2.0 |
Country Allocation as of October 31, 20071 (% of net assets)
Great Britain | 20.4 | % | ||
Japan | 18.6 | |||
France | 13.8 | |||
Switzerland | 12.0 | |||
Germany | 6.6 | |||
Italy | 4.9 | |||
Hong Kong | 4.3 | |||
Netherlands | 4.0 | |||
Brazil | 3.1 | |||
Australia | 2.6 | |||
Finland | 2.1 | |||
Spain | 1.9 | |||
Belgium | 1.8 | |||
Taiwan | 0.7 | |||
Ireland | 0.7 | |||
South Korea | 0.6 | |||
Greece | 0.5 | |||
Mexico | 0.4 | |||
Egypt | 0.2 | |||
Short-Term Investment | 0.9 | |||
Other Assets & Liabilities, Net2 | (0.1 | ) | ||
100.0 | % |
1 | Fund holdings and country allocations are subject to change at any time and are not recommendations to buy or sell any security. |
2 | Investments in securities typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
First American Funds 2007 Annual Report 5
Table of Contents
International Fund continued
Annual Performance1,2
October 31, 2007 | September 30, 2007* | |||||||||||||||||||||||||||||||
Since | Since | |||||||||||||||||||||||||||||||
Inception | Inception | |||||||||||||||||||||||||||||||
1 year | 5 years | 10 years | 9/24/2001 | 1 year | 5 years | 10 years | 9/24/2001 | |||||||||||||||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||||||||||||||||||
Class A | 12.39 | % | 17.22 | % | 7.30 | % | — | 12.90 | % | 17.51 | % | 6.28 | % | — | ||||||||||||||||||
Class B | 13.05 | % | 17.46 | % | 7.11 | % | — | 13.57 | % | 17.78 | % | 6.10 | % | — | ||||||||||||||||||
Class C | 17.09 | % | 17.67 | % | — | 12.16 | % | 17.62 | % | 17.98 | % | — | 11.74 | % | ||||||||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||||||||||||||||||
Class A | 18.92 | % | 18.57 | % | 7.91 | % | — | 19.48 | % | 18.85 | % | 6.89 | % | — | ||||||||||||||||||
Class B | 18.05 | % | 17.67 | % | 7.11 | % | — | 18.57 | % | 17.99 | % | 6.10 | % | — | ||||||||||||||||||
Class C | 18.09 | % | 17.67 | % | — | 12.16 | % | 18.62 | % | 17.98 | % | — | 11.74 | % | ||||||||||||||||||
Class R | 18.66 | % | 18.19 | % | 7.72 | % | — | 19.21 | % | 18.52 | % | 6.70 | % | — | ||||||||||||||||||
Class Y | 19.23 | % | 18.84 | % | 8.18 | % | — | 19.79 | % | 19.15 | % | 7.17 | % | — | ||||||||||||||||||
MSCI EAFE Index3 | 25.43 | % | 23.71 | % | 9.64 | % | 17.82 | % | 25.38 | % | 24.05 | % | 8.35 | % | 17.33 | % |
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
1 | International investing involves risks not typically associated with domestic investing, including risks of adverse currency fluctuations, potential political and economic instability, different accounting standards, foreign government regulations, currency exchange rates, limited liquidity, and volatile prices. |
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. | |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 5.50% for Class A shares and the contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV. | |
Investment performance reflects fee waivers that were in effect during the periods indicated. In the absence of such fee waivers, total returns would be reduced. | |
As of the most recent prospectus, the fund’s total annual operating expense ratio before waivers for Class A, Class B, Class C, Class R, and Class Y shares was 1.49%, 2.24%, 2.24%, 1.74%, and 1.24%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through June 30, 2008 so that total annual fund operating expenses for Class A, Class B, Class C, Class R, and Class Y shares do not exceed 1.49%, 2.24%, 2.24%, 1.74%, and 1.24%, respectively. These fee waivers and expense reimbursements may be terminated at any time after June 30, 2008, at the discretion of the advisor. Prior to that time, such waivers and reimbursements may not be terminated without the approval of the fund’s board of directors. |
* | This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period. |
Value of $10,000 Investment1,2,4 as of October 31, 2007
International Fund, Class A (NAV) | ![]() | $ | 21,415 | |||||
International Fund, Class A (POP) | ![]() | $ | 20,234 | |||||
MSCI EAFE Index3 | ![]() | $ | 25,093 | |||||
The chart at right illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 10/31/1997 to 10/31/2007) as compared to the MSCI EAFE Index3. |
![(INTERNATIONAL FUND LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950137-08-000175/c21990c2194802.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
Effective December 8, 2004, JPMorgan was named the fund’s subadvisor and began managing the fund’s assets. On September 24, 2001, the First American International Fund merged with Firstar International Growth Fund and Firstar International Value Fund, both subadvised by Clay Finlay Inc. Performance history prior to September 24, 2001 represents that of the Firstar International Growth Fund. |
3 | An unmanaged index of common stocks in Europe, Australasia, and the Far East. |
4 | Performance for Class B, Class C, Class R, and Class Y shares is not presented. Performance for these classes will vary due to the different expense structures. |
6 First American Funds 2007 Annual Report
Table of Contents
International Select Fund
Investment Objective: long-term growth of capital
How did the fund perform for the fiscal period from December 21, 2006 (fund inception) through October 31, 2007?
The First American International Select Fund (the “fund”), Class Y shares, returned 21.78% for the fiscal period ended October 31, 2007 (Class A shares returned 21.58% without taking the sales charge into account). By comparison, the fund’s benchmark, the MSCI AC World Index Ex. U.S.*, returned 25.26% for the same period.
What were the general economic and market conditions during the fiscal period?
Global equity markets posted significant gains in the reporting period ended October 31, 2007, but the ride was far from smooth. As the fiscal year progressed, market volatility increased. Rising commodity prices triggered inflationary concerns, which prompted a number of central banks to raise rates. A slowdown in the U.S. housing market raised questions about U.S. loan quality, which in turn triggered a credit crisis during the summer and a lowering of the U.S. discount and target rates. Despite the gyrations, however, most sectors posted strong returns, with materials and telecommunications services leading the way. Industrials also had a strong year. The biggest laggard was healthcare, where markets continued to worry about pricing and pipelines. Regionally, aside from emerging markets, the standout performer for the year was the Pacific ex-Japan region. The region was driven by growth expectations as well as a huge surge in liquidity that saw record days of trading volumes across exchanges. Japan was the laggard, effectively posting a flat year in what was a strong global market backdrop. Emerging markets remained the strongest segment of the international markets.
What worked for the fund and why?
International equities performed very strongly during the period, and this fund places a significant emphasis on emerging economies, which were the strongest group internationally.
International Select allocates fund assets to three submanagers who specialize in value, growth, and emerging international stocks. A smaller fraction of the assets not allocated to the submanagers is invested directly to adjust the country mix. Our country allocation was, overall, quite helpful, adding more than 2% to performance. Our aggressive cash management — which ensures that new investments are immediately put to work and minimizes “standby” cash – was also helpful.
What did not work for the fund and why?
The fund steered clear of Chinese stocks out of a concern for a “bubble” – i.e., share prices too high for the intrinsic value in comparison to other countries. But these stocks continued performing very strongly during the period, for an opportunity cost of 1.6% relative to the benchmark. The fund also underweighted energy and basic materials companies; this drove almost 1% of opportunity cost due to our sector mix.
What strategic moves were made by the fund and why?
During the fiscal period the “value” submanager moved to a “core” mix of stocks, and the fund now skews toward “growth” as a result.** This accords with our intermediate-term outlook, which anticipates a reversal of the dramatic outperformance that value stocks have enjoyed over the past few years.
We added almost a 6% allocation to Canadian stocks, heavily concentrated in the energy and materials sectors. These stocks, which are not part of the widely followed MSCI EAFE index, substantially corrected the portfolio underweights in energy and basic materials vs. our benchmark. Rapid world economic growth has placed many commodities in short supply, and, barring a global economic collapse, we expect the strong demand to continue.
* | An unmanaged index of common stocks representing developed and emerging markets around the world that collectively comprise most foreign stock markets. Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
** | Growth stocks typically have more volatility than value stocks, whereas value stocks tend to have slower earnings growth rates. |
First American Funds 2007 Annual Report 7
Table of Contents
International Select Fund continued
Top 10 Holdings as of October 31, 20071 (% of net assets)
State Street GA Prime Fund | 8.1 | % | ||
Vodafone Group, ADR | 1.2 | |||
Nestle | 1.2 | |||
Kookmin Bank, ADR | 1.1 | |||
Petroleo Brasileiro, ADR | 1.0 | |||
Samsung Electronics, GDR | 1.0 | |||
Diageo | 0.9 | |||
Vivendi Universal | 0.9 | |||
Unicredito Italiano | 0.9 | |||
Esprit Holdings | 0.9 |
Country Allocation as of October 31, 20071 (% of net assets)
Great Britain | 12.8 | % | ||
Japan | 12.2 | |||
France | 6.7 | |||
Switzerland | 5.7 | |||
Brazil | 5.6 | |||
Italy | 4.8 | |||
Germany | 4.4 | |||
South Korea | 4.3 | |||
India | 3.3 | |||
Netherlands | 2.8 | |||
South Africa | 2.6 | |||
Australia | 2.4 | |||
Canada | 2.2 | |||
Spain | 2.0 | |||
Taiwan | 1.9 | |||
Hong Kong | 1.6 | |||
Mexico | 1.6 | |||
Sweden | 1.6 | |||
Luxembourg | 1.3 | |||
Israel | 1.1 | |||
Norway | 1.0 | |||
Indonesia | 1.0 | |||
Egypt | 0.9 | |||
Turkey | 0.9 | |||
Denmark | 0.8 | |||
Russia | 0.8 | |||
Singapore | 0.7 | |||
Greece | 0.6 | |||
China | 0.5 | |||
Austria | 0.5 | |||
Finland | 0.4 | |||
Philippines | 0.4 | |||
Bermuda | 0.3 | |||
Portugal | 0.3 | |||
Thailand | 0.3 | |||
Malaysia | 0.2 | |||
Hungary | 0.1 | |||
Bahrain | 0.1 | |||
Short-Term Investments | 8.6 | |||
Other Assets & Liabilities, Net2 | 0.7 | |||
100.0 | % |
1 | Fund holdings and country allocations are subject to change at any time and are not recommendations to buy or sell any security. |
2 | Investments in securities typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
8 First American Funds 2007 Annual Report
Table of Contents
Annual Performance1,2 as of June 30, 2007
October 31, 2007 | September 30, 2007 | |||||||
Since | Since | |||||||
Inception | Inception | |||||||
12/21/2006 | 12/21/2006 | |||||||
Average annual return with sales charge (POP) | ||||||||
Class A | 14.91% | 9.05% | ||||||
Class B | 15.75% | 9.65% | ||||||
Class C | 19.75% | 13.65% | ||||||
Average annual return without sales charge (NAV) | ||||||||
Class A | 21.58% | 15.37% | ||||||
Class B | 20.75% | 14.65% | ||||||
Class C | 20.75% | 14.65% | ||||||
Class R | 21.27% | 15.06% | ||||||
Class Y | 21.78% | 15.57% | ||||||
MSCI AC World Index Ex. U.S.3 | 25.26% | 18.64% |
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
1 | International investing involves risks not typically associated with domestic investing, including risks of adverse currency fluctuations, potential political and economic instability, different accounting standards, foreign government regulations, currency exchange rates, limited liquidity, and volatile prices. |
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. | |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 5.50% for Class A shares and the contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV. | |
Investment performance reflects fee waivers that were in effect during the periods indicated. In the absence of such fee waivers, total returns would be reduced. | |
As of the most recent prospectus, the fund’s total annual operating expense ratio before waivers (including acquired fund fees and expenses which the fund indirectly bears) for Class A, Class B, Class C, Class R, and Class Y shares was 1.83%, 2.58%, 2.58%, 2.08%, and 1.58%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through June 30, 2008 so that total annual fund operating expenses (net of acquired fund fees and expenses) for Class A, Class B, Class C, Class R, and Class Y shares do not exceed 1.49%, 2.24%, 2.24%, 1.74%, and 1.24%, respectively. These fee waivers and expense reimbursements may be terminated at any time after June 30, 2008, at the discretion of the advisor. Prior to that time, such waivers and reimbursements may not be terminated without the approval of the fund’s board of directors. |
* | This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period. |
Value of $10,000 Investment1,2,4 as of October 31, 2007
International Select Fund, Class A (NAV) | ![]() | $ | 12,158 | |||||
International Select Fund, Class A (POP) | ![]() | $ | 11,491 | |||||
MSCI AC World Index Ex. U.S.3 | ![]() | $ | 12,526 | |||||
The chart above, illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 12/21/2006 to 10/31/2007) as compared to the MSCI AC World Index Ex. U.S.3. |
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950137-08-000175/c21990c2194814.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
3 | An unmanaged index of stocks representing developed and emerging markets around the world that collectively comprise most foreign stock markets. |
4 | Performance for Class B, Class C, Class R, and Class Y shares is not presented. Performance for these classes will vary due to the different expense structures. |
First American Funds 2007 Annual Report 9
Table of Contents
Small Cap Growth Opportunities Fund
Investment Objective: growth of capital
How did the fund perform for the fiscal year ended October 31, 2007?
The First American Small Cap Growth Opportunities Fund (the “fund”), Class Y shares, returned 13.10% for the fiscal year ended October 31, 2007 (Class A shares returned 12.81% without taking the sales charge into account). By comparison, the fund’s benchmark, the Russell 2000 Growth Index*, returned 16.73% for the same period.
What were the general economic and market conditions during the fiscal year?
Economic growth was generally below its long-term potential growth rate during the fiscal year as evidenced by the increase in the unemployment rate to 4.7% in October from 4.4% a year earlier. The subpar pace of domestic economic growth, along with significant credit market imbalances that developed in August and caused a broader tightening in financial market conditions, led the Federal Reserve to cut the Fed funds rate by 50 basis points on September 18 and another 25 basis points on October 31. Despite these rate cuts by the Fed, equity markets generally remained below the high levels reached earlier in the year, and then weakened significantly subsequent to year end. This weakness in the market corresponded with the reporting of third-quarter S&P 500 earnings results, which showed the first year-over-year decline in operating earnings since the final quarter of 2001. Expectations for fourth-quarter earnings growth were lowered significantly as well, resulting in a challenging market environment as the new fiscal year began.
What worked for the fund and why?
Technology was the most significant contributor to the fund’s performance this fiscal year on a combination of strong stock selection coupled with the continued overweight in the sector. A pair of internet-related acquisitions added to results as Microsoft purchased aQuantive, an online marketing and advertising concern, and WebEx Communications, a provider of internet teleconferencing services, was acquired by Cisco Systems. Silicon Motion Technology, a semiconductor company focused on mobile storage solutions, also experienced surging demand for its flash memory card controllers, driving earnings estimates higher during the fiscal year.
The fund’s healthcare holdings also helped performance, primarily as a result of stock selection. Illumina, a manufacturer of genetic analysis technology, was the most significant contributor because of the rollout of its next-generation gene sequencing technology. In the energy sector, Oceaneering International, a provider of underwater exploration and production equipment, was a leading positive contributor.
What did not work for the fund and why?
The main detractors from performance during the fiscal year came from consumer discretionary stocks, where the fund’s overweight position and stock selection among specialty retailers negatively impacted returns. Poorly performing specialty retailers held during the fiscal year included New York & Company, Christopher & Banks, Citi Trends, and Children’s Place Retail Stores. Stock selection in the industrial sector, particularly in the commercial services area, had a negative effect. Wesco International, an electrical products distributor, and Mobile Mini, a lessor of portable storage units, were notable detractors from performance. The case was similar in the consumer staples sector, where the fund’s relative performance was hampered largely by one holding, The Pantry, Inc., an operator of convenience stores in the southeastern United States. Additionally, the fund’s lack of exposure to the materials and utilities sectors, the two best performing sectors of the index, hurt relative results.
What strategic moves were made by the fund and why?
Given the economic outlook that suggests the need for caution, we pared down our holdings among specialty retailers and restaurants to become more evenly weighted with the Russell 2000 Growth Index. We are monitoring the consumer space closely to assess the impact of recent Federal Reserve rate cuts in the event that monetary policy results in stronger economic growth as the year unfolds. Industrial holdings have been reduced to an underweight position and are more concentrated on stocks that stand to benefit from continued international growth. We remain overweight in the technology sector and are seeking to increase the fund’s weight in the healthcare sector given its more defensive nature. Our investment strategy continues to be driven by our focus on long-term economic trends as a means to identify investment opportunities in companies with growth characteristics and reasonable valuations.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
10 First American Funds 2007 Annual Report
Table of Contents
Top 10 Holdings as of October 31, 20071 (% of net assets)
First American Prime Obligations Fund, Class Z | 4.1% | |||
Polycom | 2.8 | |||
Ixia | 2.1 | |||
Emulex | 2.0 | |||
Quest Software | 2.0 | |||
Harmonic | 1.8 | |||
Einstein Noah Restaurant Group | 1.7 | |||
DRS Technologies | 1.7 | |||
Silicon Motion Technology, ADR | 1.7 | |||
BE Aerospace | 1.7 |
Sector Allocation as of October 31, 20071 (% of net assets)
Information Technology | 30.8 | % | ||
Healthcare | 20.6 | |||
Industrials | 16.5 | |||
Consumer Discretionary | 14.8 | |||
Financials | 7.4 | |||
Energy | 6.5 | |||
Consumer Staples | 0.9 | |||
Short-Term Investment | 4.1 | |||
Other Assets & Liabilities, Net2 | (1.6 | ) | ||
100.0 | % |
1 | Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security. |
2 | Investments in securities typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
First American Funds 2007 Annual Report 11
Table of Contents
Small Cap Growth Opportunities Fund continued
Annual Performance1,2
October 31, 2007 | September 30, 2007* | |||||||||||||||||||||||||||||||||||||||||||||||
Since Inception | Since Inception | |||||||||||||||||||||||||||||||||||||||||||||||
1 year | 5 years | 10 years | 3/1/1999 | 12/11/2000 | 9/24/2001 | 1 year | 5 years | 10 years | 3/1/1999 | 12/11/2000 | 9/24/2001 | |||||||||||||||||||||||||||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||||||||||||||||||||||||||||||||||
Class A | 6.62 | % | 15.56 | % | 13.91 | % | — | — | — | 9.66 | % | 16.24 | % | 13.33 | % | — | — | — | ||||||||||||||||||||||||||||||
Class B | 7.03 | % | 15.78 | % | — | 17.98 | % | — | — | 10.20 | % | 16.48 | % | — | 17.67 | % | — | — | ||||||||||||||||||||||||||||||
Class C | 10.96 | % | 16.00 | % | — | — | — | 11.03 | % | 14.21 | % | 16.69 | % | — | — | — | 10.52 | % | ||||||||||||||||||||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||||||||||||||||||||||||||||||||||
Class A | 12.81 | % | 16.87 | % | 14.56 | % | — | — | — | 16.06 | % | 17.57 | % | 13.98 | % | — | — | — | ||||||||||||||||||||||||||||||
Class B | 12.03 | % | 16.00 | % | — | 17.98 | % | — | — | 15.20 | % | 16.70 | % | — | 17.67 | % | — | — | ||||||||||||||||||||||||||||||
Class C | 11.96 | % | 16.00 | % | — | — | — | 11.03 | % | 15.21 | % | 16.69 | % | — | — | — | 10.52 | % | ||||||||||||||||||||||||||||||
Class R | 12.56 | % | 16.72 | % | — | — | 7.12 | % | — | 15.80 | % | 17.42 | % | — | — | 6.63 | % | — | ||||||||||||||||||||||||||||||
Class Y | 13.10 | % | 17.14 | % | 14.85 | % | — | — | — | 16.39 | % | 17.86 | % | 14.27 | % | — | — | — | ||||||||||||||||||||||||||||||
Russell 2000 Growth Index3 | 16.73 | % | 18.57 | % | 4.75 | % | 6.19 | % | 4.58 | % | 12.53 | % | 18.94 | % | 18.70 | % | 3.65 | % | 5.71 | % | 3.97 | % | 11.90 | % |
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
1 | Stocks of small-capitalization companies involve substantial risk. These stocks historically have experienced greater price volatility than stocks of larger companies, and they may be expected to do so in the future. |
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. | |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 5.50% for Class A shares and the contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV. | |
Investment performance reflects fee waivers that were in effect during the periods indicated. In the absence of such fee waivers, total returns would be reduced. | |
As of the most recent prospectus, the fund’s total annual operating expense ratio before waivers (including acquired fund fees and expenses, which the fund indirectly bears) for Class A, Class B, Class C, Class R, and Class Y shares was 1.58%, 2.33%, 2.33%, 1.83%, and 1.33%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through June 30, 2008 so that total annual fund operating expenses (net of acquired fund fees and expenses) for Class A, Class B, Class C, Class R, and Class Y shares do not exceed 1.47%, 2.22%, 2.22%, 1.72%, and 1.22%, respectively. These fee waivers and expense reimbursements may be terminated at any time after June 30, 2008, at the discretion of the advisor. Prior to that time, such waivers and reimbursements may not be terminated without the approval of the fund’s board of directors. |
* | This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period. |
Value of $10,000 Investment1,2,4 as of October 31, 2007
Small Cap Growth Opportunities Fund, Class A (NAV) | ![]() | $ | 38,942 | |||||
Small Cap Growth Opportunities Fund, Class A (POP) | ![]() | $ | 36,794 | |||||
Russell 2000 Growth Index3 | ![]() | $ | 15,912 | |||||
The chart at right illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 10/31/1997 to 10/31/2007) as compared to the Russell 2000 Growth Index3. |
![(SMALL CAP GROWTH OPPORTUNITIES FUND)](https://capedge.com/proxy/N-CSR/0000950137-08-000175/c21990c2194803.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
On December 12, 2002 the fund changed its main investment strategy such that it was permitted to invest in securities of companies with market capitalizations within the range of companies in the Russell 2000 index. Previously, the fund invested primarily in companies with market capitalizations of below $500 million at the time of purchase. | |
On September 24, 2001, the First American Small Cap Growth Opportunities Fund became the successor by merger to the Firstar MicroCap Fund, a series of Firstar Funds, Inc. Prior to the merger, the First American Fund had no assets or liabilities. Performance presented prior to September 24, 2001, represents that of the Firstar MicroCap Fund. | |
The First American Small Cap Growth Opportunities Fund’s 1999 returns were higher due in substantial part to its strategy of investing in IPOs in a period favorable for IPO investing. Of course, such favorable returns involve accepting the risk of volatility, and there is no assurance that the fund’s future investment in IPOs will have the same effect on performance as it did in 1999. |
3 | An unmanaged index that measures the performance of those Russell 2000 Index (a small-cap index) with higher price-to-book ratios and higher forecasted growth values. |
4 | Performance for Class B, Class C, Class R, and Class Y shares is not presented. Performance for these classes will vary due to the different expense structures. |
12 First American Funds 2007 Annual Report
Table of Contents
Small Cap Select Fund
Investment Objective: capital appreciation
How did the fund perform for the fiscal year ended October 31, 2007?
The First American Small Cap Select Fund (the “fund”), Class Y shares, returned 7.58% for the fiscal year ended October 31, 2007 (Class A shares returned 7.35% without taking the sales charge into account). By comparison, the fund’s benchmark, the Russell 2000 Index*, returned 9.27% for the same period.
What were the general economic and market conditions during the fiscal year?
Economic growth was generally below its long-term potential growth rate during the fiscal year as evidenced by the increase in the unemployment rate to 4.7% in October from 4.4% a year earlier. The subpar pace of domestic economic growth, along with significant credit market imbalances that developed in August and caused a broader tightening in financial market conditions, led the Federal Reserve to cut the Fed funds rate by 50 basis points on September 18 and another 25 basis points on October 31. Despite these rate cuts by the Fed, equity markets generally remained below the high levels reached earlier in the year, and then weakened significantly subsequent to year end. This weakness in the market corresponded with the reporting of third-quarter S&P 500 earnings results, which showed the first year-over-year decline in operating earnings since the final quarter of 2001. Expectations for fourth-quarter earnings growth were lowered significantly as well, resulting in a challenging market environment as the new fiscal year began.
What worked for the fund and why?
Good stock selection in the financials, materials, and technology sectors provided positive performance relative to our benchmark in fiscal 2007. A significant underweight in the financials sector also helped performance at a time when the sector was negatively affected by the subprime mortgage crisis. Much of 2007 was characterized by a robust environment for mergers and acquisitions. We benefited from this environment, with some of our holdings being acquired and/or taken private, including Investors Financial and First Republic Bank in the financials sector as well as aQuantive (digital marketing) in technology. Also in technology, analog semiconductor company Advanced Analogic Technologies, a leader in power management, has seen a substantial increase in its business due to higher demand for low-end cell phones in emerging markets. Pediatrix Medical Group, the nation’s largest neonatal intensive care provider, benefited from strong pricing and good volume growth throughout the year. Helix Energy Solutions Group, an oil and gas service company leveraged to deep-water offshore oil markets, continued to see its business improve as more exploration and production took place in that area. AMETEK, an industrial manufacturer, experienced solid end-market growth and strong operating performance improvement. Terra Industries, a fertilizer company, benefited from improved fertilizer pricing due to a strong agricultural market, and Schnitzer Steel Industries was buoyed up by strong export scrap steel pricing due to continued strength in global industrial markets.
What did not work for the fund and why?
Poor stock selection in the consumer and industrial sectors, as well as an underweight in the materials sector, hurt fund performance this year. In the consumer sector, Children’s Place Retail Stores and Christopher & Banks ran into a tough consumer environment, coupled with fashion miscues and poor inventory management, which ultimately led to much worse operating performance. P.F. Chang’s China Bistro, a restaurant company, also suffered from the poor environment and ultimately reined in its growth outlook, which led to a contraction in its valuation. Lastly, Nautilus, a fitness company, saw its sales decrease significantly and its operating profitability diminish substantially. In industrials, People Support, a call center outsourcer, saw its rate of growth outstrip its infrastructure, requiring a substantial increase in spending, which led to much lower profitability. Elsewhere, WESCO International and NCI Building Systems, both operating in the commercial construction market, experienced sluggish revenue growth due to a slowing market. Edge Petroleum, an oil and gas exploration company, suffered an unexpected drilling failure in one of its most prolific fields, which has temporarily depressed both the company’s production and reserve estimates. Lastly, Phototronics, a semiconductor equipment company, is in the midst of a capital expansion plan. The stock has been under pressure as the transition has taken longer to complete than originally expected.
What strategic moves were made by the fund and why?
Toward the end of the fiscal year, we eliminated a number of consumer stocks (primarily retail and restaurants) that had been underperforming, and we are now seeing some improvement in that sector. We did the same with some of our holdings in the industrials sector (primarily commercial construction). Sector allocations and other portfolio characteristics remained within prescribed ranges to allow stock selection to drive performance; however, the portfolio has had an overweight in technology, where we found positive trends in both operating expenses and stock price, and an
First American Funds 2007 Annual Report 13
Table of Contents
Small Cap Select Fund continued
underweight in financials, where we saw exactly the opposite. We have been, to a lesser degree, overweight in the consumer discretionary sector (chiefly because of attractive valuations) as well as in healthcare and energy. We also maintained a modest underweight in industrials and materials (again because of the valuations) as well as consumer staples, telecommunication services, and utilities.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Top 10 Holdings as of October 31, 20071 (% of net assets)
First American Prime Obligations Fund, Class Z | 3.2 | % | ||
Helix Energy Solutions Group | 2.3 | |||
Emulex | 2.3 | |||
SonoSite | 2.1 | |||
K-V Pharmaceutical, Class A | 1.9 | |||
WMS Industries | 1.8 | |||
Cullen/ Frost Bankers | 1.7 | |||
Hain Celestial Group | 1.6 | |||
Comstock Resources | 1.6 | |||
Pediatrix Medical Group | 1.6 |
Sector Allocation as of October 31, 20071 (% of net assets)
Information Technology | 22.7 | % | ||
Consumer Discretionary | 16.3 | |||
Financials | 16.0 | |||
Healthcare | 14.0 | |||
Industrials | 12.9 | |||
Energy | 7.6 | |||
Materials | 3.7 | |||
Consumer Staples | 2.2 | |||
Telecommunication Services | 0.7 | |||
Utilities | 0.4 | |||
Short-Term Investment | 3.2 | |||
Other Assets & Liabilities, Net2 | 0.3 | |||
100.0 | % |
1 | Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security. |
2 | Investments in securities typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
14 First American Funds 2007 Annual Report
Table of Contents
Annual Performance1,2
October 31, 2007 | September 30, 2007* | |||||||||||||||||||||||||||||||
Since | Since | |||||||||||||||||||||||||||||||
Inception | Inception | |||||||||||||||||||||||||||||||
1 year | 5 years | 10 years | 9/24/2001 | 1 year | 5 years | 10 years | 9/24/2001 | |||||||||||||||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||||||||||||||||||
Class A | 1.45 | % | 16.72 | % | 9.54 | % | — | 1.96 | % | 17.56 | % | 8.66 | % | — | ||||||||||||||||||
Class B | 2.02 | % | 16.96 | % | 9.38 | % | — | 2.59 | % | 17.80 | % | 8.50 | % | — | ||||||||||||||||||
Class C | 5.55 | % | 17.17 | % | — | 14.53 | % | 6.17 | % | 17.99 | % | — | 14.14 | % | ||||||||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||||||||||||||||||
Class A | 7.35 | % | 18.06 | % | 10.17 | % | — | 7.91 | % | 18.89 | % | 9.28 | % | — | ||||||||||||||||||
Class B | 6.51 | % | 17.17 | % | 9.38 | % | — | 7.10 | % | 18.01 | % | 8.50 | % | — | ||||||||||||||||||
Class C | 6.46 | % | 17.17 | % | — | 14.53 | % | 7.09 | % | 17.99 | % | — | 14.14 | % | ||||||||||||||||||
Class R | 6.99 | % | 17.87 | % | 10.11 | % | — | 7.61 | % | 18.70 | % | 9.22 | % | — | ||||||||||||||||||
Class Y | 7.58 | % | 18.37 | % | 10.46 | % | — | 8.13 | % | 19.17 | % | 9.57 | % | — | ||||||||||||||||||
Russell 2000 Index3 | 9.27 | % | 18.67 | % | 8.01 | % | 14.35 | % | 12.34 | % | 18.75 | % | 7.22 | % | 14.03 | % |
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
1 | Stocks of small-capitalization companies involve substantial risk. These stocks historically have experienced greater price volatility than stocks of larger companies, and they may be expected to do so in the future. |
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. | |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 5.50% for Class A shares and the contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV. | |
Investment performance reflects fee waivers that were in effect during the periods indicated. In the absence of such fee waivers, total returns would be reduced. | |
As of the most recent prospectus, the fund’s total annual operating expense ratio (including acquired fund fees and expenses, which the fund indirectly bears) for Class A, Class B, Class C, Class R, and Class Y shares was 1.23%, 1.98%, 1.98%, 1.48%, and 0.98%, respectively. |
* | This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period. |
Value of $10,000 Investment1,2,4 as of October 31, 2007
Small Cap Select Fund, Class A (NAV) | ![]() | $ | 26,338 | |||||
Small Cap Select Fund, Class A (POP) | ![]() | $ | 24,884 | |||||
Russell 2000 Index3 | ![]() | $ | 21,604 | |||||
The chart at right illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 10/31/1997 to 10/31/2007) as compared to the Russell 2000 Index3. |
![(SMALL CAP SELECT FUND LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950137-08-000175/c21990c2194804.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
On September 24, 2001, the First American Small Cap Select Fund became the successor by merger to the Firstar SmallCap Core Equity Fund, a series of Firstar Funds, Inc. Prior to the merger, the First American Fund had no assets or liabilities. Performance presented prior to September 24, 2001, represents that of the Firstar SmallCap Core Equity Fund. The Firstar SmallCap Core Equity Fund was organized on November 27, 2000, and prior to that, was a separate series of Mercantile Funds, Inc. |
3 | An unmanaged small-cap index that measures the performance of the 2,000 smallest companies in the Russell 3000 Index. |
4 | Performance for Class B, Class C, Class R, and Class Y shares is not presented. Performance for these classes will vary due to the different expense structures. |
First American Funds 2007 Annual Report 15
Table of Contents
Small Cap Value Fund
Investment Objective: capital appreciation
How did the fund perform for the fiscal year ended October 31, 2007?
The First American Small Cap Value Fund (the “fund”), Class Y shares, returned 4.45% for the fiscal year ended October 31, 2007 (Class A shares returned 4.18% without taking the sales charge into account). By comparison, the fund’s benchmark, the Russell 2000 Value Index*, returned 2.05% for the same period.
What were the general economic and market conditions during the fiscal year?
Economic growth was generally below its long-term potential growth rate during the fiscal year as evidenced by the increase in the unemployment rate to 4.7% in October from 4.4% a year earlier. The subpar pace of domestic economic growth, along with significant credit market imbalances that developed in August and caused a broader tightening in financial market conditions, led the Federal Reserve to cut the Fed funds rate by 50 basis points on September 18 and another 25 basis points on October 31. Despite these rate cuts by the Fed, equity markets generally remained below the high levels reached earlier in the year, and then weakened significantly subsequent to year end. This weakness in the market corresponded with the reporting of third-quarter S&P 500 earnings results, which showed the first year-over-year decline in operating earnings since the final quarter of 2001. Expectations for fourth-quarter earnings growth were lowered significantly as well, resulting in a challenging market environment as the new fiscal year began.
What worked for the fund and why?
The fund’s positive relative performance was primarily driven by stock selection. Our overweight positions in healthcare and industrials were key given good earnings trends from the companies in this sector and our focus on quality stocks. In addition, our continued underweight in financials (especially real estate investment trusts, banks, and thrifts) at a time when the sector suffered from the repercussions of the subprime mortgage crisis, aided our results. We benefited from several acquisitions that were made at attractive valuation premiums: Ohio Casualty (insurance), Armor Holdings (security products), Alteris (therapeutics and vaccines), Alabama National and First Republic (banking), Andrew Corporation (communications systems), and Metal Management (recycling). Other strong performers included Aeropostale (teens’ apparel), Res-Care (training and in-home services to special needs community), Pericom Semiconductor, and Terra Industries (fertilizer industry).
What did not work for the fund and why?
Our underweight in the materials sector was one of the few weak points in the fund during a time when the sector benefited substantially from rising commodity prices. In addition, we lacked exposure to the telecommunication services sector, which was relatively strong during the fiscal year. Within the financials sector, concerns regarding Midwest housing had a negative impact on Capitol Bancorp, while subprime credit crisis weakened Newcastle Investment, a real estate investment and finance company.
What strategic moves were made by the fund and why?
We continued to focus on investing in quality companies that are trading at attractive valuation metrics with identifiable catalysts to narrow the gap between intrinsic and market value. We also continued to build our portfolio from the bottom up, focusing more on individual stock selection than sector allocations. As a result, we retained overweights in healthcare, energy, technology, and industrials (tilted towards aerospace/engineering and construction companies). We remained underweight in the weaker consumer discretionary and financial sectors.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Top 10 Holdings as of October 31, 20071 (% of net assets)
Emulex | 1.8 | % | ||
Progress Software | 1.7 | |||
Regal-Beloit | 1.6 | |||
Swift Energy | 1.6 | |||
Sterling Bancshares | 1.5 | |||
Waddell & Reed Financial, Class A | 1.5 | |||
United Online | 1.5 | |||
FPIC Insurance Group | 1.4 | |||
Sciele Pharma | 1.4 | |||
Elizabeth Arden | 1.4 |
Sector Allocation as of October 31, 20071 (% of net assets)
Financials | 28.1 | % | ||
Information Technology | 15.3 | |||
Industrials | 13.9 | |||
Consumer Discretionary | 12.8 | |||
Healthcare | 7.8 | |||
Energy | 6.7 | |||
Materials | 6.5 | |||
Utilities | 4.8 | |||
Consumer Staples | 3.4 | |||
Short-Term Investment | 0.4 | |||
Other Assets & Liabilities, Net2 | 0.3 | |||
100.0 | % |
1 | Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security. |
2 | Investments in securities typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
16 First American Funds 2007 Annual Report
Table of Contents
Annual Performance1,2
October 31, 2007 | September 30, 2007* | |||||||||||||||||||||||||||||||||||||||||||||||
Since Inception | Since Inception | |||||||||||||||||||||||||||||||||||||||||||||||
1 year | 5 years | 10 years | 11/24/1997 | 2/1/1999 | 9/24/2001 | 1 year | 5 years | 10 years | 11/24/1997 | 2/1/1999 | 9/24/2001 | |||||||||||||||||||||||||||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||||||||||||||||||||||||||||||||||
Class A | (1.58 | )% | 16.14 | % | 7.56 | % | — | — | — | 0.97 | % | 15.56 | % | 6.80 | % | — | — | — | ||||||||||||||||||||||||||||||
Class B | (0.87 | )% | 16.35 | % | — | 7.68 | % | — | — | 1.57 | % | 15.76 | % | — | 7.51 | % | — | — | ||||||||||||||||||||||||||||||
Class C | 2.56 | % | 16.58 | % | — | — | 10.71 | % | — | 5.13 | % | 15.99 | % | — | — | 10.55 | % | — | ||||||||||||||||||||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||||||||||||||||||||||||||||||||||
Class A | 4.18 | % | 17.45 | % | 8.17 | % | — | — | — | 6.82 | % | 16.88 | % | 7.40 | % | — | — | — | ||||||||||||||||||||||||||||||
Class B | 3.41 | % | 16.56 | % | — | 7.68 | % | — | — | 5.96 | % | 15.99 | % | — | 7.51 | % | — | — | ||||||||||||||||||||||||||||||
Class C | 3.42 | % | 16.58 | % | — | — | 10.71 | % | — | 6.01 | % | 15.99 | % | — | — | 10.55 | % | — | ||||||||||||||||||||||||||||||
Class R | 3.96 | % | 17.27 | % | — | — | — | 14.26% | 6.55 | % | 16.71 | % | — | — | — | 14.09 | % | |||||||||||||||||||||||||||||||
Class Y | 4.45 | % | 17.73 | % | 8.43 | % | — | — | — | 7.04 | % | 17.15 | % | 7.67 | % | — | — | — | ||||||||||||||||||||||||||||||
Russell 2000 Value Index3 | 2.05 | % | 18.60 | % | 10.49 | % | 10.53 | % | 12.74 | % | 15.69% | 6.09 | % | 18.70 | % | 10.07 | % | 10.50 | % | 12.73 | % | 15.72 | % |
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
1 | Stocks of small-capitalization companies involve substantial risk. These stocks historically have experienced greater price volatility than stocks of larger companies, and they may be expected to do so in the future. |
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. | |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 5.50% for Class A shares and the contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV. | |
Investment performance reflects fee waivers that were in effect during the periods indicated. In the absence of such fee waivers, total returns would be reduced. | |
As of the most recent prospectus, the fund’s total annual operating expense ratio for Class A, Class B, Class C, Class R, and Class Y shares was 1.26%, 2.01%, 2.01%, 1.51%, and 1.01%, respectively. |
* | This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period. |
Value of $10,000 Investment1,2,4 as of October 31, 2007
Small Cap Value Fund, Class A (NAV) | ![]() | $ | 21,929 | |||||
Small Cap Value Fund, Class A (POP) | ![]() | $ | 20,718 | |||||
Russell 2000 Value Index3 | ![]() | $ | 27,127 | |||||
The chart at right illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 10/31/1997 to 10/31/2007) as compared to the Russell 2000 Value Index3. |
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950137-08-000175/c21990c2194805.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
3 | An unmanaged index that measures the performance of those companies in the Russell 2000 Index (a small-cap index) with lower price-to-book ratios and lower forecasted growth values. |
4 | Performance for Class B, Class C, Class R, and Class Y shares is not presented. Performance for these classes will vary due to the different expense structures. |
First American Funds 2007 Annual Report 17
Table of Contents
Small-Mid Cap Core Fund
Investment Objective: long-term growth of capital
How did the fund perform for the fiscal year ended October 31, 2007?
The First American Small-Mid Cap Core Fund (the “fund”), Class Y shares, returned 11.62% for the fiscal year ended October 31, 2007 (Class A shares returned 11.18% without taking the sales charge into account). By comparison, the fund’s benchmark during the fiscal year, the Russell 2500 Index*, returned 12.71% for the same period.
What were the general economic and market conditions during the fiscal year?
Economic growth was generally below its long-term potential growth rate during the fiscal year as evidenced by the increase in the unemployment rate to 4.7% in October from 4.4% a year earlier. The subpar pace of domestic economic growth, along with significant credit market imbalances that developed in August and caused a broader tightening in financial market conditions, led the Federal Reserve to cut the Fed funds rate by 50 basis points on September 18 and another 25 basis points on October 31. Despite these rate cuts by the Fed, equity markets generally remained below the high levels reached earlier in the year, and then weakened significantly subsequent to year end. This weakness in the market corresponded with the reporting of third-quarter S&P 500 earnings results, which showed the first year-over-year decline in operating earnings since the final quarter of 2001. Expectations for fourth-quarter earnings growth were lowered significantly as well, resulting in a challenging market environment as the new fiscal year began.
What worked for the fund and why?
Effective sector, market, and style positioning, as well as individual stock selection, drove fund performance during the fiscal year. Our selections in the healthcare sector proved particularly successful, with Intuitive Surgical and ArthroCare benefiting from high demand and pricing power of their advanced medical devices. In basic materials, Terra Industries (a fertilizer company) and Owens-Illinois (glass containers and plastics packaging) enjoyed continued strong performance. An overweight in capital goods also added value; a standout in this space was tactical wheeled vehicles manufacturer Armor Holdings, which was purchased by BAE Systems. In energy, Cameron International, an oil service company, owed its positive performance to strong global growth and demand for oil. The fund also benefited from a significant underweight in positions with lower market capitalization.
What did not work for the fund and why?
The largest detractor from performance was NutriSystem Inc., a provider of weight management and fitness products, whose performance suffered as a new “hot” weight loss drug came to market, and, as a result, the cost of attracting new customers was higher than the company had anticipated. Although an appropriate underweight in financials helped performance, our holding of PMI Group was down significantly as subprime concerns roiled the market.
What strategic moves were made by the fund and why?
We reduced our exposure to housing and consumer-sensitive stocks while increasing our positions in three stocks we feel confident about: Owens-Illinois, Republic Services (a waste management company), and Intuitive Surgical. During the fiscal year, we tilted slightly toward growth and moved slightly up the market capitalization weightings to take advantage of current market conditions and our firm’s view of appropriate allocations. The fund’s sector exposures remained largely unchanged.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Top 10 Holdings as of October 31, 20071 (% of net assets)
Republic Services | 3.1 | % | ||
Owens-Illinois | 3.0 | |||
Intuitive Surgical | 2.9 | |||
WMS Industries | 2.8 | |||
Terra Industries | 2.6 | |||
Emulex | 2.6 | |||
F5 Networks | 2.4 | |||
Everest Re Group | 2.3 | |||
Amphenol, Class A | 2.2 | |||
W.R. Berkley | 2.1 |
Sector Allocation as of October 31, 20071 (% of net assets)
Information Technology | 19.2 | % | ||
Healthcare | 15.0 | |||
Consumer Discretionary | 14.9 | |||
Financials | 14.9 | |||
Industrials | 13.6 | |||
Materials | 9.5 | |||
Energy | 7.5 | |||
Utilities | 2.0 | |||
Consumer Staples | 1.8 | |||
Telecommunication Services | 1.5 | |||
Short-Term Investment | 0.2 | |||
Other Assets & Liabilities, Net2 | (0.1 | ) | ||
100.0 | % |
1 | Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security. |
2 | Investments in securities typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
18 First American Funds 2007 Annual Report
Table of Contents
Annual Performance1,2
October 31, 2007 | September 30, 2007* | |||||||||||||||||||||||||||||||
Since Inception | Since Inception | |||||||||||||||||||||||||||||||
1 year | 5 years | 10 years | 2/1/2000 | 1 year | 5 years | 10 years | 2/1/2000 | |||||||||||||||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||||||||||||||||||
Class A | 5.03 | % | 14.66 | % | (0.16 | )% | — | 8.25 | % | 18.26 | % | (1.12 | )% | — | ||||||||||||||||||
Class B | 5.43 | % | 14.87 | % | (0.34 | )% | — | 8.63 | % | 18.48 | % | (1.29 | )% | — | ||||||||||||||||||
Class C | 9.45 | % | 15.15 | % | — | (16.38 | )% | 12.65 | % | 18.73 | % | — | (16.68 | )% | ||||||||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||||||||||||||||||
Class A | 11.18 | % | 15.98 | % | 0.40 | % | — | 14.50 | % | 19.60 | % | (0.55 | )% | — | ||||||||||||||||||
Class B | 10.43 | % | 15.10 | % | (0.34 | )% | — | 13.63 | % | 18.68 | % | (1.29 | )% | — | ||||||||||||||||||
Class C | 10.45 | % | 15.15 | % | — | (16.38 | )% | 13.65 | % | 18.73 | % | — | (16.68 | )% | ||||||||||||||||||
Class Y | 11.62 | % | 16.30 | % | 0.69 | % | — | 14.74 | % | 19.89 | % | (0.28 | )% | — | ||||||||||||||||||
Russell 2500 Index3 | 12.71 | % | 19.39 | % | 10.02 | % | 9.71 | % | 15.17 | % | 19.55 | % | 9.24 | % | 9.46 | % |
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
1 | Effective October 3, 2005, the investment strategy of the fund, formerly called the Technology Fund, changed from investing primarily in technology stocks to investing primarily in common stocks of small- and mid-capitalization companies. As a result, performance for the periods prior to October 3, 2005 reflect the performance of a materially different investment portfolio. |
Stocks of small- and mid-capitalization companies involve substantial risk and may be subject to increased volatility and more price fluctuation than large-capitalization companies. | |
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. | |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 5.50% for Class A shares and the contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV. | |
Investment performance reflects fee waivers that are in effect during the periods indicated. In the absence of such fee waivers, total returns would be reduced. | |
As of the most recent prospectus, the fund’s total annual operating expense ratio before waivers for Class A, Class B, Class C, and Class Y shares was 1.52%, 2.27%, 2.27%, and 1.27%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through June 30, 2008 so that total annual fund operating expenses for Class A, Class B, Class C, and Class Y shares do not exceed 1.41%, 2.16%, 2.16%, and 1.16%, respectively. These fee waivers and expense reimbursements may be terminated at any time after June 30, 2008, at the discretion of the advisor. Prior to that time, such waivers and reimbursements may not be terminated without the approval of the fund’s board of directors. |
* | This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period. |
Value of $10,000 Investment1,2,4 as of October 31, 2007
Small-Mid Cap Core Fund, Class A (NAV) | ![]() | $ | 10,411 | |||||
Small-Mid Cap Core Fund, Class A (POP) | ![]() | $ | 9,840 | |||||
Russell 2500 Index3 | ![]() | $ | 25,995 | |||||
The chart at right illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 10/31/1997 to 10/31/2007) as compared to the Russell 2500 Index3. |
![(SMALL-MID CAP CORE FUND LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950137-08-000175/c21990c2194806.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. 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 Small-Mid Cap Core Fund’s 1999 returns were higher due in part to its strategy of investing in IPOs and technology-related stocks in a period favorable for IPO and technology stock investing. Of course, such favorable returns involve accepting the risk of volatility, and there is no assurance that the fund’s future investment in IPOs and technology stocks will have the same effect on performance as it did in 1999. |
3 | An unmanaged small- and mid-cap index that measures the performance of the 2,500 smallest companies in the Russell 3000 Index. |
4 | Performance for Class B, Class C, and Class Y shares is not presented. Performance for these classes will vary due to the different expense structures. |
First American Funds 2007 Annual Report 19
Table of Contents
Mid Cap Growth Opportunities Fund
Investment Objective: capital appreciation
How did the fund perform for the fiscal year ended October 31, 2007?
The First American Mid Cap Growth Opportunities Fund (the “fund”), Class Y shares, returned 23.68% for the fiscal year ended October 31, 2007 (Class A shares returned 23.36% without taking the sales charge into account). By comparison, the fund’s benchmark, the Russell Midcap Growth Index*, returned 19.72% for the same period.
What were the general economic and market conditions during the fiscal year?
Economic growth was generally below its long-term potential growth rate during the fiscal year as evidenced by the increase in the unemployment rate to 4.7% in October from 4.4% a year earlier. The subpar pace of domestic economic growth, along with significant credit market imbalances that developed in August and caused a broader tightening in financial market conditions, led the Federal Reserve to cut the Fed funds rate by 50 basis points on September 18 and another 25 basis points on October 31. Despite these rate cuts by the Fed, equity markets generally remained below the high levels reached earlier in the year, and then weakened significantly subsequent to year end. This weakness in the market corresponded with the reporting of third-quarter S&P 500 earnings results, which showed the first year-over-year decline in operating earnings since the final quarter of 2001. Expectations for fourth-quarter earnings growth were lowered significantly as well, resulting in a challenging market environment as the new fiscal year began.
What worked for the fund and why?
Stock selection was responsible for the fund’s strong performance this year. Stock selection within the healthcare sector was a large contributor. Intuitive Surgical, a manufacturer of robotic surgical systems, witnessed a significant improvement in equipment sales, disposable instrument sales, and earnings growth. Medco Health Solutions, a pharmacy benefit manager, benefited from increased mail and generic prescription penetration. Thermo Fisher Scientific, a provider of analytical instruments, gained ground because of the synergies created with the merger of Thermo and Fisher Scientific at the end of 2006. Stock selection within the industrial sector was also a positive contributor to performance. A large weight in the portfolio and a standout in terms of performance was Cummins, a diesel and natural gas engine manufacturer. Another large contributor, Precision Castparts, a manufacturer of complex metal components, investment castings, and forgings for the aerospace and industrial gas turbine markets, benefited as earnings came in stronger than expected, driven by continued strong demand in the company’s markets. In the information technology sector, MEMC Electronics Materials, a semiconductor and solar wafer manufacturer, enjoyed exceptional earnings growth as polysilicone prices remained high and the company’s foray in the solar business gained investor appreciation. NVIDIA, a graphics semiconductor company, enjoyed rising earnings estimates as its competitor AMD weakened.
What did not work for the fund and why?
Adverse stock selection within the consumer discretionary and financial sectors detracted from performance this year. In the consumer discretionary sector, disappointing earnings and member growth from Nutrisystem, a provider of weight management services, held back performance. In addition, Office Depot, an office products retailer, caused investor consternation after a series of weak earnings reports and lowered investor guidance. In the financial sector, Ambac Financial Group, a provider of financial guarantee products, PMI Group, a mortgage insurance provider, and Bear Stearns all declined due to their exposure to the housing and subprime mortgage area.
What strategic moves were made by the fund and why?
Growth stocks have begun to outperform for the first time in many years, and we believe that performance is set to continue. The expected earnings growth rate rose during the fiscal year as several high-growth companies were added to the fund. The fund has had higher expected growth in earnings and cash flow than our benchmark, with average valuations that are approximately in-line with the index. As a result, we believe the fund is well positioned for continued strong performance from growth companies.
The financial sector weight was lowered as we sold our positions in Northern Trust, Bear Stearns, Chicago Mercantile Exchange, CIT Group, and PMI Group while only adding a position in Blackrock, during the year. The materials sector weighting increased with a large purchase of Owens-Illinois, a manufacturer of glass containers, and Ecolab.
The fund retained modest overweights in the healthcare, information technology, and telecommunication services sectors and was underweight in the financial, consumer staples, and utility sectors.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
20 First American Funds 2007 Annual Report
Table of Contents
Top 10 Holdings as of October 31, 20071 (% of net assets)
First American Prime Obligations Fund, Class Z | 3.6 | % | ||
American Tower, Class A | 3.0 | |||
Precision Castparts | 2.9 | |||
Owens-Illinois | 2.9 | |||
Maxim Integrated Products | 2.2 | |||
Rockwell Collins | 2.1 | |||
NVIDIA | 2.1 | |||
Thermo Fisher Scientific | 2.0 | |||
Cameron International | 2.0 | |||
MEMC Electronic Materials | 1.9 |
Sector Allocation as of October 31, 20071 (% of net assets)
Information Technology | 22.2 | % | ||
Consumer Discretionary | 17.7 | |||
Healthcare | 16.2 | |||
Industrials | 15.5 | |||
Energy | 10.9 | |||
Financials | 6.2 | |||
Materials | 4.7 | |||
Telecommunication Services | 4.1 | |||
Short-Term Investment | 3.6 | |||
Other Assets and Liabilities, Net2 | (1.1 | ) | ||
100.0 | % |
1 | Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security. |
2 | Investments in securities typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
First American Funds 2007 Annual Report 21
Table of Contents
Mid Cap Growth Opportunities Fund continued
Annual Performance1,2
October 31, 2007 | September 30, 2007* | |||||||||||||||||||||||||||||||||||||||||||||||
Since Inception | Since Inception | |||||||||||||||||||||||||||||||||||||||||||||||
1 year | 5 years | 10 years | 3/1/1999 | 12/11/2000 | 9/24/2001 | 1 year | 5 years | 10 years | 3/1/1999 | 12/11/2000 | 9/24/2001 | |||||||||||||||||||||||||||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||||||||||||||||||||||||||||||||||
Class A | 16.58 | % | 18.04 | % | 9.77 | % | — | — | — | 19.51 | % | 19.21 | % | 9.17 | % | — | — | — | ||||||||||||||||||||||||||||||
Class B | 17.47 | % | 18.29 | % | — | 11.93 | % | — | — | 20.52 | % | 19.47 | % | — | 11.98 | % | — | — | ||||||||||||||||||||||||||||||
Class C | 21.42 | % | 18.50 | % | — | — | — | 15.18% | 24.52 | % | 19.68 | % | — | — | — | 15.30 | % | |||||||||||||||||||||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||||||||||||||||||||||||||||||||||
Class A | 23.36 | % | 19.39 | % | 10.39 | % | — | — | — | 26.47 | % | 20.56 | % | 9.79 | % | — | — | — | ||||||||||||||||||||||||||||||
Class B | 22.47 | % | 18.49 | % | — | 11.93 | % | — | — | 25.52 | % | 19.67 | % | — | 11.98 | % | — | — | ||||||||||||||||||||||||||||||
Class C | 22.42 | % | 18.50 | % | — | — | — | 15.18% | 25.52 | % | 19.68 | % | — | — | — | 15.30 | % | |||||||||||||||||||||||||||||||
Class R | 23.06 | % | 19.19 | % | — | — | 9.60 | % | — | 26.14 | % | 20.38 | % | — | — | 9.63 | % | — | ||||||||||||||||||||||||||||||
Class Y | 23.68 | % | 19.69 | % | 10.66 | % | — | — | — | 26.80 | % | 20.88 | % | 10.07 | % | — | — | — | ||||||||||||||||||||||||||||||
Russell Midcap Growth Index3 | 19.72 | % | 19.21 | % | 8.30 | % | 7.50 | % | 2.72 | % | 13.97% | 21.22 | % | 20.39 | % | 7.47 | % | 7.26 | % | 2.37 | % | 13.70 | % |
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
1 | Stocks of mid-capitalization companies may be slightly less volatile than those of small-capitalization companies, but they still involve substantial risk and may be subject to increased volatility and more price fluctuation than large-capitalization companies. |
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. | |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 5.50% for Class A shares and the contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV. | |
Investment performance reflects fee waivers that were in effect during the periods indicated. In the absence of such fee waivers, total returns would be reduced. | |
As of the most recent prospectus, the fund’s total annual operating expense ratio for Class A, Class B, Class C, Class R, and Class Y shares was 1.22%, 1.97%, 1.97%, 1.47%, and 0.97%, respectively. |
* | This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period. |
Value of $10,000 Investment1,2,4 as of October 31, 2007
Mid Cap Growth Opportunities Fund, Class A (NAV) | ![]() | $ | 26,865 | |||||
Mid Cap Growth Opportunities Fund, Class A (POP) | ![]() | $ | 25,388 | |||||
Russell Midcap Growth Index3 | ![]() | $ | 22,192 | |||||
The chart at right illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 10/31/1997 to 10/31/2007) as compared to the Russell Midcap Growth Index3. |
![(MID CAP GROWTH OPPORTUNITIES FUND LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950137-08-000175/c21990c2194807.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
On September 24, 2001, the First American Mid Cap Growth Opportunities Fund became the successor by merger to the Firstar MidCap Core Equity Fund, a series of Firstar Funds, Inc. Prior to the merger, the First American fund had no assets or liabilities. Performance presented prior to September 24, 2001 represents that of the Firstar MidCap Core Equity Fund. |
3 | An unmanaged index that measures the performance of those Russell mid-cap companies with higher price-to-book ratios and higher forecasted growth values. |
4 | Performance for Class B, Class C, Class R, and Class Y shares is not presented. Performance for these classes will vary due to the different expense structures. |
22 First American Funds 2007 Annual Report
Table of Contents
Mid Cap Value Fund
Investment Objective: capital appreciation
How did the Fund perform for the fiscal year ended October 31, 2007?
The First American Mid Cap Value Fund (the “fund”), Class Y shares, returned 11.79% for the fiscal year ended October 31, 2007 (Class A shares returned 11.47% without taking the sales charge into account). By comparison, the fund’s benchmark, the Russell Midcap Value Index*, returned 9.73% for the same period.
What were the general economic and market conditions during the fiscal year?
Economic growth was generally below its long-term potential growth rate during the fiscal year as evidenced by the increase in the unemployment rate to 4.7% in October from 4.4% a year earlier. The subpar pace of domestic economic growth, along with significant credit market imbalances that developed in August and caused a broader tightening in financial market conditions, led the Federal Reserve to cut the Fed funds rate by 50 basis points on September 18 and another 25 basis points on October 31. Despite these rate cuts by the Fed, equity markets generally remained below the high levels reached earlier in the year, and then weakened significantly subsequent to year end. This weakness in the market corresponded with the reporting of third-quarter S&P 500 earnings results, which showed the first year-over-year decline in operating earnings since the final quarter of 2001. Expectations for fourth-quarter earnings growth were lowered significantly as well, resulting in a challenging market environment as the new fiscal year began.
What worked for the fund and why?
Fund performance benefited from good security selection in the basic materials, energy, and utilities sectors, as well as an underweight in financials. Packaging manufacturer Owens-Illinois significantly outperformed the benchmark due to new management, portfolio restructuring and capacity rationalization. Mining company Freeport-McMoRan Copper & Gold rose sharply due to tight supply/demand dynamics in the global copper market as well as significant balance sheet improvement following the acquisition of a large competitor. Oil service operator GlobalSantaFe outperformed due to increasing worldwide exploration activity and commensurate improvement in day rates for offshore rig operators. Other standouts included utility Constellation Energy, oil service provider National-Oilwell Varco, utility PPL, and communications equipment manufacturer Harris.
What did not work for the fund and why?
Fund performance was negatively impacted by adverse stock selection in the financial, consumer staples, and industrial sectors as well as an underweight allocation in utilities. Deteriorating credit conditions related to subprime mortgage and slowing domestic economic growth negatively impacted several of the fund’s financial holdings, particularly financial guarantor Ambac Financial Group, mortgage insurer PMI Group, mortgage originator IndyMac Bancorp, and commercial/consumer lender CIT Group. Convenience store operator Pantry Inc. suffered from poor margins on the sale of gasoline.
What strategic moves were made by the fund and why?
In terms of strategic positioning, the fund ended the fiscal year with its largest overweight in the basic materials, technology, telecommunications services, and healthcare sectors, as we continued to identify stocks in these sectors that exhibit compelling fundamentals with company-specific catalysts for change. We remained modestly overweight in the energy sector because we felt the continuing high commodity prices, coupled with favorable supply-and-demand characteristics, would positively impact both exploration and service companies. We maintained our underweight position in the financial sectors due to an uncertain fundamental outlook but are looking for opportunities to add selectively. In addition, we were underweight in utilities because we believed the sector was experiencing both peak fundamentals and full valuation.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Top 10 Holdings as of October 31, 20071 (% of net assets)
First American Prime Obligations Fund, Class Z | 4.9 | % | ||
Owens-Illinois | 3.7 | |||
Edison International | 2.1 | |||
Republic Services | 2.1 | |||
GlobalSantaFe | 2.0 | |||
Rohm & Haas | 1.9 | |||
W.R. Berkley | 1.8 | |||
Werner Enterprises | 1.8 | |||
Smurfit-Stone Container | 1.8 | |||
PG&E | 1.7 |
Sector Allocation as of October 31, 20071 (% of net assets)
Financials | 22.2 | % | ||
Consumer Discretionary | 13.4 | |||
Materials | 11.0 | |||
Industrials | 10.3 | |||
Utilities | 10.3 | |||
Information Technology | 9.2 | |||
Energy | 7.6 | |||
Consumer Staples | 6.3 | |||
Healthcare | 3.3 | |||
Telecommunication Services | 3.2 | |||
Short-Term Investment | 4.9 | |||
Other Assets and Liabilities, Net2 | (1.7 | ) | ||
100.0 | % |
1 | Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security. |
2 | Investments in securities typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
First American Funds 2007 Annual Report 23
Table of Contents
Mid Cap Value Fund continued
Annual Performance1,2
October 31, 2007 | September 30, 2007* | |||||||||||||||||||||||||||||||||||||||
Since Inception | Since Inception | |||||||||||||||||||||||||||||||||||||||
1 year | 5 years | 10 years | 2/1/1999 | 9/24/2001 | 1 year | 5 years | 10 years | 2/1/1999 | 9/24/2001 | |||||||||||||||||||||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||||||||||||||||||||||||||
Class A | 5.34 | % | 17.07 | % | 6.67 | % | — | — | 6.79 | % | 17.54 | % | 6.10 | % | — | — | ||||||||||||||||||||||||
Class B | 5.67 | % | 17.33 | % | 6.50 | % | — | — | 7.15 | % | 17.79 | % | 5.93 | % | — | — | ||||||||||||||||||||||||
Class C | 9.66 | % | 17.53 | % | — | 9.72 | % | — | 11.16 | % | 17.99 | % | — | 9.66 | % | — | ||||||||||||||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||||||||||||||||||||||||||
Class A | 11.47 | % | 18.41 | % | 7.28 | % | — | — | 13.00 | % | 18.87 | % | 6.71 | % | — | — | ||||||||||||||||||||||||
Class B | 10.67 | % | 17.54 | % | 6.50 | % | — | — | 12.15 | % | 17.99 | % | 5.93 | % | — | — | ||||||||||||||||||||||||
Class C | 10.66 | % | 17.53 | % | — | 9.72 | % | — | 12.16 | % | 17.99 | % | — | 9.66 | % | — | ||||||||||||||||||||||||
Class R | 11.18 | % | 18.22 | % | — | — | 15.46 | % | 12.71 | % | 18.69 | % | — | — | 15.45 | % | ||||||||||||||||||||||||
Class Y | 11.79 | % | 18.71 | % | 7.56 | % | — | — | 13.28 | % | 19.18 | % | 6.98 | % | — | — | ||||||||||||||||||||||||
Russell Midcap Value Index 3 | 9.73 | % | 20.36 | % | 11.69 | % | 12.25 | % | 16.58 | % | 13.75 | % | 21.02 | % | 11.31 | % | 12.33 | % | 16.76 | % |
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
1 | Stocks of mid-capitalization companies may be slightly less volatile than those of small-capitalization companies, but they still involve substantial risk and may be subject to increased volatility and more price fluctuation than large-capitalization companies. |
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. | |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 5.50% for Class A shares and the contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV. | |
Investment performance reflects fee waivers that were in effect during the periods indicated. In the absence of such fee waivers, total returns would be reduced. | |
As of the most recent prospectus, the fund’s total annual operating expense ratio (including acquired fund fees and expenses, which the fund indirectly bears) for Class A, Class B, Class C, Class R, and Class Y shares was 1.23%, 1.98%, 1.98%, 1.48%, and 0.98%, respectively. |
* | This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period. |
Value of $10,000 Investment1,2,4 as of October 31, 2007
Mid Cap Value Fund, Class A (NAV) | ![]() | $ | 20,189 | |||||
Mid Cap Value Fund, Class A (POP) | ![]() | $ | 19,080 | |||||
Russell Midcap Value Index3 | ![]() | $ | 30,213 | |||||
The chart at right illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 10/31/1997 to 10/31/2007) as compared to the Russell Midcap Value Index3. |
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950137-08-000175/c21990c2194808.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
3 | An unmanaged index that measures the performance of those Russell mid-cap companies with lower price-to-book ratios and lower forecasted growth values. |
4 | Performance for Class B, Class C, Class R, and Class Y shares is not presented. Performance for these classes will vary due to the different expense structures. |
24 First American Funds 2007 Annual Report
Table of Contents
Large Cap Growth Opportunities Fund
Investment Objective: long-term growth of capital
How did the fund perform for the fiscal year ended October 31, 2007?
The First American Large Cap Growth Opportunities Fund (the “fund”), Class Y shares, returned 24.32% for the fiscal year ended October 31, 2007 (Class A shares returned 24.01% without taking the sales charge into account). By comparison, the fund’s benchmark, the Russell 1000 Growth Index*, returned 19.23% for the same period.
What were the general economic and market conditions during the fiscal year?
Economic growth was generally below its long-term potential growth rate during the fiscal year as evidenced by the increase in the unemployment rate to 4.7% in October from 4.4% a year earlier. The subpar pace of domestic economic growth, along with significant credit market imbalances that developed in August and caused a broader tightening in financial market conditions, led the Federal Reserve to cut the Fed funds rate by 50 basis points on September 18 and another 25 basis points on October 31. Despite these rate cuts by the Fed, equity markets generally remained below the high levels reached earlier in the year, and then weakened significantly subsequent to year end. This weakness in the market corresponded with the reporting of third-quarter S&P 500 earnings results, which showed the first year-over-year decline in operating earnings since the final quarter of 2001. Expectations for fourth-quarter earnings growth were lowered significantly as well, resulting in a challenging market environment as the new fiscal year began.
What worked for the fund and why?
Good stock selection in the technology, healthcare, and industrial sectors led to strong performance over the past fiscal year. An overweight in the technology sector, along with an underweight in the healthcare sector, also contributed to performance.
Robust demand for mobile information devices led to excellent operating performance in the technology sector holdings. Research In Motion, the maker of Blackberry devices, capitalized on its strength with corporate email services to expand into several international markets as well as into the consumer market over the fiscal year, producing excellent results. Apple introduced a new phone along with new and improved laptop and iPod products to meet the growing needs of the consumer market. Hewlett-Packard’s continued success in the PC space was marked by 30% or higher gains in laptops.
Continued strong demand and a positive outlook for the commercial aerospace market, along with market share gains and margin expansion, boosted the results from standout performer Precision Castparts and Rockwell Collins. In the energy sector, Schlumberger and Weatherford International both were well-positioned to capitalize on the strong demand for non-U.S. oil drilling activity.
Intuitive Surgical, maker of robotic surgical systems, was driven higher by continued growth and acceptance of its unique system along with possible new applications. Finally, pharmacy benefit manager Medco Health Solutions leveraged increasing generic drug penetration to produce more than 20% earnings growth.
What did not work for the fund and why?
The repercussions of the subprime mortgage loan disaster negatively affected a few holdings. McGraw-Hill’s S&P ratings division was hurt by the slowdown in structured financial products. Walgreens had difficulty navigating through some of the generic drug pricing changes over the past year and posted subpar financial and stock performance. Nordstrom was caught up in the consumer slowdown and posted earnings below plan, which drove its stock down. Despite these setbacks, we believe McGraw-Hill and Nordstrom still contain the market-leader characteristics required and therefore remain investments in the fund.
What strategic moves were made by the fund and why?
The individual stock selection process, focused on market-leading companies leveraging their sustainable competitive advantage into superior long-term earnings growth, continues to drive the activity of the fund. During the fiscal year about 4% of the portfolio was removed from the consumer staples sector and reinvested in the technology, financial, and consumer discretionary sectors. Profit-taking drove a modest reduction in some of the energy stocks in the portfolio.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Top 10 Holdings as of October 31, 20071 (% of net assets)
Microsoft | 4.9 | % | ||
Cisco Systems | 3.7 | |||
Intel | 2.8 | |||
Apple | 2.7 | |||
Goldman Sachs Group | 2.7 | |||
Target | 2.4 | |||
Hewlett-Packard | 2.4 | |||
Oracle | 2.3 | |||
IBM | 2.1 | |||
Google, Class A | 2.0 |
Sector Allocation as of October 31, 20071 (% of net assets)
Information Technology | 34.6 | % | ||
Consumer Discretionary | 12.0 | |||
Healthcare | 12.0 | |||
Industrials | 11.5 | |||
Financials | 10.0 | |||
Energy | 7.8 | |||
Consumer Staples | 5.2 | |||
Telecommunication Services | 3.0 | |||
Materials | 2.8 | |||
Short-Term Investment | 1.3 | |||
Other Assets and Liabilities, Net2 | (0.2 | ) | ||
100.0 | % |
1 | Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security. |
2 | Investments in securities typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
First American Funds 2007 Annual Report 25
Table of Contents
Large Cap Growth Opportunities Fund continued
Annual Performance1,2
October 31, 2007 | September 30, 2007* | |||||||||||||||||||||||||||||||||||||||||||||||
Since Inception | Since Inception | |||||||||||||||||||||||||||||||||||||||||||||||
1 year | 5 years | 10 years | 3/01/1999 | 11/27/2000 | 9/24/2001 | 1 year | 5 years | 10 years | 3/01/1999 | 11/27/2000 | 9/24/2001 | |||||||||||||||||||||||||||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||||||||||||||||||||||||||||||||||
Class A | 17.19 | % | 10.88 | % | 4.39 | % | — | — | — | 17.44 | % | 12.07 | % | 3.56 | % | — | — | — | ||||||||||||||||||||||||||||||
Class B | 18.13 | % | 11.04 | % | — | 1.32 | % | — | — | 18.36 | % | 12.26 | % | — | 1.01 | % | — | — | ||||||||||||||||||||||||||||||
Class C | 22.09 | % | 11.29 | % | — | — | — | 6.71 | % | 22.33 | % | 12.50 | % | — | — | — | 6.32 | % | ||||||||||||||||||||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||||||||||||||||||||||||||||||||||
Class A | 24.01 | % | 12.14 | % | 4.98 | % | — | — | — | 24.27 | % | 13.35 | % | 4.15 | % | — | — | — | ||||||||||||||||||||||||||||||
Class B | 23.13 | % | 11.30 | % | — | 1.32 | % | — | — | 23.36 | % | 12.51 | % | — | 1.01 | % | — | — | ||||||||||||||||||||||||||||||
Class C | 23.09 | % | 11.29 | % | — | — | — | 6.71 | % | 23.33 | % | 12.50 | % | — | — | — | 6.32 | % | ||||||||||||||||||||||||||||||
Class R | 23.70 | % | 11.94 | % | — | — | 0.42 | % | — | 23.95 | % | 13.16 | % | — | — | 0.02 | % | — | ||||||||||||||||||||||||||||||
Class Y | 24.32 | % | 12.41 | % | 5.24 | % | — | — | — | 24.62 | % | 13.64 | % | 4.41 | % | — | — | — | ||||||||||||||||||||||||||||||
Russell 1000 Growth Index3 | 19.23 | % | 12.61 | % | 4.81 | % | 0.92 | % | (0.58) | % | 7.76 | % | 19.35 | % | 13.84 | % | 4.06 | % | 0.54 | % | (1.07) | % | 7.27 | % |
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
1 | Growth stocks typically have more volatility than value stocks; whereas value stocks tend to have slower earnings growth rates. |
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. | |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 5.50% for Class A shares and the contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV. | |
Investment performance reflects fee waivers that were in effect during the periods indicated. In the absence of such fee waivers, total returns would be reduced. | |
As of the most recent prospectus, the fund’s total annual operating expense ratio for Class A, Class B, Class C, Class R, and Class Y shares was 1.19%, 1.94%, 1.94%, 1.44%, and 0.94%, respectively. |
* | This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period. |
Value of $10,000 Investment1,2,4 as of October 31, 2007
Large Cap Growth Opportunities Fund, Class A (NAV) | ![]() | $ | 16,254 | |||||
Large Cap Growth Opportunities Fund, Class A (POP) | ![]() | $ | 15,361 | |||||
Russell 1000 Growth Index3 | ![]() | $ | 15,992 | |||||
The chart at right illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 10/31/1997 to 10/31/2007) as compared to the Russell 1000 Growth Index3. |
![(LARGE CAP GROWTH OPPORTUNITIES LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950137-08-000175/c21990c2194809.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
On September 24, 2001, the First American Large Cap Growth Opportunities Fund became the successor by merger to the Firstar Large Cap Core Equity Fund, a series of Firstar Funds, Inc. Prior to the merger, the First American fund had no assets or liabilities. Performance presented prior to September 24, 2001 represents that of the Firstar Large Cap Core Equity Fund. |
3 | An unmanaged index that measures the performance of those companies in the Russell 1000 Index (large-cap index) with higher price-to-book ratios and higher forecasted growth values. |
4 | Performance for Class B, Class C, Class R, and Class Y shares is not presented. Performance for these classes will vary due to the different expense structures. |
26 First American Funds 2007 Annual Report
Table of Contents
Large Cap Select Fund
Investment Objective: capital appreciation
How did the fund perform for the fiscal year ended October 31, 2007?
The First American Large Cap Select Fund (the “fund”), Class Y shares, returned 14.65% for the fiscal year ended October 31, 2007 (Class A shares returned 14.36% without taking the sales charge into account). By comparison, the fund’s benchmark, the Standard & Poor’s 500 Index* (“S&P 500 Index”), returned 14.56% for the same period.
What were the general economic and market conditions during the fiscal year?
Economic growth was generally below its long-term potential growth rate during the fiscal year as evidenced by the increase in the unemployment rate to 4.7% in October from 4.4% a year earlier. The subpar pace of domestic economic growth, along with significant credit market imbalances that developed in August and caused a broader tightening in financial market conditions, led the Federal Reserve to cut the Fed funds rate by 50 basis points on September 18 and another 25 basis points on October 31. Despite these rate cuts by the Fed, equity markets generally remained below the high levels reached earlier in the year, and then weakened significantly subsequent to year end. This weakness in the market corresponded with the reporting of third-quarter S&P 500 earnings results, which showed the first year-over-year decline in operating earnings since the final quarter of 2001. Expectations for fourth-quarter earnings growth were lowered significantly as well, resulting in a challenging market environment as the new fiscal year began.
What worked for the fund and why?
Good sector allocation was the largest positive contributor to the fund’s performance. Our overweight position in technology and energy and underweights in the consumer-related areas and utilities were drivers of fund performance. Within energy, stock selection added value, with National-Oilwell Varco and Cameron International being large positive contributors to performance. Within technology, our positions in Intel, IBM, Apple, and Hewlett-Packard boosted performance. Stock selection within the basic materials sector was very helpful to performance as well. Both Owens-Illinois and Freeport-McMoRan Copper & Gold were important contributors to the fund’s performance.
What did not work for the fund and why?
Stock selection within the financial sector hurt the fund on an individual stock basis. The fund did own both PMI Group and Ambac Financial Group, which were more negatively affected by the subprime mortgage crisis than we anticipated. Some of the fund’s bank stocks – Bank of America and Citigroup – were also impacted by these issues. In addition to the sector and stock combinations mentioned above, poor stock selection on a company-specific basis cost the fund performance. Weak performers – notably Circuit City, Motorola and Novartis – had an adverse effect on fund performance while they were in the portfolio.
What strategic moves were made by the fund and why?
We were positively rewarded for our overweights in energy and technology and for our stock selection within these sectors. Guided by global economic growth expectations and energy supply and demand forecasts, we selected stocks within the oil services area that helped performance. Technology was overweighted because we anticipated a strong PC cycle, strong demand for semiconductors and attractive valuations and earnings growth rates. The fund’s overall exposure to stocks that benefited from momentum (a pattern of increasing rate of growth in earnings per share), a bias toward growth strategies, and stock selection outside of the benchmark also contributed to performance. Nonbenchmark holdings in Owens-Illinois and Cameron International added to the fund’s performance. As we enter the new fiscal year, we have reduced our energy and technology weights and have added selectively to our consumer and financial holdings. We expect more interest-rate reductions by the Federal Reserve early in the new fiscal year. Interest-rate reductions should improve the outlook for the financial and consumer cyclical sectors.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Top 10 Holdings as of October 31, 20071 (% of net assets)
Cisco Systems | 3.9 | % | ||
Microsoft | 3.9 | |||
Wachovia | 3.4 | |||
American International Group | 3.3 | |||
Hewlett-Packard | 3.2 | |||
Morgan Stanley | 3.1 | |||
Owens-Illinois | 3.1 | |||
Exxon Mobil | 3.0 | |||
Citigroup | 2.8 | |||
Altria Group | 2.6 |
Sector Allocation as of October 31, 20071 (% of net assets)
Information Technology | 24.0 | % | ||
Financials | 23.4 | |||
Energy | 13.6 | |||
Healthcare | 11.7 | |||
Consumer Discretionary | 7.6 | |||
Materials | 5.3 | |||
Telecommunication Services | 4.5 | |||
Consumer Staples | 4.5 | |||
Industrials | 3.7 | |||
Investment Company | 1.2 | |||
Short-Term Investment | 0.6 | |||
Other Assets and Liabilities, Net2 | (0.1 | ) | ||
100.0 | % |
1 | Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security. |
2 | Investments in securities typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
First American Funds 2007 Annual Report 27
Table of Contents
Large Cap Select Fund continued
Annual Performance1,2
October 31, 2007 | September 30, 2007* | |||||||||||||||
Since Inception | Since Inception | |||||||||||||||
1 year | 1/31/2003 | 1 year | 1/31/2003 | |||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||
Class A | 8.10 | % | 12.92 | % | 9.31 | % | 12.78 | % | ||||||||
Class B | 8.52 | % | 13.12 | % | 9.83 | % | 12.99 | % | ||||||||
Class C | 12.45 | % | 13.39 | % | 13.75 | % | 13.27 | % | ||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||
Class A | 14.36 | % | 14.27 | % | 15.68 | % | 14.15 | % | ||||||||
Class B | 13.52 | % | 13.39 | % | 14.83 | % | 13.26 | % | ||||||||
Class C | 13.45 | % | 13.39 | % | 14.75 | % | 13.27 | % | ||||||||
Class R | 14.09 | % | 14.01 | % | 15.40 | % | 13.89 | % | ||||||||
Class Y | 14.65 | % | 14.56 | % | 15.98 | % | 14.43 | % | ||||||||
S&P 500 Index3 | 14.56 | % | 15.39 | % | 16.44 | % | 15.30 | % |
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
1 | Mutual fund investing involves risk; principal loss is possible. |
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 5.50% for Class A shares and the contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV. | |
Investment performance reflects fee waivers that were in effect during the periods indicated. In the absence of such fee waivers, total returns would be reduced. | |
As of the most recent prospectus, the fund’s total annual operating expense ratio for Class A, Class B, Class C, Class R, and Class Y shares was 1.19%, 1.94%, 1.94%, 1.44%, and 0.94%, respectively. |
* | This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period. |
Value of $10,000 Investment1,2,4 as of October 31, 2007
Large Cap Select Fund, Class A (NAV) | ![]() | $ | 18,837 | |||||
Large Cap Select Fund, Class A (POP) | ![]() | $ | 17,804 | |||||
S&P 500 Index3 | ![]() | $ | 19,734 | |||||
The chart at right illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 1/31/2003 to 10/31/2007) as compared to the S&P 500 Index3. |
![(CLASS X LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950137-08-000175/c21990c2194810.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
3 | An unmanaged market capitalization-weighted index based on the average weighted performance of 500 widely held common stocks. |
4 | Performance for Class B, Class C, Class R, and Class Y shares is not presented. Performance for these classes will vary due to the different expense structures. |
28 First American Funds 2007 Annual Report
Table of Contents
Large Cap Value Fund
Investment Objective: primary – capital appreciation; secondary – current income
How did the fund perform for the fiscal year ended October 31, 2007?
The First American Large Cap Value Fund (the “fund”), Class Y shares, returned 11.83% for the fiscal year ended October 31, 2007 (Class A shares returned 11.60% without taking the sales charge into account). By comparison, the fund’s benchmark, the Russell 1000 Value Index*, returned 10.83% for the same period.
What were the general economic and market conditions during the fiscal year?
Economic growth was generally below its long-term potential growth rate during the fiscal year as evidenced by the increase in the unemployment rate to 4.7% in October from 4.4% a year earlier. The subpar pace of domestic economic growth, along with significant credit market imbalances that developed in August and caused a broader tightening in financial market conditions, led the Federal Reserve to cut the Fed funds rate by 50 basis points on September 18 and another 25 basis points on October 31. Despite these rate cuts by the Fed, equity markets generally remained below the high levels reached earlier in the year, and then weakened significantly subsequent to year end. This weakness in the market corresponded with the reporting of third-quarter S&P 500 earnings results, which showed the first year-over-year decline in operating earnings since the final quarter of 2001. Expectations for fourth-quarter earnings growth were lowered significantly as well, resulting in a challenging market environment as the new fiscal year began.
What worked for the fund and why?
Good stock selection in the materials, technology, utility, and energy sectors made a positive contribution to the fund’s performance. An overweight in the materials sector proved beneficial given particularly strong performance by glass container company Owens-Illinois, which was led higher by successful implementation of new management’s turnaround plan as well as renewed industry pricing power. Copper miner Freeport-McMoRan was also a standout performer, as global metals demand remained robust. Notable performers in the technology sector included semiconductor producers Texas Instruments and Intel, experiencing margin expansion and earnings strength thanks to new product introductions and improving market conditions. Stock selection contributed to performance in utilities, where Exelon (a Chicago-based electric utility) and Edison International were the leaders. Within the energy sector, the portfolio gained from positions in Occidental Petroleum and oil services firm National-Oilwell Varco, both benefiting from continued strength in global energy markets.
What did not work for the fund and why?
Weaker stock selection in the financials, industrials, consumer staples, and consumer discretionary sectors detracted from the overall performance of the fund. Although the fund realized a net benefit from an underweight position in the struggling financial sector, investments in Ambac Financial Group, Countrywide Financial, and CIT Group were negatively impacted as a result of the credit market turmoil. Within industrials, the fund’s underweight position in conglomerate General Electric was a negative contributor to performance. In the consumer staples sector, the performance of food retailer SUPERVALU was disappointing as the company continued losing market share to stronger competitors. The fund’s small investment in home-building company Pulte Homes was a negative factor on performance as fundamentals in housing continued to deteriorate.
What strategic moves were made by the fund and why?
In terms of strategic positioning, the fund ended the fiscal year with its largest overweight in the materials and technology sectors as we continued to identify stocks in these sectors that exhibit compelling fundamentals with company-specific catalysts for change. We maintained our underweight position in the financial and utility sectors. It is our belief that the financial sector is still early in its correction and that utilities are experiencing very close to full valuations.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Top 10 Holdings as of October 31, 20071 (% of net assets)
Exxon Mobil | 4.9 | % | ||
AT&T | 3.9 | |||
JPMorgan Chase | 3.5 | |||
Owens-Illinois | 3.2 | |||
Occidental Petroleum | 2.8 | |||
Bank of America | 2.6 | |||
Pfizer | 2.5 | |||
General Electric | 2.5 | |||
United Technologies | 2.3 | |||
Marathon Oil | 2.3 |
Sector Allocation as of October 31, 20071 (% of net assets)
Financials | 25.3 | % | ||
Energy | 15.9 | |||
Industrials | 9.3 | |||
Information Technology | 8.8 | |||
Healthcare | 8.1 | |||
Materials | 8.1 | |||
Consumer Discretionary | 6.4 | |||
Telecommunication Services | 6.1 | |||
Consumer Staples | 6.0 | |||
Utilities | 5.3 | |||
Short-Term Investment | 1.6 | |||
Other Assets and Liabilities, Net2 | (0.9 | ) | ||
100.0 | % |
1 | Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security. |
2 | Investments in securities typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
First American Funds 2007 Annual Report 29
Table of Contents
Large Cap Value Fund continued
Annual Performance1,2
October 31, 2007 | September 30, 2007* | |||||||||||||||||||||||||||||||||||||||
Since Inception | Since Inception | |||||||||||||||||||||||||||||||||||||||
1 year | 5 years | 10 years | 2/01/1999 | 9/24/2001 | 1 year | 5 years | 10 years | 2/01/1999 | 9/24/2001 | |||||||||||||||||||||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||||||||||||||||||||||||||
Class A | 5.45 | % | 12.89 | % | 4.89 | % | — | — | 7.10 | % | 14.15 | % | 4.23 | % | — | — | ||||||||||||||||||||||||
Class B | 5.76 | % | 13.07 | % | 4.70 | % | — | — | 7.48 | % | 14.35 | % | 4.05 | % | — | — | ||||||||||||||||||||||||
Class C | 9.71 | % | 13.32 | % | — | 3.88 | % | — | 11.51 | % | 14.57 | % | — | 3.77 | % | — | ||||||||||||||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||||||||||||||||||||||||||
Class A | 11.60 | % | 14.18 | % | 5.49 | % | — | — | 13.33 | % | 15.45 | % | 4.82 | % | — | — | ||||||||||||||||||||||||
Class B | 10.76 | % | 13.32 | % | 4.70 | % | — | — | 12.48 | % | 14.59 | % | 4.05 | % | — | — | ||||||||||||||||||||||||
Class C | 10.71 | % | 13.32 | % | — | 3.88 | % | — | 12.51 | % | 14.57 | % | — | 3.77 | % | — | ||||||||||||||||||||||||
Class R | 11.25 | % | 13.96 | % | — | — | 9.42 | % | 13.07 | % | 15.24 | % | — | — | 9.33 | % | ||||||||||||||||||||||||
Class Y | 11.83 | % | 14.45 | % | 5.76 | % | — | — | 13.62 | % | 15.75 | % | 5.10 | % | — | — | ||||||||||||||||||||||||
Russell 1000 Value Index3 | 10.83 | % | 16.39 | % | 9.11 | % | 7.74 | % | 11.92 | % | 14.45 | % | 18.07 | % | 8.80 | % | 7.82 | % | 12.10 | % |
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
1 | Mutual fund investing involves risk; principal loss is possible. |
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. | |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 5.50% for Class A shares and the contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV. | |
Investment performance reflects fee waivers that were in effect during the periods indicated. In the absence of such fee waivers, total returns would be reduced. | |
As of the most recent prospectus, the fund’s total annual operating expense ratio for Class A, Class B, Class C, Class R, and Class Y shares was 1.17%, 1.92%, 1.92%, 1.42%, and 0.92%, respectively. |
* | This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period. |
Value of $10,000 Investment1,2,4 as of October 31, 2007
Large Cap Value Fund, Class A (NAV) | ![]() | $ | 17,060 | |||||
Large Cap Value Fund, Class A (POP) | ![]() | $ | 16,122 | |||||
Russell 1000 Value Index3 | ![]() | $ | 23,920 | |||||
The chart at right illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 10/31/1997 to 10/31/2007) as compared to the Russell 1000 Value Index3. |
![(LARGE CAP VALUE FUND LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950137-08-000175/c21990c2194811.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
3 | An unmanaged index that measures the performance of those companies in the Russell 1000 Index (large-cap index) with lower price-to-book ratios and lower forecasted growth values. |
4 | Performance for Class B, Class C, Class R and Class Y shares is not presented. Performance for these classes will vary due to the different expense structures. |
30 First American Funds 2007 Annual Report
Table of Contents
Balanced Fund
Investment Objective: maximize total return (capital appreciation plus income)
How did the fund perform for the fiscal year ended October 31, 2007?
The First American Balanced Fund (the “fund”), Class Y shares, returned 11.21% for the fiscal year ended October 31, 2007 (Class A shares returned 10.97% without taking the sales charge into account). By comparison, the fund’s benchmarks, the Russell 3000 Index* and the Lehman Aggregate Bond Index*, returned 14.53% and 5.38%, respectively, for the same period.
What were the general economic and market conditions during the fiscal year?
Economic growth was generally below its long-term potential growth rate during the fiscal year as evidenced by the increase in the unemployment rate to 4.7% in October from 4.4% a year earlier. The subpar pace of domestic economic growth, along with significant credit market imbalances that developed in August and caused a broader tightening in financial market conditions, led the Federal Reserve to cut the Fed funds rate by 50 basis points on September 18 and another 25 basis points on October 31. Despite these rate cuts by the Fed, equity markets generally remained below the high levels reached earlier in the year, and then weakened significantly subsequent to year end. This weakness in the market corresponded with the reporting of third-quarter S&P 500 earnings results, which showed the first year-over-year decline in operating earnings since the final quarter of 2001. Expectations for fourth quarter earnings growth were lowered significantly as well, resulting in a challenging market environment as the new fiscal year began.
What worked for the fund and why?
In the stock portion of the fund, good sector allocation was the largest positive contributor to the fund’s performance. Our overweight position in technology and energy and underweights in the consumer-related areas and utilities were drivers of fund performance. Within energy, stock selection added value, with National-Oilwell Varco and Cameron International being large positive contributors to performance. Within technology, our positions in Intel, IBM, Apple, and Hewlett-Packard boosted performance. Stock selection within the basic materials sector was very helpful to performance as well. Both Owens-Illinois and Freeport-McMoRan Copper & Gold were important contributors to the fund’s performance.
In the fixed-income portion of the fund, we adopted an increasingly defensive position on corporate bonds as the fiscal year progressed. Our reduced holdings in high-yield corporate bonds and an underweight to investment-grade corporate bonds helped fund performance, particularly later in the fiscal year. The fund also benefited from the steepening of the yield curve as financial market turmoil intensified in the latter half of the fiscal year. The portfolio benefited marginally from lower interest rates.
What did not work for the fund and why?
Stock selection within the financial sector hurt the fund on an individual stock basis. The fund did own both PMI Group and Ambac Financial Group, which were more negatively affected by the subprime mortgage crisis than we anticipated. Some of the fund’s bank stocks – Bank of America and Citigroup – were also impacted by these issues. In addition to the sector and stock combinations mentioned above, poor stock selection on a company-specific basis cost the fund performance. Weak performers – notably Circuit City, Motorola and Novartis – had an adverse effect on fund performance while they were in the portfolio.
The bond portion of the portfolio was hurt by an overweight to asset-backed and commercial mortgage-backed securities. Although the quality of these holdings is high, these sectors suffered in sympathy with turmoil in the mortgage market.
What strategic moves were made by the fund and why?
We were positively rewarded for our overweights in energy and technology and for our stock selection within these sectors. Guided by global economic growth expectations and energy supply and demand forecasts, we selected stocks within the oil services area that helped performance. Technology was overweighted because we anticipated a strong PC cycle, strong demand for semiconductors, and attractive valuations and earnings growth rates. The fund’s overall exposure to stocks that benefited from momentum (a pattern of increasing rate of growth in earnings per share), a bias toward growth strategies, and stock selection outside of the benchmark also contributed to performance. Non-benchmark holdings in Owens-Illinois and Cameron International added to the fund’s performance. As we enter the new fiscal year, we have reduced our energy and technology weights and have added selectively to our consumer and financial holdings. We expect more interest-rate reductions by the Federal Reserve early in the new fiscal year. Interest-rate reductions should improve the outlook for the financial and consumer cyclical sectors.
The bond portfolio remained defensively positioned with respect to corporate credit risk, given market valuations and deteriorating credit fundamentals. The portfolio maintained an overweight in high-quality asset-backed securities and commercial mortgage-backed securities, since we view these sectors as cheap. Our interest-rate strategy was focused on a steepening yield curve, and interest-rate sensitivity was adjusted depending on valuations, given market volatility.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Top 10 Holdings as of October 31, 20071 (% of net assets)
iShares MSCI EAFE Index Fund | 3.4 | % | ||
U. S. Treasury Note, 4.875%, 8/31/2008 | 2.3 | |||
First American Prime Obligations Fund, Class Z | 2.0 | |||
Cisco Systems | 1.9 | |||
Microsoft | 1.9 | |||
Wachovia | 1.7 | |||
American International Group | 1.6 | |||
Hewlett-Packard | 1.6 | |||
Morgan Stanley | 1.5 | |||
Owens-Illinois | 1.5 |
Portfolio Allocation as of October 31, 20071 (% of net assets)
Stocks | 52.9 | % | ||
Bonds | 41.0 | |||
Investment Companies | 4.5 | |||
Short-Term Investments | 2.2 | |||
Other Assets and Liabilities, Net2 | (0.6 | ) | ||
100.0 | % |
1 | Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security. |
2 | Investments in securities typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
First American Funds 2007 Annual Report 31
Table of Contents
Balanced Fund continued
Annual Performance1,2
October 31, 2007 | September 30, 2007* | |||||||||||||||||||||||||||||||||||||||||||||||
Since Inception | Since Inception | |||||||||||||||||||||||||||||||||||||||||||||||
1 year | 5 years | 10 years | 3/1/1999 | 11/27/2000 | 9/24/2001 | 1 year | 5 years | 10 years | 3/1/1999 | 11/27/2000 | 9/24/2001 | |||||||||||||||||||||||||||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||||||||||||||||||||||||||||||||||
Class A | 4.90 | % | 9.30 | % | 5.28 | % | — | — | — | 5.41 | % | 9.99 | % | 4.92 | % | — | — | — | ||||||||||||||||||||||||||||||
Class B | 5.08 | % | 9.43 | % | — | 4.45 | % | — | — | 5.74 | % | 10.15 | % | — | 4.33 | % | — | — | ||||||||||||||||||||||||||||||
Class C | 9.15 | % | 9.70 | % | — | — | — | 7.08 | % | 9.63 | % | 10.39 | % | — | — | — | 6.92 | % | ||||||||||||||||||||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||||||||||||||||||||||||||||||||||
Class A | 10.97 | % | 10.54 | % | 5.87 | % | — | — | — | 11.55 | % | 11.25 | % | 5.52 | % | — | — | — | ||||||||||||||||||||||||||||||
Class B | 10.08 | % | 9.71 | % | — | 4.45 | % | — | — | 10.74 | % | 10.42 | % | — | 4.33 | % | — | — | ||||||||||||||||||||||||||||||
Class C | 10.15 | % | 9.70 | % | — | — | — | 7.08 | % | 10.63 | % | 10.39 | % | — | — | — | 6.92 | % | ||||||||||||||||||||||||||||||
Class R | 10.82 | % | 10.38 | % | — | — | 4.20 | % | — | 11.31 | % | 11.07 | % | — | — | 4.02 | % | — | ||||||||||||||||||||||||||||||
Class Y | 11.21 | % | 10.78 | % | 6.15 | % | — | — | — | 11.79 | % | 11.52 | % | 5.79 | % | — | — | — | ||||||||||||||||||||||||||||||
Russell 3000 Index 3 | 14.53 | % | 14.83 | % | 7.39 | % | 5.23 | % | 4.61 | % | 10.24 | % | 16.52 | % | 16.18 | % | 6.83 | % | 5.06 | % | 4.39 | % | 10.06 | % | ||||||||||||||||||||||||
Lehman Aggregate Bond Index4 | 5.38 | % | 4.41 | % | 5.91 | % | 5.83 | % | 5.95 | % | 5.05 | % | 5.14 | % | 4.13 | % | 5.97 | % | 5.78 | % | 5.89 | % | 4.96 | % |
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
1 | Mutual fund investing involves risk; principal loss is possible. |
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. | |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 5.50% for Class A shares and the contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV. | |
Investment performance reflects fee waivers that were in effect during the periods indicated. In the absence of such fee waivers, total returns would be reduced. | |
As of the most recent prospectus, the fund’s total annual operating expense ratio before waivers (including acquired fund fees and expenses, which the fund indirectly bears) for Class A, Class B, Class C, Class R, and Class Y shares was 1.27%, 2.02%, 2.02%, 1.52%, and 1.02%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through June 30, 2008 so that total annual fund operating expenses (net of acquired fund fees and expenses) for Class A, Class B, Class C, Class R, and Class Y shares do not exceed 1.10%, 1.85%, 1.85%, 1.35%, and 0.85%, respectively. These fee waivers and expense reimbursements may be terminated at any time after June 30, 2008 at the discretion of the advisor. Prior to that time, such waivers and reimbursements may not be terminated without the approval of the fund’s board of directors. |
* | This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period. |
Value of $10,000 Investment1,2,5 as of October 31, 2007
Balanced Fund, Class A (NAV) | ![]() | $ | 17,696 | |||||
Balanced Fund, Class A (POP) | ![]() | $ | 16,725 | |||||
Russell 3000 Index3 | ![]() | $ | 20,392 | |||||
Lehman Aggregate Bond Index4 | ![]() | $ | 17,757 | |||||
The chart at right illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 10/31/1997 to 10/31/2007) as compared to the Russell 3000 Index3 and the Lehman Aggregate Bond Index4. |
![(BALANCED FUND)](https://capedge.com/proxy/N-CSR/0000950137-08-000175/c21990c2194812.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
On September 24, 2001, the First American Balanced Fund combined with Firstar Balanced Growth Fund and Firstar Balanced Income Fund. Performance history prior to September 24, 2001, represents that of Firstar Balanced Growth Fund. |
3 | An unmanaged index that measures the performance of the 3,000 largest U.S. companies (98% of the investable U.S. equity market) based on total market capitalization. |
4 | An unmanaged fixed income index covering the U.S. investment-grade fixed-rate bond market. |
5 | Performance for Class B, Class C, Class R, and Class Y shares is not presented. Performance for these classes will vary due to the different expense structures. |
32 First American Funds 2007 Annual Report
Table of Contents
Equity Income Fund
Investment Objective: long-term growth of capital and income
How did the fund perform for the fiscal year ended October 31, 2007?
The First American Equity Income Fund (the “fund”), Class Y shares, returned 15.54% for the fiscal year ended October 31, 2007 (Class A shares returned 15.24% without taking the sales charge into account). By comparison, the fund’s benchmark, the Standard and Poor’s 500 Dividend Only Stocks Index*, returned 13.57% for the same period.
What were the general economic and market conditions during the fiscal year?
Economic growth was generally below its long-term potential growth rate during the fiscal year as evidenced by the increase in the unemployment rate to 4.7% in October from 4.4% a year earlier. The subpar pace of domestic economic growth, along with significant credit market imbalances that developed in August and caused a broader tightening in financial market conditions, led the Federal Reserve to cut the Fed funds rate by 50 basis points on September 18 and another 25 basis points on October 31. Despite these rate cuts by the Fed, equity markets generally remained below the high levels reached earlier in the year, and then weakened significantly subsequent to year end. This weakness in the market corresponded with the reporting of third-quarter S&P 500 earnings results, which showed the first year-over-year decline in operating earnings since the final quarter of 2001. Expectations for fourth-quarter earnings growth were lowered significantly as well, resulting in a challenging market environment as the new fiscal year began.
What worked for the fund and why?
In general, the fund’s sector allocation added value. The fund was overweight in several of the best-performing sectors, including telecommunications services, information technology, and energy. The fund was underweight in the two poorest-performing sectors of the market – financials and consumer discretionary. This sector positioning reflected our conviction that U.S. consumer spending was likely to experience a challenging environment in 2007 due to rising interest rates and energy prices. We also expected economic growth abroad to be stronger than in the United States. Therefore, the fund was positioned in industries and companies with significant shares of their revenues sourced overseas, particularly in the information technology, industrials, and materials sectors.
Strong performing individual holdings were spread across several sectors of the market and included McDonald’s and YUM! Brands in the consumer discretionary sector, both benefiting from strong revenue growth in their international markets. This was also true for Proctor & Gamble, the fund’s largest holding in the consumer staples sector. In financials, standout performers included ICICI Bank, a bank domiciled in India, with strong operating performance reflecting the generally strong economic growth in that country; and BlackRock, an asset manager with a growing worldwide presence. In industrials, Honeywell International’s performance was very strong, reflecting robust global spending on aerospace products. Hewlett-Packard and Intel led the pack in the information technology sector on the strength of their strong international sales results. This also boosted the performance of Praxair, an industrial gas company with a growing international presence. Vodaphone Group, in telecommunications services, was also a strong performer as investors recognized the company’s improving operating fundamentals and stabilizing revenue environment.
What did not work for the fund and why?
The fund’s worst performers were concentrated in the financials sector, where the fallout from aggressive mortgage lending in the United States was widely experienced. Several of the fund’s holdings were impacted by this including Ambac Financial Group, Wachovia, Bank of America, and American International Group (AIG).
What strategic moves were made by the fund and why?
The fund was incrementally positioned throughout the fiscal year into industries and companies with strong international business prospects. Concurrently, U.S.-focused companies were trimmed or sold during the year. The fund continues to emphasize primarily large U.S.-based companies with growing global franchises and with dividend policies that support above-average current yields and dividend growth.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Top 10 Holdings as of October 31, 20071 (% of net assets)
Exxon Mobil | 3.9 | % | ||
AT&T | 3.8 | |||
BP, ADR | 3.5 | |||
General Electric | 3.5 | |||
Bank of America | 3.3 | |||
Microsoft | 3.2 | |||
ConocoPhillips | 2.9 | |||
Intel | 2.9 | |||
Procter & Gamble | 2.6 | |||
Chevron | 2.6 |
Sector Allocation as of October 31, 20071 (% of net assets)
Financials | 19.7 | % | ||
Energy | 14.3 | |||
Information Technology | 13.9 | |||
Industrials | 12.2 | |||
Consumer Staples | 11.3 | |||
Telecommunication Services | 9.2 | |||
Healthcare | 8.9 | |||
Consumer Discretionary | 4.2 | |||
Materials | 3.6 | |||
Utilities | 1.7 | |||
Short-Term Investment | 0.8 | |||
Convertible Corporate Bond | 0.4 | |||
Other Assets and Liabilities, Net2 | (0.2 | ) | ||
100.0 | % |
1 | Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security. |
2 | Investments in securities typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
First American Funds 2007 Annual Report 33
Table of Contents
Equity Income Fund continued
Annual Performance1,2
October 31, 2007 | September 30, 2007* | |||||||||||||||||||||||||||||||||||||||
Since Inception | Since Inception | |||||||||||||||||||||||||||||||||||||||
1 year | 5 years | 10 years | 2/01/1999 | 9/24/2001 | 1 year | 5 years | 10 years | 2/01/1999 | 9/24/2001 | |||||||||||||||||||||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||||||||||||||||||||||||||
Class A | 8.87 | % | 12.81 | % | 7.31 | % | — | — | 10.56 | % | 13.86 | % | 6.94 | % | — | — | ||||||||||||||||||||||||
Class B | 9.40 | % | 13.00 | % | 7.15 | % | — | — | 11.18 | % | 14.06 | % | 6.79 | % | — | — | ||||||||||||||||||||||||
Class C | 13.37 | % | 13.23 | % | — | 5.61 | % | — | 15.14 | % | 14.28 | % | — | 5.50 | % | — | ||||||||||||||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||||||||||||||||||||||||||
Class A | 15.24 | % | 14.09 | % | 7.91 | % | — | — | 17.01 | % | 15.17 | % | 7.55 | % | — | — | ||||||||||||||||||||||||
Class B | 14.40 | % | 13.24 | % | 7.15 | % | — | — | 16.18 | % | 14.29 | % | 6.79 | % | — | — | ||||||||||||||||||||||||
Class C | 14.37 | % | 13.23 | % | — | 5.61 | % | — | 16.14 | % | 14.28 | % | — | 5.50 | % | — | ||||||||||||||||||||||||
Class R | 14.98 | % | 13.88 | % | — | — | 9.29 | % | 16.76 | % | 14.96 | % | — | — | 9.16 | % | ||||||||||||||||||||||||
Class Y | 15.54 | % | 14.37 | % | 8.21 | % | — | — | 17.32 | % | 15.44 | % | 7.84 | % | — | — | ||||||||||||||||||||||||
S&P 500 Index3 | 14.56 | % | 13.88 | % | 7.10 | % | 3.93 | % | 9.29 | % | 16.44 | % | 15.45 | % | 6.57 | % | 3.78 | % | 9.14 | % | ||||||||||||||||||||
S&P 500 Dividend Only Stocks Index4 | 13.57 | % | 13.37 | % | 7.61 | % | 5.11 | % | — | 15.93 | % | 14.79 | % | 7.16 | % | 5.04 | % | — |
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
1 | Mutual fund investing involves risk; principal loss is possible. |
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. | |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 5.50% for Class A shares and the contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV. | |
Investment performance reflects fee waivers that were in effect during the periods indicated. In the absence of such fee waivers, total returns would be reduced. | |
As of the most recent prospectus, the fund’s total annual operating expense ratio for Class A, Class B, Class C, Class R, and Class Y shares was 1.16%, 1.91%, 1.91%, 1.41%, and 0.91%, respectively. |
* | This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period. |
Value of $10,000 Investment1,2,5 as of October 31, 2007
Equity Income Fund, Class A (NAV) | ![]() | $ | 21,416 | |||||
Equity Income Fund, Class A (POP) | ![]() | $ | 20,244 | |||||
S&P 500 Index3 | ![]() | $ | 19,860 | |||||
S&P 500 Dividend Only Stocks Index4 | ![]() | $ | 20,831 | |||||
The chart at right illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 10/31/1997 to 10/31/2007) as compared to the S&P 500 Index3 and the S&P 500 Dividend Only Stocks Index4. |
![(EQUITY INCOME FUND LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950137-08-000175/c21990c2194813.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
3 | An unmanaged market capitalization-weighted index based on the average weighted performance of 500 widely held common stocks. |
4 | The S&P 500 Dividend Only Stocks Index custom benchmark is composed of companies in the S&P 500 Index that have an indicated annual dividend. |
5 | Performance for Class B, Class C, Class R, and Class Y shares is not presented. Performance for these classes will vary due to the different expense structures. |
34 First American Funds 2007 Annual Report
Table of Contents
Expense Examples
As a shareholder of one or more of the funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. The examples below are intended to help you understand your ongoing costs (in dollars) of investing in the funds and to compare these costs with the ongoing costs of investing in other mutual funds. The examples are based on an investment of $1,000 invested in a fund at the beginning of the period and held for the entire period from May 1, 2007 to October 31, 2007.
Actual Expenses
For each class of each fund, two lines are presented in the table below — the first line for each class provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular fund and class, to estimate the expenses that you paid over the period. Simply divide your account value in the fund and class by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” for your fund and class to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
For each class of each fund, the second line for each class provides information about hypothetical account values and hypothetical expenses based on the respective fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical examples with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the tables for each class of each fund is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Real Estate Securities Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (5/01/07 to | ||||||||||
Value (5/01/07) | Value (10/31/07) | 10/31/07) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 948.70 | $ | 5.99 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.06 | $ | 6.21 | ||||||
Class B Actual2 | $ | 1,000.00 | $ | 944.70 | $ | 9.66 | ||||||
Class B Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.27 | $ | 10.01 | ||||||
Class C Actual2 | $ | 1,000.00 | $ | 944.90 | $ | 9.66 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.27 | $ | 10.01 | ||||||
Class R Actual2 | $ | 1,000.00 | $ | 947.60 | $ | 7.22 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.80 | $ | 7.48 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 949.60 | $ | 4.77 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.32 | $ | 4.94 |
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 1.22%, 1.97%, 1.97%, 1.47%, and 0.97% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
2 | Based on the actual returns for the six-month period ended October 31, 2007 of -5.13%, -5.53%, -5.51%, -5.24%, and -5.04% for Class A, Class B, Class C, Class R and Class Y, respectively. |
First American Funds 2007 Annual Report 35
Table of Contents
Expense Examples continued
International Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (5/01/07 to | ||||||||||
Value (5/01/07) | Value (10/31/07) | 10/31/07) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 1,078.60 | $ | 7.81 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.69 | $ | 7.58 | ||||||
Class B Actual2 | $ | 1,000.00 | $ | 1,074.20 | $ | 11.71 | ||||||
Class B Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,013.91 | $ | 11.37 | ||||||
Class C Actual2 | $ | 1,000.00 | $ | 1,074.90 | $ | 11.71 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,013.91 | $ | 11.37 | ||||||
Class R Actual2 | $ | 1,000.00 | $ | 1,077.20 | $ | 9.11 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,016.43 | $ | 8.84 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 1,080.20 | $ | 6.50 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.95 | $ | 6.31 |
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 1.49%, 2.24%, 2.24%, 1.74%, and 1.24% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
2 | Based on the actual returns for the six-month period ended October 31, 2007 of 7.86%, 7.42%, 7.49%, 7.72%, and 8.02% for Class A, Class B, Class C, Class R, and Class Y, respectively. |
International Select Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period3 (5/01/07 to | ||||||||||
Value (5/01/07) | Value (10/31/07) | 10/31/07) | ||||||||||
Class A Actual4 | $ | 1,000.00 | $ | 1,120.80 | $ | 7.96 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.69 | $ | 7.58 | ||||||
Class B Actual4 | $ | 1,000.00 | $ | 1,116.60 | $ | 11.95 | ||||||
Class B Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,013.91 | $ | 11.37 | ||||||
Class C Actual4 | $ | 1,000.00 | $ | 1,116.60 | $ | 11.95 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,013.91 | $ | 11.37 | ||||||
Class R Actual4 | $ | 1,000.00 | $ | 1,119.10 | $ | 9.29 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,016.43 | $ | 8.84 | ||||||
Class Y Actual4 | $ | 1,000.00 | $ | 1,122.70 | $ | 6.63 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.95 | $ | 6.31 |
3 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 1.49%, 2.24%, 2.24%, 1.74%, and 1.24% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
4 | Based on the actual returns for the six-month period ended October 31, 2007 of 12.08%, 11.66%, 11.66%, 11.91%, and 12.27% for Class A, Class B, Class C, Class R and Class Y, respectively. |
36 First American Funds 2007 Annual Report
Table of Contents
Small Cap Growth Opportunities Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (5/01/07 to | ||||||||||
Value (5/01/07) | Value (10/31/07) | 10/31/07) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 1,048.90 | $ | 7.54 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.85 | $ | 7.43 | ||||||
Class B Actual2 | $ | 1,000.00 | $ | 1,045.40 | $ | 11.39 | ||||||
Class B Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,014.06 | $ | 11.22 | ||||||
Class C Actual2 | $ | 1,000.00 | $ | 1,045.10 | $ | 11.39 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,014.06 | $ | 11.22 | ||||||
Class R Actual2 | $ | 1,000.00 | $ | 1,047.80 | $ | 8.83 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,016.59 | $ | 8.69 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 1,050.20 | $ | 6.25 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.11 | $ | 6.16 |
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 1.46%, 2.21%, 2.21%, 1.71%, and 1.21% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
2 | Based on the actual returns for the six-month period ended October 31, 2007 of 4.89%, 4.54%, 4.51%, 4.78%, and 5.02% for Class A, Class B, Class C, Class R, and Class Y, respectively. |
Small Cap Select Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period3 (5/01/07 to | ||||||||||
Value (5/01/07) | Value (10/31/07) | 10/31/07) | ||||||||||
Class A Actual4 | $ | 1,000.00 | $ | 1,014.40 | $ | 6.25 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.00 | $ | 6.26 | ||||||
Class B Actual4 | $ | 1,000.00 | $ | 1,010.50 | $ | 10.03 | ||||||
Class B Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.22 | $ | 10.06 | ||||||
Class C Actual4 | $ | 1,000.00 | $ | 1,010.80 | $ | 10.04 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.22 | $ | 10.06 | ||||||
Class R Actual4 | $ | 1,000.00 | $ | 1,013.20 | $ | 7.51 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.74 | $ | 7.53 | ||||||
Class Y Actual4 | $ | 1,000.00 | $ | 1,016.20 | $ | 4.98 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.27 | $ | 4.99 |
3 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 1.23%, 1.98%, 1.98%, 1.48%, and 0.98% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
4 | Based on the actual returns for the six-month period ended October 31, 2007 of 1.44%, 1.05%, 1.08%, 1.32%, and 1.62% for Class A, Class B, Class C, Class R, and Class Y, respectively. |
First American Funds 2007 Annual Report 37
Table of Contents
Expense Examples continued
Small Cap Value Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (5/01/07 to | ||||||||||
Value (5/01/07) | Value (10/31/07) | 10/31/07) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 995.60 | $ | 6.34 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.85 | $ | 6.41 | ||||||
Class B Actual2 | $ | 1,000.00 | $ | 991.70 | $ | 10.09 | ||||||
Class B Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.07 | $ | 10.21 | ||||||
Class C Actual2 | $ | 1,000.00 | $ | 991.90 | $ | 10.09 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.07 | $ | 10.21 | ||||||
Class R Actual2 | $ | 1,000.00 | $ | 994.00 | $ | 7.59 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.59 | $ | 7.68 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 996.40 | $ | 5.08 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.11 | $ | 5.14 |
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 1.26%, 2.01%, 2.01%, 1.51%, and 1.01% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
2 | Based on the actual returns for the six-month period ended October 31, 2007 of -0.44%, -0.83%, -0.81%, -0.60%, and -0.36% for Class A, Class B, Class C, Class R, and Class Y, respectively. |
Small-Mid Cap Core Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period3 (5/01/07 to | ||||||||||
Value (5/01/07) | Value (10/31/07) | 10/31/07) | ||||||||||
Class A Actual4 | $ | 1,000.00 | $ | 1,022.10 | $ | 7.19 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.10 | $ | 7.17 | ||||||
Class B Actual4 | $ | 1,000.00 | $ | 1,018.80 | $ | 10.99 | ||||||
Class B Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,014.32 | $ | 10.97 | ||||||
Class C Actual4 | $ | 1,000.00 | $ | 1,018.30 | $ | 10.99 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,014.32 | $ | 10.97 | ||||||
Class Y Actual4 | $ | 1,000.00 | $ | 1,024.00 | $ | 5.92 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.36 | $ | 5.90 |
3 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 1.41%, 2.16%, 2.16%, and 1.16% for Class A, Class B, Class C, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
4 | Based on the actual returns for the six-month period ended October 31, 2007 of 2.21%, 1.88%, 1.83%, and 2.40% for Class A, Class B, Class C, and Class Y, respectively. |
38 First American Funds 2007 Annual Report
Table of Contents
Mid Cap Growth Opportunities Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (5/01/07 to | ||||||||||
Value (5/01/07) | Value (10/31/07) | 10/31/07) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 1,103.60 | $ | 6.42 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.11 | $ | 6.16 | ||||||
Class B Actual2 | $ | 1,000.00 | $ | 1,099.20 | $ | 10.37 | ||||||
Class B Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.32 | $ | 9.96 | ||||||
Class C Actual2 | $ | 1,000.00 | $ | 1,099.10 | $ | 10.37 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.32 | $ | 9.96 | ||||||
Class R Actual2 | $ | 1,000.00 | $ | 1,102.10 | $ | 7.74 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.85 | $ | 7.43 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 1,104.90 | $ | 5.09 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.37 | $ | 4.89 |
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 1.21%, 1.96%, 1.96%, 1.46%, and 0.96% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
2 | Based on the actual returns for the six-month period ended October 31, 2007 of 10.36%, 9.92%, 9.91%, 10.21%, and 10.49% for Class A, Class B, Class C, Class R, and Class Y, respectively. |
Mid Cap Value Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period3 (5/01/07 to | ||||||||||
Value (5/01/07) | Value (10/31/07) | 10/31/07) | ||||||||||
Class A Actual4 | $ | 1,000.00 | $ | 1,010.10 | $ | 6.18 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.06 | $ | 6.21 | ||||||
Class B Actual4 | $ | 1,000.00 | $ | 1,006.50 | $ | 9.96 | ||||||
Class B Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.27 | $ | 10.01 | ||||||
Class C Actual4 | $ | 1,000.00 | $ | 1,006.30 | $ | 9.96 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.27 | $ | 10.01 | ||||||
Class R Actual4 | $ | 1,000.00 | $ | 1,008.60 | $ | 7.44 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.80 | $ | 7.48 | ||||||
Class Y Actual4 | $ | 1,000.00 | $ | 1,011.30 | $ | 4.92 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.32 | $ | 4.94 |
3 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 1.22%, 1.97%, 1.97%, 1.47%, and 0.97% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
4 | Based on the actual returns for the six-month period ended October 31, 2007 of 1.01%, 0.65%, 0.63%, 0.86%, and 1.13% for Class A, Class B, Class C, Class R, and Class Y, respectively. |
First American Funds 2007 Annual Report 39
Table of Contents
Expense Examples continued
Large Cap Growth Opportunities Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (5/01/07 to | ||||||||||
Value (5/01/07) | Value (10/31/07) | 10/31/07) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 1,146.70 | $ | 6.38 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.26 | $ | 6.01 | ||||||
Class B Actual2 | $ | 1,000.00 | $ | 1,142.50 | $ | 10.42 | ||||||
Class B Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.48 | $ | 9.80 | ||||||
Class C Actual2 | $ | 1,000.00 | $ | 1,142.60 | $ | 10.42 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.48 | $ | 9.80 | ||||||
Class R Actual2 | $ | 1,000.00 | $ | 1,145.20 | $ | 7.73 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.00 | $ | 7.27 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 1,148.20 | $ | 5.04 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.52 | $ | 4.74 |
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 1.18%, 1.93%, 1.93%, 1.43%, and 0.93% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
2 | Based on the actual returns for the six-month period ended October 31, 2007 of 14.67%, 14.25%, 14.26%, 14.52%, and 14.82% for Class A, Class B, Class C, Class R, and Class Y, respectively. |
Large Cap Select Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period3 (5/01/07 to | ||||||||||
Value (5/01/07) | Value (10/31/07) | 10/31/07) | ||||||||||
Class A Actual4 | $ | 1,000.00 | $ | 1,068.30 | $ | 6.20 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.21 | $ | 6.06 | ||||||
Class B Actual4 | $ | 1,000.00 | $ | 1,064.40 | $ | 10.09 | ||||||
Class B Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.43 | $ | 9.86 | ||||||
Class C Actual4 | $ | 1,000.00 | $ | 1,064.40 | $ | 10.09 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.43 | $ | 9.86 | ||||||
Class R Actual4 | $ | 1,000.00 | $ | 1,067.30 | $ | 7.50 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.95 | $ | 7.32 | ||||||
Class Y Actual4 | $ | 1,000.00 | $ | 1,069.80 | $ | 4.90 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.47 | $ | 4.79 |
3 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 1.19%, 1.94%, 1.94%, 1.44%, and 0.94% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
4 | Based on the actual returns for the six-month period ended October 31, 2007 of 6.83%, 6.44%, 6.44%, 6.73%, and 6.98% for Class A, Class B, Class C, Class R, and Class Y, respectively. |
40 First American Funds 2007 Annual Report
Table of Contents
Large Cap Value Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (5/01/07 to | ||||||||||
Value (5/01/07) | Value (10/31/07) | 10/31/07) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 1,038.00 | $ | 6.01 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.31 | $ | 5.96 | ||||||
Class B Actual2 | $ | 1,000.00 | $ | 1,034.40 | $ | 9.85 | ||||||
Class B Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.53 | $ | 9.75 | ||||||
Class C Actual2 | $ | 1,000.00 | $ | 1,033.90 | $ | 9.84 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.53 | $ | 9.75 | ||||||
Class R Actual2 | $ | 1,000.00 | $ | 1,036.30 | $ | 7.29 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.05 | $ | 7.22 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 1,039.20 | $ | 4.73 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.57 | $ | 4.69 |
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 1.17%, 1.92%, 1.92%, 1.42%, and 0.92% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
2 | Based on the actual returns for the six-month period ended October 31, 2007 of 3.80%, 3.44%, 3.39%, 3.63%, and 3.92% for Class A, Class B, Class C, Class R, and Class Y, respectively. |
Balanced Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period3 (5/01/07 to | ||||||||||
Value (5/01/07) | Value (10/31/07) | 10/31/07) | ||||||||||
Class A Actual4 | $ | 1,000.00 | $ | 1,049.60 | $ | 5.63 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.71 | $ | 5.55 | ||||||
Class B Actual4 | $ | 1,000.00 | $ | 1,045.80 | $ | 9.49 | ||||||
Class B Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.93 | $ | 9.35 | ||||||
Class C Actual4 | $ | 1,000.00 | $ | 1,045.90 | $ | 9.54 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.88 | $ | 9.40 | ||||||
Class R Actual4 | $ | 1,000.00 | $ | 1,048.10 | $ | 6.97 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.40 | $ | 6.87 | ||||||
Class Y Actual4 | $ | 1,000.00 | $ | 1,050.80 | $ | 4.34 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.97 | $ | 4.28 |
3 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 1.09%, 1.84%, 1.85%, 1.35%, and 0.84% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
4 | Based on the actual returns for the six-month period ended October 31, 2007 of 4.96%, 4.58%, 4.59%, 4.81%, and 5.08% for Class A, Class B, Class C, Class R, and Class Y, respectively. |
First American Funds 2007 Annual Report 41
Table of Contents
Expense Examples continued
Equity Income Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (5/01/07 to | ||||||||||
Value (5/01/07) | Value (10/31/07) | 10/31/07) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 1,067.80 | $ | 6.05 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.36 | $ | 5.90 | ||||||
Class B Actual2 | $ | 1,000.00 | $ | 1,063.40 | $ | 9.93 | ||||||
Class B Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.58 | $ | 9.70 | ||||||
Class C Actual2 | $ | 1,000.00 | $ | 1,063.30 | $ | 9.93 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.58 | $ | 9.70 | ||||||
Class R Actual2 | $ | 1,000.00 | $ | 1,066.60 | $ | 7.34 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.10 | $ | 7.17 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 1,068.70 | $ | 4.74 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.62 | $ | 4.63 |
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 1.16%, 1.91%, 1.91%, 1.41%, and 0.91% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
2 | Based on the actual returns for the six-month period ended October 31, 2007 of 6.78%, 6.34%, 6.33%, 6.66%, and 6.87% for Class A, Class B, Class C, Class R, and Class Y, respectively. |
42 First American Funds 2007 Annual Report
Table of Contents
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Directors
First American Investment Funds, Inc.
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of the Real Estate Securities, International, International Select, Small Cap Growth Opportunities, Small Cap Select, Small Cap Value, Small-Mid Cap Core, Mid Cap Growth Opportunities, Mid Cap Value, Large Cap Growth Opportunities, Large Cap Select, Large Cap Value, Balanced, and Equity Income Funds (series of First American Investment Funds, Inc.) (collectively, the “funds”) as of October 31, 2007, and the related statements of operations, statements of changes in net assets and financial highlights for each of the periods indicated therein. These financial statements and financial highlights are the responsibility of the funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the funds’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2007 by correspondence with the custodians and brokers, or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the funds listed above of the First American Investment Funds, Inc. at October 31, 2007, the results of their operations, changes in their net assets and the financial highlights for the periods indicated therein, in conformity with U.S. generally accepted accounting principles.
![-s- Ernst & Young LLP](https://capedge.com/proxy/N-CSR/0000950137-08-000175/c21990ernstyo.gif)
Minneapolis, Minnesota
December 19, 2007
First American Funds 2007 Annual Report 43
Table of Contents
Schedule of Investments October 31, 2007, all dollars are rounded to thousands (000)
Real Estate Securities Fund | |||||||||
DESCRIPTION | SHARES | VALUE | |||||||
Real Estate Common Stocks (a) – 96.3% | |||||||||
Apartments – 14.3% | |||||||||
American Campus Communities (b) | 373,625 | $ | 10,626 | ||||||
Associated Estates Realty (b) | 317,740 | 3,857 | |||||||
Avalonbay Communities (b) (c) | 160,127 | 19,640 | |||||||
Boardwalk Real Estate (b) (d) | 207,443 | 9,585 | |||||||
BRE Properties (b) | 45,971 | 2,519 | |||||||
Camden Property Trust (b) | 227,357 | 14,176 | |||||||
Equity Residential Properties Trust (b) (c) | 514,724 | 21,505 | |||||||
Essex Property Trust (b) (c) | 122,658 | 15,140 | |||||||
Home Properties (b) (c) | 187,421 | 9,637 | |||||||
Mid-America Apartment Communities (b) (c) | 134,477 | 6,993 | |||||||
UDR, Inc. (b) (c) | 623,385 | 14,799 | |||||||
128,477 | |||||||||
Community Centers – 9.8% | |||||||||
Agree Realty (b) | 42,845 | 1,387 | |||||||
Developers Diversified Realty (b) (c) | 444,491 | 22,402 | |||||||
Federal Realty Investment Trust (b) (c) | 182,369 | 16,089 | |||||||
Kimco Realty (b) (c) | 568,848 | 23,619 | |||||||
Kite Realty Group Trust (b) | 78,530 | 1,423 | |||||||
Regency Centers (b) (c) | 297,926 | 21,296 | |||||||
Saul Centers (b) | 37,983 | 2,082 | |||||||
88,298 | |||||||||
Diversified – 6.2% | |||||||||
Cousins Properties (b) (c) | 30,475 | 877 | |||||||
Forest City Enterprises, Class A (c) | 218,407 | 12,432 | |||||||
Vornado Realty Trust (b) (c) | 376,598 | 42,074 | |||||||
55,383 | |||||||||
Healthcare – 6.1% | |||||||||
Brookdale Senior Living (c) | 253,874 | 9,366 | |||||||
Capital Senior Living (c) (e) | 758,196 | 6,778 | |||||||
HCP, Inc. (b) (c) | 128,564 | 4,376 | |||||||
Health Care REIT (b) (c) | 123,439 | 5,467 | |||||||
Healthcare Realty Trust (b) | 66,422 | 1,756 | |||||||
Nationwide Health Properties (b) (c) | 167,363 | 5,225 | |||||||
OMEGA Healthcare Investors (b) (c) | 36,485 | 611 | |||||||
Skilled Healthcare Group, Class A (e) | 264,851 | 4,338 | |||||||
Ventas (b) (c) | 388,390 | 16,658 | |||||||
54,575 | |||||||||
Hotels – 11.9% | |||||||||
Ashford Hospitality Trust (b) (c) | 90,526 | 891 | |||||||
Gaylord Entertainment (c) | 134,637 | 7,335 | |||||||
Hersha Hospitality Trust (b) (c) | 530,992 | 5,740 | |||||||
Host Marriott (b) (c) | 1,758,657 | 38,972 | |||||||
LaSalle Hotel Properties (b) (c) | 348,740 | 14,410 | |||||||
Marcus (c) | 26,601 | 512 | |||||||
Marriott International, Class A | 857,672 | 35,259 | |||||||
Red Lion Hotels (e) | 225,817 | 2,217 | |||||||
Strategic Hotels & Resorts (b) | 82,413 | 1,800 | |||||||
Sunstone Hotel Investors (b) | 13,001 | 361 | |||||||
107,497 | |||||||||
Industrials – 10.3% | |||||||||
AMB Property (b) (c) | 77,702 | 5,078 | |||||||
DCT Industrial Trust (b) (c) | 122,992 | 1,319 | |||||||
EastGroup Properties (b) (c) | 405,909 | 19,354 | |||||||
Prologis (b) (c) | 639,756 | 45,896 | |||||||
PS Business Parks (b) | 364,627 | 21,258 | |||||||
92,905 | |||||||||
International – 0.6% | |||||||||
Eurocommercial Properties (b) (d) | 79,423 | 4,680 | |||||||
Kamigumi (d) | 24,734 | 201 | |||||||
Mapletree Logistics Trust (b) (d) | 281,083 | 233 | |||||||
Mitsubishi Logistics (d) | 30,444 | 437 | |||||||
5,551 | |||||||||
Malls – 14.0% | |||||||||
CBL & Associates Properties (b) | 75,128 | 2,487 | |||||||
General Growth Properties (b) (c) | 404,333 | 21,980 | |||||||
Macerich (b) (c) | 297,141 | 25,468 | |||||||
Pennsylvania (b) | 165,456 | 6,312 | |||||||
Simon Property Group (b) (c) | 650,921 | 67,767 | |||||||
Taubman Centers (b) (c) | 30,688 | 1,807 | |||||||
125,821 | |||||||||
Manufactured Homes – 0.3% | |||||||||
Equity Lifestyle Properties (b) (c) | 52,287 | 2,627 | |||||||
Mortgage – 0.3% | |||||||||
iStar Financial (b) (c) | 78,337 | 2,390 | |||||||
Net Lease – 0.4% | |||||||||
Entertainment Properties Trust (b) (c) | 28,198 | 1,547 | |||||||
National Retail Properties (b) (c) | 25,600 | 649 | |||||||
Realty Income (b) (c) | 48,552 | 1,434 | |||||||
3,630 | |||||||||
Office – 17.2% | |||||||||
Alexandria Real Estate Equities (b) (c) | 39,864 | 4,112 | |||||||
BioMed Realty Trust (b) (c) | 324,186 | 7,745 | |||||||
Boston Properties (b) (c) | 333,529 | 36,134 | |||||||
Brandywine Realty Trust (b) (c) | 140,293 | 3,629 | |||||||
Brookfield Asset Management, Class A (c) | 22,151 | 904 | |||||||
Brookfield Properties | 365,929 | 9,137 | |||||||
Cogdell Spencer (b) | 451,398 | 7,737 | |||||||
Corporate Office Properties Trust (b) (c) | 179,840 | 7,433 | |||||||
Digital Realty Trust (b) (c) | 74,200 | 3,264 | |||||||
Duke Realty (b) (c) | 806,256 | 25,921 | |||||||
Dupont Fabros Technology (b) (c) (e) | 325,301 | 6,987 | |||||||
Highwoods Properties (b) (c) | 192,268 | 6,914 | |||||||
Kilroy Realty (b) (c) | 54,393 | 3,538 | |||||||
Mack-Cali Realty (b) | 21,400 | 847 | |||||||
SL Green Realty (b) (c) | 255,193 | 30,792 | |||||||
155,094 | |||||||||
Real Estate Service Provider – 0.3% | |||||||||
HFF, Inc. (e) | 286,110 | 2,875 | |||||||
Self Storage – 4.5% | |||||||||
Extra Space Storage (b) (c) | 180,270 | 2,834 | |||||||
Public Storage (b) (c) | 470,017 | 38,057 | |||||||
40,891 | |||||||||
Student Housing – 0.1% | |||||||||
Education Realty Trust (b) | 52,294 | 677 | |||||||
Total Real Estate Common Stocks | |||||||||
(Cost $697,853) | 866,691 | ||||||||
Investment Companies – 2.3% | |||||||||
Macquarie Global Infrastructure Total Return Fund (c) | 308,039 | 9,697 | |||||||
Macquarie/ First Trust Global Infrastructure/ Utilities Dividend & Income Fund (c) | 97,413 | 2,703 | |||||||
Seligman Lasalle International Real Estate (c) | 59,694 | 1,189 | |||||||
SPDR Macquarie Global Infrastructure 100 Index (c) (e) | 112,436 | 6,924 | |||||||
Total Investment Companies | |||||||||
(Cost $18,336) | 20,513 | ||||||||
The accompanying notes are an integral part of the financial statements.
44 First American Funds 2007 Annual Report
Table of Contents
Real Estate Securities Fund (concluded) | |||||||||
DESCRIPTION | SHARES | VALUE | |||||||
Private Real Estate Companies (a) – 0.0% | |||||||||
Beacon Capital (e) (f) (g) | 33,750 | $ | 3 | ||||||
Newcastle Investment Holdings (e) (f) (g) | 35,000 | 66 | |||||||
Total Private Real Estate Companies | |||||||||
(Cost $588) | 69 | ||||||||
Short-Term Investment – 0.7% | |||||||||
First American Prime Obligations Fund, Class Z (h) | |||||||||
(Cost $6,284) | 6,283,982 | 6,284 | |||||||
Investment Purchased with Proceeds from Securities Lending – 46.5% | |||||||||
Mount Vernon Securities Lending Prime Portfolio (i) | |||||||||
(Cost $418,293) | 418,292,504 | 418,293 | |||||||
Total Investments – 145.8% | |||||||||
(Cost $1,141,354) | 1,311,850 | ||||||||
Other Assets and Liabilities, Net – (45.8)% | (411,883 | ) | |||||||
Total Net Assets – 100.0% | $ | 899,967 | |||||||
(a) | The fund is primarily invested in the Real Estate sector and therefore is subject to additional risks. See notes 1 and 7 in Notes to Financial Statements. |
(b) | Real Estate Investment Trust. As of October 31, 2007, the market value of these investments was $774,900, or 86.1% of total net assets. |
(c) | This security or a portion of this security is out on loan at October 31, 2007. Total loaned securities had a market value of $412,574 at October 31, 2007. See note 2 in Notes to Financial Statements. |
(d) | Foreign denominated security values stated in U.S. dollars. |
(e) | Non-income producing security. |
(f) | Security is considered illiquid or restricted. As of October 31, 2007, the value of these investments was $69 or 0.0% of total net assets. See note 2 in Notes to Financial Statements. |
(g) | Security is fair valued. As of October 31, 2007, the value of these investments was $69 or 0.0% of total net assets. See note 2 in Notes to Financial Statements. |
(h) | 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. |
(i) | The fund may loan securities representing up to one third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks, or other institutional borrowers of securities. The fund maintains collateral equal to at least 100% of the value of the securities loaned. The adequacy of the collateral is monitored on a daily basis. The cash collateral received by the fund is invested in this affiliated money market fund. See note 2 in Notes to Financial Statements. |
REIT – | Real Estate Investment Trust |
First American Funds 2007 Annual Report 45
Table of Contents
Statement of Assets and Liabilities October 31, 2007, all dollars and shares are rounded to thousands (000), except per share data
Real Estate | |||||||
Securities Fund | |||||||
Investments in unaffiliated securities, at cost | $ | 716,777 | |||||
Investment in affiliated money market fund, at cost | 6,284 | ||||||
Affiliated investment purchased with proceeds from securities lending, at cost (note 2) | 418,293 | ||||||
ASSETS: | |||||||
Investments in unaffiliated securities, at value* (note 2) | $ | 887,273 | |||||
Investment in affiliated money market fund, at value (note 2) | 6,284 | ||||||
Affiliated investment purchased with proceeds from securities lending, at value (note 2) | 418,293 | ||||||
Receivable for dividends and interest | 507 | ||||||
Receivable for investment securities sold | 42,999 | ||||||
Receivable for capital shares sold | 1,147 | ||||||
Prepaid expenses and other assets | 43 | ||||||
Total assets | 1,356,546 | ||||||
LIABILITIES: | |||||||
Payable for investment securities purchased | 32,685 | ||||||
Payable upon return of securities loaned (note 2) | 418,293 | ||||||
Payable for capital shares redeemed | 4,784 | ||||||
Payable to affiliates (note 3) | 729 | ||||||
Payable for distribution and shareholder servicing fees | 73 | ||||||
Accrued expenses and other liabilities | 15 | ||||||
Total liabilities | 456,579 | ||||||
Net assets | $ | 899,967 | |||||
COMPOSITION OF NET ASSETS: | |||||||
Portfolio capital | $ | 647,669 | |||||
Distributions in excess of net investment income | (7 | ) | |||||
Accumulated net realized gain on investments | 81,809 | ||||||
Net unrealized appreciation of investments | 170,496 | ||||||
Net assets | $ | 899,967 | |||||
* Including securities loaned, at value | $ | 412,574 | |||||
Class A: | |||||||
Net assets | $ | 203,101 | |||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 8,467 | ||||||
Net asset value and redemption price per share | $ | 23.99 | |||||
Maximum offering price per share1 | $ | 25.39 | |||||
Class B: | |||||||
Net assets | $ | 7,391 | |||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 314 | ||||||
Net asset value, offering price, and redemption price per share2 | $ | 23.53 | |||||
Class C: | |||||||
Net assets | $ | 18,403 | |||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 779 | ||||||
Net asset value, offering price, and redemption price per share2 | $ | 23.62 | |||||
Class R: | |||||||
Net assets | $ | 18,493 | |||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 764 | ||||||
Net asset value, offering price, and redemption price per share | $ | 24.20 | |||||
Class Y: | |||||||
Net assets | $ | 652,579 | |||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 26,983 | ||||||
Net asset value, offering price, and redemption price per share | $ | 24.18 | |||||
1 | The offering price is calculated by dividing the net asset value by 1 minus the maximum sales charge of 5.50%. | |
2 | Class B and C have a contingent deferred sales charge. For a description of this sales charge, see notes 1 and 3 in Notes to Financial Statements. |
The accompanying notes are an integral part of the financial statements.
46 First American Funds 2007 Annual Report
Table of Contents
Statement of Operations For the year ended October 31, 2007, all dollars are rounded to thousands (000)
Real Estate | |||||||
Securities Fund | |||||||
INVESTMENT INCOME: | |||||||
Dividends from unaffiliated securities | $ | 29,634 | |||||
Dividends from affiliated money market fund | 629 | ||||||
Less: Foreign taxes withheld | (64 | ) | |||||
Securities lending income | 608 | ||||||
Total investment income | 30,807 | ||||||
EXPENSES (note 3): | |||||||
Investment advisory fees | 6,986 | ||||||
Administration fees | 2,228 | ||||||
Transfer agent fees | 188 | ||||||
Custodian fees | 54 | ||||||
Professional fees | 43 | ||||||
Registration fees | 81 | ||||||
Postage and printing fees | 51 | ||||||
Directors’ fees | 21 | ||||||
Other expenses | 21 | ||||||
Distribution and shareholder servicing fees – Class A | 591 | ||||||
Distribution and shareholder servicing fees – Class B | 82 | ||||||
Distribution and shareholder servicing fees – Class C | 189 | ||||||
Distribution and shareholder servicing fees – Class R | 78 | ||||||
Total expenses | 10,613 | ||||||
Less: Fee waivers (note 3) | (12 | ) | |||||
Less: Indirect payments from custodian (note 3) | (3 | ) | |||||
Total net expenses | 10,598 | ||||||
Investment income – net | 20,209 | ||||||
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS – NET (note 5): | |||||||
Net realized gain on investments | 78,326 | ||||||
Net change in unrealized appreciation or depreciation of investments | (95,107 | ) | |||||
Net loss on investments | (16,781 | ) | |||||
Net increase in net assets resulting from operations | $ | 3,428 | |||||
First American Funds 2007 Annual Report 47
Table of Contents
Statements of Changes in Net Assets all dollars are rounded to thousands (000)
Real Estate | |||||||||||
Securities | |||||||||||
Fund | |||||||||||
Year Ended | Year Ended | ||||||||||
10/31/07 | 10/31/06 | ||||||||||
OPERATIONS: | |||||||||||
Investment income – net | $ | 20,209 | $ | 17,379 | |||||||
Net realized gain on unaffiliated investments | 78,326 | 98,123 | |||||||||
Net realized gain on affiliated investments | — | 755 | |||||||||
Net change in unrealized appreciation or depreciation of investments | (95,107 | ) | 169,252 | ||||||||
Net increase in net assets resulting from operations | 3,428 | 285,509 | |||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||
Investment income – net: | |||||||||||
Class A | (3,489 | ) | (4,468 | ) | |||||||
Class B | (76 | ) | (98 | ) | |||||||
Class C | (197 | ) | (122 | ) | |||||||
Class R | (229 | ) | (80 | ) | |||||||
Class Y | (11,675 | ) | (16,193 | ) | |||||||
Net realized gain on investments: | |||||||||||
Class A | (21,330 | ) | (16,449 | ) | |||||||
Class B | (722 | ) | (526 | ) | |||||||
Class C | (1,281 | ) | (558 | ) | |||||||
Class R | (931 | ) | (24 | ) | |||||||
Class Y | (65,821 | ) | (59,801 | ) | |||||||
Total distributions | (105,751 | ) | (98,319 | ) | |||||||
CAPITAL SHARE TRANSACTIONS (note 4): | |||||||||||
Class A: | |||||||||||
Proceeds from sales | 105,664 | 96,251 | |||||||||
Reinvestment of distributions | 22,640 | 20,510 | |||||||||
Payments for redemptions | (127,551 | ) | (64,650 | ) | |||||||
Increase in net assets from Class A transactions | 753 | 52,111 | |||||||||
Class B: | |||||||||||
Proceeds from sales | 3,037 | 2,324 | |||||||||
Reinvestment of distributions | 730 | 550 | |||||||||
Payments for redemptions (note 3) | (2,757 | ) | (1,261 | ) | |||||||
Increase in net assets from Class B transactions | 1,010 | 1,613 | |||||||||
Class C: | |||||||||||
Proceeds from sales | 16,692 | 6,990 | |||||||||
Reinvestment of distributions | 1,193 | 634 | |||||||||
Payments for redemptions (note 3) | (9,390 | ) | (1,722 | ) | |||||||
Increase in net assets from Class C transactions | 8,495 | 5,902 | |||||||||
Class R: | |||||||||||
Proceeds from sales | 23,035 | 9,837 | |||||||||
Reinvestment of distributions | 1,152 | 104 | |||||||||
Payments for redemptions | (13,301 | ) | (1,736 | ) | |||||||
Increase in net assets from Class R transactions | 10,886 | 8,205 | |||||||||
Class Y: | |||||||||||
Proceeds from sales | 200,077 | 184,391 | |||||||||
Reinvestment of distributions | 42,649 | 40,096 | |||||||||
Payments for redemptions | (275,626 | ) | (112,601 | ) | |||||||
Increase (decrease) in net assets from Class Y transactions | (32,900 | ) | 111,886 | ||||||||
Increase (decrease) in net assets from capital share transactions | (11,756 | ) | 179,717 | ||||||||
Total increase (decrease) in net assets | (114,079 | ) | 366,907 | ||||||||
Net assets at beginning of year | 1,014,046 | 647,139 | |||||||||
Net assets at end of year | $ | 899,967 | $ | 1,014,046 | |||||||
Distributions in excess of net investment income at end of year | $ | (7 | ) | $ | — | ||||||
The accompanying notes are an integral part of the financial statements.
48 First American Funds 2007 Annual Report
Table of Contents
(This page intentionally left blank.)
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 | ||||||||||||||||||||||||||||
Real Estate Securities Fund 1 | |||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||
2007 2 | $ | 26.49 | $ | 0.47 | $ | (0.24 | ) | $ | (0.36 | ) | $ | (2.37 | ) | $ | 23.99 | ||||||||||||||||||
2006 2 | 21.42 | 0.47 | 7.77 | (0.58 | ) | (2.59 | ) | 26.49 | |||||||||||||||||||||||||
2005 3 | 21.81 | 0.03 | (0.42 | ) | — | — | 21.42 | ||||||||||||||||||||||||||
2005 4 | 18.62 | 0.69 | 4.47 | (0.55 | ) | (1.42 | ) | 21.81 | |||||||||||||||||||||||||
2004 4 | 16.00 | 0.63 | 3.21 | (0.62 | ) | (0.60 | ) | 18.62 | |||||||||||||||||||||||||
2003 4 | 13.68 | 0.69 | 2.65 | (0.69 | ) | (0.33 | ) | 16.00 | |||||||||||||||||||||||||
Class B | |||||||||||||||||||||||||||||||||
2007 2 | $ | 26.08 | $ | 0.27 | $ | (0.22 | ) | $ | (0.23 | ) | $ | (2.37 | ) | $ | 23.53 | ||||||||||||||||||
2006 2 | 21.14 | 0.29 | 7.66 | (0.42 | ) | (2.59 | ) | 26.08 | |||||||||||||||||||||||||
2005 3 | 21.53 | 0.01 | (0.40 | ) | — | — | 21.14 | ||||||||||||||||||||||||||
2005 4 | 18.41 | 0.54 | 4.40 | (0.40 | ) | (1.42 | ) | 21.53 | |||||||||||||||||||||||||
2004 4 | 15.85 | 0.50 | 3.17 | (0.51 | ) | (0.60 | ) | 18.41 | |||||||||||||||||||||||||
2003 4 | 13.55 | 0.57 | 2.64 | (0.58 | ) | (0.33 | ) | 15.85 | |||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||
2007 2 | $ | 26.17 | $ | 0.26 | $ | (0.21 | ) | $ | (0.23 | ) | $ | (2.37 | ) | $ | 23.62 | ||||||||||||||||||
2006 2 | 21.21 | 0.28 | 7.70 | (0.43 | ) | (2.59 | ) | 26.17 | |||||||||||||||||||||||||
2005 3 | 21.61 | 0.01 | (0.41 | ) | — | — | 21.21 | ||||||||||||||||||||||||||
2005 4 | 18.47 | 0.54 | 4.42 | (0.40 | ) | (1.42 | ) | 21.61 | |||||||||||||||||||||||||
2004 4 | 15.89 | 0.50 | 3.19 | (0.51 | ) | (0.60 | ) | 18.47 | |||||||||||||||||||||||||
2003 4 | 13.62 | 0.59 | 2.62 | (0.61 | ) | (0.33 | ) | 15.89 | |||||||||||||||||||||||||
Class R 5 | |||||||||||||||||||||||||||||||||
2007 2 | $ | 26.72 | $ | 0.38 | $ | (0.21 | ) | $ | (0.32 | ) | $ | (2.37 | ) | $ | 24.20 | ||||||||||||||||||
2006 2 | 21.61 | 0.35 | 7.90 | (0.55 | ) | (2.59 | ) | 26.72 | |||||||||||||||||||||||||
2005 3 | 22.00 | 0.02 | (0.41 | ) | — | — | 21.61 | ||||||||||||||||||||||||||
2005 4 | 18.80 | 0.72 | 4.43 | (0.53 | ) | (1.42 | ) | 22.00 | |||||||||||||||||||||||||
2004 4 | 16.00 | 0.61 | 3.24 | (0.45 | ) | (0.60 | ) | 18.80 | |||||||||||||||||||||||||
2003 4 | 13.69 | 0.69 | 2.64 | (0.69 | ) | (0.33 | ) | 16.00 | |||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||
2007 2 | $ | 26.67 | $ | 0.53 | $ | (0.24 | ) | $ | (0.41 | ) | $ | (2.37 | ) | $ | 24.18 | ||||||||||||||||||
2006 2 | 21.54 | 0.53 | 7.82 | (0.63 | ) | (2.59 | ) | 26.67 | |||||||||||||||||||||||||
2005 3 | 21.92 | 0.03 | (0.41 | ) | — | — | 21.54 | ||||||||||||||||||||||||||
2005 4 | 18.71 | 0.74 | 4.49 | (0.60 | ) | (1.42 | ) | 21.92 | |||||||||||||||||||||||||
2004 4 | 16.06 | 0.69 | 3.22 | (0.66 | ) | (0.60 | ) | 18.71 | |||||||||||||||||||||||||
2003 4 | 13.73 | 0.73 | 2.66 | (0.73 | ) | (0.33 | ) | 16.06 | |||||||||||||||||||||||||
1 | Per share data calculated using average shares outstanding method. | |
2 | For the period November 1 to October 31 in the year indicated. | |
3 | For the period October 1, 2005 to October 31, 2005. Effective October 1, 2005, the fund’s fiscal year end was changed from September 30 to October 31. All ratios for the period have been annualized, except total return and portfolio turnover. | |
4 | For the period October 1 to September 30 in the year indicated. | |
5 | Prior to July 1, 2004, Class R shares were named Class S shares, which had lower fees and expenses. | |
6 | Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived. |
The accompanying notes are an integral part of the financial statements.
50 First American Funds 2007 Annual Report
Table of Contents
Ratio of Net | ||||||||||||||||||||||||||||||||||||
Ratio of | Investment | |||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses to | Income to | ||||||||||||||||||||||||||||||||||
Ratio of | Investment | Average | Average | |||||||||||||||||||||||||||||||||
Net Assets | Expenses to | Income | Net Assets | Net Assets | Portfolio | |||||||||||||||||||||||||||||||
Total | End of | Average | to Average | (Excluding | (Excluding | Turnover | ||||||||||||||||||||||||||||||
Return6 | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | ||||||||||||||||||||||||||||||
0.78 | % | $ | 203,101 | 1.22 | % | 1.87 | % | 1.22 | % | 1.87 | % | 210 | % | |||||||||||||||||||||||
43.25 | 228,186 | 1.23 | 2.06 | 1.23 | 2.06 | 161 | ||||||||||||||||||||||||||||||
(1.79 | ) | 133,339 | 1.23 | 1.48 | 1.23 | 1.48 | 11 | |||||||||||||||||||||||||||||
28.99 | 135,745 | 1.23 | 3.43 | 1.25 | 3.41 | 118 | ||||||||||||||||||||||||||||||
24.98 | 86,996 | 1.23 | 3.63 | 1.26 | 3.60 | 127 | ||||||||||||||||||||||||||||||
25.92 | 35,754 | 1.23 | 4.82 | 1.28 | 4.77 | 69 | ||||||||||||||||||||||||||||||
0.00 | % | $ | 7,391 | 1.97 | % | 1.12 | % | 1.97 | % | 1.12 | % | 210 | % | |||||||||||||||||||||||
42.17 | 7,288 | 1.98 | 1.30 | 1.98 | 1.30 | 161 | ||||||||||||||||||||||||||||||
(1.81 | ) | 4,419 | 1.98 | 0.74 | 1.98 | 0.74 | 11 | |||||||||||||||||||||||||||||
27.98 | 4,700 | 1.98 | 2.69 | 2.00 | 2.67 | 118 | ||||||||||||||||||||||||||||||
24.06 | 4,412 | 1.98 | 2.91 | 2.01 | 2.88 | 127 | ||||||||||||||||||||||||||||||
25.03 | 3,559 | 1.98 | 4.10 | 2.03 | 4.05 | 69 | ||||||||||||||||||||||||||||||
0.03 | % | $ | 18,403 | 1.97 | % | 1.06 | % | 1.97 | % | 1.06 | % | 210 | % | |||||||||||||||||||||||
42.16 | 12,281 | 1.98 | 1.25 | 1.98 | 1.25 | 161 | ||||||||||||||||||||||||||||||
(1.85 | ) | 4,669 | 1.98 | 0.75 | 1.98 | 0.75 | 11 | |||||||||||||||||||||||||||||
28.00 | 4,954 | 1.98 | 2.68 | 2.00 | 2.66 | 118 | ||||||||||||||||||||||||||||||
24.12 | 4,247 | 1.98 | 2.92 | 2.01 | 2.89 | 127 | ||||||||||||||||||||||||||||||
24.88 | 3,229 | 1.98 | 4.12 | 2.03 | 4.07 | 69 | ||||||||||||||||||||||||||||||
0.52 | % | $ | 18,493 | 1.47 | % | 1.52 | % | 1.47 | % | 1.52 | % | 210 | % | |||||||||||||||||||||||
42.87 | 9,423 | 1.48 | 1.50 | 1.60 | 1.38 | 161 | ||||||||||||||||||||||||||||||
(1.77 | ) | 57 | 1.48 | 1.23 | 1.63 | 1.08 | 11 | |||||||||||||||||||||||||||||
28.60 | 36 | 1.48 | 3.37 | 1.65 | 3.20 | 118 | ||||||||||||||||||||||||||||||
24.94 | 1 | 1.23 | 3.57 | 1.26 | 3.54 | 127 | ||||||||||||||||||||||||||||||
25.80 | 2,524 | 1.23 | 4.87 | 1.28 | 4.82 | 69 | ||||||||||||||||||||||||||||||
1.01 | % | $ | 652,579 | 0.97 | % | 2.12 | % | 0.97 | % | 2.12 | % | 210 | % | |||||||||||||||||||||||
43.58 | 756,868 | 0.98 | 2.31 | 0.98 | 2.31 | 161 | ||||||||||||||||||||||||||||||
(1.73 | ) | 504,655 | 0.98 | 1.74 | 0.98 | 1.74 | 11 | |||||||||||||||||||||||||||||
29.25 | 525,196 | 0.98 | 3.66 | 1.00 | 3.64 | 118 | ||||||||||||||||||||||||||||||
25.33 | 414,544 | 0.98 | 3.95 | 1.01 | 3.92 | 127 | ||||||||||||||||||||||||||||||
26.19 | 194,933 | 0.98 | 5.13 | 1.03 | 5.08 | 69 | ||||||||||||||||||||||||||||||
First American Funds 2007 Annual Report 51
Table of Contents
Schedule of Investments October 31, 2007, all dollars rounded to thousands (000)
International Fund | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Common Stocks – 99.2% | ||||||||
Australia – 2.6% | ||||||||
BHP Billiton (a) | 902,000 | $ | 39,277 | |||||
Rio Tinto | 51,482 | 5,344 | ||||||
44,621 | ||||||||
Belgium – 1.8% | ||||||||
Dexia | 520,000 | 16,742 | ||||||
Fortis | 477,600 | 15,345 | ||||||
32,087 | ||||||||
Brazil – 3.1% | ||||||||
Companhia Vale do Rio Doce – ADR (a) | 799,524 | 30,126 | ||||||
Petroleo Brasileiro – ADR | 243,350 | 23,272 | ||||||
53,398 | ||||||||
Egypt – 0.2% | ||||||||
Orascom Construction Industries – GDR | 20,223 | 3,669 | ||||||
Finland – 2.1% | ||||||||
Nokia Oyj | 906,665 | 36,008 | ||||||
France – 13.8% | ||||||||
Accor (a) | 188,100 | 18,021 | ||||||
Axa (a) | 767,432 | 34,470 | ||||||
BNP Paribas (a) | 252,089 | 27,939 | ||||||
Compagnie de Saint-Gobain (a) | 165,000 | 17,782 | ||||||
Imerys (a) | 169,400 | 16,504 | ||||||
Lafarge (a) | 136,670 | 22,341 | ||||||
Pernod-Ricard (a) | 87,700 | 20,309 | ||||||
Sanofi-Aventis | 234,700 | 20,645 | ||||||
Total (a) (b) | 780,260 | 62,964 | ||||||
240,975 | ||||||||
Germany – 6.6% | ||||||||
BASF (a) | 72,100 | 10,009 | ||||||
Deutsche Post | 411,000 | 12,448 | ||||||
E.ON | 135,900 | 26,600 | ||||||
Linde | 76,442 | 9,691 | ||||||
SAP (a) | 311,430 | 16,921 | ||||||
Siemens (a) | 217,260 | 29,667 | ||||||
Symrise (a) (b) | 291,154 | 8,703 | ||||||
114,039 | ||||||||
Great Britain – 20.4% | ||||||||
Barclays | 2,409,500 | 30,496 | ||||||
BG Group | 1,034,965 | 19,189 | ||||||
British Land | 330,000 | 7,466 | ||||||
Burberry Group | 984,600 | 12,633 | ||||||
Centrica | 1,430,542 | 10,995 | ||||||
GlaxoSmithKline | 1,325,000 | 34,034 | ||||||
ICAP | 1,502,514 | 18,346 | ||||||
Kingfisher | 3,010,521 | 12,390 | ||||||
Man Group | 1,260,400 | 15,489 | ||||||
Morrison Supermarket | 2,548,700 | 15,733 | ||||||
Rio Tinto PLC | 59,800 | 5,608 | ||||||
Smith & Nephew | 1,505,163 | 20,384 | ||||||
Standard Chartered | 967,000 | 37,611 | ||||||
Tesco | 3,831,979 | 38,981 | ||||||
Vodafone | 11,250,325 | 44,333 | ||||||
Wolseley | 950,000 | 16,523 | ||||||
WPP Group | 1,135,503 | 15,535 | ||||||
355,746 | ||||||||
Greece – 0.5% | ||||||||
Piraeus Bank | 207,900 | 8,371 | ||||||
Hong Kong – 4.3% | ||||||||
Esprit Holdings (a) | 1,158,300 | 19,345 | ||||||
HSBC (a) | 2,845,600 | 56,090 | ||||||
75,435 | ||||||||
Ireland – 0.7% | ||||||||
Bank of Ireland | 650,000 | 11,979 | ||||||
Italy – 4.9% | ||||||||
Banca Intesa (a) | 2,208,600 | 17,521 | ||||||
Eni (a) | 1,246,261 | 45,505 | ||||||
Unicredito Italiano | 2,603,900 | 22,400 | ||||||
85,426 | ||||||||
Japan – 18.6% | ||||||||
Astellas Pharma | 406,700 | 18,054 | ||||||
The Bank of Yokohama | 1,783,000 | 12,652 | ||||||
Canon | 363,300 | 18,383 | ||||||
Daikin Industries | 232,300 | 11,700 | ||||||
East Japan Railway | 1,438 | 11,845 | ||||||
Hirose Electric (a) | 71,000 | 8,514 | ||||||
Honda Motor | 213,900 | 8,010 | ||||||
Japan Tobacco | 1,565 | 9,122 | ||||||
KOMATSU | 165,200 | 5,539 | ||||||
Mitsubishi | 983,500 | 30,622 | ||||||
Mitsubishi UFJ Financial Group | 2,251,000 | 22,524 | ||||||
Mitsui Fudosan | 542,000 | 14,994 | ||||||
Mizuho Financial Group | 1,627 | 9,144 | ||||||
Nidec (a) | 248,000 | 18,634 | ||||||
Nippon Oil | 925 | 8 | ||||||
Nissan Motor | 1,133,500 | 13,004 | ||||||
Nitto Denko (a) | 205,800 | 10,047 | ||||||
Nomura Holdings | 512,800 | 9,138 | ||||||
Seven & I Holdings | 266,300 | 6,876 | ||||||
Shin-Etsu Chemical | 180,900 | 11,604 | ||||||
SMC | 100,400 | 13,449 | ||||||
Sony (a) | 412,500 | 20,372 | ||||||
Sumitomo | 1,297,200 | 22,602 | ||||||
Sumitomo Mitsui Financial Group (a) | 2,152 | 17,628 | ||||||
324,465 | ||||||||
Mexico – 0.4% | ||||||||
Fomento Economico Mexicano – ADR | 190,200 | 6,773 | ||||||
Netherlands – 4.0% | ||||||||
ING Group | 539,500 | 24,385 | ||||||
Philips Electronics | 397,000 | 16,425 | ||||||
Reed Elsevier | 762,124 | 14,812 | ||||||
Wolters Kluwer | 449,700 | 14,124 | ||||||
69,746 | ||||||||
South Korea – 0.6% | ||||||||
Samsung Electronics | 15,830 | 9,761 | ||||||
Spain – 1.9% | ||||||||
Banco Bilbano Vizcaya Argentaria (a) | 931,100 | 23,563 | ||||||
Industria de Diseno Textil | 125,500 | 9,384 | ||||||
32,947 | ||||||||
Switzerland – 12.0% | ||||||||
ABB | 883,500 | 26,708 | ||||||
Adecco (a) | 238,900 | 14,404 | ||||||
Holcim | 190,000 | 21,721 | ||||||
Nestle | 71,617 | 33,079 | ||||||
Novartis | 520,100 | 27,666 | ||||||
Roche | 163,600 | 27,943 |
The accompanying notes are an integral part of the financial statements.
52 First American Funds 2007 Annual Report
Table of Contents
International Fund (concluded) | |||||||||
DESCRIPTION | SHARES | VALUE | |||||||
UBS (b) | 661,700 | $ | 35,475 | ||||||
Zurich Financial Services | 71,800 | 21,679 | |||||||
208,675 | |||||||||
Taiwan – 0.7% | |||||||||
Taiwan Semiconductor Manufacturing – ADR | 1,187,999 | 12,652 | |||||||
Total Common Stocks | |||||||||
(Cost $1,148,650) | 1,726,773 | ||||||||
Short-Term Investment – 0.9% | |||||||||
State Street GA Prime Fund | |||||||||
(Cost $16,657) | 16,656,950 | 16,657 | |||||||
Investment Purchased with Proceeds from Securities Lending (c) – 14.7% | |||||||||
State Street Navigator Prime Fund | |||||||||
(Cost $256,617) | 256,617,349 | 256,617 | |||||||
Total Investments – 114.8% | |||||||||
(Cost $1,421,924) | 2,000,047 | ||||||||
Other Assets and Liabilities, Net – (14.8)% | (258,687 | ) | |||||||
Total Net Assets – 100.0% | $ | 1,741,360 | |||||||
(a) | This security or a portion of this security is out on loan at October 31, 2007. Total loaned securities had a value of $289,327 at October 31, 2007. See note 2 in Notes to Financial Statements. |
(b) | Non-income producing security. |
(c) | The fund may loan securities representing up to one third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks, or other institutional borrowers of securities. The fund maintains collateral equal to at least 100% of the value of the securities loaned. The adequacy of the collateral is monitored on a daily basis. The cash collateral received by the fund is invested as noted in the schedule above. In addition to the cash collateral received, the fund also received non-cash collateral consisting of U.S. government securities or other high-grade debt obligations with a total value at year-end of $46,793. See note 2 in Notes to Financial Statements. |
ADR – | American Depository Receipt |
GDR – | Global Depository Receipt |
At October 31, 2007, sector diversification of the fund was as follows:
% of | ||||||||
Net Assets | Value | |||||||
Financials* | 29.4 | % | $ | 511,447 | ||||
Industrials | 12.5 | 216,958 | ||||||
Consumer Discretionary | 10.5 | 182,758 | ||||||
Materials | 10.5 | 182,272 | ||||||
Energy | 9.3 | 161,933 | ||||||
Healthcare | 8.5 | 148,726 | ||||||
Consumer Staples | 7.5 | 130,873 | ||||||
Information Technology | 7.0 | 120,873 | ||||||
Telecommunication Services | 2.5 | 44,333 | ||||||
Utilities | 1.5 | 26,600 | ||||||
Total Foreign Common Stocks | 99.2 | 1,726,773 | ||||||
Total Short-Term Investment | 0.9 | 16,657 | ||||||
Total Investment Purchased with Proceeds from Securities Lending | 14.7 | 256,617 | ||||||
Total Investments | 114.8 | 2,000,047 | ||||||
Other Assets and Liabilities, Net | (14.8 | ) | (258,687 | ) | ||||
Net Assets | 100.0 | % | $ | 1,741,360 | ||||
* | The fund is significantly invested in this sector and therefore subject to additional risks. See note 7 in Notes to Financial Statements. |
First American Funds 2007 Annual Report 53
Table of Contents
Schedule of Investments October 31, 2007, all dollars are rounded to thousands (000)
International Select Fund | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Common Stocks – 90.7% | ||||||||
Australia – 2.4% | ||||||||
BHP Billiton | 55,115 | $ | 2,400 | |||||
National Australia Bank | 27,360 | 1,107 | ||||||
Rio Tinto | 23,990 | 2,490 | ||||||
Woodside Petroleum | 47,886 | 2,343 | ||||||
8,340 | ||||||||
Austria – 0.5% | ||||||||
Erste Bank der Oesterreichischen Sparkassen | 20,064 | 1,633 | ||||||
Bahrain – 0.1% | ||||||||
Investcorp Bank – ADR (a) | 12,700 | 343 | ||||||
Bermuda – 0.3% | ||||||||
Benfield Group | 167,790 | 1,063 | ||||||
Brazil – 5.6% | ||||||||
AES Tiete | 15,578,600 | 546 | ||||||
Banco Itau Holding Financeira – ADR | 56,647 | 1,617 | ||||||
Brasil Telecom – ADR | 5,500 | 409 | ||||||
Cia Vale do Rio Doce | 94,900 | 2,997 | ||||||
Companhia de Bebidas das Americas – ADR | 19,008 | 1,553 | ||||||
Companhia Energetica De Minas (a) | 30,900 | 662 | ||||||
Companhia Vale do Rio Doce – ADR | 73,691 | 2,777 | ||||||
Empresa Brasileira de Aeronautica – ADR | 23,200 | 1,132 | ||||||
Iochpe Maxion (a) | 28,700 | 604 | ||||||
JHSF Participacoes (a) | 73,500 | 348 | ||||||
Klabin | 175,000 | 719 | ||||||
Petroleo Brasileiro – ADR | 37,972 | 3,631 | ||||||
Redecard (a) | 45,230 | 941 | ||||||
Souza Cruz | 33,799 | 957 | ||||||
Tam – ADR | 22,100 | 652 | ||||||
19,545 | ||||||||
Canada – 2.2% | ||||||||
Cameco | 50,074 | 2,456 | ||||||
Gammon Gold (a) | 56,119 | 582 | ||||||
Manulife Financial | 56,162 | 2,606 | ||||||
Patheon (a) | 84,800 | 314 | ||||||
Suncor Energy | 15,034 | 1,642 | ||||||
7,600 | ||||||||
China – 0.5% | ||||||||
Focus Media Holdings – ADR (a) | 27,445 | 1,702 | ||||||
Denmark – 0.8% | ||||||||
Vestas Wind System (a) | 31,156 | 2,795 | ||||||
Egypt – 0.9% | ||||||||
Eastern Tobacco | 8,553 | 652 | ||||||
Mobinil | 1,300 | 46 | ||||||
Orascom Construction Industries (a) | 17,234 | 1,570 | ||||||
Orascom Telecom Holdings (a) | 57,100 | 817 | ||||||
3,085 | ||||||||
Finland – 0.4% | ||||||||
Nokia Oyj | 38,940 | 1,546 | ||||||
France – 6.7% | ||||||||
Alcatel-Lucent – ADR | 149,630 | 1,450 | ||||||
Axa | 33,331 | 1,497 | ||||||
BNP Paribas | 7,210 | 799 | ||||||
Carrefour | 24,890 | 1,799 | ||||||
Electricite de France | 17,704 | 2,130 | ||||||
Iliad | 23,571 | 2,477 | ||||||
L’oreal | 12,528 | 1,649 | ||||||
LVMH Moet Hennessy Louis Vuitton | 11,359 | 1,467 | ||||||
Sanofi-Aventis | 21,970 | 1,933 | ||||||
Thales | 8,770 | 548 | ||||||
Total (a) | 37,780 | 3,049 | ||||||
Total – ADR | 15,953 | 1,286 | ||||||
Vivendi Universal | 70,550 | 3,188 | ||||||
23,272 | ||||||||
Germany – 4.4% | ||||||||
Adidas | 28,797 | 1,914 | ||||||
Allianz | 8,860 | 1,999 | ||||||
BASF | 4,380 | 608 | ||||||
Deutsche Telekom | 57,860 | 1,189 | ||||||
Henkel KGAA | 42,981 | 2,195 | ||||||
Metro | 26,760 | 2,425 | ||||||
SAP – ADR | 33,142 | 1,799 | ||||||
Siemens | 11,040 | 1,508 | ||||||
Wacker Chemie | 6,682 | 1,635 | ||||||
15,272 | ||||||||
Great Britain – 12.8% | ||||||||
Arm Holdings | 633,297 | 1,954 | ||||||
Autonomy (a) | 103,696 | 2,127 | ||||||
BAE Systems | 86,670 | 900 | ||||||
Barclays | 132,118 | 1,672 | ||||||
BP – ADR | 27,760 | 2,165 | ||||||
British Sky Broadcasting Group | 116,082 | 1,644 | ||||||
Cadbury Schweppes | 186,200 | 2,477 | ||||||
Dawnay Day Treveria (a) | 586,180 | 742 | ||||||
Diageo | 140,640 | 3,227 | ||||||
GlaxoSmithKline | 111,850 | 2,873 | ||||||
ICAP | 140,648 | 1,717 | ||||||
Kingfisher | 679,200 | 2,795 | ||||||
Michael Page International | 240,115 | 2,195 | ||||||
Prudential | 159,057 | 2,599 | ||||||
Reckitt Benckiser | 23,856 | 1,386 | ||||||
Royal Bank of Scotland | 146,665 | 1,584 | ||||||
Scottish & Southern Energy | 31,310 | 1,015 | ||||||
Smith & Nephew | 121,177 | 1,641 | ||||||
Standard Chartered | 30,530 | 1,188 | ||||||
Tesco | 154,856 | 1,575 | ||||||
Vodafone Group – ADR | 106,240 | 4,172 | ||||||
WPP Group | 209,660 | 2,868 | ||||||
44,516 | ||||||||
Greece – 0.6% | ||||||||
National Bank of Greece – ADR | 151,184 | 2,118 | ||||||
Hong Kong – 1.6% | ||||||||
Cheung Kong Holdings | 46,510 | 912 | ||||||
Esprit Holdings | 185,700 | 3,102 | ||||||
Foxconn International Holdings (a) | 604,000 | 1,684 | ||||||
5,698 | ||||||||
Hungary – 0.1% | ||||||||
Gedeon Richter | 2,100 | 458 | ||||||
India – 3.3% | ||||||||
Grasim Industries – ADR (a) | 9,700 | 941 | ||||||
HDFC Bank – ADR | 16,544 | 2,300 | ||||||
Hero Honda | 36,222 | 672 | ||||||
Hindustan Unilever | 117,135 | 619 | ||||||
Infosys Technologies – ADR | 36,908 | 1,880 | ||||||
Oil & Natural Gas | 54,618 | 1,740 | ||||||
Punjab National Bank | 29,800 | 401 | ||||||
Satyam Computer Services – ADR | 41,900 | 1,272 | ||||||
State Bank Of India – ADR | 12,310 | 1,555 | ||||||
11,380 | ||||||||
Indonesia – 1.0% | ||||||||
Astra International | 440,500 | 1,254 | ||||||
Bank Mandiri Persero | 1,358,000 | 573 |
The accompanying notes are an integral part of the financial statements.
54 First American Funds 2007 Annual Report
Table of Contents
International Select Fund (continued) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Telekomunikasi Indonesia – ADR | 15,800 | $ | 762 | |||||
United Tractors | 578,500 | 706 | ||||||
3,295 | ||||||||
Israel – 1.1% | ||||||||
Bank Hapoalim B.M. | 234,992 | 1,301 | ||||||
Icl-israel Chem | 76,538 | 847 | ||||||
Teva Pharmaceutical Industries – ADR | 37,704 | 1,659 | ||||||
3,807 | ||||||||
Italy – 4.8% | ||||||||
Alleanza Assicurazioni | 109,710 | 1,487 | ||||||
Ansaldo STS (a) | 81,660 | 1,191 | ||||||
Arnoldo Mondadori Editore | 123,870 | 1,227 | ||||||
Eni | 48,750 | 1,780 | ||||||
Mediaset | 223,377 | 2,317 | ||||||
Saipem | 58,979 | 2,617 | ||||||
Telecom Italia | 1,043,470 | 2,702 | ||||||
Unicredito Italiano | 369,422 | 3,178 | ||||||
16,499 | ||||||||
Japan – 12.2% | ||||||||
Daiwa House Industry | 83,077 | 1,186 | ||||||
Daiwa Securities Group | 81,450 | 785 | ||||||
Fuji Television Network | 645 | 1,303 | ||||||
The Joyo Bank | 318,204 | 1,973 | ||||||
Kose | 68,313 | 1,753 | ||||||
Mid REIT (a) | 160 | 704 | ||||||
Mitsubishi UFJ Financial Group | 70,240 | 703 | ||||||
Mitsui-Soko | 133,881 | 645 | ||||||
New City Residence Investment (a) | 104 | 484 | ||||||
NGK Insulators | 62,000 | 2,198 | ||||||
Nippon Commercial Investment (a) | 167 | 725 | ||||||
Nippon Residential | 110 | 556 | ||||||
Nipponkoa Insurance | 280,490 | 2,567 | ||||||
Nitto Denko | 38,700 | 1,889 | ||||||
Nomura Holdings | 45,978 | 819 | ||||||
ORIX | 9,140 | 1,875 | ||||||
Seven & I Holdings | 80,681 | 2,083 | ||||||
Sharp | 95,000 | 1,499 | ||||||
SMC | 19,289 | 2,584 | ||||||
Sugi Pharmacy | 51,650 | 1,496 | ||||||
Sumitomo Bakelite | 187,711 | 1,151 | ||||||
Sumitomo Mitsui Financial Group | 206 | 1,688 | ||||||
Sumitomo Trust & Banking | 368,720 | 2,749 | ||||||
Suzuki Motor | 41,932 | 1,378 | ||||||
Takeda Pharmaceutical | 24,000 | 1,499 | ||||||
Toshiba | 186,000 | 1,575 | ||||||
Toyota Motor | 36,100 | 2,067 | ||||||
United Urban Investment | 88 | 644 | ||||||
Yamada Denki | 16,200 | 1,670 | ||||||
42,248 | ||||||||
Luxembourg – 1.3% | ||||||||
Millicom International Cellular – ADR (a) | 25,211 | 2,962 | ||||||
Tenaris – ADR | 31,700 | 1,705 | ||||||
4,667 | ||||||||
Malaysia – 0.2% | ||||||||
British American Tobacco Malaysia Berhad | 38,200 | 462 | ||||||
Plus Expressways | 190,500 | 192 | ||||||
654 | ||||||||
Mexico – 1.6% | ||||||||
Cemex, ADR (a) | 35,591 | 1,092 | ||||||
Desarrolladora Homex – ADR (a) | 20,600 | 1,164 | ||||||
Fomento Economico Mexicano – ADR | 10,200 | 363 | ||||||
Grupo Televisa – ADR | 33,900 | 842 | ||||||
Kimberly-Clark de Mexico | 114,200 | 490 | ||||||
Wal Mart de Mexico – ADR | 36,622 | 1,482 | ||||||
5,433 | ||||||||
Netherlands – 2.8% | ||||||||
Corporate Express | 99,573 | 1,115 | ||||||
Heineken | 32,870 | 2,307 | ||||||
ING Group | 47,290 | 2,137 | ||||||
Koninklijke Philips Electronics – ADR | 41,670 | 1,723 | ||||||
Philips Electronics | 22,690 | 939 | ||||||
Unilever NV CVA (a) | 45,850 | 1,492 | ||||||
9,713 | ||||||||
Norway – 1.0% | ||||||||
Renewable Energy (a) | 43,911 | 2,256 | ||||||
Statoil | 35,997 | 1,226 | ||||||
3,482 | ||||||||
Philippines – 0.4% | ||||||||
Philippine Long Distance Telephone – ADR | 22,100 | 1,516 | ||||||
Portugal – 0.3% | ||||||||
Energias de Portugal – ADR | 17,550 | 1,127 | ||||||
Russia – 0.8% | ||||||||
Evraz Group – ADR (a) | 7,350 | 555 | ||||||
Mobile Telesystems – ADR (a) | 14,100 | 1,170 | ||||||
TNK-BP Holdings (a) | 245,752 | 561 | ||||||
Vsmpo-Avisma | 1,566 | 499 | ||||||
2,785 | ||||||||
Singapore – 0.7% | ||||||||
DBS Group Holdings | 48,210 | 755 | ||||||
Keppel | 179,000 | 1,840 | ||||||
2,595 | ||||||||
South Africa – 2.6% | ||||||||
Aquarius Platinum | 42,656 | 1,641 | ||||||
Imperial Holdings (a) | 72,875 | 1,478 | ||||||
Kumba Iron Ore (a) | 37,263 | 1,461 | ||||||
Murray & Roberts Holdings (a) | 23,809 | 366 | ||||||
Naspers | 31,438 | 1,000 | ||||||
Nedbank Group | 17,600 | 388 | ||||||
Pretoria Portland Cement | 88,440 | 646 | ||||||
Sanlam (a) | 133,000 | 488 | ||||||
Steinhoff International Holdings | 165,200 | 514 | ||||||
Truworths International | 206,486 | 1,043 | ||||||
9,025 | ||||||||
South Korea – 4.3% | ||||||||
AmorePacific (a) | 573 | 548 | ||||||
GS Engineering & Construction | 2,697 | 571 | ||||||
Hite Brewery | 4,653 | 697 | ||||||
Hyundai Motor | 18,592 | 1,478 | ||||||
Kangwon Land | 5,980 | 160 | ||||||
Kookmin Bank – ADR (a) | 45,860 | 3,746 | ||||||
Samsung Electronics (a) | 3,690 | 1,129 | ||||||
Samsung Electronics – GDR (a) | 10,911 | 3,331 | ||||||
Shinhan Financial Group – ADR (a) | 13,600 | 1,781 | ||||||
SK Telecom | 1,197 | 281 | ||||||
SK Telecom – ADR | 5,000 | 154 | ||||||
Woongjin Coway | 27,180 | 1,042 | ||||||
14,918 | ||||||||
Spain – 2.0% | ||||||||
Banco Bilbano Vizcaya Argentaria | 93,187 | 2,358 | ||||||
Banco Santander Central Hispano | 93,237 | 2,039 | ||||||
Telefonica | 75,304 | 2,494 | ||||||
6,891 | ||||||||
First American Funds 2007 Annual Report 55
Table of Contents
Schedule of Investments October 31, 2007, all dollars are rounded to thousands (000)
International Select Fund (continued) | |||||||||
DESCRIPTION | SHARES/PAR | VALUE | |||||||
Sweden – 1.6% | |||||||||
Ericsson | 855,800 | $ | 2,560 | ||||||
Nordea Bank | 71,060 | 1,273 | |||||||
Oriflame Cosmetics (a) | 25,900 | 1,569 | |||||||
5,402 | |||||||||
Switzerland – 5.7% | |||||||||
ABB | 88,258 | 2,668 | |||||||
Holcim | 14,681 | 1,678 | |||||||
Nestle | 8,648 | 3,994 | |||||||
Nobel Biocare | 5,043 | 1,472 | |||||||
Novartis | 42,283 | 2,249 | |||||||
Roche | 13,289 | 2,270 | |||||||
Syngenta | 7,607 | 1,840 | |||||||
Synthes | 11,665 | 1,457 | |||||||
UBS | 39,740 | 2,131 | |||||||
19,759 | |||||||||
Taiwan – 1.9% | |||||||||
Advanced Semiconductor (a) | 127,000 | 154 | |||||||
Advantech | 146,058 | 398 | |||||||
Chinatrust Financial Holdings (a) | 1,220,000 | 895 | |||||||
Fubon Financial | 821,000 | 800 | |||||||
Hon Hai Precision Industry | 176,000 | 1,349 | |||||||
Novatek Microelectronics | 127,040 | 590 | |||||||
Taiwan Semiconductor Manufacturing | 511,285 | 1,022 | |||||||
Taiwan Semiconductor Manufacturing – ADR | 131,193 | 1,397 | |||||||
6,605 | |||||||||
Thailand – 0.3% | |||||||||
Bangkok Bank | 203,446 | 767 | |||||||
Kasikornbank | 94,700 | 252 | |||||||
1,019 | |||||||||
Turkey – 0.9% | |||||||||
Ford Otomotiv Sanayi (a) | 42,100 | 497 | |||||||
Turkcell Iletisim Hizmet – ADR | 69,200 | 1,664 | |||||||
Turkiye Is Bankasi (a) | 115,900 | 798 | |||||||
2,959 | |||||||||
Total Common Stocks (Cost $276,780) | 314,765 | ||||||||
Short-Term Investments – 8.6% | |||||||||
Money Market Fund – 8.1% | |||||||||
State Street GA Prime Fund | 27,932,428 | 27,932 | |||||||
U.S. Treasury Obligation – 0.5% | |||||||||
U.S. Treasury Bill | |||||||||
3.813%, 01/24/2008 (b) | $ | 1,800 | 1,784 | ||||||
Total Short-Term Investments (Cost $29,716) | 29,716 | ||||||||
Total Investments – 99.3% (Cost $306,496) | 344,481 | ||||||||
Other Assets and Liabilities, Net – 0.7% | 2,536 | ||||||||
Total Net Assets – 100.0% | $ | 347,017 | |||||||
(a) | Non-income producing security |
(b) | Security has been deposited as initial margin on open futures contracts. Yield shown is the effective yield as of October 31, 2007. See note 2 in Notes to Financial Statements. |
ADR – | American Depository Receipt |
GDR – | Global Depository Receipt |
Schedule of Open Futures Contracts
Number of | Notional | |||||||||||||||
Contracts | Contract | Settlement | Unrealized | |||||||||||||
Description | Purchased | Value | Month | Appreciation | ||||||||||||
E-Mini MSCI EAFE Futures | 86 | $ | 10,320 | December 2007 | $ | 469 | ||||||||||
S&P TSE 60 Futures | 120 | 21,659 | December 2007 | 739 | ||||||||||||
�� | $ | 1,208 | ||||||||||||||
At October 31, 2007, sector diversification of the fund was as follows:
% of Net | ||||||||
Assets | Value | |||||||
Foreign Common Stock | ||||||||
Financials | 21.1 | % | $ | 73,220 | ||||
Consumer Discretionary | 13.0 | 45,130 | ||||||
Consumer Staples | 11.3 | 39,252 | ||||||
Information Technology | 8.8 | 30,414 | ||||||
Materials | 8.7 | 30,153 | ||||||
Industrials | 7.5 | 25,978 | ||||||
Energy | 7.0 | 24,497 | ||||||
Telecommunication Services | 6.6 | 22,815 | ||||||
Healthcare | 5.1 | 17,825 | ||||||
Utilities | 1.6 | 5,481 | ||||||
Total Foreign Common Stock | 90.7 | 314,765 | ||||||
Total Short-Term Investments | 8.6 | 29,716 | ||||||
Total Investments | 99.3 | 344,481 | ||||||
Other Assets and Liabilities, Net | 0.7 | 2,536 | ||||||
Net Assets | 100.0 | % | $ | 347,017 | ||||
The accompanying notes are an integral part of the financial statements.
56 First American Funds 2007 Annual Report
Table of Contents
Statements of Assets and Liabilities October 31, 2007, all dollars and shares are rounded to thousands (000), except per share data
International | ||||||||||||
International | Select | |||||||||||
Fund | Fund | |||||||||||
Investments in securities, at cost | $ | 1,165,307 | $ | 306,496 | ||||||||
Investment purchased with proceeds from securities lending, at cost (note 2) | 256,617 | — | ||||||||||
Cash denominated in foreign currencies, at cost | 30 | 221 | ||||||||||
ASSETS: | ||||||||||||
Investments in securities, at value* (note 2) | $ | 1,743,430 | $ | 344,481 | ||||||||
Investment purchased with proceeds from securities lending, at value (note 2) | 256,617 | — | ||||||||||
Cash denominated in foreign currencies, at value (note 2) | 31 | 221 | ||||||||||
Cash | 371 | 219 | ||||||||||
Receivable for dividends and interest | 4,512 | 615 | ||||||||||
Receivable for investment securities sold | — | 1,548 | ||||||||||
Receivable for capital shares sold | 519 | 598 | ||||||||||
Receivable for foreign withholding tax reclaim | 568 | 102 | ||||||||||
Receivable for variation margin | — | 597 | ||||||||||
Receivable from custodian (note 3) | 5 | — | ||||||||||
Prepaid expenses and other assets | 37 | 11 | ||||||||||
Total assets | 2,006,090 | 348,392 | ||||||||||
LIABILITIES: | ||||||||||||
Payable for investment securities purchased | 371 | 845 | ||||||||||
Payable for capital shares redeemed | 5,892 | 134 | ||||||||||
Payable upon return of securities loaned (note 2) | 256,617 | — | ||||||||||
Payable to affiliates (note 3) | 1,804 | 305 | ||||||||||
Payable to custodian | — | 85 | ||||||||||
Payable for distribution and shareholder servicing fees | 23 | 1 | ||||||||||
Accrued expenses and other liabilities | 23 | 5 | ||||||||||
Total liabilities | 264,730 | 1,375 | ||||||||||
Net assets | $ | 1,741,360 | $ | 347,017 | ||||||||
COMPOSITION OF NET ASSETS: | ||||||||||||
Portfolio capital | $ | 1,008,160 | $ | 303,137 | ||||||||
Undistributed net investment income | 18,037 | 2,063 | ||||||||||
Accumulated net realized gain on investments, futures contracts, and foreign currency transactions | 136,948 | 2,612 | ||||||||||
Net unrealized appreciation of investments | 578,123 | 37,985 | ||||||||||
Net unrealized appreciation of futures contracts | — | 1,208 | ||||||||||
Net unrealized appreciation of foreign currency, and translation of other assets and liabilities in foreign currency (note 2) | 92 | 12 | ||||||||||
Net assets | $ | 1,741,360 | $ | 347,017 | ||||||||
* Including securities loaned, at value | $ | 289,327 | $ | — | ||||||||
Class A: | ||||||||||||
Net assets | $ | 56,705 | $ | 3,228 | ||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 3,306 | 266 | ||||||||||
Net asset value and redemption price per share | $ | 17.15 | $ | 12.15 | ||||||||
Maximum offering price per share 1 | $ | 18.15 | $ | 12.86 | ||||||||
Class B: | ||||||||||||
Net assets | $ | 6,668 | $ | 324 | ||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 423 | 27 | ||||||||||
Net asset value, offering price, and redemption price per share 2 | $ | 15.78 | $ | 12.07 | ||||||||
Class C: | ||||||||||||
Net assets | $ | 7,173 | $ | 287 | ||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 438 | 24 | ||||||||||
Net asset value, offering price, and redemption price per share 2 | $ | 16.36 | $ | 12.07 | ||||||||
Class R: | ||||||||||||
Net assets | $ | 4 | $ | 17 | ||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | — | ** | 1 | |||||||||
Net asset value, offering price, and redemption price per share | $ | 17.17 | $ | 12.12 | ||||||||
Class Y: | ||||||||||||
Net assets | $ | 1,670,810 | $ | 343,161 | ||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 96,133 | 28,197 | ||||||||||
Net asset value, offering price, and redemption price per share | $ | 17.38 | $ | 12.17 | ||||||||
1 | The offering price is calculated by dividing the net asset value by 1 minus the maximum sales charge of 5.50%. | |
2 | Class B and C have a contingent deferred sales charge. For a description of this sales charge, see notes 1 and 3 in Notes to Financial Statements. |
** | Due to the presentation of the Financial Statements in thousands the number rounds to zero. |
First American Funds 2007 Annual Report 57
Table of Contents
Statements of Operations For the period ended October 31, 2007, all dollars are rounded to thousands (000)
International | International | |||||||||
Fund | Select Fund | |||||||||
Year Ended | 12/21/06 1 | |||||||||
10/31/07 | to 10/31/07 | |||||||||
INVESTMENT INCOME: | ||||||||||
Interest | $ | 670 | $ | 1,112 | ||||||
Dividends | 44,576 | 3,929 | ||||||||
Less: Foreign taxes withheld | (4,021 | ) | (385 | ) | ||||||
Securities lending income | 1,469 | — | ||||||||
Other income | 5 | — | ||||||||
Total investment income | 42,699 | 4,656 | ||||||||
EXPENSES (note 3): | ||||||||||
Investment advisory fees | 17,458 | 1,793 | ||||||||
Administration fees | 3,913 | 416 | ||||||||
Transfer agent fees | 196 | 103 | ||||||||
Custodian fees | 557 | 417 | ||||||||
Professional fees | 43 | 47 | ||||||||
Registration fees | 51 | 69 | ||||||||
Postage and printing fees | 47 | 40 | ||||||||
Directors’ fees | 18 | 22 | ||||||||
Other expenses | 20 | 27 | ||||||||
Distribution and shareholder servicing fees – Class A | 138 | 3 | ||||||||
Distribution and shareholder servicing fees – Class B | 69 | 1 | ||||||||
Distribution and shareholder servicing fees – Class C | 77 | 1 | ||||||||
Distribution and shareholder servicing fees – Class R | — | — | ||||||||
Total expenses | 22,587 | 2,939 | ||||||||
Less: Fee waivers (note 3) | (158 | ) | (663 | ) | ||||||
Less: Indirect payments from custodian (note 3) | (496 | ) | (47 | ) | ||||||
Total net expenses | 21,933 | 2,229 | ||||||||
Investment income – net | 20,766 | 2,427 | ||||||||
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS, FUTURES CONTRACTS, AND FOREIGN CURRENCY TRANSACTIONS – NET (note 5): | ||||||||||
Net realized gain on investments | 165,689 | 2,639 | ||||||||
Net realized loss on futures contracts | — | (26 | ) | |||||||
Net realized loss on foreign currency transactions | (871 | ) | (316 | ) | ||||||
Net change in unrealized appreciation or depreciation of investments | 122,521 | 37,985 | ||||||||
Net change in unrealized appreciation or depreciation of futures contracts | — | 1,208 | ||||||||
Net change in unrealized appreciation or depreciation of foreign currency, and translation of other assets and liabilities denominated in foreign currency (note 2) | 52 | 12 | ||||||||
Net gain on investments, futures contracts, and foreign currency transactions | 287,391 | 41,502 | ||||||||
Net increase in net assets resulting from operations | $ | 308,157 | $ | 43,929 | ||||||
1 | Commencement of operations. |
The accompanying notes are an integral part of the financial statements.
58 First American Funds 2007 Annual Report
Table of Contents
Statements of Changes in Net Assets all dollars are rounded to thousands (000)
International | ||||||||||||||||
International | Select | |||||||||||||||
Fund | Fund | |||||||||||||||
Year | Year | 12/21/06 1 | ||||||||||||||
Ended | Ended | to | ||||||||||||||
10/31/07 | 10/31/06 | 10/31/07 | ||||||||||||||
OPERATIONS: | ||||||||||||||||
Investment income – net | $ | 20,766 | $ | 19,673 | $ | 2,427 | ||||||||||
Net realized gain on investments | 165,689 | 90,776 | 2,639 | |||||||||||||
Net realized loss on futures contracts | — | — | (26 | ) | ||||||||||||
Net realized loss on foreign currency transactions | (871 | ) | (677 | ) | (316 | ) | ||||||||||
Net change in unrealized appreciation or depreciation of investments | 122,521 | 265,816 | 37,985 | |||||||||||||
Net change in unrealized appreciation or depreciation of futures contracts | — | — | 1,208 | |||||||||||||
Net change in unrealized appreciation or depreciation of foreign currency, and translation of other assets and liabilities denominated in foreign currency (note 2) | 52 | 103 | 12 | |||||||||||||
Net increase in net assets resulting from operations | 308,157 | 375,691 | 43,929 | |||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | ||||||||||||||||
Investment income – net: | ||||||||||||||||
Class A | (467 | ) | (525 | ) | — | |||||||||||
Class B | (15 | ) | (23 | ) | — | |||||||||||
Class C | (13 | ) | (22 | ) | — | |||||||||||
Class R | — | — | — | |||||||||||||
Class Y | (18,658 | ) | (19,388 | ) | (49 | ) | ||||||||||
Net realized gain on investments: | ||||||||||||||||
Class A | (948 | ) | — | — | ||||||||||||
Class B | (136 | ) | — | — | ||||||||||||
Class C | (149 | ) | — | — | ||||||||||||
Class R | — | — | — | |||||||||||||
Class Y | (29,782 | ) | — | — | ||||||||||||
Total distributions | (50,168 | ) | (19,958 | ) | (49 | ) | ||||||||||
CAPITAL SHARE TRANSACTIONS (note 4): | ||||||||||||||||
Class A: | ||||||||||||||||
Proceeds from sales | 11,786 | 12,874 | 3,236 | |||||||||||||
Reinvestment of distributions | 1,277 | 475 | — | |||||||||||||
Payments for redemptions | (16,840 | ) | (19,829 | ) | (339 | ) | ||||||||||
Increase (decrease) in net assets from Class A transactions | (3,777 | ) | (6,480 | ) | 2,897 | |||||||||||
Class B: | ||||||||||||||||
Proceeds from sales | 580 | 1,144 | 296 | |||||||||||||
Reinvestment of distributions | 143 | 23 | — | |||||||||||||
Payments for redemptions (note 3) | (2,230 | ) | (2,076 | ) | (3 | ) | ||||||||||
Increase (decrease) in net assets from Class B transactions | (1,507 | ) | (909 | ) | 293 | |||||||||||
Class C: | ||||||||||||||||
Proceeds from sales | 872 | 902 | 267 | |||||||||||||
Reinvestment of distributions | 142 | 21 | — | |||||||||||||
Payments for redemptions (note 3) | (2,984 | ) | (2,057 | ) | (8 | ) | ||||||||||
Increase (decrease) in net assets from Class C transactions | (1,970 | ) | (1,134 | ) | 259 | |||||||||||
Class R: | ||||||||||||||||
Proceeds from sales | 3 | 1 | 16 | |||||||||||||
Reinvestment of distributions | — | — | — | |||||||||||||
Payments for redemptions | — | (2 | ) | (1 | ) | |||||||||||
Increase (decrease) in net assets from Class R transactions | 3 | (1 | ) | 15 | ||||||||||||
Class Y: | ||||||||||||||||
Proceeds from sales | 167,696 | 230,406 | 322,481 | |||||||||||||
Reinvestment of distributions | 29,171 | 11,130 | 48 | |||||||||||||
Payments for redemptions | (512,210 | ) | (361,882 | ) | (22,856 | ) | ||||||||||
Increase (decrease) in net assets from Class Y transactions | (315,343 | ) | (120,346 | ) | 299,673 | |||||||||||
Increase (decrease) in net assets from capital share transactions | (322,594 | ) | (128,870 | ) | 303,137 | |||||||||||
Total increase (decrease) in net assets | (64,605 | ) | 226,863 | 347,017 | ||||||||||||
Net assets at beginning of period | 1,805,965 | 1,579,102 | — | |||||||||||||
Net assets at end of period | $ | 1,741,360 | $ | 1,805,965 | $ | 347,017 | ||||||||||
Undistributed net investment income at end of period | $ | 18,037 | $ | 17,166 | $ | 2,063 | ||||||||||
1 | Commencement of operations. |
First American Funds 2007 Annual Report 59
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 (Loss) | Investments | Income | Gains | Period | ||||||||||||||||||||||||||||
International Fund1 | |||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||
20072 | $ | 14.80 | $ | 0.15 | $ | 2.59 | $ | (0.13 | ) | $ | (0.26 | ) | $ | 17.15 | |||||||||||||||||||
20062 | 12.01 | 0.12 | 2.80 | (0.13 | ) | — | 14.80 | ||||||||||||||||||||||||||
20053 | 12.24 | 0.01 | (0.24 | ) | — | — | 12.01 | ||||||||||||||||||||||||||
20054 | 10.19 | 0.09 | 2.02 | (0.06 | ) | — | 12.24 | ||||||||||||||||||||||||||
20044 | 8.99 | 0.03 | 1.22 | (0.05 | ) | — | 10.19 | ||||||||||||||||||||||||||
20034 | 7.33 | 0.06 | 1.60 | — | — | 8.99 | |||||||||||||||||||||||||||
Class B | |||||||||||||||||||||||||||||||||
20072 | $ | 13.65 | $ | 0.03 | $ | 2.39 | $ | (0.03 | ) | $ | (0.26 | ) | $ | 15.78 | |||||||||||||||||||
20062 | 11.09 | 0.02 | 2.58 | (0.04 | ) | — | 13.65 | ||||||||||||||||||||||||||
20053 | 11.31 | — | (0.22 | ) | — | — | 11.09 | ||||||||||||||||||||||||||
20054 | 9.43 | — | 1.88 | — | — | 11.31 | |||||||||||||||||||||||||||
20044 | 8.34 | (0.05 | ) | 1.14 | — | — | 9.43 | ||||||||||||||||||||||||||
20034 | 6.85 | — | 1.49 | — | — | 8.34 | |||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||
20072 | $ | 14.13 | $ | 0.03 | $ | 2.48 | $ | (0.02 | ) | $ | (0.26 | ) | $ | 16.36 | |||||||||||||||||||
20062 | 11.47 | 0.02 | 2.67 | (0.03 | ) | — | 14.13 | ||||||||||||||||||||||||||
20053 | 11.70 | — | (0.23 | ) | — | — | 11.47 | ||||||||||||||||||||||||||
20054 | 9.76 | — | 1.94 | — | — | 11.70 | |||||||||||||||||||||||||||
20044 | 8.63 | (0.05 | ) | 1.18 | — | — | 9.76 | ||||||||||||||||||||||||||
20034 | 7.09 | — | 1.54 | — | — | 8.63 | |||||||||||||||||||||||||||
Class R5 | |||||||||||||||||||||||||||||||||
20072 | $ | 14.81 | $ | 0.10 | $ | 2.61 | $ | (0.09 | ) | $ | (0.26 | ) | $ | 17.17 | |||||||||||||||||||
20062 | 11.94 | 0.05 | 2.82 | — | — | 14.81 | |||||||||||||||||||||||||||
20053 | 12.17 | (0.02 | ) | (0.21 | ) | — | — | 11.94 | |||||||||||||||||||||||||
20054 | 10.11 | 0.09 | 1.97 | — | — | 12.17 | |||||||||||||||||||||||||||
20044 | 8.98 | (0.01 | ) | 1.19 | (0.05 | ) | — | 10.11 | |||||||||||||||||||||||||
20034 | 7.31 | 0.04 | 1.63 | — | — | 8.98 | |||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||
20072 | $ | 14.99 | $ | 0.19 | $ | 2.62 | $ | (0.16 | ) | $ | (0.26 | ) | $ | 17.38 | |||||||||||||||||||
20062 | 12.16 | 0.16 | 2.83 | (0.16 | ) | — | 14.99 | ||||||||||||||||||||||||||
20053 | 12.39 | 0.01 | (0.24 | ) | — | — | 12.16 | ||||||||||||||||||||||||||
20054 | 10.31 | 0.12 | 2.05 | (0.09 | ) | — | 12.39 | ||||||||||||||||||||||||||
20044 | 9.10 | 0.06 | 1.23 | (0.08 | ) | — | 10.31 | ||||||||||||||||||||||||||
20034 | 7.40 | 0.09 | 1.61 | — | — | 9.10 | |||||||||||||||||||||||||||
1 | Per share data calculated using average shares outstanding method. | |
2 | For the period November 1 to October 31 in the year indicated. | |
3 | For the period October 1, 2005 to October 31, 2005. Effective October 1, 2005, the fund’s fiscal year end was changed from September 30 to October 31. All ratios for the period have been annualized, except total return and portfolio turnover. | |
4 | For the period October 1 to September 30 in the year indicated. | |
5 | Prior to July 1, 2004, Class R shares were named Class S shares, which had lower fees and expenses. | |
6 | Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived. | |
7 | In 2003, 0.14% of Class R share’s and 0.13% of Class Y share’s total return was a result of the reimbursement by the advisor related to foreign currency principal trades between the International Fund and U.S. Bank. Excluding the reimbursement, total return for Class R and Class Y shares would have been 22.71% and 22.84%, respectively. |
The accompanying notes are an integral part of the financial statements.
60 First American Funds 2007 Annual Report
Table of Contents
Ratio of Net | ||||||||||||||||||||||||||||||||||||
Ratio of | Investment | |||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses to | Income (Loss) | ||||||||||||||||||||||||||||||||||
Ratio of | Investment | Average | to Average | |||||||||||||||||||||||||||||||||
Net Assets | Expenses to | Income (Loss) | Net Assets | Net Assets | Portfolio | |||||||||||||||||||||||||||||||
Total | End of | Average | to Average | (Excluding | (Excluding | Turnover | ||||||||||||||||||||||||||||||
Return6 | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | ||||||||||||||||||||||||||||||
18.92 | % | $ | 56,705 | 1.49 | % | 0.97 | % | 1.53 | % | 0.93 | % | 14 | % | |||||||||||||||||||||||
24.50 | 52,489 | 1.51 | 0.89 | 1.54 | 0.86 | 17 | ||||||||||||||||||||||||||||||
(1.88 | ) | 48,439 | 1.51 | 0.58 | 1.55 | 0.54 | — | |||||||||||||||||||||||||||||
20.80 | 48,851 | 1.56 | 0.77 | 1.61 | 0.72 | 74 | ||||||||||||||||||||||||||||||
13.91 | 44,851 | 1.60 | 0.31 | 1.64 | 0.27 | 77 | ||||||||||||||||||||||||||||||
22.65 | 39,251 | 1.60 | 0.77 | 1.65 | 0.72 | 82 | ||||||||||||||||||||||||||||||
18.05 | % | $ | 6,668 | 2.24 | % | 0.22 | % | 2.28 | % | 0.18 | % | 14 | % | |||||||||||||||||||||||
23.50 | 7,172 | 2.26 | 0.15 | 2.29 | 0.12 | 17 | ||||||||||||||||||||||||||||||
(1.95 | ) | 6,632 | 2.26 | (0.17 | ) | 2.30 | (0.21 | ) | — | |||||||||||||||||||||||||||
19.94 | 6,819 | 2.31 | — | 2.36 | (0.05 | ) | 74 | |||||||||||||||||||||||||||||
13.12 | 7,371 | 2.35 | (0.48 | ) | 2.39 | (0.52 | ) | 77 | ||||||||||||||||||||||||||||
21.75 | 7,936 | 2.35 | 0.02 | 2.40 | (0.03 | ) | 82 | |||||||||||||||||||||||||||||
18.09 | % | $ | 7,173 | 2.24 | % | 0.20 | % | 2.28 | % | 0.16 | % | 14 | % | |||||||||||||||||||||||
23.53 | 8,049 | 2.26 | 0.16 | 2.29 | 0.13 | 17 | ||||||||||||||||||||||||||||||
(1.97 | ) | 7,520 | 2.26 | (0.17 | ) | 2.30 | (0.21 | ) | — | |||||||||||||||||||||||||||
19.88 | 7,915 | 2.31 | (0.01 | ) | 2.36 | (0.06 | ) | 74 | ||||||||||||||||||||||||||||
13.14 | 8,542 | 2.35 | (0.52 | ) | 2.39 | (0.56 | ) | 77 | ||||||||||||||||||||||||||||
21.72 | 10,439 | 2.35 | (0.01 | ) | 2.40 | (0.06 | ) | 82 | ||||||||||||||||||||||||||||
18.66 | % | $ | 4 | 1.74 | % | 0.60 | % | 1.78 | % | 0.56 | % | 14 | % | |||||||||||||||||||||||
24.04 | 1 | 1.76 | 0.39 | 1.91 | 0.24 | 17 | ||||||||||||||||||||||||||||||
(1.89 | ) | 1 | 1.76 | 0.33 | 1.95 | 0.14 | — | |||||||||||||||||||||||||||||
20.38 | 163 | 1.81 | 0.77 | 2.01 | 0.57 | 74 | ||||||||||||||||||||||||||||||
13.16 | 1 | 1.60 | (0.11 | ) | 1.64 | (0.15 | ) | 77 | ||||||||||||||||||||||||||||
22.85 | %7 | 8,533 | 1.60 | 0.57 | 1.65 | 0.52 | 82 | |||||||||||||||||||||||||||||
19.23 | % | $ | 1,670,810 | 1.24 | % | 1.21 | % | 1.28 | % | 1.17 | % | 14 | % | |||||||||||||||||||||||
24.81 | 1,738,254 | 1.26 | 1.16 | 1.29 | 1.13 | 17 | ||||||||||||||||||||||||||||||
(1.86 | ) | 1,516,510 | 1.26 | 0.83 | 1.30 | 0.79 | — | |||||||||||||||||||||||||||||
21.12 | 1,523,057 | 1.31 | 1.07 | 1.36 | 1.02 | 74 | ||||||||||||||||||||||||||||||
14.13 | 1,145,409 | 1.35 | 0.59 | 1.39 | 0.55 | 77 | ||||||||||||||||||||||||||||||
22.97 | %7 | 991,027 | 1.35 | 1.08 | 1.40 | 1.03 | 82 | |||||||||||||||||||||||||||||
First American Funds 2007 Annual Report 61
Table of Contents
Financial Highlights For a share outstanding throughout the indicated periods.
Net Asset | Realized and | Distributions | Net Asset | |||||||||||||||||||||||||
Value | Net | Unrealized | from Net | Value | ||||||||||||||||||||||||
Beginning | Investment | Gains on | Investment | End of | ||||||||||||||||||||||||
of Period | Income | Investments | Income | Period | ||||||||||||||||||||||||
International Select Fund1, 2 | ||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
2007 | $ | 10.00 | $ | 0.09 | $ | 2.07 | $ | (0.01 | ) | $ | 12.15 | |||||||||||||||||
Class B | ||||||||||||||||||||||||||||
2007 | $ | 10.00 | $ | 0.02 | $ | 2.05 | $ | — | $ | 12.07 | ||||||||||||||||||
Class C | ||||||||||||||||||||||||||||
2007 | $ | 10.00 | $ | 0.03 | $ | 2.04 | $ | — | $ | 12.07 | ||||||||||||||||||
Class R | ||||||||||||||||||||||||||||
2007 | $ | 10.00 | $ | 0.07 | $ | 2.06 | $ | (0.01 | ) | $ | 12.12 | |||||||||||||||||
Class Y | ||||||||||||||||||||||||||||
2007 | $ | 10.00 | $ | 0.13 | $ | 2.05 | $ | (0.01 | ) | $ | 12.17 | |||||||||||||||||
1 | Per share data calculated using average shares outstanding method. | |
2 | Commenced operations on December 21, 2006. All ratios for the period ended October 31, 2007 have been annualized, except total return and portfolio turnover. | |
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.
62 First American Funds 2007 Annual Report
Table of Contents
Ratio of Net | |||||||||||||||||||||||||||||||||||||
Ratio of | Investment | ||||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses to | Income (Loss) | |||||||||||||||||||||||||||||||||||
Ratio of | Investment | Average | to Average | ||||||||||||||||||||||||||||||||||
Net Assets | Expenses to | Income | Net Assets | Net Assets | Portfolio | ||||||||||||||||||||||||||||||||
Total | End of | Average | to Average | (Excluding | (Excluding | Turnover | |||||||||||||||||||||||||||||||
Return3 | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | |||||||||||||||||||||||||||||||
21.58 | % | $ | 3,228 | 1.49 | % | 0.95 | % | 1.89 | % | 0.55 | % | 45 | % | ||||||||||||||||||||||||
20.75 | % | $ | 324 | 2.24 | % | 0.24 | % | 2.64 | % | (0.16 | )% | 45 | % | ||||||||||||||||||||||||
20.75 | % | $ | 287 | 2.24 | % | 0.30 | % | 2.64 | % | (0.10 | )% | 45 | % | ||||||||||||||||||||||||
21.27 | % | $ | 17 | 1.74 | % | 0.77 | % | 2.14 | % | 0.37 | % | 45 | % | ||||||||||||||||||||||||
21.78 | % | $ | 343,161 | 1.24 | % | 1.36 | % | 1.64 | % | 0.96 | % | 45 | % | ||||||||||||||||||||||||
First American Funds 2007 Annual Report 63
Table of Contents
Schedule of Investments October 31, 2007, all dollars are rounded to thousands (000)
Small Cap Growth Opportunities Fund | |||||||||
DESCRIPTION | SHARES | VALUE | |||||||
Common Stocks – 97.5% | |||||||||
Consumer Discretionary – 14.8% | |||||||||
Einstein Noah Restaurant Group (a) | 222,016 | $ | 5,439 | ||||||
Gymboree (a) (b) | 114,234 | 3,887 | |||||||
Iconix Brand Group (a) (b) | 191,217 | 4,369 | |||||||
Men’s Wearhouse (b) | 91,619 | 3,872 | |||||||
Pinnacle Entertainment (a) (b) | 139,224 | 4,065 | |||||||
Priceline.com (a) (b) | 37,727 | 3,512 | |||||||
Scientific Games, Class A (a) | 85,047 | 3,075 | |||||||
Skechers U.S.A., Class A (a) | 189,198 | 4,652 | |||||||
Texas Roadhouse, Class A (a) (b) | 374,164 | 4,741 | |||||||
WMS Industries (a) (b) | 140,575 | 4,874 | |||||||
Wolverine World Wide (b) | 144,407 | 3,703 | |||||||
46,189 | |||||||||
Consumer Staples – 0.9% | |||||||||
Nu Skin Enterprises, Class A | 161,067 | 2,782 | |||||||
Energy – 6.5% | |||||||||
Arena Resources (a) | 86,002 | 3,140 | |||||||
Dril-Quip (a) | 92,865 | 4,953 | |||||||
Ember Resources (a) (b) (c) | 1,341,523 | 2,485 | |||||||
Oceaneering International (a) | 35,618 | 2,752 | |||||||
Parallel Petroleum (a) (b) | 167,236 | 3,423 | |||||||
Superior Energy Services (a) (b) | 92,602 | 3,434 | |||||||
20,187 | |||||||||
Financials – 7.4% | |||||||||
BioMed Realty Trust – REIT (b) | 144,365 | 3,449 | |||||||
Corporate Office Properties Trust – REIT (b) | 96,076 | 3,971 | |||||||
East West Bancorp (b) | 109,496 | 3,694 | |||||||
First Mercury Financial (a) | 139,152 | 3,082 | |||||||
Piper Jaffray Companies (a) (b) | 75,933 | 3,903 | |||||||
Prosperity Bancshares (b) | 25,982 | 840 | |||||||
Waddell & Reed Financial, Class A (b) | 121,163 | 4,025 | |||||||
22,964 | |||||||||
Healthcare – 20.6% | |||||||||
American Medical Systems (a) (b) | 185,531 | 2,373 | |||||||
AMN Healthcare Services (a) (b) | 128,668 | 2,446 | |||||||
AngioDynamics (a) | 137,566 | 2,751 | |||||||
Array BioPharma (a) (b) | 284,905 | 3,191 | |||||||
BioMarin Pharmaceutical (a) (b) | 181,905 | 5,044 | |||||||
Durect (a) (b) | 570,035 | 3,318 | |||||||
Eurand (a) (b) | 291,646 | 4,010 | |||||||
Hologic (a) | 46,217 | 3,140 | |||||||
Human Genome Sciences (a) (b) | 374,777 | 3,545 | |||||||
Illumina (a) (b) | 35,214 | 1,977 | |||||||
Integra LifeSciences (a) (b) | 83,363 | 4,041 | |||||||
Medicis Pharmaceutical, Class A (b) | 117,341 | 3,484 | |||||||
Myriad Genetics (a) (b) | 52,295 | 2,895 | |||||||
NuVasive (a) (b) | 80,845 | 3,459 | |||||||
OSI Pharmaceuticals (a) (b) | 81,003 | 3,367 | |||||||
Pediatrix Medical Group (a) | 45,447 | 2,977 | |||||||
Skilled Healthcare Group (a) (b) | 259,950 | 4,258 | |||||||
Trans1 (a) (b) | 42,569 | 1,064 | |||||||
TriZetto Group (a) (b) | 152,302 | 2,489 | |||||||
Wright Medical Group (a) (b) | 159,012 | 4,214 | |||||||
64,043 | |||||||||
Industrials – 16.5% | |||||||||
Administaff (b) | 80,080 | 3,194 | |||||||
Advisory Board (a) (b) | 56,780 | 3,646 | |||||||
AMETEK | 91,833 | 4,316 | |||||||
BE Aerospace (a) (b) | 104,769 | 5,208 | |||||||
DRS Technologies (b) | 91,993 | 5,284 | |||||||
Forward Air (b) | 104,637 | 3,414 | |||||||
Genlyte Group (a) (b) | 53,335 | 3,472 | |||||||
Kenexa (a) (b) | 124,128 | 3,639 | |||||||
Knoll | 157,927 | 2,999 | |||||||
McGrath Rentcorp (b) | 120,025 | 4,115 | |||||||
NCI Building Systems (a) (b) | 59,619 | 2,336 | |||||||
RBC Bearings (a) (b) | 77,606 | 3,119 | |||||||
Resources Connection (b) | 146,863 | 3,344 | |||||||
WESCO International (a) (b) | 69,980 | 3,265 | |||||||
51,351 | |||||||||
Information Technology (d) – 30.8% | |||||||||
ATMI (a) (b) | 97,884 | 3,146 | |||||||
Cirrus Logic (a) | 558,662 | 3,436 | |||||||
Commvault Systems (a) (b) | 173,047 | 3,520 | |||||||
DealerTrack Holdings (a) (b) | 82,255 | 4,038 | |||||||
Emulex (a) (b) | 291,559 | 6,315 | |||||||
FLIR Systems (a) | 34,897 | 2,421 | |||||||
FormFactor (a) (b) | 78,690 | 3,078 | |||||||
Forrester Research (a) | 120,717 | 2,863 | |||||||
Harmonic (a) | 444,776 | 5,480 | |||||||
Internap Network Services (a) (b) | 208,109 | 3,467 | |||||||
Ixia (a) | 631,280 | 6,603 | |||||||
Lawson Software (a) (b) | 428,280 | 4,835 | |||||||
Microsemi (a) (b) | 135,970 | 3,618 | |||||||
Orbotech (a) | 203,630 | 4,215 | |||||||
Perficient (a) (b) | 189,210 | 3,567 | |||||||
PMC-Sierra (a) (b) | 489,699 | 4,412 | |||||||
Polycom (a) (b) | 309,650 | 8,664 | |||||||
Quest Software (a) (b) | 356,853 | 6,209 | |||||||
RF Micro Devices (a) (b) | 485,970 | 3,023 | |||||||
Semtech (a) (b) | 140,760 | 2,408 | |||||||
Silicon Motion Technology – ADR (a) | 210,288 | 5,257 | |||||||
Tridium, Class B, Escrow Shares (a) (c) (e) | 278,500 | 23 | |||||||
TriQuint Semiconductor (a) | 806,182 | 5,055 | |||||||
VideoPropulsion (a) (c) (e) | 784,710 | — | |||||||
95,653 | |||||||||
Total Common Stocks | |||||||||
(Cost $272,573) | 303,169 | ||||||||
Warrants – 0.0% | |||||||||
Hollis-Eden Pharmaceuticals, Warrants (a) (c) (e) | 70,545 | 2 | |||||||
Kuhlman Company, Warrants (a) (c) (e) | 281,680 | — | |||||||
Total Warrants | |||||||||
(Cost $434) | 2 | ||||||||
Short-Term Investment – 4.1% | |||||||||
First American Prime Obligations Fund, Class Z (f) | |||||||||
(Cost $12,962) | 12,962,034 | 12,962 | |||||||
Investment Purchased with Proceeds from Securities Lending – 45.3% | |||||||||
Mount Vernon Securities Lending Prime Portfolio (g) | |||||||||
(Cost $140,812) | 140,811,760 | 140,812 | |||||||
Total Investments – 146.9% | |||||||||
(Cost $426,781) | 456,945 | ||||||||
Other Assets and Liabilities, Net – (46.9)% | (145,974 | ) | |||||||
Total Net Assets – 100.0% | $ | 310,971 | |||||||
(a) | Non-income producing security. |
(b) | This security or a portion of this security is out on loan at October 31, 2007. Total loaned securities had a market value of $137,705 at October 31, 2007. See note 2 in Notes to Financial Statements. |
The accompanying notes are an integral part of the financial statements.
64 First American Funds 2007 Annual Report
Table of Contents
Small Cap Growth Opportunities Fund (concluded)
(c) | Security considered illiquid or restricted. As of October 31, 2007, the market value of these investments was $2,510 or 0.8% of total net assets. See Note 2 in Notes to Financial Statements. |
(d) | The fund is significantly invested in this sector and therefore is subject to additional risks. See note 7 in Notes to Financial Statements. |
(e) | Security is fair valued. As of October 31, 2007, the fair value of these investments was $25 or 0.0% 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 to this fund. See note 3 in Notes to Financial Statements. |
(g) | The fund may loan securities representing up to one third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks, or other institutional borrowers of securities. The fund maintains collateral equal to at least 100% of the value of the securities loaned. The adequacy of the collateral is monitored on a daily basis. The cash collateral received by the fund is invested in this affiliated money market fund. See note 2 in Notes to Financial Statements. |
ADR – | American Depository Receipt |
REIT – | Real Estate Investment Trust |
First American Funds 2007 Annual Report 65
Table of Contents
Schedule of Investments October 31, 2007, all dollars are rounded to thousands (000)
Small Cap Select Fund | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Common Stocks – 96.5% | ||||||||
Consumer Discretionary – 16.3% | ||||||||
1-800-Flowers.com, Class A (a) | 689,414 | $ | 8,266 | |||||
Aftermarket Technology (a) | 356,053 | 12,291 | ||||||
Cato, Class A (b) | 312,197 | 6,269 | ||||||
Children’s Place Retail Stores (a) (b) | 154,813 | 3,963 | ||||||
Christopher & Banks (b) | 537,677 | 7,377 | ||||||
Coinstar (a) (b) | 314,511 | 10,835 | ||||||
Conn’s (a) (b) | 451,625 | 11,548 | ||||||
Cosi (a) (b) (c) | 1,092,612 | 3,759 | ||||||
FGX International Holdings Limited (a) | 71,107 | 1,216 | ||||||
GSI Commerce (a) (b) | 227,228 | 6,474 | ||||||
Hibbett Sports (a) (b) | 206,737 | 4,877 | ||||||
Interface, Class A (b) | 659,153 | 12,610 | ||||||
Journal Communications, Class A | 735,842 | 6,556 | ||||||
McCormick & Schmick’s Seafood Restaurants (a) | 299,942 | 5,093 | ||||||
NutriSystem (a) (b) | 155,063 | 4,667 | ||||||
P.F. Chang’s China Bistro (a) (b) | 465,592 | 13,553 | ||||||
Scientific Games, Class A (a) (b) | 365,527 | 13,214 | ||||||
Skechers U.S.A., Class A (a) | 299,914 | 7,375 | ||||||
Texas Roadhouse, Class A (a) (b) | 568,535 | 7,203 | ||||||
WMS Industries (a) (b) | 541,605 | 18,777 | ||||||
165,923 | ||||||||
Consumer Staples – 2.2% | ||||||||
Hain Celestial Group (a) (b) | 466,484 | 16,355 | ||||||
USANA Health Sciences (a) (b) | 149,853 | 6,115 | ||||||
22,470 | ||||||||
Energy – 7.6% | ||||||||
Arena Resources (a) (b) | 289,666 | 10,576 | ||||||
Atwood Oceanics (a) (b) | 60,408 | 5,089 | ||||||
Brigham Exploration (a) | 347,626 | 2,562 | ||||||
Comstock Resources (a) (b) | 441,810 | 16,148 | ||||||
Edge Petroleum (a) (b) | 962,066 | 8,735 | ||||||
Helix Energy Solutions Group (a) (b) | 502,783 | 23,254 | ||||||
Patterson-UTI Energy (b) | 305,723 | 6,096 | ||||||
St. Mary Land & Exploration (b) | 114,367 | 4,845 | ||||||
77,305 | ||||||||
Financials – 16.0% | ||||||||
Affiliated Managers Group (a) (b) | 63,420 | 8,343 | ||||||
BioMed Realty Trust – REIT (b) | 415,675 | 9,931 | ||||||
Columbia Banking System (b) | 203,748 | 6,330 | ||||||
Cullen/ Frost Bankers (b) | 332,692 | 17,693 | ||||||
Digital Realty Trust – REIT (b) | 193,093 | 8,494 | ||||||
Dime Community Bancshares (b) | 512,168 | 7,370 | ||||||
East West Bancorp (b) | 458,955 | 15,485 | ||||||
First Potomac Realty Trust – REIT (b) | 406,057 | 8,487 | ||||||
Independent Bank (b) | 204,274 | 6,042 | ||||||
Kite Realty Group Trust – REIT (b) | 340,760 | 6,175 | ||||||
Knight Capital Group, Class A (a) (b) | 608,010 | 8,153 | ||||||
LaSalle Hotel Properties – REIT (b) | 195,215 | 8,066 | ||||||
Nara Bancorp (b) | 382,136 | 5,915 | ||||||
National Financial Partners (b) | 114,223 | 6,245 | ||||||
Newcastle Investment – REIT (b) | 492,204 | 7,309 | ||||||
NorthStar Realty Finance – REIT (b) | 166,008 | 1,552 | ||||||
Platinum Underwriters Holdings (b) | 423,914 | 15,261 | ||||||
South Financial Group (b) | 424,687 | 8,774 | ||||||
Umpqua Holdings (b) | 390,717 | 6,615 | ||||||
162,240 | ||||||||
Healthcare – 14.0% | ||||||||
AngioDynamics (a) | 566,320 | 11,326 | ||||||
Arena Pharmaceuticals (a) (b) | 182,947 | 1,758 | ||||||
BioMarin Pharmaceutical (a) (b) | 123,226 | 3,417 | ||||||
Dexcom (a) (b) | 660,052 | 6,138 | ||||||
Exelixis (a) (b) | 548,858 | 6,037 | ||||||
ICU Medical (a) (b) | 279,347 | 11,202 | ||||||
K-V Pharmaceutical, Class A (a) (b) | 605,580 | 18,979 | ||||||
Magellan Health Services (a) (b) | 255,386 | 10,752 | ||||||
Myriad Genetics (a) (b) | 65,467 | 3,624 | ||||||
Pediatrix Medical Group (a) | 246,116 | 16,121 | ||||||
Pharmion (a) (b) | 73,714 | 3,547 | ||||||
Salix Pharmaceuticals (a) (b) | 399,107 | 4,670 | ||||||
Senomyx (a) (b) | 572,213 | 6,615 | ||||||
SonoSite (a) (b) | 617,695 | 21,737 | ||||||
SurModics (a) (b) | 141,643 | 8,037 | ||||||
Theravance (a) (b) | 132,962 | 3,327 | ||||||
Trans1 (a) (b) | 89,619 | 2,240 | ||||||
TriZetto Group (a) (b) | 156,658 | 2,560 | ||||||
142,087 | ||||||||
Industrials – 12.9% | ||||||||
AMETEK | 336,117 | 15,798 | ||||||
BE Aerospace (a) (b) | 177,668 | 8,832 | ||||||
Ceradyne (a) (b) | 71,396 | 4,884 | ||||||
Columbus McKinnon (a) (b) | 359,095 | 11,915 | ||||||
ESCO Technologies (a) (b) | 373,114 | 15,443 | ||||||
Forward Air (b) | 287,710 | 9,388 | ||||||
Genlyte Group (a) (b) | 77,322 | 5,034 | ||||||
Knoll | 29,031 | 551 | ||||||
MasTec (a) | 351,199 | 5,545 | ||||||
NCI Building Systems (a) (b) | 155,387 | 6,088 | ||||||
Power-One (a) (b) | 921,669 | 5,226 | ||||||
Regal-Beloit (b) | 297,630 | 14,596 | ||||||
Timken (b) | 379,076 | 12,608 | ||||||
WESCO International (a) (b) | 319,976 | 14,927 | ||||||
130,835 | ||||||||
Information Technology – 22.7% | ||||||||
ADC Telecommunications (a) | 517,705 | 9,681 | ||||||
Advanced Analogic Technologies (a) (b) | 1,212,741 | 14,650 | ||||||
AudioCodes (a) | 553,403 | 3,603 | ||||||
Cognex | 237,307 | 4,267 | ||||||
Digital River (a) (b) | 286,750 | 15,215 | ||||||
Emulex (a) (b) | 1,055,933 | 22,872 | ||||||
F5 Networks (a) (b) | 373,962 | 13,474 | ||||||
Greenfield Online (a) (b) | 383,947 | 5,859 | ||||||
Harris Stratex Networks, Class A (a) (b) | 621,029 | 11,874 | ||||||
Hittite Microwave (a) (b) | 78,300 | 3,935 | ||||||
Ixia (a) (b) | 592,423 | 6,197 | ||||||
Micrel | 656,074 | 5,937 | ||||||
Orbotech (a) | 230,314 | 4,767 | ||||||
Photronics (a) (b) | 1,070,137 | 11,707 | ||||||
Plexus (a) | 570,401 | 14,716 | ||||||
PMC-Sierra (a) (b) | 1,613,544 | 14,538 | ||||||
Progress Software (a) (b) | 445,496 | 14,572 | ||||||
Silicon Laboratories (a) (b) | 307,553 | 13,440 | ||||||
Synaptics (a) (b) | 207,842 | 11,296 | ||||||
Tessera Technologies (a) (b) | 294,700 | 11,255 | ||||||
TIBCO Software (a) (b) | 616,257 | 5,657 | ||||||
TTM Technologies (a) | 851,059 | 10,919 | ||||||
230,431 | ||||||||
Materials – 3.7% | ||||||||
Albemarle | 52,238 | 2,495 | ||||||
Schnitzer Steel Industries, Class A (b) | 121,819 | 8,049 | ||||||
Terra Industries (a) (b) | 361,857 | 13,349 | ||||||
Texas Industries (b) | 183,115 | 13,378 | ||||||
37,271 | ||||||||
The accompanying notes are an integral part of the financial statements.
66 First American Funds 2007 Annual Report
Table of Contents
Small Cap Select (concluded) | |||||||||
DESCRIPTION | SHARES | VALUE | |||||||
Telecommunication Services – 0.7% | |||||||||
General Communication, Class A (a) | 640,881 | $ | 7,518 | ||||||
Utilities – 0.4% | |||||||||
NSTAR (b) | 127,266 | 4,474 | |||||||
Total Common Stocks | |||||||||
(Cost $890,928) | 980,554 | ||||||||
Short-Term Investment – 3.2% | |||||||||
First American Prime Obligations Fund, Class Z (d) | |||||||||
(Cost $32,674) | 32,673,483 | 32,674 | |||||||
Investment Purchased with Proceeds from Securities Lending – 48.8% | |||||||||
Mount Vernon Securities Lending Prime Portfolio (e) | |||||||||
(Cost $495,224) | 495,224,142 | 495,224 | |||||||
Total Investments – 148.5% | |||||||||
(Cost $1,418,826) | 1,508,452 | ||||||||
Other Assets and Liabilities, Net – (48.5)% | (492,429 | ) | |||||||
Total Net Assets – 100.0% | $ | 1,016,023 | |||||||
(a) | Non-income producing security. |
(b) | This security or a portion of this security is out on loan at October 31, 2007. Total loaned securities had a market value of $482,454 at October 31, 2007. See note 2 in Notes to Financial Statements. |
(c) | A company is considered to be an affiliate of the fund under the Investment Company Act of 1940 if the fund’s holdings of that company represents 5% or more of the outstanding voting securities of the company. Transactions with companies that are or were affiliates during the fiscal year ended October 31, 2007 are as follows: |
Beginning | Purchase | Sales | Ending | Dividend | ||||||||||||||||||||
Issuer | Cost | Cost | Cost | Cost | Income | Value | ||||||||||||||||||
Cosi | $ | 6,496 | $ | 7,040 | $ | 8,607 | $ | 4,929 | $ | — | $ | 3,759 |
(d) | 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. |
(e) | The fund may loan securities representing up to one third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks, or other institutional borrowers of securities. The fund maintains collateral equal to at least 100% of the value of the securities loaned. The adequacy of the collateral is monitored on a daily basis. The cash collateral received by the fund is invested in this affiliated money market fund. See note 2 in Notes to Financial Statements. |
REIT – | Real Estate Investment Trust |
First American Funds 2007 Annual Report 67
Table of Contents
Schedule of Investments October 31, 2007, all dollars are rounded to thousands (000)
Small Cap Value Fund | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Common Stocks – 99.3% | ||||||||
Consumer Discretionary – 12.8% | ||||||||
Aaron Rents (a) | 208,429 | $ | 4,415 | |||||
Ameristar Casinos (a) | 73,031 | 2,377 | ||||||
Belo, Class A (a) | 181,091 | 3,350 | ||||||
CBRL Group (a) | 104,726 | 4,179 | ||||||
Charming Shoppes (a) (b) | 282,949 | 2,100 | ||||||
Domino’s Pizza (a) | 223,200 | 3,446 | ||||||
Ethan Allen Interiors (a) | 129,482 | 3,996 | ||||||
Fred’s (a) | 79,474 | 842 | ||||||
Group 1 Automotive (a) | 129,651 | 4,026 | ||||||
Interface, Class A (a) | 168,799 | 3,229 | ||||||
Jos. A. Bank Clothiers (a) (b) | 116,272 | 3,396 | ||||||
Men’s Wearhouse (a) | 81,150 | 3,429 | ||||||
Skechers U.S.A., Class A (a) (b) | 141,561 | 3,481 | ||||||
Wolverine World Wide (a) | 190,064 | 4,873 | ||||||
47,139 | ||||||||
Consumer Staples – 3.4% | ||||||||
Elizabeth Arden (a) (b) | 210,630 | 5,245 | ||||||
Nu Skin Enterprises, Class A (a) | 203,110 | 3,508 | ||||||
Ralcorp Holdings (b) | 69,154 | 3,893 | ||||||
12,646 | ||||||||
Energy – 6.7% | ||||||||
Brigham Exploration (b) | 503,537 | 3,711 | ||||||
Cimarex Energy | 74,473 | 3,017 | ||||||
Dril-Quip (b) | 42,639 | 2,274 | ||||||
Oil States International (a) (b) | 53,120 | 2,294 | ||||||
Penn Virginia (a) | 92,750 | 4,489 | ||||||
PetroQuest Energy (b) | 237,560 | 3,065 | ||||||
Swift Energy (a) (b) | 123,937 | 5,878 | ||||||
24,728 | ||||||||
Financials (c) – 28.1% | ||||||||
Alabama National BanCorporation (a) | 14,493 | 1,142 | ||||||
Alexandria Real Estate Equities – REIT (a) | 40,142 | 4,140 | ||||||
American Equity Investment Life Holding (a) | 510,572 | 4,988 | ||||||
Apollo Investment (a) | 144,544 | 3,007 | ||||||
Capitol Bancorp (a) | 73,988 | 1,569 | ||||||
Cathay General Bancorp (a) | 152,230 | 4,715 | ||||||
City Bank (a) | 77,497 | 1,856 | ||||||
Colonial BancGroup (a) | 181,603 | 3,483 | ||||||
Delphi Financial Group, Class A (a) | 111,317 | 4,314 | ||||||
First Midwest Bancorp (a) | 118,852 | 4,003 | ||||||
FirstFed Financial (a) (b) | 80,360 | 3,438 | ||||||
FPIC Insurance Group (b) | 127,939 | 5,345 | ||||||
Frontier Financial (a) | 210,760 | 4,677 | ||||||
IBERIABANK | 81,103 | 4,020 | ||||||
Independent Bank (a) | 129,132 | 3,820 | ||||||
Knight Capital Group, Class A (a) (b) | 195,558 | 2,622 | ||||||
LaSalle Hotel Properties – REIT (a) | 88,771 | 3,668 | ||||||
Mid-America Apartment Communities – REIT (a) | 73,498 | 3,822 | ||||||
National Retail Properties – REIT (a) | 180,375 | 4,572 | ||||||
Newcastle Investment – REIT (a) | 191,562 | 2,845 | ||||||
Piper Jaffray Companies (a) (b) | 95,224 | 4,894 | ||||||
Provident Bankshares (a) | 177,316 | 4,374 | ||||||
PS Business Parks – REIT | 66,082 | 3,853 | ||||||
Redwood Trust – REIT (a) | 94,540 | 2,491 | ||||||
Selective Insurance Group (a) | 207,865 | 5,053 | ||||||
Sterling Bancshares (a) | 466,273 | 5,689 | ||||||
Waddell & Reed Financial, Class A (a) | 168,828 | 5,608 | ||||||
104,008 | ||||||||
Healthcare – 7.8% | ||||||||
AMERIGROUP (a) (b) | 105,774 | 3,702 | ||||||
Pediatrix Medical Group (b) | 45,308 | 2,968 | ||||||
Perrigo (a) | 99,474 | 2,358 | ||||||
Res-Care (b) | 210,386 | 5,167 | ||||||
Sciele Pharma (a) (b) | 206,750 | 5,260 | ||||||
STERIS (a) | 144,192 | 4,187 | ||||||
Varian (a) (b) | 30,479 | 2,252 | ||||||
Vital Signs (a) | 55,420 | 2,932 | ||||||
28,826 | ||||||||
Industrials – 13.9% | ||||||||
AMETEK | 89,839 | 4,222 | ||||||
Brady, Class A (a) | 72,530 | 2,676 | ||||||
CRA International (a) (b) | 55,369 | 2,867 | ||||||
Crane | 105,351 | 4,998 | ||||||
EMCOR Group (b) | 56,111 | 1,932 | ||||||
Esterline Technologies (a) (b) | 44,065 | 2,414 | ||||||
Forward Air (a) | 47,400 | 1,547 | ||||||
Kforce (b) | 160,037 | 1,927 | ||||||
Moog, Class A (a) (b) | 60,351 | 2,785 | ||||||
NCI Building Systems (a) (b) | 97,374 | 3,815 | ||||||
Nordson (a) | 88,591 | 4,740 | ||||||
Regal-Beloit (a) | 122,518 | 6,008 | ||||||
SkyWest (a) | 81,236 | 2,217 | ||||||
Trinity Industries (a) | 50,868 | 1,838 | ||||||
Triumph Group | 12,300 | 979 | ||||||
URS (b) | 57,362 | 3,546 | ||||||
WESCO International (a) (b) | 60,015 | 2,800 | ||||||
51,311 | ||||||||
Information Technology – 15.3% | ||||||||
CACI International, Class A (a) (b) | 38,841 | 2,092 | ||||||
Emulex (b) | 302,959 | 6,562 | ||||||
Hutchinson Technology (a) (b) | 148,682 | 3,528 | ||||||
Ixia (b) | 421,772 | 4,412 | ||||||
Micrel | 342,754 | 3,102 | ||||||
Pericom Semiconductor (b) | 319,418 | 4,772 | ||||||
Photronics (a) (b) | 169,826 | 1,858 | ||||||
Plantronics (a) | 67,976 | 1,859 | ||||||
Polycom (b) | 126,000 | 3,525 | ||||||
Progress Software (b) | 188,555 | 6,168 | ||||||
Silicon Motion Technology – ADR (b) | 121,956 | 3,049 | ||||||
TIBCO Software (a) (b) | 356,992 | 3,277 | ||||||
TriQuint Semiconductor (b) | 396,668 | 2,487 | ||||||
TTM Technologies (b) | 363,062 | 4,658 | ||||||
United Online (a) | 305,679 | 5,380 | ||||||
56,729 | ||||||||
Materials – 6.5% | ||||||||
Albemarle | 75,831 | 3,622 | ||||||
AptarGroup | 88,384 | 3,951 | ||||||
Arch Chemicals | 42,113 | 1,921 | ||||||
Commercial Metals | 127,840 | 4,012 | ||||||
Metal Management | 44,872 | 2,359 | ||||||
Terra Industries (a) (b) | 109,356 | 4,034 | ||||||
Texas Industries (a) | 56,408 | 4,121 | ||||||
24,020 | ||||||||
Utilities – 4.8% | ||||||||
Black Hills (a) | 69,332 | 3,080 | ||||||
El Paso Electric (b) | 160,604 | 3,911 | ||||||
Northwest Natural Gas | 56,625 | 2,728 |
The accompanying notes are an integral part of the financial statements.
68 First American Funds 2007 Annual Report
Table of Contents
Small Cap Value Fund (concluded) | |||||||||
DESCRIPTION | SHARES | VALUE | |||||||
PNM Resources (a) | 137,152 | $ | 3,430 | ||||||
Westar Energy (a) | 169,288 | 4,506 | |||||||
17,655 | |||||||||
Total Common Stocks | |||||||||
(Cost $336,548) | 367,062 | ||||||||
Short-Term Investment – 0.4% | |||||||||
First American Prime Obligations Fund, Class Z (d) | |||||||||
(Cost $1,704) | 1,704,269 | 1,704 | |||||||
Investment Purchased with Proceeds from Securities Lending – 49.7% | |||||||||
Mount Vernon Securities Lending Prime Portfolio (e) | |||||||||
(Cost $183,639) | 183,638,605 | 183,639 | |||||||
Total Investments – 149.4% | |||||||||
(Cost $521,891) | 552,405 | ||||||||
Other Assets and Liabilities, Net – (49.4)% | (182,742 | ) | |||||||
Total Net Assets – 100.0% | $ | 369,663 | |||||||
(a) | This security or a portion of this security is out on loan at October 31, 2007. Total loaned securities had a market value of $178,837 at October 31, 2007. See note 2 in Notes to Financial Statements. |
(b) | Non-income producing security. |
(c) | The fund is significantly invested in this sector and therefore is subject to additional risks. See note 7 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 to this fund. See note 3 in Notes to Financial Statements. |
(e) | The fund may loan securities representing up to one third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks, or other institutional borrowers of securities. The fund maintains collateral equal to at least 100% of the value of the securities loaned. The adequacy of the collateral is monitored on a daily basis. The cash collateral received by the fund is invested in this affiliated money market fund. See note 2 in Notes to Financial Statements. |
ADR – | American Depository Receipt |
REIT – | Real Estate Investment Trust |
First American Funds 2007 Annual Report 69
Table of Contents
Schedule of Investments October 31, 2007, all dollars are rounded to thousands (000)
Small-Mid Cap Core Fund | |||||||||
DESCRIPTION | SHARES | VALUE | |||||||
Common Stocks – 99.9% | |||||||||
Consumer Discretionary – 14.9% | |||||||||
Aftermarket Technology (a) | 29,697 | $ | 1,025 | ||||||
Dick’s Sporting Goods (a) | 28,677 | 957 | |||||||
J. Crew Group (a) (b) | 19,798 | 741 | |||||||
Jos. A. Bank Clothiers (a) (b) | 55,422 | 1,619 | |||||||
Men’s Wearhouse (b) | 40,981 | 1,732 | |||||||
Newell Rubbermaid | 56,897 | 1,659 | |||||||
Polo Ralph Lauren | 30,163 | 2,075 | |||||||
R.H. Donnelley (a) (b) | 28,646 | 1,571 | |||||||
Stanley Works (b) | 22,193 | 1,277 | |||||||
Tiffany & Company | 20,931 | 1,134 | |||||||
WMS Industries (a) (b) | 91,653 | 3,178 | |||||||
16,968 | |||||||||
Consumer Staples – 1.8% | |||||||||
Corn Products International | 48,266 | 2,053 | |||||||
Energy – 7.5% | |||||||||
Cameron International (a) (b) | 20,509 | 1,997 | |||||||
Cimarex Energy | 53,248 | 2,157 | |||||||
Dril-Quip (a) | 28,817 | 1,537 | |||||||
Helix Energy Solutions Group (a) (b) | 35,199 | 1,628 | |||||||
St. Mary Land & Exploration (b) | 28,021 | 1,187 | |||||||
8,506 | |||||||||
Financials – 14.9% | |||||||||
Affiliated Managers Group (a) (b) | 17,071 | 2,246 | |||||||
AllianceBernstein Holding | 13,560 | 1,158 | |||||||
City National (b) | 30,996 | 2,095 | |||||||
Everest Re Group | 24,860 | 2,649 | |||||||
FirstFed Financial (a) (b) | 31,464 | 1,346 | |||||||
LaSalle Hotel Properties – REIT (b) | 29,848 | 1,233 | |||||||
National Retail Properties – REIT | 45,283 | 1,148 | |||||||
Piper Jaffray Companies (a) (b) | 37,397 | 1,922 | |||||||
W.R. Berkley | 79,666 | 2,397 | |||||||
Zions Bancorporation (b) | 12,208 | 722 | |||||||
16,916 | |||||||||
Healthcare – 15.0% | |||||||||
AMERIGROUP (a) (b) | 43,026 | 1,506 | |||||||
ArthroCare (a) (b) | 31,644 | 2,052 | |||||||
BioMarin Pharmaceutical (a) (b) | 82,465 | 2,287 | |||||||
DENTSPLY International | 50,879 | 2,110 | |||||||
Henry Schein (a) | 9,531 | 571 | |||||||
Intuitive Surgical (a) (b) | 10,022 | 3,276 | |||||||
Pediatrix Medical Group (a) | 33,637 | 2,203 | |||||||
Sciele Pharma (a) (b) | 86,821 | 2,209 | |||||||
TriZetto Group (a) (b) | 49,383 | 807 | |||||||
17,021 | |||||||||
Industrials – 13.6% | |||||||||
AMETEK | 48,814 | 2,294 | |||||||
Con-way | 35,002 | 1,491 | |||||||
Crane | 34,544 | 1,639 | |||||||
Dun & Bradstreet | 17,306 | 1,676 | |||||||
Forward Air (b) | 41,992 | 1,370 | |||||||
L-3 Communications Holdings | 11,267 | 1,235 | |||||||
Regal-Beloit (b) | 33,533 | 1,645 | |||||||
Republic Services | 102,539 | 3,506 | |||||||
US Airways Group (a) | 19,085 | 528 | |||||||
15,384 | |||||||||
Information Technology – 19.2% | |||||||||
Amphenol, Class A | 57,052 | 2,526 | |||||||
Digital River (a) (b) | 23,662 | 1,256 | |||||||
Emulex (a) | 134,117 | 2,905 | |||||||
F5 Networks (a) | 76,076 | 2,741 | |||||||
Fairchild Semiconductor International, Class A (a) (b) | 90,017 | 1,643 | |||||||
Harris | 23,354 | 1,414 | |||||||
Maxim Integrated Products | 54,456 | 1,476 | |||||||
Micrel (b) | 124,970 | 1,131 | |||||||
Plexus (a) | 74,379 | 1,919 | |||||||
Progress Software (a) (b) | 30,769 | 1,006 | |||||||
Teradata (a) | 54,924 | 1,567 | |||||||
TIBCO Software (a) (b) | 126,062 | 1,157 | |||||||
Xilinx (b) | 43,498 | 1,061 | |||||||
21,802 | |||||||||
Materials – 9.5% | |||||||||
Cleveland-Cliffs | 11,724 | 1,121 | |||||||
Owens-Illinois (a) | 77,162 | 3,428 | |||||||
Pactiv (a) | 50,670 | 1,392 | |||||||
Smurfit-Stone Container (a) | 156,779 | 1,899 | |||||||
Terra Industries (a) (b) | 80,264 | 2,961 | |||||||
10,801 | |||||||||
Telecommunication Services – 1.5% | |||||||||
Windstream (b) | 122,764 | 1,651 | |||||||
Utilities – 2.0% | |||||||||
TECO Energy (b) | 58,720 | 988 | |||||||
Westar Energy (b) | 47,900 | 1,275 | |||||||
2,263 | |||||||||
Total Common Stocks | |||||||||
(Cost $102,170) | 113,365 | ||||||||
Short-Term Investment – 0.2% | |||||||||
First American Prime Obligations Fund, Class Z (c) | |||||||||
(Cost $228) | 228,439 | 228 | |||||||
Investment Purchased with Proceeds from Securities Lending – 42.3% | |||||||||
Mount Vernon Securities Lending Prime Portfolio (d) | |||||||||
(Cost $48,040) | 48,040,221 | 48,040 | |||||||
Total Investments – 142.4% | |||||||||
(Cost $150,438) | 161,633 | ||||||||
Other Assets and Liabilities, Net – (42.4)% | (48,169 | ) | |||||||
Total Net Assets – 100.0% | $ | 113,464 | |||||||
(a) | Non-income producing security. |
(b) | This security or a portion of this security is out on loan at October 31, 2007. Total loaned securities had a market value of $46,826 at October 31, 2007. See note 2 in Notes to Financial Statements. |
(c) | 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. |
(d) | The fund may loan securities representing up to one third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks, or other institutional borrowers of securities. The fund maintains collateral equal to at least 100% of the value of the securities loaned. The adequacy of the collateral is monitored on a daily basis. The cash collateral received by the fund is invested in this affiliated money market fund. See note 2 in Notes to Financial Statements. |
REIT – | Real Estate Investment Trust |
The accompanying notes are an integral part of the financial statements.
70 First American Funds 2007 Annual Report
Table of Contents
Statements of Assets and Liabilities October 31, 2007, all dollars and shares are rounded to thousands (000), except per share data
Small Cap | ||||||||||||||||||||||
Growth | ||||||||||||||||||||||
Opportunities | Small Cap | Small Cap | Small-Mid Cap | |||||||||||||||||||
Fund | Select Fund | Value Fund | Core Fund | |||||||||||||||||||
Investments in unaffiliated securities, at cost | $ | 273,007 | $ | 890,928 | $ | 336,548 | $ | 102,170 | ||||||||||||||
Investment in affiliated money market fund, at cost | 12,962 | 32,674 | 1,704 | 228 | ||||||||||||||||||
Affiliated investment purchased with proceeds from securities lending, at cost (note 2) | 140,812 | 495,224 | 183,639 | 48,040 | ||||||||||||||||||
ASSETS: | ||||||||||||||||||||||
Investments in unaffiliated securities, at value* (note 2) | $ | 303,171 | $ | 980,554 | $ | 367,062 | $ | 113,365 | ||||||||||||||
Investment in affiliated money market fund, at value (note 2) | 12,962 | 32,674 | 1,704 | 228 | ||||||||||||||||||
Affiliated investment purchased with proceeds from securities lending, at value (note 2) | 140,812 | 495,224 | 183,639 | 48,040 | ||||||||||||||||||
Cash | — | 690 | — | — | ||||||||||||||||||
Receivable for dividends and interest | 124 | 751 | 401 | 23 | ||||||||||||||||||
Receivable for investment securities sold | 6,029 | 7,486 | 1,365 | 2,495 | ||||||||||||||||||
Receivable for capital shares sold | 396 | 1,000 | 325 | 12 | ||||||||||||||||||
Prepaid expenses and other assets | 36 | 42 | 36 | 27 | ||||||||||||||||||
Total assets | 463,530 | 1,518,421 | 554,532 | 164,190 | ||||||||||||||||||
LIABILITIES: | ||||||||||||||||||||||
Payable for capital shares redeemed | 267 | 2,782 | 892 | 200 | ||||||||||||||||||
Payable upon return of securities loaned (note 2) | 140,812 | 495,224 | 183,639 | 48,040 | ||||||||||||||||||
Payable for investment securities purchased | 11,156 | 3,445 | — | 2,364 | ||||||||||||||||||
Payable to affiliates (note 3) | 280 | 832 | 309 | 101 | ||||||||||||||||||
Payable for distribution and shareholder servicing fees | 37 | 107 | 22 | 15 | ||||||||||||||||||
Accrued expenses and other liabilities | 7 | 8 | 7 | 6 | ||||||||||||||||||
Total liabilities | 152,559 | 502,398 | 184,869 | 50,726 | ||||||||||||||||||
Net assets | $ | 310,971 | $ | 1,016,023 | $ | 369,663 | $ | 113,464 | ||||||||||||||
COMPOSITION OF NET ASSETS: | ||||||||||||||||||||||
Portfolio capital | $ | 263,886 | $ | 895,705 | $ | 302,295 | $ | 544,228 | ||||||||||||||
Undistributed (distributions in excess of) net investment income | (6 | ) | (7 | ) | 3,082 | (5 | ) | |||||||||||||||
Accumulated net realized gain (loss) on investments | 16,927 | 30,699 | 33,772 | (441,954 | ) | |||||||||||||||||
Net unrealized appreciation of investments | 30,164 | 89,626 | 30,514 | 11,195 | ||||||||||||||||||
Net assets | $ | 310,971 | $ | 1,016,023 | $ | 369,663 | $ | 113,464 | ||||||||||||||
* Including securities loaned, at value | $ | 137,705 | $ | 482,454 | $ | 178,837 | $ | 46,826 | ||||||||||||||
Class A: | ||||||||||||||||||||||
Net assets | $ | 149,231 | $ | 238,129 | $ | 53,498 | $ | 21,817 | ||||||||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 6,892 | 16,937 | 3,957 | 2,050 | ||||||||||||||||||
Net asset value and redemption price per share | $ | 21.65 | $ | 14.06 | $ | 13.52 | $ | 10.64 | ||||||||||||||
Maximum offering price per share1 | $ | 22.91 | $ | 14.88 | $ | 14.31 | $ | 11.26 | ||||||||||||||
Class B: | ||||||||||||||||||||||
Net assets | $ | 4,467 | $ | 13,720 | $ | 6,213 | $ | 6,883 | ||||||||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 228 | 1,187 | 521 | 748 | ||||||||||||||||||
Net asset value, offering price, and redemption price per share2 | $ | 19.56 | $ | 11.56 | $ | 11.94 | $ | 9.21 | ||||||||||||||
Class C: | ||||||||||||||||||||||
Net assets | $ | 2,295 | $ | 34,505 | $ | 4,006 | $ | 5,190 | ||||||||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 113 | 2,627 | 329 | 517 | ||||||||||||||||||
Net asset value, offering price, and redemption price per share2 | $ | 20.41 | $ | 13.13 | $ | 12.19 | $ | 10.04 | ||||||||||||||
Class R3: | ||||||||||||||||||||||
Net assets | $ | 522 | $ | 38,181 | $ | 3,263 | $ | — | ||||||||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 24 | 2,754 | 244 | — | ||||||||||||||||||
Net asset value, offering price, and redemption price per share | $ | 21.49 | $ | 13.86 | $ | 13.35 | $ | — | ||||||||||||||
Class Y: | ||||||||||||||||||||||
Net assets | $ | 154,456 | $ | 691,488 | $ | 302,683 | $ | 79,574 | ||||||||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 6,706 | 45,795 | 21,820 | 7,178 | ||||||||||||||||||
Net asset value, offering price, and redemption price per share | $ | 23.03 | $ | 15.10 | $ | 13.87 | $ | 11.09 | ||||||||||||||
1 | The offering price is calculated by dividing the net asset value by 1 minus the maximum sales charge of 5.50%. | |
2 | Class B and C have a contingent deferred sales charge. For a description of this sales charge, see notes 1 and 3 in Notes to Financial Statements. | |
3 | Class R is not offered by the Small-Mid Cap Core Fund. |
First American Funds 2007 Annual Report 71
Table of Contents
Statements of Operations For the year ended October 31, 2007, all dollars are rounded to thousands (000)
Small Cap Growth | Small Cap | Small Cap | Small-Mid Cap | |||||||||||||||||||
Opportunities Fund | Select Fund | Value Fund | Core Fund | |||||||||||||||||||
INVESTMENT INCOME: | ||||||||||||||||||||||
Dividends from unaffiliated securities | $ | 867 | $ | 7,140 | $ | 8,204 | $ | 1,203 | ||||||||||||||
Dividends from affiliated securities | 427 | 1,632 | 274 | 53 | ||||||||||||||||||
Less: Foreign taxes withheld | — | 1 | — | 1 | ||||||||||||||||||
Securities lending income | 453 | 2,249 | 369 | 156 | ||||||||||||||||||
Total investment income | 1,747 | 11,022 | 8,847 | 1,413 | ||||||||||||||||||
EXPENSES (note 3): | ||||||||||||||||||||||
Investment advisory fees | 3,181 | 7,625 | 2,865 | 829 | ||||||||||||||||||
Administration fees | 708 | 2,427 | 914 | 261 | ||||||||||||||||||
Transfer agent fees | 163 | 349 | 170 | 220 | ||||||||||||||||||
Custodian fees | 16 | 57 | 21 | 7 | ||||||||||||||||||
Professional fees | 42 | 42 | 42 | 42 | ||||||||||||||||||
Registration fees | 60 | 74 | 55 | 44 | ||||||||||||||||||
Postage and printing fees | 39 | 70 | 23 | 18 | ||||||||||||||||||
Directors’ fees | 23 | 21 | 22 | 23 | ||||||||||||||||||
Other expenses | 22 | 21 | 23 | 21 | ||||||||||||||||||
Distribution and shareholder servicing fees – Class A | 372 | 674 | 145 | 61 | ||||||||||||||||||
Distribution and shareholder servicing fees – Class B | 55 | 146 | 71 | 78 | ||||||||||||||||||
Distribution and shareholder servicing fees – Class C | 25 | 270 | 43 | 52 | ||||||||||||||||||
Distribution and shareholder servicing fees – Class R1 | 5 | 102 | 13 | — | ||||||||||||||||||
Total expenses | 4,711 | 11,878 | 4,407 | 1,656 | ||||||||||||||||||
Less: Fee waivers (note 3) | (376 | ) | (30 | ) | (5 | ) | (91 | ) | ||||||||||||||
Less: Indirect payments from custodian (note 3) | (9 | ) | (13 | ) | (5 | ) | (1 | ) | ||||||||||||||
Total net expenses | 4,326 | 11,835 | 4,397 | 1,564 | ||||||||||||||||||
Investment income (loss) – net | (2,579 | ) | (813 | ) | 4,450 | (151 | ) | |||||||||||||||
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS – NET (note 5): | ||||||||||||||||||||||
Net realized gain on unaffiliated investments | 29,255 | 81,194 | 42,939 | 9,015 | ||||||||||||||||||
Net realized loss on affiliated investments | — | (2,200 | ) | — | — | |||||||||||||||||
Net realized gain on in-kind redemption | — | 6,598 | — | — | ||||||||||||||||||
Net change in unrealized appreciation or depreciation of investments | 11,753 | (12,056 | ) | (29,588 | ) | 3,441 | ||||||||||||||||
Net gain on investments | 41,008 | 73,536 | 13,351 | 12,456 | ||||||||||||||||||
Net increase in net assets resulting from operations | $ | 38,429 | $ | 72,723 | $ | 17,801 | $ | 12,305 | ||||||||||||||
1 | Class R is not offered by the Small-Mid Cap Core Fund. |
The accompanying notes are an integral part of the financial statements.
72 First American Funds 2007 Annual Report
Table of Contents
(This page intentionally left blank.)
Table of Contents
Statements of Changes in Net Assets all dollars are rounded to thousands (000)
Small Cap Growth | Small Cap | ||||||||||||||||||||
Opportunities Fund | Select Fund | ||||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||||
10/31/07 | 10/31/06 | 10/31/07 | 10/31/06 | ||||||||||||||||||
OPERATIONS: | |||||||||||||||||||||
Investment income (loss) – net | $ | (2,579 | ) | $ | (2,332 | ) | $ | (813 | ) | $ | (1,912 | ) | |||||||||
Net realized gain on unaffiliated investments | 29,255 | 20,657 | 81,194 | 152,452 | |||||||||||||||||
Net realized gain (loss) on affiliated investments | — | (2,847 | ) | (2,200 | ) | 684 | |||||||||||||||
Net realized gain (loss) on in-kind redemption (note 9) | — | (247 | ) | 6,598 | — | ||||||||||||||||
Net change in unrealized appreciation or depreciation of investments | 11,753 | 16,707 | (12,056 | ) | 23,065 | ||||||||||||||||
Net increase in net assets resulting from operations | 38,429 | 31,938 | 72,723 | 174,289 | |||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||||||||||||
Investment income – net: | |||||||||||||||||||||
Class A | — | — | — | — | |||||||||||||||||
Class B | — | — | — | — | |||||||||||||||||
Class C | — | — | — | — | |||||||||||||||||
Class R | — | — | — | — | |||||||||||||||||
Class Y | — | — | — | — | |||||||||||||||||
Net realized gain on investments: | |||||||||||||||||||||
Class A | (8,975 | ) | (15,190 | ) | (33,807 | ) | (21,746 | ) | |||||||||||||
Class B | (443 | ) | (1,681 | ) | (2,398 | ) | (3,108 | ) | |||||||||||||
Class C | (178 | ) | (580 | ) | (2,921 | ) | (2,833 | ) | |||||||||||||
Class R | (81 | ) | (1 | ) | (578 | ) | (130,679 | ) | |||||||||||||
Class Y | (10,242 | ) | (38,069 | ) | (94,474 | ) | (82 | ) | |||||||||||||
Total distributions | (19,919 | ) | (55,521 | ) | (134,178 | ) | (158,448 | ) | |||||||||||||
CAPITAL SHARE TRANSACTIONS (note 4): | |||||||||||||||||||||
Class A: | |||||||||||||||||||||
Proceeds from sales | 42,677 | 80,056 | 169,005 | 133,764 | |||||||||||||||||
Reinvestment of distributions | 8,788 | 14,824 | 24,845 | 21,190 | |||||||||||||||||
Payments for redemptions | (49,599 | ) | (32,674 | ) | (161,596 | ) | (40,923 | ) | |||||||||||||
Increase (decrease) in net assets from Class A transactions | 1,866 | 62,206 | 32,254 | 114,031 | |||||||||||||||||
Class B: | |||||||||||||||||||||
Proceeds from sales | 235 | 523 | 1,987 | 2,081 | |||||||||||||||||
Reinvestment of distributions | 412 | 1,555 | 2,264 | 2,956 | |||||||||||||||||
Payments for redemptions (note 3) | (2,909 | ) | (2,849 | ) | (4,115 | ) | (3,022 | ) | |||||||||||||
Increase (decrease) in net assets from Class B transactions | (2,262 | ) | (771 | ) | 136 | 2,015 | |||||||||||||||
Class C: | |||||||||||||||||||||
Proceeds from sales | 807 | 999 | 21,138 | 7,783 | |||||||||||||||||
Reinvestment of distributions | 151 | 576 | 2,706 | 2,746 | |||||||||||||||||
Payments for redemptions (note 3) | (1,431 | ) | (1,520 | ) | (6,772 | ) | (5,254 | ) | |||||||||||||
Increase (decrease) in net assets from Class C transactions | (473 | ) | 55 | 17,072 | 5,275 | ||||||||||||||||
Class R1: | |||||||||||||||||||||
Proceeds from sales | 449 | 1,386 | 39,652 | 2,537 | |||||||||||||||||
Reinvestment of distributions | 81 | 1 | 578 | 82 | |||||||||||||||||
Payments for redemptions | (1,395 | ) | (76 | ) | (5,019 | ) | (352 | ) | |||||||||||||
Increase (decrease) in net assets from Class R transactions | (865 | ) | 1,311 | 35,211 | 2,267 | ||||||||||||||||
Class Y: | |||||||||||||||||||||
Proceeds from sales | 15,021 | 40,576 | 200,087 | 129,554 | |||||||||||||||||
Reinvestment of distributions | 7,633 | 29,517 | 71,615 | 103,456 | |||||||||||||||||
Payments for redemptions | (60,378 | ) | (77,933 | ) | (270,010 | ) | (195,174 | ) | |||||||||||||
Increase (decrease) in net assets from Class Y transactions | (37,724 | ) | (7,840 | ) | 1,692 | 37,836 | |||||||||||||||
Increase (decrease) in net assets from capital share transactions | (39,458 | ) | 54,961 | 86,365 | 161,424 | ||||||||||||||||
Increase in net assets from regulatory settlement proceeds (Note 10) | 177 | — | — | — | |||||||||||||||||
Total increase (decrease) in net assets | (20,771 | ) | 31,378 | 24,910 | 177,265 | ||||||||||||||||
Net assets at beginning of year | 331,742 | 300,364 | 991,113 | 813,848 | |||||||||||||||||
Net assets at end of year | $ | 310,971 | $ | 331,742 | $ | 1,016,023 | $ | 991,113 | |||||||||||||
Undistributed (distributions in excess of) net investment income at end of year | $ | (6 | ) | $ | — | $ | (7 | ) | $ | — | |||||||||||
1 | Class R is not offered by the Small-Mid Cap Core Fund. |
The accompanying notes are an integral part of the financial statements.
74 First American Funds 2007 Annual Report
Table of Contents
Small Cap | Small-Mid Cap | |||||||||||||||||||
Value Fund | Core Fund | |||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||
10/31/07 | 10/31/06 | 10/31/07 | 10/31/06 | |||||||||||||||||
$ | 4,450 | $ | 1,680 | $ | (151 | ) | $ | 149 | ||||||||||||
42,939 | 77,955 | 9,015 | 4,374 | |||||||||||||||||
— | — | — | — | |||||||||||||||||
— | — | — | — | |||||||||||||||||
(29,588 | ) | (534 | ) | 3,441 | 10,366 | |||||||||||||||
17,801 | 79,101 | 12,305 | 14,889 | |||||||||||||||||
(94 | ) | (145 | ) | — | — | |||||||||||||||
— | — | — | — | |||||||||||||||||
— | — | — | — | |||||||||||||||||
(3 | ) | (2 | ) | — | — | |||||||||||||||
(1,306 | ) | (1,819 | ) | (108 | ) | — | ||||||||||||||
(9,082 | ) | (10,660 | ) | — | — | |||||||||||||||
(1,323 | ) | (2,162 | ) | — | — | |||||||||||||||
(764 | ) | (1,094 | ) | — | — | |||||||||||||||
(321 | ) | (75,707 | ) | — | — | |||||||||||||||
(52,686 | ) | (19 | ) | — | — | |||||||||||||||
(65,579 | ) | (91,608 | ) | (108 | ) | — | ||||||||||||||
9,352 | 12,626 | 5,584 | 11,715 | |||||||||||||||||
8,932 | 10,483 | — | — | |||||||||||||||||
(15,854 | ) | (10,454 | ) | (12,536 | ) | (11,925 | ) | |||||||||||||
2,430 | 12,655 | (6,952 | ) | (210 | ) | |||||||||||||||
183 | 422 | 294 | 416 | |||||||||||||||||
1,220 | 2,072 | — | — | |||||||||||||||||
(1,975 | ) | (2,975 | ) | (2,885 | ) | (3,430 | ) | |||||||||||||
(572 | ) | (481 | ) | (2,591 | ) | (3,014 | ) | |||||||||||||
1,120 | 825 | 1,179 | 2,029 | |||||||||||||||||
736 | 1,069 | — | — | |||||||||||||||||
(1,648 | ) | (1,809 | ) | (1,497 | ) | (2,015 | ) | |||||||||||||
208 | 85 | (318 | ) | 14 | ||||||||||||||||
2,573 | 1,900 | — | — | |||||||||||||||||
323 | 22 | — | — | |||||||||||||||||
(1,268 | ) | (196 | ) | — | — | |||||||||||||||
1,628 | 1,726 | — | — | |||||||||||||||||
39,919 | 50,760 | 27,632 | 49,629 | |||||||||||||||||
46,881 | 66,461 | 38 | — | |||||||||||||||||
(100,232 | ) | (99,660 | ) | (23,844 | ) | (22,033 | ) | |||||||||||||
(13,432 | ) | 17,561 | 3,826 | 27,596 | ||||||||||||||||
(9,738 | ) | 31,546 | (6,035 | ) | 24,386 | |||||||||||||||
— | — | — | — | |||||||||||||||||
(57,516 | ) | 19,039 | 6,162 | 39,275 | ||||||||||||||||
427,179 | 408,140 | 107,302 | 68,027 | |||||||||||||||||
$ | 369,663 | $ | 427,179 | $ | 113,464 | $ | 107,302 | |||||||||||||
$ | 3,082 | $ | — | $ | (5 | ) | $ | 93 | ||||||||||||
First American Funds 2007 Annual Report 75
Table of Contents
Financial Highlights For a share outstanding throughout the indicated periods.
Realized and | ||||||||||||||||||||||||||||
Unrealized | Net Asset | |||||||||||||||||||||||||||
Net Asset | Net | Gains | Distributions | Value | ||||||||||||||||||||||||
Value | Investment | (Losses) on | from Net | End of | ||||||||||||||||||||||||
Beginning | Loss | Investments | Realized Gains | Period | ||||||||||||||||||||||||
of Period | ||||||||||||||||||||||||||||
Small Cap Growth Opportunities Fund1 | ||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
20072 | $ | 20.49 | $ | (0.19 | ) | $ | 2.67 | $ | (1.32 | ) | $ | 21.65 | ||||||||||||||||
20062 | 22.79 | (0.18 | ) | 2.37 | (4.49 | ) | 20.49 | |||||||||||||||||||||
20053 | 23.75 | (0.02 | ) | (0.94 | ) | — | 22.79 | |||||||||||||||||||||
20054 | 21.74 | (0.32 | ) | 5.28 | (2.95 | ) | 23.75 | |||||||||||||||||||||
20044 | 21.95 | (0.35 | ) | 0.27 | (0.13 | ) | 21.74 | |||||||||||||||||||||
20034 | 13.86 | (0.28 | ) | 8.37 | — | 21.95 | ||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||
20072 | $ | 18.76 | $ | (0.31 | ) | $ | 2.43 | $ | (1.32 | ) | $ | 19.56 | ||||||||||||||||
20062 | 21.36 | (0.31 | ) | 2.20 | (4.49 | ) | 18.76 | |||||||||||||||||||||
20053 | 22.27 | (0.03 | ) | (0.88 | ) | — | 21.36 | |||||||||||||||||||||
20054 | 20.69 | (0.45 | ) | 4.98 | (2.95 | ) | 22.27 | |||||||||||||||||||||
20044 | 21.05 | (0.50 | ) | 0.27 | (0.13 | ) | 20.69 | |||||||||||||||||||||
20034 | 13.39 | (0.40 | ) | 8.06 | — | 21.05 | ||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||
20072 | $ | 19.53 | $ | (0.33 | ) | $ | 2.53 | $ | (1.32 | ) | $ | 20.41 | ||||||||||||||||
20062 | 22.05 | (0.32 | ) | 2.29 | (4.49 | ) | 19.53 | |||||||||||||||||||||
20053 | 23.00 | (0.04 | ) | (0.91 | ) | — | 22.05 | |||||||||||||||||||||
20054 | 21.28 | (0.48 | ) | 5.15 | (2.95 | ) | 23.00 | |||||||||||||||||||||
20044 | 21.65 | (0.49 | ) | 0.25 | (0.13 | ) | 21.28 | |||||||||||||||||||||
20034 | 13.77 | (0.43 | ) | 8.31 | — | 21.65 | ||||||||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||
20072 | $ | 20.39 | $ | (0.24 | ) | $ | 2.66 | $ | (1.32 | ) | $ | 21.49 | ||||||||||||||||
20062 | 22.75 | (0.23 | ) | 2.36 | (4.49 | ) | 20.39 | |||||||||||||||||||||
20053 | 23.72 | (0.03 | ) | (0.94 | ) | — | 22.75 | |||||||||||||||||||||
20054 | 21.74 | (0.48 | ) | 5.41 | (2.95 | ) | 23.72 | |||||||||||||||||||||
20044 | 21.95 | (0.42 | ) | 0.34 | (0.13 | ) | 21.74 | |||||||||||||||||||||
20034 | 13.86 | (0.28 | ) | 8.37 | — | 21.95 | ||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||
20072 | $ | 21.66 | $ | (0.15 | ) | $ | 2.84 | $ | (1.32 | ) | $ | 23.03 | ||||||||||||||||
20062 | 23.81 | (0.13 | ) | 2.47 | (4.49 | ) | 21.66 | |||||||||||||||||||||
20053 | 24.81 | (0.02 | ) | (0.98 | ) | — | 23.81 | |||||||||||||||||||||
20054 | 22.55 | (0.27 | ) | 5.48 | (2.95 | ) | 24.81 | |||||||||||||||||||||
20044 | 22.70 | (0.32 | ) | 0.30 | (0.13 | ) | 22.55 | |||||||||||||||||||||
20034 | 14.30 | (0.25 | ) | 8.65 | — | 22.70 | ||||||||||||||||||||||
1 | Per share data calculated using average shares outstanding method. | |
2 | For the period November 1 to October 31 in the year indicated. | |
3 | For the period October 1, 2005 to October 31, 2005. Effective October 1, 2005, the fund’s fiscal year end was changed from September 30 to October 31. All ratios for the period have been annualized, except total return and portfolio turnover. | |
4 | For the period October 1 to September 30 in the year indicated. | |
5 | Prior to July 1, 2004, Class R shares were named Class S shares, which had lower fees and expenses. | |
6 | Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived. | |
7 | During the period, the fund received a regulatory settlement, which had an impact on the total return of 0.05% for Class A, Class R, and Class Y shares and 0.06% for Class B and Class C shares. |
The accompanying notes are an integral part of the financial statements.
76 First American Funds 2007 Annual Report
Table of Contents
Ratio of Net | ||||||||||||||||||||||||||||||||||||
Ratio of | Investment | |||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses to | Loss | ||||||||||||||||||||||||||||||||||
Ratio of | Investment | Average | to Average | |||||||||||||||||||||||||||||||||
Net Assets | Expenses to | Income Loss | Net Assets | Net Assets | Portfolio | |||||||||||||||||||||||||||||||
Total | End of | Average | to Average | (Excluding | (Excluding | Turnover | ||||||||||||||||||||||||||||||
Return6 | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | ||||||||||||||||||||||||||||||
12.81 | %7 | $ | 149,231 | 1.47 | % | (0.89 | )% | 1.59 | % | (1.01 | )% | 118 | % | |||||||||||||||||||||||
9.91 | 138,786 | 1.47 | (0.88 | ) | 1.58 | (0.99 | ) | 209 | ||||||||||||||||||||||||||||
(4.04 | ) | 78,357 | 1.47 | (1.17 | ) | 1.56 | (1.26 | ) | 14 | |||||||||||||||||||||||||||
24.21 | 84,567 | 1.82 | (1.42 | ) | 1.87 | (1.47 | ) | 190 | ||||||||||||||||||||||||||||
(0.39 | ) | 101,031 | 1.93 | (1.42 | ) | 1.96 | (1.45 | ) | 178 | |||||||||||||||||||||||||||
58.37 | 81,999 | 1.93 | (1.63 | ) | 1.97 | (1.67 | ) | 137 | ||||||||||||||||||||||||||||
12.03 | %7 | $ | 4,467 | 2.22 | % | (1.65 | )% | 2.34 | % | (1.77 | )% | 118 | % | |||||||||||||||||||||||
9.03 | 6,540 | 2.22 | (1.62 | ) | 2.33 | (1.73 | ) | 209 | ||||||||||||||||||||||||||||
(4.09 | ) | 8,271 | 2.22 | (1.93 | ) | 2.31 | (2.02 | ) | 14 | |||||||||||||||||||||||||||
23.27 | 8,760 | 2.57 | (2.16 | ) | 2.62 | (2.21 | ) | 190 | ||||||||||||||||||||||||||||
(1.13 | ) | 9,063 | 2.68 | (2.16 | ) | 2.71 | (2.19 | ) | 178 | |||||||||||||||||||||||||||
57.21 | 6,441 | 2.68 | (2.38 | ) | 2.72 | (2.42 | ) | 137 | ||||||||||||||||||||||||||||
11.96 | %7 | $ | 2,295 | 2.22 | % | (1.64 | )% | 2.34 | % | (1.76 | )% | 118 | % | |||||||||||||||||||||||
9.11 | 2,664 | 2.22 | (1.63 | ) | 2.33 | (1.74 | ) | 209 | ||||||||||||||||||||||||||||
(4.13 | ) | 2,962 | 2.22 | (1.93 | ) | 2.31 | (2.02 | ) | 14 | |||||||||||||||||||||||||||
23.28 | 3,152 | 2.57 | (2.20 | ) | 2.62 | (2.25 | ) | 190 | ||||||||||||||||||||||||||||
(1.14 | ) | 4,669 | 2.68 | (2.07 | ) | 2.71 | (2.10 | ) | 178 | |||||||||||||||||||||||||||
57.23 | 1,529 | 2.68 | (2.38 | ) | 2.72 | (2.42 | ) | 137 | ||||||||||||||||||||||||||||
12.56 | %7 | $ | 522 | 1.72 | % | (1.17 | )% | 1.84 | % | (1.29 | )% | 118 | % | |||||||||||||||||||||||
9.62 | 1,323 | 1.72 | (1.16 | ) | 1.95 | (1.39 | ) | 209 | ||||||||||||||||||||||||||||
(4.09 | ) | 5 | 1.72 | (1.43 | ) | 1.96 | (1.67 | ) | 14 | |||||||||||||||||||||||||||
24.06 | 5 | 2.07 | (2.14 | ) | 2.27 | (2.34 | ) | 190 | ||||||||||||||||||||||||||||
(0.39 | ) | 1 | 1.93 | (1.67 | ) | 1.96 | (1.70 | ) | 178 | |||||||||||||||||||||||||||
58.37 | 3,694 | 1.93 | (1.62 | ) | 1.97 | (1.66 | ) | 137 | ||||||||||||||||||||||||||||
13.10 | %7 | $ | 154,456 | 1.22 | % | (0.64 | )% | 1.34 | % | (0.76 | )% | 118 | % | |||||||||||||||||||||||
10.16 | 182,429 | 1.22 | (0.63 | ) | 1.33 | (0.74 | ) | 209 | ||||||||||||||||||||||||||||
(4.03 | ) | 210,769 | 1.22 | (0.92 | ) | 1.31 | (1.01 | ) | 14 | |||||||||||||||||||||||||||
24.47 | 220,772 | 1.57 | (1.15 | ) | 1.62 | (1.20 | ) | 190 | ||||||||||||||||||||||||||||
(0.11 | ) | 224,432 | 1.68 | (1.25 | ) | 1.71 | (1.28 | ) | 178 | |||||||||||||||||||||||||||
58.74 | 382,389 | 1.68 | (1.38 | ) | 1.72 | (1.42 | ) | 137 | ||||||||||||||||||||||||||||
First American Funds 2007 Annual Report 77
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 | Value | ||||||||||||||||||||||||
Beginning | Investment | (Losses) on | Realized | End of | ||||||||||||||||||||||||
of Period | Income (Loss) | Investments | Gains | Period | ||||||||||||||||||||||||
Small Cap Select Fund1 | ||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
20072 | $ | 15.12 | $ | (0.03 | ) | $ | 1.05 | $ | (2.08 | ) | $ | 14.06 | ||||||||||||||||
20062 | 15.33 | (0.05 | ) | 3.05 | (3.21 | ) | 15.12 | |||||||||||||||||||||
20053 | 15.82 | (0.01 | ) | (0.48 | ) | — | 15.33 | |||||||||||||||||||||
20054 | 15.95 | (0.08 | ) | 3.10 | (3.15 | ) | 15.82 | |||||||||||||||||||||
20044 | 14.52 | (0.12 | ) | 2.60 | (1.05 | ) | 15.95 | |||||||||||||||||||||
20034 | 10.68 | (0.09 | ) | 3.93 | — | 14.52 | ||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||
20072 | $ | 12.88 | $ | (0.11 | ) | $ | 0.87 | $ | (2.08 | ) | $ | 11.56 | ||||||||||||||||
20062 | 13.58 | (0.13 | ) | 2.64 | (3.21 | ) | 12.88 | |||||||||||||||||||||
20053 | 14.02 | (0.02 | ) | (0.42 | ) | — | 13.58 | |||||||||||||||||||||
20054 | 14.56 | (0.17 | ) | 2.78 | (3.15 | ) | 14.02 | |||||||||||||||||||||
20044 | 13.42 | (0.22 | ) | 2.41 | (1.05 | ) | 14.56 | |||||||||||||||||||||
20034 | 9.95 | (0.17 | ) | 3.64 | — | 13.42 | ||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||
20072 | $ | 14.36 | $ | (0.12 | ) | $ | 0.97 | $ | (2.08 | ) | $ | 13.13 | ||||||||||||||||
20062 | 14.79 | (0.16 | ) | 2.94 | (3.21 | ) | 14.36 | |||||||||||||||||||||
20053 | 15.28 | (0.02 | ) | (0.47 | ) | — | 14.79 | |||||||||||||||||||||
20054 | 15.60 | (0.19 | ) | 3.02 | (3.15 | ) | 15.28 | |||||||||||||||||||||
20044 | 14.32 | (0.24 | ) | 2.57 | (1.05 | ) | 15.60 | |||||||||||||||||||||
20034 | 10.62 | (0.18 | ) | 3.88 | — | 14.32 | ||||||||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||
20072 | $ | 14.98 | $ | (0.06 | ) | $ | 1.02 | $ | (2.08 | ) | $ | 13.86 | ||||||||||||||||
20062 | 15.24 | (0.09 | ) | 3.04 | (3.21 | ) | 14.98 | |||||||||||||||||||||
20053 | 15.73 | (0.01 | ) | (0.48 | ) | — | 15.24 | |||||||||||||||||||||
20054 | 15.91 | (0.08 | ) | 3.05 | (3.15 | ) | 15.73 | |||||||||||||||||||||
20044 | 14.49 | (0.13 | ) | 2.60 | (1.05 | ) | 15.91 | |||||||||||||||||||||
20034 | 10.66 | (0.09 | ) | 3.92 | — | 14.49 | ||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||
20072 | $ | 16.06 | $ | 0.01 | $ | 1.11 | $ | (2.08 | ) | $ | 15.10 | |||||||||||||||||
20062 | 16.06 | (0.01 | ) | 3.22 | (3.21 | ) | 16.06 | |||||||||||||||||||||
20053 | 16.57 | (0.01 | ) | (0.50 | ) | — | 16.06 | |||||||||||||||||||||
20054 | 16.54 | (0.04 | ) | 3.22 | (3.15 | ) | 16.57 | |||||||||||||||||||||
20044 | 14.98 | (0.09 | ) | 2.70 | (1.05 | ) | 16.54 | |||||||||||||||||||||
20034 | 11.00 | (0.06 | ) | 4.04 | — | 14.98 | ||||||||||||||||||||||
1 | Per share data calculated using average shares outstanding method. | |
2 | For the period November 1 to October 31 in the year indicated. | |
3 | For the period October 1, 2005 to October 31, 2005. Effective October 1, 2005, the fund’s fiscal year end was changed from September 30 to October 31. All ratios for the period have been annualized, except total return and portfolio turnover. | |
4 | For the period October 1 to September 30 in the year indicated. | |
5 | Prior to July 1, 2004, Class R shares were named Class S shares, which had lower fees and expenses. | |
6 | Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived. |
The accompanying notes are an integral part of the financial statements.
78 First American Funds 2007 Annual Report
Table of Contents
Ratio of Net | |||||||||||||||||||||||||||||||||||||
Ratio of | Investment | ||||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses to | Income (Loss) | |||||||||||||||||||||||||||||||||||
Ratio of | Investment | Average | to Average | ||||||||||||||||||||||||||||||||||
Net Assets | Expenses to | Income (Loss) | Net Assets | Net Assets | Portfolio | ||||||||||||||||||||||||||||||||
Total | End of | Average | to Average | (Excluding | (Excluding | Turnover | |||||||||||||||||||||||||||||||
Return6 | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | |||||||||||||||||||||||||||||||
7.35 | % | $ | 238,129 | 1.23 | % | (0.22 | )% | 1.23 | % | (0.22 | )% | 97 | % | ||||||||||||||||||||||||
22.46 | 222,293 | 1.24 | (0.38 | ) | 1.24 | (0.38 | ) | 111 | |||||||||||||||||||||||||||||
(3.10 | ) | 104,568 | 1.25 | (0.92 | ) | 1.25 | (0.92 | ) | 14 | ||||||||||||||||||||||||||||
20.46 | 107,270 | 1.22 | (0.53 | ) | 1.25 | (0.56 | ) | 122 | |||||||||||||||||||||||||||||
17.64 | 97,775 | 1.21 | (0.76 | ) | 1.24 | (0.79 | ) | 116 | |||||||||||||||||||||||||||||
35.96 | 73,445 | 1.21 | (0.73 | ) | 1.25 | (0.77 | ) | 145 | |||||||||||||||||||||||||||||
6.51 | % | $ | 13,720 | 1.98 | % | (0.97 | )% | 1.98 | % | (0.97 | )% | 97 | % | ||||||||||||||||||||||||
21.59 | 15,077 | 1.99 | (1.14 | ) | 1.99 | (1.14 | ) | 111 | |||||||||||||||||||||||||||||
(3.14 | ) | 13,406 | 2.00 | (1.67 | ) | 2.00 | (1.67 | ) | 14 | ||||||||||||||||||||||||||||
19.45 | 14,023 | 1.97 | (1.28 | ) | 2.00 | (1.31 | ) | 122 | |||||||||||||||||||||||||||||
16.88 | 13,050 | 1.96 | (1.51 | ) | 1.99 | (1.54 | ) | 116 | |||||||||||||||||||||||||||||
34.88 | 11,541 | 1.96 | (1.48 | ) | 2.00 | (1.52 | ) | 145 | |||||||||||||||||||||||||||||
6.46 | % | $ | 34,505 | 1.98 | % | (0.95 | )% | 1.98 | % | (0.95 | )% | 97 | % | ||||||||||||||||||||||||
21.64 | 18,794 | 1.99 | (1.14 | ) | 1.99 | (1.14 | ) | 111 | |||||||||||||||||||||||||||||
(3.21 | ) | 13,453 | 2.00 | (1.67 | ) | 2.00 | (1.67 | ) | 14 | ||||||||||||||||||||||||||||
19.58 | 14,418 | 1.97 | (1.28 | ) | 2.00 | (1.31 | ) | 122 | |||||||||||||||||||||||||||||
16.79 | 13,841 | 1.96 | (1.50 | ) | 1.99 | (1.53 | ) | 116 | |||||||||||||||||||||||||||||
34.84 | 11,128 | 1.96 | (1.47 | ) | 2.00 | (1.51 | ) | 145 | |||||||||||||||||||||||||||||
6.99 | % | $ | 38,181 | 1.48 | % | (0.43 | )% | 1.48 | % | (0.43 | )% | 97 | % | ||||||||||||||||||||||||
22.23 | 2,697 | 1.49 | (0.59 | ) | 1.62 | (0.72 | ) | 111 | |||||||||||||||||||||||||||||
(3.11 | ) | 333 | 1.50 | (1.14 | ) | 1.65 | (1.29 | ) | 14 | ||||||||||||||||||||||||||||
20.16 | 312 | 1.47 | (0.53 | ) | 1.65 | (0.71 | ) | 122 | |||||||||||||||||||||||||||||
17.60 | 19 | 1.21 | (0.81 | ) | 1.24 | (0.84 | ) | 116 | |||||||||||||||||||||||||||||
35.93 | 11,627 | 1.21 | (0.75 | ) | 1.25 | (0.79 | ) | 145 | |||||||||||||||||||||||||||||
7.58 | % | $ | 691,488 | 0.98 | % | 0.03 | % | 0.98 | % | 0.03 | % | 97 | % | ||||||||||||||||||||||||
22.81 | 732,252 | 0.99 | (0.15 | ) | 0.99 | (0.15 | ) | 111 | |||||||||||||||||||||||||||||
(3.08 | ) | 682,088 | 1.00 | (0.67 | ) | 1.00 | (0.67 | ) | 14 | ||||||||||||||||||||||||||||
20.73 | 715,496 | 0.97 | (0.28 | ) | 1.00 | (0.31 | ) | 122 | |||||||||||||||||||||||||||||
17.98 | 770,981 | 0.96 | (0.52 | ) | 0.99 | (0.55 | ) | 116 | |||||||||||||||||||||||||||||
36.18 | 1,024,146 | 0.96 | (0.48 | ) | 1.00 | (0.52 | ) | 145 | |||||||||||||||||||||||||||||
First American Funds 2007 Annual Report 79
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 (Loss) | Investments | Income | Gains | Period | ||||||||||||||||||||||||||||
Small Cap Value Fund1 | |||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||
20072 | $ | 15.38 | $ | 0.12 | $ | 0.48 | $ | (0.02 | ) | $ | (2.44 | ) | $ | 13.52 | |||||||||||||||||||
20062 | 16.34 | 0.03 | 2.86 | (0.04 | ) | (3.81 | ) | 15.38 | |||||||||||||||||||||||||
20053 | 16.78 | 0.01 | (0.45 | ) | — | — | 16.34 | ||||||||||||||||||||||||||
20054 | 16.84 | 0.03 | 2.63 | (0.06 | ) | (2.66 | ) | 16.78 | |||||||||||||||||||||||||
20044 | 14.28 | 0.03 | 3.13 | (0.04 | ) | (0.56 | ) | 16.84 | |||||||||||||||||||||||||
20034 | 11.26 | — | 3.02 | — | — | 14.28 | |||||||||||||||||||||||||||
Class B | |||||||||||||||||||||||||||||||||
20072 | $ | 13.93 | $ | 0.02 | $ | 0.43 | $ | — | $ | (2.44 | ) | $ | 11.94 | ||||||||||||||||||||
20062 | 15.19 | (0.07 | ) | 2.62 | — | (3.81 | ) | 13.93 | |||||||||||||||||||||||||
20053 | 15.61 | — | (0.42 | ) | — | — | 15.19 | ||||||||||||||||||||||||||
20054 | 15.92 | (0.09 | ) | 2.47 | (0.03 | ) | (2.66 | ) | 15.61 | ||||||||||||||||||||||||
20044 | 13.60 | (0.08 | ) | 2.96 | — | (0.56 | ) | 15.92 | |||||||||||||||||||||||||
20034 | 10.80 | (0.08 | ) | 2.88 | — | — | 13.60 | ||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||
20072 | $ | 14.17 | $ | 0.02 | $ | 0.44 | $ | — | $ | (2.44 | ) | $ | 12.19 | ||||||||||||||||||||
20062 | 15.39 | (0.07 | ) | 2.66 | — | (3.81 | ) | 14.17 | |||||||||||||||||||||||||
20053 | 15.82 | — | (0.43 | ) | — | — | 15.39 | ||||||||||||||||||||||||||
20054 | 16.10 | (0.09 | ) | 2.50 | (0.03 | ) | (2.66 | ) | 15.82 | ||||||||||||||||||||||||
20044 | 13.74 | (0.08 | ) | 3.00 | — | (0.56 | ) | 16.10 | |||||||||||||||||||||||||
20034 | 10.91 | (0.09 | ) | 2.92 | — | — | 13.74 | ||||||||||||||||||||||||||
Class R5 | |||||||||||||||||||||||||||||||||
20072 | $ | 15.24 | $ | 0.10 | $ | 0.47 | $ | (0.02 | ) | $ | (2.44 | ) | $ | 13.35 | |||||||||||||||||||
20062 | 16.29 | (0.01 | ) | 2.84 | (0.07 | ) | (3.81 | ) | 15.24 | ||||||||||||||||||||||||
20053 | 16.74 | 0.01 | (0.46 | ) | — | — | 16.29 | ||||||||||||||||||||||||||
20054 | 16.83 | (0.01 | ) | 2.64 | (0.06 | ) | (2.66 | ) | 16.74 | ||||||||||||||||||||||||
20044 | 14.27 | 0.03 | 3.12 | (0.03 | ) | (0.56 | ) | 16.83 | |||||||||||||||||||||||||
20034 | 11.26 | 0.01 | 3.01 | (0.01 | ) | — | 14.27 | ||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||
20072 | $ | 15.71 | $ | 0.16 | $ | 0.49 | $ | (0.05 | ) | $ | (2.44 | ) | $ | 13.87 | |||||||||||||||||||
20062 | 16.62 | 0.07 | 2.90 | (0.07 | ) | (3.81 | ) | 15.71 | |||||||||||||||||||||||||
20053 | 17.06 | 0.01 | (0.45 | ) | — | — | 16.62 | ||||||||||||||||||||||||||
20054 | 17.05 | 0.07 | 2.67 | (0.07 | ) | (2.66 | ) | 17.06 | |||||||||||||||||||||||||
20044 | 14.44 | 0.08 | 3.16 | (0.07 | ) | (0.56 | ) | 17.05 | |||||||||||||||||||||||||
20034 | 11.38 | 0.03 | 3.05 | (0.02 | ) | — | 14.44 | ||||||||||||||||||||||||||
1 | Per share data calculated using average shares outstanding method. | |
2 | For the period November 1 to October 31 in the year indicated. | |
3 | For the period October 1, 2005 to October 31, 2005. Effective October 1, 2005, the fund’s fiscal year end was changed from September 30 to October 31. All ratios for the period have been annualized, except total return and portfolio turnover. | |
4 | For the period October 1 to September 30 in the year indicated. | |
5 | Prior to July 1, 2004, Class R shares were named Class S shares, which had lower fees and expenses. | |
6 | Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived. |
The accompanying notes are an integral part of the financial statements.
80 First American Funds 2007 Annual Report
Table of Contents
Ratio of Net | ||||||||||||||||||||||||||||||||||||
Ratio of | Investment | |||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses to | Income (Loss) | ||||||||||||||||||||||||||||||||||
Ratio of | Investment | Average | to Average | |||||||||||||||||||||||||||||||||
Net Assets | Expenses to | Income (Loss) | Net Assets | Net Assets | Portfolio | |||||||||||||||||||||||||||||||
Total | End of | Average | to Average | (Excluding | (Excluding | Turnover | ||||||||||||||||||||||||||||||
Return6 | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | ||||||||||||||||||||||||||||||
4.18 | % | $ | 53,498 | 1.26 | % | 0.90 | % | 1.26 | % | 0.90 | % | 63 | % | |||||||||||||||||||||||
20.78 | 57,922 | 1.26 | 0.21 | 1.26 | 0.21 | 96 | ||||||||||||||||||||||||||||||
(2.62 | ) | 46,467 | 1.25 | 0.78 | 1.25 | 0.78 | 15 | |||||||||||||||||||||||||||||
16.78 | 48,128 | 1.24 | 0.19 | 1.26 | 0.17 | 72 | ||||||||||||||||||||||||||||||
22.70 | 43,192 | 1.23 | 0.21 | 1.25 | 0.19 | 34 | ||||||||||||||||||||||||||||||
26.86 | 32,416 | 1.23 | 0.02 | 1.25 | — | 49 | ||||||||||||||||||||||||||||||
3.41 | % | $ | 6,213 | 2.01 | % | 0.14 | % | 2.01 | % | 0.14 | % | 63 | % | |||||||||||||||||||||||
19.88 | 7,855 | 2.01 | (0.53 | ) | 2.01 | (0.53 | ) | 96 | ||||||||||||||||||||||||||||
(2.69 | ) | 8,913 | 2.00 | 0.03 | 2.00 | 0.03 | 15 | |||||||||||||||||||||||||||||
15.90 | 9,325 | 1.99 | (0.56 | ) | 2.01 | (0.58 | ) | 72 | ||||||||||||||||||||||||||||
21.76 | 9,901 | 1.98 | (0.51 | ) | 2.00 | (0.53 | ) | 34 | ||||||||||||||||||||||||||||
25.93 | 12,560 | 1.98 | (0.73 | ) | 2.00 | (0.75 | ) | 49 | ||||||||||||||||||||||||||||
3.42 | % | $ | 4,006 | 2.01 | % | 0.14 | % | 2.01 | % | 0.14 | % | 63 | % | |||||||||||||||||||||||
19.89 | 4,405 | 2.01 | (0.53 | ) | 2.01 | (0.53 | ) | 96 | ||||||||||||||||||||||||||||
(2.72 | ) | 4,590 | 2.00 | 0.03 | 2.00 | 0.03 | 15 | |||||||||||||||||||||||||||||
15.92 | 4,808 | 1.99 | (0.56 | ) | 2.01 | (0.58 | ) | 72 | ||||||||||||||||||||||||||||
21.83 | 4,609 | 1.98 | (0.52 | ) | 2.00 | (0.54 | ) | 34 | ||||||||||||||||||||||||||||
25.94 | 4,354 | 1.98 | (0.74 | ) | 2.00 | (0.76 | ) | 49 | ||||||||||||||||||||||||||||
3.96 | % | $ | 3,263 | 1.51 | % | 0.72 | % | 1.51 | % | 0.72 | % | 63 | % | |||||||||||||||||||||||
20.44 | 1,849 | 1.51 | (0.09 | ) | 1.63 | (0.21 | ) | 96 | ||||||||||||||||||||||||||||
(2.69 | ) | 4 | 1.50 | 0.59 | 1.65 | 0.44 | 15 | |||||||||||||||||||||||||||||
16.60 | 4 | 1.49 | (0.04 | ) | 1.66 | (0.21 | ) | 72 | ||||||||||||||||||||||||||||
22.69 | 1 | 1.23 | 0.22 | 1.25 | 0.20 | 34 | ||||||||||||||||||||||||||||||
26.79 | 1,351 | 1.23 | 0.04 | 1.25 | 0.02 | 49 | ||||||||||||||||||||||||||||||
4.45 | % | $ | 302,683 | 1.01 | % | 1.15 | % | 1.01 | % | 1.15 | % | 63 | % | |||||||||||||||||||||||
21.01 | 355,148 | 1.01 | 0.47 | 1.01 | 0.47 | 96 | ||||||||||||||||||||||||||||||
(2.58 | ) | 348,166 | 1.00 | 1.03 | 1.00 | 1.03 | 15 | |||||||||||||||||||||||||||||
17.08 | 363,261 | 0.99 | 0.44 | 1.01 | 0.42 | 72 | ||||||||||||||||||||||||||||||
23.02 | 367,774 | 0.98 | 0.50 | 1.00 | 0.48 | 34 | ||||||||||||||||||||||||||||||
27.10 | 428,846 | 0.98 | 0.27 | 1.00 | 0.25 | 49 | ||||||||||||||||||||||||||||||
First American Funds 2007 Annual Report 81
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 | Value | ||||||||||||||||||||||||
Beginning | Investment | (Losses) on | Investment | End of | ||||||||||||||||||||||||
of Period | Income (Loss) | Investments | Income | Period | ||||||||||||||||||||||||
Small-Mid Cap Core Fund1, 2 | ||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
20073 | $ | 9.57 | $ | (0.02 | ) | $ | 1.09 | $ | — | $ | 10.64 | |||||||||||||||||
20063 | 8.03 | 0.01 | 1.53 | — | 9.57 | |||||||||||||||||||||||
20054 | 8.31 | (0.01 | ) | (0.27 | ) | — | 8.03 | |||||||||||||||||||||
20055 | 7.40 | (0.07 | ) | 0.98 | — | 8.31 | ||||||||||||||||||||||
20045 | 7.05 | (0.07 | ) | 0.42 | — | 7.40 | ||||||||||||||||||||||
20035 | 4.29 | (0.03 | ) | 2.79 | — | 7.05 | ||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||
20073 | $ | 8.34 | $ | (0.08 | ) | $ | 0.95 | $ | — | $ | 9.21 | |||||||||||||||||
20063 | 7.06 | (0.04 | ) | 1.32 | — | 8.34 | ||||||||||||||||||||||
20054 | 7.31 | (0.01 | ) | (0.24 | ) | — | 7.06 | |||||||||||||||||||||
20055 | 6.55 | (0.11 | ) | 0.87 | — | 7.31 | ||||||||||||||||||||||
20045 | 6.29 | (0.11 | ) | 0.37 | — | 6.55 | ||||||||||||||||||||||
20035 | 3.86 | (0.07 | ) | 2.50 | — | 6.29 | ||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||
20073 | $ | 9.09 | $ | (0.09 | ) | $ | 1.04 | $ | — | $ | 10.04 | |||||||||||||||||
20063 | 7.69 | (0.05 | ) | 1.45 | — | 9.09 | ||||||||||||||||||||||
20054 | 7.97 | (0.01 | ) | (0.27 | ) | — | 7.69 | |||||||||||||||||||||
20055 | 7.14 | (0.12 | ) | 0.95 | — | 7.97 | ||||||||||||||||||||||
20045 | 6.86 | (0.12 | ) | 0.40 | — | 7.14 | ||||||||||||||||||||||
20035 | 4.20 | (0.07 | ) | 2.73 | — | 6.86 | ||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||
20073 | $ | 9.95 | $ | — | $ | 1.15 | $ | (0.01 | ) | $ | 11.09 | |||||||||||||||||
20063 | 8.34 | 0.04 | 1.57 | — | 9.95 | |||||||||||||||||||||||
20054 | 8.63 | — | (0.29 | ) | — | 8.34 | ||||||||||||||||||||||
20055 | 7.66 | (0.05 | ) | 1.02 | — | 8.63 | ||||||||||||||||||||||
20045 | 7.28 | (0.05 | ) | 0.43 | — | 7.66 | ||||||||||||||||||||||
20035 | 4.42 | (0.01 | ) | 2.87 | — | 7.28 | ||||||||||||||||||||||
1 | Per share data calculated using average shares outstanding method. | |
2 | The financial highlights for Small-Mid Cap Core Fund as set forth herein include the historical financial highlights of the First American Technology Fund. Effective October 3, 2005, the fund’s name and strategy changed. | |
3 | For the period November 1 to October 31 in the year indicated. | |
4 | For the period October 1, 2005 to October 31, 2005. Effective October 1, 2005, the fund’s fiscal year end was changed from September 30 to October 31. All ratios for the period have been annualized, except total return and portfolio turnover. | |
5 | For the period October 1 to September 30 in the year indicated. | |
6 | Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived. |
The accompanying notes are an integral part of the financial statements.
82 First American Funds 2007 Annual Report
Table of Contents
Ratio of Net | |||||||||||||||||||||||||||||||||||||
Ratio of | Investment | ||||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses to | Income (Loss) | |||||||||||||||||||||||||||||||||||
Ratio of | Investment | Average | to Average | ||||||||||||||||||||||||||||||||||
Net Assets | Expenses to | Income (Loss) | Net Assets | Net Assets | Portfolio | ||||||||||||||||||||||||||||||||
Total | End of | Average | to Average | (Excluding | (Excluding | Turnover | |||||||||||||||||||||||||||||||
Return6 | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | |||||||||||||||||||||||||||||||
11.18 | % | $ | 21,817 | 1.41 | % | (0.20 | )% | 1.49 | % | (0.28 | )% | 151 | % | ||||||||||||||||||||||||
19.18 | 26,190 | 1.39 | 0.12 | 1.46 | 0.05 | 110 | |||||||||||||||||||||||||||||||
(3.37 | ) | 22,339 | 1.34 | (0.86 | ) | 1.34 | (0.86 | ) | 80 | ||||||||||||||||||||||||||||
12.30 | 23,016 | 1.42 | (0.83 | ) | 1.50 | (0.91 | ) | 197 | |||||||||||||||||||||||||||||
4.96 | 27,356 | 1.23 | (0.86 | ) | 1.28 | (0.91 | ) | 51 | |||||||||||||||||||||||||||||
64.34 | 27,936 | 1.23 | (0.52 | ) | 1.29 | (0.58 | ) | 110 | |||||||||||||||||||||||||||||
10.43 | % | $ | 6,883 | 2.16 | % | (0.94 | )% | 2.24 | % | (1.02 | )% | 151 | % | ||||||||||||||||||||||||
18.13 | 8,689 | 2.14 | (0.58 | ) | 2.21 | (0.65 | ) | 110 | |||||||||||||||||||||||||||||
(3.42 | ) | 10,054 | 2.09 | (1.61 | ) | 2.09 | (1.61 | ) | 80 | ||||||||||||||||||||||||||||
11.60 | 10,685 | 2.17 | (1.59 | ) | 2.25 | (1.67 | ) | 197 | |||||||||||||||||||||||||||||
4.13 | 13,445 | 1.98 | (1.60 | ) | 2.03 | (1.65 | ) | 51 | |||||||||||||||||||||||||||||
62.95 | 16,016 | 1.98 | (1.26 | ) | 2.04 | (1.32 | ) | 110 | |||||||||||||||||||||||||||||
10.45 | % | $ | 5,190 | 2.16 | % | (0.96 | )% | 2.24 | % | (1.04 | )% | 151 | % | ||||||||||||||||||||||||
18.21 | 4,986 | 2.14 | (0.64 | ) | 2.21 | (0.71 | ) | 110 | |||||||||||||||||||||||||||||
(3.51 | ) | 4,253 | 2.09 | (1.61 | ) | 2.09 | (1.61 | ) | 80 | ||||||||||||||||||||||||||||
11.62 | 4,485 | 2.17 | (1.59 | ) | 2.25 | (1.67 | ) | 197 | |||||||||||||||||||||||||||||
4.08 | 6,000 | 1.98 | (1.60 | ) | 2.03 | (1.65 | ) | 51 | |||||||||||||||||||||||||||||
63.33 | 7,056 | 1.98 | (1.25 | ) | 2.04 | (1.31 | ) | 110 | |||||||||||||||||||||||||||||
11.62 | % | $ | 79,574 | 1.16 | % | 0.02 | % | 1.24 | % | (0.06 | )% | 151 | % | ||||||||||||||||||||||||
19.30 | 67,437 | 1.14 | 0.35 | 1.21 | 0.28 | 110 | |||||||||||||||||||||||||||||||
(3.36 | ) | 31,381 | 1.09 | (0.61 | ) | 1.09 | (0.61 | ) | 80 | ||||||||||||||||||||||||||||
12.66 | 33,537 | 1.17 | (0.58 | ) | 1.25 | (0.66 | ) | 197 | |||||||||||||||||||||||||||||
5.22 | 43,758 | 0.98 | (0.60 | ) | 1.03 | (0.65 | ) | 51 | |||||||||||||||||||||||||||||
64.71 | 59,817 | 0.98 | (0.24 | ) | 1.04 | (0.30 | ) | 110 | |||||||||||||||||||||||||||||
First American Funds 2007 Annual Report 83
Table of Contents
Schedule of Investments October 31, 2007, all dollars rounded to thousands (000)
Mid Cap Growth Opportunities Fund | |||||||||
DESCRIPTION | SHARES | VALUE | |||||||
Common Stocks – 97.5% | |||||||||
Consumer Discretionary – 17.7% | |||||||||
Abercrombie & Fitch, Class A (a) | 456,511 | $ | 36,156 | ||||||
Chipotle Mexican Grill, Class A (a) (b) | 188,626 | 26,219 | |||||||
Chipotle Mexican Grill, Class B (a) (b) | 73,245 | 9,033 | |||||||
Coach (b) | 536,598 | 19,618 | |||||||
Dick’s Sporting Goods (a) (b) | 820,142 | 27,368 | |||||||
Garmin (a) | 156,683 | 16,828 | |||||||
J. Crew Group (a) (b) | 455,434 | 17,033 | |||||||
LKQ (a) (b) | 527,496 | 20,340 | |||||||
Marriott International, Class A | 526,661 | 21,651 | |||||||
Newell Rubbermaid (a) | 914,710 | 26,673 | |||||||
Nordstrom (a) | 402,926 | 15,891 | |||||||
Omnicom Group (a) | 508,833 | 25,940 | |||||||
Polo Ralph Lauren (a) | 478,752 | 32,938 | |||||||
Scientific Games, Class A (a) (b) | 530,733 | 19,186 | |||||||
Tiffany & Company | 358,582 | 19,428 | |||||||
WMS Industries (a) (b) | 445,883 | 15,459 | |||||||
349,761 | |||||||||
Energy – 10.9% | |||||||||
Cameron International (a) (b) | 399,175 | 38,864 | |||||||
Chesapeake Energy (a) | 557,520 | 22,011 | |||||||
Helix Energy Solutions Group (a) (b) | 451,724 | 20,892 | |||||||
Smith International (a) | 450,995 | 29,788 | |||||||
Southwestern Energy (b) | 559,193 | 28,927 | |||||||
Weatherford International (b) | 435,744 | 28,284 | |||||||
Williams | 542,078 | 19,781 | |||||||
XTO Energy | 417,537 | 27,716 | |||||||
216,263 | |||||||||
Financials – 6.2% | |||||||||
Affiliated Managers Group (a) (b) | 132,272 | 17,400 | |||||||
AllianceBernstein Holding | 285,065 | 24,353 | |||||||
Ambac Financial Group (a) | 396,939 | 14,619 | |||||||
BlackRock (a) | 133,194 | 27,565 | |||||||
ICICI Bank – ADR | 167,440 | 11,627 | |||||||
W.R. Berkley | 870,541 | 26,195 | |||||||
121,759 | |||||||||
Healthcare – 16.2% | |||||||||
Applied Biosystems Group – Applera (a) | 598,270 | 22,220 | |||||||
Celgene (a) (b) | 279,390 | 18,440 | |||||||
Coventry Health Care (b) | 503,657 | 30,375 | |||||||
DENTSPLY International (a) | 630,770 | 26,164 | |||||||
Healthways (a) (b) | 483,377 | 29,341 | |||||||
Henry Schein (a) (b) | 423,911 | 25,392 | |||||||
Hologic (a) (b) | 351,180 | 23,856 | |||||||
Humana (a) (b) | 318,808 | 23,895 | |||||||
Intuitive Surgical (a) (b) | 114,462 | 37,414 | |||||||
Medco Health Solutions (a) (b) | 219,748 | 20,740 | |||||||
Pediatrix Medical Group (b) | 338,810 | 22,192 | |||||||
Thermo Fisher Scientific (a) (b) | 679,453 | 39,958 | |||||||
319,987 | |||||||||
Industrials – 15.5% | |||||||||
AerCap Holdings (b) | 601,858 | 15,173 | |||||||
American Reprographics (a) (b) | 667,097 | 13,529 | |||||||
C.H. Robinson Worldwide (a) | 311,983 | 15,574 | |||||||
Cooper Industries, Class A (a) | 445,415 | 23,335 | |||||||
Cummins | 37,945 | 4,552 | |||||||
Dun & Bradstreet (a) | 236,352 | 22,891 | |||||||
McDermott International (b) | 324,489 | 19,813 | |||||||
MSC Industrial Direct, Class A | 546,385 | 26,614 | |||||||
Precision Castparts | 386,515 | 57,904 | |||||||
Republic Services | 1,034,666 | 35,375 | |||||||
Rockwell Collins | 547,706 | 40,974 | |||||||
Roper Industries (a) | 447,289 | 31,673 | |||||||
307,407 | |||||||||
Information Technology – 22.2% | |||||||||
Amphenol, Class A (a) | 798,621 | 35,355 | |||||||
Autodesk (b) | 596,103 | 29,149 | |||||||
Cognizant Technology Solutions, Class A (b) | 472,342 | 19,583 | |||||||
DST Systems (b) | 243,262 | 20,607 | |||||||
F5 Networks (a) (b) | 731,524 | 26,357 | |||||||
Fairchild Semiconductor International, Class A (a) (b) | 690,826 | 12,608 | |||||||
Intersil, Class A (a) | 763,393 | 23,161 | |||||||
Intuit (a) (b) | 1,053,585 | 33,894 | |||||||
Juniper Networks (a) (b) | 617,303 | 22,223 | |||||||
Lam Research (a) (b) | 592,253 | 29,731 | |||||||
MasterCard, Class A (a) | 185,677 | 35,195 | |||||||
Maxim Integrated Products (a) | 1,605,593 | 43,512 | |||||||
MEMC Electronic Materials (a) (b) | 511,831 | 37,476 | |||||||
NVIDIA (a) (b) | 1,147,376 | 40,594 | |||||||
Teradata (b) | 1,040,334 | 29,681 | |||||||
439,126 | |||||||||
Materials – 4.7% | |||||||||
Ecolab | 793,342 | 37,422 | |||||||
Owens-Illinois (b) | 1,271,554 | 56,482 | |||||||
93,904 | |||||||||
Telecommunication Services – 4.1% | |||||||||
American Tower, Class A (b) | 1,338,572 | 59,138 | |||||||
NII Holdings, Class B (a) (b) | 371,338 | 21,538 | |||||||
80,676 | |||||||||
Total Common Stocks | |||||||||
(Cost $1,476,802) | 1,928,883 | ||||||||
Short-Term Investment – 3.6% | |||||||||
First American Prime Obligations Fund, Class Z (c) | |||||||||
(Cost $70,155) | 70,155,124 | 70,155 | |||||||
Investment Purchased with Proceeds from Securities Lending – 34.8% | |||||||||
Mount Vernon Securities Lending Prime Portfolio (d) | |||||||||
(Cost $688,982) | 688,982,150 | 688,982 | |||||||
Total Investments – 135.9% | |||||||||
(Cost $2,235,939) | 2,688,020 | ||||||||
Other Assets and Liabilities, Net – (35.9)% | (709,450 | ) | |||||||
Total Net Assets – 100.0% | $ | 1,978,570 | |||||||
(a) | This security or a portion of this security is out on loan at October 31, 2007. Total loaned securities had a market value of $680,106 at October 31, 2007. See note 2 in Notes to Financial Statements. |
(b) | Non-income producing security. |
(c) | 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. |
(d) | The fund may loan securities representing up to one third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks, or other institutional borrowers of securities. The fund maintains collateral equal to at least 100% of the value of the securities loaned. The adequacy of the collateral is monitored on a daily basis. The cash collateral received by the fund is invested in this affiliated money market fund. See note 2 in Notes to Financial Statements. |
ADR – | American Depoitory Receipt |
The accompanying notes are an integral part of the financial statements.
84 First American Funds 2007 Annual Report
Table of Contents
Schedule of Investments October 31, 2007, all dollars rounded to thousands (000)
Mid Cap Value Fund | |||||||||
DESCRIPTION | SHARES | VALUE | |||||||
Common Stocks – 96.8% | |||||||||
Consumer Discretionary – 13.4% | |||||||||
Autoliv | 187,720 | $ | 11,860 | ||||||
Ford Motor (a) (b) | 1,409,275 | 12,500 | |||||||
Fortune Brands (a) | 138,687 | 11,618 | |||||||
Gannett | 127,920 | 5,425 | |||||||
Gap (a) | 825,537 | 15,603 | |||||||
Newell Rubbermaid | 573,809 | 16,732 | |||||||
Omnicom Group | 226,448 | 11,544 | |||||||
Sherwin-Williams (a) | 203,294 | 12,995 | |||||||
Stanley Works (a) | 195,858 | 11,272 | |||||||
WABCO Holdings | 170,277 | 8,653 | |||||||
WMS Industries (a) (b) | 420,214 | 14,569 | |||||||
Yum! Brands | 326,056 | 13,130 | |||||||
145,901 | |||||||||
Consumer Staples – 6.3% | |||||||||
ConAgra Foods | 704,133 | 16,709 | |||||||
Corn Products International | 333,029 | 14,167 | |||||||
Pepsi Bottling (a) | 395,144 | 17,023 | |||||||
SUPERVALU (a) | 315,142 | 12,212 | |||||||
Tyson Foods, Class A | 518,870 | 8,198 | |||||||
68,309 | |||||||||
Energy – 7.6% | |||||||||
Chesapeake Energy (a) | 225,005 | 8,883 | |||||||
GlobalSantaFe | 270,705 | 21,935 | |||||||
Hess (a) | 174,063 | 12,465 | |||||||
Noble Energy (a) | 225,715 | 17,276 | |||||||
Peabody Energy (a) | 192,018 | 10,705 | |||||||
Sunoco (a) | 161,287 | 11,871 | |||||||
83,135 | |||||||||
Financials – 22.2% | |||||||||
AllianceBernstein Holding | 130,462 | 11,145 | |||||||
Ambac Financial Group (a) | 81,522 | 3,002 | |||||||
AON (a) | 215,842 | 9,782 | |||||||
Arch Capital Group (b) | 78,761 | 5,889 | |||||||
Boston Properties – REIT (a) | 104,430 | 11,314 | |||||||
Brookfield Properties | 179,650 | 4,486 | |||||||
Camden Property Trust – REIT (a) | 114,990 | 7,170 | |||||||
CIT Group | 307,586 | 10,839 | |||||||
City National (a) | 172,011 | 11,628 | |||||||
Developers Diversified Realty – REIT (a) | 202,551 | 10,208 | |||||||
Everest Re Group (a) | 167,261 | 17,820 | |||||||
Invesco – ADR (a) | 579,016 | 17,753 | |||||||
KeyCorp (a) | 186,614 | 5,309 | |||||||
Lazard, Class A (a) | 288,682 | 14,492 | |||||||
M&T Bank (a) | 110,341 | 10,977 | |||||||
Marshall & Ilsley (a) | 330,373 | 14,107 | |||||||
MBIA (a) | 88,790 | 3,821 | |||||||
Northern Trust | 174,291 | 13,108 | |||||||
PMI Group (a) | 150,379 | 2,411 | |||||||
Prologis – REIT (a) | 146,873 | 10,537 | |||||||
StanCorp Financial Group (a) | 235,301 | 12,972 | |||||||
TD Ameritrade (a) (b) | 538,792 | 10,312 | |||||||
W.R. Berkley | 649,092 | 19,531 | |||||||
Weingarten Realty Investors – REIT (a) | 106,426 | 4,072 | |||||||
242,685 | |||||||||
Healthcare – 3.3% | |||||||||
AmerisourceBergen | 169,534 | 7,987 | |||||||
CIGNA | 113,424 | 5,954 | |||||||
Coventry Health Care (b) | 133,750 | 8,066 | |||||||
Endo Pharmaceuticals (b) | 163,377 | 4,787 | |||||||
Humana (b) | 120,999 | 9,069 | |||||||
35,863 | |||||||||
Industrials – 10.3% | |||||||||
AerCap Holdings (b) | 337,802 | 8,516 | |||||||
American Standard (a) | 305,094 | 11,371 | |||||||
Con-way | 279,047 | 11,890 | |||||||
Crane | 232,594 | 11,034 | |||||||
Eaton | 173,180 | 16,033 | |||||||
Joy Global (a) | 203,024 | 11,788 | |||||||
Republic Services | 656,905 | 22,460 | |||||||
Werner Enterprises (a) | 1,021,524 | 19,429 | |||||||
112,521 | |||||||||
Information Technology – 9.2% | |||||||||
Amphenol, Class A | 335,837 | 14,867 | |||||||
Avnet (b) | 335,492 | 13,997 | |||||||
Fairchild Semiconductor International, Class A (a) (b) | 946,196 | 17,268 | |||||||
Harris | 279,757 | 16,942 | |||||||
Intuit (b) | 479,202 | 15,416 | |||||||
Maxim Integrated Products | 594,360 | 16,107 | |||||||
Xerox (b) | 309,918 | 5,405 | |||||||
100,002 | |||||||||
Materials – 11.0% | |||||||||
Airgas | 269,333 | 13,593 | |||||||
Freeport-McMoRan Copper & Gold (a) | 113,590 | 13,367 | |||||||
Owens-Illinois (b) | 899,684 | 39,964 | |||||||
Pactiv (b) | 473,691 | 13,013 | |||||||
Rohm & Haas (a) | 399,783 | 20,741 | |||||||
Smurfit-Stone Container (a) (b) | 1,586,468 | 19,212 | |||||||
119,890 | |||||||||
Telecommunication Services – 3.2% | |||||||||
Qwest Communications International (a) (b) | 642,459 | 4,613 | |||||||
Time Warner Telecom, Class A (a) (b) | 624,707 | 14,518 | |||||||
Windstream (a) | 1,212,104 | 16,303 | |||||||
35,434 | |||||||||
Utilities – 10.3% | |||||||||
Constellation Energy | 132,839 | 12,580 | |||||||
Edison International | 393,897 | 22,905 | |||||||
NSTAR (a) | 317,375 | 11,159 | |||||||
PG&E | 376,732 | 18,433 | |||||||
PPL | 354,021 | 18,303 | |||||||
Sempra Energy | 283,758 | 17,454 | |||||||
Wisconsin Energy | 239,321 | 11,459 | |||||||
112,293 | |||||||||
Total Common Stocks | |||||||||
(Cost $891,394) | 1,056,033 | ||||||||
Short-Term Investment – 4.9% | |||||||||
First American Prime Obligations Fund, Class Z (c) | |||||||||
(Cost $53,621) | 53,620,585 | 53,621 | |||||||
Investment Purchased with Proceeds from Securities Lending – 31.9% | |||||||||
Mount Vernon Securities Lending Prime Portfolio (d) | |||||||||
(Cost $347,314) | 347,314,236 | 347,314 | |||||||
Total Investments – 133.6% | |||||||||
(Cost $1,292,329) | 1,456,968 | ||||||||
Other Assets and Liabilities, Net – (33.6)% | (366,195 | ) | |||||||
Total Net Assets – 100.0% | $ | 1,090,773 | |||||||
(a) | This security or a portion of this security is out on loan at October 31, 2007. Total loaned securities had a market value of $340,172 at October 31, 2007. See note 2 in Notes to Financial Statements. |
First American Funds 2007 Annual Report 85
Table of Contents
Schedule of Investments October 31, 2007, all dollars rounded to thousands (000)
Mid Cap Value Fund (concluded)
(b) | Non-income producing security. |
(c) | 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. |
(d) | The fund may loan securities representing up to one third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks, or other institutional borrowers of securities. The fund maintains collateral equal to at least 100% of the value of the securities loaned. The adequacy of the collateral is monitored on a daily basis. The cash collateral received by the fund is invested in this affiliated money market fund. See note 2 in Notes to Financial Statements. |
ADR – | American Depository Receipt |
REIT – | Real Estate Investment Trust |
The accompanying notes are an integral part of the financial statements.
86 First American Funds 2007 Annual Report
Table of Contents
Statements of Assets and Liabilities October 31, 2007, all dollars and shares are rounded to thousands (000), except per share data
Mid Cap | ||||||||||||
Growth | ||||||||||||
Opportunities | Mid Cap | |||||||||||
Fund | Value Fund | |||||||||||
Investments in unaffiliated securities, at cost | $ | 1,476,802 | $ | 891,394 | ||||||||
Investment in affiliated money market fund, at cost | 70,155 | 53,621 | ||||||||||
Affiliated investment purchased with proceeds from securities lending, at cost (note 2) | 688,982 | 347,314 | ||||||||||
ASSETS: | ||||||||||||
Investments in unaffiliated securities, at value* (note 2) | $ | 1,928,883 | $ | 1,056,033 | ||||||||
Investment in affiliated money market fund, at value (note 2) | 70,155 | 53,621 | ||||||||||
Affiliated investment purchased with proceeds from securities lending, at value (note 2) | 688,982 | 347,314 | ||||||||||
Receivable for dividends and interest | 565 | 648 | ||||||||||
Receivable for investment securities sold | 3,786 | 5,897 | ||||||||||
Receivable for capital shares sold | 1,428 | 990 | ||||||||||
Prepaid expenses and other assets | 42 | 54 | ||||||||||
Total assets | 2,693,841 | 1,464,557 | ||||||||||
LIABILITIES: | ||||||||||||
Payable for investment securities purchased | 22,933 | 24,191 | ||||||||||
Payable upon return of securities loaned (note 2) | 688,982 | 347,314 | ||||||||||
Payable for capital shares redeemed | 1,596 | 1,272 | ||||||||||
Payable to affiliates (note 3) | 1,598 | 895 | ||||||||||
Payable for distribution and shareholder servicing fees | 140 | 96 | ||||||||||
Accrued expenses and other liabilities | 22 | 16 | ||||||||||
Total liabilities | 715,271 | 373,784 | ||||||||||
Net assets | $ | 1,978,570 | $ | 1,090,773 | ||||||||
COMPOSITION OF NET ASSETS: | ||||||||||||
Portfolio capital | $ | 1,360,827 | $ | 857,047 | ||||||||
Distributions in excess of net investment income | (10 | ) | (7 | ) | ||||||||
Accumulated net realized gain on investments | 165,672 | 69,094 | ||||||||||
Net unrealized appreciation of investments | 452,081 | 164,639 | ||||||||||
Net assets | $ | 1,978,570 | $ | 1,090,773 | ||||||||
* Including securities loaned, at value | $ | 680,106 | $ | 340,172 | ||||||||
Class A: | ||||||||||||
Net assets | $ | 425,995 | $ | 254,342 | ||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 9,148 | 9,138 | ||||||||||
Net asset value and redemption price per share | $ | 46.57 | $ | 27.83 | ||||||||
Maximum offering price per share1 | $ | 49.28 | $ | 29.45 | ||||||||
Class B: | ||||||||||||
Net assets | $ | 15,820 | $ | 8,360 | ||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 375 | 316 | ||||||||||
Net asset value, offering price, and redemption price per share2 | $ | 42.21 | $ | 26.48 | ||||||||
Class C: | ||||||||||||
Net assets | $ | 28,891 | $ | 26,141 | ||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 656 | 966 | ||||||||||
Net asset value, offering price, and redemption price per share2 | $ | 44.03 | $ | 27.05 | ||||||||
Class R: | ||||||||||||
Net assets | $ | 29,490 | $ | 29,752 | ||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 640 | 1,073 | ||||||||||
Net asset value, offering price, and redemption price per share | $ | 46.11 | $ | 27.72 | ||||||||
Class Y: | ||||||||||||
Net assets | $ | 1,478,374 | $ | 772,178 | ||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 29,926 | 27,599 | ||||||||||
Net asset value, offering price, and redemption price per share | $ | 49.40 | $ | 27.98 | ||||||||
1 | The offering price is calculated by dividing the net asset value by 1 minus the maximum sales charge of 5.50%. | |
2 | Class B and C have a contingent deferred sales charge. For a description of this sales charge, see notes 1 and 3 in Notes to Financial Statements. |
First American Funds 2007 Annual Report 87
Table of Contents
Statements of Operations For the year ended October 31, 2007, all dollars are rounded to thousands (000)
Mid Cap Growth | Mid Cap | |||||||||
Opportunities Fund | Value Fund | |||||||||
INVESTMENT INCOME: | ||||||||||
Dividends from unaffiliated securities | $ | 8,307 | $ | 17,111 | ||||||
Dividends from affiliated money market fund | 1,494 | 1,414 | ||||||||
Less: Foreign taxes withheld | — | (18 | ) | |||||||
Securities lending income | 1,732 | 577 | ||||||||
Total investment income | 11,533 | 19,084 | ||||||||
EXPENSES (note 3): | ||||||||||
Investment advisory fees | 12,399 | 7,552 | ||||||||
Administration fees | 3,940 | 2,401 | ||||||||
Transfer agent fees | 419 | 296 | ||||||||
Custodian fees | 88 | 54 | ||||||||
Professional fees | 42 | 43 | ||||||||
Registration fees | 63 | 64 | ||||||||
Postage and printing fees | 75 | 44 | ||||||||
Directors’ fees | 18 | 21 | ||||||||
Other expenses | 21 | 21 | ||||||||
Distribution and shareholder servicing fees – Class A | 943 | 611 | ||||||||
Distribution and shareholder servicing fees – Class B | 154 | 87 | ||||||||
Distribution and shareholder servicing fees – Class C | 233 | 235 | ||||||||
Distribution and shareholder servicing fees – Class R | 112 | 144 | ||||||||
Total expenses | 18,507 | 11,573 | ||||||||
Less: Fee waivers (note 3) | (27 | ) | (26 | ) | ||||||
Less: Indirect payments from custodian (note 3) | (9 | ) | (9 | ) | ||||||
Total net expenses | 18,471 | 11,538 | ||||||||
Investment income (loss) – net | (6,938 | ) | 7,546 | |||||||
REALIZED AND UNREALIZED GAINS ON INVESTMENTS – NET (note 5): | ||||||||||
Net realized gain on investments | 219,650 | 82,464 | ||||||||
Net change in unrealized appreciation or depreciation of investments | 162,820 | 24,636 | ||||||||
Net gain on investments | 382,470 | 107,100 | ||||||||
Net increase in net assets resulting from operations | $ | 375,532 | $ | 114,646 | ||||||
The accompanying notes are an integral part of the financial statements.
88 First American Funds 2007 Annual Report
Table of Contents
Statements of Changes in Net Assets all dollars are rounded to thousands (000)
Mid Cap Growth | Mid Cap | ||||||||||||||||||||
Opportunities Fund | Value Fund | ||||||||||||||||||||
Year | Year | Year | Year | ||||||||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||||||
10/31/07 | 10/31/06 | 10/31/07 | 10/31/06 | ||||||||||||||||||
OPERATIONS: | |||||||||||||||||||||
Investment income (loss) – net | $ | (6,938 | ) | $ | (1,535 | ) | $ | 7,546 | $ | 5,929 | |||||||||||
Net realized gain on investments | 219,650 | 161,244 | 82,464 | 62,972 | |||||||||||||||||
Net change in unrealized appreciation or depreciation of investments | 162,820 | 34,383 | 24,636 | 56,622 | |||||||||||||||||
Net increase in net assets resulting from operations | 375,532 | 194,092 | 114,646 | 125,523 | |||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||||||||||||
Investment income – net: | |||||||||||||||||||||
Class A | — | — | (1,522 | ) | (693 | ) | |||||||||||||||
Class B | — | — | (14 | ) | (14 | ) | |||||||||||||||
Class C | — | — | (40 | ) | (21 | ) | |||||||||||||||
Class R | — | — | (111 | ) | (33 | ) | |||||||||||||||
Class Y | — | — | (6,390 | ) | (5,752 | ) | |||||||||||||||
Net realized gain on investments: | |||||||||||||||||||||
Class A | (30,495 | ) | (31,106 | ) | (12,946 | ) | (3,267 | ) | |||||||||||||
Class B | (1,525 | ) | (1,639 | ) | (528 | ) | (485 | ) | |||||||||||||
Class C | (1,884 | ) | (1,741 | ) | (1,175 | ) | (427 | ) | |||||||||||||
Class R | (1,645 | ) | (1,068 | ) | (1,102 | ) | (81 | ) | |||||||||||||
Class Y | (106,455 | ) | (121,918 | ) | (42,784 | ) | (31,352 | ) | |||||||||||||
Total distributions | (142,004 | ) | (157,472 | ) | (66,612 | ) | (42,125 | ) | |||||||||||||
CAPITAL SHARE TRANSACTIONS (note 4): | |||||||||||||||||||||
Class A: | |||||||||||||||||||||
Proceeds from sales | 113,868 | 138,564 | 154,646 | 109,279 | |||||||||||||||||
Reinvestment of distributions | 29,160 | 30,411 | 14,057 | 3,794 | |||||||||||||||||
Payments for redemptions | (87,910 | ) | (166,778 | ) | (81,184 | ) | (23,533 | ) | |||||||||||||
Increase in net assets from Class A transactions | 55,118 | 2,197 | 87,519 | 89,540 | |||||||||||||||||
Class B: | |||||||||||||||||||||
Proceeds from sales | 1,912 | 2,403 | 1,235 | 1,757 | |||||||||||||||||
Reinvestment of distributions | 1,419 | 1,544 | 513 | 483 | |||||||||||||||||
Payments for redemptions (note 3) | (4,702 | ) | (2,973 | ) | (2,298 | ) | (3,785 | ) | |||||||||||||
Increase (decrease) in net assets from Class B transactions | (1,371 | ) | 974 | (550 | ) | (1,545 | ) | ||||||||||||||
Class C: | |||||||||||||||||||||
Proceeds from sales | 9,743 | 9,430 | 9,914 | 11,403 | |||||||||||||||||
Reinvestment of distributions | 1,764 | 1,697 | 1,083 | 424 | |||||||||||||||||
Payments for redemptions (note 3) | (4,958 | ) | (7,181 | ) | (4,006 | ) | (2,366 | ) | |||||||||||||
Increase in net assets from Class C transactions | 6,549 | 3,946 | 6,991 | 9,461 | |||||||||||||||||
Class R: | |||||||||||||||||||||
Proceeds from sales | 13,492 | 13,794 | 22,611 | 17,551 | |||||||||||||||||
Reinvestment of distributions | 1,645 | 1,068 | 1,204 | 108 | |||||||||||||||||
Payments for redemptions | (6,431 | ) | (2,657 | ) | (13,287 | ) | (1,395 | ) | |||||||||||||
Increase in net assets from Class R transactions | 8,706 | 12,205 | 10,528 | 16,264 | |||||||||||||||||
Class Y: | |||||||||||||||||||||
Proceeds from sales | 200,629 | 175,964 | 102,337 | 123,981 | |||||||||||||||||
Reinvestment of distributions | 78,118 | 98,347 | 34,548 | 27,701 | |||||||||||||||||
Payments for redemptions | (221,866 | ) | (300,042 | ) | (127,700 | ) | (91,763 | ) | |||||||||||||
Increase (decrease) in net assets from Class Y transactions | 56,881 | (25,731 | ) | 9,185 | 59,919 | ||||||||||||||||
Increase (decrease) in net assets from capital share transactions | 125,883 | (6,409 | ) | 113,673 | 173,639 | ||||||||||||||||
Total increase in net assets | 359,411 | 30,211 | 161,707 | 257,037 | |||||||||||||||||
Net assets at beginning of year | 1,619,159 | 1,588,948 | 929,066 | 672,029 | |||||||||||||||||
Net assets at end of year | $ | 1,978,570 | $ | 1,619,159 | $ | 1,090,773 | $ | 929,066 | |||||||||||||
Distributions in excess of net investment income at end of year | $ | (10 | ) | $ | — | $ | (7 | ) | $ | — | |||||||||||
First American Funds 2007 Annual Report 89
Table of Contents
Financial Highlights For a share outstanding throughout the indicated period.
Realized and | ||||||||||||||||||||||||||||
Net Asset | Unrealized | Distributions | Net Asset | |||||||||||||||||||||||||
Value | Net | Gains | from Net | Value | ||||||||||||||||||||||||
Beginning | Investment | (Losses) on | Realized | End of | ||||||||||||||||||||||||
of Period | Loss | Investments | Gains | Period | ||||||||||||||||||||||||
Mid Cap Growth Opportunities Fund 1 | ||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
20072 | $ | 41.43 | $ | (0.24 | ) | $ | 9.19 | $ | (3.81 | ) | $ | 46.57 | ||||||||||||||||
20062 | 40.77 | (0.11 | ) | 5.04 | (4.27 | ) | 41.43 | |||||||||||||||||||||
20053 | 41.55 | (0.02 | ) | (0.76 | ) | — | 40.77 | |||||||||||||||||||||
20054 | 38.19 | (0.24 | ) | 9.65 | (6.05 | ) | 41.55 | |||||||||||||||||||||
20044 | 33.68 | (0.30 | ) | 5.88 | (1.07 | ) | 38.19 | |||||||||||||||||||||
20034 | 26.45 | (0.18 | ) | 7.41 | — | 33.68 | ||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||
20072 | $ | 38.15 | $ | (0.51 | ) | $ | 8.38 | $ | (3.81 | ) | $ | 42.21 | ||||||||||||||||
20062 | 38.12 | (0.38 | ) | 4.68 | (4.27 | ) | 38.15 | |||||||||||||||||||||
20053 | 38.87 | (0.05 | ) | (0.70 | ) | — | 38.12 | |||||||||||||||||||||
20054 | 36.31 | (0.51 | ) | 9.12 | (6.05 | ) | 38.87 | |||||||||||||||||||||
20044 | 32.30 | (0.55 | ) | 5.63 | (1.07 | ) | 36.31 | |||||||||||||||||||||
20034 | 25.56 | (0.39 | ) | 7.13 | — | 32.30 | ||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||
20072 | $ | 39.65 | $ | (0.53 | ) | $ | 8.72 | $ | (3.81 | ) | $ | 44.03 | ||||||||||||||||
20062 | 39.46 | (0.40 | ) | 4.86 | (4.27 | ) | 39.65 | |||||||||||||||||||||
20053 | 40.23 | (0.05 | ) | (0.72 | ) | — | 39.46 | |||||||||||||||||||||
20054 | 37.40 | (0.53 | ) | 9.41 | (6.05 | ) | 40.23 | |||||||||||||||||||||
20044 | 33.24 | (0.57 | ) | 5.80 | (1.07 | ) | 37.40 | |||||||||||||||||||||
20034 | 26.29 | (0.40 | ) | 7.35 | — | 33.24 | ||||||||||||||||||||||
Class R 5 | ||||||||||||||||||||||||||||
20072 | $ | 41.15 | $ | (0.34 | ) | $ | 9.11 | $ | (3.81 | ) | $ | 46.11 | ||||||||||||||||
20062 | 40.61 | (0.23 | ) | 5.04 | (4.27 | ) | 41.15 | |||||||||||||||||||||
20053 | 41.40 | (0.03 | ) | (0.76 | ) | — | 40.61 | |||||||||||||||||||||
20054 | 38.15 | (0.31 | ) | 9.61 | (6.05 | ) | 41.40 | |||||||||||||||||||||
20044 | 33.66 | (0.30 | ) | 5.86 | (1.07 | ) | 38.15 | |||||||||||||||||||||
20034 | 26.43 | (0.17 | ) | 7.40 | — | 33.66 | ||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||
20072 | $ | 43.62 | $ | (0.14 | ) | $ | 9.73 | $ | (3.81 | ) | $ | 49.40 | ||||||||||||||||
20062 | 42.61 | (0.01 | ) | 5.29 | (4.27 | ) | 43.62 | |||||||||||||||||||||
20053 | 43.42 | (0.02 | ) | (0.79 | ) | — | 42.61 | |||||||||||||||||||||
20054 | 39.58 | (0.16 | ) | 10.05 | (6.05 | ) | 43.42 | |||||||||||||||||||||
20044 | 34.78 | (0.21 | ) | 6.08 | (1.07 | ) | 39.58 | |||||||||||||||||||||
20034 | 27.25 | (0.09 | ) | 7.62 | — | 34.78 | ||||||||||||||||||||||
1 | Per share data calculated using average shares outstanding method. | |
2 | For the period November 1 to October 31 in the year indicated. | |
3 | For the period October 1, 2005 to October 31, 2005. Effective October 1, 2005, the fund’s fiscal year end was changed from September 30 to October 31. All ratios for the period have been annualized, except total return and portfolio turnover. | |
4 | For the period October 1 to September 30 in the year indicated. | |
5 | Prior to July 1, 2004, Class R shares were named Class S shares, which had lower fees and expenses. | |
6 | Total return does not include sales charges. Total return would have been lower had certain expenses not been waived. |
The accompanying notes are an integral part of the financial statements.
90 First American Funds 2007 Annual Report
Table of Contents
Ratio of Net | |||||||||||||||||||||||||||||||||||||
Ratio of | Investment | ||||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses to | Loss | |||||||||||||||||||||||||||||||||||
Ratio of | Investment | Average | to Average | ||||||||||||||||||||||||||||||||||
Net Assets | Expenses to | Loss | Net Assets | Net Assets | Portfolio | ||||||||||||||||||||||||||||||||
Total | End of | Average | to Average | (Excluding | (Excluding | Turnover | |||||||||||||||||||||||||||||||
Return6 | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | |||||||||||||||||||||||||||||||
23.36 | % | $ | 425,995 | 1.21 | % | (0.56 | )% | 1.21 | % | (0.56 | )% | 96 | % | ||||||||||||||||||||||||
12.69 | 322,385 | 1.23 | (0.26 | ) | 1.23 | (0.26 | ) | 75 | |||||||||||||||||||||||||||||
(1.88 | ) | 314,830 | 1.23 | (0.72 | ) | 1.23 | (0.72 | ) | 9 | ||||||||||||||||||||||||||||
26.25 | 317,906 | 1.21 | (0.62 | ) | 1.24 | (0.65 | ) | 107 | |||||||||||||||||||||||||||||
16.88 | 173,436 | 1.20 | (0.79 | ) | 1.24 | (0.83 | ) | 135 | |||||||||||||||||||||||||||||
27.33 | 154,499 | 1.20 | (0.58 | ) | 1.25 | (0.63 | ) | 145 | |||||||||||||||||||||||||||||
22.47 | % | $ | 15,820 | 1.96 | % | (1.31 | )% | 1.96 | % | (1.31 | )% | 96 | % | ||||||||||||||||||||||||
11.83 | 15,605 | 1.98 | (1.02 | ) | 1.98 | (1.02 | ) | 75 | |||||||||||||||||||||||||||||
(1.93 | ) | 14,586 | 1.98 | (1.47 | ) | 1.98 | (1.47 | ) | 9 | ||||||||||||||||||||||||||||
25.29 | 14,922 | 1.96 | (1.40 | ) | 1.99 | (1.43 | ) | 107 | |||||||||||||||||||||||||||||
16.03 | 10,974 | 1.95 | (1.54 | ) | 1.99 | (1.58 | ) | 135 | |||||||||||||||||||||||||||||
26.37 | 9,055 | 1.95 | (1.33 | ) | 2.00 | (1.38 | ) | 145 | |||||||||||||||||||||||||||||
22.42 | % | $ | 28,891 | 1.96 | % | (1.31 | )% | 1.96 | % | (1.31 | )% | 96 | % | ||||||||||||||||||||||||
11.84 | 19,540 | 1.98 | (1.02 | ) | 1.98 | (1.02 | ) | 75 | |||||||||||||||||||||||||||||
(1.91 | ) | 15,435 | 1.98 | (1.47 | ) | 1.98 | (1.47 | ) | 9 | ||||||||||||||||||||||||||||
25.27 | 17,079 | 1.96 | (1.40 | ) | 1.99 | (1.43 | ) | 107 | |||||||||||||||||||||||||||||
16.03 | 12,356 | 1.95 | (1.54 | ) | 1.99 | (1.58 | ) | 135 | |||||||||||||||||||||||||||||
26.43 | 12,649 | 1.95 | (1.33 | ) | 2.00 | (1.38 | ) | 145 | |||||||||||||||||||||||||||||
23.06 | % | $ | 29,490 | 1.46 | % | (0.81 | )% | 1.46 | % | (0.81 | )% | 96 | % | ||||||||||||||||||||||||
12.41 | 17,853 | 1.48 | (0.57 | ) | 1.61 | (0.70 | ) | 75 | |||||||||||||||||||||||||||||
(1.91 | ) | 5,502 | 1.48 | (0.97 | ) | 1.63 | (1.12 | ) | 9 | ||||||||||||||||||||||||||||
25.95 | 5,501 | 1.46 | (0.77 | ) | 1.64 | (0.95 | ) | 107 | |||||||||||||||||||||||||||||
16.83 | 1 | 1.20 | (0.81 | ) | 1.24 | (0.85 | ) | 135 | |||||||||||||||||||||||||||||
27.36 | 10,284 | 1.20 | (0.56 | ) | 1.25 | (0.61 | ) | 145 | |||||||||||||||||||||||||||||
23.68 | % | $ | 1,478,374 | 0.96 | % | (0.31 | )% | 0.96 | % | (0.31 | )% | 96 | % | ||||||||||||||||||||||||
12.98 | 1,243,776 | 0.98 | (0.02 | ) | 0.98 | (0.02 | ) | 75 | |||||||||||||||||||||||||||||
(1.86 | ) | 1,238,595 | 0.98 | (0.47 | ) | 0.98 | (0.47 | ) | 9 | ||||||||||||||||||||||||||||
26.57 | 1,273,320 | 0.96 | (0.40 | ) | 0.99 | (0.43 | ) | 107 | |||||||||||||||||||||||||||||
17.18 | 1,168,220 | 0.95 | (0.54 | ) | 0.99 | (0.58 | ) | 135 | |||||||||||||||||||||||||||||
27.68 | 1,153,657 | 0.95 | (0.30 | ) | 1.00 | (0.35 | ) | 145 | |||||||||||||||||||||||||||||
First American Funds 2007 Annual Report 91
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 | Distributions | Value | ||||||||||||||||||||||||||||||||
Beginning | Investment | (Losses) on | Investment | Realized | from Return | End of | ||||||||||||||||||||||||||||||||
of Period | Income (Loss) | Investments | Income | Gains | of Capital | Period | ||||||||||||||||||||||||||||||||
Mid Cap Value Fund1 | ||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||
20072 | $ | 26.65 | $ | 0.14 | $ | 2.78 | $ | (0.16 | ) | $ | (1.58 | ) | $ | — | $ | 27.83 | ||||||||||||||||||||||
20062 | 24.04 | 0.14 | 3.89 | (0.16 | ) | (1.26 | ) | — | 26.65 | |||||||||||||||||||||||||||||
20053 | 24.88 | (0.01 | ) | (0.83 | ) | — | — | — | 24.04 | |||||||||||||||||||||||||||||
20054 | 20.09 | 0.13 | 4.76 | (0.10 | ) | — | — | 24.88 | ||||||||||||||||||||||||||||||
20044 | 16.30 | 0.08 | 3.77 | (0.06 | ) | — | — | 6 | 20.09 | |||||||||||||||||||||||||||||
20034 | 13.29 | 0.18 | 2.96 | (0.12 | ) | — | (0.01 | ) | 16.30 | |||||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||||
20072 | $ | 25.50 | $ | (0.05 | ) | $ | 2.65 | $ | (0.04 | ) | $ | (1.58 | ) | $ | — | $ | 26.48 | |||||||||||||||||||||
20062 | 23.12 | (0.03 | ) | 3.71 | (0.04 | ) | (1.26 | ) | — | 25.50 | ||||||||||||||||||||||||||||
20053 | 23.94 | (0.02 | ) | (0.80 | ) | — | — | — | 23.12 | |||||||||||||||||||||||||||||
20054 | 19.39 | (0.05 | ) | 4.60 | — | — | — | 23.94 | ||||||||||||||||||||||||||||||
20044 | 15.81 | (0.06 | ) | 3.65 | (0.01 | ) | — | — | 6 | 19.39 | ||||||||||||||||||||||||||||
20034 | 12.92 | 0.07 | 2.87 | (0.04 | ) | — | (0.01 | ) | 15.81 | |||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||
20072 | $ | 26.02 | $ | (0.06 | ) | $ | 2.72 | $ | (0.05 | ) | $ | (1.58 | ) | $ | — | $ | 27.05 | |||||||||||||||||||||
20062 | 23.57 | (0.04 | ) | 3.80 | (0.05 | ) | (1.26 | ) | — | 26.02 | ||||||||||||||||||||||||||||
20053 | 24.40 | (0.02 | ) | (0.81 | ) | — | — | — | 23.57 | |||||||||||||||||||||||||||||
20054 | 19.77 | (0.03 | ) | 4.66 | — | — | — | 24.40 | ||||||||||||||||||||||||||||||
20044 | 16.12 | (0.06 | ) | 3.72 | (0.01 | ) | — | — | 6 | 19.77 | ||||||||||||||||||||||||||||
20034 | 13.17 | 0.07 | 2.93 | (0.04 | ) | — | (0.01 | ) | 16.12 | |||||||||||||||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||||||||||||
20072 | $ | 26.56 | $ | 0.06 | $ | 2.78 | $ | (0.10 | ) | $ | (1.58 | ) | $ | — | $ | 27.72 | ||||||||||||||||||||||
20062 | 24.00 | 0.05 | 3.91 | (0.14 | ) | (1.26 | ) | — | 26.56 | |||||||||||||||||||||||||||||
20053 | 24.83 | (0.01 | ) | (0.82 | ) | — | — | — | 24.00 | |||||||||||||||||||||||||||||
20054 | 20.09 | 0.12 | 4.70 | (0.08 | ) | — | — | 24.83 | ||||||||||||||||||||||||||||||
20044 | 16.31 | 0.07 | 3.76 | (0.05 | ) | — | — | 6 | 20.09 | |||||||||||||||||||||||||||||
20034 | 13.29 | 0.16 | 2.99 | (0.12 | ) | — | (0.01 | ) | 16.31 | |||||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||||
20072 | $ | 26.77 | $ | 0.22 | $ | 2.80 | $ | (0.23 | ) | $ | (1.58 | ) | $ | — | $ | 27.98 | ||||||||||||||||||||||
20062 | 24.14 | 0.22 | 3.89 | (0.22 | ) | (1.26 | ) | — | 26.77 | |||||||||||||||||||||||||||||
20053 | 24.98 | — | (0.84 | ) | — | — | — | 24.14 | ||||||||||||||||||||||||||||||
20054 | 20.17 | 0.18 | 4.78 | (0.15 | ) | — | — | 24.98 | ||||||||||||||||||||||||||||||
20044 | 16.36 | 0.12 | 3.79 | (0.10 | ) | — | — | 6 | 20.17 | |||||||||||||||||||||||||||||
20034 | 13.33 | 0.21 | 2.98 | (0.15 | ) | — | (0.01 | ) | 16.36 | |||||||||||||||||||||||||||||
1 | Per share data calculated using average shares outstanding method. | |
2 | For the period November 1 to October 31 in the year indicated. | |
3 | For the period October 1, 2005 to October 31, 2005. Effective October 1, 2005, the fund’s fiscal year end was changed from September 30 to October 31. All ratios for the period have been annualized, except total return and portfolio turnover. | |
4 | For the period October 1 to September 30 in the year indicated. | |
5 | Prior to July 1, 2004, Class R shares were named Class S shares, which had lower fees and expenses. | |
6 | Includes a tax return of capital less than $0.01. | |
7 | Total return does not include sales charges. Total return would have been lower had certain expenses not been waived. |
The accompanying notes are an integral part of the financial statements.
92 First American Funds 2007 Annual Report
Table of Contents
Ratio of Net | |||||||||||||||||||||||||||||||||||||
Investment | |||||||||||||||||||||||||||||||||||||
Ratio of | Income (Loss) | ||||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses to | to Average | |||||||||||||||||||||||||||||||||||
Ratio of | Investment | Average | Net | ||||||||||||||||||||||||||||||||||
Net Assets | Expenses to | Income (Loss) | Net Assets | Assets | Portfolio | ||||||||||||||||||||||||||||||||
Total | End of | Average | to Average | (Excluding | (Excluding | Turnover | |||||||||||||||||||||||||||||||
Return7 | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | |||||||||||||||||||||||||||||||
11.47 | % | $ | 254,342 | 1.22 | % | 0.58 | % | 1.22 | % | 0.58 | % | 95 | % | ||||||||||||||||||||||||
17.36 | 156,576 | 1.24 | 0.50 | 1.24 | 0.50 | 70 | |||||||||||||||||||||||||||||||
(3.38 | ) | 56,125 | 1.23 | (0.48 | ) | 1.23 | (0.48 | ) | 10 | ||||||||||||||||||||||||||||
24.38 | 54,360 | 1.21 | 0.59 | 1.25 | 0.55 | 101 | |||||||||||||||||||||||||||||||
23.65 | 28,561 | 1.20 | 0.41 | 1.25 | 0.36 | 83 | |||||||||||||||||||||||||||||||
23.71 | 16,598 | 1.20 | 1.21 | 1.25 | 1.16 | 102 | |||||||||||||||||||||||||||||||
10.67 | % | $ | 8,360 | 1.97 | % | (0.13 | )% | 1.97 | % | (0.13 | )% | 95 | % | ||||||||||||||||||||||||
16.45 | 8,590 | 1.99 | (0.17 | ) | 1.99 | (0.17 | ) | 70 | |||||||||||||||||||||||||||||
(3.43 | ) | 9,252 | 1.98 | (1.25 | ) | 1.98 | (1.25 | ) | 10 | ||||||||||||||||||||||||||||
23.47 | 10,157 | 1.96 | (0.21 | ) | 2.00 | (0.25 | ) | 101 | |||||||||||||||||||||||||||||
22.69 | 9,928 | 1.95 | (0.35 | ) | 2.00 | (0.40 | ) | 83 | |||||||||||||||||||||||||||||
22.84 | 10,154 | 1.95 | 0.50 | 2.00 | 0.45 | 102 | |||||||||||||||||||||||||||||||
10.66 | % | $ | 26,141 | 1.97 | % | (0.18 | )% | 1.97 | % | (0.18 | )% | 95 | % | ||||||||||||||||||||||||
16.47 | 18,162 | 1.99 | (0.24 | ) | 1.99 | (0.24 | ) | 70 | |||||||||||||||||||||||||||||
(3.40 | ) | 7,439 | 1.98 | (1.24 | ) | 1.98 | (1.24 | ) | 10 | ||||||||||||||||||||||||||||
23.43 | 7,426 | 1.96 | (0.15 | ) | 2.00 | (0.19 | ) | 101 | |||||||||||||||||||||||||||||
22.69 | 3,342 | 1.95 | (0.33 | ) | 2.00 | (0.38 | ) | 83 | |||||||||||||||||||||||||||||
22.84 | 2,916 | 1.95 | 0.51 | 2.00 | 0.46 | 102 | |||||||||||||||||||||||||||||||
11.18 | % | $ | 29,752 | 1.47 | % | 0.29 | % | 1.47 | % | 0.29 | % | 95 | % | ||||||||||||||||||||||||
17.06 | 17,724 | 1.49 | 0.15 | 1.61 | 0.03 | 70 | |||||||||||||||||||||||||||||||
(3.34 | ) | 785 | 1.47 | (0.69 | ) | 1.62 | (0.84 | ) | 10 | ||||||||||||||||||||||||||||
24.04 | 380 | 1.46 | 0.52 | 1.65 | 0.33 | 101 | |||||||||||||||||||||||||||||||
23.51 | 1 | 1.20 | 0.37 | 1.25 | 0.32 | 83 | |||||||||||||||||||||||||||||||
23.80 | 966 | 1.20 | 1.07 | 1.25 | 1.02 | 102 | |||||||||||||||||||||||||||||||
11.79 | % | $ | 772,178 | 0.97 | % | 0.86 | % | 0.97 | % | 0.86 | % | 95 | % | ||||||||||||||||||||||||
17.63 | 728,014 | 0.99 | 0.81 | 0.99 | 0.81 | 70 | |||||||||||||||||||||||||||||||
(3.36 | ) | 598,428 | 0.98 | (0.24 | ) | 0.98 | (0.24 | ) | 10 | ||||||||||||||||||||||||||||
24.68 | 621,172 | 0.96 | 0.80 | 1.00 | 0.76 | 101 | |||||||||||||||||||||||||||||||
23.95 | 433,879 | 0.95 | 0.66 | 1.00 | 0.61 | 83 | |||||||||||||||||||||||||||||||
24.06 | 332,243 | 0.95 | 1.45 | 1.00 | 1.40 | 102 | |||||||||||||||||||||||||||||||
First American Funds 2007 Annual Report 93
Table of Contents
Schedule of Investments October 31, 2007, all dollars are rounded to thousands (000)
Large Cap Growth Opportunities Fund | |||||||||
DESCRIPTION | SHARES | VALUE | |||||||
Common Stocks – 98.9% | |||||||||
Consumer Discretionary – 12.0% | |||||||||
Coach (a) | 127,128 | $ | 4,648 | ||||||
Garmin (b) | 47,137 | 5,062 | |||||||
Marriott International, Class A (b) | 237,954 | 9,782 | |||||||
McDonald’s | 189,332 | 11,303 | |||||||
McGraw-Hill (b) | 197,077 | 9,862 | |||||||
Nike, Class B (b) | 105,902 | 7,017 | |||||||
Nordstrom (b) | 191,764 | 7,563 | |||||||
Omnicom Group (b) | 288,404 | 14,703 | |||||||
Polo Ralph Lauren (b) | 104,194 | 7,169 | |||||||
Target | 339,620 | 20,839 | |||||||
Tiffany & Company | 112,908 | 6,117 | |||||||
104,065 | |||||||||
Consumer Staples – 5.2% | |||||||||
CVS | 404,274 | 16,887 | |||||||
PepsiCo | 215,303 | 15,872 | |||||||
Procter & Gamble | 174,207 | 12,111 | |||||||
44,870 | |||||||||
Energy – 7.8% | |||||||||
Cameron International (a) (b) | 65,855 | 6,412 | |||||||
Exxon Mobil | 164,329 | 15,117 | |||||||
Schlumberger (b) | 142,287 | 13,741 | |||||||
Transocean (a) (b) | 79,056 | 9,437 | |||||||
Weatherford International (a) | 172,121 | 11,172 | |||||||
XTO Energy | 180,785 | 12,000 | |||||||
67,879 | |||||||||
Financials – 10.0% | |||||||||
American Express | 206,945 | 12,613 | |||||||
BlackRock (b) | 37,961 | 7,856 | |||||||
Charles Schwab | 606,548 | 14,096 | |||||||
Goldman Sachs Group (b) | 93,280 | 23,126 | |||||||
Morgan Stanley (b) | 195,661 | 13,160 | |||||||
State Street | 125,716 | 10,029 | |||||||
Wells Fargo | 170,175 | 5,788 | |||||||
86,668 | |||||||||
Healthcare – 12.0% | |||||||||
Abbott Laboratories | 284,102 | 15,518 | |||||||
Alcon (b) | 45,679 | 6,953 | |||||||
Baxter International | 174,691 | 10,483 | |||||||
Celgene (a) (b) | 54,146 | 3,574 | |||||||
Coventry Health Care (a) | 116,089 | 7,001 | |||||||
Gilead Sciences (a) | 167,753 | 7,749 | |||||||
Intuitive Surgical (a) (b) | 24,087 | 7,873 | |||||||
McKesson | 152,132 | 10,056 | |||||||
Schering-Plough (b) | 403,752 | 12,322 | |||||||
Thermo Fisher Scientific (a) (b) | 214,951 | 12,641 | |||||||
WellPoint (a) | 124,848 | 9,892 | |||||||
104,062 | |||||||||
Industrials – 11.5% | |||||||||
Boeing | 88,366 | 8,712 | |||||||
C.H. Robinson Worldwide | 168,523 | 8,413 | |||||||
Cooper Industries, Class A (b) | 192,594 | 10,090 | |||||||
Cummins | 31,563 | 3,786 | |||||||
Danaher (b) | 111,211 | 9,527 | |||||||
Dun & Bradstreet | 76,926 | 7,450 | |||||||
McDermott International (a) | 96,570 | 5,897 | |||||||
Precision Castparts | 59,333 | 8,889 | |||||||
Republic Services (b) | 236,660 | 8,091 | |||||||
Rockwell Collins | 167,512 | 12,532 | |||||||
United Technologies | 214,412 | 16,422 | |||||||
99,809 | |||||||||
Information Technology (c) – 34.6% | |||||||||
Accenture, Class A (b) | 208,303 | 8,134 | |||||||
Amphenol, Class A (b) | 244,412 | 10,820 | |||||||
Apple (a) | 124,120 | 23,577 | |||||||
Autodesk (a) | 150,892 | 7,379 | |||||||
Cisco Systems (a) (b) | 962,669 | 31,826 | |||||||
Cognizant Technology Solutions, Class A (a) | 187,338 | 7,767 | |||||||
Corning (a) (b) | 472,978 | 11,479 | |||||||
DST Systems (a) (b) | 50,186 | 4,251 | |||||||
Google, Class A (a) | 23,959 | 16,939 | |||||||
Hewlett-Packard | 396,695 | 20,501 | |||||||
IBM | 159,125 | 18,478 | |||||||
Intel | 887,794 | 23,882 | |||||||
Lam Research (a) (b) | 106,146 | 5,328 | |||||||
MasterCard, Class A (b) | 48,453 | 9,184 | |||||||
Microsoft | 1,154,030 | 42,480 | |||||||
NVIDIA (a) (b) | 262,033 | 9,271 | |||||||
Oracle (a) | 913,311 | 20,248 | |||||||
QUALCOMM | 283,606 | 12,118 | |||||||
Research In Motion (a) (b) | 82,589 | 10,283 | |||||||
Teradata (a) (b) | 225,305 | 6,428 | |||||||
300,373 | |||||||||
Materials – 2.8% | |||||||||
Ecolab (b) | 256,768 | 12,112 | |||||||
Monsanto (b) | 125,203 | 12,223 | |||||||
24,335 | |||||||||
Telecommunication Services – 3.0% | |||||||||
America Movil, Series L, ADR (b) | 122,676 | 8,022 | |||||||
American Tower, Class A (a) | 238,631 | 10,542 | |||||||
NII Holdings, Class B (a) (b) | 128,340 | 7,444 | |||||||
26,008 | |||||||||
Total Common Stocks | |||||||||
(Cost $664,842) | 858,069 | ||||||||
Short-Term Investment – 1.3% | |||||||||
First American Prime Obligations Fund, Class Z (d) | |||||||||
(Cost $11,125) | 11,124,711 | 11,125 | |||||||
Investment Purchased with Proceeds from Securities Lending – 20.7% | |||||||||
Mount Vernon Securities Lending Prime Portfolio (e) | |||||||||
(Cost $179,511) | 179,510,666 | 179,511 | |||||||
Total Investments – 120.9% | |||||||||
(Cost $855,478) | 1,048,705 | ||||||||
Other Assets and Liabilities, Net – (20.9)% | (181,299 | ) | |||||||
Total Net Assets – 100.0% | $ | 867,406 | |||||||
(a) | Non-income producing security. |
(b) | This security or a portion of this security is out on loan at October 31, 2007. Total loaned securities had a market value of $177,018 at October 31, 2007. See note 2 in Notes to Financial Statements. |
(c) | The fund is significantly invested in this sector and therefore is subject to additional risks. See note 7 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 to this fund. See note 3 in Notes to Financial Statements. |
The accompanying notes are an integral part of the financial statements.
94 First American Funds 2007 Annual Report
Table of Contents
Large Cap Growth Opportunities Fund (concluded)
(e) | The fund may loan securities representing up to one third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks, or other institutional borrowers of securities. The fund maintains collateral equal to at least 100% of the value of the securities loaned. The adequacy of the collateral is monitored on a daily basis. The cash collateral received by the fund is invested in this affiliated money market fund. See note 2 in Notes to Financial Statements. |
ADR – | American Depository Receipt |
First American Funds 2007 Annual Report 95
Table of Contents
Schedule of Investments October 31, 2007, all dollars are rounded to thousands (000)
Large Cap Select Fund | |||||||||
DESCRIPTION | SHARES | VALUE | |||||||
Common Stocks – 98.3% | |||||||||
Consumer Discretionary – 7.6% | |||||||||
Comcast, Class A (a) | 274,906 | $ | 5,787 | ||||||
DIRECTV Group (a) | 249,722 | 6,613 | |||||||
Kohl’s (a) (b) | 109,888 | 6,040 | |||||||
Nike, Class B (b) | 92,548 | 6,132 | |||||||
Omnicom Group (b) | 200,183 | 10,205 | |||||||
34,777 | |||||||||
Consumer Staples – 4.5% | |||||||||
Altria Group | 161,705 | 11,793 | |||||||
PepsiCo | 116,973 | 8,623 | |||||||
20,416 | |||||||||
Energy – 13.6% | |||||||||
Apache | 92,611 | 9,614 | |||||||
Cameron International (a) (b) | 35,636 | 3,470 | |||||||
Exxon Mobil | 149,460 | 13,749 | |||||||
Marathon Oil (b) | 98,211 | 5,807 | |||||||
National-Oilwell Varco (a) (b) | 46,006 | 3,369 | |||||||
Occidental Petroleum | 147,431 | 10,180 | |||||||
Southwestern Energy (a) (b) | 122,715 | 6,348 | |||||||
Weatherford International (a) | 61,104 | 3,966 | |||||||
Williams | 160,620 | 5,861 | |||||||
62,364 | |||||||||
Financials – 23.4% | |||||||||
Affiliated Managers Group (a) (b) | 74,165 | 9,756 | |||||||
AllianceBernstein Holding | 95,995 | 8,201 | |||||||
Ambac Financial Group (b) | 69,652 | 2,565 | |||||||
American International Group | 238,835 | 15,075 | |||||||
Bank of America | 197,355 | 9,528 | |||||||
Citigroup (b) | 301,095 | 12,616 | |||||||
Goldman Sachs Group (b) | 44,341 | 10,993 | |||||||
Lehman Brothers Holdings | 74,086 | 4,693 | |||||||
Morgan Stanley (b) | 210,348 | 14,148 | |||||||
PMI Group (b) | 259,168 | 4,155 | |||||||
Wachovia | 343,752 | 15,720 | |||||||
107,450 | |||||||||
Healthcare – 11.7% | |||||||||
Abbott Laboratories | 129,791 | 7,089 | |||||||
Baxter International | 101,870 | 6,113 | |||||||
Bristol-Myers Squibb | 206,695 | 6,199 | |||||||
Coventry Health Care (a) | 83,056 | 5,009 | |||||||
Medtronic | 138,734 | 6,582 | |||||||
Merck | 155,857 | 9,080 | |||||||
UnitedHealth Group | 141,308 | 6,945 | |||||||
Wyeth Pharmaceuticals (b) | 138,522 | 6,737 | |||||||
53,754 | |||||||||
Industrials – 3.7% | |||||||||
American Standard (b) | 123,859 | 4,616 | |||||||
L-3 Communications Holdings | 46,553 | 5,104 | |||||||
SPX | 49,525 | 5,017 | |||||||
US Airways Group (a) (b) | 77,237 | 2,137 | |||||||
16,874 | |||||||||
Information Technology – 24.0% | |||||||||
Apple (a) | 27,652 | 5,252 | |||||||
Cisco Systems (a) (b) | 546,995 | 18,084 | |||||||
Corning (a) (b) | 179,671 | 4,360 | |||||||
F5 Networks (a) (b) | 60,282 | 2,172 | |||||||
Hewlett-Packard | 286,683 | 14,816 | |||||||
Intel (b) | 393,864 | 10,595 | |||||||
Lam Research (a) (b) | 85,936 | 4,314 | |||||||
MEMC Electronic Materials (a) | 83,430 | 6,109 | |||||||
Microsoft | 483,284 | 17,790 | |||||||
Oracle (a) | 421,151 | 9,337 | |||||||
QUALCOMM | 174,608 | 7,461 | |||||||
Research In Motion (a) (b) | 34,686 | 4,319 | |||||||
Teradata (a) | 183,685 | 5,240 | |||||||
109,849 | |||||||||
Materials – 5.3% | |||||||||
Cleveland-Cliffs (b) | 52,681 | 5,039 | |||||||
Freeport-McMoRan Copper & Gold (b) | 45,599 | 5,366 | |||||||
Owens-Illinois (a) (b) | 317,261 | 14,093 | |||||||
24,498 | |||||||||
Telecommunication Services – 4.5% | |||||||||
American Tower, Class A (a) | 244,217 | 10,790 | |||||||
Verizon Communications | 212,337 | 9,782 | |||||||
20,572 | |||||||||
Total Common Stocks | |||||||||
(Cost $400,002) | 450,554 | ||||||||
Investment Company – 1.2% | |||||||||
iShares Nasdaq Biotechnology Index Fund (a) (b) | |||||||||
(Cost $4,838) | 61,670 | 5,341 | |||||||
Short-Term Investment – 0.6% | |||||||||
First American Prime Obligations Fund, Class Z (c) | |||||||||
(Cost $2,503) | 2,502,669 | 2,503 | |||||||
Investment Purchased with Proceeds from Securities Lending – 22.0% | |||||||||
Mount Vernon Securities Lending Prime Portfolio (d) | |||||||||
(Cost $100,928) | 100,928,334 | 100,928 | |||||||
Total Investments – 122.1% | |||||||||
(Cost $508,271) | 559,326 | ||||||||
Other Assets and Liabilities, Net – (22.1)% | (101,101 | ) | |||||||
Total Net Assets – 100.0% | $ | 458,225 | |||||||
(a) | Non-income producing security. |
(b) | This security or a portion of this security is out on loan at October 31, 2007. Total loaned securities had a market value of $98,870 at October 31, 2007. See note 2 in Notes to Financial Statements. |
(c) | 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. |
(d) | The fund may loan securities representing up to one third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks, or other institutional borrowers of securities. The fund maintains collateral equal to at least 100% of the value of the securities loaned. The adequacy of the collateral is monitored on a daily basis. The cash collateral received by the fund is invested in this affiliated money market fund. See note 2 in Notes to Financial Statements. |
The accompanying notes are an integral part of the financial statements.
96 First American Funds 2007 Annual Report
Table of Contents
Schedule of Investments October 31, 2007, all dollars are rounded to thousands (000)
Large Cap Value Fund | |||||||||
DESCRIPTION | SHARES | VALUE | |||||||
Common Stocks – 99.3% | |||||||||
Consumer Discretionary – 6.4% | |||||||||
Ford Motor (a) | 1,036,298 | $ | 9,192 | ||||||
Gap (a) | 673,522 | 12,730 | |||||||
J.C. Penney (a) | 124,626 | 7,009 | |||||||
Omnicom Group | 176,798 | 9,013 | |||||||
Time Warner | 315,998 | 5,770 | |||||||
Yum! Brands | 275,764 | 11,105 | |||||||
54,819 | |||||||||
Consumer Staples – 6.0% | |||||||||
Altria Group | 148,931 | 10,861 | |||||||
Archer-Daniels-Midland | 260,469 | 9,320 | |||||||
Kraft Foods, Class A | 142,025 | 4,745 | |||||||
Procter & Gamble | 203,159 | 14,124 | |||||||
SUPERVALU | 221,537 | 8,584 | |||||||
Tyson Foods, Class A | 192,774 | 3,046 | |||||||
50,680 | |||||||||
Energy – 15.9% | |||||||||
Chesapeake Energy (a) | 178,138 | 7,033 | |||||||
Chevron | 146,139 | 13,373 | |||||||
Devon Energy | 178,328 | 16,656 | |||||||
Exxon Mobil | 449,599 | 41,359 | |||||||
GlobalSantaFe | 168,991 | 13,693 | |||||||
Marathon Oil (a) | 332,251 | 19,646 | |||||||
Occidental Petroleum | 347,161 | 23,971 | |||||||
135,731 | |||||||||
Financials (b) – 25.3% | |||||||||
ACE | 271,120 | 16,433 | |||||||
AllianceBernstein Holding | 102,054 | 8,718 | |||||||
Ambac Financial Group (a) | 63,525 | 2,340 | |||||||
American International Group | 292,503 | 18,463 | |||||||
Bank of America | 467,504 | 22,571 | |||||||
Citigroup (a) | 373,375 | 15,644 | |||||||
Fannie Mae (a) | 107,507 | 6,132 | |||||||
Freddie Mac | 47,141 | 2,462 | |||||||
Goldman Sachs Group | 59,293 | 14,700 | |||||||
JPMorgan Chase | 643,417 | 30,241 | |||||||
Lehman Brothers Holdings (a) | 136,945 | 8,674 | |||||||
Marshall & Ilsley (a) | 176,572 | 7,540 | |||||||
Morgan Stanley (a) | 219,858 | 14,788 | |||||||
Northern Trust | 131,111 | 9,861 | |||||||
Wachovia | 389,405 | 17,807 | |||||||
Wells Fargo (a) | 574,307 | 19,532 | |||||||
215,906 | |||||||||
Healthcare – 8.1% | |||||||||
Coventry Health Care (c) | 70,005 | 4,222 | |||||||
Humana (a) (c) | 63,330 | 4,747 | |||||||
Johnson & Johnson | 197,038 | 12,841 | |||||||
Merck | 265,439 | 15,464 | |||||||
Pfizer | 881,963 | 21,705 | |||||||
Wyeth Pharmaceuticals | 213,424 | 10,379 | |||||||
69,358 | |||||||||
Industrials – 9.3% | |||||||||
Caterpillar (a) | 55,948 | 4,174 | |||||||
Eaton | 136,717 | 12,657 | |||||||
General Electric | 523,832 | 21,561 | |||||||
Norfolk Southern (a) | 161,862 | 8,360 | |||||||
United Technologies | 259,464 | 19,873 | |||||||
Waste Management (a) | 341,993 | 12,445 | |||||||
79,070 | |||||||||
Information Technology – 8.8% | |||||||||
Avnet (c) | 218,350 | 9,110 | |||||||
Dell (c) | 387,200 | 11,848 | |||||||
Hewlett-Packard | 275,250 | 14,225 | |||||||
Intel | 529,326 | 14,239 | |||||||
Intuit (a) (c) | 374,410 | 12,045 | |||||||
Microsoft | 358,848 | 13,209 | |||||||
74,676 | |||||||||
Materials – 8.1% | |||||||||
Freeport-McMoRan Copper & Gold (a) | 97,094 | 11,426 | |||||||
Owens-Illinois (a) (c) | 607,174 | 26,971 | |||||||
Rohm & Haas (a) | 303,761 | 15,759 | |||||||
Smurfit-Stone Container (a) (c) | 1,203,976 | 14,580 | |||||||
68,736 | |||||||||
Telecommunication Services – 6.1% | |||||||||
AT&T | 794,104 | 33,186 | |||||||
Verizon Communications | 401,848 | 18,513 | |||||||
51,699 | |||||||||
Utilities – 5.3% | |||||||||
Edison International | 207,207 | 12,049 | |||||||
Exelon | 121,115 | 10,026 | |||||||
FirstEnergy (a) | 163,293 | 11,381 | |||||||
PG&E (a) | 241,935 | 11,838 | |||||||
45,294 | |||||||||
Total Common Stocks | |||||||||
(Cost $698,154) | 845,969 | ||||||||
Short-Term Investment – 1.6% | |||||||||
First American Prime Obligations Fund, Class Z (d) | |||||||||
(Cost $13,772) | 13,772,086 | 13,772 | |||||||
Investment Purchased with Proceeds from Securities Lending – 16.9% | |||||||||
Mount Vernon Securities Lending Prime Portfolio (e) | |||||||||
(Cost $144,199) | 144,199,238 | 144,199 | |||||||
Total Investments – 117.8% | |||||||||
(Cost $856,125) | 1,003,940 | ||||||||
Other Assets and Liabilities, Net – (17.8)% | (151,457 | ) | |||||||
Total Net Assets – 100.0% | $ | 852,483 | |||||||
(a) | This security or a portion of this security is out on loan at October 31, 2007. Total loaned securities had a market value of $141,242 at October 31, 2007. See note 2 in Notes to Financial Statements. |
(b) | The fund is significantly invested in this sector and therefore is subject to additional risks. See note 7 in Notes to Financial Statements. |
(c) | Non-income producing security. |
(d) | 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. |
(e) | The fund may loan securities representing up to one third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks, or other institutional borrowers of securities. The fund maintains collateral equal to at least 100% of the value of the securities loaned. The adequacy of the collateral is monitored on a daily basis. The cash collateral received by the fund is invested in this affiliated money market fund. See note 2 in Notes to Financial Statements. |
First American Funds 2007 Annual Report 97
Table of Contents
Statements of Assets and Liabilities October 31, 2007, all dollars and shares are rounded to thousands (000), except per share data
Large Cap Growth | Large Cap | Large Cap | |||||||||||||||
Opportunities Fund | Select Fund | Value Fund | |||||||||||||||
Investments in unaffiliated securities, at cost | $ | 664,842 | $ | 404,840 | $ | 698,154 | |||||||||||
Investment in affiliated money market fund, at cost | 11,125 | 2,503 | 13,772 | ||||||||||||||
Affiliated investment purchased with proceeds from securities lending, at cost (note 2) | 179,511 | 100,928 | 144,199 | ||||||||||||||
ASSETS: | |||||||||||||||||
Investments in unaffiliated securities, at value* (note 2) | $ | 858,069 | $ | 455,895 | $ | 845,969 | |||||||||||
Investment in affiliated money market fund, at value (note 2) | 11,125 | 2,503 | 13,772 | ||||||||||||||
Affiliated investment purchased with proceeds from securities lending, at value (note 2) | 179,511 | 100,928 | 144,199 | ||||||||||||||
Receivable for dividends and interest | 482 | 309 | 975 | ||||||||||||||
Receivable for investment securities sold | — | — | 2,304 | ||||||||||||||
Receivable for capital shares sold | 824 | 195 | 63 | ||||||||||||||
Prepaid expenses and other assets | 29 | 29 | 39 | ||||||||||||||
Total assets | 1,050,040 | 559,859 | 1,007,321 | ||||||||||||||
LIABILITIES: | |||||||||||||||||
Payable for investment securities purchased | 2,056 | — | 8,915 | ||||||||||||||
Payable upon return of securities loaned (note 2) | 179,511 | 100,928 | 144,199 | ||||||||||||||
Payable for capital shares redeemed | 338 | 336 | 1,008 | ||||||||||||||
Payable to affiliates (note 3) | 675 | 357 | 666 | ||||||||||||||
Payable for distribution and shareholder servicing fees | 38 | 2 | 35 | ||||||||||||||
Accrued expenses and other liabilities | 16 | 11 | 15 | ||||||||||||||
Total liabilities | 182,634 | 101,634 | 154,838 | ||||||||||||||
Net assets | $ | 867,406 | $ | 458,225 | $ | 852,483 | |||||||||||
COMPOSITION OF NET ASSETS: | |||||||||||||||||
Portfolio capital | $ | 651,097 | $ | 351,845 | $ | 603,580 | |||||||||||
Undistributed (distributions in excess of) net investment income | 455 | 66 | (8 | ) | |||||||||||||
Accumulated net realized gain on investments | 22,627 | 55,259 | 101,096 | ||||||||||||||
Net unrealized appreciation of investments | 193,227 | 51,055 | 147,815 | ||||||||||||||
Net assets | $ | 867,406 | $ | 458,225 | $ | 852,483 | |||||||||||
* Including securities loaned, at value | $ | 177,018 | $ | 98,870 | $ | 141,242 | |||||||||||
Class A: | |||||||||||||||||
Net assets | $ | 96,514 | $ | 7,998 | $ | 113,223 | |||||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 2,661 | 469 | 5,009 | ||||||||||||||
Net asset value and redemption price per share | $ | 36.27 | $ | 17.05 | $ | 22.61 | |||||||||||
Maximum offering price per share1 | $ | 38.38 | $ | 18.04 | $ | 23.93 | |||||||||||
Class B: | |||||||||||||||||
Net assets | $ | 11,955 | $ | 664 | $ | 7,973 | |||||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 351 | 40 | 364 | ||||||||||||||
Net asset value, offering price, and redemption price per share2 | $ | 34.08 | $ | 16.69 | $ | 21.92 | |||||||||||
Class C: | |||||||||||||||||
Net assets | $ | 8,506 | $ | 325 | $ | 4,587 | |||||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 245 | 19 | 206 | ||||||||||||||
Net asset value, offering price, and redemption price per share2 | $ | 34.77 | $ | 16.69 | $ | 22.21 | |||||||||||
Class R: | |||||||||||||||||
Net assets | $ | 566 | $ | 37 | $ | 188 | |||||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 16 | 2 | 8 | ||||||||||||||
Net asset value, offering price, and redemption price per share | $ | 35.97 | $ | 16.97 | $ | 22.57 | |||||||||||
Class Y: | |||||||||||||||||
Net assets | $ | 749,865 | $ | 449,201 | $ | 726,512 | |||||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 20,038 | 26,270 | 32,017 | ||||||||||||||
Net asset value, offering price, and redemption price per share | $ | 37.42 | $ | 17.10 | $ | 22.69 | |||||||||||
1 | The offering price is calculated by dividing the net asset value by 1 minus the maximum sales charge of 5.50%. | |
2 | Class B and C have a contingent deferred sales charge. For a description of this sales charge, see notes 1 and 3 in Notes to Financial Statements. |
The accompanying notes are an integral part of the financial statements.
98 First American Funds 2007 Annual Report
Table of Contents
Statements of Operations For the year ended October 31, 2007, all dollars are rounded to thousands (000)
Large Cap Growth | Large Cap | Large Cap | ||||||||||||||
Opportunities Fund | Select Fund | Value Fund | ||||||||||||||
INVESTMENT INCOME: | ||||||||||||||||
Dividends from unaffiliated securities | $ | 7,972 | $ | 6,314 | $ | 19,421 | ||||||||||
Dividends from affiliated money market fund | 498 | 166 | 583 | |||||||||||||
Less: Foreign taxes withheld | (52 | ) | (28 | ) | (27 | ) | ||||||||||
Securities lending income | 320 | 162 | 211 | |||||||||||||
Total investment income | 8,738 | 6,614 | 20,188 | |||||||||||||
EXPENSES (note 3): | ||||||||||||||||
Investment advisory fees | 5,447 | 3,100 | 5,893 | |||||||||||||
Administration fees | 1,866 | 1,063 | 2,019 | |||||||||||||
Transfer agent fees | 316 | 121 | 252 | |||||||||||||
Custodian fees | 64 | 32 | 48 | |||||||||||||
Professional fees | 42 | 42 | 42 | |||||||||||||
Registration fees | 54 | 54 | 50 | |||||||||||||
Postage and printing fees | 36 | 22 | 41 | |||||||||||||
Directors’ fees | 20 | 22 | 21 | |||||||||||||
Other expenses | 20 | 21 | 21 | |||||||||||||
Distribution and shareholder servicing fees – Class A | 227 | 19 | 291 | |||||||||||||
Distribution and shareholder servicing fees – Class B | 124 | 7 | 89 | |||||||||||||
Distribution and shareholder servicing fees – Class C | 78 | 3 | 48 | |||||||||||||
Distribution and shareholder servicing fees – Class R | 3 | — | 1 | |||||||||||||
Total expenses | 8,297 | 4,506 | 8,816 | |||||||||||||
Less: Fee waivers (note 3) | (9 | ) | (3 | ) | (11 | ) | ||||||||||
Less: Indirect payments from custodian (note 3) | (4 | ) | (1 | ) | (4 | ) | ||||||||||
Total net expenses | 8,284 | 4,502 | 8,801 | |||||||||||||
Investment income – net | 454 | 2,112 | 11,387 | |||||||||||||
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS – NET (note 5): | ||||||||||||||||
Net realized gain on investments | 96,005 | 64,920 | 119,358 | |||||||||||||
Net change in unrealized appreciation or depreciation of investments | 85,008 | (1,889 | ) | (27,940 | ) | |||||||||||
Net gain on investments | 181,013 | 63,031 | 91,418 | |||||||||||||
Net increase in net assets resulting from operations | $ | 181,467 | $ | 65,143 | $ | 102,805 | ||||||||||
First American Funds 2007 Annual Report 99
Table of Contents
Statements of Changes in Net Assets all dollars are rounded to thousands (000)
Large Cap Growth | Large Cap | Large Cap | ||||||||||||||||||||||||||
Opportunities Fund | Select Fund | Value Fund | ||||||||||||||||||||||||||
Year | Year | Year | Year | Year | Year | |||||||||||||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | |||||||||||||||||||||||
10/31/07 | 10/31/06 | 10/31/07 | 10/31/06 | 10/31/07 | 10/31/06 | |||||||||||||||||||||||
OPERATIONS: | ||||||||||||||||||||||||||||
Investment income – net | $ | 454 | $ | 1,286 | $ | 2,112 | $ | 2,823 | $ | 11,387 | $ | 11,200 | ||||||||||||||||
Net realized gain on investments | 96,005 | 49,878 | 64,920 | 8,397 | 119,358 | 79,006 | ||||||||||||||||||||||
Net change in unrealized appreciation or depreciation of investments | 85,008 | 5,492 | (1,889 | ) | 34,939 | (27,940 | ) | 61,680 | ||||||||||||||||||||
Net increase in net assets resulting from operations | 181,467 | 56,656 | 65,143 | 46,159 | 102,805 | 151,886 | ||||||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | ||||||||||||||||||||||||||||
Investment income – net: | ||||||||||||||||||||||||||||
Class A | — | — | (17 | ) | (29 | ) | (1,259 | ) | (1,231 | ) | ||||||||||||||||||
Class B | — | — | — | — | (52 | ) | (77 | ) | ||||||||||||||||||||
Class C | — | — | — | — | (28 | ) | (32 | ) | ||||||||||||||||||||
Class R | — | — | — | — | (1 | ) | — | |||||||||||||||||||||
Class Y | (1,284 | ) | — | (2,107 | ) | (2,872 | ) | (10,065 | ) | (9,972 | ) | |||||||||||||||||
Net realized gain on investments: | ||||||||||||||||||||||||||||
Class A | (1,037 | ) | — | (116 | ) | (250 | ) | (8,885 | ) | (3,787 | ) | |||||||||||||||||
Class B | (159 | ) | — | (11 | ) | (26 | ) | (738 | ) | (419 | ) | |||||||||||||||||
Class C | (93 | ) | — | (4 | ) | (8 | ) | (404 | ) | (170 | ) | |||||||||||||||||
Class R | (7 | ) | — | (2 | ) | (1 | ) | (13 | ) | — | ||||||||||||||||||
Class Y | (8,372 | ) | — | (7,569 | ) | (14,936 | ) | (62,201 | ) | (23,452 | ) | |||||||||||||||||
Total distributions | (10,952 | ) | — | (9,826 | ) | (18,122 | ) | (83,646 | ) | (39,140 | ) | |||||||||||||||||
CAPITAL SHARE TRANSACTIONS (note 4): | ||||||||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||||||
Proceeds from sales | 13,170 | 13,213 | 1,953 | 4,957 | 8,622 | 10,688 | ||||||||||||||||||||||
Reinvestment of distributions | 986 | — | 113 | 143 | 9,390 | 4,696 | ||||||||||||||||||||||
Payments for redemptions | (26,532 | ) | (33,886 | ) | (2,094 | ) | (4,049 | ) | (22,821 | ) | (32,648 | ) | ||||||||||||||||
Increase (decrease) in net assets from Class A transactions | (12,376 | ) | (20,673 | ) | (28 | ) | 1,051 | (4,809 | ) | (17,264 | ) | |||||||||||||||||
Class B: | ||||||||||||||||||||||||||||
Proceeds from sales | 827 | 736 | 70 | 193 | 432 | 627 | ||||||||||||||||||||||
Reinvestment of distributions | 156 | — | 10 | 23 | 768 | 486 | ||||||||||||||||||||||
Payments for redemptions (note 3) | (5,385 | ) | (7,250 | ) | (133 | ) | (180 | ) | (3,166 | ) | (6,446 | ) | ||||||||||||||||
Increase (decrease) in net assets from Class B transactions | (4,402 | ) | (6,514 | ) | (53 | ) | 36 | (1,966 | ) | (5,333 | ) | |||||||||||||||||
Class C: | ||||||||||||||||||||||||||||
Proceeds from sales | 1,235 | 538 | 80 | 73 | 817 | 540 | ||||||||||||||||||||||
Reinvestment of distributions | 90 | — | 4 | 8 | 387 | 198 | ||||||||||||||||||||||
Payments for redemptions (note 3) | (2,802 | ) | (3,347 | ) | (40 | ) | (28 | ) | (1,866 | ) | (1,582 | ) | ||||||||||||||||
Increase (decrease) in net assets from Class C transactions | (1,477 | ) | (2,809 | ) | 44 | 53 | (662 | ) | (844 | ) | ||||||||||||||||||
Class R: | ||||||||||||||||||||||||||||
Proceeds from sales | 104 | 261 | 21 | 133 | 45 | 146 | ||||||||||||||||||||||
Reinvestment of distributions | 7 | — | 2 | 1 | 14 | 1 | ||||||||||||||||||||||
Payments for redemptions | (221 | ) | (14 | ) | (111 | ) | (30 | ) | (39 | ) | (2 | ) | ||||||||||||||||
Increase (decrease) in net assets from Class R transactions | (110 | ) | 247 | (88 | ) | 104 | 20 | 145 | ||||||||||||||||||||
Class Y: | ||||||||||||||||||||||||||||
Proceeds from sales | 88,407 | 132,441 | 51,891 | 173,185 | 52,221 | 95,353 | ||||||||||||||||||||||
Reinvestment of distributions | 4,913 | — | 3,629 | 7,404 | 45,777 | 21,057 | ||||||||||||||||||||||
Payments for redemptions | (285,174 | ) | (237,022 | ) | (136,802 | ) | (73,053 | ) | (213,481 | ) | (127,822 | ) | ||||||||||||||||
Increase (decrease) in net assets from Class Y transactions | (191,854 | ) | (104,581 | ) | (81,282 | ) | 107,536 | (115,483 | ) | (11,412 | ) | |||||||||||||||||
Increase (decrease) in net assets from capital share transactions | (210,219 | ) | (134,330 | ) | (81,407 | ) | 108,780 | (122,900 | ) | (34,708 | ) | |||||||||||||||||
Total increase (decrease) in net assets | (39,704 | ) | (77,674 | ) | (26,090 | ) | 136,817 | (103,741 | ) | 78,038 | ||||||||||||||||||
Net assets at beginning of year | 907,110 | 984,784 | 484,315 | 347,498 | 956,224 | 878,186 | ||||||||||||||||||||||
Net assets at end of year | $ | 867,406 | $ | 907,110 | $ | 458,225 | $ | 484,315 | $ | 852,483 | $ | 956,224 | ||||||||||||||||
Undistributed (distributions in excess of) net investment income at end of year | $ | 455 | $ | 1,285 | $ | 66 | $ | 78 | $ | (8 | ) | $ | — | |||||||||||||||
The accompanying notes are an integral part of the financial statements.
100 First American Funds 2007 Annual Report
Table of Contents
(This page intentionally left blank.)
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 | Distributions | Value | |||||||||||||||||||||||||||||||
Beginning | Investment | (Losses) on | Investment | Realized | from Return | End of | |||||||||||||||||||||||||||||||
of Period | Income (Loss) | Investments | Income | Gains | of Capital | Period | |||||||||||||||||||||||||||||||
Large Cap Growth Opportunities Fund1 | |||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||
20072 | $ | 29.58 | $ | (0.05 | ) | $ | 7.08 | $ | — | $ | (0.34 | ) | $ | — | $ | 36.27 | |||||||||||||||||||||
20062 | 27.86 | (0.02 | ) | 1.74 | — | — | — | 29.58 | |||||||||||||||||||||||||||||
20053 | 28.02 | (0.01 | ) | (0.15 | ) | — | — | — | 27.86 | ||||||||||||||||||||||||||||
20054 | 25.00 | (0.01 | ) | 3.08 | (0.04 | ) | — | (0.01 | ) | 28.02 | |||||||||||||||||||||||||||
20044 | 22.84 | (0.03 | ) | 2.20 | (0.01 | ) | — | — | 6 | 25.00 | |||||||||||||||||||||||||||
20034 | 19.16 | — | 3.73 | (0.05 | ) | — | — | 22.84 | |||||||||||||||||||||||||||||
Class B | |||||||||||||||||||||||||||||||||||||
20072 | $ | 28.01 | $ | (0.27 | ) | $ | 6.68 | $ | — | $ | (0.34 | ) | $ | — | $ | 34.08 | |||||||||||||||||||||
20062 | 26.58 | (0.22 | ) | 1.65 | — | — | — | 28.01 | |||||||||||||||||||||||||||||
20053 | 26.75 | (0.03 | ) | (0.14 | ) | — | — | — | 26.58 | ||||||||||||||||||||||||||||
20054 | 24.02 | (0.20 | ) | 2.96 | (0.02 | ) | — | (0.01 | ) | 26.75 | |||||||||||||||||||||||||||
20044 | 22.10 | (0.21 | ) | 2.13 | — | — | — | 6 | 24.02 | ||||||||||||||||||||||||||||
20034 | 18.64 | (0.18 | ) | 3.64 | — | — | — | 22.10 | |||||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||
20072 | $ | 28.58 | $ | (0.28 | ) | $ | 6.81 | $ | — | $ | (0.34 | ) | $ | — | $ | 34.77 | |||||||||||||||||||||
20062 | 27.12 | (0.23 | ) | 1.69 | — | — | — | 28.58 | |||||||||||||||||||||||||||||
20053 | 27.29 | (0.03 | ) | (0.14 | ) | — | — | — | 27.12 | ||||||||||||||||||||||||||||
20054 | 24.51 | (0.20 | ) | 3.00 | (0.01 | ) | — | (0.01 | ) | 27.29 | |||||||||||||||||||||||||||
20044 | 22.55 | (0.21 | ) | 2.17 | — | — | — | 6 | 24.51 | ||||||||||||||||||||||||||||
20034 | 19.03 | (0.18 | ) | 3.72 | (0.02 | ) | — | — | 22.55 | ||||||||||||||||||||||||||||
Class R5 | |||||||||||||||||||||||||||||||||||||
20072 | $ | 29.41 | $ | (0.12 | ) | $ | 7.02 | $ | — | $ | (0.34 | ) | $ | — | $ | 35.97 | |||||||||||||||||||||
20062 | 27.78 | (0.09 | ) | 1.72 | — | — | — | 29.41 | |||||||||||||||||||||||||||||
20053 | 27.94 | (0.02 | ) | (0.14 | ) | — | — | — | 27.78 | ||||||||||||||||||||||||||||
20054 | 24.98 | (0.16 | ) | 3.17 | (0.05 | ) | — | — | 6 | 27.94 | |||||||||||||||||||||||||||
20044 | 22.85 | (0.02 | ) | 2.16 | (0.01 | ) | — | — | 6 | 24.98 | |||||||||||||||||||||||||||
20034 | 19.17 | — | 3.73 | (0.05 | ) | — | — | 22.85 | |||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||
20072 | $ | 30.48 | $ | 0.03 | $ | 7.30 | $ | (0.05 | ) | $ | (0.34 | ) | $ | — | $ | 37.42 | |||||||||||||||||||||
20062 | 28.64 | 0.05 | 1.79 | — | — | — | 30.48 | ||||||||||||||||||||||||||||||
20053 | 28.79 | (0.01 | ) | (0.14 | ) | — | — | — | 28.64 | ||||||||||||||||||||||||||||
20054 | 25.63 | 0.07 | 3.15 | (0.04 | ) | — | (0.02 | ) | 28.79 | ||||||||||||||||||||||||||||
20044 | 23.38 | 0.03 | 2.25 | (0.02 | ) | — | (0.01 | ) | 25.63 | ||||||||||||||||||||||||||||
20034 | 19.59 | 0.07 | 3.80 | (0.08 | ) | — | — | 23.38 | |||||||||||||||||||||||||||||
1 | Per share data calculated using average shares outstanding method. | |
2 | For the period November 1 to October 31 in the year indicated. | |
3 | For the period October 1, 2005 to October 31, 2005. Effective in 2005, the fund’s fiscal year-end was changed from September 30 to October 31. All ratios for the period have been annualized, except total return and portfolio turnover. | |
4 | For the period October 1 to September 30 in the year indicated. | |
5 | Prior to July 1, 2004, Class R shares were named Class S shares, which had lower fees and expenses. |
6 | Includes a tax return of capital of less than $0.01. |
7 | Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived. |
The accompanying notes are an integral part of the financial statements.
102 First American Funds 2007 Annual Report
Table of Contents
Ratio of Net | |||||||||||||||||||||||||||||||||||||
Ratio of | Investment | ||||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses to | Income (Loss) | |||||||||||||||||||||||||||||||||||
Ratio of | Investment | Average | to Average | ||||||||||||||||||||||||||||||||||
Net Assets | Expenses to | Income (Loss) | Net Assets | Net Assets | Portfolio | ||||||||||||||||||||||||||||||||
Total | End of | Average | to Average | (Excluding | (Excluding | Turnover | |||||||||||||||||||||||||||||||
Return7 | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | |||||||||||||||||||||||||||||||
24.01 | % | $ | 96,514 | 1.19 | % | (0.15 | )% | 1.19 | % | (0.15 | )% | 102 | % | ||||||||||||||||||||||||
6.17 | 90,285 | 1.19 | (0.07 | ) | 1.19 | (0.07 | ) | 94 | |||||||||||||||||||||||||||||
(0.57 | ) | 104,960 | 1.21 | (0.47 | ) | 1.21 | (0.47 | ) | 6 | ||||||||||||||||||||||||||||
12.30 | 107,079 | 1.17 | (0.03 | ) | 1.20 | (0.06 | ) | 103 | |||||||||||||||||||||||||||||
9.52 | 112,379 | 1.15 | (0.13 | ) | 1.19 | (0.17 | ) | 113 | |||||||||||||||||||||||||||||
19.50 | 93,331 | 1.15 | (0.02 | ) | 1.19 | (0.06 | ) | 83 | |||||||||||||||||||||||||||||
23.13 | % | $ | 11,955 | 1.94 | % | (0.90 | )% | 1.94 | % | (0.90 | )% | 102 | % | ||||||||||||||||||||||||
5.38 | 13,990 | 1.94 | (0.82 | ) | 1.94 | (0.82 | ) | 94 | |||||||||||||||||||||||||||||
(0.64 | ) | 19,601 | 1.96 | (1.22 | ) | 1.96 | (1.22 | ) | 6 | ||||||||||||||||||||||||||||
11.47 | 20,239 | 1.92 | (0.77 | ) | 1.95 | (0.80 | ) | 103 | |||||||||||||||||||||||||||||
8.69 | 25,633 | 1.90 | (0.87 | ) | 1.94 | (0.91 | ) | 113 | |||||||||||||||||||||||||||||
18.58 | 37,853 | 1.90 | (0.84 | ) | 1.94 | (0.88 | ) | 83 | |||||||||||||||||||||||||||||
23.09 | % | $ | 8,506 | 1.94 | % | (0.90 | )% | 1.94 | % | (0.90 | )% | 102 | % | ||||||||||||||||||||||||
5.38 | 8,424 | 1.94 | (0.82 | ) | 1.94 | (0.82 | ) | 94 | |||||||||||||||||||||||||||||
(0.62 | ) | 10,739 | 1.96 | (1.22 | ) | 1.96 | (1.22 | ) | 6 | ||||||||||||||||||||||||||||
11.44 | 11,147 | 1.92 | (0.78 | ) | 1.95 | (0.81 | ) | 103 | |||||||||||||||||||||||||||||
8.69 | 12,811 | 1.90 | (0.87 | ) | 1.94 | (0.91 | ) | 113 | |||||||||||||||||||||||||||||
18.60 | 15,365 | 1.90 | (0.81 | ) | 1.94 | (0.85 | ) | 83 | |||||||||||||||||||||||||||||
23.70 | % | $ | 566 | 1.44 | % | (0.39 | )% | 1.44 | % | (0.39 | )% | 102 | % | ||||||||||||||||||||||||
5.87 | 558 | 1.44 | (0.32 | ) | 1.57 | (0.45 | ) | 94 | |||||||||||||||||||||||||||||
(0.57 | ) | 290 | 1.46 | (0.72 | ) | 1.61 | (0.87 | ) | 6 | ||||||||||||||||||||||||||||
12.04 | 290 | 1.42 | (0.57 | ) | 1.60 | (0.75 | ) | 103 | |||||||||||||||||||||||||||||
9.38 | 1 | 1.15 | (0.08 | ) | 1.19 | (0.12 | ) | 113 | |||||||||||||||||||||||||||||
19.51 | 15,890 | 1.15 | (0.01 | ) | 1.19 | (0.05 | ) | 83 | |||||||||||||||||||||||||||||
24.32 | % | $ | 749,865 | 0.94 | % | 0.11 | % | 0.94 | % | 0.11 | % | 102 | % | ||||||||||||||||||||||||
6.42 | 793,853 | 0.94 | 0.18 | 0.94 | 0.18 | 94 | |||||||||||||||||||||||||||||||
(0.52 | ) | 849,194 | 0.96 | (0.22 | ) | 0.96 | (0.22 | ) | 6 | ||||||||||||||||||||||||||||
12.58 | 849,382 | 0.92 | 0.26 | 0.95 | 0.23 | 103 | |||||||||||||||||||||||||||||||
9.76 | 1,188,261 | 0.90 | 0.13 | 0.94 | 0.09 | 113 | |||||||||||||||||||||||||||||||
19.78 | 1,072,174 | 0.90 | 0.31 | 0.94 | 0.27 | 83 | |||||||||||||||||||||||||||||||
First American Funds 2007 Annual Report 103
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 (Loss) | Investments | Income | Gains | Period | ||||||||||||||||||||||||||||
Large Cap Select Fund1 | |||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||
20072 | $ | 15.18 | $ | 0.03 | $ | 2.12 | $ | (0.03 | ) | $ | (0.25 | ) | $ | 17.05 | |||||||||||||||||||
20062 | 14.30 | 0.06 | 1.48 | (0.06 | ) | (0.60 | ) | 15.18 | |||||||||||||||||||||||||
20053 | 14.47 | — | (0.17 | ) | — | — | 14.30 | ||||||||||||||||||||||||||
20054 | 12.52 | 0.06 | 2.15 | (0.06 | ) | (0.20 | ) | 14.47 | |||||||||||||||||||||||||
20044 | 11.45 | 0.04 | 1.19 | (0.05 | ) | (0.11 | ) | 12.52 | |||||||||||||||||||||||||
20035 | 10.00 | 0.03 | 1.46 | (0.04 | ) | — | 11.45 | ||||||||||||||||||||||||||
Class B | |||||||||||||||||||||||||||||||||
20072 | $ | 14.94 | $ | (0.09 | ) | $ | 2.09 | $ | — | $ | (0.25 | ) | 16.69 | ||||||||||||||||||||
20062 | 14.12 | (0.05 | ) | 1.48 | (0.01 | ) | (0.60 | ) | 14.94 | ||||||||||||||||||||||||
20053 | 14.30 | (0.01 | ) | (0.17 | ) | — | — | 14.12 | |||||||||||||||||||||||||
20054 | 12.41 | (0.05 | ) | 2.15 | (0.01 | ) | (0.20 | ) | 14.30 | ||||||||||||||||||||||||
20044 | 11.41 | (0.06 | ) | 1.18 | (0.01 | ) | (0.11 | ) | 12.41 | ||||||||||||||||||||||||
20035 | 10.00 | (0.03 | ) | 1.45 | (0.01 | ) | — | 11.41 | |||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||
20072 | $ | 14.95 | $ | (0.09 | ) | $ | 2.08 | $ | — | $ | (0.25 | ) | $ | 16.69 | |||||||||||||||||||
20062 | 14.13 | (0.05 | ) | 1.48 | (0.01 | ) | (0.60 | ) | 14.95 | ||||||||||||||||||||||||
20053 | 14.31 | (0.01 | ) | (0.17 | ) | — | — | 14.13 | |||||||||||||||||||||||||
20054 | 12.43 | (0.05 | ) | 2.14 | (0.01 | ) | (0.20 | ) | 14.31 | ||||||||||||||||||||||||
20044 | 11.42 | (0.06 | ) | 1.19 | (0.01 | ) | (0.11 | ) | 12.43 | ||||||||||||||||||||||||
20035 | 10.00 | (0.02 | ) | 1.45 | (0.01 | ) | — | 11.42 | |||||||||||||||||||||||||
Class R6 | |||||||||||||||||||||||||||||||||
20072 | $ | 15.12 | $ | — | $ | 2.11 | $ | (0.01 | ) | $ | (0.25 | ) | $ | 16.97 | |||||||||||||||||||
20062 | 14.26 | 0.01 | 1.49 | (0.04 | ) | (0.60 | ) | 15.12 | |||||||||||||||||||||||||
20053 | 14.43 | (0.01 | ) | (0.16 | ) | — | — | 14.26 | |||||||||||||||||||||||||
20054 | 12.49 | 0.02 | 2.15 | (0.03 | ) | (0.20 | ) | 14.43 | |||||||||||||||||||||||||
20044 | 11.44 | 0.02 | 1.18 | (0.04 | ) | (0.11 | ) | 12.49 | |||||||||||||||||||||||||
20035 | 10.00 | 0.03 | 1.44 | (0.03 | ) | — | 11.44 | ||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||
20072 | $ | 15.22 | $ | 0.07 | $ | 2.13 | $ | (0.07 | ) | $ | (0.25 | ) | $ | 17.10 | |||||||||||||||||||
20062 | 14.33 | 0.10 | 1.49 | (0.10 | ) | (0.60 | ) | 15.22 | |||||||||||||||||||||||||
20053 | 14.49 | — | (0.16 | ) | — | — | 14.33 | ||||||||||||||||||||||||||
20054 | 12.53 | 0.09 | 2.16 | (0.09 | ) | (0.20 | ) | 14.49 | |||||||||||||||||||||||||
20044 | 11.45 | 0.07 | 1.19 | (0.07 | ) | (0.11 | ) | 12.53 | |||||||||||||||||||||||||
20035 | 10.00 | 0.05 | 1.45 | (0.05 | ) | — | 11.45 | ||||||||||||||||||||||||||
1 | Per share data calculated using average shares outstanding method. | |
2 | For the period November 1 to October 31 in the year indicated | |
3 | For the period October 1, 2005 to October 31, 2005. Effective in 2005, the fund’s fiscal year-end was changed from September 30 to October 31. All ratios for the period have been annualized, except total return and portfolio turnover. | |
4 | For the period October 1 to September 30 in the year indicated. | |
5 | Commenced operations on January 31, 2003. All ratios for the period ended September 30, 2003 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 | Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived. |
The accompanying notes are an integral part of the financial statements.
104 First American Funds 2007 Annual Report
Table of Contents
Ratio of Net | |||||||||||||||||||||||||||||||||||||
Ratio of | Investment | ||||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses to | Income (Loss) | |||||||||||||||||||||||||||||||||||
Ratio of | Investment | Average | to Average | ||||||||||||||||||||||||||||||||||
Net Assets | Expenses to | Income (Loss) | Net Assets | Net Assets | Portfolio | ||||||||||||||||||||||||||||||||
Total | End of | Average | to Average | (Excluding | (Excluding | Turnover | |||||||||||||||||||||||||||||||
Return 7 | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | |||||||||||||||||||||||||||||||
14.36 | % | $ | 7,998 | 1.19 | % | 0.20 | % | 1.19 | % | 0.20 | % | 138 | % | ||||||||||||||||||||||||
11.07 | 7,152 | 1.20 | 0.41 | 1.20 | 0.41 | 112 | |||||||||||||||||||||||||||||||
(1.17 | ) | 5,682 | 1.19 | (0.20 | ) | 1.19 | (0.20 | ) | 8 | ||||||||||||||||||||||||||||
17.83 | 5,299 | 1.17 | 0.41 | 1.22 | 0.36 | 176 | |||||||||||||||||||||||||||||||
10.82 | 714 | 1.15 | 0.30 | 1.21 | 0.24 | 67 | |||||||||||||||||||||||||||||||
14.91 | 215 | 1.15 | 0.42 | 1.24 | 0.33 | 65 | |||||||||||||||||||||||||||||||
13.52 | % | $ | 664 | 1.94 | % | (0.55 | )% | 1.94 | % | (0.55 | )% | 138 | % | ||||||||||||||||||||||||
10.32 | 643 | 1.95 | (0.34 | ) | 1.95 | (0.34 | ) | 112 | |||||||||||||||||||||||||||||
(1.26 | ) | 573 | 1.94 | (0.95 | ) | 1.94 | (0.95 | ) | 8 | ||||||||||||||||||||||||||||
17.02 | 567 | 1.92 | (0.36 | ) | 1.97 | (0.41 | ) | 176 | |||||||||||||||||||||||||||||
9.89 | 270 | 1.90 | (0.44 | ) | 1.96 | (0.50 | ) | 67 | |||||||||||||||||||||||||||||
14.18 | 113 | 1.90 | (0.35 | ) | 1.99 | (0.44 | ) | 65 | |||||||||||||||||||||||||||||
13.45 | % | $ | 325 | 1.94 | % | (0.57 | )% | 1.94 | % | (0.57 | )% | 138 | % | ||||||||||||||||||||||||
10.36 | 248 | 1.95 | (0.35 | ) | 1.95 | (0.35 | ) | 112 | |||||||||||||||||||||||||||||
(1.26 | ) | 180 | 1.94 | (0.95 | ) | 1.94 | (0.95 | ) | 8 | ||||||||||||||||||||||||||||
16.91 | 182 | 1.92 | (0.35 | ) | 1.97 | (0.40 | ) | 176 | |||||||||||||||||||||||||||||
9.98 | 59 | 1.90 | (0.45 | ) | 1.96 | (0.51 | ) | 67 | |||||||||||||||||||||||||||||
14.27 | 26 | 1.90 | (0.32 | ) | 1.99 | (0.41 | ) | 65 | |||||||||||||||||||||||||||||
14.09 | % | $ | 37 | 1.44 | % | 0.02 | % | 1.44 | % | 0.02 | % | 138 | % | ||||||||||||||||||||||||
10.79 | 118 | 1.45 | 0.08 | 1.57 | (0.04 | ) | 112 | ||||||||||||||||||||||||||||||
(1.18 | ) | 2 | 1.44 | (0.45 | ) | 1.59 | (0.60 | ) | 8 | ||||||||||||||||||||||||||||
17.54 | 2 | 1.42 | 0.14 | 1.62 | (0.06 | ) | 176 | ||||||||||||||||||||||||||||||
10.60 | 1 | 1.32 | 0.18 | 1.38 | 0.12 | 67 | |||||||||||||||||||||||||||||||
14.76 | 1 | 1.15 | 0.39 | 1.24 | 0.30 | 65 | |||||||||||||||||||||||||||||||
14.65 | % | $ | 449,201 | 0.94 | % | 0.45 | % | 0.94 | % | 0.45 | % | 138 | % | ||||||||||||||||||||||||
11.37 | 476,154 | 0.95 | 0.66 | 0.95 | 0.66 | 112 | |||||||||||||||||||||||||||||||
(1.10 | ) | 341,061 | 0.94 | 0.05 | 0.94 | 0.05 | 8 | ||||||||||||||||||||||||||||||
18.14 | 329,656 | 0.92 | 0.67 | 0.97 | 0.62 | 176 | |||||||||||||||||||||||||||||||
11.10 | 291,807 | 0.90 | 0.57 | 0.96 | 0.51 | 67 | |||||||||||||||||||||||||||||||
15.02 | 126,391 | 0.90 | 0.71 | 0.99 | 0.62 | 65 | |||||||||||||||||||||||||||||||
First American Funds 2007 Annual Report 105
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 (Loss) | Investments | Income | Gains | Period | ||||||||||||||||||||||||||||
Large Cap Value Fund1 | |||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||
20072 | $ | 22.12 | $ | 0.23 | $ | 2.19 | $ | (0.24 | ) | $ | (1.69 | ) | $ | 22.61 | |||||||||||||||||||
20062 | 19.56 | 0.21 | 3.19 | (0.21 | ) | (0.63 | ) | 22.12 | |||||||||||||||||||||||||
20053 | 20.06 | — | (0.50 | ) | — | — | 19.56 | ||||||||||||||||||||||||||
20054 | 17.21 | 0.17 | 2.85 | (0.17 | ) | — | 20.06 | ||||||||||||||||||||||||||
20044 | 14.97 | 0.15 | 2.24 | (0.15 | ) | — | 17.21 | ||||||||||||||||||||||||||
20034 | 12.77 | 0.18 | 2.20 | (0.18 | ) | — | 14.97 | ||||||||||||||||||||||||||
Class B | |||||||||||||||||||||||||||||||||
20072 | $ | 21.54 | $ | 0.07 | $ | 2.12 | $ | (0.12 | ) | $ | (1.69 | ) | $ | 21.92 | |||||||||||||||||||
20062 | 19.12 | 0.06 | 3.11 | (0.12 | ) | (0.63 | ) | 21.54 | |||||||||||||||||||||||||
20053 | 19.62 | (0.01 | ) | (0.49 | ) | — | — | 19.12 | |||||||||||||||||||||||||
20054 | 16.87 | 0.03 | 2.78 | (0.06 | ) | — | 19.62 | ||||||||||||||||||||||||||
20044 | 14.70 | 0.03 | 2.20 | (0.06 | ) | — | 16.87 | ||||||||||||||||||||||||||
20034 | 12.55 | 0.08 | 2.15 | (0.08 | ) | — | 14.70 | ||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||
20072 | $ | 21.81 | $ | 0.07 | $ | 2.14 | $ | (0.12 | ) | $ | (1.69 | ) | $ | 22.21 | |||||||||||||||||||
20062 | 19.35 | 0.06 | 3.15 | (0.12 | ) | (0.63 | ) | 21.81 | |||||||||||||||||||||||||
20053 | 19.85 | (0.01 | ) | (0.49 | ) | — | — | 19.35 | |||||||||||||||||||||||||
20054 | 17.07 | 0.03 | 2.81 | (0.06 | ) | — | 19.85 | ||||||||||||||||||||||||||
20044 | 14.87 | 0.03 | 2.23 | (0.06 | ) | — | 17.07 | ||||||||||||||||||||||||||
20034 | 12.70 | 0.08 | 2.17 | (0.08 | ) | — | 14.87 | ||||||||||||||||||||||||||
Class R5 | |||||||||||||||||||||||||||||||||
20072 | $ | 22.10 | $ | 0.17 | $ | 2.17 | $ | (0.18 | ) | $ | (1.69 | ) | $ | 22.57 | |||||||||||||||||||
20062 | 19.55 | 0.12 | 3.23 | (0.17 | ) | (0.63 | ) | 22.10 | |||||||||||||||||||||||||
20053 | 20.06 | (0.01 | ) | (0.50 | ) | — | — | 19.55 | |||||||||||||||||||||||||
20054 | 17.22 | 0.12 | 2.85 | (0.13 | ) | — | 20.06 | ||||||||||||||||||||||||||
20044 | 14.96 | 0.17 | 2.23 | (0.14 | ) | — | 17.22 | ||||||||||||||||||||||||||
20034 | 12.77 | 0.18 | 2.19 | (0.18 | ) | — | 14.96 | ||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||
20072 | $ | 22.19 | $ | 0.29 | $ | 2.18 | $ | (0.28 | ) | $ | (1.69 | ) | $ | 22.69 | |||||||||||||||||||
20062 | 19.62 | 0.26 | 3.21 | (0.27 | ) | (0.63 | ) | 22.19 | |||||||||||||||||||||||||
20053 | 20.12 | — | (0.50 | ) | — | — | 19.62 | ||||||||||||||||||||||||||
20054 | 17.26 | 0.22 | 2.86 | (0.22 | ) | — | 20.12 | ||||||||||||||||||||||||||
20044 | 15.01 | 0.20 | 2.24 | (0.19 | ) | — | 17.26 | ||||||||||||||||||||||||||
20034 | 12.80 | 0.22 | 2.20 | (0.21 | ) | — | 15.01 | ||||||||||||||||||||||||||
1 | Per share data calculated using average shares outstanding method. | |
2 | For the period November 1 to October 31 in the year indicated. | |
3 | For the period October 1, 2005 to October 31, 2005. Effective in 2005, the fund’s fiscal year-end was changed from September 30 to October 31. All ratios for the period have been annualized, except total return and portfolio turnover. | |
4 | For the period October 1 to September 30 in the year indicated. | |
5 | Prior to July 1, 2004, Class R shares were named Class S shares, which had lower fees and expenses. | |
6 | Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived. |
The accompanying notes are an integral part of the financial statements.
106 First American Funds 2007 Annual Report
Table of Contents
Ratio of Net | |||||||||||||||||||||||||||||||||||||
Ratio of | Investment | ||||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses to | Income (Loss) | |||||||||||||||||||||||||||||||||||
Ratio of | Investment | Average | to Average | ||||||||||||||||||||||||||||||||||
Net Assets | Expenses to | Income (Loss) | Net Assets | Net Assets | Portfolio | ||||||||||||||||||||||||||||||||
Total | End of | Average | to Average | (Excluding | (Excluding | Turnover | |||||||||||||||||||||||||||||||
Return 6 | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | |||||||||||||||||||||||||||||||
11.60 | % | $ | 113,223 | 1.17 | % | 1.05 | % | 1.17 | % | 1.05 | % | 81 | % | ||||||||||||||||||||||||
17.93 | 115,438 | 1.19 | 1.05 | 1.19 | 1.05 | 55 | |||||||||||||||||||||||||||||||
(2.48 | ) | 118,443 | 1.21 | (0.17 | ) | 1.21 | (0.17 | ) | 2 | ||||||||||||||||||||||||||||
17.62 | 121,809 | 1.17 | 0.90 | 1.20 | 0.87 | 61 | |||||||||||||||||||||||||||||||
16.01 | 113,683 | 1.15 | 0.91 | 1.19 | 0.87 | 104 | |||||||||||||||||||||||||||||||
18.71 | 88,024 | 1.15 | 1.30 | 1.20 | 1.25 | 94 | |||||||||||||||||||||||||||||||
10.76 | % | $ | 7,973 | 1.92 | % | 0.31 | % | 1.92 | % | 0.31 | % | 81 | % | ||||||||||||||||||||||||
17.04 | 9,815 | 1.94 | 0.32 | 1.94 | 0.32 | 55 | |||||||||||||||||||||||||||||||
(2.55 | ) | 13,826 | 1.96 | (0.92 | ) | 1.96 | (0.92 | ) | 2 | ||||||||||||||||||||||||||||
16.70 | 14,876 | 1.92 | 0.15 | 1.95 | 0.12 | 61 | |||||||||||||||||||||||||||||||
15.19 | 21,829 | 1.90 | 0.19 | 1.94 | 0.15 | 104 | |||||||||||||||||||||||||||||||
17.83 | 30,987 | 1.90 | 0.56 | 1.95 | 0.51 | 94 | |||||||||||||||||||||||||||||||
10.71 | % | $ | 4,587 | 1.92 | % | 0.31 | % | 1.92 | % | 0.31 | % | 81 | % | ||||||||||||||||||||||||
17.05 | 5,174 | 1.94 | 0.30 | 1.94 | 0.30 | 55 | |||||||||||||||||||||||||||||||
(2.52 | ) | 5,399 | 1.96 | (0.92 | ) | 1.96 | (0.92 | ) | 2 | ||||||||||||||||||||||||||||
16.75 | 5,710 | 1.92 | 0.15 | 1.95 | 0.12 | 61 | |||||||||||||||||||||||||||||||
15.21 | 6,344 | 1.90 | 0.18 | 1.94 | 0.14 | 104 | |||||||||||||||||||||||||||||||
17.76 | 6,844 | 1.90 | 0.56 | 1.95 | 0.51 | 94 | |||||||||||||||||||||||||||||||
11.25 | % | $ | 188 | 1.42 | % | 0.78 | % | 1.42 | % | 0.78 | % | 81 | % | ||||||||||||||||||||||||
17.63 | 164 | 1.44 | 0.58 | 1.55 | 0.47 | 55 | |||||||||||||||||||||||||||||||
(2.54 | ) | 7 | 1.46 | (0.42 | ) | 1.61 | (0.57 | ) | 2 | ||||||||||||||||||||||||||||
17.34 | 7 | 1.42 | 0.61 | 1.60 | 0.43 | 61 | |||||||||||||||||||||||||||||||
16.05 | 1 | 1.15 | 1.00 | 1.19 | 0.96 | 104 | |||||||||||||||||||||||||||||||
18.63 | 23,845 | 1.15 | 1.30 | 1.20 | 1.25 | 94 | |||||||||||||||||||||||||||||||
11.83 | % | $ | 726,512 | 0.92 | % | 1.30 | % | 0.92 | % | 1.30 | % | 81 | % | ||||||||||||||||||||||||
18.23 | 825,633 | 0.94 | 1.29 | 0.94 | 1.29 | 55 | |||||||||||||||||||||||||||||||
(2.47 | ) | 740,511 | 0.96 | 0.08 | 0.96 | 0.08 | 2 | ||||||||||||||||||||||||||||||
17.92 | 764,679 | 0.92 | 1.17 | 0.95 | 1.14 | 61 | |||||||||||||||||||||||||||||||
16.31 | 1,021,197 | 0.90 | 1.17 | 0.94 | 1.13 | 104 | |||||||||||||||||||||||||||||||
19.04 | 874,267 | 0.90 | 1.55 | 0.95 | 1.50 | 94 | |||||||||||||||||||||||||||||||
First American Funds 2007 Annual Report 107
Table of Contents
Schedule of Investments October 31, 2007, all dollars are rounded to thousands (000)
Balanced Fund | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Common Stocks – 52.9% | ||||||||
Consumer Discretionary – 4.5% | ||||||||
1-800-Flowers.com, Class A (a) | 11,051 | $ | 132 | |||||
Aftermarket Technology (a) (b) | 5,695 | 197 | ||||||
Cato, Class A (b) | 5,010 | 101 | ||||||
Children’s Place Retail Stores (a) (b) | 2,468 | 63 | ||||||
Christopher & Banks (b) | 8,521 | 117 | ||||||
Coinstar (a) (b) | 4,983 | 172 | ||||||
Comcast, Class A (a) | 97,947 | 2,062 | ||||||
Conn’s (a) (b) | 7,247 | 185 | ||||||
Cosi (a) (b) | 17,615 | 61 | ||||||
DIRECTV Group (a) | 88,974 | 2,356 | ||||||
FGX International Holdings Limited (a) | 1,157 | 20 | ||||||
GSI Commerce (a) (b) | 3,960 | 113 | ||||||
Hibbett Sports (a) (b) | 3,304 | 78 | ||||||
Interface, Class A | 4,308 | 82 | ||||||
Journal Communications, Class A | 11,476 | 102 | ||||||
Kohl’s (a) (b) | 39,152 | 2,152 | ||||||
McCormick & Schmick’s Seafood Restaurants (a) | 4,802 | 81 | ||||||
Nike, Class B | 32,974 | 2,185 | ||||||
NutriSystem (a) (b) | 2,477 | 75 | ||||||
Omnicom Group | 71,383 | 3,639 | ||||||
P.F. Chang’s China Bistro (a) (b) | 7,207 | 210 | ||||||
Scientific Games, Class A (a) (b) | 5,728 | 207 | ||||||
Skechers U.S.A., Class A (a) (b) | 4,804 | 118 | ||||||
Texas Roadhouse, Class A (a) | 9,113 | 115 | ||||||
WMS Industries (a) (b) | 8,672 | 301 | ||||||
14,924 | ||||||||
Consumer Staples – 2.3% | ||||||||
Altria Group | 57,614 | 4,202 | ||||||
Hain Celestial Group (a) (b) | 7,458 | 261 | ||||||
PepsiCo | 41,676 | 3,072 | ||||||
USANA Health Sciences (a) (b) | 2,393 | 98 | ||||||
7,633 | ||||||||
Energy – 7.2% | ||||||||
Apache | 32,997 | 3,425 | ||||||
Arena Resources (a) | 4,524 | 165 | ||||||
Atwood Oceanics (a) (b) | 924 | 78 | ||||||
Baytex Energy Trust | 3,220 | 69 | ||||||
Brigham Exploration (a) | 5,685 | 42 | ||||||
Cameron International (a) (b) | 12,707 | 1,237 | ||||||
Canadian Oil Sands Trust (a) | 3,932 | 144 | ||||||
Canetic Resources Trust | 12,799 | 208 | ||||||
Comstock Resources (a) (b) | 7,286 | 266 | ||||||
Edge Petroleum (a) (b) | 15,328 | 139 | ||||||
Exxon Mobil | 53,251 | 4,898 | ||||||
Harvest Energy Trust (b) | 4,000 | 114 | ||||||
Helix Energy Solutions Group (a) (b) | 8,056 | 373 | ||||||
Marathon Oil (b) | 34,992 | 2,069 | ||||||
National-Oilwell Varco (a) (b) | 16,392 | 1,200 | ||||||
Occidental Petroleum | 52,528 | 3,627 | ||||||
Patterson-UTI Energy (b) | 4,898 | 98 | ||||||
Penn West Energy Trust | 2,065 | 66 | ||||||
Southwestern Energy (a) | 43,722 | 2,262 | ||||||
St. Mary Land & Exploration | 1,832 | 78 | ||||||
Weatherford International (a) | 21,789 | 1,414 | ||||||
Williams | 57,227 | 2,088 | ||||||
24,060 | ||||||||
Financials – 12.3% | ||||||||
Affiliated Managers Group (a) (b) | 27,473 | 3,614 | ||||||
AllianceBernstein Holding | 34,202 | 2,922 | ||||||
Ambac Financial Group | 24,839 | 915 | ||||||
American International Group | 85,095 | 5,371 | ||||||
Bank of America | 70,332 | 3,396 | ||||||
BioMed Realty Trust – REIT (b) | 6,510 | 156 | ||||||
Citigroup | 107,374 | 4,499 | ||||||
Columbia Banking System | 3,306 | 103 | ||||||
Cullen/ Frost Bankers (b) | 5,118 | 272 | ||||||
Digital Realty Trust – REIT (b) | 3,072 | 135 | ||||||
Dime Community Bancshares | 8,531 | 123 | ||||||
East West Bancorp | 7,061 | 238 | ||||||
First Potomac Realty Trust – REIT | 6,763 | 141 | ||||||
Goldman Sachs Group | 15,798 | 3,917 | ||||||
Independent Bank (b) | 3,376 | 100 | ||||||
Kite Realty Group Trust – REIT | 5,629 | 102 | ||||||
Knight Capital Group, Class A (a) (b) | 9,355 | 125 | ||||||
LaSalle Hotel Properties – REIT | 3,115 | 129 | ||||||
Lehman Brothers Holdings | 26,402 | 1,672 | ||||||
Morgan Stanley | 74,945 | 5,041 | ||||||
Nara Bancorp | 6,092 | 94 | ||||||
National Financial Partners | 1,826 | 100 | ||||||
Newcastle Investment – REIT (b) | 8,190 | 122 | ||||||
NorthStar Realty Finance – REIT | 2,631 | 25 | ||||||
Platinum Underwriters Holdings (b) | 7,069 | 254 | ||||||
PMI Group (b) | 92,339 | 1,480 | ||||||
South Financial Group (b) | 6,881 | 142 | ||||||
Umpqua Holdings (b) | 6,343 | 107 | ||||||
Wachovia | 122,476 | 5,601 | ||||||
40,896 | ||||||||
Healthcare – 6.4% | ||||||||
Abbott Laboratories | 46,244 | 2,526 | ||||||
AngioDynamics (a) | 9,047 | 181 | ||||||
Arena Pharmaceuticals (a) (b) | 2,929 | 28 | ||||||
Baxter International | 36,296 | 2,178 | ||||||
BioMarin Pharmaceutical (a) (b) | 1,986 | 55 | ||||||
Bristol-Myers Squibb | 73,644 | 2,209 | ||||||
Coventry Health Care (a) | 29,592 | 1,785 | ||||||
Dexcom (a) (b) | 10,606 | 99 | ||||||
Exelixis (a) (b) | 8,804 | 97 | ||||||
ICU Medical (a) (b) | 4,356 | 175 | ||||||
K-V Pharmaceutical, Class A (a) (b) | 6,949 | 218 | ||||||
Magellan Health Services (a) | 3,667 | 154 | ||||||
Medtronic | 49,468 | 2,347 | ||||||
Merck | 55,531 | 3,235 | ||||||
Myriad Genetics (a) (b) | 1,054 | 58 | ||||||
Pediatrix Medical Group (a) | 3,925 | 257 | ||||||
Pharmion (a) (b) | 1,258 | 61 | ||||||
Salix Pharmaceuticals (a) (b) | 6,539 | 76 | ||||||
Senomyx (a) (b) | 9,488 | 110 | ||||||
SonoSite (a) (b) | 9,928 | 349 | ||||||
SurModics (a) (b) | 2,307 | 131 | ||||||
Theravance (a) (b) | 2,133 | 53 | ||||||
Trans1 (a) (b) | 1,444 | 36 | ||||||
TriZetto Group (a) (b) | 2,506 | 41 | ||||||
UnitedHealth Group | 50,386 | 2,476 | ||||||
Wyeth | 49,354 | 2,400 | ||||||
21,335 | ||||||||
Industrials – 2.4% | ||||||||
American Standard (b) | 44,130 | 1,645 | ||||||
AMETEK | 5,441 | 256 | ||||||
BE Aerospace (a) (b) | 2,827 | 141 | ||||||
Ceradyne (a) (b) | 1,144 | 78 | ||||||
Columbus McKinnon (a) (b) | 5,733 | 190 | ||||||
ESCO Technologies (a) (b) | 5,827 | 241 | ||||||
Forward Air (b) | 4,856 | 158 | ||||||
Genlyte Group (a) (b) | 1,237 | 80 | ||||||
Knoll | 465 | 9 | ||||||
L-3 Communications Holdings | 16,587 | 1,819 | ||||||
MasTec (a) | 5,637 | 89 |
The accompanying notes are an integral part of the financial statements.
108 First American Funds 2007 Annual Report
Table of Contents
Balanced Fund (continued) | |||||||||
DESCRIPTION | SHARES | VALUE | |||||||
NCI Building Systems (a) (b) | 2,493 | $ | 98 | ||||||
Power-One (a) (b) | 15,882 | 90 | |||||||
Regal-Beloit (b) | 4,699 | 230 | |||||||
SPX | 17,645 | 1,787 | |||||||
Timken (b) | 6,067 | 202 | |||||||
US Airways Group (a) | 27,542 | 762 | |||||||
WESCO International (a) (b) | 5,117 | 239 | |||||||
8,114 | |||||||||
Information Technology – 12.8% | |||||||||
ADC Telecommunications (a) (b) | 8,143 | 152 | |||||||
Advanced Analogic Technologies (a) (b) | 19,644 | 237 | |||||||
Apple (a) | 9,863 | 1,874 | |||||||
AudioCodes (a) | 8,941 | 58 | |||||||
Cisco Systems (a) (b) | 194,890 | 6,443 | |||||||
Cognex | 3,779 | 68 | |||||||
Corning (b) | 64,015 | 1,554 | |||||||
Digital River (a) (b) | 4,593 | 244 | |||||||
Emulex (a) (b) | 16,921 | 367 | |||||||
F5 Networks (a) (b) | 27,616 | 995 | |||||||
Greenfield Online (a) (b) | 6,151 | 94 | |||||||
Harris Stratex Networks, Class A (a) (b) | 10,248 | 196 | |||||||
Hewlett-Packard | 102,143 | 5,279 | |||||||
Hittite Microwave (a) (b) | 1,253 | 63 | |||||||
Intel | 140,458 | 3,778 | |||||||
Ixia (a) (b) | 9,356 | 98 | |||||||
Lam Research (a) | 30,646 | 1,538 | |||||||
MEMC Electronic Materials (a) | 29,725 | 2,177 | |||||||
Micrel | 10,528 | 95 | |||||||
Microsoft | 172,227 | 6,340 | |||||||
Oracle (a) | 150,178 | 3,329 | |||||||
Orbotech (a) | 3,678 | 76 | |||||||
Photronics (a) (b) | 17,044 | 186 | |||||||
Plexus (a) | 8,910 | 230 | |||||||
PMC-Sierra (a) (b) | 25,227 | 227 | |||||||
Progress Software (a) (b) | 7,257 | 237 | |||||||
QUALCOMM | 62,212 | 2,658 | |||||||
Research In Motion (a) (b) | 12,368 | 1,540 | |||||||
Silicon Laboratories (a) (b) | 4,877 | 213 | |||||||
Synaptics (a) (b) | 3,292 | 179 | |||||||
Teradata (a) | 65,496 | 1,869 | |||||||
Tessera Technologies (a) (b) | 4,910 | 188 | |||||||
TIBCO Software (a) (b) | 10,281 | 94 | |||||||
TTM Technologies (a) | 13,676 | 176 | |||||||
42,852 | |||||||||
Materials – 2.8% | |||||||||
Albemarle | 842 | 40 | |||||||
Cleveland-Cliffs | 18,786 | 1,797 | |||||||
Freeport-McMoRan Copper & Gold (b) | 16,247 | 1,912 | |||||||
Owens-Illinois (a) | 113,132 | 5,025 | |||||||
Schnitzer Steel Industries, Class A (b) | 2,012 | 133 | |||||||
Terra Industries (a) (b) | 5,734 | 212 | |||||||
Texas Industries | 2,989 | 218 | |||||||
9,337 | |||||||||
Telecommunication Services – 2.2% | |||||||||
American Tower, Class A (a) | 87,013 | 3,844 | |||||||
General Communication, Class A (a) | 10,611 | 125 | |||||||
Verizon Communications | 75,654 | 3,485 | |||||||
7,454 | |||||||||
Utilities – 0.0% | |||||||||
NSTAR (b) | 2,026 | 71 | |||||||
Total Common Stocks | |||||||||
(Cost $154,295) | 176,676 | ||||||||
Investment Companies – 4.5% | |||||||||
iShares MSCI EAFE Index Fund (b) | 133,900 | 11,529 | |||||||
iShares MSCI Emerging Markets Index Fund (b) | 9,600 | 1,605 | |||||||
iShares Nasdaq Biotechnology Index Fund (b) | 21,973 | 1,903 | |||||||
Total Investment Companies | |||||||||
(Cost $9,824) | 15,037 | ||||||||
U.S. Government Agency Mortgage-Backed Securities – 11.8% | |||||||||
Adjustable Rate (c) – 1.2% | |||||||||
Federal Home Loan Mortgage Corporation Pool | |||||||||
7.400%, 01/01/2028, #786281 | $ | 148 | 151 | ||||||
5.771%, 07/01/2036, #1K1238 (b) | 939 | 942 | |||||||
5.597%, 05/01/2037, #1H1396 (b) | 1,443 | 1,451 | |||||||
Federal National Mortgage Association Pool | |||||||||
6.164%, 04/01/2018, #070009 | 36 | 36 | |||||||
7.140%, 09/01/2033, #725553 | 564 | 576 | |||||||
5.270%, 11/01/2034, #735054 (b) | 743 | 744 | |||||||
3,900 | |||||||||
Fixed Rate – 10.6% | |||||||||
Federal Home Loan Mortgage Corporation Pool | |||||||||
4.000%, 04/01/2008, #M90808 (b) | 425 | 422 | |||||||
6.500%, 04/01/2008, #E00225 | 2 | 2 | |||||||
7.000%, 04/01/2008, #E46044 | 1 | 1 | |||||||
4.000%, 10/01/2010, #M80855 | 734 | 717 | |||||||
5.500%, 03/01/2013, #E00546 | 83 | 84 | |||||||
4.500%, 05/01/2018, #P10032 (b) | 360 | 355 | |||||||
6.500%, 11/01/2028, #C00676 | 422 | 436 | |||||||
7.000%, 12/01/2029, #G01091 | 79 | 82 | |||||||
6.500%, 07/01/2031, #A17212 (b) | 301 | 311 | |||||||
6.000%, 05/01/2032, #C01361 | 101 | 102 | |||||||
7.000%, 08/01/2037, #H09059 (b) | 922 | 949 | |||||||
Federal National Mortgage Association Pool | |||||||||
3.790%, 07/01/2013, #386314 (b) | 1,296 | 1,220 | |||||||
6.000%, 09/01/2017, #653368 | 190 | 194 | |||||||
5.000%, 07/01/2018, #555621 (b) | 991 | 979 | |||||||
5.000%, 12/01/2018, #725012 | 820 | 810 | |||||||
4.500%, 06/01/2019, #045181 | 301 | 291 | |||||||
5.000%, 11/01/2019, #725934 | 244 | 241 | |||||||
5.500%, 01/01/2020, #735386 (b) | 437 | 440 | |||||||
5.500%, 06/01/2020, #735792 (b) | 376 | 378 | |||||||
6.000%, 10/01/2022, #254513 (b) | 385 | 391 | |||||||
5.500%, 12/01/2024, #357662 | 707 | 704 | |||||||
5.500%, 02/01/2025, #255628 (b) | 807 | 803 | |||||||
5.500%, 10/01/2025, #255956 (b) | 1,302 | 1,295 | |||||||
6.000%, 08/01/2027, #256852 (b) | 848 | 858 | |||||||
7.000%, 04/01/2029, #323681 | 82 | 86 | |||||||
6.500%, 12/01/2031, #254169 (b) | 287 | 293 | |||||||
6.000%, 04/01/2032, #745101 (b) | 829 | 848 | |||||||
6.500%, 05/01/2032, #640032 | 658 | 677 | |||||||
7.000%, 07/01/2032, #545815 | 155 | 162 | |||||||
6.000%, 09/01/2032, #254447 (b) | 321 | 325 | |||||||
6.000%, 01/01/2033, #676647 | 553 | 560 | |||||||
5.500%, 04/01/2033, #694605 (b) | 915 | 904 | |||||||
5.500%, 06/01/2033, #843435 (b) | 417 | 412 | |||||||
5.500%, 07/01/2033, #728667 (b) | 459 | 454 | |||||||
5.500%, 08/01/2033, #733380 (b) | 1,039 | 1,027 | |||||||
5.000%, 09/01/2033, #713735 | 1,133 | 1,090 | |||||||
5.000%, 10/01/2033, #741897 (b) | 738 | 710 | |||||||
5.500%, 10/01/2033, #555800 (b) | 1,067 | 1,055 | |||||||
6.000%, 11/01/2033, #772130 | 156 | 158 | |||||||
6.000%, 11/01/2033, #772256 | 202 | 204 | |||||||
5.500%, 12/01/2033, #756202 (b) | 656 | 648 | |||||||
5.000%, 03/01/2034, #725205 (b) | 824 | 793 | |||||||
5.000%, 03/01/2034, #725250 (b) | 743 | 715 |
First American Funds 2007 Annual Report 109
Table of Contents
Schedule of Investments October 31, 2007, all dollars are rounded to thousands (000)
Balanced Fund (continued) | ||||||||||
DESCRIPTION | PAR | VALUE | ||||||||
5.500%, 04/01/2034, #725424 (b) | 385 | $ | 381 | |||||||
5.500%, 05/01/2034, #357571 (b) | 719 | 710 | ||||||||
5.000%, 06/01/2034, #782909 (b) | 359 | 346 | ||||||||
6.500%, 06/01/2034, #735273 (b) | 674 | 693 | ||||||||
6.500%, 11/01/2034 (d) | 1,250 | 1,279 | ||||||||
5.500%, 03/01/2036, #745354 | 1,194 | 1,178 | ||||||||
6.500%, 04/01/2036, #852909 (b) | 615 | 630 | ||||||||
6.500%, 07/01/2036, #831683 (b) | 596 | 610 | ||||||||
6.000%, 08/01/2036, #885536 (b) | 1,460 | 1,471 | ||||||||
6.500%, 08/01/2036, #893318 (b) | 512 | 524 | ||||||||
6.000%, 11/01/2036, #902786 (b) | 1,113 | 1,121 | ||||||||
5.500%, 01/01/2037, #906059 (b) | 968 | 954 | ||||||||
5.500%, 08/01/2037, #943438 (b) | 1,775 | 1,749 | ||||||||
6.000%, 09/01/2037, #256890 | 587 | 587 | ||||||||
Government National Mortgage Association Pool | ||||||||||
6.500%, 10/20/2010, #002108 | 5 | 5 | ||||||||
7.500%, 06/15/2027, #447728 | 6 | 6 | ||||||||
7.500%, 09/15/2027, #455516 | 9 | 9 | ||||||||
7.000%, 04/15/2029, #506639 | 147 | 155 | ||||||||
35,594 | ||||||||||
Total U.S. Government Agency Mortgage-Backed Securities | ||||||||||
(Cost $39,766) | 39,494 | |||||||||
Collateralized Mortgage Obligation – Private Mortgage-Backed Securities – 8.2% | ||||||||||
Adjustable Rate (c) – 3.4% | ||||||||||
Citigroup Mortgage Loan Trust Series 2004-HYB4, Class HAII | ||||||||||
5.353%, 10/25/2034 | 2,103 | 2,111 | ||||||||
Series 2005-7, Class 2A1A | ||||||||||
4.863%, 09/25/2035 | 637 | 633 | ||||||||
Countrywide Home Loans Series 2006-HYB5, Class 3A1A | ||||||||||
5.970%, 09/20/2036 | 1,294 | 1,307 | ||||||||
GMAC Mortgage Corporation Loan Trust Series 2003-AR2, Class 4A1 | ||||||||||
4.735%, 12/19/2033 | 730 | 716 | ||||||||
Harborview Mortgage Loan Trust Series 2007-4, Class 2A1 | ||||||||||
5.723%, 07/19/2047 | 1,091 | 1,060 | ||||||||
J.P. Morgan Mortgage Trust Series 2004-A1, Class 3A1 | ||||||||||
4.993%, 02/25/2034 | 1,099 | 1,088 | ||||||||
Series 2006-A7, Class 3A4 | ||||||||||
5.946%, 01/25/2037 | 489 | 490 | ||||||||
Residential Funding Mortgage Securities I Series 2006-SA2, Class 4A1 | ||||||||||
5.877%, 08/25/2036 | 966 | 967 | ||||||||
Structured Mortgage Loan Trust Series 2004-11, Class A | ||||||||||
7.195%, 08/25/2034 | 40 | 40 | ||||||||
Wachovia Bank Commercial Mortgage Trust Series 2007-C33, Class AJ | ||||||||||
6.100%, 07/15/2017 | 420 | 416 | ||||||||
Wachovia Mortgage Loan Trust Series 2005-B, Class 1A1 | ||||||||||
4.952%, 10/20/2035 | 478 | 477 | ||||||||
Washington Mutual Series 2004-AR7, Class A6 | ||||||||||
3.941%, 07/25/2034 | 775 | 763 | ||||||||
Wells Fargo Mortgage Backed Securities Trust Series 2003-D, Class A1 | ||||||||||
4.892%, 02/25/2033 | 297 | 296 | ||||||||
Series 2004-N, Class A3 | ||||||||||
4.116%, 08/25/2034 | 227 | 225 | ||||||||
Series 2006-AR1, Class 2A2 | ||||||||||
5.554%, 03/25/2036 | 943 | 939 | ||||||||
11,528 | ||||||||||
Fixed Rate – 4.8% | ||||||||||
ABN AMRO Mortgage Series 2003-7, Class A1 | ||||||||||
4.750%, 07/25/2018 | 735 | 725 | ||||||||
Banc of America Mortgage Securities Series 2003-6, Class 1A30 | ||||||||||
4.750%, 08/25/2033 | 585 | 578 | ||||||||
Countrywide Alternative Loan Trust Series 2004-12CB, Class 1A1 | ||||||||||
5.000%, 07/25/2019 | 402 | 391 | ||||||||
Series 2004-2CB, Class 1A1 | ||||||||||
4.250%, 03/25/2034 | 300 | 293 | ||||||||
Series 2004-24CB, Class 1A1 | ||||||||||
6.000%, 11/25/2034 | 310 | 307 | ||||||||
Series 2006-19CB, Class A15 | ||||||||||
6.000%, 08/25/2036 | 396 | 399 | ||||||||
Countrywide Home Loans Series 2007-17, Class 1A1 | ||||||||||
6.000%, 10/25/2037 | 1,263 | 1,259 | ||||||||
Credit Suisse First Boston Mortgage Securities Series 2005-3, Class 5A1 | ||||||||||
5.500%, 07/25/2020 | 542 | 541 | ||||||||
Crown Castle Towers Series 2005-1A, Class B | ||||||||||
4.878%, 06/15/2035 (e) | 630 | 621 | ||||||||
GMAC Mortgage Corporation Loan Trust Series 2004-J5, Class A7 | ||||||||||
6.500%, 01/25/2035 | 512 | 520 | ||||||||
GS Mortgage Securities II Series 2007-GG10, Class A4 | ||||||||||
5.799%, 08/10/2045 (b) | 1,205 | 1,221 | ||||||||
GSMPS Mortgage Loan Trust Series 2003-1, Class B1 | ||||||||||
6.982%, 03/25/2043 | 853 | 852 | ||||||||
GSR Mortgage Loan Trust Series 2004-10F, Class 3A1 | ||||||||||
5.500%, 08/25/2019 | 382 | 382 | ||||||||
J.P. Morgan Chase Commercial Mortgage Securities Series 2007-CB20, Class AJ | ||||||||||
6.099%, 02/12/2051 | 635 | 637 | ||||||||
Master Alternative Loans Trust Series 2005-2, Class 1A3 | ||||||||||
6.500%, 03/25/2035 | 262 | 265 | ||||||||
Master Asset Securitization Trust Series 2003-6, Class 3A1 | ||||||||||
5.000%, 07/25/2018 | 609 | 603 | ||||||||
Morgan Stanley Dean Witter Capital I Series 2002-TOP7, Class A2 | ||||||||||
5.980%, 01/15/2039 | 1,025 | 1,051 | ||||||||
Morgan Stanley Mortgage Loan Trust Series 2004-9, Class 1A | ||||||||||
6.268%, 11/25/2034 | 334 | 338 | ||||||||
Residential Asset Mortgage Products Series 2004-SL4, Class A3 | ||||||||||
6.500%, 07/25/2032 | 264 | 271 |
The accompanying notes are an integral part of the financial statements.
110 First American Funds 2007 Annual Report
Table of Contents
Balanced Fund (continued) | ||||||||||
DESCRIPTION | PAR | VALUE | ||||||||
Residential Funding Mortgage Securities I Series 2004-S9, Class 2A1 | ||||||||||
4.750%, 12/25/2019 | 824 | $ | 804 | |||||||
Washington Mutual Series 2004-CB1, Class 1A | ||||||||||
5.250%, 06/25/2019 | 632 | 626 | ||||||||
Washington Mutual MSC Mortgage Pass-Through Trust Series 2004-RA3, Class 2A | ||||||||||
6.384%, 08/25/2038 | 389 | 395 | ||||||||
Wells Fargo Mortgage Backed Securities Trust Series 2003-14, Class A1 | ||||||||||
4.750%, 12/25/2018 | 509 | 495 | ||||||||
Series 2004-7, Class 2A2 | ||||||||||
5.000%, 07/25/2019 | 1,388 | 1,361 | ||||||||
Series 2007-13, Class A8 | ||||||||||
6.000%, 09/25/2037 | 1,027 | 1,017 | ||||||||
Westam Mortgage Financial Series 11, Class A | ||||||||||
6.360%, 08/26/2020 (f) | 1 | 1 | ||||||||
15,953 | ||||||||||
Total Collateralized Mortgage Obligation – Private Mortgage-Backed Securities | ||||||||||
(Cost $27,415) | 27,481 | |||||||||
Asset-Backed Securities – 7.7% | ||||||||||
Automotive – 0.8% | ||||||||||
Harley-Davidson Motorcycle Trust Series 2005-4, Class A2 | ||||||||||
4.850%, 06/15/2012 | 470 | 470 | ||||||||
Hertz Vehicle Financing Series 2005-2A, Class A6 | ||||||||||
5.080%, 11/25/2011 (e) | 935 | 936 | ||||||||
Volkswagen Auto Loan Enhanced Trust Series 2005-1, Class A4 | ||||||||||
4.860%, 04/20/2012 | 1,170 | 1,170 | ||||||||
2,576 | ||||||||||
Commercial Mortgages – 5.2% | ||||||||||
Banc of America Commercial Mortgage Series 2004-5, Class A3 | ||||||||||
4.561%, 11/10/2041 | 710 | 694 | ||||||||
Series 2006-2, Class A4 | ||||||||||
5.741%, 05/10/2045 | 340 | 344 | ||||||||
Bear Stearns Commercial Mortgage Securities Series 2005-PW10, Class A4 | ||||||||||
5.405%, 12/11/2040 | 635 | 626 | ||||||||
Series 2007-T28, Class D | ||||||||||
6.177%, 09/11/2042 (e) | 270 | 253 | ||||||||
Citigroup/ Deutsche Bank Commercial Mortgage Trust Series 2007-CD4, Class A2B | ||||||||||
5.205%, 12/11/2049 | 230 | 228 | ||||||||
Commercial Mortgage Pass-Through Certificates Series 2006-CN2A, Class A2FX | ||||||||||
5.449%, 02/05/2019 (e) | 585 | 589 | ||||||||
Series 2004-RS1, Class A | ||||||||||
4.018%, 03/03/2041 (e) | 414 | 399 | ||||||||
Series 2005-LP5, Class A2 | ||||||||||
4.630%, 05/10/2043 | 921 | 911 | ||||||||
GE Capital Commercial Mortgage Corporation Series 2005-C3, Class A2 | ||||||||||
4.853%, 07/10/2045 | 725 | 719 | ||||||||
GMAC Commercial Mortgage Securities Series 2004-C2, Class A1 | ||||||||||
3.896%, 08/10/2038 | 374 | 369 | ||||||||
Series 2005-C1, Class A2 | ||||||||||
4.471%, 05/10/2043 | 1,195 | 1,178 | ||||||||
Greenwich Capital Commercial Funding Series 2003-C1, Class A2 | ||||||||||
3.285%, 07/05/2035 | 1,761 | 1,717 | ||||||||
Series 2005-GG5, Class A2 | ||||||||||
5.117%, 04/10/2037 | 1,600 | 1,598 | ||||||||
Series 2005-GG5, Class A5 | ||||||||||
5.224%, 04/10/2037 | 750 | 734 | ||||||||
Series 2007-GG11, Class A4 | ||||||||||
5.736%, 12/10/2049 | 925 | 929 | ||||||||
Series 2007-GG11, Class AJ | ||||||||||
6.207%, 12/10/2049 | 725 | 721 | ||||||||
GS Mortgage Securities II Series 2006-GG8, Class A2 | ||||||||||
5.479%, 11/10/2039 | 1,500 | 1,507 | ||||||||
Series 2006-RR2, Class A1 | ||||||||||
5.686%, 06/23/2046 (c) (e) | 740 | 703 | ||||||||
Series 2006-RR3, Class A1S | ||||||||||
5.659%, 07/18/2056 (e) | 600 | 565 | ||||||||
J.P. Morgan Chase Commercial Mortgage Securities Series 2005-LDP5, Class B | ||||||||||
5.334%, 12/15/2044 | 245 | 233 | ||||||||
LB-UBS Commercial Mortgage Trust Series 2003-C3, Class A2 | ||||||||||
3.086%, 05/15/2027 | 1,280 | 1,266 | ||||||||
Series 2005-C7, Class A2 | ||||||||||
5.103%, 11/15/2030 | 800 | 799 | ||||||||
Merrill Lynch Mortgage Trust Series 2005-CIP1, Class C | ||||||||||
5.129%, 07/12/2038 | 265 | 248 | ||||||||
Morgan Stanley Capital I Series 2005-HQ6, Class B | ||||||||||
5.152%, 08/13/2042 | 115 | 108 | ||||||||
Series 2005-HQ6, Class C | ||||||||||
5.172%, 08/13/2042 | 110 | 103 | ||||||||
17,541 | ||||||||||
Credit Cards – 0.8% | ||||||||||
Bank of America Credit Card Trust Series 2007-A8, Class A8 | ||||||||||
5.590%, 11/17/2014 (c) | 765 | 780 | ||||||||
Capital One Multi-Asset Execution Trust Series 2007-A7, Class A7 | ||||||||||
5.750%, 07/15/2020 | 530 | 535 | ||||||||
Citibank Credit Card Issuance Trust Series 2006-A4, Class A4 | ||||||||||
5.450%, 05/10/2013 | 805 | 818 | ||||||||
Discover Card Master Trust Series 2007-A1, Class A1 | ||||||||||
5.650%, 03/16/2020 | 565 | 566 | ||||||||
2,699 | ||||||||||
Home Equity – 0.0% | ||||||||||
Saxon Asset Securities Trust Series 2004-1, Class A | ||||||||||
6.450%, 03/25/2035 (c) | 4 | 4 | ||||||||
Other – 0.6% | ||||||||||
Global Signal Trust Series 2004-2A, Class A | ||||||||||
4.232%, 12/15/2014 (e) | 750 | 737 |
First American Funds 2007 Annual Report 111
Table of Contents
Schedule of Investments October 31, 2007, all dollars are rounded to thousands (000)
Balanced Fund (continued) | |||||||||
DESCRIPTION | PAR | VALUE | |||||||
Small Business Administration Series 2006-P10B, Class 1 | |||||||||
5.681%, 08/10/2016 | 1,131 | $ | 1,134 | ||||||
1,871 | |||||||||
Utilities – 0.3% | |||||||||
PG & E Energy Recovery Funding Series 2005-2, Class A2 | |||||||||
5.030%, 03/25/2014 | 1,050 | 1,056 | |||||||
Total Asset-Backed Securities | |||||||||
(Cost $25,762) | 25,747 | ||||||||
Corporate Bonds – 6.5% | |||||||||
Banking – 0.2% | |||||||||
J.P. Morgan Chase | |||||||||
5.150%, 10/01/2015 | 550 | 534 | |||||||
Wells Fargo Capital X | |||||||||
5.950%, 12/15/2036 | 230 | 216 | |||||||
750 | |||||||||
Basic Industry – 0.8% | |||||||||
Celulosa Arauco y Constitucion | |||||||||
5.625%, 04/20/2015 | 345 | 339 | |||||||
Evraz Group | |||||||||
8.250%, 11/10/2015 (e) | 190 | 193 | |||||||
FMG Finance | |||||||||
10.000%, 09/01/2013 (e) | 195 | 216 | |||||||
Freeport-McMoRan Copper & Gold | |||||||||
8.375%, 04/01/2017 | 350 | 383 | |||||||
Georgia-Pacific | |||||||||
7.125%, 01/15/2017 (b) (e) | 190 | 185 | |||||||
Griffin Coal Mining | |||||||||
9.500%, 12/01/2016 (e) | 200 | 198 | |||||||
Noble Group Limited | |||||||||
6.625%, 03/17/2015 (e) | 255 | 239 | |||||||
Sino Forest | |||||||||
9.125%, 08/17/2011 (e) | 195 | 207 | |||||||
Southern Copper | |||||||||
7.500%, 07/27/2035 | 190 | 207 | |||||||
Teck Cominco Limited | |||||||||
6.125%, 10/01/2035 | 280 | 265 | |||||||
Vale Overseas | |||||||||
6.250%, 01/11/2016 | 175 | 178 | |||||||
2,610 | |||||||||
Brokerage – 0.4% | |||||||||
Lehman Brothers Holdings | |||||||||
5.750%, 01/03/2017 (b) | 365 | 350 | |||||||
Merrill Lynch | |||||||||
6.050%, 05/16/2016 | 540 | 535 | |||||||
Morgan Stanley | |||||||||
5.375%, 10/15/2015 | 440 | 423 | |||||||
1,308 | |||||||||
Capital Goods – 0.1% | |||||||||
Siemens Financiering | |||||||||
6.125%, 08/17/2026 (e) | 225 | 227 | |||||||
Communications – 0.1% | |||||||||
Telefonica Emisones | |||||||||
6.221%, 07/03/2017 (b) | 210 | 217 | |||||||
Vimpelcom | |||||||||
8.250%, 05/23/2016 (e) | 230 | 238 | |||||||
455 | |||||||||
Consumer Cyclical – 0.4% | |||||||||
Duty Free International | |||||||||
7.000%, 01/15/2004 (f) (g) (h) | 588 | — | |||||||
Galaxy Entertainment | |||||||||
9.875%, 12/15/2012 (b) (e) | 175 | 188 | |||||||
Home Depot | |||||||||
5.875%, 12/16/2036 | 270 | 236 | |||||||
Lippo Karwaci Finance | |||||||||
8.875%, 03/09/2011 | 175 | 172 | |||||||
Shimao Property Holdings | |||||||||
8.000%, 12/01/2016 (b) (e) | 205 | 200 | |||||||
Viacom | |||||||||
6.875%, 04/30/2036 | 365 | 370 | |||||||
1,166 | |||||||||
Consumer Non Cyclical – 0.6% | |||||||||
Amerisourcebergen | |||||||||
5.625%, 09/15/2012 | 500 | 501 | |||||||
Cardinal Health | |||||||||
6.750%, 02/15/2011 | 625 | 654 | |||||||
Constellation Brands | |||||||||
7.250%, 05/15/2017 (e) | 300 | 299 | |||||||
Fisher Scientific International | |||||||||
6.750%, 08/15/2014 | 220 | 225 | |||||||
Omnicare | |||||||||
6.750%, 12/15/2013 | 280 | 270 | |||||||
Sadia Overseas | |||||||||
6.875%, 05/24/2017 (b) (e) | 185 | 182 | |||||||
2,131 | |||||||||
Electric – 0.9% | |||||||||
Dynegy Holdings | |||||||||
7.750%, 06/01/2019 (e) | 305 | 286 | |||||||
Edison Mission Energy | |||||||||
7.500%, 06/15/2013 | 175 | 178 | |||||||
Energy Future Holdings | |||||||||
10.875%, 11/01/2017 (e) | 205 | 207 | |||||||
Florida Power & Light | |||||||||
5.650%, 02/01/2037 | 415 | 397 | |||||||
ISA Capital Brasil | |||||||||
8.800%, 01/30/2017 (b) (e) | 180 | 187 | |||||||
MidAmerican Energy Holdings | |||||||||
6.125%, 04/01/2036 | 465 | 460 | |||||||
Ohio Power, Series K | |||||||||
6.000%, 06/01/2016 | 275 | 280 | |||||||
Oncor Electric Delivery | |||||||||
7.000%, 05/01/2032 | 225 | 239 | |||||||
Pacific Gas & Electric | |||||||||
6.500%, 03/01/2034 | 230 | 229 | |||||||
Taqa Abu Dhabi | |||||||||
6.165%, 10/25/2017 (b) (e) | 370 | 369 | |||||||
Virginia Electric Power | |||||||||
5.950%, 09/15/2017 | 240 | 245 | |||||||
3,077 | |||||||||
Energy – 0.7% | |||||||||
Lukoil International Finance | |||||||||
6.356%, 06/07/2017 (e) | 120 | 116 | |||||||
6.656%, 06/07/2022 (b) (e) | 460 | 440 | |||||||
Mariner Energy | |||||||||
7.500%, 04/15/2013 | 270 | 263 | |||||||
Pioneer Natural Resource | |||||||||
6.650%, 03/15/2017 | 290 | 273 | |||||||
Tengizcheveroil Finance | |||||||||
6.124%, 11/15/2014 (b) (e) | 370 | 355 | |||||||
Tesoro | |||||||||
6.625%, 11/01/2015 | 375 | 372 |
The accompanying notes are an integral part of the financial statements.
112 First American Funds 2007 Annual Report
Table of Contents
Balanced Fund (continued) | ||||||||||
DESCRIPTION | PAR | VALUE | ||||||||
TNK-BP Finance | ||||||||||
6.625%, 03/20/2017 (e) | 150 | $ | 137 | |||||||
7.875%, 03/13/2018 (e) | 230 | 228 | ||||||||
Whiting Petroleum | ||||||||||
7.000%, 02/01/2014 | 295 | 290 | ||||||||
2,474 | ||||||||||
Finance – 0.5% | ||||||||||
Capital One Financial | ||||||||||
6.150%, 09/01/2016 | 400 | 391 | ||||||||
Janus Capital Group | ||||||||||
6.700%, 06/15/2017 | 305 | 315 | ||||||||
SLM, Series MTN | ||||||||||
5.400%, 10/25/2011 | 350 | 324 | ||||||||
Transcapitalinvest | ||||||||||
5.670%, 03/05/2014 (e) | 640 | 618 | ||||||||
1,648 | ||||||||||
Insurance – 0.3% | ||||||||||
Allied World Assurance | ||||||||||
7.500%, 08/01/2016 | 565 | 602 | ||||||||
Unumprovident | ||||||||||
5.997%, 05/15/2008 | 335 | 335 | ||||||||
937 | ||||||||||
Natural Gas – 0.2% | ||||||||||
Enterprise Products | ||||||||||
8.375%, 08/01/2066 | 180 | 187 | ||||||||
Southern Union | ||||||||||
7.200%, 11/01/2066 (c) | 155 | 155 | ||||||||
Transport De Gas Del Sur | ||||||||||
7.875%, 05/14/2017 (e) | 235 | 215 | ||||||||
557 | ||||||||||
Real Estate – 0.3% | ||||||||||
Health Care Properties – REIT Series MTN | ||||||||||
6.300%, 09/15/2016 | 460 | 455 | ||||||||
Prologis 2006 – REIT | ||||||||||
5.750%, 04/01/2016 | 600 | 587 | ||||||||
1,042 | ||||||||||
Sovereign – 0.1% | ||||||||||
United Mexican States | ||||||||||
5.625%, 01/15/2017 (b) | 305 | 309 | ||||||||
Technology – 0.7% | ||||||||||
Celestica | ||||||||||
7.875%, 07/01/2011 | 295 | 288 | ||||||||
Chartered Semiconductor | ||||||||||
6.375%, 08/03/2015 | 250 | 250 | ||||||||
Ciena | ||||||||||
3.750%, 02/01/2008 | 120 | 119 | ||||||||
IBM | ||||||||||
5.700%, 09/14/2017 | 335 | 340 | ||||||||
Jabil Circuit | ||||||||||
5.875%, 07/15/2010 | 680 | 687 | ||||||||
LG Electronics | ||||||||||
5.000%, 06/17/2010 (e) | 340 | 338 | ||||||||
Seagate Technology | ||||||||||
6.375%, 10/01/2011 (b) | 290 | 288 | ||||||||
2,310 | ||||||||||
Transportation – 0.1% | ||||||||||
BLT Finance | ||||||||||
7.500%, 05/15/2014 (e) | 235 | 213 | ||||||||
Ultrapetrol | ||||||||||
9.000%, 11/24/2014 | 145 | 142 | ||||||||
355 | ||||||||||
Utility Other – 0.1% | ||||||||||
American Water Capital | ||||||||||
6.085%, 10/15/2017 (e) | 260 | 262 | ||||||||
Total Corporate Bonds | ||||||||||
(Cost $22,293) | 21,618 | |||||||||
U.S. Government & Agency Securities – 5.7% | ||||||||||
U.S. Agency Debentures – 0.5% | ||||||||||
Federal National Mortgage Association | ||||||||||
5.250%, 08/01/2012 (b) | 1,745 | 1,778 | ||||||||
U.S. Treasuries – 5.2% | ||||||||||
U.S. Treasury Bond (STRIPS) | ||||||||||
0.000%, 02/15/2023 (b) (i) | 1,795 | 854 | ||||||||
U.S. Treasury Bonds | ||||||||||
6.875%, 08/15/2025 (b) | 1,600 | 1,994 | ||||||||
4.500%, 02/15/2036 (b) | 875 | 840 | ||||||||
4.750%, 02/15/2037 (b) | 1,565 | 1,564 | ||||||||
U.S. Treasury Notes | ||||||||||
4.875%, 08/31/2008 (b) | 7,500 | 7,542 | ||||||||
4.750%, 05/31/2012 (b) | 1,045 | 1,072 | ||||||||
4.625%, 07/31/2012 (b) | 1,370 | 1,398 | ||||||||
4.250%, 09/30/2012 (b) | 180 | 181 | ||||||||
4.500%, 05/15/2017 (b) | 1,815 | 1,820 | ||||||||
17,265 | ||||||||||
Total U.S. Government & Agency Securities | ||||||||||
(Cost $18,958) | 19,043 | |||||||||
Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities – 1.1% | ||||||||||
Fixed Rate – 1.1% | ||||||||||
Federal Home Loan Mortgage Corporation Series 2763, Class TA | ||||||||||
4.000%, 03/15/2011 (b) | 521 | 521 | ||||||||
Series 85, Class C | ||||||||||
8.600%, 01/15/2021 | 71 | 75 | ||||||||
Series 1136, Class H | ||||||||||
6.000%, 09/15/2021 | 51 | 51 | ||||||||
Federal National Mortgage Association Series 1989-2, Class D | ||||||||||
8.800%, 01/25/2019 | 5 | 5 | ||||||||
Series 1989-37, Class G | ||||||||||
8.000%, 07/25/2019 | 73 | 79 | ||||||||
Series 1990-30, Class E | ||||||||||
6.500%, 03/25/2020 | 30 | 31 | ||||||||
Series 1990-63, Class H | ||||||||||
9.500%, 06/25/2020 | 15 | 16 | ||||||||
Series 1990-89, Class K | ||||||||||
6.500%, 07/25/2020 | 4 | 4 | ||||||||
Series 1990-105, Class J | ||||||||||
6.500%, 09/25/2020 | 48 | 49 | ||||||||
Series 2005-44, Class PC | ||||||||||
5.000%, 11/25/2027 (b) | 1,139 | 1,135 | ||||||||
Series 2003-81, Class MB | ||||||||||
5.000%, 05/25/2029 (b) | 960 | 957 | ||||||||
Series 2005-62, Class JE | ||||||||||
5.000%, 06/25/2035 (b) | 729 | 722 |
First American Funds 2007 Annual Report 113
Table of Contents
Schedule of Investments October 31, 2007, all dollars are rounded to thousands (000)
Balanced Fund (continued) | |||||||||
DESCRIPTION | PAR/CONTRACTS/SHARES | VALUE | |||||||
Government National Mortgage Association Series 3, Class F | |||||||||
6.500%, 06/17/2020 | 6 | $ | 6 | ||||||
Total Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities | |||||||||
(Cost $3,630) | 3,651 | ||||||||
Options Purchased – 0.0% | |||||||||
Call Options Purchased – 0.0% | |||||||||
U.S. Treasury 5 Year Note Futures, December 2007 Futures Call | |||||||||
Expires 11/21/2007 | |||||||||
Exercise Price: $109.00 | 71 | 3 | |||||||
U.S. Treasury 10 Year Note Futures, December 2007 Futures Call | |||||||||
Expires 11/21/2007 | |||||||||
Exercise Price: $110.50 | 41 | 15 | |||||||
Total Purchased Options | |||||||||
(Cost $38) | 18 | ||||||||
Short-Term Investments – 2.2% | |||||||||
Money Market Fund – 2.0% | |||||||||
First American Prime Obligations Fund, Class Z (j) | 6,843,786 | 6,844 | |||||||
U.S. Treasury Obligations – 0.2% | |||||||||
U.S. Treasury Bills (k) | |||||||||
3.780%, 12/20/2007 | $ | 300 | 298 | ||||||
3.813%, 01/24/2008 | 250 | 248 | |||||||
546 | |||||||||
Total Short-Term Investments | |||||||||
(Cost $7,390) | 7,390 | ||||||||
Investment Purchased with Proceeds from Securities Lending – 29.6% | |||||||||
Mount Vernon Securities Lending Prime Portfolio (l) | |||||||||
(Cost $99,020) | 99,019,548 | 99,020 | |||||||
Total Investments – 130.2% | |||||||||
(Cost $408,391) | 435,175 | ||||||||
Other Assets and Liabilities, Net – (30.2)% | (100,877 | ) | |||||||
Total Net Assets – 100.0% | $ | 334,298 | |||||||
(a) | Non-Income Producing security. |
(b) | This security or a portion of this security is out on loan at October 31, 2007. Total loaned securities had a value of $96,757 at October 31, 2007. See note 2 in Notes to Financial Statements. |
(c) | Variable Rate Security – The rate shown is the rate in effect at October 31, 2007. |
(d) | Security purchased on a when-issued basis. On October 31, 2007, the total cost of investments purchased on a when-issued basis was $1,273 or 0.4% of total net assets. See note 2 in Notes to Financial Statements. |
(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 the guidelines established by the fund’s board of directors. As of October 31, 2007, the value of these investments was $11,346 or 3.4% of total net assets. See note 2 in Notes to Financial Statements. |
(f) | Security is illiquid. As of October 31, 2007, the value of these investments was $1 or 0.0% of total net assets. See note 2 in Notes to Financial Statements. |
(g) | Security is fair valued. As of October 31, 2007, the fair value of this investment was $0 or 0.0% of total net assets. See note 2 in Notes to Financial Statements. |
(h) | Security is in default at October 31, 2007. |
(i) | Principal Only. |
(j) | 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. |
(k) | Security has been deposited as initial margin on open futures contracts and swap agreements. Yield shown is effective yield as of October 31, 2007. See note 2 in Notes to Financial Statements. |
(l) | The fund may loan securities representing up to one third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks, or other institutional borrowers of securities. The fund maintains collateral equal to at least 100% of the value of the securities loaned. The adequacy of the collateral is monitored on a daily basis. The cash collateral received by the fund is invested in this affiliated money market fund. See note 2 in Notes to Financial Statements. |
REIT – | Real Estate Investment Trust |
STRIPS – | Separate Trading of Registered Interest and Principal Securities |
Schedule of Open Futures Contracts
Number of | ||||||||||||||
Contracts | Notional | Unrealized | ||||||||||||
Purchased | Contract | Settlement | Appreciation | |||||||||||
Description | (Sold) | Value | Month | (Depreciation) | ||||||||||
Australian Dollar Currency Futures | 8 | $ | 745 | December 2007 | $ | 31 | ||||||||
Canadian Dollar Currency Futures | 13 | 1,374 | December 2007 | 38 | ||||||||||
Euro Currency Futures | 19 | 3,446 | December 2007 | 57 | ||||||||||
Eurodollar 90 Day Futures | 29 | 27,730 | June 2008 | 25 | ||||||||||
Japanese Yen Currency Futures | 13 | 1,416 | December 2007 | 18 | ||||||||||
Long Gilt Futures | 14 | 3,124 | December 2007 | (20 | ) | |||||||||
Swiss Franc Currency Futures | 35 | 3,794 | December 2007 | 57 | ||||||||||
U.S. Treasury 2 Year Note Futures | (213) | (44,114 | ) | December 2007 | (58 | ) | ||||||||
U.S. Treasury 5 Year Note Futures | 222 | 23,830 | December 2007 | 187 | ||||||||||
U.S. Treasury 10 Year Note Futures | 29 | 3,190 | December 2007 | 38 | ||||||||||
U.S. Treasury Long Bond Futures | 4 | 450 | December 2007 | 9 | ||||||||||
$ | 382 | |||||||||||||
The accompanying notes are an integral part of the financial statements.
114 First American Funds 2007 Annual Report
Table of Contents
Balanced Fund (concluded)
Credit Default Swap Agreements
Pay/ | Unrealized | |||||||||||||||||||||
Reference | Buy/Sell | Receive | Expiration | Notional | Appreciation | |||||||||||||||||
Counterparty | Entity | Protection | Fixed Rate | Date | Amount | (Depreciation) | ||||||||||||||||
Citigroup | Constellation Energy Group, Inc. | Buy | 0.240% | 06/20/2012 | $ | 375 | $ | 3 | ||||||||||||||
Citigroup | Lehman Brothers Holdings | Buy | 1.250% | 12/20/2012 | 720 | (8 | ) | |||||||||||||||
Citigroup | Ryland Group | Buy | 1.250% | 09/20/2012 | 350 | 16 | ||||||||||||||||
Deutsche Bank | Dow Jones CDX HVOL8 Index | Buy | 0.750% | 06/20/2012 | 1,300 | 45 | ||||||||||||||||
Deutsche Bank | Dow Jones CDX IG8 Index | Buy | 0.350% | 06/20/2012 | 1,500 | (3 | ) | |||||||||||||||
Deutsche Bank | Dow Jones CDX XO8 Index | Buy | 1.400% | 06/20/2012 | 2,300 | 49 | ||||||||||||||||
J.P. Morgan | CenturyTel, Inc. | Buy | 0.540% | 09/20/2012 | 575 | (2 | ) | |||||||||||||||
J.P. Morgan | Dow Jones CDX EM8 Index | Buy | 1.750% | 12/20/2012 | 1,100 | (1 | ) | |||||||||||||||
J.P. Morgan | Dow Jones CDX HVOL8 Index | Buy | 0.750% | 06/20/2012 | 1,100 | 41 | ||||||||||||||||
J.P. Morgan | Dow Jones CDX HY8 Index | Buy | 2.750% | 06/20/2012 | 1,600 | 55 | ||||||||||||||||
J.P. Morgan | Dow Jones CDX XO9 Index | Buy | 2.450% | 12/20/2012 | 1,600 | 6 | ||||||||||||||||
J.P. Morgan | Deutsche Bank AG | Buy | 0.525% | 09/20/2012 | 600 | (2 | ) | |||||||||||||||
J.P. Morgan | Philippine Government International Bond | Buy | 2.000% | 09/20/2012 | 1,300 | (36 | ) | |||||||||||||||
J.P. Morgan | Sara Lee Corporation | Buy | 0.500% | 06/12/2012 | 500 | (5 | ) | |||||||||||||||
J.P. Morgan | UBS AG | Buy | 0.355% | 09/20/2012 | 700 | 1 | ||||||||||||||||
UBS | Amerisourcebergen Corporation | Buy | 0.585% | 09/20/2012 | 500 | (2 | ) | |||||||||||||||
UBS | Brazilian Government International Bond | Buy | 1.170% | 08/20/2012 | 1,300 | (22 | ) | |||||||||||||||
UBS | Cardinal Health, Inc. | Buy | 0.320% | 09/20/2012 | 500 | (1 | ) | |||||||||||||||
UBS | Constellation Energy Group, Inc. | Buy | 0.230% | 06/20/2012 | 375 | 3 | ||||||||||||||||
UBS | Dow Jones CDX EM8 Index | Buy | 1.750% | 12/20/2012 | 1,000 | (1 | ) | |||||||||||||||
UBS | Dow Jones CDX HY8 Index | Buy | 2.750% | 06/20/2012 | 3,800 | 54 | ||||||||||||||||
UBS | McKesson Corporation | Buy | 0.385% | 09/20/2012 | 500 | (3 | ) | |||||||||||||||
UBS | Turkey Government International Bond | Buy | 1.480% | 07/20/2012 | 700 | 2 | ||||||||||||||||
UBS | Whirlpool Corporation | Buy | 0.785% | 09/20/2017 | 350 | (2 | ) | |||||||||||||||
$ | 187 | |||||||||||||||||||||
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 | 5.470% | 06/12/2009 | $ | 9,000 | $ | 117 | ||||||||||||||||
Citigroup | 3-Month LIBOR | Pay | 4.718% | 09/14/2009 | 11,000 | 20 | ||||||||||||||||||
Citigroup | 3-Month LIBOR | Pay | 4.625% | 09/20/2009 | 7,000 | 2 | ||||||||||||||||||
Citigroup | 3-Month LIBOR | Receive | 5.060% | 09/14/2017 | 3,000 | 11 | ||||||||||||||||||
Citigroup | 3-Month LIBOR | Receive | 5.110% | 09/20/2017 | 2,000 | — | ||||||||||||||||||
J.P. Morgan | 3-Month LIBOR | Pay | 5.447% | 06/20/2009 | 11,000 | 142 | ||||||||||||||||||
UBS | 3-Month LIBOR | Pay | 4.568% | 10/02/2009 | 7,100 | (2 | ) | |||||||||||||||||
UBS | 3-Month LIBOR | Pay | 4.838% | 10/12/2009 | 11,000 | 50 | ||||||||||||||||||
UBS | 3-Month LIBOR | Receive | 5.153% | 10/02/2017 | 1,900 | (7 | ) | |||||||||||||||||
UBS | 3-Month LIBOR | Receive | 5.270% | 10/12/2017 | 3,000 | (38 | ) | |||||||||||||||||
$ | 295 | |||||||||||||||||||||||
Schedule of Open Written Call Options
Exercise | Premium | Expiration | Number of | |||||||||||||||||
Option | Price | Received | Date | Contracts | Value | |||||||||||||||
U.S. Treasury 10 Year Note Futures – December 2007 | $ | 112.00 | $ | 10 | 11/21/2007 | 41 | $ | 3 | ||||||||||||
First American Funds 2007 Annual Report 115
Table of Contents
Schedule of Investments October 31, 2007, all dollars are rounded to thousands (000)
Equity Income Fund | |||||||||
DESCRIPTION | SHARES | VALUE | |||||||
Common Stocks – 99.0% | |||||||||
Consumer Discretionary – 4.2% | |||||||||
McDonald’s | 360,427 | $ | 21,518 | ||||||
Time Warner | 786,059 | 14,353 | |||||||
Yum! Brands | 430,892 | 17,352 | |||||||
53,223 | |||||||||
Consumer Staples – 11.3% | |||||||||
Altria Group (a) | 336,922 | 24,572 | |||||||
Avon Products (a) | 222,726 | 9,127 | |||||||
Coca-Cola | 287,969 | 17,785 | |||||||
General Mills | 300,087 | 17,324 | |||||||
Kraft Foods, Class A | 233,158 | 7,790 | |||||||
PepsiCo | 208,125 | 15,343 | |||||||
Procter & Gamble | 479,604 | 33,342 | |||||||
Wal-Mart Stores (a) | 406,542 | 18,380 | |||||||
143,663 | |||||||||
Energy – 14.3% | |||||||||
BP, ADR | 567,791 | �� | 44,282 | ||||||
Chevron (a) | 357,297 | 32,696 | |||||||
ConocoPhillips | 433,858 | 36,861 | |||||||
Exterran Partners (a) | 188,672 | 5,717 | |||||||
Exxon Mobil (a) | 531,049 | 48,851 | |||||||
Halliburton | 322,919 | 12,729 | |||||||
181,136 | |||||||||
Financials – 19.7% | |||||||||
AllianceBernstein Holding | 379,959 | 32,460 | |||||||
Ambac Financial Group | 250,110 | 9,212 | |||||||
American International Group (a) | 371,926 | 23,476 | |||||||
Bank of America | 867,969 | 41,905 | |||||||
BlackRock (a) | 91,028 | 18,838 | |||||||
Citigroup | 732,432 | 30,689 | |||||||
Goldman Sachs Group (a) | 82,795 | 20,525 | |||||||
ICICI Bank, ADR | 333,383 | 23,150 | |||||||
Merrill Lynch | 75,982 | 5,016 | |||||||
Northern Trust | 156,946 | 11,804 | |||||||
Wachovia (a) | 575,411 | 26,314 | |||||||
Wells Fargo | 181,442 | 6,171 | |||||||
249,560 | |||||||||
Healthcare – 8.9% | |||||||||
Abbott Laboratories | 524,406 | 28,643 | |||||||
Eli Lilly (a) | 243,354 | 13,178 | |||||||
Johnson & Johnson | 443,382 | 28,895 | |||||||
Pfizer | 540,137 | 13,293 | |||||||
Wyeth Pharmaceuticals | 596,109 | 28,989 | |||||||
112,998 | |||||||||
Industrials – 12.2% | |||||||||
3M | 165,929 | 14,330 | |||||||
Avery Dennison (a) | 150,912 | 8,738 | |||||||
Emerson Electric (a) | 456,801 | 23,877 | |||||||
General Dynamics | 182,224 | 16,575 | |||||||
General Electric | 1,071,201 | 44,091 | |||||||
Honeywell International (a) | 514,110 | 31,057 | |||||||
United Parcel Service, Class B (a) | 222,613 | 16,718 | |||||||
155,386 | |||||||||
Information Technology – 13.9% | |||||||||
Hewlett-Packard | 583,554 | 30,158 | |||||||
IBM | 250,601 | 29,100 | |||||||
Intel | 1,369,113 | 36,829 | |||||||
Maxim Integrated Products | 437,263 | 11,850 | |||||||
Microsoft | 1,089,879 | 40,118 | |||||||
QUALCOMM | 392,933 | 16,790 | |||||||
Texas Instruments | 348,009 | 11,345 | |||||||
176,190 | |||||||||
Materials – 3.6% | |||||||||
E.I. Du Pont de Nemours | 466,652 | 23,104 | |||||||
Praxair | 260,064 | 22,230 | |||||||
45,334 | |||||||||
Telecommunication Services – 9.2% | |||||||||
AT&T | 1,139,761 | 47,631 | |||||||
FairPoint Communications (a) | 756,265 | 13,983 | |||||||
Verizon Communications (a) | 652,847 | 30,077 | |||||||
Vodafone Group, ADR (a) | 499,120 | 19,600 | |||||||
Windstream (a) | 361,216 | 4,858 | |||||||
116,149 | |||||||||
Utilities – 1.7% | |||||||||
Duke Energy (a) | 531,490 | 10,189 | |||||||
Xcel Energy (a) | 518,402 | 11,690 | |||||||
21,879 | |||||||||
Total Common Stocks | |||||||||
(Cost $829,329) | 1,255,518 | ||||||||
Convertible Corporate Bond – 0.4% | |||||||||
Invitrogen 2.000%, 08/01/2023 | |||||||||
(Cost $3,443) | $ | 3,095 | 4,349 | ||||||
Short-Term Investment – 0.8% | |||||||||
First American Prime Obligations Fund, Class Z (b) | |||||||||
(Cost $9,948) | 9,947,948 | 9,948 | |||||||
Investment Purchased with Proceeds from Securities Lending – 10.4% | |||||||||
Mount Vernon Securities Lending Prime Portfolio (c) | |||||||||
(Cost $131,981) | 131,980,563 | 131,981 | |||||||
Total Investments – 110.6% | |||||||||
(Cost $974,701) | 1,401,796 | ||||||||
Other Assets and Liabilities, Net – (10.6)% | (133,910 | ) | |||||||
Total Net Assets – 100.0% | $ | 1,267,886 | |||||||
(a) | This security or a portion of this security is out on loan at October 31, 2007. Total loaned securities had a value of $130,336 at October 31, 2007. See note 2 in Notes to Financial Statements. |
(b) | 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. |
(c) | The fund may loan securities representing up to one third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks, or other institutional borrowers of securities. The fund maintains collateral equal to at least 100% of the value of the securities loaned. The adequacy of the collateral is monitored on a daily basis. The cash collateral received by the fund is invested in this affiliated money market fund. See note 2 in Notes to Financial Statements. |
ADR – | American Depository Receipt |
The accompanying notes are an integral part of the financial statements.
116 First American Funds 2007 Annual Report
Table of Contents
Statements of Assets and Liabilities October 31, 2007, all dollars and shares are rounded to thousands (000), except per share data
Balanced | Equity | ||||||||||
Fund | Income Fund | ||||||||||
Investments in unaffiliated securities, at cost | $ | 302,527 | $ | 832,772 | |||||||
Investment in affiliated money market fund, at cost | 6,844 | 9,948 | |||||||||
Affiliated investment purchased with proceeds from securities lending, at cost (note 2) | 99,020 | 131,981 | |||||||||
Premiums received on options written, at cost (note 6) | 10 | — | |||||||||
Cash denominated in foreign currencies, at cost | 13 | — | |||||||||
ASSETS: | |||||||||||
Investments in unaffiliated securities, at value* (note 2) | $ | 329,311 | $ | 1,259,867 | |||||||
Investment in affiliated money market fund, at value (note 2) | 6,844 | 9,948 | |||||||||
Affiliated investment purchased with proceeds from securities lending, at value (note 2) | 99,020 | 131,981 | |||||||||
Cash denominated in foreign currencies, at value | 14 | — | |||||||||
Receivable for dividends and interest | 1,374 | 1,640 | |||||||||
Receivable for investment securities sold | 1,127 | — | |||||||||
Receivable for capital shares sold | 71 | 124 | |||||||||
Receivable for swap contracts | 609 | — | |||||||||
Prepaid expenses and other assets | 38 | 38 | |||||||||
Total assets | 438,408 | 1,403,598 | |||||||||
LIABILITIES: | |||||||||||
Liabilities for options written, at value | 3 | — | |||||||||
Bank overdraft | 941 | — | |||||||||
Payable for investment securities purchased | 1,234 | — | |||||||||
Payable for investment securities purchased on a when-issued basis | 1,273 | — | |||||||||
Payable upon return of securities loaned (note 2) | 99,020 | 131,981 | |||||||||
Payable for capital shares redeemed | 1,269 | 2,672 | |||||||||
Payable for variation margin | 87 | — | |||||||||
Payable to affiliates (note 3) | 246 | 978 | |||||||||
Payable for distribution and shareholder servicing fees | 31 | 61 | |||||||||
Accrued expenses and other liabilities | 6 | 20 | |||||||||
Total liabilities | 104,110 | 135,712 | |||||||||
Net assets | $ | 334,298 | $ | 1,267,886 | |||||||
COMPOSITION OF NET ASSETS: | |||||||||||
Portfolio capital | $ | 274,895 | $ | 760,617 | |||||||
Undistributed (distributions in excess of) net investment income | 768 | (490 | ) | ||||||||
Accumulated net realized gain on investments | 30,979 | 80,664 | |||||||||
Net unrealized appreciation of investments | 26,784 | 427,095 | |||||||||
Net unrealized appreciation of futures contracts | 382 | — | |||||||||
Net unrealized appreciation of forward foreign currency contracts, foreign currency, and translation of other assets and liabilities denominated in foreign currency (note 2) | 1 | — | |||||||||
Net unrealized appreciation on options written | 7 | — | |||||||||
Net unrealized appreciation of swap agreements | 482 | — | |||||||||
Net assets | $ | 334,298 | $ | 1,267,886 | |||||||
* Including securities loaned, at value | $ | 96,757 | $ | 130,336 | |||||||
Class A: | |||||||||||
Net assets | $ | 103,818 | $ | 179,379 | |||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 8,347 | 10,921 | |||||||||
Net asset value and redemption price per share | $ | 12.44 | $ | 16.43 | |||||||
Maximum offering price per share1 | $ | 13.16 | $ | 17.39 | |||||||
Class B: | |||||||||||
Net assets | $ | 8,212 | $ | 16,893 | |||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 665 | 1,041 | |||||||||
Net asset value, offering price, and redemption price per share2 | $ | 12.34 | $ | 16.23 | |||||||
Class C: | |||||||||||
Net assets | $ | 2,785 | $ | 9,241 | |||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 224 | 568 | |||||||||
Net asset value, offering price, and redemption price per share2 | $ | 12.42 | $ | 16.26 | |||||||
Class R: | |||||||||||
Net assets | $ | 33 | $ | 940 | |||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 3 | 57 | |||||||||
Net asset value, offering price, and redemption price per share | $ | 12.54 | $ | 16.41 | |||||||
Class Y: | |||||||||||
Net assets | $ | 219,450 | $ | 1,061,433 | |||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 17,593 | 64,131 | |||||||||
Net asset value, offering price, and redemption price per share | $ | 12.47 | $ | 16.55 | |||||||
1 | The offering price is calculated by dividing the net asset value by 1 minus the maximum sales charge of 5.50%. | |
2 | Class B and C have a contingent deferred sales charge. For a description of this sales charge, see notes 1 and 3 in Notes to Financial Statements. |
First American Funds 2007 Annual Report 117
Table of Contents
Statements of Operations For the year ended October 31, 2007, all dollars are rounded to thousands (000)
Balanced | Equity | |||||||||
Fund | Income Fund | |||||||||
INVESTMENT INCOME: | ||||||||||
Interest from unaffiliated securities | $ | 6,778 | $ | 125 | ||||||
Dividends from unaffiliated securities | 2,890 | 37,895 | ||||||||
Dividends from affiliated money market fund | 382 | 729 | ||||||||
Less: Foreign taxes withheld | (20 | ) | (32 | ) | ||||||
Securities lending income | 203 | 272 | ||||||||
Total investment income | 10,233 | 38,989 | ||||||||
EXPENSES (note 3): | ||||||||||
Investment advisory fees | 2,301 | 8,440 | ||||||||
Administration fees | 811 | 2,890 | ||||||||
Transfer agent fees | 211 | 292 | ||||||||
Custodian fees | 18 | 66 | ||||||||
Professional fees | 45 | 42 | ||||||||
Registration fees | 50 | 51 | ||||||||
Postage and printing fees | 20 | 50 | ||||||||
Directors’ fees | 22 | 19 | ||||||||
Other expenses | 21 | 20 | ||||||||
Distribution and shareholder servicing fees – Class A | 263 | 436 | ||||||||
Distribution and shareholder servicing fees – Class B | 105 | 183 | ||||||||
Distribution and shareholder servicing fees – Class C | 27 | 99 | ||||||||
Distribution and shareholder servicing fees – Class R | — | 3 | ||||||||
Total expenses | 3,894 | 12,591 | ||||||||
Less: Fee waivers (note 3) | (495 | ) | (13 | ) | ||||||
Less: Indirect payments from custodian (note 3) | (4 | ) | (1 | ) | ||||||
Total net expenses | 3,395 | 12,577 | ||||||||
Investment income – net | 6,838 | 26,412 | ||||||||
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS, FUTURES CONTRACTS, OPTIONS WRITTEN, FOREIGN CURRENCY TRANSACTIONS, AND SWAP AGREEMENTS – NET (note 5): | ||||||||||
Net realized gain on investments | 36,857 | 91,683 | ||||||||
Net realized loss on futures contracts | (712 | ) | — | |||||||
Net realized loss on options written | (163 | ) | — | |||||||
Net realized gain on swap agreements | 916 | — | ||||||||
Net realized gain on forward foreign currency contracts, foreign currency, and translation of other assets and liabilities denominated in foreign currency (note 2) | 2 | — | ||||||||
Net change in unrealized appreciation or depreciation of investments | (7,616 | ) | 69,097 | |||||||
Net change in unrealized appreciation or depreciation of futures contracts | 317 | — | ||||||||
Net change in unrealized appreciation or depreciation of options written | 7 | — | ||||||||
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 (note 2) | 1 | — | ||||||||
Net change in unrealized appreciation or depreciation of swap agreements | 478 | — | ||||||||
Net gain on investments, futures contracts, options written, foreign currency transactions, and swap agreements | 30,087 | 160,780 | ||||||||
Net increase in net assets resulting from operations | $ | 36,925 | $ | 187,192 | ||||||
The accompanying notes are an integral part of the financial statements.
118 First American Funds 2007 Annual Report
Table of Contents
Statements of Changes in Net Assets all dollars are rounded to thousands (000)
Balanced | Equity | ||||||||||||||||||||
Fund | Income Fund | ||||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||||
10/31/07 | 10/31/06 | 10/31/07 | 10/31/06 | ||||||||||||||||||
OPERATIONS: | |||||||||||||||||||||
Investment income – net | $ | 6,838 | $ | 6,826 | $ | 26,412 | $ | 21,407 | |||||||||||||
Net realized gain on investments | 36,857 | 26,905 | 91,683 | 141,083 | |||||||||||||||||
Net realized gain (loss) on futures contracts | (712 | ) | 115 | — | — | ||||||||||||||||
Net realized loss on options written | (163 | ) | — | — | — | ||||||||||||||||
Net realized gain on swap agreements | 916 | 128 | — | — | |||||||||||||||||
Net realized gain on forward foreign currency contracts, foreign currency, and translation of other assets and liabilities denominated in foreign currency (note 2) | 2 | — | — | — | |||||||||||||||||
Net change in unrealized appreciation or depreciation of investments | (7,616 | ) | 5,427 | 69,097 | 68,753 | ||||||||||||||||
Net change in unrealized appreciation or depreciation of futures contracts | 317 | (32 | ) | — | — | ||||||||||||||||
Net change in unrealized appreciation or depreciation of options written | 7 | — | — | — | |||||||||||||||||
Net change in unrealized appreciation of forward foreign currency contracts, foreign currency, and translation of other assets and liabilities denominated in foreign currency (note 2) | 1 | — | — | — | |||||||||||||||||
Net change in unrealized appreciation or depreciation of swap agreements | 478 | 43 | — | — | |||||||||||||||||
Net increase in net assets resulting from operations | 36,925 | 39,412 | 187,192 | 231,243 | |||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||||||||||||
Investment income – net: | |||||||||||||||||||||
Class A | (1,878 | ) | (1,852 | ) | (3,199 | ) | (2,470 | ) | |||||||||||||
Class B | (104 | ) | (146 | ) | (238 | ) | (183 | ) | |||||||||||||
Class C | (29 | ) | (23 | ) | (128 | ) | (119 | ) | |||||||||||||
Class R | — | — | (10 | ) | (6 | ) | |||||||||||||||
Class Y | (4,784 | ) | (4,891 | ) | (22,721 | ) | (19,051 | ) | |||||||||||||
Net realized gain on investments: | |||||||||||||||||||||
Class A | (7,413 | ) | — | (15,114 | ) | (975 | ) | ||||||||||||||
Class B | (926 | ) | — | (1,748 | ) | (119 | ) | ||||||||||||||
Class C | (207 | ) | — | (982 | ) | (83 | ) | ||||||||||||||
Class R | (2 | ) | — | (47 | ) | (2 | ) | ||||||||||||||
Class Y | (17,359 | ) | — | (99,232 | ) | (6,504 | ) | ||||||||||||||
Total distributions | (32,702 | ) | (6,912 | ) | (143,419 | ) | (29,512 | ) | |||||||||||||
CAPITAL SHARE TRANSACTIONS (note 4) : | |||||||||||||||||||||
Class A: | |||||||||||||||||||||
Proceeds from sales | 7,514 | 10,315 | 14,413 | 12,754 | |||||||||||||||||
Reinvestment of distributions | 9,001 | 1,798 | 17,020 | 3,190 | |||||||||||||||||
Payments for redemptions | (20,902 | ) | (27,468 | ) | (30,354 | ) | (41,866 | ) | |||||||||||||
Increase (decrease) in net assets from Class A transactions | (4,387 | ) | (15,355 | ) | 1,079 | (25,922 | ) | ||||||||||||||
Class B: | |||||||||||||||||||||
Proceeds from sales | 299 | 406 | 1,217 | 971 | |||||||||||||||||
Reinvestment of distributions | 992 | 138 | 1,875 | 285 | |||||||||||||||||
Payments for redemptions (note 3) | (6,855 | ) | (7,579 | ) | (6,493 | ) | (5,425 | ) | |||||||||||||
Decrease in net assets from Class B transactions | (5,564 | ) | (7,035 | ) | (3,401 | ) | (4,169 | ) | |||||||||||||
Class C: | |||||||||||||||||||||
Proceeds from sales | 411 | 518 | 788 | 918 | |||||||||||||||||
Reinvestment of distributions | 225 | 23 | 1,026 | 199 | |||||||||||||||||
Payments for redemptions (note 3) | (912 | ) | (2,678 | ) | (4,021 | ) | (7,112 | ) | |||||||||||||
Decrease in net assets from Class C transactions | (276 | ) | (2,137 | ) | (2,207 | ) | (5,995 | ) | |||||||||||||
Class R: | |||||||||||||||||||||
Proceeds from sales | 27 | 31 | 613 | 113 | |||||||||||||||||
Reinvestment of distributions | 2 | — | 56 | 8 | |||||||||||||||||
Payments for redemptions | (19 | ) | (11 | ) | (287 | ) | (100 | ) | |||||||||||||
Increase in net assets from Class R transactions | 10 | 20 | 382 | 21 | |||||||||||||||||
Class Y: | |||||||||||||||||||||
Proceeds from sales | 23,664 | 39,369 | 80,545 | 79,417 | |||||||||||||||||
Reinvestment of distributions | 21,029 | 4,616 | 56,726 | 9,238 | |||||||||||||||||
Payments for redemptions | (75,193 | ) | (72,474 | ) | (242,377 | ) | (298,954 | ) | |||||||||||||
Decrease in net assets from Class Y transactions | (30,500 | ) | (28,489 | ) | (105,106 | ) | (210,299 | ) | |||||||||||||
Decrease in net assets from capital share transactions | (40,717 | ) | (52,996 | ) | (109,253 | ) | (246,364 | ) | |||||||||||||
Total decrease in net assets | (36,494 | ) | (20,496 | ) | (65,480 | ) | (44,633 | ) | |||||||||||||
Net assets at beginning of year | 370,792 | 391,288 | 1,333,366 | 1,377,999 | |||||||||||||||||
Net assets at end of year | $ | 334,298 | $ | 370,792 | $ | 1,267,886 | $ | 1,333,366 | |||||||||||||
Undistributed (distributions in excess of) net investment income at end of year | $ | 768 | $ | 680 | $ | (490 | ) | $ | — | ||||||||||||
First American Funds 2007 Annual Report 119
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 | ||||||||||||||||||||||||||||
Balanced Fund | |||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||
20071,2 | $ | 12.27 | $ | 0.22 | $ | 1.04 | $ | (0.21 | ) | $ | (0.88 | ) | $ | 12.44 | |||||||||||||||||||
20061,2 | 11.27 | 0.20 | 1.00 | (0.20 | ) | — | 12.27 | ||||||||||||||||||||||||||
20052,3 | 11.43 | 0.01 | (0.17 | ) | — | — | 11.27 | ||||||||||||||||||||||||||
20052,4 | 10.12 | 0.15 | 1.31 | (0.15 | ) | — | 11.43 | ||||||||||||||||||||||||||
20042,4 | 9.47 | 0.13 | 0.66 | (0.14 | ) | — | 10.12 | ||||||||||||||||||||||||||
20034 | 8.38 | 0.17 | 1.08 | (0.16 | ) | — | 9.47 | ||||||||||||||||||||||||||
Class B | |||||||||||||||||||||||||||||||||
20071,2 | $ | 12.18 | $ | 0.13 | $ | 1.03 | $ | (0.12 | ) | $ | (0.88 | ) | $ | 12.34 | |||||||||||||||||||
20061,2 | 11.18 | 0.11 | 1.00 | (0.11 | ) | — | 12.18 | ||||||||||||||||||||||||||
20052,3 | 11.34 | — | (0.16 | ) | — | — | 11.18 | ||||||||||||||||||||||||||
20052,4 | 10.04 | 0.07 | 1.30 | (0.07 | ) | — | 11.34 | ||||||||||||||||||||||||||
20042,4 | 9.41 | 0.05 | 0.65 | (0.07 | ) | — | 10.04 | ||||||||||||||||||||||||||
20034 | 8.32 | 0.10 | 1.08 | (0.09 | ) | — | 9.41 | ||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||
20071,2 | $ | 12.25 | $ | 0.13 | $ | 1.04 | $ | (0.12 | ) | $ | (0.88 | ) | $ | 12.42 | |||||||||||||||||||
20061,2 | 11.22 | 0.11 | 0.99 | (0.07 | ) | — | 12.25 | ||||||||||||||||||||||||||
20052,3 | 11.38 | — | (0.16 | ) | — | — | 11.22 | ||||||||||||||||||||||||||
20052,4 | 10.08 | 0.07 | 1.30 | (0.07 | ) | — | 11.38 | ||||||||||||||||||||||||||
20042,4 | 9.44 | 0.05 | 0.66 | (0.07 | ) | — | 10.08 | ||||||||||||||||||||||||||
20034 | 8.35 | 0.09 | 1.10 | (0.10 | ) | — | 9.44 | ||||||||||||||||||||||||||
Class R 5 | |||||||||||||||||||||||||||||||||
20071,2 | $ | 12.35 | $ | 0.19 | $ | 1.07 | $ | (0.19 | ) | $ | (0.88 | ) | $ | 12.54 | |||||||||||||||||||
20061,2 | 11.29 | 0.17 | 1.01 | (0.12 | ) | — | 12.35 | ||||||||||||||||||||||||||
20052,3 | 11.45 | 0.01 | (0.17 | ) | — | — | 11.29 | ||||||||||||||||||||||||||
20052,4 | 10.14 | 0.11 | 1.32 | (0.12 | ) | — | 11.45 | ||||||||||||||||||||||||||
20042,4 | 9.49 | 0.14 | 0.64 | (0.13 | ) | — | 10.14 | ||||||||||||||||||||||||||
20034 | 8.39 | 0.15 | 1.10 | (0.15 | ) | — | 9.49 | ||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||
20071,2 | $ | 12.30 | $ | 0.25 | $ | 1.04 | $ | (0.24 | ) | $ | (0.88 | ) | $ | 12.47 | |||||||||||||||||||
20061,2 | 11.31 | 0.23 | 0.99 | (0.23 | ) | — | 12.30 | ||||||||||||||||||||||||||
20052,3 | 11.46 | 0.01 | (0.16 | ) | — | — | 11.31 | ||||||||||||||||||||||||||
20052,4 | 10.15 | 0.17 | 1.32 | (0.18 | ) | — | 11.46 | ||||||||||||||||||||||||||
20042,4 | 9.50 | 0.16 | 0.66 | (0.17 | ) | — | 10.15 | ||||||||||||||||||||||||||
20034 | 8.40 | 0.19 | 1.09 | (0.18 | ) | — | 9.50 | ||||||||||||||||||||||||||
1 | For the period November 1 to October 31 in the year indicated. | |
2 | Per share data calculated using average shares outstanding method. | |
3 | For the period October 1, 2005 to October 31, 2005. Effective October 1, 2005, the fund’s fiscal year end was changed from September 30 to October 31. All ratios for the period have been annualized, except total return and portfolio turnover. | |
4 | For the period October 1 to September 30 in year indicated. | |
5 | Prior to July 1, 2004, Class R shares were named Class S shares. | |
6 | Total return does not include sales charges. Total return would have been lower had certain expenses not been waived. |
The accompanying notes are an integral part of the financial statements.
120 First American Funds 2007 Annual Report
Table of Contents
Ratio of Net | |||||||||||||||||||||||||||||||||||||
Ratio of | Investment | ||||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses to | Income to | |||||||||||||||||||||||||||||||||||
Ratio of | Investment | Average | Average | ||||||||||||||||||||||||||||||||||
Net Assets | Expenses to | Income | Net Assets | Net Assets | Portfolio | ||||||||||||||||||||||||||||||||
Total | End of | Average | to Average | (Excluding | (Excluding | Turnover | |||||||||||||||||||||||||||||||
Return6 | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | |||||||||||||||||||||||||||||||
10.97 | % | $ | 103,818 | 1.10 | % | 1.79 | % | 1.24 | % | 1.65 | % | 144 | % | ||||||||||||||||||||||||
10.73 | 106,565 | 1.10 | 1.67 | 1.23 | 1.54 | 143 | |||||||||||||||||||||||||||||||
(1.40 | ) | 112,557 | 1.10 | 0.90 | 1.21 | 0.79 | 12 | ||||||||||||||||||||||||||||||
14.51 | 114,388 | 1.06 | 1.35 | 1.21 | 1.20 | 147 | |||||||||||||||||||||||||||||||
8.39 | 119,292 | 1.05 | 1.27 | 1.19 | 1.13 | 110 | |||||||||||||||||||||||||||||||
14.98 | 98,016 | 1.05 | 1.75 | 1.23 | 1.57 | 156 | |||||||||||||||||||||||||||||||
10.08 | % | $ | 8,212 | 1.85 | % | 1.06 | % | 1.99 | % | 0.92 | % | 144 | % | ||||||||||||||||||||||||
9.93 | 13,809 | 1.85 | 0.92 | 1.98 | 0.79 | 143 | |||||||||||||||||||||||||||||||
(1.41 | ) | 19,409 | 1.85 | 0.15 | 1.96 | 0.04 | 12 | ||||||||||||||||||||||||||||||
13.64 | 20,657 | 1.81 | 0.60 | 1.96 | 0.45 | 147 | |||||||||||||||||||||||||||||||
7.46 | 28,101 | 1.80 | 0.54 | 1.94 | 0.40 | 110 | |||||||||||||||||||||||||||||||
14.25 | 33,015 | 1.80 | 1.00 | 1.98 | 0.82 | 156 | |||||||||||||||||||||||||||||||
10.15 | % | $ | 2,785 | 1.85 | % | 1.06 | % | 1.99 | % | 0.92 | % | 144 | % | ||||||||||||||||||||||||
9.86 | 3,030 | 1.85 | 0.92 | 1.98 | 0.79 | 143 | |||||||||||||||||||||||||||||||
(1.41 | ) | 4,787 | 1.85 | 0.15 | 1.96 | 0.04 | 12 | ||||||||||||||||||||||||||||||
13.61 | 5,528 | 1.81 | 0.60 | 1.96 | 0.45 | 147 | |||||||||||||||||||||||||||||||
7.53 | 5,890 | 1.80 | 0.55 | 1.94 | 0.41 | 110 | |||||||||||||||||||||||||||||||
14.24 | 7,089 | 1.80 | 0.99 | 1.98 | 0.81 | 156 | |||||||||||||||||||||||||||||||
10.82 | % | $ | 33 | 1.35 | % | 1.54 | % | 1.49 | % | 1.40 | % | 144 | % | ||||||||||||||||||||||||
10.49 | 23 | 1.35 | 1.38 | 1.61 | 1.12 | 143 | |||||||||||||||||||||||||||||||
(1.40 | ) | 1 | 1.35 | 0.65 | 1.61 | 0.39 | 12 | ||||||||||||||||||||||||||||||
14.16 | 1 | 1.31 | 1.06 | 1.61 | 0.76 | 147 | |||||||||||||||||||||||||||||||
8.22 | 1 | 1.05 | 1.39 | 1.19 | 1.25 | 110 | |||||||||||||||||||||||||||||||
15.08 | 23,844 | 1.05 | 1.76 | 1.23 | 1.58 | 156 | |||||||||||||||||||||||||||||||
11.21 | % | $ | 219,450 | 0.85 | % | 2.05 | % | 0.99 | % | 1.91 | % | 144 | % | ||||||||||||||||||||||||
10.92 | 247,365 | 0.85 | 1.92 | 0.98 | 1.79 | 143 | |||||||||||||||||||||||||||||||
(1.31 | ) | 254,534 | 0.85 | 1.15 | 0.96 | 1.04 | 12 | ||||||||||||||||||||||||||||||
14.76 | 262,557 | 0.81 | 1.60 | 0.96 | 1.45 | 147 | |||||||||||||||||||||||||||||||
8.62 | 283,005 | 0.80 | 1.55 | 0.94 | 1.41 | 110 | |||||||||||||||||||||||||||||||
15.35 | 363,157 | 0.80 | 2.00 | 0.98 | 1.82 | 156 | |||||||||||||||||||||||||||||||
First American Funds 2007 Annual Report 121
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 | ||||||||||||||||||||||||||||
Equity Income Fund1 | |||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||
20072 | $ | 15.90 | $ | 0.29 | $ | 1.96 | $ | (0.29 | ) | $ | (1.43 | ) | $ | 16.43 | |||||||||||||||||||
20062 | 13.67 | 0.20 | 2.32 | (0.21 | ) | (0.08 | ) | 15.90 | |||||||||||||||||||||||||
20053 | 13.89 | 0.01 | (0.22 | ) | (0.01 | ) | — | 13.67 | |||||||||||||||||||||||||
20054 | 12.77 | 0.20 | 1.15 | (0.22 | ) | (0.01 | ) | 13.89 | |||||||||||||||||||||||||
20044 | 11.56 | 0.18 | 1.23 | (0.20 | ) | — | 12.77 | ||||||||||||||||||||||||||
20034 | 9.58 | 0.18 | 1.99 | (0.19 | ) | — | 11.56 | ||||||||||||||||||||||||||
Class B | |||||||||||||||||||||||||||||||||
20072 | $ | 15.75 | $ | 0.17 | $ | 1.94 | $ | (0.20 | ) | $ | (1.43 | ) | $ | 16.23 | |||||||||||||||||||
20062 | 13.57 | 0.09 | 2.30 | (0.13 | ) | (0.08 | ) | 15.75 | |||||||||||||||||||||||||
20053 | 13.79 | — | (0.22 | ) | — | — | 13.57 | ||||||||||||||||||||||||||
20054 | 12.68 | 0.10 | 1.14 | (0.12 | ) | (0.01 | ) | 13.79 | |||||||||||||||||||||||||
20044 | 11.49 | 0.08 | 1.22 | (0.11 | ) | — | 12.68 | ||||||||||||||||||||||||||
20034 | 9.52 | 0.10 | 1.98 | (0.11 | ) | — | 11.49 | ||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||
20072 | $ | 15.78 | $ | 0.17 | $ | 1.94 | $ | (0.20 | ) | $ | (1.43 | ) | $ | 16.26 | |||||||||||||||||||
20062 | 13.59 | 0.10 | 2.30 | (0.13 | ) | (0.08 | ) | 15.78 | |||||||||||||||||||||||||
20053 | 13.81 | — | (0.22 | ) | — | — | 13.59 | ||||||||||||||||||||||||||
20054 | 12.70 | 0.11 | 1.13 | (0.12 | ) | (0.01 | ) | 13.81 | |||||||||||||||||||||||||
20044 | 11.51 | 0.08 | 1.22 | (0.11 | ) | — | 12.70 | ||||||||||||||||||||||||||
20034 | 9.54 | 0.10 | 1.98 | (0.11 | ) | — | 11.51 | ||||||||||||||||||||||||||
Class R5 | |||||||||||||||||||||||||||||||||
20072 | $ | 15.88 | $ | 0.23 | $ | 1.98 | $ | (0.25 | ) | $ | (1.43 | ) | $ | 16.41 | |||||||||||||||||||
20062 | 13.66 | 0.17 | 2.31 | (0.18 | ) | (0.08 | ) | 15.88 | |||||||||||||||||||||||||
20053 | 13.88 | 0.01 | (0.23 | ) | — | — | 13.66 | ||||||||||||||||||||||||||
20054 | 12.78 | 0.11 | 1.20 | (0.20 | ) | (0.01 | ) | 13.88 | |||||||||||||||||||||||||
20044 | 11.56 | 0.19 | 1.22 | (0.19 | ) | — | 12.78 | ||||||||||||||||||||||||||
20034 | 9.57 | 0.19 | 1.99 | (0.19 | ) | — | 11.56 | ||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||
20072 | $ | 16.00 | $ | 0.33 | $ | 1.98 | $ | (0.33 | ) | $ | (1.43 | ) | $ | 16.55 | |||||||||||||||||||
20062 | 13.76 | 0.24 | 2.33 | (0.25 | ) | (0.08 | ) | 16.00 | |||||||||||||||||||||||||
20053 | 13.98 | 0.01 | (0.21 | ) | (0.01 | ) | (0.01 | ) | 13.76 | ||||||||||||||||||||||||
20054 | 12.85 | 0.24 | 1.15 | (0.25 | ) | (0.01 | ) | 13.98 | |||||||||||||||||||||||||
20044 | 11.63 | 0.21 | 1.24 | (0.23 | ) | — | 12.85 | ||||||||||||||||||||||||||
20034 | 9.63 | 0.21 | 2.00 | (0.21 | ) | — | 11.63 | ||||||||||||||||||||||||||
1 | Per share data calculated using average shares outstanding method. | |
2 | For the period November 1 to October 31 in the year indicated. | |
3 | For the period October 1, 2005 to October 31, 2005. Effective October 1, 2005, the fund’s fiscal year end was changed from September 30 to October 31. All ratios for the period have been annualized, except total return and portfolio turnover. | |
4 | For the period October 1 to September 30 in the year indicated. | |
5 | Prior to July 1, 2004, Class R shares were named Class S shares. | |
6 | Total return does not include sales charges. Total return would have been lower had certain expenses not been waived. |
The accompanying notes are an integral part of the financial statements.
122 First American Funds 2007 Annual Report
Table of Contents
Ratio of Net | |||||||||||||||||||||||||||||||||||||
Ratio of | Investment | ||||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses to | Income (Loss) | |||||||||||||||||||||||||||||||||||
Ratio of | Investment | Average | to Average | ||||||||||||||||||||||||||||||||||
Net Assets | Expenses to | Income (Loss) | Net Assets | Net Assets | Portfolio | ||||||||||||||||||||||||||||||||
Total | End of | Average | to Average | (Excluding | (Excluding | Turnover | |||||||||||||||||||||||||||||||
Return6 | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | |||||||||||||||||||||||||||||||
15.24 | % | $ | 179,379 | 1.16 | % | 1.83 | % | 1.16 | % | 1.83 | % | 20 | % | ||||||||||||||||||||||||
18.66 | 171,814 | 1.18 | 1.40 | 1.18 | 1.40 | 23 | |||||||||||||||||||||||||||||||
(1.53 | ) | 171,998 | 1.20 | 0.70 | 1.20 | 0.70 | — | ||||||||||||||||||||||||||||||
10.65 | 176,878 | 1.16 | 1.51 | 1.19 | 1.48 | 27 | |||||||||||||||||||||||||||||||
12.26 | 184,381 | 1.15 | 1.39 | 1.19 | 1.35 | 12 | |||||||||||||||||||||||||||||||
22.81 | 144,282 | 1.15 | 1.70 | 1.20 | 1.65 | 43 | |||||||||||||||||||||||||||||||
14.40 | % | $ | 16,893 | 1.91 | % | 1.09 | % | 1.91 | % | 1.09 | % | 20 | % | ||||||||||||||||||||||||
17.76 | 19,845 | 1.93 | 0.65 | 1.93 | 0.65 | 23 | |||||||||||||||||||||||||||||||
(1.60 | ) | 21,003 | 1.95 | (0.05 | ) | 1.95 | (0.05 | ) | — | ||||||||||||||||||||||||||||
9.86 | 21,639 | 1.91 | 0.78 | 1.94 | 0.75 | 27 | |||||||||||||||||||||||||||||||
11.37 | 23,869 | 1.90 | 0.65 | 1.94 | 0.61 | 12 | |||||||||||||||||||||||||||||||
21.97 | 22,156 | 1.90 | 0.95 | 1.95 | 0.90 | 43 | |||||||||||||||||||||||||||||||
14.37 | % | $ | 9,241 | 1.91 | % | 1.09 | % | 1.91 | % | 1.09 | % | 20 | % | ||||||||||||||||||||||||
17.80 | 11,225 | 1.93 | 0.68 | 1.93 | 0.68 | 23 | |||||||||||||||||||||||||||||||
(1.59 | ) | 15,313 | 1.95 | (0.05 | ) | 1.95 | (0.05 | ) | — | ||||||||||||||||||||||||||||
9.84 | 16,128 | 1.91 | 0.79 | 1.94 | 0.76 | 27 | |||||||||||||||||||||||||||||||
11.34 | 19,300 | 1.90 | 0.66 | 1.94 | 0.62 | 12 | |||||||||||||||||||||||||||||||
21.95 | 19,386 | 1.90 | 0.95 | 1.95 | 0.90 | 43 | |||||||||||||||||||||||||||||||
14.98 | % | $ | 940 | 1.41 | % | 1.48 | % | 1.41 | % | 1.48 | % | 20 | % | ||||||||||||||||||||||||
18.33 | 511 | 1.43 | 1.14 | 1.57 | 1.00 | 23 | |||||||||||||||||||||||||||||||
(1.55 | ) | 418 | 1.45 | 0.45 | 1.60 | 0.30 | — | ||||||||||||||||||||||||||||||
10.33 | 415 | 1.41 | 0.83 | 1.59 | 0.65 | 27 | |||||||||||||||||||||||||||||||
12.18 | 1 | 1.15 | 1.52 | 1.19 | 1.48 | 12 | |||||||||||||||||||||||||||||||
22.91 | 17,170 | 1.15 | 1.80 | 1.20 | 1.75 | 43 | |||||||||||||||||||||||||||||||
15.54 | % | $ | 1,061,433 | 0.91 | % | 2.09 | % | 0.91 | % | 2.09 | % | 20 | % | ||||||||||||||||||||||||
18.89 | 1,129,971 | 0.93 | 1.65 | 0.93 | 1.65 | 23 | |||||||||||||||||||||||||||||||
(1.50 | ) | 1,169,267 | 0.95 | 0.95 | 0.95 | 0.95 | — | ||||||||||||||||||||||||||||||
10.94 | 1,206,483 | 0.91 | 1.80 | 0.94 | 1.77 | 27 | |||||||||||||||||||||||||||||||
12.54 | 1,404,431 | 0.90 | 1.65 | 0.94 | 1.61 | 12 | |||||||||||||||||||||||||||||||
23.20 | 1,278,470 | 0.90 | 1.95 | 0.95 | 1.90 | 43 | |||||||||||||||||||||||||||||||
First American Funds 2007 Annual Report 123
Table of Contents
Notes to Financial Statements October 31, 2007, all dollars and shares are rounded to thousands (000)
1 > | Organization |
Real Estate Securities Fund, International Fund, International Select Fund, Small Cap Growth Opportunities Fund, Small Cap Select Fund, Small Cap Value Fund, Small-Mid Cap Core Fund, Mid Cap Growth Opportunities Fund, Mid Cap Value Fund, Large Cap Growth Opportunities Fund, Large Cap Select Fund, Large Cap Value Fund, Balanced Fund, and Equity Income Fund (each a “fund” and collectively, the “funds”) are mutual funds offered by First American Investment Funds, Inc. (“FAIF”), which is a member of the First American Family of Funds. As of October 31, 2007, FAIF offered 42 funds, including the funds listed above. FAIF is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. FAIF’s articles of incorporation permit the funds’ board of directors to create additional funds in the future. Each fund other than Real Estate Securities Fund is a diversified open-end management investment company. Real Estate Securities Fund is a non-diversified, open-end management investment company. Prior to October 3, 2005, Small-Mid Cap Core Fund had different investment strategies, was named Technology Fund, and also was non-diversified. Non-diversified funds may invest a large component of their net assets in securities of relatively few issuers. | ||
FAIF offers Class A, Class B, Class C, Class R, and Class Y shares. Class A shares are sold with a front-end sales charge. 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 R shares are not offered by Small-Mid Cap Core Fund. | ||
The funds’ prospectus provides descriptions of each fund’s investment objective, principal investment strategies, and principal risks. All classes of shares of a fund have identical voting, dividend, liquidation, and other rights, and the same terms and conditions, except that certain fees and expenses, including distribution and shareholder servicing fees, may differ among classes. Each class has exclusive voting rights on any matters relating to that class’ servicing or distribution arrangements. |
2 > | Summary of Significant Accounting Policies |
The significant accounting policies followed by the funds are as follows: |
SECURITY VALUATIONS – Security valuations for the funds’ investments are furnished by an independent pricing service that has been approved by the funds’ board of directors. Investments in equity securities that are traded on a national securities exchange (or reported on the Nasdaq national market system) are stated at the last quoted sales price if readily available for such securities on each business day. For securities traded on the Nasdaq national market system, the funds utilize the Nasdaq Official Closing Price which compares the last trade to the bid/ask range of a security. If the last trade falls within the bid/ask range, then that price will be the closing price. If the last trade is outside the bid/ask range, and falls above the ask, then the ask will be the closing price. If the last trade is below the bid, then the bid will be the closing price. Other equity securities traded in the over-the-counter market and listed equity securities for which no sale was reported on that date are stated at the last quoted bid price. |
Debt obligations exceeding 60 days to maturity are valued by an independent pricing service. The pricing service may employ methodologies that utilize actual market transactions, broker-dealer supplied valuations, or other formula-driven valuation techniques. These techniques generally consider such factors as yields or prices of bonds of comparable quality, type of issue, coupon, maturity, ratings, and general market conditions. Securities for which prices are not available from an independent pricing service but where an active market exists are valued using market quotations obtained from one or more dealers that make markets in the securities or from a widely-used quotation system. Debt obligations with 60 days or less remaining until maturity may be valued at their amortized cost, which approximates market value. | ||
The following investment vehicles, when held by a fund, are priced as follows: Exchange listed futures and options on futures are priced at their last sale price on the exchange on which they are principally traded, as determined by FAF Advisors, on the day the valuation is made. If there were no sales on that day, futures and options on futures will be valued at the last reported bid price. Options on securities, indices, and currencies traded on Nasdaq or listed on a stock exchange, whether domestic or foreign, are valued at the last sale price on Nasdaq or on any exchange on the day the valuation is made. If there were no sales on that day, the options will be valued at the last sale price on the previous valuation date. Last sale prices are obtained from an independent pricing service. Forward contracts (other than currency forward contracts), swaps, and over-the-counter options on securities, indices, and currencies are valued at the quotations received from an independent pricing service, if available. | ||
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 |
124 First American Funds 2007 Annual Report
Table of Contents
funds’ board of directors. Some of the factors which may be considered in determining fair value are fundamental analytical data relating to the investment; the nature and duration of any restrictions on disposition; trading in similar securities of the same issuer or comparable companies; information from broker-dealers; and an evaluation of the forces that influence the market in which the securities are purchased and sold. If events occur that materially affect the value of securities (including non-U.S. securities) between the close of trading in those securities and the close of regular trading on the New York Stock Exchange, the securities will be valued at fair value. As of October 31, 2007, Real Estate Securities Fund, Small Cap Growth Opportunities Fund, and Balanced Fund held fair valued securities with a total value of $69, $25, and $0, respectively, or 0.0%, 0.0%, and 0.0% of total net assets, respectively. The fair values of securities held by International Fund and International Select Fund are determined on each business day by an independent third party based on factors such as price changes for futures contracts, sector indices, American Depository Receipts, and currency exchange rates that occur between the close of the local market and the close of the New York Stock Exchange. The use of daily fair value pricing by International Fund and International Select Fund may cause the net asset value of their shares to differ significantly from the net asset value that would be determined without fair value pricing. Foreign securities are valued at the closing prices on the principal exchange on which they trade unless they are fair valued as described above. The prices for foreign securities are reported in local currency and converted to U.S. dollars using currency exchange rates. Exchange rates are provided daily by recognized independent pricing agents. | ||
Investments in open-end mutual funds are valued at their respective net asset values 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. | ||
DISTRIBUTIONS TO SHAREHOLDERS – Equity Income Fund and Large Cap Value Fund declare and pay income dividends monthly. Balanced Fund, Large Cap Select Fund, Mid Cap Value Fund, and Real Estate Securities Fund declare and pay income dividends quarterly. International Fund, International Select Fund, Large Cap Growth Opportunities Fund, Mid Cap Growth Opportunities Fund, Small Cap Growth Opportunities Fund, Small Cap Select Fund, Small Cap Value Fund, and Small-Mid Cap Core Fund declare and pay income dividends annually. Distributions are payable in cash or reinvested in additional shares of the funds. Any net realized capital gains on sales of a fund’s securities are distributed to shareholders at least annually. |
Real Estate Securities Fund receives substantial distributions from holdings in real estate investment trusts (“REITs”). Distributions from REITs may be characterized as ordinary income, net capital gain, or a return of capital to the REIT shareholder. The proper characterization of REIT distributions is generally not known until after the end of each calendar year. As such, Real Estate Securities Fund must use estimates in reporting the character of its income and distributions for financial statement purposes. The actual character of distributions to fund shareholders will be reflected on the Form 1099 received by shareholders after the end of the calendar year. Due to the nature of REIT investments, a portion of the distributions received by a fund shareholder may represent a return of capital. |
FEDERAL TAXES – Each fund is treated as a separate taxable entity. Each fund intends to continue to qualify as a regulated investment company as provided in Subchapter M of the Internal Revenue Code, as amended, and to distribute all taxable income, if any, to its shareholders. Accordingly, no provision for federal income taxes is required. |
Net investment income and net realized gains (losses) may differ for financial statement and tax purposes because of temporary or permanent book-to-tax differences. These differences are primarily due to deferred wash sale and straddle losses, foreign currency gains and losses, investments in limited partnerships and REITs, and the “mark-to-market” of certain passive foreign investment companies (“PFICs”) for tax purposes. To the extent these differences are permanent, reclassifications are made to the appropriate equity accounts in the fiscal period that the differences arise. | ||
On the Statements of Assets and Liabilities, the following reclassifications were made: |
Accumulated | Undistributed | |||||||||||
Net Realized | Net Investment | Portfolio | ||||||||||
Gain (Loss) | Income | Capital | ||||||||||
Real Estate Securities Fund | $ | 4,550 | $ | (4,550 | ) | $ | — | |||||
International Fund | (19,066 | ) | (742 | ) | 19,808 | |||||||
International Select Fund | 315 | (315 | ) | — | ||||||||
Small Cap Growth Opportunities Fund | (6,590 | ) | 2,573 | 4,017 | ||||||||
Small Cap Select Fund | (19,356 | ) | 806 | 18,550 | ||||||||
Small Cap Value Fund | (7,559 | ) | 35 | 7,524 | ||||||||
Small-Mid Cap Core Fund | 58 | 161 | (219 | ) | ||||||||
Mid Cap Growth Opportunities Fund | (20,886 | ) | 6,928 | 13,958 | ||||||||
Mid Cap Value Fund | (12,147 | ) | 524 | 11,623 | ||||||||
Large Cap Growth Opportunities Fund | (558 | ) | — | 558 | ||||||||
Large Cap Select Fund | (8,970 | ) | — | 8,970 | ||||||||
Large Cap Value Fund | (17,649 | ) | 10 | 17,639 | ||||||||
Balanced Fund | (5,457 | ) | 45 | 5,412 | ||||||||
Equity Income Fund | (10,144 | ) | (606 | ) | 10,750 | |||||||
First American Funds 2007 Annual Report 125
Table of Contents
Notes to Financial Statements October 31, 2007, all dollars and shares are rounded to thousands (000)
The tax character of distributions paid during the fiscal 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 or year in which the amounts are distributed may differ from the period or year that the income or realized gains (losses) were recorded by the fund. The tax character of distributions paid during the fiscal period ended October 31, 2007 and the fiscal year ended October 31, 2006, were as follows: |
October 31, 2007 | ||||||||||||
Ordinary | Long Term | |||||||||||
Fund | Income | Gain | Total | |||||||||
Real Estate Securities Fund | $ | 74,531 | $ | 31,221 | $ | 105,752 | ||||||
International Fund | 19,153 | 31,015 | 50,168 | |||||||||
International Select Fund | 49 | — | 49 | |||||||||
Small Cap Growth Opportunities Fund | 17,479 | 2,440 | 19,919 | |||||||||
Small Cap Select Fund | 58,806 | 75,372 | 134,178 | |||||||||
Small Cap Value Fund | 21,986 | 43,593 | 65,579 | |||||||||
Small-Mid Cap Core Fund | 109 | — | 109 | |||||||||
Mid Cap Growth Opportunities Fund | — | 142,004 | 142,004 | |||||||||
Mid Cap Value Fund | 28,183 | 38,429 | 66,612 | |||||||||
Large Cap Growth Opportunities Fund | 1,284 | 9,668 | 10,952 | |||||||||
Large Cap Select Fund | 2,124 | 7,702 | 9,826 | |||||||||
Large Cap Value Fund | 30,236 | 53,410 | 83,646 | |||||||||
Balanced Fund | 8,951 | 23,751 | 32,702 | |||||||||
Equity Income Fund | 30,078 | 113,341 | 143,419 | |||||||||
October 31, 2006 | ||||||||||||
Ordinary | Long Term | |||||||||||
Fund | Income | Gain | Total | |||||||||
Real Estate Securities Fund | $ | 46,095 | $ | 52,224 | $ | 98,319 | ||||||
International Fund | 19,958 | — | 19,958 | |||||||||
Small Cap Growth Opportunities Fund | 47,284 | 8,237 | 55,521 | |||||||||
Small Cap Select Fund | 50,757 | 107,691 | 158,448 | |||||||||
Small Cap Value Fund | 11,597 | 80,011 | 91,608 | |||||||||
Mid Cap Growth Opportunities Fund | 52,862 | 104,610 | 157,472 | |||||||||
Mid Cap Value Fund | 6,572 | 35,553 | 42,125 | |||||||||
Large Cap Select Fund | 10,875 | 7,247 | 18,122 | |||||||||
Large Cap Value Fund | 12,164 | 26,976 | 39,140 | |||||||||
Balanced Fund | 6,912 | — | 6,912 | |||||||||
Equity Income Fund | 21,829 | 7,683 | 29,512 | |||||||||
As of October 31, 2007, components of accumulated earnings (deficit) on a tax-basis were as follows: |
Accumulated | Total | |||||||||||||||||||||||
Undistributed | Undistributed | Capital and | Other | Accumulated | ||||||||||||||||||||
Ordinary | Long Term | Post-October | Unrealized | Accumulated | Earnings | |||||||||||||||||||
Fund | Income | Capital Gains | Losses | Appreciation | Losses | (Deficit) | ||||||||||||||||||
Real Estate Securities Fund | $ | 27,580 | $ | 68,445 | $ | — | $ | 156,280 | $ | — | $ | 252,305 | ||||||||||||
International Fund | 21,016 | 137,164 | (2,284 | ) | 577,314 | — | 733,210 | |||||||||||||||||
International Select Fund | 6,219 | 1,497 | — | 36,176 | (8 | ) | 43,884 | |||||||||||||||||
Small Cap Growth Opportunities Fund | 17,231 | 3,956 | — | 25,973 | (69 | ) | 47,091 | |||||||||||||||||
Small Cap Select Fund | 7,335 | 45,547 | (19,442 | ) | 87,034 | (148 | ) | 120,326 | ||||||||||||||||
Small Cap Value Fund | 16,773 | 20,160 | — | 30,440 | — | 67,373 | ||||||||||||||||||
Small-Mid Cap Core Fund | — | — | (441,953 | ) | 11,195 | — | (430,758 | ) | ||||||||||||||||
Mid Cap Growth Opportunities Fund | 27,656 | 161,089 | (20,168 | ) | 449,176 | — | 617,753 | |||||||||||||||||
Mid Cap Value Fund | 24,186 | 45,574 | — | 163,973 | — | 233,733 | ||||||||||||||||||
Large Cap Growth Opportunities Fund | 13,655 | 58,187 | (47,305 | ) | 191,780 | — | 216,317 | |||||||||||||||||
Large Cap Select Fund | 33,926 | 22,823 | — | 49,637 | — | 106,386 | ||||||||||||||||||
Large Cap Value Fund | 27,719 | 73,894 | — | 147,298 | — | 248,911 | ||||||||||||||||||
Balanced Fund | 16,697 | 16,582 | — | 26,381 | (251 | ) | 59,409 | |||||||||||||||||
Equity Income Fund | 6,581 | 75,010 | — | 425,686 | — | 507,277 | ||||||||||||||||||
The differences between book and tax basis unrealized appreciation (depreciation) are primarily due to the tax deferral of losses on wash sales and investments in limited partnerships, the amount of gain (loss) recognized for tax purposes due to mark-to-market adjustments on open futures contracts, and the mark-to-market for certain PFICs for tax purposes. |
126 First American Funds 2007 Annual Report
Table of Contents
As of October 31, 2007, the following funds had capital loss carryforwards, which, if not offset by subsequent capital gains, will expire on the funds’ fiscal year-ends as follows: |
Expiration Year | ||||||||||||||||||||||||||||||||
Fund | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | Total | ||||||||||||||||||||||||
International Fund | $ | — | $ | 2,284 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 2,284 | ||||||||||||||||
Small Cap Select Fund | — | 19,442 | — | — | — | — | — | 19,442 | ||||||||||||||||||||||||
Small-Mid Cap Core Fund | 1,524 | 334,004 | 102,105 | 4,320 | — | — | — | 441,953 | ||||||||||||||||||||||||
Mid Cap Growth Opportunities Fund | — | 20,168 | — | — | — | — | — | 20,168 | ||||||||||||||||||||||||
Large Cap Growth Opportunities Fund | — | 47,305 | — | — | — | — | — | 47,305 | ||||||||||||||||||||||||
In accordance with Section 382 of the Internal Revenue Code, utilization of all or a portion of the above capital loss carryovers is limited on an annual basis for International Fund, Small Cap Select Fund, Small-Mid Cap Core Fund, Mid Cap Growth Opportunities Fund, and Large Cap Growth Opportunities Fund to $2,284, $9,721, $1,524, $10,084, and $23,652, respectively. |
FUTURES TRANSACTIONS – In order to gain exposure to or protect against changes in the market, to maintain sufficient liquidity to meet redemption requests and to increase the level of fund assets devoted to replicating the composition of the S&P and Russell indices while reducing transaction costs, certain funds may enter into S&P stock index futures contracts and other stock index futures contracts. The Balanced Fund may also enter into interest rate index 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 October 31, 2007, the outstanding futures contracts of International Select Fund and Balanced Fund are disclosed in their Schedules of Investments. |
OPTIONS TRANSACTIONS – The funds may utilize options in an attempt to manage market or business risk or enhance returns. When a call or put option is written, an amount equal to the premium received is recorded as a liability. The liability is marked-to-market daily to reflect the current market value of the option written. When a written option expires, a gain is realized in the amount of the premium originally received. If a closing purchase contract is entered into, a gain or loss is realized in the amount of the original premium less the cost of the closing transaction. If a written call option is exercised, a gain or loss is realized from the sale of the underlying security, and the proceeds from such sale are increased by the premium originally received. If a written put option is exercised, the amount of the premium originally received reduces the cost of the security which is purchased upon exercise of the option. As of October 31, 2007, the Balanced Fund held options written as disclosed in its Schedule of Investments. |
Options purchased are recorded as investments and marked-to-market daily to reflect the current market value of the option contract. If an option purchased expires, a loss is realized in the amount of the cost of the option. If a closing transaction is entered into, a gain or loss is realized to the extent that the proceeds from the sale are greater or less than the cost of the option. If a purchased put option is exercised, a gain or loss is realized from the sale of the underlying security by adjusting the proceeds from such sale by the amount of the premium originally paid. If a purchased call option is exercised, the cost of the security purchased upon exercise is increased by the premium originally paid. As of October 31, 2007, Balanced Fund held options purchased as disclosed in its Schedule of Investments. |
SWAP AGREEMENTS – Balanced Fund may invest in swap agreements. A swap agreement is an agreement to exchange the return generated by one instrument for the return generated by another instrument. The fund may enter into interest rate and credit default swap agreements to manage its exposure to interest rates and credit risk. |
First American Funds 2007 Annual Report 127
Table of Contents
Notes to Financial Statements October 31, 2007, all dollars and shares are rounded to thousands (000)
Interest rate swap agreements involve the exchange by the fund with another party of their respective commitments to pay or receive interest (e.g., an exchange of floating rate payments for fixed rate payments with respect to a notional amount of principal). As of October 31, 2007, Balanced Fund had outstanding interest rate swaps as disclosed in its Schedule of Investments. | ||
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 reference entity on its obligation (typically a corporate issue or sovereign issue of an emerging country). The fund may use credit default swaps to provide a measure of protection against defaults of particular issuers (i.e., to reduce risk where the fund owns an issuance of or otherwise has exposure to the issuer) or to take an active long or short position with respect to the likelihood of a particular issuer’s default. As of October 31, 2007, Balanced Fund had outstanding credit default swaps as disclosed in its Schedule of Investments. | ||
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 on the Statement of Operations. Payments received or made at the beginning of the measurement period are reflected on the Statement of Assets and Liabilities. A liquidation payment received or made at the termination of the swap agreement is recorded as realized gain or loss on 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 an agreement may default on its obligation to perform or disagree as to the meaning of contractual terms in the agreement, and that there may be unfavorable changes in interest rates. |
FOREIGN CURRENCY TRANSLATION – The books and records of International Fund and International Select Fund relating to the funds’ non-U.S. dollar denominated investments are maintained in U.S. dollars on the following bases: |
• | 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. |
International Fund and International Select Fund do not isolate the portion of gains and losses on investments in equity securities that is due to changes in the foreign exchange rates from that which is due to changes in market prices of equity securities. | ||
International Fund and International Select Fund 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. At October 31, 2007, International Fund and International Select Fund had foreign currency holdings consisting of multiple denominations. |
FORWARD FOREIGN CURRENCY CONTRACTS – The International Fund and International Select Fund may enter into forward foreign currency contracts as hedges against either specific transactions or fund positions. The aggregate principal amount of the contracts are not recorded because the funds intend to settle the contracts prior to delivery. All commitments are “marked-to-market” daily at the applicable foreign exchange rate, and any resulting unrealized gains or losses are recorded currently. The funds realize gains or losses at the time the forward contracts are extinguished. Unrealized gains or losses on outstanding positions in forward foreign currency contracts held at the close of the period are recognized as ordinary income or loss for federal income tax purposes. |
The use of forward foreign currency contracts does not eliminate fluctuations in the underlying prices of the securities, but it does establish a rate of exchange that can be achieved in the future. Although forward foreign currency contracts limit the risk of loss due to a decline in the value of the hedged currency, they also limit a potential gain that might result should the value of the currency increase. These contracts involve market risk in excess of the amount reflected in the fund’s Statement of Assets and Liabilities. The face or contract amount in U.S. dollars reflects the total exposure the fund has in that particular currency contract. In addition, there could be exposure to risks (limited to the amount of unrealized gains) if the counterparties to the contracts are unable to meet the terms of their contracts. At October 31, 2007, International Fund and International Select Fund had no outstanding forward foreign currency contracts. |
SECURITIES PURCHASED ON A WHEN-ISSUED BASIS – Delivery and payment for securities that have been purchased by a fund on a when-issued or forward-commitment basis can take place up to a month or more after the transaction. Such securities do not earn interest, are subject to market fluctuations, and may increase or decrease in value prior to their delivery. Each fund segregates assets with a market value equal to or greater than the amount of its purchase commitments. The purchase of securities on a when-issued or forward- |
128 First American Funds 2007 Annual Report
Table of Contents
commitment basis may increase the volatility of the fund’s net asset value if the fund makes such purchases while remaining substantially fully invested. At October 31, 2007, Balanced Fund had when-issued or forward-commitment securities outstanding with a total cost of $1,273. |
In connection with the ability to purchase securities on a when-issued basis, each fund may also enter into dollar rolls in which the fund sells securities purchased on a forward-commitment basis and simultaneously contracts with a counterparty to repurchase similar (same type, coupon, and maturity), but not identical, securities on a specified future date. As an inducement for the fund to “roll over” its purchase commitments, the fund receives negotiated amounts in the form of reductions of the purchase price of the commitment. Dollar rolls are considered a form of leverage. As of and for the fiscal period ended October 31, 2007, the funds had no dollar rolls. |
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 October 31, 2007, Real Estate Securities Fund, Small Cap Growth Opportunities Fund, and Balanced Fund had investments in illiquid securities with a total value of $69, $2,510, and $1, respectively, or 0.0%, 0.8%, and 0.0%, respectively, of total net assets. |
Information concerning illiquid securities, including restricted securities considered to be illiquid, is as follows: |
Dates | ||||||||||||
Real Estate Securities Fund | Shares | Acquired | Cost Basis | |||||||||
Beacon Capital | 34 | 3/98 | $ | 435 | ||||||||
Newcastle Investment Holdings | 35 | 6/98 | 153 | |||||||||
Dates | ||||||||||||
Small Cap Growth Opportunities Fund | Shares | Acquired | Cost Basis | |||||||||
Ember Resources | 1,342 | 1/06-3/07 | $ | 7,175 | ||||||||
Hollis-Eden Pharmaceuticals Warrants | 71 | 2/06 | 161 | |||||||||
Kuhlman Company Warrants | 282 | 1/06 | 273 | |||||||||
Tridium, Class B, Escrow Shares | 279 | 1/06 | — | |||||||||
VideoPropulsion | 785 | 12/99 | — | |||||||||
Dates | ||||||||||||
Balanced Fund | Par | Acquired | Cost Basis | |||||||||
Duty Free International | $ | 588 | 1/99-11/02 | $ | 588 | |||||||
Westam Mortgage Financial | 1 | 10/02 | 1 | |||||||||
SECURITIES LENDING – In order to generate additional income, a fund may lend securities representing up to one-third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks, or other institutional borrowers of securities. Each fund’s policy is to receive collateral from the borrower in the form of cash, U.S. government securities, or other high-grade debt obligations equal to at least 100% of the value of securities loaned. If the value of the securities on loan increases, additional collateral is received from the borrower. As with other extensions of credit, there may be risks of delay in recovery of the securities or even loss of rights in the collateral should the borrower of the security fail financially. |
U.S. Bank National Association (“U.S. Bank”), the parent company of the funds’ advisor, serves as the securities lending agent for the funds in transactions involving the lending of portfolio securities on behalf of the funds. U.S. Bank acts as the securities lending agent pursuant to, and subject to compliance with conditions contained in, an exemptive order issued by the Securities and Exchange Commission (“SEC”). U.S. Bank receives fees as a percentage of each fund’s net income from securities lending transactions. With respect to International Fund and International Select Fund, a portion of this amount is paid to State Street Bank and Trust for acting as sub-lending agent. For each fund other than International Fund and International Select Fund, collateral for securities on loan is invested in a money market fund administered by FAF Advisors, Inc. (“FAF Advisors”) and FAF Advisors receives an administration fee equal to 0.02% of such fund’s average daily net assets. For International Fund and International Select Fund, State Street Bank and Trust continues to act as sub-lending agent and receives a portion of U.S. Bank’s fee. |
First American Funds 2007 Annual Report 129
Table of Contents
Notes to Financial Statements October 31, 2007, all dollars and shares are rounded to thousands (000)
Securities lending fees paid to U.S. Bank by the funds during the fiscal period ended October 31, 2007, were as follows: |
Fund | ||||
Real Estate Securities Fund | $ | 289 | ||
Small Cap Growth Opportunities Fund | 193 | |||
Small Cap Select Fund | 1,004 | |||
Small Cap Value Fund | 178 | |||
Small-Mid Cap Core Fund | 62 | |||
Mid Cap Growth Opportunities Fund | 688 | |||
Mid Cap Value Fund | 258 | |||
Large Cap Growth Opportunities Fund | 123 | |||
Large Cap Select Fund | 69 | |||
Large Cap Value Fund | 88 | |||
Balanced Fund | 82 | |||
Equity Income Fund | 107 | |||
Income from securities lending is recorded on the Statement of Operations as securities lending income net of fees paid to U.S. Bank. |
SECURITY LITIGATION SETTLEMENTS – Income from settlement proceeds related to portfolio securities is recorded as an adjustment to realized or unrealized gains or losses. For the fiscal year ended October 31, 2007, International Fund, Small Cap Growth Opportunities Fund, Small Cap Select Fund, Small Cap Value Fund, Small-Mid Cap Core Fund, Mid Cap Growth Opportunities Fund, Mid Cap Value Fund, Large Cap Growth Opportunities Fund, Large Cap Select Fund, Large Cap Value Fund, Balanced Fund, and Equity Income Fund received settlement proceeds of $7, $211, $365, $258, $414, $331, $10, $2,846, $11, $668, $1,003, and $1,064, respectively, as an adjustment to realized gains or losses for settlement proceeds related to securities no longer included in the portfolio. | ||
EXPENSES – Expenses that are directly related to one of the funds are charged directly to that fund. Other operating expenses are allocated to the funds on several bases, including evenly across all funds, allocated based on relative net assets of all funds within the First American Family of Funds, or a combination of both methods. Class specific expenses, such as distribution fees and shareholder servicing fees, are borne by that class. Income, other expenses, and realized and unrealized gains and losses of a fund are allocated to each respective class in proportion to the relative net assets of each class. | ||
INTERFUND LENDING PROGRAM – Pursuant to an exemptive order issued by the SEC, the funds, along with other registered investment companies in the First American Family of Funds, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating funds. The funds did not have any interfund lending transactions during the fiscal period ended October 31, 2007. | ||
DEFERRED COMPENSATION PLAN – Under a Deferred Compensation Plan (the “Plan”), non-interested directors of the First American Family of Funds may participate and elect to defer receipt of part or all of their annual compensation. Deferred amounts are treated as though equivalent dollar amounts had been invested in shares of selected open-end First American Funds, preselected by each director. All amounts in the Plan are 100% vested, and accounts under the Plan are obligations of the funds. Deferred amounts remain in the funds until distributed in accordance with the Plan. | ||
USE OF ESTIMATES IN PREPARATION OF FINANCIAL STATEMENTS – The preparation of financial statements, in conformity with U.S. generally accepted accounting principles, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported results of operations during the reporting period. Actual results could differ from those estimates. |
3 > | Fees and Expenses |
INVESTMENT ADVISORY FEES – Pursuant to an investment advisory agreement (the “Agreement”), FAF Advisors manages each fund’s assets and furnishes related office facilities, equipment, research, and personnel. The Agreement requires each fund to pay FAF Advisors a monthly fee based upon average daily net assets. The annual fee for each fund is as follows: |
Advisory Fee | ||||||
as a % of Average | ||||||
Fund | Daily Net Assets | |||||
Real Estate Securities Fund | 0.70 | % | ||||
International Fund | 1.00 | |||||
International Select Fund | 1.00 | |||||
Small Cap Growth Opportunities Fund | 1.00 | |||||
Small Cap Select Fund | 0.70 | |||||
Small Cap Value Fund | 0.70 | |||||
Small-Mid Cap Core Fund | 0.70 | |||||
Mid Cap Growth Opportunities Fund | 0.70 | |||||
Mid Cap Value Fund | 0.70 | |||||
Large Cap Growth Opportunities Fund* | 0.65 | |||||
Large Cap Select Fund* | 0.65 | |||||
Large Cap Value Fund* | 0.65 | |||||
Balanced Fund* | 0.65 | |||||
Equity Income Fund* | 0.65 | |||||
* | The advisory fees for Large Cap Growth Opportunities Fund, Large Cap Select Fund, Large Cap Value Fund, Balanced Fund, and Equity Income Fund are equal to an annual rate of 0.65% of the average daily net assets up to $3 billion, 0.625% of the average daily net assets on the next $2 billion, and 0.60% of the average daily net assets in excess of $5 billion. |
FAF Advisors has agreed to waive fees and reimburse other fund expenses for the following funds through June 30, 2008, so that total fund operating |
130 First American Funds 2007 Annual Report
Table of Contents
expenses, as a percentage of average daily net assets, do not exceed the following amounts: |
Share Class | ||||||||||||||||||||||
Fund | A | B | C | R | Y | |||||||||||||||||
International Fund | 1.49 | % | 2.24 | % | 2.24 | % | 1.74 | % | 1.24 | % | ||||||||||||
International Select Fund | 1.49 | 2.24 | 2.24 | 1.74 | 1.24 | |||||||||||||||||
Small Cap Growth Opportunities Fund | 1.47 | 2.22 | 2.22 | 1.72 | 1.22 | |||||||||||||||||
Small-Mid Cap Core Fund | 1.41 | 2.16 | 2.16 | N/A | 1.16 | |||||||||||||||||
Balanced Fund | 1.10 | 1.85 | 1.85 | 1.35 | 0.85 | |||||||||||||||||
N/A = Not Applicable |
The funds may invest in related money market funds that are series of First American Funds, Inc., subject to certain limitations. In order to avoid the payment of duplicative investment advisory fees to FAF Advisors, which acts as the investment advisor to both the investing funds and the related money market funds, FAF Advisors will reimburse each investing fund an amount equal to that portion of FAF Advisor’s investment advisory fee received from the related money market funds that is attributable to the assets of the investing fund. |
ADMINISTRATION FEES – FAF Advisors serves as the funds’ administrator pursuant to an administration agreement between FAF Advisors and the funds. U.S. Bancorp Fund Services, LLC (“USBFS”) serves as sub-administrator pursuant to a sub-administration agreement between USBFS and FAF Advisors. FAF Advisors is a subsidiary of U.S. Bank. Both U.S. Bank and USBFS are direct subsidiaries of U.S. Bancorp. Under the administration agreement, FAF Advisors is compensated to provide, or compensates other entities to provide, services to the funds. These services include various legal, oversight, administrative, and accounting services. The funds pay FAF Advisors administration fees, which are calculated daily and paid monthly, equal to each fund’s pro rata share of an amount equal, on an annual basis, to 0.25% of the aggregate average daily net assets of all open-end mutual funds in the First American Family of Funds up to $8 billion, 0.235% on the next $17 billion of the aggregate average daily net assets, 0.22% on the next $25 billion of the aggregate average daily net assets, and 0.20% of the aggregate average daily net assets in excess of $50 billion. All fees paid to the sub-administrator are paid from the administration fee. In addition to these fees, the funds may reimburse FAF Advisors and the sub-administrator for any out-of-pocket expenses incurred in providing administration services. | ||
SUB-ADVISORY FEES – J.P. Morgan Investment Management Inc. (“JP Morgan”) serves as investment sub-advisor to the International Fund pursuant to a sub-advisory agreement with FAF Advisors. For the services under its sub-advisory agreement with FAF Advisors, JP Morgan is paid a monthly fee by FAF Advisors equal, on an annual basis, to 0.34% of the first $100 million of the fund’s average daily net assets, 0.30% of the next $250 million of the fund’s average daily net assets, 0.24% of the next $1.25 billion of the fund’s average daily net assets, and 0.22% of the fund’s average daily net assets in excess of $1.60 billion. |
Altrinsic Global Advisors, LLC (“Altrinsic”), Hansberger Global Investors, Inc. (“HGI”), and Lazard Asset Management LLC (“Lazard”) each serve as investment sub-advisor to the International Select Fund pursuant to separate sub-advisory agreements with FAF Advisors. Each sub-advisor has discretion to select portfolio securities for its portion of the fund. FAF Advisors pays monthly fees to Altrinsic, HGI, and Lazard for the services provided under their respective sub-advisory agreements with FAF Advisors. |
TRANSFER AGENT FEES – USBFS serves as the funds’ transfer agent pursuant to a transfer agent agreement with FAIF. The funds are charged transfer agent fees based on a per shareholder account basis, subject to a minimum fee per share class. These fees are charged to each fund based on the number of accounts within that fund. In addition to these fees, the funds may reimburse USBFS for out-of-pocket expenses incurred in providing transfer agent services. | ||
CUSTODIAN FEES – U.S. Bank serves as the custodian for each fund other than International Fund and International Select Fund pursuant to a custodian agreement with FAIF. The fee for each fund (except International Fund and International Select Fund) is equal to an annual rate of 0.005% of average daily net assets. State Street Bank (“SSB”) serves as the custodian for International Fund and International Select Fund pursuant to a custodian agreement with FAIF. The International Fund and International Select Fund pay SSB various asset-based fees and transaction charges based on the issuer’s country. All fees are computed daily and paid monthly. |
Under the custodian agreements, interest earned on uninvested cash balances is used to reduce a portion of each fund’s custodian expenses. The International Fund and International Select Fund have also entered into agreements with SSB to receive certain credits to reduce the amount of custody fees incurred. These credits, if any, are disclosed as “Indirect payments from custodian” in the Statement of Operations. Conversely, the custodians charge a fee for any cash overdrafts incurred, which increases the fund’s custodian expenses. | ||
For the fiscal period ended October 31, 2007, custodian fees were increased as a result of overdrafts and decreased as a result of interest earned (and other |
First American Funds 2007 Annual Report 131
Table of Contents
Notes to Financial Statements October 31, 2007, all dollars and shares are rounded to thousands (000)
custodian credits for International Fund and International Select Fund) as follows: |
Fund | Increased | Decreased | ||||||
Real Estate Securities Fund | $ | 4 | $ | 3 | ||||
International Fund | — | 496 | ||||||
International Select Fund | — | 47 | ||||||
Small Cap Growth Opportunities Fund | — | 9 | ||||||
Small Cap Select Fund | 3 | 13 | ||||||
Small Cap Value Fund | 1 | 5 | ||||||
Small-Mid Cap Core Fund | 2 | 1 | ||||||
Mid Cap Growth Opportunities Fund | — | 9 | ||||||
Mid Cap Value Fund | — | 9 | ||||||
Large Cap Growth Opportunities Fund | 22 | 4 | ||||||
Large Cap Select Fund | 8 | 1 | ||||||
Large Cap Value Fund | 3 | 4 | ||||||
Balanced Fund | — | 4 | ||||||
Equity Income Fund | 1 | 1 | ||||||
DISTRIBUTION AND SHAREHOLDER SERVICING FEES – Quasar Distributors, LLC (“Quasar”), a subsidiary of U.S. Bancorp, serves as distributor of the funds pursuant to a distribution agreement with FAIF. Under the distribution agreement, and pursuant to a plan adopted by each fund under rule 12b-1 of the Investment Company Act, each fund pays Quasar a monthly distribution and/or shareholder servicing fee equal to an annual rate of 0.25%, 1.00%, 1.00%, and 0.50% of each fund’s average daily net assets attributable to Class A shares, Class B shares, Class C shares, and Class R shares, respectively. No distribution or shareholder servicing fees are paid by Class Y shares. These fees may be used by Quasar to provide compensation for sales support, distribution activities, and/or shareholder servicing activities. |
Under these distribution and shareholder servicing agreements, the following amounts were retained by affiliates of FAF Advisors for the fiscal period ended October 31, 2007: |
Fund | ||||
Real Estate Securities Fund | $ | 330 | ||
International Fund | 87 | |||
International Select Fund | 3 | |||
Small Cap Growth Opportunities Fund | 116 | |||
Small Cap Select Fund | 380 | |||
Small Cap Value Fund | 103 | |||
Small-Mid Cap Core Fund | 52 | |||
Mid Cap Growth Opportunities Fund | 518 | |||
Mid Cap Value Fund | 240 | |||
Large Cap Growth Opportunities Fund | 190 | |||
Large Cap Select Fund | 15 | |||
Large Cap Value Fund | 202 | |||
Balanced Fund | 248 | |||
Equity Income Fund | 419 | |||
OTHER EXPENSES – In addition to investment advisory fees, administration fees, transfer agent fees, custodian fees, and distribution and shareholder servicing fees, each fund is responsible for paying other operating expenses, including: legal, auditing, registration fees, postage and printing of shareholder reports, fees and expenses of independent directors, insurance, and other miscellaneous expenses. For the fiscal year ended October 31, 2007, legal fees and expenses of $75 were paid to a law firm of which an Assistant Secretary of the funds is a partner. | ||
CONTINGENT DEFERRED SALES CHARGES – A contingent deferred sales charge (“CDSC”) is imposed on redemptions made in the Class B shares. The CDSC varies depending on the number of years from time of payment for the purchase of Class B shares until the redemption of such shares. Class B shares automatically convert to Class A shares after eight years. |
CDSC as a Percentage | ||||||
of Dollar Amount | ||||||
Year Since Purchase | Subject to Charge | |||||
First | 5.00 | % | ||||
Second | 5.00 | |||||
Third | 4.00 | |||||
Fourth | 3.00 | |||||
Fifth | 2.00 | |||||
Sixth | 1.00 | |||||
Seventh | — | |||||
Eighth | — | |||||
A CDSC of 1.00% is imposed on redemptions made in Class C shares for the first 12 months. | ||
The CDSC for Class B shares and Class C shares is imposed on the value of the purchased shares or the value at the time of redemption, whichever is less. | ||
For the fiscal period ended October 31, 2007, total front-end sales charges and CDSCs retained by affiliates of FAF Advisors for distributing the funds’ shares were as follows: |
Fund | ||||
Real Estate Securities Fund | $ | 333 | ||
International Fund | 81 | |||
International Select Fund | 21 | |||
Small Cap Growth Opportunities Fund | 40 | |||
Small Cap Select Fund | 412 | |||
Small Cap Value Fund | 55 | |||
Small-Mid Cap Core Fund | 25 | |||
Mid Cap Growth Opportunities Fund | 188 | |||
Mid Cap Value Fund | 162 | |||
Large Cap Growth Opportunities Fund | 67 | |||
Large Cap Select Fund | 16 | |||
Large Cap Value Fund | 59 | |||
Balanced Fund | 58 | |||
Equity Income Fund | 155 | |||
132 First American Funds 2007 Annual Report
Table of Contents
4 > | Capital Share Transactions |
FAIF has 358 billion shares of $0.0001 par value capital stock authorized. Capital share transactions for the funds were as follows: |
Real Estate | International | International | |||||||||||||||||||||||
Securities Fund | Fund | Select Fund | |||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | 12/21/06* to | |||||||||||||||||||||
10/31/07 | 10/31/06 | 10/31/07 | 10/31/06 | 10/31/07 | |||||||||||||||||||||
Class A: | |||||||||||||||||||||||||
Shares issued | 4,146 | 4,130 | 753 | 944 | 295 | ||||||||||||||||||||
Shares issued in lieu of cash distributions | 921 | 997 | 85 | 37 | — | ||||||||||||||||||||
Shares redeemed | (5,215 | ) | (2,737 | ) | (1,079 | ) | (1,467 | ) | (29 | ) | |||||||||||||||
Total Class A transactions | (148 | ) | 2,390 | (241 | ) | (486 | ) | 266 | |||||||||||||||||
Class B: | |||||||||||||||||||||||||
Shares issued | 119 | 100 | 40 | 90 | 27 | ||||||||||||||||||||
Shares issued in lieu of cash distributions | 30 | 27 | 10 | 2 | — | ||||||||||||||||||||
Shares redeemed | (114 | ) | (57 | ) | (152 | ) | (165 | ) | — | ||||||||||||||||
Total Class B transactions | 35 | 70 | (102 | ) | (73 | ) | 27 | ||||||||||||||||||
Class C: | |||||||||||||||||||||||||
Shares issued | 659 | 295 | 59 | 69 | 25 | ||||||||||||||||||||
Shares issued in lieu of cash distributions | 49 | 31 | 10 | 2 | — | ||||||||||||||||||||
Shares redeemed | (398 | ) | (77 | ) | (200 | ) | (157 | ) | (1 | ) | |||||||||||||||
Total Class C transactions | 310 | 249 | (131 | ) | (86 | ) | 24 | ||||||||||||||||||
Class R: | |||||||||||||||||||||||||
Shares issued | 911 | 421 | — | — | 1 | ||||||||||||||||||||
Shares issued in lieu of cash distributions | 46 | 5 | — | — | — | ||||||||||||||||||||
Shares redeemed | (546 | ) | (76 | ) | — | — | — | ||||||||||||||||||
Total Class R transactions | 411 | 350 | — | — | 1 | ||||||||||||||||||||
Class Y: | |||||||||||||||||||||||||
Shares issued | 7,923 | 7,940 | 10,532 | 16,815 | 30,297 | ||||||||||||||||||||
Shares issued in lieu of cash distributions | 1,720 | 1,946 | 1,920 | 865 | 5 | ||||||||||||||||||||
Shares redeemed | (11,037 | ) | (4,939 | ) | (32,299 | ) | (26,402 | ) | (2,105 | ) | |||||||||||||||
Total Class Y transactions | (1,394 | ) | 4,947 | (19,847 | ) | (8,722 | ) | 28,197 | |||||||||||||||||
Net increase (decrease) in capital shares | (786 | ) | 8,006 | (20,321 | ) | (9,367 | ) | 28,515 | |||||||||||||||||
* | Commencement of operations. |
Small Cap Growth | Small Cap | Small Cap | |||||||||||||||||||||||||||
Opportunities Fund | Select Fund | Value Fund | |||||||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||||||||||
10/31/07 | 10/31/06 | 10/31/07 | 10/31/06 | 10/31/07 | 10/31/06 | ||||||||||||||||||||||||
Class A: | |||||||||||||||||||||||||||||
Shares issued | 2,066 | 4,199 | 12,088 | 9,110 | 680 | 865 | |||||||||||||||||||||||
Shares issued in lieu of cash distributions | 449 | 735 | 1,842 | 1,595 | 670 | 769 | |||||||||||||||||||||||
Shares redeemed | (2,397 | ) | (1,598 | ) | (11,692 | ) | (2,829 | ) | (1,160 | ) | (711 | ) | |||||||||||||||||
Total Class A transactions | 118 | 3,336 | 2,238 | 7,876 | 190 | 923 | |||||||||||||||||||||||
Class B: | |||||||||||||||||||||||||||||
Shares issued | 12 | 27 | 171 | 169 | 15 | 32 | |||||||||||||||||||||||
Shares issued in lieu of cash distributions | 23 | 84 | 203 | 260 | 103 | 167 | |||||||||||||||||||||||
Shares redeemed | (156 | ) | (149 | ) | (358 | ) | (245 | ) | (161 | ) | (222 | ) | |||||||||||||||||
Total Class B transactions | (121 | ) | (38 | ) | 16 | 184 | (43 | ) | (23 | ) | |||||||||||||||||||
Class C: | |||||||||||||||||||||||||||||
Shares issued | 42 | 50 | 1,625 | 568 | 90 | 61 | |||||||||||||||||||||||
Shares issued in lieu of cash distributions | 8 | 30 | 213 | 217 | 61 | 85 | |||||||||||||||||||||||
Shares redeemed | (73 | ) | (78 | ) | (520 | ) | (385 | ) | (133 | ) | (133 | ) | |||||||||||||||||
Total Class C transactions | (23 | ) | 2 | 1,318 | 400 | 18 | 13 | ||||||||||||||||||||||
Class R: | |||||||||||||||||||||||||||||
Shares issued | 22 | 68 | 2,900 | 176 | 193 | 133 | |||||||||||||||||||||||
Shares issued in lieu of cash distributions | 4 | — | 43 | 6 | 24 | 1 | |||||||||||||||||||||||
Shares redeemed | (67 | ) | (3 | ) | (369 | ) | (24 | ) | (94 | ) | (13 | ) | |||||||||||||||||
Total Class R transactions | (41 | ) | 65 | 2,574 | 158 | 123 | 121 | ||||||||||||||||||||||
Class Y: | |||||||||||||||||||||||||||||
Shares issued | 688 | 1,850 | 13,513 | 8,486 | 2,860 | 3,416 | |||||||||||||||||||||||
Shares issued in lieu of cash distributions | 368 | 1,388 | 4,956 | 7,353 | 3,430 | 4,769 | |||||||||||||||||||||||
Shares redeemed | (2,772 | ) | (3,669 | ) | (18,273 | ) | (12,717 | ) | (7,072 | ) | (6,538 | ) | |||||||||||||||||
Total Class Y transactions | (1,716 | ) | (431 | ) | 196 | 3,122 | (782 | ) | 1,647 | ||||||||||||||||||||
Net increase (decrease) in capital shares | (1,783 | ) | 2,934 | 6,342 | 11,740 | (494 | ) | 2,681 | |||||||||||||||||||||
First American Funds 2007 Annual Report 133
Table of Contents
Notes to Financial Statements October 31, 2007, all dollars and shares are rounded to thousands (000)
Small-Mid Cap | Mid Cap Growth | Mid Cap | |||||||||||||||||||||||||||
Core Fund | Opportunities Fund | Value Fund | |||||||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||||||||||
10/31/07 | 10/31/06 | 10/31/07 | 10/31/06 | 10/31/07 | 10/31/06 | ||||||||||||||||||||||||
Class A: | |||||||||||||||||||||||||||||
Shares issued | 550 | 1,273 | 2,690 | 3,381 | 5,728 | 4,315 | |||||||||||||||||||||||
Shares issued in lieu of cash distributions | — | — | 747 | 775 | 541 | 155 | |||||||||||||||||||||||
Shares redeemed | (1,238 | ) | (1,315 | ) | (2,071 | ) | (4,096 | ) | (3,006 | ) | (929 | ) | |||||||||||||||||
Total Class A transactions | (688 | ) | (42 | ) | 1,366 | 60 | 3,263 | 3,541 | |||||||||||||||||||||
Class B: | |||||||||||||||||||||||||||||
Shares issued | 33 | 52 | 49 | 63 | 48 | 73 | |||||||||||||||||||||||
Shares issued in lieu of cash distributions | — | — | 40 | 42 | 21 | 21 | |||||||||||||||||||||||
Shares redeemed | (327 | ) | (435 | ) | (123 | ) | (79 | ) | (90 | ) | (157 | ) | |||||||||||||||||
Total Class B transactions | (294 | ) | (383 | ) | (34 | ) | 26 | (21 | ) | (63 | ) | ||||||||||||||||||
Class C: | |||||||||||||||||||||||||||||
Shares issued | 123 | 231 | 241 | 240 | 377 | 460 | |||||||||||||||||||||||
Shares issued in lieu of cash distributions | — | — | 47 | 45 | 43 | 17 | |||||||||||||||||||||||
Shares redeemed | (155 | ) | (235 | ) | (125 | ) | (183 | ) | (152 | ) | (95 | ) | |||||||||||||||||
Total Class C transactions | (32 | ) | (4 | ) | 163 | 102 | 268 | 382 | |||||||||||||||||||||
Class R1: | |||||||||||||||||||||||||||||
Shares issued | — | — | 318 | 338 | 847 | 685 | |||||||||||||||||||||||
Shares issued in lieu of cash distributions | — | — | 43 | 27 | 47 | 4 | |||||||||||||||||||||||
Shares redeemed | — | — | (155 | ) | (66 | ) | (488 | ) | (55 | ) | |||||||||||||||||||
Total Class R transactions | — | — | 206 | 299 | 406 | 634 | |||||||||||||||||||||||
Class Y: | |||||||||||||||||||||||||||||
Shares issued | 2,627 | 5,352 | 4,461 | 4,107 | 3,775 | 4,891 | |||||||||||||||||||||||
Shares issued in lieu of cash distributions | 4 | — | 1,889 | 2,385 | 1,321 | 1,130 | |||||||||||||||||||||||
Shares redeemed | (2,229 | ) | (2,340 | ) | (4,936 | ) | (7,045 | ) | (4,689 | ) | (3,614 | ) | |||||||||||||||||
Total Class Y transactions | 402 | 3,012 | 1,414 | (553 | ) | 407 | 2,407 | ||||||||||||||||||||||
Net increase (decrease) in capital shares | (612 | ) | 2,583 | 3,115 | (66 | ) | 4,323 | 6,901 | |||||||||||||||||||||
1 | Class R is not offered by the Small-Mid Cap Core Fund. |
Large Cap Growth | Large Cap | Large Cap | |||||||||||||||||||||||||||
Opportunities Fund | Select Fund | Value Fund | |||||||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||||||||||
10/31/07 | 10/31/06 | 10/31/07 | 10/31/06 | 10/31/07 | 10/31/06 | ||||||||||||||||||||||||
Class A: | |||||||||||||||||||||||||||||
Shares issued | 413 | 459 | 121 | 345 | 393 | 522 | |||||||||||||||||||||||
Shares issued in lieu of cash distributions | 33 | — | 7 | 10 | 443 | 237 | |||||||||||||||||||||||
Shares redeemed | (837 | ) | (1,174 | ) | (130 | ) | (281 | ) | (1,045 | ) | (1,595 | ) | |||||||||||||||||
Total Class A transactions | (391 | ) | (715 | ) | (2 | ) | 74 | (209 | ) | (836 | ) | ||||||||||||||||||
Class B: | |||||||||||||||||||||||||||||
Shares issued | 29 | 27 | 4 | 14 | 21 | 31 | |||||||||||||||||||||||
Shares issued in lieu of cash distributions | 6 | — | 1 | 1 | 37 | 25 | |||||||||||||||||||||||
Shares redeemed | (183 | ) | (265 | ) | (8 | ) | (13 | ) | (150 | ) | (323 | ) | |||||||||||||||||
Total Class B transactions | (148 | ) | (238 | ) | (3 | ) | 2 | (92 | ) | (267 | ) | ||||||||||||||||||
Class C: | |||||||||||||||||||||||||||||
Shares issued | 40 | 19 | 5 | 5 | 38 | 26 | |||||||||||||||||||||||
Shares issued in lieu of cash distributions | 3 | — | — | 1 | 18 | 10 | |||||||||||||||||||||||
Shares redeemed | (93 | ) | (120 | ) | (3 | ) | (2 | ) | (87 | ) | (78 | ) | |||||||||||||||||
Total Class C transactions | (50 | ) | (101 | ) | 2 | 4 | (31 | ) | (42 | ) | |||||||||||||||||||
Class R: | |||||||||||||||||||||||||||||
Shares issued | 4 | 9 | 1 | 10 | 2 | 7 | |||||||||||||||||||||||
Shares issued in lieu of cash distributions | — | — | — | — | 1 | — | |||||||||||||||||||||||
Shares redeemed | (7 | ) | (1 | ) | (7 | ) | (2 | ) | (2 | ) | — | ||||||||||||||||||
Total Class R transactions | (3 | ) | 8 | (6 | ) | 8 | 1 | 7 | |||||||||||||||||||||
Class Y: | |||||||||||||||||||||||||||||
Shares issued | 2,632 | 4,473 | 3,283 | 12,008 | 2,404 | 4,621 | |||||||||||||||||||||||
Shares issued in lieu of cash distributions | 158 | — | 234 | 515 | 2,150 | 1,056 | |||||||||||||||||||||||
Shares redeemed | (8,796 | ) | (8,081 | ) | (8,527 | ) | (5,046 | ) | (9,744 | ) | (6,211 | ) | |||||||||||||||||
Total Class Y transactions | (6,006 | ) | (3,608 | ) | (5,010 | ) | 7,477 | (5,190 | ) | (534 | ) | ||||||||||||||||||
Net increase (decrease) in capital shares | (6,598 | ) | (4,654 | ) | (5,019 | ) | 7,565 | (5,521 | ) | (1,672 | ) | ||||||||||||||||||
134 First American Funds 2007 Annual Report
Table of Contents
Balanced | Equity | |||||||||||||||||||
Fund | Income Fund | |||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||
10/31/07 | 10/31/06 | 10/31/07 | 10/31/06 | |||||||||||||||||
Class A: | ||||||||||||||||||||
Shares issued | 631 | 877 | 931 | 876 | ||||||||||||||||
Shares issued in lieu of cash distributions | 769 | 154 | 1,124 | 220 | ||||||||||||||||
Shares redeemed | (1,737 | ) | (2,330 | ) | (1,942 | ) | (2,869 | ) | ||||||||||||
Total Class A transactions | (337 | ) | (1,299 | ) | 113 | (1,773 | ) | |||||||||||||
Class B: | ||||||||||||||||||||
Shares issued | 25 | 34 | 79 | 67 | ||||||||||||||||
Shares issued in lieu of cash distributions | 86 | 12 | 125 | 20 | ||||||||||||||||
Shares redeemed | (580 | ) | (648 | ) | (423 | ) | (375 | ) | ||||||||||||
Total Class B transactions | (469 | ) | (602 | ) | (219 | ) | (288 | ) | ||||||||||||
Class C: | ||||||||||||||||||||
Shares issued | 34 | 44 | 51 | 63 | ||||||||||||||||
Shares issued in lieu of cash distributions | 19 | 2 | 68 | 14 | ||||||||||||||||
Shares redeemed | (76 | ) | (226 | ) | (262 | ) | (492 | ) | ||||||||||||
Total Class C transactions | (23 | ) | (180 | ) | (143 | ) | (415 | ) | ||||||||||||
Class R: | ||||||||||||||||||||
Shares issued | 2 | 3 | 39 | 8 | ||||||||||||||||
Shares issued in lieu of cash distributions | — | — | 4 | — | ||||||||||||||||
Shares redeemed | (1 | ) | (1 | ) | (18 | ) | (7 | ) | ||||||||||||
Total Class R transactions | 1 | 2 | 25 | 1 | ||||||||||||||||
Class Y: | ||||||||||||||||||||
Shares issued | 1,971 | 3,312 | 5,150 | 5,379 | ||||||||||||||||
Shares issued in lieu of cash distributions | 1,790 | 393 | 3,727 | 637 | ||||||||||||||||
Shares redeemed | (6,272 | ) | (6,111 | ) | (15,349 | ) | (20,386 | ) | ||||||||||||
Total Class Y transactions | (2,511 | ) | (2,406 | ) | (6,472 | ) | (14,370 | ) | ||||||||||||
Net decrease in capital shares | (3,339 | ) | (4,485 | ) | (6,696 | ) | (16,845 | ) | ||||||||||||
Class B shares converted to Class A shares (reflected above as Class A shares issued and Class B shares redeemed) during the fiscal period ended October 31, 2007 and the fiscal year ended October 31, 2006, were as follows: |
Fiscal | ||||||||
Period | Year | |||||||
Ended | Ended | |||||||
Fund | 10/31/07 | 10/31/06 | ||||||
Real Estate Securities Fund | 13 | 13 | ||||||
International Fund | 47 | 41 | ||||||
International Select Fund | — | N/A | ||||||
Small Cap Growth Opportunities Fund | 66 | 43 | ||||||
Small Cap Select Fund | 125 | 66 | ||||||
Small Cap Value Fund | 39 | 88 | ||||||
Small-Mid Cap Core Fund | 106 | 143 | ||||||
Mid Cap Growth Opportunities Fund | 71 | 19 | ||||||
Mid Cap Value Fund | 34 | 78 | ||||||
Large Cap Growth Opportunities Fund | 99 | 125 | ||||||
Large Cap Select Fund | 1 | 1 | ||||||
Large Cap Value Fund | 76 | 185 | ||||||
Balanced Fund | 407 | 331 | ||||||
Equity Income Fund | 223 | 110 | ||||||
N/A = Not Applicable |
5 > | Investment Security Transactions |
During the fiscal year ended October 31, 2007, purchases of securities and proceeds from sales of securities, other than temporary investments in short-term securities, were as follows: |
U.S. Government | Other Investment | |||||||||||||||
Securities | Securities | |||||||||||||||
Fund | Purchases | Sales | Purchases | Sales | ||||||||||||
Real Estate Securities Fund | $ | — | $ | — | $ | 2,067,600 | $ | 2,154,367 | ||||||||
International Fund | — | — | 246,356 | 595,061 | ||||||||||||
International Select Fund | — | — | 433,040 | 77,421 | ||||||||||||
Small Cap Growth Opportunities Fund | — | — | 364,136 | 425,677 | ||||||||||||
Small Cap Select Fund | — | — | 1,017,795 | 1,064,561 | ||||||||||||
Small Cap Value Fund | — | — | 251,580 | 311,252 | ||||||||||||
Small-Mid Cap Core Fund | — | — | 176,100 | 181,572 | ||||||||||||
Mid Cap Growth Opportunities Fund | — | — | 1,675,534 | 1,735,083 | ||||||||||||
Mid Cap Value Fund | — | — | 1,032,391 | 991,288 | ||||||||||||
Large Cap Growth Opportunities Fund | — | — | 847,445 | 1,073,403 | ||||||||||||
Large Cap Select Fund | — | — | 649,529 | 738,634 | ||||||||||||
Large Cap Value Fund | — | — | 719,589 | 896,072 | ||||||||||||
Balanced Fund | 174,789 | 177,350 | 327,640 | 393,629 | ||||||||||||
Equity Income Fund | — | — | 255,087 | 474,219 | ||||||||||||
The aggregate gross unrealized appreciation and depreciation of securities held by the funds and the total cost of securities (including cost of securities purchased |
First American Funds 2007 Annual Report 135
Table of Contents
Notes to Financial Statements October 31, 2007, all dollars and shares are rounded to thousands (000)
with proceeds from securities lending) for federal tax purposes at October 31, 2007, were as follows: |
Aggregate | Aggregate | Federal | ||||||||||||||
Gross | Gross | Income | ||||||||||||||
Fund | Appreciation | Depreciation | Net | Tax Cost | ||||||||||||
Real Estate Securities Fund | $ | 173,685 | $ | (17,405 | ) | $ | 156,280 | $ | 1,155,570 | |||||||
International Fund | 598,374 | (21,181 | ) | 577,193 | 1,422,854 | |||||||||||
International Select Fund | 46,900 | (9,661 | ) | 37,239 | 307,242 | |||||||||||
Small Cap Growth Opportunities Fund | 41,521 | (15,548 | ) | 25,973 | 430,972 | |||||||||||
Small Cap Select Fund | 151,321 | (64,287 | ) | 87,034 | 1,421,418 | |||||||||||
Small Cap Value Fund | 53,962 | (23,522 | ) | 30,440 | 521,965 | |||||||||||
Small-Mid Cap Core Fund | 15,188 | (3,993 | ) | 11,195 | 150,438 | |||||||||||
Mid Cap Growth Opportunities Fund | 511,288 | (62,112 | ) | 449,176 | 2,238,844 | |||||||||||
Mid Cap Value Fund | 197,188 | (33,215 | ) | 163,973 | 1,292,995 | |||||||||||
Large Cap Growth Opportunities Fund | 200,864 | (9,084 | ) | 191,780 | 856,925 | |||||||||||
Large Cap Select Fund | 65,060 | (15,423 | ) | 49,637 | 509,689 | |||||||||||
Large Cap Value Fund | 162,319 | (15,021 | ) | 147,298 | 856,642 | |||||||||||
Balanced Fund | 34,263 | (8,139 | ) | 26,124 | 409,051 | |||||||||||
Equity Income Fund | 439,360 | (13,674 | ) | 425,686 | 976,110 | |||||||||||
The difference between cost for financial statement purposes and federal tax purposes is primarily due to losses deferred from wash sales, investments in limited partnerships and REITs, the amount of gain (loss) recognized for tax purposes due to mark-to-market adjustments on open futures contracts, and the mark-to-market of certain PFICs for tax purposes. |
6 > | Options Written |
Transactions in options written for the fiscal year ended October 31, 2007, were as follows: |
Put Options | Call Options | |||||||||||||||||
Written | Written | |||||||||||||||||
Number | Number | |||||||||||||||||
of | Premium | of | Premium | |||||||||||||||
Balanced Fund | Contracts | Amount | Contracts | Amount | ||||||||||||||
Balance at October 31, 2006 | — | $ | — | — | $ | — | ||||||||||||
Opened | 304 | 78 | 77 | 20 | ||||||||||||||
Expired | — | — | — | — | ||||||||||||||
Closed | (304) | (78) | (36) | (10 | ) | |||||||||||||
Balance at October 31, 2007 | — | — | 41 | 10 | ||||||||||||||
7 > | Sector Risk |
Portfolios that primarily invest in a particular sector may experience greater volatility than portfolios investing in a broad range of industry sectors. Real Estate Securities Fund primarily invests in income-producing common stocks of publicly traded companies engaged in the real estate industry. The real estate industry has been subject to substantial fluctuations and declines on a local, regional, and national basis in the past and that may continue in the future. As of October 31, 2007, Small Cap Growth Opportunities Fund and Large Cap Growth Opportunities Fund each had a significant portion of their assets invested in the information technology sector, which could be more sensitive to short product cycles and aggressive pricing than the technology industry as a whole. As of the same date, International Fund, Small Cap Value Fund, and Large Cap Value Fund had significant portions of their assets invested in the financial sector. The financial sector may be more greatly impacted by the performance of the overall economy, interest rates, competition, and consumer confidence and spending. |
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 of losses pursuant to these contracts and expect the risk of loss to be remote. |
9 > | Redemption-in-Kind Transaction |
On September 13, 2007, $51,656 was redeemed from Small Cap Select Fund as a redemption-in-kind transaction. In this transaction, the fund paid redemption proceeds by distributing a proportionate amount of securities in the fund’s portfolio. Remaining shareholders in the fund did not recognize any additional capital gains from the transaction. |
10 > | Regulatory Settlement Proceeds |
Small Cap Growth Opportunities Fund received $177 from Veras Capital Partners in settlement of administrative proceeds involving findings by the Securities and Exchange Commission of market timing and late trading of mutual funds. The settlement is presented in the fund’s statement of changes in net assets. Neither the fund nor its affiliates were involved in the proceedings. |
11 > | New Accounting Pronouncements |
On July 13, 2006, the Financial Accounting Standards Board (“FASB”) released FASB Interpretation No. 48, “Accounting for Uncertainty in Income Taxes” (“FIN 48”). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented, and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the funds’ tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current period. Adoption of FIN 48 is required for fiscal periods beginning after December 15, 2006, and is to be applied to all open tax periods as of that date. Recent Securities and Exchange Commission guidance allows implementing FIN 48 in fund net asset value calculations as late as the funds’ last net asset value calculation in the |
136 First American Funds 2007 Annual Report
Table of Contents
first required financial statement reporting period. As a result, all of the funds will incorporate FIN 48 in their semiannual report on April 30, 2008. At this time, management is evaluating the implications of FIN 48 and its impact in the Financial Statements has not yet been determined. | ||
In September 2006, the FASB issued Statement on Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value for financial reporting, establishes a framework for measuring fair value, and requires additional disclosures about the use of fair value measurements. FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. As of October 31, 2007, the funds do not believe the adoption of FAS 157 will impact the amounts reported in the financial statements; however, additional disclosures will be required about the inputs used to develop the measurements of fair value and the effect of certain measurements reported in the Statement of Operations for a fiscal period. |
12 > | Subsequent Event |
On November 29, 2007, $1,595 was redeemed from Small Cap Growth Opportunities Fund as a redemption-in-kind transaction. In this transaction, the fund paid redemption proceeds by distributing a proportionate amount of securities in the fund’s portfolio. Remaining shareholders in the fund did not recognize any additional capital gains from the transaction. |
First American Funds 2007 Annual Report 137
Table of Contents
Notice to Shareholders October 31, 2007 (unaudited)
RESULTS OF A SPECIAL MEETING
A special meeting of the shareholders of the International Fund was held on September 27, 2007, for shareholders of record as of August 10, 2007. The shareholders of the fund voted on whether to approve a “manager-of-managers” structure for the fund. The results of the vote at the shareholder meeting held September 27, 2007 were as follows: | |
To authorize a “manager-of-managers” structure for the fund, whereby FAF Advisors, subject to certain conditions, will be able to add or replace sub-advisors to the fund, or materially amend existing sub-advisory agreements, without obtaining shareholder approval (not rounded): |
For | Against | Abstain | ||
2,499,963 | 87,886,069 | 82,686 | ||
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. Please consult your tax advisor for proper treatment of this information. | |
For the fiscal period ended October 31, 2007, each fund has designated long-term capital gains, ordinary income, dividends qualifying for the corporate received deduction, and qualified dividend income with regard to distributions paid during the period as follows: |
Long Term | Ordinary | |||||||||||
Capital Gains | Income | Total Taxable | ||||||||||
Distributions | Distributions | Distributions | ||||||||||
Fund | (Tax Basis) (a) | (Tax Basis) (a) | (Tax Basis) | |||||||||
Real Estate Securities Fund | 30 | % | 70 | % | 100 | % | ||||||
International Fund (b) | 62 | 38 | 100 | |||||||||
International Select Fund (b) | 0 | 100 | 100 | |||||||||
Small Cap Growth Opportunities Fund | 12 | 88 | 100 | |||||||||
Small Cap Select Fund | 56 | 44 | 100 | |||||||||
Small Cap Value Fund | 66 | 34 | 100 | |||||||||
Small-Mid Cap Core Fund | 0 | 100 | 100 | |||||||||
Mid Cap Growth Opportunities Fund | 100 | 0 | 100 | |||||||||
Mid Cap Value Fund | 58 | 42 | 100 | |||||||||
Large Cap Growth Opportunities Fund | 88 | 12 | 100 | |||||||||
Large Cap Select Fund | 78 | 22 | 100 | |||||||||
Large Cap Value Fund | 64 | 36 | 100 | |||||||||
Balanced Fund | 73 | 27 | 100 | |||||||||
Equity Income Fund | 79 | 21 | 100 | |||||||||
(a) | Based on a percentage of the fund’s total distributions. |
(b) | The International and International Select Fund have elected to pass through to shareholders foreign taxes under Section 853 of the Internal Revenue Code. Foreign taxes paid for the funds were $4,021,401 and $367,162, respectively, and foreign source income for the funds was $44,485,297 and $3,925,313, respectively. |
138 First American Funds 2007 Annual Report
Table of Contents
Shareholder Notification of Federal Tax Status:
Each fund has designated the following percentages of the ordinary income distributions during the fiscal period ended October 31, 2007 as dividends qualifying for the dividends received deduction available to corporate shareholders: |
Real Estate Securities Fund | 0.88 | % | ||
International Fund | 0.00 | |||
International Select Fund | 0.00 | |||
Small Cap Growth Opportunities Fund | 2.79 | |||
Small Cap Select Fund | 6.14 | |||
Small Cap Value Fund | 18.02 | |||
Small-Mid Cap Core Fund | 86.69 | |||
Mid Cap Growth Opportunities Fund | 0.00 | |||
Mid Cap Value Fund | 43.07 | |||
Large Cap Growth Opportunities Fund | 100.00 | |||
Large Cap Select Fund | 19.83 | |||
Large Cap Value Fund | 55.93 | |||
Balanced Fund | 18.85 | |||
Equity Income Fund | 100.00 | |||
In addition, each fund has designated the following percentages of the ordinary income distributions from net investment income during the fiscal period ended October 31, 2007 as qualified dividend income available to individual shareholders under the Jobs and Growth Tax Relief Reconciliation Act of 2003: |
Real Estate Securities Fund | 1.32 | % | ||
International Fund | 100.00 | |||
International Select Fund | 51.34 | |||
Small Cap Growth Opportunities Fund | 5.96 | |||
Small Cap Select Fund | 6.41 | |||
Small Cap Value Fund | 18.58 | |||
Small-Mid Cap Core Fund | 86.69 | |||
Mid Cap Growth Opportunities Fund | 0.00 | |||
Mid Cap Value Fund | 44.23 | |||
Large Cap Growth Opportunities Fund | 100.00 | |||
Large Cap Select Fund | 20.21 | |||
Large Cap Value Fund | 80.45 | |||
Balanced Fund | 19.83 | |||
Equity Income Fund | 100.00 | |||
Additional Information Applicable to Foreign Shareholders Only:
The percentage of ordinary income distributions that are designated as interest-related dividends under Internal Revenue Code Section 871(k)(1)(C) for each fund were as follows: |
Fund | ||||
Real Estate Securities Fund | 0.35 | % | ||
International Fund | 39.90 | |||
International Select Fund | 14.25 | |||
Small Cap Growth Opportunities Fund | 0.59 | |||
Small Cap Select Fund | 0.60 | |||
Small Cap Value Fund | 0.73 | |||
Small-Mid Cap Core Fund | 0.00 | |||
Mid Cap Growth Opportunities Fund | 0.00 | |||
Mid Cap Value Fund | 1.71 | |||
Large Cap Growth Opportunities Fund | 6.97 | |||
Large Cap Select Fund | 0.88 | |||
Large Cap Value Fund | 0.77 | |||
Balanced Fund | 19.35 | |||
Equity Income Fund | 0.59 | |||
First American Funds 2007 Annual Report 139
Table of Contents
Notice to Shareholders October 31, 2007 (unaudited)
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 | ||||
Real Estate Securities Fund | 80.95 | % | ||
International Fund | 0.00 | |||
International Select Fund | 0.00 | |||
Small Cap Growth Opportunities Fund | 100.00 | |||
Small Cap Select Fund | 100.00 | |||
Small Cap Value Fund | 93.74 | |||
Small-Mid Cap Core Fund | 0.00 | |||
Mid Cap Growth Opportunities Fund | 0.00 | |||
Mid Cap Value Fund | 78.01 | |||
Large Cap Growth Opportunities Fund | 0.00 | |||
Large Cap Select Fund | 0.00 | |||
Large Cap Value Fund | 62.31 | |||
Balanced Fund | 24.11 | |||
Equity Income Fund | 12.57 | |||
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 www.firstamericanfunds.com; and (3) on the U.S. Securities and Exchange Commission’s website at 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 Securities and Exchange Commission’s website at www.sec.gov. In addition, you may review and copy the funds’ Forms N-Q at the Commission’s Public Reference Room in Washington, D.C. You may obtain information on the operation of the Public Reference Room by calling 1-800-SEC-0330. |
QUARTERLY PORTFOLIO HOLDINGS
Each fund will make portfolio holdings information publicly available by posting the information at www.firstamericanfunds.com on a quarterly basis. The funds will attempt to post such information within 10 business days of the calendar quarter-end. |
APPROVAL OF THE FUNDS’ INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS
The Board of Directors of the Funds (the “Board”), which is comprised entirely of independent directors, oversees the management of each Fund and, as required by law, determines annually whether to renew the Funds’ advisory agreement with FAF Advisors, Inc. (“FAF Advisors”). In addition to determining whether to renew the Agreement with FAF Advisors, the Board also is responsible for determining whether to approve sub-advisory agreements for the Funds. | |
At a meeting on May 1-3, 2007, the Board considered information relating to the Funds’ investment advisory agreement with FAF Advisors (the “Agreement”) and, with respect to the International Fund, information relating to the sub-advisory agreement between FAF Advisors and J.P. Morgan Investment Management Inc. (“JP Morgan”) (the “Sub-Advisory Agreement”). In advance of the meeting, the Board received materials relating to the Agreement and the Sub-Advisory 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, 2007, the Board concluded its consideration of and approved the Agreement and the Sub-Advisory Agreement through June 30, 2008. | |
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, with the exception of International Select Fund. (The Board had previously considered and approved the Agreement with respect to International Select Fund at a meeting of the Board held on December 5, 2006, just prior to the Fund’s commencement of operation on December 21, 2006). 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 |
140 First American Funds 2007 Annual Report
Table of Contents
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 and the Sub-Advisory 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 and the Sub-Advisory 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 and that the Sub-Advisory Agreement is fair and in the interests of the shareholders of the International Fund. In reaching its conclusions, the Board considered the following: |
Nature, Quality and Extent of Investment Advisory Services
The Board examined the nature, quality and extent of the services provided by FAF Advisors to each Fund, and the nature, quality and extent of the services provided by JP Morgan to the International Fund. | |
For each Fund other than the International Fund, which is sub-advised by JP Morgan, the Board reviewed FAF Advisors’ key personnel who provide investment management services to the Fund as well as the fact that, under the Agreement, FAF Advisors has the authority and responsibility to make and execute investment decisions for the 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 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. | |
With respect to the International Fund, the Board examined the nature, quality and extent of the services provided by JP Morgan and reviewed JP Morgan’s key personnel who provide investment management services to the Fund. The Board noted that, under the Sub-Advisory Agreement, JP Morgan has the authority and responsibility to make and execute investment decisions for the Fund within the framework of the Fund’s investment policies and restrictions, subject to the supervision of FAF Advisors and review by the Board. The Board further considered that JP Morgan’s duties with respect to the International Fund include investment research and stock selection and adherence to the Fund’s investment policies and restrictions. The Board noted that, under the Agreement, FAF Advisors is responsible for monitoring the performance of JP Morgan as well as various organizations providing services to the International Fund, including the Fund’s distributor, sub-administrator, transfer agent and custodian. Finally, the Board considered FAF Advisors’ representation that the services provided by JP Morgan under the Sub-Advisory Agreement are the type of services customarily provided by investment advisors in the fund industry. | |
The Board considered compliance reports about FAF Advisors and JP Morgan from the Fund’s Chief Compliance Officer (CCO). | |
Based on the foregoing, the Board concluded that (i) each Fund is likely to benefit from the nature, extent and quality of the services provided by FAF Advisors under the Agreement and (ii) the International Fund is likely to benefit from the nature, extent and quality of the services provided by JP Morgan under the Sub-Advisory 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 performance periods considered by the Board ended on January 31, 2007. | |
Balanced Fund. The Board considered that for the three- and five-year periods the Fund outperformed or performed comparably to its benchmark and performance universe though it underperformed both for the one-and ten-year periods. The Board noted it had recently approved an investment policy change to allow investment of a portion of the fixed income component of the Fund in high-yield securities, non-dollar denominated securities and emerging market securities and that such investment policy change will bring the Fund more in line with other funds in its category. The Board concluded that, in light of the Fund’s good relative performance over the three- and five-year periods, and in light of the recent investment policy change, it would be in the interest of the Fund and its shareholders to renew the Agreement. |
First American Funds 2007 Annual Report 141
Table of Contents
Notice to Shareholders October 31, 2007 (unaudited)
Equity Income Fund. The Board considered that the Fund’s performance exceeded that of its benchmark index for the one-, three-, five- and ten-year periods and that it outperformed the median of its performance universe for the one- and ten-year periods though it underperformed that median for the three-and five-year periods. The Board concluded that, in light of the Fund’s strong performance vis-à-vis its benchmark index, and the good, recent performance vis-à-vis its performance universe, it would be in the interest of the Fund and its shareholders to renew the Agreement. | |
International Fund. The Board noted that the Fund has underperformed both its benchmark and its performance universe for the one-, three-, five- and ten-year periods. The Board considered, however, that the Fund’s sub-adviser, JP Morgan, did not begin managing the Fund until December 2004 and that JP Morgan, therefore, is only responsible for the one-year performance record reviewed by the Board. Nevertheless, the Board asked FAF Advisors to present it with recommendations of alternatives to address performance by the end of the year. In light of the foregoing, the Board concluded it would be in the interest of the Fund and its shareholders to renew the Agreement and the Sub-Advisory Agreement and to continue to closely monitor JP Morgan’s performance. | |
Large Cap Growth Opportunities Fund. The Board considered that the Fund outperformed its performance universe for the one-, three- and five-year periods, although the Fund underperformed its performance universe for the ten-year period. While the Board also considered that the Fund underperformed its benchmark for all periods, the Board noted that, so too, had the majority of the funds in the performance universe. The Board concluded that, in light of the Fund’s strong performance vis-à-vis its performance universe, it would be in the interest of the Fund and its shareholders to renew the Agreement. | |
Large Cap Select Fund. The Board considered that the Fund outperformed its performance universe for the three-year period and since inception, though it underperformed its performance universe for the one-year period. The Board also noted that the Fund underperformed the benchmark for the one- and three-year periods. The Board considered FAF Advisors’ assertion that the Fund’s underperformance during the one-year period occurred primarily during the first part of the year while during the last six months of the year the Fund’s performance improved, placing it in the 54th percentile vis-à-vis its performance universe. The Board concluded that, in light of the Fund’s outperformance of the performance universe for the three-year and since inception periods, it would be in the interest of the Fund and its shareholders to renew the Agreement. | |
Large Cap Value Fund. The Board noted that the Fund outperformed its performance universe for the three-year period, although it underperformed the performance universe and its benchmark for the one-, five-and ten-year periods. The Board also noted the Fund’s underperformance of the benchmark for the three-year period. The Board considered, however, the portfolio management transitions that FAF Advisors has instituted during the past two years (ending in October 2006). The Board concluded that, in light of these transitions and the Fund’s strong performance compared to that of its performance universe in the three-year period, it would be in the interest of the Fund and its shareholders to renew the Agreement. | |
Mid Cap Growth Opportunities Fund. The Board considered that the Fund considerably outperformed its performance universe for the one-, three-, five-and ten-year periods and outperformed its benchmark for all periods but the one-year period. 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. | |
Mid Cap Value Fund. The Board considered that the Fund outperformed its performance universe for the three-and five-year periods, though it underperformed its benchmark for those periods. The Board also noted that the Fund underperformed both its benchmark index and its performance universe for the one- and ten-year periods, although the long-term underperformance could be attributed primarily to a former management team. With respect to the Fund’s underperformance for the one-year period, the Board considered the portfolio management transitions that FAF Advisors has instituted during the past 18 months. The Board concluded that, in light of these transitions and the Fund’s strong performance relative to its performance universe for the three- and five-year periods, it would be in the interest of the Fund and its shareholders to renew the Agreement. | |
Real Estate Securities Fund. The Board considered that the Fund outperformed its benchmark index and its performance universe for the one-, three-, five- and ten-year periods. The Board concluded that, in light of this performance, it would be in the interest of the Fund and its shareholders to renew the Agreement. | |
Small Cap Growth Opportunities Fund. The Board noted that the Fund outperformed its performance universe for the five- and ten-year periods, though it underperformed the universe for the one- and three-year periods. The Board also considered that the Fund outperformed its benchmark for the ten-year period, though it underperformed its benchmark for the other periods. The Board noted that FAF Advisors has made certain recent changes to its small-cap growth investment process and that it has added a portfolio manager to the team. The Board also considered that, following the implementation of these recent changes, the Fund’s performance had improved during the one-month and one-year periods ended May 31, |
142 First American Funds 2007 Annual Report
Table of Contents
2007. The Board concluded that, in light of the Fund’s competitive performance over longer periods and the changes implemented by FAF Advisors, it would be in the interest of the Fund and its shareholders to renew the Agreement. | |
Small Cap Select Fund. The Board noted that the Fund outperformed in relation to its benchmark and performance universe for the one-, three-, five-and ten-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. | |
Small Cap Value Fund. The Board noted that the Fund outperformed its performance universe for the one-, three-and five-year periods, though it underperformed its performance universe for the ten-year period and its benchmark for all periods. The Board further considered the Fund’s performance in relation to a universe of small-cap value funds, rather than the universe of small-cap core funds provided by the independent data service. When compared to this small-cap value universe, the Fund also outperformed or performed competitively for the one-, three- and five-year periods. The Board concluded that, in light of the Fund’s competitive performance versus both performance universes, it would be in the interest of the Fund and its shareholders to renew the Agreement. | |
Small-Mid Cap Core Fund. The Board noted that the Fund underperformed its benchmark and its performance universe for the one-, three-, five- and ten-year periods. The Board considered, however, that the Fund has operated as a small-mid cap core fund only since October 3, 2005, and that, therefore, performance comparisons for the three-, five- and ten-year periods are not meaningful. In light of the Fund’s relatively short history of operating as a small-mid cap core fund, the Board concluded 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 considered FAF Advisors’ pricing philosophy. FAF Advisors 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 has committed to waive its investment advisory fees to the extent necessary to maintain the Funds’ total expense ratios at levels generally in line with their respective peer groups. | |
Further detail considered by the Board regarding the advisory fees and expense ratios of each Fund is set forth below: | |
Balanced Fund. The Board considered that, after waivers, the Fund’s advisory fee and expense ratio are 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. | |
Equity Income Fund. The Board considered that the Fund’s advisory fee is close to, though slightly higher than, the peer group median. The Board also noted that the Fund’s total expense ratio is consistent with FAF Advisors’ pricing philosophy. The Board concluded that the advisory fee and expense ratio are reasonable in light of the services provided. | |
International Fund. The Board noted that the Fund’s advisory fee and expense ratio, after waivers, are higher than those of its peer group median. The Board requested that FAF Advisors add a breakpoint to its advisory fee. FAF Advisors agreed to a voluntary 20 basis point advisory fee reduction for asset levels in excess of $2 billion, increasing incrementally to a 50 basis point reduction for assets in excess of $3 billion. | |
Large Cap Growth Opportunities Fund. The Board considered that the Fund’s advisory fee and expense ratio are 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. | |
Large Cap Select Fund. The Board considered that the Fund’s advisory fee and expense ratio are 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. |
First American Funds 2007 Annual Report 143
Table of Contents
Notice to Shareholders October 31, 2007 (unaudited)
Large Cap Value Fund. The Board considered that the Fund’s expense ratio is close to, though slightly higher than, the peer group median. The Board also noted that the Fund’s advisory fee is lower than the peer group median advisory fee after waivers. The Board concluded that the advisory fee and expense ratio are reasonable in light of the services provided. | |
Mid Cap Growth Opportunities Fund. The Board considered that the Fund’s advisory fee and total expense ratio are lower than the peer group median fees after waivers. The Board concluded that the Fund’s advisory fee and expense ratio are reasonable in light of the services provided. | |
Mid Cap Value Fund. The Board considered that the Fund’s advisory fee is lower than the peer group median and that the Fund’s expense ratio is equal to the peer group median. The Board concluded that the Fund’s advisory fee and expense ratio are reasonable in light of the services provided. | |
Real Estate Securities Fund. The Board considered that the Fund’s advisory fee and expense ratio are 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. | |
Small Cap Growth Opportunities Fund. The Board considered that, although the Fund’s advisory fee, after waivers, is higher than the peer group median, the Fund’s expense ratio is 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. | |
Small Cap Select Fund. The Board considered that the Fund’s advisory fee and expense ratio are 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. | |
Small Cap Value Fund. The Board considered that the Fund’s advisory fee and expense ratio are 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. | |
Small-Mid Cap Core Fund. The Board considered that the Fund’s advisory fee, after waivers, is lower than the peer group median. The Board also considered that, although the Fund’s expense ratio, after waivers, is slightly higher that the peer group medians, it is 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. |
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 most Funds do not have advisory fee breakpoints in place, FAF Advisors has committed to waive advisory fees to the extent necessary to keep each Fund’s total expenses generally in line with the median total expenses of a peer group of funds as selected by an independent data service. The 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 interest of each Fund and its shareholders to renew the Agreement. |
Other Benefits to FAF Advisors
In evaluating the benefits that accrue to FAF Advisors through its relationship with the Funds, the Board noted that FAF Advisors and certain of its affiliates serve the Funds in various capacities, including as advisor, administrator, transfer agent, distributor, custodian and securities lending agent, and receive compensation from the Funds in connection with providing services to the Funds. The Board considered that each service provided to the Funds by FAF Advisors or one of its affiliates is pursuant to a written agreement, which the Board evaluates periodically as required by law. | |
The Board also considered FAF Advisors’ use of the Funds’ portfolio brokerage transactions to obtain research. The Board concluded, based on its own review and on representations of FAF Advisors and the CCO, that FAF Advisors’ use of “soft” commission dollars was consistent with regulatory requirements. | |
After full consideration of these factors, the Board concluded that approval of the Agreement was in the interest of each Fund and its shareholders. |
144 First American Funds 2007 Annual Report
Table of Contents
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 February 2004; | First American Funds Complex: twelve registered investment companies, including sixty-two portfolios | None | |||||||
Roger A. Gibson P.O. Box 1329 Minneapolis, MN 55440-1329 (1946) | Director | Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since October 1997 | Director, Charterhouse Group, Inc., a private equity firm, since October 2005; Vice President and Chief Operating Officer, Cargo-United Airlines, from July 2001 through July 2004 | First American Funds Complex: twelve registered investment companies, including sixty-two 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 | First American Funds Complex: twelve registered investment companies, including sixty-two portfolios | None | |||||||
John P. Kayser P.O. Box 1329 Minneapolis, MN 55440-1329 (1949) | Director | Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since October 2006 | Retired; Principal from 1983 to 2004 and Chief Financial Officer and Chief Administrative Officer from 1988 to 2002, William Blair & Company, LLC | First American Funds Complex: twelve registered investment companies, including sixty-two 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 | First American Funds Complex: twelve registered investment companies, including sixty-two portfolios | None | |||||||
Richard K. Riederer P.O. Box 1329 Minneapolis, MN 55440-1329 (1944) | Director | Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since August 2001 | Owner and Chief Executive Officer, RKR Consultants, Inc. and non-profit board member since 2005 | First American Funds Complex: twelve registered investment companies, including sixty-two 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 September 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, Excensus™, LLC, a strategic demographic planning and application development firm since 2001 | First American Funds Complex: twelve registered investment companies, including sixty-two portfolios | None | |||||||
First American Funds 2007 Annual Report 145
Table of Contents
Notice to Shareholders October 31, 2007 (unaudited)
Independent Directors – concluded | ||||||||||||
Other | ||||||||||||
Position(s) | Term of Office | Number of Portfolios | Directorships | |||||||||
Name, Address, and | Held | with 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 | Governance consultant and non-profit board member; former 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 sixty-two portfolios | None | |||||||
James M. Wade P.O. Box 1329 Minneapolis, MN 55440-1329 (1943) | Director | Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since August 2001 | Owner and President, Jim Wade Homes, a homebuilding company | First American Funds Complex: twelve registered investment companies, including sixty-two 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.
146 First American Funds 2007 Annual Report
Table of Contents
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.; Chief Investment Officer of FAF Advisors, Inc., since September 2007 | |||
Jeffery M. Wilson FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1956)* | Vice President – Administration | Re-elected by the Board annually; Vice President — Administration of FAIF since March 2000 | Senior Vice President 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 October 2004 | Mutual Funds 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 | Mutual Funds Assistant Treasurer, FAF Advisors, Inc., since September 2005; prior thereto, Director, Senior Project Manager, FAF Advisors, Inc. from May 2003 to September 2005; prior thereto, 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 March 2005 | Chief Compliance Officer for First American Funds and FAF Advisors, Inc., since March 2005; prior thereto, Chief Compliance Officer, Franklin Advisors, Inc. and Chief Compliance Counsel, Franklin Templeton Investments from March 2004 to March 2005; prior thereto, Vice President, Charles Schwab & Co., Inc. | |||
Jason K. Mitchell FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1976)* | Anti-Money Laundering Officer | Re-elected by the Board annually; Anti-Money Laundering Officer of FAIF since September 2006 | Compliance Manager, FAF Advisors, Inc., since June 2006; prior thereto, Compliance Analyst, FAF Advisors, Inc. from October 2004 to June 2006; prior thereto, Senior Systems Helpdesk Analyst, Wachovia Retirement Services from November 2002 to October 2004; prior thereto, Senior Retirement Plan Specialist, PFPC, Inc. | |||
Kathleen L. Prudhomme FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1953)* | Secretary | Re-elected by the Board annually; Secretary of FAIF since December 2004; prior thereto, Assistant Secretary of FAIF since September 1998 through December 2004 | Deputy General Counsel, FAF Advisors, Inc., since November 2004; prior thereto, Partner, Dorsey & Whitney LLP, a Minneapolis-based law firm | |||
James D. Alt Dorsey & Whitney LLP 50 South Sixth Street Suite 1500, Minneapolis, MN 55402 (1951) | Assistant Secretary | Re-elected by the Board annually; Assistant Secretary of FAIF since December 2004; prior thereto, Secretary of FAIF since June 2002; Assistant Secretary of FAIF from September 1998 through June 2002 | Partner, Dorsey & Whitney LLP, a Minneapolis-based law firm | |||
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 | Counsel, FAF Advisors, Inc., since August 2004; prior thereto, Senior Counsel, Thrivent Financial for Lutherans | |||
James R. Arnold U.S. Bancorp Fund Services, LLC 615 E. Michigan Street Milwaukee, WI 53202 (1957)* | Assistant Secretary | Re-elected by the Board annually; Assistant Secretary of FAIF since June 2003 | Senior Vice President, U.S. Bancorp Fund Services, LLC | |||
Richard J. Ertel FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1967)* | Assistant Secretary | Re-elected by the Board annually; Assistant Secretary of FAIF since June 2006 and from June 2003 through August 2004 | Counsel, FAF Advisors, Inc., since May 2006; prior thereto, Counsel, Ameriprise Financial Services, Inc. from September 2004 to May 2006; prior thereto, Counsel, FAF Advisors, Inc. from May 2003 to August 2004; prior to May 2003, Associate Counsel, Hartford Life and Accident Insurance Company | |||
* | Messrs. Schreier, Wilson, Gariboldi, Lui, Mitchell, 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. Mr. Arnold is an officer of U.S. Bancorp Fund Services, LLC, which is a subsidiary of U.S. Bancorp and which serves as Transfer Agent for FAIF. |
First American Funds 2007 Annual Report 147
Table of Contents
(This page intentionally left blank.)
Table of Contents
Board of Directors First American Investment Funds, Inc.
Virginia Stringer | |
Chairperson of First American Investment Funds, Inc. | |
Governance Consultant; former Owner and President of Strategic Management | |
Resources, Inc. | |
Benjamin Field III | |
Director of First American Investment Funds, Inc. | |
Retired; former Senior Financial Advisor, Senior Vice President, | |
Chief Financial Officer, and Treasurer of Bemis Company, Inc. | |
Roger Gibson | |
Director of First American Investment Funds, Inc. | |
Director of Charterhouse Group, Inc. | |
Victoria Herget | |
Director of First American Investment Funds, Inc. | |
Investment Consultant; former Managing Director of Zurich Scudder Investments | |
John Kayser | |
Director of First American Investment Funds, Inc. | |
Retired; former Principal, Chief Financial Officer, and Chief Administrative Officer of | |
William Blair & Company, LLC | |
Leonard Kedrowski | |
Director of First American Investment Funds, Inc. | |
Owner and President of Executive and Management Consulting, Inc. | |
Richard Riederer | |
Director of First American Investment Funds, Inc. | |
Owner and Chief Executive Officer of RKR Consultants, Inc. | |
Joseph Strauss | |
Director of First American Investment Funds, Inc. | |
Owner and President of Strauss Management Company | |
James Wade | |
Director of First American Investment Funds, Inc. | |
Owner and President of Jim Wade Homes | |
First American Investment Funds’ Board of Directors is comprised entirely of | |
independent directors. |
Table of Contents
![(FIRST AMERICAN FUNDS LOGO)](https://capedge.com/proxy/N-CSR/0000950137-08-000175/c21990faflogo.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 October 31, 2007. 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 |
CUSTODIANS
U.S. Bank National Association | ||
60 Livingston Avenue | ||
St. Paul, Minnesota 55101 | ||
State Street Bank and Trust Company | ||
2 Avenue de Lafayette | ||
Boston, Massachusetts 02111 |
DISTRIBUTOR
Quasar Distributors, LLC | ||
615 East Michigan Street | ||
Milwaukee, Wisconsin 53202 |
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
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 www.firstamericanfunds.com
0153-07 12/2007 AR-EQUITY
Table of Contents
![](https://capedge.com/proxy/N-CSR/0000950137-08-000175/c21990c2199103.gif)
Table of Contents
1 | ||||
2 | ||||
3 | ||||
5 | ||||
6 | ||||
12 | ||||
13 | ||||
14 | ||||
16 | ||||
18 | ||||
24 |
Mutual fund investing involves risk; principal loss is possible. |
First American Funds’ quantitative funds are actively managed using our proprietary macro quant process, which projects individual stock performance based on multiple factors and current economic conditions. Stocks selected using this process could underperform if the current performance of the factors differs from their historic performance. Turnover, expenses, and taxes will be similar to other actively managed funds.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE |
Table of Contents
Message to Shareholders December 10, 2007
Dear Shareholders: | |
We invite you to take a few minutes to review the results of the three-month fiscal period ended October 31, 2007. |
This report includes a complete listing of portfolio holdings and additional fund information. We hope you will find this helpful in monitoring your investment portfolio.
Also, through our website, firstamericanfunds.com, we provide quarterly performance fact sheets on all First American Funds, the economic outlook as viewed by our senior investment officers, and other information about fund investments and portfolio strategies.
Please contact your financial professional if you have questions about First American Funds or contact First American Investor Services at 800.677.FUND.
We appreciate your investment with First American Funds and look forward to serving your financial needs in the future.
Sincerely,
![]() | ![]() | |
Virginia L. Stringer Chairperson of the Board First American Investment Funds, Inc. | Thomas S. Schreier, Jr. President First American Investment Funds, Inc. |
First American Funds 2007 Annual Report 1
Table of Contents
Holding Summaries
The Quantitative Large Cap Core Fund, Quantitative Large Cap Growth Fund, and Quantitative Large Cap Value Fund commenced operations on July 31, 2007. Due to the short fiscal period, performance information is not included.
Quantitative Large Cap Core Fund
Top 10 Holdings as of October 31, 20071 (% of net assets)
Exxon Mobil | 5.2% | |||
Chevron | 3.0 | |||
General Electric | 2.8 | |||
ConocoPhillips | 2.5 | |||
Johnson & Johnson | 2.2 | |||
Procter & Gamble | 2.2 | |||
Walt Disney | 2.1 | |||
Cisco Systems | 1.9 | |||
AT&T | 1.9 | |||
American International Group | 1.8 |
Sector Allocation as of October 31, 20071 (% of net assets)
Information Technology | 17.7% | |||
Financials | 14.8 | |||
Energy | 13.9 | |||
Industrials | 12.5 | |||
Healthcare | 12.1 | |||
Consumer Discretionary | 10.3 | |||
Consumer Staples | 8.7 | |||
Materials | 3.4 | |||
Telecommunication Services | 2.4 | |||
Utilities | 2.2 | |||
Short-Term Investments | 1.8 | |||
Other Assets and Liabilities, Net2 | 0.2 | |||
100.0% |
Quantitative Large Cap Growth Fund
Top 10 Holdings as of October 31, 20071 (% of net assets)
Microsoft | 3.2% | |||
Google, Class A | 2.9 | |||
Cisco Systems | 2.9 | |||
Exxon Mobil | 2.4 | |||
Oracle | 2.3 | |||
United Technologies | 2.0 | |||
Wal-Mart Stores | 2.0 | |||
Johnson & Johnson | 2.0 | |||
CNX Gas | 1.9 | |||
Walt Disney | 1.9 |
Sector Allocation as of October 31, 20071 (% of net assets)
Information Technology | 28.5% | |||
Healthcare | 14.6 | |||
Industrials | 12.9 | |||
Consumer Discretionary | 12.6 | |||
Energy | 9.9 | |||
Consumer Staples | 8.6 | |||
Financials | 5.7 | |||
Materials | 4.2 | |||
Utilities | 0.4 | |||
Telecommunication Services | 0.1 | |||
Short-Term Investments | 1.8 | |||
Other Assets and Liabilities, Net2 | 0.7 | |||
100.0% | ||||
Quantitative Large Cap Value Fund
Top 10 Holdings as of October 31, 20071 (% of net assets)
First American Prime Obligations Fund, Class Z | 6.3% | |||
Exxon Mobil | 6.1 | |||
General Electric | 4.4 | |||
Chevron | 3.9 | |||
AT&T | 3.4 | |||
ConocoPhillips | 3.1 | |||
Pfizer | 2.6 | |||
Bank of America | 2.6 | |||
American International Group | 2.4 | |||
Johnson & Johnson | 2.3 |
Sector Allocation as of October 31, 20071 (% of net assets)
Financials | 23.9% | |||
Energy | 16.7 | |||
Industrials | 10.3 | |||
Healthcare | 9.5 | |||
Consumer Discretionary | 8.2 | |||
Consumer Staples | 6.7 | |||
Telecommunication Services | 4.6 | |||
Information Technology | 4.5 | |||
Materials | 4.4 | |||
Utilities | 3.4 | |||
Real Estate | 0.3 | |||
Short-Term Investments | 6.6 | |||
Other Assets and Liabilities, Net2 | 0.9 | |||
100.0% |
1 | Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security. |
2 | Investments in securities typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
2 First American Funds 2007 Annual Report
Table of Contents
Expense Examples
As a shareholder of one or more of the funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. The examples below are intended to help you understand your ongoing costs (in dollars) of investing in the funds and to compare these costs with the ongoing costs of investing in other mutual funds. The examples are based on an investment of $1,000 invested in a fund at the beginning of the period and held for the entire period from July 31, 20071 to October 31, 2007.
Actual Expenses
For each class of each fund, two lines are presented in the table below — the first line for each class provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular fund and class, to estimate the expenses that you paid over the period. Simply divide your account value in the fund and class by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” for your fund and class to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
For each class of each fund, the second line for each class provides information about hypothetical account values and hypothetical expenses based on the respective fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical examples with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the tables for each class of each fund is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Quantitative Large Cap Core Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period2 (7/31/071 to | ||||||||||
Value (7/31/071) | Value (10/31/07) | 10/31/07) | ||||||||||
Class A Actual3 | $ | 1,000.00 | $ | 1,078.90 | $ | 1.85 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,010.96 | $ | 1.79 | ||||||
Class C Actual3 | $ | 1,000.00 | $ | 1,076.90 | $ | 3.84 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,009.05 | $ | 3.71 | ||||||
Class R Actual3 | $ | 1,000.00 | $ | 1,078.10 | $ | 2.52 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,010.32 | $ | 2.43 | ||||||
Class Y Actual3 | $ | 1,000.00 | $ | 1,079.30 | $ | 1.19 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,011.59 | $ | 1.15 |
1 | Inception date of the fund was July 31, 2007. |
2 | Expenses are equal to the fund’s annualized expense ratio for the period July 31, 2007 through October 31, 2007 of 0.70%, 1.45%, 0.95%, and 0.45% 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 three-month period/365. |
3 | Because the inception date of the fund was July 31, 2007, the information is based on the actual returns for the three-month period ended October 31, 2007 of 7.89%, 7.69%, 7.81%, and 7.93% for Class A, Class C, Class R, and Class Y, respectively. |
First American Funds 2007 Annual Report 3
Table of Contents
Expense Examples concluded
Quantitative Large Cap Growth Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period2 (7/31/071 to | ||||||||||
Value (7/31/071) | Value (10/31/07) | 10/31/07) | ||||||||||
Class A Actual3 | $ | 1,000.00 | $ | 1,102.20 | $ | 1.87 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,010.96 | $ | 1.79 | ||||||
Class C Actual3 | $ | 1,000.00 | $ | 1,100.10 | $ | 3.88 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,009.05 | $ | 3.71 | ||||||
Class R Actual3 | $ | 1,000.00 | $ | 1,101.70 | $ | 2.54 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,010.32 | $ | 2.43 | ||||||
Class Y Actual3 | $ | 1,000.00 | $ | 1,102.90 | $ | 1.21 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,011.59 | $ | 1.15 |
1 | Inception date of the fund was July 31, 2007. |
2 | Expenses are equal to the fund’s annualized expense ratio for the period July 31, 2007 through October 31, 2007 of 0.70%, 1.45%, 0.95%, and 0.45% 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 three-month period/365. |
3 | Because the inception date of the fund was July 31, 2007, the information is based on the actual returns for the three-month period ended October 31, 2007 of 10.22%, 10.01%, 10.17%, and 10.29% for Class A, Class C, Class R, and Class Y, respectively. |
Quantitative Large Cap Value Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period5 (7/31/074 to | ||||||||||
Value (7/31/074) | Value (10/31/07) | 10/31/07) | ||||||||||
Class A Actual6 | $ | 1,000.00 | $ | 1,064.60 | $ | 1.84 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,010.96 | $ | 1.79 | ||||||
Class C Actual6 | $ | 1,000.00 | $ | 1,062.50 | $ | 3.81 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,009.05 | $ | 3.71 | ||||||
Class R Actual6 | $ | 1,000.00 | $ | 1,064.10 | $ | 2.50 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,010.32 | $ | 2.43 | ||||||
Class Y Actual6 | $ | 1,000.00 | $ | 1,065.20 | $ | 1.18 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,011.59 | $ | 1.15 |
4 | Inception date of the fund was July 31, 2007. |
5 | Expenses are equal to the fund’s annualized expense ratio for the period July 31, 2007 through October 31, 2007 of 0.70%, 1.45%, 0.95%, and 0.45% 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 three-month period/365. |
6 | Because the inception date of the fund was July 31, 2007, the information is based on the actual returns for the three-month period ended October 31, 2007 of 6.46%, 6.25%, 6.41%, and 6.52% for Class A, Class C, Class R, and Class Y, respectively. |
4 First American Funds 2007 Annual Report
Table of Contents
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Directors
First American Investment Funds, Inc.
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of the Quantitative Large Cap Core, Quantitative Large Cap Growth, and Quantitative Large Cap Value funds (series of First American Investment Funds, Inc.) (the “funds”) as of October 31, 2007, and the related statements of operations, changes in net assets and the financial highlights for the period from July 31, 2007 (commencement of operations) to October 31, 2007. These financial statements and financial highlights are the responsibility of the funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the funds’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included verification by examination of securities held by the custodian as of October 31, 2007 and confirmation of the securities held by correspondence with brokers, or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the funds listed above of First American Investment Funds, Inc. at October 31, 2007, the results of their operations, the changes in their net assets and the financial highlights for the period from July 31, 2007 (commencement of operations) to October 31, 2007, in conformity with U.S. generally accepted accounting principles.
![-s- Ernst & Young LLP](https://capedge.com/proxy/N-CSR/0000950137-08-000175/c21990ernstyo.gif)
Minneapolis, Minnesota
December 19, 2007
First American Funds 2007 Annual Report 5
Table of Contents
Schedule of Investments October 31, 2007, all dollars rounded to thousands (000)
Quantitative Large Cap Core Fund | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Common Stocks – 98.0% | ||||||||
Consumer Discretionary – 10.3% | ||||||||
Abercrombie & Fitch, Class A | 227 | $ | 18 | |||||
Amazon.com (a) | 166 | 15 | ||||||
Apollo Group, Class A (a) | 2,910 | 231 | ||||||
Bed Bath & Beyond (a) | 2,659 | 90 | ||||||
Carnival | 7,357 | 353 | ||||||
Coach (a) | 2,922 | 107 | ||||||
Comcast, Class A (a) | 20,915 | 440 | ||||||
Expedia (a) | 7,209 | 235 | ||||||
Gap | 1,215 | 23 | ||||||
Home Depot | 5,578 | 176 | ||||||
International Game Technology | 839 | 37 | ||||||
Johnson Controls | 8,015 | 350 | ||||||
Limited Brands | 1,072 | 24 | ||||||
Lowe’s | 4,625 | 124 | ||||||
Nike, Class B | 4,295 | 285 | ||||||
Office Depot (a) | 652 | 12 | ||||||
Omnicom Group | 5,550 | 283 | ||||||
Stanley Works | 1,500 | 86 | ||||||
Starbucks (a) | 8,324 | 222 | ||||||
Target | 1,617 | 99 | ||||||
TJX | 1,691 | 49 | ||||||
VF | 2,035 | 177 | ||||||
Walt Disney | 29,359 | 1,017 | ||||||
Wyndham Worldwide | 9,207 | 302 | ||||||
Yum! Brands | 7,196 | 290 | ||||||
5,045 | ||||||||
Consumer Staples – 8.7% | ||||||||
Altria Group | 8,735 | 637 | ||||||
Anheuser-Busch | 2,757 | 142 | ||||||
Archer-Daniels-Midland | 2,748 | 98 | ||||||
Coca-Cola | 9,151 | 565 | ||||||
Costco Wholesale | 3,539 | 238 | ||||||
Estee Lauder, Class A | 1,967 | 86 | ||||||
PepsiCo | 4,737 | 349 | ||||||
Procter & Gamble | 15,461 | 1,075 | ||||||
SUPERVALU | 1,706 | 66 | ||||||
Walgreen | 4,637 | 184 | ||||||
Wal-Mart Stores | 18,113 | 819 | ||||||
4,259 | ||||||||
Energy – 13.9% | ||||||||
Apache | 2,084 | 216 | ||||||
Chevron | 15,984 | 1,463 | ||||||
ConocoPhillips | 14,432 | 1,226 | ||||||
Exxon Mobil | 27,777 | 2,555 | ||||||
Marathon Oil | 2,879 | 170 | ||||||
Nabors Industries (a) | 1,652 | 46 | ||||||
National-Oilwell Varco (a) | 1,648 | 121 | ||||||
Occidental Petroleum | 6,238 | 431 | ||||||
Schlumberger | 2,071 | 200 | ||||||
Spectra Energy | 5,815 | 151 | ||||||
Tesoro | 989 | 60 | ||||||
Valero Energy | 2,515 | 177 | ||||||
6,816 | ||||||||
Financials – 14.8% | ||||||||
ACE | 8,102 | 491 | ||||||
Allstate | 3,713 | 195 | ||||||
American Capital Strategies | 2,696 | 117 | ||||||
American International Group | 13,916 | 878 | ||||||
Bank of America | 15,551 | 751 | ||||||
Capital One Financial | 2,055 | 135 | ||||||
CB Richard Ellis Group (a) | 596 | 15 | ||||||
Citigroup | 10,294 | 431 | ||||||
Countrywide Financial | 1,275 | 20 | ||||||
Discover Financial Services | 242 | 5 | ||||||
E*TRADE Financial (a) | 5,167 | 58 | ||||||
Franklin Resources | 1,020 | 132 | ||||||
Goldman Sachs Group | 1,701 | 422 | ||||||
Hartford Financial Services Group | 2,361 | 229 | ||||||
JPMorgan Chase | 12,329 | 579 | ||||||
Lehman Brothers Holdings | 1,077 | 68 | ||||||
Lincoln National | 1,904 | 119 | ||||||
Loew’s | 9,720 | 477 | ||||||
Merrill Lynch | 2,107 | 139 | ||||||
MetLife | 773 | 53 | ||||||
Moody’s | 3,795 | 166 | ||||||
Morgan Stanley | 7,486 | 504 | ||||||
Principal Financial Group | 3,228 | 218 | ||||||
Progressive | 1,296 | 24 | ||||||
Prudential Financial | 2,542 | 246 | ||||||
T. Rowe Price Group | 2,570 | 165 | ||||||
Travelers | 5,465 | 285 | ||||||
Wachovia | 1,842 | 84 | ||||||
Wells Fargo | 6,619 | 225 | ||||||
7,231 | ||||||||
Healthcare – 12.1% | ||||||||
Abbott Laboratories | 2,700 | 147 | ||||||
Aetna | 2,484 | 140 | ||||||
Allergan | 432 | 29 | ||||||
Amgen (a) | 7,130 | 414 | ||||||
Barr Pharmaceuticals (a) | 317 | 18 | ||||||
Becton, Dickinson & Company | 758 | 63 | ||||||
Biogen IDEC (a) | 1,194 | 89 | ||||||
C.R. Bard | 327 | 27 | ||||||
Cardinal Health | 10 | 1 | ||||||
Coventry Health Care (a) | 618 | 37 | ||||||
Covidien | 2,829 | 118 | ||||||
Eli Lilly | 2,968 | 161 | ||||||
Forest Laboratories, Class A (a) | 3,138 | 123 | ||||||
Humana (a) | 1,302 | 98 | ||||||
IMS Health | 1,668 | 42 | ||||||
Johnson & Johnson | 16,800 | 1,095 | ||||||
Laboratory Corporation of America (a) | 1,400 | 96 | ||||||
Medco Health Solutions (a) | 435 | 41 | ||||||
Medtronic | 1,530 | 73 | ||||||
Merck | 3,165 | 184 | ||||||
Patterson Companies (a) | 9,602 | 376 | ||||||
Pfizer | 34,373 | 846 | ||||||
Schering-Plough | 148 | 5 | ||||||
St. Jude Medical (a) | 1,384 | 56 | ||||||
Thermo Fisher Scientific (a) | 3,498 | 206 | ||||||
UnitedHealth Group | 9,842 | 484 | ||||||
WellPoint (a) | 8,220 | 651 | ||||||
Wyeth | 3,849 | 187 | ||||||
Zimmer Holdings (a) | 1,574 | 109 | ||||||
5,916 | ||||||||
Industrials – 12.5% | ||||||||
3M | 5,866 | 507 | ||||||
American Standard | 1,098 | 41 | ||||||
Boeing | 721 | 71 | ||||||
Caterpillar | 1,802 | 134 | ||||||
Cooper Industries, Class A | 2,972 | 156 | ||||||
Cummins | 310 | 37 |
The accompanying notes are an integral part of the financial statements.
6 First American Funds 2007 Annual Report
Table of Contents
Quantitative Large Cap Core Fund (continued) | |||||||||
DESCRIPTION | SHARES | VALUE | |||||||
Danaher | 4,653 | $ | 399 | ||||||
Dover | 392 | 18 | |||||||
Emerson Electric | 3,929 | 205 | |||||||
FedEx | 1,707 | 176 | |||||||
General Dynamics | 1,735 | 158 | |||||||
General Electric | 33,812 | 1,392 | |||||||
Honeywell International | 2,279 | 138 | |||||||
Illinois Tool Works | 3,362 | 193 | |||||||
Ingersoll-Rand, Class A | 2,510 | 126 | |||||||
ITT | 796 | 53 | |||||||
L-3 Communications Holdings | 2,496 | 274 | |||||||
Paccar | 2,402 | 133 | |||||||
Pall | 153 | 6 | |||||||
Parker Hannifin | 970 | 78 | |||||||
R.R. Donnelley & Sons | 4,827 | 194 | |||||||
Rockwell Automation | 1,010 | 70 | |||||||
Rockwell Collins | 438 | 33 | |||||||
Terex (a) | 2,014 | 149 | |||||||
United Parcel Service, Class B | 6,776 | 509 | |||||||
United Technologies | 10,978 | 841 | |||||||
6,091 | |||||||||
Information Technology – 17.7% | |||||||||
Apple (a) | 2,281 | 433 | |||||||
Autodesk (a) | 2,172 | 106 | |||||||
Automatic Data Processing | 1,155 | 57 | |||||||
Cisco Systems (a) | 28,593 | 945 | |||||||
Cognizant Technology Solutions, Class A (a) | 3,757 | 156 | |||||||
Computer Sciences (a) | 2,650 | 155 | |||||||
Corning | 2,105 | 51 | |||||||
Dell (a) | 17,381 | 532 | |||||||
eBay (a) | 3,341 | 121 | |||||||
Electronic Arts (a) | 1,366 | 83 | |||||||
Electronic Data Systems | 1,097 | 24 | |||||||
EMC (a) | 7,387 | 188 | |||||||
Fidelity National Information Services | 3,513 | 162 | |||||||
Fiserv (a) | 2,157 | 120 | |||||||
Google, Class A (a) | 1,202 | 850 | |||||||
Hewlett-Packard | 10,881 | 562 | |||||||
IBM | 3,967 | 461 | |||||||
Intel | 19,472 | 524 | |||||||
Juniper Networks (a) | 5,050 | 182 | |||||||
Microsoft | 22,852 | 841 | |||||||
Network Appliance (a) | 3,634 | 114 | |||||||
NVIDIA (a) | 6,266 | 222 | |||||||
Oracle (a) | 34,520 | 765 | |||||||
QUALCOMM | 5,354 | 229 | |||||||
Symantec (a) | 9,766 | 183 | |||||||
Teradata (a) | 2,990 | 85 | |||||||
Texas Instruments | 1,294 | 42 | |||||||
Tyco Electronics | 1,451 | 52 | |||||||
Waters (a) | 1,957 | 151 | |||||||
Xerox (a) | 12,249 | 214 | |||||||
Yahoo! (a) | 2,138 | 67 | |||||||
8,677 | |||||||||
Materials – 3.4% | |||||||||
Alcoa | 1,607 | 64 | |||||||
Allegheny Technologies | 219 | 22 | |||||||
Dow Chemical | 5,140 | 232 | |||||||
E.I. Du Pont de Nemours | 4,504 | 223 | |||||||
Ecolab | 4,610 | 217 | |||||||
Freeport-McMoRan Copper & Gold | 649 | 76 | |||||||
International Paper | 2,394 | 88 | |||||||
Monsanto | 1,751 | 171 | |||||||
Nucor | 2,001 | 124 | |||||||
PPG Industries | 1,055 | 79 | |||||||
Sealed Air | 3,595 | 90 | |||||||
Sigma-Aldrich | 2,491 | 129 | |||||||
United States Steel | 1,485 | 160 | |||||||
1,675 | |||||||||
Telecommunication Services – 2.4% | |||||||||
AT&T | 21,933 | 916 | |||||||
Verizon Communications | 5,093 | 235 | |||||||
1,151 | |||||||||
Utilities – 2.2% | |||||||||
Edison International | 376 | 22 | |||||||
Exelon | 1,113 | 92 | |||||||
FPL Group | 2,574 | 176 | |||||||
PG&E | 4,025 | 197 | |||||||
PPL | 510 | 26 | |||||||
Public Service Enterprise Group | 5,844 | 559 | |||||||
1,072 | |||||||||
Total Common Stocks | |||||||||
(Cost $44,983) | 47,933 | ||||||||
Short-Term Investments – 1.8% | |||||||||
Money Market Fund – 1.4% | |||||||||
First American Prime Obligations Fund, Class Z (b) | 683,325 | 683 | |||||||
U.S. Treasury Obligation – 0.4% | |||||||||
U.S. Treasury Bill | |||||||||
3.813%, 01/24/2008 (c) | $ | 200 | 198 | ||||||
Total Short-Term Investments (Cost $881) | 881 | ||||||||
Total Investments – 99.8% (Cost $45,864) | 48,814 | ||||||||
Other Assets and Liabilities, Net – 0.2% | 83 | ||||||||
Total Net Assets – 100.0% | $ | 48,897 | |||||||
(a) | Non-income producing security. |
(b) | 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. |
(c) | Security has been deposited as initial margin on open futures contracts. Yield shown is the effective yield as of October 31, 2007. See Note 2 in Notes to Financial Statements. |
Schedule of Open Futures Contracts
Number of | Notional | |||||||||||||||
Contracts | Contract | Settlement | Unrealized | |||||||||||||
Description | Purchased | Value | Month | Appreciation | ||||||||||||
S&P 500 Futures | 2 | $ | 777 | December 2007 | $ | 8 | ||||||||||
First American Funds 2007 Annual Report 7
Table of Contents
Schedule of Investments October 31, 2007, all dollars rounded to thousands (000)
Quantitative Large Cap Growth Fund | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Common Stocks – 97.5% | ||||||||
Consumer Discretionary – 12.6% | ||||||||
Abercrombie & Fitch, Class A | 98 | $ | 8 | |||||
Amazon.com (a) | 144 | 13 | ||||||
American Eagle Outfitters | 832 | 20 | ||||||
Apollo Group, Class A (a) | 511 | 40 | ||||||
Bed Bath & Beyond (a) | 315 | 11 | ||||||
CarMax (a) | 309 | 6 | ||||||
Carnival | 1,077 | 52 | ||||||
Coach (a) | 689 | 25 | ||||||
Comcast, Class A (a) | 2,855 | 60 | ||||||
Expedia (a) | 1,305 | 43 | ||||||
Garmin | 257 | 28 | ||||||
Home Depot | 597 | 19 | ||||||
International Game Technology | 125 | 5 | ||||||
Jarden (a) | 75 | 3 | ||||||
Johnson Controls | 1,420 | 62 | ||||||
Las Vegas Sands (a) | 336 | 45 | ||||||
Lowe’s | 1,090 | 29 | ||||||
Nike, Class B | 1,043 | 69 | ||||||
Omnicom Group | 1,047 | 53 | ||||||
Ross Stores | 860 | 23 | ||||||
Stanley Works | 34 | 2 | ||||||
Starbucks (a) | 1,352 | 36 | ||||||
Target | 514 | 32 | ||||||
TJX | 293 | 8 | ||||||
VF | 301 | 26 | ||||||
Walt Disney | 4,319 | 150 | ||||||
Wyndham Worldwide | 1,621 | 53 | ||||||
Wynn Resorts (a) | 10 | 2 | ||||||
Yum! Brands | 1,623 | 65 | ||||||
988 | ||||||||
Consumer Staples – 8.6% | ||||||||
Altria Group | 1,188 | 86 | ||||||
Anheuser-Busch | 170 | 9 | ||||||
Coca-Cola | 1,486 | 92 | ||||||
Costco Wholesale | 710 | 48 | ||||||
Estee Lauder, Class A | 153 | 7 | ||||||
NBTY (a) | 443 | 16 | ||||||
PepsiCo | 1,040 | 76 | ||||||
Procter & Gamble | 1,867 | 130 | ||||||
Walgreen | 1,269 | 50 | ||||||
Wal-Mart Stores | 3,475 | 157 | ||||||
671 | ||||||||
Energy – 9.9% | ||||||||
Baker Hughes | 55 | 5 | ||||||
Chevron | 1,318 | 121 | ||||||
CNX Gas (a) | 4,731 | 151 | ||||||
ConocoPhillips | 1,338 | 114 | ||||||
Exxon Mobil | 2,056 | 189 | ||||||
Global Industries (a) | 824 | 20 | ||||||
Marathon Oil | 15 | 1 | ||||||
Nabors Industries (a) | 38 | 1 | ||||||
National-Oilwell Varco (a) | 619 | 45 | ||||||
Oceaneering International (a) | 187 | 14 | ||||||
Schlumberger | 666 | 64 | ||||||
Tesoro | 192 | 12 | ||||||
Valero Energy | 498 | 35 | ||||||
Western Refining | 142 | 5 | ||||||
777 | ||||||||
Financials – 5.7% | ||||||||
ACE | 715 | 43 | ||||||
American International Group | 234 | 15 | ||||||
Arch Capital Group (a) | 682 | 51 | ||||||
BlackRock | 286 | 59 | ||||||
Covanta Holding (a) | 1,605 | 43 | ||||||
First Marblehead | 45 | 2 | ||||||
Franklin Resources | 151 | 19 | ||||||
Goldman Sachs Group | 168 | 42 | ||||||
Loew’s | 1,139 | 56 | ||||||
Moody’s | 682 | 30 | ||||||
Morgan Stanley | 294 | 20 | ||||||
Prudential Financial | 48 | 5 | ||||||
Reinsurance Group of America | 65 | 4 | ||||||
SEI Investments | 1,200 | 38 | ||||||
T. Rowe Price Group | 222 | 14 | ||||||
Travelers | 19 | 1 | ||||||
442 | ||||||||
Healthcare – 14.6% | ||||||||
Abbott Laboratories | 985 | 54 | ||||||
Abraxis Bioscience (a) | 1,589 | 39 | ||||||
Aetna | 571 | 32 | ||||||
Allergan | 35 | 2 | ||||||
Amgen (a) | 1,110 | 64 | ||||||
Becton, Dickinson & Company | 316 | 26 | ||||||
Biogen IDEC (a) | 116 | 9 | ||||||
C.R. Bard | 197 | 17 | ||||||
Coventry Health Care (a) | 185 | 11 | ||||||
Covidien | 255 | 11 | ||||||
Eli Lilly | 182 | 10 | ||||||
Endo Pharmaceuticals (a) | 313 | 9 | ||||||
Forest Laboratories, Class A (a) | 427 | 17 | ||||||
Genentech (a) | 1,152 | 85 | ||||||
Gen-Probe (a) | 27 | 2 | ||||||
Henry Schein (a) | 75 | 5 | ||||||
Humana (a) | 218 | 16 | ||||||
IMS Health | 52 | 1 | ||||||
Intuitive Surgical (a) | 28 | 9 | ||||||
Johnson & Johnson | 2,409 | 157 | ||||||
Kinetic Concepts (a) | 301 | 18 | ||||||
Laboratory Corporation of America (a) | 274 | 19 | ||||||
Medco Health Solutions (a) | 239 | 23 | ||||||
Medtronic | 796 | 38 | ||||||
Merck | 746 | 43 | ||||||
Patterson Companies (a) | 1,548 | 61 | ||||||
Pfizer | 1,190 | 29 | ||||||
Schering-Plough | 230 | 7 | ||||||
St. Jude Medical (a) | 445 | 18 | ||||||
Thermo Fisher Scientific (a) | 616 | 36 | ||||||
UnitedHealth Group | 2,064 | 101 | ||||||
WellPoint (a) | 1,539 | 122 | ||||||
Wyeth | 319 | 16 | ||||||
Zimmer Holdings (a) | 436 | 30 | ||||||
1,137 | ||||||||
Industrials – 12.9% | ||||||||
3M | 1,324 | 114 | ||||||
American Standard | 129 | 5 | ||||||
Boeing | 397 | 39 | ||||||
Career Education (a) | 399 | 14 | ||||||
Caterpillar | 492 | 37 | ||||||
Cooper Industries, Class A | 415 | 22 | ||||||
Copart (a) | 709 | 27 | ||||||
Cummins | 115 | 14 | ||||||
Danaher | 820 | 70 |
The accompanying notes are an integral part of the financial statements.
8 First American Funds 2007 Annual Report
Table of Contents
Quantitative Large Cap Growth Fund (continued) | |||||||||
DESCRIPTION | SHARES | VALUE | |||||||
Emerson Electric | 711 | $ | 37 | ||||||
FedEx | 307 | 32 | |||||||
Gardner Denver (a) | 1,223 | 44 | |||||||
Hertz Global Holdings (a) | 249 | 5 | |||||||
Honeywell International | 611 | 37 | |||||||
Illinois Tool Works | 678 | 39 | |||||||
Ingersoll-Rand, Class A | 141 | 7 | |||||||
Jacobs Engineering Group (a) | 118 | 10 | |||||||
L-3 Communications Holdings | 406 | 45 | |||||||
Manpower | 43 | 3 | |||||||
McDermott International (a) | 469 | 29 | |||||||
Paccar | 442 | 25 | |||||||
Parker Hannifin | 105 | 8 | |||||||
Precision Castparts | 70 | 11 | |||||||
R.R. Donnelley & Sons | 343 | 14 | |||||||
Rockwell Automation | 168 | 12 | |||||||
Rockwell Collins | 246 | 18 | |||||||
Terex (a) | 423 | 31 | |||||||
United Parcel Service, Class B | 1,279 | 96 | |||||||
United Technologies | 2,067 | 158 | |||||||
WESCO International (a) | 129 | 6 | |||||||
1,009 | |||||||||
Information Technology (b) – 28.5% | |||||||||
Activision (a) | 943 | 22 | |||||||
Amdocs (a) | 1,233 | 42 | |||||||
Apple (a) | 695 | 132 | |||||||
Autodesk (a) | 449 | 22 | |||||||
Automatic Data Processing | 200 | 10 | |||||||
Cisco Systems (a) | 6,814 | 225 | |||||||
Cognizant Technology Solutions, Class A (a) | 697 | 29 | |||||||
Computer Sciences (a) | 234 | 14 | |||||||
Corning | 502 | 12 | |||||||
Dell (a) | 3,593 | 110 | |||||||
Dolby Laboratories, Class A (a) | 1,365 | 57 | |||||||
eBay (a) | 876 | 32 | |||||||
Electronic Arts (a) | 183 | 11 | |||||||
EMC (a) | 1,884 | 48 | |||||||
F5 Networks (a) | 260 | 9 | |||||||
Fidelity National Information Services | 606 | 28 | |||||||
Fiserv (a) | 291 | 16 | |||||||
Google, Class A (a) | 322 | 228 | |||||||
Harris | 283 | 17 | |||||||
Hewitt Associates, Class A (a) | 379 | 13 | |||||||
Hewlett-Packard | 2,721 | 141 | |||||||
IBM | 1,069 | 124 | |||||||
Ingram Micro, Class A (a) | 596 | 13 | |||||||
Intel | 5,284 | 142 | |||||||
Juniper Networks (a) | 855 | 31 | |||||||
Microsoft | 6,845 | 252 | |||||||
NAVTEQ (a) | 105 | 8 | |||||||
Network Appliance (a) | 457 | 14 | |||||||
NVIDIA (a) | 1,422 | 50 | |||||||
Oracle (a) | 7,962 | 177 | |||||||
QUALCOMM | 1,308 | 56 | |||||||
Rambus (a) | 854 | 17 | |||||||
Symantec (a) | 881 | 17 | |||||||
Teradata (a) | 389 | 11 | |||||||
Texas Instruments | 763 | 25 | |||||||
Trimble Navigation (a) | 572 | 24 | |||||||
Waters (a) | 289 | 22 | |||||||
Xerox (a) | 554 | 10 | |||||||
Yahoo! (a) | 591 | 18 | |||||||
2,229 | |||||||||
Materials – 4.2% | |||||||||
Allegheny Technologies | 20 | 2 | |||||||
Cleveland-Cliffs | 155 | 15 | |||||||
Commercial Metals | 737 | 23 | |||||||
Dow Chemical | 111 | 5 | |||||||
E.I. Du Pont de Nemours | 407 | 20 | |||||||
Ecolab | 787 | 37 | |||||||
Freeport-McMoRan Copper & Gold | 96 | 11 | |||||||
Monsanto | 558 | 55 | |||||||
Mosaic (a) | 548 | 38 | |||||||
Nucor | 218 | 14 | |||||||
PPG Industries | 75 | 6 | |||||||
Praxair | 86 | 7 | |||||||
Sealed Air | 278 | 7 | |||||||
Sigma-Aldrich | 354 | 18 | |||||||
Southern Copper | 97 | 14 | |||||||
Steel Dynamics | 382 | 20 | |||||||
Titanium Metals (a) | 368 | 13 | |||||||
United States Steel | 141 | 15 | |||||||
Westlake Chemical | 438 | 11 | |||||||
331 | |||||||||
Telecommunication Services – 0.1% | |||||||||
NeuStar, Class A (a) | 229 | 8 | |||||||
Utilities – 0.4% | |||||||||
Mirant (a) | 326 | 14 | |||||||
Public Service Enterprise Group | 187 | 18 | |||||||
32 | |||||||||
Total Common Stocks | |||||||||
(Cost $6,994) | 7,624 | ||||||||
Short-Term Investments – 1.8% | |||||||||
Money Market Fund – 1.5% | |||||||||
First American Prime Obligations Fund, Class Z (c) | 117,465 | 117 | |||||||
U.S. Treasury Obligation – 0.3% | |||||||||
U.S. Treasury Bill | |||||||||
3.813%, 01/24/2008 (d) | $ | 20 | 20 | ||||||
Total Short-Term Investments | |||||||||
(Cost $137) | 137 | ||||||||
Total Investments – 99.3% | |||||||||
(Cost $7,131) | 7,761 | ||||||||
Other Assets and Liabilities, Net – 0.7% | 59 | ||||||||
Total Net Assets – 100.0% | $ | 7,820 | |||||||
(a) | Non-income producing security. |
(b) | The fund is significantly invested in this sector and therefore subject to additional risks. See note 6 in Notes to Financial Statements. |
(c) | 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. |
(d) | Security has been deposited as initial margin on open futures contracts. Yield shown is the effective yield as of October 31, 2007. See note 2 in Notes to Financial Statements. |
Schedule of Open Futures Contracts
Number of | Notional | |||||||||||||
Contracts | Contract | Unrealized | ||||||||||||
Description | Purchased | Value | Settlement Month | Appreciation | ||||||||||
S&P 500 E-Mini Futures | 1 | $ | 78 | December 2007 | $ | 1 | ||||||||
First American Funds 2007 Annual Report 9
Table of Contents
Schedule of Investments October 31, 2007, all dollars rounded to thousands (000)
Quantitative Large Cap Value Fund | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Common Stocks – 92.5% | ||||||||
Consumer Discretionary – 8.2% | ||||||||
American Eagle Outfitters | 338 | $ | 8 | |||||
Apollo Group, Class A (a) | 259 | 21 | ||||||
Bed Bath & Beyond (a) | 132 | 5 | ||||||
Carnival | 1,357 | 65 | ||||||
Comcast, Class A (a) | 2,113 | 44 | ||||||
Expedia (a) | 1,121 | 37 | ||||||
Foot Locker | 79 | 1 | ||||||
Gannett | 354 | 15 | ||||||
Home Depot | 487 | 15 | ||||||
Jarden (a) | 105 | 4 | ||||||
Johnson Controls | 589 | 26 | ||||||
Las Vegas Sands (a) | 125 | 17 | ||||||
Nike, Class B | 256 | 17 | ||||||
Omnicom Group | 650 | 33 | ||||||
Ross Stores | 920 | 25 | ||||||
Starbucks (a) | 601 | 16 | ||||||
VF | 325 | 28 | ||||||
Walt Disney | 4,423 | 153 | ||||||
Wyndham Worldwide | 1,857 | 61 | ||||||
Yum! Brands | 558 | 22 | ||||||
613 | ||||||||
Consumer Staples – 6.7% | ||||||||
Altria Group | 1,294 | 94 | ||||||
Anheuser-Busch | 215 | 11 | ||||||
Archer-Daniels-Midland | 670 | 24 | ||||||
Coca-Cola | 887 | 55 | ||||||
Costco Wholesale | 241 | 16 | ||||||
NBTY (a) | 191 | 7 | ||||||
Procter & Gamble | 2,374 | 165 | ||||||
SUPERVALU | 293 | 11 | ||||||
Wal-Mart Stores | 2,644 | 120 | ||||||
503 | ||||||||
Energy – 16.7% | ||||||||
Chevron | 3,185 | 292 | ||||||
Cimarex Energy | 475 | 19 | ||||||
CNX Gas (a) | 4,337 | 139 | ||||||
ConocoPhillips | 2,758 | 234 | ||||||
Exxon Mobil | 5,001 | 460 | ||||||
Marathon Oil | 643 | 38 | ||||||
Occidental Petroleum | 453 | 31 | ||||||
Spectra Energy | 863 | 22 | ||||||
Valero Energy | 180 | 13 | ||||||
1,248 | ||||||||
Financials – 23.9% | ||||||||
ACE | 1,351 | 82 | ||||||
Allstate | 1,181 | 62 | ||||||
American Capital Strategies | 468 | 20 | ||||||
American International Group | 2,862 | 181 | ||||||
AmeriCredit (a) | 278 | 4 | ||||||
Arch Capital Group (a) | 984 | 74 | ||||||
Axis Capital Holdings | 704 | 28 | ||||||
Bank of America | 4,024 | 194 | ||||||
BlackRock | 122 | 25 | ||||||
Capital One Financial | 478 | 31 | ||||||
Chubb | 186 | 10 | ||||||
Citigroup | 3,505 | 147 | ||||||
Countrywide Financial | 242 | 4 | ||||||
Covanta Holding (a) | 1,519 | 41 | ||||||
E*TRADE Financial (a) | 405 | 5 | ||||||
First Marblehead | 155 | 6 | ||||||
Goldman Sachs Group | 223 | 55 | ||||||
Hartford Financial Services Group | 540 | 52 | ||||||
J.P. Morgan Chase | 3,460 | 163 | ||||||
Lehman Brothers Holdings | 322 | 20 | ||||||
Lincoln National | 458 | 29 | ||||||
Loew’s | 1,008 | 50 | ||||||
Merrill Lynch | 505 | 33 | ||||||
Moody’s | 428 | 19 | ||||||
Morgan Stanley | 1,534 | 103 | ||||||
PNC Financial Services | 210 | 15 | ||||||
Principal Financial Group | 251 | 17 | ||||||
Prudential Financial | 296 | 29 | ||||||
Reinsurance Group of America | 425 | 24 | ||||||
SEI Investments | 981 | 31 | ||||||
Torchmark | 57 | 4 | ||||||
Transatlantic Holdings | 203 | 15 | ||||||
Travelers | 1,268 | 66 | ||||||
W.R. Berkley | 551 | 17 | ||||||
Wachovia | 1,444 | 66 | ||||||
Wells Fargo | 2,130 | 72 | ||||||
1,794 | ||||||||
Healthcare – 9.5% | ||||||||
Abraxis Bioscience (a) | 1,384 | 34 | ||||||
Aetna | 67 | 4 | ||||||
Amgen (a) | 540 | 31 | ||||||
Covidien | 284 | 12 | ||||||
Forest Laboratories, Class A (a) | 83 | 3 | ||||||
Genentech (a) | 99 | 7 | ||||||
Johnson & Johnson | 2,596 | 169 | ||||||
Kinetic Concepts (a) | 50 | 3 | ||||||
Laboratory Corporation of America (a) | 80 | 6 | ||||||
Patterson Companies (a) | 968 | 38 | ||||||
Pfizer | 7,927 | 195 | ||||||
Thermo Fisher Scientific (a) | 227 | 13 | ||||||
UnitedHealth Group | 990 | 49 | ||||||
WellPoint (a) | 1,741 | 138 | ||||||
Wyeth | 179 | 9 | ||||||
711 | ||||||||
Industrials – 10.3% | ||||||||
3M | 553 | 48 | ||||||
Career Education (a) | 166 | 6 | ||||||
Cooper Industries, Class A | 363 | 19 | ||||||
Copart (a) | 589 | 23 | ||||||
Danaher | 216 | 19 | ||||||
Emerson Electric | 32 | 2 | ||||||
FedEx | 113 | 12 | ||||||
Gardner Denver (a) | 1,134 | 41 | ||||||
General Dynamics | 164 | 15 | ||||||
General Electric | 7,980 | 328 | ||||||
Hertz Global Holdings (a) | 199 | 4 | ||||||
Illinois Tool Works | 180 | 10 | ||||||
Ingersoll-Rand, Class A | 237 | 12 | ||||||
L-3 Communications Holdings | 294 | 32 | ||||||
Parker Hannifin | 26 | 2 | ||||||
R.R. Donnelley & Sons | 984 | 40 | ||||||
Terex (a) | 72 | 5 | ||||||
United Parcel Service, Class B | 490 | 37 | ||||||
United Technologies | 1,474 | 113 | ||||||
WESCO International (a) | 138 | 6 | ||||||
774 | ||||||||
Information Technology – 4.5% | ||||||||
Amdocs (a) | 640 | 22 | ||||||
Cisco Systems (a) | 565 | 19 | ||||||
Cognizant Technology Solutions, Class A (a) | 118 | 5 |
The accompanying notes are an integral part of the financial statements.
10 First American Funds 2007 Annual Report
Table of Contents
Quantitative Large Cap Value Fund (continued) | |||||||||
DESCRIPTION | SHARES | VALUE | |||||||
Computer Sciences (a) | 448 | $ | 26 | ||||||
Dell (a) | 1,010 | 31 | |||||||
Dolby Laboratories, Class A (a) | 907 | 38 | |||||||
Fidelity National Information Services | 286 | 13 | |||||||
Fiserv (a) | 166 | 9 | |||||||
Google, Class A (a) | 27 | 19 | |||||||
Hewitt Associates, Class A (a) | 56 | 2 | |||||||
Ingram Micro, Class A (a) | 1,229 | 26 | |||||||
Juniper Networks (a) | 273 | 10 | |||||||
Network Appliance (a) | 100 | 3 | |||||||
NVIDIA (a) | 190 | 7 | |||||||
Oracle (a) | 2,201 | 49 | |||||||
Rambus (a) | 361 | 7 | |||||||
Symantec (a) | 988 | 18 | |||||||
Teradata (a) | 140 | 4 | |||||||
Xerox (a) | 1,852 | 32 | |||||||
340 | |||||||||
Materials – 4.4% | |||||||||
Alcoa | 94 | 4 | |||||||
Cleveland-Cliffs | 18 | 2 | |||||||
Commercial Metals | 845 | 26 | |||||||
Dow Chemical | 1,517 | 68 | |||||||
E.I. Du Pont de Nemours | 1,075 | 53 | |||||||
Ecolab | 227 | 11 | |||||||
International Paper | 1,263 | 46 | |||||||
Mosaic (a) | 283 | 20 | |||||||
Nucor | 256 | 16 | |||||||
PPG Industries | 133 | 10 | |||||||
Sealed Air | 430 | 11 | |||||||
Sigma-Aldrich | 170 | 9 | |||||||
Steel Dynamics | 303 | 16 | |||||||
United States Steel | 192 | 21 | |||||||
Westlake Chemical | 660 | 16 | |||||||
329 | |||||||||
Real Estate – 0.3% | |||||||||
Annaly Capital Management – REIT | 1,484 | 25 | |||||||
Telecommunication Services – 4.6% | |||||||||
AT&T | 6,101 | 255 | |||||||
Verizon Communications | 2,018 | 93 | |||||||
348 | |||||||||
Utilities – 3.4% | |||||||||
Edison International | 195 | 11 | |||||||
FPL Group | 284 | 19 | |||||||
Mirant (a) | 635 | 27 | |||||||
PG&E | 888 | 43 | |||||||
Public Service Enterprise Group | 1,180 | 113 | |||||||
Southern | 318 | 12 | |||||||
UGI | 1,007 | 27 | |||||||
252 | |||||||||
Total Common Stocks | |||||||||
(Cost $6,581) | 6,937 | ||||||||
Short-Term Investments – 6.6% | |||||||||
Money Market Fund – 6.3% | |||||||||
First American Prime Obligations Fund, Class Z (b) | 474,062 | $ | 474 | ||||||
U.S. Treasury Obligation – 0.3% | |||||||||
U.S. Treasury Bill | |||||||||
3.813%, 01/24/2008 (c) | $ | 20 | 20 | ||||||
Total Short-Term Investments (Cost $494) | 494 | ||||||||
Total Investments – 99.1% (Cost $7,075) | 7,431 | ||||||||
Other Assets and Liabilities, Net – 0.9% | 67 | ||||||||
Total Net Assets – 100.0% | $ | 7,498 | |||||||
(a) | Non-income producing security. |
(b) | 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. |
(c) | Security has been deposited as initial margin on open futures contracts. Yield shown is effective yield as of October 31, 2007. See note 2 in Notes to Financial Statements. |
REIT – | Real Estate Investment Trust |
Schedule of Open Futures Contracts
Number of | Notional | |||||||||||||
Contracts | Contract | Settlement | Unrealized | |||||||||||
Description | Purchased | Value | Month | Appreciation | ||||||||||
S&P 500 E-Mini Futures | 1 | $ | 78 | December 2007 | $ | 1 | ||||||||
S&P 500 Futures | 1 | 389 | December 2007 | 12 | ||||||||||
$ | 13 | |||||||||||||
First American Funds 2007 Annual Report 11
Table of Contents
Statements of Assets and Liabilities | October 31, 2007, all dollars and shares are rounded to thousands (000), except per share data |
Quantitative | Quantitative | Quantitative | ||||||||||||||
Large Cap | Large Cap | Large Cap | ||||||||||||||
Core Fund | Growth Fund | Value Fund | ||||||||||||||
Investments in unaffiliated securities, at cost | $ | 45,181 | $ | 7,014 | $ | 6,601 | ||||||||||
Investments in affiliated money market fund, at cost | 683 | 117 | 474 | |||||||||||||
ASSETS: | ||||||||||||||||
Investments in unaffiliated securities, at value (note 2) | $ | 48,131 | $ | 7,644 | $ | 6,957 | ||||||||||
Investments in affiliated money market fund, at value (note 2) | 683 | 117 | 474 | |||||||||||||
Receivable for dividends and interest | 34 | 3 | 6 | |||||||||||||
Receivable for variation margin | 10 | 1 | 6 | |||||||||||||
Receivable from advisor | 18 | 26 | 26 | |||||||||||||
Prepaid expenses and other assets | 48 | 48 | 48 | |||||||||||||
Total assets | 48,924 | 7,839 | 7,517 | |||||||||||||
LIABILITIES: | ||||||||||||||||
Payable to affiliates (note 3) | 22 | 13 | 13 | |||||||||||||
Payable for distribution and shareholder servicing fees | — | — | — | |||||||||||||
Accrued expenses and other liabilities | 5 | 6 | 6 | |||||||||||||
Total liabilities | 27 | 19 | 19 | |||||||||||||
Net assets | $ | 48,897 | $ | 7,820 | $ | 7,498 | ||||||||||
COMPOSITION OF NET ASSETS: | ||||||||||||||||
Portfolio capital | $ | 45,461 | $ | 7,109 | $ | 7,065 | ||||||||||
Undistributed net investment income | 60 | 6 | 17 | |||||||||||||
Accumulated net realized gain on investments (note 2) | 418 | 74 | 47 | |||||||||||||
Net unrealized appreciation of investments | 2,950 | 630 | 356 | |||||||||||||
Net unrealized appreciation of futures contracts | 8 | 1 | 13 | |||||||||||||
Net assets | $ | 48,897 | $ | 7,820 | $ | 7,498 | ||||||||||
Class A: | ||||||||||||||||
Net assets | $ | 131 | $ | 71 | $ | 31 | ||||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 5 | 2 | 1 | |||||||||||||
Net asset value and redemption price per share | $ | 26.90 | $ | 27.51 | $ | 26.53 | ||||||||||
Maximum offering price per share1 | $ | 28.47 | $ | 29.11 | $ | 28.07 | ||||||||||
Class C: | ||||||||||||||||
Net assets | $ | 15 | $ | 18 | $ | 5 | ||||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 1 | 1 | — | |||||||||||||
Net asset value, offering price, and redemption price per share2 | $ | 26.88 | $ | 27.47 | $ | 26.51 | ||||||||||
Class R: | ||||||||||||||||
Net assets | $ | 6 | $ | 6 | $ | 5 | ||||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | —* | —* | —* | |||||||||||||
Net asset value, offering price, and redemption price per share | $ | 26.89 | $ | 27.51 | $ | 26.53 | ||||||||||
Class Y: | ||||||||||||||||
Net assets | $ | 48,745 | $ | 7,725 | $ | 7,457 | ||||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 1,812 | 281 | 281 | |||||||||||||
Net asset value, offering price, and redemption price per share | $ | 26.90 | $ | 27.52 | $ | 26.54 | ||||||||||
1 | The offering price is calculated by dividing the net asset value by 1 minus the maximum sales charge of 5.50%. | |
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. |
* | 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.
12 First American Funds 2007 Annual Report
Table of Contents
Statements of Operations For the period from July 31, 20071 to October 31, 2007, all dollars are rounded to thousands (000)
Quantitative | Quantitative | Quantitative | |||||||||||||||
Large Cap | Large Cap | Large Cap | |||||||||||||||
Core Fund | Growth Fund | Value Fund | |||||||||||||||
7/31/071 | 7/31/071 | 7/31/071 | |||||||||||||||
to | to | to | |||||||||||||||
10/31/07 | 10/31/07 | 10/31/07 | |||||||||||||||
INVESTMENT INCOME: | |||||||||||||||||
Dividends from unaffiliated securities | $ | 222 | $ | 24 | $ | 46 | |||||||||||
Dividends from affiliated money market fund | 32 | 4 | 4 | ||||||||||||||
Interest from unaffiliated securities | 2 | — | — | ||||||||||||||
Total investment income | 256 | 28 | 50 | ||||||||||||||
EXPENSES (note 3): | |||||||||||||||||
Investment advisory fees | 35 | 6 | 6 | ||||||||||||||
Administration fees | 28 | 6 | 6 | ||||||||||||||
Transfer agent fees | 25 | 25 | 25 | ||||||||||||||
Custodian fees | 1 | — | — | ||||||||||||||
Legal fees | 4 | 4 | 4 | ||||||||||||||
Audit fees | 15 | 15 | 15 | ||||||||||||||
Registration fees | 13 | 13 | 13 | ||||||||||||||
Postage and printing fees | 1 | 1 | 1 | ||||||||||||||
Directors’ fees | 6 | 6 | 6 | ||||||||||||||
Other expenses | 6 | 6 | 6 | ||||||||||||||
Distribution and shareholder servicing fees – Class A | — | — | — | ||||||||||||||
Distribution and shareholder servicing fees – Class C | — | — | — | ||||||||||||||
Distribution and shareholder servicing fees – Class R | — | — | — | ||||||||||||||
Total expenses | 134 | 82 | 82 | ||||||||||||||
Less: Fee waivers (note 3) | (82 | ) | (74 | ) | (74 | ) | |||||||||||
Total net expenses | 52 | 8 | 8 | ||||||||||||||
Investment income – net | 204 | 20 | 42 | ||||||||||||||
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS AND | |||||||||||||||||
FUTURES CONTRACTS – NET (note 5): | |||||||||||||||||
Net realized gain on investments | 335 | 74 | 48 | ||||||||||||||
Net realized gain (loss) on futures contracts | 83 | — | (1 | ) | |||||||||||||
Net change in unrealized appreciation or depreciation of investments | 2,950 | 630 | 356 | ||||||||||||||
Net change in unrealized appreciation or depreciation of futures contracts | 8 | 1 | 13 | ||||||||||||||
Net gain on investments and futures contracts | 3,376 | 705 | 416 | ||||||||||||||
Net increase in net assets resulting from operations | $ | 3,580 | $ | 725 | $ | 458 | |||||||||||
1 | Commencement of operations. |
First American Funds 2007 Annual Report 13
Table of Contents
Statements of Changes in Net Assets all dollars are rounded to thousands (000)
Quantitative | Quantitative | Quantitative | |||||||||||||||
Large Cap | Large Cap | Large Cap | |||||||||||||||
Core Fund | Growth Fund | Value Fund | |||||||||||||||
7/31/071 | 7/31/071 | 7/31/071 | |||||||||||||||
to | to | to | |||||||||||||||
10/31/07 | 10/31/07 | 10/31/07 | |||||||||||||||
OPERATIONS: | |||||||||||||||||
Investment income – net | $ | 204 | $ | 20 | $ | 42 | |||||||||||
Net realized gain on investments | 335 | 74 | 48 | ||||||||||||||
Net realized gain (loss) on futures contracts | 83 | — | (1 | ) | |||||||||||||
Net change in unrealized appreciation or depreciation of investments | 2,950 | 630 | 356 | ||||||||||||||
Net change in unrealized appreciation or depreciation of futures contracts | 8 | 1 | 13 | ||||||||||||||
Net increase in net assets resulting from operations | 3,580 | 725 | 458 | ||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||||||||
Investment income – net: | |||||||||||||||||
Class A | — | — | — | ||||||||||||||
Class C | — | — | — | ||||||||||||||
Class R | — | — | — | ||||||||||||||
Class Y | (144 | ) | (14 | ) | (25 | ) | |||||||||||
Total distributions | (144 | ) | (14 | ) | (25 | ) | |||||||||||
CAPITAL SHARE TRANSACTIONS (note 4): | |||||||||||||||||
Class A: | |||||||||||||||||
Proceeds from sales | 129 | 69 | 30 | ||||||||||||||
Reinvestment of distributions | — | — | — | ||||||||||||||
Payments for redemptions | — | — | — | ||||||||||||||
Increase in net assets from Class A transactions | 129 | 69 | 30 | ||||||||||||||
Class C: | |||||||||||||||||
Proceeds from sales | 15 | 17 | 5 | ||||||||||||||
Reinvestment of distributions | — | — | — | ||||||||||||||
Payments for redemptions (note 3) | — | — | — | ||||||||||||||
Increase in net assets from Class C transactions | 15 | 17 | 5 | ||||||||||||||
Class R: | |||||||||||||||||
Proceeds from sales | 5 | 5 | 5 | ||||||||||||||
Reinvestment of distributions | — | — | — | ||||||||||||||
Payments for redemptions | — | — | — | ||||||||||||||
Increase in net assets from Class R transactions | 5 | 5 | 5 | ||||||||||||||
Class Y: | |||||||||||||||||
Proceeds from sales | 47,241 | 7,004 | 7,000 | ||||||||||||||
Reinvestment of distributions | 133 | 14 | 25 | ||||||||||||||
Payments for redemptions | (2,062 | ) | — | — | |||||||||||||
Increase in net assets from Class Y transactions | 45,312 | 7,018 | 7,025 | ||||||||||||||
Increase in net assets from capital share transactions | 45,461 | 7,109 | 7,065 | ||||||||||||||
Total increase in net assets | 48,897 | 7,820 | 7,498 | ||||||||||||||
Net assets at beginning of period | — | — | — | ||||||||||||||
Net assets at end of period | $ | 48,897 | $ | 7,820 | $ | 7,498 | |||||||||||
Undistributed net investment income at end of period | $ | 60 | $ | 6 | $ | 17 | |||||||||||
1 | Commencement of operations. |
The accompanying notes are an integral part of the financial statements.
14 First American Funds 2007 Annual Report
Table of Contents
(This page intentionally left blank.)
Table of Contents
Financial Highlights For a share outstanding throughout the indicated period.
Net Asset | Realized and | Distributions | Net Asset | |||||||||||||||||||||||||
Value | Net | Unrealized | from Net | Value | ||||||||||||||||||||||||
Beginning | Investment | Gains on | Investment | End of | ||||||||||||||||||||||||
of Period | Income (Loss) | Investments | Income | Period | ||||||||||||||||||||||||
Quantitative Large Cap Core Fund1 | ||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
20072 | $ | 25.00 | $ | 0.06 | $ | 1.91 | $ | (0.07 | ) | $ | 26.90 | |||||||||||||||||
Class C | ||||||||||||||||||||||||||||
20072 | $ | 25.00 | $ | 0.02 | $ | 1.90 | $ | (0.04 | ) | $ | 26.88 | |||||||||||||||||
Class R | ||||||||||||||||||||||||||||
20072 | $ | 25.00 | $ | 0.08 | $ | 1.87 | $ | (0.06 | ) | $ | 26.89 | |||||||||||||||||
Class Y | ||||||||||||||||||||||||||||
20072 | $ | 25.00 | $ | 0.11 | $ | 1.87 | $ | (0.08 | ) | $ | 26.90 | |||||||||||||||||
Quantitative Large Cap Growth Fund 1 | ||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
20072 | $ | 25.00 | $ | 0.02 | $ | 2.53 | $ | (0.04 | ) | $ | 27.51 | |||||||||||||||||
Class C | ||||||||||||||||||||||||||||
20072 | $ | 25.00 | $ | (0.03 | ) | $ | 2.53 | $ | (0.03 | ) | $ | 27.47 | ||||||||||||||||
Class R | ||||||||||||||||||||||||||||
20072 | $ | 25.00 | $ | 0.04 | $ | 2.50 | $ | (0.03 | ) | $ | 27.51 | |||||||||||||||||
Class Y | ||||||||||||||||||||||||||||
20072 | $ | 25.00 | $ | 0.07 | $ | 2.50 | $ | (0.05 | ) | $ | 27.52 | |||||||||||||||||
Quantitative Large Cap Value Fund1 | ||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
20072 | $ | 25.00 | $ | 0.10 | $ | 1.51 | $ | (0.08 | ) | $ | 26.53 | |||||||||||||||||
Class C | ||||||||||||||||||||||||||||
20072 | $ | 25.00 | $ | 0.08 | $ | 1.48 | $ | (0.05 | ) | $ | 26.51 | |||||||||||||||||
Class R | ||||||||||||||||||||||||||||
20072 | $ | 25.00 | $ | 0.11 | $ | 1.49 | $ | (0.07 | ) | $ | 26.53 | |||||||||||||||||
Class Y | ||||||||||||||||||||||||||||
20072 | $ | 25.00 | $ | 0.15 | $ | 1.48 | $ | (0.09 | ) | $ | 26.54 | |||||||||||||||||
1 | Per share data calculated using average shares outstanding method. | |
2 | Commenced operations on July 31, 2007. All ratios for the period July 31, 2007 to October 31, 2007 have been annualized, except total return and portfolio turnover. | |
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.
16 First American Funds 2007 Annual Report
Table of Contents
Ratio of Net | ||||||||||||||||||||||||||||||||||||
Ratio of | Investment | |||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses | Income (Loss) | ||||||||||||||||||||||||||||||||||
Ratio of | Investment | to Average | to Average | |||||||||||||||||||||||||||||||||
Net Assets | Expenses to | Income (Loss) | Net Assets | Net Assets | Portfolio | |||||||||||||||||||||||||||||||
Total | End of | Average | to Average | (Excluding | (Excluding | Turnover | ||||||||||||||||||||||||||||||
Return3 | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | ||||||||||||||||||||||||||||||
7.89 | % | $ | 131 | 0.70 | % | 0.91 | % | 1.40 | % | 0.21 | % | 55 | % | |||||||||||||||||||||||
7.69 | % | $ | 15 | 1.45 | % | 0.23 | % | 2.15 | % | (0.47 | )% | 55 | % | |||||||||||||||||||||||
7.81 | % | $ | 6 | 0.95 | % | 1.20 | % | 1.65 | % | 0.50 | % | 55 | % | |||||||||||||||||||||||
7.93 | % | $ | 48,745 | 0.45 | % | 1.73 | % | 1.15 | % | 1.03 | % | 55 | % | |||||||||||||||||||||||
10.22 | % | $ | 71 | 0.70 | % | 0.23 | % | 4.70 | % | (3.77 | )% | 58 | % | |||||||||||||||||||||||
10.01 | % | $ | 18 | 1.45 | % | (0.36 | )% | 5.45 | % | (4.36 | )% | 58 | % | |||||||||||||||||||||||
10.17 | % | $ | 6 | 0.95 | % | 0.54 | % | 4.95 | % | (3.46 | )% | 58 | % | |||||||||||||||||||||||
10.29 | % | $ | 7,725 | 0.45 | % | 1.07 | % | 4.45 | % | (2.93 | )% | 58 | % | |||||||||||||||||||||||
6.46 | % | $ | 31 | 0.70 | % | 1.57 | % | 4.73 | % | (2.46 | )% | 65 | % | |||||||||||||||||||||||
6.25 | % | $ | 5 | 1.45 | % | 1.18 | % | 5.48 | % | (2.85 | )% | 65 | % | |||||||||||||||||||||||
6.41 | % | $ | 5 | 0.95 | % | 1.68 | % | 4.98 | % | (2.35 | )% | 65 | % | |||||||||||||||||||||||
6.52 | % | $ | 7,457 | 0.45 | % | 2.28 | % | 4.48 | % | (1.75 | )% | 65 | % | |||||||||||||||||||||||
First American Funds 2007 Annual Report 17
Table of Contents
Notes to Financial Statements October 31, 2007, all dollars and shares are rounded to thousands (000)
1 > | Organization |
The Quantitative Large Cap Core Fund, Quantitative Large Cap Growth Fund, and Quantitative Large Cap Value 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. The funds commenced operations July 31, 2007. As of October 31, 2007, FAIF offered 42 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. The Quantitative Large Cap Core Fund, Quantitative Large Cap Growth Fund, and Quantitative Large Cap Value Fund are each diversified open-end management investment companies. | |
The funds offer Class A, Class C, Class R, and Class Y shares. Class A shares are sold with a front-end sales charge. Class C shares may be subject to a contingent deferred sales charge for 12 months. Class R shares have no sales charge and are offered only through certain tax-deferred retirement plans. Class Y shares have no sales charge and are offered only to qualifying institutional investors and certain other qualifying accounts. | |
The funds’ prospectus provides descriptions of each fund’s investment objective, principal investment strategies, and principal risks. All classes of shares in a fund have identical voting, dividend, liquidation, and other rights, and the same terms and conditions, except that certain fees, including distribution and shareholder servicing fees, may differ among classes. Each class has exclusive voting rights on any matters relating to that class’s servicing or distribution arrangements. |
2 > | Summary of Significant Accounting Policies |
The significant accounting policies followed by the funds are as follows: | |
SECURITY VALUATIONS – Security valuations for the funds’ investments are furnished by an independent pricing service that has been approved by the funds’ board of directors. Investments in equity securities that are traded on a national securities exchange (or reported on the Nasdaq national market system) are stated at the last quoted sales price if readily available for such securities on each business day. For securities traded on the Nasdaq national market system, the funds utilize the Nasdaq Official Closing Price which compares the last trade to the bid/ask range of a security. If the last trade falls within the bid/ask range, then that price will be the closing price. If the last trade is outside the bid/ask range, and falls above the ask, the ask 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. Debt obligations with 60 days or less remaining until maturity may be valued at their amortized cost, which approximates market value. Investments in open-end mutual funds are valued at their respective net asset values on the valuation date. | |
The following investment vehicles, when held by a fund, are priced as follows: Exchange listed futures and options on futures are priced at their last sale price on the exchange on which they are principally traded, as determined by FAF Advisors, on the day the valuation is made. If there were no sales on that day, futures and options on futures will be valued at the last reported bid price. Options on securities, indices, and currencies traded on Nasdaq or listed on a stock exchange, whether domestic or foreign, are valued at the last sale price on Nasdaq or on any exchange on the day the valuation is made. If there were no sales on that day, the options will be valued at the last sale price on the previous valuation date. Last sale prices are obtained from an independent pricing service. Forward contracts (other than currency forward contracts), swaps, and over-the-counter options on securities, indices, and currencies are valued at the quotations received from an independent pricing service, if available. | |
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 |
18 First American Funds 2007 Annual Report
Table of Contents
valued at fair value. As of October 31, 2007, the funds held no fair valued securities. | |
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. | |
DISTRIBUTIONS TO SHAREHOLDERS – Distributions from net investment income are declared and paid quarterly by each of the funds. Distributions are payable in cash or reinvested in additional shares of the fund. Any net realized capital gains on sales of a fund’s securities are distributed to shareholders at least annually. | |
FEDERAL TAXES – Each fund is treated as a separate taxable entity. Each fund intends to continue to qualify as a regulated investment company as provided in Subchapter M of the Internal Revenue Code, as amended, and to distribute all taxable income, if any, to its shareholders. Accordingly, no provision for federal income taxes is required. | |
The tax character of distributions paid 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 in which the amounts are distributed may differ from the period that the income or realized gains (losses) were recorded by the fund. The tax character of distributions paid during the fiscal period ended October 31, 2007, were as follows: |
October 31, 2007 | ||||||||||||
Ordinary | ||||||||||||
Fund | Income | |||||||||||
Quantitative Large Cap Core Fund | $ | 144 | ||||||||||
Quantitative Large Cap Growth Fund | 14 | |||||||||||
Quantitative Large Cap Value Fund | 25 | |||||||||||
As of October 31, 2007, the components of accumulated earnings on a tax-basis were as follows: |
Undistributed | Undistributed | Total | ||||||||||||||
Ordinary | Long Term | Unrealized | Accumulated | |||||||||||||
Fund | Income | Capital Gains | Appreciation | Earnings | ||||||||||||
Quantitative Large Cap Core Fund | $ | 459 | $ | 54 | $ | 2,924 | $ | 3,437 | ||||||||
Quantitative Large Cap Growth Fund | 84 | 1 | 627 | 712 | ||||||||||||
Quantitative Large Cap Value Fund | 88 | 7 | 339 | 434 | ||||||||||||
The difference between book and tax basis unrealized appreciation (depreciation) is primarily due to the tax deferral of losses on wash sales and the amount of gain (loss) recognized for tax purposes due to mark-to-market adjustments on open futures contracts. | |
FUTURES TRANSACTIONS – In order to gain exposure to or protect against changes in the market, and to maintain sufficient liquidity to meet redemption requests, and to increase the level of fund assets devoted to replicating the composition of the S&P and Russell indices while reducing transaction costs, 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 period will be recognized as capital gains (losses) for federal income tax purposes. | |
As of October 31, 2007, the funds’ outstanding futures contracts are disclosed in the Schedule of Investments. | |
ILLIQUID OR RESTRICTED SECURITIES – A security may be considered illiquid if it lacks a readily available market. |
First American Funds 2007 Annual Report 19
Table of Contents
Notes to Financial Statements October 31, 2007, all dollars and shares are rounded to thousands (000)
Securities are generally considered liquid if they can be sold or disposed of in the ordinary course of business within seven days at approximately the price at which the security is valued by the fund. Illiquid securities may be valued under methods approved by the funds’ board of directors as reflecting fair value. Each fund intends to invest no more than 15% of its net assets (determined at the time of purchase and reviewed periodically) in illiquid securities. Certain restricted securities may be considered illiquid. Restricted securities are often purchased in private placement transactions, are not registered under the Securities Act of 1933, may have contractual restrictions on resale, and may be valued under methods approved by the funds’ board of directors as reflecting fair value. Certain restricted securities eligible for resale to qualified institutional investors, including Rule 144A securities, are not subject to the limitation on a fund’s investment in illiquid securities if they are determined to be liquid in accordance with procedures adopted by the funds’ board of directors. At October 31, 2007, the funds held no investments in illiquid securities. | |
SECURITIES LENDING – In order to generate additional income, each fund may lend securities representing up to one-third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks, or other institutional borrowers of securities. Each fund’s policy is to receive collateral from the borrower in the form of cash, U.S. government securities, or other high-grade debt obligations equal to at least 100% of the value of securities loaned. If the value of the securities on loan increases, additional collateral is received from the borrower. As with other extensions of credit, there may be risks of delay in recovery of the securities or even loss of rights in the collateral should the borrower of the security fail financially. | |
U.S. Bank National Association (“U.S. Bank”), the parent company of the funds’ advisor, serves as the securities lending agent for the funds in transactions involving the lending of portfolio securities on behalf of the funds. U.S. Bank acts as the securities lending agent pursuant to, and subject to compliance with conditions contained in, an exemptive order issued by the Securities and Exchange Commission (“SEC”). U.S. Bank receives fees as a percentage of each fund’s net income from securities lending transactions. Collateral for securities on loan is invested in a money market fund administered by FAF Advisors, Inc. (“FAF Advisors”) and FAF Advisors receives an administration fee equal to 0.02% of such fund’s average daily net assets. For the fiscal period ended October 31, 2007, the funds had no securities lending activity. | |
EXPENSES – Expenses that are directly related to one of the funds are charged directly to that fund. Other operating expenses are allocated to the funds on several bases, including evenly across all funds, allocated based on relative net assets of all funds within the First American Family of Funds, or a combination of both methods. Class specific expenses, such as distribution fees and shareholder servicing fees, are borne by that class. Income, other expenses, and realized and unrealized gains and losses of a fund are allocated to each respective class in proportion to the relative net assets of each class. | |
INTERFUND LENDING PROGRAM – Pursuant to an exemptive order issued by the SEC, the funds, along with other registered investment companies in the First American Family of Funds, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating funds. The funds did not have any interfund lending transactions during the fiscal period ended October 31, 2007. | |
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 open-end First American Funds, preselected by each director. All amounts in the Plan are 100% vested and accounts under the Plan are obligations of the funds. Deferred amounts remain in the funds until distributed in accordance with the Plan. | |
USE OF ESTIMATES IN PREPARATION OF FINANCIAL STATEMENTS – The preparation of financial statements, in conformity with U.S. generally accepted accounting principles, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported results of operations during the reporting period. Actual results could differ from those estimates. |
3 > | Fees and Expenses |
INVESTMENT ADVISORY FEES – Pursuant to an investment advisory agreement (the “Agreement”), FAF Advisors manages each fund’s assets and furnishes related office facilities, equipment, research, and personnel. The Agreement requires each fund to pay FAF Advisors a monthly fee based upon average daily net assets. The annual fee for Quantitative Large Cap Core Fund, Quantitative Large Cap Growth Fund, and Quantitative Large Cap Value Fund is 0.30%, 0.30%, and 0.30%, respectively. FAF Advisors has agreed to waive fees and reimburse other fund expenses through July 31, 2008, so that total fund operating expenses, as a percentage of |
20 First American Funds 2007 Annual Report
Table of Contents
average daily net assets, do not exceed the following amounts: |
Share Class | ||||||||||||||||||
Fund | A | C | R | Y | ||||||||||||||
Quantitative Large Cap Core Fund | 0.70 | % | 1.45 | % | 0.95 | % | 0.45 | % | ||||||||||
Quantitative Large Cap Growth Fund | 0.70 | 1.45 | 0.95 | 0.45 | ||||||||||||||
Quantitative Large Cap Value Fund | 0.70 | 1.45 | 0.95 | 0.45 | ||||||||||||||
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. | |
ADMINISTRATION FEES – FAF Advisors serves as the funds’ administrator pursuant to an administration agreement between FAF Advisors and the funds. U.S. Bancorp Fund Services, LLC (“USBFS”) serves as sub-administrator pursuant to a sub-administration agreement between USBFS and FAF Advisors. FAF Advisors is a subsidiary of U.S. Bank. Both U.S. Bank and USBFS are direct subsidiaries of U.S. Bancorp. Under the administration agreement, FAF Advisors is compensated to provide, or compensates other entities to provide, services to the funds. These services include various legal, oversight, administrative, and accounting services. The funds pay FAF Advisors administration fees, which are calculated daily and paid monthly, equal to each fund’s pro rata share of an amount equal, on a annual basis, to 0.25% of the aggregate average daily net assets of all open-end mutual funds in the First American Family of Funds up to $8 billion, 0.235% on the next $17 billion of the aggregate average daily net assets, 0.22% on the next $25 billion of the aggregate average daily net assets, and 0.20% of the aggregate average daily net assets in excess of $50 billion. All fees paid to the sub-administrator are paid from the administration fee. In addition to these fees, the funds may reimburse FAF Advisors and the sub-administrator for any out-of-pocket expenses incurred in providing administration services. | |
TRANSFER AGENT FEES – USBFS serves as the funds’ transfer agent pursuant to a transfer agent agreement with FAIF. The funds are charged transfer agent fees on a per shareholder account basis, subject to a minimum fee per share class. These fees are charged to each fund based upon the number of accounts within that fund. In addition to these fees, the funds may reimburse USBFS for out-of-pocket expenses incurred in providing transfer agent services. | |
CUSTODIAN FEES – U.S. Bank serves as the funds’ custodian pursuant to a custodian agreement with FAIF. The custodian fee charged for each fund is equal to an annual rate of 0.005% of average daily net assets. All fees are computed daily and paid monthly. | |
Under the custodian agreement, interest earned on uninvested cash balances is used to reduce a portion of each fund’s custodian expenses. These credits, if any, are disclosed as “Indirect payments from custodian” in the Statement of Operations. Conversely, the custodian charges a fee for any cash overdrafts incurred, which will increase the fund’s custodian expenses. | |
For the fiscal period ended October 31, 2007, custodian fees for the funds were not increased as a result of overdrafts and were not decreased by as a result of interest earned, respectively. | |
DISTRIBUTION AND SHAREHOLDER SERVICING FEES – Quasar Distributors, LLC (“Quasar”), a subsidiary of U.S. Bancorp, serves as distributor of the funds pursuant to a distribution agreement with FAIF. Under the distribution agreement, and pursuant to a plan adopted by each fund under rule 12b-1 of the Investment Company Act, each fund pays Quasar a monthly distribution and/or shareholder servicing fee equal to an annual rate of 0.25%, 1.00%, and 0.50% of each fund’s average daily net assets attributable to Class A shares, Class C shares, and Class R shares, respectively. Class Y shares pay no distribution or shareholder servicing fees. These fees may be used by Quasar to provide compensation for sales support, distribution activities, and/or shareholder servicing activities. | |
Under the distribution and shareholder servicing agreement, the amounts retained by affiliates of FAF Advisors for the fiscal period ended October 31, 2007 rounds to zero for each fund. | |
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 most other operating expenses, including: legal, auditing, registration fees, postage and printing of shareholder reports, fees and expenses of independent directors, insurance, and other miscellaneous expenses. For the fiscal period ended October 31, 2007, legal fees and expenses of $1 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. |
First American Funds 2007 Annual Report 21
Table of Contents
Notes to Financial Statements October 31, 2007, all dollars and shares are rounded to thousands (000)
For the fiscal period ended October 31, 2007, total front-end sales charges and CDSCs retained by affiliates of FAF Advisors for distributing the funds’ shares were as follows: |
Fund | Amount | |||||
Quantitative Large Cap Core Fund | $ | 2 | ||||
Quantitative Large Cap Growth Fund | — | |||||
Quantitative Large Cap Value Fund | — | |||||
4 > | Capital Share Transactions |
FAIF has 358 billion shares of $0.0001 par value capital stock authorized. Capital share transactions for the funds were as follows: |
Quantitative | Quantitative | Quantitative | |||||||||||||||
Large Cap | Large Cap | Large Cap | |||||||||||||||
Core Fund | Growth Fund | Value Fund | |||||||||||||||
7/31/071 | 7/31/071 | 7/31/071 | |||||||||||||||
to | to | to | |||||||||||||||
10/31/07 | 10/31/07 | 10/31/07 | |||||||||||||||
Class A: | |||||||||||||||||
Shares issued | 5 | 2 | 1 | ||||||||||||||
Shares issued in lieu of cash distributions | — | — | — | ||||||||||||||
Shares redeemed | — | — | — | ||||||||||||||
Total Class A transactions | 5 | 2 | 1 | ||||||||||||||
Class C: | |||||||||||||||||
Shares issued | 1 | 1 | — | ||||||||||||||
Shares issued in lieu of cash distributions | — | — | — | ||||||||||||||
Shares redeemed | — | — | — | ||||||||||||||
Total Class C transactions | 1 | 1 | — | ||||||||||||||
Class R: | |||||||||||||||||
Shares issued | — | — | — | ||||||||||||||
Shares issued in lieu of cash distributions | — | — | — | ||||||||||||||
Shares redeemed | — | — | — | ||||||||||||||
Total Class R transactions | — | — | — | ||||||||||||||
Class Y: | |||||||||||||||||
Shares issued | 1,887 | 280 | 280 | ||||||||||||||
Shares issued in lieu of cash distributions | 5 | 1 | 1 | ||||||||||||||
Shares redeemed | (80 | ) | — | — | |||||||||||||
Total Class Y transactions | 1,812 | 281 | 281 | ||||||||||||||
Net increase in capital shares | 1,818 | 284 | 282 | ||||||||||||||
1 Commencement of operations
5 > | Investment Security Transactions |
During the fiscal period ended October 31, 2007, purchases of securities and proceeds from sales of securities, other than temporary investments in short-term securities, were as follows: |
Fund | Purchases | Sales | ||||||||
Quantitative Large Cap Core Fund | $ | 63,558 | $ | 18,910 | ||||||
Quantitative Large Cap Growth Fund | 10,097 | 3,177 | ||||||||
Quantitative Large Cap Value Fund | 9,988 | 3,455 | ||||||||
The aggregate gross unrealized appreciation and depreciation of securities held by the funds and the total cost of securities for federal income tax purposes at October 31, 2007, were as follows: |
Federal | ||||||||||||||||
Aggregate | Aggregate | Income | ||||||||||||||
Gross | Gross | Tax | ||||||||||||||
Fund | Appreciation | Depreciation | Net | Cost | ||||||||||||
Quantitative Large Cap Core Fund | $ | 3,413 | $ | (489 | ) | $ | 2,924 | $ | 45,890 | |||||||
Quantitative Large Cap Growth Fund | 711 | (84 | ) | 627 | 7,134 | |||||||||||
Quantitative Large Cap Value Fund | 388 | (49 | ) | 339 | 7,092 | |||||||||||
6 > | Sector Risks |
Portfolios that primarily invest in a particular sector may experience greater volatility than portfolios investing in a broad range of industry sectors. As of October 31, 2007, Quantitative Large Cap Growth Fund had a significant portion of its assets invested in the information |
22 First American Funds 2007 Annual Report
Table of Contents
technology sector, which could be more sensitive to short product cycles and aggressive pricing than the technology industry as a whole. |
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 Pronouncements |
On July 13, 2006, the Financial Accounting Standards Board (“FASB”) released FASB Interpretation No. 48, “Accounting for Uncertainty in Income Taxes” (“FIN 48”). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented, and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the funds’ tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current period. Adoption of FIN 48 is required for fiscal periods beginning after December 15, 2006, and is to be applied to all open tax periods as of the effective date. Recent Securities and Exchange Commission guidance allows implementing FIN 48 in fund net asset value calculations as late as the funds’ last net asset value calculation in the first required financial statement reporting period. As a result, the funds will incorporate FIN 48 in their semiannual report on April 30, 2008. At this time, management is evaluating the implications of FIN 48 and its impact in the financial statements has not yet been determined. | |
In September 2006, the FASB issued Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value for financial reporting, establishes a framework for measuring fair value, and requires additional disclosure about the use of fair value measurements. FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. As of October 31, 2007, the funds do not believe the adoption of FAS 157 will impact the amounts reported in the financial statements; however, additional disclosures will be required about the inputs used to develop the measurements of fair value and the effect of certain measurements reported in the Statement of Operations for a fiscal period. |
First American Funds 2007 Annual Report 23
Table of Contents
Notice to Shareholders October 31, 2007 (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 2008 on Form 1099-DIV. Please consult your tax advisor for proper treatment of this information. | |
For the fiscal period ended October 31, 2007, each fund has designated long term capital gains and ordinary 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) (a) | |||||||||
Quantitative Large Cap Core Fund | — | % | 100 | % | 100 | % | ||||||
Quantitative Large Cap Growth Fund | — | 100 | 100 | |||||||||
Quantitative Large Cap Value Fund | — | 100 | 100 | |||||||||
(a) | Based on a percentage of the fund’s total distributions. |
Shareholder Notification of Federal Tax Status:
Each fund has designated the following percentages of the ordinary income distributions during the fiscal period ended October 31, 2007 as dividends qualifying for the dividends received deduction available to corporate shareholders: |
Fund | ||||||||||||
Quantitative Large Cap Core Fund | 100.00 | % | ||||||||||
Quantitative Large Cap Growth Fund | 100.00 | |||||||||||
Quantitative Large Cap Value Fund | 97.10 | |||||||||||
In addition, each fund has designated the following percentages of the ordinary income distributions from net investment income during the fiscal period ended October 31, 2007 as qualified dividend income available to individual shareholders under the Jobs and Growth Tax Relief Reconciliation Act of 2003: |
Fund | ||||||||||||
Quantitative Large Cap Core Fund | 100.00 | % | ||||||||||
Quantitative Large Cap Growth Fund | 100.00 | |||||||||||
Quantitative Large Cap Value Fund | 99.48 | |||||||||||
Additional Information Applicable to Foreign Shareholders Only:
The percentage of ordinary income distributions that are designated as interest-related dividends under Internal Revenue Code Section 871(k)(1)(C) for each fund was as follows: |
Fund | ||||||||||||
Quantitative Large Cap Core Fund | 5.28 | % | ||||||||||
Quantitative Large Cap Growth Fund | 3.43 | |||||||||||
Quantitative Large Cap Value Fund | 3.23 | |||||||||||
The percentage of ordinary income distributions that are designated as short-term capital gain distributions under Internal Revenue Code Section 871(k)(2)(C) for each fund was as follows: |
Fund | ||||||||||||
Quantitative Large Cap Core Fund | 0.00 | % | ||||||||||
Quantitative Large Cap Growth Fund | 0.00 | |||||||||||
Quantitative Large Cap Value Fund | 0.00 | |||||||||||
HOW TO OBTAIN A COPY OF THE FUNDS’ PROXY VOTING POLICIES
A description of the policies and procedures that the funds use to determine how to vote proxies relating to portfolio securities, as well as information regarding how the funds voted proxies relating to portfolio securities is available |
24 First American Funds 2007 Annual Report
Table of Contents
(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 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 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 www.firstamericanfunds.com on a quarterly basis. The funds will attempt to post such information within 10 business days of the calendar quarter-end. |
First American Funds 2007 Annual Report 25
Table of Contents
Notice to Shareholders October 31, 2007 (unaudited)
Directors and Officers of the Funds
Independent Directors | ||||||||||||
Other | ||||||||||||
Position(s) | Term of Office | Number of Portfolios | Directorships | |||||||||
Name, Address, and | Held | and Length of | Principal Occupation(s) | in Fund Complex | Held by | |||||||
Year of Birth | with Funds | Time Served | During Past 5 Years | Overseen by Director | Director † | |||||||
Benjamin R. Field III P.O. Box 1329 Minneapolis, MN 55440-1329 (1938) | Director | Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since September 2003 | Retired; Senior Financial Advisor, Bemis Company, Inc. from May 2002 through February 2004 | First American Funds Complex: twelve registered investment companies, including sixty-two portfolios | None | |||||||
Roger A. Gibson P.O. Box 1329 Minneapolis, MN 55440-1329 (1946) | Director | Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since October 1997 | Director, Charterhouse Group, Inc., a private equity firm, since October 2005; Vice President and Chief Operating Officer, Cargo-United Airlines, from July 2001 through July 2004 | First American Funds Complex: twelve registered investment companies, including sixty-two 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 | First American Funds Complex: twelve registered investment companies, including sixty-two portfolios | None | |||||||
John P. Kayser P.O. Box 1329 Minneapolis, MN 55440-1329 (1949) | Director | Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since October 2006 | Retired; Principal from 1983 to 2004 and Chief Financial Officer and Chief Administrative Officer from 1988 to 2002, William Blair & Company, LLC | First American Funds Complex: twelve registered investment companies, including sixty-two 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 | First American Funds Complex: twelve registered investment companies, including sixty-two portfolios | None | |||||||
Richard K. Riederer P.O. Box 1329 Minneapolis, MN 55440-1329 (1944) | Director | Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since August 2001 | Owner and Chief Executive Officer, RKR Consultants, Inc. and non-profit board member since 2005 | First American Funds Complex: twelve registered investment companies, including sixty-two 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 September 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, Excensus™, LLC, a strategic demographic planning and application development firm since 2001 | First American Funds Complex: twelve registered investment companies, including sixty-two portfolios | None | |||||||
26 First American Funds 2007 Annual Report
Table of Contents
Independent Directors — concluded | ||||||||||||
Other | ||||||||||||
Position(s) | Term of Office | Number of Portfolios | Directorships | |||||||||
Name, Address, and | Held | and Length of | Principal Occupation(s) | in Fund Complex | Held by | |||||||
Year of Birth | with Funds | Time Served | During Past 5 Years | Overseen by Director | Director † | |||||||
Virginia L. Stringer P.O. Box 1329 Minneapolis, MN 55440-1329 (1944) | Chair; Director | Chair Term three years. Directors Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Chair of FAIF’s Board since September 1997; Director of FAIF since September 1987 | Governance consultant and non-profit board member; former 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 sixty-two portfolios | None | |||||||
James M. Wade P.O. Box 1329 Minneapolis, MN 55440-1329 (1943) | Director | Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since August 2001 | Owner and President, Jim Wade Homes, a homebuilding company | First American Funds Complex: twelve registered investment companies, including sixty-two portfolios | None | |||||||
† | Includes only directorships in a company with a class of securities registered pursuant to Section 12 of the Securities Exchange Act or subject to the requirements of Section 15(d) of the Securities Exchange Act, or any company registered as an investment company under the Investment Company Act. |
The Statement of Additional Information (SAI) includes additional information about fund directors and is available upon request without charge by calling 800-677-FUND or writing to First American Funds, P.O. Box 1330, Minneapolis, Minnesota, 55440-1330.
First American Funds 2007 Annual Report 27
Table of Contents
Notice to Shareholders October 31, 2007 (unaudited)
Officers | ||||||
Position(s) | Term of Office | |||||
Name, Address, and | Held | and Length of | ||||
Year of Birth | with Funds | Time Served | Principal Occupation(s) During Past 5 Years | |||
Thomas S. Schreier, Jr. FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1962)* | President | Re-elected by the Board annually; President of FAIF since February 2001 | Chief Executive Officer of FAF Advisors, Inc.; Chief Investment Officer of FAF Advisors, Inc., since September 2007 | |||
Jeffery M. Wilson FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1956)* | Vice President – Administration | Re-elected by the Board annually; Vice President — Administration of FAIF since March 2000 | Senior Vice President 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 October 2004 | Mutual Funds 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 | Mutual Funds Assistant Treasurer, FAF Advisors, Inc., since September 2005; prior thereto, Director, Senior Project Manager, FAF Advisors, Inc. from May 2003 to September 2005; prior thereto, 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 March 2005 | Chief Compliance Officer for First American Funds and FAF Advisors, Inc., since March 2005; prior thereto, Chief Compliance Officer, Franklin Advisors, Inc. and Chief Compliance Counsel, Franklin Templeton Investments from March 2004 to March 2005; prior thereto, Vice President, Charles Schwab & Co., Inc. | |||
Jason K. Mitchell FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1976)* | Anti-Money Laundering Officer | Re-elected by the Board annually; Anti-Money Laundering Officer of FAIF since September 2006 | Compliance Manager, FAF Advisors, Inc., since June 2006; prior thereto, Compliance Analyst, FAF Advisors, Inc. from October 2004 to June 2006; prior thereto, Senior Systems Helpdesk Analyst, Wachovia Retirement Services from November 2002 to October 2004; prior thereto, Senior Retirement Plan Specialist, PFPC, Inc. | |||
Kathleen L. Prudhomme FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1953)* | Secretary | Re-elected by the Board annually; Secretary of FAIF since December 2004; prior thereto, Assistant Secretary of FAIF since September 1998 through December 2004 | Deputy General Counsel, FAF Advisors, Inc., since November 2004; prior thereto, Partner, Dorsey & Whitney LLP, a Minneapolis-based law firm | |||
James D. Alt Dorsey & Whitney LLP 50 South Sixth Street Suite 1500, Minneapolis, MN 55402 (1951) | Assistant Secretary | Re-elected by the Board annually; Assistant Secretary of FAIF since December 2004; prior thereto, Secretary of FAIF since June 2002; Assistant Secretary of FAIF from September 1998 through June 2002 | Partner, Dorsey & Whitney LLP, a Minneapolis-based law firm | |||
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 | Counsel, FAF Advisors, Inc., since August 2004; prior thereto, Senior Counsel, Thrivent Financial for Lutherans | |||
James R. Arnold U.S. Bancorp Fund Services, LLC 615 E. Michigan Street Milwaukee, WI 53202 (1957)* | Assistant Secretary | Re-elected by the Board annually; Assistant Secretary of FAIF since June 2003 | Senior Vice President, U.S. Bancorp Fund Services, LLC | |||
Richard J. Ertel FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1967)* | Assistant Secretary | Re-elected by the Board annually; Assistant Secretary of FAIF since June 2006 and from June 2003 through August 2004 | Counsel, FAF Advisors, Inc., since May 2006; prior thereto, Counsel, Ameriprise Financial Services, Inc. from September 2004 to May 2006; prior thereto, Counsel, FAF Advisors, Inc. from May 2003 to August 2004; prior to May 2003, Associate Counsel, Hartford Life and Accident Insurance Company | |||
* | Messrs. Schreier, Wilson, Gariboldi, Lui, Mitchell, 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. Mr. Arnold is an officer of U.S. Bancorp Fund Services, LLC, which is a subsidiary of U.S. Bancorp and which serves as Transfer Agent for FAIF. |
28 First American Funds 2007 Annual Report
Table of Contents
Board of Directors First American Investment Funds, Inc.
Virginia Stringer | |
Chairperson of First American Investment Funds, Inc. | |
Governance Consultant; former Owner and President of Strategic Management | |
Resources, Inc. | |
Benjamin Field III | |
Director of First American Investment Funds, Inc. | |
Retired; former Senior Financial Advisor, Senior Vice President, | |
Chief Financial Officer, and Treasurer of Bemis Company, Inc. | |
Roger Gibson | |
Director of First American Investment Funds, Inc. | |
Director of Charterhouse Group, Inc. | |
Victoria Herget | |
Director of First American Investment Funds, Inc. | |
Investment Consultant; former Managing Director of Zurich Scudder Investments | |
John Kayser | |
Director of First American Investment Funds, Inc. | |
Retired; former Principal, Chief Financial Officer, and Chief Administrative Officer of | |
William Blair & Company, LLC | |
Leonard Kedrowski | |
Director of First American Investment Funds, Inc. | |
Owner and President of Executive and Management Consulting, Inc. | |
Richard Riederer | |
Director of First American Investment Funds, Inc. | |
Owner and Chief Executive Officer of RKR Consultants, Inc. | |
Joseph Strauss | |
Director of First American Investment Funds, Inc. | |
Owner and President of Strauss Management Company | |
James Wade | |
Director of First American Investment Funds, Inc. | |
Owner and President of Jim Wade Homes | |
First American Investment Funds’ Board of Directors is comprised entirely of | |
independent directors. |
Table of Contents
![(FIRST AMERICAN FUNDS LOGO)](https://capedge.com/proxy/N-CSR/0000950137-08-000175/c21990faflogo.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. | |
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.
0153-07 12/2007 AR-QUANT
Item 2—Code of Ethics
The registrant has adopted a code of ethics that applies to its principal executive officer and principal financial officer. During the period covered by this report, there were no amendments to the provisions of the registrant’s code of ethics that apply to the registrant’s principal executive officer and principal financial officer and that relate to any element of the code of ethics definition enumerated in this Item. During the period covered by this report, the registrant did not grant any waivers, including implicit waivers, from any provision of its code of ethics. The registrant undertakes to provide to any person without charge, upon request, a copy of its code of ethics by calling 1-800-677-3863.
Item 3—Audit Committee Financial Expert
The registrant’s Board of Directors has determined that Leonard W. Kedrowski, Benjamin R. Field III, John P. Kayser, and Richard K. Riederer, members of the registrant’s Audit Committee, are each an “audit committee financial expert” and are “independent,” as these terms are defined in this Item.
Item 4—Principal Accountant Fees and Services
(a) | Audit Fees — Ernst & Young LLP (“E&Y”) billed the registrant audit fees totaling $938,498 in the fiscal period ended October 31, 2007 and $1,066,262 in the fiscal year ended October 31, 2006, 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 $4,117 in the fiscal period ended October 31, 2007 and $3,288 in the fiscal year ended October 31, 2006, including fees associated with the semi-annual review of fund disclosures. | |
(c) | Tax Fees — E&Y billed the registrant fees of $159,670 in the fiscal period ended October 31, 2007 and $160,419 in the fiscal year ended October 31, 2006, 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 October 31, 2007 and the fiscal year ended October 31, 2006. | |
(e)(1) | The audit committee’s pre-approval policies and procedures pursuant to paragraph (c)(7) of Rule 2-01 of Regulation S-X are set forth below: | |
Audit Committee policy regarding pre-approval of services provided by the Independent Auditor | ||
The Audit Committee of the First American Funds (“Committee”) has responsibility for ensuring that all services performed by the independent audit firm for the funds do not impair the firm’s independence. This review is intended to provide reasonable oversight without removing management from its responsibility for day-to-day operations. In this regard, the Committee should: |
• | Understand the nature of the professional services expected to be provided and their impact on auditor independence and audit quality | ||
• | Examine and evaluate the safeguards put into place by the Company and the auditor to safeguard independence | ||
• | Meet quarterly with the partner of the independent audit firm | ||
• | Consider approving categories of service that are not deemed to impair independence for a one-year period |
It is important that a qualitative rather than a mere quantitative evaluation be performed by the Committee in discharging its responsibilities.
Policy for Audit and Non-Audit Services Provided to the Funds
Table of Contents
On an annual basis, the Committee will review and consider whether to pre-approve the financial plan for audit fees as well as categories of audit-related and non-audit services that may be performed by the funds’ independent audit firm directly for the funds. At least annually the Committee will receive a report from the independent audit firm of all audit and non-audit services, which were approved during the year.
The engagement of the independent audit firm for any non-audit service requires the written pre-approval of the Treasurer of the funds and all non-audit services performed by the independent audit firm will be disclosed in the required SEC periodic filings.
In connection with the Committee review and pre-approval responsibilities, the review by the Committee will consist of the following:
Audit Services
The categories of audit services and related fees to be reviewed and considered for pre-approval annually by the Committee or its delegate include the following:
• | Annual Fund financial statement audits | ||
• | Seed audits (related to new product filings, as required) | ||
• | SEC and regulatory filings and consents |
Audit-related Services
In addition, the following categories of audit-related services are deemed to be consistent with the role of the independent audit firm and, as such, will be considered for pre-approval by the Committee or its delegate, on an annual basis.
• | Accounting consultations | ||
• | Fund merger support services | ||
• | Other accounting related matters | ||
• | Agreed Upon Procedure Reports | ||
• | Attestation Reports | ||
• | Other Internal Control Reports |
Notwithstanding any annual pre-approval of these categories of services, individual projects with an estimated fee in excess of $25,000 are subject to pre-approval by the Committee Chair or its delegate on a case-by-case basis. Individual projects with an estimated fee in excess of $50,000 are subject to pre-approval by the Committee or its delegate on a case-by-case basis.
Tax Services
The following categories of tax services are deemed to be consistent with the role of the independent audit firm and, as such, will be considered for pre-approval by the Committee or its delegate, on an annual basis.
• | Tax compliance services related to the filing or amendment of the following: |
• | Federal, state and local income tax compliance, and | ||
• | Sales and use tax compliance |
• | Timely RIC qualification reviews | ||
• | Tax distribution analysis and planning | ||
• | Tax authority examination services |
Table of Contents
• | 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.
(e)(2) | All of the services described in paragraphs (b) through (d) of this Item 4 were pre-approved by the audit committee. | |
(f) | All services performed on the engagement to audit the registrant’s financial statements for the most recent fiscal period end were performed by the principal accountant’s full-time, permanent employees. |
Table of Contents
(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 $163,787 in the fiscal period October 31, 2007 and $163,707 in the fiscal year ended October 31, 2006. | |
(h) | The registrant’s audit committee has determined that the provision of non-audit services to the registrant’s investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant, that were not pre-approved is compatible with maintaining E&Y’s independence. |
Item 5—Audit Committee of Listed Registrants
Not applicable.
Item 6—Schedule of Investments
The schedule is included as part of the report to shareholders filed under Item 1 of this Form.
Item 7—Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8—Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9—Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10—Submission of Matters to a Vote of Security Holders
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of directors, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14A, or this item.
Item 11—Controls and Procedures
(a) | The registrant’s principal executive officer and principal financial officer have evaluated the effectiveness of the registrant’s disclosure controls and procedures within 90 days of the date of this filing and have concluded that the registrant’s disclosure controls and procedures were effective, as of that date, in ensuring that information required to be disclosed by the registrant in this Form N-CSR was recorded, processed, summarized and reported timely. | |
(b) | There were no changes in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12—Exhibits
(a)(1) | Not applicable. Registrant’s code of ethics is provided to any person upon request without charge. | |
(a)(2) | Certifications of the principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940 are filed as exhibits hereto. | |
(a)(3) | Not applicable. | |
(b) | Certifications of the principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(b) under the Investment Company Act of 1940 are filed as exhibits hereto. |
Table of Contents
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: January 7, 2008
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: January 7, 2008
By: | /s/ Charles D. Gariboldi, Jr. | |||
Charles D. Gariboldi, Jr. | ||||
Treasurer | ||||
Date: January 7, 2008