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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-05309
First American Investment Funds, Inc.
(Exact name of registrant as specified in charter)
800 Nicollet Mall, Minneapolis, MN (Address of principal executive offices) | 55402 (Zip code) |
Charles D. Gariboldi, Jr., 800 Nicollet Mall, Minneapolis, MN 55402
(Name and address of agent for service)
(Name and address of agent for service)
Registrant’s telephone number, including area code: 800-677-3863
Date of fiscal period end: June 30, 2008
Date of reporting period: June 30, 2008
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. Section 3507.
Item 1. Report to Shareholders
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Table of Contents
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Mutual fund investing involves risk; principal loss is possible.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
Message to Shareholders August 11, 2008
Dear Shareholders:
We invite you to take a few minutes to review the results of the fiscal year ended June 30, 2008.
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 2008 Annual Report 1
Explanation of Financial Statements
As a shareholder in First American Funds, you receive shareholder reports semiannually. We strive to present this financial information in an easy-to-understand format; however, for many investors, the information contained in this shareholder report may seem very technical. So, we would like to take this opportunity to explain several sections of the shareholder report.
The Schedule of Investments details all of the securities held in the fund and their related dollar values on the last day of the reporting period. Securities are usually presented by type (common stock, bonds, etc.) and by industry classification (banking, communications, etc.). This information is useful for analyzing how your fund’s assets are invested and seeing where your portfolio manager believes the best opportunities exist to meet your objectives. Holdings are subject to change without notice and do not constitute a recommendation of any individual security. The Notes to the Financial Statements provide additional details on how the securities are valued.
The Statement of Assets and Liabilities lists the assets and liabilities of the fund and presents the fund’s net asset value (“NAV”) per share on the last day of the reporting period. The NAV is calculated by dividing the fund’s net assets (assets minus liabilities) by the number of shares outstanding. The investments in securities, as presented in the Schedule of Investments, comprise substantially all of the fund’s assets. Other assets include cash and receivables for items such as income earned by the fund but not yet received. Liabilities include payables for items such as fund expenses incurred but not yet paid.
The Statement of Operations details the dividends and interest income earned from securities as well as the expenses incurred by the fund during the reporting period. Fund expenses may be reduced through fee waivers or reimbursements. This statement reflects total expenses before any waivers or reimbursements, the amount of waivers and reimbursements (if any), and the net expenses. This statement also shows the net realized and unrealized gains and losses from investments owned during the period. The Notes to Financial Statements provide additional details on investment income and expenses of the fund.
The Statement of Changes in Net Assets describes how the fund’s net assets were affected by its operating results, distributions to shareholders, and shareholder transactions during the reporting period. This statement is important to investors because it shows exactly what caused the fund’s net asset size to change during the period.
The Financial Highlights provide a per-share breakdown of the components that affected the fund’s NAV for the current and past reporting periods. It also shows total return, expense ratios, net investment income ratios, and portfolio turnover rates. The net investment income ratios summarize the income earned less expenses, divided by the average net assets. The expense ratios represent the percentages of average net assets that were used to cover operating expenses during the period. Expense ratios can vary across funds for a number of reasons, including differences in advisory fees and the average shareholder account size. The portfolio turnover rate represents the percentage of the fund’s holdings that have changed over the course of the period, and gives an idea of how long the fund holds onto a particular security. A 100% turnover rate implies that an amount equal to the value of the entire portfolio is turned over in a year through the purchase and sale of securities.
The Notes to Financial Statements disclose the organizational background of the fund, its significant accounting policies, federal tax information, fees and compensation paid to affiliates, and significant risks and contingencies.
We hope this guide to your shareholder report will help you get the most out of this important resource. You can visit First American Funds’ website for other useful information on each of our funds, including fund prices, performance, fund manager bios, dividends, and downloadable fact sheets. For more information, call First American Investor Services at 800.677.FUND or visit firstamericanfunds.com.
2 First American Funds 2008 Annual Report
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Core Bond Fund
Investment Objective: providing high current income consistent with limited risk to capital
How did the fund perform for the fiscal year ended June 30, 2008?
The First American Core Bond Fund (the “fund”), Class Y shares, returned 5.60% for the fiscal year ended June 30, 2008 (Class A shares returned 5.24% without taking the sales charge into account). By comparison, the fund’s benchmark, the Lehman Aggregate Bond Index*, returned 7.12% for the same period. Performance for the fund’s peer group, the Lipper Corporate Debt Funds A-Rated Average*, was 3.06% for the same period.
What were the general economic and market conditions during the fiscal year?
Economic growth turned sharply lower following residual strength in the third quarter of 2007. Gross Domestic Product (“GDP”) contracted slightly in the final quarter of 2007 and produced modest growth in the first half of 2008. The modest growth reported during the first half of 2008 reflected persistent strength in foreign economic activity which aided exports, and fiscal stimulus which provided a substantial boost to disposable income, supporting real personal consumption expenditures. Despite modest gains in GDP during the first half of 2008, payroll employment has steadily declined and the unemployment rate has risen sharply during this period. The weakness in labor markets and broader economic activity, along with ongoing disruptions within the credit and financial markets, prompted the Federal Reserve (“Fed”) to continue easing monetary policy into early 2008, bringing the funds rate down to the current level of 2%, despite inflationary pressures that were primarily concentrated in energy and other commodity markets. Earnings estimates for the S&P 500 have been reduced dramatically over this period as a result of financial sector losses and weakening in broader economic activity.
How did market conditions and investment strategies affect the fund’s performance?
The financial markets were extremely volatile during the fiscal year. Prolonged weakness in domestic home prices exposed aggressive mortgage loan underwriting standards and sloppy ratings agency methodologies. Many loans originated in 2006 and 2007 performed much worse than expected, and credit losses for U.S. and foreign financial institutions skyrocketed. At the same time, lending terms for loan-dependent fixed-income players became onerous, leading to large-scale debt reduction by hedge funds, investment managers, and broker-dealers. Ultimately, this tightening in credit availability broadened, manifesting itself in a full-blown credit crunch affecting all consumer and commercial sectors.
The credit crisis placed enormous pressure on the valuations of all non-Treasury fixed-income securities, particularly in the mortgage-related sectors, causing them to underperform government securities by wide margins. The fund was defensively positioned within the corporate bond sector for the majority of the fiscal year, at times with virtually no exposure to these securities and minimal holdings in the financial sector, as we believed the risk/reward tradeoff for corporate bonds to be unfavorable. At the same time, we were emphasizing highly rated mortgage and commercial securities as an offset to the corporate-bond underweight. This strategy did not perform as expected, since these sectors, under pressure to repay debt, performed more poorly than warranted by credit fundamentals as forced selling accelerated. Though the fund owned more Treasury securities in late 2007 than at any other time in recent memory, the positioning in the mortgage-related sectors caused the fund to lag its benchmark. Performance relative to the peer group, on the other hand, was strong as the fund generally avoided investments in the subprime sectors and collateralized debt obligations (i.e., investment-grade securities backed by a pool of bonds, loans, and other assets) that have experienced considerable declines in value as loan performance worsened and structures became permanently impaired.
What strategic moves were made by the fund and why?
Given our view that the economy will avoid a protracted downturn and that Fed policies would continue to sustain the financial system, we take a long-term approach to the credit market and believe that most non-Treasury sectors offer extraordinary value for investors who are willing to tolerate volatility in the short run. Accordingly, as non-Treasury securities cheapened dramatically throughout late 2007 and early 2008, we significantly added to the fund’s positioning in the corporate sectors and in certain parts of the mortgage market. In particular, we focused on adding risk in the financial sector, where high levels of issuance and market volatility have pushed yields to extremely attractive levels.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Investment in asset-backed and mortgage-backed securities include additional risks that investors should be aware of such as credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments.
Portfolio Allocation as of June 30, 20081 (% of net assets)
Corporate Bonds | 32 | .4 | % | ||
U.S. Government Agency Mortgage-Backed Securities | 30 | .6 | |||
Asset-Backed Securities | 22 | .9 | |||
Collateralized Mortgage Obligation – Private Mortgage-Backed Securities | 15 | .8 | |||
Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities | 3 | .3 | |||
U.S. Government & Agency Securities | 0 | .6 | |||
Preferred Stocks | 0 | .5 | |||
Short-Term Investments | 2 | .1 | |||
Other Assets and Liabilities, Net2 | (8 | .2 | ) | ||
100 | .0 | % | |||
Bond Credit Quality Distribution as of June 30, 20083 (% of market value)
AAA | 64 | .1 | % | ||
AA | 7 | .9 | |||
A | 11 | .3 | |||
BBB | 13 | .3 | |||
BB | 1 | .4 | |||
B | 0 | .5 | |||
Non-Rated | 1 | .5 | |||
100 | .0 | % |
1 | Portfolio allocations are subject to change and are not recommendations to buy or sell any security. |
2 | Investments typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
3 | Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. If there are multiple ratings for a security, the lowest rating is used unless ratings are provided by all three agencies, in which case the middle rating is used. |
4 First American Funds 2008 Annual Report
Annual Performance1,2 as of June 30, 2008
Since Inception | ||||||||||||||||||||
1 year | 5 years | 10 years | 2/01/1999 | 9/24/2001 | ||||||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||||||
Class A | 0.75 | % | 2.13 | % | 4.20 | % | — | — | ||||||||||||
Class B | (0.50 | )% | 1.91 | % | 3.89 | % | — | — | ||||||||||||
Class C | 3.57 | % | 2.27 | % | — | 3.71 | % | — | ||||||||||||
�� | ||||||||||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||||||
Class A | 5.24 | % | 3.02 | % | 4.66 | % | — | — | ||||||||||||
Class B | 4.50 | % | 2.25 | % | 3.89 | % | — | — | ||||||||||||
Class C | 4.57 | % | 2.27 | % | — | 3.71 | % | — | ||||||||||||
Class R | 5.06 | % | 2.85 | % | — | — | 3.86 | % | ||||||||||||
Class Y | 5.60 | % | 3.30 | % | 4.93 | % | — | — | ||||||||||||
Lehman Aggregate Bond Index3 | 7.12 | % | 3.86 | % | 5.68 | % | 5.51 | % | 5.03 | % | ||||||||||
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 | Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 4.25% for Class A shares and the maximum contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV. |
Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. | |
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 1.01%, 1.76%, 1.76%, 1.29%, and 0.76%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least June 30, 2009 so that total annual fund operating expenses for Class A, Class B, Class C, Class R, and Class Y shares do not exceed 0.95%, 1.70%, 1.70%, 1.20%, and 0.70%, respectively. These fee waivers and expense reimbursements may be terminated at any time after June 30, 2009, at the discretion of the advisor. Prior to that time, such waivers and reimbursements may not be terminated without the approval of the fund’s board of directors. |
Value of $10,000 Investment1,2,4 as of June 30, 2008
Core Bond Fund, Class A (NAV) | ![]() | $ | 15,762 | |||||
Core Bond Fund, Class A (POP) | ![]() | $ | 15,095 | |||||
Lehman Aggregate Bond Index3 | ![]() | $ | 17,382 | |||||
The chart at right illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 6/30/1998 to 6/30/2008) as compared to the Lehman Aggregate Bond Index3.
![(LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950137-08-011507/c34172c3417201.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
3 | An unmanaged index comprised of the Lehman Government/Credit Bond Index, the Lehman Mortgage Backed Securities Index, and the Lehman Asset Backed Securities Index. The Lehman Government/Credit Bond Index is comprised of Treasury securities, other securities issued or guaranteed by the U.S. Government or its agencies or instrumentalities, including U.S. agency mortgage securities, and investment-grade corporate debt securities. The Lehman Mortgage Backed Securities Index is comprised of the mortgage-backed pass-through securities of Ginnie Mae, Fannie Mae, and Freddie Mac. The Lehman Asset Backed Securities Index is comprised of debt securities rated investment grade or higher that are backed by credit card, auto, and home equity loans. |
4 | Performance for Class B, Class C, Class R, and Class Y shares is not presented. Performance for these classes will vary due to different expense structures. |
First American Funds 2008 Annual Report 5
High Income Bond Fund
Investment Objective: providing high level of current income
How did the fund perform for the fiscal year ended June 30, 2008?
The First American High Income Bond Fund (the “fund”), Class Y shares, returned -2.59% for the fiscal year ended June 30, 2008 (Class A shares returned -2.84% without taking the sales charge into account). By comparison, the fund’s benchmark, the Lehman High Yield 2% Issuer Capped Index*, returned -1.74% for the same period.
What were the general economic and market conditions during the fiscal year?
Economic growth turned sharply lower following residual strength in the third quarter of 2007. Gross Domestic Product (“GDP”) contracted slightly in the final quarter of 2007 and produced modest growth in the first half of 2008. The modest growth reported during the first half of 2008 reflected persistent strength in foreign economic activity which aided exports, and fiscal stimulus which provided a substantial boost to disposable income, supporting real personal consumption expenditures. Despite modest gains in GDP during the first half of 2008, payroll employment has steadily declined and the unemployment rate has risen sharply during this period. The weakness in labor markets and broader economic activity, along with ongoing disruptions within the credit and financial markets, prompted the Federal Reserve (“Fed”) to continue easing monetary policy into early 2008, bringing the funds rate down to the current level of 2%, despite inflationary pressures that were primarily concentrated in energy and other commodity markets. Earnings estimates for the S&P 500 have been reduced dramatically over this period as a result of financial sector losses and weakening in broader economic activity.
How did market conditions and investment strategies affect the fund’s performance?
Market volatility began to increase precipitously as concerns over subprime mortgages and excessive corporate indebtedness began to mount. Yield spreads (i.e., differences in yield between non-Treasury and Treasury bonds) had reached historically tight levels prior to the events that led to the rapid debt-reduction and ultimately to higher spreads and rewards for risk. The fund’s successful macroeconomic approaches were offset by exposure to certain sectors that performed poorly during the summer’s liquidity crisis, namely the mortgage finance and real estate sectors. The volatility also led to wider discounts among various closed-end funds owned by the fund, while also hurting the performance of preferred stocks within the portfolio. Over a longer-time horizon, we feel these are two important asset classes that can provide diversification and attractive risk-adjusted yields to a fixed-income portfolio, so we would look to this period of dislocation to search for long-term opportunities.
The fund generally benefited from overweights to more defensive sectors such as utilities, energy, and supermarkets, and from underweights to consumer-dependent industries such as home construction, automobiles, and gaming.
What strategic moves were made by the fund and why?
The fund moved toward a more defensive posture by beginning to underweight the lower-rated tiers of the high-yield universe (B/CCC) and by moving up in capital structure where possible. We also reduced exposure to the auto sector as both Ford and GM struggled to compete in the face of a weakened U.S. consumer demand and high oil prices. We expect the current economic environment will continue to be challenging for many areas of the high-yield market due to the curtailment of credit to higher-risk companies at a time of weakening fundamentals.
The fund remains well-diversified, having made investments in areas where we see attractive risk-adjusted opportunities: financials, preferred securities, and closed-end funds trading at wide discounts to their net asset value. We began to search very selectively for distressed bonds that may present attractive total return opportunities. We also maintained a roughly 7% exposure to corporate bonds of foreign and emerging market bonds. The fundamentals of many of these economies continue to improve relative to the United States, as does the financial reporting and corporate governance of the issuing companies.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Investment in asset-backed and mortgage-backed securities include additional risks that investors should be aware of such as credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments.
Portfolio Allocation as of June 30, 20081 (% of net assets)
High Yield Corporate Bonds | 82 | .6 | % | ||
Investment Grade Corporate Bonds | 3 | .9 | |||
Preferred Stocks | 3 | .5 | |||
Closed-End Funds | 3 | .1 | |||
Common Stocks | 1 | .3 | |||
Convertible Securities | 1 | .2 | |||
Asset-Backed Securities | 0 | .8 | |||
Short-Term Investments | 2 | .6 | |||
Other Assets and Liabilities, Net2 | 1 | .0 | |||
100 | .0 | % | |||
Bond Credit Quality Distribution as of June 30, 20083 (% of market value)
AAA | 0 | .6 | % | ||
A | 0 | .4 | |||
BBB | 4 | .7 | |||
BB | 27 | .7 | |||
B | 44 | .4 | |||
CCC | 21 | .0 | |||
Non-Rated | 1 | .2 | |||
100 | .0 | % | |||
1 | Portfolio allocations are subject to change and are not recommendations to buy or sell any security. |
2 | Investments typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
3 | Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. If there are multiple ratings for a security, the lowest rating is used unless ratings are provided by all three agencies, in which case the middle rating is used. |
6 First American Funds 2008 Annual Report
Annual Performance1,2 as of June 30, 2008
Since Inception | ||||||||||||||||
1 year | 5 years | 8/30/2001 | 9/24/20014 | |||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||
Class A | (7.00 | )% | 5.22 | % | 4.91 | % | — | |||||||||
Class B | (8.07 | )% | 5.07 | % | 4.85 | % | — | |||||||||
Class C | (4.47 | )% | 5.35 | % | 4.81 | % | — | |||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||
Class A | (2.84 | )% | 6.14 | % | 5.58 | % | — | |||||||||
Class B | (3.57 | )% | 5.38 | % | 4.85 | % | — | |||||||||
Class C | (3.57 | )% | 5.35 | % | 4.81 | % | — | |||||||||
Class R | (3.04 | )% | 5.91 | % | — | 6.23 | % | |||||||||
Class Y | (2.59 | )% | 6.40 | % | 5.87 | % | — | |||||||||
Lehman High Yield 2% Issuer Capped Index3 | (1.74 | )% | 6.84 | % | 7.33 | % | 8.54 | % | ||||||||
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
1 | Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 4.25% for Class A shares and the maximum contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV. | |
The fund invests in lower-rated and non-rated securities which present a greater risk of loss to principal and interest than higher-rated securities. | |
Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. | |
The fund may also invest in foreign securities. International investing involves risks not typically associated with domestic investing including risks of adverse currency fluctuations, potential political and economic instability, different accounting standards, limited liquidity, and volatile prices. | |
As of the most recent prospectus, the fund’s total annual operating expense ratio (including acquired fund fees and expenses) for Class A, Class B, Class C, Class R, and Class Y shares was 1.33%, 2.08%, 2.08%, 1.59%, and 1.08%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least June 30, 2009 so that total annual fund operating expenses (after all waivers and excluding acquired fund fees and expenses) for Class A, Class B, Class C, Class R, and Class Y shares do not exceed 1.10%, 1.85%, 1.85%, 1.35%, and 0.85%, respectively. These fee waivers and expense reimbursements may be terminated at any time after June 30, 2009, at the discretion of the advisor. Prior to that time, such waivers and reimbursements may not be terminated without the approval of the fund’s board of directors. |
Value of $10,000 Investment1,2,5 as of June 30, 2008
High Income Bond Fund, Class A (NAV) | ![]() | $ | 14,492 | |||||
High Income Bond Fund, Class A (POP) | ![]() | $ | 13,877 | |||||
Lehman High Yield 2% Issuer Capped Index3 | ![]() | $ | 16,221 | |||||
The chart at right illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 8/30/2001 to 6/30/2008) as compared to the Lehman High Yield 2% Issuer Capped Index3.
![(LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950137-08-011507/c34172c3417202.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
3 | An unmanaged index that covers the universe of fixed-rate, dollar-denominated, below-investment-grade debt with at least one year to final maturity with total index allocation to an individual issuer being limited to 2%. |
4 | The performance since inception of the index is calculated from the month end following the inception of the class. |
5 | Performance for Class B, Class C, Class R, and Class Y shares is not presented. Performance for these classes will vary due to different expense structures. |
First American Funds 2008 Annual Report 7
Inflation Protected Securities Fund
Investment Objective: providing total return while providing protection against inflation
How did the fund perform for the fiscal year ended June 30, 2008?
The First American Inflation Protected Securities Fund (the “fund”), Class Y shares, returned 14.29% for the fiscal year ended June 30, 2008 (Class A shares returned 14.01% without taking the sales charge into account). By comparison, the fund’s benchmark, the Lehman Treasury Inflation Protected Securities Index*, returned 15.09% for the same period.
What were the general economic and market conditions during the fiscal year?
Economic growth turned sharply lower following residual strength in the third quarter of 2007. Gross Domestic Product (“GDP”) contracted slightly in the final quarter of 2007 and produced modest growth in the first half of 2008. The modest growth reported during the first half of 2008 reflected persistent strength in foreign economic activity which aided exports, and fiscal stimulus which provided a substantial boost to disposable income, supporting real personal consumption expenditures. Despite modest gains in GDP during the first half of 2008, payroll employment has steadily declined and the unemployment rate has risen sharply during this period. The weakness in labor markets and broader economic activity, along with ongoing disruptions within the credit and financial markets, prompted the Federal Reserve (“Fed”) to continue easing monetary policy into early 2008, bringing the funds rate down to the current level of 2%, despite inflationary pressures that were primarily concentrated in energy and other commodity markets. Earnings estimates for the S&P 500 have been reduced dramatically over this period as a result of financial sector losses and weakening in broader economic activity.
How did market conditions and investment strategies affect the fund’s performance?
The fund’s allocation to non-Treasury bonds presented the most significant drag on performance during the fiscal year. In the wake of the subprime mortgage crisis, the investors’ collective flight to the safety Treasuries represent, coupled with aggressive easing of interest rates by the Fed, helped push Treasury rates to multiyear lows. At the same time, deteriorating credit markets and liquidity produced staggeringly poor performance from risk (i.e., non-Treasury) assets. The fund made some gains by overweighting securities with shorter maturities and underweighting longer maturities. The underlying view was that slowing economic growth should cause core inflation (i.e., excluding food and energy prices) to moderate even as headline inflation stays elevated owing to rising food and gas prices. Our positioning for a steeper yield curve proved successful, as both investors’ preference for safety and the Fed easing benefited the front end of the Treasury curve. The yield curve, measured by the difference between the two- and 10-year Treasury rates, steepened at the height of the market crisis before correcting lower.
What strategic moves were made by the fund and why?
We increased the fund’s allocation to risk (non-Treasury) sectors, on the view that with the cheapening of these assets, valuations came more than fully to reflect the deteriorating economic and credit fundamentals. We have been gradually reducing the fund’s allocation to Treasury inflation-protected securities as our targets were reached and seasonal trends began to turn less favorable for Consumer Price Index adjustments. In expectation of a flattening yield curve, we reduced the fund’s underweight to longer maturities while retaining a small overweight to the short end.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Investment in asset-backed and mortgage-backed securities include additional risks that investors should be aware of such as credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments.
Portfolio Allocation as of June 30, 20081 (% of net assets)
U.S. Government & Agency Securities | 86 | .6 | % | ||
Corporate Bonds | 4 | .0 | |||
Asset-Backed Securities | 3 | .9 | |||
Collateralized Mortgage Obligation – Private Mortgage-Backed Security | 0 | .8 | |||
Municipal Bond | 0 | .3 | |||
U.S. Government Agency Mortgage-Backed Security | 0 | .3 | |||
Preferred Stocks | 0 | .3 | |||
Convertible Securities | 0 | .3 | |||
Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Security | 0 | .1 | |||
Common Stock | 0 | .1 | |||
Short-Term Investments | 4 | .0 | |||
Other Assets and Liabilities, Net2 | (0 | .7 | ) | ||
100 | .0 | % | |||
Bond Credit Quality Distribution as of June 30, 20083 (% of market value)
AAA | 95 | .1 | % | ||
AA | 1 | .4 | |||
A | 1 | .1 | |||
BBB | 1 | .0 | |||
BB | 0 | .9 | |||
B | 0 | .5 | |||
100 | .0 | % | |||
1 | Portfolio allocations are subject to change and are not recommendations to buy or sell any security. |
2 | Investments typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
3 | Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. If there are multiple ratings for a security, the lowest rating is used unless ratings are provided by all three agencies, in which case the middle rating is used. |
8 First American Funds 2008 Annual Report
Annual Performance1,2 as of June 30, 2008
Since Inception | ||||||||||||||||
1 year | 10/01/2004 | |||||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||
Class A | 9.15 | % | 3.89 | % | ||||||||||||
Class C | 12.20 | % | 4.29 | % | ||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||
Class A | 14.01 | % | 5.09 | % | ||||||||||||
Class C | 13.20 | % | 4.29 | % | ||||||||||||
Class R | 13.73 | % | 4.87 | % | ||||||||||||
Class Y | 14.29 | % | 5.34 | % | ||||||||||||
Lehman Treasury Inflation Protected Securities Index3 | 15.09 | % | 6.05 | % | ||||||||||||
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
1 | Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 4.25% for Class A Shares and the maximum contingent deferred sales charge (“CDSC”) for Class C shares for the relevant period. Maximum CDSC is 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV. |
Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. | |
As of the most recent prospectus, the fund’s total annual operating expense ratio for Class A, Class C, Class R, and Class Y shares was 1.06%, 1.81%, 1.31%, and 0.81%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least June 30, 2009 so that total annual fund operating expenses for Class A, Class C, Class R, and Class Y shares do not exceed 0.85%, 1.60%, 1.10%, and 0.60%, respectively. These fee waivers and expense reimbursements may be terminated at any time after June 30, 2009, at the discretion of the advisor. Prior to that time, such waivers and reimbursements may not be terminated without the approval of the fund’s board of directors. |
Value of $10,000 Investment1,2,4 as of June 30, 2008
Inflation Protected Securities Fund, Class A (NAV) | ![]() | $ | 12,044 | |||
Inflation Protected Securities Fund, Class A (POP) | ![]() | $ | 11,537 | |||
Lehman Treasury Inflation Protected Securities Index3 | ![]() | $ | 12,462 | |||
The chart at right illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 10/01/2004 to 6/30/2008) as compared to the Lehman Treasury Inflation Protected Securities Index3.
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950137-08-011507/c34172c3417203.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
3 | An unmanaged index comprised of inflation-protected securities issued by the U.S. Treasury that have at least one year to final maturity, at least $250 million par amount outstanding, and are investment-grade rated (Baa or better). |
4 | Performance for Class C, Class R, and Class Y shares is not presented. Performance for these classes will vary due to different expense structures. |
First American Funds 2008 Annual Report 9
Intermediate Government Bond Fund
Investment Objective: providing current income that is exempt from state income tax, to the extent consistent with the preservation of capital
How did the fund perform for the fiscal year ended June 30, 2008?
The First American Intermediate Government Bond Fund (the “fund”), Class Y shares, returned 9.07% for the fiscal year ended June 30, 2008 (Class A shares returned 8.90% without taking the sales charge into account). By comparison, the fund’s benchmark, the Lehman Intermediate Treasury Bond Index*, returned 9.76% for the same period.
What were the general economic and market conditions during the fiscal year?
Economic growth turned sharply lower following residual strength in the third quarter of 2007. Gross Domestic Product (“GDP”) contracted slightly in the final quarter of 2007 and produced modest growth in the first half of 2008. The modest growth reported during the first half of 2008 reflected persistent strength in foreign economic activity which aided exports, and fiscal stimulus which provided a substantial boost to disposable income, supporting real personal consumption expenditures. Despite modest gains in GDP during the first half of 2008, payroll employment has steadily declined and the unemployment rate has risen sharply during this period. The weakness in labor markets and broader economic activity, along with ongoing disruptions within the credit and financial markets, prompted the Federal Reserve (“Fed”) to continue easing monetary policy into early 2008, bringing the Fed’s funds-rate down to the current level of 2%, despite inflationary pressures that were primarily concentrated in energy and other commodity markets. Earnings estimates for the S&P 500 have been reduced dramatically over this period as a result of financial sector losses and weakening in broader economic activity.
How did market conditions and investment strategies affect the fund’s performance?
The fund’s allocation to agency debt securities hurt performance as all non-Treasury products, including agencies, performed poorly. Agency securities also underperformed Treasuries as the government-sponsored enterprises like Federal National Mortgage Association and Federal Home Loan Mortgage Corporation came under close scrutiny for their subprime and Alt-A (riskier than prime but less so than subprime) holdings and declining capital. Our positioning for steeper yield curve proved successful, as the investors’ flight to safety and the Federal Reserve’s funds-rate reduction both benefited the bonds with shorter maturities on the front end of the Treasury curve. The yield curve, measured by the difference between the two- and 10-year Treasury rates, steepened substantially at the height of the market crisis, before correcting lower. The fund’s position in non-index Treasury inflation-protected securities benefited fund performance, especially during the first half of 2008, amid continuing concerns about rising inflation.
What strategic moves were made by the fund and why?
We increased the fund’s allocation to agency debt securities to take advantage of historically wide spreads (i.e., differences in yield) between agency bonds and Treasuries. Given the difficulties experienced by government-sponsored entities toward the end of the fiscal year, we have taken a more tactical approach to agency debt allocations. In expectation of a flattening yield curve, we reduced the fund’s underweight to longer maturities while retaining a small overweight to the short end.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Portfolio Allocation as of June 30, 20081 (% of net assets)
U.S. Government & Agency Securities | 97 | .1 | % | ||
Short-Term Investment | 2 | .8 | |||
Other Assets and Liabilities, Net2 | 0 | .1 | |||
100 | .0 | % | |||
Bond Credit Quality Distribution as of June 30, 20083 (% of market value)
AAA | 100 | .0 | % | ||
1 | Portfolio allocations are subject to change and are not recommendations to buy or sell any security. |
2 | Investments typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
3 | Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. If there are multiple ratings for a security, the lowest rating is used unless ratings are provided by all three agencies, in which case the middle rating is used. |
10 First American Funds 2008 Annual Report
Annual Performance1,2 as of June 30, 2008
Since Inception | ||||||||||||
1 year | 5 years | 10/25/2002 | ||||||||||
Average annual return with sales charge (POP) | ||||||||||||
Class A | 6 | .51% | 2.63 | % | 2.99 | % | ||||||
Average annual return without sales charge (NAV) | ||||||||||||
Class A | 8 | .90% | 3.10 | % | 3.40 | % | ||||||
Class Y | 9 | .07% | 3.25 | % | 3.56 | % | ||||||
Lehman Intermediate Treasury Bond Index3 | 9 | .76% | 3.57 | % | 3.89 | % | ||||||
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
1 | Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 2.25% for Class A Shares. Total returns assume reinvestment of all distributions at NAV. | |
Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. | |
As of the most recent prospectus, the fund’s total annual operating expense ratio for Class A and Class Y shares was 1.46% and 1.21%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least June 30, 2009 so that total annual fund operating expenses for Class A and Class Y shares do not exceed 0.75% and 0.60%, respectively. These fee waivers and expense reimbursements may be terminated at any time after June 30, 2009, at the discretion of the advisor. Prior to that time, such waivers and reimbursements may not be terminated without the approval of the fund’s board of directors. |
Value of $10,000 Investment1,2,4 as of June 30, 2008
Intermediate Government Bond Fund, Class A (NAV) | ![]() | $ | 12,092 | |||||
Intermediate Government Bond Fund, Class A (POP) | ![]() | $ | 11,820 | |||||
Lehman Intermediate Treasury Bond Index3 | ![]() | $ | 12,419 | |||||
The chart at right illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 10/25/2002 to 6/30/2008) as compared to the Lehman Intermediate Treasury Bond Index3.
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950137-08-011507/c34172c3417204.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
3 | An unmanaged index comprised of public obligations of the U.S. Treasury with a remaining maturity between one and 10 years. |
4 | Performance for Class Y shares is not presented. Performance for this class will vary due to a different expense structure. |
First American Funds 2008 Annual Report 11
Intermediate Term Bond Fund
Investment Objective: providing current income to the extent consistent with preservation of capital
How did the fund perform for the fiscal year ended June 30, 2008?
The First American Intermediate Term Bond Fund (the “fund”), Class Y shares, returned 6.20% for the fiscal year ended June 30, 2008 (Class A shares returned 6.02% without taking the sales charge into account). By comparison, the fund’s benchmark, the Lehman Intermediate Government/ Credit Bond Index*, returned 7.37% for the same period. Performance for the fund’s peer group, the Lipper Short-Intermediate Investment-Grade Debt Funds Average*, was 3.54% for the same period.
What were the general economic and market conditions during the fiscal year?
growth turned sharply lower following residual strength in the third quarter of 2007. Gross Domestic Product (“GDP”) contracted slightly in the final quarter of 2007 and produced modest growth in the first half of 2008. The modest growth reported during the first half of 2008 reflected persistent strength in foreign economic activity which aided exports, and fiscal stimulus which provided a substantial boost to disposable income, supporting real personal consumption expenditures. Despite modest gains in GDP during the first half of 2008, payroll employment has steadily declined and the unemployment rate has risen sharply during this period. The weakness in labor markets and broader economic activity, along with ongoing disruptions within the credit and financial markets, prompted the Federal Reserve (“Fed”) to continue easing monetary policy into early 2008, bringing the funds rate down to the current level of 2%, despite inflationary pressures that were primarily concentrated in energy and other commodity markets. Earnings estimates for the S&P 500 have been reduced dramatically over this period as a result of financial sector losses and weakening in broader economic activity.
How did market conditions and investment strategies affect the fund’s performance?
The financial markets were extremely volatile during the fiscal year. Prolonged weakness in domestic home prices exposed aggressive mortgage loan underwriting standards and sloppy ratings agency methodologies. Many loans originated in 2006 and 2007 performed much worse than expected, and credit losses for U.S. and foreign financial institutions skyrocketed, causing a broad based tightening of credit availability for consumer and commercial entities. At the same time, lending terms for loan-dependent fixed-income players became onerous, leading to large-scale debt reduction by hedge funds, investment managers, and broker-dealers. Ultimately, this tightening in credit availability broadened, manifesting itself in a full-blown credit crunch affecting all consumer and commercial sectors. Against this backdrop, a fairly significant flight to quality developed as investors became quite risk averse, wondering when and where the next large financial mishap was to occur.
The credit crisis placed enormous pressure on the valuations of all non-Treasury fixed-income securities, particularly in the mortgage-related sectors, causing them to underperform government securities by wide margins. The fund enjoyed its highest allocation to Treasury securities in several years and was defensively positioned within the corporate bond sector for the majority of the period, at times with virtually no exposure to these securities and minimal holdings in the financial sector, as we believed the risk/reward tradeoff for corporate bonds to be unfavorable. At the same time, we were emphasizing highly rated mortgage and commercial securities as an offset to the corporate-bond underweight. This strategy did not perform as expected, since these sectors, under pressure to repay debt, performed more poorly than warranted by credit fundamentals as forced selling accelerated. The fund’s performance relative to the peer group was strong as we generally avoided investments in the subprime sectors and collateralized debt obligations (i.e., investment-grade securities backed by a pool of bonds, loans and other assets) that have experienced considerable declines in value and may have a degree of permanent loan impairment.
Offsetting a portion of the underperformance from our sector strategy, the fund was positioned with duration and yield curve strategies designed to benefit from lower rates and a steeper curve, both of which materialized as the Fed began to aggressively lower interest rates.
What strategic moves were made by the fund and why?
Given our view that the economy will avoid a protracted downturn and that Federal Reserve policies would continue to sustain the financial system, we take a long-term approach on the credit market and believe that most non-Treasury sectors offer extraordinary value for investors who are willing to tolerate volatility in the short run. Accordingly, as non-Treasury securities cheapened dramatically throughout late 2007 and early 2008, we significantly added to the fund’s positioning in the corporate sectors and in certain parts of the mortgage market. In particular, we focused on adding risk in the financial sector, where high levels of issuance and market volatility have pushed yields to extremely attractive levels.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Investment in asset-backed and mortgage-backed securities include additional risks that investors should be aware of such as credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments.
Portfolio Allocation as of June 30, 20081 (% of net assets)
Corporate Bonds | 46.7 | % | ||
Asset-Backed Securities | 29.5 | |||
Collateralized Mortgage Obligation – Private Mortgage-Backed Securities | 9.4 | |||
U.S. Government & Agency Securities | 6.3 | |||
Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities | 3.5 | |||
U.S. Government Agency Mortgage-Backed Securities | 3.1 | |||
Preferred Stocks | 0.5 | |||
Municipal Bond | 0.2 | |||
Short-Term Investments | 1.3 | |||
Other Assets and Liabilities, Net2 | (0.5 | ) | ||
100.0 | % | |||
Bond Credit Quality Distribution as of June 30, 20083 (% of market value)
AAA | 49.5 | % | ||
AA | 8.8 | |||
A | 17.0 | |||
BBB | 22.5 | |||
BB | 0.5 | |||
Non-Rated | 1.7 | |||
100.0 | % | |||
1 | Portfolio allocations are subject to change and are not recommendations to buy or sell any security. |
2 | Investments typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
3 | Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. If there are multiple ratings for a security, the lowest rating is used unless ratings are provided by all three agencies, in which case the middle rating is used. |
12 First American Funds 2008 Annual Report
Annual Performance1,2 as of June 30, 2008
1 year | 5 years | 10 years | ||||||||||
Average annual return with sales charge (POP) | ||||||||||||
Class A | 3 | .67% | 2.45 | % | 4.62 | % | ||||||
Average annual return without sales charge (NAV) | ||||||||||||
Class A | 6 | .02% | 2.91 | % | 4.86 | % | ||||||
Class Y | 6 | .20% | 3.08 | % | 5.05 | % | ||||||
Lehman Intermediate Government/Credit Bond Index3 | 7 | .37% | 3.49 | % | 5.55 | % |
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
1 | Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 2.25% for Class A shares for the relevant period. Total returns assume reinvestment of all distributions at NAV.
Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities.
As of the most recent prospectus, the fund’s total annual operating expense ratio for Class A and Class Y shares was 1.01% and 0.76%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least June 30, 2009 so that total annual fund operating expenses for Class A and Class Y shares do not exceed 0.85% and 0.70%, respectively. These fee waivers and expense reimbursements may be terminated at any time after June 30, 2009, at the discretion of the advisor. Prior to that time, such waivers and reimbursements may not be terminated without the approval of the fund’s board of directors.
Value of $10,000 Investment1,2,4 as of June 30, 2008
Intermediate Term Bond Fund, Class A (NAV) | ![]() | $ | 16,070 | |||||
Intermediate Term Bond Fund, Class A (POP) | ![]() | $ | 15,706 | |||||
Lehman Intermediate Government/Credit Bond Index3 | ![]() | $ | 17,160 | |||||
The chart at right illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 6/30/1998 to 6/30/2008) as compared to the Lehman Intermediate Government/Credit Bond Index3.
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950137-08-011507/c34172c3417205.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
3 | An unmanaged index of Treasury securities, other securities issued or guaranteed by the U.S. Government or its agencies or instrumentalities, and investment-grade corporate debt securities. In each case with maturities of one to 10 years. |
4 | Performance for Class Y shares is not presented. Performance for this class will vary due to a different expense structure. |
First American Funds 2008 Annual Report 13
Short Term Bond Fund
Investment Objective: providing current income while maintaining a high degree of principal stability
How did the fund perform for the fiscal year ended June 30, 2008?
The First American Short Term Bond Fund (the “fund”), Class Y shares, returned 4.35% for the fiscal year ended June 30, 2008 (Class A shares returned 4.30% without taking the sales charge into account). By comparison, the fund’s benchmark, the Lehman 1-3 Year Government/Credit Bond Index*, returned 6.74% for the same period. Performance for the fund’s peer group, the Lipper Short Investment-Grade Debt Funds Average*, was 1.34% for the same period.
What were the general economic and market conditions during the fiscal year?
Economic growth turned sharply lower following residual strength in the third quarter of 2007. Gross Domestic Product (“GDP”) contracted slightly in the final quarter of 2007 and produced modest growth in the first half of 2008. The modest growth reported during the first half of 2008 reflected persistent strength in foreign economic activity which aided exports, and fiscal stimulus which provided a substantial boost to disposable income, supporting real personal consumption expenditures. Despite modest gains in GDP during the first half of 2008, payroll employment has steadily declined and the unemployment rate has risen sharply during this period. The weakness in labor markets and broader economic activity, along with ongoing disruptions within the credit and financial markets, prompted the Federal Reserve (“Fed”) to continue easing monetary policy into early 2008, bringing the funds rate down to the current level of 2%, despite inflationary pressures that were primarily concentrated in energy and other commodity markets. Earnings estimates for the S&P 500 have been reduced dramatically over this period as a result of financial sector losses and weakening in broader economic activity.
How did market conditions and investment strategies affect the fund’s performance?
The financial markets were extremely volatile during the fiscal year. Prolonged weakness in domestic home prices exposed aggressive mortgage loan underwriting standards and sloppy ratings agency methodologies. Many loans originated in 2006 and 2007 performed much worse than expected, and credit losses for U.S. and foreign financial institutions skyrocketed. At the same time, lending terms for loan-dependent fixed-income players became onerous, leading to large-scale debt reduction by hedge funds, investment managers, and broker-dealers. Ultimately, this tightening in credit availability broadened, manifesting itself in a full-blown credit crunch affecting all consumer and commercial sectors.
As credit concerns mounted and forced liquidations accelerated, the Fed stepped up its accommodation by both cutting rates and creating new financing programs designed to provide liquidity to banks and brokers dealers. Not surprisingly, a typical flight to quality ensued, where investors demonstrated a high degree of risk aversion and bought only extremely high-quality assets such as U.S. Treasuries. This caused a wide disparity in performance between short duration assets and virtually all non-Treasury sectors, and though we expect performance to normalize as market liquidity improves and risk appetites recover, the fund lagged its benchmark during this fiscal year due to its underweight to the Treasury sector. The fund’s performance against its peer group was strong as the fund generally avoided investments in the subprime sectors and collateralized debt obligations (i.e., investment-grade securities backed by a pool of bonds, loans and other assets) markets which performed quite poorly and likely contain some element of permanent credit impairment.
Helping to offset the relative underperformance from our Treasury underweight, our duration strategy was generally long to the benchmark, which helped performance as the Fed aggressively cut the funds rate.
What strategic moves were made by the fund and why?
As dislocations in the financial sector continued through the first quarter of 2008, valuations continued to become increasingly attractive on virtually all non-Treasury sectors. Given our view that the economy would avoid a protracted recession, and the increased likelihood that Fed policy would create a backstop for the financial markets, we became more willing to add non-Treasury securities to the portfolio. We believe that investors with long-time horizons will be rewarded for their ability to tolerate short-term market volatility and accordingly added significantly to our positions in corporate bonds, especially in the financial sector, and began to add exposure to the floating rate nonagency mortgage sector, where the combination of forced selling and credit performance woes have depressed prices to levels that appear to more than compensate for risk. We also expect to continue to opportunistically add to our positions in the securitized sectors during the balance of 2008.
We believe that Fed policy will be constrained by the dodgy combination of anemic growth and escalating inflation pressures and will be on hold for the next several quarters. As of this writing, interest rates appear close to fair. We will look to tactically respond to short-term trading opportunities as rates drift from fair value.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Investment in asset-backed and mortgage-backed securities include additional risks that investors should be aware of such as credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments.
Portfolio Allocation as of June 30, 20081 (% of net assets)
Asset-Backed Securities | 38 | .4 | % | ||
Corporate Bonds | 21 | .7 | |||
Collateralized Mortgage Obligation – Private Mortgage-Backed Securities | 16 | .9 | |||
U.S. Government Agency Mortgage-Backed Securities | 8 | .7 | |||
Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities | 4 | .4 | |||
U.S. Government & Agency Securities | 3 | .1 | |||
Short-Term Investments | 6 | .6 | |||
Other Assets and Liabilities, Net2 | 0 | .2 | |||
100 | .0 | % | |||
Bond Credit Quality Distribution as of June 30, 20083 (% of market value)
AAA | 70 | .7 | % | ||
AA | 9 | .7 | |||
A | 9 | .2 | |||
BBB | 7 | .7 | |||
BB | 1 | .7 | |||
B | 0 | .4 | |||
CCC | 0 | .6 | |||
100 | .0 | % | |||
1 | Portfolio allocations are subject to change and are not recommendations to buy or sell any security. |
2 | Investments typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
3 | Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. If there are multiple ratings for a security, the lowest rating is used unless ratings are provided by all three agencies, in which case the middle rating is used. |
14 First American Funds 2008 Annual Report
Annual Performance1,2 as of June 30, 2008
1 year | 5 years | 10 years | ||||||||||
Average annual return with sales charge (POP) | ||||||||||||
Class A | 1 | .93% | 2.03 | % | 3.96 | % | ||||||
Average annual return without sales charge (NAV) | ||||||||||||
Class A | 4 | .30% | 2.50 | % | 4.20 | % | ||||||
Class Y | 4 | .35% | 2.65 | % | 4.34 | % | ||||||
Lehman 1-3 Year Government/Credit Bond Index3 | 6 | .74% | 3.37 | % | 4.89 | % |
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
1 | Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 2.25% for Class A shares for the relevant period. Total returns assume reinvestment of all distributions at NAV.
Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities.
As of the most recent prospectus, the fund’s total annual operating expense ratio for Class A and Class Y shares was 1.04% and 0.79%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least June 30, 2009 so that total annual fund operating expenses for Class A and Class Y shares do not exceed 0.75% and 0.60%, respectively. These fee waivers and expense reimbursements may be terminated at any time after June 30, 2009, at the discretion of the advisor. Prior to that time, such waivers and reimbursements may not be terminated without the approval of the fund’s board of directors.
Value of $10,000 Investment1,2,4 as of June 30, 2008
Short Term Bond Fund, Class A (NAV) | ![]() | $ | 15,087 | |||||
Short Term Bond Fund, Class A (POP) | ![]() | $ | 14,746 | |||||
Lehman 1-3 Year Government/Credit Bond Index3 | ![]() | $ | 16,124 | |||||
The chart at right illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 6/30/1998 to 6/30/2008) as compared to the Lehman 1-3 Year Government/Credit Bond Index3.
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950137-08-011507/c34172c3417206.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
3 | An unmanaged index of one-to-three-year Treasury securities, other securities issued or guaranteed by the U.S. Government or its agencies or instrumentalities, and investment-grade corporate debt securities. |
4 | Performance for Class Y shares is not presented. Performance for this class will vary due to a different expense structure. |
First American Funds 2008 Annual Report 15
Total Return Bond Fund
Investment Objective: providing high level of current income consistent with prudent risk to capital
How did the fund perform for the fiscal year ended June 30, 2008?
The First American Total Return Bond Fund (the “fund”), Class Y shares, returned 5.67% for the fiscal year ended June 30, 2008 (Class A shares returned 5.51% without taking the sales charge into account). By comparison, the fund’s benchmark, the Lehman Aggregate Bond Index*, returned 7.12% for the same period.
What were the general economic and market conditions during the fiscal year?
Economic growth turned sharply lower following residual strength in the third quarter of 2007. Gross Domestic Product (“GDP”) contracted slightly in the final quarter of 2007 and produced modest growth in the first half of 2008. The modest growth reported during the first half of 2008 reflected persistent strength in foreign economic activity which aided exports, and fiscal stimulus which provided a substantial boost to disposable income, supporting real personal consumption expenditures. Despite modest gains in GDP during the first half of 2008, payroll employment has steadily declined and the unemployment rate has risen sharply during this period. The weakness in labor markets and broader economic activity, along with ongoing disruptions within the credit and financial markets, prompted the Federal Reserve (“Fed”) to continue easing monetary policy into early 2008, bringing the funds rate down to the current level of 2%, despite inflationary pressures that were primarily concentrated in energy and other commodity markets. Earnings estimates for the S&P 500 have been reduced dramatically over this period as a result of financial sector losses and weakening in broader economic activity.
How did market conditions and investment strategies affect the fund’s performance?
The financial markets endured unprecedented volatility during the period. Prolonged weakness in domestic home prices exposed aggressive mortgage loan underwriting standards and sloppy ratings agency methodologies from the preceding several years, and many loans originated in 2006 and 2007 performed much worse than expected. Credit losses for U.S. and foreign financial institutions skyrocketed, and lending terms for loan-dependent fixed-income players became onerous, leading to large scale debt reduction by hedge funds, investment managers, and broker dealers. Ultimately, this tightening in credit availability broadened, manifesting itself in a full-blown credit crunch that affected all consumer and commercial sectors. In this environment, all non-Treasury fixed-income sectors performed poorly, either due to deteriorating credit fundamentals or massive selling pressure. The Fed responded aggressively and creatively to ameliorate the credit contraction, which helped stabilize the markets and allowed most market sectors to recover a portion of their value.
The fund was extremely defensive in the credit-related sectors during most of the fiscal year as valuations were expensive. It owned very few corporate debt positions, either investment-grade or high-yield, and had bought credit protection on many companies in the financial sector and several broad indices tied to the market. As an offset to this credit underweight, the fund had positions in the commercial mortgage and mortgage sectors, which performed poorly amid the debt reduction and concerns about the broader mortgage market. The fund was generally not invested in the subprime sector and had manageable exposure to seasoned nonagency securities. We expect permanent credit impairments from these holdings to be negligible.
As the Fed cut rates, the dollar steadily declined against other major currencies, hurt by the combination of higher yields and better economic fundamentals outside of the United States. This decline also contributed to volatility in the energy complex, with crude oil, trading in U.S. currency, creating additional hurdles for a domestic consumer already stretched by the weak economy. Foreign interest rates did not follow the U.S. rate decline, and positions in non-U.S. bonds negatively impacted the portfolio. But since the fund was positioned for a decline in the U.S. dollar, currency strategy boosted performance. The fund also benefited from managing duration long to the benchmark and from employing yield curve strategies designed to benefit from a steeper yield curve, both of which worked well as the Fed cut rates.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Investment in asset-backed and mortgage-backed securities include additional risks that investors should be aware of such as credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments.
Portfolio Allocation as of June 30, 20081 (% of net assets)
Corporate Bonds | 41 | .7 | % | ||
U.S. Government Agency Mortgage-Backed Securities | 20 | .4 | |||
Asset-Backed Securities | 18 | .1 | |||
Collateralized Mortgage Obligation – Private Mortgage-Backed Securities | 14 | .3 | |||
Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities | 2 | .4 | |||
U.S. Government & Agency Securities | 1 | .9 | |||
Preferred Stocks | 1 | .0 | |||
Convertible Securities | 0 | .3 | |||
Municipal Bond | 0 | .2 | |||
Common Stock | 0 | .1 | |||
Options Purchased | 0 | .0 | |||
Short-Term Investments | 5 | .0 | |||
Other Assets and Liabilities, Net2 | (5 | .4 | ) | ||
100 | .0 | % | |||
Bond Credit Quality Distribution as of June 30, 20083 (% of market value)
AAA | 57 | .9 | % | ||
AA | 7 | .2 | |||
A | 14 | .0 | |||
BBB | 14 | .5 | |||
BB | 3 | .6 | |||
B | 2 | .3 | |||
CCC | 0 | .1 | |||
Not-Rated | 0 | .4 | |||
100 | .0 | % | |||
1 | Portfolio allocations are subject to change and are not recommendations to buy or sell any security. |
2 | Investments typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
3 | Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. If there are multiple ratings for a security, the lowest rating is used unless ratings are provided by all three agencies, in which case the middle rating is used. |
16 First American Funds 2008 Annual Report
What strategic moves were made by the fund and why?
Given our view that the economy would avoid a protracted downturn and that Fed policies would continue to sustain the financial system, we have taken a long-term approach to the credit market and believe that most non-Treasury sectors offer extraordinary value for investors who are willing to tolerate volatility in the short run. As non-Treasury securities cheapened dramatically throughout late 2007 and early 2008, we opportunistically added to positioning in the investment-grade and high-yield corporate sectors and to its risk in certain parts of the mortgage market.
In the investment-grade space, we focused on adding risk in the financial sector, where credit concerns and large amounts of issuance created a significant long-term opportunity in select broker-dealers and banks, particularly in their subordinated and capital securities. With respect to the high-yield allocation, we moved up to roughly half of the fund’s maximum position by augmenting the fund’s holdings in index-based products as opposed to individual issues, largely to maintain a high level of diversification and liquidity.
Our currency strategy throughout late 2007 and very early 2008 was focused on a broad U.S. dollar decline against most major currencies, with smaller tactical moves occurring around valuations in certain currency pairs. Expecting 2008 to be more volatile both ways in major currencies, we have reduced some foreign currency exposure, particularly in the Japanese yen. The portfolio added to its modest weight in non-U.S. bonds, some hedged and some unhedged, based on attractive yields, yield differentials, and relative economic growth outlooks.
Rate strategy centered on the prospect of a steepening yield curve as the Fed was expected to sustain rate cuts. Overall duration was moved from neutral to long in varying degrees.
First American Funds 2008 Annual Report 17
Total Return Bond Fund concluded
Annual Performance1,2 as of June 30, 2008
Since Inception | ||||||||||||||||
1 year | 5 years | 02/01/2000 | 9/24/2001 | |||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||
Class A | 0 | .99% | 2.69 | % | 5.15 | % | — | |||||||||
Class B | (0 | .35)% | 2.47 | % | 4.89 | % | — | |||||||||
Class C | 3 | .66% | 2.80 | % | 4.88 | % | — | |||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||
Class A | 5 | .51% | 3.58 | % | 5.69 | % | — | |||||||||
Class B | 4 | .65% | 2.81 | % | 4.89 | % | — | |||||||||
Class C | 4 | .66% | 2.80 | % | 4.88 | % | — | |||||||||
Class R | 5 | .22% | 3.39 | % | — | 4.69 | % | |||||||||
Class Y | 5 | .67% | 3.84 | % | 5.94 | % | — | |||||||||
Lehman Aggregate Bond Index3 | 7 | .12% | 3.86 | % | 6.34 | % | 5.03 | % |
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 | Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 4.25% for Class A shares and the maximum contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.
Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities.
A portion of the fund’s portfolio may consist of lower-related debt obligations, which are commonly called “high-yield” securities or “junk bonds.” High-yield securities generally have more volatile prices and carry more risk to principal than investment-grade securities. The fund may also invest in foreign securities. International investing involves risks not typically associated with domestic investing including risks of adverse currency fluctuations, potential political and economic instability, different accounting standards, limited liquidity, and volatile prices.
As of the most recent prospectus, the fund’s total annual operating expense ratio (including acquired fund fees and expenses) for Class A, Class B, Class C, Class R, and Class Y shares was 1.14%, 1.89%, 1.89%, 1.45%, and 0.89%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least June 30, 2009 so that total annual fund operating expenses (after all waivers and excluding acquired fund fees and expenses) for Class A, Class B, Class C, Class R, and Class Y shares do not exceed 1.00%, 1.75%, 1.75%, 1.25%, and 0.75%, respectively. These fee waivers and expense reimbursements may be terminated at any time after June 30, 2009, at the discretion of the advisor. Prior to that time, such waivers and reimbursements may not be terminated without the approval of the fund’s board of directors.
Value of $10,000 Investment 1,2,4 as of June 30, 2008
Total Return Bond Fund, Class A (NAV) | ![]() | $ | 15,928 | |||||
Total Return Bond Fund, Class A (POP) | ![]() | $ | 15,257 | |||||
Lehman Aggregate Bond Index3 | ![]() | $ | 16,777 | |||||
The chart at right illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 2/01/2000 to 6/30/2008) as compared to the Lehman Aggregate Bond Index3.
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950137-08-011507/c34172c3417207.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
3 | An unmanaged index comprised of the mortgage-backed pass-through securities of Ginnie Mae, Fannie Mae, and Freddie Mac. It is formed by grouping the universe of more than 600,000 individual fixed-rate MBS pools into approximately 3,500 generic aggregates. The aggregates included are priced daily using a matrix pricing routine based on trade price quotations by agency, program, coupon, and degree of seasoning. |
4 | Performance for Class B, Class C, Class R, and Class Y shares is not presented. Performance for these classes will vary due to different expense structures. |
18 First American Funds 2008 Annual Report
U.S. Government Mortgage Fund
Investment Objective: providing high current income to the extent consistent with the preservation of capital
How did the fund perform for the fiscal year ended June 30, 2008?
The First American U.S. Government Mortgage Fund (the “fund”), Class Y shares, returned 4.16% for the fiscal year ended June 30, 2008 (Class A shares returned 3.90% without taking the sales charge into account). By comparison, the fund’s benchmark, the Lehman Mortgage-Backed Securities Index*, returned 7.83% for the same period. Performance for the fund’s peer group, the Lipper U.S. Mortgage Funds Average*, was 3.03% for the same period.
What were the general economic and market conditions during the fiscal year?
Economic growth turned sharply lower following residual strength in the third quarter of 2007. Gross Domestic Product (“GDP”) contracted slightly in the final quarter of 2007 and produced modest growth in the first half of 2008. The modest growth reported during the first half of 2008 reflected persistent strength in foreign economic activity which aided exports, and fiscal stimulus which provided a substantial boost to disposable income, supporting real personal consumption expenditures. Despite modest gains in GDP during the first half of 2008, payroll employment has steadily declined and the unemployment rate has risen sharply during this period. The weakness in labor markets and broader economic activity, along with ongoing disruptions within the credit and financial markets, prompted the Federal Reserve (“Fed”) to continue easing monetary policy into early 2008, bringing the funds rate down to the current level of 2%, despite inflationary pressures that were primarily concentrated in energy and other commodity markets. Earnings estimates for the S&P 500 have been reduced dramatically over this period as a result of financial sector losses and weakening in broader economic activity.
How did market conditions and investment strategies affect the fund’s performance?
The mortgage markets were extremely volatile during the fiscal year. Prolonged weakness in domestic home prices exposed aggressive mortgage loan underwriting standards and sloppy ratings agency methodologies during the previous several years and many loans originated in 2006 and 2007 performed much worse than expected. Credit losses for U.S. and foreign financial institutions skyrocketed and market liquidity deteriorated rapidly outside of the agency mortgage-backed securities market. At the same time, lending terms and financing for loan-dependent fixed-income players became difficult, leading to large scale debt reduction by hedge funds, investment managers, and broker-dealers. Ultimately, this tightening in credit availability broadened, manifesting itself in a full-blown credit crunch that affected all consumer and commercial sectors. Against the backdrop of poor liquidity, mounting credit concerns, and massive forced liquidations, virtually all nonagency residential and commercial mortgage sectors substantially underperformed. Securities backed by subprime or Alt-A (riskier than prime but less s o than subprime) loans were most negatively impacted as they experienced both the largest deterioration in credit performance and intensive forced selling.
The fund reduced its positions in newer-origination residential agency and nonagency mortgage securities during the early to middle months of 2007; however, as market dislocations emerged in the summer months, we added back to the fund’s exposure in both nonagency and commercial mortgage securities. Though initially these sectors showed modest improvement, our strategy did not prove effective as the economy worsened, financing pressures escalated, and these sectors underperformed severely in later 2007 and early 2008. As a result, the fund underperformed its benchmark, posting middling peer group performance over the fiscal year. On the positive side, the fund generally avoided subprime-related bonds, newly originated nonagency securities, and collateralized debt obligations (i.e., investment-grade securities backed by a pool of bonds, loans and other assets). We expect that long-term credit impairments from nonagency holdings are manageable and highly discounted by current market valuations.
What strategic moves were made by the fund and why?
With most financials (including government-sponsored enterprises like Federal National Mortgage Association and Federal Home Loan Mortgage Corporation) experiencing credit performance and liquidity issues, it was unclear as to whether the agency mortgage-backed securities sector would receive any sponsorship from its traditional investor base; consequently, we became somewhat negative on the short-term prospects for this segment of the market. Accordingly, and despite somewhat attractive long-term valuations, we have been slightly underweight in agency securities relative to the benchmark. Within the agency sector, we favored relatively unseasoned, higher-coupon mortgage securities as we expect the combination of tighter lending standards and a weak housing market should reduce the prospects for refinancing, thus curtailing the prepayments risk inherent in premium mortgage securities. Conversely, though we were underweight in discount coupons, we are biased toward owning seasoned securities where the borrower continues to enjoy an element of cumulative home price appreciation, resulting in a potentially higher likelihood for prepayment. We added to our commercial position, a sector that we believe is extremely cheap given continuing strong loan performance and no meaningful expected issuance for the balance of the year. We are poised to expand this position as broad market liquidity improves and the financial systems show signs of stabilization.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Investment in asset-backed and mortgage-backed securities include additional risks that investors should be aware of such as credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments.
Portfolio Allocation as of June 30, 20081 (% of net assets)
U.S. Government Agency Mortgage-Backed Securities | 89 | .5% | |||
Collateralized Mortgage Obligation – Private Mortgage-Backed Securities | 17 | .3 | |||
Asset-Backed Securities | 12 | .3 | |||
Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities | 2 | .0 | |||
Short-Term Investments | 7 | .0 | |||
Other Assets and Liabilities, Net2 | (28 | .1) | |||
100 | .0% | ||||
Bond Credit Quality Distribution as of June 30, 20083 (% of market value)
AAA | 94 | .5% | |||
AA | 4 | .6 | |||
A | 0 | .1 | |||
BBB | 0 | .8 | |||
100 | .0% | ||||
1 | Portfolio allocations are subject to change and are not recommendations to buy or sell any security. |
2 | Investments typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
3 | Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. If there are multiple ratings for a security, the lowest rating is used unless ratings are provided by all three agencies, in which case the middle rating is used. |
First American Funds 2008 Annual Report 19
U.S. Government Mortgage Fund concluded
Annual Performance1,2 as of June 30, 2008
Since Inception | ||||||||||||||||
1 year | 5 years | 10 years | 9/24/2001 | |||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||
Class A | (0.48 | )% | 2.02 | % | 4.08 | % | — | |||||||||
Class B | (1.85 | )% | 1.62 | % | 3.74 | % | — | |||||||||
Class C | 2.15 | % | 2.14 | % | — | 2.74 | % | |||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||
Class A | 3.90 | % | 2.91 | % | 4.54 | % | — | |||||||||
Class B | 3.12 | % | 2.13 | % | 3.74 | % | — | |||||||||
Class C | 3.14 | % | 2.14 | % | — | 2.74 | % | |||||||||
Class R | 3.54 | % | 2.70 | % | 4.38 | % | — | |||||||||
Class Y | 4.16 | % | 3.15 | % | 4.76 | % | — | |||||||||
Lehman Mortgage-Backed Securites Index3 | 7.83 | % | 4.56 | % | 5.76 | % | 4.97 | % |
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
1 | Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 4.25% for Class A shares and the maximum contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.
On September 24, 2001, the U.S. Government Mortgage Fund became the successor by merger to the Firstar U.S. Government Securities Fund, a series of Firstar Funds, Inc. Prior to the merger, the First American fund had no assets or liabilities. Performance presented prior to September 24, 2001, represents that of the Firstar U.S. Government Securities Fund. The Firstar U.S. Government Securities Fund was organized on November 27, 2000, and, prior to that, was a separate series of Mercantile Mutual Funds, Inc.
Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities.
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. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least June 30, 2009 so that total annual fund operating expenses for Class A, Class B, Class C, Class R, and Class Y shares do not exceed 0.95%, 1.70%, 1.70%, 1.20%, and 0.70%, respectively. These fee waivers and expense reimbursements may be terminated at any time after June 30, 2009, at the discretion of the advisor. Prior to that time, such waivers and reimbursements may not be terminated without the approval of the fund’s board of directors.
Value of $10,000 Investment1,2,4 as of June 30, 2008
U.S. Government Mortgage Fund, Class A (NAV) | ![]() | $ | 15,583 | |||||
U.S. Government Mortgage Fund, Class A (POP) | ![]() | $ | 14,924 | |||||
Lehman Mortgage-Backed Securites Index3 | ![]() | $ | 17,504 | |||||
The chart at right illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 6/30/1998 to 6/30/2008) as compared to the Lehman Mortgage-Backed Securities Index3.
![(LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950137-08-011507/c34172c3417208.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
3 | An unmanaged index comprised of the mortgage-backed pass-through securities of Ginnie Mae, Fannie Mae, and Freddie Mac. It is formed by grouping the universe of more than 600,000 individual fixed-rate MBS pools into approximately 3,500 generic aggregates. The aggregates included are priced daily using a matrix pricing routine based on trade price quotations by agency, program, coupon, and degree of seasoning. |
4 | Performance for Class B, Class C, Class R, and Class Y shares is not presented. Performance for these classes will vary due to different expense structures. |
20 First American Funds 2008 Annual Report
Expense Examples
As a shareholder of one or more of the funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. The examples below are intended to help you understand your ongoing costs (in dollars) of investing in the funds and to compare these costs with the ongoing costs of investing in other mutual funds. The examples are based on an investment of $1,000 invested in a fund at the beginning of the period and held for the entire period from January 1, 2008 to June 30, 2008.
Actual Expenses
For each class of each fund, two lines are presented in the table below — the first line for each class provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular fund and class, to estimate the expenses that you paid over the period. Simply divide your account value in the fund and class by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” for your fund and class to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
For each class of each fund, the second line for each class provides information about hypothetical account values and hypothetical expenses based on the respective fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical examples with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the tables for each class of each fund is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Core Bond Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (1/01/08 to | ||||||||||
Value (1/01/08) | Value (6/30/08) | 6/30/08) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 1,001.20 | $ | 4.73 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.14 | $ | 4.77 | ||||||
Class B Actual2 | $ | 1,000.00 | $ | 997.50 | $ | 8.44 | ||||||
Class B Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,016.41 | $ | 8.52 | ||||||
Class C Actual2 | $ | 1,000.00 | $ | 997.50 | $ | 8.44 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,016.41 | $ | 8.52 | ||||||
Class R Actual2 | $ | 1,000.00 | $ | 999.90 | $ | 5.97 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.90 | $ | 6.02 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 1,002.40 | $ | 3.49 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.38 | $ | 3.52 | ||||||
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.95%, 1.70%, 1.70%, 1.20%, and 0.70% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/366 (to reflect the one-half year period). |
2 | Based on the actual returns for the six-month period ended June 30, 2008 of 0.12%, -0.25%, -0.25%, -0.01%, and 0.24% for Class A, Class B, Class C, Class R, and Class Y, respectively. |
First American Funds 2008 Annual Report 21
Expense Examples continued
High Income Bond Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (1/01/08 to | ||||||||||
Value (1/01/08) | Value (6/30/08) | 6/30/08) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 983.20 | $ | 5.42 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.39 | $ | 5.52 | ||||||
Class B Actual2 | $ | 1,000.00 | $ | 980.60 | $ | 9.11 | ||||||
Class B Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.66 | $ | 9.27 | ||||||
Class C Actual2 | $ | 1,000.00 | $ | 980.60 | $ | 9.11 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.66 | $ | 9.27 | ||||||
Class R Actual2 | $ | 1,000.00 | $ | 983.30 | $ | 6.66 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.15 | $ | 6.77 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 985.60 | $ | 4.20 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.64 | $ | 4.27 | ||||||
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 1.10%, 1.85%, 1.85%, 1.35%, and 0.85% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/366 (to reflect the one-half year period). |
2 | Based on the actual returns for the six-month period ended June 30, 2008 of -1.68%, -1.94%, -1.94%, -1.67%, and -1.44% for Class A, Class B, Class C, Class R, and Class Y, respectively. |
Inflation Protected Securities Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period3 (1/01/08 to | ||||||||||
Value (1/01/08) | Value (6/30/08) | 6/30/08) | ||||||||||
Class A Actual4 | $ | 1,000.00 | $ | 1,050.10 | $ | 4.33 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.64 | $ | 4.27 | ||||||
Class C Actual4 | $ | 1,000.00 | $ | 1,046.30 | $ | 8.14 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,016.91 | $ | 8.02 | ||||||
Class R Actual4 | $ | 1,000.00 | $ | 1,048.80 | $ | 5.60 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.39 | $ | 5.52 | ||||||
Class Y Actual4 | $ | 1,000.00 | $ | 1,051.30 | $ | 3.06 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.88 | $ | 3.02 | ||||||
3 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.85%, 1.60%, 1.10%, and 0.60% for Class A, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/366 (to reflect the one-half year period). |
4 | Based on the actual returns for the six-month period ended June 30, 2008 of 5.01%, 4.63%, 4.88%, and 5.13% for Class A, Class C, Class R, and Class Y, respectively. |
Intermediate Government Bond Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period5 (1/01/08 to | ||||||||||
Value (1/01/08) | Value (6/30/08) | 6/30/08) | ||||||||||
Class A Actual6 | $ | 1,000.00 | $ | 1,021.20 | $ | 3.77 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.13 | $ | 3.77 | ||||||
Class Y Actual6 | $ | 1,000.00 | $ | 1,021.90 | $ | 3.02 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.88 | $ | 3.02 | ||||||
5 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.75% and 0.60% for Class A and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/366 (to reflect the one-half year period). |
6 | Based on the actual returns for the six-month period ended June 30, 2008 of 2.12% and 2.19% for Class A and Class Y, respectively. |
22 First American Funds 2008 Annual Report
Intermediate Term Bond Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (1/01/08 to | ||||||||||
Value (1/01/08) | Value (6/30/08) | 6/30/08) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 1,008.60 | $ | 4.24 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.64 | $ | 4.27 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 1,009.40 | $ | 3.50 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.38 | $ | 3.52 | ||||||
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.85% and 0.70% for Class A and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/366 (to reflect the one-half year period). |
2 | Based on the actual returns for the six-month period ended June 30, 2008 of 0.86% and 0.94% for Class A and Class Y, respectively. |
Short Term Bond Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period3 (1/01/08 to | ||||||||||
Value (1/01/08) | Value (6/30/08) | 6/30/08) | ||||||||||
Class A Actual4 | $ | 1,000.00 | $ | 1,005.80 | $ | 3.69 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.18 | $ | 3.72 | ||||||
Class Y Actual4 | $ | 1,000.00 | $ | 1,006.60 | $ | 2.94 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.93 | $ | 2.97 | ||||||
3 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.74% and 0.59% for Class A and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/366 (to reflect the one-half year period). |
4 | Based on the actual returns for the six-month period ended June 30, 2008 of 0.58% and 0.66% for Class A and Class Y, respectively. |
Total Return Bond Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period5 (1/01/08 to | ||||||||||
Value (1/01/08) | Value (6/30/08) | 6/30/08) | ||||||||||
Class A Actual6 | $ | 1,000.00 | $ | 1,000.20 | $ | 4.92 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.94 | $ | 4.97 | ||||||
Class B Actual6 | $ | 1,000.00 | $ | 995.60 | $ | 8.63 | ||||||
Class B Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,016.21 | $ | 8.72 | ||||||
Class C Actual6 | $ | 1,000.00 | $ | 995.60 | $ | 8.63 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,016.21 | $ | 8.72 | ||||||
Class R Actual6 | $ | 1,000.00 | $ | 998.00 | $ | 6.16 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.70 | $ | 6.22 | ||||||
Class Y Actual6 | $ | 1,000.00 | $ | 1,000.50 | $ | 3.68 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.18 | $ | 3.72 | ||||||
5 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.99%, 1.74%, 1.74%, 1.24%, and 0.74% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/366 (to reflect the one-half year period). |
6 | Based on the actual returns for the six-month period ended June 30, 2008 of 0.02%, -0.44%, -0.44%, -0.20%, and 0.05% for Class A, Class B, Class C, Class R, and Class Y, respectively. |
First American Funds 2008 Annual Report 23
Expense Examples concluded
U.S. Government Mortgage Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (1/01/08 to | ||||||||||
Value (1/01/08) | Value (6/30/08) | 6/30/08) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 998.80 | $ | 4.72 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.14 | $ | 4.77 | ||||||
Class B Actual2 | $ | 1,000.00 | $ | 995.10 | $ | 8.43 | ||||||
Class B Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,016.41 | $ | 8.52 | ||||||
Class C Actual2 | $ | 1,000.00 | $ | 995.10 | $ | 8.43 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,016.41 | $ | 8.52 | ||||||
Class R Actual2 | $ | 1,000.00 | $ | 996.60 | $ | 5.96 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.90 | $ | 6.02 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 1,000.00 | $ | 3.48 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.38 | $ | 3.52 | ||||||
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.95%, 1.70%, 1.70%, 1.20%, and 0.70% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/366 (to reflect the one-half year period). |
2 | Based on the actual returns for the six-month period ended June 30, 2008 of -0.12%, -0.49%, -0.49%, -0.34%, and 0.00% for Class A, Class B, Class C, Class R, and Class Y, respectively. |
24 First American Funds 2008 Annual Report
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Directors
First American Investment Funds, Inc.
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of the Core Bond, High Income Bond, Inflation Protected Securities, Intermediate Government Bond, Intermediate Term Bond, Short Term Bond, Total Return Bond, and U.S. Government Mortgage Funds (series of First American Investment Funds, Inc.) (the “funds”) as of June 30, 2008, and the related statements of operations, changes in net assets and financial highlights for each of the periods indicated therein. These financial statements and financial highlights are the responsibility of the funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the funds’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included verification by examination of securities held by the custodian as of June 30, 2008 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 each of the funds listed above of First American Investment Funds, Inc. at June 30, 2008, the results of their operations, changes in their net assets and their financial highlights for each of the periods indicated therein, in conformity with U.S. generally accepted accounting principles.
![-s- Ernst & Young LLP](https://capedge.com/proxy/N-CSR/0000950137-08-011507/c34172ernstyo.gif)
Minneapolis, Minnesota
August 20, 2008
First American Funds 2008 Annual Report 25
Schedule of Investments June 30, 2008, all dollars are rounded to thousands (000)
Core Bond Fund | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Corporate Bonds – 32.4% | ||||||||
Banking – 6.4% | ||||||||
Bank of America | ||||||||
5.750%, 12/01/2017 | $ | 8,035 | $ | 7,546 | ||||
8.000%, 12/29/2049 Δ | 3,685 | 3,452 | ||||||
Citigroup | ||||||||
6.125%, 11/21/2017 | 7,105 | 6,819 | ||||||
8.400%, 04/29/2049 Δ | 11,500 | 10,932 | ||||||
Citigroup Capital XXI | ||||||||
8.300%, 12/21/2057 Δ | 7,155 | 6,757 | ||||||
Deutsche Bank AG London | ||||||||
4.875%, 05/20/2013 | 5,320 | 5,233 | ||||||
Fifth Third Bancorp | ||||||||
6.250%, 05/01/2013 | 5,240 | 4,796 | ||||||
First National Bank of Chicago | ||||||||
8.080%, 01/05/2018 | 1,248 | 1,481 | ||||||
HSBC Holdings | ||||||||
6.800%, 06/01/2038 | 6,370 | 5,999 | ||||||
JPMorgan Chase | ||||||||
5.150%, 10/01/2015 | 8,115 | 7,813 | ||||||
Series 1 | ||||||||
7.900%, 04/29/2049 Δ | 3,000 | 2,813 | ||||||
JPMorgan Chase Capital XX | ||||||||
Series T | ||||||||
6.550%, 09/29/2036 | 2,510 | 2,171 | ||||||
Lloyds | ||||||||
6.267%, 12/31/2049 Δ n | 5,000 | 3,988 | ||||||
National City Preferred Capital Trust I | ||||||||
12.000%, 12/29/2049 Δ | 3,355 | 3,200 | ||||||
UBS Preferred Funding Trust V | ||||||||
6.243%, 05/29/2049 Δ | 2,525 | 2,212 | ||||||
Wachovia | ||||||||
5.750%, 02/01/2018 | 7,180 | 6,544 | ||||||
7.980%, 02/28/2049 Δ | 9,200 | 8,449 | ||||||
Wells Fargo | ||||||||
5.625%, 12/11/2017 | 4,140 | 4,006 | ||||||
Wells Fargo Capital X | ||||||||
5.950%, 12/15/2036 | 2,760 | 2,504 | ||||||
Wells Fargo Capital XIII | ||||||||
Series GMTN | ||||||||
7.700%, 12/29/2049 Δ | 4,000 | 3,976 | ||||||
100,691 | ||||||||
Basic Industry – 1.8% | ||||||||
Arcelormittal | ||||||||
6.125%, 06/01/2018 n | 5,620 | 5,492 | ||||||
Celulosa Arauco y Constitucion | ||||||||
5.625%, 04/20/2015 | 3,000 | 2,912 | ||||||
Georgia-Pacific | ||||||||
7.125%, 01/15/2017 n 6 | 1,500 | 1,410 | ||||||
International Paper | ||||||||
8.700%, 06/15/2038 | 2,300 | 2,317 | ||||||
Rio Tinto Financial U.S.A. | ||||||||
6.500%, 07/15/2018 | 3,385 | 3,395 | ||||||
Southern Copper | ||||||||
7.500%, 07/27/2035 | 2,640 | 2,585 | ||||||
Teck Cominco Limited | ||||||||
6.125%, 10/01/2035 | 2,785 | 2,449 | ||||||
U.S. Steel | ||||||||
7.000%, 02/01/2018 | 3,650 | 3,642 | ||||||
Vale Overseas | ||||||||
6.250%, 01/11/2016 | 2,380 | 2,325 | ||||||
Vedanta Resources | ||||||||
9.500%, 07/18/2018 n « | 2,465 | 2,453 | ||||||
28,980 | ||||||||
Brokerage – 3.7% | ||||||||
Bear Stearns | ||||||||
7.250%, 02/01/2018 | 3,750 | 3,913 | ||||||
Goldman Sachs Capital II | ||||||||
5.793%, 12/29/2049 Δ | 2,415 | 1,679 | ||||||
Goldman Sachs Group | ||||||||
6.150%, 04/01/2018 | 5,320 | 5,161 | ||||||
6.750%, 10/01/2037 | 3,685 | 3,371 | ||||||
Lehman Brothers Holdings | ||||||||
6.500%, 07/19/2017 | 4,495 | 4,159 | ||||||
Series MTN | ||||||||
5.625%, 01/24/2013 | 5,120 | 4,846 | ||||||
Merrill Lynch | ||||||||
6.050%, 05/16/2016 | 9,935 | 9,165 | ||||||
Series MTN | ||||||||
6.150%, 04/25/2013 6 | 7,020 | 6,804 | ||||||
Morgan Stanley | ||||||||
5.375%, 10/15/2015 | 8,270 | 7,566 | ||||||
Series MTN | ||||||||
6.625%, 04/01/2018 | 13,160 | 12,470 | ||||||
59,134 | ||||||||
Capital Goods – 0.2% | ||||||||
Siemens Financiering | ||||||||
6.125%, 08/17/2026 n | 3,070 | 2,947 | ||||||
Communications – 3.0% | ||||||||
AT&T | ||||||||
5.500%, 02/01/2018 | 5,075 | 4,918 | ||||||
6.300%, 01/15/2038 | 2,145 | 2,027 | ||||||
British Sky Broadcasting | ||||||||
6.100%, 02/15/2018 n | 5,795 | 5,700 | ||||||
British Telecom | ||||||||
5.950%, 01/15/2018 | 5,345 | 5,110 | ||||||
Comcast | ||||||||
6.300%, 11/15/2017 | 6,500 | 6,441 | ||||||
6.400%, 05/15/2038 | 2,775 | 2,560 | ||||||
DirecTV Holdings | ||||||||
7.625%, 05/15/2016 n | 1,790 | 1,763 | ||||||
Embarq | ||||||||
7.082%, 06/01/2016 | 2,575 | 2,446 | ||||||
Idearc | ||||||||
8.000%, 11/15/2016 | 1,000 | 629 | ||||||
News America | ||||||||
6.650%, 11/15/2037 | 3,590 | 3,505 | ||||||
Time Warner Cable | ||||||||
7.300%, 07/01/2038 | 4,730 | 4,701 | ||||||
Verizon Communications | ||||||||
6.900%, 04/15/2038 | 5,870 | 5,801 | ||||||
Vodafone Group | ||||||||
6.150%, 02/27/2037 | 2,000 | 1,829 | ||||||
47,430 | ||||||||
Consumer Cyclical – 1.8% | ||||||||
Duty Free International | ||||||||
7.000%, 01/15/2004 ¥ + ª | 2,191 | - | ||||||
Home Depot | ||||||||
5.875%, 12/16/2036 | 3,570 | 2,917 | ||||||
McDonald’s | ||||||||
Series MTN | ||||||||
5.350%, 03/01/2018 | 4,170 | 4,068 | ||||||
MGM Mirage | ||||||||
6.625%, 07/15/2015 | 3,525 | 2,829 | ||||||
Rite Aid | ||||||||
7.500%, 03/01/2017 | 925 | 747 | ||||||
Royal Caribbean Cruises | ||||||||
7.000%, 06/15/2013 | 2,565 | 2,270 |
The accompanying notes are an integral part of the financial statements.
26 First American Funds 2008 Annual Report
Core Bond Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Target | ||||||||
7.000%, 01/15/2038 | $ | 4,285 | $ | 4,393 | ||||
Viacom | ||||||||
6.875%, 04/30/2036 | 4,105 | 3,855 | ||||||
Wal-Mart Stores | ||||||||
6.200%, 04/15/2038 | 3,290 | 3,233 | ||||||
Whirlpool | ||||||||
Series MTN | ||||||||
5.500%, 03/01/2013 | 4,905 | 4,847 | ||||||
29,159 | ||||||||
Consumer Non Cyclical – 3.0% | ||||||||
AmerisourceBergen | ||||||||
5.625%, 09/15/2012 | 6,000 | 5,964 | ||||||
Cardinal Health | ||||||||
6.750%, 02/15/2011 | 7,500 | 7,765 | ||||||
Constellation Brands | ||||||||
7.250%, 05/15/2017 | 1,600 | 1,496 | ||||||
Covidien International | ||||||||
6.000%, 10/15/2017 | 2,000 | 2,024 | ||||||
6.550%, 10/15/2037 | 4,650 | 4,690 | ||||||
Glaxosmithkline Capital | ||||||||
4.850%, 05/15/2013 | 6,720 | 6,711 | ||||||
HCA | ||||||||
9.250%, 11/15/2016 | 1,190 | 1,226 | ||||||
Kraft Foods | ||||||||
6.500%, 08/11/2017 | 7,700 | 7,710 | ||||||
Philip Morris International | ||||||||
6.375%, 05/16/2038 | 5,000 | 4,872 | ||||||
Smithfield Foods | ||||||||
7.000%, 08/01/2011 | 1,600 | 1,460 | ||||||
UnitedHealth Group | ||||||||
6.875%, 02/15/2038 | 3,185 | 3,014 | ||||||
46,932 | ||||||||
Electric – 2.3% | ||||||||
Energy Future Holdings | ||||||||
10.875%, 11/01/2017 n | 2,875 | 2,904 | ||||||
Florida Power & Light | ||||||||
5.650%, 02/01/2037 6 | 4,160 | 3,933 | ||||||
MidAmerican Energy Holdings | ||||||||
6.125%, 04/01/2036 6 | 5,185 | 4,979 | ||||||
Ohio Power | ||||||||
Series K | ||||||||
6.000%, 06/01/2016 | 4,100 | 4,067 | ||||||
Oncor Electric Delivery | ||||||||
7.000%, 05/01/2032 | 5,115 | 4,896 | ||||||
Pacific Gas & Electric | ||||||||
6.050%, 03/01/2034 | 4,650 | 4,484 | ||||||
Taqa Abu Dhabi National Energy | ||||||||
6.165%, 10/25/2017 n | 4,315 | 4,263 | ||||||
Transalta | ||||||||
6.650%, 05/15/2018 | 3,470 | 3,401 | ||||||
Virginia Electric Power | ||||||||
5.950%, 09/15/2017 | 2,880 | 2,894 | ||||||
35,821 | ||||||||
Energy – 2.0% | ||||||||
Canadian National Resources | ||||||||
5.900%, 02/01/2018 | 6,535 | 6,493 | ||||||
Encana | ||||||||
6.500%, 02/01/2038 | 2,670 | 2,641 | ||||||
Marathon Oil | ||||||||
5.900%, 03/15/2018 | 5,240 | 5,179 | ||||||
Nexen | ||||||||
6.400%, 05/15/2037 | 3,475 | 3,290 | ||||||
Petro-Canada | ||||||||
6.800%, 05/15/2038 | 3,185 | 3,120 | ||||||
Suncor Energy | ||||||||
6.100%, 06/01/2018 | 2,525 | 2,533 | ||||||
Tengizcheveroil Finance | ||||||||
6.124%, 11/15/2014 n | 4,323 | 4,161 | ||||||
Weatherford International | ||||||||
7.000%, 03/15/2038 | 1,755 | 1,799 | ||||||
XTO Energy | ||||||||
6.375%, 06/15/2038 | 2,450 | 2,341 | ||||||
31,557 | ||||||||
Finance – 1.3% | ||||||||
CIT Group | ||||||||
5.650%, 02/13/2017 | 1,295 | 893 | ||||||
Credit Agricole | ||||||||
6.637%, 05/29/2049 Δ n | 3,270 | 2,723 | ||||||
International Lease Finance | ||||||||
6.375%, 03/25/2013 | 2,455 | 2,241 | ||||||
Rockies Express Pipeline | ||||||||
7.500%, 07/15/2038 n | 2,635 | 2,673 | ||||||
SLM | ||||||||
Series MTN | ||||||||
5.400%, 10/25/2011 | 4,705 | 4,297 | ||||||
Transcapitalinvest | ||||||||
5.670%, 03/05/2014 n | 8,475 | 7,926 | ||||||
20,753 | ||||||||
Insurance – 2.0% | ||||||||
Allied World Assurance | ||||||||
7.500%, 08/01/2016 6 | 6,480 | 6,065 | ||||||
American International Group | ||||||||
8.175%, 05/15/2058 Δ n | 7,005 | 6,593 | ||||||
Chubb | ||||||||
5.750%, 05/15/2018 | 1,745 | 1,691 | ||||||
Genworth Financial | ||||||||
Series MTN | ||||||||
6.515%, 05/22/2018 | 3,940 | 3,688 | ||||||
Hartford Financial Services Group | ||||||||
Series MTN | ||||||||
6.000%, 01/15/2019 | 5,860 | 5,634 | ||||||
MBIA Insurance | ||||||||
14.000%, 01/15/2033 Δ n | 2,860 | 1,187 | ||||||
MetLife Capital Trust IV | ||||||||
7.875%, 12/15/2037 n | 3,735 | 3,660 | ||||||
ZFS Finance USA Trust V | ||||||||
6.500%, 05/09/2037 Δ n | 2,860 | 2,496 | ||||||
31,014 | ||||||||
Natural Gas – 0.5% | ||||||||
Kinder Morgan Energy Partners | ||||||||
Series MTN | ||||||||
6.950%, 01/15/2038 | 3,060 | 3,037 | ||||||
NGPL Pipeco | ||||||||
7.119%, 12/15/2017 n | 2,640 | 2,698 | ||||||
Transocean | ||||||||
6.000%, 03/15/2018 | 1,710 | 1,713 | ||||||
7,448 | ||||||||
Other Utility – 0.2% | ||||||||
American Water Capital | ||||||||
6.085%, 10/15/2017 | 3,105 | 2,978 | ||||||
Real Estate – 0.9% | ||||||||
Health Care Properties – REIT | ||||||||
Series MTN | ||||||||
6.300%, 09/15/2016 | 8,270 | 7,372 |
First American Funds 2008 Annual Report 27
Schedule of Investments June 30, 2008, all dollars are rounded to thousands (000)
Core Bond Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Prologis 2006 – REIT | ||||||||
5.750%, 04/01/2016 | $ | 6,835 | $ | 6,437 | ||||
13,809 | ||||||||
Sovereign – 0.5% | ||||||||
Australian Government | ||||||||
5.250%, 03/15/2019 ¬ | AUD | 9,300 | 8,090 | |||||
Technology – 2.2% | ||||||||
Chartered Semiconductor | ||||||||
6.375%, 08/03/2015 | $ | 1,715 | 1,643 | |||||
Computer Sciences | ||||||||
6.500%, 03/15/2018 n | 3,835 | 3,854 | ||||||
First Data | ||||||||
9.875%, 09/24/2015 n | 2,165 | 1,884 | ||||||
IBM | ||||||||
5.700%, 09/14/2017 6 | 12,595 | 12,783 | ||||||
Jabil Circuit | ||||||||
5.875%, 07/15/2010 | 8,660 | 8,454 | ||||||
National Semiconductor | ||||||||
6.600%, 06/15/2017 | 5,345 | 5,281 | ||||||
NXP BV/NXP Funding | ||||||||
9.500%, 10/15/2015 6 | 805 | 700 | ||||||
34,599 | ||||||||
Transportation – 0.6% | ||||||||
Burlington Northern Santa Fe | ||||||||
5.900%, 07/01/2012 | 4,670 | 4,802 | ||||||
Erac USA Finance | ||||||||
6.375%, 10/15/2017 n | 2,945 | 2,631 | ||||||
Hertz | ||||||||
8.875%, 01/01/2014 | 1,685 | 1,542 | ||||||
8,975 | ||||||||
Total Corporate Bonds | ||||||||
(Cost $534,065) | 510,317 | |||||||
U.S. Government Agency Mortgage-Backed Securities – 30.6% | ||||||||
Adjustable Rate Δ – 2.8% | ||||||||
Federal Home Loan Mortgage Corporation Pool | ||||||||
6.602%, 05/01/2025, #846757 | 245 | 247 | ||||||
6.422%, 04/01/2029, #847190 | 1,482 | 1,503 | ||||||
6.681%, 03/01/2030, #847180 | 1,618 | 1,628 | ||||||
6.507%, 07/01/2030, #847240 | 2,286 | 2,308 | ||||||
6.380%, 06/01/2031, #846984 | 803 | 802 | ||||||
5.771%, 07/01/2036, #1K1238 6 | 10,743 | 10,980 | ||||||
Federal National Mortgage Association Pool | ||||||||
6.675%, 08/01/2030, #555843 6 | 5,259 | 5,358 | ||||||
6.716%, 03/01/2031, #545359 | 405 | 409 | ||||||
6.286%, 09/01/2033, #725553 | 1,933 | 1,961 | ||||||
5.270%, 11/01/2034, #735054 6 | 9,983 | 10,022 | ||||||
5.856%, 09/01/2037, #946441 | 9,449 | 9,606 | ||||||
Government National Mortgage Association Pool | ||||||||
4.750%, 08/20/2023, #008259 | 1 | 1 | ||||||
44,825 | ||||||||
Fixed Rate – 27.8% | ||||||||
Federal Home Loan Mortgage Corporation Pool | ||||||||
4.500%, 03/01/2018, #P10023 | 2,295 | 2,272 | ||||||
4.500%, 05/01/2018, #P10032 | 4,688 | 4,641 | ||||||
5.000%, 05/01/2018, #E96700 6 | 8,315 | 8,295 | ||||||
6.500%, 01/01/2028, #G00876 | 975 | 1,017 | ||||||
6.500%, 11/01/2028, #C00676 | 1,961 | 2,042 | ||||||
6.500%, 12/01/2028, #C00689 | 1,412 | 1,471 | ||||||
6.500%, 04/01/2029, #C00742 | 803 | 837 | ||||||
6.500%, 07/01/2031, #A17212 | 3,739 | 3,889 | ||||||
6.000%, 11/01/2033, #A15521 | 2,968 | 3,015 | ||||||
7.000%, 08/01/2037, #H09059 6 | 10,000 | 10,385 | ||||||
5.985%, 09/01/2037, #1G2163 6 | 10,018 | 10,194 | ||||||
7.000%, 09/01/2037, #H01292 6 | 4,738 | 4,920 | ||||||
Federal National Mortgage Association Pool | ||||||||
3.790%, 07/01/2013, #386314 6 | 16,915 | 16,079 | ||||||
5.500%, 02/01/2014, #440780 | 1,647 | 1,675 | ||||||
7.000%, 02/01/2015, #535206 | 407 | 427 | ||||||
7.000%, 08/01/2016, #591038 | 505 | 530 | ||||||
5.500%, 12/01/2017, #673010 | 3,584 | 3,641 | ||||||
5.000%, 11/01/2018, #750989 | 13,363 | 13,346 | ||||||
4.500%, 01/01/2019, #755666 | 3,444 | 3,368 | ||||||
6.000%, 10/01/2022, #254513 6 | 3,577 | 3,653 | ||||||
5.000%, 07/17/2023 « | 8,010 | 7,920 | ||||||
5.500%, 01/01/2025, #255575 | 8,278 | 8,267 | ||||||
5.500%, 02/01/2025, #255628 | 11,792 | 11,777 | ||||||
5.500%, 10/01/2025, #255956 | 14,717 | 14,682 | ||||||
7.000%, 04/01/2026, #340798 | 277 | 294 | ||||||
7.000%, 05/01/2026, #250551 | 383 | 406 | ||||||
6.000%, 08/01/2027, #256852 | 8,975 | 9,119 | ||||||
6.500%, 02/01/2029, #252255 | 1,680 | 1,748 | ||||||
6.500%, 12/01/2031, #254169 | 3,895 | 4,008 | ||||||
6.000%, 04/01/2032, #745101 | 9,081 | 9,212 | ||||||
7.000%, 07/01/2032, #254379 | 2,270 | 2,391 | ||||||
7.000%, 07/01/2032, #545813 | 988 | 1,044 | ||||||
7.000%, 07/01/2032, #545815 | 609 | 644 | ||||||
6.000%, 09/01/2032, #254447 | 4,102 | 4,166 | ||||||
6.000%, 03/01/2033, #688330 | 6,468 | 6,569 | ||||||
5.500%, 04/01/2033, #694605 | 8,412 | 8,340 | ||||||
6.500%, 05/01/2033, #555798 6 | 5,181 | 5,382 | ||||||
5.500%, 06/01/2033, #843435 | 5,783 | 5,738 | ||||||
5.500%, 07/01/2033, #709446 | 9,420 | 9,341 | ||||||
5.500%, 08/01/2033, #733380 | 9,371 | 9,292 | ||||||
5.500%, 10/01/2033, #555800 | 14,411 | 14,289 | ||||||
6.000%, 11/01/2033, #772130 | 706 | 716 | ||||||
6.000%, 11/01/2033, #772256 | 993 | 1,007 | ||||||
5.000%, 03/01/2034, #725205 | 6,982 | 6,736 | ||||||
5.000%, 03/01/2034, #725248 | 3,451 | 3,330 | ||||||
5.000%, 03/01/2034, #725250 | 6,298 | 6,076 | ||||||
5.000%, 06/01/2034, #782909 | 2 | 2 | ||||||
6.500%, 06/01/2034, #735273 | 7,781 | 8,077 | ||||||
5.500%, 08/01/2034, #745563 | 11,200 | 11,105 | ||||||
6.000%, 10/01/2034, #781776 | 1,740 | 1,762 | ||||||
6.500%, 04/01/2036, #831377 | 5,427 | 5,595 | ||||||
6.500%, 04/01/2036, #852909 | 5,042 | 5,198 | ||||||
6.500%, 07/01/2036, #831683 | 7,598 | 7,833 | ||||||
6.000%, 08/01/2036, #885536 | 6,407 | 6,473 | ||||||
6.500%, 08/01/2036, #893318 | 6,654 | 6,860 | ||||||
6.000%, 09/01/2036, #900555 | 12,401 | 12,561 | ||||||
6.500%, 09/01/2036, #831799 | 7,968 | 8,214 | ||||||
6.500%, 08/01/2037, #256845 | 2,805 | 2,892 | ||||||
6.000%, 09/01/2037, #256890 6 | 5,924 | 5,937 | ||||||
6.000%, 04/01/2038, #889406 | 2,465 | 2,489 | ||||||
5.000%, 07/14/2038 « | 24,500 | 23,482 | ||||||
6.000%, 07/14/2038 « | 33,060 | 33,349 | ||||||
5.500%, 07/15/2038 « | 47,655 | 46,970 | ||||||
Government National Mortgage Association Pool | ||||||||
7.500%, 11/15/2030, #537699 6 | 426 | 458 | ||||||
437,448 | ||||||||
Total U.S. Government Agency Mortgage-Backed Securities | ||||||||
(Cost $482,462) | 482,273 | |||||||
The accompanying notes are an integral part of the financial statements.
28 First American Funds 2008 Annual Report
Core Bond Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Asset-Backed Securities – 22.9% | ||||||||
Automotive – 1.4% | ||||||||
FTN Financial Auto Securitization Trust | ||||||||
Series 2004-A, Class A | ||||||||
2.550%, 06/15/2010 n ¥ | $ | 282 | $ | 281 | ||||
Harley-Davidson Motorcycle Trust | ||||||||
Series 2005-4, Class A2 | ||||||||
4.850%, 06/15/2012 | 7,325 | 7,393 | ||||||
Hertz Vehicle Financing | ||||||||
Series 2005-2A, Class A6 | ||||||||
5.080%, 11/25/2011 n | 14,690 | 13,768 | ||||||
21,442 | ||||||||
Credit Cards – 2.8% | ||||||||
American Express Credit Account Master Trust | ||||||||
Series 2004-3, Class C | ||||||||
2.984%, 12/15/2011 Δ n | 1,480 | 1,442 | ||||||
American Express Issuance Trust | ||||||||
Series 2005-1, Class C | ||||||||
2.844%, 08/15/2011 Δ | 4,125 | 3,907 | ||||||
Bank of America Credit Card Trust | ||||||||
Series 2006-C4, Class C4 | ||||||||
2.701%, 11/15/2011 Δ | 3,800 | 3,720 | ||||||
Series 2007-A8, Class A8 | ||||||||
5.590%, 11/17/2014 | 12,575 | 12,928 | ||||||
Citibank Credit Card Issuance Trust | ||||||||
Series 2006-A4, Class A4 | ||||||||
5.450%, 05/10/2013 | 11,485 | 11,760 | ||||||
Discover Card Master Trust | ||||||||
Series 2007-C1, Class C1 | ||||||||
2.791%, 01/15/2013 Δ | 4,150 | 3,785 | ||||||
Series 2007-A1, Class A1 | ||||||||
5.650%, 03/16/2020 | 3,275 | 3,185 | ||||||
Washington Mutual Master Note Trust | ||||||||
Series 2007-C1, Class C1 | ||||||||
2.871%, 05/15/2014 Δ n | 4,075 | 3,138 | ||||||
43,865 | ||||||||
Home Equity – 0.0% | ||||||||
Amresco Residential Security Mortgage | ||||||||
Series 1997-3, Class A9 | ||||||||
6.960%, 03/25/2027 ¥ | 54 | 52 | ||||||
Countrywide Asset-Backed Certificates | ||||||||
Series 2003-SC1, Class M2 | ||||||||
4.643%, 09/25/2023 Δ | 766 | 646 | ||||||
Saxon Asset Securities Trust | ||||||||
Series 2004-1, Class A | ||||||||
2.933%, 03/25/2035 Δ | 178 | 154 | ||||||
852 | ||||||||
Other – 17.8% | ||||||||
Banc of America Commercial Mortgage | ||||||||
Series 2004-5, Class A3 | ||||||||
4.561%, 11/10/2041 | 14,830 | 14,431 | ||||||
Series 2006-2, Class A4 | ||||||||
5.929%, 05/10/2045 Δ | 4,085 | 3,989 | ||||||
Series 2005-5, Class AM | ||||||||
5.176%, 10/10/2045 | 7,055 | 6,650 | ||||||
Bear Stearns Commercial Mortgage Securities | ||||||||
Series 2007-T28, Class D | ||||||||
5.992%, 09/11/2042 Δ n | 3,165 | 2,035 | ||||||
Series 2007-PW18, Class AJ | ||||||||
6.210%, 06/11/2050 Δ | 3,675 | 3,017 | ||||||
Citigroup Commercial Mortgage Trust | ||||||||
Series 2008-C7, Class AJ | ||||||||
6.299%, 12/10/2049 Δ | 4,950 | 4,031 | ||||||
Citigroup/Deutsche Bank Commercial Mortgage Trust | ||||||||
Series 2007-CD4, Class A2B | ||||||||
5.205%, 12/11/2049 | 4,700 | 4,572 | ||||||
Commercial Mortgage Pass-Through Certificates | ||||||||
Series 2006-CN2A, Class A2FX | ||||||||
5.449%, 02/05/2019 n | 9,225 | 9,195 | ||||||
Series 2004-RS1, Class A | ||||||||
4.018%, 03/03/2041 n ¥ | 4,357 | 3,757 | ||||||
Series 2005-LP5, Class A2 | ||||||||
4.630%, 05/10/2043 | 13,858 | 13,789 | ||||||
Crown Castle Towers | ||||||||
Series 2005-1A, Class B | ||||||||
4.878%, 06/15/2035 n | 10,765 | 10,502 | ||||||
GE Capital Commercial Mortgage Corporation | ||||||||
Series 2005-C3, Class A2 | ||||||||
4.853%, 07/10/2045 | 11,590 | 11,543 | ||||||
Global Signal Trust | ||||||||
Series 2004-2A, Class A | ||||||||
4.232%, 12/15/2014 n | 11,480 | 11,377 | ||||||
Series 2006-1, Class C | ||||||||
5.707%, 02/15/2036 n | 8,093 | 7,759 | ||||||
GMAC Commercial Mortgage Securities | ||||||||
Series 2005-C1, Class A2 | ||||||||
4.471%, 05/10/2043 | 18,871 | 18,730 | ||||||
Greenwich Capital Commercial Funding | ||||||||
Series 2003-C1, Class A2 | ||||||||
3.285%, 07/05/2035 | 7,552 | 7,360 | ||||||
Series 2007-GG11, Class A4 | ||||||||
5.736%, 12/10/2049 | 16,405 | 15,507 | ||||||
Series 2007-GG11, Class AJ | ||||||||
6.207%, 12/10/2049 Δ | 8,685 | 7,038 | ||||||
GS Mortgage Securities II | ||||||||
Series 2007-GG10, Class A4 | ||||||||
5.993%, 08/10/2045 Δ 6 | 18,130 | 17,336 | ||||||
Series 2006-RR2, Class A1 | ||||||||
5.687%, 06/23/2046 Δ n ¥ | 4,334 | 3,292 | ||||||
JPMorgan Chase Commercial Mortgage Securities | ||||||||
Series 2005-LDP5, Class B | ||||||||
5.334%, 12/15/2044 | 2,750 | 2,404 | ||||||
LB-UBS Commercial Mortgage Trust | ||||||||
Series 2003-C3, Class A2 | ||||||||
3.086%, 05/15/2027 | 1,158 | 1,155 | ||||||
Series 2005-C7, Class A2 | ||||||||
5.103%, 11/15/2030 | 12,940 | 12,908 | ||||||
Series 2008-C1, Class AJ | ||||||||
6.317%, 04/15/2041 Δ | 2,350 | 1,906 | ||||||
Merrill Lynch Mortgage Trust | ||||||||
Series 2005-CIP1, Class C | ||||||||
5.301%, 07/12/2038 Δ | 3,102 | 2,620 | ||||||
Series 2005-LC1, Class AM | ||||||||
5.266%, 01/12/2044 Δ | 5,938 | 5,644 | ||||||
Series 2008-C1, Class A4 | ||||||||
5.690%, 02/12/2051 | 9,550 | 9,351 | ||||||
Merrill Lynch/Countrywide Commercial Mortgage Trust | ||||||||
Series 2007-8, Class AM | ||||||||
6.156%, 08/12/2049 Δ | 7,670 | 6,972 | ||||||
Morgan Stanley Capital I | ||||||||
Series 2005-HQ6, Class B | ||||||||
5.152%, 08/13/2042 Δ | 1,340 | 1,161 | ||||||
Series 2005-HQ6, Class C | ||||||||
5.172%, 08/13/2042 Δ | 1,270 | 1,090 |
First American Funds 2008 Annual Report 29
Schedule of Investments June 30, 2008, all dollars are rounded to thousands (000)
Core Bond Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Morgan Stanley Dean Witter Capital I | ||||||||
Series 2002-TOP7, Class A2 | ||||||||
5.980%, 01/15/2039 | $ | 12,505 | $ | 12,854 | ||||
Small Business Administration | ||||||||
Series 2005-P10B, Class 1 | ||||||||
4.940%, 08/10/2015 | 8,291 | 8,201 | ||||||
Series 2006-P10B, Class 1 | ||||||||
5.681%, 08/10/2016 | 16,248 | 16,545 | ||||||
Wachovia Bank Commercial Mortgage Trust | ||||||||
Series 2005-C19, Class A5 | ||||||||
4.661%, 05/15/2044 | 13,390 | 12,890 | ||||||
Series 2007-C34, Class AJ | ||||||||
6.146%, 05/15/2046 Δ | 5,184 | 4,181 | ||||||
Series 2007-C33, Class AJ | ||||||||
6.100%, 02/15/2051 Δ | 4,945 | 3,986 | ||||||
279,778 | ||||||||
Utilities – 0.9% | ||||||||
Centerpoint Energy Transition | ||||||||
Series 2005-A, Class A5 | ||||||||
5.302%, 08/01/2020 | 3,200 | 3,122 | ||||||
PG & E Energy Recovery Funding | ||||||||
Series 2005-2, Class A2 | ||||||||
5.030%, 03/25/2014 | 11,705 | 11,907 | ||||||
15,029 | ||||||||
Total Asset-Backed Securities | ||||||||
(Cost $369,445) | 360,966 | |||||||
Collateralized Mortgage Obligation – Private Mortgage-Backed Securities – 15.8% | ||||||||
Adjustable Rate Δ – 6.2% | ||||||||
Citigroup Mortgage Loan Trust | ||||||||
Series 2005-7, Class 2A1A | ||||||||
4.862%, 09/25/2035 | 9,081 | 8,682 | ||||||
Countrywide Alternative Loan Trust | ||||||||
Series 2006-OA17, Class 1A1A | ||||||||
2.674%, 12/20/2046 | 6,437 | 4,503 | ||||||
Countrywide Home Loans | ||||||||
Series 2004-2, Class 2A1 | ||||||||
5.290%, 02/25/2034 | 3,031 | 2,990 | ||||||
Series 2006-HYB5, Class 3A1A | ||||||||
5.964%, 09/20/2036 | 13,494 | 10,443 | ||||||
Harborview Mortgage Loan Trust | ||||||||
Series 2006-1, Class 2A1A | ||||||||
2.738%, 03/19/2037 | 10,804 | 7,600 | ||||||
Series 2007-4, Class 2A1 | ||||||||
2.718%, 07/19/2047 | 12,265 | 8,343 | ||||||
Indymac Index Mortgage Loan Trust | ||||||||
Series 2005-AR1, Class 4A1 | ||||||||
5.349%, 03/25/2035 | 2,001 | 1,632 | ||||||
JPMorgan Alternative Loan Trust | ||||||||
Series 2007-S1, Class A1 | ||||||||
3.175%, 04/25/2047 | 4,744 | 3,785 | ||||||
JPMorgan Mortgage Trust | ||||||||
Series 2005-A1, Class 3A2 | ||||||||
5.030%, 02/25/2035 | 5,854 | 5,152 | ||||||
Series 2006-A7, Class 3A4 | ||||||||
5.946%, 01/25/2037 | 1,582 | 1,196 | ||||||
Residential Funding Mortgage Securities I | ||||||||
Series 2006-SA2, Class 4A1 | ||||||||
5.868%, 08/25/2036 | 11,579 | 10,574 | ||||||
Structured Adjustable Rate Mortgage Loan Trust | ||||||||
Series 2004-11, Class A | ||||||||
7.195%, 08/25/2034 | 459 | 460 | ||||||
Wachovia Mortgage Loan Trust | ||||||||
Series 2005-B, Class 1A1 | ||||||||
4.940%, 10/20/2035 | 6,376 | 6,083 | ||||||
Washington Mutual | ||||||||
Series 2004-AR7, Class A6 | ||||||||
3.941%, 07/25/2034 | 12,035 | 11,889 | ||||||
Series 2007-HY2, Class 3A2 | ||||||||
5.931%, 09/25/2036 | 2,100 | 1,870 | ||||||
Wells Fargo Mortgage Backed Securities Trust | ||||||||
Series 2003-D, Class A1 | ||||||||
6.404%, 02/25/2033 | 1,633 | 1,628 | ||||||
Series 2006-AR1, Class 2A2 | ||||||||
5.551%, 03/25/2036 | 10,773 | 10,458 | ||||||
97,288 | ||||||||
Fixed Rate – 9.6% | ||||||||
Banc of America Funding | ||||||||
Series 2007-4, Class 1A2 | ||||||||
5.500%, 06/25/2037 | 3,224 | 3,097 | ||||||
Banc of America Mortgage Securities | ||||||||
Series 2003-6, Class 1A30 | ||||||||
4.750%, 08/25/2033 | 7,350 | 7,260 | ||||||
BCAP LLC Trust | ||||||||
Series 2006-RR1, Class PB | ||||||||
5.000%, 11/25/2036 | 10,925 | 10,251 | ||||||
Chase Mortgage Finance | ||||||||
Series 2004-S3, Class 3A1 | ||||||||
6.000%, 03/25/2034 | 6,576 | 6,321 | ||||||
Countrywide Alternative Loan Trust | ||||||||
Series 2004-12CB, Class 1A1 | ||||||||
5.000%, 07/25/2019 | 5,512 | 5,230 | ||||||
Series 2004-2CB, Class 1A1 | ||||||||
4.250%, 03/25/2034 | 3,028 | 2,927 | ||||||
Series 2004-24CB, Class 1A1 | ||||||||
6.000%, 11/25/2034 | 4,355 | 4,077 | ||||||
Series 2006-19CB, Class A15 | ||||||||
6.000%, 08/25/2036 | 4,362 | 4,250 | ||||||
Countrywide Home Loans | ||||||||
Series 2007-17, Class 1A1 | ||||||||
6.000%, 10/25/2037 | 14,030 | 13,889 | ||||||
Credit Suisse First Boston Mortgage Securities | ||||||||
Series 2005-3, Class 5A1 | ||||||||
5.500%, 07/25/2020 | 6,505 | 6,336 | ||||||
Series 2003-8, Class DB1 | ||||||||
6.238%, 04/25/2033 | 4,808 | 4,173 | ||||||
Deutsche Alt-A Securities | ||||||||
Series 2006-AR5, Class 22A | ||||||||
5.500%, 10/25/2021 | 8,032 | 7,334 | ||||||
First Horizon Mortgage Pass-Through Trust | ||||||||
Series 2004-4, Class 2A1 | ||||||||
4.500%, 07/25/2019 | 1,254 | 1,255 | ||||||
GMAC Mortgage Corporation Loan Trust | ||||||||
Series 2004-J5, Class A7 | ||||||||
6.500%, 01/25/2035 | 7,397 | 7,245 | ||||||
GSR Mortgage Loan Trust | ||||||||
Series 2004-10F, Class 3A1 | ||||||||
5.500%, 08/25/2019 | 5,618 | 5,529 | ||||||
Master Alternative Loans Trust | ||||||||
Series 2005-2, Class 1A3 | ||||||||
6.500%, 03/25/2035 | 2,769 | 2,504 |
The accompanying notes are an integral part of the financial statements.
30 First American Funds 2008 Annual Report
Core Bond Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Master Asset Securitization Trust | ||||||||
Series 2003-6, Class 3A1 | ||||||||
5.000%, 07/25/2018 | $ | 6,719 | $ | 6,492 | ||||
Morgan Stanley Mortgage Loan Trust | ||||||||
Series 2004-9, Class 1A | ||||||||
6.206%, 11/25/2034 | 5,201 | 4,730 | ||||||
Residential Accredit Loans | ||||||||
Series 2006-QS4, Class A9 | ||||||||
6.000%, 04/25/2036 | 13,494 | 12,045 | ||||||
Residential Asset Mortgage Products | ||||||||
Series 2003-SL1, Class M1 | ||||||||
7.316%, 04/25/2031 | 7,901 | 7,491 | ||||||
Series 2004-SL4, Class A3 | ||||||||
6.500%, 07/25/2032 | 2,670 | 2,534 | ||||||
Washington Mutual | ||||||||
Series 2004-CB1, Class 1A | ||||||||
5.250%, 06/25/2019 | 9,137 | 8,858 | ||||||
Washington Mutual Mortgage Pass-Through Trust | ||||||||
Series 2007-2, Class 3A1 | ||||||||
5.500%, 04/25/2022 | 7,178 | 6,938 | ||||||
Wells Fargo Mortgage Backed Securities Trust | ||||||||
Series 2007-13, Class A8 | ||||||||
6.000%, 09/25/2037 | 11,250 | 10,673 | ||||||
Westam Mortgage Financial | ||||||||
Series 11, Class A | ||||||||
6.360%, 08/26/2020 ¥ + | 49 | 49 | ||||||
151,488 | ||||||||
Total Collateralized Mortgage Obligation – Private Mortgage-Backed Securities | ||||||||
(Cost $268,252) | 248,776 | |||||||
Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities – 3.3% | ||||||||
Fixed Rate – 3.2% | ||||||||
Federal Home Loan Mortgage Corporation | ||||||||
Series 2763, Class TA | ||||||||
4.000%, 03/15/2011 | 7,148 | 7,313 | ||||||
Series 6, Class C | ||||||||
9.050%, 06/15/2019 | 20 | 20 | ||||||
Series 1022, Class J | ||||||||
6.000%, 12/15/2020 | 33 | 33 | ||||||
Series 162, Class F | ||||||||
7.000%, 05/15/2021 | 90 | 90 | ||||||
Series 188, Class H | ||||||||
7.000%, 09/15/2021 | 199 | 209 | ||||||
Series 1790, Class A | ||||||||
7.000%, 04/15/2022 | 71 | 74 | ||||||
Series 2901, Class UB | ||||||||
5.000%, 03/15/2033 | 5,000 | 4,867 | ||||||
Federal National Mortgage Association | ||||||||
Series 2003-3, Class BC | ||||||||
5.000%, 02/25/2018 | 14,030 | 13,929 | ||||||
Series 1988-24, Class G | ||||||||
7.000%, 10/25/2018 | 46 | 49 | ||||||
Series 1989-24, Class H | ||||||||
9.000%, 07/25/2019 | 43 | 48 | ||||||
Series 1989-90, Class E | ||||||||
8.700%, 12/25/2019 | 6 | 7 | ||||||
Series 1990-30, Class E | ||||||||
6.500%, 03/25/2020 | 26 | 27 | ||||||
Series 1990-61, Class H | ||||||||
7.000%, 06/25/2020 | 33 | 35 | ||||||
Series 1990-72, Class B | ||||||||
9.000%, 07/25/2020 | 25 | 28 | ||||||
Series 1990-102, Class J | ||||||||
6.500%, 08/25/2020 | 31 | 33 | ||||||
Series 1990-105, Class J | ||||||||
6.500%, 09/25/2020 | 330 | 345 | ||||||
Series 1991-56, Class M | ||||||||
6.750%, 06/25/2021 | 105 | 109 | ||||||
Series 1992-120, Class C | ||||||||
6.500%, 07/25/2022 | 41 | 43 | ||||||
Series 2005-44, Class PC | ||||||||
5.000%, 11/25/2027 | 12,380 | 12,530 | ||||||
Series 2005-62, Class JE | ||||||||
5.000%, 06/25/2035 | 9,958 | 9,946 | ||||||
49,735 | ||||||||
Z-Bonds x – 0.1% | ||||||||
Federal Home Loan Mortgage Corporation | ||||||||
Series 1118, Class Z | ||||||||
8.250%, 07/15/2021 | 53 | 56 | ||||||
Federal National Mortgage Association | ||||||||
Series 1991-134, Class Z | ||||||||
7.000%, 10/25/2021 | 228 | 237 | ||||||
Series 1996-35, Class Z | ||||||||
7.000%, 07/25/2026 | 1,089 | 1,154 | ||||||
1,447 | ||||||||
Total Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities | ||||||||
(Cost $50,267) | 51,182 | |||||||
U.S. Government & Agency Securities – 0.6% | ||||||||
U.S. Treasuries – 0.6% | ||||||||
U.S. Treasury Notes | ||||||||
3.125%, 04/30/2013 6 | 3,235 | 3,208 | ||||||
3.875%, 05/15/2018 6 | 7,065 | 7,006 | ||||||
Total U.S. Government & Agency Securities | ||||||||
(Cost $10,190) | 10,214 | |||||||
Preferred Stocks – 0.5% | ||||||||
Brokerage – 0.2% | ||||||||
Merrill Lynch 6 | 156,000 | 3,619 | ||||||
Sovereign – 0.3% | ||||||||
Fannie Mae 6 | 192,000 | 4,406 | ||||||
Total Preferred Stocks | ||||||||
(Cost $8,700) | 8,025 | |||||||
Short-Term Investments – 2.1% | ||||||||
Money Market Fund – 1.6% | ||||||||
First American Prime Obligations Fund, Class Z Å | 24,174,667 | 24,175 | ||||||
First American Funds 2008 Annual Report 31
Schedule of Investments June 30, 2008, all dollars are rounded to thousands (000)
Core Bond Fund (continued) | ||||||||
DESCRIPTION | PAR/SHARES | VALUE | ||||||
U.S. Treasury Obligations – 0.5% | ||||||||
U.S. Treasury Bills o | ||||||||
1.390%, 07/17/2008 | $ | 345 | $ | 345 | ||||
1.182%, 07/24/2008 | 1,510 | 1,509 | ||||||
1.763%, 08/14/2008 | 2,055 | 2,050 | ||||||
1.832%, 10/09/2008 | 4,145 | 4,124 | ||||||
1.972%, 11/06/2008 | 275 | 273 | ||||||
8,301 | ||||||||
Total Short-Term Investments | ||||||||
(Cost $32,478) | 32,476 | |||||||
Investment Purchased with Proceeds from Securities Lending – 8.0% | ||||||||
Mount Vernon Securities Lending Prime Portfolio † | ||||||||
(Cost $126,177) | 126,176,773 | 126,177 | ||||||
Total Investments – 116.2% | ||||||||
(Cost $1,882,036) | 1,830,406 | |||||||
Other Assets and Liabilities, Net – (16.2)% | (254,831 | ) | ||||||
Total Net Assets – 100.0% | $ | 1,575,575 | ||||||
Δ | Variable Rate Security – The rate shown is the rate in effect as of June 30, 2008. | |
n | Security purchased within the terms of a private placement memorandum, exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other “qualified institutional buyers.” As of June 30, 2008, the value of these investments was $139,952 or 8.9% of total net assets. See note 2 in Notes to Financial Statements. | |
6 | This security or a portion of this security is out on loan at June 30, 2008. Total loaned securities had a value of $123,618 at June 30, 2008. See note 2 in Notes to Financial Statements. | |
« | Security purchased on a when-issued basis. On June 30, 2008, the total cost of investments purchased on a when-issued basis was $113,700 or 7.2% of total net assets. See note 2 in Notes to Financial Statements. | |
¥ | Security is considered illiquid. As of June 30, 2008, the value of these investments were $7,431 or 0.5% of total net assets. See note 2 in Notes to Financial Statements. | |
+ | Security is fair valued. As of June 30, 2008, the fair value of this investment was $49 or 0.0% of total net assets. See note 2 in Notes to Financial Statements. | |
ª | Security is in default at June 30, 2008. | |
¬ | Foreign security values are stated in U.S. dollars. For debt securities, principal amounts are denominated in U.S. dollars unless otherwise noted. | |
x | Z-Bonds – Represents securities that pay no interest or principal during their accrual periods, but accrue additional principal at specified rates. Interest rate shown represents current yield based upon the cost basis and estimated future cash flows. | |
Å | Investment in affiliated security. This money market fund is advised by FAF Advisors Inc., which also serves as advisor to this fund. See note 3 in Notes to Financial Statements. | |
o | Security has been deposited as initial margin on open futures contracts and/or swap agreements. Yield shown is effective yield as of June 30, 2008. See note 2 in Notes to Financial Statements. | |
† | The fund may loan securities representing up to one third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks, or other institutional borrowers for 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 |
Core Bond Fund (continued)
Schedule of Open Futures Contracts
Number of | ||||||||||||||
Contracts | Notional | Unrealized | ||||||||||||
Purchased | Contract | Settlement | Appreciation | |||||||||||
Description | (Sold) | Value | Month | (Depreciation) | ||||||||||
Canadian Dollar Currency Futures | 49 | $ | 4,810 | September 2008 | $ | 8 | ||||||||
Japanese Yen Currency Futures | (34 | ) | (4,025 | ) | September 2008 | (67 | ) | |||||||
U.S. Treasury 2 Year Note Futures | 972 | 205,289 | September 2008 | 389 | ||||||||||
U.S. Treasury 5 Year Note Futures | (425 | ) | (46,986 | ) | September 2008 | (424 | ) | |||||||
U.S. Treasury 10 Year Note Futures | (764 | ) | (87,036 | ) | September 2008 | 68 | ||||||||
U.S. Treasury Long Bond Futures | 14 | 1,618 | September 2008 | (4 | ) | |||||||||
$ | (30 | ) | ||||||||||||
Credit Default Swap Agreements
Pay/ | Unrealized | |||||||||||||||||||||
Reference | Buy/Sell | Receive | Expiration | Notional | Appreciation | |||||||||||||||||
Counterparty | Entity | Protection | Fixed Rate | Date | Amount | (Depreciation) | ||||||||||||||||
Bank of America | Dow Jones CDX HY10 Index | Sell | 5.000% | 06/20/2013 | $ | 11,300 | $ | (252 | ) | |||||||||||||
Bank of America | Dow Jones CDX IG10 Index | Sell | 1.550% | 06/20/2013 | 23,500 | (114 | ) | |||||||||||||||
Deutsche Bank | Dow Jones CDX HVOL9 Index | Sell | 1.400% | 12/20/2012 | 26,200 | 394 | ||||||||||||||||
Deutsche Bank | Dow Jones CDX HVOL10 Index | Sell | 3.500% | 06/20/2013 | 37,900 | (890 | ) | |||||||||||||||
Deutsche Bank | Dow Jones CDX IG9 Index | Sell | 0.600% | 12/20/2012 | 19,300 | 77 | ||||||||||||||||
Deutsche Bank | Dow Jones CDX IG10 Index | Sell | 1.550% | 06/20/2013 | 32,700 | (135 | ) | |||||||||||||||
JPMorgan | Deutsche Bank AG | Buy | 0.525% | 09/20/2012 | 4,200 | 61 | ||||||||||||||||
JPMorgan | Dow Jones CDX HVOL9 Index | Sell | 1.400% | 12/20/2012 | 9,500 | 252 | ||||||||||||||||
JPMorgan | Dow Jones CDX HY9 Index | Sell | 3.750% | 12/20/2012 | 8,415 | (32 | ) | |||||||||||||||
JPMorgan | Dow Jones CDX IG10 Index | Sell | 1.550% | 06/20/2013 | 32,400 | (234 | ) | |||||||||||||||
JPMorgan | Dow Jones iTraxx Asia ex-Japan Index | Sell | 6.500% | 06/20/2013 | 2,700 | 75 | ||||||||||||||||
JPMorgan | GAP, Inc. | Buy | 1.230% | 12/20/2012 | 4,865 | (71 | ) | |||||||||||||||
JPMorgan | Markit ABX AAA071 Index | Sell | 0.090% | 08/25/2037 | 7,200 | (726 | ) | |||||||||||||||
UBS | AmerisourceBergen Corporation | Buy | 0.585% | 09/20/2012 | 6,000 | 22 | ||||||||||||||||
UBS | Cardinal Health, Inc. | Buy | 0.320% | 09/20/2012 | 6,000 | 26 | ||||||||||||||||
UBS | Dow Jones CDX HVOL10 Index | Sell | 3.500% | 06/20/2013 | 19,300 | (860 | ) | |||||||||||||||
UBS | Dow Jones CDX HY10 Index | Sell | 5.000% | 06/20/2013 | 16,200 | (57 | ) | |||||||||||||||
UBS | Dow Jones CDX IG9 Index | Sell | 0.600% | 12/20/2012 | 21,750 | 385 | ||||||||||||||||
UBS | Dow Jones iTraxx Asia ex-Japan Index | Sell | 6.500% | 06/20/2013 | 5,400 | 86 | ||||||||||||||||
UBS | Korea Government International Bond | Buy | 1.050% | 09/20/2015 | 7,000 | 37 | ||||||||||||||||
UBS | Whirlpool Corporation | Buy | 0.785% | 09/20/2017 | 4,000 | 123 | ||||||||||||||||
$ | (1,833 | ) | ||||||||||||||||||||
The accompanying notes are an integral part of the financial statements.
32 First American Funds 2008 Annual Report
Core Bond Fund (concluded)
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 | 4.625% | 09/20/2009 | $ | 88,000 | $ | 1,467 | ||||||||||||||
Citigroup | 3-Month LIBOR | Receive | 5.110% | 09/20/2017 | 11,000 | (393 | ) | |||||||||||||||
JPMorgan | 3-Month LIBOR | Pay | 3.958% | 06/17/2010 | 42,000 | 327 | ||||||||||||||||
UBS | 3-Month LIBOR | Pay | 4.568% | 10/02/2009 | 87,000 | 1,418 | ||||||||||||||||
UBS | 3-Month LIBOR | Pay | 2.743% | 04/17/2010 | 42,000 | (528 | ) | |||||||||||||||
UBS | 3-Month LIBOR | Pay | 2.795% | 04/18/2010 | 42,000 | (535 | ) | |||||||||||||||
UBS | 3-Month LIBOR | Pay | 3.418% | 05/30/2010 | 43,000 | (66 | ) | |||||||||||||||
UBS | 3-Month LIBOR | Receive | 5.153% | 10/02/2017 | 21,000 | (818 | ) | |||||||||||||||
UBS | 3-Month LIBOR | Receive | 5.042% | 11/13/2017 | 22,000 | (670 | ) | |||||||||||||||
$ | 202 | |||||||||||||||||||||
Core Bond Fund (concluded)
High Income Bond Fund | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
High Yield Corporate Bonds – 82.6% | ||||||||
Banking – 0.5% | ||||||||
Washington Mutual Preferred IV | ||||||||
9.750%, 10/29/2049 n Δ 6 | $ | 1,550 | $ | 1,221 | ||||
Basic Industry – 11.2% | ||||||||
AbitibiBowater | ||||||||
9.000%, 08/01/2009 | 1,500 | 1,389 | ||||||
Abitibi-Consolidated | ||||||||
13.750%, 04/01/2011 n Æ | 1,000 | 1,055 | ||||||
Aleris International | ||||||||
10.000%, 12/15/2016 | 1,000 | 732 | ||||||
Berry Plastics | ||||||||
7.484%, 02/15/2015 Δ | 1,225 | 1,173 | ||||||
Berry Plastics Holding | ||||||||
8.875%, 09/15/2014 | 1,000 | 865 | ||||||
Caraustar Industries | ||||||||
7.375%, 06/01/2009 6 | 500 | 437 | ||||||
Coalcorp Mining | ||||||||
Series A | ||||||||
12.000%, 08/31/2011 Æ | 375 | 349 | ||||||
Evraz Group | ||||||||
8.250%, 11/10/2015 n Æ | 1,500 | 1,466 | ||||||
9.500%, 04/24/2018 n Æ | 1,000 | 1,002 | ||||||
Exopack Holding | ||||||||
11.250%, 02/01/2014 | 500 | 464 | ||||||
Georgia-Pacific | ||||||||
7.125%, 01/15/2017 n 6 | 1,250 | 1,175 | ||||||
Griffin Coal Mining | ||||||||
9.500%, 12/01/2016 n Æ | 2,000 | 1,590 | ||||||
Hexion US Finance | ||||||||
9.750%, 11/15/2014 | 1,250 | 1,131 | ||||||
Industrias Metal | ||||||||
11.250%, 10/22/2014 n Æ | 750 | 675 | ||||||
Ineos Group Holdings | ||||||||
8.500%, 02/15/2016 n 6 Æ | 1,500 | 986 | ||||||
Intertape Polymer Group | ||||||||
8.500%, 08/01/2014 | 1,850 | 1,651 | ||||||
Mercer International | ||||||||
9.250%, 02/15/2013 Æ | 1,250 | 1,172 | ||||||
Momentive Performance Materials | ||||||||
9.750%, 12/01/2014 | 750 | 641 | ||||||
Neenah Paper | ||||||||
7.375%, 11/15/2014 | 1,500 | 1,324 | ||||||
Newark Group | ||||||||
9.750%, 03/15/2014 | 800 | 536 | ||||||
Noble Group Limited | ||||||||
6.625%, 03/17/2015 n Æ | 2,000 | 1,752 | ||||||
Nova Chemicals | ||||||||
6.500%, 01/15/2012 Æ | 2,450 | 2,193 | ||||||
Pliant | ||||||||
11.125%, 09/01/2009 6 | 500 | 423 | ||||||
PNA Intermediate Holding | ||||||||
10.065%, 02/15/2013 | 500 | 500 | ||||||
Rock-Tenn | ||||||||
9.250%, 03/15/2016 n | 1,000 | 1,060 | ||||||
Vedanta Resources | ||||||||
8.750%, 01/15/2014 n Æ « | 1,000 | 994 | ||||||
26,735 | ||||||||
Capital Goods – 4.3% | ||||||||
BE Aerospace | ||||||||
8.500%, 07/01/2018 « | 750 | 753 | ||||||
Case New Holland | ||||||||
7.125%, 03/01/2014 | 800 | 784 |
First American Funds 2008 Annual Report 33
Schedule of Investments June 30, 2008, all dollars are rounded to thousands (000)
High Income Bond Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Chart Industries | ||||||||
9.125%, 10/15/2015 | $ | 1,950 | $ | 2,023 | ||||
Graham Packaging | ||||||||
9.875%, 10/15/2014 | 1,400 | 1,239 | ||||||
Hawker Beechcraft Acquisition | ||||||||
9.750%, 04/01/2017 6 | 1,200 | 1,200 | ||||||
Hutchinson Technology | ||||||||
3.250%, 01/15/2026 | 1,000 | 730 | ||||||
Masonite | ||||||||
11.000%, 04/06/2015 6 | 500 | 317 | ||||||
Nortek | ||||||||
8.500%, 09/01/2014 | 500 | 320 | ||||||
Ply Gem Industries | ||||||||
9.000%, 02/15/2012 6 | 900 | 529 | ||||||
11.750%, 06/15/2013 n | 500 | 459 | ||||||
Trimas | ||||||||
9.875%, 06/15/2012 | 1,000 | 882 | ||||||
USG | ||||||||
8.000%, 01/15/2018 | 1,275 | 1,116 | ||||||
10,352 | ||||||||
Communications – 7.1% | ||||||||
CCH II | ||||||||
10.250%, 09/15/2010 | 2,000 | 1,935 | ||||||
Citizens Communications | ||||||||
9.000%, 08/15/2031 | 1,000 | 900 | ||||||
Clear Channel Communications | ||||||||
6.250%, 03/15/2011 | 1,750 | 1,483 | ||||||
CSC Holdings | ||||||||
Series B | ||||||||
7.625%, 04/01/2011 | 1,000 | 980 | ||||||
Dex Media | ||||||||
8.000%, 11/15/2013 | 1,000 | 730 | ||||||
Dex Media West | ||||||||
Series B | ||||||||
8.500%, 08/15/2010 | 1,000 | 987 | ||||||
Fairpoint Communications | ||||||||
13.125%, 04/01/2018 n | 1,500 | 1,470 | ||||||
Idearc | ||||||||
8.000%, 11/15/2016 | 500 | 314 | ||||||
Intelsat Bermuda | ||||||||
11.250%, 06/15/2016 Æ | 1,000 | 1,013 | ||||||
Level 3 Financing | ||||||||
12.250%, 03/15/2013 | 500 | 503 | ||||||
Metropcs Wireless | ||||||||
9.250%, 11/01/2014 | 750 | 722 | ||||||
Nextel Communications | ||||||||
Series E | ||||||||
6.850%, 10/31/2013 | 2,000 | 1,690 | ||||||
Nextel Communications | ||||||||
Series F | ||||||||
5.950%, 03/15/2014 | 1,250 | 1,003 | ||||||
Quebecor Media | ||||||||
7.750%, 03/15/2016 Æ | 500 | 465 | ||||||
Univision Communications | ||||||||
7.850%, 07/15/2011 | 500 | 468 | ||||||
Vimpelcom | ||||||||
8.250%, 05/23/2016 n Æ | 2,000 | 1,958 | ||||||
Young Broadcasting | ||||||||
10.000%, 03/01/2011 | 500 | 280 | ||||||
16,901 | ||||||||
Consumer Cyclical – 18.5% | ||||||||
Affiliated Computer Services | ||||||||
4.700%, 06/01/2010 | 1,500 | 1,429 | ||||||
Blockbuster | ||||||||
9.000%, 09/01/2012 6 | $ | 500 | $ | 409 | ||||
Bon-Ton Department Stores | ||||||||
10.250%, 03/15/2014 6 | 750 | 492 | ||||||
Buffalo Thunder Development Authority | ||||||||
9.375%, 12/15/2014 n | 500 | 335 | ||||||
Burlington Coat Factory | ||||||||
11.125%, 04/15/2014 6 | 1,000 | 810 | ||||||
Claire’s Stores | ||||||||
9.250%, 06/01/2015 6 | 250 | 130 | ||||||
Denny’s | ||||||||
10.000%, 10/01/2012 6 | 1,650 | 1,600 | ||||||
Dollar General | ||||||||
10.625%, 07/15/2015 6 | 1,800 | 1,782 | ||||||
Fontainebleau Las Vegas | ||||||||
10.250%, 06/15/2015 n | 1,000 | 650 | ||||||
Ford Motor Credit | ||||||||
9.875%, 08/10/2011 | 3,000 | 2,528 | ||||||
7.800%, 06/01/2012 | 1,500 | 1,160 | ||||||
General Motors | ||||||||
8.250%, 07/15/2023 | 2,000 | 1,165 | ||||||
General Motors Acceptance | ||||||||
6.875%, 09/15/2011 | 1,800 | 1,293 | ||||||
General Nutrition Center | ||||||||
7.199%, 03/15/2014 Δ | 770 | 651 | ||||||
Goodyear Tire & Rubber | ||||||||
7.857%, 08/15/2011 | 1,150 | 1,143 | ||||||
Hanesbrands | ||||||||
6.508%, 12/15/2014 Δ | 1,500 | 1,395 | ||||||
Harrahs | ||||||||
10.750%, 02/01/2016 n | 1,500 | 1,245 | ||||||
Lear | ||||||||
Series B | ||||||||
8.500%, 12/01/2013 | 1,300 | 1,074 | ||||||
Levi Strauss & Co. | ||||||||
9.750%, 01/15/2015 | 750 | 754 | ||||||
Lippo Karwaci Finance | ||||||||
8.875%, 03/09/2011 Æ | 1,000 | 971 | ||||||
Marfrig Overseas | ||||||||
9.625%, 11/16/2016 n Æ | 1,000 | 960 | ||||||
MGM Mirage | ||||||||
8.375%, 02/01/2011 | 2,000 | 1,930 | ||||||
6.625%, 07/15/2015 | 1,000 | 802 | ||||||
Neiman Marcus Group | ||||||||
10.375%, 10/15/2015 6 | 1,200 | 1,200 | ||||||
NPC International | ||||||||
9.500%, 05/01/2014 | 500 | 432 | ||||||
Outback Steakhouse | ||||||||
10.000%, 06/15/2015 n | 750 | 486 | ||||||
Oxford Industries | ||||||||
8.875%, 06/01/2011 | 1,055 | 1,018 | ||||||
Pep Boys-Manny, Moe & Jack | ||||||||
7.500%, 12/15/2014 | 1,400 | 1,190 | ||||||
Realogy | ||||||||
10.500%, 04/15/2014 6 | 1,000 | 695 | ||||||
Rite Aid | ||||||||
9.375%, 12/15/2015 | 1,000 | 670 | ||||||
10.375%, 07/15/2016 « | 1,000 | 906 | ||||||
7.500%, 03/01/2017 | 1,550 | 1,252 | ||||||
Royal Caribbean Cruises | ||||||||
7.000%, 06/15/2013 Æ | 1,250 | 1,106 | ||||||
Sally Holdings | ||||||||
10.500%, 11/15/2016 6 | 2,050 | 1,953 | ||||||
Seminole Hard Rock Entertainment | ||||||||
5.276%, 03/15/2014 n Δ | 1,500 | 1,260 |
The accompanying notes are an integral part of the financial statements.
34 First American Funds 2008 Annual Report
High Income Bond Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Snoqualmie Entertainment | ||||||||
9.125%, 02/01/2015 n | $ | 500 | $ | 370 | ||||
Station Casinos | ||||||||
6.500%, 02/01/2014 6 | 1,000 | 575 | ||||||
Susser Holdings | ||||||||
10.625%, 12/15/2013 | 1,300 | 1,320 | ||||||
Tenneco Automotive | ||||||||
8.625%, 11/15/2014 | 1,000 | 882 | ||||||
Toll | ||||||||
8.250%, 12/01/2011 | 2,000 | 1,935 | ||||||
TRW Automotive | ||||||||
7.250%, 03/15/2017 n | 1,000 | 840 | ||||||
Warnaco | ||||||||
8.875%, 06/15/2013 | 1,250 | 1,300 | ||||||
44,098 | ||||||||
Consumer Non Cyclical – 11.5% | ||||||||
Albertson’s | ||||||||
8.700%, 05/01/2030 | 1,000 | 1,065 | ||||||
Cardinal Health | ||||||||
9.500%, 04/15/2015 | 750 | 671 | ||||||
Constellation Brands | ||||||||
7.250%, 05/15/2017 | 2,000 | 1,870 | ||||||
Del Monte | ||||||||
8.625%, 12/15/2012 | 1,500 | 1,522 | ||||||
Dole Foods | ||||||||
8.625%, 05/01/2009 | 1,000 | 952 | ||||||
8.750%, 07/15/2013 6 | 594 | 523 | ||||||
HCA | ||||||||
6.750%, 07/15/2013 | 4,150 | 3,642 | ||||||
Healthsouth | ||||||||
10.750%, 06/15/2016 6 | 1,000 | 1,075 | ||||||
LVB Acquisition | ||||||||
11.625%, 10/15/2017 n | 850 | 901 | ||||||
Medical Services | ||||||||
11.758%, 10/15/2011 Δ | 1,000 | 923 | ||||||
Pilgrim’s Pride | ||||||||
8.375%, 05/01/2017 6 | 1,750 | 1,286 | ||||||
Select Medical | ||||||||
11.259%, 09/15/2015 Δ 6 | 1,000 | 885 | ||||||
Smithfield Foods | ||||||||
7.000%, 08/01/2011 | 1,400 | 1,277 | ||||||
Class B | ||||||||
7.750%, 05/15/2013 | 1,500 | 1,324 | ||||||
Stater Brothers Holdings | ||||||||
7.750%, 04/15/2015 | 1,250 | 1,240 | ||||||
SUPERVALU | ||||||||
7.500%, 05/15/2012 | 1,750 | 1,768 | ||||||
Surgical Care Affiliates | ||||||||
8.875%, 07/15/2015 n | 1,000 | 875 | ||||||
Tenet Healthcare | ||||||||
7.375%, 02/01/2013 | 1,500 | 1,410 | ||||||
9.250%, 02/01/2015 6 | 1,750 | 1,715 | ||||||
Tyson Foods | ||||||||
6.600%, 04/01/2016 | 1,500 | 1,363 | ||||||
Vitro | ||||||||
9.125%, 02/01/2017 Æ | 1,500 | 1,189 | ||||||
27,476 | ||||||||
Electric – 7.7% | ||||||||
AES | ||||||||
8.000%, 06/01/2020 n | 1,000 | 965 | ||||||
AES Red Oak | ||||||||
Series B | ||||||||
9.200%, 11/30/2029 | 1,000 | 1,032 | ||||||
Aquila | ||||||||
14.875%, 07/01/2012 | $ | 2,200 | $ | 2,558 | ||||
Ava Capital Trust III | ||||||||
6.500%, 04/01/2034 | 3,185 | 2,971 | ||||||
CMS Energy | ||||||||
5.208%, 01/15/2013 Δ | 1,000 | 930 | ||||||
Dynegy Holdings | ||||||||
7.500%, 06/01/2015 | 2,000 | 1,845 | ||||||
7.750%, 06/01/2019 | 1,000 | 910 | ||||||
Intergen NV | ||||||||
9.000%, 06/30/2017 n Æ | 1,000 | 1,035 | ||||||
Reliant Energy | ||||||||
7.625%, 06/15/2014 | 1,000 | 975 | ||||||
Texas Competitive Electric Holdings | ||||||||
10.250%, 11/01/2015 n | 5,300 | 5,194 | ||||||
18,415 | ||||||||
Energy – 3.8% | ||||||||
Chaparral Energy | ||||||||
8.875%, 02/01/2017 | 1,250 | 1,084 | ||||||
Connacher Oil & Gas | ||||||||
10.250%, 12/15/2015 n Æ | 1,000 | 1,055 | ||||||
Lupatech Finance | ||||||||
9.875%, 07/10/2049 n 6 Æ | 2,000 | 1,945 | ||||||
Mariner Energy | ||||||||
8.000%, 05/15/2017 | 1,000 | 968 | ||||||
Ocean Rig ASA | ||||||||
6.700%, 04/04/2011 n Δ Æ | 1,000 | 1,000 | ||||||
Sandridge Energy | ||||||||
8.000%, 06/01/2018 n | 1,050 | 1,055 | ||||||
Tesoro | ||||||||
6.625%, 11/01/2015 | 1,000 | 923 | ||||||
W&T Offshore | ||||||||
8.250%, 06/15/2014 n | 1,000 | 965 | ||||||
8,995 | ||||||||
Finance – 2.4% | ||||||||
Axcan Intermediate Holdings | ||||||||
9.250%, 03/01/2015 n Æ | 1,300 | 1,310 | ||||||
Firekeepers | ||||||||
13.875%, 05/01/2015 n | 600 | 586 | ||||||
General Motors Acceptance | ||||||||
6.625%, 05/15/2012 | 3,000 | 2,058 | ||||||
Nuveen Investments | ||||||||
5.500%, 09/15/2015 | 2,050 | 1,466 | ||||||
Residential Capital | ||||||||
9.625%, 05/15/2015 n | 789 | 383 | ||||||
5,803 | ||||||||
Industrial Other – 2.3% | ||||||||
Allied Waste North America | ||||||||
6.125%, 02/15/2014 | 1,000 | 960 | ||||||
Aramark | ||||||||
8.500%, 02/01/2015 | 1,300 | 1,274 | ||||||
Crown Cork & Seal | ||||||||
7.375%, 12/15/2026 | 1,000 | 820 | ||||||
Neenah | ||||||||
9.500%, 01/01/2017 | 50 | 39 | ||||||
RBS Global & Rexnord | ||||||||
9.500%, 08/01/2014 | 1,000 | 965 | ||||||
Vought Aircraft | ||||||||
8.000%, 07/15/2011 | 1,500 | 1,395 | ||||||
5,453 | ||||||||
First American Funds 2008 Annual Report 35
Schedule of Investments June 30, 2008, all dollars are rounded to thousands (000)
High Income Bond Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Natural Gas – 4.1% | ||||||||
Copano Energy | ||||||||
8.125%, 03/01/2016 | $ | 1,000 | $ | 1,005 | ||||
7.750%, 06/01/2018 n | 750 | 731 | ||||||
El Paso Energy | ||||||||
Series MTN | ||||||||
7.800%, 08/01/2031 | 650 | 655 | ||||||
Enterprise Products | ||||||||
8.375%, 08/01/2066 Δ | 2,800 | 2,799 | ||||||
Semgroup | ||||||||
8.750%, 11/15/2015 n | 1,500 | 1,455 | ||||||
Southern Union | ||||||||
7.200%, 11/01/2066 Δ | 1,800 | 1,453 | ||||||
Targa Resources | ||||||||
8.500%, 11/01/2013 | 1,000 | 980 | ||||||
Transport De Gas Del Sur | ||||||||
7.875%, 05/14/2017 n Æ | 1,000 | 770 | ||||||
9,848 | ||||||||
Real Estate – 1.8% | ||||||||
American Real Estate | ||||||||
4.000%, 08/15/2013 n Δ ¥ | 1,250 | 1,055 | ||||||
Greentown China Holdings | ||||||||
9.000%, 11/08/2013 n Æ | 1,550 | 1,079 | ||||||
Parkson Retail Group | ||||||||
7.125%, 05/30/2012 Æ | 1,600 | 1,544 | ||||||
Shanghai Real Estate Group | ||||||||
8.625%, 04/24/2013 Æ | 1,000 | 652 | ||||||
4,330 | ||||||||
Technology – 4.3% | ||||||||
Advanced Medical Optics | ||||||||
7.500%, 05/01/2017 | 1,300 | 1,196 | ||||||
AMD | ||||||||
5.750%, 08/15/2012 | 1,000 | 736 | ||||||
Amkor Technologies | ||||||||
7.750%, 05/15/2013 | 1,000 | 927 | ||||||
First Data | ||||||||
9.875%, 09/24/2015 n | 1,185 | 1,031 | ||||||
Freescale Semiconductor | ||||||||
8.875%, 12/15/2014 | 1,350 | 1,097 | ||||||
9.125%, 12/15/2014 | 1,500 | 1,166 | ||||||
Magnachip Semiconductor | ||||||||
6.875%, 12/15/2011 6 Æ | 1,500 | 1,028 | ||||||
Open Solutions | ||||||||
9.750%, 02/01/2015 n | 1,000 | 815 | ||||||
Spansion | ||||||||
6.201%, 06/01/2013 n Δ | 1,000 | 730 | ||||||
11.250%, 01/15/2016 n Δ 6 | 750 | 465 | ||||||
Unisys | ||||||||
6.875%, 03/15/2010 | 1,000 | 955 | ||||||
10,146 | ||||||||
Transportation – 3.1% | ||||||||
American Airlines | ||||||||
Series 2001-1 | ||||||||
7.379%, 11/23/2017 | 1,330 | 851 | ||||||
BLT Finance BV | ||||||||
7.500%, 05/15/2014 n Æ | 1,500 | 979 | ||||||
Continental Airlines | ||||||||
Series C | ||||||||
7.339%, 04/19/2014 | 1,000 | 798 | ||||||
Delta Airlines | ||||||||
Series 2001-1 | ||||||||
7.711%, 09/18/2011 | 1,000 | 825 | ||||||
Series 2007-1 | ||||||||
8.954%, 08/10/2014 | 491 | 417 | ||||||
Hertz | ||||||||
10.500%, 01/01/2016 | $ | 1,250 | $ | 1,138 | ||||
Kansas City Southern | ||||||||
8.000%, 06/01/2015 | 1,000 | 1,010 | ||||||
Swift Transportation | ||||||||
12.500%, 05/15/2017 n 6 | 750 | 255 | ||||||
Ultrapetrol | ||||||||
9.000%, 11/24/2014 Æ | 1,175 | 1,110 | ||||||
7,383 | ||||||||
Total High Yield Corporate Bonds | ||||||||
(Cost $212,444) | 197,156 | |||||||
Investment Grade Corporate Bonds – 3.9% | ||||||||
Banking – 0.4% | ||||||||
Citigroup | ||||||||
8.400%, 04/29/2049 Δ | 1,000 | 950 | ||||||
Basic Industry – 0.4% | ||||||||
Arcelormittal | ||||||||
6.125%, 06/01/2018 n Æ | 1,000 | 977 | ||||||
Communications – 0.4% | ||||||||
Qwest | ||||||||
7.500%, 06/15/2023 | 1,000 | 890 | ||||||
Consumer Cyclical – 0.4% | ||||||||
CVS Caremark | ||||||||
6.302%, 06/01/2037 Δ | 1,000 | 858 | ||||||
Consumer Non Cyclical – 0.4% | ||||||||
Delhaize America | ||||||||
9.000%, 04/15/2031 | 856 | 1,008 | ||||||
Finance – 0.7% | ||||||||
SLM | ||||||||
Series MTN | ||||||||
5.515%, 07/26/2010 Δ | 1,750 | 1,553 | ||||||
Industrial Other – 0.4% | ||||||||
Wesfarmers | ||||||||
6.998%, 04/10/2013 n Æ | 1,000 | 1,033 | ||||||
Real Estate – 0.4% | ||||||||
iStar Financial – REIT | ||||||||
8.625%, 06/01/2013 | 1,000 | 915 | ||||||
Transportation – 0.4% | ||||||||
Con-way | ||||||||
7.250%, 01/15/2018 | 1,000 | 1,015 | ||||||
Total Investment Grade Corporate Bonds | ||||||||
(Cost $9,424) | 9,199 | |||||||
Preferred Stocks – 3.5% | ||||||||
Brokerage – 0.2% | ||||||||
Merrill Lynch | ||||||||
Series AAPL 6 | 24,000 | 557 | ||||||
Communications – 0.3% | ||||||||
US Cellular 6 | 32,000 | 745 | ||||||
Consumer Discretionary – 0.2% | ||||||||
M/I Homes | ||||||||
Series A 6 | 20,050 | 386 | ||||||
Energy – 0.4% | ||||||||
Constellation Energy Group | ||||||||
Series A 6 | 20,000 | 498 | ||||||
Nexen | ||||||||
Series B Æ | 20,000 | 481 | ||||||
979 | ||||||||
The accompanying notes are an integral part of the financial statements.
36 First American Funds 2008 Annual Report
High Income Bond Fund (continued) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Finance – 0.4% | ||||||||
Citigroup Capital XX | ||||||||
Series G 6 | 25,000 | $ | 594 | |||||
Wachovia | ||||||||
Series S 6 | 20,000 | 448 | ||||||
1,042 | ||||||||
Insurance – 0.8% | ||||||||
Aspen Insurance Holdings | 50,000 | 1,080 | ||||||
Endurance Specialty Holdings | ||||||||
Series A 6 Æ | 20,000 | 412 | ||||||
Renaissancere Holdings | ||||||||
Series D Æ | 18,740 | 359 | ||||||
1,851 | ||||||||
Real Estate – 1.0% | ||||||||
American Home Mortgage Investments – REIT | ||||||||
Series B ¥ ª | 10,000 | — | ||||||
Ashford Hospitality Trust – REIT | ||||||||
Series D | 20,200 | 358 | ||||||
Duke Realty – REIT | ||||||||
Series O 6 | 20,000 | 477 | ||||||
First Industrial Realty Trust – REIT | ||||||||
Series J | 15,000 | 315 | ||||||
Hospitality Properties Trust – REIT | ||||||||
Series C 6 | 20,000 | 338 | ||||||
iStar Financial – REIT | ||||||||
Series G 6 | 22,100 | 356 | ||||||
National Retail Properties – REIT | ||||||||
Series C | 17,600 | 390 | ||||||
NorthStar Realty Finance – REIT | ||||||||
Series A 6 | 16,000 | 224 | ||||||
2,458 | ||||||||
Sovereign – 0.1% | ||||||||
Fannie Mae | ||||||||
Series 08-1 | 5,000 | 191 | ||||||
Transportation – 0.1% | ||||||||
Delta Air Contingent Value = | 8,000,000 | 112 | ||||||
Total Preferred Stocks | ||||||||
(Cost $10,933) | 8,321 | |||||||
Closed-End Funds – 3.1% | ||||||||
Aberdeen Asia-Pacific Income Fund 6 | 100,000 | 602 | ||||||
Advent Claymore Global Convertible Securities & Income Fund | 30,000 | 416 | ||||||
Alpine Global Premier Properties Fund | 10,000 | 108 | ||||||
BlackRock Global Energy and Resources Trust | 31,000 | 1,153 | ||||||
Eaton Vance Floating-Rate Income Trust | 63,000 | 914 | ||||||
MFS Multimarket Income Trust | 60,000 | 342 | ||||||
Nuveen Equity Premium Opportunity Fund | 47,000 | 721 | ||||||
Nuveen Multi-Strategy Income and Growth Fund | 46,000 | 443 | ||||||
Nuveen Multi-Strategy Income and Growth Fund 2 6 | 56,000 | 553 | ||||||
Pioneer Diversified High Income Trust 6 | 31,000 | 600 | ||||||
Pioneer Floating Rate Trust | 116,000 | 1,597 | ||||||
Total Closed-End Funds | ||||||||
(Cost $8,216) | 7,449 | |||||||
Common Stocks – 1.3% | ||||||||
Communications – 0.0% | ||||||||
Adelphia Recovery Trust = | 958,406 | 48 | ||||||
Viatel Holding Bermuda = + | 1 | — | ||||||
48 | ||||||||
Consumer Discretionary – 0.0% | ||||||||
Time Warner Cable, Class A 6 = | 20 | — | ||||||
Energy – 0.5% | ||||||||
Pengrowth Energy Trust 6 Æ | 9,000 | $ | 181 | |||||
Penn West Energy Trust Æ | 13,000 | 440 | ||||||
Peyto Energy Trust 6 Æ ¬ | 23,000 | 454 | ||||||
Provident Energy Trust Æ | 18,900 | 216 | ||||||
1,291 | ||||||||
Materials – 0.0% | ||||||||
Mechel – ADR Æ | 1,700 | 84 | ||||||
Real Estate – 0.7% | ||||||||
Anworth Mortgage Asset – REIT 6 | 40,000 | 260 | ||||||
Equity Residential Properties Trust – REIT 6 | 5,000 | 191 | ||||||
Essex Property Trust – REIT 6 | 3,300 | 352 | ||||||
Hatteras Financial – REIT 6 | 10,000 | 230 | ||||||
MFA Mortgage Investments – REIT | 30,000 | 196 | ||||||
Regency Centers – REIT 6 | 6,000 | 355 | ||||||
1,584 | ||||||||
Utility – 0.1% | ||||||||
Enersis – ADR 6 Æ | 12,000 | 187 | ||||||
Total Common Stocks | ||||||||
(Cost $3,311) | 3,194 | |||||||
Convertible Securities – 1.2% | ||||||||
Consumer Discretionary – 0.1% | ||||||||
Ford Motor Capital Trust II 6 | 10,000 | 276 | ||||||
Consumer Non Cyclical – 0.2% | ||||||||
Bunge Limited Æ | 4,000 | 525 | ||||||
Electric – 0.2% | ||||||||
Entergy | 6,000 | 424 | ||||||
Energy – 0.5% | ||||||||
Headwaters | ||||||||
2.875%, 06/01/2016 | $ | 1,500 | 1,191 | |||||
Finance – 0.2% | ||||||||
CIT Group | ||||||||
Series C | 13,000 | 531 | ||||||
Total Convertible Securities | ||||||||
(Cost $2,936) | 2,947 | |||||||
Asset-Backed Securities – 0.8% | ||||||||
Manufactured Housing – 0.0% | ||||||||
Green Tree Financial | ||||||||
Series 1998-1, Class A4 | ||||||||
6.040%, 11/01/2029 ¥ | $ | 7 | 7 | |||||
Other – 0.8% | ||||||||
Bear Stearns Commercial Mortgage Securities | ||||||||
Series 2007-PW18, Class AJ | ||||||||
6.210%, 06/11/2050 Δ | 460 | 378 | ||||||
Exum | ||||||||
Series 2007-1A, Class C | ||||||||
8.310%, 03/22/2014 n Δ Æ ¥ | 1,000 | 770 | ||||||
Series 2007-2A, Class C | ||||||||
8.384%, 06/22/2014 n Δ Æ ¥ | 1,000 | 785 | ||||||
1,933 | ||||||||
Total Asset-Backed Securities | ||||||||
(Cost $2,339) | 1,940 | |||||||
Short-Term Investments – 2.6% | ||||||||
Money Market Fund – 2.4% | ||||||||
First American Prime Obligations Fund, Class Z Å | 5,593,247 | 5,593 | ||||||
First American Funds 2008 Annual Report 37
Schedule of Investments June 30, 2008, all dollars are rounded to thousands (000)
High Income Bond Fund (continued) | ||||||||
DESCRIPTION | PAR/SHARES | VALUE | ||||||
U.S. Treasury Obligation – 0.2% | ||||||||
U.S. Treasury Bill | ||||||||
1.049%, 07/24/2008 o | $ | 450 | $ | 450 | ||||
Total Short-Term Investments | ||||||||
(Cost $6,043) | 6,043 | |||||||
Investment Purchased with Proceeds from Securities Lending – 12.3% | ||||||||
Mount Vernon Securities Lending Prime Portfolio † | ||||||||
(Cost $29,394) | 29,394,476 | 29,394 | ||||||
Total Investments – 111.3% | ||||||||
(Cost $285,040) | 265,643 | |||||||
Other Assets and Liabilities, Net – (11.3)% | (26,888 | ) | ||||||
Total Net Assets – 100.0% | $ | 238,755 | ||||||
n | Security purchased within the terms of a private placement memorandum, exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other “qualified institutional buyers.” As of June 30, 2008, the value of these investments was $53,208 or 22.3% of total net assets. See note 2 in Notes to Financial Statements. | |
Δ | Variable Rate Security – The rate shown is the rate in effect as of June 30, 2008. | |
6 | This security or a portion of this security is out on loan at June 30, 2008. Total loaned securities had a value of $28,567 at June 30, 2008. See note 2 in Notes to Financial Statements. | |
Æ | Represents a foreign high yield (non-investment grade) U.S. dollar denominated security. On June 30, 2008, the value of these investments was $42,387 which represents 17.8% of total net assets. | |
« | Security purchased on a when-issued basis. On June 30, 2008, the total cost of investments on a when-issued basis was $2,656 or 1.1% of total net assets. See note 2 in Notes to Financial Statements. | |
ª | Security in default at June 30, 2008. | |
= | Non-income producing security. | |
¬ | Foreign security values are stated in U.S. dollars. For debt securities, principal amounts are denominated in U.S. dollars unless otherwise noted. | |
¥ | Security considered illiquid. As of June 30, 2008, the value of these investments was $2,617 or 1.1% of total net assets. See note 2 in Notes to Financial Statements. | |
+ | Security is fair valued. As of June 30, 2008, the fair value of this investment was $0 or 0.0% of total net assets. See note 2 in Notes to Financial Statements. | |
Å | Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor for this fund. See note 3 in Notes to Financial Statements. | |
o | Security has been deposited as initial margin on open futures contracts and/or swap contracts. Yield shown is effective yield as of June 30, 2008. See note 2 in Notes to Financial Statements. | |
† | The fund may loan securities representing up to one third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks, or other institutional borrowers for 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 |
High Income Bond Fund (concluded)
Schedule of Open Futures Contracts
Number of | ||||||||||||||
Contracts | Notional | |||||||||||||
Purchased | Contract | Settlement | Unrealized | |||||||||||
Description | (Sold) | Value | Month | Depreciation | ||||||||||
U.S. Treasury 2 Year Note Futures | 20 | $ | 4,224 | September 2008 | $ | (5 | ) | |||||||
U.S. Treasury 5 Year Note Futures | 89 | 9,839 | September 2008 | (66 | ) | |||||||||
U.S. Treasury 10 Year Note Futures | (35 | ) | (3,987 | ) | September 2008 | (54 | ) | |||||||
U.S. Treasury Long Bond Futures | 15 | 1,734 | September 2008 | (4 | ) | |||||||||
$ | (129 | ) | ||||||||||||
Credit Default Swap Agreements
Pay/ | Unrealized | |||||||||||||||||||||
Reference | Buy/Sell | Receive | Expiration | Notional | Appreciation | |||||||||||||||||
Counterparty | Entity | Protection | Fixed Rate | Date | Amount | (Depreciation) | ||||||||||||||||
JPMorgan | Deutsche Bank AG | Buy | 0.525% | 09/20/2012 | $ | 400 | $ | 6 | ||||||||||||||
JPMorgan | Dow Jones iTraxx Asia ex-Japan Index | Sell | 6.500% | 06/20/2013 | 4,500 | 125 | ||||||||||||||||
UBS | Dow Jones CDX HVOL10 Index | Buy | 3.500% | 06/20/2013 | 5,000 | 61 | ||||||||||||||||
UBS | Korea Government International Bond | Buy | 1.050% | 09/20/2015 | 1,200 | 6 | ||||||||||||||||
UBS | Reliance Industries Limited | Sell | 2.192% | 09/20/2013 | 2,000 | (11 | ) | |||||||||||||||
UBS | Turkey Government International Bond | Buy | 1.480% | 07/20/2012 | 1,200 | 55 | ||||||||||||||||
$ | 242 | |||||||||||||||||||||
The accompanying notes are an integral part of the financial statements.
38 First American Funds 2008 Annual Report
Inflation Protected Securities Fund | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
U.S. Government & Agency Securities – 86.6% | ||||||||
Inflation Protected U.S. Treasuries ◄ – 86.6% | ||||||||
U.S. Treasury Bonds | ||||||||
2.375%, 01/15/2017 | $ | 9,005 | $ | 9,747 | ||||
2.375%, 01/15/2025 | 20,396 | 21,390 | ||||||
2.000%, 01/15/2026 6 | 7,386 | 7,323 | ||||||
2.375%, 01/15/2027 6 | 4,793 | 5,025 | ||||||
3.625%, 04/15/2028 6 | 14,674 | 18,311 | ||||||
3.875%, 04/15/2029 | 16,495 | 21,434 | ||||||
U.S. Treasury Notes | ||||||||
0.875%, 04/15/2010 6 | 18,865 | 19,191 | ||||||
3.500%, 01/15/2011 | 9,595 | 10,445 | ||||||
2.375%, 04/15/2011 | 20,560 | 21,785 | ||||||
2.000%, 04/15/2012 6 | 3,175 | 3,350 | ||||||
3.000%, 07/15/2012 6 | 13,439 | 14,758 | ||||||
0.625%, 04/15/2013 | 762 | 760 | ||||||
1.875%, 07/15/2013 6 | 20,465 | 21,635 | ||||||
2.000%, 01/15/2014 6 | 22,039 | 23,397 | ||||||
2.000%, 07/15/2014 | 2,849 | 3,025 | ||||||
1.625%, 01/15/2015 | 10,826 | 11,181 | ||||||
1.875%, 07/15/2015 6 | 7,746 | 8,111 | ||||||
2.000%, 01/15/2016 6 | 5,519 | 5,813 | ||||||
2.500%, 07/15/2016 | 7,168 | 7,832 | ||||||
2.625%, 07/15/2017 | 6,995 | 7,726 | ||||||
1.625%, 01/15/2018 6 | 3,383 | 3,437 | ||||||
Total U.S. Government & Agency Securities | ||||||||
(Cost $239,090) | 245,676 | |||||||
Corporate Bonds – 4.0% | ||||||||
Basic Industry – 1.0% | ||||||||
Evraz Group | ||||||||
8.250%, 11/10/2015 n | 500 | 489 | ||||||
FMG Finance | ||||||||
10.000%, 09/01/2013 n | 500 | 549 | ||||||
Georgia-Pacific | ||||||||
7.125%, 01/15/2017 6 n | 150 | 141 | ||||||
Griffin Coal Mining | ||||||||
9.500%, 12/01/2016 n | 500 | 397 | ||||||
Southern Copper | ||||||||
7.500%, 07/27/2035 | 950 | 930 | ||||||
Vedanta Resources | ||||||||
9.500%, 07/18/2018 n « | 435 | 433 | ||||||
2,939 | ||||||||
Brokerage – 0.7% | ||||||||
Merrill Lynch | ||||||||
Series CPI | ||||||||
5.141%, 03/02/2009 Δ | 1,850 | 1,826 | ||||||
Capital Goods – 0.0% | ||||||||
USG | ||||||||
8.000%, 01/15/2018 | 125 | 109 | ||||||
Consumer Cyclical – 0.1% | ||||||||
MGM Mirage | ||||||||
6.625%, 07/15/2015 | 220 | 177 | ||||||
Rite Aid | ||||||||
7.500%, 03/01/2017 | 145 | 117 | ||||||
294 | ||||||||
Consumer Non Cyclical – 0.2% | ||||||||
Constellation Brands | ||||||||
7.250%, 05/15/2017 | 200 | 187 | ||||||
HCA | ||||||||
9.250%, 11/15/2016 | 100 | 103 | ||||||
Smithfield Foods | ||||||||
7.000%, 08/01/2011 | 275 | 251 | ||||||
541 | ||||||||
Electric – 0.1% | ||||||||
Energy Future Holdings | ||||||||
10.875%, 11/01/2017 n | 250 | 253 | ||||||
Insurance – 1.3% | ||||||||
Allstate Life Global Funding Trust | ||||||||
Series MTN | ||||||||
5.030%, 03/01/2010 Δ | 900 | 911 | ||||||
Pacific Life Global Funding | ||||||||
6.160%, 02/06/2016 n Δ | 1,000 | 1,011 | ||||||
Principal Life | ||||||||
Series MTN | ||||||||
5.380%, 03/01/2012 Δ | 900 | 892 | ||||||
Protective Life Secured Trust | ||||||||
5.870%, 07/10/2012 Δ | 1,000 | 995 | ||||||
3,809 | ||||||||
Sovereign – 0.5% | ||||||||
Australian Government | ||||||||
5.250%, 03/15/2019 ¬ | AUD | 1,500 | 1,305 | |||||
Technology – 0.0% | ||||||||
NXP BV/NXP Funding | ||||||||
9.500%, 10/15/2015 6 | $ | 115 | 100 | |||||
Transportation – 0.1% | ||||||||
Hertz | ||||||||
8.875%, 01/01/2014 | 195 | 178 | ||||||
Total Corporate Bonds | ||||||||
(Cost $11,377) | 11,354 | |||||||
Asset-Backed Securities – 3.9% | ||||||||
Credit Cards – 0.3% | ||||||||
Discover Card Master Trust | ||||||||
Series 2007-C1, Class C1 | ||||||||
2.791%, 01/15/2013 Δ | 500 | 456 | ||||||
Washington Mutual Master Note Trust | ||||||||
Series 2007-C1, Class C1 | ||||||||
2.871%, 05/15/2014 n Δ | 625 | 481 | ||||||
937 | ||||||||
Other – 3.6% | ||||||||
Global Signal Trust | ||||||||
Series 2006-1, Class C | ||||||||
5.707%, 02/15/2036 n | 1,330 | 1,275 | ||||||
GMAC Commercial Mortgage Securities | ||||||||
Series 2003-C3, Class A2 | ||||||||
4.223%, 04/10/2040 | 2,000 | 1,992 | ||||||
Greenwich Capital Commercial Funding | ||||||||
Series 2007-GG11, Class A4 | ||||||||
5.736%, 12/10/2049 | 2,905 | 2,746 | ||||||
Series 2007-GG11, Class AJ | ||||||||
6.207%, 12/10/2049 Δ | 2,000 | 1,621 | ||||||
GS Mortgage Securities II | ||||||||
Series 2007-GG10, Class A4 | ||||||||
5.993%, 08/10/2045 Δ | 1,010 | 966 | ||||||
Wachovia Bank Commercial Mortgage Trust | ||||||||
Series 2007-C34, Class AJ | ||||||||
6.146%, 05/15/2046 Δ | 1,000 | 806 |
First American Funds 2008 Annual Report 39
Schedule of Investments June 30, 2008, all dollars are rounded to thousands (000)
Inflation Protected Securities Fund (continued) | ||||||||
DESCRIPTION | PAR/SHARES | VALUE | ||||||
Series 2007-C33, Class AJ | ||||||||
6.100%, 02/15/2051 Δ | $ | 1,000 | $ | 806 | ||||
10,212 | ||||||||
Total Asset-Backed Securities | ||||||||
(Cost $12,165) | 11,149 | |||||||
Collateralized Mortgage Obligation – Private Mortgage-Backed Security – 0.8% | ||||||||
Fixed Rate – 0.8% | ||||||||
Wells Fargo Mortgage Backed Securities Trust | ||||||||
Series 2007-13, Class A8 | ||||||||
6.000%, 09/25/2037 | ||||||||
(Cost $2,407) | 2,455 | 2,329 | ||||||
Municipal Bond – 0.3% | ||||||||
Sullivan County Health, Education & Housing Facilities, Hospital Revenue, Wellmont Health, Class B | ||||||||
6.950%, 09/01/2016 | ||||||||
(Cost $925) | 925 | 928 | ||||||
U.S. Government Agency Mortgage-Backed Security – 0.3% | ||||||||
Adjustable Rate Δ – 0.3% | ||||||||
Federal National Mortgage Association | ||||||||
5.121%, 02/17/2009 6 | ||||||||
(Cost $895) | 900 | 910 | ||||||
Preferred Stocks – 0.3% | ||||||||
Brokerage – 0.2% | ||||||||
Merrill Lynch | ||||||||
Series AAPL 6 | 16,000 | 371 | ||||||
Sovereign – 0.1% | ||||||||
Fannie Mae | ||||||||
Series S 6 | 16,000 | 367 | ||||||
Total Preferred Stocks | ||||||||
(Cost $800) | 738 | |||||||
Convertible Securities – 0.3% | ||||||||
Basic Industry – 0.1% | ||||||||
Freeport-McMoran Copper & Gold 6 | 1,500 | 251 | ||||||
Consumer Non Cyclical – 0.1% | ||||||||
Bunge Limited | 1,900 | 250 | ||||||
Energy – 0.1% | ||||||||
Headwaters | ||||||||
2.875%, 06/01/2016 | $ | 280 | 222 | |||||
Total Convertible Securities | ||||||||
(Cost $699) | 723 | |||||||
Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Security – 0.1% | ||||||||
Fixed Rate – 0.1% | ||||||||
Federal Home Loan Mortgage Corporation | ||||||||
Series 2763, Class TA | ||||||||
4.000%, 03/15/2011 | ||||||||
(Cost $250) | 249 | 255 | ||||||
Common Stock – 0.1% | ||||||||
Energy – 0.1% | ||||||||
Penn West Energy Trust | ||||||||
(Cost $127) | 4,101 | 139 | ||||||
Short-Term Investments – 4.0% | ||||||||
Money Market Fund – 3.7% | ||||||||
First American Prime Obligations Fund, Class Z Å | 10,367,739 | $ | 10,368 | |||||
U.S. Treasury Obligations – 0.3% | ||||||||
U.S. Treasury Bills o | ||||||||
1.106%, 07/24/2008 | $ | 670 | 670 | |||||
1.805%, 08/14/2008 | 270 | 269 | ||||||
939 | ||||||||
Total Short-Term Investments | ||||||||
(Cost $11,307) | 11,307 | |||||||
Investment Purchased with Proceeds from Securities Lending – 47.2% | ||||||||
Mount Vernon Securites Lending Prime Portfolio † | ||||||||
(Cost $133,973) | 133,973,137 | 133,973 | ||||||
Total Investments – 147.9% | ||||||||
(Cost $414,015) | 419,481 | |||||||
Other Assets and Liabilities, Net – (47.9)% | (135,898 | ) | ||||||
Total Net Assets – 100.0% | $ | 283,583 | ||||||
◄ | U.S. Treasury inflation-protection securities (TIPS) are securities in which the principal amount is adjusted for inflation and the semiannual interest payments equal a fixed percentage of the inflation-adjusted principal amount. | |
6 | This security or a portion of this security is out on loan at June 30, 2008. Total loaned securities had a value of $131,709 at June 30, 2008. See note 2 in Notes to Financial Statements. | |
n | Security purchased within the terms of a private placement memorandum, exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other “qualified institutional buyers.” As of June 30, 2008, the value of these investments was $5,029 or 1.8% of total net assets. See note 2 in Notes to Financial Statements. | |
« | Security purchased on a when-issued basis. On June 30, 2008, the total cost of investments purchased on a when-issued basis was $435 or 0.2% of total net assets. See note 2 in Notes to Financial Statements. | |
Δ | Variable Rate Security – The rate shown is the rate in effect as of June 30, 2008. | |
¬ | Foreign security values are stated in U.S. dollars. For debt securities, principal amounts are denominated in U.S. dollars unless otherwise noted. | |
Å | Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor for this fund. See note 3 in Notes to Financial Statements. | |
o | Security has been deposited as initial margin on open futures contracts and/or swap agreements. Yield shown is the effective yield as of June 30, 2008. See note 2 in Notes to Financial Statements. | |
† | The fund may loan securities representing up to one third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks, or other institutional borrowers of securities. The fund maintains collateral equal to at least 100% of the value of the securities loaned. The adequacy of the collateral is monitored on a daily basis. The cash collateral received by the fund is invested in this affiliated money market fund. See note 2 in Notes to Financial Statements. |
The accompanying notes are an integral part of the financial statements.
40 First American Funds 2008 Annual Report
Inflation Protected Securities Fund (concluded)
Schedule of Open Futures Contracts
Number of | ||||||||||||||
Contracts | Notional | Unrealized | ||||||||||||
Purchased/ | Contract | Settlement | Appreciation | |||||||||||
Description | (Sold) | Value | Month | (Depreciation) | ||||||||||
Australian Dollar Currency Futures | 14 | $ | 1,329 | September 2008 | $ | 18 | ||||||||
Canadian Dollar Currency Futures | 22 | 2,160 | September 2008 | 4 | ||||||||||
Japanese Yen Currency Futures | (23 | ) | (2,723 | ) | September 2008 | (46 | ) | |||||||
Sterling 90 Day Futures | 54 | 50,451 | March 2009 | (32 | ) | |||||||||
U.S. Treasury 2 Year Note Futures | 149 | 31,469 | September 2008 | 190 | ||||||||||
U.S. Treasury 5 Year Note Futures | 52 | 5,749 | September 2008 | 12 | ||||||||||
U.S. Treasury 10 Year Note Futures | (25 | ) | (2,848 | ) | September 2008 | (8 | ) | |||||||
U.S. Treasury Long Bond Futures | 21 | 2,427 | September 2008 | 49 | ||||||||||
$ | 187 | |||||||||||||
Credit Default Swap Agreements
Pay/ | Unrealized | |||||||||||||||||||||
Reference | Buy/Sell | Receive | Expiration | Notional | Appreciation | |||||||||||||||||
Counterparty | Entity | Protection | Fixed Rate | Date | Amount | (Depreciation) | ||||||||||||||||
Bank of America | Dow Jones CDX | |||||||||||||||||||||
HY10 Index | Sell | 5.000% | 06/20/2013 | $ | 1,400 | $ | (31 | ) | ||||||||||||||
JPMorgan | Dow Jones | |||||||||||||||||||||
iTraxx Asia ex-Japan Index | Sell | 6.500% | 06/20/2013 | 1,700 | 47 | |||||||||||||||||
UBS | Dow Jones CDX | |||||||||||||||||||||
HY10 Index | Sell | 5.000% | 06/20/2013 | 4,200 | (69 | ) | ||||||||||||||||
UBS | Dow Jones | |||||||||||||||||||||
iTraxx Asia ex-Japan Index | Sell | 6.500% | 06/20/2013 | 1,000 | 16 | |||||||||||||||||
UBS | Korea Government | |||||||||||||||||||||
International Bond | Buy | 1.050% | 09/20/2015 | 1,200 | 6 | |||||||||||||||||
$ | (31 | ) | ||||||||||||||||||||
Interest Rate Swap Agreements
Floating | Pay/ Receive | Unrealized | ||||||||||||||||||||
Rate | Floating | Fixed | Expiration | Notional | Appreciation | |||||||||||||||||
Counterparty | Index | Rate | Rate | Date | Amount | (Depreciation) | ||||||||||||||||
Citigroup | 3-Month LIBOR | Pay | 4.625% | 09/20/2009 | $ | 13,000 | $ | 217 | ||||||||||||||
Citigroup | 3-Month LIBOR | Receive | 5.110% | 09/20/2017 | 1,000 | (36 | ) | |||||||||||||||
JPMorgan | 3-Month LIBOR | Pay | 3.958% | 06/17/2010 | 7,000 | 54 | ||||||||||||||||
UBS | 3-Month LIBOR | Pay | 4.568% | 10/02/2009 | 12,900 | 210 | ||||||||||||||||
UBS | 3-Month LIBOR | Pay | 2.743% | 04/17/2010 | 7,000 | (88 | ) | |||||||||||||||
UBS | 3-Month LIBOR | Pay | 3.418% | 05/30/2010 | 7,000 | (11 | ) | |||||||||||||||
UBS | 3-Month LIBOR | Receive | 5.153% | 10/02/2017 | 3,100 | (121 | ) | |||||||||||||||
UBS | 3-Month LIBOR | Receive | 5.042% | 11/13/2017 | 3,000 | (91 | ) | |||||||||||||||
UBS | 3-Month LIBOR | Pay | 2.795% | 04/18/2010 | 7,000 | (89 | ) | |||||||||||||||
$ | 45 | |||||||||||||||||||||
Inflation Protected Securities Fund (concluded)
Intermediate Government Bond Fund | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
U.S. Government & Agency Securities – 97.1% | ||||||||
U.S. Agency Debentures – 63.7% | ||||||||
Federal Farm Credit Bank | ||||||||
4.125%, 07/17/2009 | $ | 1,100 | $ | 1,114 | ||||
4.500%, 10/05/2009 | 1,000 | 1,020 | ||||||
4.125%, 11/13/2009 | 1,560 | 1,580 | ||||||
4.750%, 05/07/2010 | 1,500 | 1,543 | ||||||
2.250%, 07/01/2010 | 1,365 | 1,339 | ||||||
5.250%, 09/13/2010 | 1,000 | 1,039 | ||||||
3.750%, 12/06/2010 | 1,575 | 1,587 | ||||||
5.750%, 01/18/2011 | 1,800 | 1,902 | ||||||
4.875%, 02/18/2011 | 1,600 | 1,656 | ||||||
3.000%, 03/03/2011 | 1,260 | 1,244 | ||||||
2.625%, 04/21/2011 | 1,500 | 1,464 | ||||||
3.875%, 08/25/2011 | 1,500 | 1,509 | ||||||
4.500%, 10/17/2012 | 1,565 | 1,595 | ||||||
Federal Home Loan Bank | ||||||||
4.875%, 03/12/2010 | 870 | 895 | ||||||
2.750%, 06/18/2010 | 2,200 | 2,180 | ||||||
5.125%, 09/10/2010 | 900 | 934 | ||||||
4.375%, 09/17/2010 | 710 | 726 | ||||||
3.625%, 12/17/2010 | 885 | 889 | ||||||
4.250%, 06/10/2011 | 1,500 | 1,528 | ||||||
5.375%, 08/19/2011 | 1,355 | 1,425 | ||||||
5.250%, 10/14/2011 | 745 | 750 | ||||||
4.875%, 11/18/2011 | 2,135 | 2,206 | ||||||
4.625%, 10/10/2012 | 910 | 932 | ||||||
5.660%, 10/30/2013 | 755 | 761 | ||||||
5.375%, 05/18/2016 | 495 | 521 | ||||||
5.000%, 11/17/2017 | 835 | 851 | ||||||
Tennessee Valley Authority | ||||||||
5.375%, 11/13/2008 | 1,955 | 1,974 | ||||||
2.980%, 01/15/2010 ¤ | 1,135 | 1,086 | ||||||
5.625%, 01/18/2011 | 2,000 | 2,102 | ||||||
6.790%, 05/23/2012 | 3,175 | 3,499 | ||||||
6.000%, 03/15/2013 | 2,725 | 2,929 | ||||||
44,780 | ||||||||
U.S. Treasuries – 33.4% | ||||||||
U.S. Treasury Bonds | ||||||||
11.750%, 11/15/2014 | 1,575 | 1,767 | ||||||
8.750%, 05/15/2017 | 635 | 856 | ||||||
9.125%, 05/15/2018 | 405 | 568 | ||||||
9.000%, 11/15/2018 | 1,125 | 1,576 | ||||||
8.875%, 02/15/2019 | 370 | 516 | ||||||
8.125%, 08/15/2019 | 865 | 1,155 | ||||||
2.375%, 01/15/2025 ◄ | 348 | 364 | ||||||
U.S. Treasury Notes | ||||||||
4.250%, 09/30/2012 | 125 | 130 | ||||||
3.375%, 11/30/2012 | 3,085 | 3,099 | ||||||
3.625%, 12/31/2012 | 2,870 | 2,914 | ||||||
1.875%, 07/15/2013 ◄ | 1,491 | 1,576 | ||||||
4.250%, 08/15/2013 | 555 | 579 | ||||||
4.500%, 05/15/2017 | 2,810 | 2,927 | ||||||
4.250%, 11/15/2017 | 3,690 | 3,769 | ||||||
3.500%, 02/15/2018 | 1,730 | 1,665 | ||||||
23,461 | ||||||||
Total U.S. Government & Agency Securities | ||||||||
(Cost $68,398) | 68,241 | |||||||
First American Funds 2008 Annual Report 41
Schedule of Investments June 30, 2008, all dollars are rounded to thousands (000)
Intermediate Government Bond Fund (concluded) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Short-Term Investment – 2.8% | ||||||||
First American U.S. Treasury Money Market Fund, Class Z Å | ||||||||
(Cost $1,963) | 1,962,833 | $ | 1,963 | |||||
Total Investments – 99.9% | ||||||||
(Cost $70,361) | 70,204 | |||||||
Other Assets and Liabilities, Net – 0.1% | 84 | |||||||
Total Net Assets – 100.0% | $ | 70,288 | ||||||
¤ | Zero coupon bonds make no periodic interest payments, but are issued at deep discounts from par value. The rate shown is the effective yield as of June 30, 2008. | |
◄ | U.S. Treasury inflation-protection securities (TIPS) are securities in which the principal amount is adjusted for inflation and the semiannual interest payments equal a fixed percentage of the inflation-adjusted principal amount. | |
Å | Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor for this fund. See note 3 in Notes to Financial Statements. |
Intermediate Government Bond Fund (concluded)
Intermediate Term Bond Fund | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Corporate Bonds – 46.7% | ||||||||
Banking – 6.1% | ||||||||
Bank of America | ||||||||
5.750%, 12/01/2017 | $ | 4,015 | $ | 3,770 | ||||
8.000%, 12/29/2049 | 2,970 | 2,782 | ||||||
Citigroup | ||||||||
6.125%, 11/21/2017 | 5,485 | 5,264 | ||||||
8.400%, 04/29/2049 Δ | 7,810 | 7,424 | ||||||
Citigroup Capital XXI | ||||||||
8.300%, 12/21/2057 Δ | 1,475 | 1,393 | ||||||
Deutsche Bank AG London | ||||||||
4.875%, 05/20/2013 | 2,660 | 2,617 | ||||||
Fifth Third Bancorp | ||||||||
6.250%, 05/01/2013 | 3,575 | 3,272 | ||||||
JPMorgan Chase | ||||||||
5.150%, 10/01/2015 | 3,290 | 3,168 | ||||||
National City Preferred Capital Trust I | ||||||||
12.000%, 12/29/2049 Δ | 1,560 | 1,488 | ||||||
North Fork Bancorp | ||||||||
5.875%, 08/15/2012 | 3,130 | 2,976 | ||||||
UBS Preferred Funding Trust V | ||||||||
6.243%, 05/29/2049 Δ | 1,170 | 1,025 | ||||||
Wachovia | ||||||||
5.750%, 02/01/2018 | 3,155 | 2,875 | ||||||
7.980%, 02/28/2049 Δ | 4,745 | 4,358 | ||||||
Wells Fargo | ||||||||
4.375%, 01/31/2013 | 4,050 | 3,922 | ||||||
5.625%, 12/11/2017 | 2,385 | 2,308 | ||||||
48,642 | ||||||||
Basic Industry – 2.8% | ||||||||
Arcelormittal | ||||||||
5.375%, 06/01/2013 n | 7,835 | 7,715 | ||||||
Celulosa Arauco Constitucion | ||||||||
5.625%, 04/20/2015 | 2,000 | 1,941 | ||||||
E.I. Du Pont de Nemours | ||||||||
5.000%, 01/15/2013 6 | 3,315 | 3,343 | ||||||
Rio Tinto Financial | ||||||||
5.875%, 07/15/2013 | 3,300 | 3,318 | ||||||
Teck Cominco | ||||||||
5.375%, 10/01/2015 6 | 2,810 | 2,664 | ||||||
U.S. Steel | ||||||||
7.000%, 02/01/2018 | 1,750 | 1,746 | ||||||
Vale Overseas | ||||||||
6.250%, 01/11/2016 | 1,525 | 1,490 | ||||||
22,217 | ||||||||
Brokerage – 4.6% | ||||||||
Goldman Sachs Capital II | ||||||||
5.793%, 12/29/2049 Δ | 1,165 | 810 | ||||||
Goldman Sachs Group | ||||||||
6.150%, 04/01/2018 | 10,000 | 9,702 | ||||||
Lehman Brothers Holdings | ||||||||
6.500%, 07/19/2017 | 2,215 | 2,049 | ||||||
Series MTN | ||||||||
5.625%, 01/24/2013 | 3,220 | 3,048 | ||||||
Merrill Lynch | ||||||||
5.450%, 02/05/2013 | 2,950 | 2,783 | ||||||
6.050%, 05/16/2016 | 4,625 | 4,266 | ||||||
Series MTN | ||||||||
6.150%, 04/25/2013 | 1,860 | 1,803 | ||||||
Morgan Stanley | ||||||||
5.375%, 10/15/2015 | 6,550 | 5,993 | ||||||
Series MTN | ||||||||
6.625%, 04/01/2018 | 6,700 | 6,348 | ||||||
36,802 | ||||||||
The accompanying notes are an integral part of the financial statements.
42 First American Funds 2008 Annual Report
Intermediate Term Bond Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Capital Goods – 0.7% | ||||||||
Honeywell International | ||||||||
4.250%, 03/01/2013 | $ | 3,735 | $ | 3,682 | ||||
John Deere Capital | ||||||||
Series MTN | ||||||||
4.500%, 04/03/2013 6 | 1,990 | 1,965 | ||||||
5,647 | ||||||||
Communications – 4.0% | ||||||||
AT&T | ||||||||
4.950%, 01/15/2013 | 9,320 | 9,288 | ||||||
British Sky Broadcasting | ||||||||
6.100%, 02/15/2018 n | 2,980 | 2,931 | ||||||
British Telecom | ||||||||
5.950%, 01/15/2018 | 2,415 | 2,309 | ||||||
Comcast | ||||||||
6.300%, 11/15/2017 | 4,050 | 4,013 | ||||||
5.700%, 05/15/2018 6 | 3,265 | 3,098 | ||||||
Embarq | ||||||||
7.082%, 06/01/2016 | 1,170 | 1,111 | ||||||
Verizon Communications | ||||||||
5.250%, 04/15/2013 | 6,900 | 6,860 | ||||||
Vodafone Group | ||||||||
5.625%, 02/27/2017 | 2,000 | 1,927 | ||||||
31,537 | ||||||||
Consumer Cyclical – 2.9% | ||||||||
American Honda Finance | ||||||||
Series MTN | ||||||||
4.625%, 04/02/2013 n | 3,660 | 3,577 | ||||||
Home Depot | ||||||||
5.875%, 12/16/2036 | 1,775 | 1,450 | ||||||
McDonald’s | ||||||||
Series MTN | ||||||||
5.350%, 03/01/2018 | 1,740 | 1,697 | ||||||
Quest Diagnostic | ||||||||
5.125%, 11/01/2010 | 3,490 | 3,486 | ||||||
Target | ||||||||
5.125%, 01/15/2013 6 | 6,025 | 6,093 | ||||||
Whirlpool | ||||||||
Series MTN | ||||||||
5.500%, 03/01/2013 | 3,510 | 3,469 | ||||||
Yum! Brands | ||||||||
8.875%, 04/15/2011 | 2,740 | 2,962 | ||||||
22,734 | ||||||||
Consumer Discretionary – 0.2% | ||||||||
Time Warner Cable | ||||||||
6.750%, 07/01/2018 | 2,025 | 2,038 | ||||||
Consumer Non Cyclical – 4.5% | ||||||||
AmerisourceBergen | ||||||||
5.625%, 09/15/2012 | 2,000 | 1,988 | ||||||
Cardinal Health | ||||||||
6.750%, 02/15/2011 | 2,500 | 2,588 | ||||||
Covidien International | ||||||||
5.450%, 10/15/2012 | 2,240 | 2,271 | ||||||
General Mills | ||||||||
5.700%, 02/15/2017 6 | 4,410 | 4,371 | ||||||
Glaxosmithkline Capital | ||||||||
4.850%, 05/15/2013 | 2,900 | 2,896 | ||||||
Kellogg | ||||||||
5.125%, 12/03/2012 | 3,315 | 3,359 | ||||||
Kraft Foods | ||||||||
6.500%, 08/11/2017 | 3,800 | 3,805 | ||||||
Philip Morris | ||||||||
4.875%, 05/16/2013 | 5,000 | 4,912 | ||||||
Schering-Plough | ||||||||
5.550%, 12/01/2013 | 4,595 | 4,625 | ||||||
UnitedHealth Group | ||||||||
4.875%, 02/15/2013 | 2,965 | 2,869 | ||||||
6.000%, 02/15/2018 | 2,000 | 1,935 | ||||||
35,619 | ||||||||
Electric – 2.7% | ||||||||
MidAmerican Energy Holdings | ||||||||
5.875%, 10/01/2012 | 3,445 | 3,543 | ||||||
National Rural Utilities | ||||||||
5.750%, 08/28/2009 | 3,850 | 3,927 | ||||||
Ohio Power | ||||||||
Series K | ||||||||
6.000%, 06/01/2016 | 2,100 | 2,083 | ||||||
Oncor Electric Delivery | ||||||||
6.375%, 01/15/2015 | 3,140 | 3,098 | ||||||
Pacific Gas & Electric | ||||||||
5.625%, 11/30/2017 | 3,250 | 3,238 | ||||||
Taqa Abu Dhabi National Energy | ||||||||
6.165%, 10/25/2017 n | 2,030 | 2,005 | ||||||
Virginia Electric Power | ||||||||
5.950%, 09/15/2017 | 3,780 | 3,799 | ||||||
21,693 | ||||||||
Energy – 2.9% | ||||||||
Canadian National Resources | ||||||||
5.900%, 02/01/2018 | 2,380 | 2,365 | ||||||
Encana | ||||||||
5.900%, 12/01/2017 | 3,250 | 3,267 | ||||||
Marathon Oil | ||||||||
5.900%, 03/15/2018 | 3,080 | 3,044 | ||||||
Nexen | ||||||||
5.650%, 05/15/2017 | 4,180 | 4,064 | ||||||
Suncor Energy | ||||||||
6.100%, 06/01/2018 | 1,275 | 1,279 | ||||||
Tengizchevroil Finance | ||||||||
6.124%, 11/15/2014 n | 2,874 | 2,766 | ||||||
Weatherford International | ||||||||
5.950%, 06/15/2012 | 3,690 | 3,763 | ||||||
XTO Energy | ||||||||
4.625%, 06/15/2013 | 3,000 | 2,900 | ||||||
23,448 | ||||||||
Finance – 3.4% | ||||||||
American Express Centurion | ||||||||
Series BKNT | ||||||||
5.550%, 10/17/2012 | 2,035 | 2,013 | ||||||
Capital One Financial | ||||||||
6.150%, 09/01/2016 | 1,775 | 1,565 | ||||||
CIT Group | ||||||||
5.650%, 02/13/2017 | 1,195 | 824 | ||||||
Credit Agricole | ||||||||
6.637%, 05/29/2049 Δ n | 1,635 | 1,362 | ||||||
General Electric Capital | ||||||||
4.800%, 05/01/2013 | 6,235 | 6,108 | ||||||
Series MTN | ||||||||
5.625%, 09/15/2017 | 3,955 | 3,868 | ||||||
International Lease Finance | ||||||||
6.375%, 03/25/2013 | 1,890 | 1,725 | ||||||
Janus Capital Group | ||||||||
6.700%, 06/15/2017 | 1,620 | 1,555 | ||||||
Rockies Express Pipeline | ||||||||
6.850%, 07/15/2018 n | 2,000 | 2,024 | ||||||
SLM | ||||||||
Series MTN | ||||||||
5.400%, 10/25/2011 | 2,270 | 2,073 |
First American Funds 2008 Annual Report 43
Schedule of Investments June 30, 2008, all dollars are rounded to thousands (000)
Intermediate Term Bond Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Transcapitalinvest | ||||||||
5.670%, 03/05/2014 n | $ | 4,125 | $ | 3,858 | ||||
26,975 | ||||||||
Industrial Other – 0.6% | ||||||||
Johnson Controls | ||||||||
5.250%, 01/15/2011 | 4,720 | 4,773 | ||||||
Insurance – 2.0% | ||||||||
Ace INA Holdings | ||||||||
5.700%, 02/15/2017 | 2,765 | 2,654 | ||||||
Allied World Assurance | ||||||||
7.500%, 08/01/2016 | 3,040 | 2,845 | ||||||
Hartford Financial Services Group | ||||||||
Series MTN | ||||||||
6.000%, 01/15/2019 | 3,055 | 2,937 | ||||||
MBIA Insurance | ||||||||
14.000%, 01/15/2033 Δ n | 640 | 266 | ||||||
Met Life Global Funding I | ||||||||
5.125%, 04/10/2013 n | 3,730 | 3,673 | ||||||
Pacific Life Global Funding | ||||||||
5.150%, 04/15/2013 n | 2,205 | 2,181 | ||||||
ZFS Finance USA Trust V | ||||||||
6.500%, 05/09/2037 Δ n | 1,530 | 1,335 | ||||||
15,891 | ||||||||
Natural Gas – 1.0% | ||||||||
Kinder Morgan Energy Partners | ||||||||
5.000%, 12/15/2013 | 4,560 | 4,370 | ||||||
Transocean | ||||||||
6.000%, 03/15/2018 | 3,315 | 3,320 | ||||||
7,690 | ||||||||
Other Utility – 0.2% | ||||||||
American Water Capital | ||||||||
6.085%, 10/15/2017 | 1,420 | 1,362 | ||||||
Real Estate – 2.7% | ||||||||
Health Care – REIT | ||||||||
5.875%, 05/15/2015 | 3,775 | 3,508 | ||||||
Health Care Properties – REIT | ||||||||
Series MTN | ||||||||
6.300%, 09/15/2016 | 4,300 | 3,833 | ||||||
iStar Financial – REIT | ||||||||
5.650%, 09/15/2011 | 4,225 | 3,612 | ||||||
Mack-Cali Realty – REIT | ||||||||
7.250%, 03/15/2009 | 4,500 | 4,550 | ||||||
Prologis – REIT | ||||||||
5.500%, 04/01/2012 | 3,080 | 3,008 | ||||||
Prologis 2006 – REIT | ||||||||
5.750%, 04/01/2016 | 3,525 | 3,320 | ||||||
21,831 | ||||||||
Sovereign – 0.2% | ||||||||
United Mexican States | ||||||||
5.625%, 01/15/2017 6 | 1,400 | 1,415 | ||||||
Technology – 3.1% | ||||||||
Chartered Semiconductor | ||||||||
5.750%, 08/03/2010 | 1,500 | 1,470 | ||||||
Computer Sciences | ||||||||
6.500%, 03/15/2018 n | 3,490 | 3,507 | ||||||
Electronic Data Systems | ||||||||
7.125%, 10/15/2009 | 2,500 | 2,578 | ||||||
IBM | ||||||||
5.700%, 09/14/2017 | 5,935 | 6,023 | ||||||
Jabil Circuit | ||||||||
5.875%, 07/15/2010 | 4,200 | 4,100 | ||||||
Motorola | ||||||||
8.000%, 11/01/2011 | 3,900 | 3,983 | ||||||
National Semiconductor | ||||||||
6.600%, 06/15/2017 | 2,930 | 2,895 | ||||||
24,556 | ||||||||
Transportation – 2.1% | ||||||||
AEP Texas Central | ||||||||
Series A-2 | ||||||||
4.980%, 07/01/2013 | 9,695 | 9,814 | ||||||
Burlington Northern Santa Fe | ||||||||
5.650%, 05/01/2017 | 3,485 | 3,407 | ||||||
Erac USA Finance | ||||||||
6.375%, 10/15/2017 n | 1,445 | 1,291 | ||||||
Union Pacific | ||||||||
5.750%, 11/15/2017 | 2,000 | 1,967 | ||||||
16,479 | ||||||||
Total Corporate Bonds | ||||||||
(Cost $381,906) | 371,349 | |||||||
Asset-Backed Securities – 29.5% | ||||||||
Automotive – 6.4% | ||||||||
Harley-Davidson Motorcycle Trust | ||||||||
Series 2005-4, Class A2 | ||||||||
4.850%, 06/15/2012 | 4,240 | 4,279 | ||||||
Hertz Vehicle Financing | ||||||||
Series 2005-2A, Class A6 | ||||||||
5.080%, 11/25/2011 n | 8,425 | 7,896 | ||||||
Honda Auto Receivables Owner Trust | ||||||||
Series 2005-5, Class A4 | ||||||||
4.690%, 02/15/2011 | 9,895 | 9,980 | ||||||
Series 2005-6, Class A4 | ||||||||
4.930%, 03/18/2011 | 7,400 | 7,503 | ||||||
Volkswagen Auto Loan Enhanced Trust | ||||||||
Series 2005-1, Class A4 | ||||||||
4.860%, 04/20/2012 | 10,230 | 10,323 | ||||||
Wachovia Auto Owner Trust | ||||||||
Series 2005-B, Class A4 | ||||||||
4.840%, 04/20/2011 | 10,960 | 11,061 | ||||||
51,042 | ||||||||
Credit Cards – 3.4% | ||||||||
American Express Credit Account Master Trust | ||||||||
Series 2004-3, Class C | ||||||||
2.984%, 12/15/2011 �� n | 720 | 702 | ||||||
American Express Issuance Trust | ||||||||
Series 2005-1, Class C | ||||||||
4.102%, 08/15/2011 Δ | 1,930 | 1,828 | ||||||
Bank of America Credit Card Trust | ||||||||
Series 2006-C4, Class C4 | ||||||||
2.701%, 11/15/2011 Δ | 2,000 | 1,958 | ||||||
Series 2007-A8, Class A8 | ||||||||
5.590%, 11/17/2014 | 6,290 | 6,466 | ||||||
Citibank Credit Card Issuance Trust | ||||||||
Series 2006-A4, Class A4 | ||||||||
5.450%, 05/10/2013 | 11,195 | 11,463 | ||||||
Discover Card Master Trust | ||||||||
Series 2007-C1, Class C1 | ||||||||
2.791%, 01/15/2013 Δ | 1,940 | 1,770 | ||||||
Series 2007-A1, Class A1 | ||||||||
5.650%, 03/16/2020 | 1,530 | 1,488 | ||||||
Washington Mutual Master Note Trust | ||||||||
Series 2007-C1, Class C1 | ||||||||
2.871%, 05/15/2014 Δ n | 1,920 | 1,478 | ||||||
27,153 | ||||||||
The accompanying notes are an integral part of the financial statements.
44 First American Funds 2008 Annual Report
Intermediate Term Bond Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Equipment Lease – 0.7% | ||||||||
Caterpillar Financial Asset Trust | ||||||||
Series 2007-A, Class A3A | ||||||||
5.340%, 06/25/2012 | $ | 5,450 | $ | 5,526 | ||||
Home Equity – 0.5% | ||||||||
Amresco Residential Security Mortgage | ||||||||
Series 1997-3, Class A9 | ||||||||
6.960%, 03/25/2027 ¥ | 37 | 36 | ||||||
Contimortgage Home Equity Loan Trust | ||||||||
Series 1997-2, Class A9 | ||||||||
7.900%, 04/15/2028 ¥ | 44 | 44 | ||||||
Countrywide Asset-Backed Certificates | ||||||||
Series 2003-5, Class AF5 | ||||||||
5.739%, 02/25/2034 | 3,760 | 3,281 | ||||||
Saxon Asset Securities Trust | ||||||||
Series 2004-1, Class A | ||||||||
2.933%, 03/25/2035 Δ | 142 | 123 | ||||||
3,484 | ||||||||
Manufactured Housing – 0.7% | ||||||||
Green Tree Financial | ||||||||
Series 1996-9, Class A5 | ||||||||
7.200%, 01/15/2028 | 134 | 135 | ||||||
Origen Manufactured Housing | ||||||||
Series 2005-A, Class A2 | ||||||||
4.490%, 05/15/2018 | 5,641 | 5,587 | ||||||
5,722 | ||||||||
Other – 15.8% | ||||||||
Banc of America Commercial Mortgage | ||||||||
Series 2005-5, Class AM | ||||||||
5.176%, 10/10/2045 Δ | 3,370 | 3,176 | ||||||
Bear Stearns Commercial Mortgage Securities | ||||||||
Series 2007-T28, Class D | ||||||||
6.177%, 09/11/2042 Δ n | 1,470 | 945 | ||||||
Series 2007-PW15, Class A2 | ||||||||
5.205%, 02/11/2044 | 3,605 | 3,497 | ||||||
Series 2007-PW18, Class AJ | ||||||||
6.413%, 06/11/2050 Δ | 1,775 | 1,457 | ||||||
Citigroup Commercial Mortgage Trust | ||||||||
Series 2008-C7, Class AJ | ||||||||
6.299%, 12/10/2049 Δ | 2,145 | 1,747 | ||||||
Citigroup/Deutsche Bank Commercial Mortgage Trust | ||||||||
Series 2007-CD4, Class A2B | ||||||||
5.205%, 12/11/2049 | 2,340 | 2,276 | ||||||
Commercial Mortgage Pass-Through Certificates | ||||||||
Series 2006-CN2A, Class A2FX | ||||||||
5.449%, 02/05/2019 n | 5,040 | 5,024 | ||||||
Series 2004-RS1, Class A | ||||||||
4.018%, 03/03/2041 n ¥ | 2,351 | 2,027 | ||||||
Global Signal Trust | ||||||||
Series 2004-2A, Class A | ||||||||
4.232%, 12/15/2014 n | 7,390 | 7,324 | ||||||
Series 2006-1, Class C | ||||||||
5.707%, 02/15/2036 n | 4,420 | 4,238 | ||||||
Greenwich Capital Commercial Funding | ||||||||
Series 2003-C1, Class A2 | ||||||||
3.285%, 07/05/2035 | 2,665 | 2,597 | ||||||
Series 2007-GG11, Class A4 | ||||||||
5.736%, 12/10/2049 | 8,250 | 7,799 | ||||||
Series 2007-GG11, Class AJ | ||||||||
6.207%, 12/10/2049 Δ | 4,150 | 3,363 | ||||||
GS Mortgage Securities II | ||||||||
Series 2006-GG6, Class A2 | ||||||||
5.560%, 04/10/2038 | 11,945 | 11,932 | ||||||
Series 2006-GG8, Class A2 | ||||||||
5.479%, 11/10/2039 | 20,495 | 20,324 | ||||||
Series 2007-GG10, Class A4 | ||||||||
5.993%, 08/10/2045 Δ | 3,395 | 3,246 | ||||||
Series 2006-RR2, Class A1 | ||||||||
5.811%, 06/23/2046 n ¥ | 2,257 | 1,714 | ||||||
JPMorgan Chase Commercial Mortgage Securities | ||||||||
Series 2005-LDP5, Class B | ||||||||
5.500%, 12/15/2044 Δ | 1,230 | 1,075 | ||||||
Merrill Lynch Mortgage Trust | ||||||||
Series 2005-CIP1, Class C | ||||||||
5.301%, 07/12/2038 Δ | 1,455 | 1,229 | ||||||
Morgan Stanley Capital I | ||||||||
Series 2005-HQ6, Class B | ||||||||
5.152%, 08/13/2042 Δ | 630 | 546 | ||||||
Series 2005-HQ6, Class C | ||||||||
5.172%, 08/13/2042 Δ | 590 | 507 | ||||||
Morgan Stanley Dean Witter Capital I | ||||||||
Series 2002-TOP7, Class A2 | ||||||||
5.980%, 01/15/2039 | 5,610 | 5,766 | ||||||
Small Business Administration | ||||||||
Series 2005-P10B, Class 1 | ||||||||
4.940%, 08/10/2015 | 4,945 | 4,891 | ||||||
Series 2006-P10B, Class 1 | ||||||||
5.681%, 08/10/2016 | 8,086 | 8,234 | ||||||
Wachovia Bank Commercial Mortgage Trust | ||||||||
Series 2007-C30, Class A3 | ||||||||
5.246%, 12/15/2043 | 10,280 | 9,984 | ||||||
Series 2007-C34, Class A2 | ||||||||
5.569%, 05/15/2046 | 7,210 | 7,047 | ||||||
Series 2007-C34, Class AJ | ||||||||
6.146%, 05/15/2046 Δ | 2,375 | 1,915 | ||||||
Series 2007-C33, Class AJ | ||||||||
6.100%, 02/15/2051 Δ | 2,315 | 1,866 | ||||||
125,746 | ||||||||
Utilities – 2.0% | ||||||||
Centerpoint Energy Transition | ||||||||
Series 2008-A, Class A1 | ||||||||
4.192%, 02/01/2020 | 6,260 | 6,088 | ||||||
PG&E Energy Recovery Funding | ||||||||
Series 2005-1, Class A3 | ||||||||
4.140%, 09/25/2012 | 9,615 | 9,655 | ||||||
15,743 | ||||||||
Total Asset-Backed Securities | ||||||||
(Cost $242,045) | 234,416 | |||||||
Collateralized Mortgage Obligation – Private Mortgage-Backed Securities – 9.4% | ||||||||
Adjustable Rate Δ – 4.6% | ||||||||
Countrywide Home Loans | ||||||||
Series 2006-HYB5, Class 3A1A | ||||||||
5.969%, 09/20/2036 | 6,438 | 4,982 | ||||||
CS First Boston Mortgage Securities | ||||||||
Series 2003-AR24, Class 2A4 | ||||||||
4.258%, 10/25/2033 | 8,942 | 8,514 | ||||||
Harborview Mortgage Loan Trust | ||||||||
Series 2007-4, Class 2A1 | ||||||||
2.703%, 07/19/2047 | 5,759 | 3,918 | ||||||
Structured Mortgage Loan Trust | ||||||||
Series 2004-11, Class A | ||||||||
7.195%, 08/25/2034 | 317 | 318 |
First American Funds 2008 Annual Report 45
Schedule of Investments June 30, 2008, all dollars are rounded to thousands (000)
Intermediate Term Bond Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Wells Fargo Mortgage Backed Securities Trust | ||||||||
Series 2003-J, Class 2A5 | ||||||||
4.450%, 10/25/2033 | $ | 11,500 | $ | 10,945 | ||||
Series 2004-E, Class A5 | ||||||||
3.662%, 05/25/2034 | 8,291 | 8,245 | ||||||
36,922 | ||||||||
Fixed Rate – 4.8% | ||||||||
Banc of America Mortgage Securities | ||||||||
Series 2003-6, Class 1A29 | ||||||||
4.250%, 08/25/2033 | 5,184 | 5,174 | ||||||
Series 2005-5, Class 1A21 | ||||||||
5.000%, 06/25/2035 | 7,898 | 7,856 | ||||||
BCAP LLC Trust | ||||||||
Series 2006-RR1, Class PB | ||||||||
5.000%, 11/25/2036 | 4,970 | 4,664 | ||||||
Countrywide Alternative Loan Trust | ||||||||
Series 2004-2CB, Class 1A1 | ||||||||
4.250%, 03/25/2034 | 2,056 | 1,987 | ||||||
Series 2006-19CB, Class A15 | ||||||||
6.000%, 08/25/2036 | 2,052 | 1,999 | ||||||
Crown Castle Towers | ||||||||
Series 2005-1A, Class B | ||||||||
4.878%, 06/15/2035 n | 3,465 | 3,380 | ||||||
Salomon Brothers Mortgage Securities | ||||||||
Series 1986-1, Class A | ||||||||
6.000%, 12/25/2011 | 33 | 33 | ||||||
Washington Mutual Mortgage Pass-Through Trust | ||||||||
Series 2007-2, Class 3A1 | ||||||||
5.500%, 04/25/2022 | 3,527 | 3,409 | ||||||
Wells Fargo Mortgage Backed Securities Trust | ||||||||
Series 2005-3, Class A9 | ||||||||
5.500%, 05/25/2035 | 3,302 | 2,545 | ||||||
Series 2007-2, Class 1A8 | ||||||||
5.750%, 03/25/2037 | 7,150 | 7,037 | ||||||
Westam Mortgage Financial | ||||||||
Series 11, Class A | ||||||||
6.360%, 08/26/2020 ¥ + | 30 | 30 | ||||||
38,114 | ||||||||
Total Collateralized Mortgage Obligation – Private Mortgage-Backed Securities | ||||||||
(Cost $75,720) | 75,036 | |||||||
U.S. Government & Agency Securities – 6.3% | ||||||||
U.S. Agency Debentures – 5.1% | ||||||||
Federal Agricultural Mortgage Corporation | ||||||||
5.500%, 07/15/2011 n6 | 13,900 | 14,731 | ||||||
Federal Home Loan Mortgage Corporation | ||||||||
4.500%, 08/04/2008 6 | 4,420 | 4,428 | ||||||
5.375%, 01/09/2014 6 | 16,795 | 16,934 | ||||||
Federal National Mortgage Association | ||||||||
4.500%, 02/15/2011 6 | 4,240 | 4,358 | ||||||
40,451 | ||||||||
U.S. Treasuries – 1.2% | ||||||||
U.S. Treasury Notes | ||||||||
4.125%, 08/31/2012 | 660 | 683 | ||||||
3.125%, 04/30/2013 | 5,015 | 4,973 | ||||||
1.875%, 07/15/2013 ◄ | 1,906 | 2,015 | ||||||
3.875%, 05/15/2018 | 2,170 | 2,152 | ||||||
9,823 | ||||||||
Total U.S. Government & Agency Securities | ||||||||
(Cost $48,903) | 50,274 | |||||||
Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities – 3.5% | ||||||||
Fixed Rate – 3.5% | ||||||||
Federal Home Loan Mortgage Corporation | ||||||||
Series 2763, Class TA | ||||||||
4.000%, 03/15/2011 | 4,839 | 4,951 | ||||||
Series 2780, Class QC | ||||||||
4.500%, 03/15/2017 6 | 10,203 | 10,239 | ||||||
Series 2750, Class HE | ||||||||
5.000%, 02/15/2019 | 5,930 | 5,920 | ||||||
Series 1167, Class E | ||||||||
7.500%, 11/15/2021 | 22 | 21 | ||||||
Series 1286, Class A | ||||||||
6.000%, 05/15/2022 | 63 | 63 | ||||||
Federal National Mortgage Association | ||||||||
Series 2003-4, Class PE | ||||||||
5.000%, 02/25/2018 | 6,805 | 6,765 | ||||||
Series 1990-89, Class K | ||||||||
6.500%, 07/25/2020 | 15 | 15 | ||||||
Total Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities | ||||||||
(Cost $27,234) | 27,974 | |||||||
U.S. Government Agency Mortgage-Backed Securities – 3.1% | ||||||||
Adjustable Rate Δ – 1.4% | ||||||||
Federal Home Loan Mortgage Corporation Pool | ||||||||
7.400%, 01/01/2028, #786281 | 847 | 859 | ||||||
6.422%, 04/01/2029, #847190 | 1,379 | 1,398 | ||||||
6.638%, 10/01/2030, #847209 | 3,050 | 3,069 | ||||||
6.610%, 05/01/2031, #847161 | 1,024 | 1,047 | ||||||
6.595%, 09/01/2033, #847210 | 2,607 | 2,626 | ||||||
Federal National Mortgage Association Pool | ||||||||
6.966%, 09/01/2033, #725111 | 1,790 | 1,802 | ||||||
10,801 | ||||||||
Fixed Rate – 1.7% | ||||||||
Federal Home Loan Mortgage Corporation | ||||||||
Series K001, Class A3 | ||||||||
6.333%, 01/25/2012 | 4,886 | 4,939 | ||||||
Federal National Mortgage Association Pool | ||||||||
5.000%, 03/01/2023, #889235 6 | 8,868 | 8,797 | ||||||
13,736 | ||||||||
Total U.S. Government Agency Mortgage-Backed Securities | ||||||||
(Cost $24,926) | 24,537 | |||||||
Preferred Stocks – 0.5% | ||||||||
Brokerage – 0.2% | ||||||||
Merrill Lynch | ||||||||
Series AAPL 6 | 76,000 | 1,763 | ||||||
Sovereign – 0.3% | ||||||||
Fannie Mae | ||||||||
Series S 6 | 92,000 | 2,112 | ||||||
Total Preferred Stocks | ||||||||
(Cost $4,200) | 3,875 | |||||||
The accompanying notes are an integral part of the financial statements.
46 First American Funds 2008 Annual Report
Intermediate Term Bond Fund (continued) | ||||||||
DESCRIPTION | PAR/SHARES | VALUE | ||||||
Municipal Bond – 0.2% | ||||||||
Sullivan County Health, Education & Housing Facilities, Hospital Revenue, Wellmont Health, Class B | ||||||||
6.950%, 09/01/2016 | ||||||||
(Cost $1,970) | $ | 1,970 | $ | 1,976 | ||||
Short-Term Investments – 1.3% | ||||||||
Money Market Fund – 1.0% | ||||||||
First American Prime Obligations Fund, Class Z Å | 7,593,786 | 7,594 | ||||||
U.S. Treasury Obligations – 0.3% | ||||||||
U.S. Treasury Bills o | ||||||||
1.360%, 07/24/2008 | $ | 700 | 699 | |||||
1.802%, 08/14/2008 | 620 | 619 | ||||||
1.832%, 10/09/2008 | 1,220 | 1,214 | ||||||
2,532 | ||||||||
Total Short-Term Investments | ||||||||
(Cost $10,126) | 10,126 | |||||||
Investment Purchased with Proceeds from Securities Lending – 10.3% | ||||||||
Mount Vernon Securities Lending Prime Portfolio † | ||||||||
(Cost $81,905) | 81,904,662 | 81,905 | ||||||
Total Investments – 110.8% | ||||||||
(Cost $898,935) | 881,468 | |||||||
Other Assets and Liabilities, Net – (10.8)% | (86,172 | ) | ||||||
Total Net Assets – 100.0% | $ | 795,296 | ||||||
Δ | Variable Rate Security – The rate shown is the rate in effect as of June 30, 2008. | |
n | Security purchased within the terms of a private placement memorandum, exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other “qualified institutional buyers.” As of June 30, 2008, the value of these investments was $87,950 or 11.1% of total net assets. See note 2 in Notes to Financial Statements. | |
6 | This security or a portion of this security is out on loan at June 30, 2008. Total loaned securities had a value of $80,320 at June 30, 2008. See note 2 in Notes to Financial Statements. | |
¥ | Security considered illiquid. As of June 30, 2008, the value of these investments wase $3,851 or 0.5% of total net assets. See note 2 in Notes to Financial Statements. | |
+ | Security is fair valued. As of June 30, 2008, the fair value of this investment was $30 or 0.0% of total net assets. See note 2 in Notes to Financial Statements. | |
◄ | U.S. Treasury inflation-protection securities (TIPS) are securities in which the principal amount is adjusted for inflation and the semiannual interest payments equal a fixed percentage of the inflation-adjusted principal amount. | |
Å | Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor for this fund. See note 3 in Notes to Financial Statements. | |
o | Security has been deposited as initial margin on open futures contracts and/or swap agreements. Yield shown is the effective yield as of June 30, 2008. See note 2 in Notes to Financial Statements. | |
† | The fund may loan securities representing up to one third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks, or other institutional borrowers of securities. The fund maintains collateral equal to at least 100% of the value of the securities loaned. The adequacy of the collateral is monitored on a daily basis. The cash collateral received by the fund is invested in this affilitated money market fund. See note 2 in Notes to Financial Statements. |
REIT – | Real Estate Investment Trust |
Intermediate Term Bond Fund (concluded)
Schedule of Open Futures Contracts
Number of | ||||||||||||||
Contracts | Notional | |||||||||||||
Purchased | Contract | Settlement | Unrealized | |||||||||||
Description | (Sold) | Value | Month | Depreciation | ||||||||||
U.S. Treasury 2 Year Note Futures | 457 | $ | 96,520 | September 2008 | $ | (92 | ) | |||||||
U.S. Treasury 5 Year Note Futures | (190 | ) | (21,005 | ) | September 2008 | (112 | ) | |||||||
U.S. Treasury 10 Year Note Futures | (112 | ) | (12,759 | ) | September 2008 | (18 | ) | |||||||
U.S. Treasury Long Bond Futures | (96 | ) | (11,097 | ) | September 2008 | (145 | ) | |||||||
$ | (367 | ) | ||||||||||||
Credit Default Swap Agreements
Pay/ | Unrealized | |||||||||||||||||||||
Reference | Buy/Sell | Receive | Expiration | Notional | Appreciation | |||||||||||||||||
Counterparty | Entity | Protection | Fixed Rate | Date | Amount | (Depreciation) | ||||||||||||||||
Bank of America | Dow Jones CDX IG10 Index | Sell | 1.550% | 06/20/2013 | $ | 12,600 | $ | (61 | ) | |||||||||||||
Deutsche Bank | Dow Jones CDX HVOL9 Index | Sell | 1.400% | 12/20/2012 | 10,200 | (260 | ) | |||||||||||||||
Deutsche Bank | Dow Jones CDX HVOL10 Index | Sell | 3.500% | 06/20/2013 | 16,200 | (370 | ) | |||||||||||||||
Deutsche Bank | Dow Jones CDX IG9 Index | Sell | 0.600% | 12/20/2012 | 9,000 | (10 | ) | |||||||||||||||
Deutsche Bank | Dow Jones CDX IG10 Index | Sell | 1.550% | 06/20/2013 | 16,000 | (66 | ) | |||||||||||||||
JPMorgan | Deutsche Bank AG | Buy | 0.525% | 09/20/2012 | 800 | 12 | ||||||||||||||||
JPMorgan | Dow Jones CDX IG9 Index | Sell | 1.550% | 06/20/2013 | 16,000 | (116 | ) | |||||||||||||||
JPMorgan | Markit ABX AAA071 Index | Sell | 0.090% | 08/25/2037 | 3,600 | (363 | ) | |||||||||||||||
UBS | AmerisourceBergen Corporation | Buy | 0.585% | 09/20/2012 | 2,000 | 7 | ||||||||||||||||
UBS | Cardinal Health, Inc. | Buy | 0.320% | 09/20/2012 | 2,000 | 9 | ||||||||||||||||
UBS | Dow Jones CDX HVOL10 Index | Sell | 3.500% | 06/20/2013 | 4,000 | (133 | ) | |||||||||||||||
UBS | Dow Jones CDX IG9 Index | Sell | 0.600% | 12/20/2012 | 500 | — | ||||||||||||||||
UBS | Whirlpool Corporation | Buy | 0.785% | 09/20/2017 | 2,000 | 61 | ||||||||||||||||
$ | (1,290 | ) | ||||||||||||||||||||
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 | 4.625% | 09/20/2009 | $ | 41,000 | $ | 684 | ||||||||||||||
Citigroup | 3-Month LIBOR | Receive | 5.110% | 09/20/2017 | 5,000 | (179 | ) | |||||||||||||||
JPMorgan | 3-Month LIBOR | Pay | 3.958% | 06/17/2010 | 21,000 | 164 | ||||||||||||||||
UBS | 3-Month LIBOR | Pay | 2.743% | 04/17/2010 | 21,000 | (264 | ) | |||||||||||||||
UBS | 3-Month LIBOR | Pay | 3.418% | 05/30/2010 | 21,000 | (32 | ) | |||||||||||||||
UBS | 3-Month LIBOR | Pay | 4.568% | 10/02/2009 | 41,000 | 668 | ||||||||||||||||
UBS | 3-Month LIBOR | Receive | 5.153% | 10/02/2017 | 10,000 | (390 | ) | |||||||||||||||
UBS | 3-Month LIBOR | Receive | 5.042% | 11/13/2017 | 10,000 | (305 | ) | |||||||||||||||
UBS | 3-Month LIBOR | Pay | 2.795% | 04/18/2010 | 21,000 | (268 | ) | |||||||||||||||
$ | 78 | |||||||||||||||||||||
First American Funds 2008 Annual Report 47
Schedule of Investments June 30, 2008, all dollars are rounded to thousands (000)
Short Term Bond Fund | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Asset-Backed Securities – 38.4% | ||||||||
Automotive – 7.3% | ||||||||
Auto Bond Receivables Trust | ||||||||
Series 1993-I, Class A | ||||||||
6.125%, 11/15/2021 + ¥ ª = | $ | 106 | $ | — | ||||
DaimlerChrysler Auto Trust | ||||||||
Series 2006-C, Class A3 | ||||||||
5.200%, 07/08/2010 | 3,771 | 3,798 | ||||||
FTN Financial Auto Securitization Trust | ||||||||
Series 2004-A, Class B | ||||||||
3.000%, 06/15/2010 ¥ n | 22 | 23 | ||||||
Hertz Vehicle Financing | ||||||||
Series 2005-2A, Class A2 | ||||||||
4.930%, 02/25/2010 n | 5,460 | 5,433 | ||||||
Honda Auto Receivables Owner Trust | ||||||||
Series 2007-3, Class A2 | ||||||||
5.290%, 01/15/2010 | 4,180 | 4,209 | ||||||
Nissan Auto Receivables Owner Trust | ||||||||
Series 2006-B, Class A3 | ||||||||
5.160%, 02/15/2010 | 2,480 | 2,497 | ||||||
Volkswagen Auto Loan Enhanced Trust | ||||||||
Series 2005-1, Class A4 | ||||||||
4.860%, 04/20/2012 | 7,000 | 7,063 | ||||||
23,023 | ||||||||
Credit Cards – 9.0% | ||||||||
American Express Credit Account Master Trust | ||||||||
Series 2004-3, Class C | ||||||||
2.984%, 12/15/2011 n Δ | 300 | 292 | ||||||
American Express Issuance Trust | ||||||||
Series 2005-1, Class C | ||||||||
2.844%, 08/15/2011 Δ | 905 | 857 | ||||||
Bank of America Credit Card Trust | ||||||||
Series 2006-C4, Class C4 | ||||||||
2.701%, 11/15/2011 Δ | 750 | 734 | ||||||
Bank One Issuance Trust | ||||||||
Series 2004-B2, Class B2 | ||||||||
4.370%, 04/15/2012 | 1,200 | 1,196 | ||||||
Capital One Multi-Asset Execution Trust | ||||||||
Series 2005-A3, Class A3 | ||||||||
4.050%, 03/15/2013 | 5,241 | 5,248 | ||||||
Citibank Credit Card Issuance Trust | ||||||||
Series 2006-A2, Class A2 | ||||||||
4.850%, 02/10/2011 | 3,557 | 3,590 | ||||||
Series 2006-A4, Class A4 | ||||||||
5.450%, 05/10/2013 | 5,245 | 5,371 | ||||||
Discover Card Master Trust | ||||||||
Series 2007-C1, Class C1 | ||||||||
2.791%, 01/15/2013 Δ | 885 | 807 | ||||||
Household Credit Card Master Note Trust I | ||||||||
Series 2006-1, Class A | ||||||||
5.100%, 06/15/2012 | 4,950 | 4,997 | ||||||
MBNA Credit Card Master Note Trust | ||||||||
Series 2005-A7, Class A7 | ||||||||
4.300%, 02/15/2011 | 4,000 | 4,011 | ||||||
Washington Mutual Master Note Trust | ||||||||
Series 2007-C1, Class C1 | ||||||||
2.871%, 05/15/2014 n Δ | 1,855 | 1,428 | ||||||
28,531 | ||||||||
Equipment Leases – 1.4% | ||||||||
Caterpillar Financial Asset Trust | ||||||||
Series 2006-A, Class A3 | ||||||||
5.570%, 05/25/2010 | 448 | 453 | ||||||
Series 2007-A, Class A3A | ||||||||
5.340%, 06/25/2012 | 2,550 | 2,585 | ||||||
CNH Equipment Trust | ||||||||
Series 2006-B, Class A3 | ||||||||
5.200%, 06/15/2010 | 1,611 | 1,621 | ||||||
4,659 | ||||||||
Home Equity – 1.4% | ||||||||
Citicorp Residential Mortgage Securities Trust | ||||||||
Series 2006-1, Class A1 | ||||||||
5.956%, 07/25/2036 | 730 | 730 | ||||||
Countrywide Asset-Backed Certificates | ||||||||
Series 2003-5, Class AF5 | ||||||||
5.739%, 02/25/2034 | 2,133 | 1,861 | ||||||
Equivantage Home Equity Loan Trust | ||||||||
Series 1996-1, Class A | ||||||||
6.550%, 10/25/2025 ¥ | 51 | 43 | ||||||
Series 1996-4, Class A | ||||||||
7.250%, 01/25/2028 ¥ | 247 | 199 | ||||||
IMC Home Equity Loan Trust | ||||||||
Series 1998-3, Class A7 | ||||||||
6.720%, 08/20/2029 ¥ | 1,604 | 1,602 | ||||||
4,435 | ||||||||
Manufactured Housing – 1.7% | ||||||||
Origen Manufactured Housing | ||||||||
Series 2005-A, Class A2 | ||||||||
4.490%, 05/15/2018 | 1,676 | 1,660 | ||||||
Series 2005-B, Class A2 | ||||||||
5.247%, 12/15/2018 | 3,742 | 3,743 | ||||||
5,403 | ||||||||
Other – 16.2% | ||||||||
Banc of America Commercial Mortgage | ||||||||
Series 2004-4, Class A2 | ||||||||
4.041%, 07/10/2042 | 2,845 | 2,837 | ||||||
Bear Stearns Commercial Mortgage Securities | ||||||||
Series 2002-TOP6, Class A1 | ||||||||
5.920%, 10/15/2036 | 2,014 | 2,037 | ||||||
Series 2007-PW18, Class AJ | ||||||||
6.210%, 06/11/2050 Δ | 730 | 599 | ||||||
Citigroup/Deutsche Bank Commercial Mortgage Trust | ||||||||
Series 2007-CD4, Class A2B | ||||||||
5.205%, 12/11/2049 | 1,385 | 1,347 | ||||||
Commercial Mortgage Pass-Through Certificates | ||||||||
Series 2004-LB3A, Class A1 | ||||||||
3.765%, 07/10/2037 | 125 | 125 | ||||||
Series 2004-RS1, Class A | ||||||||
4.018%, 03/03/2041 ¥ n | 1,243 | 1,071 | ||||||
GE Capital Commercial Mortgage Corporation | ||||||||
Series 2001-2, Class A2 | ||||||||
5.850%, 08/11/2033 | 3,395 | 3,436 | ||||||
Global Signal Trust | ||||||||
Series 2004-2A, Class A | ||||||||
4.232%, 12/15/2014 n | 6,380 | 6,323 | ||||||
Series 2006-1, Class C | ||||||||
5.707%, 02/15/2036 n | 2,750 | 2,637 | ||||||
GMAC Commercial Mortgage Securities | ||||||||
Series 1999-C1, Class A2 | ||||||||
6.175%, 05/15/2033 | 3,543 | 3,558 | ||||||
Series 2004-C1, Class A2 | ||||||||
4.100%, 03/10/2038 | 4,000 | 3,970 | ||||||
Greenwich Capital Commercial Funding | ||||||||
Series 2005-GG5, Class A2 | ||||||||
5.117%, 04/10/2037 | 12,390 | 12,365 | ||||||
GS Mortgage Securities II | ||||||||
Series 2004-C1, Class A1 | ||||||||
3.659%, 10/10/2028 | 3,051 | 3,040 |
The accompanying notes are an integral part of the financial statements.
48 First American Funds 2008 Annual Report
Short Term Bond Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
JPMorgan Chase Commercial Mortgage Securities | ||||||||
Series 2001-CIB3, Class A2 | ||||||||
6.044%, 11/15/2035 | $ | 3,091 | $ | 3,136 | ||||
LB-UBS Commercial Mortgage Trust | ||||||||
Series 2003-C3, Class A2 | ||||||||
3.086%, 05/15/2027 | 368 | 367 | ||||||
Series 2004-C2, Class A1 | ||||||||
2.946%, 03/15/2029 | 4,466 | 4,434 | ||||||
51,282 | ||||||||
Utilities – 1.4% | ||||||||
Oncor Electric Delivery Transition Bond Company | ||||||||
Series 2003-1, Class A2 | ||||||||
4.030%, 02/15/2012 | 2,194 | 2,202 | ||||||
PG&E Energy Recovery Funding | ||||||||
Series 2005-1, Class A2 | ||||||||
3.870%, 06/25/2011 | 1,811 | 1,816 | ||||||
Public Service New Hampshire Funding | ||||||||
Series 2001-1, Class A2 | ||||||||
5.730%, 11/01/2010 | 524 | 527 | ||||||
4,545 | ||||||||
Total Asset-Backed Securities | ||||||||
(Cost $124,904) | 121,878 | |||||||
Corporate Bonds – 21.7% | ||||||||
Banking – 4.9% | ||||||||
Bank of America | ||||||||
7.800%, 02/15/2010 6 | 2,500 | 2,609 | ||||||
Bank One | ||||||||
7.875%, 08/01/2010 | 2,700 | 2,858 | ||||||
Citigroup | ||||||||
4.125%, 02/22/2010 | 2,000 | 1,981 | ||||||
HSBC Finance | ||||||||
6.750%, 05/15/2011 | 2,345 | 2,437 | ||||||
Popular North America | ||||||||
3.875%, 10/01/2008 | 2,925 | 2,919 | ||||||
Wells Fargo | ||||||||
4.625%, 08/09/2010 | 2,750 | 2,778 | ||||||
15,582 | ||||||||
Basic Industry – 0.3% | ||||||||
Georgia-Pacific | ||||||||
8.125%, 05/15/2011 | 500 | 494 | ||||||
Vedanta Resources | ||||||||
9.500%, 07/18/2018 n | 495 | 492 | ||||||
986 | ||||||||
Brokerage – 2.7% | ||||||||
Goldman Sachs Group | ||||||||
6.875%, 01/15/2011 | 3,000 | 3,114 | ||||||
Lehman Brothers Holdings | ||||||||
Series MTN | ||||||||
5.750%, 07/18/2011 6 | 2,600 | 2,511 | ||||||
Merrill Lynch | ||||||||
5.450%, 02/05/2013 | 1,250 | 1,179 | ||||||
Morgan Stanley | ||||||||
4.000%, 01/15/2010 | 2,000 | 1,964 | ||||||
8,768 | ||||||||
Communications – 1.4% | ||||||||
Comcast Cable Communications | ||||||||
6.875%, 06/15/2009 | 2,305 | 2,367 | ||||||
DirecTV Holdings | ||||||||
7.625%, 05/15/2016 n | 360 | 355 | ||||||
Vodafone Airtouch | ||||||||
7.750%, 02/15/2010 | 1,500 | 1,567 | ||||||
4,289 | ||||||||
Consumer Cyclical – 2.0% | ||||||||
Harrah’s Operating Company | ||||||||
5.500%, 07/01/2010 | 2,000 | 1,787 | ||||||
MGM Mirage | ||||||||
6.625%, 07/15/2015 | 715 | 574 | ||||||
Quest Diagnostic | ||||||||
5.125%, 11/01/2010 | 1,990 | 1,988 | ||||||
Rite Aid | ||||||||
7.500%, 03/01/2017 | 180 | 145 | ||||||
Royal Caribbean Cruises | ||||||||
7.000%, 06/15/2013 | 515 | 456 | ||||||
Yum! Brands | ||||||||
8.875%, 04/15/2011 | 1,260 | 1,362 | ||||||
6,312 | ||||||||
Consumer Non Cyclical – 2.7% | ||||||||
AmerisourceBergen | ||||||||
5.625%, 09/15/2012 | 1,000 | 994 | ||||||
Cardinal Health | ||||||||
6.750%, 02/15/2011 | 1,250 | 1,294 | ||||||
Constellation Brands | ||||||||
7.250%, 05/15/2017 | 390 | 365 | ||||||
Covidien International | ||||||||
5.150%, 10/15/2010 | 3,000 | 3,026 | ||||||
Smithfield Foods | ||||||||
7.000%, 08/01/2011 | 320 | 292 | ||||||
UnitedHealth Group | ||||||||
3.750%, 02/10/2009 | 2,500 | 2,478 | ||||||
8,449 | ||||||||
Electric – 1.1% | ||||||||
Arizona Public Service | ||||||||
6.375%, 10/15/2011 | 2,000 | 2,014 | ||||||
MidAmerican Energy Holdings | ||||||||
5.875%, 10/01/2012 | 1,555 | 1,599 | ||||||
3,613 | ||||||||
Finance – 2.1% | ||||||||
American Express Travel | ||||||||
5.250%, 11/21/2011 n | 2,450 | 2,410 | ||||||
Ameriprise Financial | ||||||||
5.350%, 11/15/2010 | 1,000 | 1,003 | ||||||
CIT Group | ||||||||
5.650%, 02/13/2017 | 100 | 69 | ||||||
ILFC E-Capital Trust I | ||||||||
5.900%, 12/21/2065 n Δ | 1,000 | 810 | ||||||
International Lease Finance | ||||||||
5.000%, 04/15/2010 6 | 2,525 | 2,448 | ||||||
6,740 | ||||||||
Insurance – 0.8% | ||||||||
Allstate Life Global Funding | ||||||||
Series MTN | ||||||||
4.250%, 02/26/2010 | 2,500 | 2,508 | ||||||
Real Estate – 0.7% | ||||||||
iStar Financial – REIT | ||||||||
6.000%, 12/15/2010 | 2,500 | 2,131 | ||||||
Sovereign – 0.5% | ||||||||
Australian Government | ||||||||
5.250%, 03/15/2019 ¬ | AUD | 1,800 | 1,566 | |||||
First American Funds 2008 Annual Report 49
Schedule of Investments June 30, 2008, all dollars are rounded to thousands (000)
Short Term Bond Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Technology – 2.4% | ||||||||
Chartered Semiconductor | ||||||||
5.750%, 08/03/2010 | $ | 1,500 | $ | 1,470 | ||||
Electronic Data Systems | ||||||||
7.125%, 10/15/2009 | 2,000 | 2,063 | ||||||
First Data | ||||||||
9.875%, 09/24/2015 n | 455 | 396 | ||||||
Jabil Circuit | ||||||||
5.875%, 07/15/2010 | 2,295 | 2,240 | ||||||
Motorola | ||||||||
8.000%, 11/01/2011 | 1,200 | 1,225 | ||||||
NXP BV/NXP Funding | ||||||||
9.500%, 10/15/2015 6 | 160 | 139 | ||||||
7,533 | ||||||||
Transportation – 0.1% | ||||||||
Hertz | ||||||||
8.875%, 01/01/2014 | 345 | 316 | ||||||
Total Corporate Bonds | ||||||||
(Cost $70,117) | 68,793 | |||||||
Collateralized Mortgage Obligation – Private Mortgage-Backed Securities – 16.9% | ||||||||
Adjustable Rate Δ – 12.5% | ||||||||
Banc of America Mortgage Securities | ||||||||
Series 2004-F, Class 2A6 | ||||||||
4.146%, 07/25/2034 | 3,000 | 2,933 | ||||||
Citigroup Mortgage Loan Trust | ||||||||
Series 2005-7, Class 2A1A | ||||||||
4.862%, 09/25/2035 | 3,064 | 2,929 | ||||||
Countrywide Alternative Loan Trust | ||||||||
Series 2006-OA17, Class 1A1A | ||||||||
2.674%, 12/20/2046 | 4,710 | 3,294 | ||||||
Countrywide Home Loans | ||||||||
Series 2004-2, Class 2A1 | ||||||||
5.290%, 02/25/2034 | 610 | 602 | ||||||
GSR Mortgage Loan Trust | ||||||||
Series 2005-AR1, Class B1 | ||||||||
5.458%, 01/25/2035 | 2,099 | 1,675 | ||||||
Harborview Mortgage Loan Trust | ||||||||
Series 2006-1, Class 2A1A | ||||||||
2.738%, 03/19/2037 | 4,893 | 3,442 | ||||||
Series 2007-4, Class 2A1 | ||||||||
2.718%, 07/19/2047 | 2,739 | 1,863 | ||||||
Indymac Index Mortgage Loan Trust | ||||||||
Series 2005-AR1, Class 4A1 | ||||||||
5.349%, 03/25/2035 | 703 | 574 | ||||||
JPMorgan Mortgage Trust | ||||||||
Series 2004-A1, Class 3A1 | ||||||||
4.992%, 02/25/2034 | 1,613 | 1,527 | ||||||
Series 2006-A7, Class 3A4 | ||||||||
5.946%, 01/25/2037 | 791 | 598 | ||||||
Structured Mortgage Loan Trust | ||||||||
Series 2004-11, Class A | ||||||||
7.195%, 08/25/2034 | 250 | 251 | ||||||
Washington Mutual | ||||||||
Series 2003-AR10, Class A6 | ||||||||
4.060%, 10/25/2033 | 7,000 | 6,995 | ||||||
Series 2004-AR7, Class A6 | ||||||||
3.941%, 07/25/2034 | 5,000 | 4,939 | ||||||
Series 2007-HY2, Class 3A2 | ||||||||
5.931%, 09/25/2036 | 850 | 757 | ||||||
Wells Fargo Mortgage Backed Securities Trust | ||||||||
Series 2004-E, Class A5 | ||||||||
3.662%, 05/25/2034 | 5,400 | 5,370 | ||||||
Series 2005-AR10, Class 2A5 | ||||||||
4.109%, 06/25/2035 | 1,930 | 1,900 | ||||||
39,649 | ||||||||
Fixed Rate – 4.4% | ||||||||
Citigroup Mortgage Loan Trust | ||||||||
Series 2005-WF1, Class A2 | ||||||||
4.490%, 02/25/2035 | 2,779 | 2,722 | ||||||
Countrywide Alternative Loan Trust | ||||||||
Series 2006-19CB, Class A15 | ||||||||
6.000%, 08/25/2036 | 2,457 | 2,395 | ||||||
Crown Castle Towers | ||||||||
Series 2005-1A, Class B | ||||||||
4.878%, 06/15/2035 n | 2,438 | 2,378 | ||||||
First Horizon Mortgage Pass-Through Trust | ||||||||
Series 2004-4, Class 2A1 | ||||||||
4.500%, 07/25/2019 | 353 | 353 | ||||||
Master Alternative Loans Trust | ||||||||
Series 2004-13, Class 10A1 | ||||||||
8.000%, 01/25/2035 | 732 | 724 | ||||||
Residential Accredit Loans | ||||||||
Series 2006-QS4, Class A9 | ||||||||
6.000%, 04/25/2036 | 3,015 | 2,691 | ||||||
Wells Fargo Mortgage Backed Securities Trust | ||||||||
Series 2007-2, Class 1A8 | ||||||||
5.750%, 03/25/2037 | 2,700 | 2,657 | ||||||
13,920 | ||||||||
Total Collateralized Mortgage Obligation – Private Mortgage-Backed Securities | ||||||||
(Cost $55,131) | 53,569 | |||||||
U.S. Government Agency Mortgage-Backed Securities – 8.7% | ||||||||
Adjustable Rate Δ – 6.5% | ||||||||
Federal Home Loan Mortgage Corporation Pool | ||||||||
7.250%, 12/01/2026, #756591 | 805 | 810 | ||||||
6.983%, 01/01/2029, #846946 | 496 | 504 | ||||||
7.045%, 10/01/2029, #786853 | 286 | 286 | ||||||
7.222%, 04/01/2030, #972055 | 344 | 354 | ||||||
6.803%, 05/01/2030, #847014 | 383 | 384 | ||||||
6.216%, 06/01/2031, #847367 | 255 | 256 | ||||||
7.020%, 08/01/2032, #847331 | 2,791 | 2,831 | ||||||
7.078%, 09/01/2032, #847652 | 1,626 | 1,643 | ||||||
7.106%, 10/01/2032, #847063 | 249 | 254 | ||||||
4.223%, 05/01/2033, #780456 | 1,195 | 1,203 | ||||||
Federal National Mortgage Association Pool | ||||||||
7.008%, 11/01/2025, #433988 | 693 | 698 | ||||||
6.991%, 10/01/2030, #847241 | 1,969 | 1,976 | ||||||
6.118%, 06/01/2031, #625338 | 363 | 367 | ||||||
6.912%, 12/01/2031, #535363 | 1,701 | 1,740 | ||||||
7.103%, 03/01/2032, #545791 | 55 | 55 | ||||||
7.110%, 05/01/2032, #634948 | 146 | 149 | ||||||
7.176%, 05/01/2032, #545717 | 435 | 440 | ||||||
4.476%, 10/01/2032, #661645 | 219 | 221 | ||||||
4.703%, 12/01/2032, #671884 | 359 | 366 | ||||||
7.172%, 04/01/2034, #775389 | 222 | 224 | ||||||
4.266%, 07/01/2034, #795242 | 3,712 | 3,722 | ||||||
7.172%, 08/01/2036, #555369 | 326 | 333 | ||||||
Government National Mortgage Association Pool | ||||||||
5.750%, 08/20/2021, #8824 | 179 | 181 | ||||||
5.750%, 07/20/2022, #8006 6 | 224 | 226 | ||||||
5.750%, 09/20/2025, #8699 | 122 | 123 | ||||||
5.375%, 04/20/2026, #8847 | 99 | 101 | ||||||
5.750%, 08/20/2027, #80106 | 35 | 35 | ||||||
6.375%, 01/20/2028, #80154 | 55 | 55 | ||||||
5.375%, 05/20/2029, #80283 6 | 193 | 197 |
The accompanying notes are an integral part of the financial statements.
50 First American Funds 2008 Annual Report
Short Term Bond Fund (continued) | ||||||||
DESCRIPTION | PAR/SHARES | VALUE | ||||||
5.875%, 11/20/2030, #80469 6 | $ | 250 | $ | 251 | ||||
5.375%, 04/20/2031, #80507 6 | 112 | 114 | ||||||
5.500%, 08/20/2031, #80535 6 | 370 | 373 | ||||||
6.500%, 02/20/2032, #80580 6 | 89 | 89 | ||||||
20,561 | ||||||||
Fixed Rate – 2.2% | ||||||||
Federal Home Loan Mortgage Corporation | ||||||||
Series K001, Class A3 | ||||||||
5.837%, 01/25/2012 | 2,714 | 2,744 | ||||||
Federal National Mortgage Association Pool | ||||||||
5.500%, 05/01/2012, #254340 | 685 | 695 | ||||||
5.000%, 03/01/2013, #254682 | 453 | 456 | ||||||
4.000%, 12/01/2013, #255039 | 3,203 | 3,150 | ||||||
7,045 | ||||||||
Total U.S. Government Agency Mortgage-Backed Securities | ||||||||
(Cost $27,847) | 27,606 | |||||||
Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities – 4.4% | ||||||||
Fixed Rate – 4.4% | ||||||||
Federal Home Loan Mortgage Corporation | ||||||||
Series 2763, Class TA | ||||||||
4.000%, 03/15/2011 | 3,480 | 3,560 | ||||||
Series 2780, Class QC | ||||||||
4.500%, 03/15/2017 6 | 5,000 | 5,017 | ||||||
Series 1022, Class J | ||||||||
6.000%, 12/15/2020 | 32 | 32 | ||||||
Series 2738, Class UA | ||||||||
3.570%, 12/15/2023 | 1,567 | 1,565 | ||||||
Series 2589, Class GK | ||||||||
4.000%, 03/15/2026 | 712 | 713 | ||||||
Federal National Mortgage Association | ||||||||
Series 1992-150, Class MA | ||||||||
5.500%, 09/25/2022 | 91 | 92 | ||||||
Series 2004-90, Class GA | ||||||||
4.350%, 03/25/2034 | 3,070 | 3,018 | ||||||
Total Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities | ||||||||
(Cost $13,721) | 13,997 | |||||||
U.S. Government & Agency Securities – 3.1% | ||||||||
U.S. Treasuries – 3.1% | ||||||||
U.S. Treasury Notes | ||||||||
2.375%, 04/15/2011 6 ◄ | 6,411 | 6,793 | ||||||
4.125%, 08/31/2012 6 | 2,795 | 2,893 | ||||||
Total U.S. Government & Agency Securities | ||||||||
(Cost $9,664) | 9,686 | |||||||
Short-Term Investments – 6.6% | ||||||||
Money Market Fund – 6.2% | ||||||||
First American Prime Obligations Fund, Class Z Å | 19,757,784 | 19,758 | ||||||
U.S. Treasury Obligations – 0.4% | ||||||||
U.S. Treasury Bills o | ||||||||
1.386%, 07/17/2008 | 180 | 180 | ||||||
1.171%, 07/24/2008 | 230 | 230 | ||||||
1.832%, 10/09/2008 | 1,020 | 1,014 | ||||||
1,424 | ||||||||
Total Short-Term Investments | ||||||||
(Cost $21,183) | 21,182 | |||||||
Investment Purchased with Proceeds from Securities Lending – 5.4% | ||||||||
Mount Vernon Securities Lending Prome Portfolio † | ||||||||
(Cost $17,029) | 17,028,968 | 17,029 | ||||||
Total Investments – 105.2% | ||||||||
(Cost $339,596) | 333,740 | |||||||
Other Assets and Liabilities, Net – (5.2)% | (16,404 | ) | ||||||
Total Net Assets – 100.0% | $ | 317,336 | ||||||
+ | Security is fair valued. As of June 30, 2008, the fair value of this investment was $0 or 0.0% of total net assets. See note 2 in Notes to Financial Statements. | |
¥ | Security considered illiquid. As of June 30, 2008, the value of these investments was $2,938 or 0.9% of total net assets. See note 2 in Notes to Financial Statements. | |
ª | Security is in default at June 30, 2008. | |
= | Non-income producing security. | |
n | Security purchased within terms of a private placement memorandum, exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other “qualified institutional buyers.” As of June 30, 2008, the value of these investments was $23,756 or 7.5% of total net assets. See note 2 in Notes to Financial Statements. | |
Δ | Variable Rate Security – The rate shown is the rate in effect as of June 30, 2008. | |
6 | This security or a portion of this security is out on loan at June 30, 2008. Total loaned securities had a value of $16,680 at June 30, 2008. See note 2 in Notes to Financial Statements. | |
¬ | Foreign denominated security values are stated is U.S. dollars. Principal amounts are U.S. dollars unless otherwise noted. | |
◄ | U.S. Treasury inflation-protected securities (TIPS) are securities in which the principal amount is adjusted for inflation and the semiannual interest payments equal a fixed percentage of the inflation-adjusted principal amount. | |
Å | 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. | |
o | Security has been deposited as initial margin on open futures contracts and/or swap agreements. Yield shown is the effective yield as of June 30, 2008. See note 2 in Notes to Financial Statements. | |
† | The fund may loan securities representing up to one third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks, or other institutional borrowers of securities. The fund maintains collateral equal to at least 100% of the value of the securities loaned. The adequacy of the collateral is monitored on a daily basis. The cash collateral received by the fund is invested in this affiliated money market. See note 2 in Notes to Financial Statements. |
REIT – | Real Estate Investment Trust |
First American Funds 2008 Annual Report 51
Schedule of Investments June 30, 2008, all dollars are rounded to thousands (000)
Short Term Bond Fund (continued)
Schedule of Open Futures Contracts
Number of | ||||||||||||||
Contracts | Notional | Unrealized | ||||||||||||
Purchased | Contract | Settlement | Appreciation | |||||||||||
Description | (Sold) | Value | Month | (Depreciation) | ||||||||||
Canadian Dollar Currency Futures | 10 | $ | 982 | September 2008 | $ | 2 | ||||||||
Japanese Yen Currency Future | (7 | ) | (829 | ) | September 2008 | (14 | ) | |||||||
U.S. Treasury 2 Year Note Futures | 367 | 77,512 | September 2008 | (69 | ) | |||||||||
U.S. Treasury 5 Year Note Futures | (173 | ) | (19,126 | ) | September 2008 | 2 | ||||||||
U.S. Treasury 10 Year Note Futures | (75 | ) | (8,544 | ) | September 2008 | (23 | ) | |||||||
U.S. Treasury Long Bonds Futures | (13 | ) | (1,503 | ) | September 2008 | (24 | ) | |||||||
$ | (126 | ) | ||||||||||||
Credit Default Swap Agreements
Pay/ | Unrealized | |||||||||||||||||||||
Reference | Buy/Sell | Receive | Expiration | Notional | Appreciation | |||||||||||||||||
Counterparty | Entity | Protection | Fixed Rate | Date | Amount | (Depreciation) | ||||||||||||||||
Bank of America | Dow Jones CDX HY10 Index | Sell | 5.000% | 06/20/2013 | $ | 2,300 | $ | (51 | ) | |||||||||||||
Bank of America | Dow Jones CDX IG10 Index | Sell | 1.550% | 06/20/2013 | 4,800 | (23 | ) | |||||||||||||||
Deutsche Bank | Dow Jones CDX HVOL9 Index | Sell | 1.400% | 12/20/2012 | 4,400 | (115 | ) | |||||||||||||||
Deutsche Bank | Dow Jones CDX HVOL10 Index | Sell | 3.500% | 06/20/2013 | 4,400 | (124 | ) | |||||||||||||||
Deutsche Bank | Dow Jones CDX IG9 Index | Sell | 0.600% | 12/20/2012 | 3,700 | (4 | ) | |||||||||||||||
Deutsche Bank | Dow Jones CDX IG10 Index | Sell | 1.550% | 06/20/2013 | 6,600 | (27 | ) | |||||||||||||||
JPMorgan | Deutsche Bank AG | Buy | 0.525% | 09/20/2012 | 700 | 10 | ||||||||||||||||
JPMorgan | Dow Jones CDX HY9 Index | Sell | 3.750% | 12/20/2012 | 1,683 | (6 | ) | |||||||||||||||
JPMorgan | Dow Jones CDX IG7 Index | Sell | 0.250% | 12/20/2009 | 25,000 | (506 | ) | |||||||||||||||
JPMorgan | Dow Jones CDX IG10 Index | Sell | 1.550% | 06/20/2013 | 3,300 | (14 | ) | |||||||||||||||
JPMorgan | Dow Jones iTRAXX Asia ex-Japan Index | Sell | 6.500% | 06/20/2013 | 600 | 17 | ||||||||||||||||
JPMorgan | GAP, Inc. | Buy | 1.230% | 12/20/2012 | 1,000 | (15 | ) | |||||||||||||||
JPMorgan | Markit ABX AAAO71 Index | Sell | 0.090% | 08/25/2037 | 1,400 | (141 | ) | |||||||||||||||
UBS | AmerisourceBergen Corporation | Buy | 0.585% | 09/20/2012 | 1,000 | 4 | ||||||||||||||||
UBS | Cardinal Health, Inc. | Buy | 0.320% | 09/20/2012 | 1,000 | 4 | ||||||||||||||||
UBS | Dow Jones CDX HVOL10 Index | Sell | 3.500% | 06/20/2013 | 1,600 | (53 | ) | |||||||||||||||
UBS | Dow Jones CDX HY10 Index | Sell | 5.000% | 06/20/2013 | 3,300 | (12 | ) | |||||||||||||||
UBS | Dow Jones CDX IG9 Index | Sell | 0.600% | 12/20/2012 | 250 | — | ||||||||||||||||
UBS | Dow Jones iTRAXX Asia ex-Japan Index | Sell | 6.500% | 06/20/2013 | 1,100 | 17 | ||||||||||||||||
UBS | Korea Government International Bond | Buy | 1.050% | 09/20/2015 | 1,400 | 7 | ||||||||||||||||
UBS | Whirlpool Corporation | Buy | 0.785% | 09/20/2017 | 1,000 | 31 | ||||||||||||||||
$ | (1,001 | ) | ||||||||||||||||||||
Short Term Bond Fund (concluded)
Interest Rate Swap Agreements
Pay/ | ||||||||||||||||||||||
Floating | Receive | Unrealized | ||||||||||||||||||||
Rate | Floating | Fixed | Expiration | Notional | Appreciation | |||||||||||||||||
Counterparty | Index | Rate | Rate | Date | Amount | (Depreciation) | ||||||||||||||||
JPMorgan | 3-Month LIBOR | Pay | 3.958% | 06/17/2010 | $ | 8,000 | $ | 62 | ||||||||||||||
UBS | 3-Month LIBOR | Pay | 5.180% | 08/02/2010 | 34,000 | 1,076 | ||||||||||||||||
UBS | 3-Month LIBOR | Pay | 3.418% | 05/30/2010 | 9,000 | (14 | ) | |||||||||||||||
UBS | 3-Month LIBOR | Pay | 2.795% | 04/18/2010 | 8,000 | (102 | ) | |||||||||||||||
$ | 1,022 | |||||||||||||||||||||
The accompanying notes are an integral part of the financial statements.
52 First American Funds 2008 Annual Report
Total Return Bond Fund | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Corporate Bonds – 41.7% | ||||||||
Banking – 7.7% | ||||||||
Bank of America | ||||||||
5.750%, 12/01/2017 | $ | 5,460 | $ | 5,127 | ||||
8.000%, 12/29/2049 Δ | 10,240 | 9,593 | ||||||
Citigroup | ||||||||
6.875%, 03/05/2038 | 2,550 | 2,461 | ||||||
8.400%, 04/29/2049 Δ | 9,115 | 8,665 | ||||||
Citigroup Capital XXI | ||||||||
8.300%, 12/21/2057 Δ | 7,520 | 7,101 | ||||||
Fifth Third Bancorp | ||||||||
6.250%, 05/01/2013 | 3,480 | 3,185 | ||||||
HSBC Holdings | ||||||||
6.800%, 06/01/2038 | 4,520 | 4,257 | ||||||
JPMorgan Chase | ||||||||
6.000%, 01/15/2018 | 3,100 | 3,020 | ||||||
Series 1 | ||||||||
7.900%, 04/29/2049 Δ | 8,890 | 8,336 | ||||||
JPMorgan Chase Capital XX | ||||||||
Series T | ||||||||
6.550%, 09/29/2036 | 3,870 | 3,347 | ||||||
Lloyds | ||||||||
6.267%, 12/31/2049 Δ n | 3,260 | 2,600 | ||||||
National City Preferred Capital Trust I | ||||||||
12.000%, 12/29/2049 Δ | 2,060 | 1,965 | ||||||
PNC Financial Services | ||||||||
8.250%, 05/29/2049 Δ 6 | 3,510 | 3,502 | ||||||
UBS Preferred Funding Trust V | ||||||||
6.243%, 05/29/2049 Δ | 3,630 | 3,181 | ||||||
Wachovia | ||||||||
5.750%, 02/01/2018 | 4,395 | 4,006 | ||||||
7.980%, 02/28/2049 Δ | 6,500 | 5,970 | ||||||
Washington Mutual Preferred IV | ||||||||
9.750%, 10/29/2049 Δ n 6 | 2,650 | 2,087 | ||||||
Wells Fargo | ||||||||
5.625%, 12/11/2017 | 2,140 | 2,070 | ||||||
Wells Fargo Capital X | ||||||||
5.950%, 12/15/2036 | 945 | 857 | ||||||
Wells Fargo Capital XIII | ||||||||
Series GMTN | ||||||||
7.700%, 12/29/2049 Δ | 2,660 | 2,644 | ||||||
83,974 | ||||||||
Basic Industry – 3.5% | ||||||||
Arcelormittal | ||||||||
5.375%, 06/01/2013 n | 4,645 | 4,574 | ||||||
6.125%, 06/01/2018 n | 3,780 | 3,694 | ||||||
Berry Plastics | ||||||||
7.484%, 02/15/2015 Δ | 1,750 | 1,676 | ||||||
Braskem Finance | ||||||||
7.250%, 06/05/2018 n Æ | 3,380 | 3,346 | ||||||
Celulosa Arauco Y Constitucion | ||||||||
8.625%, 08/15/2010 | 1,500 | 1,610 | ||||||
Evraz Group | ||||||||
8.250%, 11/10/2015 n Æ | 1,425 | 1,393 | ||||||
9.500%, 04/24/2018 n Æ | 1,845 | 1,850 | ||||||
FMG Finance | ||||||||
10.000%, 09/01/2013 n Æ | 1,185 | 1,301 | ||||||
Freeport-McMoran Copper & Gold | ||||||||
8.375%, 04/01/2017 | 1,745 | 1,841 | ||||||
Georgia-Pacific | ||||||||
7.125%, 01/15/2017 n | 1,200 | 1,128 | ||||||
Griffin Coal Mining | ||||||||
9.500%, 12/01/2016 n Æ | 1,410 | 1,121 | ||||||
International Paper | ||||||||
8.700%, 06/15/2038 | 1,545 | 1,556 | ||||||
Noble Group Limited | ||||||||
6.625%, 03/17/2015 n Æ | 1,665 | 1,458 | ||||||
Nova Chemicals | ||||||||
6.500%, 01/15/2012 Æ | 1,995 | 1,785 | ||||||
Rio Tinto Financial U.S.A. | ||||||||
6.500%, 07/15/2018 | 2,325 | 2,332 | ||||||
Southern Copper | ||||||||
7.500%, 07/27/2035 | 1,265 | 1,239 | ||||||
Teck Cominco Limited | ||||||||
6.125%, 10/01/2035 | 1,575 | 1,385 | ||||||
U.S. Steel | ||||||||
7.000%, 02/01/2018 | 2,250 | 2,245 | ||||||
Vale Overseas | ||||||||
6.250%, 01/11/2016 | 1,020 | 996 | ||||||
Vedanta Resources | ||||||||
9.500%, 07/18/2018 n Æ « | 1,705 | 1,696 | ||||||
38,226 | ||||||||
Brokerage – 4.7% | ||||||||
Bear Stearns | ||||||||
7.250%, 02/01/2018 | 4,385 | 4,576 | ||||||
Goldman Sachs Capital II | ||||||||
5.793%, 12/29/2049 Δ | 8,125 | 5,650 | ||||||
Goldman Sachs Group | ||||||||
6.150%, 04/01/2018 | 6,355 | 6,165 | ||||||
6.750%, 10/01/2037 | 6,085 | 5,566 | ||||||
Lehman Brothers Holdings | ||||||||
6.500%, 07/19/2017 | 2,355 | 2,179 | ||||||
Series MTN | ||||||||
5.625%, 01/24/2013 | 3,325 | 3,147 | ||||||
6.875%, 05/02/2018 | 2,700 | 2,614 | ||||||
Merrill Lynch | ||||||||
5.450%, 02/05/2013 | 3,490 | 3,292 | ||||||
6.050%, 05/16/2016 | 6,235 | 5,752 | ||||||
Morgan Stanley | ||||||||
5.375%, 10/15/2015 | 3,895 | 3,564 | ||||||
Series MTN | ||||||||
6.625%, 04/01/2018 | 9,500 | 9,001 | ||||||
51,506 | ||||||||
Capital Goods – 0.5% | ||||||||
Martin Marietta Material | ||||||||
6.600%, 04/15/2018 | 850 | 844 | ||||||
Siemens Financiering | ||||||||
6.125%, 08/17/2026 n | 1,350 | 1,296 | ||||||
USG | ||||||||
8.000%, 01/15/2018 | 3,450 | 3,019 | ||||||
5,159 | ||||||||
Communications – 3.5% | ||||||||
AT&T | ||||||||
5.500%, 02/01/2018 | 3,185 | 3,086 | ||||||
6.300%, 01/15/2038 | 1,290 | 1,219 | ||||||
British Sky Broadcasting | ||||||||
6.100%, 02/15/2018 n | 3,700 | 3,640 | ||||||
British Telecom | ||||||||
5.950%, 01/15/2018 | 3,550 | 3,394 | ||||||
Comcast | ||||||||
5.300%, 01/15/2014 | 2,705 | 2,622 | ||||||
6.300%, 11/15/2017 | 4,235 | 4,197 | ||||||
6.400%, 05/15/2038 | 1,850 | 1,707 | ||||||
DirecTV Holdings | ||||||||
7.625%, 05/15/2016 n | 1,265 | 1,246 | ||||||
Embarq | ||||||||
7.082%, 06/01/2016 | 1,545 | 1,467 | ||||||
Idearc | ||||||||
8.000%, 11/15/2016 | 1,185 | 745 |
First American Funds 2008 Annual Report 53
Schedule of Investments June 30, 2008, all dollars are rounded to thousands (000)
Total Return Bond Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
News America | ||||||||
6.650%, 11/15/2037 | $ | 2,100 | $ | 2,050 | ||||
Time Warner Cable | ||||||||
7.300%, 07/01/2038 | 3,235 | 3,215 | ||||||
Verizon Communications | ||||||||
5.250%, 04/15/2013 | 4,865 | 4,837 | ||||||
6.900%, 04/15/2038 | 3,620 | 3,578 | ||||||
Vimpelcom | ||||||||
8.250%, 05/23/2016 n Æ | 1,110 | 1,086 | ||||||
38,089 | ||||||||
Consumer Cyclical – 2.1% | ||||||||
CVS Caremark | ||||||||
6.302%, 06/01/2037 Δ | 2,660 | 2,281 | ||||||
Galaxy Entertainment | ||||||||
9.875%, 12/15/2012 n Æ | 575 | 558 | ||||||
Home Depot | ||||||||
5.875%, 12/16/2036 | 1,540 | 1,258 | ||||||
Lippo Karawaci Finance | ||||||||
8.875%, 03/09/2011 Æ | 1,075 | 1,043 | ||||||
Marfrig Overseas | ||||||||
9.625%, 11/16/2016 n Æ | 1,260 | 1,210 | ||||||
McDonald’s | ||||||||
Series MTN | ||||||||
5.350%, 03/01/2018 | 2,695 | 2,629 | ||||||
Rite Aid | ||||||||
7.500%, 03/01/2017 | 1,100 | 888 | ||||||
Royal Caribbean Cruises | ||||||||
7.000%, 06/15/2013 Æ | 1,735 | 1,535 | ||||||
Shimao Property Holdings | ||||||||
8.000%, 12/01/2016 n Æ | 1,110 | 777 | ||||||
Target | ||||||||
7.000%, 01/15/2038 | 3,875 | 3,973 | ||||||
Viacom | ||||||||
6.875%, 04/30/2036 | 1,975 | 1,855 | ||||||
Wal-Mart Stores | ||||||||
6.200%, 04/15/2038 | 2,205 | 2,167 | ||||||
Whirlpool | ||||||||
Series MTN | ||||||||
5.500%, 03/01/2013 | 3,165 | 3,128 | ||||||
23,302 | ||||||||
Consumer Non Cyclical – 2.4% | ||||||||
AmerisourceBergen | ||||||||
5.625%, 09/15/2012 | 2,000 | 1,988 | ||||||
Cardinal Health | ||||||||
6.750%, 02/15/2011 | 2,500 | 2,588 | ||||||
Constellation Brands | ||||||||
7.250%, 05/15/2017 | 2,000 | 1,870 | ||||||
Covidien International | ||||||||
6.550%, 10/15/2037 | 3,035 | 3,061 | ||||||
Fisher Scientific International | ||||||||
6.750%, 08/15/2014 | 785 | 804 | ||||||
Glaxosmithkline Capital | ||||||||
4.850%, 05/15/2013 | 4,470 | 4,464 | ||||||
HCA | ||||||||
9.250%, 11/15/2016 | 1,215 | 1,251 | ||||||
Kraft Foods | ||||||||
6.500%, 08/11/2017 | 5,100 | 5,107 | ||||||
Smithfield Foods | ||||||||
7.000%, 08/01/2011 | 2,200 | 2,008 | ||||||
UnitedHealth Group | ||||||||
6.875%, 02/15/2038 | 1,970 | 1,864 | ||||||
Vitro | ||||||||
9.125%, 02/01/2017 Æ | 1,265 | 1,003 | ||||||
26,008 | ||||||||
Electric – 1.8% | ||||||||
Dynegy Holdings | ||||||||
7.750%, 06/01/2019 | 1,385 | 1,260 | ||||||
Energy Future Holdings | ||||||||
10.875%, 11/01/2017 n | 2,480 | 2,505 | ||||||
ISA Capital Brasil | ||||||||
8.800%, 01/30/2017 n Æ | 1,400 | 1,456 | ||||||
MidAmerican Energy Holdings | ||||||||
6.125%, 04/01/2036 | 2,630 | 2,526 | ||||||
Ohio Power | ||||||||
Series K | ||||||||
6.000%, 06/01/2016 | 1,685 | 1,672 | ||||||
Oncor Electric Delivery | ||||||||
7.000%, 05/01/2032 | 2,210 | 2,115 | ||||||
Pacific Gas & Electric | ||||||||
6.050%, 03/01/2034 | 1,590 | 1,533 | ||||||
Taqa Abu Dhabi National Energy | ||||||||
6.165%, 10/25/2017 n | 2,455 | 2,425 | ||||||
Transalta | ||||||||
6.650%, 05/15/2018 | 2,305 | 2,259 | ||||||
Virginia Electric Power | ||||||||
5.950%, 09/15/2017 | 1,550 | 1,558 | ||||||
19,309 | ||||||||
Energy – 2.5% | ||||||||
Canadian National Resources | ||||||||
5.900%, 02/01/2018 | 3,355 | 3,334 | ||||||
Encana | ||||||||
6.500%, 02/01/2038 | 1,495 | 1,479 | ||||||
Lukoil International Finance | ||||||||
6.356%, 06/07/2017 n | 670 | 631 | ||||||
6.656%, 06/07/2022 n | 2,585 | 2,349 | ||||||
Marathon Oil | ||||||||
5.900%, 03/15/2018 | 3,405 | 3,365 | ||||||
Mariner Energy | ||||||||
7.500%, 04/15/2013 | 1,530 | 1,484 | ||||||
Nexen | ||||||||
6.400%, 05/15/2037 | 2,240 | 2,121 | ||||||
Petro-Canada | ||||||||
6.800%, 05/15/2038 | 2,120 | 2,077 | ||||||
Pioneer Natural Resource | ||||||||
6.650%, 03/15/2017 | 1,620 | 1,520 | ||||||
Suncor Energy | ||||||||
6.100%, 06/01/2018 | 1,700 | 1,705 | ||||||
Tengizchevroil Finance | ||||||||
6.124%, 11/15/2014 n | 1,161 | 1,117 | ||||||
Tesoro | ||||||||
6.625%, 11/01/2015 | 1,315 | 1,213 | ||||||
Weatherford International | ||||||||
7.000%, 03/15/2038 | 1,260 | 1,292 | ||||||
Whiting Petroleum | ||||||||
7.000%, 02/01/2014 | 1,650 | 1,619 | ||||||
XTO Energy | ||||||||
6.375%, 06/15/2038 | 1,640 | 1,567 | ||||||
26,873 | ||||||||
Finance – 2.3% | ||||||||
Capital One Financial | ||||||||
6.150%, 09/01/2016 Δ | 2,265 | 1,997 | ||||||
CIT Group | ||||||||
5.650%, 02/13/2017 | 850 | 586 | ||||||
Countrywide Financial | ||||||||
6.250%, 05/15/2016 | 3,850 | 3,428 | ||||||
Credit Agricole | ||||||||
6.637%, 05/29/2049 Δ n | 2,190 | 1,824 |
The accompanying notes are an integral part of the financial statements.
54 First American Funds 2008 Annual Report
Total Return Bond Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
General Electric Capital | ||||||||
5.625%, 05/01/2018 | $ | 1,915 | $ | 1,852 | ||||
Series MTN | ||||||||
5.875%, 01/14/2038 | 1,400 | 1,269 | ||||||
ILFC E-Capital Trust I | ||||||||
5.900%, 12/21/2065 Δ n | 2,815 | 2,279 | ||||||
International Lease Finance | ||||||||
6.375%, 03/25/2013 | 1,605 | 1,465 | ||||||
Janus Capital Group | ||||||||
6.700%, 06/15/2017 | 1,700 | 1,631 | ||||||
Rockies Express Pipeline | ||||||||
7.500%, 07/15/2038 n | 1,760 | 1,785 | ||||||
RSHB Capital | ||||||||
7.750%, 05/29/2018 n | 2,120 | 2,078 | ||||||
SLM | ||||||||
Series MTN | ||||||||
5.400%, 10/25/2011 | 1,935 | 1,767 | ||||||
Transcapitalinvest | ||||||||
5.670%, 03/05/2014 n | 3,490 | 3,264 | ||||||
25,225 | ||||||||
Insurance – 2.5% | ||||||||
Allied World Assurance | ||||||||
7.500%, 08/01/2016 | 3,070 | 2,873 | ||||||
American International Group | ||||||||
8.175%, 05/15/2058 Δ n | 5,405 | 5,087 | ||||||
Chubb | ||||||||
5.750%, 05/15/2018 | 4,440 | 4,303 | ||||||
Genworth Financial | ||||||||
Series MTN | ||||||||
6.515%, 05/22/2018 | 2,640 | 2,471 | ||||||
Hartford Financial Services Group | ||||||||
Series MTN | ||||||||
6.000%, 01/15/2019 | 3,275 | 3,148 | ||||||
Liberty Mutual Group | ||||||||
7.000%, 03/15/2037 Δ n | 1,705 | 1,436 | ||||||
MBIA Insurance | ||||||||
14.000%, 01/15/2033 Δ n | 2,055 | 853 | ||||||
MetLife Capital Trust IV | ||||||||
7.875%, 12/15/2037 n | 2,220 | 2,176 | ||||||
ZFS Finance USA Trust V | ||||||||
6.500%, 05/09/2037 Δ n | 5,495 | 4,796 | ||||||
27,143 | ||||||||
Natural Gas – 0.6% | ||||||||
Enterprise Products | ||||||||
8.375%, 08/01/2066 | 860 | 860 | ||||||
Kinder Morgan Energy Partners | ||||||||
Series MTN | ||||||||
6.950%, 01/15/2038 | 1,920 | 1,906 | ||||||
NGPL Pipeco | ||||||||
7.119%, 12/15/2017 n | 1,585 | 1,620 | ||||||
Southern Union | ||||||||
7.200%, 11/01/2066 | 715 | 577 | ||||||
Transocean | ||||||||
6.000%, 03/15/2018 | 1,180 | 1,182 | ||||||
Transport De Gas Del Sur | ||||||||
7.875%, 05/14/2017 n Æ | 1,250 | 962 | ||||||
7,107 | ||||||||
Other Utility – 0.1% | ||||||||
American Water Capital | ||||||||
6.085%, 10/15/2017 | 1,730 | 1,659 | ||||||
Real Estate – 1.1% | ||||||||
Greentown China Holdings – REIT | ||||||||
9.000%, 11/08/2013 n Æ | 1,685 | 1,173 | ||||||
Health Care Properties – REIT | ||||||||
Series MTN | ||||||||
6.300%, 09/15/2016 | 5,200 | 4,635 | ||||||
iStar Financial – REIT | ||||||||
8.625%, 06/01/2013 | 2,980 | 2,727 | ||||||
Prologis 2006 – REIT | ||||||||
5.750%, 04/01/2016 | 3,395 | 3,198 | ||||||
11,733 | ||||||||
Sovereigns – 3.3% | ||||||||
Australian Government | ||||||||
5.250%, 03/15/2019 ¬ | AUD | 6,600 | 5,741 | |||||
U.K. Government Treasury | ||||||||
5.250%, 06/07/2012 ¬ | GBP | 10,800 | 21,533 | |||||
United Kingdom Gilt Treasury | ||||||||
4.750%, 03/07/2020 ¬ | GBP | 4,400 | 8,434 | |||||
35,708 | ||||||||
Technology – 2.3% | ||||||||
Amkor Technologies | ||||||||
9.250%, 06/01/2016 | 1,195 | 1,138 | ||||||
Celestica | ||||||||
7.875%, 07/01/2011 Æ | 1,840 | 1,840 | ||||||
Chartered Semiconductor | ||||||||
6.375%, 08/03/2015 | 590 | 565 | ||||||
Computer Sciences | ||||||||
6.500%, 03/15/2018 n | 2,485 | 2,497 | ||||||
First Data | ||||||||
9.875%, 09/24/2015 n | 1,260 | 1,096 | ||||||
IBM | ||||||||
5.700%, 09/14/2017 | 8,240 | 8,363 | ||||||
Jabil Circuit | ||||||||
5.875%, 07/15/2010 | 3,035 | 2,963 | ||||||
LG Electronics | ||||||||
5.000%, 06/17/2010 n | 785 | 773 | ||||||
National Semiconductor | ||||||||
6.600%, 06/15/2017 | 3,245 | 3,206 | ||||||
NXP BV/NXP Funding | ||||||||
9.500%, 10/15/2015 6 Æ | 1,215 | 1,057 | ||||||
Seagate Technology | ||||||||
6.375%, 10/01/2011 Æ | 1,810 | 1,751 | ||||||
25,249 | ||||||||
Transportation – 0.8% | ||||||||
BLT Finance BV | ||||||||
7.500%, 05/15/2014 n Æ | 1,450 | 946 | ||||||
Canadian Pacific Railroad | ||||||||
6.500%, 05/15/2018 | 4,880 | 4,835 | ||||||
Erac USA Finance | ||||||||
6.375%, 10/15/2017 n | 1,915 | 1,711 | ||||||
Ultrapetrol | ||||||||
9.000%, 11/24/2014 Æ | 900 | 851 | ||||||
8,343 | ||||||||
Total Corporate Bonds | ||||||||
(Cost $475,789) | 454,613 | |||||||
U.S. Government Agency Mortgage-Backed Securities – 20.4% | ||||||||
Adjustable Rate Δ – 2.0% | ||||||||
Federal Home Loan Mortgage Corporation Pool | ||||||||
6.696%, 10/01/2029, #1L0117 | 843 | 860 | ||||||
6.507%, 07/01/2030, #847240 | 952 | 961 | ||||||
5.682%, 05/01/2033, #847411 | 644 | 649 | ||||||
5.771%, 07/01/2036, #1K1238 6 | 2,813 | 2,875 |
First American Funds 2008 Annual Report 55
Schedule of Investments June 30, 2008, all dollars are rounded to thousands (000)
Total Return Bond Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Federal National Mortgage Association Pool | ||||||||
6.286%, 09/01/2033, #725553 | $ | 404 | $ | 410 | ||||
5.270%, 11/01/2034, #735054 6 | 1,486 | 1,492 | ||||||
6.939%, 01/01/2035, #745548 | 904 | 923 | ||||||
5.310%, 12/01/2035, #850865 6 | 5,552 | 5,623 | ||||||
5.624%, 08/01/2037, #888612 6 | 8,487 | 8,613 | ||||||
22,406 | ||||||||
Fixed Rate – 18.4% | ||||||||
Federal Home Loan Mortgage Corporation Pool | ||||||||
6.500%, 07/01/2031, #A17212 | 2,530 | 2,631 | ||||||
7.000%, 08/01/2037, #H09059 6 | 5,482 | 5,693 | ||||||
Federal National Mortgage Association Pool | ||||||||
5.500%, 12/01/2018, #735575 | 1,367 | 1,390 | ||||||
5.500%, 02/01/2025, #255628 | 2,371 | 2,368 | ||||||
5.500%, 10/01/2025, #255956 | 11,530 | 11,502 | ||||||
5.500%, 03/01/2027, #256640 | 8,545 | 8,513 | ||||||
6.000%, 08/01/2027, #256852 | 4,775 | 4,852 | ||||||
6.000%, 04/01/2032, #745101 | 863 | 876 | ||||||
5.500%, 06/01/2033, #843435 | 978 | 971 | ||||||
5.500%, 10/01/2033, #555800 | 3,086 | 3,060 | ||||||
5.500%, 11/01/2033, #555967 | 5,678 | 5,630 | ||||||
5.000%, 03/01/2034, #725205 | 1,129 | 1,089 | ||||||
5.000%, 03/01/2034, #725250 | 1,018 | 982 | ||||||
6.000%, 03/01/2034, #745324 6 | 1,620 | 1,648 | ||||||
5.500%, 04/01/2034, #725424 6 | 2,705 | 2,682 | ||||||
5.000%, 05/01/2034, #255189 | 6,503 | 6,265 | ||||||
5.000%, 05/01/2034, #725456 | 1,006 | 969 | ||||||
5.500%, 08/01/2034, #745563 | 1,879 | 1,863 | ||||||
5.500%, 09/01/2034, #725773 | 1,739 | 1,721 | ||||||
6.000%, 04/01/2035, #735503 | 2,846 | 2,888 | ||||||
5.500%, 05/01/2035, #735500 | 24,866 | 24,586 | ||||||
5.500%, 08/01/2035, #829679 | 4,146 | 4,100 | ||||||
5.500%, 09/01/2035, #842230 | 2,113 | 2,089 | ||||||
5.500%, 10/01/2035, #735899 | 2,524 | 2,498 | ||||||
6.000%, 01/01/2036, #831215 | 2,680 | 2,710 | ||||||
6.000%, 01/01/2036, #852347 | 2,610 | 2,637 | ||||||
6.500%, 04/01/2036, #831377 | 1,231 | 1,269 | ||||||
6.500%, 04/01/2036, #852909 | 760 | 784 | ||||||
6.500%, 07/01/2036, #831683 | 1,863 | 1,921 | ||||||
6.500%, 08/01/2036, #893318 | 1,705 | 1,757 | ||||||
6.500%, 09/01/2036, #831799 | 5,661 | 5,836 | ||||||
6.500%, 09/01/2036, #897129 6 | 13,903 | 14,333 | ||||||
6.000%, 11/01/2036, #870962 | 7,050 | 7,122 | ||||||
6.000%, 11/01/2036, #902786 | 4,946 | 4,997 | ||||||
5.500%, 01/01/2037, #906059 | 5,330 | 5,263 | ||||||
6.000%, 09/01/2037, #256890 6 | 2,731 | 2,737 | ||||||
6.000%, 07/14/2038 « | 22,040 | 22,233 | ||||||
5.500%, 07/15/2038 « | 26,525 | 26,144 | ||||||
200,609 | ||||||||
Total U.S. Government Agency Mortgage-Backed Securities | ||||||||
(Cost $222,236) | 223,015 | |||||||
Asset-Backed Securities – 18.1% | ||||||||
Automotive – 0.2% | ||||||||
FTN Financial Auto Securitization Trust | ||||||||
Series 2004-A, Class A | ||||||||
2.550%, 06/15/2010 n ¥ | 67 | 67 | ||||||
Hertz Vehicle Financing | ||||||||
Series 2005-2A, Class A6 | ||||||||
5.080%, 11/25/2011 n | 2,690 | 2,521 | ||||||
2,588 | ||||||||
Credit Cards – 2.0% | ||||||||
American Express Issuance Trust | ||||||||
Series 2005-1, Class C | ||||||||
2.844%, 08/15/2011 Δ | 2,250 | 2,131 | ||||||
Bank of America Credit Card Trust | ||||||||
Series 2006-C4, Class C4 | ||||||||
2.701%, 11/15/2011 Δ | 2,500 | 2,447 | ||||||
Series 2007-A8, Class A8 | ||||||||
5.590%, 11/17/2014 | 5,115 | 5,259 | ||||||
Chase Issuance Trust | ||||||||
Series 2007-A17, Class A | ||||||||
5.120%, 10/15/2014 | 4,870 | 4,922 | ||||||
Citibank Credit Card Issuance Trust | ||||||||
Series 2006-A4, Class A4 | ||||||||
5.450%, 05/10/2013 | 1,860 | 1,905 | ||||||
Discover Card Master Trust | ||||||||
Series 2007-C1, Class C1 | ||||||||
2.791%, 01/15/2013 Δ | 2,370 | 2,162 | ||||||
Series 2007-A1, Class A1 | ||||||||
5.650%, 03/16/2020 | 1,655 | 1,609 | ||||||
Washington Mutual Master Note Trust | ||||||||
Series 2007-C1, Class C1 | ||||||||
2.871%, 05/15/2014 Δ n | 2,150 | 1,655 | ||||||
22,090 | ||||||||
Home Equity – 0.0% | ||||||||
GRMT Mortgage Loan Trust | ||||||||
Series 2001-1A, Class M1 | ||||||||
7.772%, 07/20/2031 n ¥ | 184 | 154 | ||||||
Manufactured Housing – 0.2% | ||||||||
Green Tree Financial | ||||||||
Series 1996-8, Class A7 | ||||||||
8.050%, 10/15/2027 Δ | 274 | 286 | ||||||
Origen Manufactured Housing | ||||||||
Series 2005-A, Class A2 | ||||||||
4.490%, 05/15/2018 | 1,316 | 1,303 | ||||||
1,589 | ||||||||
Other – 15.7% | ||||||||
Banc of America Commercial Mortgage | ||||||||
Series 2006-2, Class A4 | ||||||||
5.929%, 05/10/2045 Δ | 785 | 767 | ||||||
Series 2005-5, Class AM | ||||||||
5.176%, 10/10/2045 Δ | 4,445 | 4,190 | ||||||
Bear Stearns Commercial Mortgage Securities | ||||||||
Series 2005-PW10, Class A4 | ||||||||
5.405%, 12/11/2040 Δ | 8,765 | 8,500 | ||||||
Series 2007-T28, Class D | ||||||||
5.992%, 09/11/2042 Δ n | 1,780 | 1,144 | ||||||
Series 2007-PW18, Class AJ | ||||||||
6.210%, 06/11/2050 Δ | 2,335 | 1,917 | ||||||
Citigroup Commercial Mortgage Trust | ||||||||
Series 2008-C7, Class AJ | ||||||||
6.299%, 12/10/2049 Δ | 1,595 | 1,299 | ||||||
Citigroup/Deutsche Bank Commercial Mortgage Trust | ||||||||
Series 2007-CD4, Class A2B | ||||||||
5.205%, 12/11/2049 | 1,360 | 1,323 | ||||||
Commercial Mortgage Pass-Through Certificates | ||||||||
Series 2006-CN2A, Class A2FX | ||||||||
5.449%, 02/05/2019 n | 1,805 | 1,799 | ||||||
Series 2004-RS1, Class A | ||||||||
4.018%, 03/03/2041 n ¥ | 2,186 | 1,885 | ||||||
Series 2005-LP5, Class A2 | ||||||||
4.630%, 05/10/2043 | 5,639 | 5,611 |
The accompanying notes are an integral part of the financial statements.
56 First American Funds 2008 Annual Report
Total Return Bond Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
GE Capital Commercial Mortgage Corporation | ||||||||
Series 2005-C3, Class A2 | ||||||||
4.853%, 07/10/2045 | $ | 7,405 | $ | 7,375 | ||||
Global Signal Trust | ||||||||
Series 2006-1, Class C | ||||||||
5.707%, 02/15/2036 n | 2,000 | 1,918 | ||||||
GMAC Commercial Mortgage Securities | ||||||||
Series 2005-C1, Class A2 | ||||||||
4.471%, 05/10/2043 | 14,148 | 14,043 | ||||||
Greenwich Capital Commercial Funding | ||||||||
Series 2003-C1, Class A2 | ||||||||
3.285%, 07/05/2035 | 799 | 779 | ||||||
Series 2005-GG5, Class A2 | ||||||||
5.117%, 04/10/2037 | 13,745 | 13,717 | ||||||
Series 2005-GG5, Class A5 | ||||||||
5.000%, 04/10/2037 Δ | 4 | 4 | ||||||
Series 2007-GG11, Class A4 | ||||||||
5.736%, 12/10/2049 | 11,285 | 10,667 | ||||||
Series 2007-GG11, Class AJ | ||||||||
6.207%, 12/10/2049 Δ | 4,810 | 3,898 | ||||||
GS Mortgage Securities II | ||||||||
Series 2006-GG6, Class A2 | ||||||||
5.506%, 04/10/2038 Δ | 9,450 | 9,439 | ||||||
Series 2006-GG8, Class A2 | ||||||||
5.479%, 11/10/2039 | 13,440 | 13,328 | ||||||
Series 2006-GG8, Class A4 | ||||||||
5.560%, 11/10/2039 | 3,135 | 3,001 | ||||||
Series 2007-GG10, Class A4 | ||||||||
5.993%, 08/10/2045 Δ | 11,620 | 11,111 | ||||||
Series 2006-RR2, Class A1 | ||||||||
5.687%, 06/23/2046 Δ n ¥ | 1,523 | 1,157 | ||||||
JPMorgan Chase Commercial Mortgage Securities | ||||||||
Series 2005-LDP5, Class B | ||||||||
5.334%, 12/15/2044 Δ | 1,490 | 1,302 | ||||||
Series 2007-CB20, Class AJ | ||||||||
6.099%, 02/12/2051 Δ | 2,085 | 1,700 | ||||||
LB-UBS Commercial Mortgage Trust | ||||||||
Series 2004-C2, Class A2 | ||||||||
3.246%, 03/15/2029 | 10,000 | 9,927 | ||||||
Series 2005-C7, Class A2 | ||||||||
5.103%, 11/15/2030 | 2,500 | 2,494 | ||||||
Series 2008-C1, Class AJ | ||||||||
6.317%, 04/15/2041 Δ | 1,585 | 1,286 | ||||||
Merrill Lynch Mortgage Trust | ||||||||
Series 2005-CIP1, Class C | ||||||||
5.301%, 07/12/2038 Δ | 1,730 | 1,461 | ||||||
Series 2005-LC1, Class AM | ||||||||
5.266%, 01/12/2044 Δ | 3,500 | 3,326 | ||||||
Series 2008-C1, Class A4 | ||||||||
5.690%, 02/12/2051 | 5,825 | 5,704 | ||||||
Merrill Lynch/Countrywide Commercial Mortgage Trust | ||||||||
Series 2007-8, Class AM | ||||||||
6.156%, 08/12/2049 Δ | 4,400 | 4,000 | ||||||
Morgan Stanley Capital I | ||||||||
Series 2003-IQ6, Class A4 | ||||||||
4.970%, 12/15/2041 | 5,112 | 4,913 | ||||||
Series 2005-HQ6, Class B | ||||||||
5.152%, 08/13/2042 Δ | 745 | 645 | ||||||
Series 2005-HQ6, Class C | ||||||||
5.172%, 08/13/2042 Δ | 705 | 605 | ||||||
Morgan Stanley Dean Witter Capital I | ||||||||
Series 2002-TOP7, Class A2 | ||||||||
5.980%, 01/15/2039 | 6,440 | 6,620 | ||||||
Small Business Administration | ||||||||
Series 2006-P10B, Class 1 | ||||||||
5.681%, 08/10/2016 | 3,940 | 4,012 | ||||||
Wachovia Bank Commercial Mortgage Trust | ||||||||
Series 2007-C34, Class AJ | ||||||||
6.146%, 05/15/2046 Δ | 2,905 | 2,343 | ||||||
Series 2007-C33, Class AJ | ||||||||
6.100%, 02/15/2051 Δ | 2,745 | 2,212 | ||||||
171,422 | ||||||||
Total Asset-Backed Securities | ||||||||
(Cost $202,272) | 197,843 | |||||||
Collateralized Mortgage Obligation – Private Mortgage-Backed Securities – 14.3% | ||||||||
Adjustable Rate Δ – 4.6% | ||||||||
Citigroup Mortgage Loan Trust | ||||||||
Series 2004-HYB4, Class HAII | ||||||||
5.346%, 10/25/2034 | 9,259 | 7,463 | ||||||
Series 2005-7, Class 2A1A | ||||||||
4.862%, 09/25/2035 | 1,572 | 1,503 | ||||||
Countrywide Alternative Loan Trust | ||||||||
Series 2006-OA17, Class 1A1A | ||||||||
2.674%, 12/20/2046 | 3,925 | 2,745 | ||||||
Countrywide Home Loans | ||||||||
Series 2004-2, Class 2A1 | ||||||||
5.290%, 02/25/2034 | 1,671 | 1,649 | ||||||
Series 2006-HYB5, Class 3A1A | ||||||||
5.964%, 09/20/2036 | 6,775 | 5,243 | ||||||
GSR Mortgage Loan Trust | ||||||||
Series 2005-AR1, Class B1 | ||||||||
5.458%, 01/25/2035 | 2,147 | 1,713 | ||||||
Harborview Mortgage Loan Trust | ||||||||
Series 2006-1, Class 2A1A | ||||||||
2.738%, 03/19/2037 | 6,482 | 4,560 | ||||||
Series 2007-4, Class 2A1 | ||||||||
2.718%, 07/19/2047 | 6,516 | 4,432 | ||||||
Indymac Index Mortgage Loan Trust | ||||||||
Series 2005-AR1, Class 4A1 | ||||||||
5.349%, 03/25/2035 | 809 | 660 | ||||||
JPMorgan Alternative Loan Trust | ||||||||
Series 2007-S1, Class A1 | ||||||||
3.175%, 04/25/2047 | 2,829 | 2,257 | ||||||
JPMorgan Mortgage Trust | ||||||||
Series 2004-A1, Class 3A1 | ||||||||
4.992%, 02/25/2034 | 3,863 | 3,656 | ||||||
Series 2006-A7, Class 3A4 | ||||||||
5.946%, 01/25/2037 | 2,824 | 2,134 | ||||||
Residential Funding Mortgage Securities I | ||||||||
Series 2006-SA2, Class 4A1 | ||||||||
5.868%, 08/25/2036 | 2,767 | 2,526 | ||||||
Wachovia Mortgage Loan Trust | ||||||||
Series 2005-B, Class 1A1 | ||||||||
4.940%, 10/20/2035 | 1,038 | 990 | ||||||
Washington Mutual Pass-Through Certificates | ||||||||
Series 2004-AR7, Class A6 | ||||||||
3.941%, 07/25/2034 | 2,630 | 2,598 | ||||||
Wells Fargo Mortgage Backed Securities Trust | ||||||||
Series 2005-AR10, Class 2A5 | ||||||||
4.109%, 06/25/2035 | 2,350 | 2,313 | ||||||
Series 2006-AR1, Class 2A2 | ||||||||
5.551%, 03/25/2036 | 3,762 | 3,652 | ||||||
50,094 | ||||||||
First American Funds 2008 Annual Report 57
Schedule of Investments June 30, 2008, all dollars are rounded to thousands (000)
Total Return Bond Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Fixed Rate – 9.7% | ||||||||
Bank of America Alternative Loan Trust | ||||||||
Series 2007-1, Class 2A2 | ||||||||
6.479%, 04/25/2037 | $ | 2,367 | $ | 1,963 | ||||
Chase Mortgage Finance | ||||||||
Series 2003-S12, Class 1A1 | ||||||||
4.750%, 12/25/2018 | 2,294 | 2,201 | ||||||
Series 2003-S11, Class 1A1 | ||||||||
5.000%, 10/25/2033 | 2,525 | 2,401 | ||||||
Series 2003-S13, Class A16 | ||||||||
5.000%, 11/25/2033 | 7,238 | 6,792 | ||||||
Chaseflex Trust | ||||||||
Series 2005-2, Class 4A1 | ||||||||
5.000%, 05/25/2020 | 4,784 | 4,587 | ||||||
Citigroup Mortgage Loan Trust | ||||||||
Series 2005-WF1, Class A2 | ||||||||
4.490%, 02/25/2035 | 836 | 818 | ||||||
Countrywide Alternative Loan Trust | ||||||||
Series 2004-12CB, Class 1A1 | ||||||||
5.000%, 07/25/2019 | 1,155 | 1,096 | ||||||
Series 2004-24CB, Class 2A1 | ||||||||
5.000%, 11/25/2019 | 1,419 | 1,319 | ||||||
Series 2006-19CB, Class A15 | ||||||||
6.000%, 08/25/2036 | 2,293 | 2,235 | ||||||
Countrywide Home Loans | ||||||||
Series 2007-17, Class 1A1 | ||||||||
6.000%, 10/25/2037 | 7,450 | 7,376 | ||||||
Credit Suisse First Boston Mortgage Securities | ||||||||
Series 2005-3, Class 5A1 | ||||||||
5.500%, 07/25/2020 | 1,784 | 1,738 | ||||||
Crown Castle Towers | ||||||||
Series 2005-1A, Class B | ||||||||
4.878%, 06/15/2035 n | 3,920 | 3,824 | ||||||
Deutsche Alt-A Securities | ||||||||
Series 2006-AR5, Class 22A | ||||||||
5.500%, 10/25/2021 | 5,269 | 4,811 | ||||||
First Horizon Mortgage Pass-Through Trust | ||||||||
Series 2003-7, Class 2A1 | ||||||||
4.500%, 09/25/2018 | 6,382 | 6,082 | ||||||
Series 2004-4, Class 2A1 | ||||||||
4.500%, 07/25/2019 | 335 | 335 | ||||||
GMAC Mortgage Corporation Loan Trust | ||||||||
Series 2003-J4, Class 3A1 | ||||||||
4.750%, 09/25/2018 | 6,278 | 6,007 | ||||||
GSMPS Mortgage Loan Trust | ||||||||
Series 2003-1, Class B1 | ||||||||
6.952%, 03/25/2043 | 2,852 | 2,270 | ||||||
GSR Mortgage Loan Trust | ||||||||
Series 2004-10F, Class 3A1 | ||||||||
5.500%, 08/25/2019 | 842 | 828 | ||||||
Series 2005-4F, Class B1 | ||||||||
5.734%, 05/25/2035 | 2,304 | 1,732 | ||||||
Impac Secured Assets | ||||||||
Series 2000-3, Class M1 | ||||||||
8.000%, 10/25/2030 | 2,841 | 2,832 | ||||||
Morgan Stanley Mortgage Loan Trust | ||||||||
Series 2004-9, Class 1A | ||||||||
6.206%, 11/25/2034 | 2,519 | 2,291 | ||||||
Residential Accredit Loans | ||||||||
Series 2005-QS12, Class A7 | ||||||||
5.500%, 08/25/2035 | 2,958 | 2,899 | ||||||
Series 2006-QS4, Class A9 | ||||||||
6.000%, 04/25/2036 | 9,035 | 8,065 | ||||||
Residential Funding Mortgage Securities I | ||||||||
Series 2004-S9, Class 2A1 | ||||||||
4.750%, 12/25/2019 | 1,241 | 1,216 | ||||||
Washington Mutual Pass-Through Certificates | ||||||||
Series 2002-S8, Class 2A7 | ||||||||
5.250%, 01/25/2018 | 5,450 | 5,350 | ||||||
Series 2004-CB1, Class 1A | ||||||||
5.250%, 06/25/2019 | 1,814 | 1,759 | ||||||
Series 2004-RA3, Class 2A | ||||||||
6.355%, 08/25/2038 | 2,175 | 2,163 | ||||||
Series 2007-2, Class 3A1 | ||||||||
5.500%, 04/25/2022 | 4,725 | 4,567 | ||||||
Wells Fargo Mortgage Backed Securities Trust | ||||||||
Series 2004-7, Class 2A2 | ||||||||
5.000%, 07/25/2019 | 4,620 | 4,476 | ||||||
Series 2004-8, Class A1 | ||||||||
5.000%, 08/25/2019 | 2,647 | 2,529 | ||||||
Series 2005-13, Class A1 | ||||||||
5.000%, 11/25/2020 | 891 | 863 | ||||||
Series 2005-3, Class A9 | ||||||||
5.500%, 05/25/2035 | 3,968 | 3,058 | ||||||
Series 2007-13, Class A8 | ||||||||
6.000%, 09/25/2037 | 5,975 | 5,669 | ||||||
106,152 | ||||||||
Total Collateralized Mortgage Obligation – Private Mortgage-Backed Securities | ||||||||
(Cost $167,921) | 156,246 | |||||||
Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities – 2.4% | ||||||||
Fixed Rate – 2.4% | ||||||||
Federal Home Loan Mortgage Corporation | ||||||||
Series 2937, Class JD | ||||||||
5.000%, 03/15/2028 | 4,000 | 4,054 | ||||||
Series 2690, Class OE | ||||||||
5.000%, 11/15/2028 | 4,000 | 4,042 | ||||||
Series 2901, Class UB | ||||||||
5.000%, 03/15/2033 | 5,000 | 4,867 | ||||||
Federal National Mortgage Association | ||||||||
Series 2005-44, Class PC | ||||||||
5.000%, 11/25/2027 | 7,750 | 7,844 | ||||||
Series 2003-81, Class MB | ||||||||
5.000%, 05/25/2029 | 3,375 | 3,415 | ||||||
Series 2005-62, Class JE | ||||||||
5.000%, 06/25/2035 | 2,101 | 2,099 | ||||||
Total Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities | ||||||||
(Cost $25,709) | 26,321 | |||||||
The accompanying notes are an integral part of the financial statements.
58 First American Funds 2008 Annual Report
Total Return Bond Fund (continued) | ||||||||
DESCRIPTION | PAR/SHARES/CONTRACTS | VALUE | ||||||
U.S. Government & Agency Securities – 1.9% | ||||||||
U.S. Treasuries – 1.9% | ||||||||
U.S. Treasury Bonds | ||||||||
2.375%, 01/15/2025 6 | $ | 5,031 | $ | 5,276 | ||||
6.875%, 08/15/2025 6 | 3,940 | 5,023 | ||||||
U.S. Treasury Notes | ||||||||
3.125%, 04/30/2013 6 | 1,885 | 1,869 | ||||||
1.875%, 07/15/2013 | 2,789 | 2,949 | ||||||
3.875%, 05/15/2018 6 | 6,030 | 5,980 | ||||||
Total U.S. Government & Agency Securities | ||||||||
(Cost $20,957) | 21,097 | |||||||
Preferred Stocks – 1.0% | ||||||||
Brokerage – 0.4% | ||||||||
Merrill Lynch | ||||||||
Series AAPL 6 | 216,000 | 5,011 | ||||||
Insurance – 0.2% | ||||||||
Aspen Insurance Holdings | ||||||||
Series A | 84,500 | 1,825 | ||||||
Sovereign – 0.4% | ||||||||
Fannie Mae | ||||||||
Series S 6 | 180,000 | 4,131 | ||||||
Total Preferred Stocks | ||||||||
(Cost $12,130) | 10,967 | |||||||
Convertible Securities – 0.3% | ||||||||
Brokerage – 0.2% | ||||||||
Lehman Brothers Holdings | 1,900 | 1,529 | ||||||
Energy – 0.1% | ||||||||
Headwaters | ||||||||
2.875%, 06/01/2016 | $ | 1,925 | 1,528 | |||||
Total Convertible Securities | ||||||||
(Cost $3,777) | 3,057 | |||||||
Municipal Bond – 0.2% | ||||||||
Sullivan County Health, Education & Housing Facilities, Hospital Revenue, Wellmont Health, Class B | ||||||||
6.950%, 09/01/2016 | ||||||||
(Cost $1,855) | 1,855 | 1,860 | ||||||
Common Stock – 0.1% | ||||||||
Energy – 0.1% | ||||||||
Penn West Energy Trust | ||||||||
(Cost $468) | 16,249 | 550 | ||||||
Options Purchased – 0.0% | ||||||||
Call Options Purchased – 0.0% | ||||||||
Eurodollar 90 Day Future, July 2008 Futures Call Expires 07/11/2008 Exercise Price $97.000 | 536 | 157 | ||||||
Eurodollar 90 Day Future, September 2008 Futures Call Expires 09/15/2008 Exercise Price $97.500 | 746 | 56 | ||||||
Eurodollar 90 Day Future, September 2008 Futures Call Expires 09/15/2008 Exercise Price $97.875 | 746 | 14 | ||||||
Total Purchased Options | ||||||||
(Cost $358) | 227 | |||||||
Short-Term Investments – 5.0% | ||||||||
Money Market Fund – 4.0% | ||||||||
First American Prime Obligations Fund, Class Z Å | 43,823,551 | 43,824 | ||||||
U.S. Treasury Obligations – 1.0% | ||||||||
U.S. Treasury Bills o | ||||||||
1.350%, 07/17/2008 | 325 | 325 | ||||||
1.168%, 07/24/2008 | 5,140 | 5,136 | ||||||
1.703%, 08/14/2008 | 785 | 783 | ||||||
1.832%, 10/09/2008 | 3,785 | 3,766 | ||||||
1.972%, 11/06/2008 | 285 | 283 | ||||||
10,293 | ||||||||
Total Short-Term Investments | ||||||||
(Cost $54,117) | 54,117 | |||||||
Investment Purchased with Proceeds from Securities Lending – 7.0% | ||||||||
Mount Vernon Securities Lending Prime Portfolio † | ||||||||
(Cost $76,924) | 76,923,898 | 76,924 | ||||||
Total Investments – 112.4% | ||||||||
(Cost $1,264,513) | 1,226,837 | |||||||
Other Assets and Liabilities, Net – (12.4)% | (135,709 | ) | ||||||
Total Net Assets – 100.0% | $ | 1,091,128 | ||||||
Δ | Variable Rate Security – The rate shown is the rate in effect as of June 30, 2008. | |
n | Security purchased within the terms of a private placement memorandum, exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other “qualified institutional buyers.” As of June 30, 2008, the value of these investments was $99,024 or 9.1% of total net assets. See note 2 in Notes to Financial Statements. | |
6 | This security or a portion of this security is out on loan at June 30, 2008. Total loaned securities had a value of $75,326 at June 30, 2008. See note 2 in Notes to Financial Statements. | |
Æ | Represents a foreign high yield (non-investment grade) U.S. dollar denominated security. On June 30, 2008, the value of these investments was $31,198 which represents 2.9% of total net assets. | |
« | Security purchased on a when-issued basis. On June 30, 2008, the total cost of investment purchased on a when-issued basis was $28,151 or 2.6% of total net assets. See note 2 in Notes to Financial Statements. | |
¬ | Foreign security values are stated in U.S. dollars. For debt securities, principal amounts are denominated in U.S. dollars unless otherwise noted. | |
¥ | Security is considered illiquid. As of June 30, 2008, the value of these investments were $3,263 or 0.3% of total net assets. See note 2 in Notes to Financial Statements. | |
◄ | U.S. Treasury inflation-protection securities (TIPS) are securities in which the principal amount is adjusted for inflation and the semiannual interest payments equal a fixed percentage of the inflation-adjusted principal amount. | |
Å | Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor for this fund. See note 3 in Notes to Financial Statements. | |
o | Security has been deposited as initial margin on open futures contracts and/or swap agreements. Yield shown is the effective yield as of June 30, 2008. See note 2 in Notes to Financial Statements. | |
† | The fund may loan securities representing up to one third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks, or other institutional borrowers for 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 2008 Annual Report 59
Schedule of Investments June 30, 2008, all dollars are rounded to thousands (000)
Total Return Bond Fund (continued)
Schedule of Open Futures Contracts
Number of | ||||||||||||||
Contracts | Notional | Unrealized | ||||||||||||
Purchased | Contract | Settlement | Appreciation | |||||||||||
Description | (Sold) | Value | Month | (Depreciation) | ||||||||||
Australian Dollar Currency Futures | 56 | $ | 5,316 | September 2008 | $ | 72 | ||||||||
British Pounds Currency Futures | (234 | ) | (28,985 | ) | September 2008 | (511 | ) | |||||||
Canadian Dollar Currency Futures | 219 | 21,497 | September 2008 | 37 | ||||||||||
Eurodollar 90 Day Futures | 218 | 210,762 | March 2009 | (144 | ) | |||||||||
Eurodollar 90 Day Futures | 670 | 648,694 | December 2008 | (493 | ) | |||||||||
Eurodollar 90 Day Futures | 400 | 384,860 | September 2009 | 119 | ||||||||||
Eurodollar 90 Day Futures | 930 | 892,196 | December 2009 | (731 | ) | |||||||||
Japanese Yen Currency Futures | (193 | ) | (22,849 | ) | September 2008 | (382 | ) | |||||||
Sterling 90 Day Futures | 369 | 344,745 | March 2009 | (49 | ) | |||||||||
U.S. Treasury 2 Year Note Futures | (22 | ) | 4,646 | September 2008 | (7 | ) | ||||||||
U.S. Treasury 5 Year Note Futures | (245 | ) | (27,086 | ) | September 2008 | (92 | ) | |||||||
U.S. Treasury 10 Year Note Futures | (851 | ) | (96,948 | ) | September 2008 | (185 | ) | |||||||
U.S. Treasury Long Bond Futures | (298 | ) | (34,447 | ) | September 2008 | (348 | ) | |||||||
$ | (2,714 | ) | ||||||||||||
Credit Default Swap Agreements
Pay/ | ||||||||||||||||||||||
Receive | Unrealized | |||||||||||||||||||||
Reference | Buy/Sell | Fixed | Expiration | Notional | Appreciation | |||||||||||||||||
Counterparty | Entity | Protection | Rate | Date | Amount | (Depreciation) | ||||||||||||||||
Bank of America | Dow Jones CDX HY10 Index | Sell | 5.000% | 06/20/2013 | $ | 10,000 | $ | (223 | ) | |||||||||||||
Bank of America | Dow Jones CDX IG10 Index | Sell | 1.550% | 06/20/2013 | 27,400 | (132 | ) | |||||||||||||||
Deutsche Bank | Dow Jones CDX HVOL9 Index | Sell | 1.400% | 12/20/2012 | 28,500 | 370 | ||||||||||||||||
Deutsche Bank | Dow Jones CDX HVOL10 Index | Sell | 3.500% | 06/20/2013 | 66,800 | (1,638 | ) | |||||||||||||||
Deutsche Bank | Dow Jones CDX HY10 Index | Sell | 5.000% | 06/20/2013 | 11,800 | (256 | ) | |||||||||||||||
Deutsche Bank | Dow Jones CDX IG9 Index | Sell | 0.600% | 12/20/2012 | 13,500 | (6 | ) | |||||||||||||||
Deutsche Bank | Dow Jones CDX IG10 Index | Sell | 1.550% | 06/20/2013 | 45,100 | (186 | ) | |||||||||||||||
JPMorgan | Deutsche Bank AG | Buy | 0.525% | 09/20/2012 | 2,700 | 39 | ||||||||||||||||
JPMorgan | Dow Jones CDX HVOL9 Index | Sell | 1.400% | 12/20/2012 | 10,500 | 278 | ||||||||||||||||
JPMorgan | Dow Jones CDX HY9 Index | Sell | 3.750% | 12/20/2012 | 31,284 | 689 | ||||||||||||||||
JPMorgan | Dow Jones CDX IG10 Index | Sell | 1.550% | 06/20/2013 | 35,500 | (266 | ) | |||||||||||||||
JPMorgan | Dow Jones iTraxx Asia ex-Japan Index | Sell | 6.500% | 06/20/2013 | 22,600 | 625 | ||||||||||||||||
JPMorgan | GAP, Inc. | Buy | 1.230% | 12/20/2012 | 2,850 | (41 | ) | |||||||||||||||
JPMorgan | Markit ABX AAA071 Index | Sell | 0.090% | 08/25/2037 | 4,800 | (484 | ) | |||||||||||||||
UBS | AmerisourceBergen Corporation | Buy | 0.585% | 09/20/2012 | 2,000 | 7 | ||||||||||||||||
UBS | Cardinal Health, Inc. | Buy | 0.320% | 09/20/2012 | 2,000 | 9 | ||||||||||||||||
UBS | Dow Jones CDX HVOL10 Index | Sell | 3.500% | 06/20/2013 | 22,500 | (960 | ) | |||||||||||||||
UBS | Dow Jones CDX HY10 Index | Sell | 5.000% | 06/20/2013 | 22,800 | (295 | ) | |||||||||||||||
UBS | Dow Jones iTRAXX Asia ex-Japan Index | Sell | 6.500% | 06/20/2013 | 3,200 | 51 | ||||||||||||||||
UBS | Korea Government International Bond | Buy | 1.050% | 09/20/2015 | 10,900 | 58 | ||||||||||||||||
UBS | Turkey Government International Bond | Buy | 1.480% | 07/20/2012 | 4,100 | 189 | ||||||||||||||||
UBS | Whirlpool Corporation | Buy | 0.785% | 09/20/2017 | 2,325 | 71 | ||||||||||||||||
$ | (2,101 | ) | ||||||||||||||||||||
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 | 4.625% | 09/20/2009 | $ | 48,000 | $ | 800 | ||||||||||||||
JPMorgan | 3-Month LIBOR | Pay | 3.958% | 06/17/2010 | 29,000 | 226 | ||||||||||||||||
UBS | 3-Month LIBOR | Pay | 2.743% | 04/17/2010 | 28,000 | (352 | ) | |||||||||||||||
UBS | 3-Month LIBOR | Pay | 3.418% | 05/30/2010 | 29,000 | (44 | ) | |||||||||||||||
UBS | 3-Month LIBOR | Pay | 4.568% | 10/02/2009 | 49,000 | 799 | ||||||||||||||||
UBS | 3-Month LIBOR | Pay | 2.795% | 04/18/2010 | 28,000 | (357 | ) | |||||||||||||||
$ | 1,072 | |||||||||||||||||||||
Schedule of Open Written Call Options
Exercise | Premium | Expiration | Number of | |||||||||||||||
Option | Price | Received | Date | Contracts | Value | |||||||||||||
U.S. Treasury 10 Year Note Futures – September 2008 | $116.00 | $ | 111 | 08/22/2008 | 179 | $ | 97 | |||||||||||
U.S. Treasury 10 Year Note Futures – September 2008 | 117.50 | 273 | 08/22/2008 | 537 | 143 | |||||||||||||
U.S. Treasury 10 Year Note Futures – September 2008 | 118.00 | 86 | 08/22/2008 | 179 | 36 | |||||||||||||
$ | 470 | $ | 276 | |||||||||||||||
Schedule of Open Written Put Options
Exercise | Premium | Expiration | Number of | |||||||||||||||
Option | Price | Received | Date | Contracts | Value | |||||||||||||
U.S. Treasury 10 Year Note Futures – September 2008 | $109.00 | $ | 284 | 08/22/2008 | 358 | $ | 45 | |||||||||||
U.S. Treasury 10 Year Note Futures – September 2008 | 110.00 | 100 | 08/22/2008 | 179 | 37 | |||||||||||||
$ | 384 | $ | 82 | |||||||||||||||
The accompanying notes are an integral part of the financial statements.
60 First American Funds 2008 Annual Report
U.S. Government Mortgage Fund | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
U.S. Government Agency Mortgage-Backed Securities – 89.5% | ||||||||
Adjustable Rate Δ – 5.4% | ||||||||
Federal Home Loan Mortgage Corporation Pool | ||||||||
5.590%, 05/01/2037, #1H1396 | $ | 2,889 | $ | 2,935 | ||||
Federal National Mortgage Association Pool | ||||||||
5.455%, 03/01/2037, #914224 | 2,481 | 2,504 | ||||||
5.480%, 04/01/2037, #913187 | 2,280 | 2,307 | ||||||
7,746 | ||||||||
Fixed Rate – 84.1% | ||||||||
Federal Home Loan Mortgage Corporation Pool | ||||||||
7.000%, 07/01/2011, #E20252 | 13 | 14 | ||||||
7.500%, 09/01/2012, #G10735 | 78 | 82 | ||||||
6.000%, 10/01/2013, #E72802 | 154 | 158 | ||||||
5.500%, 01/01/2014, #E00617 | 582 | 591 | ||||||
7.000%, 09/01/2014, #E00746 | 97 | 102 | ||||||
6.000%, 09/01/2022, #C90580 | 765 | 782 | ||||||
6.500%, 01/01/2028, #G00876 | 310 | 323 | ||||||
6.500%, 11/01/2028, #C00676 | 694 | 723 | ||||||
7.500%, 01/01/2030, #C35768 | 38 | 41 | ||||||
6.500%, 03/01/2031, #G01244 | 522 | 543 | ||||||
5.000%, 09/01/2033, #C01622 | 1,828 | 1,763 | ||||||
6.000%, 08/01/2036, #A51416 | 1,078 | 1,090 | ||||||
Federal National Mortgage Association Pool | ||||||||
7.000%, 11/01/2011, #250738 | 8 | 8 | ||||||
7.000%, 11/01/2011, #349630 | 3 | 3 | ||||||
7.000%, 11/01/2011, #351122 | 13 | 13 | ||||||
6.000%, 04/01/2013, #425550 | 95 | 98 | ||||||
6.500%, 08/01/2013, #251901 | 79 | 82 | ||||||
6.000%, 11/01/2013, #556195 | 111 | 114 | ||||||
7.000%, 10/01/2014, #252799 | 65 | 68 | ||||||
5.500%, 04/01/2016, #580516 | 541 | 550 | ||||||
6.500%, 07/01/2017, #254373 | 661 | 689 | ||||||
7.000%, 07/01/2017, #254414 | 654 | 686 | ||||||
5.500%, 12/01/2017, #673010 | 502 | 510 | ||||||
5.500%, 04/01/2018, #695765 | 601 | 611 | ||||||
4.500%, 05/01/2018, #254720 | 3,129 | 3,060 | ||||||
5.500%, 09/01/2019, #725793 | 2,748 | 2,789 | ||||||
6.000%, 12/01/2021, #254138 | 456 | 466 | ||||||
6.000%, 01/01/2022, #254179 | 554 | 567 | ||||||
6.500%, 06/01/2022, #254344 | 511 | 531 | ||||||
6.000%, 10/01/2022, #254513 6 | 619 | 632 | ||||||
5.000%, 07/17/2023 « | 2,840 | 2,808 | ||||||
5.500%, 02/01/2025, #255628 | 1,185 | 1,184 | ||||||
5.500%, 10/01/2025, #255956 | 3,071 | 3,064 | ||||||
7.000%, 12/01/2027, #313941 | 353 | 375 | ||||||
7.000%, 09/01/2031, #596680 | 807 | 847 | ||||||
6.500%, 12/01/2031, #254169 | 779 | 802 | ||||||
6.000%, 04/01/2032, #745101 | 2,835 | 2,876 | ||||||
6.500%, 06/01/2032, #596712 | 2,129 | 2,189 | ||||||
6.500%, 07/01/2032, #545759 | 1,086 | 1,127 | ||||||
7.000%, 07/01/2032, #545815 | 213 | 225 | ||||||
6.000%, 08/01/2032, #656269 | 746 | 756 | ||||||
5.500%, 03/01/2033, #689109 | 2,241 | 2,222 | ||||||
5.500%, 04/01/2033, #703392 | 2,544 | 2,522 | ||||||
5.500%, 05/01/2033, #704523 | 1,771 | 1,756 | ||||||
5.500%, 06/01/2033, #843435 | 1,825 | 1,811 | ||||||
5.500%, 07/01/2033, #726520 | 2,486 | 2,465 | ||||||
5.500%, 07/01/2033, #728667 | 1,369 | 1,358 | ||||||
4.500%, 08/01/2033, #555680 | 1,846 | 1,720 | ||||||
5.000%, 08/01/2033, #736158 | 2,407 | 2,322 | ||||||
5.000%, 09/01/2033, #734566 | 2,628 | 2,535 | ||||||
5.000%, 10/01/2033, #747533 | 2,536 | 2,447 | ||||||
5.500%, 11/01/2033, #555967 | 2,725 | 2,702 | ||||||
6.000%, 01/01/2034, #763687 | 1,996 | 2,022 | ||||||
6.000%, 03/01/2034, #745324 6 | 2,405 | 2,446 | ||||||
5.000%, 05/01/2034, #780889 | 3,412 | 3,287 | ||||||
6.500%, 06/01/2034, #735273 | 1,475 | 1,531 | ||||||
4.500%, 09/01/2034, #725866 | 1,138 | 1,059 | ||||||
5.000%, 07/01/2035, #826305 | 2,871 | 2,762 | ||||||
5.000%, 03/01/2036, #745336 | 2,547 | 2,450 | ||||||
7.000%, 06/01/2037, #928519 | 4,596 | 4,823 | ||||||
5.000%, 07/14/2038 « | 1,000 | 958 | ||||||
6.000%, 07/14/2038 « | 16,995 | 17,144 | ||||||
6.500%, 07/14/2038 « | 9,000 | 9,264 | ||||||
5.500%, 07/15/2038 « | 11,215 | 11,054 | ||||||
Government National Mortgage Association Pool | ||||||||
9.000%, 11/15/2009, #359559 | 9 | 9 | ||||||
8.000%, 10/15/2010, #414750 | 9 | 9 | ||||||
7.500%, 12/15/2022, #347332 | 62 | 66 | ||||||
7.000%, 09/15/2027, #455304 | 18 | 19 | ||||||
6.500%, 07/15/2028, #780825 | 549 | 570 | ||||||
6.500%, 08/20/2031, #003120 | 214 | 222 | ||||||
7.500%, 12/15/2031, #570134 | 153 | 164 | ||||||
6.000%, 09/15/2034, #633605 6 | 1,988 | 2,024 | ||||||
119,685 | ||||||||
Total U.S. Government Agency Mortgage-Backed Securities | ||||||||
(Cost $127,848) | 127,431 | |||||||
Collateralized Mortgage Obligation – Private Mortgage-Backed Securities – 17.3% | ||||||||
Adjustable Rate Δ – 2.5% | ||||||||
Countrywide Alternative Loan Trust | ||||||||
Series 2006-OA17, Class 1A1A | ||||||||
2.674%, 12/20/2046 | 942 | 659 | ||||||
Harborview Mortgage Loan Trust | ||||||||
Series 2006-1, Class 2A1A | ||||||||
2.738%, 03/19/2037 | 953 | 671 | ||||||
Wells Fargo Mortgage Backed Securities Trust | ||||||||
Series 2003-D, Class A1 | ||||||||
6.404%, 02/25/2033 | 268 | 267 | ||||||
Series 2006-AR1, Class 2A2 | ||||||||
5.551%, 03/25/2036 | 1,982 | 1,924 | ||||||
3,521 | ||||||||
Fixed Rate – 14.8% | ||||||||
Banc of America Funding | ||||||||
Series 2007-4, Class 1A2 | ||||||||
5.500%, 06/25/2037 | 973 | 935 | ||||||
Bank of America Alternative Loan Trust | ||||||||
Series 2007-1, Class 2A2 | ||||||||
6.479%, 04/25/2037 | 856 | 710 | ||||||
Countrywide Alternative Loan Trust | ||||||||
Series 2004-24CB, Class 1A1 | ||||||||
6.000%, 11/25/2034 | 1,170 | 1,095 | ||||||
Countrywide Home Loans | ||||||||
Series 2007-17, Class 1A1 | ||||||||
6.000%, 10/25/2037 | 1,318 | 1,305 | ||||||
GMAC Mortgage Corporation Loan Trust | ||||||||
Series 2004-J5, Class A7 | ||||||||
6.500%, 01/25/2035 | 1,590 | 1,558 | ||||||
GSMPS Mortgage Loan Trust | ||||||||
Series 2003-1, Class B1 | ||||||||
6.952%, 03/25/2043 | 945 | 752 | ||||||
GSR Mortgage Loan Trust | ||||||||
Series 2005-4F, Class B1 | ||||||||
5.734%, 05/25/2035 | 1,383 | 1,039 |
First American Funds 2008 Annual Report 61
Schedule of Investments June 30, 2008, all dollars are rounded to thousands (000)
U.S. Government Mortgage Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Impac Secured Assets | ||||||||
Series 2000-3, Class M1 | ||||||||
8.000%, 10/25/2030 | $ | 488 | $ | 487 | ||||
Master Alternative Loans Trust | ||||||||
Series 2005-2, Class 1A3 | ||||||||
6.500%, 03/25/2035 | 663 | 599 | ||||||
Master Asset Securitization Trust | ||||||||
Series 2003-6, Class 3A1 | ||||||||
5.000%, 07/25/2018 | 743 | 718 | ||||||
Morgan Stanley Mortgage Loan Trust | ||||||||
Series 2004-9, Class 1A | ||||||||
6.206%, 11/25/2034 | 1,790 | 1,628 | ||||||
Residential Accredit Loans | ||||||||
Series 2003-QS12, Class M1 | ||||||||
5.000%, 06/25/2018 | 849 | 653 | ||||||
Residential Asset Mortgage Products | ||||||||
Series 2003-SL1, Class M1 | ||||||||
7.316%, 04/25/2031 | 2,584 | 2,450 | ||||||
Series 2004-SL4, Class A3 | ||||||||
6.500%, 07/25/2032 | 1,393 | 1,323 | ||||||
Residential Funding Mortgage Securitization Trust | ||||||||
Series 2003-S8, Class A1 | ||||||||
5.000%, 05/25/2018 | 1,985 | 1,934 | ||||||
Washington Mutual | ||||||||
Series 2003-S13, Class 21A1 | ||||||||
4.500%, 12/25/2018 | 1,777 | 1,684 | ||||||
Washington Mutual Mortgage Pass-Through Trust | ||||||||
Series 2007-2, Class 3A1 | ||||||||
5.500%, 04/25/2022 | 479 | 463 | ||||||
Washington Mutual MSC Mortgage | ||||||||
Series 2003-MS9, Class CB1 | ||||||||
7.466%, 04/25/2033 | 1,475 | 1,287 | ||||||
Wells Fargo Mortgage Backed Securities Trust | ||||||||
Series 2007-9, Class 1A4 | ||||||||
5.500%, 07/25/2037 | 600 | 495 | ||||||
21,115 | ||||||||
Total Collateralized Mortgage Obligation – Private Mortgage-Backed Securities | ||||||||
(Cost $27,157) | 24,636 | |||||||
Asset-Backed Securities – 12.3% | ||||||||
Credit Cards – 0.9% | ||||||||
American Express Issuance Trust | ||||||||
Series 2005-1, Class C | ||||||||
2.844%, 08/15/2011 Δ | 355 | 336 | ||||||
Bank of America Credit Card Trust | ||||||||
Series 2006-C4, Class C4 | ||||||||
2.701%, 11/15/2011 Δ | 350 | 343 | ||||||
Discover Card Master Trust | ||||||||
Series 2007-C1, Class C1 | ||||||||
2.791%, 01/15/2013 Δ | 375 | 342 | ||||||
Washington Mutual Master Note Trust | ||||||||
Series 2007-C1, Class C1 | ||||||||
2.871%, 05/15/2014 Δ n | 375 | 289 | ||||||
1,310 | ||||||||
Home Equity – 0.0% | ||||||||
GRMT Mortgage Loan Trust | ||||||||
Series 2001-1A, Class M1 | ||||||||
7.772%, 07/20/2031 n ¥ | 61 | 51 | ||||||
Manufactured Housing – 0.5% | ||||||||
Origen Manufactured Housing | ||||||||
Series 2005-B, Class M1 | ||||||||
5.990%, 01/15/2037 | 750 | 644 | ||||||
Other – 10.9% | ||||||||
Banc of America Commercial Mortgage | ||||||||
Series 2005-5, Class AM | ||||||||
5.176%, 10/10/2045 | 610 | 575 | ||||||
Bear Stearns Commercial Mortgage Securities | ||||||||
Series 2007-T28, Class D | ||||||||
5.992%, 09/11/2042 Δ n | 285 | 183 | ||||||
Series 2007-PW18, Class AJ | ||||||||
6.210%, 06/11/2050 | 320 | 263 | ||||||
Greenwich Capital Commercial Funding | ||||||||
Series 2007-GG9, Class A4 | ||||||||
5.444%, 03/10/2039 | 2,000 | 1,864 | ||||||
Series 2007-GG11, Class A4 | ||||||||
5.736%, 12/10/2049 | 2,970 | 2,807 | ||||||
Series 2007-GG11, Class AJ | ||||||||
6.207%, 12/10/2049 Δ | 800 | 648 | ||||||
GS Mortgage Securities II | ||||||||
Series 2006-GG8, Class A2 | ||||||||
5.479%, 11/10/2039 | 3,500 | 3,471 | ||||||
Series 2007-GG10, Class A4 | ||||||||
5.993%, 08/10/2045 Δ | 3,000 | 2,869 | ||||||
JPMorgan Chase Commercial Mortgage Securities | ||||||||
Series 2005-LDP5, Class B | ||||||||
5.334%, 12/15/2044 Δ | 255 | 223 | ||||||
Series 2007-CB20, Class AJ | ||||||||
6.099%, 02/12/2051 Δ | 505 | 412 | ||||||
LB-UBS Commercial Mortgage Trust | ||||||||
Series 2008-C1, Class AJ | ||||||||
6.317%, 04/15/2041 Δ | 495 | 401 | ||||||
Merrill Lynch Mortgage Trust | ||||||||
Series 2005-CIP1, Class C | ||||||||
5.301%, 07/12/2038 Δ | 285 | 241 | ||||||
Merrill Lynch/Countrywide Commercial Mortgage Trust | ||||||||
Series 2007-8, Class AM | ||||||||
6.156%, 08/12/2049 Δ | 600 | 545 | ||||||
Morgan Stanley Capital I | ||||||||
Series 2005-HQ6, Class B | ||||||||
5.152%, 08/13/2042 Δ | 120 | 104 | ||||||
Series 2005-HQ6, Class C | ||||||||
5.172%, 08/13/2042 Δ | 110 | 94 | ||||||
Wachovia Bank Commercial Mortgage Trust | ||||||||
Series 2007-C34, Class AJ | ||||||||
6.146%, 05/15/2046 Δ | 455 | 367 | ||||||
Series 2007-C33, Class AJ | ||||||||
6.100%, 02/15/2051 Δ | 445 | 359 | ||||||
15,426 | ||||||||
Total Asset-Backed Securities | ||||||||
(Cost $18,603) | 17,431 | |||||||
Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities – 2.0% | ||||||||
Fixed Rate – 2.0% | ||||||||
Federal Home Loan Mortgage Corporation | ||||||||
Series 2382, Class DA | ||||||||
5.500%, 10/15/2030 | 194 | 199 | ||||||
Federal National Mortgage Association | ||||||||
Series 2004-29, Class WG | ||||||||
4.500%, 05/25/2019 | 2,000 | 1,891 |
The accompanying notes are an integral part of the financial statements.
62 First American Funds 2008 Annual Report
U.S. Government Mortgage Fund (continued) | ||||||||
DESCRIPTION | PAR/SHARES | VALUE | ||||||
Series 2002-W1, Class 2A | ||||||||
7.500%, 02/25/2042 | $ | 739 | $ | 777 | ||||
Total Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities | ||||||||
(Cost $2,866) | 2,867 | |||||||
Short-Term Investments – 7.0% | ||||||||
Money Market Fund – 6.5% | ||||||||
First American Government Obligations Fund, Class Z Å | 9,270,625 | 9,271 | ||||||
U.S. Treasury Obligations – 0.5% | ||||||||
U.S. Treasury Bills o | ||||||||
1.125%, 07/24/2008 | $ | 380 | 380 | |||||
1.832%, 10/09/2008 | 310 | 308 | ||||||
688 | ||||||||
Total Short-Term Investments | ||||||||
(Cost $9,959) | 9,959 | |||||||
Investment Purchased with Proceeds from Securities Lending – 3.7% | ||||||||
Mount Vernon Securities Lending Prime Portfolio † | ||||||||
(Cost $5,198) | 5,198,445 | 5,198 | ||||||
Total Investments – 131.8% | ||||||||
(Cost $191,631) | 187,522 | |||||||
Other Assets and Liabilities, Net – (31.8)% | (45,210 | ) | ||||||
Total Net Assets – 100.0% | $ | 142,312 | ||||||
Δ | Variable Rate Security – The rate shown is the rate in effect as of June 30, 2008. | |
6 | This security or a portion of this security is out on loan at June 30, 2008. Total loaned securities had a value of $5,102 at June 30, 2008. See note 2 in Notes to Financial Statements. | |
« | Security purchased on a when-issued basis. On June 30, 2008, the total cost of investments purchased on a when-issued basis was $41,088 or 28.9% of total net assets. See note 2 in Notes to Financial Statements. | |
n | Security purchased within the terms of a private placement memorandum, exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other “qualified institutional buyers.” As of June 30, 2008, the value of these investments was $523 or 0.4% of total net assets. See note 2 in Notes to Financial Statements. | |
¥ | Security considered illiquid. As of June 30, 2008, the value of this investment was $51 or 0.0% of total net assets. See note 2 in Notes to Financial Statements. | |
Å | Investment in affiliated security. This money market fund is advised by FAF Advisors Inc., which also serves as advisor to this fund. See note 3 in Notes to Financial Statements. | |
o | Security has been deposited as initial margin on open futures contracts and/or swap agreements. Yield shown is effective yield as of June 30, 2008. See note 2 in Notes to Financial Statements. | |
† | The fund may loan securities representing up to one third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks, or other institutional borrowers for 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. |
U.S. Government Mortgage Fund (concluded)
Schedule of Open Futures Contracts
Number of | ||||||||||||||
Contracts | Notional | Unrealized | ||||||||||||
Purchased | Contract | Settlement | Appreciation | |||||||||||
Description | (Sold) | Value | Month | (Depreciation) | ||||||||||
U.S. Treasury 2 Year Note Futures | 17 | $ | 3,590 | September 2008 | $ | 19 | ||||||||
U.S. Treasury 5 Year Note Futures | (16 | ) | (1,769 | ) | September 2008 | (21 | ) | |||||||
U.S. Treasury 10 Year Note Futures | (120 | ) | (13,671 | ) | September 2008 | (20 | ) | |||||||
U.S. Treasury Long Bond Futures | (6 | ) | (694 | ) | September 2008 | (11 | ) | |||||||
$ | (33 | ) | ||||||||||||
Credit Default Swap Agreements
Pay/ | ||||||||||||||||||||||
Receive | Unrealized | |||||||||||||||||||||
Reference | Buy/Sell | Fixed | Expiration | Notional | Appreciation | |||||||||||||||||
Counterparty | Entity | Protection | Rate | Date | Amount | (Depreciation) | ||||||||||||||||
Deutsche Bank | Dow Jones CDX HVOL9 Index | Sell | 1.400% | 12/20/2012 | $ | 300 | $ | 6 | ||||||||||||||
Deutsche Bank | Dow Jones CDX HVOL10 Index | Sell | 3.500% | 06/20/2013 | 500 | (14 | ) | |||||||||||||||
JPMorgan | Dow Jones CDX HVOL9 Index | Sell | 1.400% | 12/20/2012 | 800 | 21 | ||||||||||||||||
JPMorgan | Dow Jones CDX IG10 Index | Sell | 1.550% | 06/20/2013 | 2,200 | (14 | ) | |||||||||||||||
JPMorgan | Markit ABX AAA071 Index | Sell | 0.090% | 08/25/2037 | 700 | (70 | ) | |||||||||||||||
UBS | Dow Jones CDX HVOL9 Index | Sell | 1.400% | 12/20/2012 | 3,500 | (72 | ) | |||||||||||||||
$ | (143 | ) | ||||||||||||||||||||
Interest Rate Swap Agreements
Pay/ | ||||||||||||||||||||||
Floating | Receive | Unrealized | ||||||||||||||||||||
Rate | Floating | Fixed | Expiration | Notional | Appreciation | |||||||||||||||||
Counterparty | Index | Rate | Rate | Date | Amount | (Depreciation) | ||||||||||||||||
JPMorgan | 3-Month LIBOR | Pay | 3.958% | 06/17/2010 | $ | 4,000 | $ | 31 | ||||||||||||||
UBS | 3-Month LIBOR | Pay | 5.180% | 08/02/2010 | 14,000 | 443 | ||||||||||||||||
UBS | 3-Month LIBOR | Receive | 5.042% | 11/13/2017 | 2,000 | (61 | ) | |||||||||||||||
$ | 413 | |||||||||||||||||||||
First American Funds 2008 Annual Report 63
Statements ofAssets and Liabilities | June 30, 2008, all dollars and shares are rounded to thousands (000), except for per share data |
Inflation | ||||||||||||||||
Core | High Income | Protected | ||||||||||||||
Bond Fund | Bond Fund | Securities Fund | ||||||||||||||
Unaffiliated investments, at cost | $ | 1,731,684 | $ | 250,053 | $ | 269,674 | ||||||||||
Affiliated money market fund, at cost | 24,175 | 5,593 | 10,368 | |||||||||||||
Affiliated investment purchased with proceeds from securities lending, at cost (note 2) | 126,177 | 29,394 | 133,973 | |||||||||||||
Premiums received on options written, at cost (note 6) | — | — | — | |||||||||||||
Cash denominated in foreign currencies, at cost | 89 | — | 101 | |||||||||||||
ASSETS: | ||||||||||||||||
Unaffiliated investments, at value* (note 2) | $ | 1,680,054 | $ | 230,656 | $ | 275,140 | ||||||||||
Affiliated money market fund, at value (note 2) | 24,175 | 5,593 | 10,368 | |||||||||||||
Affiliated investment purchased with proceeds from securities lending, at value (note 2) | 126,177 | 29,394 | 133,973 | |||||||||||||
Cash | — | 1,584 | 236 | |||||||||||||
Cash denominated in foreign currencies, at value | 91 | — | — | |||||||||||||
Receivable for dividends and interest | 14,718 | 4,642 | 2,452 | |||||||||||||
Receivable for investments sold | 3,861 | 1,073 | 337 | |||||||||||||
Receivable for capital shares sold | 539 | 13 | 238 | |||||||||||||
Receivable for swap agreements | — | 193 | — | |||||||||||||
Receivable for variation margin | 32 | — | — | |||||||||||||
Prepaid expenses and other assets | 17 | 16 | 9 | |||||||||||||
Total assets | 1,849,664 | 273,164 | 422,753 | |||||||||||||
LIABILITIES: | ||||||||||||||||
Cash denominated in foreign currencies, at value | — | — | 108 | |||||||||||||
Liabilities for options written, at value | — | — | — | |||||||||||||
Bank overdraft | 2,485 | — | — | |||||||||||||
Dividends payable | 5,511 | 1,426 | 1,259 | |||||||||||||
Payable upon return of securities loaned (note 2) | 126,177 | 29,394 | 133,973 | |||||||||||||
Payable for investments purchased | 15,512 | 560 | 2,776 | |||||||||||||
Payable for investments purchased on a when-issued basis | 113,700 | 2,656 | 435 | |||||||||||||
Payable for capital shares redeemed | 1,170 | 157 | 258 | |||||||||||||
Payable for variation margin | — | 11 | 31 | |||||||||||||
Payable for swap contracts | 8,574 | — | 172 | |||||||||||||
Payable to affiliates (note 3) | 908 | 162 | 127 | |||||||||||||
Payable for distribution and shareholder servicing fees | 23 | 14 | 1 | |||||||||||||
Accrued expenses and other liabilities | 29 | 29 | 30 | |||||||||||||
Total liabilities | 274,089 | 34,409 | 139,170 | |||||||||||||
Net assets | $ | 1,575,575 | $ | 238,755 | $ | 283,583 | ||||||||||
COMPOSITION OF NET ASSETS: | ||||||||||||||||
Portfolio capital | $ | 1,630,307 | $ | 266,780 | $ | 285,775 | ||||||||||
Undistributed (distributions in excess of) net investment income | 3,698 | 872 | 2,576 | |||||||||||||
Accumulated net realized gain (loss) on investments (note 2) | (5,141 | ) | (9,613 | ) | (10,428 | ) | ||||||||||
Net unrealized appreciation (depreciation) of investments | (51,630 | ) | (19,397 | ) | 5,466 | |||||||||||
Net unrealized appreciation (depreciation) on futures contracts | (30 | ) | (129 | ) | 187 | |||||||||||
Net unrealized appreciation (depreciation) of forward foreign currency contracts, foreign currency, and translation of other assets and liabilities denominated in foreign currency | 2 | — | (7 | ) | ||||||||||||
Net unrealized appreciation on options written | — | — | — | |||||||||||||
Net unrealized appreciation (depreciation) on swap agreements | (1,631 | ) | 242 | 14 | ||||||||||||
Net assets | $ | 1,575,575 | $ | 238,755 | $ | 283,583 | ||||||||||
* Including securities loaned, at value | $ | 123,618 | $ | 28,567 | $ | 131,709 | ||||||||||
The accompanying notes are an integral part of the financial statements.
64 First American Funds 2008 Annual Report
Intermediate | ||||||||||||||||||||||||||
Government | Intermediate Term | Short Term | Total Return | U.S. Government | ||||||||||||||||||||||
Bond Fund | Bond Fund | Bond Fund | Bond Fund | Mortgage Fund | ||||||||||||||||||||||
$ | 68,398 | $ | 809,436 | $ | 302,809 | $ | 1,143,765 | $ | 177,162 | |||||||||||||||||
1,963 | 7,594 | 19,758 | 43,824 | 9,271 | ||||||||||||||||||||||
— | 81,905 | 17,029 | 76,924 | 5,198 | ||||||||||||||||||||||
— | — | — | 854 | — | ||||||||||||||||||||||
— | — | 7 | 1,516 | — | ||||||||||||||||||||||
$ | 68,241 | $ | 791,969 | $ | 296,953 | $ | 1,106,089 | $ | 173,053 | |||||||||||||||||
1,963 | 7,594 | 19,758 | 43,824 | 9,271 | ||||||||||||||||||||||
— | 81,905 | 17,029 | 76,924 | 5,198 | ||||||||||||||||||||||
— | 474 | — | 2,610 | 2,396 | ||||||||||||||||||||||
— | — | 7 | — | — | ||||||||||||||||||||||
624 | 9,009 | 2,791 | 11,304 | 886 | ||||||||||||||||||||||
983 | 241 | 290 | 1,795 | — | ||||||||||||||||||||||
75 | 246 | 107 | 901 | 16 | ||||||||||||||||||||||
— | — | — | — | — | ||||||||||||||||||||||
— | 22 | 41 | — | — | ||||||||||||||||||||||
— | 2 | 3 | 16 | 11 | ||||||||||||||||||||||
71,886 | 891,462 | 336,979 | 1,243,463 | 190,831 | ||||||||||||||||||||||
— | — | — | 1,537 | — | ||||||||||||||||||||||
— | — | — | 358 | — | ||||||||||||||||||||||
— | — | 100 | — | — | ||||||||||||||||||||||
62 | 2,166 | 824 | 3,979 | 416 | ||||||||||||||||||||||
— | 81,905 | 17,029 | 76,924 | 5,198 | ||||||||||||||||||||||
1,473 | 7,816 | 495 | 32,365 | 1,406 | ||||||||||||||||||||||
— | — | — | 28,151 | 41,088 | ||||||||||||||||||||||
6 | 1,445 | 117 | 296 | 19 | ||||||||||||||||||||||
— | — | — | 69 | 12 | ||||||||||||||||||||||
— | 2,326 | 891 | 7,948 | 274 | ||||||||||||||||||||||
27 | 475 | 150 | 669 | 69 | ||||||||||||||||||||||
1 | 4 | 8 | 8 | 8 | ||||||||||||||||||||||
29 | 29 | 29 | 31 | 29 | ||||||||||||||||||||||
1,598 | 96,166 | 19,643 | 152,335 | 48,519 | ||||||||||||||||||||||
$ | 70,288 | $ | 795,296 | $ | 317,336 | $ | 1,091,128 | $ | 142,312 | |||||||||||||||||
$ | 70,977 | $ | 819,322 | $ | 340,221 | $ | 1,116,166 | $ | 155,432 | |||||||||||||||||
(68 | ) | 1,979 | 470 | 3,403 | 310 | |||||||||||||||||||||
(464 | ) | (6,959 | ) | (17,394 | ) | 12,500 | (9,558 | ) | ||||||||||||||||||
(157 | ) | (17,467 | ) | (5,856 | ) | (37,676 | ) | (4,109 | ) | |||||||||||||||||
— | (367 | ) | (126 | ) | (2,714 | ) | (33 | ) | ||||||||||||||||||
— | — | — | (18 | ) | — | |||||||||||||||||||||
— | — | — | 496 | — | ||||||||||||||||||||||
— | (1,212 | ) | 21 | (1,029 | ) | 270 | ||||||||||||||||||||
$ | 70,288 | $ | 795,296 | $ | 317,336 | $ | 1,091,128 | $ | 142,312 | |||||||||||||||||
— | $ | 80,320 | $ | 16,680 | $ | 75,326 | $ | 5,102 | ||||||||||||||||||
First American Funds 2008 Annual Report 65
Statements ofAssets and Liabilities continued
Inflation | ||||||||||||||||
Core | High Income | Protected | ||||||||||||||
Bond Fund | Bond Fund | Securities Fund | ||||||||||||||
Class A: | ||||||||||||||||
Net assets | $ | 94,571 | $ | 24,420 | $ | 3,294 | ||||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 8,707 | 2,823 | 323 | |||||||||||||
Net asset value and redemption price per share | $ | 10.86 | $ | 8.65 | $ | 10.20 | ||||||||||
Maximum offering price per share1 | $ | 11.34 | $ | 9.03 | $ | 10.65 | ||||||||||
Class B: | ||||||||||||||||
Net assets | $ | 7,733 | $ | 3,496 | — | |||||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 718 | 406 | — | |||||||||||||
Net asset value, offering price, and redemption price per share2 | $ | 10.77 | $ | 8.61 | — | |||||||||||
Class C: | ||||||||||||||||
Net assets | $ | 4,383 | $ | 6,490 | $ | 365 | ||||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 405 | 753 | 36 | |||||||||||||
Net asset value per share2 | $ | 10.83 | $ | 8.62 | $ | 10.18 | ||||||||||
Class R: | ||||||||||||||||
Net assets | $ | 289 | $ | 185 | $ | 1,175 | ||||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 26 | 21 | 115 | |||||||||||||
Net asset value, offering price, and redemption price per share | $ | 10.89 | $ | 8.79 | $ | 10.20 | ||||||||||
Class Y: | ||||||||||||||||
Net assets | $ | 1,468,599 | $ | 204,164 | $ | 278,749 | ||||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 135,257 | 23,588 | 27,318 | |||||||||||||
Net asset value, offering price, and redemption price per share | $ | 10.86 | $ | 8.66 | $ | 10.20 | ||||||||||
1 | The offering price is calculated by dividing the net asset value by 1 minus the maximum sales charge. For a description of front-end sales charges, see note 1 in Notes to Financial Statements. | |
2 | Class B and C have a contingent deferred sales charge. For a description of this sales charge, see notes 1 and 3 in Notes to Financial Statements. |
The accompanying notes are an integral part of the financial statements.
66 First American Funds 2008 Annual Report
Intermediate | ||||||||||||||||||||||||||
Government | Intermediate Term | Short Term | Total Return | U.S. Government | ||||||||||||||||||||||
Bond Fund | Bond Fund | Bond Fund | Bond Fund | Mortgage Fund | ||||||||||||||||||||||
$ | 6,504 | $ | 28,364 | $ | 59,933 | $ | 15,567 | $ | 11,295 | |||||||||||||||||
773 | 2,864 | 6,061 | 1,573 | 1,114 | ||||||||||||||||||||||
$ | 8.42 | $ | 9.90 | $ | 9.89 | $ | 9.90 | $ | 10.14 | |||||||||||||||||
$ | 8.61 | $ | 10.13 | $ | 10.12 | $ | 10.34 | $ | 10.59 | |||||||||||||||||
— | — | — | $ | 2,384 | $ | 3,737 | ||||||||||||||||||||
— | — | — | 242 | 368 | ||||||||||||||||||||||
— | — | — | $ | 9.86 | $ | 10.16 | ||||||||||||||||||||
— | — | — | $ | 3,673 | $ | 2,259 | ||||||||||||||||||||
— | — | — | 373 | 224 | ||||||||||||||||||||||
— | — | — | $ | 9.84 | $ | 10.10 | ||||||||||||||||||||
— | — | — | $ | 293 | $ | 1,585 | ||||||||||||||||||||
— | — | — | 29 | 157 | ||||||||||||||||||||||
— | — | — | $ | 9.95 | $ | 10.12 | ||||||||||||||||||||
$ | 63,784 | $ | 766,932 | $ | 257,403 | $ | 1,069,211 | $ | 123,436 | |||||||||||||||||
7,579 | 77,719 | 26,018 | 108,060 | 12,174 | ||||||||||||||||||||||
$ | 8.42 | $ | 9.87 | $ | 9.89 | $ | 9.89 | $ | 10.14 | |||||||||||||||||
First American Funds 2008 Annual Report 67
Statements ofOperations | For the year ended June 30, 2008, all dollars are rounded to thousands (000) |
Inflation | ||||||||||||||||
Core | High Income | Protected | ||||||||||||||
Bond Fund | Bond Fund | Securities Fund | ||||||||||||||
INVESTMENT INCOME: | ||||||||||||||||
Interest from unaffiliated investments | $ | 89,349 | $ | 20,057 | $ | 15,362 | ||||||||||
Dividends from affiliated money market funds | 844 | 247 | 125 | |||||||||||||
Dividends from unaffiliated investments | 220 | 1,808 | 185 | |||||||||||||
Less: Foreign taxes withheld | — | (26 | ) | (23 | ) | |||||||||||
Securities lending income | 1,692 | 277 | 682 | |||||||||||||
Total investment income | 92,105 | 22,363 | 16,331 | |||||||||||||
EXPENSES (note 3): | ||||||||||||||||
Investment advisory fees | 8,264 | 1,772 | 1,307 | |||||||||||||
Administration fees | 3,707 | 593 | 595 | |||||||||||||
Transfer agent fees | 258 | 133 | 103 | |||||||||||||
Custodian fees | 84 | 12 | 15 | |||||||||||||
Legal fees | 12 | 13 | 12 | |||||||||||||
Audit fees | 37 | 37 | 37 | |||||||||||||
Registration fees | 52 | 51 | 44 | |||||||||||||
Postage and printing fees | 57 | 11 | 6 | |||||||||||||
Directors’ fees | 22 | 26 | 26 | |||||||||||||
Other expenses | 19 | 17 | 17 | |||||||||||||
Distribution and shareholder servicing fees – Class A | 252 | 71 | 8 | |||||||||||||
Distribution and shareholder servicing fees – Class B | 85 | 40 | — | |||||||||||||
Distribution and shareholder servicing fees – Class C | 45 | 71 | 3 | |||||||||||||
Distribution and shareholder servicing fees – Class R | 1 | 1 | 5 | |||||||||||||
Total expenses | 12,895 | 2,848 | 2,178 | |||||||||||||
Less: Fee waivers (note 3) | (962 | ) | (519 | ) | (596 | ) | ||||||||||
Less: Indirect payments from custodian (note 3) | (33 | ) | (2 | ) | (1 | ) | ||||||||||
Total net expenses | 11,900 | 2,327 | 1,581 | |||||||||||||
Investment income – net | 80,205 | 20,036 | 14,750 | |||||||||||||
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS, FUTURES CONTRACTS, OPTIONS WRITTEN, FOREIGN CURRENCY TRANSACTIONS, AND SWAP AGREEMENTS – NET (note 5): | ||||||||||||||||
Net realized gain (loss) on investments | 7,467 | (10,921 | ) | 3,465 | ||||||||||||
Net realized gain (loss) on futures contracts | 5,859 | 1,015 | (606 | ) | ||||||||||||
Net realized gain on options written | 391 | — | 67 | |||||||||||||
Net realized gain on swap agreements | 16,969 | 2,015 | 1,420 | |||||||||||||
Net realized gain (loss) on forward foreign currency contracts, foreign currency, and translation of other assets and liabilities denominated in foreign currency | (11 | ) | — | 5 | ||||||||||||
Net change in unrealized appreciation (depreciation) of investments | (18,072 | ) | (19,004 | ) | 14,716 | |||||||||||
Net change in unrealized appreciation (depreciation) of futures contracts | 1,703 | (84 | ) | 815 | ||||||||||||
Net change in unrealized appreciation (depreciation) of options written | (106 | ) | — | (19 | ) | |||||||||||
Net change in unrealized appreciation (depreciation) of forward foreign currency contracts, foreign currency, and translation of other assets and liabilities denominated in foreign currency | 3 | — | (6 | ) | ||||||||||||
Net change in unrealized appreciation (depreciation) of swap agreements | (3,678 | ) | (175 | ) | (176 | ) | ||||||||||
Net gain (loss) on investments, futures contracts, options written, foreign currency transactions, and swap agreements | 10,525 | (27,154 | ) | 19,681 | ||||||||||||
Net increase (decrease) in net assets resulting from operations | $ | 90,730 | $ | (7,118 | ) | $ | 34,431 | |||||||||
The accompanying notes are an integral part of the financial statements.
68 First American Funds 2008 Annual Report
Intermediate | ||||||||||||||||||||||||||
Government | Intermediate Term | Short Term | Total Return | U.S. Government | ||||||||||||||||||||||
Bond Fund | Bond Fund | Bond Fund | Bond Fund | Mortgage Fund | ||||||||||||||||||||||
$ | 2,354 | $ | 39,957 | $ | 17,564 | $ | 55,901 | $ | 8,046 | |||||||||||||||||
44 | 721 | 311 | 1,650 | 88 | ||||||||||||||||||||||
— | 105 | — | 936 | — | ||||||||||||||||||||||
— | — | — | (80 | ) | — | |||||||||||||||||||||
— | 634 | 162 | 1,059 | 110 | ||||||||||||||||||||||
2,398 | 41,417 | 18,037 | 59,466 | 8,244 | ||||||||||||||||||||||
286 | 3,960 | 1,727 | 6,051 | 743 | ||||||||||||||||||||||
139 | 1,781 | 793 | 2,314 | 350 | ||||||||||||||||||||||
64 | 57 | 117 | 130 | 130 | ||||||||||||||||||||||
3 | 40 | 17 | 46 | 13 | ||||||||||||||||||||||
13 | 11 | 12 | 14 | 13 | ||||||||||||||||||||||
37 | 37 | 37 | 37 | 37 | ||||||||||||||||||||||
26 | 27 | 28 | 52 | 51 | ||||||||||||||||||||||
2 | 16 | 15 | 31 | 6 | ||||||||||||||||||||||
27 | 25 | 25 | 25 | 26 | ||||||||||||||||||||||
16 | 16 | 16 | 18 | 17 | ||||||||||||||||||||||
11 | 73 | 160 | 38 | 31 | ||||||||||||||||||||||
— | — | — | �� | 22 | 43 | |||||||||||||||||||||
— | — | — | 29 | 26 | ||||||||||||||||||||||
— | — | — | 1 | 4 | ||||||||||||||||||||||
624 | 6,043 | 2,947 | 8,808 | 1,490 | ||||||||||||||||||||||
(275 | ) | (472 | ) | (787 | ) | (1,194 | ) | (347 | ) | |||||||||||||||||
— | (10 | ) | (10 | ) | (26 | ) | (2 | ) | ||||||||||||||||||
349 | 5,561 | 2,150 | 7,588 | 1,141 | ||||||||||||||||||||||
2,049 | 35,856 | 15,887 | 51,878 | 7,103 | ||||||||||||||||||||||
1,212 | 7,883 | 245 | 11,426 | 651 | ||||||||||||||||||||||
— | 4,339 | (227 | ) | 3,259 | (3,511 | ) | ||||||||||||||||||||
— | 193 | — | 2,228 | — | ||||||||||||||||||||||
— | 6,796 | 3,111 | 13,903 | 1,122 | ||||||||||||||||||||||
— | — | (98 | ) | (74 | ) | — | ||||||||||||||||||||
694 | (7,558 | ) | (2,442 | ) | (25,631 | ) | 210 | |||||||||||||||||||
— | 800 | (279 | ) | (1,248 | ) | 293 | ||||||||||||||||||||
— | (51 | ) | — | 447 | — | |||||||||||||||||||||
— | — | — | (33 | ) | — | |||||||||||||||||||||
— | (1,465 | ) | (660 | ) | (4,335 | ) | 145 | |||||||||||||||||||
1,906 | 10,937 | (350 | ) | (58 | ) | (1,090 | ) | |||||||||||||||||||
$ | 3,955 | $ | 46,793 | $ | 15,537 | $ | 51,820 | $ | 6,013 | |||||||||||||||||
First American Funds 2008 Annual Report 69
Statements ofChanges in Net Assets | all dollars are rounded to thousands (000) |
Inflation | ||||||||||||||||||||||||||||
Core | High Income | Protected | ||||||||||||||||||||||||||
Bond Fund | Bond Fund | Securities Fund | ||||||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||||||
6/30/08 | 6/30/07 | 6/30/08 | 6/30/07 | 6/30/08 | 6/30/07 | |||||||||||||||||||||||
OPERATIONS: | ||||||||||||||||||||||||||||
Investment income – net | $ | 80,205 | $ | 78,646 | $ | 20,036 | $ | 18,536 | $ | 14,750 | $ | 13,843 | ||||||||||||||||
Net realized gain (loss) on investments | 7,467 | 2,444 | (10,921 | ) | 5,698 | 3,465 | (7,110 | ) | ||||||||||||||||||||
Net realized gain (loss) on futures contracts | 5,859 | (8,478 | ) | 1,015 | (313 | ) | (606 | ) | (3,083 | ) | ||||||||||||||||||
Net realized gain (loss) on options written | 391 | (971 | ) | — | — | 67 | (170 | ) | ||||||||||||||||||||
Net realized gain (loss) on swap agreements | 16,969 | (843 | ) | 2,015 | (23 | ) | 1,420 | 226 | ||||||||||||||||||||
Net realized gain (loss) on forward foreign currency contracts, foreign currency, and translation of other assets and liabilities denominated in foreign currency | (11 | ) | — | — | — | 5 | (6 | ) | ||||||||||||||||||||
Net change in unrealized appreciation (depreciation) of investments | (18,072 | ) | 26,693 | (19,004 | ) | 4,974 | 14,716 | 5,075 | ||||||||||||||||||||
Net change in unrealized appreciation (depreciation) of futures contracts | 1,703 | (2,554 | ) | (84 | ) | (83 | ) | 815 | (1,064 | ) | ||||||||||||||||||
Net change in unrealized appreciation (depreciation) of options written | (106 | ) | 106 | — | — | (19 | ) | 19 | ||||||||||||||||||||
Net change in unrealized appreciation (depreciation) of foreign currency and translation of other assets and liabilities denominated in foreign currency | 3 | (1 | ) | — | — | (6 | ) | 6 | ||||||||||||||||||||
Net change in unrealized appreciation (depreciation) of swap agreements | (3,678 | ) | 2,528 | (175 | ) | 425 | (176 | ) | 709 | |||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 90,730 | 97,570 | (7,118 | ) | 29,214 | 34,431 | 8,445 | |||||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | ||||||||||||||||||||||||||||
Investment income – net: | ||||||||||||||||||||||||||||
Class A | (4,504 | ) | (5,096 | ) | (2,154 | ) | (2,206 | ) | (162 | ) | (169 | ) | ||||||||||||||||
Class B | (318 | ) | (445 | ) | (275 | ) | (343 | ) | — | — | ||||||||||||||||||
Class C | (169 | ) | (168 | ) | (487 | ) | (530 | ) | (16 | ) | (14 | ) | ||||||||||||||||
Class R | (10 | ) | (2 | ) | (14 | ) | (7 | ) | (52 | ) | (17 | ) | ||||||||||||||||
Class Y | (72,552 | ) | (75,482 | ) | (16,811 | ) | (15,405 | ) | (14,266 | ) | (12,854 | ) | ||||||||||||||||
Return of capital: | ||||||||||||||||||||||||||||
Class A | — | — | — | — | — | — | ||||||||||||||||||||||
Class B | — | — | — | — | — | — | ||||||||||||||||||||||
Class C | — | — | — | — | — | — | ||||||||||||||||||||||
Class R | — | — | — | — | — | — | ||||||||||||||||||||||
Class Y | — | — | — | — | — | — | ||||||||||||||||||||||
Total distributions | (77,553 | ) | (81,193 | ) | (19,741 | ) | (18,491 | ) | (14,496 | ) | (13,054 | ) | ||||||||||||||||
CAPITAL SHARE TRANSACTIONS (note 4): | ||||||||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||||||
Proceeds from sales | 10,204 | 12,244 | 13,748 | 12,086 | 929 | 861 | ||||||||||||||||||||||
Reinvestment of distributions | 3,468 | 3,707 | 1,384 | 1,272 | 118 | 137 | ||||||||||||||||||||||
Payments for redemptions | (22,665 | ) | (49,528 | ) | (16,878 | ) | (15,468 | ) | (689 | ) | (3,265 | ) | ||||||||||||||||
Increase (decrease) in net assets from Class A transactions | (8,993 | ) | (33,577 | ) | (1,746 | ) | (2,110 | ) | 358 | (2,267 | ) | |||||||||||||||||
Class B: | ||||||||||||||||||||||||||||
Proceeds from sales | 634 | 365 | 169 | 309 | — | — | ||||||||||||||||||||||
Reinvestment of distributions | 290 | 400 | 167 | 182 | — | — | ||||||||||||||||||||||
Payments for redemptions | (2,905 | ) | (5,117 | ) | (1,225 | ) | (1,926 | ) | — | — | ||||||||||||||||||
Increase (decrease) in net assets from Class B transactions | (1,981 | ) | (4,352 | ) | (889 | ) | (1,435 | ) | — | — | ||||||||||||||||||
Class C: | ||||||||||||||||||||||||||||
Proceeds from sales | 826 | 1,057 | 882 | 1,662 | 252 | 106 | ||||||||||||||||||||||
Reinvestment of distributions | 144 | 151 | 260 | 294 | 9 | 12 | ||||||||||||||||||||||
Payments for redemptions | (1,184 | ) | (1,862 | ) | (2,406 | ) | (3,685 | ) | (265 | ) | (318 | ) | ||||||||||||||||
Increase (decrease) in net assets from Class C transactions | (214 | ) | (654 | ) | (1,264 | ) | (1,729 | ) | (4 | ) | (200 | ) | ||||||||||||||||
Class R: | ||||||||||||||||||||||||||||
Proceeds from sales | 340 | 41 | 238 | 113 | 390 | 1,090 | ||||||||||||||||||||||
Reinvestment of distributions | 10 | 2 | 4 | 2 | 52 | 17 | ||||||||||||||||||||||
Payments for redemptions | (127 | ) | (12 | ) | (227 | ) | (4 | ) | (163 | ) | (263 | ) | ||||||||||||||||
Increase in net assets from Class R transactions | 223 | 31 | 15 | 111 | 279 | 844 | ||||||||||||||||||||||
Class Y: | ||||||||||||||||||||||||||||
Proceeds from sales | 288,760 | 456,400 | 38,777 | 65,080 | 119,279 | 126,455 | ||||||||||||||||||||||
Reinvestment of distributions | 19,639 | 22,047 | 1,842 | 1,958 | 3,012 | 3,302 | ||||||||||||||||||||||
Payments for redemptions | (382,775 | ) | (642,519 | ) | (46,573 | ) | (48,035 | ) | (136,470 | ) | (169,903 | ) | ||||||||||||||||
Increase (decrease) in net assets from Class Y transactions | (74,376 | ) | (164,072 | ) | (5,954 | ) | 19,003 | (14,179 | ) | (40,146 | ) | |||||||||||||||||
Increase (decrease) in net assets from capital share transactions | (85,341 | ) | (202,624 | ) | (9,838 | ) | 13,840 | (13,546 | ) | (41,769 | ) | |||||||||||||||||
Total increase (decrease) in net assets | (72,164 | ) | (186,247 | ) | (36,697 | ) | 24,563 | 6,389 | (46,378 | ) | ||||||||||||||||||
Net assets at beginning of year | 1,647,739 | 1,833,986 | 275,452 | 250,889 | 277,194 | 323,572 | ||||||||||||||||||||||
Net assets at end of year | $ | 1,575,575 | $ | 1,647,739 | $ | 238,755 | $ | 275,452 | $ | 283,583 | $ | 277,194 | ||||||||||||||||
Undistributed (distributions in excess of) net investment income at end of year | $ | 3,698 | $ | 8 | $ | 872 | $ | 204 | $ | 2,576 | $ | 2,196 | ||||||||||||||||
The accompanying notes are an integral part of the financial statements.
70 First American Funds 2008 Annual Report
Intermediate | ||||||||||||||||||||||||||||||||||||||||||||||
Government | Intermediate Term | Short Term | Total Return | U.S. Government | ||||||||||||||||||||||||||||||||||||||||||
Bond Fund | Bond Fund | Bond Fund | Bond Fund | Mortgage Fund | ||||||||||||||||||||||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||||||||||||||||||||
6/30/08 | 6/30/07 | 6/30/08 | 6/30/07 | 6/30/08 | 6/30/07 | 6/30/08 | 6/30/07 | 6/30/08 | 6/30/07 | |||||||||||||||||||||||||||||||||||||
$ | 2,049 | $ | 1,557 | $ | 35,856 | $ | 36,153 | $ | 15,887 | $ | 17,211 | $ | 51,878 | $ | 28,135 | $ | 7,103 | $ | 7,467 | |||||||||||||||||||||||||||
1,212 | (71 | ) | 7,883 | (6,208 | ) | 245 | (802 | ) | 11,426 | 291 | 651 | (298 | ) | |||||||||||||||||||||||||||||||||
— | — | 4,339 | (2,552 | ) | (227 | ) | (1,869 | ) | 3,259 | (7,840 | ) | (3,511 | ) | (297 | ) | |||||||||||||||||||||||||||||||
— | — | 193 | (469 | ) | — | — | 2,228 | (927 | ) | — | 9 | |||||||||||||||||||||||||||||||||||
— | — | 6,796 | (109 | ) | 3,111 | (2,207 | ) | 13,903 | (630 | ) | 1,122 | (211 | ) | |||||||||||||||||||||||||||||||||
— | — | — | — | (98 | ) | — | (74 | ) | (4 | ) | — | — | ||||||||||||||||||||||||||||||||||
694 | 445 | (7,558 | ) | 17,176 | (2,442 | ) | 6,959 | (25,631 | ) | (1,610 | ) | 210 | 2,010 | |||||||||||||||||||||||||||||||||
— | — | 800 | (1,501 | ) | (279 | ) | (114 | ) | (1,248 | ) | (1,956 | ) | 293 | (396 | ) | |||||||||||||||||||||||||||||||
— | — | (51 | ) | 51 | — | — | 447 | 49 | — | — | ||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | (33 | ) | 20 | — | — | ||||||||||||||||||||||||||||||||||||
— | — | (1,465 | ) | 885 | (660 | ) | 2,978 | (4,335 | ) | 3,872 | 145 | 206 | ||||||||||||||||||||||||||||||||||
3,955 | 1,931 | 46,793 | 43,426 | 15,537 | 22,156 | 51,820 | 19,400 | 6,013 | 8,490 | |||||||||||||||||||||||||||||||||||||
(152 | ) | (68 | ) | (1,209 | ) | (1,454 | ) | (2,764 | ) | (2,768 | ) | (708 | ) | (649 | ) | (576 | ) | (698 | ) | |||||||||||||||||||||||||||
— | — | — | — | — | — | (89 | ) | (118 | ) | (167 | ) | (215 | ) | |||||||||||||||||||||||||||||||||
— | — | — | — | — | — | (116 | ) | (89 | ) | (102 | ) | (155 | ) | |||||||||||||||||||||||||||||||||
— | — | — | — | — | — | (11 | ) | (8 | ) | (35 | ) | (1 | ) | |||||||||||||||||||||||||||||||||
(1,931 | ) | (1,581 | ) | (32,706 | ) | (35,682 | ) | (12,551 | ) | (15,209 | ) | (48,984 | ) | (27,836 | ) | (6,259 | ) | (6,635 | ) | |||||||||||||||||||||||||||
— | (6 | ) | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
— | (145 | ) | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
(2,083 | ) | (1,800 | ) | (33,915 | ) | (37,136 | ) | (15,315 | ) | (17,977 | ) | (49,908 | ) | (28,700 | ) | (7,139 | ) | (7,704 | ) | |||||||||||||||||||||||||||
5,998 | 238 | 4,210 | 3,095 | 2,014 | 1,152 | 6,610 | 2,065 | 788 | 1,733 | |||||||||||||||||||||||||||||||||||||
137 | 59 | 1,005 | 1,220 | 2,093 | 2,062 | 551 | 528 | 496 | 578 | |||||||||||||||||||||||||||||||||||||
(1,341 | ) | (368 | ) | (8,047 | ) | (12,242 | ) | (10,889 | ) | (15,868 | ) | (4,841 | ) | (4,915 | ) | (3,686 | ) | (4,681 | ) | |||||||||||||||||||||||||||
4,794 | (71 | ) | (2,832 | ) | (7,927 | ) | (6,782 | ) | (12,654 | ) | 2,320 | (2,322 | ) | (2,402 | ) | (2,370 | ) | |||||||||||||||||||||||||||||
— | — | — | — | — | — | 676 | 210 | 161 | 139 | |||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | 61 | 93 | 139 | 183 | |||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | (632 | ) | (1,703 | ) | (1,458 | ) | (2,049 | ) | |||||||||||||||||||||||||||||||||
— | — | — | — | — | — | 105 | (1,400 | ) | (1,158 | ) | (1,727 | ) | ||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | 2,257 | 451 | 140 | 203 | |||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | 77 | 42 | 85 | 124 | |||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | (423 | ) | (1,201 | ) | (1,029 | ) | (2,428 | ) | |||||||||||||||||||||||||||||||||
— | — | — | — | — | — | 1,911 | (708 | ) | (804 | ) | (2,101 | ) | ||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | 196 | 226 | 1,688 | 199 | |||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | 11 | 8 | 35 | 1 | |||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | (131 | ) | (28 | ) | (312 | ) | (2 | ) | |||||||||||||||||||||||||||||||||
— | — | — | — | — | — | 76 | 206 | 1,411 | 198 | |||||||||||||||||||||||||||||||||||||
44,048 | 11,335 | 184,766 | 145,939 | 46,206 | 74,058 | 441,760 | 654,313 | 26,624 | 31,689 | |||||||||||||||||||||||||||||||||||||
1,098 | 621 | 10,529 | 12,835 | 4,114 | 5,134 | 17,097 | 7,572 | 1,299 | 1,243 | |||||||||||||||||||||||||||||||||||||
(20,848 | ) | (17,162 | ) | (193,684 | ) | (310,969 | ) | (104,277 | ) | (226,300 | ) | (243,047 | ) | (179,399 | ) | (37,478 | ) | (39,967 | ) | |||||||||||||||||||||||||||
24,298 | (5,206 | ) | 1,611 | (152,195 | ) | (53,957 | ) | (147,108 | ) | 215,810 | 482,486 | (9,555 | ) | (7,035 | ) | |||||||||||||||||||||||||||||||
29,092 | (5,277 | ) | (1,221 | ) | (160,122 | ) | (60,739 | ) | (159,762 | ) | 220,222 | 478,262 | (12,508 | ) | (13,035 | ) | ||||||||||||||||||||||||||||||
30,964 | (5,146 | ) | 11,657 | (153,832 | ) | (60,517 | ) | (155,583 | ) | 222,134 | 468,962 | (13,634 | ) | (12,249 | ) | |||||||||||||||||||||||||||||||
39,324 | 44,470 | 783,639 | 937,471 | 377,853 | 533,436 | 868,994 | 400,032 | 155,946 | 168,195 | |||||||||||||||||||||||||||||||||||||
$ | 70,288 | $ | 39,324 | $ | 795,296 | $ | 783,639 | $ | 317,336 | $ | 377,853 | $ | 1,091,128 | $ | 868,994 | $ | 142,312 | $ | 155,946 | |||||||||||||||||||||||||||
$ | (68 | ) | $ | (58 | ) | $ | 1,979 | $ | 126 | $ | 470 | $ | 338 | $ | 3,403 | $ | (252 | ) | $ | 310 | $ | 76 | ||||||||||||||||||||||||
First American Funds 2008 Annual Report 71
Financial Highlights For a share outstanding throughout the indicated periods.
Realized and | |||||||||||||||||||||||||||||||||||||||||
Net Asset | Unrealized | Distributions | Net Asset | ||||||||||||||||||||||||||||||||||||||
Value | Net | Gains | Total from | from Net | Distributions | Value | |||||||||||||||||||||||||||||||||||
Beginning | Investment | (Losses) on | Investment | Investment | from Net | End of | |||||||||||||||||||||||||||||||||||
of Period | Income | Investments | Operations | Income | Realized Gains | Total Distributions | Period | ||||||||||||||||||||||||||||||||||
Core Bond Fund | |||||||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||||||
20081,2 | $ | 10.79 | $ | 0.51 | $ | 0.05 | $ | 0.56 | $ | (0.49 | ) | $ | — | $ | (0.49 | ) | $ | 10.86 | |||||||||||||||||||||||
20071,2 | 10.71 | 0.47 | 0.09 | 0.56 | (0.48 | ) | — | (0.48 | ) | 10.79 | |||||||||||||||||||||||||||||||
20061,3 | 11.15 | 0.33 | (0.37 | ) | (0.04 | ) | (0.33 | ) | (0.07 | ) | (0.40 | ) | 10.71 | ||||||||||||||||||||||||||||
20051,4 | 11.27 | 0.40 | (0.09 | ) | 0.31 | (0.42 | ) | (0.01 | ) | (0.43 | ) | 11.15 | |||||||||||||||||||||||||||||
20041,4 | 11.56 | 0.38 | (0.09 | ) | 0.29 | (0.41 | ) | (0.17 | ) | (0.58 | ) | 11.27 | |||||||||||||||||||||||||||||
20034 | 11.45 | 0.42 | 0.15 | 0.57 | (0.46 | ) | — | (0.46 | ) | 11.56 | |||||||||||||||||||||||||||||||
Class B | |||||||||||||||||||||||||||||||||||||||||
20081,2 | $ | 10.70 | $ | 0.42 | $ | 0.06 | $ | 0.48 | $ | (0.41 | ) | $ | — | $ | (0.41 | ) | $ | 10.77 | |||||||||||||||||||||||
20071,2 | 10.63 | 0.38 | 0.09 | 0.47 | (0.40 | ) | — | (0.40 | ) | 10.70 | |||||||||||||||||||||||||||||||
20061,3 | 11.07 | 0.26 | (0.36 | ) | (0.10 | ) | (0.27 | ) | (0.07 | ) | (0.34 | ) | 10.63 | ||||||||||||||||||||||||||||
20051,4 | 11.19 | 0.31 | (0.09 | ) | 0.22 | (0.33 | ) | (0.01 | ) | (0.34 | ) | 11.07 | |||||||||||||||||||||||||||||
20041,4 | 11.48 | 0.29 | (0.09 | ) | 0.20 | (0.32 | ) | (0.17 | ) | (0.49 | ) | 11.19 | |||||||||||||||||||||||||||||
20034 | 11.38 | 0.35 | 0.12 | 0.47 | (0.37 | ) | — | (0.37 | ) | 11.48 | |||||||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||||||
20081,2 | $ | 10.75 | $ | 0.43 | $ | 0.06 | $ | 0.49 | $ | (0.41 | ) | $ | — | $ | (0.41 | ) | $ | 10.83 | |||||||||||||||||||||||
20071,2 | 10.67 | 0.38 | 0.10 | 0.48 | (0.40 | ) | — | (0.40 | ) | 10.75 | |||||||||||||||||||||||||||||||
20061,3 | 11.12 | 0.26 | (0.37 | ) | (0.11 | ) | (0.27 | ) | (0.07 | ) | (0.34 | ) | 10.67 | ||||||||||||||||||||||||||||
20051,4 | 11.24 | 0.31 | (0.09 | ) | 0.22 | (0.33 | ) | (0.01 | ) | (0.34 | ) | 11.12 | |||||||||||||||||||||||||||||
20041,4 | 11.53 | 0.29 | (0.09 | ) | 0.20 | (0.32 | ) | (0.17 | ) | (0.49 | ) | 11.24 | |||||||||||||||||||||||||||||
20034 | 11.42 | 0.34 | 0.14 | 0.48 | (0.37 | ) | — | (0.37 | ) | 11.53 | |||||||||||||||||||||||||||||||
Class R5 | |||||||||||||||||||||||||||||||||||||||||
20081,2 | $ | 10.81 | $ | 0.49 | $ | 0.05 | $ | 0.54 | $ | (0.46 | ) | $ | — | $ | (0.46 | ) | $ | 10.89 | |||||||||||||||||||||||
20071,2 | 10.73 | 0.44 | 0.09 | 0.53 | (0.45 | ) | — | (0.45 | ) | 10.81 | |||||||||||||||||||||||||||||||
20061,3 | 11.17 | 0.31 | (0.36 | ) | (0.05 | ) | (0.32 | ) | (0.07 | ) | (0.39 | ) | 10.73 | ||||||||||||||||||||||||||||
20051,4 | 11.30 | 0.38 | (0.10 | ) | 0.28 | (0.40 | ) | (0.01 | ) | (0.41 | ) | 11.17 | |||||||||||||||||||||||||||||
20041,4 | 11.56 | 0.38 | (0.10 | ) | 0.28 | (0.37 | ) | (0.17 | ) | (0.54 | ) | 11.30 | |||||||||||||||||||||||||||||
20034 | 11.45 | 0.42 | 0.15 | 0.57 | (0.46 | ) | — | (0.46 | ) | 11.56 | |||||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||||||
20081,2 | $ | 10.78 | $ | 0.54 | $ | 0.06 | $ | 0.60 | $ | (0.52 | ) | $ | — | $ | (0.52 | ) | $ | 10.86 | |||||||||||||||||||||||
20071,2 | 10.70 | 0.49 | 0.10 | 0.59 | (0.51 | ) | — | (0.51 | ) | 10.78 | |||||||||||||||||||||||||||||||
20061,3 | 11.15 | 0.35 | (0.38 | ) | (0.03 | ) | (0.35 | ) | (0.07 | ) | (0.42 | ) | 10.70 | ||||||||||||||||||||||||||||
20051,4 | 11.27 | 0.42 | (0.08 | ) | 0.34 | (0.45 | ) | (0.01 | ) | (0.46 | ) | 11.15 | |||||||||||||||||||||||||||||
20041,4 | 11.56 | 0.40 | (0.08 | ) | 0.32 | (0.44 | ) | (0.17 | ) | (0.61 | ) | 11.27 | |||||||||||||||||||||||||||||
20034 | 11.45 | 0.45 | 0.15 | 0.60 | (0.49 | ) | — | (0.49 | ) | 11.56 | |||||||||||||||||||||||||||||||
1 | Per share data calculated using average shares outstanding method. |
2 | For the period July 1 to June 30 in the fiscal year indicated. |
3 | For the nine-month period October 1, 2005 to June 30, 2006. Effective in 2006, the fund’s fiscal year-end was changed from September 30 to June 30. All ratios for the period have been annualized, except total return and portfolio turnover. |
4 | For the period October 1 to September 30 in the fiscal year indicated. |
5 | Prior to July 1, 2004, Class R shares were named Class S shares, which had lower fees and expenses. |
6 | Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived. |
The accompanying notes are an integral part of the financial statements.
72 First American Funds 2008 Annual Report
Ratio of Net | ||||||||||||||||||||||||||||||||||||
Ratio of | Investment | |||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses | Income | ||||||||||||||||||||||||||||||||||
Ratio of | Investment | to Average | to Average | |||||||||||||||||||||||||||||||||
Net Assets | Expenses | Income | Net Assets | Net Assets | Portfolio | |||||||||||||||||||||||||||||||
Total | End of | to Average | to Average | (Excluding | (Excluding | Turnover | ||||||||||||||||||||||||||||||
Return6 | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | ||||||||||||||||||||||||||||||
5.24 | % | $ | 94,571 | 0.95 | % | 4.63 | % | 1.01 | % | 4.57 | % | 131 | % | |||||||||||||||||||||||
5.26 | 102,723 | 0.95 | 4.25 | 1.01 | 4.19 | 137 | ||||||||||||||||||||||||||||||
(0.34 | ) | 134,845 | 0.95 | 3.98 | 1.03 | 3.90 | 139 | |||||||||||||||||||||||||||||
2.75 | 161,410 | 0.95 | 3.51 | 1.05 | 3.41 | 208 | ||||||||||||||||||||||||||||||
2.60 | 184,805 | 0.95 | 3.30 | 1.05 | 3.20 | 182 | ||||||||||||||||||||||||||||||
5.08 | 191,754 | 0.95 | 3.58 | 1.05 | 3.48 | 196 | ||||||||||||||||||||||||||||||
4.50 | % | $ | 7,733 | 1.70 | % | 3.87 | % | 1.76 | % | 3.81 | % | 131 | % | |||||||||||||||||||||||
4.41 | 9,634 | 1.70 | 3.50 | 1.76 | 3.44 | 137 | ||||||||||||||||||||||||||||||
(0.91 | ) | 13,819 | 1.70 | 3.23 | 1.78 | 3.15 | 139 | |||||||||||||||||||||||||||||
2.00 | 17,078 | 1.70 | 2.76 | 1.80 | 2.66 | 208 | ||||||||||||||||||||||||||||||
1.83 | 21,046 | 1.70 | 2.58 | 1.80 | 2.48 | 182 | ||||||||||||||||||||||||||||||
4.23 | 28,096 | 1.70 | 2.83 | 1.80 | 2.73 | 196 | ||||||||||||||||||||||||||||||
4.57 | % | $ | 4,383 | 1.70 | % | 3.89 | % | 1.76 | % | 3.83 | % | 131 | % | |||||||||||||||||||||||
4.48 | 4,567 | 1.70 | 3.50 | 1.76 | 3.44 | 137 | ||||||||||||||||||||||||||||||
(1.01 | ) | 5,183 | 1.70 | 3.22 | 1.78 | 3.14 | 139 | |||||||||||||||||||||||||||||
1.99 | 7,266 | 1.70 | 2.76 | 1.80 | 2.66 | 208 | ||||||||||||||||||||||||||||||
1.81 | 9,132 | 1.70 | 2.58 | 1.80 | 2.48 | 182 | ||||||||||||||||||||||||||||||
4.30 | 13,424 | 1.70 | 2.85 | 1.80 | 2.75 | 196 | ||||||||||||||||||||||||||||||
5.06 | % | $ | 289 | 1.20 | % | 4.42 | % | 1.26 | % | 4.36 | % | 131 | % | |||||||||||||||||||||||
4.99 | 65 | 1.20 | 4.01 | 1.29 | 3.92 | 137 | ||||||||||||||||||||||||||||||
(0.51 | ) | 34 | 1.20 | 3.77 | 1.43 | 3.54 | 139 | |||||||||||||||||||||||||||||
2.51 | 16 | 1.20 | 3.37 | 1.45 | 3.12 | 208 | ||||||||||||||||||||||||||||||
2.53 | 1 | 0.95 | 3.37 | 1.05 | 3.27 | 182 | ||||||||||||||||||||||||||||||
5.08 | 39,236 | 0.95 | 3.58 | 1.05 | 3.48 | 196 | ||||||||||||||||||||||||||||||
5.60 | % | $ | 1,468,599 | 0.70 | % | 4.88 | % | 0.76 | % | 4.82 | % | 131 | % | |||||||||||||||||||||||
5.53 | 1,530,750 | 0.70 | 4.50 | 0.76 | 4.44 | 137 | ||||||||||||||||||||||||||||||
(0.24 | ) | 1,680,105 | 0.70 | 4.24 | 0.78 | 4.16 | 139 | |||||||||||||||||||||||||||||
3.01 | 1,725,850 | 0.70 | 3.77 | 0.80 | 3.67 | 208 | ||||||||||||||||||||||||||||||
2.87 | 1,740,470 | 0.70 | 3.58 | 0.80 | 3.48 | 182 | ||||||||||||||||||||||||||||||
5.34 | 1,955,909 | 0.70 | 3.83 | 0.80 | 3.73 | 196 | ||||||||||||||||||||||||||||||
First American Funds 2008 Annual Report 73
Financial Highlights For a share outstanding throughout the indicated periods.
Realized and | |||||||||||||||||||||||||||||||||||||||||
Net Asset | Unrealized | Distributions | Net Asset | ||||||||||||||||||||||||||||||||||||||
Value | Net | Gains | Total from | from Net | Distributions | Value | |||||||||||||||||||||||||||||||||||
Beginning | Investment | (Losses) on | Investment | Investment | from Net | Total | End of | ||||||||||||||||||||||||||||||||||
of Period | Income | Investments | Operations | Income | Realized Gains | Distributions | Period | ||||||||||||||||||||||||||||||||||
High Income Bond Fund1,2 | |||||||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||||||
20083 | $ | 9.61 | $ | 0.71 | $ | (0.97 | ) | $ | (0.26 | ) | $ | (0.70 | ) | $ | — | $ | (0.70 | ) | $ | 8.65 | |||||||||||||||||||||
20073 | 9.22 | 0.65 | 0.38 | 1.03 | (0.64 | ) | — | (0.64 | ) | 9.61 | |||||||||||||||||||||||||||||||
20064 | 9.41 | 0.49 | (0.20 | ) | 0.29 | (0.48 | ) | — | (0.48 | ) | 9.22 | ||||||||||||||||||||||||||||||
20055 | 9.45 | 0.66 | (0.04 | ) | 0.62 | (0.66 | ) | — | (0.66 | ) | 9.41 | ||||||||||||||||||||||||||||||
20045 | 9.13 | 0.68 | 0.32 | 1.00 | (0.68 | ) | — | (0.68 | ) | 9.45 | |||||||||||||||||||||||||||||||
20035 | 7.90 | 0.68 | 1.24 | 1.92 | (0.69 | ) | — | (0.69 | ) | 9.13 | |||||||||||||||||||||||||||||||
Class B | |||||||||||||||||||||||||||||||||||||||||
20083 | $ | 9.57 | $ | 0.63 | $ | (0.96 | ) | $ | (0.33 | ) | $ | (0.63 | ) | $ | — | $ | (0.63 | ) | $ | 8.61 | |||||||||||||||||||||
20073 | 9.18 | 0.57 | 0.39 | 0.96 | (0.57 | ) | — | (0.57 | ) | 9.57 | |||||||||||||||||||||||||||||||
20064 | 9.37 | 0.43 | (0.19 | ) | 0.24 | (0.43 | ) | — | (0.43 | ) | 9.18 | ||||||||||||||||||||||||||||||
20055 | 9.41 | 0.58 | (0.03 | ) | 0.55 | (0.59 | ) | — | (0.59 | ) | 9.37 | ||||||||||||||||||||||||||||||
20045 | 9.09 | 0.61 | 0.32 | 0.93 | (0.61 | ) | — | (0.61 | ) | 9.41 | |||||||||||||||||||||||||||||||
20035 | 7.87 | 0.61 | 1.24 | 1.85 | (0.63 | ) | — | (0.63 | ) | 9.09 | |||||||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||||||
20083 | $ | 9.58 | $ | 0.63 | $ | (0.96 | ) | $ | (0.33 | ) | $ | (0.63 | ) | $ | — | $ | (0.63 | ) | $ | 8.62 | |||||||||||||||||||||
20073 | 9.19 | 0.57 | 0.39 | 0.96 | (0.57 | ) | — | (0.57 | ) | 9.58 | |||||||||||||||||||||||||||||||
20064 | 9.38 | 0.43 | (0.19 | ) | 0.24 | (0.43 | ) | — | (0.43 | ) | 9.19 | ||||||||||||||||||||||||||||||
20055 | 9.42 | 0.58 | (0.03 | ) | 0.55 | (0.59 | ) | — | (0.59 | ) | 9.38 | ||||||||||||||||||||||||||||||
20045 | 9.10 | 0.61 | 0.32 | 0.93 | (0.61 | ) | — | (0.61 | ) | 9.42 | |||||||||||||||||||||||||||||||
20035 | 7.89 | 0.61 | 1.23 | 1.84 | (0.63 | ) | — | (0.63 | ) | 9.10 | |||||||||||||||||||||||||||||||
Class R6 | |||||||||||||||||||||||||||||||||||||||||
20083 | $ | 9.75 | $ | 0.69 | $ | (0.98 | ) | $ | (0.29 | ) | $ | (0.67 | ) | $ | — | $ | (0.67 | ) | $ | 8.79 | |||||||||||||||||||||
20073 | 9.35 | 0.62 | 0.40 | 1.02 | (0.62 | ) | — | (0.62 | ) | 9.75 | |||||||||||||||||||||||||||||||
20064 | 9.53 | 0.49 | (0.20 | ) | 0.29 | (0.47 | ) | — | (0.47 | ) | 9.35 | ||||||||||||||||||||||||||||||
20055 | 9.60 | 0.62 | (0.04 | ) | 0.58 | (0.65 | ) | — | (0.65 | ) | 9.53 | ||||||||||||||||||||||||||||||
20045 | 9.21 | 0.69 | 0.32 | 1.01 | (0.62 | ) | — | (0.62 | ) | 9.60 | |||||||||||||||||||||||||||||||
20035 | 7.98 | 0.71 | 1.22 | 1.93 | (0.70 | ) | — | (0.70 | ) | 9.21 | |||||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||||||
20083 | $ | 9.62 | $ | 0.73 | $ | (0.97 | ) | $ | (0.24 | ) | $ | (0.72 | ) | $ | — | $ | (0.72 | ) | $ | 8.66 | |||||||||||||||||||||
20073 | 9.23 | 0.67 | 0.39 | 1.06 | (0.67 | ) | — | (0.67 | ) | 9.62 | |||||||||||||||||||||||||||||||
20064 | 9.42 | 0.51 | (0.20 | ) | 0.31 | (0.50 | ) | — | (0.50 | ) | 9.23 | ||||||||||||||||||||||||||||||
20055 | 9.46 | 0.68 | (0.03 | ) | 0.65 | (0.69 | ) | — | (0.69 | ) | 9.42 | ||||||||||||||||||||||||||||||
20045 | 9.13 | 0.70 | 0.34 | 1.04 | (0.71 | ) | — | (0.71 | ) | 9.46 | |||||||||||||||||||||||||||||||
20035 | 7.92 | 0.69 | 1.24 | 1.93 | (0.72 | ) | — | (0.72 | ) | 9.13 | |||||||||||||||||||||||||||||||
Inflation Protected Securities Fund2 | |||||||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||||||
20083 | $ | 9.43 | $ | 0.54 | $ | 0.76 | $ | 1.30 | $ | (0.53 | ) | $ | — | $ | (0.53 | ) | $ | 10.20 | |||||||||||||||||||||||
20073 | 9.54 | 0.39 | (0.16 | ) | 0.23 | (0.34 | ) | — | (0.34 | ) | 9.43 | ||||||||||||||||||||||||||||||
20064 | 10.12 | 0.38 | (0.55 | ) | (0.17 | ) | (0.40 | ) | (0.01 | ) | (0.41 | ) | 9.54 | ||||||||||||||||||||||||||||
20057 | 10.00 | 0.51 | (0.02 | ) | 0.49 | (0.37 | ) | — | (0.37 | ) | 10.12 | ||||||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||||||
20083 | $ | 9.41 | $ | 0.48 | $ | 0.75 | $ | 1.23 | $ | (0.46 | ) | $ | — | $ | (0.46 | ) | $ | 10.18 | |||||||||||||||||||||||
20073 | 9.53 | 0.33 | (0.18 | ) | 0.15 | (0.27 | ) | — | (0.27 | ) | 9.41 | ||||||||||||||||||||||||||||||
20064 | 10.11 | 0.31 | (0.53 | ) | (0.22 | ) | (0.35 | ) | (0.01 | ) | (0.36 | ) | 9.53 | ||||||||||||||||||||||||||||
20057 | 10.00 | 0.40 | 0.02 | 0.42 | (0.31 | ) | — | (0.31 | ) | 10.11 | |||||||||||||||||||||||||||||||
Class R | |||||||||||||||||||||||||||||||||||||||||
20083 | $ | 9.43 | $ | 0.52 | $ | 0.75 | $ | 1.27 | $ | (0.50 | ) | $ | — | $ | (0.50 | ) | $ | 10.20 | |||||||||||||||||||||||
20073 | 9.55 | 0.33 | (0.13 | ) | 0.20 | (0.32 | ) | — | (0.32 | ) | 9.43 | ||||||||||||||||||||||||||||||
20064 | 10.13 | 0.38 | (0.56 | ) | (0.18 | ) | (0.39 | ) | (0.01 | ) | (0.40 | ) | 9.55 | ||||||||||||||||||||||||||||
20057 | 10.00 | 0.43 | 0.05 | 0.48 | (0.35 | ) | — | (0.35 | ) | 10.13 | |||||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||||||
20083 | $ | 9.43 | $ | 0.56 | $ | 0.76 | $ | 1.32 | $ | (0.55 | ) | $ | — | $ | (0.55 | ) | $ | 10.20 | |||||||||||||||||||||||
20073 | 9.55 | 0.40 | (0.16 | ) | 0.24 | (0.36 | ) | — | (0.36 | ) | 9.43 | ||||||||||||||||||||||||||||||
20064 | 10.13 | 0.42 | (0.57 | ) | (0.15 | ) | (0.42 | ) | (0.01 | ) | (0.43 | ) | 9.55 | ||||||||||||||||||||||||||||
20057 | 10.00 | 0.51 | 0.01 | 0.52 | (0.39 | ) | — | (0.39 | ) | 10.13 | |||||||||||||||||||||||||||||||
1 | The financial highlights for the High Income Bond Fund as set forth herein include the historical financial highlights of the First American High Yield Bond Fund Class A shares, Class B shares, Class C shares, Class S shares, and Class Y shares. The assets of the First American High Yield Bond Fund were acquired by High Income Bond Fund on March 14, 2003. In connection with such acquisition, Class A shares, Class B shares, Class C shares, Class S shares, and Class Y shares of the First American High Yield Bond Fund were exchanged for Class A shares, Class B shares, Class C shares, Class S shares, and Class Y shares of High Income Bond Fund respectively. Historical per-share amounts have been adjusted to reflect the conversion ratios utilized for the merger of the High Income Bond Fund and the First American High Yield Bond Fund. |
2 | Per share data calculated using average shares outstanding method. |
3 | For the period July 1 through June 30 in the fiscal year indicated. |
4 | For the period October 1, 2005 to June 30, 2006. Effective in 2006, the fund’s fiscal year-end was changed from September 30 to June 30. All ratios for the period have been annualized, except total return and portfolio turnover. |
5 | For the period October 1 through September 30 in the fiscal year indicated. |
6 | Prior to July 1, 2004, Class R shares were named Class S shares, which had lower fees and expenses. |
7 | Commenced operations on October 1, 2004. All ratios for the period ended September 30, 2005 have been annualized, except total return and portfolio turnover. |
8 | Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived. |
The accompanying notes are an integral part of the financial statements.
74 First American Funds 2008 Annual Report
Ratio of Net | ||||||||||||||||||||||||||||||||||||
Ratio of | Investment | |||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses | Income | ||||||||||||||||||||||||||||||||||
Ratio of | Investment | to Average | to Average | |||||||||||||||||||||||||||||||||
Net Assets | Expenses | Income | Net Assets | Net Assets | Portfolio | |||||||||||||||||||||||||||||||
Total | End of | to Average | to Average | (Excluding | (Excluding | Turnover | ||||||||||||||||||||||||||||||
Return8 | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | ||||||||||||||||||||||||||||||
(2.84 | )% | $ | 24,420 | 1.10 | % | 7.74 | % | 1.31 | % | 7.53 | % | 100 | % | |||||||||||||||||||||||
11.46 | 28,932 | 1.10 | 6.74 | 1.30 | 6.54 | 101 | ||||||||||||||||||||||||||||||
3.14 | 29,573 | 1.10 | 6.94 | 1.29 | 6.75 | 68 | ||||||||||||||||||||||||||||||
6.74 | 34,144 | 1.02 | 6.88 | 1.27 | 6.63 | 77 | ||||||||||||||||||||||||||||||
11.30 | 43,842 | 1.00 | 7.25 | 1.26 | 6.99 | 80 | ||||||||||||||||||||||||||||||
25.30 | 42,013 | 1.06 | 7.72 | 1.24 | 7.54 | 122 | ||||||||||||||||||||||||||||||
(3.57 | )% | $ | 3,496 | 1.85 | % | 6.97 | % | 2.06 | % | 6.76 | % | 100 | % | |||||||||||||||||||||||
10.67 | 4,814 | 1.85 | 6.00 | 2.05 | 5.80 | 101 | ||||||||||||||||||||||||||||||
2.57 | 5,988 | 1.85 | 6.19 | 2.04 | 6.00 | 68 | ||||||||||||||||||||||||||||||
5.97 | 7,191 | 1.77 | 6.13 | 2.02 | 5.88 | 77 | ||||||||||||||||||||||||||||||
10.52 | 8,521 | 1.75 | 6.50 | 2.01 | 6.24 | 80 | ||||||||||||||||||||||||||||||
24.33 | 8,939 | 1.81 | 7.00 | 1.99 | 6.82 | 122 | ||||||||||||||||||||||||||||||
(3.57 | )% | $ | 6,490 | 1.85 | % | 6.97 | % | 2.06 | % | 6.76 | % | 100 | % | |||||||||||||||||||||||
10.66 | 8,522 | 1.85 | 5.98 | 2.05 | 5.78 | 101 | ||||||||||||||||||||||||||||||
2.56 | 9,873 | 1.85 | 6.19 | 2.04 | 6.00 | 68 | ||||||||||||||||||||||||||||||
5.96 | 13,403 | 1.77 | 6.13 | 2.02 | 5.88 | 77 | ||||||||||||||||||||||||||||||
10.51 | 17,349 | 1.75 | 6.50 | 2.01 | 6.24 | 80 | ||||||||||||||||||||||||||||||
24.14 | 19,685 | 1.80 | 7.01 | 1.98 | 6.83 | 122 | ||||||||||||||||||||||||||||||
(3.04 | )% | $ | 185 | 1.35 | % | 7.37 | % | 1.56 | % | 7.16 | % | 100 | % | |||||||||||||||||||||||
11.12 | 186 | 1.35 | 6.38 | 1.56 | 6.17 | 101 | ||||||||||||||||||||||||||||||
3.09 | 73 | 1.35 | 6.82 | 1.69 | 6.48 | 68 | ||||||||||||||||||||||||||||||
6.23 | 4 | 1.33 | 6.31 | 1.73 | 5.91 | 77 | ||||||||||||||||||||||||||||||
11.29 | 1 | 1.00 | 7.33 | 1.26 | 7.07 | 80 | ||||||||||||||||||||||||||||||
25.11 | 777 | 1.00 | 7.86 | 1.18 | 7.68 | 122 | ||||||||||||||||||||||||||||||
(2.59 | )% | $ | 204,164 | 0.85 | % | 7.99 | % | 1.06 | % | 7.78 | % | 100 | % | |||||||||||||||||||||||
11.73 | 232,998 | 0.85 | 6.98 | 1.05 | 6.78 | 101 | ||||||||||||||||||||||||||||||
3.34 | 205,382 | 0.85 | 7.19 | 1.04 | 7.00 | 68 | ||||||||||||||||||||||||||||||
7.01 | 207,610 | 0.77 | 7.13 | 1.02 | 6.88 | 77 | ||||||||||||||||||||||||||||||
11.69 | 234,770 | 0.75 | 7.49 | 1.01 | 7.23 | 80 | ||||||||||||||||||||||||||||||
25.29 | 179,416 | 0.83 | 7.97 | 1.01 | 7.79 | 122 | ||||||||||||||||||||||||||||||
14.01 | % | $ | 3,294 | 0.85 | % | 5.40 | % | 1.08 | % | 5.17 | % | 71 | % | |||||||||||||||||||||||
2.41 | 2,712 | 0.85 | 4.09 | 1.06 | 3.88 | 90 | ||||||||||||||||||||||||||||||
(1.69 | ) | 5,042 | 0.85 | 5.20 | 1.08 | 4.97 | 85 | |||||||||||||||||||||||||||||
4.93 | 6,917 | 0.85 | 5.04 | 1.09 | 4.80 | 23 | ||||||||||||||||||||||||||||||
13.20 | % | $ | 365 | 1.60 | % | 4.82 | % | 1.83 | % | 4.59 | % | 71 | % | |||||||||||||||||||||||
1.53 | 348 | 1.60 | 3.44 | 1.81 | 3.23 | 90 | ||||||||||||||||||||||||||||||
(2.26 | ) | 552 | 1.60 | 4.29 | 1.83 | 4.06 | 85 | |||||||||||||||||||||||||||||
4.18 | 855 | 1.60 | 3.98 | 1.84 | 3.74 | 23 | ||||||||||||||||||||||||||||||
13.73 | % | $ | 1,175 | 1.10 | % | 5.21 | % | 1.33 | % | 4.98 | % | 71 | % | |||||||||||||||||||||||
2.09 | 822 | 1.10 | 3.45 | 1.31 | 3.24 | 90 | ||||||||||||||||||||||||||||||
(1.80 | ) | 1 | 1.10 | 5.17 | 1.48 | 4.79 | 85 | |||||||||||||||||||||||||||||
4.81 | 1 | 1.10 | 4.22 | 1.49 | 3.83 | 23 | ||||||||||||||||||||||||||||||
14.29 | % | $ | 278,749 | 0.60 | % | 5.64 | % | 0.83 | % | 5.41 | % | 71 | % | |||||||||||||||||||||||
2.56 | 273,312 | 0.60 | 4.21 | 0.81 | 4.00 | 90 | ||||||||||||||||||||||||||||||
(1.50 | ) | 317,977 | 0.60 | 5.73 | 0.83 | 5.50 | 85 | |||||||||||||||||||||||||||||
5.24 | 269,412 | 0.60 | 5.05 | 0.84 | 4.81 | 23 | ||||||||||||||||||||||||||||||
First American Funds 2008 Annual Report 75
Financial Highlights For a share outstanding throughout the indicated periods.
Realized and | ||||||||||||||||||||||||||||||||||||||||||||||
Net Asset | Unrealized | Distributions | Distributions | Net Asset | ||||||||||||||||||||||||||||||||||||||||||
Value | Net | Gains | Total from | from Net | Distributions | from | Value | |||||||||||||||||||||||||||||||||||||||
Beginning | Investment | (Losses) on | Investment | Investment | from Net | Return of | Total | End of | ||||||||||||||||||||||||||||||||||||||
of Period | Income | Investments | Operations | Income | Realized Gains | Capital | Distributions | Period | ||||||||||||||||||||||||||||||||||||||
Intermediate Government Bond Fund | ||||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||
20081,2 | $ | 8.00 | $ | 0.28 | $ | 0.43 | $ | 0.71 | $ | (0.29 | ) | $ | — | $ | — | $ | (0.29 | ) | $ | 8.42 | ||||||||||||||||||||||||||
20071,2 | 7.99 | 0.31 | 0.06 | 0.37 | (0.33 | ) | — | (0.03 | ) | (0.36 | ) | 8.00 | ||||||||||||||||||||||||||||||||||
20061,3 | 8.26 | 0.22 | (0.22 | ) | — | (0.22 | ) | (0.05 | ) | — | (0.27 | ) | 7.99 | |||||||||||||||||||||||||||||||||
20051,4 | 8.82 | 0.27 | (0.15 | ) | 0.12 | (0.28 | ) | (0.40 | ) | — | (0.68 | ) | 8.26 | |||||||||||||||||||||||||||||||||
20041,4 | 10.01 | 0.24 | (0.16 | ) | 0.08 | (0.24 | ) | (1.03 | ) | — | (1.27 | ) | 8.82 | |||||||||||||||||||||||||||||||||
20035 | 10.00 | 0.32 | 0.02 | 0.34 | (0.33 | ) | — | — | (0.33 | ) | 10.01 | |||||||||||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||||||||||||
20081,2 | $ | 8.00 | $ | 0.30 | $ | 0.42 | $ | 0.72 | $ | (0.30 | ) | $ | — | $ | — | $ | (0.30 | ) | $ | 8.42 | ||||||||||||||||||||||||||
20071,2 | 7.99 | 0.32 | 0.06 | 0.38 | (0.34 | ) | — | (0.03 | ) | (0.37 | ) | 8.00 | ||||||||||||||||||||||||||||||||||
20061,3 | 8.25 | 0.22 | (0.20 | ) | 0.02 | (0.23 | ) | (0.05 | ) | — | (0.28 | ) | 7.99 | |||||||||||||||||||||||||||||||||
20051,4 | 8.82 | 0.28 | (0.16 | ) | 0.12 | (0.29 | ) | (0.40 | ) | — | (0.69 | ) | 8.25 | |||||||||||||||||||||||||||||||||
20041,4 | 10.01 | 0.26 | (0.17 | ) | 0.09 | (0.25 | ) | (1.03 | ) | — | (1.28 | ) | 8.82 | |||||||||||||||||||||||||||||||||
20035 | 10.00 | 0.34 | 0.01 | 0.35 | (0.34 | ) | — | — | (0.34 | ) | 10.01 | |||||||||||||||||||||||||||||||||||
Intermediate Term Bond Fund | ||||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||
20081,2 | $ | 9.73 | $ | 0.44 | $ | 0.14 | $ | 0.58 | $ | (0.41 | ) | $ | — | $ | — | $ | (0.41 | ) | $ | 9.90 | ||||||||||||||||||||||||||
20071,2 | 9.68 | 0.41 | 0.05 | 0.46 | (0.41 | ) | — | — | (0.41 | ) | 9.73 | |||||||||||||||||||||||||||||||||||
20061,3 | 9.99 | 0.29 | (0.27 | ) | 0.02 | (0.30 | ) | (0.03 | ) | — | (0.33 | ) | 9.68 | |||||||||||||||||||||||||||||||||
20051,4 | 10.25 | 0.34 | (0.17 | ) | 0.17 | (0.33 | ) | (0.10 | ) | — | (0.43 | ) | 9.99 | |||||||||||||||||||||||||||||||||
20041,4 | 10.46 | 0.31 | (0.10 | ) | 0.21 | (0.31 | ) | (0.11 | ) | — | (0.42 | ) | 10.25 | |||||||||||||||||||||||||||||||||
20034 | 10.35 | 0.39 | 0.12 | 0.51 | (0.40 | ) | — | — | (0.40 | ) | 10.46 | |||||||||||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||||||||||||
20081,2 | $ | 9.70 | $ | 0.45 | $ | 0.15 | $ | 0.60 | $ | (0.43 | ) | $ | — | $ | — | $ | (0.43 | ) | $ | 9.87 | ||||||||||||||||||||||||||
20071,2 | 9.65 | 0.42 | 0.06 | 0.48 | (0.43 | ) | — | — | (0.43 | ) | 9.70 | |||||||||||||||||||||||||||||||||||
20061,3 | 9.96 | 0.30 | (0.27 | ) | 0.03 | (0.31 | ) | (0.03 | ) | — | (0.34 | ) | 9.65 | |||||||||||||||||||||||||||||||||
20051,4 | 10.22 | 0.36 | (0.17 | ) | 0.19 | (0.35 | ) | (0.10 | ) | — | (0.45 | ) | 9.96 | |||||||||||||||||||||||||||||||||
20041,4 | 10.43 | 0.33 | (0.11 | ) | 0.22 | (0.32 | ) | (0.11 | ) | — | (0.43 | ) | 10.22 | |||||||||||||||||||||||||||||||||
20034 | 10.32 | 0.41 | 0.12 | 0.53 | (0.42 | ) | — | — | (0.42 | ) | 10.43 | |||||||||||||||||||||||||||||||||||
1 | Per share data calculated using average shares outstanding method. |
2 | For the period July 1 to June 30 in the fiscal year indicated. |
3 | For the nine-month period October 1, 2005 to June 30, 2006. Effective in 2006, the fund’s fiscal year-end was changed from September 30 to June 30. All ratios for the period have been annualized, except total return and portfolio turnover. |
4 | For the period October 1 to September 30 in the fiscal year indicated. |
5 | Commenced operations on October 25, 2002. All ratios for the period ended September 30, 2003 have been annualized, except total return and portfolio turnover. |
6 | Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived. |
The accompanying notes are an integral part of the financial statements.
76 First American Funds 2008 Annual Report
Ratio of Net | ||||||||||||||||||||||||||||||||||||
Ratio of | Investment | |||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses | Income | ||||||||||||||||||||||||||||||||||
Ratio of | Investment | to Average | to Average | |||||||||||||||||||||||||||||||||
Net Assets | Expenses | Income | Net Assets | Net Assets | Portfolio | |||||||||||||||||||||||||||||||
Total | End of | to Average | to Average | (Excluding | (Excluding | Turnover | ||||||||||||||||||||||||||||||
Return6 | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | ||||||||||||||||||||||||||||||
8.90 | % | $ | 6,504 | 0.75 | % | 3.32 | % | 1.33 | % | 2.74 | % | 118 | % | |||||||||||||||||||||||
4.68 | 1,619 | 0.75 | 3.80 | 1.46 | 3.09 | 84 | ||||||||||||||||||||||||||||||
0.06 | 1,689 | 0.75 | 3.56 | 1.26 | 3.05 | 70 | ||||||||||||||||||||||||||||||
1.40 | 1,970 | 0.75 | 3.21 | 1.09 | 2.87 | 161 | ||||||||||||||||||||||||||||||
0.98 | 1,872 | 0.75 | 2.69 | 1.03 | 2.41 | 53 | ||||||||||||||||||||||||||||||
3.53 | 2,502 | 0.75 | 3.22 | 1.05 | 2.92 | 74 | ||||||||||||||||||||||||||||||
9.07 | % | $ | 63,784 | 0.60 | % | 3.60 | % | 1.08 | % | 3.12 | % | 118 | % | |||||||||||||||||||||||
4.84 | 37,705 | 0.60 | 3.94 | 1.21 | 3.33 | 84 | ||||||||||||||||||||||||||||||
0.30 | 42,781 | 0.60 | 3.70 | 1.01 | 3.29 | 70 | ||||||||||||||||||||||||||||||
1.43 | 69,349 | 0.60 | 3.34 | 0.84 | 3.10 | 161 | ||||||||||||||||||||||||||||||
1.14 | 129,769 | 0.60 | 2.84 | 0.78 | 2.66 | 53 | ||||||||||||||||||||||||||||||
3.64 | 334,869 | 0.60 | 3.68 | 0.80 | 3.48 | 74 | ||||||||||||||||||||||||||||||
6.02 | % | $ | 28,364 | 0.85 | % | 4.38 | % | 1.01 | % | 4.22 | % | 102 | % | |||||||||||||||||||||||
4.80 | 30,655 | 0.85 | 4.07 | 1.01 | 3.91 | 110 | ||||||||||||||||||||||||||||||
0.23 | 38,296 | 0.75 | 3.88 | 1.03 | 3.60 | 113 | ||||||||||||||||||||||||||||||
1.69 | 48,426 | 0.75 | 3.39 | 1.05 | 3.09 | 118 | ||||||||||||||||||||||||||||||
2.06 | 63,219 | 0.75 | 2.97 | 1.04 | 2.68 | 169 | ||||||||||||||||||||||||||||||
5.09 | 78,682 | 0.75 | 3.89 | 1.05 | 3.59 | 133 | ||||||||||||||||||||||||||||||
6.20 | % | $ | 766,932 | 0.70 | % | 4.53 | % | 0.76 | % | 4.47 | % | 102 | % | |||||||||||||||||||||||
4.98 | 752,984 | 0.70 | 4.22 | 0.76 | 4.16 | 110 | ||||||||||||||||||||||||||||||
0.34 | 899,175 | 0.60 | 4.03 | 0.78 | 3.85 | 113 | ||||||||||||||||||||||||||||||
1.85 | 1,074,624 | 0.60 | 3.55 | 0.80 | 3.35 | 118 | ||||||||||||||||||||||||||||||
2.22 | 1,219,707 | 0.60 | 3.12 | 0.79 | 2.93 | 169 | ||||||||||||||||||||||||||||||
5.25 | 1,296,529 | 0.60 | 4.05 | 0.80 | 3.85 | 133 | ||||||||||||||||||||||||||||||
First American Funds 2008 Annual Report 77
Financial Highlights For a share outstanding throughout the indicated periods.
Realized and | |||||||||||||||||||||||||||||||||||||||||
Net Asset | Unrealized | Distributions | Distributions | Net Asset | |||||||||||||||||||||||||||||||||||||
Value | Net | Gains | Total from | from Net | from | Value | |||||||||||||||||||||||||||||||||||
Beginning | Investment | (Losses) on | Investment | Investment | Return of | Total | End of | ||||||||||||||||||||||||||||||||||
of Period | Income | Investments | Operations | Income | Capital | Distributions | Period | ||||||||||||||||||||||||||||||||||
Short Term Bond Fund | |||||||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||||||
20081,2 | $ | 9.90 | $ | 0.45 | $ | (0.03 | ) | $ | 0.42 | $ | (0.43 | ) | $ | — | $ | (0.43 | ) | $ | 9.89 | ||||||||||||||||||||||
20071,2 | 9.83 | 0.36 | 0.09 | 0.45 | (0.38 | ) | — | (0.38 | ) | 9.90 | |||||||||||||||||||||||||||||||
20061,3 | 9.93 | 0.23 | (0.06 | ) | 0.17 | (0.27 | ) | — | (0.27 | ) | 9.83 | ||||||||||||||||||||||||||||||
20051,4 | 10.11 | 0.27 | (0.16 | ) | 0.11 | (0.29 | ) | — | (0.29 | ) | 9.93 | ||||||||||||||||||||||||||||||
20041,4 | 10.26 | 0.23 | (0.15 | ) | 0.08 | (0.23 | ) | — | (0.23 | ) | 10.11 | ||||||||||||||||||||||||||||||
20034 | 10.29 | 0.28 | (0.01 | ) | 0.27 | (0.30 | ) | — | (0.30 | ) | 10.26 | ||||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||||||
20081,2 | $ | 9.91 | $ | 0.46 | $ | (0.03 | ) | $ | 0.43 | $ | (0.45 | ) | $ | — | $ | (0.45 | ) | $ | 9.89 | ||||||||||||||||||||||
20071,2 | 9.83 | 0.37 | 0.10 | 0.47 | (0.39 | ) | — | (0.39 | ) | 9.91 | |||||||||||||||||||||||||||||||
20061,3 | 9.93 | 0.24 | (0.06 | ) | 0.18 | (0.28 | ) | — | (0.28 | ) | 9.83 | ||||||||||||||||||||||||||||||
20051,4 | 10.11 | 0.28 | (0.16 | ) | 0.12 | (0.29 | ) | (0.01 | ) | (0.30 | ) | 9.93 | |||||||||||||||||||||||||||||
20041,4 | 10.26 | 0.25 | (0.16 | ) | 0.09 | (0.24 | ) | — | (0.24 | ) | 10.11 | ||||||||||||||||||||||||||||||
20034 | 10.30 | 0.30 | (0.02 | ) | 0.28 | (0.32 | ) | — | (0.32 | ) | 10.26 | ||||||||||||||||||||||||||||||
Total Return Bond Fund | |||||||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||||||
20081,2 | $ | 9.83 | $ | 0.49 | $ | 0.05 | $ | 0.54 | $ | (0.47 | ) | $ | — | $ | (0.47 | ) | $ | 9.90 | |||||||||||||||||||||||
20071,2 | 9.86 | 0.45 | (0.02 | ) | 0.43 | (0.46 | ) | — | (0.46 | ) | 9.83 | ||||||||||||||||||||||||||||||
20061,3 | 10.18 | 0.31 | (0.33 | ) | (0.02 | ) | (0.30 | ) | — | (0.30 | ) | 9.86 | |||||||||||||||||||||||||||||
20051,4 | 10.25 | 0.43 | (0.07 | ) | 0.36 | (0.43 | ) | — | (0.43 | ) | 10.18 | ||||||||||||||||||||||||||||||
20041,4 | 10.23 | 0.46 | 0.03 | 0.49 | (0.47 | ) | — | (0.47 | ) | 10.25 | |||||||||||||||||||||||||||||||
20034 | 9.60 | 0.51 | 0.63 | 1.14 | (0.51 | ) | — | (0.51 | ) | 10.23 | |||||||||||||||||||||||||||||||
Class B | |||||||||||||||||||||||||||||||||||||||||
20081,2 | $ | 9.80 | $ | 0.41 | $ | 0.05 | $ | 0.46 | $ | (0.40 | ) | $ | — | $ | (0.40 | ) | $ | 9.86 | |||||||||||||||||||||||
20071,2 | 9.82 | 0.38 | (0.02 | ) | 0.36 | (0.38 | ) | — | (0.38 | ) | 9.80 | ||||||||||||||||||||||||||||||
20061,3 | 10.14 | 0.25 | (0.32 | ) | (0.07 | ) | (0.25 | ) | — | (0.25 | ) | 9.82 | |||||||||||||||||||||||||||||
20051,4 | 10.21 | 0.35 | (0.07 | ) | 0.28 | (0.35 | ) | — | (0.35 | ) | 10.14 | ||||||||||||||||||||||||||||||
20041,4 | 10.20 | 0.39 | 0.01 | 0.40 | (0.39 | ) | — | (0.39 | ) | 10.21 | |||||||||||||||||||||||||||||||
20034 | 9.57 | 0.44 | 0.63 | 1.07 | (0.44 | ) | — | (0.44 | ) | 10.20 | |||||||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||||||
20081,2 | $ | 9.78 | $ | 0.42 | $ | 0.04 | $ | 0.46 | $ | (0.40 | ) | $ | — | $ | (0.40 | ) | $ | 9.84 | |||||||||||||||||||||||
20071,2 | 9.80 | 0.37 | (0.01 | ) | 0.36 | (0.38 | ) | — | (0.38 | ) | 9.78 | ||||||||||||||||||||||||||||||
20061,3 | 10.12 | 0.25 | (0.32 | ) | (0.07 | ) | (0.25 | ) | — | (0.25 | ) | 9.80 | |||||||||||||||||||||||||||||
20051,4 | 10.20 | 0.35 | (0.07 | ) | 0.28 | (0.36 | ) | — | (0.36 | ) | 10.12 | ||||||||||||||||||||||||||||||
20041,4 | 10.18 | 0.39 | 0.02 | 0.41 | (0.39 | ) | — | (0.39 | ) | 10.20 | |||||||||||||||||||||||||||||||
20034 | 9.55 | 0.44 | 0.63 | 1.07 | (0.44 | ) | — | (0.44 | ) | 10.18 | |||||||||||||||||||||||||||||||
Class R5 | |||||||||||||||||||||||||||||||||||||||||
20081,2 | $ | 9.88 | $ | 0.47 | $ | 0.05 | $ | 0.52 | $ | (0.45 | ) | $ | — | $ | (0.45 | ) | $ | 9.95 | |||||||||||||||||||||||
20071,2 | 9.90 | 0.43 | (0.02 | ) | 0.41 | (0.43 | ) | — | (0.43 | ) | 9.88 | ||||||||||||||||||||||||||||||
20061,3 | 10.23 | 0.30 | (0.34 | ) | (0.04 | ) | (0.29 | ) | — | (0.29 | ) | 9.90 | |||||||||||||||||||||||||||||
20051,4 | 10.29 | 0.41 | (0.07 | ) | 0.34 | (0.40 | ) | — | (0.40 | ) | 10.23 | ||||||||||||||||||||||||||||||
20041,4 | 10.23 | 0.48 | — | 0.48 | (0.42 | ) | — | (0.42 | ) | 10.29 | |||||||||||||||||||||||||||||||
20034 | 9.60 | 0.51 | 0.63 | 1.14 | (0.51 | ) | — | (0.51 | ) | 10.23 | |||||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||||||
20081,2 | $ | 9.83 | $ | 0.52 | $ | 0.04 | $ | 0.56 | $ | (0.50 | ) | $ | — | $ | (0.50 | ) | $ | 9.89 | |||||||||||||||||||||||
20071,2 | 9.85 | 0.47 | (0.01 | ) | 0.46 | (0.48 | ) | — | (0.48 | ) | �� | 9.83 | |||||||||||||||||||||||||||||
20061,3 | 10.17 | 0.33 | (0.33 | ) | — | (0.32 | ) | — | (0.32 | ) | 9.85 | ||||||||||||||||||||||||||||||
20051,4 | 10.24 | 0.46 | (0.07 | ) | 0.39 | (0.46 | ) | — | (0.46 | ) | 10.17 | ||||||||||||||||||||||||||||||
20041,4 | 10.23 | 0.49 | 0.01 | 0.50 | (0.49 | ) | — | (0.49 | ) | 10.24 | |||||||||||||||||||||||||||||||
20034 | 9.59 | 0.54 | 0.64 | 1.18 | (0.54 | ) | — | (0.54 | ) | 10.23 | |||||||||||||||||||||||||||||||
1 | Per share data calculated using average shares outstanding method. |
2 | For the period July 1 to June 30 in the fiscal year indicated. |
3 | For the nine-month period October 1, 2005 to June 30, 2006. Effective in 2006, the fund’s fiscal year-end was changed from September 30 to June 30. All ratios for the period have been annualized, except total return and portfolio turnover. |
4 | For the period October 1 to September 30 in the fiscal year indicated. |
5 | Prior to July 1, 2004, Class R shares were named Class S shares, which had lower fees and expenses. |
6 | Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived. |
The accompanying notes are an integral part of the financial statements.
78 First American Funds 2008 Annual Report
Ratio of Net | ||||||||||||||||||||||||||||||||||||
Ratio of | Investment | |||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses | Income | ||||||||||||||||||||||||||||||||||
Ratio of | Investment | to Average | to Average | |||||||||||||||||||||||||||||||||
Net Assets | Expenses | Income | Net Assets | Net Assets | Portfolio | |||||||||||||||||||||||||||||||
Total | End of | to Average | to Average | (Excluding | (Excluding | Turnover | ||||||||||||||||||||||||||||||
Return6 | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | ||||||||||||||||||||||||||||||
4.30 | % | $ | 59,933 | 0.74 | % | 4.48 | % | 1.05 | % | 4.17 | % | 55 | % | |||||||||||||||||||||||
4.60 | 66,722 | 0.75 | 3.61 | �� | 1.04 | 3.32 | 47 | |||||||||||||||||||||||||||||
1.75 | 78,771 | 0.75 | 3.11 | 1.04 | 2.82 | 60 | ||||||||||||||||||||||||||||||
1.08 | 97,863 | 0.75 | 2.68 | 1.05 | 2.38 | 64 | ||||||||||||||||||||||||||||||
0.76 | 130,531 | 0.75 | 2.28 | 1.05 | 1.98 | 89 | ||||||||||||||||||||||||||||||
2.71 | 159,451 | 0.75 | 2.75 | 1.05 | 2.45 | 60 | ||||||||||||||||||||||||||||||
4.35 | % | $ | 257,403 | 0.59 | % | 4.62 | % | 0.80 | % | 4.41 | % | 55 | % | |||||||||||||||||||||||
4.86 | 311,131 | 0.60 | 3.74 | 0.79 | 3.55 | 47 | ||||||||||||||||||||||||||||||
1.87 | 454,665 | 0.60 | 3.26 | 0.79 | 3.07 | 60 | ||||||||||||||||||||||||||||||
1.23 | 625,392 | 0.60 | 2.83 | 0.80 | 2.63 | 64 | ||||||||||||||||||||||||||||||
0.91 | 943,181 | 0.60 | 2.43 | 0.80 | 2.23 | 89 | ||||||||||||||||||||||||||||||
2.76 | 832,266 | 0.60 | 2.84 | 0.80 | 2.64 | 60 | ||||||||||||||||||||||||||||||
5.51 | % | $ | 15,567 | 0.99 | % | 4.87 | % | 1.11 | % | 4.75 | % | 124 | % | |||||||||||||||||||||||
4.36 | 13,198 | 1.00 | 4.48 | 1.13 | 4.35 | 180 | ||||||||||||||||||||||||||||||
(0.17 | ) | 15,522 | 1.00 | 4.14 | 1.17 | 3.97 | 166 | |||||||||||||||||||||||||||||
3.57 | 19,113 | 1.00 | 4.20 | 1.25 | 3.95 | 285 | ||||||||||||||||||||||||||||||
4.89 | 21,034 | 1.00 | 4.54 | 1.25 | 4.29 | 132 | ||||||||||||||||||||||||||||||
12.26 | 13,522 | 1.00 | 5.15 | 1.26 | 4.89 | 91 | ||||||||||||||||||||||||||||||
4.65 | % | $ | 2,384 | 1.74 | % | 4.13 | % | 1.86 | % | 4.01 | % | 124 | % | |||||||||||||||||||||||
3.69 | 2,272 | 1.75 | 3.74 | 1.88 | 3.61 | 180 | ||||||||||||||||||||||||||||||
(0.74 | ) | 3,657 | 1.75 | 3.40 | 1.92 | 3.23 | 166 | |||||||||||||||||||||||||||||
2.81 | 4,395 | 1.75 | 3.45 | 2.00 | 3.20 | 285 | ||||||||||||||||||||||||||||||
3.97 | 5,474 | 1.75 | 3.83 | 2.00 | 3.58 | 132 | ||||||||||||||||||||||||||||||
11.46 | 13,576 | 1.75 | 4.46 | 2.01 | 4.20 | 91 | ||||||||||||||||||||||||||||||
4.66 | % | $ | 3,673 | 1.74 | % | 4.22 | % | 1.86 | % | 4.10 | % | 124 | % | |||||||||||||||||||||||
3.70 | 1,792 | 1.75 | 3.73 | 1.88 | 3.60 | 180 | ||||||||||||||||||||||||||||||
(0.74 | ) | 2,501 | 1.75 | 3.40 | 1.92 | 3.23 | 166 | |||||||||||||||||||||||||||||
2.71 | 2,858 | 1.75 | 3.46 | 2.00 | 3.21 | 285 | ||||||||||||||||||||||||||||||
4.11 | 3,789 | 1.75 | 3.81 | 2.00 | 3.56 | 132 | ||||||||||||||||||||||||||||||
11.50 | 5,752 | 1.75 | 4.43 | 2.01 | 4.17 | 91 | ||||||||||||||||||||||||||||||
5.22 | % | $ | 293 | 1.24 | % | 4.66 | % | 1.36 | % | 4.54 | % | 124 | % | |||||||||||||||||||||||
4.20 | 219 | 1.25 | 4.22 | 1.44 | 4.03 | 180 | ||||||||||||||||||||||||||||||
(0.44 | ) | 14 | 1.25 | 4.05 | 1.57 | 3.73 | 166 | |||||||||||||||||||||||||||||
3.40 | 3 | 1.25 | 3.98 | 1.65 | 3.58 | 285 | ||||||||||||||||||||||||||||||
4.83 | 1 | 1.00 | 4.64 | 1.25 | 4.39 | 132 | ||||||||||||||||||||||||||||||
12.25 | 2,668 | 1.00 | 5.21 | 1.26 | 4.95 | 91 | ||||||||||||||||||||||||||||||
5.67 | % | $ | 1,069,211 | 0.74 | % | 5.15 | % | 0.86 | % | 5.03 | % | 124 | % | |||||||||||||||||||||||
4.73 | 851,513 | 0.75 | 4.71 | 0.88 | 4.58 | 180 | ||||||||||||||||||||||||||||||
0.02 | 378,338 | 0.75 | 4.43 | 0.92 | 4.26 | 166 | ||||||||||||||||||||||||||||||
3.83 | 278,777 | 0.75 | 4.43 | 1.00 | 4.18 | 285 | ||||||||||||||||||||||||||||||
5.05 | 243,018 | 0.75 | 4.80 | 1.00 | 4.55 | 132 | ||||||||||||||||||||||||||||||
12.65 | 245,877 | 0.75 | 5.42 | 1.01 | 5.16 | 91 | ||||||||||||||||||||||||||||||
First American Funds 2008 Annual Report 79
Financial Highlights For a share outstanding throughout the indicated periods.
Realized and | |||||||||||||||||||||||||||||||||||||||||
Net Asset | Unrealized | Distributions | Net Asset | ||||||||||||||||||||||||||||||||||||||
Value | Net | Gains | Total from | from Net | Distributions | Value | |||||||||||||||||||||||||||||||||||
Beginning | Investment | (Losses) on | Investment | Investment | from Net | Total | End of | ||||||||||||||||||||||||||||||||||
of Period | Income | Investments | Operations | Income | Realized Gains | Distributions | Period | ||||||||||||||||||||||||||||||||||
U.S. Government Mortgage Fund | |||||||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||||||
20081,2 | $ | 10.22 | $ | 0.47 | $ | (0.07 | ) | $ | 0.40 | $ | (0.48 | ) | $ | — | $ | (0.48 | ) | $ | 10.14 | ||||||||||||||||||||||
20071,2 | 10.18 | 0.46 | 0.05 | 0.51 | (0.47 | ) | — | (0.47 | ) | 10.22 | |||||||||||||||||||||||||||||||
20061,3 | 10.53 | 0.33 | (0.32 | ) | 0.01 | (0.36 | ) | — | (0.36 | ) | 10.18 | ||||||||||||||||||||||||||||||
20051,4 | 10.72 | 0.41 | (0.14 | ) | 0.27 | (0.46 | ) | — | (0.46 | ) | 10.53 | ||||||||||||||||||||||||||||||
20041,4 | 10.89 | 0.38 | (0.09 | ) | 0.29 | (0.46 | ) | — | (0.46 | ) | 10.72 | ||||||||||||||||||||||||||||||
20034 | 11.16 | 0.35 | (0.05 | ) | 0.30 | (0.45 | ) | (0.12 | ) | (0.57 | ) | 10.89 | |||||||||||||||||||||||||||||
Class B | |||||||||||||||||||||||||||||||||||||||||
20081,2 | $ | 10.24 | $ | 0.40 | $ | (0.08 | ) | $ | 0.32 | $ | (0.40 | ) | $ | — | $ | (0.40 | ) | $ | 10.16 | ||||||||||||||||||||||
20071,2 | 10.20 | 0.38 | 0.05 | 0.43 | (0.39 | ) | — | (0.39 | ) | 10.24 | |||||||||||||||||||||||||||||||
20061,3 | 10.54 | 0.27 | (0.31 | ) | (0.04 | ) | (0.30 | ) | — | (0.30 | ) | 10.20 | |||||||||||||||||||||||||||||
20051,4 | 10.74 | 0.33 | (0.15 | ) | 0.18 | (0.38 | ) | — | (0.38 | ) | 10.54 | ||||||||||||||||||||||||||||||
20041,4 | 10.90 | 0.30 | (0.08 | ) | 0.22 | (0.38 | ) | — | (0.38 | ) | 10.74 | ||||||||||||||||||||||||||||||
20034 | 11.18 | 0.28 | (0.06 | ) | 0.22 | (0.38 | ) | (0.12 | ) | (0.50 | ) | 10.90 | |||||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||||||
20081,2 | $ | 10.18 | $ | 0.40 | $ | (0.08 | ) | $ | 0.32 | $ | (0.40 | ) | $ | — | $ | (0.40 | ) | $ | 10.10 | ||||||||||||||||||||||
20071,2 | 10.15 | 0.38 | 0.04 | 0.42 | (0.39 | ) | — | (0.39 | ) | 10.18 | |||||||||||||||||||||||||||||||
20061,3 | 10.49 | 0.27 | (0.31 | ) | (0.04 | ) | (0.30 | ) | — | (0.30 | ) | 10.15 | |||||||||||||||||||||||||||||
20051,4 | 10.68 | 0.33 | (0.14 | ) | 0.19 | (0.38 | ) | — | (0.38 | ) | 10.49 | ||||||||||||||||||||||||||||||
20041,4 | 10.84 | 0.30 | (0.09 | ) | 0.21 | (0.37 | ) | — | (0.37 | ) | 10.68 | ||||||||||||||||||||||||||||||
20034 | 11.13 | 0.29 | (0.08 | ) | 0.21 | (0.38 | ) | (0.12 | ) | (0.50 | ) | 10.84 | |||||||||||||||||||||||||||||
Class R5 | |||||||||||||||||||||||||||||||||||||||||
20081,2 | $ | 10.21 | $ | 0.46 | $ | (0.10 | ) | $ | 0.36 | $ | (0.45 | ) | $ | — | $ | (0.45 | ) | $ | 10.12 | ||||||||||||||||||||||
20071,2 | 10.17 | 0.43 | 0.06 | 0.49 | (0.45 | ) | — | (0.45 | ) | 10.21 | |||||||||||||||||||||||||||||||
20061,3 | 10.51 | 0.31 | (0.31 | ) | — | (0.34 | ) | — | (0.34 | ) | 10.17 | ||||||||||||||||||||||||||||||
20051,4 | 10.72 | 0.37 | (0.14 | ) | 0.23 | (0.44 | ) | — | (0.44 | ) | 10.51 | ||||||||||||||||||||||||||||||
20041,4 | 10.85 | 0.39 | (0.10 | ) | 0.29 | (0.42 | ) | — | (0.42 | ) | 10.72 | ||||||||||||||||||||||||||||||
20034 | 11.12 | 0.30 | — | 0.30 | (0.45 | ) | (0.12 | ) | (0.57 | ) | 10.85 | ||||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||||||
20081,2 | $ | 10.22 | $ | 0.50 | $ | (0.08 | ) | $ | 0.42 | $ | (0.50 | ) | $ | — | $ | (0.50 | ) | $ | 10.14 | ||||||||||||||||||||||
20071,2 | 10.19 | 0.48 | 0.05 | 0.53 | (0.50 | ) | — | (0.50 | ) | 10.22 | |||||||||||||||||||||||||||||||
20061,3 | 10.53 | 0.35 | (0.31 | ) | 0.04 | (0.38 | ) | — | (0.38 | ) | 10.19 | ||||||||||||||||||||||||||||||
20051,4 | 10.73 | 0.43 | (0.14 | ) | 0.29 | (0.49 | ) | — | (0.49 | ) | 10.53 | ||||||||||||||||||||||||||||||
20041,4 | 10.89 | 0.41 | (0.08 | ) | 0.33 | (0.49 | ) | — | (0.49 | ) | 10.73 | ||||||||||||||||||||||||||||||
20034 | 11.16 | 0.37 | (0.04 | ) | 0.33 | (0.48 | ) | (0.12 | ) | (0.60 | ) | 10.89 | |||||||||||||||||||||||||||||
1 | Per share data calculated using average shares outstanding method. |
2 For the period July 1 to June 30 in the fiscal year indicated.
3 | For the nine-month period October 1, 2005 to June 30, 2006. Effective in 2006, the fund’s fiscal year-end was changed from September 30 to June 30. All ratios for the period have been annualized, except total return and portfolio turnover. |
4 | For the period October 1 to September 30 in the fiscal year indicated. |
5 | Prior to July 1, 2004, Class R shares were named Class S shares, which had lower fees and expenses. |
6 | Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived. |
The accompanying notes are an integral part of the financial statements.
80 First American Funds 2008 Annual Report
Ratio of Net | ||||||||||||||||||||||||||||||||||||
Ratio of | Investment | |||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses | Income | ||||||||||||||||||||||||||||||||||
Ratio of | Investment | to Average | to Average | |||||||||||||||||||||||||||||||||
Net Assets | Expenses | Income | Net Assets | Net Assets | Portfolio | |||||||||||||||||||||||||||||||
Total | End of | to Average | to Average | (Excluding | (Excluding | Turnover | ||||||||||||||||||||||||||||||
Return6 | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | ||||||||||||||||||||||||||||||
3.90 | % | $ | 11,295 | 0.95 | % | 4.60 | % | 1.18 | % | 4.37 | % | 325 | % | |||||||||||||||||||||||
5.07 | 13,785 | 0.95 | 4.41 | 1.16 | 4.20 | 303 | ||||||||||||||||||||||||||||||
0.09 | 16,059 | 0.95 | 4.27 | 1.11 | 4.11 | 220 | ||||||||||||||||||||||||||||||
2.59 | 24,504 | 0.95 | 3.80 | 1.08 | 3.67 | 251 | ||||||||||||||||||||||||||||||
2.74 | 32,815 | 0.95 | 3.53 | 1.05 | 3.43 | 127 | ||||||||||||||||||||||||||||||
2.79 | 24,667 | 0.95 | 2.98 | 1.06 | 2.87 | 175 | ||||||||||||||||||||||||||||||
3.12 | % | $ | 3,737 | 1.70 | % | 3.86 | % | 1.93 | % | 3.63 | % | 325 | % | |||||||||||||||||||||||
4.26 | 4,920 | 1.70 | 3.66 | 1.91 | 3.45 | 303 | ||||||||||||||||||||||||||||||
(0.38 | ) | 6,595 | 1.70 | 3.52 | 1.86 | 3.36 | 220 | |||||||||||||||||||||||||||||
1.72 | 7,926 | 1.70 | 3.05 | 1.83 | 2.92 | 251 | ||||||||||||||||||||||||||||||
2.02 | 9,155 | 1.70 | 2.79 | 1.80 | 2.69 | 127 | ||||||||||||||||||||||||||||||
1.96 | 11,397 | 1.70 | 2.22 | 1.81 | 2.11 | 175 | ||||||||||||||||||||||||||||||
3.14 | % | $ | 2,259 | 1.70 | % | 3.86 | % | 1.93 | % | 3.63 | % | 325 | % | |||||||||||||||||||||||
4.19 | 3,077 | 1.70 | 3.67 | 1.91 | 3.46 | 303 | ||||||||||||||||||||||||||||||
(0.38 | ) | 5,127 | 1.70 | 3.52 | 1.86 | 3.36 | 220 | |||||||||||||||||||||||||||||
1.82 | 6,585 | 1.70 | 3.05 | 1.83 | 2.92 | 251 | ||||||||||||||||||||||||||||||
2.02 | 10,520 | 1.70 | 2.79 | 1.80 | 2.69 | 127 | ||||||||||||||||||||||||||||||
1.91 | 18,801 | 1.70 | 2.19 | 1.81 | 2.08 | 175 | ||||||||||||||||||||||||||||||
3.54 | % | $ | 1,585 | 1.20 | % | 4.44 | % | 1.43 | % | 4.21 | % | 325 | % | |||||||||||||||||||||||
4.82 | 204 | 1.20 | 4.17 | 1.41 | 3.96 | 303 | ||||||||||||||||||||||||||||||
0.04 | 7 | 1.20 | 4.04 | 1.51 | 3.73 | 220 | ||||||||||||||||||||||||||||||
2.18 | 3 | 1.20 | 3.42 | 1.48 | 3.14 | 251 | ||||||||||||||||||||||||||||||
2.74 | 1 | 0.95 | 3.58 | 1.05 | 3.48 | 127 | ||||||||||||||||||||||||||||||
2.79 | 17,296 | 0.95 | 3.04 | 1.06 | 2.93 | 175 | ||||||||||||||||||||||||||||||
4.16 | % | $ | 123,436 | 0.70 | % | 4.85 | % | 0.93 | % | 4.62 | % | 325 | % | |||||||||||||||||||||||
5.23 | 133,960 | 0.70 | 4.66 | 0.91 | 4.45 | 303 | ||||||||||||||||||||||||||||||
0.38 | 140,407 | 0.70 | 4.52 | 0.86 | 4.36 | 220 | ||||||||||||||||||||||||||||||
2.75 | 158,230 | 0.70 | 4.05 | 0.83 | 3.92 | 251 | ||||||||||||||||||||||||||||||
3.09 | 171,143 | 0.70 | 3.79 | 0.80 | 3.69 | 127 | ||||||||||||||||||||||||||||||
3.03 | 214,531 | 0.70 | 3.27 | 0.81 | 3.16 | 175 | ||||||||||||||||||||||||||||||
First American Funds 2008 Annual Report 81
Notes toFinancial Statements | June 30, 2008, all dollars and shares are rounded to thousands (000) |
1 > | Organization |
Core Bond Fund, High Income Bond Fund, Inflation Protected Securities Fund, Intermediate Government Bond Fund, Intermediate Term Bond Fund, Short Term Bond Fund, Total Return Bond Fund, and U.S. Government Mortgage Fund (each a “fund” and collectively, the “funds”) are mutual funds offered by First American Investment Funds, Inc. (“FAIF”), which is a member of the First American Family of Funds. As of June 30, 2008, FAIF offered 43 funds, including the funds listed above. FAIF is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. FAIF’s articles of incorporation permit the funds’ board of directors to create additional funds in the future. Each fund is a diversified open-end management investment company.
FAIF offers Class A, Class C, Class R, and Class Y shares. Class A shares of Intermediate Government Bond Fund, Intermediate Term Bond Fund, and Short Term Bond Fund are sold with a front-end sales charge of 2.25%. Class A shares of Core Bond Fund, High Income Bond Fund, Inflation Protected Securities Fund, Total Return Bond Fund, and U.S. Government Mortgage Fund are sold with a front-end sales charge of 4.25%. Class C shares may be subject to a contingent deferred sales charge for 12 months, and will not convert to Class A shares. Class R shares have no sales charge and are offered only through certain tax-deferred retirement plans. Class Y shares have no sales charge and are offered only to qualifying institutional investors and certain other qualifying accounts. Class C and Class R shares are not offered by Intermediate Government Bond Fund, Intermediate Term Bond Fund, or Short Term Bond Fund. Prior to the close of business on June 30, 2008, each fund except Intermediate Government Bond Fund, Intermediate Term Bond Fund, and Short Term Bond Fund offered Class B shares. Subsequent to this date, no new or additional investments are allowed in Class B shares, except for permitted exchanges and any reinvested dividends. Class B shares are subject to a contingent deferred sales charge for six years and automatically convert to Class A shares after eight years.
The funds’ prospectus provides descriptions of each fund’s investment objective, principal investment strategies, and principal risks. All classes of shares in a fund have identical voting, dividend, liquidation, and other rights, and the same terms and conditions, except that certain fees, including distribution and shareholder servicing fees, may differ among classes. Each class has exclusive voting rights on any matters relating to that class’ servicing or distribution arrangements.
2 > | Summary of Significant Accounting Policies |
The significant accounting policies followed by the funds are as follows:
SECURITY VALUATIONS – Security valuations for the funds’ investments are furnished by an independent pricing service that has been approved by the funds’ board of directors. Investments in equity securities that are traded on a national securities exchange (or reported on the Nasdaq national market system) are stated at the last quoted sales price if readily available for such securities on each business day. For securities traded on the Nasdaq national market system, the funds utilize the Nasdaq Official Closing Price which compares the last trade to the bid/ask range of a security. If the last trade falls within the bid/ask range, then that price will be the closing price. If the last trade is outside the bid/ask range, and falls above the ask, the ask price will be the closing price. If the last trade is below the bid, the bid will be the closing price. Other equity securities traded in the over-the-counter market and listed equity securities for which no sale was reported on that date are stated at the last quoted bid price. Investments in open-end mutual funds are valued at their respective net asset values on the valuation date. Investments in closed-end mutual funds are valued at their reported closing prices on the national securities exchange on which they trade.
Debt obligations exceeding 60 days to maturity are valued by an independent pricing service. The pricing service may employ methodologies that utilize actual market transactions, broker-dealer supplied valuations, or other formula-driven valuation techniques. These techniques generally consider such factors as yields or prices of bonds of comparable quality, type of issue, coupon, maturity, ratings, and general market conditions. Securities for which prices are not available from an independent pricing service, but where an active market exists, are valued using market quotations obtained from one or more dealers that make markets in the securities or from a widely used quotation system. Debt obligations with 60 days or less remaining until maturity will be valued at their amortized cost, which approximates market value. Foreign securities are valued at the closing prices on the principal exchanges on which they trade. The prices for foreign securities are reported in local currency and converted to U.S. dollars using currency exchange rates. Exchange rates are provided daily by recognized independent pricing agents.
The following investment vehicles, when held by a fund, are priced as follows: Exchange listed futures and options on futures are priced at their last sale price on the exchange on which they are principally traded, as determined by FAF Advisors, Inc. (“FAF Advisors”), on the day the valuation is made. If there were no sales on that day, futures and options on futures will be valued at the last reported bid price. Options on securities, indices, and
82 First American Funds 2008 Annual Report
currencies traded on Nasdaq or listed on a stock exchange, whether domestic or foreign, are valued at the last sale price on Nasdaq or on any exchange on the day the valuation is made. If there were no sales on that day, the options will be valued at the last sale price on the previous valuation date. Last sale prices are obtained from an independent pricing service. Forward contracts (other than foreign currency forward contracts), swaps, and over-the-counter options on securities, indices, and currencies are valued at the quotations received from an independent pricing service, if available. Foreign currency forward contracts are valued at the current day’s interpolated foreign exchange rate, as calculated using the current day’s exchange rate, and the 30-, 60-, 90-, 180-, and 360-day forward rates provided by an independent pricing service.
When market quotations are not readily available, securities are valued at fair value as determined in good faith by procedures established and approved by the funds’ board of directors. Some of the factors which may be considered in determining fair value are fundamental analytical data relating to the investment; the nature and duration of any restrictions on disposition; security’s previous price and/or trading in similar securities of the same issuer or comparable companies; information from broker-dealers; and an evaluation of the forces that influence the market in which the securities are purchased and sold. If events occur that materially affect the value of securities (including non-U.S. securities) between the close of trading in those securities and the close of regular trading on the New York Stock Exchange, the securities will be valued at fair value. Price movements in futures contracts and ADRs (American Depositary Receipts), and various other indices, may be reviewed in the course of making a good faith determination of a security’s fair value. The use of fair value pricing by a fund may cause the net asset value of its shares to differ significantly from net asset value that would be calculated without regard to such considerations. As of June 30, 2008, Core Bond Fund, High Income Bond Fund, Intermediate Term Bond Fund, and Short Term Bond Fund held fair value securities with a value of $49, $0, $30, and $0, respectively, or 0.0%, 0.0%, 0.0%, and 0.0%, respectively, of total net assets.
SECURITY TRANSACTIONS AND INVESTMENT INCOME – For financial statement purposes, the funds record security transactions on the trade date of the security purchase or sale. Dividend income is recorded on the ex-dividend date. Interest income, including amortization of bond premium and discount, is recorded on an accrual basis. Security gains and losses are determined on the basis of identified cost, which is the same basis used for federal income tax purposes. The resulting gain/loss is calculated as the difference between the sales price and the underlying cost of the security on the transaction date.
DISTRIBUTIONS TO SHAREHOLDERS – Distributions from net investment income are declared daily and are payable in cash or reinvested in additional shares of the fund at net asset value on the last business day of each month. Any net realized capital gains on sales of a fund’s securities are distributed to shareholders at least annually.
FEDERAL TAXES – Each fund is treated as a separate taxable entity. Each fund intends to continue to qualify as a regulated investment company as provided in Subchapter M of the Internal Revenue Code, as amended, and to distribute all taxable income, if any, to its shareholders. Accordingly, no provision for federal income or excise taxes is required.
FASB Interpretation No. 48, “Accounting for Uncertainty in Income Taxes” (“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. As of June 30, 2008, the funds did not have any tax positions that did not meet the “more-likely-than-not” threshold of being sustained by the applicable tax authority. Generally, tax authorities can examine all the tax returns filed for the last three years.
Net investment income and net realized gains (losses) may differ for financial statement and tax purposes because of temporary or permanent book/tax differences. These differences are primarily due to deferred wash sale and straddle losses, paydowns on pass through obligations, expiration of capital loss carryforwards, tax mark-to-market adjustments for certain derivatives in accordance with IRC Section 1256, and tax mark-to-market adjustments under Section 311(e) of the Taxpayer Relief Act of 1997. To the extent these differences are permanent, reclassifications are made to the appropriate capital accounts in the fiscal period that the differences arise.
First American Funds 2008 Annual Report 83
Notes toFinancial Statements | June 30, 2008, all dollars and shares are rounded to thousands (000) |
On the Statements of Assets and Liabilities, the following reclassifications were made:
Accumulated | Undistributed | |||||||||||
Net Realized | Net Investment | Portfolio | ||||||||||
Gain (Loss) | Gain Income | Capital | ||||||||||
Core Bond Fund | $ | (1,038 | ) | $ | 1,038 | $ | — | |||||
High Income Bond Fund | (373 | ) | 373 | — | ||||||||
Inflation Protected Securities Fund | (126 | ) | 126 | — | ||||||||
Intermediate Government Bond Fund | — | 24 | (24 | ) | ||||||||
Intermediate Term Bond Fund | 88 | (88 | ) | — | ||||||||
Short Term Bond Fund | 440 | (440 | ) | — | ||||||||
Total Return Bond Fund | (1,685 | ) | 1,685 | — | ||||||||
U.S. Government Mortgage Fund | (270 | ) | 270 | — | ||||||||
The character of distributions made during the year from net investment income may differ from its ultimate characterization for federal income tax purposes. In addition, due to the timing of dividend distributions, the fiscal year in which the amounts are distributed may differ from the year that the income was recorded by the fund. The distributions paid during the fiscal years ended June 30, 2008 and June 30, 2007 (adjusted by dividends payable as of June 30, 2008 and June 30, 2007) were as follows:
June 30, 2008 | ||||
Ordinary | ||||
Fund | Income | |||
Core Bond Fund | $ | 76,512 | ||
High Income Bond Fund | 19,566 | |||
Inflation Protected Securities Fund | 13,597 | |||
Intermediate Government Bond Fund | 2,075 | |||
Intermediate Term Bond Fund | 33,624 | |||
Short Term Bond Fund | 15,318 | |||
Total Return Bond Fund | 47,944 | |||
U.S. Government Mortgage Fund | 7,208 | |||
June 30, 2007 | ||||||||||||
Ordinary | Return of | |||||||||||
Fund | Income | Capital | Total | |||||||||
Core Bond Fund | $ | 76,723 | $ | — | $ | 76,723 | ||||||
High Income Bond Fund | 17,240 | — | 17,240 | |||||||||
Inflation Protected Securities Fund | 12,694 | — | 12,694 | |||||||||
Intermediate Government Bond Fund | 1,595 | 151 | 1,746 | |||||||||
Intermediate Term Bond Fund | 35,261 | — | 35,261 | |||||||||
Short Term Bond Fund | 17,150 | — | 17,150 | |||||||||
Total Return Bond Fund | 26,685 | — | 26,685 | |||||||||
U.S. Government Mortgage Fund | 7,219 | — | 7,219 | |||||||||
As of June 30, 2008, the components of accumulated earnings (deficit) on a tax basis were as follows:
Accumulated | Total | |||||||||||||||||||
Undistributed | Undistributed | Capital and | Unrealized | Accumulated | ||||||||||||||||
Ordinary | Long Term | Post-October | Appreciation | Earnings | ||||||||||||||||
Fund | Income | Capital Gains | Losses | Depreciation | Deficit | |||||||||||||||
Core Bond Fund | $ | 7,234 | $ | — | $ | (1,001 | ) | $ | (55,443 | ) | $ | (49,210 | ) | |||||||
High Income Bond Fund | 2,422 | — | (9,610 | ) | (19,405 | ) | (26,593 | ) | ||||||||||||
Inflation Protected Securities Fund | 3,748 | — | (7,137 | ) | 2,463 | (926 | ) | |||||||||||||
Intermediate Government Bond Fund | — | — | (436 | ) | (185 | ) | (621 | ) | ||||||||||||
Intermediate Term Bond Fund | 2,863 | — | (3,607 | ) | (21,108 | ) | (21,852 | ) | ||||||||||||
Short Term Bond Fund | 299 | — | (16,849 | ) | (5,504 | ) | (22,054 | ) | ||||||||||||
Total Return Bond Fund | 18,949 | 188 | (85 | ) | (40,104 | ) | (21,052 | ) | ||||||||||||
U.S. Government Mortgage Fund | 588 | — | (9,258 | ) | (4,028 | ) | (12,698 | ) | ||||||||||||
The difference between book and tax basis unrealized appreciation (depreciation) is primarily due to the tax deferral of losses on wash sales and straddles, tax mark-to-market adjustments for certain derivatives in accordance with IRC Section 1256, and tax mark-to-market adjustments made under Section 311(e) of the Taxpayer Relief Act of 1997.
84 First American Funds 2008 Annual Report
As of June 30, 2008, the following funds had capital loss carryforwards, which, if not offset by subsequent capital gains, will expire on the fund’s fiscal year-ends as follows:
Expiration Year | ||||||||||||||||||||||||||||||||||||
Fund | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | Total | |||||||||||||||||||||||||||
Core Bond Fund | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 994 | $ | — | $ | 994 | ||||||||||||||||||
High Income Bond Fund | — | — | 1,250 | — | — | — | — | 1,453 | 2,703 | |||||||||||||||||||||||||||
Inflation Protected Securities Fund | — | — | — | — | — | 256 | 5,928 | 953 | 7,137 | |||||||||||||||||||||||||||
Intermediate Government Bond Fund | — | — | — | — | — | — | 436 | — | 436 | |||||||||||||||||||||||||||
Intermediate Term Bond Fund | — | — | — | — | — | — | 3,607 | — | 3,607 | |||||||||||||||||||||||||||
Short Term Bond Fund | — | — | — | 1,315 | — | 8,101 | 7,433 | — | 16,849 | |||||||||||||||||||||||||||
Total Return Bond Fund | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
U.S. Government Mortgage Fund | — | — | — | 3,145 | 1,293 | 555 | 1,629 | 2,446 | 9,068 | |||||||||||||||||||||||||||
Certain funds incurred a loss for tax purposes for the period from November 1, 2007 to June 30, 2008. As permitted by tax regulations, the funds intend to elect to defer and treat these losses as arising in the fiscal year ending June 30, 2009. The following funds had deferred losses:
Fund | Amount | |||
Core Bond Fund | $ | 7 | ||
High Income Bond Fund | 6,907 | |||
Total Return Bond Fund | 85 | |||
U.S. Government Mortgage Fund | 190 | |||
FUTURES TRANSACTIONS – In order to gain exposure or protect against changes in the market and to maintain sufficient liquidity to meet redemption requests, each fund may enter into futures contracts. Upon entering into a futures contract, the fund is required to deposit cash or pledge U.S. government securities. The margin required for a futures contract is set by the exchange on which the contract is traded. Subsequent payments, which are dependent on the daily fluctuations in the value of the underlying security or securities, are made or received by the fund each day (daily variation margin) and are recorded as unrealized gains (losses) until the contract is closed. When the contract is closed, the fund records a realized gain (loss) equal to the difference between the proceeds from (or cost of) the closing transaction and the fund’s basis in the contract.
Risks of entering into futures contracts, in general, include the possibility that there will not be a perfect price correlation between the futures contracts and the underlying securities. Second, it is possible that a lack of liquidity for futures contracts could exist in the secondary market, resulting in an inability to close a futures position prior to its maturity date. Third, the purchase of a futures contract involves the risk that a fund could lose more than the original margin deposit required to initiate a futures transaction. These contracts involve market risk in excess of the amount reflected in the fund’s Statement of Assets and Liabilities. Unrealized gains (losses) on outstanding positions in futures contracts held at the close of the year will be recognized as capital gains (losses) for federal income tax purposes.
As of June 30, 2008, the following funds had outstanding futures contracts as disclosed in their Schedule of Investments: Core Bond Fund, High Income Bond Fund, Inflation Protected Securities Fund, Intermediate Term Bond Fund, Short Term Bond Fund, Total Return Bond Fund, and U.S. Government Mortgage Fund.
SWAP AGREEMENTS – The funds may invest in swap agreements. A swap is an agreement to exchange the return generated by one instrument for the return generated by another instrument. The funds may enter into interest rate and credit default swap agreements to manage exposure to interest rates and credit risk.
Interest rate swap agreements involve the exchange by the fund with another party of their respective commitments to pay or receive interest (e.g., an exchange of floating rate payments for fixed rate payments with respect to the notional amount of principal). As of June 30, 2008, the following funds had outstanding interest rate swap agreements: Core Bond Fund, Inflation Protected Securities Fund, Intermediate Term Bond Fund, Short Term Bond Fund, Total Return Bond Fund, and U.S. Government Mortgage Fund.
In a credit default swap, one party makes a stream of payments to another party in exchange for the right to receive a specified return in the event of a default by a specified issuer on its obligation (typically corporate issues or sovereign issues of an emerging country). The fund may use credit default swaps to provide a measure of protection against defaults of sovereign issuers (i.e., to reduce risk where the fund owns or has exposure to the sovereign issuer) or to take an active long or short position with respect to the likelihood of a particular issuer’s default. A “buyer” of credit protection agrees to pay a counterparty to assume the credit risk of an issuer upon the occurrence of certain events. The “seller” of the protection receives periodic payments and agrees to assume the credit risk of an issuer upon the occurrence of certain events. A “seller’s” exposure is limited to the total notional amount of the credit default swap contract. As of June 30, 2008, the following funds had outstanding credit default swap agreements as disclosed in their Schedule of Investments: Core Bond Fund, High Income Bond Fund, Inflation Protected Securities Fund, Intermediate Term
First American Funds 2008 Annual Report 85
Notes toFinancial Statements | June 30, 2008, all dollars and shares are rounded to thousands (000) |
Bond Fund, Short Term Bond Fund, Total Return Bond Fund, and U.S. Government Mortgage Fund.
Swaps are marked-to-market daily based upon quotations from market makers and the change in value, if any, is recorded as unrealized gain or loss in the Statement of Operations. Payments received or made at the beginning of the measurement period are reflected on the Statement of Assets and Liabilities. A liquidation payment received or made at the termination of the swap agreement is recorded as realized gain or loss in the Statement of Operations. Net periodic payments received by the fund are included as part of other income on the Statement of Operations. Entering into these agreements involves, to varying degrees, elements of credit, market and documentation risk in excess of the amounts recognized on the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of contractual terms in the agreements, and that there may be unfavorable changes in interest rates.
OPTIONS TRANSACTIONS – The funds may utilize options in an attempt to manage market or business risk or enhance returns. When a call or put option is written, an amount equal to the premium received is recorded as a liability. The liability is marked-to-market daily to reflect the current market value of the option written. When an option written expires, a gain is realized in the amount of the premium originally received. If a closing purchase contract is entered into, a gain or loss is realized in the amount of the original premium less the cost of the closing transaction. If a written call option is exercised, a gain or loss is realized from the sale of the underlying security, and the proceeds from such sale are increased by the premium originally received. If a written put option is exercised, the amount of the premium originally received reduces the cost of the security which is purchased upon exercise of the option. As of June 30, 2008, Total Return Bond 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 June 30, 2008, Total Return Bond Fund held options purchased.
INFLATION-INDEXED BONDS – The funds may invest in inflation-indexed bonds. Inflation-indexed bonds are fixed income securities whose principal value is periodically adjusted to the rate of inflation. The interest rate on these bonds is generally fixed at issuance at a rate lower than typical bonds. Over the life of an inflation-indexed bond however, interest will be paid based on a principal value which is adjusted for inflation. Any increase in the principal amount of an inflation-indexed bond will be included as interest income in the Statement of Operations, even though investors do not receive their principal until maturity.
FOREIGN CURRENCY TRANSLATION – The books and records of Core Bond Fund, High Income Bond Fund, Inflation Protected Securities Fund, Short Term Bond Fund, and Total Return Bond Fund relating to the funds’ non-U.S. dollar denominated investments are maintained in U.S. dollars on the following basis:
• | market value of investment securities, assets, and liabilities are translated at the current rate of exchange; and | |
• | purchases and sales of investment securities, income, and expenses are translated at the relevant rates of exchange prevailing on the respective dates of such transactions. |
The funds do not isolate the portion of gains and losses on investments in debt securities that is due to changes in the foreign exchange rates from that which is due to changes in market prices of debt securities. The funds isolate the effect of fluctuations in foreign currency rates when determining the gain or loss upon sale or maturity of foreign currency denominated debt obligations pursuant to the federal income tax regulations. Such amounts are categorized as foreign currency gain(loss) for both financial reporting and income tax reporting purposes.
The funds report certain foreign currency-related transactions as components of realized gains for financial reporting purposes, whereas such components are treated as ordinary income for federal income tax purposes.
For the fiscal year ended June 30, 2008, Core Bond Fund, High Income Bond Fund, Inflation Protected Securities Fund, Short Term Bond Fund, and Total Return Bond Fund had non-U.S. dollar denominated investments with a total value of $8,090, $454, $1,305, $1,566, and $35,708, respectively, or 0.5%, 0.0%, 0.5%, 0.5%, and 3.3%, respectively, of total net assets.
SECURITIES PURCHASED ON A WHEN-ISSUED BASIS – Delivery and payment for securities that have been purchased by a fund on a when-issued or forward-commitment basis can take place up to a month or more after the transaction. Such securities do not earn interest, are subject to market fluctuations, and may increase or decrease in value prior to their delivery. Each fund segregates assets with a market value equal to or greater than the amount of its purchase
86 First American Funds 2008 Annual Report
commitments. The purchase of securities on a when-issued or forward-commitment basis may increase the volatility of a fund’s net asset value if the fund makes such purchases while remaining substantially fully invested. At June 30, 2008, Core Bond Fund, High Income Bond Fund, Inflation Protected Securities Fund, Total Return Bond Fund, and U.S. Government Mortgage Fund had when-issued or forward-commitment securities outstanding with a total cost of $113,700, $2,656, $435, $28,151, and $41,088, respectively.
In connection with the ability to purchase securities on a when-issued basis, each fund may also enter into dollar rolls in which the fund sells securities purchased on a forward-commitment basis and simultaneously contracts with a counterparty to repurchase similar (same type, coupon, and maturity), but not identical securities on a specified future date. As an inducement for the fund to “rollover” its purchase commitments, the fund receives negotiated amounts in the form of reductions of the purchase price of the commitment. Dollar rolls are considered a form of leverage. As of and for the fiscal year ended June 30, 2008, the funds had no outstanding dollar roll transactions.
ILLIQUID OR RESTRICTED SECURITIES – A security may be considered illiquid if it lacks a readily available market. Securities are generally considered liquid if they can be sold or disposed of in the ordinary course of business within seven days at approximately the price at which the security is valued by the fund. Illiquid securities may be valued under methods approved by the funds’ board of directors as reflecting fair value. Each fund intends to invest no more than 15% of its net assets (determined at the time of purchase and reviewed periodically) in illiquid securities. Certain restricted securities may be considered illiquid. Restricted securities are often purchased in private placement transactions, are not registered under the Securities Act of 1933, may have contractual restrictions on resale, and may be valued under methods approved by the funds’ board of directors as reflecting fair value. Certain restricted securities eligible for resale to qualified institutional investors, including Rule 144A securities, are not subject to the limitation on a fund’s investment in illiquid securities if they are determined to be liquid in accordance with procedures adopted by the funds’ board of directors. At June 30, 2008, Core Bond Fund, High Income Bond Fund, Intermediate Term Bond Fund, Short Term Bond Fund, Total Return Bond Fund, and U.S. Government Mortgage Fund had investments in illiquid securities with a total value of $7,431, $2,617, $3,851, $2,938, $3,263, and $51, respectively, or 0.5%, 1.1%, 0.5%, 0.9%, 0.3%, and 0.0%, respectively, of total net assets.
Information concerning illiquid securities, including restricted securities considered to be illiquid, is as follows:
Dates | Cost | |||||||||||
Core Bond Fund | Par | Acquired | Basis | |||||||||
Amresco Residential Security Mortgage, Series 1997-3, Class A9 | $ | 54 | 10/02 | $ | 55 | |||||||
Commercial Mortgage Pass-Through Certificates, Series 2004-RS1, Class A | 4,357 | 2/07 | �� | 4,234 | ||||||||
Duty Free International | 2,191 | 1/99-7/99 | 2,187 | |||||||||
FTN Financial Auto Securitization Trust, Series 2004-A, Class A | 282 | 8/06 | 279 | |||||||||
GS Mortgage Securities II, Series 2006-RR2, Class A1 | 4,334 | 7/06 | 4,252 | |||||||||
Westam Mortgage Financial, Series II, Class A | 49 | 9/97 | 48 | |||||||||
Dates | Cost | |||||||||||
High Income Bond Fund | Par/Shares | Acquired | Basis | |||||||||
American Home Mortgage Investments | $ | 10 | 7/07 | $ | 190 | |||||||
American Real Estate | 1,250 | 4/07-3/08 | 1,237 | |||||||||
Exum, Series 2007-1A, Class C | 1,000 | 2/07 | 1,000 | |||||||||
Exum, Series 2007-2A, Class C | 1,000 | 4/07 | 1,000 | |||||||||
Green Tree Financial, Series 1998-1, Class A4 | 7 | 5/99 | 7 | |||||||||
Date | Cost | |||||||||||
Intermediate Term Bond Fund | Par | Acquired | Basis | |||||||||
Amresco Residential Security Mortgage, Series 1997-3, Class A9 | $ | 37 | 10/02 | $ | 38 | |||||||
Commercial Mortgage Pass-Through Certificates, Series 2004-RS1, Class A | 2,351 | 2/07 | 2,284 | |||||||||
Contimortgage Home Equity Loan Trust, Series 1997-2, Class A9 | 44 | 10/02 | 46 | |||||||||
GS Mortgage Securities II, Series 2006-RR2, Class A1 | 2,257 | 7/06 | 2,214 | |||||||||
Westam Mortgage Financial, Series 11, Class A | 30 | 11/97 | 29 | |||||||||
Date | Cost | |||||||||||
Short Term Bond Fund | Par | Acquired | Basis | |||||||||
Auto Bond Receivables Trust, Series 1993-I, Class A | $ | 106 | 11/98-11/00 | $ | 106 | |||||||
Commercial Mortgage Pass-Through Certificates, Series 2004-RS1, Class A | 1,243 | 2/07 | 1,208 | |||||||||
Equivantage Home Equity Loan Trust, Series 1996-1, Class A | 51 | 2/99 | 52 | |||||||||
Equivantage Home Equity Loan Trust, Series 1996-4, Class A | 247 | 1/00 | 242 | |||||||||
IMC Home Equity Loan Trust, Series 1998-3, Class A7 | 1,604 | 10/02 | 1,688 | |||||||||
FTN Financial Auto Securitization Trust, Series 2004-A, Class B | 22 | 8/06 | 22 | |||||||||
First American Funds 2008 Annual Report 87
Notes toFinancial Statements | June 30, 2008, all dollars and shares are rounded to thousands (000) |
Date | Cost | |||||||||||
Total Return Bond Fund | Par | Acquired | Basis | |||||||||
Commercial Mortgage Pass-Through Certificates, Series 2004-RS1, Class A | $ | 2,186 | 2/07 | $ | 2,124 | |||||||
FTN Financial Auto Securitization Trust, Series 2004-A, Class A | 67 | 8/06 | 67 | |||||||||
GRMT Mortgage Loan Trust, Series 2001-1A, Class M1 | 184 | 5/01 | 184 | |||||||||
GS Mortgage Securities II, Series 2006-RR2, Class A1 | 1,523 | 7/06 | 1,494 | |||||||||
Date | Cost | |||||||||||
U.S. Government Mortgage Fund | Par | Acquired | Basis | |||||||||
GRMT Mortgage Loan Trust, Series 2001-1A, Class M1 | $ | 61 | 9/02 | $ | 63 | |||||||
SECURITIES LENDING – In order to generate additional income, each fund may lend securities representing up to one-third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks, or other institutional borrowers of securities. Each fund’s policy is to receive collateral from the borrower in the form of cash, U.S. government securities, or other high-grade debt obligations equal to at least 100% of the value of securities loaned. If the value of the securities on loan increases, additional collateral is received from the borrower. As with other extensions or credit, there may be risks of delay in recovery of the securities or even loss of rights in the collateral should the borrower of the security fail financially.
U.S. Bank National Association (“U.S. Bank”), the parent company of the funds’ advisor, serves as the securities lending agent for the funds in transactions involving the lending of portfolio securities on behalf of the funds. U.S. Bank acts as the securities lending agent pursuant to, and subject to compliance with conditions contained in, an exemptive order issued by the Securities and Exchange Commission (“SEC”). U.S. Bank receives fees as a percentage of each fund’s net income from securities lending transactions. Effective January 23, 2007, collateral for securities on loan is invested in a money market fund administered by FAF Advisors and FAF Advisors receives an administration fee equal to 0.02% of such fund’s average daily net assets in this money market fund. Securities lending fees paid to U.S. Bank by the funds during the fiscal year ended June 30, 2008, were as follows:
Fund | Amount | |||
Core Bond Fund | $ | 684 | ||
High Income Bond Fund | 101 | |||
Inflation Protected Securities Fund | 252 | |||
Intermediate Term Bond Fund | 246 | |||
Short Term Bond Fund | 66 | |||
Total Return Bond Fund | 417 | |||
U.S. Government Mortgage Fund | 46 | |||
Income from securities lending is recorded on the Statement of Operations as securities lending income net of fees paid to U.S. Bank.
EXPENSES – Expenses that are directly related to one of the funds are charged directly to that fund. Other operating expenses are allocated to the funds on several bases, including evenly across all funds, allocated based on relative net assets of all funds within the First American Family of Funds, or a combination of both methods. Class specific expenses, such as distribution fees and shareholder servicing fees, are borne by that class. Income, other expenses, and realized and unrealized gains and losses of a fund are allocated to each respective class in proportion to the relative net assets of each class.
INTERFUND LENDING PROGRAM – Pursuant to an exemptive order issued by the SEC, the funds, along with other registered investment companies in the First American Family of Funds, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating funds. The funds did not have any interfund lending transactions during the fiscal year ended June 30, 2008.
DEFERRED COMPENSATION PLAN – Under a Deferred Compensation Plan (the “Plan”), non-interested directors of the First American Family of Funds may participate and elect to defer receipt of part or all of their annual compensation. Deferred amounts are treated as though equivalent dollar amounts had been invested in shares of selected open-end First American Funds, preselected by each director. All amounts in the Plan are 100% vested and accounts under the Plan are obligations of the funds. Deferred amounts remain in the funds until distributed in accordance with the Plan.
USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS – The preparation of financial statements, in conformity with U.S. generally accepted accounting principles, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported results of operations during the reporting period. Actual results could differ from those estimates.
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
88 First American Funds 2008 Annual Report
monthly fee based upon average daily net assets. The annual fee for each fund is as follows:
Fund | ||||||
Core Bond Fund | 0.50 | % | ||||
High Income Bond Fund | 0.70 | |||||
Inflation Protected Securities Fund | 0.50 | |||||
Intermediate Government Bond Fund | 0.50 | |||||
Intermediate Term Bond Fund | 0.50 | |||||
Short Term Bond Fund | 0.50 | |||||
Total Return Bond Fund | 0.60 | |||||
U.S. Government Mortgage Fund | 0.50 | |||||
FAF Advisors has agreed to waive fees and reimburse other fund expenses at least through June 30, 2009, so that total fund operating expenses, as a percentage of average daily net assets, do not exceed the following amounts:
Share Class | ||||||||||||||||||||||
Fund | A | B | C | R | Y | |||||||||||||||||
Core Bond Fund | 0.95 | % | 1.70 | % | 1.70 | % | 1.20 | % | 0.70 | % | ||||||||||||
High Income Bond Fund | 1.10 | 1.85 | 1.85 | 1.35 | 0.85 | |||||||||||||||||
Inflation Protected Securities Fund | 0.85 | NA | 1.60 | 1.10 | 0.60 | |||||||||||||||||
Intermediate Government Bond Fund | 0.75 | NA | NA | NA | 0.60 | |||||||||||||||||
Intermediate Term Bond Fund | 0.85 | NA | NA | NA | 0.70 | |||||||||||||||||
Short Term Bond Fund | 0.75 | NA | NA | NA | 0.60 | |||||||||||||||||
Total Return Bond Fund | 1.00 | 1.75 | 1.75 | 1.25 | 0.75 | |||||||||||||||||
U.S. Government Mortgage Fund | 0.95 | 1.70 | 1.70 | 1.20 | 0.70 | |||||||||||||||||
NA = Not Applicable
The funds may invest in related money market funds that are series of First American Funds, Inc., subject to certain limitations. In order to avoid the payment of duplicative investment advisory fees to FAF Advisors, which acts as the investment advisor to both the investing funds and the related money market funds, FAF Advisors will reimburse each investing fund an amount equal to that portion of FAF Advisors’ investment advisory fee received from the related money market funds that is attributable to the assets of the investing fund. This reimbursement is included in “Fee waivers” in the Statement of Operations.
ADMINISTRATION FEES – FAF Advisors serves as the funds’ administrator pursuant to an administration agreement between FAF Advisors and the funds. U.S. Bancorp Fund Services, LLC (“USBFS”) serves as sub-administrator pursuant to a sub-administration agreement between USBFS and FAF Advisors. FAF Advisors is a subsidiary of U.S. Bank. Both U.S. Bank and USBFS are direct subsidiaries of U.S. Bancorp. Under the administration agreement, FAF Advisors is compensated to provide, or compensates other entities to provide, services to the funds. These services include various legal, oversight, administrative, and accounting services. The funds pay FAF Advisors administration fees, which are calculated daily and paid monthly, equal to each fund’s pro rata share of an amount equal, on a annual basis, to 0.25% of the aggregate average daily net assets of all open-end mutual funds in the First American Family of Funds up to $8 billion, 0.235% on the next $17 billion of the aggregate average daily net assets, 0.22% on the next $25 billion of the aggregate average daily net assets, and 0.20% of the aggregate average daily net assets in excess of $50 billion. All fees paid to the sub-administrator are paid from the administration fee. In addition to these fees, the funds may reimburse FAF Advisors and the sub-administrator for any out-of-pocket expenses incurred in providing administration services.
TRANSFER AGENT FEES – USBFS serves as the funds’ transfer agent pursuant to a transfer agent agreement with FAIF. The funds are charged transfer agent fees on a per shareholder account basis, subject to a minimum fee per share class. These fees are charged to each fund based upon the number of accounts within that fund. In addition to these fees, the funds may reimburse USBFS for out-of-pocket expenses incurred in providing transfer agent services.
CUSTODIAN FEES – U.S. Bank serves as the custodian for each fund pursuant to a custodian agreement with FAIF. The custodian fee charged for each fund is equal to an annual rate of 0.005% of average daily net assets. All fees are computed daily and paid monthly.
Under the custodian agreement, interest earned on uninvested cash balances is used to reduce a portion of each fund’s custodian expenses. These credits, if any, are disclosed as “Indirect payments from custodian” in the Statements of Operations. Conversely, the custodian charges a fee for any cash overdrafts incurred, which increases the fund’s custodian expenses.
For the fiscal year ended June 30, 2008, custodian fees were increased as a result of overdrafts and decreased as a result of interest earned as follows:
Fund | Increased | Decreased | ||||||
Core Bond Fund | $ | 2 | $ | 33 | ||||
High Income Bond Fund | — | 2 | ||||||
Inflation Protected Securities Fund | 1 | 1 | ||||||
Intermediate Government Bond Fund | — | — | ||||||
Intermediate Term Bond Fund | — | 10 | ||||||
Short Term Bond Fund | — | 10 | ||||||
Total Return Bond Fund | 2 | 26 | ||||||
U.S. Government Mortgage Fund | 5 | 2 | ||||||
DISTRIBUTION AND SHAREHOLDER SERVICING FEES – Quasar Distributors, LLC (“Quasar”), a subsidiary of U.S. Bancorp, serves as the distributor of the funds pursuant to a distribution agreement with FAIF. Under the distribution agreement, and pursuant to a plan adopted by each fund under rule 12b-1 of the Investment Company Act, each fund pays Quasar a monthly distribution and/or shareholder servicing fee equal to an annual rate of 0.25%, 1.00%, 1.00%, and 0.50% of each fund’s average daily net assets of the Class A shares, Class B shares, Class C shares, and Class R shares, respectively. No distribution or shareholder servicing fees are paid by Class Y shares. These fees may be used by Quasar to
First American Funds 2008 Annual Report 89
Notes toFinancial Statements | June 30, 2008, all dollars and shares are rounded to thousands (000) |
provide compensation for sales support, distribution activities, and/or shareholder servicing activities.
Quasar is currently waiving a portion of its 12b-1 fees for Class A shares, limiting its fees to 0.15% of average daily net assets for Intermediate Government Bond Fund, Intermediate Term Bond Fund, and Short Term Bond Fund.
For the fiscal year ended June 30, 2008, total distribution and shareholder servicing fees waived by Quasar for the funds included in this annual report were as follows:
Fund | Amount | |||
Intermediate Government Bond Fund | $ | 4 | ||
Intermediate Term Bond Fund | 29 | |||
Short Term Bond Fund | 64 | |||
Under the distribution and shareholder servicing agreements, the following amounts were retained by affiliates of FAF Advisors for the fiscal year ended June 30, 2008:
Fund | Amount | |||
Core Bond Fund | $ | 165 | ||
High Income Bond Fund | 40 | |||
Inflation Protected Securities Fund | 7 | |||
Intermediate Government Bond Fund | 2 | |||
Intermediate Term Bond Fund | 24 | |||
Short Term Bond Fund | 48 | |||
Total Return Bond Fund | 48 | |||
U.S. Government Mortgage Fund | 40 | |||
OTHER FEES AND EXPENSES – In addition to the investment advisory fees, administration fees, transfer agent fees, custodian fees, and distribution and shareholder servicing fees, each fund is responsible for paying other operating expenses, including: legal, auditing, registration fees, postage and printing of shareholder reports, fees and expenses of independent directors, insurance, and other miscellaneous expenses. For the fiscal year ended June 30, 2008, legal fees and expenses of $38 were paid to a law firm of which an Assistant Secretary of the funds is a partner.
CONTINGENT DEFERRED SALES CHARGES – A contingent deferred sales charge (“CDSC”) is imposed on redemptions made in the Class B shares. The CDSC varies depending on the number of years from time of payment for the purchase of Class B shares until the redemption of such shares. Class B shares automatically convert to Class A shares after eight years.
CDSC as a Percentage | ||||||
of Dollar Amount | ||||||
Year Since Purchase | Subject to Charge | |||||
First | 5.00 | % | ||||
Second | 5.00 | |||||
Third | 4.00 | |||||
Fourth | 3.00 | |||||
Fifth | 2.00 | |||||
Sixth | 1.00 | |||||
Seventh | — | |||||
Eighth | — | |||||
A CDSC of 1.00% is imposed on redemptions made in Class C shares for the first 12 months.
The CDSC for Class B shares and Class C shares is imposed on the value of the purchased shares, or the value at the time of redemption, whichever is less.
For the fiscal year ended June 30, 2008, total front-end sales charges and CDSCs retained by affiliates of FAF Advisors for distributing the funds’ shares were as follows:
Fund | Amount | |||
Core Bond Fund | $ | 50 | ||
High Income Bond Fund | 19 | |||
Inflation Protected Securities Fund | 2 | |||
Intermediate Government Bond Fund | 2 | |||
Intermediate Term Bond Fund | 3 | |||
Short Term Bond Fund | 4 | |||
Total Return Bond Fund | 22 | |||
U.S. Government Mortgage Fund | 17 | |||
90 First American Funds 2008 Annual Report
4 > | Capital Share Transactions |
FAIF has 362 billion shares of $0.0001 par value capital stock authorized. Capital share transactions for the funds were as follows:
Core | High Income | Inflation Protected | ||||||||||||||||||||||||||
Bond Fund | Bond Fund | Securities Fund | ||||||||||||||||||||||||||
Year | Year | Year | Year | Year | Year | |||||||||||||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | |||||||||||||||||||||||
6/30/08 | 6/30/07 | 6/30/08 | 6/30/07 | 6/30/08 | 6/30/07 | |||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||||||
Shares issued | 926 | 1,120 | 1,519 | 1,279 | 93 | 90 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | 314 | 339 | 152 | 133 | 11 | 15 | ||||||||||||||||||||||
Shares redeemed | (2,057 | ) | (4,531 | ) | (1,857 | ) | (1,610 | ) | (69 | ) | (345 | ) | ||||||||||||||||
Total Class A transactions | (817 | ) | (3,072 | ) | (186 | ) | (198 | ) | 35 | (240 | ) | |||||||||||||||||
Class B: | ||||||||||||||||||||||||||||
Shares issued | 58 | 34 | 19 | 33 | — | — | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | 27 | 37 | 18 | 19 | — | — | ||||||||||||||||||||||
Shares redeemed | (267 | ) | (471 | ) | (134 | ) | (201 | ) | — | — | ||||||||||||||||||
Total Class B transactions | (182 | ) | (400 | ) | (97 | ) | (149 | ) | — | — | ||||||||||||||||||
Class C: | ||||||||||||||||||||||||||||
Shares issued | 75 | 97 | 96 | 173 | 24 | 11 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | 13 | 14 | 29 | 31 | 1 | 1 | ||||||||||||||||||||||
Shares redeemed | (108 | ) | (172 | ) | (262 | ) | (389 | ) | (26 | ) | (33 | ) | ||||||||||||||||
Total Class C transactions | (20 | ) | (61 | ) | (137 | ) | (185 | ) | (1 | ) | (21 | ) | ||||||||||||||||
Class R: | ||||||||||||||||||||||||||||
Shares issued | 31 | 4 | 25 | 11 | 39 | 113 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | 1 | — | 1 | — | 5 | 2 | ||||||||||||||||||||||
Shares redeemed | (12 | ) | (1 | ) | (24 | ) | — | (16 | ) | (28 | ) | |||||||||||||||||
Total Class R transactions | 20 | 3 | 2 | 11 | 28 | 87 | ||||||||||||||||||||||
Class Y: | ||||||||||||||||||||||||||||
Shares issued | 26,213 | 41,764 | 4,262 | 6,767 | 11,776 | 13,147 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | 1,781 | 2,017 | 202 | 205 | 300 | 344 | ||||||||||||||||||||||
Shares redeemed | (34,706 | ) | (58,789 | ) | (5,096 | ) | (5,012 | ) | (13,737 | ) | (17,813 | ) | ||||||||||||||||
Total Class Y transactions | (6,712 | ) | (15,008 | ) | (632 | ) | 1,960 | (1,661 | ) | (4,322 | ) | |||||||||||||||||
Net increase (decrease) in capital shares | (7,711 | ) | (18,538 | ) | (1,050 | ) | 1,439 | (1,599 | ) | (4,496 | ) | |||||||||||||||||
Intermediate Government | Intermediate Term | Short Term | |||||||||||||||||||||||||
Bond Fund | Bond Fund | Bond Fund | |||||||||||||||||||||||||
Year | Year | Year | Year | Year | Year | ||||||||||||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | ||||||||||||||||||||||
6/30/08 | 6/30/07 | 6/30/08 | 6/30/07 | 6/30/08 | 6/30/07 | ||||||||||||||||||||||
Class A: | |||||||||||||||||||||||||||
Shares issued | 713 | 30 | 421 | 314 | 202 | 116 | |||||||||||||||||||||
Shares issued in lieu of cash distributions | 17 | 7 | 101 | 124 | 209 | 208 | |||||||||||||||||||||
Shares redeemed | (159 | ) | (46 | ) | (808 | ) | (1,244 | ) | (1,088 | ) | (1,600 | ) | |||||||||||||||
Total Class A transactions | 571 | (9 | ) | (286 | ) | (806 | ) | (677 | ) | (1,276 | ) | ||||||||||||||||
Class Y: | |||||||||||||||||||||||||||
Shares issued | 5,221 | 1,404 | 18,514 | 14,893 | 2,014 | 7,464 | |||||||||||||||||||||
Shares issued in lieu of cash distributions | 130 | 77 | 1,058 | 1,310 | 2,093 | 518 | |||||||||||||||||||||
Shares redeemed | (2,484 | ) | (2,121 | ) | (19,495 | ) | (31,763 | ) | (10,889 | ) | (22,815 | ) | |||||||||||||||
Total Class Y transactions | 2,867 | (640 | ) | 77 | (15,560 | ) | (6,782 | ) | (14,833 | ) | |||||||||||||||||
Net increase (decrease) in capital shares | 3,438 | (649 | ) | (209 | ) | (16,366 | ) | (7,459 | ) | (16,109 | ) | ||||||||||||||||
First American Funds 2008 Annual Report 91
Notes toFinancial Statements | June 30, 2008, all dollars and shares are rounded to thousands (000) |
Total Return | U.S. Government | ||||||||||||||||||
Bond Fund | Mortgage Fund | ||||||||||||||||||
Year | Year | Year | Year | ||||||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||||
6/30/08 | 6/30/07 | 6/30/08 | 6/30/07 | ||||||||||||||||
Class A: | |||||||||||||||||||
Shares issued | 655 | 207 | 76 | 166 | |||||||||||||||
Shares issued in lieu of cash distributions | 55 | 53 | 48 | 56 | |||||||||||||||
Shares redeemed | (480 | ) | (492 | ) | (359 | ) | (450 | ) | |||||||||||
Total Class A transactions | 230 | (232 | ) | (235 | ) | (228 | ) | ||||||||||||
Class B: | |||||||||||||||||||
Shares issued | 67 | 21 | 15 | 13 | |||||||||||||||
Shares issued in lieu of cash distributions | 6 | 9 | 14 | 18 | |||||||||||||||
Shares redeemed | (63 | ) | (171 | ) | (141 | ) | (197 | ) | |||||||||||
Total Class B transactions | 10 | (141 | ) | (112 | ) | (166 | ) | ||||||||||||
Class C: | |||||||||||||||||||
Shares issued | 224 | 45 | 14 | 20 | |||||||||||||||
Shares issued in lieu of cash distributions | 8 | 4 | 8 | 12 | |||||||||||||||
Shares redeemed | (42 | ) | (121 | ) | (100 | ) | (235 | ) | |||||||||||
Total Class C transactions | 190 | (72 | ) | (78 | ) | (203 | ) | ||||||||||||
Class R: | |||||||||||||||||||
Shares issued | 19 | 23 | 164 | 19 | |||||||||||||||
Shares issued in lieu of cash distributions | 1 | 1 | 3 | — | |||||||||||||||
Shares redeemed | (13 | ) | (3 | ) | (30 | ) | — | ||||||||||||
Total Class R transactions | 7 | 21 | 137 | 19 | |||||||||||||||
Class Y: | |||||||||||||||||||
Shares issued | 43,763 | 65,447 | 2,582 | 3,047 | |||||||||||||||
Shares issued in lieu of cash distributions | 1,695 | 759 | 126 | 120 | |||||||||||||||
Shares redeemed | (24,057 | ) | (17,953 | ) | (3,637 | ) | (3,847 | ) | |||||||||||
Total Class Y transactions | 21,401 | 48,253 | (929 | ) | (680 | ) | |||||||||||||
Net increase (decrease) in capital shares | 21,838 | 47,829 | (1,217 | ) | (1,258 | ) | |||||||||||||
Each fund reserves the right to pay part or all of the proceeds from a redemption request in a proportionate share of readily marketable securities in the fund instead of cash. Class B shares converted to Class A shares (reflected as Class A shares issued and Class B shares redeemed) during the fiscal year ended June 30, 2008 and the fiscal year ended June 30, 2007, were as follows:
Year | Year | |||||||
Ended | Ended | |||||||
Fund | 6/30/08 | 6/30/07 | ||||||
Core Bond Fund | 66 | 244 | ||||||
High Income Bond Fund | 8 | 23 | ||||||
Total Return Bond Fund | 7 | 78 | ||||||
U.S. Government Mortgage Fund | 7 | 41 | ||||||
5 > | Investment Security Transactions |
During the fiscal year ended June 30, 2008, purchases of securities and proceeds from sales of securities, other than temporary investments in short-term securities, were as follows:
U.S. Government | Other Investment | |||||||||||||||
Securities | Securities | |||||||||||||||
Fund | Purchases | Sales | Purchases | Sales | ||||||||||||
Core Bond Fund | $ | 1,393,816 | $ | 1,787,267 | $ | 829,919 | $ | 394,407 | ||||||||
High Income Bond Fund | — | — | 244,797 | 249,294 | ||||||||||||
Inflation Protected Securities Fund | 157,441 | 179,806 | 26,442 | 21,188 | ||||||||||||
Intermediate Government Bond Fund | 96,206 | 65,320 | — | — | ||||||||||||
Intermediate Term Bond Fund | 364,312 | 588,553 | 438,688 | 204,530 | ||||||||||||
Short Term Bond Fund | 57,305 | 140,853 | 126,712 | 118,177 | ||||||||||||
Total Return Bond Fund | 868,820 | 1,010,002 | 601,915 | 208,426 | ||||||||||||
U.S. Government Mortgage Fund | 552,435 | 572,828 | 33,923 | 27,487 | ||||||||||||
The aggregate gross unrealized appreciation and depreciation of securities held by the funds and the total cost of securities (including cost of securities purchased with proceeds from securities lending) for federal income tax purposes at June 30, 2008, were as follows:
Aggregate | Aggregate | Federal | ||||||||||||||
Gross | Gross | Income | ||||||||||||||
Fund | Appreciation | Depreciation | Net | Tax Cost | ||||||||||||
Core Bond Fund | $ | 7,103 | $ | (62,999 | ) | $ | (55,896 | ) | $ | 1,886,302 | ||||||
High Income Bond Fund | 1,611 | (21,141 | ) | (19,530 | ) | 285,173 | ||||||||||
Inflation Protected Securities Fund | 5,604 | (3,007 | ) | 2,597 | 416,884 | |||||||||||
Intermediate Government Bond Fund | 663 | (847 | ) | (184 | ) | 70,388 | ||||||||||
Intermediate Term Bond Fund | 1,788 | (22,973 | ) | (21,185 | ) | 902,653 | ||||||||||
Short Term Bond Fund | 1,248 | (7,782 | ) | (6,534 | ) | 340,274 | ||||||||||
Total Return Bond Fund | 4,659 | (44,859 | ) | (40,200 | ) | 1,267,037 | ||||||||||
U.S. Government Mortgage Fund | 432 | (4,874 | ) | (4,442 | ) | 191,964 | ||||||||||
6 > | Options Written |
Transactions in options written for the fiscal year ended June 30, 2008, were as follows:
Put Options Written | Call Options Written | |||||||||||||||
Number of | Premium | Number of | Premium | |||||||||||||
Core Bond Fund | Contracts | Amount | Contracts | Amount | ||||||||||||
Balance at June 30, 2007 | — | $ | — | 423 | $ | 119 | ||||||||||
Opened | 938 | 584 | 480 | 265 | ||||||||||||
Expired | (239 | ) | (92 | ) | (160 | ) | (89 | ) | ||||||||
Closed | (699 | ) | (492 | ) | (743 | ) | (295 | ) | ||||||||
Balance at June 30, 2008 | — | — | — | — | ||||||||||||
92 First American Funds 2008 Annual Report
Put Options Written | Call Options Written | |||||||||||||||
Inflation Protected | Number of | Premium | Number of | Premium | ||||||||||||
Securities Fund | Contracts | Amount | Contracts | Amount | ||||||||||||
Balance at June 30, 2007 | — | $ | — | 75 | $ | 21 | ||||||||||
Opened | 152 | 96 | 77 | 43 | ||||||||||||
Expired | (38 | ) | (15 | ) | (26 | ) | (15 | ) | ||||||||
Closed | (114 | ) | (81 | ) | (126 | ) | (49 | ) | ||||||||
Balance at June 30, 2008 | — | $ | — | — | $ | — | ||||||||||
Put Options Written | Call Options Written | |||||||||||||||
Intermediate Term | Number of | Premium | Number of | Premium | ||||||||||||
Bond Fund | Contracts | Amount | Contracts | Amount | ||||||||||||
Balance at June 30, 2007 | — | $ | — | 204 | $ | 57 | ||||||||||
Opened | 448 | 284 | 225 | 124 | ||||||||||||
Expired | (107 | ) | (42 | ) | (74 | ) | (40 | ) | ||||||||
Closed | (341 | ) | (242 | ) | (355 | ) | (141 | ) | ||||||||
Balance at June 30, 2008 | — | $ | — | — | $ | — | ||||||||||
Put Options Written | Call Options Written | |||||||||||||||
Number of | Premium | Number of | Premium | |||||||||||||
Total Return Bond Fund | Contracts | Amount | Contracts | Amount | ||||||||||||
Balance at June 30, 2007 | — | $ | — | 197 | $ | 55 | ||||||||||
Opened | 4,318 | 2,288 | 3,711 | 1,636 | ||||||||||||
Expired | (1,557 | ) | (674 | ) | (1,898 | ) | (830 | ) | ||||||||
Closed | (2,224 | ) | (1,230 | ) | (1,115 | ) | (391 | ) | ||||||||
Balance at June 30, 2008 | 537 | $ | 384 | 895 | $ | 470 | ||||||||||
7 > | Concentration of Risks |
Core Bond Fund, High Income Bond Fund, Inflation Protected Securities Fund, Intermediate Term Bond Fund, Short Term Bond Fund, and Total Return Bond Fund invest in lower-rated (e.g., rated Ba or lower by Moody’s or BB or lower by Standard & Poor’s or Fitch) corporate and foreign debt obligations, which are commonly referred to as “junk bonds.” Lower-rated securities will usually offer higher yields than higher-rated securities. However, there is more risk associated with these investments. These lower-rated bonds may be more susceptible to real or perceived adverse economic conditions than investment grade bonds. Lower-rated securities tend to have more price volatility and carry more risk to principal than higher-rated securities.
8 > | Indemnifications |
The funds enter into contracts that contain a variety of indemnifications. The funds’ maximum exposure under these arrangements is unknown. However, the funds have not had prior claims or losses pursuant to these contracts and expect the risk of loss to be remote.
9 > | New Accounting Pronouncements |
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 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 June, 30, 2008, the funds do not believe the adoption of FAS 157 will materially 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.
In March 2008, the FASB issued Statement on Financial Accounting Standards No. 161, “Disclosures about Derivative Instruments and Hedging Activities – an amendment of FABS Statement No. 133” (“FAS 161”). FAS 161 requires enhanced disclosures about funds’ derivative and hedging activities. Funds are required to provide enhanced disclosures about (a) how and why the fund uses derivative instruments, (b) how derivative instruments are accounted for under FAS 133 and its related interpretations, and (c) how derivative instruments affect the fund’s financial position and financial performance. FAS 161 is effective for financial statements issued for fiscal years beginning after November 15, 2008 and interim periods within those fiscal years. The funds do not expect FAS 161 to have a material impact on their financial statements; however, additional disclosures will be required.
First American Funds 2008 Annual Report 93
Notice toShareholders | June 30, 2008 (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 2009 on Form 1099-DIV. Please consult your tax advisor for proper treatment of this information.
For the fiscal year ended June 30, 2008, each fund hereby designates long-term capital gains, ordinary income, and return of capital with regard to distributions paid during the period as follows:
Long Term | Ordinary | |||||||||||||||||||||
Capital Gains | Income | Return of | Total | |||||||||||||||||||
Distributions | Distributions | Capital | Distributions | |||||||||||||||||||
Fund | (Tax Basis) (a) | (Tax Basis) (a) | (Tax Basis) (a) | (Tax Basis) (b) | ||||||||||||||||||
Core Bond Fund | 0 | % | 100 | % | 0 | % | 100 | % | ||||||||||||||
High Income Bond Fund | 0 | 100 | 0 | 100 | ||||||||||||||||||
Inflation Protected Securities Fund | 0 | 100 | 0 | 100 | ||||||||||||||||||
Intermediate Government Bond Fund | 0 | 100 | 0 | 100 | ||||||||||||||||||
Intermediate Term Bond Fund | 0 | 100 | 0 | 100 | ||||||||||||||||||
Short Term Bond Fund | 0 | 100 | 0 | 100 | ||||||||||||||||||
Total Return Bond Fund | 0 | 100 | 0 | 100 | ||||||||||||||||||
U.S. Government Mortgage Fund | 0 | 100 | 0 | 100 | ||||||||||||||||||
(a) | Based on a percentage of the fund’s total distributions. | |
(b) | Except as noted below, none of the distributions made by these funds are eligible for the dividends received deduction or are characterized as qualified dividend income. |
Shareholder Notification of Federal Tax Status:
The percentage of dividends declared during the fiscal year ended June 30, 2008, that are designated as dividends qualifying for the dividends received deduction available to corporate shareholders were as follows:
Core Bond Fund | 0.30 | % | ||||
High Income Bond Fund | 5.65 | |||||
Inflation Protected Securities Fund | 0.14 | |||||
Intermediate Term Bond Fund | 0.30 | |||||
Total Return Bond Fund | 0.38 | |||||
The percentage of dividends declared from net investment income during the fiscal year ended June 30, 2008, as qualified income available to individual shareholders under the Jobs and Growth Tax Relief Reconciliation Act of 2003 were as follows:
Core Bond Fund | 0.26 | % | ||||
High Income Bond Fund | 6.49 | |||||
Inflation Protected Securities Fund | 1.15 | |||||
Intermediate Term Bond Fund | 0.29 | |||||
Total Return Bond Fund | 1.23 | |||||
Additional Information Applicable to Foreign Shareholders Only:
The percentage of taxable ordinary income distributions that are designated as interest-related dividends under Internal Revenue Code Section 871(k)(1)(C) for each fund were as follows:
Core Bond Fund | 99.80 | % | ||||
High Income Bond Fund | 91.71 | |||||
Inflation Protected Securities Fund | 97.71 | |||||
Intermediate Government Bond Fund | 100.00 | |||||
Intermediate Term Bond Fund | 99.92 | |||||
Short Term Bond Fund | 100.00 | |||||
Total Return Bond Fund | 81.00 | |||||
U.S. Government Mortgage Fund | 100.00 | |||||
94 First American Funds 2008 Annual Report
The percentage of taxable ordinary income distributions that are designated as short-term capital gain distributions under Internal Revenue Code Section 871(k)(2)(C) for each fund were as follows:
Core Bond Fund | 0 | % | ||||
High Income Bond Fund | 0 | |||||
Inflation Protected Securities Fund | 0 | |||||
Intermediate Government Bond Fund | 0 | |||||
Intermediate Term Bond Fund | 0 | |||||
Short Term Bond Fund | 0 | |||||
Total Return Bond Fund | 0 | |||||
U.S. Government Mortgage Fund | 0 | |||||
HOW TO OBTAIN A COPY OF THE FUNDS’ PROXY VOTING POLICIES AND PROXY VOTING RECORD
A description of the policies and procedures that the funds use to determine how to vote proxies relating to portfolio securities, as well as information regarding how the funds voted proxies relating to portfolio securities, is available at www.firstamericanfunds.com and on the U.S. Securities and Exchange Commission’s website at www.sec.gov. A description of the funds’ policies and procedures is also available without charge, upon request, by calling 800.677.FUND.
FORM N-Q HOLDINGS INFORMATION
Each fund is required to file its complete schedule of portfolio holdings for the first and third quarters of each fiscal year with the Securities and Exchange Commission on Form N-Q. The funds’ Forms N-Q are available (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.
APPROVAL OF THE FUNDS’ INVESTMENT ADVISORY AGREEMENT
The Board of Directors of the Funds (the “Board”), which is comprised entirely of independent directors, oversees the management of each Fund and, as required by law, determines annually whether to renew the Funds’ advisory agreement with FAF Advisors, Inc. (“FAF Advisors”).
At a meeting on May 5-7, 2008, 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 17-19, 2008, the Board concluded its consideration of and approved the Agreement through June 30, 2009.
Although the Agreement, which is with First American Investment Funds, Inc., relates to all of the Funds, the Board separately considered and approved the Agreement with respect to each Fund. In considering the Agreement, the Board, advised by independent legal counsel, reviewed and analyzed the factors it deemed relevant, including: (1) the nature, quality and extent of FAF Advisors’ services to each Fund, (2) the investment performance of the Funds, (3) the profitability of FAF Advisors related to the Funds, including an analysis of FAF Advisors’ cost of providing services and comparative expense information, (4) whether economies of scale may be realized as the Funds grow and whether fee levels are adjusted to enable Fund investors to share in these potential economies of scale, and (5) other benefits that accrue to FAF Advisors through its relationship with the Funds. In its deliberations, the Board did not identify any single factor which alone was responsible for the Board’s decision to approve the Agreement with respect to any Fund.
Before approving the Agreement, the independent directors met in executive session with their independent counsel on numerous occasions to consider the materials provided by FAF Advisors and the terms of the Agreement. Based on its
First American Funds 2008 Annual Report 95
Notice toShareholders June 30, 2008 (unaudited)
evaluation of those materials, the Board concluded that the Agreement is fair and in the best interests of the shareholders of each Fund. In reaching its conclusions, the Board considered the following:
Nature, Quality, and Extent of Investment Advisory Services
The Board examined the nature, quality and extent of the services provided by FAF Advisors to each Fund. The Board reviewed FAF Advisors’ key personnel who provide investment management services to each Fund as well as the fact that, under the Agreement, FAF Advisors has the authority and responsibility to make and execute investment decisions for each Fund within the framework of that Fund’s investment policies and restrictions, subject to review by the Board. The Board further considered that FAF Advisors’ duties with respect to each Fund include: (i) investment research and security selection, (ii) adherence to (and monitoring compliance with) the Fund’s investment policies and restrictions and the Investment Company Act of 1940, and (iii) monitoring the performance of the various organizations providing services to the Funds, including the Funds’ distributor, sub-administrator, transfer agent and custodian. Finally, the Board considered FAF Advisors’ representation that the services provided by FAF Advisors under the Agreement are the types of services customarily provided by investment advisors in the fund industry. The Board also considered compliance reports about FAF Advisors from the Funds’ Chief Compliance Officer.
Based on the foregoing, the Board concluded that each Fund is likely to benefit from the nature, quality and extent of the services provided by FAF Advisors under the Agreement.
Investment Performance of the Funds
The Board considered the performance of each Fund, including comparative information provided by an independent data service regarding the median performance of a group of comparable funds selected by that data service (the “performance universe”) and how each Fund performed versus its benchmark index. The performance periods reviewed by the Board all ended on January 31, 2008.
The Board also considered that, in reviewing the comparative performance of the Funds, the different expense levels of a Fund’s share classes can result in different net performance results for each of those classes. Thus, while the Board considered the performance of all classes, it focused on Class Y shares, which, because they have the lowest total expense ratios, offered the most meaningful data on performance. For this reason, the discussion below related to the performance of Class Y Shares.
Core Bond Fund. The Board considered that the Fund outperformed its performance universe median for the one-, three-, five- and ten-year periods, though it underperformed the benchmark index for all periods. The Board concluded that, in light of the Fund’s competitive performance vis-à-vis its performance universe, it would be in the interest of the Fund and its shareholders to renew the Agreement.
High Income Bond Fund. The Board considered that the Fund outperformed its performance universe median for the one-, three- and five-year periods. The Board also noted that the Fund outperformed or performed competitively against its benchmark index for the one- and three-year periods, though it underperformed the benchmark index for the five-year period. The Board concluded that, in light of the Fund’s competitive performance vis-à-vis its performance universe, it would be in the interest of the Fund and its shareholders to renew the Agreement.
Inflation Protected Securities Fund. The Board considered that the Fund underperformed its performance universe median and its benchmark index for all periods. The Board considered FAF Advisor’s assertion that much of the Fund’s underperformance was attributed to the Fund’s allocation to non-Treasury securities, since these securities performed very poorly in the last half of 2007. The Board also noted FAF Advisor’s belief that, as risk premiums for these types of securities have increased, they have become much more attractive. The Board considered that the Fund’s performance has improved over the six-month period ended April 30, 2008, in large part due to the Fund’s allocation to non-Treasury securities. The Board concluded that, in light of the Fund’s improved performance it would be in the interest of the Fund and its shareholders to renew the Agreement.
Intermediate Government Bond Fund. The Board considered that the Fund outperformed or performed competitively against its performance universe median for the one-, three- and five-year periods. Though the Fund underperformed its benchmark index for those periods, the Board considered that the Fund is a unique offering in the First American family of funds. The Board noted that, while the Fund’s goal of providing investors with current income that is exempt from state income tax presumably meets the needs of investors who have purchased shares of the Fund, it results in an investment strategy that does not lend itself well to comparisons. For example, the Fund can invest only in U.S. Treasury securities and certain state tax-exempt agency securities, whereas most of the funds in the peer universe also can invest in other agency obligations, including mortgage-backed securities. The Board concluded that the Fund’s performance has been acceptable in
96 First American Funds 2008 Annual Report
light of the Fund’s competitive performance vis-à-vis its performance universe and its unique investment mandate, and that it would be in the interest of the Fund and its shareholders to renew the Agreement.
Intermediate Term Bond Fund. The Board considered that the Fund outperformed its performance universe median for the one-, three-, five- and ten-year periods though it underperformed its benchmark index for those periods. The Board concluded that, in light of the Fund’s competitive performance compared to that of its performance universe, it would be in the interest of the Fund and its shareholders to renew the Agreement.
Short Term Bond Fund. The Board considered that the Fund outperformed its performance universe median for the one-, three-, five- and ten-year periods though it underperformed its benchmark index for those periods. The Board concluded that, in light of the Fund’s competitive performance compared to that of its performance universe, it would be in the interest of the Fund and its shareholders to renew the Agreement.
Total Return Bond Fund. The Board considered that the Fund outperformed its performance universe median for the one-, three- and five-year periods. The Board also considered that the Fund outperformed its benchmark index for the five-year period, though it underperformed its benchmark index for the one- and three-year periods. In light of the Fund’s competitive performance compared to that of its performance universe, the Board concluded that it would be in the interest of the Fund and its shareholders to renew the Agreement.
U.S. Government Mortgage Fund. The Board considered that the Fund outperformed or performed competitively versus its performance universe median for the three-, five- and ten-year periods, though it underperformed its performance universe median for the one-year period and underperformed its benchmark index for all periods. The Board also noted that, during the six-month period ended April 30, 2008, the Fund’s performance improved due to recovery in the prime non-agency and commercial mortgage sectors, where the Fund maintains large allocations. In light of the Fund’s competitive performance against its performance universe, and in light of the more recent improvement in the Fund’s performance, the Board concluded that it would be in the interest of the Fund and its shareholders to renew the Agreement.
Costs of Services and Profits Realized by FAF Advisors
The Board examined FAF Advisors’ costs in serving as the Funds’ investment manager, including the costs associated with the personnel and systems necessary to manage each Fund. The Board also considered the profitability of FAF Advisors and its affiliates resulting from their relationship with each Fund. For each Fund, the Board examined fee and expense information as compared to that of other funds and accounts managed by FAF Advisors and of comparable funds managed by other 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 total expense ratio after waivers compared to the median total expense ratio of comparable funds. In connection with its review of Fund fees and expenses, the Board considered FAF Advisors’ pricing philosophy. FAF Advisors attempts generally to maintain each Fund’s total operating expenses at a level that approximates the median of a peer group of funds selected by an independent data service. In addition, FAF Advisors has committed to waive its investment advisory fees to the extent necessary to maintain the Funds’ total expense ratios at levels generally in line with their respective peer groups.
Further detail considered by the Board regarding the advisory fees and total expense ratios of each Fund is set forth below:
Core Bond Fund, High Income Bond Fund, Inflation Protected Securities Fund, Intermediate Government Bond Fund, Short Term Bond Fund and U.S. Government Mortgage Fund. The Board considered that each Fund’s advisory fee and total expense ratio, after waivers, were lower than the peer group medians. The Board concluded that each Fund’s advisory fee and total expense ratio are reasonable in light of the services provided.
Intermediate Term Bond Fund. The Board considered that, although the Fund’s advisory fee, after waivers, was higher than the peer group median, the Fund’s total expense ratio, after waivers, was lower than the peer group median. The Board concluded that the Fund’s advisory fee and total expense ratio are reasonable in light of the services provided.
Total Return Bond Fund. The Board considered that the Fund’s advisory fee, after waivers, was lower than the peer group median and that the total expense ratio, after waivers, was slightly higher than the peer group median, though consistent with FAF Advisors’ pricing philosophy. The Board concluded that the Fund’s advisory fee and total expense ratio are reasonable in light of the services provided.
First American Funds 2008 Annual Report 97
Notice toShareholders June 30, 2008 (unaudited)
Economies of Scale in Providing Investment Advisory Services
The Board considered whether each Fund’s investment advisory fee reflects the potential for economies of scale for the benefit of Fund shareholders. Based on information provided by FAF Advisors, the Board noted that profitability will likely increase somewhat as assets grow over time. The Board considered that, although the Funds do not have advisory fee breakpoints in place, FAF Advisors has committed to waive advisory fees to the extent necessary to keep each Fund’s total expenses generally in line with the median total expenses of a peer group of funds as selected by an independent data service. The Board considered FAF Advisors’ assertion that the median total expense ratio of a Fund’s peer group should reflect the effect of any breakpoints in the advisory fee schedules of the funds in that group and any economies of scale which those funds realize. Therefore, by capping a Fund’s total expense ratio at a level close to the median, Fund shareholders will effectively receive the benefit of any breakpoints in the comparable funds’ advisory fee schedules and any such economies of scale. In light of FAF Advisors’ commitment to keep total Fund expenses competitive, the Board concluded that it would be reasonable and in the best interest of each Fund and its shareholders to renew the Agreement.
Other Benefits to FAF Advisors
In evaluating the benefits that accrue to FAF Advisors through its relationship with the Funds, the Board noted that FAF Advisors and certain of its affiliates serve the Funds in various capacities, including as advisor, administrator, sub-administrator, transfer agent, distributor, custodian and securities lending agent, and receive compensation from the Funds in connection with providing services to the Fund. The Board considered that each service provided to the Funds by FAF Advisors or one of its affiliates is pursuant to a written agreement, which the Board evaluates periodically as required by law.
After full consideration of these factors, the Board concluded that approval of each Agreement was in the interest of the respective Fund and its shareholders.
98 First American Funds 2008 Annual Report
Directors and Officers of the Funds
Independent Directors | ||||||||||
Other | ||||||||||
Position(s) | Term of Office | Number of Portfolios | Directorships | |||||||
Name, Address, and | Held | and Length of | Principal Occupation(s) | in Fund Complex | Held by | |||||
Year of Birth | with Funds | Time Served | During Past 5 Years | Overseen by Director | Director † | |||||
Benjamin R. Field III P.O. Box 1329 Minneapolis, MN 55440-1329 (1938) | Director | Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since September 2003 | Retired; 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, Excensustm, LLC, a strategic demographic planning and application development firm since 2001 | First American Funds Complex: twelve registered investment companies, including sixty-two portfolios | None | |||||
Virginia L. Stringer P.O. Box 1329 Minneapolis, MN 55440-1329 (1944) | Chair; Director | Chair Term three years. Directors Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Chair of FAIF’s Board since September 1997; Director of FAIF since September 1987 | Governance consultant and non-profit board member; former Owner and President, Strategic Management Resources, Inc., a management consulting firm; Executive Consultant to State Farm Insurance Company through 2003 | First American Funds Complex: twelve registered investment companies, including sixty-two portfolios | None | |||||
First American Funds 2008 Annual Report 99
Notice toShareholders June 30, 2008 (unaudited)
Independent Directors – concluded | ||||||||||
Other | ||||||||||
Position(s) | Term of Office | Number of Portfolios | Directorships | |||||||
Name, Address, and | Held | and Length of | Principal Occupation(s) | in Fund Complex | Held by | |||||
Year of Birth | with Funds | Time Served | During Past 5 Years | Overseen by Director | Director † | |||||
James M. Wade P.O. Box 1329 Minneapolis, MN 55440-1329 (1943) | Director | Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since August 2001 | Owner and President, Jim Wade Homes, a homebuilding company | First American Funds Complex: twelve registered investment companies, including 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.
100 First American Funds 2008 Annual Report
Officers | ||||||
Position(s) | Term of Office | |||||
Name, Address, and | Held | and Length of | ||||
Year of Birth | with Funds | Time Served | Principal Occupation(s) During Past 5 Years | |||
Thomas S. Schreier, Jr. FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1962)* | President | Re-elected by the Board annually; President of FAIF since February 2001 | Chief Executive Officer 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. | |||
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 | |||
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. | |||
* | Messrs. Schreier, Wilson, Gariboldi, Lui, Mitchell, 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 2008 Annual Report 101
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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.
independent directors.
![(FIRST AMERICAN FUNDS LOGO)](https://capedge.com/proxy/N-CSR/0000950137-08-011507/c34172faflogo.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 year ended June 30, 2008. 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.
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.
0182-08 8/2008 AR-INCOME
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Income from tax-exempt funds may be subject to state and local taxes and a portion of income may be subject to federal income tax, including the alternative minimum tax. Capital gains distributions, if any, will be subject to tax.
Mutual fund investing involves risk; principal loss is possible.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
Message to Shareholders August 11, 2008
Dear Shareholders:
We invite you to take a few minutes to review the results of the fiscal year ended June 30, 2008.
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,
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Virginia L. Stringer Chairperson of the Board First American Investment Funds, Inc. | Thomas S. Schreier, Jr. President First American Investment Funds, Inc. |
First American Funds 2008 Annual Report 1
Explanation of Financial Statements
As a shareholder in First American Funds, you receive shareholder reports semiannually. We strive to present this financial information in an easy-to-understand format; however, for many investors, the information contained in this shareholder report may seem very technical. So, we would like to take this opportunity to explain several sections of the shareholder report.
The Schedule of Investments details all of the securities held in the fund and their related dollar values on the last day of the reporting period. Securities are usually presented by type (common stock, bonds, etc.) and by industry classification (banking, communications, etc.). This information is useful for analyzing how your fund’s assets are invested and seeing where your portfolio manager believes the best opportunities exist to meet your objectives. Holdings are subject to change without notice and do not constitute a recommendation of any individual security. The Notes to the Financial Statements provide additional details on how the securities are valued.
The Statement of Assets and Liabilities lists the assets and liabilities of the fund and presents the fund’s net asset value (“NAV”) per share on the last day of the reporting period. The NAV is calculated by dividing the fund’s net assets (assets minus liabilities) by the number of shares outstanding. The investments in securities, as presented in the Schedule of Investments, comprise substantially all of the fund’s assets. Other assets include cash and receivables for items such as income earned by the fund but not yet received. Liabilities include payables for items such as fund expenses incurred but not yet paid.
The Statement of Operations details the dividends and interest income earned from securities as well as the expenses incurred by the fund during the reporting period. Fund expenses may be reduced through fee waivers or reimbursements. This statement reflects total expenses before any waivers or reimbursements, the amount of waivers and reimbursements (if any), and the net expenses. This statement also shows the net realized and unrealized gains and losses from investments owned during the period. The Notes to Financial Statements provide additional details on investment income and expenses of the fund.
The Statement of Changes in Net Assets describes how the fund’s net assets were affected by its operating results, distributions to shareholders, and shareholder transactions during the reporting period. This statement is important to investors because it shows exactly what caused the fund’s net asset size to change during the period.
The Financial Highlights provide a per-share breakdown of the components that affected the fund’s NAV for the current and past reporting periods. It also shows total return, expense ratios, net investment income ratios, and portfolio turnover rates. The net investment income ratios summarize the income earned less expenses, divided by the average net assets. The expense ratios represent the percentages of average net assets that were used to cover operating expenses during the period. Expense ratios can vary across funds for a number of reasons, including differences in advisory fees and the average shareholder account size. The portfolio turnover rate represents the percentage of the fund’s holdings that have changed over the course of the period, and gives an idea of how long the fund holds onto a particular security. A 100% turnover rate implies that an amount equal to the value of the entire portfolio is turned over in a year through the purchase and sale of securities.
The Notes to Financial Statements disclose the organizational background of the fund, its significant accounting policies, federal tax information, fees and compensation paid to affiliates, and significant risks and contingencies.
We hope this guide to your shareholder report will help you get the most out of this important resource. You can visit First American Funds’ website for other useful information on each of our funds, including fund prices, performance, fund manager bios, dividends, and downloadable fact sheets. For more information, call First American Investor Services at 800.677.FUND or visit firstamericanfunds.com.
2 First American Funds 2008 Annual Report
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Arizona Tax Free Fund
Investment Objective: providing maximum current income that is exempt from both federal income tax and Arizona state income tax to the extent consistent with prudent investment risk
How did the fund perform for the fiscal year ended June 30, 2008?
The First American Arizona Tax Free Fund (the “fund”), Class Y shares, returned 1.26% for the fiscal year ended June 30, 2008 (Class A shares returned 1.10%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark, the Lehman Municipal Bond Index*, returned 3.23%. Performance for the fund’s peer group, the Lipper Arizona Municipal Debt Funds Average, was 0.26%.
What were the general municipal market conditions during the fiscal year?
The municipal market endured one of its more tumultuous years ever as fallout from the housing debacle rocked market participants. Deterioration within their relatively new mortgage-backed book of business ultimately led to downgrades for several of the major monoline municipal bond insurers. The impaired credit quality and loss of confidence in many of the insurers affected much of the municipal market (use of insurance had become so pervasive that in recent years close to 50% of all new issuance came to market with an insurance wrap). The market was buffeted by irregular bouts of volatility and selling pressure as a number of accounts unwound positions. For example, tax-exempt money funds were forced to exit insured holdings en masse due to minimum ratings and liquidity requirements. To reduce debt, many municipal market investors were pressured to sell longer-maturity bonds when the floating-rate component of their borrowing programs was no longer money-fund eligible (the municipal market had in recent years developed its own form of “carry” trade, in which investors borrow in the short-term money markets and invest in longer maturities, trying to take advantage of the relative steepness of the municipal yield curve in comparison to other fixed-income markets).
Credit spreads (i.e., the differences in yield between higher- and lower-quality debt) were the first to widen as the market anticipated that lower-quality debt would struggle in a slowing economy. Ultimately, however, the insurer debacle cut an even wider swath through the market. Many insured bonds now trade solely based on the creditworthiness of underlying obligors with little or no value attributed to the insurance wrap. Not surprisingly, in this environment natural standalone (i.e., without an insurance wrap) AAA- and AA-rated bonds were generally the best performers for the year.
The municipal yield curve steepened over the past 12 months as yields on shorter maturities fell while longer maturity yields rose slightly. In terms of total return, intermediate maturities generally produced the best returns and longer-maturity bonds were the weakest-performing part of the curve. Although the overall municipal market started to regain its bearings near the end of the fiscal year, high-grade bonds still finished at yields of more than 90% (and in some cases more than 100%) of comparable-maturity Treasuries, which typically indicates that the high-grade bonds represent good value relative to Treasuries.
How did market conditions and investment strategies affect the fund’s performance?
The fund’s positions in mid to lower-grade securities underperformed for the fiscal year. Reflecting the trends in the broader market, the best-performing bonds in the fund from a quality standpoint were generally the natural high-grades (AAA- or AA-rated bonds) not affected by either the insurer debacle or the general widening of credit spreads in lower-grade bonds. The fund’s performance improved markedly during the first half of 2008, when credit spreads showed some signs of stabilizing as the market’s focus shifted toward the insurer debacle.
What strategic moves were made by the fund and why?
For most of the fiscal year, the duration of the fund remained long relative to its benchmark in order to increase the fund’s sensitivity to interest-rate movements. As in-state lower-rated securities were purchased by the fund, the out-of-state lower-rated holdings were reduced. Given the turmoil throughout the year and the resultant supply pressures, the fund was able to add these lower-rated securities at wider credit spreads – and therefore lower prices – than have been available for a number of years.
*Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects.
Portfolio Allocation as of June 30, 20081 (% of net assets)
Revenue Bonds3 | 77 | .1 | % | ||
General Obligations3 | 15 | .5 | |||
Certificates of Participation3 | 5 | .6 | |||
Short-Term Investment | 0 | .3 | |||
Other Assets and Liabilities, Net4 | 1 | .5 | |||
100 | .0 | % | |||
Bond Credit Quality Distribution as of June 30, 20082 (% of market value)
AAA | 18 | .2% | |||
AA | 19 | .0 | |||
A | 31 | .2 | |||
BBB | 23 | .5 | |||
Non-Rated | 8 | .1 | |||
100 | .0% | ||||
1 | Portfolio allocations are subject to change and are not recommendations to buy or sell any security. |
2 | Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. If there are multiple ratings for a security, the lowest rating is used unless ratings are provided by all three agencies, in which case the middle rating is used. |
3 | These securities may include bonds that are pre-refunded or escrowed to maturity issues; see the fund’s Schedule of Investments. As of June 30, 2008, 20.4% of the fund’s net assets were pre-refunded and escrowed to maturity issues. |
4 | Investments typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
4 First American Funds 2008 Annual Report
Annual Performance1,2 as of June 30, 2008
Since Inception | ||||||||||||
1 year | 5 years | 2/01/2000 | ||||||||||
Average annual return with sales charge (POP) | ||||||||||||
Class A | (3 | .20)% | 2.07 | % | 4.88 | % | ||||||
Class C | (0 | .36)% | 2.53 | % | 5.00 | % | ||||||
Average annual return without sales charge (NAV) | ||||||||||||
Class A | 1 | .10% | 2.96 | % | 5.42 | % | ||||||
Class C | 0 | .61% | 2.53 | % | 5.00 | % | ||||||
Class Y | 1 | .26% | 3.20 | % | 5.68 | % | ||||||
Lehman Municipal Bond Index3 | 3 | .23% | 3.52 | % | 5.71 | % |
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
1 | Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 4.25% for Class A shares and the maximum contingent deferred sales charge (“CDSC”) for Class C shares for the relevant period. Maximum CDSC is 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.
Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities.
As of the most recent prospectus, the fund’s total annual operating expense ratio (including acquired fund fees and expenses) for Class A, Class C, and Class Y shares was 1.65%, 2.13%, and 1.40%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least June 30, 2009 so that total annual fund operating expenses (after waivers and excluding acquired fees and expenses) for Class A, Class C, and Class Y shares do not exceed 0.75%, 1.15%, and 0.50%, respectively. These fee waivers and expense reimbursements may be terminated at any time after June 30, 2009, at the discretion of the advisor. Prior to that time, such waivers and reimbursements may not be terminated without the approval of the fund’s board of directors.
Value of $10,000 Investment1,2,4 as of June 30, 2008
Arizona Tax Free Fund, Class A (NAV) | ![]() | $ | 15,589 | |||||
Arizona Tax Free Fund, Class A (POP) | ![]() | $ | 14,932 | |||||
Lehman Municipal Bond Index3 | ![]() | $ | 15,955 | |||||
The chart at right illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 2/01/2000 to 6/30/2008) as compared to the Lehman Municipal Bond Index3.
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950137-08-011507/c34172c3417102.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
A portion of the fund’s income may be subject to state and/or federal income tax, including the alternative minimum tax. Capital gains distributions, if any, will be subject to tax.
3 | An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities of one year or more. |
4 | Performance for Class C and Class Y shares is not presented. Performance for these classes will vary due to different expense structures. |
First American Funds 2008 Annual Report 5
California Intermediate Tax Free Fund
Investment Objective: providing current income that is exempt from both federal income tax and California state income tax to the extent consistent with preservation of capital
How did the fund perform for the fiscal year ended June 30, 2008?
The First American California Intermediate Tax Free Fund (the “fund”), Class Y shares, returned 3.33% for the fiscal year ended June 30, 2008 (Class A shares returned 3.20%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark, the Lehman 7-Year Municipal Bond Index*, returned 5.60%. Performance for the fund’s peer group, the Lipper California Intermediate Municipal Debt Funds Average, was 2.59%.
What were the general municipal market conditions during the fiscal year?
The municipal market endured one of its more tumultuous years ever as fallout from the housing debacle rocked market participants. Deterioration within their relatively new mortgage-backed book of business ultimately led to downgrades for several of the major monoline municipal bond insurers. The impaired credit quality and loss of confidence in many of the insurers affected much of the municipal market (use of insurance had become so pervasive that in recent years close to 50% of all new issuance came to market with an insurance wrap). The market was buffeted by irregular bouts of volatility and selling pressure as a number of accounts unwound positions. For example, tax-exempt money funds were forced to exit insured holdings en masse due to minimum ratings and liquidity requirements. To reduce debt, many municipal market investors were pressured to sell longer-maturity bonds when the floating-rate component of their borrowing programs was no longer money-fund eligible (the municipal market had in recent years developed its own form of “carry” trade, in which investors borrow in the short-term money markets and invest in longer maturities, trying to take advantage of the relative steepness of the municipal yield curve in comparison to other fixed-income markets).
Credit spreads (i.e., the differences in yield between higher- and lower-quality debt) were the first to widen as the market anticipated that lower-quality debt would struggle in a slowing economy. Ultimately, however, the insurer debacle cut an even wider swath through the market. Many insured bonds now trade solely based on the creditworthiness of underlying obligors with little or no value attributed to the insurance wrap. Not surprisingly, in this environment natural standalone (i.e., without an insurance wrap) AAA- and AA-rated bonds were generally the best performers for the year.
The municipal yield curve steepened over the past 12 months as yields on shorter maturities fell while longer maturity yields rose slightly. In terms of total return, intermediate maturities generally produced the best returns and longer-maturity bonds were the weakest-performing part of the curve. Although the overall municipal market started to regain its bearings near the end of the fiscal year, high-grade bonds still finished at yields of more than 90% (and in some cases more than 100%) of comparable-maturity Treasuries, which typically indicates that the high-grade bonds represent good value relative to Treasuries.
How did market conditions and investment strategies affect the fund’s performance?
Reflecting the trends in the broader market, the fund’s holdings in lower-grade securities underperformed for the fiscal year. The best-performing bonds in the fund were generally the natural high-grades (AAA- and AA-rated bonds), which were not affected by the insurer debacle, and shorter intermediate maturities, which benefited from the flattening yield curve over the course of the year. The fund’s holdings in lower-grade securities were generally short in maturity and somewhat less volatile in nature, and therefore were not a major detriment to performance. Although the fund’s duration (a measure of its sensitivity to interest-rate movements) was somewhat longer than the benchmark’s for most of the fiscal year, the fund posted solid total return numbers relative to its peer group.
What strategic moves were made by the fund and why?
The fund’s duration was slightly longer than the benchmark duration most of the past year, due in part to the relatively steeper slope of the California yield curve. Given the turmoil in the marketplace and the resultant supply pressures, the fund added to weightings in a variety of issuers and sectors (such as healthcare and education) at wider credit spreads – and, therefore, lower prices – than have been available for a number of years. Since we anticipate the shape of the municipal yield curve to flatten over time, we focused many purchases in the 10- to 15-plus-year range and reallocated out of shorter-maturity ranges while keeping duration constant by adjusting the fund’s cash reserves.
*Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects.
Portfolio Allocation as of June 30, 20081 (% of net assets)
Revenue Bonds3 | 69 | .8 | % | ||
General Obligations3 | 19 | .4 | |||
Certificates of Participation3 | 3 | .6 | |||
Short-Term Investment | 6 | .1 | |||
Other Assets and Liabilities, Net4 | 1 | .1 | |||
100 | .0 | % |
Bond Credit Quality Distribution as of June 30, 20082 (% of market value)
AAA | 7 | .0% | |||
AA | 23 | .0 | |||
A | 45 | .0 | |||
BBB | 22 | .9 | |||
BB | 0 | .8 | |||
Non-Rated | 1 | .3 | |||
100 | .0% | ||||
1 | Portfolio allocations are subject to change and are not recommendations to buy or sell any security. |
2 | Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. If there are multiple ratings for a security, the lowest rating is used unless ratings are provided by all three agencies, in which case the middle rating is used. |
3 | These securities may include bonds that are pre-refunded or escrowed to maturity issues; see the fund’s Schedule of Investments. As of June 30, 2008, 7.4% of the fund’s net assets were pre-refunded and escrowed to maturity issues. |
4 | Investments typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
6 First American Funds 2008 Annual Report
Annual Performance1,2 as of June 30, 2008
1 year | 5 years | 10 years | ||||||||||
Average annual return with sales charge (POP) | ||||||||||||
Class A | 0 | .90% | 2.33 | % | 3.93 | % | ||||||
Average annual return without sales charge (NAV) | ||||||||||||
Class A | 3 | .20% | 2.80 | % | 4.17 | % | ||||||
Class Y | 3 | .33% | 2.95 | % | 4.28 | % | ||||||
Lehman 7-Year Municipal Bond Index3 | 5 | .60% | 3.24 | % | 4.80 | % |
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
1 | Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 2.25% for Class A shares. Total returns assume reinvestment of all distributions at NAV.
Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities.
As of the most recent prospectus, the fund’s total annual operating expense ratio for Class A and Class Y shares was 1.25% and 1.00%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least June 30, 2009 so that total annual fund operating expenses for Class A and Class Y shares do not exceed 0.70% and 0.70%, respectively. These fee waivers and expense reimbursements may be terminated at any time after June 30, 2009, at the discretion of the advisor. Prior to that time, such waivers and reimbursements may not be terminated without the approval of the fund’s board of directors.
Value of $10,000 Investment1,2,4 as of June 30, 2008
California Intermediate Tax Free Fund, Class A (NAV) | ![]() | $ | 15,039 | |||
California Intermediate Tax Free Fund, Class A (POP) | ![]() | $ | 14,704 | |||
Lehman 7-Year Municipal Bond Index3 | ![]() | $ | 15,986 | |||
The chart at right illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 6/30/1998 to 6/30/2008) as compared to the Lehman 7-Year Municipal Bond Index3
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950137-08-011507/c34172c3417103.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
A portion of the fund’s income may be subject to state and/or federal income tax, including the alternative minimum tax. Capital gains distributions, if any, will be subject to tax.
3 | An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities between six and eight years. |
4 | Performance for Class Y shares is not presented. Performance for this class will vary due to a different expense structure. |
First American Funds 2008 Annual Report 7
California Tax Free Fund
Investment Objective: providing maximum current income that is exempt from both federal income tax and California state income tax to the extent consistent with prudent investment risk
How did the fund perform for the fiscal year ended June 30, 2008?
The First American California Tax Free Fund (the “fund”), Class Y shares, returned 2.28% for the fiscal year ended June 30, 2008 (Class A shares returned 2.11%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark, the Lehman Municipal Bond Index*, returned 3.23%. Performance for the fund’s peer group, the Lipper California Municipal Debt Funds Average, was -0.54%.
What were the general municipal market conditions during the fiscal year?
The municipal market endured one of its more tumultuous years ever as fallout from the housing debacle rocked market participants. Deterioration within their relatively new mortgage-backed book of business ultimately led to downgrades for several of the major monoline municipal bond insurers. The impaired credit quality and loss of confidence in many of the insurers affected much of the municipal market (use of insurance had become so pervasive that in recent years close to 50% of all new issuance came to market with an insurance wrap). The market was buffeted by irregular bouts of volatility and selling pressure as a number of accounts unwound positions. For example, tax-exempt money funds were forced to exit insured holdings en masse due to minimum ratings and liquidity requirements. To reduce debt, many municipal market investors were pressured to sell longer-maturity bonds when the floating-rate component of their borrowing programs was no longer money-fund eligible (the municipal market had in recent years developed its own form of “carry” trade, in which investors borrow in the short-term money markets and invest in longer maturities, trying to take advantage of the relative steepness of the municipal yield curve in comparison to other fixed-income markets).
Credit spreads (i.e., the differences in yield between higher- and lower-quality debt) were the first to widen as the market anticipated that lower-quality debt would struggle in a slowing economy. Ultimately, however, the insurer debacle cut an even wider swath through the market. Many insured bonds now trade solely based on the creditworthiness of underlying obligors with little or no value attributed to the insurance wrap. Not surprisingly, in this environment natural standalone (i.e., without an insurance wrap) AAA- and AA-rated bonds were generally the best performers for the year.
The municipal yield curve steepened over the past 12 months as yields on shorter maturities fell while longer maturity yields rose slightly. In terms of total return, intermediate maturities generally produced the best returns and longer-maturity bonds were the weakest-performing part of the curve. Although the overall municipal market started to regain its bearings near the end of the fiscal year, high-grade bonds still finished at yields of more than 90% (and in some cases more than 100%) of comparable-maturity Treasuries, which typically indicates that the high-grade bonds represent good value relative to Treasuries.
How did market conditions and investment strategies affect the fund’s performance?
Reflecting the trends in the broader market, the fund’s holdings in lower-grade securities generally had a negative effect on performance. The best-performing bonds in the fund from a quality standpoint were generally the natural high-grades (AAA- and AA-rated bonds) not affected by either the insurer debacle or the general widening in yield in lower-grade bonds. The fund also benefited from not having a high weighting in lower-grade land-based “dirt” bonds (issued to back new construction projects). The fund’s allocations to intermediate-maturity bonds also helped performance due to the flattening yield curve and general underperformance of long-maturity (10 years or more) bonds for the year.
What strategic moves were made by the fund and why?
The fund did slightly increase its duration (i.e., sensitivity to interest-rate movements) over the past few months as yields increased to historically high levels relative to comparable-maturity Treasuries. Since we anticipate the shape of the municipal yield curve to flatten over time, we reduced some of the weighting in intermediate maturities in favor of longer bonds. Given the turmoil throughout the year and the resultant supply pressures, the fund added to weightings in a variety of issuers and sectors (such as healthcare and education) at wider credit spreads – and, therefore, lower prices – than have been available for a number of years.
*Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects.
Portfolio Allocation as of June 30, 20081 (% of net assets)
Revenue Bonds3 | 67 | .6 | % | ||
General Obligations3 | 24 | .3 | |||
Certificates of Participation3 | 4 | .6 | |||
Short-Term Investment | 2 | .6 | |||
Other Assets and Liabilities, Net4 | 0 | .9 | |||
100 | .0 | % |
Bond Credit Quality Distribution as of June 30, 20082 (% of market value)
AAA | 16 | .8% | |||
AA | 21 | .4 | |||
A | 42 | .0 | |||
BBB | 17 | .8 | |||
Non-Rated | 2 | .0 | |||
100 | .0% | ||||
1 | Portfolio allocations are subject to change and are not recommendations to buy or sell any security. |
2 | Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. If there are multiple ratings for a security, the lowest rating is used unless ratings are provided by all three agencies, in which case the middle rating is used. |
3 | These securities may include bonds that are pre-refunded or escrowed to maturity issues; see the fund’s Schedule of Investments. As of June 30, 2008, 12.1% of the fund’s net assets were pre-refunded and escrowed to maturity issues. |
4 | Investments typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
8 First American Funds 2008 Annual Report
Annual Performance1,2 as of June 30, 2008
Since Inception | ||||||||||||
1 year | 5 years | 2/01/2000 | ||||||||||
Average annual return with sales charge (POP) | ||||||||||||
Class A | (2 | .25)% | 2.22 | % | 5.09 | % | ||||||
Class C | 0 | .64% | 2.68 | % | 5.21 | % | ||||||
Average annual return without sales charge (NAV) | ||||||||||||
Class A | 2 | .11% | 3.11 | % | 5.62 | % | ||||||
Class C | 1 | .61% | 2.68 | % | 5.21 | % | ||||||
Class Y | 2 | .28% | 3.35 | % | 5.87 | % | ||||||
Lehman Municipal Bond Index3 | 3 | .23% | 3.52 | % | 5.71 | % | ||||||
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
1 | Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 4.25% for Class A shares and the maximum contingent deferred sales charge (“CDSC”) for Class C shares for the relevant period. Maximum CDSC is 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.
Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities.
As of the most recent prospectus, the fund’s total annual operating expense ratio for Class A, Class C, and Class Y shares was 1.46%, 1.98%, and 1.21%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least June 30, 2009 so that total annual fund operating expenses for Class A, Class C, and Class Y shares do not exceed 0.65%, 1.15%, and 0.50%, respectively. These fee waivers and expense reimbursements may be terminated at any time after June 30, 2009, at the discretion of the advisor. Prior to that time, such waivers and reimbursements may not be terminated without the approval of the fund’s board of directors.
Value of $10,000 Investment1,2,4 as of June 30, 2008
California Tax Free Fund, Class A (NAV) | ![]() | $ | 15,845 | |||||
California Tax Free Fund, Class A (POP) | ![]() | $ | 15,177 | |||||
Lehman Municipal Bond Index3 | ![]() | $ | 15,955 | |||||
The chart at right illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 2/1/2000 to 6/30/2008) as compared to the Lehman Municipal Bond Index3.
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950137-08-011507/c34172c3417104.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
A portion of the fund’s income may be subject to state and/or federal income tax, including the alternative minimum tax. Capital gains distributions, if any, will be subject to tax.
3 | An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities of one year or more. |
4 | Performance for Class C and Class Y shares is not presented. Performance for these classes will vary due to different expense structures. |
First American Funds 2008 Annual Report 9
Colorado Intermediate Tax Free Fund
Investment Objective: providing current income that is exempt from both federal income tax and Colorado state income tax to the extent consistent with preservation of capital
How did the fund perform for the fiscal year ended June 30, 2008?
The First American Colorado Intermediate Tax Free Fund (the “fund”), Class Y shares, returned 3.20% for the fiscal year ended June 30, 2008 (Class A shares returned 3.04%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark, the Lehman 7-Year Municipal Bond Index*, returned 5.60%. Performance for the fund’s peer group, the Lipper Other States Intermediate Municipal Debt Funds Average, was 3.02%.
What were the general municipal market conditions during the fiscal year?
The municipal market endured one of its more tumultuous years ever as fallout from the housing debacle rocked market participants. Deterioration within their relatively new mortgage-backed book of business ultimately led to downgrades for several of the major monoline municipal bond insurers. The impaired credit quality and loss of confidence in many of the insurers affected much of the municipal market (use of insurance had become so pervasive that in recent years close to 50% of all new issuance came to market with an insurance wrap). The market was buffeted by irregular bouts of volatility and selling pressure as a number of accounts unwound positions. For example, tax-exempt money funds were forced to exit insured holdings en masse due to minimum ratings and liquidity requirements. To reduce debt, many municipal market investors were pressured to sell longer-maturity bonds when the floating-rate component of their borrowing programs was no longer money-fund eligible (the municipal market had in recent years developed its own form of “carry” trade, in which investors borrow in the short-term money markets and invest in longer maturities, trying to take advantage of the relative steepness of the municipal yield curve in comparison to other fixed-income markets).
Credit spreads (i.e., the differences in yield between higher- and lower-quality debt) were the first to widen as the market anticipated that lower-quality debt would struggle in a slowing economy. Ultimately, however, the insurer debacle cut an even wider swath through the market. Many insured bonds now trade solely based on the creditworthiness of underlying obligors with little or no value attributed to the insurance wrap. Not surprisingly, in this environment natural standalone (i.e., without an insurance wrap) AAA- and AA-rated bonds were generally the best performers for the year.
The municipal yield curve steepened over the past 12 months as yields on shorter maturities fell while longer maturity yields rose slightly. In terms of total return, intermediate maturities generally produced the best returns and longer-maturity bonds were the weakest-performing part of the curve. Although the overall municipal market started to regain its bearings near the end of the fiscal year, high-grade bonds still finished at yields of more than 90% (and in some cases more than 100%) of comparable-maturity Treasuries, which typically indicates that the high-grade bonds represent good value relative to Treasuries.
How did market conditions and investment strategies affect the fund’s performance?
Reflecting the trends in the broader market, the fund’s holdings in lower-grade securities generally had a negative effect on performance. The best-performing bonds in the fund from a quality standpoint were generally the natural high-grades (AAA- and AA-rated) not affected by either the insurer debacle or the general widening in yield in lower-grade bonds. Although the fund did hold meaningful positions in mid to lower-grade securities, which generally underperformed for the year, the fund’s performance improved over the first half of 2008 as credit spreads – and the performance of lower-rated securities – showed signs of stabilizing while the market focus increasingly shifted toward the insurer crisis. The entire year, while tumultuous, produced many relative value opportunities from both a trading and credit perspective that helped bolster the fund’s performance.
What strategic moves were made by the fund and why?
Since we anticipate the shape of the municipal yield curve to flatten over time, we focused many purchases in the 10- to 15-plus-year range and reallocated out of shorter maturity ranges while keeping duration (i.e., the fund’s sensitivity to interest-rate movements) constant by adjusting the fund’s cash reserves. Given the turmoil throughout the year and the resultant supply pressures, the fund added to weightings in a variety of issuers and revenue bond sectors (comprised of bonds that are backed by the revenue of specific projects) at wider credit spreads – and, therefore, lower prices – than have been available for a number of years. On a security-specific basis, the fund also sold a number of positions where we anticipated credit stress was not fully reflected in realized prices.
*Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects.
Portfolio Allocation as of June 30, 20081 (% of net assets)
Revenue Bonds3 | 76 | .2 | % | ||
General Obligations3 | 19 | .5 | |||
Certificates of Participation3 | 3 | .1 | |||
Short-Term Investment | 1 | .8 | |||
Other Assets and Liabilities, Net4 | (0 | .6 | ) | ||
100 | .0 | % | |||
Bond Credit Quality Distribution as of June 30, 20082 (% of market value)
AAA | 14 | .2 | % | ||
AA | 26 | .6 | |||
A | 28 | .8 | |||
BBB | 20 | .1 | |||
Non-Rated | 10 | .3 | |||
100 | .0 | % | |||
1 | Portfolio allocations are subject to change and are not recommendations to buy or sell any security. |
2 | Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. If there are multiple ratings for a security, the lowest rating is used unless ratings are provided by all three agencies, in which case the middle rating is used. |
3 | These securities may include bonds that are pre-refunded or escrowed to maturity issues; see the fund’s Notes to Schedule of Investments. As of June 30, 2008, 19.0% of the fund’s net assets were pre-refunded and escrowed to maturity issues. |
4 | Investments typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
10 First American Funds 2008 Annual Report
Annual Performance1,2 as of June 30, 2008
1 year | 5 years | 10 years | ||||||||||
Average annual return with sales charge (POP) | ||||||||||||
Class A | 0 | .70% | 2.12 | % | 3.77 | % | ||||||
Average annual return without sales charge (NAV) | ||||||||||||
Class A | 3 | .04% | 2.59 | % | 4.01 | % | ||||||
Class Y | 3 | .20% | 2.73 | % | 4.10 | % | ||||||
Lehman 7-Year Municipal Bond Index3 | 5 | .60% | 3.24 | % | 4.80 | % |
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
1 | Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 2.25% for Class A shares. Total returns assume reinvestment of all distributions at NAV.
Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities.
As of the most recent prospectus, the fund’s total annual operating expense ratio for Class A and Class Y shares was 1.36% and 1.11%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least June 30, 2009 so that total annual fund operating expenses for Class A and Class Y shares do not exceed 0.85% and 0.70%, respectively. These fee waivers and expense reimbursements may be terminated at any time after June 30, 2009, at the discretion of the advisor. Prior to that time, such waivers and reimbursements may not be terminated without the approval of the fund’s board of directors. |
Value of $10,000 Investment1,2,4 as of June 30, 2008
Colorado Intermediate Tax Free Fund, Class A (NAV) | ![]() | $ | 14,811 | |||||
Colorado Intermediate Tax Free Fund, Class A (POP) | ![]() | $ | 14,472 | |||||
Lehman 7-Year Municipal Bond Index3 | ![]() | $ | 15,986 | |||||
The chart at right illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 6/30/1998 to 6/30/2008) as compared to the Lehman 7-Year Municipal Bond Index3.
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950137-08-011507/c34172c3417105.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
A portion of the fund’s income may be subject to state and/or federal income tax, including the alternative minimum tax. Capital gains distributions, if any, will be subject to tax.
3 | An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities between six and eight years. |
4 | Performance for Class Y shares is not presented. Performance for this class will vary due to a different expense structure. |
First American Funds 2008 Annual Report 11
Colorado Tax Free Fund
Investment Objective: providing maximum current income that is exempt from both federal income tax and Colorado state income tax to the extent consistent with prudent investment risk
How did the fund perform for the fiscal year ended June 30, 2008?
The First American Colorado Tax Free Fund (the “fund”), Class Y shares, returned 1.67% for the fiscal year ended June 30, 2008 (Class A shares returned 1.52%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark, the Lehman Municipal Bond Index*, returned 3.23%. Performance for the fund’s peer group, the Lipper Colorado Municipal Debt Funds Average, was 1.12%.
What were the general municipal market conditions during the fiscal year?
The municipal market endured one of its more tumultuous years ever as fallout from the housing debacle rocked market participants. Deterioration within their relatively new mortgage-backed book of business ultimately led to downgrades for several of the major monoline municipal bond insurers. The impaired credit quality and loss of confidence in many of the insurers affected much of the municipal market (use of insurance had become so pervasive that in recent years close to 50% of all new issuance came to market with an insurance wrap). The market was buffeted by irregular bouts of volatility and selling pressure as a number of accounts unwound positions. For example, tax-exempt money funds were forced to exit insured holdings en masse due to minimum ratings and liquidity requirements. To reduce debt, many municipal market investors were pressured to sell longer-maturity bonds when the floating-rate component of their borrowing programs was no longer money-fund eligible (the municipal market had in recent years developed its own form of “carry” trade, in which investors borrow in the short-term money markets and invest in longer maturities, trying to take advantage of the relative steepness of the municipal yield curve in comparison to other fixed-income markets).
Credit spreads (i.e., the differences in yield between higher- and lower-quality debt) were the first to widen as the market anticipated that lower-quality debt would struggle in a slowing economy. Ultimately, however, the insurer debacle cut an even wider swath through the market. Many insured bonds now trade solely based on the creditworthiness of underlying obligors with little or no value attributed to the insurance wrap. Not surprisingly, in this environment natural standalone (i.e., without an insurance wrap) AAA- and AA-rated bonds were generally the best performers for the year.
The municipal yield curve steepened over the past 12 months as yields on shorter maturities fell while longer maturity yields rose slightly. In terms of total return, intermediate maturities generally produced the best returns and longer-maturity bonds were the weakest-performing part of the curve. Although the overall municipal market started to regain its bearings near the end of the fiscal year, high-grade bonds still finished at yields of more than 90% (and in some cases more than 100%) of comparable-maturity Treasuries, which typically indicates that the high-grade bonds represent good value relative to Treasuries.
How did market conditions and investment strategies affect the fund’s performance?
Reflecting the trends in the broader market, the fund’s positions in mid to lower-grade securities underperformed for the 12-month period. The best-performing bonds in the fund from a quality standpoint were generally the natural high-grades (AAA and AA-rated bonds) not affected by either the insurer debacle or the general widening of credit spreads in lower-grade bonds. The fund’s relative performance improved markedly over the first half of 2008, when credit spreads – and the performance of lower-rated securities – showed signs of stabilizing as the market’s focus shifted toward the insurer debacle. The entire year, while tumultuous, produced many relative value opportunities from both a trading and credit perspective that helped bolster the fund’s performance.
What strategic moves were made by the fund and why?
The fund did slightly increase its duration over the past few months as yields increased to historically high levels relative to comparable-maturity Treasuries. Given the high level of turmoil throughout the year and the resultant supply pressures, the fund added to weightings in a variety of issuers and revenue bond sectors (comprised of bonds that are backed by the revenue of specific projects) at wider credit spreads – and therefore lower prices – than have been available for a number of years. On a security-specific basis, the fund also sold a number of positions where we anticipated credit stress was not fully reflected in realized prices.
*Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects.
Portfolio Allocation as of June 30, 20081 (% of net assets)
Revenue Bonds3 | 76 | .8 | % | ||
General Obligations3 | 10 | .0 | |||
Certificates of Participation3 | 7 | .2 | |||
Short-Term Investment | 7 | .5 | |||
Other Assets and Liabilities, Net4 | (1 | .5 | ) | ||
100 | .0 | % | |||
Bond Credit Quality Distribution as of June 30, 20082 (% of market value)
AAA | 13 | .1 | % | ||
AA | 18 | .6 | |||
A | 34 | .5 | |||
BBB | 26 | .3 | |||
Non-Rated | 7 | .5 | |||
100 | .0 | % | |||
1 | Portfolio allocations are subject to change and are not recommendations to buy or sell any security. |
2 | Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. If there are multiple ratings for a security, the lowest rating is used unless ratings are provided by all three agencies, in which case the middle rating is used. |
3 | These securities may include bonds that are pre-refunded or escrowed to maturity issues; see the fund’s Notes to Schedule of Investments. As of June 30, 2008, 17.4% of the fund’s net assets were pre-refunded and escrowed to maturity issues. |
4 | Investments typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
12 First American Funds 2008 Annual Report
Annual Performance1,2 as of June 30, 2008
Since Inception | ||||||||||||
1 year | 5 years | 2/01/2000 | ||||||||||
Average annual return with sales charge (POP) | ||||||||||||
Class A | (2.78 | )% | 2.02% | 5.03% | ||||||||
Class C | 0.15 | % | 2.50% | 5.16% | ||||||||
Average annual return without sales charge (NAV) | ||||||||||||
Class A | 1.52 | % | 2.91% | 5.57% | ||||||||
Class C | 1.12 | % | 2.50% | 5.16% | ||||||||
Class Y | 1.67 | % | 3.14% | 5.84% | ||||||||
Lehman Municipal Bond Index3 | 3.23 | % | 3.52% | 5.71% | ||||||||
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
1 | Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 4.25% for Class A shares and the maximum contingent deferred sales charge (“CDSC”) for Class C shares for the relevant period. Maximum CDSC is 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.
Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities.
As of the most recent prospectus, the fund’s total annual operating expense ratio (including acquired fund fees and expenses) for Class A, Class C, and Class Y shares was 1.76%, 2.25%, and 1.51%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least June 30, 2009 so that total annual fund operating expenses (after waivers and excluding acquired fund fees and expenses) for Class A, Class C, and Class Y shares do not exceed 0.75%, 1.15%, and 0.50%, respectively. These fee waivers and expense reimbursements may be terminated at any time after June 30, 2009, at the discretion of the advisor. Prior to that time, such waivers and reimbursements may not be terminated without the approval of the fund’s board of directors.
Value of $10,000 Investment 1,2,4 as of June 30, 2008
Colorado Tax Free Fund, Class A (NAV) | ![]() | $ | 15,780 | |||||
Colorado Tax Free Fund, Class A (POP) | ![]() | $ | 15,115 | |||||
Lehman Municipal Bond Index3 | ![]() | $ | 15,955 | |||||
The chart at right illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 2/01/2000 to 6/30/2008) as compared to the Lehman Municipal Bond Index3.
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950137-08-011507/c34172c3417106.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
A portion of the fund’s income may be subject to state and/or federal income tax, including the alternative minimum tax. Capital gains distributions, if any, will be subject to tax.
3 | An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities of one year or more. |
4 | Performance for Class C and Class Y shares is not presented. Performance for these classes will vary due to different expense structures. |
First American Funds 2008 Annual Report 13
Intermediate Tax Free Fund
Investment Objective: providing current income that is exempt from federal income tax to the extent consistent with preservation of capital
How did the fund perform for the fiscal year ended June 30, 2008?
The First American Intermediate Tax Free Fund (the “fund”), Class Y shares, returned 3.41% for the fiscal year ended June 30, 2008 (Class A shares returned 3.33%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark, the Lehman 7-Year Municipal Bond Index*, returned 5.60%. Performance for the fund’s peer group, the Lipper Intermediate Municipal Debt Funds Average, was 3.16%.
What were the general municipal market conditions during the fiscal year?
The municipal market endured one of its more tumultuous years ever as fallout from the housing debacle rocked market participants. Deterioration within their relatively new mortgage-backed book of business ultimately led to downgrades for several of the major monoline municipal bond insurers. The impaired credit quality and loss of confidence in many of the insurers affected much of the municipal market (use of insurance had become so pervasive that in recent years close to 50% of all new issuance came to market with an insurance wrap). The market was buffeted by irregular bouts of volatility and selling pressure as a number of accounts unwound positions. For example, tax-exempt money funds were forced to exit insured holdings en masse due to minimum ratings and liquidity requirements. To reduce debt, many municipal market investors were pressured to sell longer-maturity bonds when the floating-rate component of their borrowing programs was no longer money-fund eligible (the municipal market had in recent years developed its own form of “carry” trade, in which investors borrow in the short-term money markets and invest in longer maturities, trying to take advantage of the relative steepness of the municipal yield curve in comparison to other fixed-income markets).
Credit spreads (i.e., the differences in yield between higher- and lower-quality debt) were the first to widen as the market anticipated that lower-quality debt would struggle in a slowing economy. Ultimately, however, the insurer debacle cut an even wider swath through the market. Many insured bonds now trade solely based on the creditworthiness of underlying obligors with little or no value attributed to the insurance wrap. Not surprisingly, in this environment natural standalone (i.e., without an insurance wrap) AAA- and AA-rated bonds were generally the best performers for the year.
The municipal yield curve steepened over the past 12 months as yields on shorter maturities fell while longer maturity yields rose slightly. In terms of total return, intermediate maturities generally produced the best returns and longer-maturity bonds were the weakest-performing part of the curve. Although the overall municipal market started to regain its bearings near the end of the fiscal year, high-grade bonds still finished at yields of more than 90% (and in some cases more than 100%) of comparable-maturity Treasuries, which typically indicates that the high-grade bonds represent good value relative to Treasuries.
How did market conditions and investment strategies affect the fund’s performance?
Reflecting the trends in the broader market, the best-performing bonds in the fund were generally the natural high-grades (AAA- and AA-rated bonds), which were not affected by the insurer debacle, and shorter intermediate maturities, which benefited from the flattening yield curve over the course of the year. Although the fund does hold meaningful positions in mid to-lower-grade securities, which generally underperformed for the year, the fund posted respectable total return numbers relative to its peer group for the fiscal year due in part to lower weightings in insured bonds. The fund’s relative performance improved markedly over the first half of 2008, when credit spreads – and the performance of lower-rated securities – showed signs of stabilizing as the market’s focus shifted toward the insurer debacle. The entire year, while tumultuous, produced many relative value opportunities from both a trading and credit perspective that helped bolster the fund’s performance.
What strategic moves were made by the fund and why?
Other than an occasional tactical adjustment, the fund’s duration, or sensitivity to interest-rate movements, was kept relatively neutral to the benchmark duration most of the past year. The fund did slightly increase its duration toward the end of the fiscal year as municipal yields moved to historically high levels relative to comparable-maturity Treasuries. Since we anticipate the shape of the municipal yield curve to flatten over time, we focused many purchases in the 10- to 15-plus-year range and reallocated out of shorter maturity ranges while keeping duration constant by adjusting the fund’s cash reserves. Given the turmoil throughout the year and the resultant supply pressures, the fund added to weightings in a variety of issuers and sectors (such as healthcare and education) at wider credit spreads – and therefore lower prices – than have been available for a number of years. On a security-specific basis, the fund also sold a number of positions where we anticipated credit stress was not fully reflected in realized prices.
*Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects.
Portfolio Allocation as of June 30, 20081 (% of net assets)
Revenue Bonds3 | 66.8 | % | ||
General Obligations3 | 28.9 | |||
Certificates of Participation3 | 2.2 | |||
Short-Term Investment | 2.3 | |||
Other Assets and Liabilities, Net4 | (0.2 | ) | ||
100.0 | % | |||
Bond Credit Quality Distribution as of June 30, 20082 (% of market value)
AAA | 24 | .6 | % | ||
AA | 27 | .9 | |||
A | 23 | .8 | |||
BBB | 13 | .6 | |||
BB | 0 | .4 | |||
Non-Rated | 9 | .7 | |||
100 | .0 | % | |||
1 | Portfolio allocations are subject to change and are not recommendations to buy or sell any security. |
2 | Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. If there are multiple ratings for a security, the lowest rating is used unless ratings are provided by all three agencies, in which case the middle rating is used. |
3 | These securities may include bonds that are pre-refunded or escrowed to maturity issues; see the fund’s Notes to Schedule of Investments. As of June 30, 2008, 16.8% of the fund’s net assets were pre-refunded and escrowed to maturity issues. |
4 | 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 2008 Annual Report
Annual Performance1,2 as of June 30, 2008
1 year | 5 years | 10 years | ||||||||||
Average annual return with sales charge (POP) | ||||||||||||
Class A | 1 | .05% | 2.25 | % | 3.88 | % | ||||||
Average annual return without sales charge (NAV) | ||||||||||||
Class A | 3 | .33% | 2.71 | % | 4.12 | % | ||||||
Class Y | 3 | .41% | 2.86 | % | 4.22 | % | ||||||
Lehman 7-Year Municipal Bond Index3 | 5 | .60% | 3.24 | % | 4.80 | % | ||||||
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
1 | Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 2.25% for Class A shares. Total returns assume reinvestment of all distributions at NAV.
Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities.
As of the most recent prospectus, the fund’s total annual operating expense ratio for Class A and Class Y shares was 1.02% and 0.77%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least June 30, 2009 so that total annual fund operating expenses for Class A and Class Y shares do not exceed 0.75% and 0.70%, respectively. These fee waivers and expense reimbursements may be terminated at any time after June 30, 2009, at the discretion of the advisor. Prior to that time, such waivers and reimbursements may not be terminated without the approval of the fund’s board of directors.
Value of $10,000 Investment1,2,4 as of June 30, 2008
Intermediate Tax Free Fund, Class A (NAV) | ![]() | $ | 14,970 | |||||
Intermediate Tax Free Fund, Class A (POP) | ![]() | $ | 14,633 | |||||
Lehman 7-Year Municipal Bond Index3 | ![]() | $ | 15,986 | |||||
The chart at right illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 6/30/1998 to 6/30/2008) as compared to the Lehman 7-Year Municipal Bond Index3
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950137-08-011507/c34172c3417107.gif)
2 | 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. |
Income from the fund may be subject to state and local taxes. A portion of the fund’s income may be subject to federal income tax, including the alternative minimum tax. Capital gains distributions, if any, will be subject to tax.
3 | An unmanaged index comprised of fixed-rate, investment grade tax-exempt bonds with remaining maturities between six and eight years. |
4 | Performance for Class Y shares is not presented. Performance for this class will vary due to a different expense structure. |
First American Funds 2008 Annual Report 15
Minnesota Intermediate Tax Free Fund
Investment Objective: providing current income that is exempt from both federal income tax and Minnesota state income tax to the extent consistent with preservation of capital
How did the fund perform for the fiscal year ended June 30, 2008?
The First American Minnesota Intermediate Tax Free Fund (the “fund”), Class Y shares, returned 3.51% for the fiscal year ended June 30, 2008 (Class A shares returned 3.53%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark, the Lehman 7-Year Municipal Bond Index*, returned 5.60%. Performance for the fund’s peer group, the Lipper Other States Intermediate Municipal Debt Funds Average, was 3.02%.
What were the general municipal market conditions during the fiscal year?
The municipal market endured one of its more tumultuous years ever as fallout from the housing debacle rocked market participants. Deterioration within their relatively new mortgage-backed book of business ultimately led to downgrades for several of the major monoline municipal bond insurers. The impaired credit quality and loss of confidence in many of the insurers affected much of the municipal market (use of insurance had become so pervasive that in recent years close to 50% of all new issuance came to market with an insurance wrap). The market was buffeted by irregular bouts of volatility and selling pressure as a number of accounts unwound positions. For example, tax-exempt money funds were forced to exit insured holdings en masse due to minimum ratings and liquidity requirements. To reduce debt, many municipal market investors were pressured to sell longer-maturity bonds when the floating-rate component of their borrowing programs was no longer money-fund eligible (the municipal market had in recent years developed its own form of “carry” trade, in which investors borrow in the short-term money markets and invest in longer maturities, trying to take advantage of the relative steepness of the municipal yield curve in comparison to other fixed-income markets).
Credit spreads (i.e., the differences in yield between higher- and lower-quality debt) were the first to widen as the market anticipated that lower-quality debt would struggle in a slowing economy. Ultimately, however, the insurer debacle cut an even wider swath through the market. Many insured bonds now trade solely based on the creditworthiness of underlying obligors with little or no value attributed to the insurance wrap. Not surprisingly, in this environment natural standalone (i.e., without an insurance wrap) AAA- and AA-rated bonds were generally the best performers for the year.
The municipal yield curve steepened over the past 12 months as yields on shorter maturities fell while longer maturity yields rose slightly. In terms of total return, intermediate maturities generally produced the best returns and longer-maturity bonds were the weakest-performing part of the curve. Although the overall municipal market started to regain its bearings near the end of the fiscal year, high-grade bonds still finished at yields of more than 90% (and in some cases more than 100%) of comparable-maturity Treasuries, which typically indicates that the high-grade bonds represent good value relative to Treasuries.
How did market conditions and investment strategies affect the fund’s performance?
Reflecting the trends in the broader market, the best-performing bonds in the fund from a quality standpoint were generally the natural high-grades (AAA- and AA-rated bonds) not affected by either the insurer debacle or the general widening of credit spreads in lower-grade bonds. In this respect the fund benefited from limited reliance on insurers in Minnesota. Although the fund does hold meaningful positions in mid to lower-grade securities, which generally underperformed for the year, the fund’s performance improved during the first half of 2008, when credit spreads – and the performance of lower-rated securities – showed signs of stabilizing as the market’s focus shifted towards the insurer debacle. The entire year, while tumultuous, produced many relative value opportunities from both a trading and credit perspective that helped bolster the fund’s performance.
What strategic moves were made by the fund and why?
Other than an occasional tactical adjustment, the fund’s duration, or sensitivity to interest-rate movements, was kept relatively neutral to the benchmark duration most of the fiscal year. Since we anticipate the shape of the municipal yield curve to flatten over time, we focused many purchases in the 10- to 15-plus-year range and reallocated out of shorter-maturity ranges while keeping duration constant by adjusting the fund’s cash reserves. Given the turmoil throughout the year and the resultant supply pressures, the fund added to weightings in a variety of issuers and revenue bond sectors (comprised of bonds that are backed by the revenue of specific projects) at wider credit spreads – and therefore lower prices – than have been available for a number of years. On a security-specific basis, the fund also sold a number of positions where we anticipated credit stress was not fully reflected in realized prices.
*Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects.
Portfolio Allocation as of June 30, 20081 (% of net assets)
Revenue Bonds3 | 63.9 | % | ||
General Obligations3 | 31.3 | |||
Certificates of Participation3 | 1.4 | |||
Short-Term Investment | 2.8 | |||
Other Assets and Liabilities, Net4 | 0.6 | |||
100.0 | % | |||
Bond Credit Quality Distribution as of June 30, 20082 (% of market value)
AAA | 11.3 | % | ||
AA | 31.1 | |||
A | 27.9 | |||
BBB | 17.4 | |||
BB | 1.8 | |||
Non-Rated | 10.5 | |||
100.0 | % | |||
1 | Portfolio allocations are subject to change and are not recommendations to buy or sell any security. |
2 | Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. If there are multiple ratings for a security, the lowest rating is used unless ratings are provided by all three agencies, in which case the middle rating is used. |
3 | These securities may include bonds that are pre-refunded or escrowed to maturity issues; see the fund’s Notes to Schedule of Investments. As of June 30, 2008, 8.8% of the fund’s net assets were pre-refunded and escrowed to maturity issues. |
4 | Investments typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
16 First American Funds 2008 Annual Report
Annual Performance1,2 as of June 30, 2008
1 year | 5 years | 10 years | ||||||||||
Average annual return with sales charge (POP) | ||||||||||||
Class A | 1.16% | 2.28% | 3.76% | |||||||||
Average annual return without sales charge (NAV) | ||||||||||||
Class A | 3.53% | 2.74% | 3.99% | |||||||||
Class Y | 3.51% | 2.85% | 4.08% | |||||||||
Lehman 7-Year Municipal Bond Index3 | 5.60% | 3.24% | 4.80% | |||||||||
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
1 | Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 2.25% for Class A shares. Total returns assume reinvestment of all distributions at NAV.
Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities.
As of the most recent prospectus, the fund’s total annual operating expense ratio for Class A and Class Y shares was 1.07% and 0.82%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expense through at least June 30, 2009 so that total annual fund operating expenses for Class A and Class Y shares do not exceed 0.75% and 0.70%, respectively. These fee waivers and expense reimbursements may be terminated at any time after June 30, 2009, at the discretion of the advisor. Prior to that time, such waivers and reimbursements may not be terminated without the approval of the fund’s board of directors.
Value of $10,000 Investment1,2,4 as of June 30, 2008
Minnesota Intermediate Tax Free Fund, Class A (NAV) | ![]() | $ | 14,795 | |||
Minnesota Intermediate Tax Free Fund, Class A (POP) | ![]() | $ | 14,467 | |||
Lehman 7-Year Municipal Bond Index3 | ![]() | $ | 15,986 | |||
The chart at right illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 6/30/1998 to 6/30/2008) as compared to the Lehman 7-Year Municipal Bond Index3.
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950137-08-011507/c34172c3417108.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
A portion of the fund’s income may be subject to state and/or federal income tax, including the alternative minimum tax. Capital gains distributions, if any, will be subject to tax.
3 | An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities between six and eight years. |
4 | Performance for Class Y shares is not presented. Performance for this class will vary due to a different expense structure. |
First American Funds 2008 Annual Report 17
Minnesota Tax Free Fund
Investment Objective: providing maximum current income that is exempt from both federal income tax and Minnesota state income tax to the extent consistent with prudent investment risk
How did the fund perform for the fiscal year ended June 30, 2008?
The First American Minnesota Tax Free Fund (the “fund”), Class Y shares, returned 0.71% for the fiscal year ended June 30, 2008 (Class A shares returned 0.54%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark, the Lehman Municipal Bond Index*, returned 3.23%. Performance for the fund’s peer group, the Lipper Minnesota Municipal Debt Funds Objective Average, was 1.13%.
What were the general municipal market conditions during the fiscal year?
The municipal market endured one of its more tumultuous years ever as fallout from the housing debacle rocked market participants. Deterioration within their relatively new mortgage-backed book of business ultimately led to downgrades for several of the major monoline municipal bond insurers. The impaired credit quality and loss of confidence in many of the insurers affected much of the municipal market (use of insurance had become so pervasive that in recent years close to 50% of all new issuance came to market with an insurance wrap). The market was buffeted by irregular bouts of volatility and selling pressure as a number of accounts unwound positions. For example, tax-exempt money funds were forced to exit insured holdings en masse due to minimum ratings and liquidity requirements. To reduce debt, many municipal market investors were pressured to sell longer-maturity bonds when the floating-rate component of their borrowing programs was no longer money-fund eligible (the municipal market had in recent years developed its own form of “carry” trade, in which investors borrow in the short-term money markets and invest in longer maturities, trying to take advantage of the relative steepness of the municipal yield curve in comparison to other fixed-income markets).
Credit spreads (i.e., the differences in yield between higher- and lower-quality debt) were the first to widen as the market anticipated that lower-quality debt would struggle in a slowing economy. Ultimately, however, the insurer debacle cut an even wider swath through the market. Many insured bonds now trade solely based on the creditworthiness of underlying obligors with little or no value attributed to the insurance wrap. Not surprisingly, in this environment natural standalone (i.e., without an insurance wrap) AAA- and AA-rated bonds were generally the best performers for the year.
The municipal yield curve steepened over the past 12 months as yields on shorter maturities fell while longer maturity yields rose slightly. In terms of total return, intermediate maturities generally produced the best returns and longer-maturity bonds were the weakest-performing part of the curve. Although the overall municipal market started to regain its bearings near the end of the fiscal year, high-grade bonds still finished at yields of more than 90% (and in some cases more than 100%) of comparable-maturity Treasuries, which typically indicates that the high-grade bonds represent good value relative to Treasuries.
How did market conditions and investment strategies affect the fund’s performance?
The first half of the funds’ fiscal year was a difficult one, as positions in lower-quality bonds that had benefited performance in previous periods generally had negative impacts, dragging down the fund’s performance for the entire year. A steepening municipal yield curve and widening credit spreads (differences in yields between AAA-rated and lower-rated bonds) caused the fund’s positions in longer maturities, BBB-rated and nonrated bonds and selected healthcare issues to drag down performance relative to its peer group. Relatively smaller positions in short-to-intermediate maturities and higher-quality prerefunded bonds (bonds called by municipalities and backed by treasuries) performed well but were insufficient to offset the negatives noted above.
What strategic moves were made by the fund and why?
As the yield curve steepened, the fund reduced positions in better-performing two-to three-year maturities and made selective reductions in the 18- to 30-year range. We added to the five- to 16-year and 30-year ranges, where yields represented better relative value. In addition, the fund increased its duration (a measure of its sensitivity to interest-rate movements) over the period as municipal yields moved to historically high levels relative to comparable-maturity Treasuries. The fund also reduced better-performing AAA- and A-rated positions and added to BBB-rated holdings as credit spreads reached historically wide levels. We also added AA-rated transportation issues that were available at relatively attractive yields. Attractive spreads also led us to reduce higher-quality prerefunded and general obligation bonds (bonds backed directly by the taxing authority of the municipality) and to add positions in the healthcare sector.
*Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects.
Portfolio Allocation as of June 30, 20081 (% of net assets)
Revenue Bonds3 | 86.1 | % | ||
General Obligations3 | 10.6 | |||
Certificate of Participation3 | 1.2 | |||
Short-Term Investment | 1.6 | |||
Other Assets and Liabilities, Net4 | 0.5 | |||
100.0 | % | |||
Bond Credit Quality Distribution as of June 30, 20082 (% of market value)
AAA | 17.2 | % | ||
AA | 19.0 | |||
A | 30.1 | |||
BBB | 10.0 | |||
BB | 0.5 | |||
Non-Rated | 23.2 | |||
100.0 | % | |||
1 | Portfolio allocations are subject to change and are not recommendations to buy or sell any security. |
2 | Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. If there are multiple ratings for a security, the lowest rating is used unless ratings are provided by all three agencies, in which case the middle rating is used. |
3 | These securities may include bonds that are pre-refunded or escrowed to maturity issues; see the fund’s Notes to Schedule of Investments. As of June 30, 2008, 10.4% of the fund’s net assets were pre-refunded and escrowed to maturity issues. |
4 | Investments typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
18 First American Funds 2008 Annual Report
Annual Performance1,2 as of June 30, 2008
Since Inception | ||||||||||||||||
1 year | 5 years | 10 years | 2/01/1999 | |||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||
Class A | (3 | .78)% | 1.98 | % | 3.65 | % | — | |||||||||
Class C | (0 | .90)% | 2.46 | % | — | 3.44 | % | |||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||
Class A | 0 | .54% | 2.88 | % | 4.10 | % | — | |||||||||
Class C | 0 | .06% | 2.46 | % | — | 3.44 | % | |||||||||
Class Y | 0 | .71% | 3.12 | % | 4.35 | % | — | |||||||||
Lehman Municipal Bond Index3 | 3 | .23% | 3.52 | % | 4.90 | % | 4.68 | % | ||||||||
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
1 | Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 4.25% for Class A shares and the maximum contingent deferred sales charge (“CDSC”) for Class C shares for the relevant period. Maximum CDSC is 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.
Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities.
As of the most recent prospectus, the fund’s total annual operating expense ratio (including acquired fund fees and expenses) for Class A, Class C, and Class Y shares was 1.11%, 1.59%, and 0.86%, respectively (after waivers and excluding acquired fees and expenses). The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least June 30, 2009 so that total annual fund operating expenses for Class A, Class C, and Class Y shares do not exceed 0.85%, 1.35%, and 0.70%, respectively. These fee waivers and expense reimbursements may be terminated at any time after June 30, 2009, at the discretion of the advisor. Prior to that time, such waivers and reimbursements may not be terminated without the approval of the fund’s board of directors. |
Value of $10,000 Investment1,2,4 as of June 30, 2008
Minnesota Tax Free Fund, Class A (NAV) | ![]() | $ | 14,941 | |||
Minnesota Tax Free Fund, Class A (POP) | ![]() | $ | 14,306 | |||
Lehman Municipal Bond Index3 | ![]() | $ | 16,133 | |||
The chart at right illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 6/30/1998 to 6/30/2008) as compared to the Lehman Municipal Bond Index3.
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950137-08-011507/c34172c3417109.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
A portion of the fund’s income may be subject to state and/or federal income tax, including the alternative minimum tax. Capital gains distributions, if any, will be subject to tax.
On July 31, 1998, the Minnesota Tax Free Fund became the successor by merger to the Piper Minnesota Tax-Exempt Fund, a series of Piper Funds Inc. Prior to the merger, the First American Fund had no assets or liabilities. Performance presented prior to July 31, 1998, represents that of the Piper Minnesota Tax-Exempt Fund.
3 | An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities of one year or more. |
4 | Performance for Class C and Class Y shares is not presented. Performance of these classes will vary due to different expense structures. |
First American Funds 2008 Annual Report 19
Missouri Tax Free Fund
Investment Objective: providing maximum current income that is exempt from both federal income tax and Missouri state income tax to the extent consistent with prudent investment risk
How did the fund perform for the fiscal year ended June 30, 2008?
The First American Missouri Tax Free Fund (the “fund”), Class Y shares, returned 1.60% for the fiscal year ended June 30, 2008 (Class A shares returned 1.44%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark, the Lehman Municipal Bond Index*, returned 3.23%. Performance for the fund’s peer group, the Lipper Missouri Municipal Debt Funds Average, was 0.72%.
What were the general municipal market conditions during the fiscal year?
The municipal market endured one of its more tumultuous years ever as fallout from the housing debacle rocked market participants. Deterioration within their relatively new mortgage-backed book of business ultimately led to downgrades for several of the major monoline municipal bond insurers. The impaired credit quality and loss of confidence in many of the insurers affected much of the municipal market (use of insurance had become so pervasive that in recent years close to 50% of all new issuance came to market with an insurance wrap). The market was buffeted by irregular bouts of volatility and selling pressure as a number of accounts unwound positions. For example, tax-exempt money funds were forced to exit insured holdings en masse due to minimum ratings and liquidity requirements. To reduce debt, many municipal market investors were pressured to sell longer-maturity bonds when the floating-rate component of their borrowing programs was no longer money-fund eligible (the municipal market had in recent years developed its own form of “carry” trade, in which investors borrow in the short-term money markets and invest in longer maturities, trying to take advantage of the relative steepness of the municipal yield curve in comparison to other fixed-income markets).
Credit spreads (i.e., the differences in yield between higher- and lower-quality debt) were the first to widen as the market anticipated that lower-quality debt would struggle in a slowing economy. Ultimately, however, the insurer debacle cut an even wider swath through the market. Many insured bonds now trade solely based on the creditworthiness of underlying obligors with little or no value attributed to the insurance wrap. Not surprisingly, in this environment natural standalone (i.e., without an insurance wrap) AAA- and AA-rated bonds were generally the best performers for the year.
The municipal yield curve steepened over the past 12 months as yields on shorter maturities fell while longer maturity yields rose slightly. In terms of total return, intermediate maturities generally produced the best returns and longer-maturity bonds were the weakest-performing part of the curve. Although the overall municipal market started to regain its bearings near the end of the fiscal year, high-grade bonds still finished at yields of more than 90% (and in some cases more than 100%) of comparable-maturity Treasuries, which typically indicates that the high-grade bonds represent good value relative to Treasuries.
How did market conditions and investment strategies affect the fund’s performance?
Reflecting the trends in the broader market, the fund’s holdings in lower-quality securities had a negative effect on performance. The best-performing bonds in the fund from a quality standpoint were generally the natural high-grades (AAA- and AA-rated bonds) not affected by either the insurer debacle or the general widening of credit spreads in lower-grade bonds. The fund’s allocations to intermediate-maturity bonds also helped performance due to the flattening yield curve and general underperformance of long bonds for the year. Although the fund does hold meaningful positions in mid to lower-grade securities, which generally underperformed for the year, the fund’s performance improved over the first half of 2008, when credit spreads – and the performance of lower-rated securities – showed signs of stabilizing as the market focus increasingly shifted towards the insurer debacle. The entire year, while tumultuous, produced many relative value opportunities from both a trading and credit perspective that helped bolster the fund’s performance.
What strategic moves were made by the fund and why?
The fund did slightly increase its duration, or sensitivity to interest-rate movements, over the past few months as yields increased to historically high levels relative to comparable-maturity Treasuries. Since we anticipate the shape of the municipal yield curve to flatten over time, we reduced some of the weighting in intermediate maturities in favor of longer bonds. Given the turmoil throughout the year and the resultant supply pressures, the fund added to weightings in a variety of issuers and revenue bond sectors (comprised of bonds that are backed by the revenue of specific projects) at wider credit spreads – and, therefore, lower prices – than have been available for a number of years. On a security-specific basis, the fund also sold a number of positions where we anticipated credit stress was not fully reflected in realized prices.
*Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects.
Portfolio Allocation as of June 30, 20081 (% of net assets)
Revenue Bonds3 | 80 | .7 | % | ||
General Obligations3 | 11 | .0 | |||
Certificates of Participation3 | 7 | .7 | |||
Other Assets and Liabilities, Net4 | 0 | .6 | |||
100 | .0 | % | |||
Bond Credit Quality Distribution as of June 30, 20082 (% of market value)
AAA | 32 | .9 | % | ||
AA | 27 | .4 | |||
A | 17 | .7 | |||
BBB | 12 | .4 | |||
Non-Rated | 9 | .6 | |||
100 | .0 | % | |||
1 | Portfolio allocations are subject to change and are not recommendations to buy or sell any security. |
2 | Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. If there are multiple ratings for a security, the lowest rating is used unless ratings are provided by all three agencies, in which case the middle rating is used. |
3 | These securities may include bonds that are pre-refunded or escrowed to maturity issues; see the fund’s Notes to Schedule of Investments. As of June 30, 2008, 13.9% of the fund’s net assets were pre-refunded and escrowed to maturity issues. |
4 | Investments typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
20 First American Funds 2008 Annual Report
Annual Performance1,2 as of June 30, 2008
Since Inception | ||||||||||||||||
1 year | 5 years | 10 years | 9/24/2001 | |||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||
Class A | (2 | .87)% | 1.58 | % | 3.43 | % | — | |||||||||
Class C | (0 | .03)% | 2.03 | % | — | 3.10 | % | |||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||
Class A | 1 | .44% | 2.46 | % | 3.88 | % | — | |||||||||
Class C | 0 | .95% | 2.03 | % | — | 3.10 | % | |||||||||
Class Y | 1 | .60% | 2.71 | % | 4.17 | % | — | |||||||||
Lehman Municipal Bond Index3 | 3 | .23% | 3.52 | % | 4.90 | % | 4.50 | % |
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
1 | Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 4.25% for Class A shares and the maximum contingent deferred sales charge (“CDSC”) for Class C shares for the relevant period. Maximum CDSC is 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.
Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities.
As of the most recent prospectus, the fund’s total annual operating expense ratio for Class A, Class C, and Class Y shares was 1.10%, 1.57%, and 0.85%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least June 30, 2009 so that total annual fund operating expenses for Class A, Class C, and Class Y shares do not exceed 0.95%, 1.35%, and 0.70%, respectively. These fee waivers and expense reimbursements may be terminated at any time after June 30, 2009, at the discretion of the advisor. Prior to that time, such waivers and reimbursements may not be terminated without the approval of the fund’s board of directors. |
Value of $10,000 Investment1,2,4 as of June 30, 2008
Missouri Tax Free Fund, Class A (NAV) | ![]() | $ | 14,636 | |||
Missouri Tax Free Fund, Class A (POP) | ![]() | $ | 14,016 | |||
Lehman Municipal Bond Index3 | ![]() | $ | 16,133 | |||
The chart at right illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from
06/30/1998 to 6/30/2008) as compared to the Lehman Municipal Bond Index3.
06/30/1998 to 6/30/2008) as compared to the Lehman Municipal Bond Index3.
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950137-08-011507/c34172c3417110.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
A portion of the fund’s income may be subject to state and/or federal income tax, including the alternative minimum tax. Capital gains distributions, if any, will be subject to tax.
On September 24, 2001, the Missouri Tax Free Fund became the successor by merger to the Firstar Missouri Tax-Exempt Bond Fund, a series of Firstar Funds, Inc. Prior to the merger, the First American fund had no assets or liabilities. Performance presented prior to September 24, 2001, represents that of the Firstar Missouri Tax-Exempt Bond Fund. The Firstar Missouri Tax-Exempt Bond Fund was organized on December 11, 2000.
3 | An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities of one year or more. |
4 | Performance for Class C and Class Y shares is not presented. Performance for these classes will vary due to different expense structures. |
First American Funds 2008 Annual Report 21
Nebraska Tax Free Fund
Investment Objective: providing maximum current income that is exempt from both federal income tax and Nebraska state income tax to the extent consistent with prudent investment risk
How did the fund perform for the fiscal year ended June 30, 2008?
The First American Nebraska Tax Free Fund (the “fund”), Class Y shares, returned 2.45% for the fiscal year ended June 30, 2008 (Class A shares returned 2.19%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark, the Lehman Municipal Bond Index*, returned 3.23%. Performance for the fund’s peer group, the Lipper Other States Municipal Debt Funds Average, was 1.44%.
What were the general municipal market conditions during the fiscal year?
The municipal market endured one of its more tumultuous years ever as fallout from the housing debacle rocked market participants. Deterioration within their relatively new mortgage-backed book of business ultimately led to downgrades for several of the major monoline municipal bond insurers. The impaired credit quality and loss of confidence in many of the insurers affected much of the municipal market (use of insurance had become so pervasive that in recent years close to 50% of all new issuance came to market with an insurance wrap). The market was buffeted by irregular bouts of volatility and selling pressure as a number of accounts unwound positions. For example, tax-exempt money funds were forced to exit insured holdings en masse due to minimum ratings and liquidity requirements. To reduce debt, many municipal market investors were pressured to sell longer-maturity bonds when the floating-rate component of their borrowing programs was no longer money-fund eligible (the municipal market had in recent years developed its own form of “carry” trade, in which investors borrow in the short-term money markets and invest in longer maturities, trying to take advantage of the relative steepness of the municipal yield curve in comparison to other fixed-income markets).
Credit spreads (i.e., the differences in yield between higher- and lower-quality debt) were the first to widen as the market anticipated that lower-quality debt would struggle in a slowing economy. Ultimately, however, the insurer debacle cut an even wider swath through the market. Many insured bonds now trade solely based on the creditworthiness of underlying obligors with little or no value attributed to the insurance wrap. Not surprisingly, in this environment natural standalone (i.e., without an insurance wrap) AAA- and AA-rated bonds were generally the best performers for the year.
The municipal yield curve steepened over the past 12 months as yields on shorter maturities fell while longer maturity yields rose slightly. In terms of total return, intermediate maturities generally produced the best returns and longer-maturity bonds were the weakest-performing part of the curve. Although the overall municipal market started to regain its bearings near the end of the fiscal year, high-grade bonds still finished at yields of more than 90% (and in some cases more than 100%) of comparable-maturity Treasuries, which typically indicates that the high-grade bonds represent good value relative to Treasuries.
How did market conditions and investment strategies affect the fund’s performance?
The fund was fairly diversified across the municipal yield curve with a moderate barbell of maturities in the seven- to 10-year range offset by longer positions in the 20- to 30-year range. The short to intermediate exposure helped to mitigate the impact of a steeper yield curve. Widening credit spread (i.e. the difference in yield between AAA-rated and lower-rated municipal bonds) had a negative impact on some of the fund’s BBB-rated and non-rated positions.
What strategic moves were made by the fund and why?
The fund’s duration, or sensitivity to interest-rate movements, was maintained slightly long relative to the benchmark as municipal yields reached historically high levels relative to comparable-maturity Treasuries. The fund augmented its Puerto Rico exposure: these positions were added at very attractive historical spreads and, therefore, low prices. Puerto Rico bonds are double exempt for Nebraska residents.
*Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects.
Portfolio Allocation as of June 30, 20081 (% of net assets)
Revenue Bonds3 | 76.9 | % | ||
General Obligations3 | 18.3 | |||
Certificates of Participation3 | 3.5 | |||
Short-Term Investment | 3.7 | |||
Other Assets and Liabilities, Net4 | (2.4 | ) | ||
100.0 | % | |||
Bond Credit Quality Distribution as of June 30, 20082 (% of market value)
AAA | 9.2 | % | ||
AA | 33.6 | |||
A | 37.2 | |||
BBB | 4.9 | |||
Non-Rated | 15.1 | |||
100.0 | % | |||
1 | Portfolio allocations are subject to change and are not recommendations to buy or sell any security. |
2 | Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. If there are multiple ratings for a security, the lowest rating is used unless ratings are provided by all three agencies, in which case the middle rating is used. |
3 | These securities may include bonds that are pre-refunded or escrowed to maturity issues; see the fund’s Notes to Schedule of Investments. As of June 30, 2008, 4.3% of the fund’s net assets were pre-refunded and escrowed to maturity issues. |
4 | Investments typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
22 First American Funds 2008 Annual Report
Annual Performance1,2 as of June 30, 2008
Since Inception | ||||||||||||
1 year | 5 years | 2/28/2001 | ||||||||||
Average annual return with sales charge (POP) | ||||||||||||
Class A | (2 | .18)% | 2.01 | % | 3.68 | % | ||||||
Class C | 0 | .83% | 2.54 | % | 3.83 | % | ||||||
Average annual return without sales charge (NAV) | ||||||||||||
Class A | 2 | .19% | 2.91 | % | 4.29 | % | ||||||
Class C | 1 | .81% | 2.54 | % | 3.83 | % | ||||||
Class Y | 2 | .45% | 3.18 | % | 4.55 | % | ||||||
Lehman Municipal Bond Index3 | 3 | .23% | 3.52 | % | 4.73 | % | ||||||
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
1 | Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 4.25% for Class A shares and the maximum contingent deferred sales charge (“CDSC”) for Class C shares for the relevant period. Maximum CDSC is 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.
Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities.
As of the most recent prospectus, the fund’s total annual operating expense ratio for Class A, Class C, and Class Y shares was 1.44%, 1.92%, and 1.19%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least June 30, 2009 so that total annual fund operating expenses for Class A, Class C, and Class Y shares do not exceed 0.75%, 1.15%, and 0.50%, respectively. These fee waivers and expense reimbursements may be terminated at any time after June 30, 2009, at the discretion of the advisor. Prior to that time, such waivers and reimbursements may not be terminated without the approval of the fund’s board of directors.
Value of $10,000 Investment1,2,4 as of June 30, 2008
Nebraska Tax Free Fund, Class A (NAV) | ![]() | $ | 13,610 | |||
Nebraska Tax Free Fund, Class A (POP) | ![]() | $ | 13,037 | |||
Lehman Municipal Bond Index3 | ![]() | $ | 14,040 | |||
The chart at right illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 2/28/2001 to 6/30/2008) as compared to the Lehman Municipal Bond Index3.
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950137-08-011507/c34172c3417111.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
A portion of the fund’s income may be subject to state and/or federal income tax, including the alternative minimum tax. Capital gains distributions, if any, will be subject to tax.
3 | An unmanaged index comprised of fixed-rate, investment grade tax-exempt bonds with remaining maturities of one year or more. |
4 | Performance for Class C and Class Y shares is not presented. Performance of these classes will vary due to different expense structures. |
First American Funds 2008 Annual Report 23
Ohio Tax Free Fund
Investment Objective: providing maximum current income that is exempt from both federal income tax and Ohio state income tax to the extent consistent with prudent investment risk
How did the fund perform for the fiscal year ended June 30, 2008?
The First American Ohio Tax Free Fund (the “fund”), Class Y shares, returned 2.63% for the fiscal year ended June 30, 2008 (Class A shares returned 2.38%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark, the Lehman Municipal Bond Index*, returned 3.23%. Performance for the fund’s peer group, the Lipper Ohio Municipal Debt Funds Average, was 0.94%.
What were the general municipal market conditions during the fiscal year?
The municipal market endured one of its more tumultuous years ever as fallout from the housing debacle rocked market participants. Deterioration within their relatively new mortgage-backed book of business ultimately led to downgrades for several of the major monoline municipal bond insurers. The impaired credit quality and loss of confidence in many of the insurers affected much of the municipal market (use of insurance had become so pervasive that in recent years close to 50% of all new issuance came to market with an insurance wrap). The market was buffeted by irregular bouts of volatility and selling pressure as a number of accounts unwound positions. For example, tax-exempt money funds were forced to exit insured holdings en masse due to minimum ratings and liquidity requirements. To reduce debt, many municipal market investors were pressured to sell longer-maturity bonds when the floating-rate component of their borrowing programs was no longer money-fund eligible (the municipal market had in recent years developed its own form of “carry” trade, in which investors borrow in the short-term money markets and invest in longer maturities, trying to take advantage of the relative steepness of the municipal yield curve in comparison to other fixed-income markets).
Credit spreads (i.e., the differences in yield between higher- and lower-quality debt) were the first to widen as the market anticipated that lower-quality debt would struggle in a slowing economy. Ultimately, however, the insurer debacle cut an even wider swath through the market. Many insured bonds now trade solely based on the creditworthiness of underlying obligors with little or no value attributed to the insurance wrap. Not surprisingly, in this environment natural standalone (i.e., without an insurance wrap) AAA- and AA-rated bonds were generally the best performers for the year.
The municipal yield curve steepened over the past 12 months as yields on shorter maturities fell while longer maturity yields rose slightly. In terms of total return, intermediate maturities generally produced the best returns and longer-maturity bonds were the weakest-performing part of the curve. Although the overall municipal market started to regain its bearings near the end of the fiscal year, high-grade bonds still finished at yields of more than 90% (and in some cases more than 100%) of comparable-maturity Treasuries, which typically indicates that the high-grade bonds represent good value relative to Treasuries.
How did market conditions and investment strategies affect the fund’s performance?
Reflecting the trends in the broader market, the fund’s positions in mid to lower-grade securities underperformed for the fiscal year. The best-performing bonds in the fund from a quality standpoint were generally the natural high-grades (AAA- or AAA-rated bonds) not affected by either the insurer debacle or the general widening of credit spreads in lower-grade bonds. The fund’s relative performance improved markedly over the first half of 2008, when credit spreads – and the performance of lower-rated securities – showed signs of stabilizing as the market focus increasingly shifted toward the insurer debacle.
What strategic moves were made by the fund and why?
After remaining mainly neutral to its benchmark for most of the year, the fund’s duration, or sensitivity to interest-rate movements, has been slightly extended as yields increased to historically high levels relative to comparable-maturity Treasuries. Given the high level of turmoil throughout the fiscal year and the resultant supply pressures, the fund added to weightings in a variety of issuers and revenue bond sectors (comprised of bonds that are backed by the revenue of specific projects) at wider credit spreads – and therefore lower prices – than have been available for a number of years.
*Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects.
Portfolio Allocation as of June 30, 20081 (% of net assets)
Revenue Bonds3 | 60.9 | % | ||
General Obligations3 | 38.2 | |||
Short-Term Investment | 3.3 | |||
Other Assets and Liabilities, Net4 | (2.4 | ) | ||
100.0 | % | |||
Bond Credit Quality Distribution as of June 30, 20082 (% of market value)
AAA | 17.3 | % | ||
AA | 34.4 | |||
A | 31.3 | |||
BBB | 15.5 | |||
Non-Rated | 1.5 | |||
100.0 | % | |||
1 | Portfolio allocations are subject to change and are not recommendations to buy or sell any security. |
2 | Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. If there are multiple ratings for a security, the lowest rating is used unless ratings are provided by all three agencies, in which case the middle rating is used. |
3 | These securities may include bonds that are pre-refunded or escrowed to maturity issues; see the fund’s Notes to Schedule of Investments. As of June 30, 2008, 12.8% of the fund’s net assets were pre-refunded and escrowed to maturity issues. |
4 | Investments typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
24 First American Funds 2008 Annual Report
Annual Performance1,2 as of June 30, 2008
Since Inception | ||||||||||||
1 year | 5 years | 4/30/2002 | ||||||||||
Average annual return with sales charge (POP) | ||||||||||||
Class A | (1 | .95)% | 1.89 | % | 3.27 | % | ||||||
Class C | 1 | .02% | 2.34 | % | 3.40 | % | ||||||
Average annual return without sales charge (NAV) | ||||||||||||
Class A | 2 | .38% | 2.77 | % | 4.00 | % | ||||||
Class C | 2 | .00% | 2.34 | % | 3.40 | % | ||||||
Class Y | 2 | .63% | 3.01 | % | 4.23 | % | ||||||
Lehman Municipal Bond Index3 | 3 | .23% | 3.52 | % | 4.54 | % | ||||||
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
1 | Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 4.25% for Class A shares and the maximum contingent deferred sales charge (“CDSC”) for Class C shares for the relevant period. Maximum CDSC is 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.
Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities.
As of the most recent prospectus, the fund’s total annual operating expense ratio for Class A, Class C, and Class Y shares was 1.41%, 1.90%, and 1.16%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least June 30, 2009 so that total annual fund operating expenses for Class A, Class C, and Class Y shares do not exceed 0.75%, 1.15%, and 0.50%, respectively. These fee waivers and expense reimbursements may be terminated at any time after June 30, 2009, at the discretion of the advisor. Prior to that time, such waivers and reimbursements may not be terminated without the approval of the fund’s board of directors.
Value of $10,000 Investment1,2,4 as of June 30, 2008
Ohio Tax Free Fund, Class A (NAV) | ![]() | $ | 12,733 | |||
Ohio Tax Free Fund, Class A (POP) | ![]() | $ | 12,196 | |||
Lehman Municipal Bond Index3 | ![]() | $ | 13,147 | |||
The chart at right illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y shares (from 4/30/2002 to 6/30/2008) as compared to the Lehman Municipal Bond Index3.
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950137-08-011507/c34172c3417112.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
A portion of the fund’s income may be subject to state and/or federal income tax, including the alternative minimum tax. Capital gains distributions, if any, will be subject to tax.
3 | An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities of one year or more. |
4 | Performance for Class C and Class Y shares is not presented. Performance of these classes will vary due to different expense structures. |
First American Funds 2008 Annual Report 25
Oregon Intermediate Tax Free Fund
Investment Objective: providing current income that is exempt from both federal income tax and Oregon state income tax to the extent consistent with preservation of capital
How did the fund perform for the fiscal year ended June 30, 2008?
The First American Oregon Intermediate Tax Free Fund (the “fund”), Class Y shares, returned 3.54% for the fiscal year ended June 30, 2008 (Class A shares returned 3.39%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark, the Lehman 7-Year Municipal Bond Index*, returned 5.60%. Performance for the fund’s peer group, the Lipper Other States Intermediate Municipal Debt Funds Average, was 3.02%.
What were the general municipal market conditions during the fiscal year?
The municipal market endured one of its more tumultuous years ever as fallout from the housing debacle rocked market participants. Deterioration within their relatively new mortgage-backed book of business ultimately led to downgrades for several of the major monoline municipal bond insurers. The impaired credit quality and loss of confidence in many of the insurers affected much of the municipal market (use of insurance had become so pervasive that in recent years close to 50% of all new issuance came to market with an insurance wrap). The market was buffeted by irregular bouts of volatility and selling pressure as a number of accounts unwound positions. For example, tax-exempt money funds were forced to exit insured holdings en masse due to minimum ratings and liquidity requirements. To reduce debt, many municipal market investors were pressured to sell longer-maturity bonds when the floating-rate component of their borrowing programs was no longer money-fund eligible (the municipal market had in recent years developed its own form of “carry” trade, in which investors borrow in the short-term money markets and invest in longer maturities, trying to take advantage of the relative steepness of the municipal yield curve in comparison to other fixed-income markets).
Credit spreads (i.e., the differences in yield between higher- and lower-quality debt) were the first to widen as the market anticipated that lower-quality debt would struggle in a slowing economy. Ultimately, however, the insurer debacle cut an even wider swath through the market. Many insured bonds now trade solely based on the creditworthiness of underlying obligors with little or no value attributed to the insurance wrap. Not surprisingly, in this environment natural standalone (i.e., without an insurance wrap) AAA- and AA-rated bonds were generally the best performers for the year.
The municipal yield curve steepened over the past 12 months as yields on shorter maturities fell while longer maturity yields rose slightly. In terms of total return, intermediate maturities generally produced the best returns and longer-maturity bonds were the weakest-performing part of the curve. Although the overall municipal market started to regain its bearings near the end of the fiscal year, high-grade bonds still finished at yields of more than 90% (and in some cases more than 100%) of comparable-maturity Treasuries, which typically indicates that the high-grade bonds represent good value relative to Treasuries.
How did market conditions and investment strategies affect the fund’s performance?
Reflecting the trends in the broader market, the fund’s holdings in lower-quality securities had a negative effect on performance. Overall, the fund was underexposed to the lower-grade bonds as Oregon simply does not have the issuance in this sector. The best-performing bonds in the fund from a quality standpoint were generally the natural high-grades (AAA-rated and AA-rated bonds) not affected by either the insurer debacle or the general widening of credit spreads in lower-grade bonds. The fund’s performance improved over the first half of 2008, when credit spreads showed signs of stabilizing as the market focus increasingly shifted toward the insurer debacle.
What strategic moves were made by the fund and why?
Since we anticipate the shape of the municipal yield curve to flatten over time, we focused many purchases in the 10- to 15-plus-year range and reallocated out of shorter maturity ranges while keeping duration, or the fund’s sensitivity to interest-rate movements, consistent by adjusting the fund’s cash reserves. We were able to place some lower-rated bonds into the fund at wider spreads – and therefore lower prices – than have been available for a number of years given the turmoil throughout the year and the resulting supply pressures.
*Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects.
Portfolio Allocation as of June 30, 20081 (% of net assets)
General Obligations3 | 52 | .0 | % | ||
Revenue Bonds3 | 43 | .7 | |||
Certificates of Participation3 | 2 | .5 | |||
Short-Term Investment | 1 | .3 | |||
Other Assets and Liabilities, Net4 | 0 | .5 | |||
100 | .0 | % | |||
Bond Credit Quality Distribution as of June 30, 20082 (% of market value)
AAA | 23 | .0 | % | ||
AA | 35 | .9 | |||
A | 16 | .8 | |||
BBB | 20 | .0 | |||
Non-Rated | 4 | .3 | |||
100 | .0 | % | |||
1 | Portfolio allocations are subject to change and are not recommendations to buy or sell any security. |
2 | Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. If there are multiple ratings for a security, the lowest rating is used unless ratings are provided by all three agencies, in which case the middle rating is used. |
3 | These securities may include bonds that are pre-refunded or escrowed to maturity issues; see the fund’s Notes to Schedule of Investments. As of June 30, 2008, 16.5% of the fund’s net assets were pre-refunded and escrowed to maturity issues. |
4 | Investments typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
26 First American Funds 2008 Annual Report
Annual Performance1,2 as of June 30, 2008
Since Inception | ||||||||||||||||||
1 year | 5 years | 10 years | 2/01/1999 | |||||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||||
Class A | 1.10% | 1.92% | — | 3.33 | % | |||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||||
Class A | 3.39% | 2.38% | — | 3.59 | % | |||||||||||||
Class Y | 3.54% | 2.53% | 3.93 | % | — | |||||||||||||
Lehman 7-Year Municipal Bond Index3 | 5.60% | 3.24% | 4.80 | % | 4.53 | % |
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
1 | Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 2.25% for Class A. Total returns assume reinvestment of all distributions at NAV. |
Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities. |
As of the most recent prospectus, the fund’s total annual operating expense ratio for Class A and Class Y shares was 1.12% and 0.87%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least June 30, 2009 so that total annual fund operating expenses for Class A and Class Y shares do not exceed 0.85% and 0.70%, respectively. These fee waivers and expense reimbursements may be terminated at any time after June 30, 2009, at the discretion of the advisor. Prior to that time, such waivers and reimbursements may not be terminated without the approval of the fund’s board of directors.
Value of $10,000 Investment 1,2,4 as of June 30, 2008
Oregon Intermediate Tax Free Fund, Class A (NAV) | ![]() | $ | 13,930 | |||||
Oregon Intermediate Tax Free Fund, Class A (POP) | ![]() | $ | 13,611 | |||||
Lehman 7-Year Municipal Bond Index3 | ![]() | $ | 15,177 | |||||
The chart at right illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 2/01/1999 to 6/30/2008) as compared to the Lehman 7-Year Municipal Bond Index3.
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950137-08-011507/c34172c3417113.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
A portion of the fund’s income may be subject to state and/or federal income tax, including the alternative minimum tax. Capital gains distributions, if any, will be subject to tax.
Performance prior to August 8, 1997, is that of Oregon Municipal Bond Trust Fund, a predecessor common trust fund. On August 8, 1997, substantially all of the assets of Oregon Municipal Bond Trust Fund were transferred into Oregon Intermediate Tax Free Fund. The objectives, policies, and guidelines of the two funds were, in all material respects, identical. Oregon Municipal Bond Trust Fund was not registered under the Investment Company Act of 1940 and therefore was not subject to certain investment restrictions that might have adversely affected performance.
3 | An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities between six and eight years. |
4 | Performance for Class Y shares is not presented. Performance of this class will vary due to a different expense structure. |
First American Funds 2008 Annual Report 27
Short Tax Free Fund
Investment Objective: providing current income that is exempt from federal income tax, to the extent consistent with the preservation of capital
How did the fund perform for the fiscal year ended June 30, 2008?
The First American Short Tax Free Fund (the “fund”), Class Y shares, returned 4.33% for the fiscal year ended June 30, 2008 (Class A shares returned 4.17%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark, the Lehman 3-Year Municipal Bond Index*, returned 5.58%. Performance for the fund’s peer group, the Lipper Short Municipal Debt Funds Average, was 2.78%.
What were the general municipal market conditions during the fiscal year?
The municipal market endured one of its more tumultuous years ever as fallout from the housing debacle rocked market participants. Deterioration within their relatively new mortgage-backed book of business ultimately led to downgrades for several of the major monoline municipal bond insurers. The impaired credit quality and loss of confidence in many of the insurers affected much of the municipal market (use of insurance had become so pervasive that in recent years close to 50% of all new issuance came to market with an insurance wrap). The market was buffeted by irregular bouts of volatility and selling pressure as a number of accounts unwound positions. For example, tax-exempt money funds were forced to exit insured holdings en masse due to minimum ratings and liquidity requirements. To reduce debt, many municipal market investors were pressured to sell longer-maturity bonds when the floating-rate component of their borrowing programs was no longer money-fund eligible (the municipal market had in recent years developed its own form of “carry” trade, in which investors borrow in the short-term money markets and invest in longer maturities, trying to take advantage of the relative steepness of the municipal yield curve in comparison to other fixed-income markets).
Credit spreads (i.e., the differences in yield between higher- and lower-quality debt) were the first to widen as the market anticipated that lower-quality debt would struggle in a slowing economy. Ultimately, however, the insurer debacle cut an even wider swath through the market. Many insured bonds now trade solely based on the creditworthiness of underlying obligors with little or no value attributed to the insurance wrap. Not surprisingly, in this environment natural standalone (i.e., without an insurance wrap) AAA- and AA-rated bonds were generally the best performers for the year.
The municipal yield curve steepened over the past 12 months as yields on shorter maturities fell while longer maturity yields rose slightly. In terms of total return, intermediate maturities generally produced the best returns and longer-maturity bonds were the weakest-performing part of the curve. Although the overall municipal market started to regain its bearings near the end of the fiscal year, high-grade bonds still finished at yields of more than 90% (and in some cases more than 100%) of comparable-maturity Treasuries, which typically indicates that the high-grade bonds represent good value relative to Treasuries.
How did market conditions and investment strategies affect the fund’s performance?
Short-term interest rates tend to be the most volatile in response to changes in Federal Reserve (“Fed”) policy, and this past fiscal year was no exception. During this aggressive easing cycle, the fund was well positioned with most of its holdings consisting of one- to five-year maturities. A longer-than-average duration, or sensitivity to interest-rate movements, was also important to the fund’s outperformance relative to its peer group.
What strategic moves were made by the fund and why?
With an eye to the end of the Fed’s campaign of cutting the short-term Fed funds rate, and a potential shift in policy, the fund began to diversify somewhat in terms of yield-curve positioning, or the way it spreads its holdings across various maturities. Several of the fund’s higher-quality bonds in the three- to five-year range have been sold. The fund added short-term variable rate demand notes (which pay an interest rate that changes with the market’s rate) as well as some new investments in the 10- to 12-year area. We expect intermediate maturities to be more stable in the event the Fed begins to increase rates.
*Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects.
Portfolio Allocation as of June 30, 20081 (% of net assets)
Revenue Bonds3 | 56 | .2 | % | ||
General Obligations3 | 22 | .6 | |||
Short-Term Investments | 24 | .0 | |||
Other Assets and Liabilities, Net4 | (2 | .8 | ) | ||
100 | .0 | % | |||
Bond Credit Quality Distribution as of June 30, 20082 (% of market value)
AAA | 16 | .1 | % | ||
AA | 30 | .7 | |||
A | 31 | .8 | |||
BBB | 17 | .3 | |||
BB | 0 | .2 | |||
Non-rated | 3 | .9 | |||
100 | .0 | % | |||
1 | Portfolio allocations are subject to change and are not recommendations to buy or sell any security. |
2 | Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. If there are multiple ratings for a security, the lowest rating is used unless ratings are provided by all three agencies, in which case the middle rating is used. |
3 | These securities may include bonds that are pre-refunded or escrowed to maturity issues; see the fund’s Notes to Schedule of Investments. As of June 30, 2008, 2.2% of the fund’s net assets were pre-refunded and escrowed to maturity issues. |
4 | Investments typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
28 First American Funds 2008 Annual Report
Annual Performance1,2 as of June 30, 2008
Since Inception | ||||||||||||
1 year | 5 years | 10/25/2002 | ||||||||||
Average annual return with sales charge (POP) | ||||||||||||
Class A | 1 | .86% | 1.66 | % | 2.13 | % | ||||||
Average annual return without sales charge (NAV) | ||||||||||||
Class A | 4 | .17% | 2.12 | % | 2.54 | % | ||||||
Class Y | 4 | .33% | 2.25 | % | 2.69 | % | ||||||
Lehman 3-Year Municipal Bond Index3 | 5 | .58% | 2.68 | % | 3.09 | % | ||||||
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
1 | Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 2.25% for Class A shares. Total returns assume reinvestment of all distributions at NAV.
Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities. | |
As of the most recent prospectus, the fund’s total annual operating expense ratio for Class A and Class Y shares was 1.08% and 0.83%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least June 30, 2009 so that total annual fund operating expenses for Class A and Class Y shares do not exceed 0.75% and 0.60%, respectively. These fee waivers and expense reimbursements may be terminated at any time after June 30, 2009, at the discretion of the advisor. Prior to that time, such waivers and reimbursements may not be terminated without the approval of the fund’s board of directors. |
Value of $10,000 Investment1,2,4 as of June 30, 2008
Short Tax Free Fund, Class A (NAV) | ![]() | $ | 11,534 | |||||
Short Tax Free Fund, Class A (POP) | ![]() | $ | 11,275 | |||||
Lehman 3-Year Municipal Bond Index3 | ![]() | $ | 11,886 | |||||
The chart at right illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 10/25/2002 to 6/30/2008) as compared to the Lehman 3-Year Municipal Bond Index3.
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950137-08-011507/c34172c3417114.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
Income from the fund may be subject to state and local taxes. A portion of the fund’s income may be subject to federal income tax, including the alternative minimum tax. Capital gains distributions, if any, will be subject to tax.
3 | An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities between two and four years. |
4 | Performance for Class Y shares is not presented. Performance of this class will vary due to a different expense structure. |
First American Funds 2008 Annual Report 29
Tax Free Fund
Investment Objective: providing maximum current income that is exempt from federal income tax to the extent consistent with the prudent investment risk
How did the fund perform for the fiscal year ended June 30, 2008?
The First American Tax Free Fund (the “fund”), Class Y shares, returned 0.04% for the fiscal year ended June 30, 2008 (Class A shares returned -0.05%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark, the Lehman Municipal Bond Index*, returned 3.23%. Performance for the fund’s peer group, the Lipper General Municipal Debt Funds Objective Average, was 0.55%.
What were the general municipal market conditions during the fiscal year?
The municipal market endured one of its more tumultuous years ever as fallout from the housing debacle rocked market participants. Deterioration within their relatively new mortgage-backed book of business ultimately led to downgrades for several of the major monoline municipal bond insurers. The impaired credit quality and loss of confidence in many of the insurers affected much of the municipal market (use of insurance had become so pervasive that in recent years close to 50% of all new issuance came to market with an insurance wrap). The market was buffeted by irregular bouts of volatility and selling pressure as a number of accounts unwound positions. For example, tax-exempt money funds were forced to exit insured holdings en masse due to minimum ratings and liquidity requirements. To reduce debt, many municipal market investors were pressured to sell longer-maturity bonds when the floating-rate component of their borrowing programs was no longer money-fund eligible (the municipal market had in recent years developed its own form of “carry” trade, in which investors borrow in the short-term money markets and invest in longer maturities, trying to take advantage of the relative steepness of the municipal yield curve in comparison to other fixed-income markets).
Credit spreads (i.e., the differences in yield between higher- and lower-quality debt) were the first to widen as the market anticipated that lower-quality debt would struggle in a slowing economy. Ultimately, however, the insurer debacle cut an even wider swath through the market. Many insured bonds now trade solely based on the creditworthiness of underlying obligors with little or no value attributed to the insurance wrap. Not surprisingly, in this environment natural standalone (i.e., without an insurance wrap) AAA- and AA-rated bonds were generally the best performers for the year.
The municipal yield curve steepened over the past 12 months as yields on shorter maturities fell while longer maturity yields rose slightly. In terms of total return, intermediate maturities generally produced the best returns and longer-maturity bonds were the weakest-performing part of the curve. Although the overall municipal market started to regain its bearings near the end of the fiscal year, high-grade bonds still finished at yields of more than 90% (and in some cases more than 100%) of comparable-maturity Treasuries, which typically indicates that the high-grade bonds represent good value relative to Treasuries.
How did market conditions and investment strategies affect the fund’s performance?
The first half of the funds’ year was a difficult one as lower-quality positions that had benefited performance in previous periods generally had negative impacts, dragging down the fund’s performance for the entire year. A steepening municipal yield curve and widening credit spreads (differences in yields between AAA-rated and lower-rated bonds) caused the fund’s positions in longer maturities, BBB-rated and nonrated bonds and selected healthcare and utility issues to drag down performance relative to its peer group. Relatively smaller positions in short to intermediate maturities and higher-quality general obligations (bonds backed directly by the taxing authority of the municipality) and prerefunded bonds (bonds called by municipalities and backed by treasuries) performed well but were insufficient to offset the negatives noted above.
What strategic moves were made by the fund and why?
As the yield curve steepened, the fund reduced positions in better-performing two- to four-year maturities and made selective reductions in the 20-year area. We added to the eight- to 19-year and 25- to 30-year ranges, where yields represented better relative value. In addition, the fund increased its duration, or sensitivity to interest-rate movements, over the period as municipal yields moved to historically high levels relative to comparable-maturity Treasuries. The fund also reduced better-performing AAA-rated positions and added to BBB-rated holdings as credit spreads reached historically wide levels. Attractive spreads also led us to reduce higher-quality prerefunded bonds and general obligation bonds (bonds backed directly by the taxing authority of the municipality) and add positions in the electric utility sector.
*Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects.
Portfolio Allocation as of June 30, 20081 (% of net assets)
Revenue Bonds3 | 84.2 | % | ||
General Obligations3 | 13.8 | |||
Certificates of Participation3 | 1.2 | |||
Short-Term Investment | 0.5 | |||
Other Assets and Liabilities, Net4 | 0.3 | |||
100.0 | % | |||
Bond Credit Quality Distribution as of June 30, 20082 (% of market value)
AAA | 9.2 | % | ||
AA | 19.3 | |||
A | 30.7 | |||
BBB | 25.1 | |||
Non-Rated | 15.7 | |||
100.0 | % | |||
1 | Portfolio allocations are subject to change and are not recommendations to buy or sell any security. |
2 | Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. If there are multiple ratings for a security, the lowest rating is used unless ratings are provided by all three agencies, in which case the middle rating is used. |
3 | These securities may include bonds that are pre-refunded or escrowed to maturity issues; see the fund’s Notes to Schedule of Investments. As of June 30, 2008, 10.9% of the fund’s net assets were pre-refunded and escrowed to maturity issues. |
4 | Investments typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
30 First American Funds 2008 Annual Report
Annual Performance1,2 as of June 30, 2008
Since Inception | ||||||||||||||||
1 year | 5 years | 10 years | 9/24/2001 | |||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||
Class A | (4 | .31)% | 2.00 | % | 3.82 | % | — | |||||||||
Class C | (1 | .56)% | 2.45 | % | — | 3.57 | % | |||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||
Class A | (0 | .05)% | 2.89 | % | 4.27 | % | — | |||||||||
Class C | (0 | .61)% | 2.45 | % | — | 3.57 | % | |||||||||
Class Y | 0 | .04% | 3.11 | % | 4.48 | % | — | |||||||||
Lehman Municipal Bond Index3 | 3 | .23% | 3.52 | % | 4.90 | % | 4.50 | % | ||||||||
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
1 | Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 4.25% for Class A shares and the maximum contingent deferred sales charge (“CDSC”) for Class C shares for the relevant period. Maximum CDSC is 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.
Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities.
As of the most recent prospectus, the fund’s total annual operating expense ratio for Class A, Class C, and Class Y shares was 1.03%, 1.51%, and 0.78%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least June 30, 2009 so that total annual fund operating expenses for Class A, Class C, and Class Y shares do not exceed 0.75%, 1.35%, and 0.70%, respectively. These fee waivers and expense reimbursements may be terminated at any time after June 30, 2009, at the discretion of the advisor. Prior to that time, such waivers and reimbursements may not be terminated without the approval of the fund’s board of directors.
Value of $10,000 Investment1,2,4 as of June 30, 2008
Tax Free Fund, Class A (NAV) | ![]() | $ | 15,192 | |||
Tax Free Fund, Class A (POP) | ![]() | $ | 14,550 | |||
Lehman Municipal Bond Index3 | ![]() | $ | 16,133 | |||
The chart at right illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 6/30/1998 to 6/30/2008) as compared to the Lehman Municipal Bond Index3.
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950137-08-011507/c34172c3417115.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
Income from the fund may be subject to state and local taxes. A portion of the fund’s income may be subject to federal income tax, including the alternative minimum tax. Capital gains distributions, if any, will be subject to tax.
On September 24, 2001, the First American Tax Free Fund merged with the Firstar National Municipal Bond Fund. Performance history prior to September 24, 2001, represents that of the Firstar National Municipal Bond Fund.
3 | An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities of one year or more. |
4 | Performance for Class C and Class Y shares is not presented. Performance of these classes will vary due to different expense structures. |
First American Funds 2008 Annual Report 31
Expense Examples
As a shareholder of one or more of the funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees; distribution and/or service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2008, to June 30, 2008.
Actual Expenses
For each class of each fund, two lines are presented in the table below — the first line for each class provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular fund and class, to estimate the expenses that you paid over the period. Simply divide your account value in the fund and class by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
For each class of each fund, the second line for each class provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table for each class of each fund is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Arizona Tax Free Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (1/01/08 to | ||||||||||
Value (1/01/08) | Value (6/30/08) | 6/30/08) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 996.00 | $ | 3.72 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.13 | $ | 3.77 | ||||||
Class C Actual2 | $ | 1,000.00 | $ | 994.00 | $ | 5.70 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.14 | $ | 5.77 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 997.20 | $ | 2.48 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.38 | $ | 2.51 | ||||||
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.75%, 1.15%, and 0.50% for Class A, Class C, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/366 (to reflect the one-half year period). |
2 | Based on the actual returns for the six-month period ended June 30, 2008 of -0.40%, -0.60%, and -0.28% for Class A, Class C, and Class Y, respectively. |
California Intermediate Tax Free Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period3 (1/01/08 to | ||||||||||
Value (1/01/08) | Value (6/30/08) | 6/30/08) | ||||||||||
Class A Actual4 | $ | 1,000.00 | $ | 1,002.80 | $ | 3.49 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.38 | $ | 3.52 | ||||||
Class Y Actual4 | $ | 1,000.00 | $ | 1,003.70 | $ | 3.49 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.38 | $ | 3.52 | ||||||
3 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.70% and 0.70% for Class A and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/366 (to reflect the one-half year period). |
4 | Based on the actual returns for the six-month period ended June 30, 2008 of 0.28% and 0.37% for Class A and Class Y, respectively. |
32 First American Funds 2008 Annual Report
California Tax Free Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (1/01/08 to | ||||||||||
Value (1/01/08) | Value (6/30/08) | 6/30/08) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 996.60 | $ | 3.23 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.63 | $ | 3.27 | ||||||
Class C Actual2 | $ | 1,000.00 | $ | 994.10 | $ | 5.70 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.14 | $ | 5.77 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 997.30 | $ | 2.48 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.38 | $ | 2.51 | ||||||
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.65%, 1.15%, and 0.50% for Class A, Class C, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/366 (to reflect the one-half year period). |
2 | Based on the actual returns for the six-month period ended June 30, 2008 of -0.34%, -0.59%, and -0.27% for Class A, Class C, and Class Y, respectively. |
Colorado Intermediate Tax Free Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period3 (1/01/08 to | ||||||||||
Value (1/01/08) | Value (6/30/08) | 6/30/08) | ||||||||||
Class A Actual4 | $ | 1,000.00 | $ | 1,004.10 | $ | 4.24 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.64 | $ | 4.27 | ||||||
Class Y Actual4 | $ | 1,000.00 | $ | 1,003.90 | $ | 3.49 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.38 | $ | 3.52 | ||||||
3 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.85% and 0.70% for Class A and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/366 (to reflect the one-half year period). |
4 | Based on the actual returns for the six-month period ended June 30, 2008 of 0.41% and 0.39% for Class A and Class Y, respectively. |
Colorado Tax Free Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period5 (1/01/08 to | ||||||||||
Value (1/01/08) | Value (6/30/08) | 6/30/08) | ||||||||||
Class A Actual6 | $ | 1,000.00 | $ | 1,009.90 | $ | 3.75 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.13 | $ | 3.77 | ||||||
Class C Actual6 | $ | 1,000.00 | $ | 1,008.00 | $ | 5.74 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.14 | $ | 5.77 | ||||||
Class Y Actual6 | $ | 1,000.00 | $ | 1,010.20 | $ | 2.50 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.38 | $ | 2.51 | ||||||
5 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.75%, 1.15%, and 0.50% for Class A, Class C, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/366 (to reflect the one-half year period). |
6 | Based on the actual returns for the six-month period ended June 30, 2008 of 0.99%, 0.80%, and 1.02% for Class A, Class C, and Class Y, respectively. |
Intermediate Tax Free Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period7 (1/01/08 to | ||||||||||
Value (1/01/08) | Value (6/30/08) | 6/30/08) | ||||||||||
Class A Actual8 | $ | 1,000.00 | $ | 1,005.40 | $ | 3.74 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.13 | $ | 3.77 | ||||||
Class Y Actual8 | $ | 1,000.00 | $ | 1,005.70 | $ | 3.49 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.38 | $ | 3.52 | ||||||
7 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.75% and 0.70% for Class A and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/366 (to reflect the one-half year period). |
8 | Based on the actual returns for the six-month period ended June 30, 2008 of 0.54% and 0.57% for Class A and Class Y, respectively. |
First American Funds 2008 Annual Report 33
Expense Examples continued
Minnesota Intermediate Tax Free Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (1/01/08 to | ||||||||||
Value (1/01/08) | Value (6/30/08) | 6/30/08) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 1,009.70 | $ | 3.75 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.13 | $ | 3.77 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 1,009.00 | $ | 3.50 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.38 | $ | 3.52 | ||||||
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.75% and 0.70% for Class A and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/366 (to reflect the one-half year period). |
2 | Based on the actual returns for the six-month period ended June 30, 2008 of 0.97% and 0.90% for Class A and Class Y, respectively. |
Minnesota Tax Free Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period3 (1/01/08 to | ||||||||||
Value (1/01/08) | Value (6/30/08) | 6/30/08) | ||||||||||
Class A Actual4 | $ | 1,000.00 | $ | 1,001.90 | $ | 4.23 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.64 | $ | 4.27 | ||||||
Class C Actual4 | $ | 1,000.00 | $ | 1,000.40 | $ | 6.71 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.15 | $ | 6.77 | ||||||
Class Y Actual4 | $ | 1,000.00 | $ | 1,003.60 | $ | 3.49 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.38 | $ | 3.52 | ||||||
3 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.85%, 1.35%, and 0.70% for Class A, Class C, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/366 (to reflect the one-half year period). |
4 | Based on the actual returns for the six-month period ended June 30, 2008 of 0.19%, 0.04%, and 0.36% for Class A, Class C, and Class Y, respectively. |
Missouri Tax Free Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period5 (1/01/08 to | ||||||||||
Value (1/01/08) | Value (6/30/08) | 6/30/08) | ||||||||||
Class A Actual6 | $ | 1,000.00 | $ | 1,001.40 | $ | 4.73 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.14 | $ | 4.77 | ||||||
Class C Actual6 | $ | 1,000.00 | $ | 998.60 | $ | 6.71 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.15 | $ | 6.77 | ||||||
Class Y Actual6 | $ | 1,000.00 | $ | 1,001.80 | $ | 3.48 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.38 | $ | 3.52 | ||||||
5 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.95%, 1.35%, and 0.70% for Class A, Class C, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/366 (to reflect the one-half year period). |
6 | Based on the actual returns for the six-month period ended June 30, 2008 of 0.14%, -0.14%, and 0.18% for Class A, Class C, and Class Y, respectively. |
34 First American Funds 2008 Annual Report
Nebraska Tax Free Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (1/01/08 to | ||||||||||
Value (1/01/08) | Value (6/30/08) | 6/30/08) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 1,005.30 | $ | 3.74 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.13 | $ | 3.77 | ||||||
Class C Actual2 | $ | 1,000.00 | $ | 1,003.40 | $ | 5.73 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.14 | $ | 5.77 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 1,006.60 | $ | 2.49 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.38 | $ | 2.51 | ||||||
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.75%, 1.15%, and 0.50% for Class A, Class C, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/366 (to reflect the one-half year period). |
2 | Based on the actual returns for the six-month period ended June 30, 2008 of 0.53%, 0.34%, and 0.66% for Class A, Class C, and Class Y, respectively. |
Ohio Tax Free Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period3 (1/01/08 to | ||||||||||
Value (1/01/08) | Value (6/30/08) | 6/30/08) | ||||||||||
Class A Actual4 | $ | 1,000.00 | $ | 999.70 | $ | 3.73 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.13 | $ | 3.77 | ||||||
Class C Actual4 | $ | 1,000.00 | $ | 997.70 | $ | 5.71 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.14 | $ | 5.77 | ||||||
Class Y Actual4 | $ | 1,000.00 | $ | 999.90 | $ | 2.49 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.38 | $ | 2.51 | ||||||
3 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.75%, 1.15%, and 0.50% for Class A, Class C, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/366 (to reflect the one-half year period). |
4 | Based on the actual returns for the six-month period ended June 30, 2008 of -0.03%, -0.23%, and -0.01% for Class A, Class C, and Class Y, respectively. |
Oregon Intermediate Tax Free Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period5 (1/01/08 to | ||||||||||
Value (1/01/08) | Value (6/30/08) | 6/30/08) | ||||||||||
Class A Actual6 | $ | 1,000.00 | $ | 1,005.00 | $ | 4.24 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.64 | $ | 4.27 | ||||||
Class Y Actual6 | $ | 1,000.00 | $ | 1,004.70 | $ | 3.49 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.38 | $ | 3.52 | ||||||
5 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.85% and 0.70% for Class A and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/366 (to reflect the one-half year period). |
6 | Based on the actual returns for the six-month period ended June 30, 2008 of 0.50% and 0.47% for Class A and Class Y, respectively. |
Short Tax Free Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period7 (1/01/08 to | ||||||||||
Value (1/01/08) | Value (6/30/08) | 6/30/08) | ||||||||||
Class A Actual8 | $ | 1,000.00 | $ | 1,013.50 | $ | 3.75 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.13 | $ | 3.77 | ||||||
Class Y Actual8 | $ | 1,000.00 | $ | 1,014.30 | $ | 3.00 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.88 | $ | 3.02 | ||||||
7 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.75% and 0.60% for Class A and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/366 (to reflect the one-half year period). |
8 | Based on the actual returns for the six-month period ended June 30, 2008 of 1.35% and 1.43% for Class A and Class Y, respectively. |
First American Funds 2008 Annual Report 35
Expense Examples concluded
Tax Free Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (1/01/08 to | ||||||||||
Value (1/01/08) | Value (6/30/08) | 6/30/08) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 997.30 | $ | 3.72 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.13 | $ | 3.77 | ||||||
Class C Actual2 | $ | 1,000.00 | $ | 994.30 | $ | 6.69 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.15 | $ | 6.77 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 997.50 | $ | 3.48 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.38 | $ | 3.52 | ||||||
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.75%, 1.35%, and 0.70% for Class A, Class C, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/366 (to reflect the one-half year period). |
2 | Based on the actual returns for the six-month period ended June 30, 2008 of -0.27%, -0.57%, and -0.25% for Class A, Class C, and Class Y, respectively. |
36 First American Funds 2008 Annual Report
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Directors
First American Investment Funds, Inc.
We have audited the accompanying statements of assets and liabilities, including the schedules of investments of the Arizona Tax Free, California Intermediate Tax Free, California Tax Free, Colorado Intermediate Tax Free, Colorado Tax Free, Intermediate Tax Free, Minnesota Intermediate Tax Free, Minnesota Tax Free, Missouri Tax Free, Nebraska Tax Free, Ohio Tax Free, Oregon Intermediate Tax Free, Short Tax Free, and Tax Free Funds (each a series of First American Investment Funds, Inc.) (the “funds”) as of June 30, 2008, the related statements of operations, changes in net assets and the financial highlights for each of the periods indicated therein. These financial statements and financial highlights are the responsibility of the funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the funds’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designating audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included verification by examination of securities held by the custodian as of June 30, 2008 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 as referred to above present fairly, in all material respects, the financial position of each of the funds listed above of First American Investment Funds, Inc. at June 30, 2008, the results of their operations, the changes in their net assets and their financial highlights for each of the periods indicated therein, in conformity with U.S. generally accepted accounting principles.
![-s- Ernst & Young LLP](https://capedge.com/proxy/N-CSR/0000950137-08-011507/c34172ernstyo.gif)
Minneapolis, Minnesota
August 20, 2008
First American Funds 2008 Annual Report 37
Schedule of Investments June 30, 2008, all dollars are rounded to thousands (000)
Arizona Tax Free Fund | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Municipal Bonds – 98.2% | ||||||||
Revenue Bonds – 77.1% | ||||||||
Continuing Care Retirement Communities – 9.9% | ||||||||
Arizona Health Facilities Authority, The Terraces Project, Series A, Pre-refunded 11/15/2013 @ 101 | ||||||||
7.500%, 11/15/2023 ◊ | $ | 200 | $ | 233 | ||||
Illinois Finance Authority, Franciscan Communities, Series A | ||||||||
5.500%, 05/15/2037 | 400 | 337 | ||||||
Illinois Finance Authority, Three Crowns Park Plaza, Series A | ||||||||
5.875%, 02/15/2026 | 100 | 91 | ||||||
Maricopa County Industrial Development Authority, Senior Living Health Care Revenue, Immanuel Care, Series A (GNMA) | ||||||||
4.850%, 08/20/2026 | 750 | 726 | ||||||
5.000%, 08/20/2035 | 1,000 | 964 | ||||||
Tempe Industrial Development Authority, Friendship Village Project, Series A | ||||||||
5.375%, 12/01/2013 | 200 | 196 | ||||||
2,547 | ||||||||
Education – 10.1% | ||||||||
Anderson, Indiana, Economic Development Revenue, Anderson University Project | ||||||||
5.000%, 10/01/2032 | 425 | 363 | ||||||
Arizona Board of Regents, University of Arizona, Series 2008A | ||||||||
4.000%, 06/01/2015 | 35 | 36 | ||||||
Gilbert Industrial Development Authority, Southwest Student Services, Pre-refunded 02/01/2009 @ 102 | ||||||||
5.850%, 02/01/2019 ◊ | 1,000 | 1,043 | ||||||
Glendale Industrial Development Authority, Midwestern University | ||||||||
5.250%, 05/15/2014 | 140 | 146 | ||||||
5.000%, 05/15/2031 | 500 | 476 | ||||||
Glendale Industrial Development Authority, Midwestern University, Series A, Pre-refunded 05/15/2011 @ 101 | ||||||||
5.750%, 05/15/2021 ◊ | 250 | 269 | ||||||
Pima County Industrial Development Authority, Education Revenue, American Charter Schools Foundation, Series A | ||||||||
5.500%, 07/01/2026 | 275 | 253 | ||||||
2,586 | ||||||||
Healthcare – 22.5% | ||||||||
Arizona Health Facilities Authority, Banner Health, Series A | ||||||||
5.000%, 01/01/2021 | 280 | 284 | ||||||
Arizona Health Facilities Authority, Blood Systems Incorporated | ||||||||
4.750%, 04/01/2025 | 300 | 279 | ||||||
Arizona Health Facilities Authority, John C. Lincoln Health Network, Pre-refunded 12/01/2012 @ 101 | ||||||||
5.750%, 12/01/2032 ◊ | 150 | 165 | ||||||
Glendale Industrial Development Authority | ||||||||
4.625%, 12/01/2027 | 200 | 171 | ||||||
Glendale Industrial Development Authority, John C. Lincoln Health Network | ||||||||
5.000%, 12/01/2032 | 100 | 87 | ||||||
Halifax Medical Center, Florida Hospital Revenue, Series A | ||||||||
5.000%, 06/01/2038 | 375 | 325 | ||||||
Indiana Health & Educational Facility Financing Authority, Schneck Memorial Hospital Project, Series A | ||||||||
5.250%, 02/15/2030 | 400 | 390 | ||||||
Iowa Finance Authority, Health Facilities Revenue, Care Initiatives Project, Series A | ||||||||
5.000%, 07/01/2020 | 80 | 71 | ||||||
Johnson City, Tennessee Health & Elderly Facilities Authority, Pre-refunded 07/01/2012 @ 103 | ||||||||
7.500%, 07/01/2025 ◊ | 100 | 117 | ||||||
Maricopa County Hospital, Sun Health Corporation | ||||||||
5.000%, 04/01/2025 | 200 | 188 | ||||||
Maricopa County Industrial Development Authority, Catholic Healthcare West, Series A | ||||||||
5.375%, 07/01/2023 | 500 | 501 | ||||||
5.250%, 07/01/2032 | 100 | 98 | ||||||
Scottsdale Industrial Development Authority, Scottsdale Healthcare, Pre-refunded 12/01/2011 @ 101 | ||||||||
5.700%, 12/01/2021 ◊ | 1,000 | 1,088 | ||||||
Scottsdale Industrial Development Authority, Scottsdale Healthcare, Series A | ||||||||
5.250%, 09/01/2030 | 550 | 537 | ||||||
University Medical Center Corporation, Hospital Revenue | ||||||||
5.000%, 07/01/2016 | 250 | 248 | ||||||
5.000%, 07/01/2024 | 500 | 469 | ||||||
Yavapai Industrial Development Authority, Yavapai Regional Medical Center, Series A (RAAI) | ||||||||
5.250%, 08/01/2021 | 375 | 372 | ||||||
6.000%, 08/01/2033 | 100 | 100 | ||||||
Yuma Industrial Development Authority, Yuma Regional Medical Center, Escrowed to Maturity (MBIA) | ||||||||
5.500%, 08/01/2017 § | 250 | 270 | ||||||
5,760 | ||||||||
Housing – 3.9% | ||||||||
Douglas Community Housing Corporation, Rancho La Perilla, Series A (GNMA) | ||||||||
5.900%, 07/20/2020 | 500 | 516 | ||||||
6.000%, 07/20/2025 | 475 | 484 | ||||||
Phoenix Industrial Development Authority, The Phoenix Authority, Series 1A (FHLMC) (FNMA) (GNMA) | ||||||||
5.875%, 06/01/2016 | 5 | 5 | ||||||
1,005 | ||||||||
Lease Revenue – 5.1% | ||||||||
Arizona Game & Fish Department, Administration Building Project | ||||||||
4.500%, 07/01/2032 | 200 | 176 | ||||||
Peoria Municipal Development Authority | ||||||||
5.000%, 07/01/2015 | 310 | 334 | ||||||
Pinal County Industrial Development Authority Correctional Facilities Contract, Florence West Prison Project, Series A (ACA) | ||||||||
5.000%, 10/01/2016 | 250 | 241 |
The accompanying notes are an integral part of the financial statements.
38 First American Funds 2008 Annual Report
Arizona Tax Free Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Puerto Rico Public Buildings Authority, Government Facilities, Series M (COMGTY) | ||||||||
6.250%, 07/01/2031 | $ | 500 | $ | 546 | ||||
1,297 | ||||||||
Miscellaneous – 4.2% | ||||||||
Arizona Student Loan Acquisition Authority, Series A (AMT) | ||||||||
5.900%, 05/01/2024 | 100 | 102 | ||||||
Greater Arizona Infrastructure Development Authority, Series A (MBIA) | ||||||||
5.625%, 08/01/2020 | 200 | 204 | ||||||
Greater Arizona Infrastructure Development Authority, Series B | ||||||||
5.250%, 08/01/2026 | 750 | 757 | ||||||
1,063 | ||||||||
Tax Revenue – 11.8% | ||||||||
Greater Arizona Development Authority, Infrastructure Revenue, Pinal County Road Project, Series 1 (MBIA) | ||||||||
4.500%, 08/01/2025 | 750 | 721 | ||||||
Marana, Tangerine Farms Road Improvement District | ||||||||
4.600%, 01/01/2026 | 250 | 224 | ||||||
Peoria Improvement District #0601 | ||||||||
4.250%, 01/01/2022 | 465 | 438 | ||||||
Phoenix Civic Improvements, Excise Tax Revenue, Municipal Courthouse Project, Series A, Pre-refunded 07/01/2009 @ 101 | ||||||||
5.750%, 07/01/2016 ◊ | 300 | 314 | ||||||
Queen Creek Improvement District #001 | ||||||||
5.000%, 01/01/2020 | 300 | 291 | ||||||
Scottsdale Municipal Property Corporation, Excise Tax Revenue, Convertible CABs, Series C (AMBAC) | ||||||||
0.000% through 06/30/2013, thereafter 4.550%, 07/01/2021 ◗ | 500 | 384 | ||||||
Tempe, Excise Tax Revenue, Series A, Pre-refunded 07/01/2009 @ 100 | ||||||||
5.625%, 07/01/2020 ◊ | 300 | 312 | ||||||
Yuma Improvement District #68 | ||||||||
4.700%, 01/01/2021 | 365 | 342 | ||||||
3,026 | ||||||||
Utilities – 9.6% | ||||||||
Cottonwood Water Revenue (XLCA) | ||||||||
5.000%, 07/01/2017 | 250 | 255 | ||||||
Gilbert Water Resource Municipal Property Corporation, Wastewater System & Utility Revenue | ||||||||
5.000%, 04/01/2017 | 195 | 191 | ||||||
Puerto Rico Commonwealth Aqueduct & Sewer Authority, Series A (AGTY) | ||||||||
5.000%, 07/01/2028 | 1,000 | 1,014 | ||||||
Salt Verde Financial Corporation, Gas Revenue | ||||||||
5.000%, 12/01/2037 | 550 | 479 | ||||||
Tucson Water, Series 1994-A (MBIA) | ||||||||
6.250%, 07/01/2016 | 170 | 194 | ||||||
Yavapai Industrial Development Authority, Waste Management Incorporated Project, Series A-1 (AMT) | ||||||||
4.900%, 03/01/2028 | 400 | 331 | ||||||
2,464 | ||||||||
Total Revenue Bonds | 19,748 | |||||||
General Obligations – 15.5% | ||||||||
Centerra Community Facilities Distributors | ||||||||
5.500%, 07/15/2029 | 192 | 168 | ||||||
Chandler, Pre-refunded 07/01/2010 @ 101 | ||||||||
5.800%, 07/01/2018 ◊ | 250 | 267 | ||||||
Greenlee County School District #18, Morenci | ||||||||
5.000%, 07/01/2012 | 165 | 170 | ||||||
Phoenix, Pre-refunded 07/01/2010 @ 100 | ||||||||
5.250%, 07/01/2019 ◊ | 350 | 367 | ||||||
5.375%, 07/01/2025 ◊ | 750 | 789 | ||||||
Pima County Unified School District #1, Tucson Project of 2004, Series C (FGIC) | ||||||||
5.000%, 07/01/2027 | 1,000 | 986 | ||||||
Pinal County Unified School District #1, Florence School Improvement Project 2006, Series A (FGIC) | ||||||||
5.000%, 07/01/2027 | 1,000 | 943 | ||||||
Tucson | ||||||||
5.500%, 07/01/2018 | 250 | 276 | ||||||
Total General Obligations | 3,966 | |||||||
Certificates of Participation – 5.6% | ||||||||
Arizona Board of Regents, Series D (AMBAC) | ||||||||
4.000%, 06/01/2027 | 745 | 662 | ||||||
Northern Arizona University, Research Projects (AMBAC) | ||||||||
5.000%, 09/01/2023 | 140 | 141 | ||||||
Pinal County | ||||||||
5.000%, 12/01/2014 | 400 | 417 | ||||||
Tucson (MBIA) | ||||||||
5.500%, 07/01/2015 | 200 | 203 | ||||||
Total Certificates of Participation | 1,423 | |||||||
Total Municipal Bonds | ||||||||
(Cost $25,513) | 25,137 | |||||||
Short-Term Investment – 0.3% | ||||||||
Federated Arizona Municipal Money Market Fund | ||||||||
(Cost $69) | 68,943 | 69 | ||||||
Total Investments – 98.5% | ||||||||
(Cost $25,582) | 25,206 | |||||||
Other Assets and Liabilities, Net – 1.5% | 397 | |||||||
Total Net Assets – 100.0% | $ | 25,603 | ||||||
◊ | Pre-refunded issues are typically backed by U.S. government obligations, which secure the timely payment of principal and interest. These bonds mature at the call date and price indicated. | |
§ | Escrowed to Maturity issues are typically backed by U.S. government obligations, which secure the timely payment of principal and interest. If callable, these bonds may still be subject to call prior to maturity. | |
◗ | Convertible Capital Appreciation Bonds (Convertible CABs) – These bonds initially pay no interest but accrete in value from the date of issuance through the conversion date, at which time the bonds start to accrue and pay interest on a semiannual basis until final maturity. |
ACA – | American Capital Assurance |
AGTY – | Assured Guaranty |
AMBAC – | American Municipal Bond Assurance Corporation |
AMT – | Alternative Minimum Tax. As of June 30, 2008, the aggregate market value of securities subject to AMT was $433 which represents 1.7% of total net assets. |
COMGTY – | Commonwealth Guaranty |
FGIC – | Financial Guaranty Insurance Corporation |
FHLMC – | Federal Home Loan Mortgage Corporation |
FNMA – | Federal National Mortgage Association |
GNMA – | Government National Mortgage Association |
MBIA – | Municipal Bond Insurance Association |
First American Funds 2008 Annual Report 39
Schedule of Investments June 30, 2008, all dollars are rounded to thousands (000)
Arizona Tax Free Fund (concluded)
RAAI – | Radian Asset Assurance Inc. |
XLCA – | XL Capital Assurance Inc. |
Schedule of Open Futures Contracts
Number of | Notional | |||||||||||||
Contracts | Contract | Settlement | Unrealized | |||||||||||
Description | Sold | Value | Month | Depreciation | ||||||||||
U.S. Treasury 10 Year Note Futures* | (20 | ) | $ | (2,278 | ) | September 2008 | $ | (1 | ) | |||||
* | On July 1, 2008, U.S. Treasury bills were deposited as initial margin on futures contracts purchased on June 30, 2008. See note 2 in Notes to Financial Statements. |
Arizona Tax Free Fund (concluded)
California Intermediate Tax Free Fund | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Municipal Bonds – 92.8% | ||||||||
Revenue Bonds – 69.8% | ||||||||
Continuing Care Retirement Communities – 2.6% | ||||||||
California Health Facilities Financing Authority, Paradise Valley Estates (CMI) | ||||||||
4.375%, 01/01/2012 | $ | 540 | $ | 551 | ||||
California Statewide Communities Development Authority, Los Angeles Jewish Home (CMI) | ||||||||
5.000%, 11/15/2012 | 500 | 524 | ||||||
La Verne, Brethren Hillcrest Homes, Series B (ACA) | ||||||||
5.600%, 02/15/2033 | 500 | 438 | ||||||
1,513 | ||||||||
Economic Development – 1.8% | ||||||||
Port of Oakland, Series B (MBIA) | ||||||||
5.000%, 11/01/2018 | 1,000 | 1,040 | ||||||
Education – 10.3% | ||||||||
California Educational Facilities Authority, Claremont Graduate University, Series A | ||||||||
5.000%, 03/01/2020 | 240 | 244 | ||||||
California Educational Facilities Authority, Golden Gate University | ||||||||
5.000%, 10/01/2020 | 505 | 482 | ||||||
California Educational Facilities Authority, Lutheran University, Series C | ||||||||
4.750%, 10/01/2015 | 675 | 670 | ||||||
California Educational Facilities Authority, Series B, Escrowed to Maturity | ||||||||
6.000%, 06/01/2010 § | 85 | 90 | ||||||
6.000%, 06/01/2010 § | 410 | 435 | ||||||
California Educational Facilities Authority, University of Redlands | ||||||||
5.000%, 10/01/2020 | 500 | 505 | ||||||
5.000%, 08/01/2028 | 500 | 479 | ||||||
California Educational Facilities Authority, University of the Pacific | ||||||||
5.000%, 11/01/2015 | 300 | 317 | ||||||
California Educational Facilities Authority, Woodbury University | ||||||||
4.400%, 01/01/2015 | 450 | 434 | ||||||
California Municipal Finance Authority, Loma Linda University | ||||||||
4.250%, 04/01/2018 | 300 | 292 | ||||||
California Municipal Finance Authority, Biola University | ||||||||
5.000%, 10/01/2018 | 800 | 786 | ||||||
California State Higher Educational Facilities Authority, University of Redlands, Series A, Escrowed to Maturity | ||||||||
5.550%, 06/01/2009 § | 225 | 233 | ||||||
California State Higher Educational Facilities Authority, University of Redlands, Series A, Pre-refunded 06/01/2010 @ 101 | ||||||||
5.700%, 06/01/2011 ◊ | 250 | 266 | ||||||
5.750%, 06/01/2012 ◊ | 260 | 277 | ||||||
California Statewide Communities Development Authority, Viewpoint Schools (ACA) | ||||||||
4.125%, 10/01/2014 | 405 | 381 | ||||||
5,891 | ||||||||
Healthcare – 17.0% | ||||||||
Association of Bay Area Governments Financing Authority, Children’s Hospital, Series A | ||||||||
4.500%, 12/01/2019 | 425 | 402 |
The accompanying notes are an integral part of the financial statements.
40 First American Funds 2008 Annual Report
California Intermediate Tax Free Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
California Health Facilities Financing Authority, Casa Colina | ||||||||
5.500%, 04/01/2013 | $ | 300 | $ | 308 | ||||
California Health Facilities Financing Authority, Catholic Healthcare West, Series G | ||||||||
5.500%, 07/01/2025 | 1,000 | 1,016 | ||||||
California Health Facilities Financing Authority, Catholic Healthcare West, Series I, Mandatory Put 07/01/2014 @ 100 | ||||||||
4.950%, 07/01/2026 | 450 | 463 | ||||||
California Health Facilities Financing Authority, Marshall Medical Center, Series A (CMI) | ||||||||
4.750%, 11/01/2019 | 1,200 | 1,204 | ||||||
California Health Facilities Financing Authority, Valleycare Medical Center, Series A, Pre-refunded 05/01/2012 @ 100 (CMI) | ||||||||
4.625%, 05/01/2013 ◊ | 300 | 315 | ||||||
California Statewide Communities Development Authority, Daughters of Charity Health, Series G | ||||||||
5.250%, 07/01/2013 | 500 | 511 | ||||||
California Statewide Communities Development Authority, Elder Care Alliance, Series A, Escrowed to Maturity | ||||||||
7.250%, 11/15/2011 § | 355 | 380 | ||||||
California Statewide Communities Development Authority, Henry Mayo Newhall Memorial Hospital (CMI) | ||||||||
5.000%, 10/01/2020 | 500 | 504 | ||||||
California Statewide Communities Development Authority, Kaiser Permanente, Series C, Mandatory Put 06/01/2012 @ 100 | ||||||||
3.850%, 11/01/2029 | 1,000 | 995 | ||||||
California Statewide Communities Development Authority, St. Joseph, Series B (FGIC) | ||||||||
5.500%, 07/01/2027 | 250 | 254 | ||||||
California Statewide Communities Development Authority, St. Joseph, Series C (FGIC) | ||||||||
5.500%, 07/01/2027 | 500 | 509 | ||||||
Loma Linda University Medical Center, Hospital Revenue, Series A | ||||||||
5.000%, 12/01/2015 | 600 | 609 | ||||||
Marysville Hospital, Fremont Rideout Health Project, Series A (AMBAC) | ||||||||
5.000%, 01/01/2010 | 500 | 514 | ||||||
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities, Hospital de la Concepcion, Series A | ||||||||
5.500%, 11/15/2009 | 650 | 671 | ||||||
Sierra View Health Care District | ||||||||
5.250%, 07/01/2024 | 500 | 488 | ||||||
Turlock California Health Facilities Revenue, Emanuel Medical Center | ||||||||
5.000%, 10/15/2024 | 700 | 636 | ||||||
9,779 | ||||||||
Housing – 2.7% | ||||||||
Aztec Shops, California State Auxiliary Organization, San Diego State University | ||||||||
5.400%, 09/01/2011 | 1,035 | 1,064 | ||||||
California Rural Home Mortgage Finance Authority, Single Family Mortgage, Series D (AMT) (FNMA) (GNMA) | ||||||||
5.250%, 06/01/2010 | 5 | 5 | ||||||
California Statewide Communities Development Authority, Equity Residential, Series B, Mandatory Put 06/15/2009 @ 100 | ||||||||
5.200%, 12/01/2029 | 500 | 500 | ||||||
1,569 | ||||||||
Lease Revenue – 8.4% | ||||||||
Apple Valley Public Financing Authority, Town Hall Annex Project, Series A (AMBAC) | ||||||||
4.500%, 09/01/2017 | 535 | 538 | ||||||
California State Public Works Board, California Community Colleges, Series A | ||||||||
4.875%, 12/01/2018 | 200 | 203 | ||||||
California State Public Works Board, Department of Corrections & Rehabilitation, Series F (FGIC) | ||||||||
5.000%, 11/01/2016 | 1,500 | 1,574 | ||||||
California State Public Works Board, Department of Health Services, Series A (MBIA) | ||||||||
5.200%, 11/01/2012 | 500 | 515 | ||||||
California State Public Works Board, Department of Mental Health, Series A | ||||||||
5.500%, 06/01/2016 | 540 | 584 | ||||||
Golden State Tobacco Securitization Corporation, California Tobacco Settlement, Convertible CABs, Series A (FSA) | ||||||||
0.000% through 06/01/2010, thereafter 4.550%, 06/01/2022 ◗ | 150 | 125 | ||||||
Los Angeles Community Redevelopment Agency, Manchester Social Services Project (AMBAC) | ||||||||
5.000%, 09/01/2016 | 1,200 | 1,255 | ||||||
4,794 | ||||||||
Miscellaneous – 4.9% | ||||||||
California Infrastructure & Economic Development, Salvation Army Western (AMBAC) | ||||||||
4.000%, 09/01/2018 | 1,000 | 973 | ||||||
Golden West Schools Financing Authority, Series A (MBIA) | ||||||||
5.700%, 02/01/2013 | 720 | 788 | ||||||
5.750%, 02/01/2014 | 520 | 576 | ||||||
Golden West Schools Financing Authority, Series A, Zero Coupon Bond (MBIA) | ||||||||
4.017%, 02/01/2012 ¤ | 535 | 464 | ||||||
2,801 | ||||||||
Recreational Facility Authority – 1.4% | ||||||||
California Infrastructure & Economic Development, Performing Arts Center | ||||||||
4.000%, 12/01/2015 | 220 | 221 | ||||||
California State University Fresno Association, Auxiliary Organization Event Center, Pre-refunded 07/01/2012 @ 101 | ||||||||
6.000%, 07/01/2022 ◊ | 500 | 555 | ||||||
776 | ||||||||
Tax Revenue – 9.0% | ||||||||
Antioch Area Public Facilities Financing Agency, Special Tax, Community Facilities District #1989-1 (AMBAC) | ||||||||
4.000%, 08/01/2018 | 1,000 | 970 | ||||||
Corona Redevelopment Agency, Tax Allocation, Temescal Canyon Project Area, Series A (AGTY) | ||||||||
4.125%, 11/01/2017 | 205 | 207 |
First American Funds 2008 Annual Report 41
Schedule of Investments June 30, 2008, all dollars are rounded to thousands (000)
California Intermediate Tax Free Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Long Beach Community Facilities District #5, Towne Center Special Tax, Pre-refunded 10/01/2008 @ 100 | ||||||||
6.100%, 10/01/2012 ◊ | $ | 165 | $ | 167 | ||||
Murrieta Community Facilities District #2, The Oaks Area | ||||||||
5.750%, 09/01/2020 | 250 | 249 | ||||||
Norco, Special Tax, Community Facilities District #97-1 (AGTY) | ||||||||
4.500%, 10/01/2016 | 260 | 270 | ||||||
Palm Desert Financing Authority, Tax Allocation Revenue, Project Area #4, Series A (MBIA) | ||||||||
4.750%, 10/01/2013 | 500 | 522 | ||||||
Poway Unified School District, Special Tax, Community Facilities District #6-4 | ||||||||
5.000%, 09/01/2023 | 400 | 384 | ||||||
Rancho Cucamonga Redevelopment Agency, Series A (MBIA) | ||||||||
4.125%, 09/01/2018 | 310 | 301 | ||||||
San Bernardino Redevelopment Agency, Tax Allocation Revenue, San Sevaine Redevelopment Project, Series A (RAAI) | ||||||||
5.000%, 09/01/2016 | 500 | 499 | ||||||
San Francisco City & County Redevelopment Financing Authority, Tax Allocation Revenue, Mission Bay North Redevelopment Project, Series B (RAAI) | ||||||||
4.000%, 08/01/2012 | 295 | 291 | ||||||
4.100%, 08/01/2014 | 325 | 316 | ||||||
4.250%, 08/01/2016 | 250 | 239 | ||||||
Sand City Redevelopment Agency Tax Allocation Revenue, Series A (AGTY) | ||||||||
4.000%, 11/01/2019 | 315 | 313 | ||||||
Soledad Redevelopment Agency, Tax Allocation Revenue, Series A (XLCA) | ||||||||
4.500%, 12/01/2016 | 205 | 206 | ||||||
South Tahoe Redevelopment Agency, Special Tax, Community Facilities District #2001-1 | ||||||||
4.600%, 10/01/2018 | 280 | 251 | ||||||
5,185 | ||||||||
Transportation – 1.3% | ||||||||
Alameda Corridor Transportation Authority, Zero Coupon Bond (AMBAC) | ||||||||
4.570%, 10/01/2014 ¤ | 1,000 | 754 | ||||||
Utilities – 10.4% | ||||||||
Banning Water Utility Authority, Enterprise Revenue, Referendum and Improvement Projects (FGIC) | ||||||||
5.000%, 11/01/2020 | 1,025 | 1,034 | ||||||
California Municipal Finance Authority, Solid Waste Disposal Revenue, Waste Management Incorporated Project, Mandatory Put 09/01/2009 @ 100 (AMT) | ||||||||
4.100%, 09/01/2014 | 750 | 748 | ||||||
California Pollution Control Financing Authority, Solid Waste Disposal Revenue, Waste Management Incorporated Project, Series B (AMT) | ||||||||
5.000%, 07/01/2027 | 250 | 217 | ||||||
California Statewide Communities Development Authority, Pollution Control Revenue, Southern California Edison Company, Series A, Mandatory Put 04/01/2013 @ 100 (XLCA) | ||||||||
4.100%, 04/01/2028 | 500 | 489 | ||||||
California Statewide Communities Development Authority, Water Revenue, Series B (FSA) | ||||||||
4.250%, 10/01/2017 | 285 | 289 | ||||||
Chino Basin Regional Financing Authority, Inland Empire Utility Agency Sewer Project, Pre-refunded 11/01/2009 @ 101 (MBIA) | ||||||||
5.200%, 11/01/2011 ◊ | 405 | 425 | ||||||
Imperial, Wastewater Treatment Facility (FGIC) | ||||||||
5.000%, 10/15/2020 | 1,000 | 1,003 | ||||||
Richmond Wastewater Systems, Pre-refunded 08/01/2009 @ 102 (FGIC) | ||||||||
5.200%, 08/01/2011 ◊ | 500 | 527 | ||||||
Signal Hill, Water Revenue (MBIA) | ||||||||
4.375%, 11/01/2018 | 345 | 346 | ||||||
Southern California Public Power Authority, Natural Gas Project Revenue, Project #1, Series A | ||||||||
5.250%, 11/01/2020 | 500 | 500 | ||||||
Whittier Utility Authority (MBIA) | ||||||||
4.400%, 06/01/2017 | 305 | 311 | ||||||
4.500%, 06/01/2018 | 65 | 66 | ||||||
5,955 | ||||||||
Total Revenue Bonds | 40,057 | |||||||
General Obligations – 19.4% | ||||||||
Alisal Union School District, Series C, Zero Coupon Bond (FGIC) | ||||||||
2.619%, 08/01/2008 ¤ | 860 | 858 | ||||||
Baldwin Park Unified School District Election of 2002, Zero Coupon Bond (AMBAC) | ||||||||
5.354%, 08/01/2020 ¤ | 1,000 | 528 | ||||||
California State | ||||||||
5.000%, 02/01/2017 | 1,000 | 1,041 | ||||||
5.125%, 04/01/2024 | 500 | 509 | ||||||
California State, Water Reservoir Development, Series Q | ||||||||
4.750%, 03/01/2020 | 200 | 200 | ||||||
Foothill-De Anza Community College District | ||||||||
6.000%, 08/01/2011 | 300 | 321 | ||||||
Fresno Unified School District, Series A (MBIA) | ||||||||
6.050%, 08/01/2011 | 500 | 539 | ||||||
Grant Joint Union High School District, Capital Appreciation, Election 2006, Zero Coupon Bond (FSA) | ||||||||
5.272%, 08/01/2026 ¤ | 650 | 254 | ||||||
Jefferson Union High School District, San Mateo County, Series A (MBIA) | ||||||||
6.250%, 02/01/2014 | 300 | 322 | ||||||
Los Angeles Unified School District Election of 2005, Series C (AMBAC) | ||||||||
5.000%, 07/01/2015 | 1,000 | 1,072 | ||||||
Oakland, Series A (MBIA) | ||||||||
5.000%, 01/15/2026 | 185 | 187 | ||||||
Pomona Unified School District, Series A (MBIA) | ||||||||
6.150%, 08/01/2015 | 500 | 551 | ||||||
Puerto Rico Commonwealth, Series B (FSA) | ||||||||
6.500%, 07/01/2015 | 1,000 | 1,145 | ||||||
Redondo Beach Unified School District, Election 2008, Series A | ||||||||
4.250%, 08/01/2021 | 545 | 534 | ||||||
Roseville Joint Union High School District, Election of 2004, Series B (FGIC) | ||||||||
5.000%, 08/01/2018 | 550 | 579 |
The accompanying notes are an integral part of the financial statements.
42 First American Funds 2008 Annual Report
California Intermediate Tax Free Fund (continued) | ||||||||
DESCRIPTION | PAR/SHARES | VALUE | ||||||
Roseville Joint Union High School District, Series E | ||||||||
5.200%, 08/01/2020 | $ | 600 | $ | 621 | ||||
San Mateo Unified High School District, Series B, Zero Coupon Bond (FGIC) | ||||||||
4.757%, 09/01/2017 ¤ | 1,000 | 650 | ||||||
Upland Unified School District, Election 2008, Series A (FSA) | ||||||||
4.000%, 08/01/2020 | 150 | 146 | ||||||
Walnut Valley Unified School District, Series A, Pre-refunded 08/01/2010 @ 102 (FSA) | ||||||||
5.000%, 08/01/2012 ◊ | 255 | 272 | ||||||
West Covina Unified School District, Series A (MBIA) | ||||||||
5.350%, 02/01/2020 | 770 | 782 | ||||||
Total General Obligations | 11,111 | |||||||
Certificates of Participation – 3.6% | ||||||||
Grossmont Unified High School District, Pre-refunded 09/01/2008 @ 102 (FSA) | ||||||||
5.400%, 09/01/2013 ◊ | 300 | 308 | ||||||
Kern County Board of Education, Series A (MBIA) | ||||||||
5.200%, 05/01/2012 | 325 | 334 | ||||||
Los Angeles County Schools, Regionalized Business Services Financing Project, Series A | ||||||||
5.000%, 09/01/2008 | 200 | 201 | ||||||
Los Angeles, Sonnenblick Del Rio, West Los Angeles (AMBAC) | ||||||||
5.375%, 11/01/2010 | 305 | 314 | ||||||
Poway California (AMBAC) | ||||||||
4.500%, 08/01/2016 | 585 | 594 | ||||||
Travis Unified School District (FGIC) | ||||||||
4.500%, 09/01/2016 | 300 | 301 | ||||||
Total Certificates of Participation | 2,052 | |||||||
Total Municipal Bonds | ||||||||
(Cost $53,161) | 53,220 | |||||||
Short-Term Investment – 6.1% | ||||||||
Blackrock Liquidity Funds | ||||||||
(Cost $3,525) | 3,524,936 | 3,525 | ||||||
Total Investments – 98.9% | ||||||||
(Cost $56,686) | 56,745 | |||||||
Other Assets and Liabilities, Net – 1.1% | 642 | |||||||
Total Net Assets – 100.0% | $ | 57,387 | ||||||
§ | Escrowed to Maturity issues are typically backed by U.S. government obligations, which secure the timely payment of principal and interest. If callable, these bonds may still be subject to call prior to maturity. | |
◊ | Pre-refunded issues are typically backed by U.S. government obligations, which secure the timely payment of principal and interest. These bonds mature at the call date and price indicated. | |
◗ | Convertible Capital Appreciation Bonds (Convertible CABs) – These bonds initially pay no interest but accrete in value from the date of issuance through the conversion date, at which time the bonds start to accrue and pay interest on a semiannual basis until final maturity. | |
¤ | Zero coupon bonds make no periodic interest payments, but are issued at deep discounts from par value. The rate shown is the effective yield as of June 30, 2008. |
ACA – | American Capital Assurance |
AGTY – | Assured Guaranty |
AMBAC – | American Municipal Bond Assurance Corporation |
AMT – | Alternative Minimum Tax. As of June 30, 2008, the aggregate market value of securities subject to the AMT was $970, which represents 1.7% of total net assets. |
California Intermediate Tax Free Fund (concluded)
CMI – | California Mortgage Insurance Program |
FGIC – | Financial Guaranty Insurance Corporation |
FNMA – | Federal National Mortgage Association |
FSA – | Financial Security Assurance |
GNMA – | Government National Mortgage Association |
MBIA – | Municipal Bond Insurance Association |
RAAI – | Radian Asset Assurance Inc. |
XLCA – | XL Capital Assurance Inc. |
First American Funds 2008 Annual Report 43
Schedule of Investments June 30, 2008, all dollars are rounded to thousands (000)
California Tax Free Fund | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Municipal Bonds – 96.5% | ||||||||
Revenue Bonds – 67.6% | ||||||||
Continuing Care Retirement Communities – 1.2% | ||||||||
Association of Bay Area Governments Finance Authority, Lincoln Glen Manor Senior Citizens (CMI) | ||||||||
6.100%, 02/15/2025 | $ | 250 | $ | 253 | ||||
Illinois Finance Authority, Franciscan Communities, Series A | ||||||||
5.500%, 05/15/2027 | 300 | 265 | ||||||
518 | ||||||||
Education – 12.2% | ||||||||
Association of Bay Area Governments Financial Authority, Schools of the Sacred Heart, Series A, Escrowed to Maturity | ||||||||
5.900%, 06/01/2010 § | 200 | 212 | ||||||
California Educational Facilities Authority, Series B, Pre-refunded 06/01/2010 @ 101 | ||||||||
6.625%, 06/01/2020 ◊ | 35 | 38 | ||||||
6.625%, 06/01/2020 ◊ | 180 | 194 | ||||||
California Educational Facilities Authority, University of Redlands | ||||||||
5.000%, 10/01/2020 | 500 | 505 | ||||||
5.000%, 08/01/2028 | 500 | 478 | ||||||
California Educational Facilities Authority, University of the Pacific | ||||||||
5.000%, 11/01/2030 | 1,000 | 987 | ||||||
California Educational Facilities Authority, Woodbury University | ||||||||
4.500%, 01/01/2016 | 470 | 451 | ||||||
California Municipal Finance Authority, Biola University | ||||||||
5.000%, 10/01/2018 | 200 | 196 | ||||||
5.625%, 10/01/2023 | 500 | 503 | ||||||
California Municipal Finance Authority, Education Revenue, American Heritage Education Foundation Project, Series A | ||||||||
5.250%, 06/01/2026 | 400 | 366 | ||||||
California Municipal Finance Authority, Loma Linda University | ||||||||
4.375%, 04/01/2019 | 300 | 293 | ||||||
California State Higher Educational Facilities Authority, Fresno Pacific University, Series A | ||||||||
6.750%, 03/01/2019 | 380 | 392 | ||||||
California State Higher Educational Facilities Authority, University of Redlands, Series A, Pre-refunded 06/01/2010 @ 101 | ||||||||
5.950%, 06/01/2015 ◊ | 310 | 332 | ||||||
California State University Foundation, Monterey Bay, Pre-refunded 06/01/2011 @ 100 (MBIA) | ||||||||
5.300%, 06/01/2022 ◊ | 500 | 534 | ||||||
5,481 | ||||||||
Healthcare – 18.1% | ||||||||
Association of Bay Area Governments Financial Authority, Children’s Hospital, Series A | ||||||||
4.750%, 12/01/2022 | 350 | 333 | ||||||
California Health Facilities Financing Authority, Casa Colina | ||||||||
5.500%, 04/01/2013 | 50 | 51 | ||||||
California Health Facilities Financing Authority, Marshall Medical Center, Series A (CMI) | ||||||||
4.750%, 11/01/2019 | 560 | 562 | ||||||
California Health Facilities Financing Authority, Sutter Health, Series A | ||||||||
5.000%, 08/15/2038 | 250 | 238 | ||||||
California Statewide Communities Development Authority, Adventist Health, Series A | ||||||||
5.000%, 03/01/2030 | 300 | 286 | ||||||
California Statewide Communities Development Authority, Catholic Healthcare West, Series C | ||||||||
5.625%, 07/01/2035 | 1,000 | 1,002 | ||||||
California Statewide Communities Development Authority, Daughters of Charity Healthcare, Series A | ||||||||
5.250%, 07/01/2030 | 100 | 93 | ||||||
California Statewide Communities Development Authority, Elder Care Alliance, Series A, Escrowed to Maturity | ||||||||
7.250%, 11/15/2011 § | 180 | 193 | ||||||
California Statewide Communities Development Authority, Henry Mayo Newhall Memorial Hospital (CMI) | ||||||||
5.000%, 10/01/2027 | 400 | 394 | ||||||
California Statewide Communities Development Authority, Henry Mayo Newhall Memorial, Series B (AMBAC) (CMI) | ||||||||
5.200%, 10/01/2037 | 500 | 489 | ||||||
California Statewide Communities Development Authority, Jewish Home (CMI) | ||||||||
4.500%, 11/15/2019 | 560 | 536 | ||||||
5.000%, 11/15/2037 | 500 | 468 | ||||||
California Statewide Communities Development Authority, Redlands Community Hospital, Series A (RAAI) | ||||||||
5.000%, 04/01/2015 | 500 | 507 | ||||||
California Statewide Communities Development Authority, St. Joseph, Series B (FGIC) | ||||||||
5.500%, 07/01/2027 | 850 | 865 | ||||||
Loma Linda University Medical Center, Hospital Revenue, Series A | ||||||||
5.000%, 12/01/2015 | 400 | 406 | ||||||
Sierra View Health Care District | ||||||||
5.250%, 07/01/2024 | 500 | 488 | ||||||
5.300%, 07/01/2026 | 1,000 | 973 | ||||||
Turlock California Health Facilities Revenue, Emanuel Medical Center | ||||||||
5.000%, 10/15/2024 | 300 | 272 | ||||||
8,156 | ||||||||
Housing – 2.5% | ||||||||
California State Department of Veterans Affairs, Series C (AMT) | ||||||||
5.500%, 12/01/2019 | 180 | 182 | ||||||
California Rural Home Mortgage Finance Authority, Single Family Mortgage, Series B (AMT) (FNMA) (GNMA) | ||||||||
5.650%, 06/01/2010 | 5 | 5 | ||||||
Ventura County Area Housing Authority, Mira Vista Senior Apartments, Series A (AMBAC) (AMT) | ||||||||
5.150%, 12/01/2031 | 1,000 | 961 | ||||||
1,148 | ||||||||
Lease Revenue – 6.8% | ||||||||
Apple Valley Public Financing Authority, Town Hall Annex Project, Series A (AMBAC) | ||||||||
5.000%, 09/01/2027 | 500 | 491 |
The accompanying notes are an integral part of the financial statements.
44 First American Funds 2008 Annual Report
California Tax Free Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
California State Public Works Board, California Community Colleges, Series B | ||||||||
5.500%, 06/01/2019 | $ | 1,035 | $ | 1,098 | ||||
Golden State Tobacco Securitization Corporation, California Tobacco Settlement, Convertible CABs, Series A (FSA) | ||||||||
0.000% through 06/01/2010, thereafter 4.550%, 06/01/2022 ◗ | 1,750 | 1,466 | ||||||
3,055 | ||||||||
Miscellaneous – 5.3% | ||||||||
California Infrastructure & Economic Development Bank, Walt Disney Family Museum | ||||||||
5.250%, 02/01/2033 | 200 | 201 | ||||||
Golden West Schools Financing Authority, Series A (MBIA) | ||||||||
5.750%, 02/01/2014 | 250 | 277 | ||||||
5.800%, 08/01/2022 | 320 | 366 | ||||||
5.800%, 08/01/2023 | 345 | 395 | ||||||
Sacramento City Financing Authority, Pre-refunded 06/01/2010 @ 101 | ||||||||
5.400%, 06/01/2018 ◊ | 455 | 483 | ||||||
5.500%, 06/01/2023 ◊ | 645 | 687 | ||||||
2,409 | ||||||||
Recreational Facility Authority – 1.2% | ||||||||
California State University Fresno Association, Auxiliary Organization Event Center, Pre-refunded 07/01/2012 @ 101 | ||||||||
6.000%, 07/01/2022 ◊ | 500 | 555 | ||||||
Tax Revenue – 12.7% | ||||||||
Fortuna Public Financing Authority (AGTY) | ||||||||
5.000%, 11/01/2038 | 500 | 501 | ||||||
Grass Valley Community Redevelopment Agency, Tax Allocation | ||||||||
6.400%, 12/01/2034 | 400 | 411 | ||||||
Long Beach Community Facilities District #5, Towne Center Special Tax, Pre-refunded 10/01/2008 @ 100 | ||||||||
6.100%, 10/01/2012 ◊ | 250 | 252 | ||||||
Los Angeles County Community Facilities District #3, Special Tax, Series A (AMBAC) | ||||||||
5.250%, 09/01/2018 | 715 | 738 | ||||||
Los Angeles Special Assessment District #96-1 | ||||||||
5.625%, 03/01/2019 | 200 | 209 | ||||||
Murrieta Community Facilities District #2, The Oaks Area | ||||||||
5.750%, 09/01/2020 | 125 | 124 | ||||||
Norco, Special Tax, Community Facilities District #97-1 (AGTY) | ||||||||
4.875%, 10/01/2030 | 500 | 500 | ||||||
Palm Desert Financing Authority, Tax Allocation Revenue, Project Area #4, Series A (MBIA) | ||||||||
5.000%, 10/01/2029 | 1,000 | 986 | ||||||
Poway Unified School District, Special Tax, Community Facilities District #6-4 | ||||||||
5.000%, 09/01/2023 | 250 | 240 | ||||||
Rancho Cucamonga Redevelopment Agency, Series A (MBIA) | ||||||||
5.000%, 09/01/2034 | 500 | 487 | ||||||
San Bernardino Redevelopment Agency, Tax Allocation Revenue, San Sevaine Redevelopment Project, Series A (RAAI) | ||||||||
5.000%, 09/01/2016 | 350 | 350 | ||||||
San Francisco City & County Redevelopment Financing Authority, Tax Allocation Revenue, Mission Bay North Redevelopment Project, Series B (RAAI) | ||||||||
4.375%, 08/01/2018 | 380 | 357 | ||||||
South Tahoe Redevelopment Agency, Special Tax, Community Facilities District #2001-1 | ||||||||
4.400%, 10/01/2015 | 120 | 116 | ||||||
4.500%, 10/01/2016 | 125 | 116 | ||||||
Stockton Public Financing Revenue, Assessment Districts, Senior Lien, Series A (RAAI) | ||||||||
4.375%, 09/02/2020 | 365 | 335 | ||||||
5,722 | ||||||||
Transportation – 0.8% | ||||||||
Puerto Rico Commonwealth Highway & Transportation Authority, Series X (IBC) (MBIA) | ||||||||
5.500%, 07/01/2015 | 100 | 105 | ||||||
San Francisco Airport Commission, SFO Fuel Company (AMT) (FSA) | ||||||||
5.625%, 01/01/2012 | 250 | 255 | ||||||
360 | ||||||||
Utilities – 6.8% | ||||||||
Banning Water Utility Authority, Enterprise Revenue, Referendum and Improvement Projects (FGIC) | ||||||||
5.000%, 11/01/2023 | 1,040 | 1,034 | ||||||
California Pollution Control Financing Authority, Solid Waste Disposal Revenue, Waste Management Incorporated Project, Series A-2 (AMT) | ||||||||
5.400%, 04/01/2025 | 500 | 461 | ||||||
California Pollution Control Financing Authority, Solid Waste Disposal Revenue, Waste Management Incorporated Project, Series B (AMT) | ||||||||
5.000%, 07/01/2027 | 250 | 217 | ||||||
Compton Sewer Authority (IBC) (MBIA) | ||||||||
5.375%, 09/01/2023 | 1,150 | 1,176 | ||||||
South Bayside Waste Management Authority (AMBAC) | ||||||||
5.750%, 03/01/2020 | 150 | 155 | ||||||
3,043 | ||||||||
Total Revenue Bonds | 30,447 | |||||||
General Obligations – 24.3% | ||||||||
Acalanes Unified High School District, Zero Coupon Bond, Pre-refunded 08/01/2010 @ 70.92 (FGIC) | ||||||||
3.024%, 08/01/2016 ◊ ¤ | 700 | 466 | ||||||
Bassett Unified School District Election of 2006 (FSA) | ||||||||
5.000%, 08/01/2027 | 500 | 516 | ||||||
Burlingame Elementary School District, Series A | ||||||||
5.000%, 08/01/2032 | 255 | 259 | ||||||
California State | ||||||||
5.000%, 02/01/2024 | 700 | 710 | ||||||
4.500%, 08/01/2026 | 500 | 475 | ||||||
California State, Pre-refunded 10/01/2010 @ 100 | ||||||||
5.250%, 10/01/2019 ◊ | 35 | 37 | ||||||
5.250%, 10/01/2019 ◊ | 105 | 111 | ||||||
5.250%, 10/01/2019 ◊ | 460 | 484 |
First American Funds 2008 Annual Report 45
Schedule of Investments June 30, 2008, all dollars are rounded to thousands (000)
California Tax Free Fund (continued) | ||||||||
DESCRIPTION | PAR/SHARES | VALUE | ||||||
Hemet Unified School District, 2006 Election, Series B (AGTY) | ||||||||
5.000%, 08/01/2030 | $ | 600 | $ | 611 | ||||
Jefferson Union High School District, San Mateo County, Series A (MBIA) | ||||||||
6.250%, 08/01/2020 | 460 | 504 | ||||||
Los Angeles Unified School District, Election 2002, Series B (AMBAC) | ||||||||
4.500%, 07/01/2025 | 1,925 | 1,850 | ||||||
Los Angeles Unified School District, Series A-1 (FSA) | ||||||||
4.500%, 07/01/2024 | 225 | 222 | ||||||
Lucia Mar Unified School District (FGIC) | ||||||||
5.250%, 08/01/2022 | 150 | 160 | ||||||
Oakland, Series A (MBIA) | ||||||||
5.000%, 01/15/2026 | 250 | 253 | ||||||
Palm Springs Unified School District, Election 2004, Series B (FSA) | ||||||||
4.750%, 08/01/2035 | 2,060 | 2,014 | ||||||
Pomona Unified School District, Series A (MBIA) | ||||||||
5.950%, 02/01/2017 | 855 | 908 | ||||||
Puerto Rico Commonwealth, Government Development, Series B | ||||||||
5.000%, 12/01/2014 | 200 | 201 | ||||||
Puerto Rico Commonwealth, Series C-7 (MBIA) | ||||||||
6.000%, 07/01/2027 | 250 | 261 | ||||||
Sacramento Unified School District, Series A, Pre-refunded 07/01/2009 @ 102 | ||||||||
5.750%, 07/01/2017 ◊ | 400 | 424 | ||||||
San Francisco City & County Unified School District, 2003 Election, Series C (MBIA) | ||||||||
4.500%, 06/15/2026 | 500 | 472 | ||||||
Total General Obligations | 10,938 | |||||||
Certificates of Participation – 4.6% | ||||||||
Escondido, Series A (FGIC) | ||||||||
5.625%, 09/01/2020 | 140 | 146 | ||||||
Escondido, Series A, Pre-refunded 09/01/2010 @ 101 (FGIC) | ||||||||
5.625%, 09/01/2020 ◊ | 160 | 172 | ||||||
Los Angeles, Sonnenblick del Rio Senior Lien (AMBAC) | ||||||||
6.000%, 11/01/2019 | 330 | 350 | ||||||
Ramona Unified School District, Convertible CABs (FGIC) | ||||||||
0.000% through 05/01/2012, thereafter 5.000%, 05/01/2032 ◗ | 500 | 405 | ||||||
Ridgecrest Civic Center Project, Pre-refunded 03/01/2009 @ 101 | ||||||||
6.250%, 03/01/2021 ◊ | 250 | 260 | ||||||
Roseville Water Utility (MBIA) | ||||||||
4.750%, 12/01/2023 | 750 | 752 | ||||||
Total Certificates of Participation | 2,085 | |||||||
Total Municipal Bonds | ||||||||
(Cost $43,721) | 43,470 | |||||||
Short-Term Investment – 2.6% | ||||||||
Blackrock Liquidity Funds | ||||||||
(Cost $1,157) | 1,156,683 | 1,157 | ||||||
Total Investments – 99.1% | ||||||||
(Cost $44,878) | 44,627 | |||||||
Other Assets and Liabilities, Net – 0.9% | 414 | |||||||
Total Net Assets – 100.0% | $ | 45,041 | ||||||
California Tax Free Fund (concluded)
§ | Escrowed to Maturity issues are typically backed by U.S. government obligations, which secure the timely payment of principal and interest. If callable, these bonds may still be subject to call prior to maturity. | |
◊ | Pre-refunded issues are typically backed by U.S. government obligations, which secure the timely payment of principal and interest. These bonds mature at the call date and price indicated. | |
◗ | Convertible Capital Appreciation Bonds (Convertible CABs) – These bonds initially pay no interest but accrete in value from the date of issuance through the conversion date, at which time the bonds start to accrue and pay interest on a semiannual basis until final maturity. | |
¤ | Zero coupon bonds make no periodic interest payments, but are issued at deep discounts from par value. The rate shown is the effective yield as of June 30, 2008. |
AGTY – | Assured Guaranty |
AMBAC – | American Municipal Bond Assurance Corporation |
AMT – | Alternative Minimum Tax. As of June 30, 2008, the aggregate market value of securities subject to the AMT was $2,081, which represents 4.6% of total net assets. |
CMI – | California Mortgage Insurance Program |
FGIC – | Financial Guaranty Insurance Corporation |
FNMA – | Federal National Mortgage Association |
FSA – | Financial Security Assurance |
GNMA – | Government National Mortgage Association |
IBC – | International Bank of Commerce |
MBIA – | Municipal Bond Insurance Association |
RAAI – | Radian Asset Assurance Inc. |
The accompanying notes are an integral part of the financial statements.
46 First American Funds 2008 Annual Report
Colorado Intermediate Tax Free Fund | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Municipal Bonds – 98.8% | ||||||||
Revenue Bonds – 76.2% | ||||||||
Continuing Care Retirement Communities – 1.5% | ||||||||
Colorado State Health Facilities Authority, Christian Living Communities Project, Series A | ||||||||
5.250%, 01/01/2014 | $ | 250 | $ | 241 | ||||
Colorado State Health Facilities Authority, Covenant Retirement Communities | ||||||||
5.000%, 12/01/2016 | 500 | 494 | ||||||
735 | ||||||||
Education – 10.5% | ||||||||
Colorado Educational & Cultural Facilities Authority, Ave Maria School Project (RAAI) | ||||||||
4.750%, 12/01/2014 | 220 | 221 | ||||||
4.750%, 12/01/2015 | 230 | 229 | ||||||
Colorado Educational & Cultural Facilities Authority, Cheyenne Mountain Charter School, Series A (SMO) | ||||||||
5.000%, 06/15/2018 | 240 | 244 | ||||||
5.000%, 06/15/2019 | 255 | 258 | ||||||
5.000%, 06/15/2020 | 265 | 266 | ||||||
Colorado Educational & Cultural Facilities Authority, Northwest Nazarene | ||||||||
4.500%, 11/01/2015 | 450 | 435 | ||||||
Colorado Educational & Cultural Facilities Authority, Northwest Nazarene, Pre-refunded 11/01/2010 @ 102 | ||||||||
4.500%, 11/01/2015 ◊ | 100 | 105 | ||||||
Colorado State Board of Governors University Enterprise System Revenue, Series B (FGIC) | ||||||||
4.250%, 03/01/2017 | 500 | 495 | ||||||
Colorado State Educational & Cultural Facilities Authority, Bromley East Charter School Project, Escrowed to Maturity | ||||||||
6.250%, 09/15/2011 § | 230 | 241 | ||||||
Colorado State Educational & Cultural Facilities Authority, Classical Academy Charter School Project, Escrowed to Maturity | ||||||||
6.375%, 12/01/2011 § | 495 | 524 | ||||||
Colorado State Educational & Cultural Facilities Authority, Core Knowledge Charter School, Pre-refunded 11/01/2009 @ 100 | ||||||||
6.850%, 11/01/2016 ◊ | 440 | 466 | ||||||
Colorado State Educational & Cultural Facilities Authority, Front Range Christian School Project (LOC: Evangelical Christian, Wescorp Credit Union) | ||||||||
4.500%, 04/01/2018 | 225 | 224 | ||||||
4.500%, 04/01/2019 | 240 | 237 | ||||||
Fort Lewis College Board, Trustees Enterprise Revenue, Series B-1 (FGIC) | ||||||||
4.250%, 10/01/2019 | 625 | 603 | ||||||
4.375%, 10/01/2020 | 725 | 699 | ||||||
5,247 | ||||||||
Healthcare – 20.7% | ||||||||
Aspen Valley Hospital | ||||||||
4.375%, 10/15/2014 | 560 | 549 | ||||||
Colorado Springs Hospital Revenue, Series B (AMBAC) | ||||||||
3.000%, 12/15/2024 Y | 700 | 700 | ||||||
Colorado State Health Facilities Authority, Adventist Health, Sunbelt, Series E | ||||||||
5.000%, 11/15/2012 | 500 | 517 | ||||||
Colorado State Health Facilities Authority, Boulder Hospital (MBIA) | ||||||||
5.000%, 10/01/2010 | 500 | 520 | ||||||
Colorado State Health Facilities Authority, Evangelical Lutheran | ||||||||
6.900%, 12/01/2025 | 135 | 143 | ||||||
Colorado State Health Facilities Authority, Evangelical Lutheran | ||||||||
5.000%, 06/01/2016 | 250 | 253 | ||||||
Colorado State Health Facilities Authority, Evangelical Lutheran, Pre-refunded 12/01/2010 @ 102 | ||||||||
6.900%, 12/01/2025 ◊ | 215 | 239 | ||||||
Colorado State Health Facilities Authority, Health & Residential Care Facilities, Volunteers of America, Series A | ||||||||
5.000%, 07/01/2015 | 500 | 478 | ||||||
Colorado State Health Facilities Authority, Longmont United Hospital, Series B (RAAI) | ||||||||
5.250%, 12/01/2013 | 860 | 885 | ||||||
Colorado State Health Facilities Authority, National Jewish Medical & Research Center Project | ||||||||
5.375%, 01/01/2016 | 700 | 701 | ||||||
Colorado State Health Facilities Authority, Parkview Medical Center | ||||||||
5.750%, 09/01/2008 | 250 | 251 | ||||||
Colorado State Health Facilities Authority, Parkview Medical Center, Escrowed to Maturity | ||||||||
5.500%, 09/01/2009 § | 500 | 519 | ||||||
Colorado State Health Facilities Authority, Parkview Medical Center Project, Series B | ||||||||
5.000%, 09/01/2018 | 500 | 499 | ||||||
Colorado State Health Facilities Authority, The Devereux Foundation (RAAI) | ||||||||
4.200%, 11/01/2013 | 80 | 78 | ||||||
Colorado State Health Facilities Authority, Vail Valley Medical Center Project | ||||||||
5.000%, 01/15/2013 | 300 | 306 | ||||||
5.750%, 01/15/2022 | 800 | 810 | ||||||
Colorado State Health Facilities Authority, Valley View Hospital Association Project, Series A (RAAI) | ||||||||
5.000%, 05/15/2012 | 165 | 168 | ||||||
5.000%, 05/15/2013 | 500 | 508 | ||||||
Colorado State Health Facilities Authority, Yampa Valley Medical Center Project | ||||||||
5.000%, 09/15/2013 | 410 | 411 | ||||||
Delta County Memorial Hospital District | ||||||||
5.350%, 09/01/2017 | 500 | 500 | ||||||
La Junta County Hospital, Arkansas Valley Regional Medical Center Project | ||||||||
5.500%, 04/01/2009 | 355 | 360 | ||||||
Montrose Memorial Hospital | ||||||||
5.300%, 12/01/2013 | 260 | 264 | ||||||
5.450%, 12/01/2014 | 390 | 398 | ||||||
University of Colorado Hospital Authority, Pre-refunded 11/15/2011 @ 100 | ||||||||
5.000%, 11/15/2014 ◊ | 300 | 316 | ||||||
10,373 | ||||||||
First American Funds 2008 Annual Report 47
Schedule of Investments June 30, 2008, all dollars are rounded to thousands (000)
Colorado Intermediate Tax Free Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Housing – 3.5% | ||||||||
Denver City & County Housing Authority, Capital Funding Program, Three Towers Rehabilitation Project (AMT) (FSA) | ||||||||
4.000%, 05/01/2012 | $ | 270 | $ | 268 | ||||
4.000%, 11/01/2012 | 270 | 268 | ||||||
4.550%, 11/01/2017 | 1,000 | 977 | ||||||
5.200%, 11/01/2027 | 250 | 245 | ||||||
1,758 | ||||||||
Lease Revenue – 1.0% | ||||||||
Puerto Rico Public Buildings Authority, Government Facilities, Series M-2, Mandatory Put 07/01/2017 @ 100 (AMBAC) (COMGTY) | ||||||||
5.500%, 07/01/2035 | 500 | 511 | ||||||
Miscellaneous – 5.9% | ||||||||
Colorado Educational & Cultural Facilities Authority, Colorado Public Radio | ||||||||
4.800%, 07/01/2009 | 250 | 253 | ||||||
4.900%, 07/01/2010 | 265 | 270 | ||||||
Colorado Educational & Cultural Facilities Authority, National Conference of State Legislatures | ||||||||
5.250%, 06/01/2013 | 700 | 725 | ||||||
Denver City & County, Helen G. Bonfils Foundation Project, Series B | ||||||||
5.125%, 12/01/2017 | 900 | 901 | ||||||
High Plains Metropolitan District, Series B (LOC: Compass Bank) | ||||||||
4.375%, 12/01/2015 | 785 | 794 | ||||||
2,943 | ||||||||
Recreational Facility Authority – 1.0% | ||||||||
Hyland Hills Metropolitan Park & Recreation District, Series A | ||||||||
6.100%, 12/15/2009 | 210 | 212 | ||||||
Hyland Hills Metropolitan Park & Recreation District, Special Revenue (ACA) | ||||||||
5.000%, 12/15/2015 | 300 | 293 | ||||||
505 | ||||||||
Revolving Fund – 0.1% | ||||||||
Colorado Water Resource & Power Development Authority, Small Water Resources, Series A (FGIC) | ||||||||
5.700%, 11/01/2015 | 55 | 56 | ||||||
Tax Revenue – 3.3% | ||||||||
Larimer County Sales & Use Tax (AMBAC) | ||||||||
5.000%, 12/15/2010 | 300 | 315 | ||||||
Longmont Sales & Use Tax, Pre-refunded 11/15/2010 @ 100 | ||||||||
5.500%, 11/15/2015 ◊ | 500 | 531 | ||||||
Park Meadows Business Improvement District, Shared Sales Tax | ||||||||
5.000%, 12/01/2017 | 250 | 243 | ||||||
Superior Open Space Sales & Use Tax | ||||||||
4.500%, 06/01/2013 | 100 | 99 | ||||||
4.600%, 06/01/2014 | 225 | 223 | ||||||
Westminster Special Purpose Sales & Use Tax, Post Project, Series D (FSA) | ||||||||
4.250%, 12/01/2018 | 250 | 253 | ||||||
1,664 | ||||||||
Transportation – 14.6% | ||||||||
Colorado Department of Transportation (AMBAC) | ||||||||
6.000%, 06/15/2010 | 1,000 | 1,060 | ||||||
E-470 Public Highway Authority, Series B, Zero Coupon Bond (MBIA) | ||||||||
5.147%, 09/01/2017 ¤ | 1,575 | 988 | ||||||
5.337%, 09/01/2019 ¤ | 960 | 533 | ||||||
5.640%, 09/01/2022 ¤ | 1,000 | 455 | ||||||
E-470 Public Highway Authority, Series C, Convertible CABs (MBIA) | ||||||||
0.000% through 09/01/2011, thereafter 5.000%, 09/01/2017 ◗ | 500 | 427 | ||||||
Eagle County Air Terminal Revenue, Airport Terminal Improvement Project, Series B (AMT) | ||||||||
5.250%, 05/01/2020 | 130 | 116 | ||||||
Northwest Parkway Public Highway Authority, Convertible CABs, Escrowed to Maturity (FSA) | ||||||||
0.000% through 06/15/2011, thereafter 5.200%, 06/15/2014 § ◗ | 750 | 695 | ||||||
Northwest Parkway Public Highway Authority, Convertible CABs, Escrowed to Maturity (AMBAC) | ||||||||
0.000% through 06/15/2011, thereafter 5.250%, 06/15/2015 § ◗ | 2,000 | 1,863 | ||||||
Northwest Parkway Public Highway Authority, Convertible CABs, Escrowed to Maturity (FSA) | ||||||||
0.000% through 06/15/2011, thereafter 5.350%, 06/15/2016 § ◗ | 1,000 | 936 | ||||||
Walker Field Public Airport Authority Revenue | ||||||||
4.500%, 12/01/2016 | 275 | 260 | ||||||
7,333 | ||||||||
Utilities – 14.1% | ||||||||
Arapahoe County Water & Wastewater Authority, Escrowed to Maturity | ||||||||
5.750%, 12/01/2008 § | 160 | 163 | ||||||
Arapahoe County Water & Wastewater Authority, Pre-refunded 12/01/2009 @ 100 | ||||||||
6.000%, 12/01/2011 ◊ | 185 | 194 | ||||||
Aurora Water System Revenue, First Lien, Series A | ||||||||
4.750%, 08/01/2026 | 1,500 | 1,511 | ||||||
4.750%, 08/01/2027 | 225 | 226 | ||||||
Boulder Water & Sewer, Escrowed to Maturity | ||||||||
5.750%, 12/01/2010 § | 1,545 | 1,651 | ||||||
Broomfield Water Activity Enterprise (MBIA) | ||||||||
5.500%, 12/01/2017 | 500 | 527 | ||||||
Colorado Water Resource & Power Development Authority, Small Water Resources, Series A, Pre-refunded 11/01/2010 @ 100 (FGIC) | ||||||||
5.700%, 11/01/2015 ◊ | 45 | 48 | ||||||
Denver City & County Wastewater (FGIC) | ||||||||
5.250%, 11/01/2017 | 1,260 | 1,316 | ||||||
Inverness Water & Sanitation District, Arapahoe & Douglas Counties, Series A (RAAI) | ||||||||
4.250%, 12/01/2016 | 600 | 569 | ||||||
Public Authority for Colorado Energy Natural Gas Revenue | ||||||||
6.250%, 11/15/2028 | 350 | 337 | ||||||
Puerto Rico Commonwealth, Aqueduct & Sewer Authority, Series A (AGTY) | ||||||||
5.000%, 07/01/2016 | 500 | 528 | ||||||
7,070 | ||||||||
Total Revenue Bonds | 38,195 | |||||||
The accompanying notes are an integral part of the financial statements.
48 First American Funds 2008 Annual Report
Colorado Intermediate Tax Free Fund (continued) | ||||||||
DESCRIPTION | PAR/SHARES | VALUE | ||||||
General Obligations – 19.5% | ||||||||
Arapahoe County School District #5, Cherry Creek, Pre-refunded 12/15/2009 @ 100 (STAID) | ||||||||
5.500%, 12/15/2011 ◊ | $ | 1,000 | $ | 1,046 | ||||
Cordillera Metropolitan School District, Eagle County (RAAI) | ||||||||
5.000%, 12/01/2013 | 620 | 630 | ||||||
Denver City & County, Medical Facilities | ||||||||
4.000%, 08/01/2016 | 500 | 505 | ||||||
Denver West Metropolitan School District | ||||||||
4.125%, 12/01/2014 | 150 | 141 | ||||||
4.200%, 12/01/2015 | 480 | 449 | ||||||
Douglas County School District #RE-1, Douglas & Elbert Counties, Series B, Zero Coupon Bond (FSA) (STAID) | ||||||||
3.947%, 12/15/2015 ¤ | 335 | 250 | ||||||
Fiddlers Business Improvement District, Greenwood Village, Series 1 (ACA) | ||||||||
4.250%, 12/01/2015 | 460 | 434 | ||||||
Garfield County School District #RE-2 (FSA) (STAID) | ||||||||
5.250%, 12/01/2019 | 1,530 | 1,608 | ||||||
Jefferson County School District #R-001 (MBIA) (STAID) | ||||||||
6.250%, 12/15/2009 | 1,000 | 1,055 | ||||||
North Range Metropolitan District #1 (ACA) | ||||||||
4.250%, 12/15/2018 | 560 | 480 | ||||||
Pueblo County School District #070, Pueblo Rural (FGIC) (STAID) | ||||||||
5.000%, 12/01/2019 | 910 | 955 | ||||||
Puerto Rico Commonwealth, Series C-7 (MBIA) | ||||||||
6.000%, 07/01/2027 | 250 | 261 | ||||||
SBC Metropolitan School District (ACA) | ||||||||
4.250%, 12/01/2015 | 445 | 433 | ||||||
Sterling Hills West Metropolitan District (FSA) | ||||||||
4.750%, 12/01/2018 | 250 | 262 | ||||||
Westglenn Metropolitan District | ||||||||
6.000%, 12/01/2014 | 1,220 | 1,242 | ||||||
Total General Obligations | 9,751 | |||||||
Certificates of Participation – 3.1% | ||||||||
Canon City Finance Authority (AGTY) | ||||||||
4.250%, 12/01/2023 | 200 | 189 | ||||||
Garfield County Building Corporation (AMBAC) | ||||||||
5.300%, 12/01/2011 | 400 | 415 | ||||||
Pueblo County, Capital Construction | ||||||||
4.400%, 12/01/2016 | 410 | 405 | ||||||
Rangeview Library District (AGTY) | ||||||||
4.250%, 12/15/2021 | 595 | 575 | ||||||
Total Certificates of Participation | 1,584 | |||||||
Total Municipal Bonds | ||||||||
(Cost $49,011) | 49,530 | |||||||
Short-Term Investment – 1.8% | ||||||||
First American Tax Free Obligations Fund, Class Z Å | ||||||||
(Cost $916) | 916,442 | 916 | ||||||
Total Investments – 100.6% | ||||||||
(Cost $49,927) | 50,446 | |||||||
Other Assets and Liabilities, Net – (0.6)% | (314 | ) | ||||||
Total Net Assets – 100.0% | $ | 50,132 | ||||||
Colorado Intermediate Tax Free Fund (concluded)
◊ | Pre-refunded issues are typically backed by U.S. government obligations, which secure the timely payment of principal and interest. These bonds mature at the call date and price indicated. | |
§ | Escrowed to Maturity issues are typically backed by U.S. government obligations, which secure the timely payment of principal and interest. If callable, these bonds may still be subject to call prior to maturity. | |
Y | Auction rate security. The coupon rate shown represents the rate as of June 30, 2008. | |
¤ | Zero coupon bonds make no periodic interest payments, but are issued at deep discounts from par value. The rate shown is the effective yield at June 30, 2008. | |
◗ | Convertible Capital Appreciation Bonds (Convertible CABs) – These bonds initially pay no interest but accrete in value from the date of issuance through the conversion date, at which time the bonds start to accrue and pay interest on a semiannual basis until final maturity. | |
Å | Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor for this fund. See note 3 in Notes to Financial Statements. |
ACA – | American Capital Assurance |
AGTY – | Assured Guaranty |
AMBAC – | American Municipal Bond Assurance Corporation |
AMT – | Alternative Minimum Tax. As of June 30, 2008, the aggregate market value of securities subject to the AMT was $1,874, which represents 3.7% of net assets. |
COMGTY – | Commonwealth Guaranty |
FGIC – | Financial Guaranty Insurance Corporation |
FSA – | Financial Security Assurance |
LOC – | Letter of Credit |
MBIA – | Municipal Bond Insurance Association |
RAAI – | Radian Asset Assurance Inc. |
SMO – | State Moral Obligation |
STAID – | State Aid Withholding |
First American Funds 2008 Annual Report 49
Schedule of Investments June 30, 2008, all dollars are rounded to thousands (000)
Colorado Tax Free Fund | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Municipal Bonds – 94.0% | ||||||||
Revenue Bonds – 76.8% | ||||||||
Continuing Care Retirement Communities – 3.7% | ||||||||
Colorado Health Facilities Authority, Christian Living Communities, Series A | ||||||||
5.750%, 01/01/2026 | $ | 100 | $ | 91 | ||||
Colorado State Health Facilities Authority, Covenant Retirement Communities | ||||||||
5.250%, 12/01/2025 | 200 | 185 | ||||||
Colorado State Health Facilities Authority, Covenant Retirement Communities, Series B | ||||||||
6.125%, 12/01/2033 | 350 | 347 | ||||||
Illinois Finance Authority, Franciscan Communities, Series A | ||||||||
5.500%, 05/15/2037 | 225 | 189 | ||||||
Illinois Finance Authority, Three Crowns Park Plaza, Series A | ||||||||
5.875%, 02/15/2026 | 100 | 91 | ||||||
903 | ||||||||
Education – 15.4% | ||||||||
Anderson, Indiana, Economic Development Revenue, Anderson University Project | ||||||||
5.000%, 10/01/2032 | 350 | 299 | ||||||
Colorado Educational & Cultural Facilities Authority, Academy Charter School Project, Series A (SMO) | ||||||||
4.625%, 12/15/2028 | 330 | 309 | ||||||
Colorado Educational & Cultural Facilities Authority, Northwest Nazarene | ||||||||
4.500%, 11/01/2015 | 240 | 232 | ||||||
Colorado Educational & Cultural Facilities Authority, Northwest Nazarene, Pre-refunded 11/01/2010 @ 102 | ||||||||
4.500%, 11/01/2015 ◊ | 60 | 63 | ||||||
Colorado Educational & Cultural Facilities Authority, Cheyenne Mountain Charter School, Series A (SMO) | ||||||||
5.250%, 06/15/2029 | 500 | 500 | ||||||
Colorado State Educational & Cultural Facilities Authority, Ave Maria School Project (RAAI) | ||||||||
4.850%, 12/01/2025 | 250 | 236 | ||||||
Colorado State Educational & Cultural Facilities Authority, Ave Maria School Project, Pre-refunded 12/01/2010 @ 100 (RAAI) | ||||||||
6.000%, 12/01/2016 ◊ | 200 | 215 | ||||||
Colorado State Educational & Cultural Facilities Authority, Charter School, James Irwin Foundation (CIFG) (STAID) | ||||||||
5.000%, 08/01/2027 | 250 | 245 | ||||||
Colorado State Educational & Cultural Facilities Authority, Classical Academy Charter School Project, Escrowed to Maturity | ||||||||
6.375%, 12/01/2011 § | 350 | 371 | ||||||
Colorado State Educational & Cultural Facilities Authority, Front Range Christian School Project (LOC: Evangelical Christian, Wescorp Credit Union) | ||||||||
5.000%, 04/01/2037 | 750 | 712 | ||||||
Fort Lewis College Board, Trustees Enterprise Revenue, Series A (FGIC) | ||||||||
4.375%, 10/01/2020 | 100 | 96 | ||||||
University of Colorado Enterprise System Revenue, University of Colorado Regents (MBIA) | ||||||||
5.000%, 06/01/2032 | 500 | 504 | ||||||
3,782 | ||||||||
Healthcare – 28.3% | ||||||||
Boulder County Longmont United Hospital Project (RAAI) | ||||||||
5.300%, 12/01/2010 | 330 | 340 | ||||||
Colorado Health Facilities Authority, Valley View Hospital Association | ||||||||
5.500%, 05/15/2028 | 400 | 391 | ||||||
Colorado Health Facilities, Paoudre Valley Health Care, Series B (FSA) | ||||||||
5.250%, 03/01/2036 | 1,000 | 1,010 | ||||||
Colorado Health Facilities Authority, Parkview Medical Center Project, Series B | ||||||||
5.000%, 09/01/2029 | 355 | 334 | ||||||
Colorado Springs Hospital Revenue, Series B (AMBAC) | ||||||||
3.000%, 12/15/2024 Y | 350 | 350 | ||||||
Colorado State Health Facilities Authority, Evangelical Lutheran, Unrefunded | ||||||||
6.900%, 12/01/2025 | 60 | 63 | ||||||
Colorado State Health Facilities Authority, Evangelical Lutheran, Series A | ||||||||
5.250%, 06/01/2034 | 230 | 215 | ||||||
Colorado State Health Facilities Authority, Evangelical Lutheran | ||||||||
5.000%, 06/01/2016 | 100 | 101 | ||||||
Colorado State Health Facilities Authority, Evangelical Lutheran, Pre-refunded 12/01/2010 @ 102 | ||||||||
6.900%, 12/01/2025 ◊ | 90 | 100 | ||||||
Colorado State Health Facilities Authority, Health & Residential Care Facilities, Volunteers of America, Series A | ||||||||
5.250%, 07/01/2027 | 300 | 260 | ||||||
Colorado State Health Facilities Authority, Longmont United Hospital, Series B (RAAI) | ||||||||
4.625%, 12/01/2024 | 325 | 298 | ||||||
Colorado State Health Facilities Authority, National Jewish Medical & Research Center Project | ||||||||
5.375%, 01/01/2016 | 300 | 301 | ||||||
Colorado State Health Facilities Authority, Parkview Medical Center, Escrowed to Maturity | ||||||||
5.600%, 09/01/2011 § | 300 | 322 | ||||||
Colorado State Health Facilities Authority, Portercare Adventist Project, Pre-refunded 11/15/2011 @ 101 | ||||||||
6.500%, 11/15/2023 ◊ | 600 | 668 | ||||||
Colorado State Health Facilities Authority, Poudre Valley Health Care, Series F | ||||||||
5.000%, 03/01/2025 | 350 | 329 | ||||||
Colorado State Health Facilities Authority, Vail Valley Medical Center | ||||||||
5.000%, 01/15/2020 | 250 | 244 | ||||||
5.800%, 01/15/2027 | 500 | 505 | ||||||
Delta County Memorial Hospital District | ||||||||
5.350%, 09/01/2017 | 220 | 220 | ||||||
Denver Health & Hospital Authority, Healthcare Revenue, Series A | ||||||||
4.750%, 12/01/2027 | 250 | 219 |
The accompanying notes are an integral part of the financial statements.
50 First American Funds 2008 Annual Report
Colorado Tax Free Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Halifax Medical Center, Hospital Revenue, Series A | ||||||||
5.000%, 06/01/2038 | $ | 325 | $ | 281 | ||||
Iowa Finance Authority, Health Facilities Revenue, Care Initiatives Project, Series A | ||||||||
5.000%, 07/01/2020 | 100 | 88 | ||||||
La Junta, Arkansas Valley Regional Medical Center Project | ||||||||
6.100%, 04/01/2024 | 100 | 101 | ||||||
Montrose Memorial Hospital | ||||||||
6.375%, 12/01/2023 | 130 | 135 | ||||||
New Hampshire Health & Educational Facilities Authority, The Memorial Hospital | ||||||||
5.250%, 06/01/2036 | 100 | 88 | ||||||
6,963 | ||||||||
Housing – 1.7% | ||||||||
Colorado State Housing & Finance Authority, Multifamily Project, Class I, Series B-4 | ||||||||
5.900%, 04/01/2031 | 100 | 102 | ||||||
Colorado State Housing & Finance Authority, Series E-2 (AMT) | ||||||||
7.000%, 02/01/2030 | 40 | 42 | ||||||
Colorado State Housing & Finance Authority, Single Family Housing Program, Series B-2 (AMT) | ||||||||
7.100%, 04/01/2017 | 20 | 21 | ||||||
Denver City & County Housing Authority, Capital Funding Program, Three Towers Rehabilitation Project (AMT) (FSA) | ||||||||
5.200%, 11/01/2027 | 250 | 245 | ||||||
410 | ||||||||
Miscellaneous – 3.5% | ||||||||
Colorado State Educational & Cultural Facilities Authority, National Conference of State Legislatures | ||||||||
5.250%, 06/01/2021 | 750 | 757 | ||||||
Denver City & County, Helen G. Bonfils Foundation Project, Series B | ||||||||
5.125%, 12/01/2017 | 100 | 100 | ||||||
857 | ||||||||
Tax Revenue – 4.4% | ||||||||
Douglas County Sales & Use Tax Revenue (FSA) | ||||||||
5.625%, 10/15/2020 | 200 | 210 | ||||||
Highlands Ranch Metropolitan School District #2 (FSA) | ||||||||
5.000%, 06/15/2016 | 20 | 20 | ||||||
Larimer County Sales & Use Tax, Pre-refunded 12/15/2010 @ 100 (AMBAC) | ||||||||
5.625%, 12/15/2018 ◊ | 100 | 107 | ||||||
Park Meadows Business Improvement District, Shared Sales Tax | ||||||||
5.300%, 12/01/2027 | 475 | 445 | ||||||
Superior Open Space Sales & Use Tax | ||||||||
5.000%, 06/01/2026 | 330 | 312 | ||||||
1,094 | ||||||||
Transportation – 11.0% | ||||||||
E-470 Public Highway Authority, Series D1 (MBIA) | ||||||||
5.500%, 09/01/2024 | 300 | 305 | ||||||
Eagle County Air Terminal Revenue, Airport Terminal Improvement Project, Series B (AMT) | ||||||||
5.250%, 05/01/2020 | 75 | 67 | ||||||
Northwest Parkway Public Highway Authority, Convertible CABs, Escrowed to Maturity (FSA) | ||||||||
0.000% through 06/15/2011, thereafter 5.200%, 06/15/2014 § ◗ | 750 | 695 | ||||||
Northwest Parkway Public Highway Authority, Convertible CABs, Escrowed to Maturity (AMBAC) | ||||||||
0.000% through 06/15/2011, thereafter 5.250%, 06/15/2015 § ◗ | 500 | 466 | ||||||
Northwest Parkway Public Highway Authority, Convertible CABs, Pre-refunded 06/15/2016 @ 100 (AMBAC) | ||||||||
0.000% through 06/15/2011, thereafter 5.700%, 06/15/2021 ◊ ◗ | 1,000 | 950 | ||||||
Walker Field Public Airport Authority Revenue | ||||||||
4.750%, 12/01/2027 | 250 | 216 | ||||||
2,699 | ||||||||
Utilities – 8.8% | ||||||||
Arkansas River Power Authority | ||||||||
6.000%, 10/01/2040 | 225 | 221 | ||||||
Boulder Water & Sewer, Pre-refunded 12/01/2010 @ 100 | ||||||||
5.700%, 12/01/2019 ◊ | 300 | 320 | ||||||
Broomfield Water Activity Enterprise (MBIA) | ||||||||
5.500%, 12/01/2019 | 400 | 420 | ||||||
Colorado Housing & Finance Authority, Waste Disposal Management Income Project (AMT) | ||||||||
5.700%, 07/01/2018 | 250 | 244 | ||||||
Fort Collins Wastewater Utility Enterprise (FSA) | ||||||||
5.500%, 12/01/2020 | 300 | 314 | ||||||
Public Authority for Colorado Energy Natural Gas Revenue | ||||||||
6.250%, 11/15/2028 | 150 | 144 | ||||||
Puerto Rico Electric Power Authority, Series WW | ||||||||
5.250%, 07/01/2025 | 500 | 504 | ||||||
2,167 | ||||||||
Total Revenue Bonds | 18,875 | |||||||
General Obligations – 10.0% | ||||||||
Antelope Water System | ||||||||
4.875%, 12/01/2025 | 175 | 167 | ||||||
Bromley Park Metropolitan District #2, Series A (RAAI) | ||||||||
5.000%, 12/01/2027 | 500 | 477 | ||||||
Fiddlers Business Improvement District, Greenwood Village, Series 1 (ACA) | ||||||||
4.500%, 12/01/2027 | 375 | 307 | ||||||
McCook, Illinois | ||||||||
5.000%, 12/01/2026 | 350 | 342 | ||||||
Midcities Metropolitan School District #2 (RAAI) | ||||||||
5.125%, 12/01/2030 | 200 | 193 | ||||||
North Range Metropolitan District #1 (ACA) | ||||||||
4.500%, 12/15/2031 | 300 | 219 | ||||||
Puerto Rico Commonwealth, Public Improvement, Series A | ||||||||
5.250%, 07/01/2026 | 500 | 490 | ||||||
Puerto Rico Commonwealth, Series C-7 (MBIA) | ||||||||
6.000%, 07/01/2027 | 250 | 261 | ||||||
Total General Obligations | 2,456 | |||||||
Certificates of Participation – 7.2% | ||||||||
Broomfield County Open Space Park & Recreation Facilities (AMBAC) | ||||||||
5.500%, 12/01/2020 | 800 | 831 |
First American Funds 2008 Annual Report 51
Schedule of Investments June 30, 2008, all dollars are rounded to thousands (000)
Colorado Tax Free Fund (concluded) | ||||||||
DESCRIPTION | PAR/SHARES | VALUE | ||||||
Broomfield County, Westminster Open Space Foundation | ||||||||
4.625%, 12/01/2025 | $ | 330 | $ | 317 | ||||
Colorado Springs Old City Hall Project (FSA) | ||||||||
5.500%, 12/01/2017 | 200 | 210 | ||||||
5.500%, 12/01/2020 | 200 | 209 | ||||||
Pueblo County, Capital Construction | ||||||||
5.000%, 12/01/2024 | 200 | 193 | ||||||
Total Certificates of Participation | 1,760 | |||||||
Total Municipal Bonds | ||||||||
(Cost $23,232) | 23,091 | |||||||
Short-Term Investment – 7.5% | ||||||||
First American Tax Free Obligations Fund, Class Z Å | ||||||||
(Cost $1,844) | 1,844,482 | 1,844 | ||||||
Total Investments – 101.5% | ||||||||
(Cost $25,076) | 24,935 | |||||||
Other Assets and Liabilities, Net – (1.5)% | (372 | ) | ||||||
Total Net Assets – 100.0% | $ | 24,563 | ||||||
◊ | Pre-refunded issues are typically backed by U.S. government obligations, which secure the timely payment of principal and interest. These bonds mature at the call date and price indicated. | |
§ | Escrowed to Maturity issues are typically backed by U.S. government obligations, which secure the timely payment of principal and interest. If callable, these bonds may still be subject to call prior to maturity. | |
Y | Auction rate security. The coupon rate shown represents the rate as of June 30, 2008. | |
◗ | Convertible Capital Appreciation Bonds (Convertible CABs) – These bonds initially pay no interest but accrete in value from the date of issuance through the conversion date, at which time the bonds start to accrue and pay interest on a semiannual basis until final maturity. | |
Å | Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor for this fund. See note 3 in Notes to Financial Statements. |
ACA – | American Capital Assurance |
AMBAC – | American Municipal Bond Assurance Corporation |
AMT – | Alternative Minimum Tax. As of June 30, 2008, the aggregate market value of securities subject to the AMT was $619, which represents 2.5% of net assets. |
CIFG – | CDC IXIS Financial Guaranty |
FGIC – | Financial Guaranty Insurance Corporation |
FSA – | Financial Security Assurance |
LOC – | Letter of Credit |
MBIA – | Municipal Bond Insurance Association |
RAAI – | Radian Asset Assurance Inc. |
SMO – | State Moral Obligation |
STAID – | State Aid Withholding |
Colorado Tax Free Fund (concluded)
Intermediate Tax Free Fund | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Municipal Bonds – 97.9% | ||||||||
Alabama – 1.8% | ||||||||
Revenue Bonds – 1.8% | ||||||||
Alabama State Docks Department, Pre-refunded 10/01/2008 @ 102 (MBIA) | ||||||||
5.250%, 10/01/2010 ◊ | $ | 3,000 | $ | 3,086 | ||||
Anniston Regional Medical Center Board, Northeast Alabama Regional Medical Center Project, Escrowed to Maturity | ||||||||
8.000%, 07/01/2011 § | 1,150 | 1,238 | ||||||
Health Care Authority for Baptist Health, Series D | ||||||||
5.000%, 11/15/2015 | 800 | 809 | ||||||
Huntsville Electric System Revenue (FSA) | ||||||||
4.000%, 12/01/2018 | 1,130 | 1,119 | ||||||
University of Alabama at Birmingham Hospital Revenue, Series A | ||||||||
5.000%, 09/01/2018 « | 1,500 | 1,496 | ||||||
5.750%, 09/01/2022 « | 4,000 | 4,143 | ||||||
11,891 | ||||||||
Alaska – 0.1% | ||||||||
Revenue Bond – 0.1% | ||||||||
Aleutians East Borough Project, Aleutian Pribilof Islands (ACA) | ||||||||
4.375%, 06/01/2015 | 400 | 359 | ||||||
Arizona – 3.3% | ||||||||
Revenue Bonds – 1.7% | ||||||||
Arizona Game & Fish Department, AGF Administration Building Project | ||||||||
4.500%, 07/01/2015 | 150 | 152 | ||||||
Arizona Health Facilities Authority, The Terraces Project, Series A, Pre-refunded 11/15/2013 @ 101 | ||||||||
7.500%, 11/15/2023 ◊ | 3,300 | 3,849 | ||||||
Phoenix Street & Highway User, Escrowed to Maturity | ||||||||
6.500%, 07/01/2009 § | 180 | 183 | ||||||
6.250%, 07/01/2011 § | 900 | 913 | ||||||
Scottsdale Industrial Development Authority Hospital Revenue, Scottsdale Healthcare, Series A | ||||||||
5.000%, 09/01/2020 | 1,000 | 990 | ||||||
Tempe Industrial Development Authority, Friendship Village Project, Series A | ||||||||
5.375%, 12/01/2013 | 1,300 | 1,270 | ||||||
Tucson Airport Authority (FSA) | ||||||||
5.000%, 06/01/2013 | 3,760 | 3,985 | ||||||
11,342 | ||||||||
General Obligations – 1.0% | ||||||||
Gila County Unified School District #10, Payson School Improvement Project of 2006, Series A (AMBAC) | ||||||||
1.000% through 07/01/2009, thereafter 5.000%, 07/01/2016 | 1,000 | 1,023 | ||||||
1.000% through 07/01/2009, thereafter 5.000%, 07/01/2017 | 1,050 | 1,070 | ||||||
Maricopa County School District #69, Paradise Valley (MBIA) | ||||||||
5.300%, 07/01/2011 | 1,000 | 1,056 | ||||||
Maricopa County Unified School District #48, Scottsdale School Improvement Project 2004, Series B (FSA) | ||||||||
4.750%, 07/01/2018 | 1,150 | 1,202 |
The accompanying notes are an integral part of the financial statements.
52 First American Funds 2008 Annual Report
Intermediate Tax Free Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Pima County Unified School District #1, Tucson Project of 2004, Series C (FGIC) | ||||||||
4.375%, 07/01/2018 | $ | 1,000 | $ | 990 | ||||
4.500%, 07/01/2019 | 1,000 | 990 | ||||||
6,331 | ||||||||
Certificate of Participation – 0.6% | ||||||||
Arizona Board of Regents, Series B (AMBAC) | ||||||||
4.500%, 06/01/2018 | 4,120 | 4,210 | ||||||
21,883 | ||||||||
Arkansas – 0.8% | ||||||||
Revenue Bonds – 0.8% | ||||||||
Pulaski County, Residential Housing Facilities Board, Escrowed to Maturity (FGIC) (FHA) (VA) | ||||||||
7.250%, 06/01/2010 § | 875 | 926 | ||||||
University of Arkansas, Fayetteville, Series B (FGIC) | ||||||||
4.500%, 11/01/2016 | 2,000 | 2,044 | ||||||
University of Arkansas, UAMS Campus (FGIC) | ||||||||
5.000%, 03/01/2015 | 1,000 | 1,057 | ||||||
Washington County Hospital Revenue, Regional Medical Center, Series B | ||||||||
5.000%, 02/01/2016 | 1,145 | 1,141 | ||||||
5,168 | ||||||||
California – 5.7% | ||||||||
Revenue Bonds – 3.5% | ||||||||
ABAG Financial Authority for Nonprofit California Revenue, Children’s Hospital, Series A | ||||||||
4.500%, 12/01/2018 | 1,525 | 1,465 | ||||||
Alameda Corridor Transportation Authority, Zero Coupon Bond (AMBAC) | ||||||||
4.570%, 10/01/2014 ¤ | 2,000 | 1,508 | ||||||
Apple Valley Redevelopment Agency, Tax Allocation, Project Area #2 (AMBAC) | ||||||||
4.500%, 06/01/2018 | 920 | 919 | ||||||
Association of Bay Area Governments Financial Authority for Nonprofit Corporations, Elder Care Alliance (CMI) | ||||||||
4.500%, 08/15/2012 | 335 | 341 | ||||||
5.000%, 08/15/2017 | 1,215 | 1,235 | ||||||
California Educational Facilities Authority, Lutheran University, Series C | ||||||||
5.000%, 10/01/2024 | 1,000 | 952 | ||||||
California Municipal Financial Authority, Solid Waste Disposal Revenue, Waste Management Incorporated Project, Mandatory Put 09/01/2009 @ 100 (AMT) | ||||||||
4.100%, 09/01/2014 | 250 | 249 | ||||||
California State Department of Water Resources and Power Supply Revenue, Series H (FSA) | ||||||||
5.000%, 05/01/2022 | 1,000 | 1,050 | ||||||
California Statewide Communities Development Authority, Elder Care Alliance, Series A, Escrowed to Maturity | ||||||||
7.250%, 11/15/2011 § | 1,025 | 1,097 | ||||||
California Statewide Communities Development Authority, Health Facilities, Adventist Health, Series A | ||||||||
5.000%, 03/01/2030 | 700 | 668 | ||||||
California Statewide Communities Development Authority, Henry Mayo Newhall Memorial, Series B (AMBAC) (CMI) | ||||||||
5.200%, 10/01/2037 | 1,000 | 979 | ||||||
California Statewide Communities Development Authority, Kaiser Permanente, Series C, Mandatory Put 06/01/2012 @ 100 | ||||||||
3.850%, 11/01/2029 | 1,180 | 1,174 | ||||||
California Statewide Communities Development Authority, Los Angeles Jewish Home (CMI) | ||||||||
5.000%, 11/15/2012 | 1,210 | 1,267 | ||||||
California Statewide Communities Development Authority, Pollution Control Revenue, Southern California Edison Company, Series C, Mandatory Put 11/01/2016 @ 100 (FGIC) | ||||||||
4.250%, 11/01/2033 | 500 | 471 | ||||||
Golden State Tobacco Securitization Corporation, California Tobacco Settlement, Series A Convertible CABs (FSA) | ||||||||
0.000% through 06/01/2010, thereafter 4.550%, 06/01/2022 ◗ | 2,350 | 1,968 | ||||||
Golden State Tobacco Securitization Corporation, Pre-refunded 06/01/2010 @ 100 | ||||||||
5.600%, 06/01/2028 ◊ | 2,450 | 2,564 | ||||||
Port Oakland, Series B (MBIA) | ||||||||
5.000%, 11/01/2018 | 1,470 | 1,529 | ||||||
San Bernardino County Redevelopment Agency, Tax Allocation, San Sevaine Redevelopment Project, Series A (RAAI) | ||||||||
5.000%, 09/01/2016 | 575 | 574 | ||||||
Upland Community Redevelopment Agency Tax Allocation, Merged Project (AMBAC) | ||||||||
4.250%, 09/01/2026 | 1,400 | 1,280 | ||||||
Whittier Public Finance Authority, Redevelopment Agency, Tax Allocation, Series A (AMBAC) | ||||||||
5.000%, 11/01/2021 | 995 | 1,019 | ||||||
Woodland Financial Authority (XLCA) | ||||||||
4.700%, 03/01/2019 | 815 | 808 | ||||||
23,117 | ||||||||
General Obligations – 2.2% | ||||||||
ABC Unified School District, Series A (MBIA) | ||||||||
4.900%, 02/01/2020 | 1,565 | 1,555 | ||||||
California State | ||||||||
5.000%, 02/01/2016 | 1,000 | 1,042 | ||||||
5.000%, 02/01/2017 | 2,000 | 2,081 | ||||||
4.000%, 08/01/2017 | 2,000 | 1,968 | ||||||
5.000%, 11/01/2018 | 245 | 251 | ||||||
5.000%, 08/01/2019 | 500 | 520 | ||||||
5.000%, 02/01/2021 | 1,500 | 1,527 | ||||||
5.000%, 12/01/2023 | 1,000 | 1,020 | ||||||
5.125%, 04/01/2024 | 500 | 509 | ||||||
California State, Pre-refunded 11/01/2011 @ 100 | ||||||||
5.000%, 11/01/2018 ◊ | 15 | 16 | ||||||
Grant Joint Union High School District, Capital Appreciation, Election 2006, Zero Coupon Bond (FSA) | ||||||||
5.272%, 08/01/2026 ¤ | 1,300 | 507 | ||||||
Roseville Joint Unified High School District | ||||||||
5.100%, 08/01/2019 | 390 | 403 | ||||||
San Mateo Unified High School District, Series B, Zero Coupon Bond (FGIC) | ||||||||
4.757%, 09/01/2017 ¤ | 1,000 | 650 | ||||||
Santa Monica Community College District, Capital Appreciation, 2002 Election, Series C, Zero Coupon Bond (MBIA) | ||||||||
4.505%, 08/01/2016 ¤ | 2,000 | 1,395 |
First American Funds 2008 Annual Report 53
Schedule of Investments June 30, 2008, all dollars are rounded to thousands (000)
Intermediate Tax Free Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Victor Elementary School District, Series A, Zero Coupon Bond (FGIC) | ||||||||
5.490%, 08/01/2023 ¤ | $ | 2,030 | $ | 897 | ||||
14,341 | ||||||||
37,458 | ||||||||
Colorado – 8.9% | ||||||||
Revenue Bonds – 8.3% | ||||||||
Adams County Pollution Control Revenue, Public Service Company Colorado Project, Series A (MBIA) | ||||||||
4.375%, 09/01/2017 | 5,000 | 4,986 | ||||||
Arapahoe County, Single Family, Escrowed to Maturity, Zero Coupon Bond (IMI) | ||||||||
3.097%, 09/01/2010 § ¤ | 9,320 | 8,719 | ||||||
Colorado Health Facilities Authority, Catholic Health, Series C-7 (FSA) | ||||||||
4.350%, 09/01/2020 | 725 | 706 | ||||||
Colorado Health Facilities Authority, Parkview Medical Center | ||||||||
5.000%, 09/01/2016 | 640 | 647 | ||||||
Colorado Springs Hospital Revenue, Series B (AMBAC) | ||||||||
3.000%, 12/15/2024 Y | 7,275 | 7,275 | ||||||
Colorado State Educational & Cultural Facilities Authority, Bromley East Charter School Project, Pre-refunded 09/15/2011 @ 100 | ||||||||
6.750%, 09/15/2015 ◊ | 1,200 | 1,324 | ||||||
Colorado State Educational & Cultural Facilities Authority, Cheyenne Mountain Charter School, Series A (SMO) | ||||||||
4.750%, 06/15/2022 | 175 | 169 | ||||||
Colorado State Educational & Cultural Facilities Authority, Classical Academy Charter School Project, Escrowed to Maturity | ||||||||
6.375%, 12/01/2011 § | 500 | 530 | ||||||
Colorado State Educational & Cultural Facilities Authority, Classical Academy Charter School Project, Pre-refunded 12/01/2011 @ 100 | ||||||||
6.750%, 12/01/2016 ◊ | 1,500 | 1,675 | ||||||
7.250%, 12/01/2021 ◊ | 1,500 | 1,697 | ||||||
Colorado State Educational & Cultural Facilities Authority, Pinnacle Charter School Project, Escrowed to Maturity | ||||||||
5.250%, 12/01/2011 § | 825 | 862 | ||||||
Colorado State Health Facilities Authority, Christian Living Communities Project, Series A | ||||||||
5.250%, 01/01/2014 | 600 | 578 | ||||||
5.250%, 01/01/2015 | 620 | 591 | ||||||
Colorado State Health Facilities Authority, Covenant Retirement Communities | ||||||||
5.000%, 12/01/2016 | 500 | 494 | ||||||
Colorado State Health Facilities Authority, Health & Residential Care Facilities, Volunteers of America Care, Series A | ||||||||
5.200%, 07/01/2022 | 1,000 | 909 | ||||||
Colorado State Health Facilities Authority, Longmont United Hospital, Series B (RAAI) | ||||||||
4.250%, 12/01/2015 | 1,250 | 1,204 | ||||||
Colorado State Health Facilities Authority, Retirement Facilities, Escrowed to Maturity, Zero Coupon Bond | ||||||||
4.660%, 07/15/2020 § ¤ | 10,000 | 5,742 | ||||||
Colorado State Health Facilities Authority, Valley View Hospital Association Project, Series A (RAAI) | ||||||||
5.000%, 05/15/2012 | 500 | 509 | ||||||
5.000%, 05/15/2013 | 405 | 412 | ||||||
Colorado State Housing Finance Authority, Series A-2 | ||||||||
7.150%, 11/01/2014 | 10 | 10 | ||||||
E-470 Public Highway Authority, Series C Convertible CABs (MBIA) | ||||||||
0.000% through 09/01/2011, thereafter 5.000%, 09/01/2017 ◗ | 1,500 | 1,281 | ||||||
High Plains Metropolitan District, Series B (LOC: Compass Bank) | ||||||||
4.375%, 12/01/2015 | 320 | 324 | ||||||
Hyland Hills Metropolitan Park & Recreation District, Special Revenue (ACA) | ||||||||
5.000%, 12/15/2015 | 500 | 489 | ||||||
Mesa County, Escrowed to Maturity, Zero Coupon Bond | ||||||||
3.510%, 12/01/2011 § ¤ | 5,500 | 4,883 | ||||||
Montrose Memorial Hospital | ||||||||
5.700%, 12/01/2017 | 2,170 | 2,204 | ||||||
Northwest Parkway Public Highway Authority Convertible CABs, Escrowed to Maturity (AMBAC) | ||||||||
0.000% through 06/15/2011, thereafter 5.250%, 06/15/2015 § ◗ | 2,750 | 2,561 | ||||||
Platte River Power Authority, Series GG (FSA) | ||||||||
4.500%, 06/01/2017 | 1,725 | 1,791 | ||||||
Walker Field Public Airport Authority Revenue | ||||||||
5.000%, 12/01/2022 | 1,000 | 925 | ||||||
Westminster Special Purpose Sales & Use Tax, Post Project, Series D (FSA) | ||||||||
5.000%, 12/01/2025 | 1,365 | 1,411 | ||||||
54,908 | ||||||||
General Obligations – 0.3% | ||||||||
Fiddlers Business Improvement District, Greenwood Village, Series 1 (ACA) | ||||||||
5.000%, 12/01/2022 | 1,000 | 929 | ||||||
Midcities Metropolitan District #2 (RAAI) | ||||||||
4.875%, 12/01/2016 | 385 | 383 | ||||||
North Range Metropolitan District #1 (ACA) | ||||||||
4.300%, 12/15/2019 | 1,000 | 843 | ||||||
2,155 | ||||||||
Certificate of Participation – 0.3% | ||||||||
Rangeview Library District, Rangeview Library Project (AGTY) | ||||||||
4.500%, 12/15/2020 | 1,755 | 1,740 | ||||||
58,803 | ||||||||
Connecticut – 0.2% | ||||||||
Revenue Bond – 0.2% | ||||||||
Connecticut State Health & Educational Facilities Authority, Griffin Hospital, Series B (RAAI) | ||||||||
5.000%, 07/01/2014 | 1,185 | 1,211 | ||||||
Florida – 1.0% | ||||||||
Revenue Bonds – 0.7% | ||||||||
Miami-Dade County Educational Facilities Authority, University of Miami, Series A | ||||||||
5.150%, 04/01/2023 | 2,520 | 2,536 |
The accompanying notes are an integral part of the financial statements.
54 First American Funds 2008 Annual Report
Intermediate Tax Free Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Palm Beach County Health Facilities Authority, Abbey Delray South, Life Care Retirement Community | ||||||||
5.250%, 10/01/2013 | $ | 1,400 | $ | 1,400 | ||||
Vero Beach Electric Revenue, Series A (FSA) | ||||||||
4.000%, 12/01/2019 | 350 | 339 | ||||||
4,275 | ||||||||
Certificate of Participation – 0.3% | ||||||||
Clay County School Board, Series B (MBIA) | ||||||||
5.000%, 07/01/2018 | 2,205 | 2,258 | ||||||
6,533 | ||||||||
Georgia – 1.1% | ||||||||
Revenue Bonds – 1.0% | ||||||||
Atlanta Tax Allocation, Atlantic Station Project (AGTY) | ||||||||
4.375%, 12/01/2018 | 2,000 | 1,970 | ||||||
Fulton County Residential Care Facilities, Canterbury Court Project, Series A | ||||||||
5.800%, 02/15/2018 | 4,500 | 4,320 | ||||||
6,290 | ||||||||
General Obligations – 0.1% | ||||||||
Fayette County School District Convertible CABs (FSA) | ||||||||
0.000% through 09/01/2010, thereafter 4.150%, 03/01/2014 ◗ | 500 | 461 | ||||||
0.000% through 09/01/2010, thereafter 4.250%, 03/01/2015 ◗ | 265 | 244 | ||||||
0.000% through 09/01/2010, thereafter 4.350%, 03/01/2016 ◗ | 300 | 275 | ||||||
980 | ||||||||
7,270 | ||||||||
Idaho – 0.4% | ||||||||
Revenue Bond – 0.2% | ||||||||
University of Idaho, University Revenue, Series B, Mandatory Put 04/01/2018 @ 100 (FSA) | ||||||||
4.500%, 04/01/2041 | 1,000 | 1,002 | ||||||
Certificates of Participation – 0.2% | ||||||||
Madison County Hospital Revenue | ||||||||
5.000%, 09/01/2012 | 500 | 498 | ||||||
5.250%, 09/01/2015 | 295 | 291 | ||||||
5.250%, 09/01/2016 | 500 | 486 | ||||||
1,275 | ||||||||
2,277 | ||||||||
Illinois – 16.6% | ||||||||
Revenue Bonds – 7.5% | ||||||||
Chicago, Midway Airport Project, Series C (MBIA) | ||||||||
5.500%, 01/01/2014 | 1,300 | 1,395 | ||||||
Chicago Water, Zero Coupon Bond (FGIC) | ||||||||
2.954%, 11/01/2009 ¤ | 6,450 | 6,202 | ||||||
Granite Single Family Mortgage, Escrowed to Maturity | ||||||||
7.750%, 10/01/2011 § | 480 | 524 | ||||||
Illinois Development Finance Authority, Midwestern University, Series B, Pre-refunded 05/15/2011 @ 101 | ||||||||
5.750%, 05/15/2016 ◊ | 350 | 379 | ||||||
Illinois Educational Facilities Authority, Art Institute of Chicago, Mandatory Put 03/01/2016 @ 100 | ||||||||
4.125%, 03/01/2030 | 500 | 486 | ||||||
Illinois Educational Facilities Authority, Art Institute of Chicago, Mandatory Put 03/01/2017 @ 100 | ||||||||
4.750%, 03/01/2030 | 1,000 | 990 | ||||||
Illinois Finance Authority, Clare at Water Tower Project, Series A | ||||||||
5.400%, 05/15/2014 | 1,000 | 961 | ||||||
5.500%, 05/15/2015 | 1,000 | 958 | ||||||
Illinois Finance Authority, Edward Hospital, Series A (AMBAC) | ||||||||
6.000%, 02/01/2025 | 1,200 | 1,282 | ||||||
6.000%, 02/01/2026 | 875 | 930 | ||||||
6.000%, 02/01/2028 | 500 | 526 | ||||||
Illinois Finance Authority, Franciscan Communities, Series A | ||||||||
5.500%, 05/15/2027 | 1,000 | 883 | ||||||
Illinois Finance Authority, Friendship Village Schaumburg, Series A | ||||||||
5.000%, 02/15/2015 | 2,500 | 2,336 | ||||||
Illinois Finance Authority, Landing at Plymouth Project, Series A | ||||||||
5.250%, 05/15/2014 | 1,320 | 1,267 | ||||||
Illinois Finance Authority, Peoples Gas, Light and Coke Co., Series A, Mandatory Put 06/01/2016 @ 100 (AMBAC) | ||||||||
4.300%, 06/01/2035 | 2,000 | 1,865 | ||||||
Illinois Finance Authority, Roosevelt University | ||||||||
5.250%, 04/01/2022 | 500 | 488 | ||||||
5.400%, 04/01/2027 | 1,750 | 1,711 | ||||||
Illinois Finance Authority, Three Crowns Park Plaza, Series A | ||||||||
5.500%, 02/15/2014 | 2,430 | 2,362 | ||||||
Illinois Sports Facilities Authority, State Tax Supported Convertible CABs (AMBAC) | ||||||||
0.000% through 06/15/2010, thereafter 4.750%, 06/15/2013 ◗ | 1,405 | 1,331 | ||||||
0.000% through 06/15/2010, thereafter 5.100%, 06/15/2016 ◗ | 1,620 | 1,554 | ||||||
Illinois State Development Finance Authority, Elgin School District, Zero Coupon Bond (FSA) | ||||||||
4.760%, 01/01/2018 ¤ | 2,750 | 1,759 | ||||||
Illinois State Development Finance Authority, Elmhurst Community School #205, Pre-refunded 01/01/2011 @ 100 (FSA) | ||||||||
6.375%, 01/01/2013 ◊ | 1,025 | 1,110 | ||||||
Illinois State Health Facilities Authority, Evangelical, Escrowed to Maturity | ||||||||
6.750%, 04/15/2012 § | 1,090 | 1,168 | ||||||
Illinois State Health Facilities Authority, Mercy Hospital & Medical Center, Escrowed to Maturity | ||||||||
10.000%, 01/01/2015 § | 590 | 725 | ||||||
Illinois State Sales Tax | ||||||||
6.000%, 06/15/2009 | 2,500 | 2,599 | ||||||
5.100%, 06/15/2010 | 2,000 | 2,089 | ||||||
Metropolitan Pier & Exposition Authority, State Sales Tax, Series A (FGIC) | ||||||||
5.550%, 12/15/2011 | 675 | 702 | ||||||
Metropolitan Pier & Exposition Authority, State Sales Tax, Series A, Escrowed to Maturity, Zero Coupon Bond (FGIC) | ||||||||
2.392%, 06/15/2009 § ¤ | 1,465 | 1,432 |
First American Funds 2008 Annual Report 55
Schedule of Investments June 30, 2008, all dollars are rounded to thousands (000)
Intermediate Tax Free Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Metropolitan Pier & Exposition Authority, State Sales Tax, Series B Convertible CABs (MBIA) | ||||||||
0.000% through 06/15/2012, thereafter 5.200%, 06/15/2017 ◗ | $ | 1,000 | $ | 871 | ||||
Morton Grove, Residential Housing, Escrowed to Maturity (MBIA) | ||||||||
7.350%, 09/01/2009 § | 5,570 | 5,901 | ||||||
Southwestern Illinois Development Authority Revenue, Anderson Hospital | ||||||||
5.125%, 08/15/2026 | 2,000 | 1,877 | ||||||
Southwestern Illinois Development Authority Revenue, Local Government, Triad School District 2 (MBIA) | ||||||||
5.000%, 10/01/2018 | 1,000 | 1,041 | ||||||
49,704 | ||||||||
General Obligations – 9.1% | ||||||||
Bolingbrook Park District, Series A (CIFG) | ||||||||
4.500%, 01/01/2017 | 1,840 | 1,859 | ||||||
Champaign County Community School District #004 | ||||||||
8.250%, 01/01/2009 | 100 | 103 | ||||||
Champaign County Community School District #004, Escrowed to Maturity | ||||||||
8.250%, 01/01/2009 § | 1,215 | 1,254 | ||||||
Chicago, City Colleges, Zero Coupon Bond (FGIC) | ||||||||
4.530%, 01/01/2015 ¤ | 10,000 | 7,473 | ||||||
Chicago Park District, Limited Tax, Series B (AMBAC) | ||||||||
5.000%, 01/01/2020 | 5,545 | 5,731 | ||||||
Chicago Project & Refunding, Series A (FGIC) | ||||||||
5.250%, 01/01/2011 | 2,345 | 2,457 | ||||||
Chicago, Project & Refunding, Series A, Escrowed to Maturity (FGIC) | ||||||||
5.250%, 01/01/2011 § | 2,655 | 2,803 | ||||||
Chicago, Series A Convertible CABs (MBIA) | ||||||||
0.000% through 01/01/2011, thereafter 5.300%, 01/01/2016 ◗ | 2,000 | 1,892 | ||||||
Cook County Community Unit School District #65, Evanston, Series A (FSA) | ||||||||
6.375%, 05/01/2009 | 3,000 | 3,113 | ||||||
Cook County Community Unit School District #102, La Grange, Zero Coupon Bond (FGIC) | ||||||||
4.267%, 12/01/2013 ¤ | 2,440 | 1,941 | ||||||
Cook County Community Unit School District #401, Elmwood Park, Zero Coupon Bond (FSA) | ||||||||
3.570%, 12/01/2011 ¤ | 3,625 | 3,212 | ||||||
Cook County High School District #209, Proviso Township (FSA) | ||||||||
5.000%, 12/01/2016 | 1,000 | 1,073 | ||||||
Cook County School District #88, Bellwood, Series B (FSA) | ||||||||
5.000%, 12/01/2017 | 1,675 | 1,768 | ||||||
Cook County School District #123, Oak Lawn, Capital Appreciation, Zero Coupon Bond (MBIA) | ||||||||
4.615%, 12/01/2015 ¤ | 2,250 | 1,604 | ||||||
Cook County, Series A (MBIA) | ||||||||
6.250%, 11/15/2011 | 1,000 | 1,095 | ||||||
Du Page County Community High School District #94, West Chicago (FSA) | ||||||||
7.250%, 11/01/2009 | 1,780 | 1,895 | ||||||
Elk Grove Village (MBIA) | ||||||||
4.125%, 01/01/2019 | 1,000 | 986 | ||||||
Illinois State, First Series | ||||||||
5.500%, 08/01/2015 | 4,500 | 4,706 | ||||||
Lake County Community Unit School District #60, Waukegan, Series B (FSA) | ||||||||
7.500%, 12/01/2008 | 3,640 | 3,726 | ||||||
Lake County School District #56, Gurnee (FGIC) | ||||||||
8.375%, 01/01/2010 | 1,290 | 1,389 | ||||||
Madison & Jersey Counties Unit School District #11, Alton, Capital Appreciation, Zero Coupon Bond (FSA) | ||||||||
4.799%, 12/01/2019 ¤ | 2,100 | 1,222 | ||||||
McCook | ||||||||
5.000%, 12/01/2026 | 1,150 | 1,122 | ||||||
5.100%, 12/01/2028 | 1,000 | 972 | ||||||
Rockford School District #205 (FGIC) | ||||||||
5.000%, 02/01/2014 | 500 | 522 | ||||||
Southwestern Illinois Development Authority Revenue, Edwardsville Community (FSA) | ||||||||
5.000%, 12/01/2017 | 1,000 | 1,077 | ||||||
Will County School District #86, Joliet, Zero Coupon Bond (FSA) | ||||||||
4.553%, 11/01/2017 ¤ | 3,870 | 2,542 | ||||||
Winnebago County School District #122, Harlem-Love Park, Zero Coupon Bond (FSA) | ||||||||
4.520%, 01/01/2017 ¤ | 3,000 | 2,051 | ||||||
59,588 | ||||||||
109,292 | ||||||||
Indiana – 1.6% | ||||||||
Revenue Bonds – 1.4% | ||||||||
Anderson Economic Development Revenue, Anderson University Project | ||||||||
5.000%, 10/01/2017 | 710 | 701 | ||||||
Avon Community School Building, First Mortgage (AMBAC) (STAID) | ||||||||
4.500%, 07/15/2020 | 1,000 | 992 | ||||||
Franklin Township School Building Corporation, Escrowed to Maturity | ||||||||
5.750%, 07/15/2009 § | 1,235 | 1,285 | ||||||
Indiana Transportation Finance Authority, Escrowed to Maturity (AMBAC) | ||||||||
5.750%, 06/01/2012 § | 180 | 193 | ||||||
Indiana Transportation Finance Authority, Series A (AMBAC) | ||||||||
5.750%, 06/01/2012 | 1,820 | 1,970 | ||||||
Indiana University, Series K, Zero Coupon Bond (MBIA) | ||||||||
3.580%, 08/01/2011 ¤ | 250 | 224 | ||||||
Portage Multi-School Building, First Mortgage (MBIA) (STAID) | ||||||||
4.000%, 07/15/2018 | 1,250 | 1,231 | ||||||
St. Joseph County Economic Development Revenue, Holy Cross Village, Notre Dame Project, Series A | ||||||||
5.750%, 05/15/2016 | 450 | 431 | ||||||
5.550%, 05/15/2019 | 230 | 213 | ||||||
St. Joseph County Hospital Authority (MBIA) | ||||||||
4.750%, 08/15/2012 | 1,000 | 1,011 |
The accompanying notes are an integral part of the financial statements.
56 First American Funds 2008 Annual Report
Intermediate Tax Free Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Zionsville Community Schools Building, First Mortgage Bonds, Pre-refunded 01/15/2012 @ 100 (FGIC) (STAID) | ||||||||
5.750%, 07/15/2015 ◊ | $ | 775 | $ | 839 | ||||
9,090 | ||||||||
General Obligation – 0.2% | ||||||||
Gary Sanitation District, Special Tax District (RAAI) | ||||||||
3.750%, 02/01/2011 | 1,260 | 1,245 | ||||||
10,335 | ||||||||
Iowa – 1.7% | ||||||||
Revenue Bonds – 1.7% | ||||||||
Iowa Finance Authority Health Facilities Revenue, Care Initiatives Project, Series A | ||||||||
5.250%, 07/01/2013 | 1,250 | 1,239 | ||||||
Iowa Finance Authority Retirement Community, Friendship Haven Project, Series A | ||||||||
5.750%, 11/15/2019 | 500 | 482 | ||||||
Iowa Higher Education Authority, Central College (RAAI) | ||||||||
5.450%, 10/01/2026 | 1,000 | 1,007 | ||||||
Iowa Higher Education Authority, Wartburg College Project, Pre-refunded 10/01/2012 @ 100 (ACA) | ||||||||
5.500%, 10/01/2028 ◊ | 2,000 | 2,164 | ||||||
Iowa Higher Education Authority, Wartburg College Project, Series A | ||||||||
4.700%, 10/01/2016 | 925 | 915 | ||||||
4.750%, 10/01/2017 | 1,100 | 1,081 | ||||||
4.800%, 10/01/2018 | 1,155 | 1,125 | ||||||
5.000%, 10/01/2023 | 1,475 | 1,413 | ||||||
Muscatine Electric, Escrowed to Maturity | ||||||||
9.700%, 01/01/2013 § | 1,375 | 1,580 | ||||||
11,006 | ||||||||
Kansas – 2.9% | ||||||||
Revenue Bonds – 2.3% | ||||||||
Johnson County Residual Housing, Escrowed to Maturity, Zero Coupon Bond | ||||||||
3.687%, 05/01/2012 § ¤ | 7,500 | 6,519 | ||||||
Kansas State Development Finance Authority, Health Facilities Revenue, Hays Medical Center, Series L | ||||||||
4.500%, 11/15/2017 | 1,405 | 1,379 | ||||||
Kansas State Development Finance Authority, Health Facilities Revenue, Stormont-Vail Healthcare Services, Series F | ||||||||
5.000%, 11/15/2021 | 1,000 | 981 | ||||||
Kansas State Development Finance Authority, Kansas State Projects, Series K (MBIA) | ||||||||
4.500%, 11/01/2019 | 1,850 | 1,876 | ||||||
La Cygne Environmental Improvement Revenue, Kansas City Power & Light (XLCA) | ||||||||
4.050%, 03/01/2015 | 1,000 | 979 | ||||||
Olathe Health Facilities Revenue, Olathe Medical Center | ||||||||
5.125%, 09/01/2021 | 1,000 | 1,015 | ||||||
Olathe Senior Living Facility Revenue, Catholic Care Campus, Series A | ||||||||
5.750%, 11/15/2013 | 700 | 699 | ||||||
5.750%, 11/15/2014 | 765 | 763 | ||||||
5.750%, 11/15/2015 | 820 | 815 | ||||||
Sedgwick & Shawnee Counties, Single Family Mortgages, Series A-2 (GNMA) | ||||||||
6.700%, 06/01/2029 | 285 | 290 | ||||||
15,316 | ||||||||
General Obligations – 0.6% | ||||||||
Johnson County Unified School District #231, Series B (AMBAC) | ||||||||
4.000%, 10/01/2017 | 800 | 781 | ||||||
Johnson County Unified School District #232, Series A (FSA) | ||||||||
4.250%, 09/01/2016 | 2,000 | 2,043 | ||||||
Sedgwick County School District #267 (AMBAC) | ||||||||
5.250%, 11/01/2012 | 1,045 | 1,112 | ||||||
3,936 | ||||||||
19,252 | ||||||||
Kentucky – 0.3% | ||||||||
Revenue Bonds – 0.3% | ||||||||
Kentucky State Turnpike Authority, Escrowed to Maturity | ||||||||
7.200%, 07/01/2009 § | 475 | 487 | ||||||
6.000%, 07/01/2011 § | 440 | 465 | ||||||
Louisville/Jefferson County Metropolitan Government College Revenue, Bellarmine University, Series A | ||||||||
6.000%, 05/01/2028 « | 1,135 | 1,146 | ||||||
2,098 | ||||||||
Louisiana – 0.9% | ||||||||
Revenue Bonds – 0.4% | ||||||||
Louisiana Local Government Environmental Facilities, Community Development Authority (AMT) | ||||||||
6.650%, 01/01/2025 | 560 | 556 | ||||||
Louisiana Public Facilities Authority, Pennington Medical Foundation Project | ||||||||
5.000%, 07/01/2021 | 1,000 | 982 | ||||||
St. Tammany Parish Sales Tax Revenue, District #03, Sales & Use Tax (CIFG) | ||||||||
5.000%, 06/01/2017 | 1,405 | 1,465 | ||||||
3,003 | ||||||||
General Obligations – 0.5% | ||||||||
Calcasieu Parish School District #023, Public School Improvement | ||||||||
4.600%, 02/15/2020 | 500 | 488 | ||||||
4.700%, 02/15/2021 | 700 | 681 | ||||||
4.800%, 02/15/2022 | 655 | 639 | ||||||
Louisiana, Series B (CIFG) | ||||||||
5.000%, 07/15/2015 | 1,300 | 1,379 | ||||||
3,187 | ||||||||
6,190 | ||||||||
Maine – 0.4% | ||||||||
Revenue Bond – 0.1% | ||||||||
Maine Health & Higher Education Facilities Authority, Series B (FGIC) | ||||||||
4.125%, 07/01/2018 | 740 | 715 | ||||||
General Obligation – 0.3% | ||||||||
Maine Municipal Bond Bank, Series B (FSA) | ||||||||
5.750%, 11/01/2010 | 2,000 | 2,132 | ||||||
2,847 | ||||||||
First American Funds 2008 Annual Report 57
Schedule of Investments June 30, 2008, all dollars are rounded to thousands (000)
Intermediate Tax Free Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Maryland – 0.2% | ||||||||
Revenue Bonds – 0.2% | ||||||||
Westminster Educational Facilities Revenue, McDaniel College | ||||||||
5.000%, 11/01/2013 | $ | 350 | $ | 358 | ||||
4.000%, 11/01/2015 | 700 | 668 | ||||||
1,026 | ||||||||
Massachusetts – 2.8% | ||||||||
Revenue Bonds – 2.6% | ||||||||
Massachusetts Bay Transportation Authority, General Transportation System Project, Series C (FGIC) | ||||||||
5.750%, 03/01/2010 | 2,100 | 2,200 | ||||||
Massachusetts Bay Transportation Authority, Series A (COMGTY) | ||||||||
6.250%, 03/01/2012 | 1,875 | 2,059 | ||||||
Massachusetts State Commonwealth, Special Obligation, Series A | ||||||||
5.500%, 06/01/2013 | 1,000 | 1,091 | ||||||
Massachusetts State Development Finance Agency, Health Care Facilities Revenue, Adventcare Project, Series A | ||||||||
6.650%, 10/15/2028 | 2,500 | 2,249 | ||||||
Massachusetts State Health & Educational Authority Revenue, Berkshire Health System, Series F (AGTY) | ||||||||
5.000%, 10/01/2015 | 2,000 | 2,121 | ||||||
Massachusetts State Health & Educational Facilities Authority, Caregroup, Series E-1 | ||||||||
5.000%, 07/01/2028 | 300 | 286 | ||||||
Massachusetts State Health & Educational Facilities Authority, Partners Healthcare System, Series A (MBIA) | ||||||||
5.100%, 07/01/2010 | 3,000 | 3,020 | ||||||
Massachusetts State Port Authority, Escrowed to Maturity | ||||||||
13.000%, 07/01/2013 § | 3,330 | 4,169 | ||||||
17,195 | ||||||||
General Obligation – 0.2% | ||||||||
Springfield, State Qualified Municipal Purpose (FSA) (STAID) | ||||||||
4.500%, 08/01/2020 | 1,400 | 1,431 | ||||||
18,626 | ||||||||
Michigan – 3.4% | ||||||||
Revenue Bonds – 2.5% | ||||||||
Detroit Water Supply, Escrowed to Maturity (FGIC) | ||||||||
6.250%, 07/01/2012 § | 285 | 302 | ||||||
Kalamazoo Hospital Finance Authority, Bronson Hospital, Series A (FSA) | ||||||||
5.000%, 05/15/2020 | 2,675 | 2,737 | ||||||
Michigan Municipal Board Authority, Local Government Loan Program, Series B, Group A (AMBAC) | ||||||||
5.000%, 12/01/2018 | 600 | 623 | ||||||
Michigan State Grant Anticipation Bonds (FSA) | ||||||||
4.500%, 09/15/2015 | 1,000 | 1,044 | ||||||
Michigan State Hospital Finance Authority, Henry Ford Health Systems, Series A, Pre-refunded 03/01/2013 @ 100 | ||||||||
5.500%, 03/01/2015 ◊ | 3,150 | 3,408 | ||||||
Michigan State Housing Development Authority, Green Hill Project (FNMA) | ||||||||
5.125%, 07/15/2008 | 220 | 220 | ||||||
Romulus Economic Development Corporation, Partnership Project, Escrowed to Maturity | ||||||||
7.000%, 11/01/2015 § | 1,300 | 1,546 | ||||||
Wayne Charter County Airport, Series A (AMT) (MBIA) | ||||||||
5.250%, 12/01/2009 | 5,000 | 5,086 | ||||||
Western Michigan University Revenue (FSA) | ||||||||
5.000%, 11/15/2023 | 1,300 | 1,352 | ||||||
16,318 | ||||||||
General Obligations – 0.9% | ||||||||
Algonac Community Schools, School Building & Site, Series I (FSA) (MQSBLF) | ||||||||
4.000%, 05/01/2019 | 840 | 822 | ||||||
Constantine Public Schools (MQSBLF) | ||||||||
5.000%, 05/01/2016 | 1,075 | 1,129 | ||||||
Detroit (AMT) (FSA) | ||||||||
5.750%, 04/01/2009 | 1,255 | 1,286 | ||||||
Marysville Public School District, School Building & Site (FSA) (MQSBLF) | ||||||||
4.250%, 05/01/2018 | 630 | 637 | ||||||
Rochester Community School District, Series 1, Pre-refunded 05/01/2010 @ 100 (FGIC) (MQSBLF) | ||||||||
5.375%, 05/01/2011 ◊ | 2,000 | 2,097 | ||||||
5,971 | ||||||||
22,289 | ||||||||
Minnesota – 2.4% | ||||||||
Revenue Bonds – 2.2% | ||||||||
Aitkin Health Care Facilities, Riverwood Healthcare Center | ||||||||
5.375%, 02/01/2017 | 1,590 | 1,550 | ||||||
Minneapolis & St. Paul Metropolitan Airports Commission, Series A (MBIA) | ||||||||
5.000%, 01/01/2019 | 1,165 | 1,193 | ||||||
Minneapolis & St. Paul Metropolitan Airports Commission, Series B (AMT) (FGIC) | ||||||||
5.750%, 01/01/2010 | 1,000 | 1,026 | ||||||
Minneapolis Hospital & Rehabilitation, Escrowed to Maturity | ||||||||
10.000%, 06/01/2013 § | 660 | 781 | ||||||
Minnesota Agricultural & Economic Development Board, Health Care Systems, Series A | ||||||||
5.875%, 11/15/2011 | 2,135 | 2,254 | ||||||
Minnesota State Higher Education Facilities Revenue, College of Art & Design, Series 6-K | ||||||||
5.000%, 05/01/2012 | 295 | 300 | ||||||
Monticello Big Lake Community Hospital District, Health Care Facilities, Series C | ||||||||
5.250%, 12/01/2011 | 1,940 | 1,946 | ||||||
Northfield Hospital Revenue | ||||||||
5.000%, 11/01/2012 | 785 | 796 | ||||||
St. Paul Housing & Redevelopment Authority (AMBAC) | ||||||||
6.500%, 02/01/2009 | 1,315 | 1,333 | ||||||
St. Paul Housing & Redevelopment Authority, Allina Health Systems, Series A (MBIA) | ||||||||
5.000%, 11/15/2019 | 1,235 | 1,267 | ||||||
St. Paul Port Authority Hotel, Pre-refunded 08/01/2008 @ 100 | ||||||||
8.050%, 08/01/2021 ◊ | 2,335 | 2,348 | ||||||
14,794 | ||||||||
The accompanying notes are an integral part of the financial statements.
58 First American Funds 2008 Annual Report
Intermediate Tax Free Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
General Obligation – 0.2% | ||||||||
Fridley Independent School District #14, Series A (FSA) (MSDCEP) | ||||||||
5.000%, 02/01/2017 | $ | 1,030 | $ | 1,113 | ||||
15,907 | ||||||||
Mississippi – 0.2% | ||||||||
Revenue Bond – 0.2% | ||||||||
Mississippi Hospital Equipment & Facilities Authority, Mississippi Baptist Health Systems, Series A | ||||||||
5.000%, 08/15/2016 | 1,440 | 1,476 | ||||||
Missouri – 2.1% | ||||||||
Revenue Bonds – 2.1% | ||||||||
Boone County Hospital Revenue, Boone Hospital Center | ||||||||
5.750%, 08/01/2028 | 1,750 | 1,818 | ||||||
Hannibal Industrial Development Authority, Health Facilities Revenue, Hannibal Regional Hospital | ||||||||
4.350%, 03/01/2014 | 1,405 | 1,381 | ||||||
Joplin Individual Development Authority Health Facilities, Freeman Health System Project | ||||||||
4.125%, 02/15/2009 | 750 | 753 | ||||||
Kansas City Special Obligation, East Village Project, Series B (AGTY) | ||||||||
5.000%, 04/15/2022 | 505 | 523 | ||||||
Missouri Joint Municipal Electric Utilities, Commission Power Project Revenue, Plum Point Project (MBIA) | ||||||||
4.200%, 01/01/2018 | 1,000 | 954 | ||||||
Missouri Joint Municipal Electric Utilities, Commission Power Project Revenue, Series A (AMBAC) | ||||||||
5.000%, 01/01/2018 | 2,000 | 2,059 | ||||||
Missouri State Development Finance Board Infrastructure Revenue, Independence-Crackerneck Creek, Series B | ||||||||
5.125%, 03/01/2022 | 2,000 | 1,904 | ||||||
Missouri State Development Finance Board Revenue, Midwest Research Institute Project | ||||||||
5.000%, 11/01/2016 | 1,130 | 1,050 | ||||||
Missouri State Health & Educational Facilities Revenue, Senior Living Facilities, Lutheran, Series B | ||||||||
4.350%, 02/01/2015 | 850 | 817 | ||||||
4.375%, 02/01/2016 | 930 | 882 | ||||||
Osage Beach Tax Increment, Prewitts Project | ||||||||
4.800%, 05/01/2016 | 1,650 | 1,539 | ||||||
13,680 | ||||||||
Montana – 1.0% | ||||||||
Revenue Bonds – 1.0% | ||||||||
Montana Facilities Finance Authority Revenue, Benefits Health System (AGTY) | ||||||||
5.000%, 01/01/2017 | 1,000 | 1,042 | ||||||
Montana Facilities Finance Authority Revenue, Health Care Facilities, Master Loan Project, Northeast Montana, Series B | ||||||||
4.500%, 05/01/2018 | 455 | 449 | ||||||
Montana Facilities Finance Authority Revenue, Senior Living, St. Johns Lutheran, Series A | ||||||||
5.750%, 05/15/2016 | 1,800 | 1,748 | ||||||
6.000%, 05/15/2025 | 1,675 | 1,574 | ||||||
Montana State Department of Transportation Revenue, Grant Anticipation Notes, Highway 93 Construction | ||||||||
4.000%, 06/01/2019 | 2,090 | 2,054 | ||||||
6,867 | ||||||||
Nebraska – 1.6% | ||||||||
Revenue Bonds – 1.6% | ||||||||
Douglas County Hospital Authority #002, Nebraska Medical Center, Clarkson Regional Health Guaranty (AGTY) | ||||||||
5.000%, 11/15/2011 | 2,860 | 2,977 | ||||||
Douglas County Hospital Authority #3, Methodist Health | ||||||||
5.750%, 11/01/2028 | 1,000 | 1,024 | ||||||
Douglas County Zoo Facilities Revenue, Omaha’s Henry Doorly Zoo Project | ||||||||
4.750%, 09/01/2017 | 745 | 756 | ||||||
4.750%, 09/01/2018 | 740 | 747 | ||||||
Lancaster County Hospital Authority #1, BryanLGH Medical Center Project | ||||||||
4.000%, 06/01/2018 | 2,000 | 1,845 | ||||||
Nebraska Investment Financial Authority, Great Plains Regional Medical Center (RAAI) | ||||||||
4.700%, 11/15/2011 | 500 | 504 | ||||||
4.800%, 11/15/2012 | 500 | 502 | ||||||
4.900%, 11/15/2013 | 600 | 601 | ||||||
Omaha Public Power District, Nebraska Electric Revenue, Series A | ||||||||
4.100%, 02/01/2019 | 1,370 | 1,350 | ||||||
10,306 | ||||||||
Nevada – 0.6% | ||||||||
Revenue Bonds – 0.3% | ||||||||
Carson City Hospital Revenue, Carson-Tahoe Hospital | ||||||||
5.750%, 09/01/2011 | 550 | 573 | ||||||
5.750%, 09/01/2012 | 580 | 605 | ||||||
Carson City Hospital Revenue, Carson-Tahoe Hospital, Escrowed to Maturity | ||||||||
5.750%, 09/01/2011 § | 450 | 480 | ||||||
5.750%, 09/01/2012 § | 475 | 513 | ||||||
2,171 | ||||||||
General Obligation – 0.3% | ||||||||
Washoe County, Escrowed to Maturity | ||||||||
9.875%, 08/01/2009 § | 1,575 | 1,645 | ||||||
3,816 | ||||||||
New Hampshire – 0.5% | ||||||||
Revenue Bonds – 0.5% | ||||||||
New Hampshire Health & Education Facilities Authority | ||||||||
5.375%, 07/01/2024 | 1,250 | 1,215 | ||||||
New Hampshire Municipal Bond Bank, Series A (MBIA) | ||||||||
4.500%, 02/15/2020 | 1,300 | 1,321 | ||||||
New Hampshire State Health & Educational Facilities Authority, Speare Memorial Hospital | ||||||||
5.500%, 07/01/2025 | 1,000 | 962 | ||||||
3,498 | ||||||||
New Jersey – 0.3% | ||||||||
Revenue Bonds – 0.3% | ||||||||
New Jersey Economic Development Authority, Cigarette Tax | ||||||||
5.500%, 06/15/2016 | 2,000 | 1,984 |
First American Funds 2008 Annual Report 59
Schedule of Investments June 30, 2008, all dollars are rounded to thousands (000)
Intermediate Tax Free Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
New Jersey State Turnpike Authority, Escrowed to Maturity | ||||||||
6.750%, 01/01/2009 § | $ | 245 | $ | 251 | ||||
2,235 | ||||||||
New York – 2.3% | ||||||||
Revenue Bonds – 1.0% | ||||||||
Hempstead Town Industrial Development Agency (MBIA) | ||||||||
5.000%, 12/01/2008 | 2,000 | 2,025 | ||||||
Long Island Power Authority, Series B | ||||||||
5.250%, 12/01/2013 | 4,000 | 4,265 | ||||||
6,290 | ||||||||
General Obligations – 1.3% | ||||||||
New York, Series A | ||||||||
5.750%, 08/01/2015 | 3,220 | 3,457 | ||||||
New York, Series C | ||||||||
5.500%, 03/15/2014 | 3,000 | 3,175 | ||||||
New York, Series D | ||||||||
5.500%, 06/01/2012 | 2,000 | 2,145 | ||||||
8,777 | ||||||||
15,067 | ||||||||
North Carolina – 2.0% | ||||||||
Revenue Bonds – 1.9% | ||||||||
North Carolina Eastern Power Agency, Series A (AGTY) | ||||||||
5.250%, 01/01/2022 | 2,235 | 2,320 | ||||||
North Carolina Eastern Power Agency, Series D | ||||||||
5.375%, 01/01/2013 | 2,955 | 3,077 | ||||||
North Carolina Finance Agency Education Facilities Revenue, Meredith College | ||||||||
5.250%, 06/01/2020 | 900 | 892 | ||||||
North Carolina Medical Care Commission Health Care Facilities Revenue, First Mortgage Presbyterian, Series B | ||||||||
4.875%, 10/01/2013 | 2,035 | 2,034 | ||||||
5.000%, 10/01/2014 | 2,120 | 2,124 | ||||||
North Carolina Power Agency #1, Series A (FSA) | ||||||||
5.250%, 01/01/2016 | 2,000 | 2,109 | ||||||
12,556 | ||||||||
Certificate of Participation – 0.1% | ||||||||
Randolph County (AMBAC) | ||||||||
5.000%, 02/01/2018 | 815 | 843 | ||||||
13,399 | ||||||||
North Dakota – 0.3% | ||||||||
Revenue Bond – 0.2% | ||||||||
Ward County Health Care Facilities Revenue, Trinity Obligated Group | ||||||||
5.000%, 07/01/2014 | 1,180 | 1,187 | ||||||
General Obligation – 0.1% | ||||||||
Mandan, Series D (MBIA) | ||||||||
4.000%, 05/01/2017 | 460 | 454 | ||||||
1,641 | ||||||||
Ohio – 1.5% | ||||||||
Revenue Bonds – 1.0% | ||||||||
Lake County Hospital Facilities Revenue, Lake Hospital System, Series C | ||||||||
5.500%, 08/15/2024 | 1,230 | 1,203 | ||||||
Lorain County Hospital Facilities, Catholic Healthcare Partners, Series B (MBIA) | ||||||||
5.375%, 09/01/2009 | 1,000 | 1,022 | ||||||
Miami County Hospital Facilities, Upper Valley Medical Center | ||||||||
5.250%, 05/15/2016 | 750 | 757 | ||||||
Ohio State Higher Education Facilities Revenue, John Carroll University Project | ||||||||
4.000%, 04/01/2014 | 1,135 | 1,128 | ||||||
4.500%, 04/01/2015 | 1,000 | 1,017 | ||||||
Ohio State Water Development Authority, Escrowed to Maturity | ||||||||
9.375%, 12/01/2010 § | 740 | 791 | ||||||
Richland County Hospital Facilities, Series A | ||||||||
5.650%, 11/15/2008 | 595 | 600 | ||||||
6,518 | ||||||||
General Obligations – 0.3% | ||||||||
Mason City School District (FSA) | ||||||||
4.375%, 12/01/2019 | 1,195 | 1,214 | ||||||
St. Marys City School District, School Facilities Construction & Improvement (FSA) (OSDCEP) | ||||||||
4.500%, 12/01/2019 | 785 | 801 | ||||||
2,015 | ||||||||
Certificate of Participation – 0.2% | ||||||||
Akron (AGTY) | ||||||||
5.000%, 12/01/2015 | 1,000 | 1,062 | ||||||
9,595 | ||||||||
Oklahoma – 1.5% | ||||||||
Revenue Bonds – 1.5% | ||||||||
Cherokee County Economic, Escrowed to Maturity, Zero Coupon Bond (AMBAC) | ||||||||
3.420%, 11/01/2011 § ¤ | 3,340 | 2,983 | ||||||
McClain County Economic Development Authority, Educational Facilities Lease Revenue, Newcastle Public Schools Project | ||||||||
5.000%, 09/01/2009 | 510 | 518 | ||||||
5.000%, 09/01/2011 | 345 | 352 | ||||||
5.000%, 09/01/2012 | 355 | 361 | ||||||
4.125%, 09/01/2013 | 250 | 243 | ||||||
Oklahoma City Industrial & Cultural Facilities, Oklahoma City Project (AMT) | ||||||||
5.750%, 01/01/2023 | 1,430 | 1,318 | ||||||
South Oklahoma City, Pre-refunded 02/01/2010 @ 100 | ||||||||
9.750%, 02/01/2013 ◊ | 2,565 | 2,804 | ||||||
Tulsa Educational Facilities Authority, Holland Hall School Project, Series B | ||||||||
4.600%, 12/01/2009 | 1,195 | 1,214 | ||||||
9,793 | ||||||||
Oregon – 1.2% | ||||||||
Revenue Bond – 0.8% | ||||||||
Medford Hospital Facilities Authority, Asante Health Systems, Series B (MBIA) | ||||||||
3.750%, 08/15/2029 Y | 5,500 | 5,500 | ||||||
General Obligations – 0.4% | ||||||||
Lane County School District #52, Bethel (SBG) | ||||||||
5.500%, 06/15/2009 | 1,000 | 1,035 | ||||||
Yamhill County School District #40, McMinnville (FSA) (SBG) | ||||||||
5.000%, 06/15/2019 | 1,415 | 1,513 | ||||||
2,548 | ||||||||
8,048 | ||||||||
The accompanying notes are an integral part of the financial statements.
60 First American Funds 2008 Annual Report
Intermediate Tax Free Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Pennsylvania – 1.7% | ||||||||
Revenue Bonds – 1.7% | ||||||||
Allegheny County Hospital Revenue, University of Pittsburgh Medical Center, Series B | ||||||||
5.000%, 06/15/2018 | $ | 3,000 | $ | 3,093 | ||||
Delaware County College Revenue, Neumann College | ||||||||
5.250%, 10/01/2020 | 535 | 528 | ||||||
5.375%, 10/01/2021 | 565 | 559 | ||||||
Delaware County Hospital Revenue Authority, Crozer-Chester Medical Center (RAAI) | ||||||||
5.000%, 12/15/2015 | 1,275 | 1,285 | ||||||
5.000%, 12/15/2017 | 1,405 | 1,391 | ||||||
Montgomery County Industrial Development Authority, Whitemarsh Continued Care Project | ||||||||
6.125%, 02/01/2028 | 1,000 | 914 | ||||||
State Public School Building Authority College Revenue, Delaware Community College Project (FSA) | ||||||||
5.000%, 10/01/2022 | 1,000 | 1,041 | ||||||
Westmoreland County Industrial Development Authority Revenue, Retirement Community, Redstone, Series A | ||||||||
5.375%, 01/01/2014 | 1,100 | 1,068 | ||||||
5.500%, 01/01/2016 | 1,200 | 1,132 | ||||||
11,011 | ||||||||
General Obligation – 0.0% | ||||||||
Ephrata Area School District (FGIC) (STAID) | ||||||||
4.500%, 04/15/2018 | 450 | 451 | ||||||
11,462 | ||||||||
Puerto Rico – 0.8% | ||||||||
Revenue Bond – 0.2% | ||||||||
Puerto Rico Public Buildings Authority, Government Facilities, Series M-2, Mandatory Put 07/01/2017 @ 100 (AMBAC) (COMGTY) | ||||||||
5.500%, 07/01/2035 | 1,000 | 1,021 | ||||||
General Obligation – 0.6% | ||||||||
Puerto Rico Commonwealth, Public Improvement, Series A | ||||||||
5.000%, 07/01/2020 | 4,000 | 3,893 | ||||||
4,914 | ||||||||
South Carolina – 1.4% | ||||||||
Revenue Bonds – 1.4% | ||||||||
Charleston EDL Excellence Finance, Charleston County School District Project | ||||||||
5.000%, 12/01/2013 | 2,000 | 2,107 | ||||||
Lexington County Health Services District, Lexington Medical Center, Pre-refunded 11/01/2013 @ 100 | ||||||||
5.500%, 11/01/2023 ◊ | 2,000 | 2,169 | ||||||
South Carolina Jobs Economic Development Authority, Palmetto Health Alliance, Series A | ||||||||
6.000%, 08/01/2013 | 1,000 | 1,052 | ||||||
South Carolina Jobs Economic Development Authority, Palmetto Health Alliance, Series C | ||||||||
6.000%, 08/01/2013 | 2,000 | 2,103 | ||||||
South Carolina State Public Service Authority, Series A (MBIA) | ||||||||
5.500%, 01/01/2010 | 1,665 | 1,731 | ||||||
9,162 | ||||||||
South Dakota – 1.1% | ||||||||
Revenue Bonds – 0.6% | ||||||||
South Dakota State Health & Educational Facilities Authority, Westhills Village Retirement | ||||||||
4.750%, 09/01/2011 | 530 | 540 | ||||||
5.000%, 09/01/2012 | 1,000 | 1,023 | ||||||
5.000%, 09/01/2013 | 1,000 | 1,021 | ||||||
5.000%, 09/01/2025 | 1,770 | 1,680 | ||||||
4,264 | ||||||||
Certificates of Participation – 0.5% | ||||||||
Deadwood (ACA) | ||||||||
5.600%, 11/01/2008 | 845 | 851 | ||||||
5.000%, 11/01/2018 | 2,385 | 2,308 | ||||||
3,159 | ||||||||
7,423 | ||||||||
Tennessee – 3.2% | ||||||||
Revenue Bonds – 2.9% | ||||||||
Memphis-Shelby Counties Sports Authority Revenue, Memphis Arena Project, Series C (MBIA) | ||||||||
5.000%, 11/01/2017 | 3,175 | 3,349 | ||||||
Metropolitan Government Nashville & Davidson County, Escrowed to Maturity | ||||||||
6.400%, 04/01/2011 § | 1,030 | 1,122 | ||||||
Shelby County Health, Educational & Housing Facilities Board, Methodist Healthcare, Pre-refunded 09/01/2012 @ 100 | ||||||||
6.000%, 09/01/2016 ◊ | 935 | 1,028 | ||||||
6.000%, 09/01/2016 ◊ | 565 | 622 | ||||||
Shelby County Health, Educational & Housing Facilities Board, Methodist Healthcare, Series B (FSA) | ||||||||
5.250%, 09/01/2021 | 1,675 | 1,740 | ||||||
Shelby County Health, Educational & Housing Facilities Board, St. Jude’s Children’s Research | ||||||||
5.000%, 07/01/2009 | 200 | 202 | ||||||
Sullivan County Health, Educational & Housing Facilities Board, Wellmont Health Systems Project (RAAI) | ||||||||
5.000%, 09/01/2016 | 2,000 | 2,004 | ||||||
Sullivan County Health, Educational & Housing Facilities Board, Wellmont Health Systems Project, Escrowed to Maturity | ||||||||
6.250%, 09/01/2011 § | 1,465 | 1,593 | ||||||
6.250%, 09/01/2012 § | 1,085 | 1,199 | ||||||
Sullivan County Health, Educational & Housing Facilities Board, Wellmont Health Systems Project, Pre-refunded 09/01/2012 @ 101 | ||||||||
6.500%, 09/01/2013 ◊ | 2,215 | 2,488 | ||||||
Tennessee Energy Acquisition Corporation, Gas Revenue, Series A | ||||||||
5.000%, 09/01/2014 | 3,500 | 3,466 | ||||||
18,813 | ||||||||
General Obligation – 0.3% | ||||||||
Memphis (MBIA) | ||||||||
5.000%, 10/01/2016 | 2,000 | 2,118 | ||||||
20,931 | ||||||||
Texas – 11.2% | ||||||||
Revenue Bonds – 4.6% | ||||||||
Abilene Health Facilities Development, Sears Methodist Retirement, Series A | ||||||||
5.350%, 11/15/2008 | 1,300 | 1,300 |
First American Funds 2008 Annual Report 61
Schedule of Investments June 30, 2008, all dollars are rounded to thousands (000)
Intermediate Tax Free Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Brazos River Harbor District, Dow Chemical, Series A-5, Mandatory Put 05/15/2012 @ 100 (AMT) | ||||||||
5.700%, 05/15/2033 | $ | 1,000 | $ | 994 | ||||
El Paso Water & Sewer Revenue, Series A (FSA) | ||||||||
4.000%, 03/01/2018 | 650 | 644 | ||||||
Grapevine Industrial Development, Air Cargo (AMT) | ||||||||
6.500%, 01/01/2024 | 485 | 479 | ||||||
Gregg County Health Facilities Development, Good Shepherd Medical Center, Series A | ||||||||
5.750%, 10/01/2009 | 2,895 | 2,966 | ||||||
5.000%, 10/01/2013 | 1,230 | 1,242 | ||||||
Houston Health Facilities Development, Buckingham Senior Living Community, Series A, Pre-refunded 02/15/2014 @ 101 | ||||||||
7.000%, 02/15/2023 ◊ | 2,000 | 2,363 | ||||||
League City Waterworks & Sewer System Revenue (FSA) | ||||||||
4.000%, 02/15/2018 | 1,230 | 1,218 | ||||||
4.375%, 02/15/2023 | 1,315 | 1,287 | ||||||
Lubbock Educational Facilities Revenue, Lubbock Christian University | ||||||||
5.000%, 11/01/2016 | 1,000 | 997 | ||||||
North Texas Tollway Revenue, First Tier, Series A | ||||||||
6.000%, 01/01/2024 | 2,500 | 2,639 | ||||||
North Texas Tollway Revenue, First Tier, Series E-3, Mandatory Put 01/01/2016 @ 100 | ||||||||
5.750%, 01/01/2038 | 3,000 | 3,137 | ||||||
Odessa Housing Finance, Escrowed to Maturity, Zero Coupon Bond (MBIA) | ||||||||
3.693%, 06/01/2012 § ¤ | 1,465 | 1,269 | ||||||
San Antonio Electric & Gas, Series A | ||||||||
5.250%, 02/01/2013 | 2,135 | 2,187 | ||||||
San Leanna Educational Facilities Higher Education Revenue Tax, Saint Edwards University Project | ||||||||
5.000%, 06/01/2019 | 575 | 573 | ||||||
Tarrant County Cultural Education Financial Corporation Retirement Facilities, Northwest Senior Housing, Edgemere Project, Series A | ||||||||
5.750%, 11/15/2014 | 1,235 | 1,229 | ||||||
Texas State Transportation Commission, First Tier | ||||||||
5.000%, 04/01/2017 | 2,000 | 2,152 | ||||||
Travis County Health Facilities, Development Retirement Facilities Revenue, Querencia Barton Creek Project | ||||||||
5.250%, 11/15/2017 | 1,000 | 922 | ||||||
5.500%, 11/15/2025 | 900 | 788 | ||||||
Tyler Health Facilities, Mother Frances Hospital | ||||||||
5.250%, 07/01/2012 | 1,000 | 1,028 | ||||||
Victoria Utilities Systems Revenue (AMBAC) | ||||||||
4.400%, 12/01/2019 | 1,000 | 991 | ||||||
30,405 | ||||||||
General Obligations – 6.6% | ||||||||
Alvin Independent School District, Schoolhouse (PSFG) | ||||||||
4.125%, 02/15/2019 | 1,110 | 1,096 | ||||||
Brownsville (MBIA) | ||||||||
5.000%, 02/15/2017 | 2,125 | 2,220 | ||||||
Corinth (MBIA) | ||||||||
4.500%, 02/15/2019 | 1,180 | 1,186 | ||||||
Dallas (MBIA) | ||||||||
4.500%, 02/15/2027 | 5,000 | 4,901 | ||||||
Dallas County Utilities & Reclamation District, Series A (AMBAC) | ||||||||
5.150%, 02/15/2022 | 5,715 | 5,600 | ||||||
El Paso County (MBIA) | ||||||||
5.000%, 02/15/2018 | 2,440 | 2,584 | ||||||
Elgin Independent School District, School Building (PSFG) | ||||||||
4.375%, 08/01/2019 | 1,120 | 1,123 | ||||||
Frisco (AMBAC) | ||||||||
4.500%, 02/15/2016 | 2,045 | 2,109 | ||||||
Frisco (FGIC) | ||||||||
5.000%, 02/15/2018 | 1,125 | 1,147 | ||||||
5.000%, 02/15/2019 | 1,675 | 1,703 | ||||||
Galena Park Independent School District, School Building (PSFG) | ||||||||
4.000%, 08/15/2019 | 1,070 | 1,041 | ||||||
Giddings Independent School District, School Building, Series A (PSFG) | ||||||||
4.250%, 02/15/2019 | 875 | 876 | ||||||
Grand Prairie Independent School District, School Building, Series A (PSFG) | ||||||||
4.500%, 02/15/2018 | 635 | 651 | ||||||
Howard County Junior College (AMBAC) | ||||||||
4.250%, 02/15/2018 | 715 | 708 | ||||||
Irving Independent School District, Series A, Zero Coupon Bond (PSFG) | ||||||||
2.339%, 02/15/2009 ¤ | 5,000 | 4,928 | ||||||
Kaufman County (FSA) | ||||||||
5.000%, 02/15/2017 | 1,000 | 1,040 | ||||||
Lubbock, Water Works System, Series A (FSA) | ||||||||
4.500%, 02/15/2019 | 300 | 305 | ||||||
Montgomery County (FSA) | ||||||||
4.000%, 03/01/2017 | 320 | 320 | ||||||
North Harris Montgomery Community College District (FGIC) | ||||||||
5.375%, 02/15/2015 | 95 | 100 | ||||||
Northwest Texas Independent School District (PSFG) | ||||||||
4.500%, 02/15/2026 | 1,500 | 1,462 | ||||||
San Angelo, Series A (MBIA) | ||||||||
4.400%, 02/15/2019 | 875 | 878 | ||||||
San Antonio | ||||||||
4.125%, 02/01/2019 | 1,000 | 997 | ||||||
4.250%, 02/01/2020 | 1,140 | 1,136 | ||||||
Sunnyvale School District, School Building (PSFG) | ||||||||
4.400%, 02/15/2020 | 870 | 870 | ||||||
Teague Independent School District, School Building (PSFG) | ||||||||
5.000%, 02/15/2019 | 2,210 | 2,341 | ||||||
Texas, Water Financial Assistance, Series A | ||||||||
5.000%, 08/01/2017 | 1,500 | 1,616 | ||||||
Victoria School District (PSFG) | ||||||||
5.000%, 02/15/2018 | 500 | 531 | ||||||
43,469 | ||||||||
73,874 | ||||||||
Utah – 0.8% | ||||||||
Revenue Bonds – 0.7% | ||||||||
Salt Lake & Sandy Metropolitan Water District, Series A (AMBAC) | ||||||||
5.000%, 07/01/2015 | 2,500 | 2,675 |
The accompanying notes are an integral part of the financial statements.
62 First American Funds 2008 Annual Report
Intermediate Tax Free Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
South Jordan, Sales Tax, Pre-refunded 08/15/2011 @ 100 (AMBAC) | ||||||||
5.500%, 08/15/2018 ◊ | $ | 1,000 | $ | 1,072 | ||||
Utah State Housing Finance Agency, Single Family Mortgages, Series III, Class R (FHA) (VA) | ||||||||
5.950%, 07/01/2008 | 95 | 95 | ||||||
Weber Basin Water Conservancy District, Series A (AMBAC) | ||||||||
4.375%, 10/01/2018 | 400 | 404 | ||||||
4,246 | ||||||||
General Obligation – 0.1% | ||||||||
Ashley Valley Water & Sewer, Escrowed to Maturity (AMBAC) | ||||||||
10.900%, 01/01/2010 § | 600 | 650 | ||||||
4,896 | ||||||||
Virginia – 0.1% | ||||||||
Revenue Bond – 0.1% | ||||||||
Riverside Regional Jail Authority (MBIA) | ||||||||
5.700%, 07/01/2008 | 905 | 905 | ||||||
Washington – 3.6% | ||||||||
Revenue Bonds – 0.6% | ||||||||
Snohomish County Housing Authority | ||||||||
6.300%, 04/01/2016 | 880 | 884 | ||||||
Washington State Housing Community Nonprofit Revenue, Skyline at First Hill Project, Series B | ||||||||
5.100%, 01/01/2013 | 3,000 | 2,915 | ||||||
3,799 | ||||||||
General Obligations – 3.0% | ||||||||
Clark County School District #37, Vancouver (FSA) | ||||||||
5.250%, 12/01/2014 | 1,515 | 1,652 | ||||||
Snohomish County (MBIA) | ||||||||
5.375%, 12/01/2019 | 5,000 | 5,237 | ||||||
Spokane County School District #81, Spokane Convertible CABs (MBIA) | ||||||||
0.000% through 12/01/2008, thereafter 5.000%, 06/01/2016 ◗ | 1,000 | 1,028 | ||||||
Spokane County School District #356, Central Valley, Series B, Zero Coupon Bond (FGIC) | ||||||||
4.487%, 12/01/2014 ¤ | 5,690 | 4,280 | ||||||
Washington State, Series C | ||||||||
5.500%, 07/01/2014 | 2,275 | 2,506 | ||||||
Washington State, Series S-5, Zero Coupon Bond (FGIC) | ||||||||
4.430%, 01/01/2016 ¤ | 3,000 | 2,159 | ||||||
Washington State, Various Purpose, Series R-A (AMBAC) | ||||||||
5.000%, 01/01/2025 | 3,000 | 3,060 | ||||||
19,922 | ||||||||
23,721 | ||||||||
Wisconsin – 2.1% | ||||||||
Revenue Bonds – 1.8% | ||||||||
Franklin Solid Waste Disposal Revenue, Waste Management Wisconsin, Series A, Mandatory Put 05/01/2016 @ 100 (AMT) | ||||||||
4.950%, 11/01/2016 | 2,000 | 1,896 | ||||||
Wisconsin State Health & Educational Facilities Authority, Aurora Health Care, Series A | ||||||||
5.500%, 02/15/2020 | 1,500 | 1,472 | ||||||
Wisconsin State Health & Educational Facilities Authority, Eastcastle Place Income Project | ||||||||
5.750%, 12/01/2019 | 2,000 | 1,837 | ||||||
Wisconsin State Health & Educational Facilities Authority, Fort Healthcare Income Project | ||||||||
5.375%, 05/01/2018 | 1,250 | 1,228 | ||||||
Wisconsin State Health & Educational Facilities Authority, Marshfield Clinic, Series B | ||||||||
6.250%, 02/15/2009 | 500 | 509 | ||||||
5.500%, 02/15/2013 | 850 | 873 | ||||||
Wisconsin State Health & Educational Facilities Authority, Southwest Health Center, Series A | ||||||||
6.125%, 04/01/2024 | 1,500 | 1,447 | ||||||
Wisconsin State Health & Educational Facilities Authority, Vernon Memorial Healthcare Project | ||||||||
4.650%, 03/01/2015 | 1,035 | 995 | ||||||
Wisconsin State Health & Educational Facilities Authority, Wheaton Franciscan Services | ||||||||
5.750%, 08/15/2011 | 285 | 293 | ||||||
Wisconsin State Health & Educational Facilities Authority, Wisconsin Medical College (MBIA) | ||||||||
5.000%, 12/01/2015 | 1,450 | 1,513 | ||||||
12,063 | ||||||||
General Obligation – 0.3% | ||||||||
Door County, Series A, Crossover Refunded 09/01/2011 @ 100 (FGIC) | ||||||||
5.125%, 09/01/2016 z | 1,720 | 1,813 | ||||||
13,876 | ||||||||
Wyoming – 0.3% | ||||||||
Revenue Bond – 0.3% | ||||||||
Lincoln County, PacifiCorp Project, Mandatory Put 06/03/2013 @ 100 (AMT) | ||||||||
4.125%, 11/01/2025 | 2,250 | 2,242 | ||||||
Total Municipal Bonds | ||||||||
(Cost $635,220) | 644,548 | |||||||
Short-Term Investment – 2.3% | ||||||||
First American Tax Free Obligations Fund, Class Z Å | ||||||||
(Cost $15,388) | 15,387,823 | 15,388 | ||||||
Total Investments – 100.2% | ||||||||
(Cost $650,608) | 659,936 | |||||||
Other Assets and Liabilities, Net – (0.2)% | (1,562 | ) | ||||||
Total Net Assets – 100.0% | $ | 658,374 | ||||||
◊ | Pre-refunded issues are typically backed by U.S. government obligations, which secure the timely payment of principal and interest. These bonds mature at the call date and price indicated. | |
§ | Escrowed to Maturity issues are typically backed by U.S. government obligations, which secure the timely payment of principal and interest. If callable, these bonds may still be subject to call prior to maturity. | |
« | Security purchased on a when-issued basis. On June 30, 2008, the total cost of investments purchased on a when-issued basis was $6,742 or 1.0% of total net assets. See note 2 in Notes to Financial Statements. | |
¤ | Zero coupon bonds make no periodic interest payments, but are issued at deep discounts from par value. The rate shown is the effective yield as of June 30, 2008. | |
◗ | Convertible Capital Appreciation Bonds (Convertible CABs) – These bonds initially pay no interest but accrete in value from the date of issuance through the conversion date, at which time the bonds start to accrue and pay interest on a semiannual basis until final maturity. | |
Y | Auction rate security. The coupon rate represents the rate as of June 30, 2008. | |
z | Crossover Refunded securities are backed by the credit of the refunding issuer. These bonds mature at the call date and price indicated. |
First American Funds 2008 Annual Report 63
Schedule of Investments June 30, 2008, all dollars are rounded to thousands (000)
Intermediate Tax Free Fund (concluded)
Å | Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor for this fund. See note 3 in Notes to Financial Statements. |
ACA – | American Capital Assurance |
AGTY – | Assured Guaranty |
AMBAC – | American Municipal Bond Assurance Corporation |
AMT – | Alternative Minimum Tax. As of June 30, 2008, the aggregate market value of securities subject to the AMT was $15,132, which represents 2.3% of total net assets. |
CIFG – | CDC IXIS Financial Guaranty |
CMI – | California Mortgage Insurance Program |
COMGTY – | Commonwealth Guaranty |
FGIC – | Financial Guaranty Insurance Corporation |
FHA – | Federal Housing Authority |
FNMA – | Federal National Mortgage Association |
FSA – | Financial Security Assurance |
GNMA – | Government National Mortgage Association |
IMI – | Investors Mortgage Insurance Company |
LOC – | Letter of Credit |
MBIA – | Municipal Bond Insurance Association |
MQSBLF – | Michigan Qualified School Board Loan Fund Program |
MSDCEP – | Minnesota School District Credit Enhancement Program |
OSDCEP – | Ohio School District Credit Enhancement Program |
PSFG – | Permanent School Fund Guarantee |
RAAI – | Radian Asset Assurance Inc. |
SBG – | School Board Guaranty |
SMO – | State Moral Obligation |
STAID – | State Aid Withholding |
VA – | Veterans Administration |
XLCA – | XL Capital Assurance Inc. |
Intermediate Tax Free Fund (concluded)
Minnesota Intermediate Tax Free Fund | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Municipal Bonds – 96.6% | ||||||||
Revenue Bonds – 63.9% | ||||||||
Continuing Care Retirement Communities – 1.0% | ||||||||
Columbia Heights Multifamily & Health Care Facilities, Crest View Corporation Projects, Series A | ||||||||
5.550%, 07/01/2027 | $ | 1,000 | $ | 914 | ||||
Glencoe Health Care Facilities, Pre-refunded 04/01/2011 @ 101 | ||||||||
7.400%, 04/01/2021 ◊ | 1,000 | 1,112 | ||||||
2,026 | ||||||||
Economic Development – 1.9% | ||||||||
Minneapolis Community Development Agency, Series G-3, Pre-refunded 12/01/2011 @ 100 | ||||||||
5.350%, 12/01/2021 ◊ | 1,000 | 1,064 | ||||||
Minneapolis Development Revenue, Common Bond, Series 1A (AMT) | ||||||||
4.550%, 12/01/2013 | 480 | 485 | ||||||
4.625%, 12/01/2014 | 505 | 510 | ||||||
Minneapolis Supported Development Revenue, Common Bond, Series 2A (AMT) | ||||||||
5.125%, 06/01/2022 | 1,000 | 962 | ||||||
Minnesota State Agricultural & Economic Development Board, Small Business Development, Series B (AMT) | ||||||||
6.500%, 08/01/2008 | 365 | 366 | ||||||
Minnesota State Agricultural & Economic Development Board, Small Business Development, Series C (AMT) | ||||||||
6.625%, 08/01/2008 | 330 | 331 | ||||||
3,718 | ||||||||
Education – 8.7% | ||||||||
Minneapolis, The Blake School Project | ||||||||
5.000%, 09/01/2012 | 445 | 460 | ||||||
Minnesota State Higher Education Facilities Authority, Augsburg College, Series 4 | ||||||||
5.000%, 10/01/2011 | 500 | 504 | ||||||
5.000%, 10/01/2012 | 500 | 503 | ||||||
Minnesota State Higher Education Facilities Authority, Augsburg College, Series 6-C | ||||||||
4.750%, 05/01/2018 | 1,075 | 1,040 | ||||||
Minnesota State Higher Education Facilities Authority, Augsburg College, Series 6-J1 | ||||||||
5.000%, 05/01/2013 | 320 | 325 | ||||||
5.000%, 05/01/2016 | 375 | 377 | ||||||
5.000%, 05/01/2020 | 1,295 | 1,269 | ||||||
Minnesota State Higher Education Facilities Authority, College of Art & Design, Series 6-K | ||||||||
5.000%, 05/01/2013 | 310 | 315 | ||||||
5.000%, 05/01/2014 | 320 | 325 | ||||||
5.000%, 05/01/2015 | 340 | 344 | ||||||
5.000%, 05/01/2016 | 355 | 357 | ||||||
5.000%, 05/01/2017 | 370 | 370 | ||||||
Minnesota State Higher Education Facilities Authority, College of Art and Design, Series 5-K | ||||||||
5.000%, 05/01/2011 | 250 | 257 | ||||||
Minnesota State Higher Education Facilities Authority, St. Benedict College, Series V | ||||||||
4.500%, 03/01/2017 | 1,585 | 1,584 | ||||||
Minnesota State Higher Education Facilities Authority, St. Catherine College, Series 5-N1 | ||||||||
5.250%, 10/01/2022 | 1,500 | 1,482 |
The accompanying notes are an integral part of the financial statements.
64 First American Funds 2008 Annual Report
Minnesota Intermediate Tax Free Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Minnesota State Higher Education Facilities Authority, St. John’s University, Series 6-U | ||||||||
4.200%, 10/01/2019 | $ | 290 | $ | 282 | ||||
4.300%, 10/01/2020 | 385 | 374 | ||||||
4.500%, 10/01/2022 | 145 | 142 | ||||||
Minnesota State Higher Education Facilities Authority, St. Olaf College, Series 6-O | ||||||||
5.000%, 10/01/2016 | 500 | 527 | ||||||
4.500%, 10/01/2019 | 250 | 246 | ||||||
Minnesota State Higher Education Facilities Authority, St. Scholastica College, Series 6-S | ||||||||
4.375%, 12/01/2016 | 360 | 342 | ||||||
4.500%, 12/01/2017 | 380 | 360 | ||||||
Minnesota State Higher Education Facilities Authority, University of St. Thomas, Series 6-I | ||||||||
4.000%, 04/01/2014 | 1,045 | 1,039 | ||||||
Moorhead Educational Facilities, Concordia College, Series A | ||||||||
4.100%, 12/15/2014 | 500 | 496 | ||||||
4.200%, 12/15/2015 | 880 | 872 | ||||||
4.300%, 12/15/2016 | 925 | 910 | ||||||
5.000%, 12/15/2018 | 1,005 | 1,027 | ||||||
5.000%, 12/15/2019 | 1,060 | 1,078 | ||||||
17,207 | ||||||||
Healthcare – 23.5% | ||||||||
Aitkin Health Care Facilities, Riverwood Healthcare Center | ||||||||
5.250%, 02/01/2015 | 735 | 727 | ||||||
Bemidji Health Care Facilities, North County Health Services | ||||||||
4.125%, 09/01/2013 | 300 | 299 | ||||||
4.250%, 09/01/2015 | 500 | 496 | ||||||
5.000%, 09/01/2017 | 500 | 510 | ||||||
5.000%, 09/01/2018 | 1,050 | 1,063 | ||||||
5.000%, 09/01/2019 | 1,110 | 1,114 | ||||||
Cuyuna Range Hospital District | ||||||||
5.000%, 06/01/2016 | 425 | 418 | ||||||
5.000%, 06/01/2017 | 1,340 | 1,315 | ||||||
5.000%, 06/01/2019 | 1,320 | 1,278 | ||||||
Duluth Economic Development Authority, Benedictine Health System, Pre-refunded 02/15/2014 @ 100 | ||||||||
5.375%, 02/15/2022 ◊ | 2,045 | 2,230 | ||||||
Glencoe Health Care Facilities, Regional Health Services Project | ||||||||
5.000%, 04/01/2013 | 760 | 766 | ||||||
5.000%, 04/01/2014 | 800 | 804 | ||||||
5.000%, 04/01/2015 | 845 | 845 | ||||||
5.000%, 04/01/2017 | 1,815 | 1,780 | ||||||
Hastings Health Care Facility, Regina Medical Center (ACA) | ||||||||
5.000%, 09/15/2013 | 500 | 494 | ||||||
Inver Grove Heights Nursing Home Revenue, Presbyterian Homes Care | ||||||||
5.000%, 10/01/2016 | 430 | 417 | ||||||
Maple Grove Health Care Facilities, Maple Grove Hospital | ||||||||
5.000%, 05/01/2017 | 1,000 | 1,021 | ||||||
Maple Grove Health Care Facilities, North Memorial | ||||||||
4.500%, 09/01/2017 | 1,730 | 1,695 | ||||||
Marshall Medical Center Gross Revenue, Avera Marshall Regional Medical Center Project | ||||||||
4.500%, 11/01/2013 | 345 | 344 | ||||||
4.750%, 11/01/2020 | 1,155 | 1,099 | ||||||
Meeker County Hospital Facilities, Memorial Hospital Project | ||||||||
5.625%, 11/01/2022 | 1,000 | 966 | ||||||
Minneapolis Healthcare System, Allina Health System, Series A, Pre-refunded 11/15/2012 @ 100 | ||||||||
6.000%, 11/15/2023 ◊ | 2,500 | 2,753 | ||||||
5.750%, 11/15/2032 ◊ | 1,300 | 1,418 | ||||||
Minneapolis Healthcare System, Fairview Health Services, Series A, Escrowed to Maturity | ||||||||
5.000%, 05/15/2012 § | 605 | 642 | ||||||
Minnesota Agricultural & Economic Development Board, Evangelical Lutheran Project | ||||||||
5.500%, 02/01/2011 | 280 | 292 | ||||||
5.500%, 02/01/2012 | 200 | 210 | ||||||
5.500%, 02/01/2015 | 730 | 762 | ||||||
Minnesota Agricultural & Economic Development Board, Healthcare Systems, Series A (MBIA) | ||||||||
5.500%, 11/15/2017 | 305 | 312 | ||||||
5.750%, 11/15/2026 | 10 | 10 | ||||||
Monticello, Big Lake Community Hospital, Series C | ||||||||
5.750%, 12/01/2015 | 2,320 | 2,356 | ||||||
Northfield Hospital Revenue | ||||||||
5.000%, 11/01/2013 | 880 | 887 | ||||||
5.000%, 11/01/2014 | 920 | 925 | ||||||
5.500%, 11/01/2017 | 1,080 | 1,096 | ||||||
Plymouth Health Facilities, Westhealth Project, Series A (FSA) | ||||||||
6.200%, 06/01/2011 | 1,360 | 1,364 | ||||||
Redwood Falls Hospital Facilities Revenue | ||||||||
5.000%, 12/01/2021 | 1,015 | 940 | ||||||
Shakopee Health Care Facilities, St. Francis Regional Medical Center | ||||||||
4.000%, 09/01/2012 | 305 | 300 | ||||||
5.000%, 09/01/2017 | 1,785 | 1,774 | ||||||
St. Paul Housing & Redevelopment Authority, Allina Health Systems, Series A (MBIA) | ||||||||
5.000%, 11/15/2015 | 500 | 525 | ||||||
5.000%, 11/15/2019 | 1,000 | 1,026 | ||||||
St. Paul Housing & Redevelopment Authority, Health Partners Obligation Group | ||||||||
5.250%, 05/15/2019 | 1,000 | 982 | ||||||
St. Paul Housing & Redevelopment Authority, HealthEast Project | ||||||||
5.150%, 11/15/2020 | 1,840 | 1,735 | ||||||
St. Paul Port Authority, HealthEast Midway Campus, Series A | ||||||||
5.250%, 05/01/2015 | 1,500 | 1,497 | ||||||
5.750%, 05/01/2025 | 2,000 | 1,955 | ||||||
Stillwater Health Care, Health Systems Obligation Group | ||||||||
4.250%, 06/01/2015 | 300 | 297 | ||||||
4.250%, 06/01/2016 | 260 | 254 | ||||||
Todd, Morrison, Cass & Wadena Counties, United Hospital District | ||||||||
4.000%, 12/01/2013 | 400 | 391 | ||||||
Winona Health Care Facilities, Series A | ||||||||
5.300%, 07/01/2017 | 525 | 530 | ||||||
5.350%, 07/01/2018 | 590 | 593 |
First American Funds 2008 Annual Report 65
Schedule of Investments June 30, 2008, all dollars are rounded to thousands (000)
Minnesota Intermediate Tax Free Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Winona Health Care Facilities, Winona Health Obligated Group | ||||||||
5.000%, 07/01/2020 | $ | 1,000 | $ | 968 | ||||
46,475 | ||||||||
Housing – 1.5% | ||||||||
Dakota County Housing & Redevelopment Authority, Single Family Mortgages (AMT) (FNMA) (GNMA) | ||||||||
5.125%, 10/01/2020 | 36 | 36 | ||||||
Minnesota State Housing Finance Agency, Single Family Mortgages, Series B (AMT) | ||||||||
5.550%, 07/01/2024 | 125 | 126 | ||||||
Moorhead Senior Housing Revenue, Sheyenne Crossing Project | ||||||||
5.600%, 04/01/2025 | 2,000 | 1,863 | ||||||
Worthington Housing Authority, Meadows Worthington Project, Series A | ||||||||
5.000%, 11/01/2017 | 1,000 | 926 | ||||||
2,951 | ||||||||
Lease Revenue – 2.7% | ||||||||
Andover Economic Development Authority Public Facilities Lease Revenue, Community Center, Crossover Refunded 02/01/2014 @ 100 | ||||||||
5.000%, 02/01/2019 z | 1,225 | 1,296 | ||||||
Pine County Housing & Redevelopment Authority, Series A | ||||||||
4.500%, 02/01/2016 | 465 | 467 | ||||||
4.500%, 02/01/2017 | 385 | 383 | ||||||
St. Paul Housing & Redevelopment Authority, Jimmy Lee Recreation Center | ||||||||
4.500%, 12/01/2019 « | 180 | 180 | ||||||
4.500%, 12/01/2020 « | 290 | 288 | ||||||
St. Paul Housing & Redevelopment Authority, Smith Avenue Transit Center | ||||||||
4.000%, 06/01/2012 | 200 | 201 | ||||||
St. Paul Port Authority, Office Building | ||||||||
5.000%, 12/01/2019 | 2,415 | 2,496 | ||||||
5,311 | ||||||||
Miscellaneous – 1.1% | ||||||||
Minnesota State Retirement Systems Building | ||||||||
5.450%, 06/01/2012 | 550 | 573 | ||||||
Seaway Port Authority of Duluth, Cargill Income Project | ||||||||
4.200%, 05/01/2013 | 1,500 | 1,504 | ||||||
2,077 | ||||||||
Recreational Facility Authority – 0.9% | ||||||||
St. Paul Port Authority, Hotel Facilities, Radisson Kellogg Project, Series 2, Pre-refunded 08/01/2008 @ 103 | ||||||||
6.875%, 08/01/2010 ◊ | 1,685 | 1,742 | ||||||
Revolving Funds – 1.0% | ||||||||
Minnesota Public Facilities Authority, Drinking Water, Series B, Pre-refunded 03/01/2009 @ 100 | ||||||||
5.125%, 03/01/2019 ◊ | 2,000 | 2,045 | ||||||
Tax Revenue – 2.9% | ||||||||
Hennepin County Sales Tax, Ballpark Project, Series B | ||||||||
4.375%, 12/15/2022 | 555 | 553 | ||||||
5.000%, 12/15/2026 | 1,000 | 1,035 | ||||||
5.000%, 12/15/2029 | 1,000 | 1,023 | ||||||
Minneapolis Tax Increment Revenue, Grant Park Project | ||||||||
5.200%, 02/01/2022 | 1,000 | 929 | ||||||
Minneapolis, St. Anthony Falls Project | ||||||||
5.000%, 02/01/2017 | 1,040 | 973 | ||||||
5.300%, 02/01/2021 | 570 | 517 | ||||||
St. Anthony Housing & Redevelopment Authority, Silver Lake Village Project | ||||||||
5.000%, 08/01/2015 | 785 | 768 | ||||||
5,798 | ||||||||
Transportation – 7.5% | ||||||||
Minneapolis & St. Paul Metropolitan Airports Commission, Series A (MBIA) | ||||||||
5.000%, 01/01/2019 | 1,000 | 1,024 | ||||||
5.000%, 01/01/2020 | 2,200 | 2,243 | ||||||
Minneapolis & St. Paul Metropolitan Airports Commission, Series B (AMBAC) (AMT) | ||||||||
5.000%, 01/01/2020 | 2,125 | 2,060 | ||||||
Minneapolis & St. Paul Metropolitan Airports Commission, Series B (AMT) (FGIC) | ||||||||
5.750%, 01/01/2010 | 2,880 | 2,955 | ||||||
5.625%, 01/01/2014 | 1,000 | 1,013 | ||||||
Minneapolis & St. Paul Metropolitan Airports Commission, Series C, Pre-refunded 01/01/2011 @ 100 (FGIC) | ||||||||
5.125%, 01/01/2020 ◊ | 3,095 | 3,258 | ||||||
Minnesota Public Facilities Authority Transportation | ||||||||
5.000%, 03/01/2012 | 970 | 997 | ||||||
Puerto Rico Commonwealth, Highway Transportation Authority, Series X (MBIA) | ||||||||
5.500%, 07/01/2013 | 1,250 | 1,320 | ||||||
14,870 | ||||||||
Utilities – 11.2% | ||||||||
Chaska Electric, Series A | ||||||||
5.600%, 10/01/2008 | 680 | 686 | ||||||
5.650%, 10/01/2009 | 720 | 747 | ||||||
5.650%, 10/01/2010 | 760 | 801 | ||||||
4.200%, 10/01/2015 | 1,000 | 1,001 | ||||||
Cohasset Pollution Control, Allete Project (RAAI) | ||||||||
4.950%, 07/01/2022 | 2,230 | 2,141 | ||||||
Minnesota State Municipal Power Agency | ||||||||
4.125%, 10/01/2017 | 420 | 409 | ||||||
5.250%, 10/01/2022 | 1,000 | 1,035 | ||||||
Northern Municipal Power Agency, Minnesota Electric Systems, Series A (AGTY) | ||||||||
5.000%, 01/01/2019 | 1,000 | 1,046 | ||||||
5.000%, 01/01/2021 | 2,000 | 2,063 | ||||||
Northern Municipal Power Agency, Minnesota Electric Systems, Series A (AMBAC) | ||||||||
5.000%, 01/01/2013 | 380 | 398 | ||||||
5.000%, 01/01/2017 | 460 | 484 | ||||||
Puerto Rico Commonwealth, Aqueduct & Sewer Authority, Series A (AGTY) | ||||||||
5.000%, 07/01/2016 | 500 | 528 | ||||||
Rochester Electric Utility, Pre-refunded 12/01/2010 @ 100 | ||||||||
5.000%, 12/01/2016 ◊ | 1,150 | 1,209 | ||||||
Shakopee Public Utilities, Series A, Crossover Refunded 02/01/2009 @ 100 (FSA) | ||||||||
4.250%, 02/01/2018 z | 295 | 298 |
The accompanying notes are an integral part of the financial statements.
66 First American Funds 2008 Annual Report
Minnesota Intermediate Tax Free Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Southern Minnesota Municipal Power Agency, Series A (AMBAC) | ||||||||
5.000%, 01/01/2011 | $ | 1,270 | $ | 1,295 | ||||
5.250%, 01/01/2014 | 2,000 | 2,127 | ||||||
Southern Minnesota Municipal Power Agency, Series A, Zero Coupon Bond (MBIA) | ||||||||
4.707%, 01/01/2020 ¤ | 3,500 | 2,049 | ||||||
4.796%, 01/01/2021 ¤ | 5,000 | 2,764 | ||||||
Western Minnesota Municipal Power Agency, Series A (AMBAC) | ||||||||
5.500%, 01/01/2011 | 1,000 | 1,025 | ||||||
22,106 | ||||||||
Total Revenue Bonds | 126,326 | |||||||
General Obligations – 31.3% | ||||||||
Anoka County Capital Improvements, Series A | ||||||||
4.100%, 02/01/2018 | 610 | 614 | ||||||
5.000%, 02/01/2020 | 1,000 | 1,060 | ||||||
Anoka County Capital Improvements, Series B | ||||||||
4.550%, 01/01/2011 | 1,960 | 2,009 | ||||||
Anoka County Capital Improvements, Series C | ||||||||
4.100%, 02/01/2018 « | 285 | 286 | ||||||
4.200%, 02/01/2019 « | 595 | 597 | ||||||
Anoka County, Series D | ||||||||
5.000%, 02/01/2024 | 500 | 518 | ||||||
Anoka-Hennepin Independent School District #11, Crossover Refunded 02/01/2011 @ 100 (MSDCEP) | ||||||||
5.000%, 02/01/2014 z | 2,000 | 2,072 | ||||||
Anoka-Hennepin Independent School District #11, Series A, Crossover Refunded 02/01/2011 @ 100 (MSDCEP) | ||||||||
5.000%, 02/01/2012 z | 1,000 | 1,044 | ||||||
Anoka-Hennepin Independent School District #11, Series A, Crossover Refunded 02/01/2010 @ 100 (MSDCEP) | ||||||||
5.375%, 02/01/2013 z | 600 | 625 | ||||||
Burnsville Independent School District #191, Alternative Facilities, Series A (MSDCEP) | ||||||||
4.250%, 02/01/2020 | 1,200 | 1,204 | ||||||
Chaska Independent School District #112, Series A (MBIA) (MSDCEP) | ||||||||
4.250%, 02/01/2019 | 1,000 | 1,006 | ||||||
Chatfield Independent School District #227, Series A (FSA) (MSDCEP) | ||||||||
4.000%, 02/01/2018 | 450 | 451 | ||||||
4.500%, 02/01/2026 | 250 | 250 | ||||||
Dakota County, Capital Improvements, Series C | ||||||||
4.850%, 02/01/2010 | 1,000 | 1,035 | ||||||
Dakota County Community Development Agency, Senior Housing Facilities, Series A | ||||||||
4.375%, 01/01/2019 | 510 | 514 | ||||||
4.500%, 01/01/2020 | 215 | 214 | ||||||
Dassel Cokato Independent School District #466, Series A (MSDCEP) | ||||||||
4.000%, 03/01/2014 | 300 | 305 | ||||||
Duluth Independent School District #709, Series A (FSA) (MSDCEP) | ||||||||
4.250%, 02/01/2022 | 1,375 | 1,361 | ||||||
Lakeville Independent School District #194 (MSDCEP) | ||||||||
5.000%, 02/01/2016 | 2,000 | 2,027 | ||||||
Lakeville Independent School District #194, Series A, Crossover Refunded 02/01/2013 @ 100 (FGIC) (MSDCEP) | ||||||||
5.000%, 02/01/2022 z | 2,335 | 2,472 | ||||||
Metropolitan Council, Waste Water, Series C | ||||||||
4.000%, 03/01/2019 | 1,000 | 995 | ||||||
Minneapolis Special School District #001 (MSDCEP) | ||||||||
4.000%, 02/01/2018 | 1,135 | 1,139 | ||||||
Moorhead Independent School District #152, Crossover Refunded 04/01/2012 @ 100 (FGIC) (MSDCEP) | ||||||||
5.000%, 04/01/2015 z | 3,450 | 3,634 | ||||||
5.000%, 04/01/2016 z | 2,510 | 2,644 | ||||||
Mounds View Independent School District #621, Series A (MBIA) (MSDCEP) | ||||||||
5.000%, 02/01/2018 | 2,340 | 2,409 | ||||||
Mounds View Independent School District #621, Series A (MSDCEP) | ||||||||
5.250%, 02/01/2010 | 1,000 | 1,040 | ||||||
5.000%, 02/01/2019 | 2,565 | 2,638 | ||||||
Mounds View Independent School District #621, Series A, Crossover Refunded 02/01/2011 @ 100 (MSDCEP) | ||||||||
5.250%, 02/01/2012 z | 1,000 | 1,053 | ||||||
5.350%, 02/01/2016 z | 1,000 | 1,056 | ||||||
Northfield Independent School District #659 (MSDCEP) | ||||||||
5.000%, 02/01/2015 | 1,295 | 1,347 | ||||||
Pequot Lakes Independent School District #186, Crossover Refunded 02/01/2012 @ 100 (FGIC) (MSDCEP) | ||||||||
5.125%, 02/01/2018 z | 500 | 528 | ||||||
Perham, Disposal System (AMT) | ||||||||
5.850%, 05/01/2015 | 1,205 | 1,234 | ||||||
Pipestone-Jasper Independent School District #2689, Crossover Refunded 03/01/2009 @ 100 (FGIC) (MSDCEP) | ||||||||
5.400%, 03/01/2013 z | 1,095 | 1,122 | ||||||
Puerto Rico Commonwealth (MBIA) | ||||||||
6.000%, 07/01/2014 | 1,605 | 1,753 | ||||||
Puerto Rico Commonwealth, Government Development, Series B | ||||||||
5.000%, 12/01/2014 | 1,000 | 1,006 | ||||||
Puerto Rico Commonwealth, Series A | ||||||||
5.500%, 07/01/2018 | 1,000 | 1,023 | ||||||
Puerto Rico Commonwealth, Series A (XLCA) | ||||||||
5.500%, 07/01/2017 | 1,000 | 1,022 | ||||||
Ramsey County, Series D | ||||||||
5.000%, 02/01/2014 | 2,000 | 2,158 | ||||||
Rochester Independent School District #535, Series A, Crossover Refunded 02/01/2011 @ 100 (MSDCEP) | ||||||||
5.000%, 02/01/2015 z | 1,595 | 1,672 | ||||||
Rochester Wastewater, Series A | ||||||||
4.000%, 12/01/2018 | 1,140 | 1,145 | ||||||
Sauk Rapids Independent School District #47, Series B, Zero Coupon Bond, Crossover Refunded 02/01/2011 @ 89.37 (FSA) (MSDCEP) | ||||||||
3.344%, 02/01/2013 z ¤ | 1,055 | 865 | ||||||
Sauk Rapids Independent School District #47, Series B, Zero Coupon Bond, Crossover Refunded 02/01/2011 @ 94.63 (FSA) (MSDCEP) | ||||||||
3.344%, 02/01/2012 z ¤ | 1,790 | 1,555 | ||||||
South Washington County, Independent School District #833, Series B (FSA) (MSDCEP) | ||||||||
5.000%, 02/01/2015 | 1,030 | 1,075 |
First American Funds 2008 Annual Report 67
Schedule of Investments June 30, 2008, all dollars are rounded to thousands (000)
Minnesota Intermediate Tax Free Fund (continued) | ||||||||
DESCRIPTION | PAR/SHARES | VALUE | ||||||
St. Cloud Library Sales Tax, Series B (FSA) | ||||||||
4.000%, 02/01/2018 | $ | 1,000 | $ | 1,000 | ||||
St. Louis Park Independent School District #283, Crossover Refunded 02/01/2009 @ 100 (MSDCEP) | ||||||||
5.250%, 02/01/2010 z | 1,000 | 1,018 | ||||||
5.600%, 02/01/2015 z | 725 | 739 | ||||||
St. Michael Independent School District #885, Crossover Refunded 02/01/2012 @ 100 (FSA) (MSDCEP) | ||||||||
5.000%, 02/01/2014 z | 1,190 | 1,252 | ||||||
5.000%, 02/01/2017 z | 1,000 | 1,052 | ||||||
Stillwater Independent School District #834 (MSDCEP) | ||||||||
4.750%, 02/01/2011 | 2,140 | 2,161 | ||||||
Wright County Jail, Series A (MCCEP) | ||||||||
4.500%, 12/01/2020 | 640 | 655 | ||||||
Zumbrota-Mazeppa Independent School District #2805, Series A (MSDCEP) | ||||||||
4.000%, 02/01/2019 | 200 | 199 | ||||||
Total General Obligations | 61,853 | |||||||
Certificates of Participation – 1.4% | ||||||||
Northeast Metropolitan Intermediate School District #916 | ||||||||
4.250%, 01/01/2015 | 1,000 | 1,000 | ||||||
Duluth Independent School District #709, Series B (MSDCEP) | ||||||||
4.000%, 02/01/2019 | 1,890 | 1,846 | ||||||
Total Certificates of Participation | 2,846 | |||||||
Total Municipal Bonds | ||||||||
(Cost $189,005) | 191,025 | |||||||
Short-Term Investment – 2.8% | ||||||||
Federated Minnesota Municipal Cash Trust | ||||||||
(Cost $5,597) | 5,597,315 | 5,597 | ||||||
Total Investments – 99.4% | ||||||||
(Cost $194,602) | 196,622 | |||||||
Other Assets and Liabilities, Net – 0.6% | 1,118 | |||||||
Total Net Assets – 100.0% | $ | 197,740 | ||||||
◊ | Pre-refunded issues are typically backed by U.S. government obligations, which secure the timely payment of principal and interest. These bonds mature at the call date and price indicated. | |
§ | Escrowed to Maturity issues are typically backed by U.S. government obligations, which secure the timely payment of principal and interest. If callable, these bonds may still be subject to call prior to maturity. | |
z | Crossover Refunded securities are backed by the credit of the refunding issuer. These bonds mature at the call date and price indicated. | |
« | Security purchased on a when-issued basis. On June 30, 2008, the total cost of investments purchased on a when-issued basis was $1,340 or 0.7% of total net assets. See note 2 in Notes to Financial Statements. | |
¤ | Zero coupon bonds make no periodic interest payments, but are issued at deep discounts from par value. The rate shown is the effective yield as of June 30, 2008. |
ACA – | American Capital Assurance |
AGTY – | Assured Guaranty |
AMBAC – | American Municipal Bond Assurance Corporation |
AMT – | Alternative Minimum Tax. As of June 30, 2008, the aggregate market value of securities subject to the AMT was $10,078, which represents 5.1% of total net assets. |
FGIC – | Financial Guaranty Insurance Corporation |
FNMA – | Federal National Mortgage Association |
FSA – | Financial Security Assurance |
Minnesota Intermediate Tax Free Fund (concluded)
GNMA – | Government National Mortgage Association |
MBIA – | Municipal Bond Insurance Association |
MCCEP – | Minnesota County Credit Enhancement Program |
MSDCEP – | Minnesota School District Credit Enhancement Program |
RAAI – | Radian Asset Assurance Inc. |
XLCA – | XL Capital Assurance Inc. |
The accompanying notes are an integral part of the financial statements.
68 First American Funds 2008 Annual Report
Minnesota Tax Free Fund | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Municipal Bonds – 97.9% | ||||||||
Revenue Bonds – 86.1% | ||||||||
Continuing Care Retirement Communities – 3.1% | ||||||||
Columbia Heights Multifamily & Health Care Facilities, Crest View Corporation Projects, Series A | ||||||||
5.700%, 07/01/2042 | $ | 1,750 | $ | 1,570 | ||||
Golden Valley, Covenant Retirement Communities, Series A | ||||||||
5.500%, 12/01/2029 | 1,750 | 1,697 | ||||||
Illinois Finance Authority, Franciscan Communities, Series A | ||||||||
5.500%, 05/15/2037 | 1,275 | 1,074 | ||||||
Prior Lake Senior Housing Revenue, Shepherds Path, Series B | ||||||||
5.700%, 08/01/2036 | 1,000 | 917 | ||||||
5,258 | ||||||||
Economic Development – 2.4% | ||||||||
Minnesota Agricultural & Economic Development Board, Minnesota Small Business Program, Series A (AMT) | ||||||||
5.550%, 08/01/2016 | 500 | 496 | ||||||
Minnesota Agricultural & Economic Development Board, Small Business Development, Series B (AMT) | ||||||||
7.250%, 08/01/2020 | 1,000 | 1,021 | ||||||
Minnesota Agricultural & Economic Development Board, Small Business Development, Series C (AMT) | ||||||||
7.250%, 08/01/2020 | 1,385 | 1,414 | ||||||
Minnesota Agricultural & Economic Development Board, Small Business Development, Series D (AMT) | ||||||||
7.250%, 08/01/2020 | 1,120 | 1,143 | ||||||
4,074 | ||||||||
Education – 3.5% | ||||||||
Minnesota State Higher Education Facilities Authority, College of Art & Design, Series 5-D, Pre-refunded 05/01/2010 @ 100 | ||||||||
6.625%, 05/01/2020 ◊ | 1,000 | 1,068 | ||||||
Minnesota State Higher Education Facilities Authority, College of Art & Design, Series 6-K | ||||||||
5.000%, 05/01/2026 | 1,750 | 1,668 | ||||||
Minnesota State Higher Education Facilities Authority, Vermilion Community College, Series 3-T | ||||||||
5.750%, 01/01/2013 | 355 | 357 | ||||||
St. Paul Housing & Redevelopment Authority, Community Peace Academy, Series A | ||||||||
5.000%, 12/01/2036 | 800 | 660 | ||||||
St. Paul Housing & Redevelopment Authority, St. Paul Academy & Summit School Project | ||||||||
5.000%, 10/01/2024 | 2,000 | 2,012 | ||||||
5,765 | ||||||||
Healthcare – 27.5% | ||||||||
Chippewa County, Montevideo Hospital Project | ||||||||
5.500%, 03/01/2037 | 1,500 | 1,287 | ||||||
Cuyuna Range Hospital District | ||||||||
5.000%, 06/01/2029 | 3,150 | 2,808 | ||||||
5.500%, 06/01/2035 | 350 | 330 | ||||||
Duluth Economic Development Authority, Benedictine Health System, Pre-refunded 02/15/2014 @ 100 | ||||||||
5.250%, 02/15/2028 ◊ | 1,065 | 1,154 | ||||||
Glencoe Health Care Services Facilities Project, Glencoe Regional Health | ||||||||
5.000%, 04/01/2031 | 2,000 | 1,767 | ||||||
Glencoe Health Care Services Facilities Project, Glencoe Regional Health, Pre-refunded 04/01/2011 @ 101 | ||||||||
7.500%, 04/01/2031 ◊ | 1,700 | 1,896 | ||||||
Maple Grove Health Care Facilities, North Memorial Health Care | ||||||||
5.000%, 09/01/2035 | 2,000 | 1,868 | ||||||
Maple Grove Health Care System, Maple Grove Hospital | ||||||||
4.500%, 05/01/2023 | 1,500 | 1,383 | ||||||
5.250%, 05/01/2025 | 1,000 | 1,007 | ||||||
Marshall Medical Center, Weiner Memorial Medical Center Project, Series A | ||||||||
5.250%, 11/01/2016 | 305 | 309 | ||||||
5.850%, 11/01/2023 | 875 | 895 | ||||||
Meeker County Hospital Facilities, Memorial Hospital Project | ||||||||
5.750%, 11/01/2027 | 1,000 | 963 | ||||||
Minneapolis Healthcare System, Allina Health System, Series A, Pre-refunded 11/15/2012 @ 100 | ||||||||
6.000%, 11/15/2023 ◊ | 1,500 | 1,652 | ||||||
5.750%, 11/15/2032 ◊ | 2,400 | 2,619 | ||||||
Minnesota Agricultural & Economic Development Board, Fairview Hospital Project, Series A | ||||||||
6.375%, 11/15/2029 | 125 | 129 | ||||||
Minnesota Agricultural & Economic Development Board, Fairview Hospital Project, Series A, Pre-refunded 11/15/2010 @ 101 | ||||||||
6.375%, 11/15/2029 ◊ | 3,875 | 4,226 | ||||||
Monticello, Big Lake Community Hospital, Series A | ||||||||
5.750%, 12/01/2019 | 1,000 | 980 | ||||||
Monticello, Big Lake Community Hospital, Series C | ||||||||
6.200%, 12/01/2022 | 1,000 | 999 | ||||||
New Hope Housing & Healthcare Facilities Authority, Masonic Home North Ridge | ||||||||
5.750%, 03/01/2015 | 1,600 | 1,581 | ||||||
Redwood Falls Hospital Revenue, Redwood Area Hospital Project | ||||||||
5.125%, 12/01/2036 | 3,000 | 2,568 | ||||||
Shakopee Health Care Facilities, St. Francis Regional Medical Center | ||||||||
5.250%, 09/01/2034 | 2,000 | 1,855 | ||||||
St. Louis Park Health Care Facilities, Park Nicollet Health Services, Series B, Pre-refunded 07/01/2014 @ 100 | ||||||||
5.500%, 07/01/2025 ◊ | 2,000 | 2,202 | ||||||
St. Paul Housing & Redevelopment Authority, Allina Health Systems, Series A (MBIA) | ||||||||
5.000%, 11/15/2012 | 2,500 | 2,613 | ||||||
St. Paul Housing & Redevelopment Authority, Episcopal Nursing Home | ||||||||
5.630%, 10/01/2033 | 2,325 | 2,023 | ||||||
St. Paul Housing & Redevelopment Authority, Health Partners Obligation Group | ||||||||
5.250%, 05/15/2026 | 2,000 | 1,906 |
First American Funds 2008 Annual Report 69
Schedule of Investments June 30, 2008, all dollars are rounded to thousands (000)
Minnesota Tax Free Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
St. Paul Housing & Redevelopment Authority, HealthEast Project | ||||||||
6.000%, 11/15/2030 | $ | 800 | $ | 780 | ||||
St. Paul Housing & Redevelopment Authority, Regions Hospital | ||||||||
5.250%, 05/15/2018 | 500 | 495 | ||||||
St. Paul Port Authority, HealthEast Midway Campus, Series A | ||||||||
5.875%, 05/01/2030 | 900 | 862 | ||||||
St. Paul Port Authority, HealthEast Midway Campus, Series B | ||||||||
6.000%, 05/01/2030 | 1,800 | 1,755 | ||||||
Winona Health Care Facilities, Series A | ||||||||
6.000%, 07/01/2034 | 1,000 | 1,011 | ||||||
45,923 | ||||||||
Housing – 14.0% | ||||||||
Cottage Grove Senior Housing Revenue, PHS/Cottage Grove Inc. Project, Series A | ||||||||
5.000%, 12/01/2031 | 850 | 686 | ||||||
Dakota County Community Development Agency, Multifamily Housing, Ebenezer Ridges Project (GNMA) | ||||||||
5.900%, 04/20/2042 | 2,000 | 2,043 | ||||||
Eden Prairie Multifamily Housing, Preserve Place (GNMA) | ||||||||
5.500%, 01/20/2018 | 500 | 508 | ||||||
Hennepin County Housing & Redevelopment Authority, Loring Park Apartments, Mandatory Put 02/15/2009 @ 100 (AMT) (FNMA) | ||||||||
3.050%, 06/15/2034 | 2,000 | 2,010 | ||||||
Hopkins Elderly Housing, St. Theresa Project, Series A (FHA) (GNMA) | ||||||||
5.600%, 11/20/2017 | 480 | 487 | ||||||
Hopkins Multifamily Housing, Renaissance Project (HUD) | ||||||||
6.250%, 04/01/2015 | 500 | 507 | ||||||
Maplewood Multifamily Housing, Carefree Cottages ll, Mandatory Put 04/15/2019 @ 100 (AMT) (FNMA) | ||||||||
4.800%, 04/15/2034 | 2,000 | 1,941 | ||||||
Minneapolis & St. Paul Housing Financing Board, Single Family, Series A4 (AMT) (FHLMC) (FNMA) (GNMA) | ||||||||
5.000%, 11/01/2038 | 986 | 898 | ||||||
Minneapolis Housing Revenue, Keeler Apartments, Series A | ||||||||
5.000%, 10/01/2037 | 1,350 | 1,075 | ||||||
Minneapolis Multifamily Housing Revenue, Vantage Flats Project (AMT) (GNMA) | ||||||||
5.200%, 10/20/2048 | 875 | 806 | ||||||
Minnesota State Housing Finance Agency, Residential Housing, Series B (AMT) | ||||||||
5.650%, 07/01/2033 | 680 | 681 | ||||||
Minnesota State Housing Finance Agency, Residential Housing, Series B1-RMK (AMT) | ||||||||
5.350%, 07/01/2033 | 1,380 | 1,338 | ||||||
Minnesota State Housing Finance Agency, Residential Housing, Series D (AMT) | ||||||||
4.700%, 07/01/2027 | 3,465 | 3,176 | ||||||
Minnesota State Housing Finance Agency, Residential Housing, Series F (AMT) | ||||||||
5.400%, 07/01/2030 | 2,360 | 2,324 | ||||||
Minnesota State Housing Finance Agency, Single Family Mortgage, Series C (AMT) | ||||||||
6.100%, 07/01/2030 | 345 | 358 | ||||||
Moorhead Senior Housing Revenue, Sheyenne Crossing Project | ||||||||
5.650%, 04/01/2041 | 1,620 | 1,422 | ||||||
St. Louis Park, Multifamily Housing, Park Ridge Apartments (FHA) (GNMA) | ||||||||
5.250%, 11/01/2020 | 500 | 506 | ||||||
St. Paul Housing & Redevelopment Authority, Rossy & Richard Shaller, Series A | ||||||||
5.250%, 10/01/2042 | 1,100 | 909 | ||||||
White Bear Lake, Multifamily Housing, Lake Square, Series A (FHA) | ||||||||
6.000%, 08/01/2020 | 1,020 | 1,026 | ||||||
Worthington Housing Authority, Meadows Worthington Project, Series A | ||||||||
5.375%, 05/01/2037 | 880 | 744 | ||||||
23,445 | ||||||||
Lease Revenue – 5.8% | ||||||||
Lakeville Housing & Redevelopment Authority, Ice Arena Project | ||||||||
4.500%, 02/01/2026 | 1,000 | 971 | ||||||
4.625%, 02/01/2032 | 585 | 563 | ||||||
New Brighton Economic Development Authority, Public Safety Facility, Leasing Project, Series A | ||||||||
4.900%, 02/01/2015 | 850 | 861 | ||||||
5.000%, 02/01/2016 | 895 | 906 | ||||||
5.100%, 02/01/2017 | 900 | 911 | ||||||
Pine County Housing & Redevelopment Authority, Series A | ||||||||
5.000%, 02/01/2028 | 1,000 | 991 | ||||||
5.000%, 02/01/2031 | 1,890 | 1,840 | ||||||
Puerto Rico Public Buildings Authority, Government Facilities, Series M (COMGTY) | ||||||||
6.250%, 07/01/2031 | 2,000 | 2,183 | ||||||
St. Paul Housing & Redevelopment Authority, Jimmy Lee Recreation Center | ||||||||
4.750%, 12/01/2026 | 500 | 492 | ||||||
9,718 | ||||||||
Miscellaneous – 3.0% | ||||||||
Little Canada Commercial Development, RLF Minnesota Project | ||||||||
7.100%, 04/01/2013 | 790 | 791 | ||||||
Minnesota State Retirement Systems Building | ||||||||
5.875%, 06/01/2027 | 3,000 | 3,106 | ||||||
Seaway Port Authority of Duluth, Cargill Income Project | ||||||||
4.200%, 05/01/2013 | 1,130 | 1,133 | ||||||
5,030 | ||||||||
Recreational Facility Authority – 2.4% | ||||||||
Moorhead, Golf Course, Series B | ||||||||
5.875%, 12/01/2021 | 2,000 | 2,000 | ||||||
St. Paul Port Authority, Radisson Kellogg Project, Series 2, Pre-refunded 08/01/2008 @ 103 | ||||||||
7.375%, 08/01/2029 ◊ | 2,000 | 2,070 | ||||||
4,070 | ||||||||
Tax Revenue – 1.0% | ||||||||
Duluth Economic Development Authority | ||||||||
8.000%, 08/01/2008 | 50 | 51 |
The accompanying notes are an integral part of the financial statements.
70 First American Funds 2008 Annual Report
Minnesota Tax Free Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Minneapolis, St. Anthony Falls Project | ||||||||
5.650%, 02/01/2027 | $ | 400 | $ | 367 | ||||
5.750%, 02/01/2027 | 300 | 278 | ||||||
St. Anthony Housing & Redevelopment Authority, Silver Lake Village | ||||||||
5.625%, 02/01/2031 | 1,000 | 900 | ||||||
1,596 | ||||||||
Transportation – 5.7% | ||||||||
Minneapolis & St. Paul Metropolitan Airports Commission, Series A (AMBAC) | ||||||||
5.000%, 01/01/2017 | 1,000 | 1,046 | ||||||
5.000%, 01/01/2019 | 3,250 | 3,352 | ||||||
5.000%, 01/01/2020 | 5,000 | 5,122 | ||||||
9,520 | ||||||||
Utilities – 17.7% | ||||||||
Chaska Electric, Series A | ||||||||
6.100%, 10/01/2030 | 45 | 47 | ||||||
Minnesota Public Facilities Authority, Clean Water, Series B | ||||||||
5.000%, 03/01/2018 | 2,000 | 2,163 | ||||||
Northern Municipal Power Agency, Minnesota Electric Systems, Series A (AGTY) | ||||||||
5.000%, 01/01/2018 | 1,985 | 2,089 | ||||||
5.000%, 01/01/2021 | 1,000 | 1,031 | ||||||
Northern Municipal Power Agency, Minnesota Electric Systems, Series A (AMBAC) | ||||||||
5.000%, 01/01/2026 | 2,000 | 2,004 | ||||||
Puerto Rico Electric Power Authority, Series SS (MBIA) | ||||||||
5.000%, 07/01/2024 | 2,000 | 2,033 | ||||||
Rochester Electric Utility, Series C | ||||||||
5.000%, 12/01/2030 | 1,500 | 1,506 | ||||||
Southern Minnesota Municipal Power Agency, Series A, Zero Coupon Bond (MBIA) | ||||||||
4.588%, 01/01/2019 ¤ | 4,000 | 2,484 | ||||||
4.796%, 01/01/2021 ¤ | 5,000 | 2,765 | ||||||
4.905%, 01/01/2023 ¤ | 3,000 | 1,486 | ||||||
4.974%, 01/01/2024 ¤ | 11,000 | 5,136 | ||||||
5.004%, 01/01/2025 ¤ | 4,250 | 1,880 | ||||||
5.054%, 01/01/2026 ¤ | 6,300 | 2,630 | ||||||
5.080%, 01/01/2027 ¤ | 3,000 | 1,186 | ||||||
Western Minnesota Municipal Power Agency (AMBAC) | ||||||||
5.500%, 01/01/2015 | 550 | 573 | ||||||
Western Minnesota Municipal Power Agency, Escrowed to Maturity (MBIA) | ||||||||
9.750%, 01/01/2016 § | 410 | 554 | ||||||
29,567 | ||||||||
Total Revenue Bonds | 143,966 | |||||||
General Obligations – 10.6% | ||||||||
Burnsville Independent School District #191, Alternative Facilities, Series A (MSDCEP) | ||||||||
4.500%, 02/01/2022 | 1,430 | 1,444 | ||||||
4.625%, 02/01/2023 | 1,500 | 1,524 | ||||||
Delano Independent School District #879, Series A, Crossover Refunded 02/01/2011 @ 100 (FSA) (MSDCEP) | ||||||||
5.875%, 02/01/2025 z | 1,000 | 1,069 | ||||||
Metropolitan Council Waste Water, Series C | ||||||||
5.000%, 03/01/2020 | 1,500 | 1,583 | ||||||
Minneapolis Sports Arena | ||||||||
5.100%, 04/01/2013 | 500 | 501 | ||||||
5.100%, 10/01/2013 | 250 | 250 | ||||||
Minnesota State | ||||||||
5.000%, 08/01/2010 | 2,000 | 2,051 | ||||||
5.000%, 08/01/2013 | 2,000 | 2,153 | ||||||
Perham, Disposal System (AMT) | ||||||||
6.000%, 05/01/2022 | 1,500 | 1,522 | ||||||
Rochester Wastewater, Series A | ||||||||
4.125%, 12/01/2023 | 2,285 | 2,215 | ||||||
Sauk Rapids Independent School District #47, Series A, Crossover Refunded 02/01/2011 @ 100 (MBIA) (MSDCEP) | ||||||||
5.750%, 02/01/2023 z | 2,000 | 2,131 | ||||||
St. Michael Independent School District #885, Series A (MSDCEP) | ||||||||
4.000%, 02/01/2017 | 1,310 | 1,317 | ||||||
Total General Obligations | 17,760 | |||||||
Certificate of Participation – 1.2% | ||||||||
Duluth Independent School District #709, Series B (MSDCEP) | ||||||||
4.000%, 02/01/2019 | 2,000 | 1,954 | ||||||
Total Municipal Bonds | ||||||||
(Cost $166,192) | 163,680 | |||||||
Short-Term Investment – 1.6% | ||||||||
Federated Minnesota Municipal Cash Trust | ||||||||
(Cost $2,628) | 2,628,212 | 2,628 | ||||||
Total Investments – 99.5% | ||||||||
(Cost $168,820) | 166,308 | |||||||
Other Assets and Liabilities, Net – 0.5% | 835 | |||||||
Total Net Assets – 100.0% | $ | 167,143 | ||||||
◊ | Pre-refunded issues are typically backed by U.S. government obligations, which secure the timely payment of principal and interest. These bonds mature at the call date and price indicated. | |
¤ | Zero coupon bonds make no periodic interest payments, but are issued at deep discounts from par value. The rate shown is the effective yield as of June 30, 2008. | |
§ | Escrowed to Maturity issues are typically backed by U.S. government obligations, which secure the timely payment of principal and interest. If callable, these bonds may still be subject to call prior to maturity. | |
z | Crossover Refunded securities are backed by the credit of the refunding issuer. These bonds mature at the call date and price indicated. |
AGTY – | Assured Guaranty |
AMBAC – | American Municipal Bond Assurance Corporation |
AMT – | Alternative Minimum Tax. As of June 30, 2008, the aggregate market value of securities subject to the AMT was $19,128, which represents 11.4% of total net assets. |
COMGTY – | Commonwealth Guaranty |
FHA – | Federal Housing Administration |
FHLMC – | Federal Home Loan Mortgage Corporation |
FNMA – | Federal National Mortgage Association |
FSA – | Financial Security Assurance |
GNMA – | Government National Mortgage Association |
HUD – | Housing Urban Development |
MBIA – | Municipal Bond Insurance Association |
MSDCEP – | Minnesota School District Credit Enhancement Program |
First American Funds 2008 Annual Report 71
Schedule of Investments June 30, 2008, all dollars are rounded to thousands (000)
Missouri Tax Free Fund | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Municipal Bonds – 99.4% | ||||||||
Revenue Bonds – 80.7% | ||||||||
Continuing Care Retirement Communities – 4.1% | ||||||||
Cole County Industrial Development Authority, Lutheran Services Heisinger Project | ||||||||
5.250%, 02/01/2024 | $ | 2,000 | $ | 1,954 | ||||
Illinois Finance Authority, Franciscan Communities, Series A | ||||||||
5.500%, 05/15/2027 | 500 | 442 | ||||||
Lee’s Summit Industrial Development Authority, Senior Living Facilities, John Knox Village, Series A | ||||||||
5.000%, 08/15/2014 | 1,035 | 1,016 | ||||||
Missouri State Health & Educational Facilities Authority, Senior Living Facilities, Lutheran Senior, Series A | ||||||||
5.375%, 02/01/2035 | 1,500 | 1,361 | ||||||
St. Louis County Industrial Development Authority, Friendship Village West, Series A | ||||||||
5.500%, 09/01/2028 | 2,000 | 1,846 | ||||||
6,619 | ||||||||
Education – 3.9% | ||||||||
Lincoln University Auxiliary System Revenue (AGTY) | ||||||||
5.125%, 06/01/2037 | 1,000 | 1,004 | ||||||
Missouri State Development Finance Board, Midwest Research Institute Project | ||||||||
5.000%, 11/01/2017 | 1,185 | 1,086 | ||||||
Missouri State Health & Educational Facilities Authority, University of Missouri-Columbia Arena Project | ||||||||
5.000%, 11/01/2019 | 2,540 | 2,623 | ||||||
Missouri State Health & Educational Facilities Authority, Washington University, Series A | ||||||||
5.000%, 02/15/2019 | 1,465 | 1,537 | ||||||
6,250 | ||||||||
Healthcare – 16.5% | ||||||||
Boone County Hospital | ||||||||
5.050%, 08/01/2020 | 1,200 | 1,203 | ||||||
5.625%, 08/01/2038 | 2,000 | 2,016 | ||||||
Cape Girardeau County Industrial Development Authority, Health Care Facilities Revenue, Southeast Missouri Hospital | ||||||||
5.625%, 06/01/2022 | 245 | 243 | ||||||
Cape Girardeau County Industrial Development Authority, Health Care Facilities Revenue, Southeast Missouri Hospital, Pre-refunded 06/01/2012 @ 100 | ||||||||
5.625%, 06/01/2022 ◊ | 1,255 | 1,354 | ||||||
Carthage Hospital Revenue | ||||||||
6.000%, 04/01/2038 | 1,000 | 860 | ||||||
Cass County Hospital Revenue | ||||||||
5.500%, 05/01/2027 | 2,000 | 1,907 | ||||||
Clinton County Industrial Development Authority, Health Facilities Revenue, Cameron Regional Medical Center | ||||||||
5.000%, 12/01/2037 | 1,000 | 787 | ||||||
Hannibal Industrial Development Authority Health Facilities | ||||||||
4.300%, 03/01/2013 | 1,345 | 1,326 | ||||||
5.000%, 03/01/2022 | 1,000 | 957 | ||||||
Joplin Industrial Development Authority Healthcare Facilities, Freeman Health Systems Project | ||||||||
5.500%, 02/15/2024 | 2,000 | 2,000 | ||||||
Missouri State Health & Educational Facilities Authority, BJC Health Systems, Series A, Escrowed to Maturity | ||||||||
6.750%, 05/15/2012 § | 3,310 | 3,721 | ||||||
Missouri State Health & Educational Facilities Authority, Jefferson Memorial Hospital (RAAI) | ||||||||
5.000%, 08/15/2019 | 2,300 | 2,257 | ||||||
Missouri State Health & Educational Facilities Authority, Lake Regional Health System Project | ||||||||
5.000%, 02/15/2012 | 515 | 524 | ||||||
Missouri State Health & Educational Facilities Authority, SSM Health Care, Series A | ||||||||
5.000%, 06/01/2036 | 2,000 | 1,902 | ||||||
Missouri State Health & Educational Facilities Authority, SSM Health, Series B (MBIA) | ||||||||
5.000%, 06/01/2018 | 445 | 450 | ||||||
Missouri State Health & Educational Facilities Authority, St. Lukes Health, Series 2003-B (FSA) | ||||||||
5.500%, 11/15/2032 | 2,000 | 2,025 | ||||||
Saline County Industrial Development Authority, Health Facilities, John Fitzgibbon Memorial Hospital | ||||||||
5.625%, 12/01/2035 | 1,000 | 841 | ||||||
St. Louis County Industrial Development Authority, Ranken-Jordan Project | ||||||||
4.250%, 11/15/2014 | 125 | 115 | ||||||
5.000%, 11/15/2027 | 670 | 552 | ||||||
5.000%, 11/15/2035 | 1,300 | 1,028 | ||||||
St. Louis County Industrial Development Authority, Ranken-Jordan Project, Series A, Pre-refunded 11/15/2013 @ 100 | ||||||||
6.625%, 11/15/2035 ◊ | 500 | 572 | ||||||
26,640 | ||||||||
Housing – 4.2% | ||||||||
Missouri State Housing Development Commission, Homeownership Loan Program, Series A1 (AMT) (FHLMC) (FNMA) (GNMA) | ||||||||
5.300%, 03/01/2039 | 675 | 639 | ||||||
Missouri State Housing Development Commission, Homeownership Loan Program, Series B (AMT) (FNMA) (GNMA) | ||||||||
4.800%, 09/01/2031 | 2,380 | 2,153 | ||||||
Missouri State Housing Development Commission, Homeownership Loan Program, Series C1 (AMT) (FNMA) (GNMA) | ||||||||
5.000%, 09/01/2037 | 1,000 | 914 | ||||||
Riverside Industrial Development Authority, Riverside Horizons Project, Series A (ACA) | ||||||||
5.000%, 05/01/2027 | 1,900 | 1,745 | ||||||
University City Industrial Development Authority, Multifamily Housing, Series A (GNMA) | ||||||||
5.950%, 12/20/2025 | 1,400 | 1,401 | ||||||
6,852 | ||||||||
Lease Revenue – 15.9% | ||||||||
Cape Girardeau County, Jackson School District R-02 (MBIA) | ||||||||
5.250%, 03/01/2026 | 1,000 | 1,020 | ||||||
Clay County, Public Building Authority (FSA) | ||||||||
5.125%, 05/15/2014 | 2,000 | 2,004 |
The accompanying notes are an integral part of the financial statements.
72 First American Funds 2008 Annual Report
Missouri Tax Free Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Kansas City Municipal Assistance, Capital Appreciation Leasehold, Series B-1, Zero Coupon Bond (AMBAC) | ||||||||
5.420%, 04/15/2027 ¤ | $ | 2,000 | $ | 732 | ||||
Kansas City Special Facilities Revenue, MCI Overhaul Base Project, Series G (AMT) | ||||||||
4.750%, 09/01/2028 | 4,000 | 3,530 | ||||||
Missouri State Board of Public Buildings, Series A | ||||||||
5.000%, 10/15/2027 | 1,000 | 1,016 | ||||||
Missouri State Board of Public Buildings, State Office Building Special Obligation, Series A | ||||||||
5.000%, 05/01/2017 | 1,000 | 1,036 | ||||||
5.125%, 05/01/2026 | 5,000 | 5,127 | ||||||
Missouri State Board of Public Buildings, State Office Building Special Obligation, Series A (MBIA) | ||||||||
5.000%, 05/01/2023 | 2,000 | 2,028 | ||||||
5.000%, 05/01/2024 | 5,130 | 5,197 | ||||||
Missouri State Development Financial Board, Branson, Series A | ||||||||
5.000%, 12/01/2017 | 1,000 | 980 | ||||||
5.375%, 12/01/2022 | 750 | 727 | ||||||
Platte County School District #R-3 | ||||||||
5.000%, 03/01/2028 | 200 | 201 | ||||||
Springfield Public Building, Capital Improvement Project (AMBAC) | ||||||||
5.000%, 03/01/2024 | 2,000 | 2,037 | ||||||
25,635 | ||||||||
Miscellaneous – 2.3% | ||||||||
Kennett Industrial Development Authority, Manac Trailers USA Project (LOC: Region’s Bank) (AMT) | ||||||||
4.250%, 03/01/2022 | 1,500 | 1,322 | ||||||
4.250%, 03/01/2024 | 500 | 425 | ||||||
Missouri State Development Finance Board, Eastland Center Project, Series A | ||||||||
4.250%, 04/01/2015 | 1,010 | 997 | ||||||
Sugar Creek, Lafarge North America, Series A (AMT) | ||||||||
5.650%, 06/01/2037 | 1,000 | 877 | ||||||
3,621 | ||||||||
Revolving Funds – 10.4% | ||||||||
Missouri State Environmental Improvement & Energy Resources Authority, Series A, State Revolving Fund Program, Pre-refunded 07/01/2010 @ 100 | ||||||||
5.500%, 07/01/2016 ◊ | 1,875 | 1,978 | ||||||
Missouri State Environmental Improvement & Energy Resources Authority, Water Pollution Control, Series A | ||||||||
4.750%, 07/01/2020 | 2,000 | 2,080 | ||||||
Missouri State Environmental Improvement & Energy Resources Authority, Water Pollution Control, Series A, State Revolving Fund Program | ||||||||
5.500%, 07/01/2016 | 620 | 647 | ||||||
4.375%, 01/01/2028 | 500 | 483 | ||||||
Missouri State Environmental Improvement & Energy Resources Authority, Water Pollution Control, Series B, Drinking Water | ||||||||
5.250%, 01/01/2015 | 2,180 | 2,230 | ||||||
Missouri State Environmental Improvement & Energy Resources Authority, Water Pollution Control, Series C, State Revolving Fund Program | ||||||||
5.375%, 07/01/2016 | 1,000 | 1,112 | ||||||
4.750%, 07/01/2023 | 410 | 420 | ||||||
5.000%, 07/01/2023 | 6,655 | 6,832 | ||||||
4.750%, 07/01/2025 | 1,000 | 1,018 | ||||||
16,800 | ||||||||
Tax Revenue – 10.0% | ||||||||
Belton Increment Tax Revenue, Town Center Project | ||||||||
5.625%, 03/01/2025 | 550 | 516 | ||||||
Branson Industrial Development Authority Tax Increment Revenue, Branson Landing Retail Project | ||||||||
5.500%, 06/01/2029 | 1,000 | 857 | ||||||
Columbia Electric Utility Improvement, Series A | ||||||||
5.000%, 10/01/2021 | 400 | 414 | ||||||
5.000%, 10/01/2023 | 445 | 457 | ||||||
5.125%, 10/01/2030 | 500 | 505 | ||||||
Fenton Tax Increment Revenue, Gravois Bluffs Redevelopment Project | ||||||||
5.000%, 04/01/2014 | 1,000 | 1,040 | ||||||
Harrisonville Towne Center Project | ||||||||
4.375%, 11/01/2017 | 340 | 328 | ||||||
4.500%, 11/01/2022 | 715 | 666 | ||||||
Howard Bend Levee District (XLCA) | ||||||||
5.500%, 03/01/2026 | 1,745 | 1,781 | ||||||
Jackson County Harry Truman Sports Complex (AMBAC) | ||||||||
5.000%, 12/01/2028 | 3,000 | 3,045 | ||||||
Kansas City Tax Increment Financing Commission, Maincor Project, Series A | ||||||||
5.250%, 03/01/2018 | 500 | 478 | ||||||
Missouri State Development Finance Board, Independence Centerpoint Project, Series E | ||||||||
5.125%, 04/01/2025 | 1,000 | 997 | ||||||
Missouri State Development Finance Board, Independence Crackerneck Creek Project, Series B | ||||||||
5.000%, 03/01/2025 | 1,000 | 928 | ||||||
Osage Beach Tax Increment Revenue, Prewitt’s Point Project | ||||||||
5.000%, 05/01/2023 | 1,455 | 1,254 | ||||||
Raytown Live Redevelopment Plan, Project #1 | ||||||||
5.125%, 12/01/2031 | 1,000 | 987 | ||||||
Riverside Tax Increment Revenue, L-385 Levee Project | ||||||||
5.250%, 05/01/2020 | 1,000 | 978 | ||||||
St. Joseph Industrial Development Authority, Tax Increment Revenue, Shoppes at North Village Project | ||||||||
5.375%, 11/01/2023 | 1,000 | 914 | ||||||
16,145 | ||||||||
Transportation – 6.2% | ||||||||
Missouri State Highways & Transportation Commission | ||||||||
4.750%, 05/01/2027 | 360 | 364 | ||||||
Missouri State Highways & Transportation, Series A, Pre-refunded 02/01/2011 @ 100 | ||||||||
5.250%, 02/01/2020 ◊ | 5,000 | 5,284 |
First American Funds 2008 Annual Report 73
Schedule of Investments June 30, 2008, all dollars are rounded to thousands (000)
Missouri Tax Free Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Missouri State Highways & Transportation, Series A, Pre-refunded 02/01/2012 @ 100 | ||||||||
5.000%, 02/01/2022 ◊ | $ | 3,225 | $ | 3,415 | ||||
Puerto Rico Commonwealth Highway & Transportation Authority, Series K | ||||||||
5.000%, 07/01/2017 | 1,000 | 989 | ||||||
10,052 | ||||||||
Utilities – 7.2% | ||||||||
Kansas City Water, Series B | ||||||||
5.000%, 12/01/2016 | 2,200 | 2,215 | ||||||
Metropolitan St. Louis Sewer District, Wastewater Systems Revenue, Series A (MBIA) | ||||||||
5.000%, 05/01/2023 | 1,075 | 1,099 | ||||||
Missouri Joint Municipal Electric Utilities, Commission Power Project Revenue, Iatan 2 Project, Series A (AMBAC) | ||||||||
5.000%, 01/01/2028 | 1,000 | 970 | ||||||
Missouri Joint Municipal Electric Utilities, Commission Power Project Revenue, Plum Point Project (MBIA) | ||||||||
5.000%, 01/01/2016 | 1,500 | 1,540 | ||||||
Missouri State Development Finance Board, Independence Water System (AMBAC) | ||||||||
5.000%, 11/01/2024 | 1,000 | 1,011 | ||||||
North Central Regional Water Commission, Waterworks Systems Revenue | ||||||||
5.000%, 01/01/2037 | 2,070 | 1,900 | ||||||
Puerto Rico Commonwealth Aqueduct & Sewer Authority, Series A (AGTY) | ||||||||
5.000%, 07/01/2028 | 1,000 | 1,013 | ||||||
Puerto Rico Electric Power Authority, Series WW | ||||||||
5.250%, 07/01/2025 | 1,000 | 1,007 | ||||||
St. Joseph Industrial Development Authority, Sewer System Improvements Project | ||||||||
4.750%, 04/01/2020 | 500 | 495 | ||||||
4.750%, 04/01/2021 | 390 | 384 | ||||||
11,634 | ||||||||
Total Revenue Bonds | 130,248 | |||||||
General Obligations – 11.0% | ||||||||
Cass County School District #R-9, Harrisonville (MBIA) (MDDP) | ||||||||
4.500%, 03/01/2019 | 500 | 508 | ||||||
Jackson County School District #7, Lee’s Summit (MDDP) | ||||||||
4.750%, 03/01/2027 | 1,000 | 1,007 | ||||||
Jefferson City School District, Series A, Escrowed to Maturity | ||||||||
6.700%, 03/01/2011 § | 775 | 822 | ||||||
Ladue School District | ||||||||
5.000%, 03/01/2023 | 1,500 | 1,555 | ||||||
North Kansas City School District #74 (MDDP) | ||||||||
5.000%, 03/01/2019 | 500 | 536 | ||||||
5.000%, 03/01/2022 | 1,000 | 1,048 | ||||||
Platte County School District #R-3 (MBIA) | ||||||||
5.000%, 03/01/2024 | 685 | 702 | ||||||
Puerto Rico Commonwealth, Public Improvement, Series A | ||||||||
5.250%, 07/01/2026 | 1,000 | 981 | ||||||
Puerto Rico Municipal Finance Agency, Pre-refunded 08/01/2009 @ 101 (FSA) | ||||||||
5.500%, 08/01/2023 ◊ | 3,000 | 3,144 | ||||||
Richmond Heights, Manhasset Village Neighborhood | ||||||||
4.500%, 04/01/2026 | 690 | 657 | ||||||
St. Charles Community College (MBIA) | ||||||||
5.250%, 02/15/2018 | 1,220 | 1,324 | ||||||
St. Charles County, Francis Howell School District (FGIC) (MDDP) | ||||||||
5.250%, 03/01/2018 | 2,095 | 2,283 | ||||||
St. Louis County | ||||||||
5.000%, 02/01/2012 | 1,000 | 1,061 | ||||||
St. Louis County Public Safety, Pre-refunded 08/15/2009 @ 100 (FGIC) | ||||||||
5.125%, 02/15/2017 ◊ | 2,000 | 2,065 | ||||||
Total General Obligations | 17,693 | |||||||
Certificates of Participation – 7.7% | ||||||||
Belton Refunding & Improvement | ||||||||
5.250%, 03/01/2029 | 355 | 350 | ||||||
Belton Refunding & Improvement (MBIA) | ||||||||
4.375%, 03/01/2019 | 500 | 491 | ||||||
4.500%, 03/01/2022 | 500 | 483 | ||||||
Cottleville | ||||||||
5.125%, 08/01/2026 | 200 | 185 | ||||||
5.250%, 08/01/2031 | 1,700 | 1,558 | ||||||
Hazelwood School District, Energy Improvements Project | ||||||||
4.500%, 03/01/2017 | 515 | 523 | ||||||
4.500%, 03/01/2018 | 445 | 449 | ||||||
Kansas City Metropolitan Junior College District | ||||||||
4.500%, 07/01/2021 « | 1,375 | 1,361 | ||||||
Missouri School Boards Association, Liberty Public School District #53 (FSA) | ||||||||
5.250%, 03/01/2025 | 1,015 | 1,067 | ||||||
Ozark R-6 School District Lease (FSA) | ||||||||
5.000%, 09/01/2025 | 1,915 | 1,953 | ||||||
Texas County Justice Center Project (AGTY) | ||||||||
4.500%, 12/01/2025 | 3,660 | 3,502 | ||||||
Union, Series A | ||||||||
5.200%, 07/01/2023 | 520 | 522 | ||||||
Total Certificates of Participation | 12,444 | |||||||
Total Investments – 99.4% | ||||||||
(Cost $162,171) | 160,385 | |||||||
Other Assets and Liabilities, Net – 0.6% | 902 | |||||||
Total Net Assets – 100.0% | $ | 161,287 | ||||||
◊ | Pre-refunded issues are typically backed by U.S. government obligations, which secure the timely payment of principal and interest. These bonds mature at the call date and price indicated. | |
§ | Escrowed to Maturity issues are typically backed by U.S. government obligations, which secure the timely payment of principal and interest. If callable, these bonds may still be subject to call prior to maturity. | |
¤ | Zero coupon bonds make no periodic interest payments, but are issued at deep discounts from par value. The rate shown is the effective yield as of June 30, 2008. | |
« | Security purchased on a when-issued basis. On June 30, 2008, the total cost of investments purchased on a when-issued basis was $1,339 or 0.8% of total net assets. See note 2 in Notes to Financial Statements. |
ACA – | American Capital Assurance |
AGTY – | Assured Guaranty |
AMBAC – | American Municipal Bond Assurance Corporation |
AMT – | Alternative Minimum Tax. As of June 30, 2008, the aggregate market value of securities subject to the AMT was $9,860, which represents 6.1% of total net assets. |
FGIC – | Financial Guaranty Insurance Corporation |
FHLMC – | Federal Home Loan Mortgage Corporation |
The accompanying notes are an integral part of the financial statements.
74 First American Funds 2008 Annual Report
Missouri Tax Free Fund (concluded)
FNMA – | Federal National Mortgage Association |
FSA – | Financial Security Assurance |
GNMA – | Government National Mortgage Association |
LOC – | Letter of Credit |
MBIA – | Municipal Bond Insurance Association |
MDDP – | Missouri Direct Deposit Program |
RAAI – | Radian Asset Assurance Inc. |
XLCA – | XL Capital Assurance Inc. |
Missouri Tax Free Fund (concluded)
Nebraska Tax Free Fund | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Municipal Bonds – 98.7% | ||||||||
Revenue Bonds – 76.9% | ||||||||
Continuing Care Retirement Communities – 2.9% | ||||||||
Colorado Health Facilities, Christian Living Communities, Series A | ||||||||
5.750%, 01/01/2026 | $ | 100 | $ | 91 | ||||
Illinois Finance Authority, Franciscan Communities, Series A | ||||||||
5.500%, 05/15/2037 | 275 | 232 | ||||||
Illinois Finance Authority, Three Crowns Park Plaza, Series A | ||||||||
5.875%, 02/15/2026 | 200 | 183 | ||||||
South Dakota Health & Educational Facilities Authority, Westhills Village Retirement Community | ||||||||
5.000%, 09/01/2025 | 600 | 569 | ||||||
1,075 | ||||||||
Education – 19.9% | ||||||||
Anderson, Indiana, Economic Development Revenue, Anderson University Project | ||||||||
5.000%, 10/01/2032 | 575 | 492 | ||||||
Nebraska Educational Finance Authority, Concordia University Project | ||||||||
5.350%, 12/15/2018 | 650 | 651 | ||||||
Nebraska Educational Finance Authority, Midland Lutheran College Project | ||||||||
5.200%, 10/01/2020 | 350 | 318 | ||||||
Nebraska Educational Finance Authority, Wesleyan University Project (RAAI) | ||||||||
5.000%, 04/01/2017 | 605 | 603 | ||||||
Nebraska Utility Corporation, University of Nebraska, Lincoln Project | ||||||||
5.250%, 01/01/2015 | 1,045 | 1,100 | ||||||
University of Nebraska Facility Corporation, Medical Center Research Project | ||||||||
5.000%, 02/15/2015 | 500 | 522 | ||||||
University of Nebraska, Kearney Student Fees | ||||||||
5.000%, 07/01/2030 | 500 | 506 | ||||||
University of Nebraska, Lincoln Memorial Stadium Project, Series A | ||||||||
5.000%, 11/01/2015 | 500 | 523 | ||||||
University of Nebraska, Lincoln Student Fees | ||||||||
5.000%, 07/01/2022 | 750 | 765 | ||||||
University of Nebraska, Omaha Health & Recreation Project | ||||||||
5.000%, 05/15/2033 | 1,000 | 1,008 | ||||||
University of Nebraska, Omaha Student Facilities Project | ||||||||
5.000%, 05/15/2032 | 350 | 351 | ||||||
University of Nebraska, Omaha Student Housing Project | ||||||||
5.000%, 05/15/2023 | 500 | 513 | ||||||
7,352 | ||||||||
Healthcare – 26.7% | ||||||||
Adams County Hospital Authority #1, Mary Lanning Memorial Hospital Project (RAAI) | ||||||||
5.250%, 12/15/2033 « | 1,000 | 971 | ||||||
Douglas County Hospital Authority #2, Girls & Boys Town Project | ||||||||
4.500%, 09/01/2030 | 1,000 | 924 | ||||||
Douglas County Hospital Authority #2, Nebraska Medical Center | ||||||||
5.000%, 11/15/2016 | 700 | 726 |
First American Funds 2008 Annual Report 75
Schedule of Investments June 30, 2008, all dollars are rounded to thousands (000)
Nebraska Tax Free Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Douglas County Hospital Authority #3, Methodist Health | ||||||||
5.500%, 11/01/2038 | $ | 1,000 | $ | 981 | ||||
Halifax Medical Center, Hospital Revenue, Series A | ||||||||
5.000%, 06/01/2038 | 600 | 519 | ||||||
Indiana Health & Educational Facility Financing Authority, Schneck Memorial Hospital Project, Series A | ||||||||
5.250%, 02/15/2030 | 600 | 585 | ||||||
Inver Grove Heights, Minnesota, Nursing Home Revenue, Presbyterian Homes Care | ||||||||
5.500%, 10/01/2033 | 275 | 261 | ||||||
Iowa Finance Authority, Health Facilities Revenue, Care Initiatives Project, Series A | ||||||||
5.000%, 07/01/2020 | 200 | 177 | ||||||
Lancaster County Hospital Authority #1, BryanLGH Medical Center Project, Series A | ||||||||
5.000%, 06/01/2018 | 1,000 | 1,027 | ||||||
Lancaster County Hospital Authority #1, BryanLGH Medical Center Project, Series A, Pre-refunded 06/01/2011 @ 100 (AMBAC) | ||||||||
5.000%, 06/01/2019 ◊ | 500 | 528 | ||||||
Madison County Hospital Authority #1, Faith Regional Health Services Project (RAAI) | ||||||||
5.500%, 07/01/2021 | 1,000 | 1,006 | ||||||
Nebraska Investment Finance Authority, Great Plains Regional Medical Center (RAAI) | ||||||||
5.200%, 11/15/2016 | 250 | 250 | ||||||
5.300%, 11/15/2017 | 805 | 804 | ||||||
New Hampshire Health & Educational Facilities Authority, The Memorial Hospital | ||||||||
5.250%, 06/01/2036 | 150 | 131 | ||||||
Platte County Hospital Authority #1, Columbus Community Hospital Project (RAAI) | ||||||||
5.850%, 05/01/2014 | 650 | 670 | ||||||
University of Alabama at Birmingham, Hospital Revenue, Series A | ||||||||
4.500%, 09/01/2031 | 400 | 336 | ||||||
9,896 | ||||||||
Housing – 2.9% | ||||||||
Nebraska Investment Finance Authority, Single Family Housing, Series D (AMT) | ||||||||
4.950%, 09/01/2026 | 475 | 451 | ||||||
Omaha Housing Authority, Multifamily Housing, Timbercreek Apartments (GNMA) | ||||||||
5.150%, 11/20/2022 | 610 | 617 | ||||||
1,068 | ||||||||
Miscellaneous – 2.0% | ||||||||
Washington County Wastewater & Solid Waste Disposal Facilities, Cargill Project (AMT) | ||||||||
4.850%, 04/01/2035 | 500 | 434 | ||||||
Washington County Wastewater Facilities, Cargill Project (AMT) | ||||||||
5.900%, 11/01/2027 | 300 | 313 | ||||||
747 | ||||||||
Recreational Facility Authority – 6.5% | ||||||||
Douglas County Zoo Facility, Omaha Henry Doorly Zoo Project | ||||||||
4.750%, 09/01/2024 | 1,365 | 1,342 | ||||||
Omaha Convention Hotel Corporation, Series A, Pre-refunded 04/01/2012 @ 100 (AMBAC) | ||||||||
5.125%, 04/01/2026 ◊ | 1,000 | 1,066 | ||||||
2,408 | ||||||||
Revolving Funds – 1.6% | ||||||||
Nebraska Investment Finance Authority, Drinking Water System Revolving Fund | ||||||||
5.150%, 01/01/2016 | 580 | 583 | ||||||
Tax Revenue – 1.4% | ||||||||
Omaha Special Tax Revenue, Series A | ||||||||
5.125%, 02/01/2032 | 500 | 507 | ||||||
Utilities – 13.0% | ||||||||
Alliance Electrical Systems (AMBAC) | ||||||||
5.000%, 12/15/2014 | 260 | 261 | ||||||
5.100%, 12/15/2015 | 460 | 461 | ||||||
Burt County Public Power District Electric Systems | ||||||||
4.850%, 07/01/2026 | 335 | 328 | ||||||
Central Plains Energy Project, Nebraska Gas Project #1, Series A | ||||||||
5.250%, 12/01/2021 | 750 | 716 | ||||||
Grand Island Electrical Systems (MBIA) | ||||||||
5.125%, 08/15/2016 | 750 | 776 | ||||||
Hastings Electrical Systems (FSA) | ||||||||
5.000%, 01/01/2015 | 250 | 260 | ||||||
Lincoln Electrical Systems | ||||||||
5.000%, 09/01/2026 | 250 | 254 | ||||||
Puerto Rico Commonwealth, Aqueduct & Sewer Authority, Series A (AGTY) | ||||||||
5.000%, 07/01/2025 | 500 | 509 | ||||||
Puerto Rico Electric Power Authority, Series WW | ||||||||
5.250%, 07/01/2025 | 1,000 | 1,007 | ||||||
South Sioux City Combined Electric, Water & Sewer | ||||||||
4.750%, 08/01/2027 | 250 | 241 | ||||||
4,813 | ||||||||
Total Revenue Bonds | 28,449 | |||||||
General Obligations – 18.3% | ||||||||
Brown County | ||||||||
4.350%, 06/15/2026 | 200 | 197 | ||||||
4.700%, 12/15/2026 | 400 | 399 | ||||||
Douglas County School District #54, Ralston Public Schools (FSA) | ||||||||
5.000%, 12/15/2016 | 845 | 879 | ||||||
La Vista | ||||||||
4.800%, 12/15/2026 | 345 | 346 | ||||||
Lancaster County School District #1, Lincoln Public Schools | ||||||||
5.000%, 01/15/2017 | 750 | 783 | ||||||
5.250%, 07/15/2019 | 220 | 228 | ||||||
Lincoln-Lancaster County Public Building Community, Tax Supported Lease Rental | ||||||||
4.500%, 10/15/2026 | 750 | 735 | ||||||
Omaha-Douglas Public Building | ||||||||
4.900%, 05/01/2016 | 500 | 517 | ||||||
5.100%, 05/01/2020 | 300 | 310 | ||||||
Puerto Rico Commonwealth, Public Improvement, Series A | ||||||||
5.250%, 07/01/2026 | 500 | 490 | ||||||
Puerto Rico Commonwealth, Series C-7 (MBIA) | ||||||||
6.000%, 07/01/2027 | 250 | 261 |
The accompanying notes are an integral part of the financial statements.
76 First American Funds 2008 Annual Report
Nebraska Tax Free Fund (concluded) | ||||||||
DESCRIPTION | PAR/SHARES | VALUE | ||||||
Saunders County (FSA) | ||||||||
5.000%, 11/01/2030 | $ | 650 | $ | 653 | ||||
Scotts Bluff County | ||||||||
4.550%, 01/15/2026 | 500 | 501 | ||||||
4.500%, 01/15/2031 | 500 | 479 | ||||||
Total General Obligations | 6,778 | |||||||
Certificates of Participation – 3.5% | ||||||||
Western Nebraska Community College | ||||||||
4.700%, 10/15/2010 | 295 | 296 | ||||||
4.800%, 10/15/2011 | 195 | 195 | ||||||
4.900%, 10/15/2012 | 250 | 250 | ||||||
5.000%, 10/15/2013 | 300 | 300 | ||||||
5.100%, 10/15/2014 | 250 | 250 | ||||||
Total Certificates of Participation | 1,291 | |||||||
Total Municipal Bonds | ||||||||
(Cost $36,757) | 36,518 | |||||||
Short-Term Investment – 3.7% | ||||||||
First American Tax Free Obligations Fund, Class Z Å | ||||||||
(Cost $1,377) | 1,376,855 | 1,377 | ||||||
Total Investments – 102.4% | ||||||||
(Cost $38,134) | 37,895 | |||||||
Other Assets and Liabilities, Net – (2.4)% | (875 | ) | ||||||
Total Net Assets – 100.0% | $ | 37,020 | ||||||
« | Security purchased on a when-issued basis. On June 30, 2008, the total cost of investments purchased on a when-issued basis was $986 or 2.7% of total net assets. See note 2 in Notes to Financial Statements. | |
◊ | Pre-refunded issues are typically backed by U.S. government obligations, which secure the timely payment of principal and interest. These bonds mature at the call date and price indicated. | |
Å | Investment in affiliated security. This money market fund is advised by FAF Advisors Inc., which also serves as advisor for this fund. See note 3 in Notes to Financial Statements. |
AGTY – | Assured Guaranty |
AMBAC – | American Municipal Bond Assurance Corporation |
AMT – | Alternative Minimum Tax. As of June 30, 2008, the aggregate market value of securities subject to the AMT was $1,198, which represents 3.2% of total net assets. |
FSA – | Financial Security Assurance |
GNMA – | Government National Mortgage Association |
MBIA – | Municipal Bond Insurance Association |
RAAI – | Radian Asset Assurance Inc. |
Nebraska Tax Free Fund (concluded)
Ohio Tax Free Bond Fund | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Municipal Bonds – 99.1% | ||||||||
Revenue Bonds – 60.9% | ||||||||
Continuing Care Retirement Communities – 3.8% | ||||||||
Franklin County Health Care Facilities, Refunding & Improvement, Ohio Presbyterian, Series A | ||||||||
5.000%, 07/01/2026 | $ | 800 | $ | 717 | ||||
Franklin County Health Care Facilities, Refunding & Improvement, Ohio Presbyterian, Series A (RAAI) | ||||||||
5.125%, 07/01/2022 | 500 | 490 | ||||||
Hamilton County Health Care, Life Enriching Communities Project, Series A | ||||||||
5.000%, 01/01/2027 | 400 | 358 | ||||||
Illinois Finance Authority, Franciscan Communities, Series A | ||||||||
5.500%, 05/15/2037 | 400 | 337 | ||||||
1,902 | ||||||||
Education – 15.2% | ||||||||
Cincinnati Port Development Authority, Economic Development Authority, Sisters of Mercy | ||||||||
5.000%, 10/01/2025 | 250 | 240 | ||||||
Ohio State Higher Educational Facilities, Baldwin-Wallace College Project | ||||||||
5.000%, 12/01/2013 | 750 | 781 | ||||||
Ohio State Higher Educational Facilities, College of Wooster Project | ||||||||
5.000%, 09/01/2020 | 400 | 410 | ||||||
Ohio State Higher Educational Facilities, John Carroll University Project | ||||||||
5.000%, 04/01/2019 | 1,000 | 1,024 | ||||||
Ohio State Higher Educational Facilities, Mount Union College Project | ||||||||
5.000%, 10/01/2031 | 1,000 | 976 | ||||||
Ohio State Higher Educational Facilities, Ohio Northern University Project | ||||||||
5.000%, 05/01/2026 | 1,000 | 1,001 | ||||||
Ohio State Higher Educational Facilities, Otterbein College Project, Series A | ||||||||
5.500%, 12/01/2028 « | 500 | 490 | ||||||
Ohio State Higher Educational Facilities, Wittenberg University Project | ||||||||
5.000%, 12/01/2024 | 505 | 472 | ||||||
Ohio State Higher Educational Facilities, Xavier University Project, Pre-refunded 05/01/2013 @ 100 (FGIC) | ||||||||
5.250%, 05/01/2016 ◊ | 1,000 | 1,071 | ||||||
University of Cincinnati, Series A (FGIC) | ||||||||
5.500%, 06/01/2014 | 1,000 | 1,055 | ||||||
7,520 | ||||||||
Healthcare – 10.9% | ||||||||
Akron, Bath & Copley Joint Township Hospital Facilities, Summa Health Systems, Series A (RAAI) | ||||||||
5.250%, 11/15/2016 | 800 | 820 | ||||||
Erie County Hospital Facilities, Firelands Regional Medical Center, Series A | ||||||||
5.500%, 08/15/2022 | 500 | 506 | ||||||
Fairfield County Hospital Facilities, Fairfield Medical Center (RAAI) | ||||||||
5.000%, 06/15/2022 | 500 | 481 |
First American Funds 2008 Annual Report 77
Schedule of Investments June 30, 2008, all dollars are rounded to thousands (000)
Ohio Tax Free Bond Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Franklin County Hospital Revenue, Nationwide Childrens, Series A | ||||||||
4.750%, 11/01/2023 | $ | 365 | $ | 359 | ||||
Lake County Hospital Facilities, | ||||||||
Series C | ||||||||
5.625%, 08/15/2029 | 750 | 728 | ||||||
Lorain County Hospital Revenue, Catholic Healthcare | ||||||||
5.500%, 10/01/2017 | 350 | 371 | ||||||
Lucas County Hospital Revenue, Promedica Healthcare, Series D | ||||||||
5.000%, 11/15/2038 | 400 | 379 | ||||||
Miami County Hospital Facilities, Upper Valley Medical Center | ||||||||
5.250%, 05/15/2026 | 1,250 | 1,193 | ||||||
Richland County Hospital Facilities, Medcentral Health Systems | ||||||||
5.250%, 11/15/2036 | 600 | 552 | ||||||
5,389 | ||||||||
Housing – 3.4% | ||||||||
Ohio Housing Finance Agency, Residential Mortgage Backed Securities, Series A (AMT) (FNMA) (GNMA) | ||||||||
5.000%, 09/01/2017 | 750 | 734 | ||||||
Ohio Housing Finance Agency, Residential Mortgage Backed Securities, Series E (AMT) (FNMA) (GNMA) | ||||||||
4.850%, 09/01/2026 | 1,000 | 933 | ||||||
1,667 | ||||||||
Lease Revenue – 5.5% | ||||||||
Cleveland-Cuyahoga County Port Authority, Rita Project (RAAI) | ||||||||
5.000%, 11/15/2019 | 750 | 738 | ||||||
Puerto Rico Public Buildings Authority, Government Facilities, Series M (COMGTY) | ||||||||
6.250%, 07/01/2031 | 500 | 546 | ||||||
Riversouth Authority Revenue, Lazarus Building Redevelopment, Series A | ||||||||
5.750%, 12/01/2027 | 400 | 378 | ||||||
Riversouth Authority Revenue, Riversouth Area Redevelopment, Series A | ||||||||
5.250%, 12/01/2017 | 1,000 | 1,056 | ||||||
2,718 | ||||||||
Miscellaneous – 2.1% | ||||||||
Toledo-Lucas County Port Authority Facilities, Cargill Income Project, Series B | ||||||||
4.500%, 12/01/2015 | 1,000 | 1,021 | ||||||
Revolving Funds – 2.2% | ||||||||
Ohio State Water Development Authority, Water Pollution Control, Pre-refunded 06/01/2012 @ 100 | ||||||||
5.050%, 12/01/2021 ◊ | 1,000 | 1,065 | ||||||
Tax Revenue – 1.1% | ||||||||
Buckeye Tobacco Settlement, Series A-2 | ||||||||
5.875%, 06/01/2030 | 200 | 178 | ||||||
Toledo-Lucas County Port Authority, Crocker Park Public Improvement Project | ||||||||
5.250%, 12/01/2023 | 400 | 386 | ||||||
564 | ||||||||
Transportation – 2.0% | ||||||||
Columbus Regional Airport Authority (MBIA) | ||||||||
5.000%, 01/01/2028 | 1,000 | 988 | ||||||
Utilities – 14.7% | ||||||||
American Municipal Power, Prairie State Energy Campus Project, Series A | ||||||||
5.000%, 02/15/2031 « | 1,000 | 967 | ||||||
Columbus Sewer System, Series A | ||||||||
4.250%, 06/01/2030 | 1,000 | 933 | ||||||
Hamilton County Sewer System, Metropolitan Sewer District, Series A (MBIA) | ||||||||
5.000%, 12/01/2026 | 930 | 951 | ||||||
Hamilton Electric Systems, Series A (FSA) | ||||||||
4.300%, 10/15/2016 | 1,000 | 1,024 | ||||||
Montgomery County Water, Greater Moraine Beaver (AMBAC) | ||||||||
5.375%, 11/15/2016 | 1,000 | 1,056 | ||||||
Northeast Ohio Regional Sewer District, Wastewater Revenue (MBIA) | ||||||||
4.500%, 11/15/2037 | 1,000 | 921 | ||||||
Ohio State Water Development Authority, Escrowed to Maturity (AMBAC) | ||||||||
5.800%, 12/01/2011 § | 1,000 | 1,001 | ||||||
Puerto Rico Electric Power Authority, Series WW | ||||||||
5.375%, 07/01/2023 | 400 | 408 | ||||||
7,261 | ||||||||
Total Revenue Bonds | 30,095 | |||||||
General Obligations – 38.2% | ||||||||
Cincinnati, Pre-refunded 12/01/2011 @ 100 | ||||||||
5.000%, 12/01/2016 ◊ | 1,000 | 1,060 | ||||||
5.000%, 12/01/2017 ◊ | 1,000 | 1,060 | ||||||
Cincinnati School District, Classroom Construction & Improvement (FGIC) | ||||||||
5.250%, 12/01/2019 | 535 | 575 | ||||||
5.250%, 12/01/2027 | 380 | 401 | ||||||
Dayton City School District, School Facilities Construction & Improvement, Series D (FGIC) | ||||||||
5.000%, 12/01/2011 | 500 | 525 | ||||||
Franklin County | ||||||||
4.500%, 12/01/2027 | 690 | 684 | ||||||
Gahanna (MBIA) | ||||||||
5.000%, 12/01/2027 | 400 | 408 | ||||||
Greene County, General Infrastructure (AMBAC) | ||||||||
5.250%, 12/01/2026 | 1,000 | 1,044 | ||||||
Hubbard Village School District, Classroom Facilities Improvement (CIFG) | ||||||||
4.250%, 12/01/2027 | 650 | 577 | ||||||
Ohio State Common Schools, Series A | ||||||||
5.125%, 09/15/2022 | 1,000 | 1,038 | ||||||
Ohio State Higher Education, Series A | ||||||||
5.000%, 02/01/2019 | 1,000 | 1,027 | ||||||
5.000%, 08/01/2022 | 1,000 | 1,031 | ||||||
Ohio State Higher Education, Series B | ||||||||
5.000%, 11/01/2015 | 1,000 | 1,042 | ||||||
Ohio State Infrastructure Improvement, Series A | ||||||||
5.500%, 02/01/2020 | 1,000 | 1,117 | ||||||
Ohio State Parks & Recreational Facilities, Series II-A (FSA) | ||||||||
5.250%, 02/01/2020 | 1,000 | 1,055 | ||||||
Puerto Rico Commonwealth, Government Development, Series B | ||||||||
5.000%, 12/01/2014 | 260 | 262 | ||||||
Puerto Rico Commonwealth, Series A | ||||||||
5.000%, 07/01/2027 | 1,000 | 975 | ||||||
Sidney City School District (FGIC) | ||||||||
4.375%, 12/01/2027 | 1,005 | 908 |
The accompanying notes are an integral part of the financial statements.
78 First American Funds 2008 Annual Report
Ohio Tax Free Bond Fund (concluded) | ||||||||
DESCRIPTION | PAR/SHARES | VALUE | ||||||
Solon | ||||||||
5.000%, 12/01/2021 | $ | 1,000 | $ | 1,023 | ||||
Springfield City School District, Pre-refunded 12/01/2011 @ 102 (FGIC) | ||||||||
5.200%, 12/01/2023 ◊ | 1,000 | 1,085 | ||||||
St. Marys City School District, Construction & Improvement (FSA) (OSDCEP) | ||||||||
5.000%, 12/01/2028 | 900 | 920 | ||||||
Toledo City School District, School Facilities Improvement (FSA) (OSDCEP) | ||||||||
5.000%, 12/01/2014 | 1,000 | 1,070 | ||||||
Total General Obligations | 18,887 | |||||||
Total Municipal Bonds | ||||||||
(Cost $49,426) | 48,982 | |||||||
Short-Term Investment – 3.3% | ||||||||
Federated Ohio Municipal Cash Trust | ||||||||
(Cost $1,610) | 1,609,763 | 1,610 | ||||||
Total Investments – 102.4% | ||||||||
(Cost $51,036) | 50,592 | |||||||
Other Assets and Liabilities, Net – (2.4)% | (1,192 | ) | ||||||
Total Net Assets – 100.0% | $ | 49,400 | ||||||
« | Security purchased on a when-issued basis. On June 30, 2008, the total cost of investments purchased on a when-issued basis was $1,455 or 2.9% of total net assets. See note 2 in Notes to Financial Statements. | |
◊ | Pre-refunded issues are typically backed by U.S. government obligations, which secure the timely payment of principal and interest. These bonds mature at the call date and price indicated. | |
§ | Escrowed to Maturity issues are typically backed by U.S. government obligations, which secure the timely payment of principal and interest. If callable, these bonds may still be subject to call at the call date and price indicated. |
AMBAC – | American Municipal Bond Assurance Corporation |
AMT – | Alternative Minimum Tax. As of June 30, 2008 the aggregate market value of securities subject to the AMT was $1,667, which represents 3.4% of total net assets. |
CIFG – | CDC IXIS Financial Guaranty |
COMGTY – | Commonwealth Guaranty |
FGIC – | Financial Guaranty Insurance Corporation |
FNMA – | Federal National Mortgage Association |
FSA – | Financial Security Assurance |
GNMA – | Government National Mortgage Association |
MBIA – | Municipal Bond Insurance Corporation |
OSDCEP – | Ohio School District Credit Enhancement Program |
RAAI – | Radian Asset Assurance Inc. |
Schedule of Open Futures Contracts
Number of | Notional | |||||||||||||
Contracts | Contract | Settlement | Unrealized | |||||||||||
Description | Sold | Value | Month | Depreciation | ||||||||||
U.S. Treasury 10 Year Note Futures* | (30 | ) | $ | (3,418 | ) | September 2008 | $ | (2 | ) | |||||
* | On July 1, 2008, U.S. Treasury Bills were deposited as initial margin on futures contracts purchased on June 30, 2008. See note 2 in Notes to Financial Statements. |
Ohio Tax Free Bond Fund (concluded)
Oregon Intermediate Tax Free Fund | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Municipal Bonds – 98.2% | ||||||||
Revenue Bond – 43.7% | ||||||||
Continuing Care Retirement Communities – 3.7% | ||||||||
Clackamas County Hospital Facilities Authority, Mary’s Woods, Series A, Pre-refunded 05/15/2009 @ 102 | ||||||||
6.125%, 05/15/2013 ◊ | $ | 1,000 | $ | 1,057 | ||||
Clackamas County Hospital Facilities Authority, Robison Jewish Home | ||||||||
5.125%, 10/01/2024 | 1,000 | 867 | ||||||
Illinois Finance Authority, Franciscan Communities, Series A | ||||||||
5.500%, 05/15/2027 | 1,200 | 1,060 | ||||||
Multnomah County Hospital Facilities Authority, Terwilliger Plaza Project, Series A | ||||||||
5.250%, 12/01/2026 | 1,000 | 866 | ||||||
Oregon State Health, Housing, Educational & Cultural Facilities Authority, Oregon Baptist Retirement Homes | ||||||||
8.000%, 11/15/2026 | 890 | 891 | ||||||
4,741 | ||||||||
Education – 6.3% | ||||||||
Forest Grove Campus Improvement, Pacific University Project, Series A (RAAI) | ||||||||
5.000%, 05/01/2022 | 3,130 | 3,041 | ||||||
Multnomah County Educational Facilities, University of Portland, Pre-refunded 04/01/2010 @ 100 | ||||||||
5.700%, 04/01/2015 ◊ | 1,000 | 1,050 | ||||||
Oregon State Facilities Authority, Linfield College Project, Series A | ||||||||
5.000%, 10/01/2025 | 1,000 | 985 | ||||||
Oregon State Facilities Authority, University of Portland Project, Series A | ||||||||
4.500%, 04/01/2021 | 2,000 | 1,910 | ||||||
Oregon State Facilities Authority, Willamette University Projects, Series A | ||||||||
4.300%, 10/01/2021 | 1,085 | 1,024 | ||||||
8,010 | ||||||||
Healthcare – 8.7% | ||||||||
Clackamas County Hospital Facilities Authority, Legacy Health Systems | ||||||||
5.250%, 02/15/2011 | 2,000 | 2,060 | ||||||
5.375%, 02/15/2012 | 1,000 | 1,036 | ||||||
Deschutes County Hospital Facilities Authority, Cascade Healthcare, Series B (AMBAC) | ||||||||
5.000%, 01/01/2016 | 400 | 410 | ||||||
5.000%, 01/01/2018 | 970 | 983 | ||||||
Klamath Falls Community Hospital Authority, Merle West Medical Center Project (AGTY) | ||||||||
4.750%, 09/01/2020 | 2,025 | 2,051 | ||||||
Medford Hospital Facilities Authority, Asante Health Systems, Series A (MBIA) | ||||||||
5.250%, 08/15/2011 | 325 | 329 | ||||||
5.375%, 08/15/2012 | 320 | 324 | ||||||
Medford Hospital Facilities Authority, Asante Health Systems, Series B (MBIA) | ||||||||
3.750%, 08/15/2029 Y | 1,100 | 1,100 | ||||||
Multnomah County Hospital Facilities Authority, Providence Health Systems | ||||||||
5.250%, 10/01/2022 | 1,000 | 1,022 | ||||||
Salem Hospital Facilities Authority, Salem Hospital Project, Series A | ||||||||
5.000%, 08/15/2027 | 1,000 | 988 |
First American Funds 2008 Annual Report 79
Schedule of Investments June 30, 2008, all dollars are rounded to thousands (000)
Oregon Intermediate Tax Free Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Umatilla County Hospital Facilities Authority, Catholic Health Initiatives, Series A | ||||||||
5.000%, 03/01/2012 | $ | 690 | $ | 720 | ||||
11,023 | ||||||||
Housing – 0.8% | ||||||||
Oregon State Housing & Community Services, Series A | ||||||||
6.000%, 07/01/2016 | 5 | 5 | ||||||
6.400%, 07/01/2018 | 200 | 203 | ||||||
Oregon State Housing & Community Services, Series E (FHA) | ||||||||
5.750%, 07/01/2013 | 260 | 266 | ||||||
Oregon State Housing & Community Services, Single Family, Series A | ||||||||
4.050%, 01/01/2018 | 275 | 270 | ||||||
Portland Housing Authority, Pearl Court Project (AMT) | ||||||||
4.000%, 01/01/2011 | 230 | 230 | ||||||
974 | ||||||||
Lease Revenue – 0.8% | ||||||||
Puerto Rico Public Buildings Authority, Government Facilities, Series M-2, Mandatory Put 07/01/2017 @ 100 (AMBAC) (COMGTY) | ||||||||
5.500%, 07/01/2035 | 1,000 | 1,021 | ||||||
Recreational Facility Authority – 0.8% | ||||||||
Portland Urban Renewal & Redevelopment, Convention Center, Series A (AMBAC) | ||||||||
5.750%, 06/15/2015 | 1,000 | 1,052 | ||||||
Tax Revenue – 2.7% | ||||||||
Keizer Assessment Area A | ||||||||
5.200%, 06/01/2031 | 1,000 | 991 | ||||||
Medford Urban Renewal Agency | ||||||||
4.500%, 06/01/2013 | 1,010 | 1,029 | ||||||
Oregon State Department of Administrative Services Lottery, Series A (FSA) | ||||||||
5.000%, 04/01/2012 | 1,050 | 1,081 | ||||||
Seaside Urban Renewal Agency, Greater Seaside Urban Renewal | ||||||||
4.750%, 06/01/2015 | 280 | 279 | ||||||
3,380 | ||||||||
Transportation – 8.0% | ||||||||
Oregon State Department of Transportation, Highway User Tax, Pre-refunded 11/15/2010 @ 100 | ||||||||
5.125%, 11/15/2014 ◊ | 2,260 | 2,381 | ||||||
Oregon State Department of Transportation, Highway User Tax, Series A | ||||||||
5.000%, 11/15/2024 | 1,325 | 1,371 | ||||||
Oregon State Department of Transportation, Highway User Tax, Series A, Pre-refunded 11/15/2012 @ 100 | ||||||||
5.500%, 11/15/2016 ◊ | 1,000 | 1,090 | ||||||
Oregon State Department of Transportation, Highway User Tax, Series A, Pre-refunded 11/15/2014 @ 100 | ||||||||
5.000%, 11/15/2020 ◊ | 1,085 | 1,175 | ||||||
Port Morrow | ||||||||
4.875%, 06/01/2020 | 1,000 | 916 | ||||||
Portland International Airport, Series 12-A (FGIC) | ||||||||
5.250%, 07/01/2011 | 1,165 | 1,185 | ||||||
5.250%, 07/01/2012 | 2,000 | 2,032 | ||||||
10,150 | ||||||||
Utilities – 11.9% | ||||||||
Eugene Electric Utilities (FSA) | ||||||||
5.000%, 08/01/2011 | 1,305 | 1,307 | ||||||
4.800%, 08/01/2013 | 690 | 691 | ||||||
Lane County Metropolitan Wastewater Management (FGIC) | ||||||||
5.000%, 11/01/2021 | 820 | 830 | ||||||
Port of St. Helens Pollution Control, Portland General Electric | ||||||||
4.800%, 04/01/2010 | 2,450 | 2,468 | ||||||
4.800%, 06/01/2010 | 400 | 403 | ||||||
Portland Sewer Systems, First Lien, Series A | ||||||||
4.750%, 06/15/2024 | 1,000 | 1,017 | ||||||
Portland Sewer Systems, Second Lien, Series B (MBIA) | ||||||||
5.000%, 06/15/2023 | 2,000 | 2,061 | ||||||
Portland Water Systems, Second Lien, Series A (MBIA) | ||||||||
4.375%, 10/01/2024 | 1,000 | 985 | ||||||
Puerto Rico Commonwealth, Aqueduct & Sewer Authority, Series A (AGTY) | ||||||||
5.000%, 07/01/2025 | 1,500 | 1,527 | ||||||
Puerto Rico Electric Power Authority, Series WW | ||||||||
5.375%, 07/01/2023 | 800 | 817 | ||||||
Washington County Clean Water Services (FGIC) | ||||||||
5.125%, 10/01/2014 | 1,790 | 1,861 | ||||||
Washington County Clean Water Services (MBIA) | ||||||||
5.000%, 10/01/2014 | 1,000 | 1,076 | ||||||
15,043 | ||||||||
Total Revenue Bonds | 55,394 | |||||||
General Obligations – 52.0% | ||||||||
Chemeketa Community College District, Escrowed to Maturity (FGIC) | ||||||||
5.500%, 06/01/2013 § | 2,170 | 2,375 | ||||||
Clackamas Community College District (MBIA) | ||||||||
5.000%, 05/01/2019 | 1,145 | 1,208 | ||||||
Clackamas County School District #7J, Lake Oswego (FSA) | ||||||||
5.250%, 06/01/2025 | 200 | 219 | ||||||
Clackamas County School District #12, North Clackamas, Convertible CABs, Deferred Interest, Series B (FSA) (SBG) | ||||||||
0.000% through 06/14/2011, thereafter 5.000%, 06/15/2022 ◗ | 3,135 | 2,809 | ||||||
Clackamas County School District #86, Canby (FSA) (SBG) | ||||||||
5.000%, 06/15/2018 | 1,000 | 1,054 | ||||||
5.000%, 06/15/2021 | 1,305 | 1,354 | ||||||
Clackamas County School District #86, Canby, Pre-refunded 06/15/2010 @ 100 (SBG) | ||||||||
5.500%, 06/15/2015 ◊ | 1,835 | 1,933 | ||||||
Clackamas County School District #115, Series B (MBIA) (SBG) | ||||||||
4.500%, 06/15/2021 | 1,975 | 1,974 |
The accompanying notes are an integral part of the financial statements.
80 First American Funds 2008 Annual Report
Oregon Intermediate Tax Free Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
The Dalles | ||||||||
4.000%, 06/01/2017 | $ | 130 | $ | 130 | ||||
4.000%, 06/01/2018 | 140 | 140 | ||||||
4.000%, 06/01/2019 | 175 | 174 | ||||||
Deschutes & Jefferson Counties School District #2-J, Redmond, Series A (FGIC) (SBG) | ||||||||
5.000%, 06/15/2013 | 1,250 | 1,324 | ||||||
Deschutes & Jefferson Counties School District #2-J, Redmond, Series B, Zero Coupon Bond (FGIC) (SBG) | ||||||||
5.171%, 06/15/2021 ¤ | 1,000 | 516 | ||||||
Deschutes & Jefferson Counties School District #6, Pre-refunded 06/15/2011 @ 100 (FGIC) (SBG) | ||||||||
5.500%, 06/15/2014 ◊ | 1,725 | 1,845 | ||||||
Deschutes County (FSA) | ||||||||
5.000%, 12/01/2014 | 1,755 | 1,856 | ||||||
Hood River County School District (SBG) | ||||||||
5.250%, 06/15/2016 | 1,030 | 1,079 | ||||||
Jackson County School District #549, Medford (SBG) | ||||||||
5.000%, 06/15/2012 | 2,000 | 2,122 | ||||||
Josephine County Unit School District, Three Rivers (FGIC) (SBG) | ||||||||
5.000%, 12/15/2019 | 1,000 | 1,053 | ||||||
Lane County School District #40, Creswell (SBG) | ||||||||
5.000%, 06/15/2011 | 1,120 | 1,160 | ||||||
Lane County School District #52, Bethel, Pre-refunded 06/15/2010 @ 100 (SBG) | ||||||||
5.350%, 06/15/2011 ◊ | 1,285 | 1,350 | ||||||
Linn County Community School District, Pre-refunded 06/15/2013 @ 100 (FGIC) (SBG) | ||||||||
5.550%, 06/15/2021 ◊ | 1,000 | 1,098 | ||||||
Marion & Clackamas Counties School District #4J, Silver Falls (MBIA) (SBG) | ||||||||
4.500%, 06/15/2022 | 1,305 | 1,289 | ||||||
McMinnville School District #40 (FSA) | ||||||||
5.500%, 06/15/2013 | 1,000 | 1,094 | ||||||
Metro | ||||||||
5.250%, 09/01/2014 | 1,000 | 1,061 | ||||||
5.000%, 06/01/2020 | 1,635 | 1,739 | ||||||
Multnomah County School District #7, Reynolds, Pre-refunded 06/15/2011 @ 100 (SBG) | ||||||||
5.625%, 06/15/2015 ◊ | 1,000 | 1,072 | ||||||
Multnomah-Clackamas County School District #10, Gresham-Barlow, Pre-refunded 06/15/2011 @ 100 (FSA) (SBG) | ||||||||
5.500%, 06/15/2013 ◊ | 1,780 | 1,904 | ||||||
Multnomah-Clackamas County School District #10JT, Gresham-Barlow (FSA) (SBG) | ||||||||
5.250%, 06/15/2017 | 1,000 | 1,101 | ||||||
Multnomah-Clackamas County School District #28JT, Zero Coupon Bond (AMBAC) (SBG) | ||||||||
4.839%, 06/01/2016 ¤ | 1,000 | 685 | ||||||
North Lincoln Fire & Rescue District #1 (FSA) | ||||||||
4.250%, 02/01/2018 | 125 | 128 | ||||||
Pacific City Joint Water Sanitation Authority | ||||||||
4.650%, 07/01/2022 | 455 | 451 | ||||||
Portland Community College Services, Pre-refunded 06/01/2011 @ 100 | ||||||||
5.375%, 06/01/2015 ◊ | 1,375 | 1,465 | ||||||
Portland Emergency Facilities, Series A | ||||||||
5.000%, 06/01/2012 | 1,060 | 1,083 | ||||||
Puerto Rico Commonwealth, Government Development, Series B | ||||||||
5.000%, 12/01/2014 | 1,000 | 1,006 | ||||||
Puerto Rico Commonwealth, Series A | ||||||||
5.000%, 07/01/2019 | 1,000 | 977 | ||||||
5.000%, 07/01/2021 | 1,000 | 969 | ||||||
Puerto Rico Public Buildings Authority, Series J, Mandatory Put 07/01/2012 @ 100 (AMBAC) (COMGTY) | ||||||||
5.000%, 07/01/2036 | 1,000 | 1,003 | ||||||
Tri-County Metropolitan Transportation District, Light Rail Extension, Series A | ||||||||
5.250%, 07/01/2012 | 1,000 | 1,037 | ||||||
Tualatin Hills Park & Recreation District (FGIC) | ||||||||
5.750%, 03/01/2013 | 870 | 941 | ||||||
Umatilla County School District #16-R, Pendleton (FGIC) | ||||||||
5.250%, 07/01/2014 | 1,540 | 1,646 | ||||||
Wasco County School District #12 (FSA) (SBG) | ||||||||
5.500%, 06/15/2014 | 1,080 | 1,193 | ||||||
Washington & Clackamas Counties School District #23-J, Tigard (FGIC) | ||||||||
5.500%, 06/01/2013 | 1,000 | 1,074 | ||||||
Washington & Clackamas Counties School District #23-J, Tigard, Zero Coupon Bond | ||||||||
4.067%, 06/15/2014 ¤ | 1,030 | 810 | ||||||
Washington Clackamas & Yamhill Counties School District #88J, Deferred Interest, Series A, Zero Coupon Bond (MBIA) (SBG) | ||||||||
5.548%, 06/15/2024 ¤ | 1,850 | 773 | ||||||
Washington County | ||||||||
5.000%, 06/01/2022 | 2,000 | 2,104 | ||||||
Washington County School District #48-J, Beaverton, Series A (FSA) | ||||||||
5.000%, 06/01/2014 | 1,600 | 1,726 | ||||||
5.000%, 06/01/2016 | 1,500 | 1,604 | ||||||
Washington, Multnomah & Yamhill Counties School District #1-J | ||||||||
5.000%, 11/01/2014 | 1,000 | 1,082 | ||||||
Washington, Multnomah & Yamhill Counties School District #1-J (MBIA) | ||||||||
5.000%, 06/15/2019 | 2,490 | 2,644 | ||||||
Washington, Multnomah & Yamhill Counties School District #1-J, Pre-refunded 06/01/2009 @ 100 | ||||||||
5.250%, 06/01/2012 ◊ | 1,035 | 1,068 | ||||||
Yamhill County School District #29-J, Newberg (FGIC) (SBG) | ||||||||
5.250%, 06/15/2015 | 1,260 | 1,374 | ||||||
5.250%, 06/15/2016 | 1,835 | 2,003 | ||||||
Yamhill County School District #40, McMinnville (FSA) (SBG) | ||||||||
5.000%, 06/15/2023 | 1,005 | 1,053 | ||||||
Total General Obligations | 65,932 | |||||||
Certificates of Participation – 2.5% | ||||||||
Multnomah County | ||||||||
4.750%, 08/01/2011 | 1,685 | 1,704 | ||||||
Oregon State Department of Administrative Services, Series A (FGIC) | ||||||||
5.000%, 11/01/2018 | 1,060 | 1,102 |
First American Funds 2008 Annual Report 81
Schedule of Investments June 30, 2008, all dollars are rounded to thousands (000)
Oregon Intermediate Tax Free Fund (concluded) | ||||||||
DESCRIPTION | PAR/SHARES | VALUE | ||||||
Oregon State Department of Administrative Services, Series B (AMBAC) | ||||||||
5.000%, 11/01/2011 | $ | 315 | $ | 317 | ||||
Total Certificates of Participation | 3,123 | |||||||
Total Municipal Bonds | ||||||||
(Cost $123,966) | 124,449 | |||||||
Short-Term Investment – 1.3% | ||||||||
First American Tax Free Obligations Fund, Class Z Å | ||||||||
(Cost $1,723) | 1,723,187 | 1,723 | ||||||
Total Investments – 99.5% | ||||||||
(Cost $125,689) | 126,172 | |||||||
Other Assets and Liabilities, Net – 0.5% | 595 | |||||||
Total Net Assets – 100.0% | $ | 126,767 | ||||||
◊ | Pre-refunded issues are typically backed by U.S. government obligations, which secure the timely payment of principal and interest. These bonds mature at the call date and price indicated. | |
Y | Auction rate security. The coupon rate shown represents the rate as of June 30, 2008. | |
§ | Escrowed to Maturity issues are typically backed by U.S. government obligations, which secure the timely payment of principal and interest. If callable, these bonds may still be subject to call prior to maturity. | |
◗ | Convertible Capital Appreciation Bonds (Convertible CABs) – These bonds initially pay no interest but accrete in value from the date of issuance through the conversion date, at which time the bonds start to accrue and pay interest on a semiannual basis until final maturity. | |
¤ | Zero coupon bonds make no periodic interest payments, but are issued at deep discounts from par value. The rate shown is the effective yield as of June 30, 2008. | |
Å | Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor for this fund. See note 3 in Notes to Financial Statements. |
AGTY – | Assured Guaranty |
AMBAC – | American Municipal Bond Assurance Corporation |
AMT – | Alternative Minimum Tax. As of June 30, 2008, the aggregate market value of securities subject to the AMT was $230, which represents 0.2% of total net assets. |
COMGTY – | Commonwealth Guaranty |
FGIC – | Financial Guaranty Insurance Corporation |
FHA – | Federal Housing Administration |
FSA – | Financial Security Assurance |
MBIA – | Municipal Bond Insurance Association |
RAAI – | Radian Asset Assurance Inc. |
SBG – | School Bond Guaranty Program |
Schedule of Open Futures Contracts
Number of | Notional | |||||||||||||
Contracts | Contract | Settlement | Unrealized | |||||||||||
Description | Sold | Value | Month | Depreciation | ||||||||||
U.S. Treasury 10 Year Note Futures* | (40 | ) | $ | (4,557 | ) | September 2008 | $ | (3 | ) | |||||
* | On July 1, 2008, U.S. Treasury Bills were deposited as initial margin on futures contracts purchased on June 30, 2008. See note 2 in Notes to Financial Statements. |
Oregon Intermediate Tax Free Fund (concluded)
Short Tax Free Fund | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Municipal Bonds – 78.8% | ||||||||
Alaska – 1.3% | ||||||||
Revenue Bond – 1.3% | ||||||||
Alaska Railroad Corporation Capital Grant Receipts (FGIC) | ||||||||
5.000%, 08/01/2012 | $ | 1,825 | $ | 1,904 | ||||
Arizona – 3.6% | ||||||||
Revenue Bonds – 3.6% | ||||||||
Maricopa County Hospital, Sun Health Corporation | ||||||||
5.000%, 04/01/2011 | 3,815 | 3,890 | ||||||
Salt River Project, Arizona Agriculture Improvement & Power District Electric Systems, Series A | ||||||||
5.000%, 01/01/2020 | 500 | 532 | ||||||
University Medical Center (PUFG) | ||||||||
5.000%, 07/01/2008 | 350 | 350 | ||||||
5.000%, 07/01/2009 | 500 | 507 | ||||||
5,279 | ||||||||
California – 7.2% | ||||||||
Revenue Bond – 0.3% | ||||||||
California Statewide Community Development Authority, Daughters of Charity Health | ||||||||
5.000%, 07/01/2009 | 500 | 507 | ||||||
General Obligation – 6.9% | ||||||||
California State | ||||||||
6.000%, 08/01/2008 | 10,000 | 10,025 | ||||||
10,532 | ||||||||
Colorado – 4.0% | ||||||||
Revenue Bonds – 4.0% | ||||||||
Colorado Health Facilities Authority, Covenant Retirement Communities | ||||||||
4.500%, 12/01/2009 | 500 | 505 | ||||||
Colorado Health Facilities Authority, Evangelical Lutheran | ||||||||
5.000%, 06/01/2010 | 435 | 446 | ||||||
Colorado State Health Facilities Authority, Yampa Valley Medical Center Project | ||||||||
5.000%, 09/15/2013 | 1,000 | 1,001 | ||||||
Denver City & County Airport, Subseries A2, Mandatory Put 05/15/2010 @ 100 (AMT) | ||||||||
5.250%, 11/15/2032 | 2,000 | 2,024 | ||||||
Public Authority for Colorado Energy | ||||||||
6.125%, 11/15/2023 | 2,000 | 1,945 | ||||||
5,921 | ||||||||
Florida – 15.7% | ||||||||
Revenue Bonds – 15.7% | ||||||||
Florida Hurricane Catastrophe Fund Financial Corporation, Series A | ||||||||
5.000%, 07/01/2010 | 4,000 | 4,141 | ||||||
5.250%, 07/01/2012 | 4,000 | 4,218 | ||||||
Florida State Department of Environmental Protection Preservation, Florida Forever, Series B (MBIA) | ||||||||
5.000%, 07/01/2011 | 10,000 | 10,468 | ||||||
Miami-Dade County Health Facilities Authority, Mandatory Put 08/01/2011 @ 100 (MBIA) | ||||||||
4.125%, 08/01/2046 | 1,000 | 989 | ||||||
South Miami Health Facilities, Baptist Health South Florida Group | ||||||||
5.000%, 08/15/2012 | 2,000 | 2,086 |
The accompanying notes are an integral part of the financial statements.
82 First American Funds 2008 Annual Report
Short Tax Free Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Tallahassee Energy Systems (MBIA) | ||||||||
5.000%, 10/01/2012 | $ | 1,000 | $ | 1,059 | ||||
22,961 | ||||||||
Georgia – 0.7% | ||||||||
Revenue Bonds – 0.7% | ||||||||
Main Street Natural Gas, Series A | ||||||||
5.500%, 07/15/2017 | 1,000 | 971 | ||||||
Illinois – 1.0% | ||||||||
Revenue Bonds – 1.0% | ||||||||
Illinois Finance Authority, Clare at Water Tower Project, Series A | ||||||||
5.100%, 05/15/2011 | 1,000 | 972 | ||||||
Illinois Finance Authority, Landing at Plymouth Project, Series A | ||||||||
5.000%, 05/15/2011 | 500 | 487 | ||||||
1,459 | ||||||||
Indiana – 0.7% | ||||||||
Revenue Bonds – 0.7% | ||||||||
Anderson Economic Development, Anderson University Project | ||||||||
5.000%, 10/01/2012 | 990 | 1,006 | ||||||
Iowa – 0.7% | ||||||||
Revenue Bond – 0.7% | ||||||||
Iowa Finance Authority Health Facilities, Care Initiatives Project, Series A | ||||||||
5.000%, 07/01/2009 | 1,000 | 996 | ||||||
Kansas – 1.7% | ||||||||
Revenue Bonds – 1.7% | ||||||||
Olathe Health Care Facilities, Olathe Medical Center | ||||||||
4.000%, 09/01/2012 | 1,150 | 1,151 | ||||||
Olathe Health Care Facilities, Olathe Medical Center, Series A, Mandatory Put 03/01/2013 @ 100 | ||||||||
4.125%, 09/01/2037 | 1,350 | 1,334 | ||||||
2,485 | ||||||||
Louisiana – 1.4% | ||||||||
Revenue Bond – 1.4% | ||||||||
Tangipahoa Parish Hospital District #1, North Oaks Medical Center Project | ||||||||
5.000%, 02/01/2011 | 2,035 | 2,086 | ||||||
Michigan – 0.1% | ||||||||
Revenue Bond – 0.1% | ||||||||
Michigan State Hospital Finance Authority, Harper-Grace Hospital, Escrowed to Maturity | ||||||||
7.125%, 05/01/2009 § | 90 | 93 | ||||||
Minnesota – 1.6% | ||||||||
Revenue Bonds – 1.6% | ||||||||
Hennepin County Housing & Redevelopment Authority, Loring Park Apartments, Mandatory Put 02/15/2009 @ 100 (AMT) (FNMA) | ||||||||
3.050%, 06/15/2034 | 2,000 | 2,011 | ||||||
Northwestern Mutual Life Insurance Company Tax-Exempt Mortgage Trust #1 (LOC: Credit Suisse First Boston) | ||||||||
7.605%, 02/01/2009 Δ | 7 | 7 | ||||||
St. Paul Port Authority Lease Revenue, HealthEast Midway Campus | ||||||||
5.000%, 05/01/2010 | 325 | 325 | ||||||
2,343 | ||||||||
Missouri – 3.6% | ||||||||
Revenue Bonds – 2.6% | ||||||||
Illinois Missouri Bi-state Development Agency, Metropolitan District, Mandatory Put 10/01/2009 @ 100 (LOC: JP Morgan Chase Bank) | ||||||||
3.950%, 10/01/2035 | 2,500 | 2,518 | ||||||
Osage Beach Tax Increment, Prewitt’s Point Project | ||||||||
4.625%, 05/01/2011 | 1,290 | 1,283 | ||||||
3,801 | ||||||||
General Obligation – 1.0% | ||||||||
Blue Springs Neighborhood Improvements, Series A | ||||||||
4.125%, 03/01/2009 | 1,500 | 1,502 | ||||||
5,303 | ||||||||
Nebraska – 3.5% | ||||||||
Revenue Bonds – 3.5% | ||||||||
Central Plains Energy Project, Series A | ||||||||
5.250%, 12/01/2021 | 3,000 | 2,864 | ||||||
Douglas County Hospital Authority #002, Nebraska Medical Center (AGTY) | ||||||||
5.000%, 11/15/2008 | 1,000 | 1,008 | ||||||
Douglas County Hospital Authority #3, Methodist Health | ||||||||
5.250%, 11/01/2022 | 1,205 | 1,209 | ||||||
5,081 | ||||||||
New Hampshire – 3.1% | ||||||||
Revenue Bonds – 3.1% | ||||||||
New Hampshire Health & Education Facilities Authority, Concord Hospital | ||||||||
5.000%, 05/01/2010 | 1,915 | 1,948 | ||||||
5.000%, 05/01/2011 | 2,585 | 2,628 | ||||||
4,576 | ||||||||
New Jersey – 1.6% | ||||||||
Revenue Bonds – 1.6% | ||||||||
New Jersey Healthcare Facilities Financing Authority, Capital Health Systems, Series A | ||||||||
5.000%, 07/01/2008 | 1,585 | 1,585 | ||||||
New Jersey State Turnpike Authority, Escrowed to Maturity | ||||||||
6.750%, 01/01/2009 § | 775 | 794 | ||||||
2,379 | ||||||||
New York – 2.4% | ||||||||
General Obligation – 2.4% | ||||||||
New York, Series A | ||||||||
5.000%, 08/01/2011 | 3,435 | 3,600 | ||||||
North Carolina – 4.7% | ||||||||
Revenue Bond – 1.1% | ||||||||
North Carolina Medical Care Commission, Health Care Facilities, 1st Mortgage Presbyterian, Series B | ||||||||
5.000%, 10/01/2008 | 1,530 | 1,531 | ||||||
General Obligation – 3.6% | ||||||||
North Carolina Public Improvement, Series A | ||||||||
5.000%, 03/01/2020 | 5,000 | 5,318 | ||||||
6,849 | ||||||||
First American Funds 2008 Annual Report 83
Schedule of Investments June 30, 2008, all dollars are rounded to thousands (000)
Short Tax Free Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Ohio – 0.9% | ||||||||
Revenue Bond – 0.9% | ||||||||
American Municipal Power, Series A (AGTY) | ||||||||
5.000%, 02/01/2009 | $ | 1,250 | $ | 1,258 | ||||
Oklahoma – 0.7% | ||||||||
Revenue Bond – 0.7% | ||||||||
Ponca City Utility Authority, Escrowed to Maturity | ||||||||
6.000%, 07/01/2008 § | 1,110 | 1,110 | ||||||
Puerto Rico – 4.9% | ||||||||
General Obligations – 4.9% | ||||||||
Puerto Rico Commonwealth, Public Improvement, Series A | ||||||||
5.000%, 07/01/2021 | 3,000 | 2,907 | ||||||
Puerto Rico Commonwealth, Series C, Mandatory Put 07/01/2008 @ 100 | ||||||||
5.000%, 07/01/2018 | 4,250 | 4,250 | ||||||
7,157 | ||||||||
South Carolina – 1.7% | ||||||||
Revenue Bonds – 1.7% | ||||||||
Georgetown County Pollution Control, International Paper Company Project, Series A | ||||||||
5.125%, 02/01/2012 | 1,500 | 1,498 | ||||||
Richland County, Series A | ||||||||
4.600%, 09/01/2012 | 1,000 | 976 | ||||||
2,474 | ||||||||
Tennessee – 1.0% | ||||||||
Revenue Bond – 1.0% | ||||||||
Clarksville Natural Gas Acquisition Corporation | ||||||||
5.000%, 12/15/2008 | 1,500 | 1,506 | ||||||
Texas – 4.5% | ||||||||
Revenue Bonds – 4.5% | ||||||||
Houston Health Facilities Development, Buckingham Senior Living Community, Series A, Pre-refunded 02/15/2009 @ 100 | ||||||||
4.900%, 02/15/2010 ◊ | 1,020 | 1,040 | ||||||
Lower Colorado River Authority (AMBAC) | ||||||||
5.000%, 05/15/2012 | 2,685 | 2,812 | ||||||
Southeast Hospital Financing Agency, Memorial Hospital System Project, Escrowed to Maturity | ||||||||
8.500%, 12/01/2008 § | 190 | 195 | ||||||
Tyler Health Facilities Development, East Texas Medical Center, Series A | ||||||||
5.000%, 11/01/2009 | 1,000 | 1,012 | ||||||
5.000%, 11/01/2010 | 1,500 | 1,522 | ||||||
6,581 | ||||||||
Virginia – 5.1% | ||||||||
Revenue Bond – 1.4% | ||||||||
Amelia County Industrial Development Authority, Solid Waste Disposal, Waste Management Project, Mandatory Put 04/01/2010 @ 100 (AGTY) (AMT) | ||||||||
4.800%, 04/01/2027 | 2,000 | 1,985 | ||||||
General Obligation – 3.7% | ||||||||
Fairfax County Public Improvement, Series A (STAID) | ||||||||
5.000%, 04/01/2018 | 5,000 | 5,441 | ||||||
7,426 | ||||||||
Wisconsin – 1.4% | ||||||||
Revenue Bond – 1.4% | ||||||||
Wisconsin State Health & Educational Facilities Authority, Froedtert & Community Health, Series A | ||||||||
5.000%, 04/01/2010 | 1,940 | 1,995 | ||||||
Total Municipal Bonds | ||||||||
(Cost $115,284) | 115,331 | |||||||
Short-Term Investments – 24.0% | ||||||||
Money Market Fund – 0.1% | ||||||||
First American Tax Free Obligations Fund, Class Z Å | 72,705 | 73 | ||||||
U.S. Treasury Obligation – 0.2% | ||||||||
U.S. Treasury Bill | ||||||||
2.465%, 10/02/2008 o | $ | 295 | 293 | |||||
Variable Rate Demand Note v – 23.7% | ||||||||
Crawford Educational Facilities Corporation, Obligation Group Project, Series A (LOC: Allied Irish Bank) | ||||||||
1.616%, 05/01/2038 | 5,615 | 5,615 | ||||||
Highlands County Health Facilities, Adventist Health Systems, Series A (LOC: SunTrust Bank) | ||||||||
1.596%, 11/15/2032 | 7,000 | 7,000 | ||||||
Indiana Finance Authority, Obligation Group Project (LOC: Allied Irish Bank) | ||||||||
1.725%, 06/01/2038 | 3,000 | 3,000 | ||||||
Milwaukee Redevelopment Authority, Yankee Hill Apartments (LOC: Wells Fargo Bank) | ||||||||
1.496%, 09/01/2025 | 1,100 | 1,100 | ||||||
Minnesota Higher Education Facilities, Carleton College, Series 6D (SPA: Wells Fargo Bank) | ||||||||
1.396%, 04/01/2035 | 6,000 | 6,000 | ||||||
Pinellas County Educational Facilities Authority, Barry University Project (LOC: Bank of America) | ||||||||
1.546%, 10/01/2037 | 5,000 | 5,000 | ||||||
South Fulton Municipal Regional Water & Sewer Authority (LOC: Bank of America) | ||||||||
1.645%, 01/01/2033 | 7,000 | 7,000 | ||||||
34,715 | ||||||||
Total Short-Term Investments | ||||||||
(Cost $35,081) | 35,081 | |||||||
Total Investments – 102.8% | ||||||||
(Cost $150,365) | 150,412 | |||||||
Other Assets and Liabilities, Net – (2.8)% | (4,119 | ) | ||||||
Total Net Assets – 100.0% | $ | 146,293 | ||||||
Δ | Variable Rate Security – The rate shown is the rate in effect as of June 30, 2008. | |
§ | Escrowed to Maturity issues are typically backed by U.S. government obligations, which secure timely the payment of principal and interest. If callable, these bonds may still be subject to call at the call date and price indicated. | |
◊ | Pre-refunded issues are typically backed by U.S. government obligations, which secure the timely payment of principal and interest. These bonds mature at the call date and price indicated. | |
Å | Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor for this fund. See note 3 in Notes to Financial Statements. | |
o | Security has been deposited as initial margin on open futures contracts. Yield shown is the effective yield as of June 30, 2008. See note 2 in Notes to Financial Statements. | |
v | Variable rate demand notes (VRDNs) are tax-exempt obligations which contain a floating or variable interest rate adjustment formula and a right of demand to |
The accompanying notes are an integral part of the financial statements.
84 First American Funds 2008 Annual Report
Short Tax Free Fund (concluded)
receive payment of the principal plus accrued interest at specified dates. The coupon rate shown represents the rate as of June 30, 2008. |
AGTY – | Assured Guaranty |
AMBAC – | American Municipal Bond Assurance Corporation |
AMT – | Alternative Minimum Tax. As of June 30, 2008, the aggregate market value of securities subject to the AMT was $6,020, which represents 4.1% of total net assets. |
FGIC – | Financial Guaranty Insurance Corporation |
FNMA – | Federal National Mortgage Association |
LOC – | Letter of Credit |
MBIA – | Municipal Bond Insurance Association |
PUFG – | Permanent University Fund Guarantee |
SPA – | Standby Purchase Agreement |
STAID – | State Aid Withholding |
��
Schedule of Open Futures Contracts
Number of | Notional | |||||||||||||
Contracts | Contract | Settlement | Unrealized | |||||||||||
Description | Sold | Value | Month | Depreciation | ||||||||||
U.S. Treasury 10 Year Note Futures | (100 | ) | $ | (11,392 | ) | September 2008 | $ | (70 | ) | |||||
Short Tax Free Fund (concluded)
Tax Free Fund | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Municipal Bonds – 99.2% | ||||||||
Alabama – 1.2% | ||||||||
Revenue Bonds – 1.2% | ||||||||
Alabama State University (AGTY) | ||||||||
5.000%, 05/01/2038 | $ | 1,000 | $ | 1,000 | ||||
Camden Industrial Development Board, Weyerhaeuser Company, Series A | ||||||||
6.125%, 12/01/2024 | 1,000 | 990 | ||||||
Camden Industrial Development Board, Weyerhaeuser Company, Series B (AMT) | ||||||||
6.375%, 12/01/2024 | 350 | 350 | ||||||
University of Alabama at Birmingham, Hospital Revenue, Series A | ||||||||
5.250%, 09/01/2025 « | 3,500 | 3,422 | ||||||
5,762 | ||||||||
Alaska – 1.1% | ||||||||
Revenue Bonds – 1.1% | ||||||||
Alaska Energy Authority, Bradley Lake, Third Series (FSA) | ||||||||
6.000%, 07/01/2010 | 1,000 | 1,059 | ||||||
6.000%, 07/01/2011 | 4,040 | 4,347 | ||||||
5,406 | ||||||||
Arizona – 8.0% | ||||||||
Revenue Bonds – 6.0% | ||||||||
Arizona Health Facilities Authority, The Terraces Project, Series A, Pre-refunded 11/15/2013 @ 101 | ||||||||
7.500%, 11/15/2023 ◊ | 3,000 | 3,499 | ||||||
Maricopa County Industrial Development Authority, Catholic Healthcare West, Series A | ||||||||
5.250%, 07/01/2032 | 3,500 | 3,425 | ||||||
Maricopa County Industrial Development Authority, Senior Living Healthcare Revenue, Immanuel Care, Series A (GNMA) | ||||||||
4.850%, 08/20/2026 | 1,760 | 1,704 | ||||||
Pima County Industrial Development Authority, Education Revenue, American Charter Schools Foundation, Series A | ||||||||
5.500%, 07/01/2026 | 3,555 | 3,277 | ||||||
Salt River Project, Agriculture Improvement & Power District Electric Systems, Series A | ||||||||
5.000%, 01/01/2027 | 2,500 | 2,588 | ||||||
Salt Verde Financial Corporation, Gas Revenue | ||||||||
5.000%, 12/01/2037 | 7,000 | 6,099 | ||||||
Scottsdale Excise Tax Revenue, Water and Sewer Development Project, Series A | ||||||||
5.000%, 07/01/2021 | 4,300 | 4,568 | ||||||
Scottsdale Industrial Development Authority, Scottsdale Healthcare, Series A | ||||||||
5.000%, 09/01/2022 | 1,000 | 980 | ||||||
5.250%, 09/01/2030 | 2,000 | 1,951 | ||||||
Tempe Industrial Development Authority, Friendship Village Project, Series A | ||||||||
5.375%, 12/01/2013 | 1,300 | 1,269 | ||||||
29,360 | ||||||||
General Obligations – 2.0% | ||||||||
Gila County Unified School District #10, Payson School Improvement Project of 2006, Series A (AMBAC) | ||||||||
1.000% through 07/01/2009, thereafter 5.250%, 07/01/2022 | 6,630 | 6,617 |
First American Funds 2008 Annual Report 85
Schedule of Investments June 30, 2008, all dollars are rounded to thousands (000)
Tax Free Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Phoenix, Series B | ||||||||
5.000%, 07/01/2016 | $ | 3,000 | $ | 3,259 | ||||
9,876 | ||||||||
39,236 | ||||||||
Arkansas – 0.2% | ||||||||
Revenue Bond – 0.2% | ||||||||
Washington County Arkansas Hospital, Regional Medical Center, Series B | ||||||||
5.000%, 02/01/2030 | 1,000 | 914 | ||||||
California – 5.2% | ||||||||
Revenue Bonds – 3.8% | ||||||||
California Pollution Control Financing Authority, Solid Waste Disposal Revenue, Waste Management Incorporated Project, Series B (AMT) (AGTY) | ||||||||
5.000%, 07/01/2027 | 2,500 | 2,167 | ||||||
California Pollution Control Financing Authority, Solid Waste Disposal Revenue, Waste Management Incorporated Project, Series C (AMT) | ||||||||
5.125%, 11/01/2023 | 5,000 | 4,495 | ||||||
California State, Department of Water, Central Valley Project, Series AE | ||||||||
5.000%, 12/01/2021 | 2,000 | 2,125 | ||||||
California Statewide Communities Development Authority, St. Joseph, Series B (FGIC) | ||||||||
5.450%, 07/01/2026 | 1,050 | 1,069 | ||||||
California Statewide Communities Development Authority, St. Joseph, Series C (FGIC) | ||||||||
5.450%, 07/01/2026 | 1,050 | 1,068 | ||||||
Chula Vista Industrial Development, San Diego Gas & Electric, Series A (AMT) | ||||||||
4.900%, 03/01/2023 | 2,500 | 2,305 | ||||||
Southern California Public Power Authority, Transmission Project, Series A | ||||||||
5.000%, 07/01/2020 | 4,000 | 4,176 | ||||||
Ventura County Area Housing Authority, Mira Vista Senior Apartments, Series A (AMBAC) (AMT) | ||||||||
5.000%, 12/01/2022 | 1,000 | 979 | ||||||
18,384 | ||||||||
General Obligations – 1.4% | ||||||||
California State | ||||||||
5.000%, 02/01/2021 | 1,500 | 1,530 | ||||||
4.750%, 04/01/2022 | 500 | 500 | ||||||
5.000%, 08/01/2022 | 5,000 | 5,105 | ||||||
7,135 | ||||||||
25,519 | ||||||||
Colorado – 3.7% | ||||||||
Revenue Bonds – 3.5% | ||||||||
Colorado Housing & Finance Authority, Waste Disposal Management Income Project (AMT) | ||||||||
5.700%, 07/01/2018 | 1,590 | 1,552 | ||||||
Colorado State Educational & Cultural Facilities Authority, Classical Academy Charter School Project, Pre-refunded 12/01/2011 @ 100 | ||||||||
7.250%, 12/01/2021 ◊ | 1,500 | 1,697 | ||||||
Colorado State Health Facilities Authority, Covenant Retirement Communities, Series B | ||||||||
6.125%, 12/01/2033 | 1,150 | 1,139 | ||||||
Colorado State Health Facilities Authority, Evangelical Lutheran Health Facilities | ||||||||
5.900%, 10/01/2027 | 2,500 | 2,539 | ||||||
5.000%, 06/01/2029 | 2,000 | 1,860 | ||||||
Colorado State Health Facilities Authority, Parkview Medical Center, Pre-refunded 09/01/2011 @ 100 | ||||||||
6.500%, 09/01/2020 ◊ | 1,000 | 1,100 | ||||||
Colorado State Health Facilities Authority, Vail Valley Medical Center | ||||||||
5.800%, 01/15/2027 | 1,500 | 1,515 | ||||||
La Junta Hospital, Arkansas Valley Medical Center Project | ||||||||
6.000%, 04/01/2019 | 1,000 | 1,012 | ||||||
Montrose Memorial Hospital | ||||||||
6.000%, 12/01/2028 | 1,000 | 1,005 | ||||||
6.000%, 12/01/2033 | 500 | 490 | ||||||
Northwest Parkway Public Highway Authority, Zero Coupon Bond, Pre-refunded 06/15/2011 @ 33.455 (AMBAC) | ||||||||
3.456%, 06/15/2029 ◊ ¤ | 10,000 | 3,023 | ||||||
16,932 | ||||||||
General Obligation – 0.2% | ||||||||
Antelope Water Systems General Improvement District | ||||||||
5.125%, 12/01/2035 | 1,000 | 939 | ||||||
17,871 | ||||||||
Florida – 3.0% | ||||||||
Revenue Bonds – 2.5% | ||||||||
Capital Trust Agency, Fort Lauderdale Project (AMT) | ||||||||
5.750%, 01/01/2032 | 1,000 | 883 | ||||||
Palm Beach County Health Facilities Authority Retirement Community, Acts Retirement Life, Series A | ||||||||
4.500%, 11/15/2036 | 8,000 | 5,997 | ||||||
Palm Beach County Health Facilities Authority, Waterford Project | ||||||||
5.875%, 11/15/2037 | 5,700 | 5,305 | ||||||
12,185 | ||||||||
Certificate of Participation – 0.5% | ||||||||
Palm Beach County School Board (FGIC) | ||||||||
5.000%, 08/01/2018 | 2,415 | 2,477 | ||||||
14,662 | ||||||||
Georgia – 1.7% | ||||||||
Revenue Bonds – 1.7% | ||||||||
Fulton County Development Authority, Maxon Atlantic Station, Series A, Mandatory Put 03/01/2015 @ 100 (AMT) | ||||||||
5.125%, 03/01/2026 | 2,300 | 2,232 | ||||||
Fulton County Residential Care Facilities, Canterbury Court Project, Series A | ||||||||
6.125%, 02/15/2026 | 1,500 | 1,409 | ||||||
6.125%, 02/15/2034 | 2,500 | 2,277 | ||||||
Gainesville & Hall County Hospital Authority, Northeast Georgia Health Systems Project, Pre-refunded 05/15/2011 @ 100 | ||||||||
5.500%, 05/15/2031 ◊ | 1,000 | 1,057 | ||||||
Georgia Municipal Electric Authority Power, Series BB (MBIA) | ||||||||
5.250%, 01/01/2025 | 1,000 | 1,082 | ||||||
8,057 | ||||||||
The accompanying notes are an integral part of the financial statements.
86 First American Funds 2008 Annual Report
Tax Free Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Idaho – 0.4% | ||||||||
Certificates of Participation – 0.4% | ||||||||
Madison County Hospital | ||||||||
5.250%, 09/01/2026 | $ | 1,000 | $ | 897 | ||||
5.250%, 09/01/2030 | 1,000 | 871 | ||||||
1,768 | ||||||||
Illinois – 9.4% | ||||||||
Revenue Bonds – 5.3% | ||||||||
Bolingbrook, Residential Mortgages, Escrowed to Maturity (FGIC) (VEREX) | ||||||||
7.500%, 08/01/2010 § | 755 | 799 | ||||||
Illinois Finance Authority, Clare At Water Tower Project, Series A | ||||||||
6.000%, 05/15/2025 | 2,350 | 2,185 | ||||||
Illinois Finance Authority, Landing at Plymouth Place Project, Series A | ||||||||
6.000%, 05/15/2037 | 2,300 | 2,034 | ||||||
Illinois Finance Authority, Luther Oaks Project, Series A | ||||||||
6.000%, 08/15/2039 | 2,000 | 1,785 | ||||||
Illinois Finance Authority, Roosevelt University | ||||||||
5.500%, 04/01/2037 | 2,800 | 2,694 | ||||||
Illinois Finance Authority, Silver Cross Hospital | ||||||||
5.500%, 08/15/2030 | 3,350 | 3,274 | ||||||
Illinois Health Facilities Authority, Covenant Retirement Communities | ||||||||
5.875%, 12/01/2031 | 4,500 | 4,512 | ||||||
Illinois Health Facilities Authority, Covenant Retirement Communities, Series A (RAAI) | ||||||||
5.500%, 12/01/2022 | 4,000 | 4,028 | ||||||
Illinois Health Facilities Authority, Lutheran Senior Ministries, Series A, Pre-refunded 08/15/2011 @ 101 | ||||||||
7.375%, 08/15/2031 ◊ | 3,000 | 3,388 | ||||||
Illinois State Toll Highway Authority, Series A | ||||||||
6.300%, 01/01/2012 | 1,000 | 1,094 | ||||||
Northern Illinois University, Auxiliary Facilities Systems (FGIC) | ||||||||
5.700%, 04/01/2016 | 120 | 120 | ||||||
25,913 | ||||||||
General Obligations – 4.1% | ||||||||
Chicago Illinois Board of Education, Series C | ||||||||
5.000%, 12/01/2020 | 2,000 | 2,085 | ||||||
Cook County Community School District #97, Oak Park, Series B (FGIC) | ||||||||
9.000%, 12/01/2011 | 2,235 | 2,623 | ||||||
Cook County, Series A (MBIA) | ||||||||
6.250%, 11/15/2012 | 9,090 | 10,104 | ||||||
Illinois State | ||||||||
5.000%, 04/01/2022 | 5,000 | 5,201 | ||||||
20,013 | ||||||||
45,926 | ||||||||
Indiana – 2.4% | ||||||||
Revenue Bonds – 2.4% | ||||||||
Indiana Health & Educational Facilities Financing Authority, Community Foundation | ||||||||
5.500%, 03/01/2037 | 2,830 | 2,497 | ||||||
Indiana State Municipal Power Agency, Power Supply, Series B (MBIA) | ||||||||
6.000%, 01/01/2012 | 1,000 | 1,071 | ||||||
Indiana Transportation Finance Authority, Series A (AMBAC) | ||||||||
5.750%, 06/01/2012 | 3,185 | 3,447 | ||||||
Indianapolis Airport Authority, Special Facilities, Federal Express Corporation Project (AGTY) (AMT) | ||||||||
5.100%, 01/15/2017 | 3,000 | 2,844 | ||||||
Portage Economic Development, Ameriplex Project | ||||||||
5.000%, 07/15/2023 | 1,000 | 921 | ||||||
5.000%, 01/15/2027 | 775 | 701 | ||||||
11,481 | ||||||||
Iowa – 0.4% | ||||||||
Revenue Bonds – 0.4% | ||||||||
Iowa Finance Authority, Health Facilities Revenue, Care Initiatives Project, Series A | ||||||||
5.000%, 07/01/2020 | 1,570 | 1,385 | ||||||
Muscatine Electric, Escrowed to Maturity | ||||||||
6.700%, 01/01/2013 § | 640 | 691 | ||||||
2,076 | ||||||||
Kansas – 0.4% | ||||||||
Revenue Bond – 0.4% | ||||||||
Olathe Senior Living Facility, Catholic Care Campus, Series A | ||||||||
6.000%, 11/15/2038 | 2,000 | 1,821 | ||||||
Louisiana – 1.0% | ||||||||
Revenue Bonds – 1.0% | ||||||||
Jefferson Parish, Drain Sales Tax (AMBAC) | ||||||||
5.000%, 11/01/2011 | 1,000 | 1,045 | ||||||
Jefferson Parish, Home Mortgage Authority, Escrowed to Maturity (FGIC) (FHA) (VA) | ||||||||
7.100%, 08/01/2011 § | 1,000 | 1,102 | ||||||
Rapides Financial Authority, Cleco Power LLC Project (AMBAC) (AMT) | ||||||||
4.700%, 11/01/2036 | 3,000 | 2,556 | ||||||
4,703 | ||||||||
Maryland – 3.4% | ||||||||
Revenue Bond – 1.1% | ||||||||
Maryland State Department of Transportation | ||||||||
5.000%, 02/15/2016 | 5,000 | 5,409 | ||||||
General Obligations – 2.3% | ||||||||
Maryland State, Series A | ||||||||
5.250%, 03/01/2016 | 5,000 | 5,523 | ||||||
Prince Georges County Public Improvement | ||||||||
5.000%, 07/15/2017 | 5,000 | 5,429 | ||||||
10,952 | ||||||||
16,361 | ||||||||
Massachusetts – 0.7% | ||||||||
Revenue Bonds – 0.7% | ||||||||
Massachusetts State Development Finance Agency Health Care Facilities, Adventcare, Series A | ||||||||
6.750%, 10/15/2037 | 2,850 | 2,677 | ||||||
Massachusetts State Health & Educational Facilities Authority, UMass Memorial Issue, Series D | ||||||||
5.000%, 07/01/2033 | 1,000 | 866 | ||||||
3,543 | ||||||||
Michigan – 1.6% | ||||||||
Revenue Bond – 1.6% | ||||||||
Kalamazoo Hospital Financial Authority, Bronson Hospital (FSA) | ||||||||
5.000%, 05/15/2026 | 7,665 | 7,647 | ||||||
First American Funds 2008 Annual Report 87
Schedule of Investments June 30, 2008, all dollars are rounded to thousands (000)
Tax Free Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Minnesota – 8.9% | ||||||||
Revenue Bonds – 8.9% | ||||||||
Chippewa County, Montevideo Hospital Project | ||||||||
5.500%, 03/01/2037 | $ | 4,000 | $ | 3,432 | ||||
Columbia Heights Multifamily & Health Care Facilities, Crest View Corporation Projects, Series A | ||||||||
5.700%, 07/01/2042 | 2,795 | 2,507 | ||||||
Cuyuna Range Hospital District | ||||||||
5.200%, 06/01/2025 | 1,000 | 937 | ||||||
5.000%, 06/01/2029 | 1,500 | 1,337 | ||||||
Duluth Economic Development Authority, Benedictine Health System, Pre-refunded 2/15/2014 @ 100 | ||||||||
5.250%, 02/15/2033 ◊ | 3,500 | 3,794 | ||||||
Minneapolis Healthcare System, Fairview Health Services, Series A, Pre-refunded 05/15/2012 @ 101 | ||||||||
5.625%, 05/15/2032 ◊ | 7,000 | 7,606 | ||||||
Minnesota Agriculture & Economic Development Board, Health Care System, Fairview, Series A | ||||||||
6.375%, 11/15/2029 | 95 | 98 | ||||||
Minnesota Agriculture & Economic Development Board, Health Care System, Fairview, Series A, Pre-refunded 11/15/2010 @ 101 | ||||||||
6.375%, 11/15/2029 ◊ | 2,905 | 3,168 | ||||||
Monticello, Big Lake Community Hospital, Series C | ||||||||
6.200%, 12/01/2022 | 2,995 | 2,991 | ||||||
Shakopee Health Care Facilities, St. Francis Regional Medical Center | ||||||||
5.250%, 09/01/2034 | 1,000 | 927 | ||||||
St. Paul Housing & Redevelopment Authority, Allina Health Systems, Series A (MBIA) | ||||||||
5.000%, 11/15/2019 | 4,500 | 4,617 | ||||||
St. Paul Housing & Redevelopment Authority, Health Care Facilities, HealthPartners Obligated Group Project | ||||||||
5.250%, 05/15/2026 | 1,500 | 1,430 | ||||||
5.250%, 05/15/2036 | 3,900 | 3,516 | ||||||
St. Paul Housing & Redevelopment Hospital Authority, HealthEast Project | ||||||||
5.250%, 11/15/2014 | 990 | 989 | ||||||
6.000%, 11/15/2025 | 2,000 | 2,006 | ||||||
St. Paul Sales Tax, Series B (XLCA) | ||||||||
5.650%, 11/01/2017 | 2,290 | 2,244 | ||||||
Stillwater Health Care, Health System Obligation Group | ||||||||
5.000%, 06/01/2035 | 2,000 | 1,874 | ||||||
43,473 | ||||||||
Missouri – 3.4% | ||||||||
Revenue Bonds – 3.4% | ||||||||
Bi-State Development Agency, Missouri Illinois Metropolitan District, St. Clair County Metrolink Project (FSA) | ||||||||
5.250%, 07/01/2027 | 3,185 | 3,387 | ||||||
Boone County Hospital | ||||||||
5.625%, 08/01/2038 | 5,500 | 5,544 | ||||||
St. Louis Industrial Development Authority, Sewer and Solid Waste Disposal Facilities (AMT) | ||||||||
4.875%, 03/01/2032 | 8,000 | 6,970 | ||||||
Sugar Creek, Lafarge North America, Series A (AMT) | ||||||||
5.650%, 06/01/2037 | 1,000 | 876 | ||||||
16,777 | ||||||||
Montana – 1.0% | ||||||||
Revenue Bonds – 1.0% | ||||||||
Forsyth Pollution Control, Northwestern Corporation (AMBAC) | ||||||||
4.650%, 08/01/2023 | 2,500 | 2,387 | ||||||
Montana Facilities Financial Authority, Senior Living St. John’s Lutheran, Series A | ||||||||
6.125%, 05/15/2036 | 2,500 | 2,327 | ||||||
4,714 | ||||||||
Nebraska – 5.9% | ||||||||
Revenue Bonds – 5.9% | ||||||||
Central Plains Energy Gas Project Revenue, Series A | ||||||||
5.250%, 12/01/2021 | 5,000 | 4,774 | ||||||
Douglas County Hospital Authority, Methodist Health | ||||||||
5.750%, 11/01/2048 | 6,000 | 5,855 | ||||||
Douglas County Zoo Facility, Omaha Henry Doorly Zoo Project | ||||||||
4.750%, 09/01/2024 | 1,750 | 1,721 | ||||||
Lancaster County Hospital Authority #1, BryanLGH Medical Center Project | ||||||||
5.000%, 06/01/2021 | 2,740 | 2,751 | ||||||
Nebraska Educational Finance Authority, Concordia University Project | ||||||||
5.250%, 12/15/2015 | 500 | 501 | ||||||
5.350%, 12/15/2018 | 540 | 541 | ||||||
Washington County Wastewater Facilities, Cargill Project (AMT) | ||||||||
5.900%, 11/01/2027 | 1,700 | 1,776 | ||||||
4.850%, 04/01/2035 | 12,500 | 10,846 | ||||||
28,765 | ||||||||
Nevada – 2.4% | ||||||||
Revenue Bonds – 2.4% | ||||||||
Carson City Hospital Revenue, Carson-Tahoe Hospital | ||||||||
5.750%, 09/01/2031 | 2,740 | 2,705 | ||||||
Carson City Hospital Revenue, Carson-Tahoe Hospital, Pre-refunded 9/01/2012 @ 101 | ||||||||
5.750%, 09/01/2031 ◊ | 2,260 | 2,459 | ||||||
Clark County Industrial Development, Southwest Gas Corporation Project, Series A (AMBAC) (AMT) | ||||||||
5.250%, 07/01/2034 | 4,000 | 3,564 | ||||||
Clark County Industrial Development, Southwest Gas Corporation Project, Series A (AMT) (FGIC) | ||||||||
4.750%, 09/01/2036 | 4,000 | 3,122 | ||||||
11,850 | ||||||||
New Hampshire – 0.4% | ||||||||
Revenue Bonds – 0.4% | ||||||||
New Hampshire Health & Educational Facilities Authority, Covenant Health | ||||||||
5.375%, 07/01/2024 | 1,250 | 1,216 | ||||||
New Hampshire Health & Educational Facilities Authority, Speare Memorial Hospital | ||||||||
5.875%, 07/01/2034 | 800 | 769 | ||||||
1,985 | ||||||||
The accompanying notes are an integral part of the financial statements.
88 First American Funds 2008 Annual Report
Tax Free Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
North Carolina – 2.0% | ||||||||
Revenue Bonds – 2.0% | ||||||||
North Carolina Finance Agency, Educational Facilities, Meredith College | ||||||||
6.000%, 06/01/2031 | $ | 1,500 | $ | 1,528 | ||||
North Carolina Medical Care Community Health Care Facilities, 1st Mortgage Presbyterian, Series B | ||||||||
5.200%, 10/01/2021 | 1,500 | 1,463 | ||||||
North Carolina Medical Care Community Health Care Facilities, Pennybyrn at Maryfield, Series A | ||||||||
6.000%, 10/01/2023 | 2,800 | 2,630 | ||||||
North Carolina Medical Care Community Retirement Facilities, Southminster Project, Series A | ||||||||
5.750%, 10/01/2037 | 4,250 | 4,023 | ||||||
9,644 | ||||||||
North Dakota – 0.7% | ||||||||
Revenue Bond – 0.5% | ||||||||
North Dakota State Board of Higher Education, Bismarck State College | ||||||||
5.350%, 05/01/2030 | 2,500 | 2,231 | ||||||
General Obligations – 0.2% | ||||||||
West Fargo, Series A (AGTY) | ||||||||
4.000%, 05/01/2017 | 550 | 542 | ||||||
4.000%, 05/01/2018 | 540 | 527 | ||||||
1,069 | ||||||||
3,300 | ||||||||
Ohio – 2.9% | ||||||||
Revenue Bonds – 2.9% | ||||||||
American Municipal Power Ohio, Prepayment, Series A (AGTY) | ||||||||
5.000%, 02/01/2010 | 5,000 | 5,031 | ||||||
Cincinnati Water System, Pre-refunded 06/01/2011 @ 100 | ||||||||
5.000%, 12/01/2020 ◊ | 125 | 132 | ||||||
Lake County Hospital Facilities, Lake Hospital System, Series C | ||||||||
5.625%, 08/15/2029 | 3,250 | 3,154 | ||||||
Miami County Hospital Facilities, Upper Valley Medical Center | ||||||||
5.250%, 05/15/2026 | 1,000 | 954 | ||||||
Ohio State Higher Educational Facility, Baldwin-Wallace College Project | ||||||||
5.125%, 12/01/2017 | 1,490 | 1,533 | ||||||
5.250%, 12/01/2019 | 1,540 | 1,583 | ||||||
Toledo-Lucas County Port Authority, Crocker Park Public Improvement Project | ||||||||
5.250%, 12/01/2023 | 2,000 | 1,932 | ||||||
14,319 | ||||||||
Oklahoma – 0.7% | ||||||||
Revenue Bonds – 0.7% | ||||||||
Norman Regional Hospital Authority | ||||||||
5.375%, 09/01/2029 | 1,000 | 981 | ||||||
5.375%, 09/01/2036 | 2,325 | 2,223 | ||||||
3,204 | ||||||||
Oregon – 0.9% | ||||||||
Revenue Bonds – 0.9% | ||||||||
Gilliam County Solid Waste Disposal, Waste Management Project (AMT) | ||||||||
5.250%, 07/01/2029 | 1,500 | 1,269 | ||||||
Portland Sewer System Revenue, Series B (MBIA) | ||||||||
5.000%, 06/15/2024 | 3,200 | 3,293 | ||||||
4,562 | ||||||||
Pennsylvania – 1.4% | ||||||||
Revenue Bonds – 1.4% | ||||||||
Delaware County Authority College Revenue, Neumann College | ||||||||
6.125%, 10/01/2034 | 1,000 | 1,024 | ||||||
Erie County Industrial Development Authority, International Paper Company Project, Series A (AMT) | ||||||||
5.000%, 11/01/2018 | 1,350 | 1,222 | ||||||
Montgomery County Industrial Development Authority, Whitemarsh Continuing Care | ||||||||
6.250%, 02/01/2035 | 2,090 | 1,899 | ||||||
State Public School Building Authority, Delaware County Community College Project (FSA) | ||||||||
5.000%, 10/01/2024 | 1,600 | 1,656 | ||||||
Westmoreland County Industrial Development Authority, Redstone Retirement Community, Series A | ||||||||
5.750%, 01/01/2026 | 1,200 | 1,082 | ||||||
6,883 | ||||||||
Puerto Rico – 5.5% | ||||||||
Revenue Bonds – 3.0% | ||||||||
Puerto Rico Electric Power Authority, Series VV (MBIA) | ||||||||
5.250%, 07/01/2029 | 11,785 | 12,228 | ||||||
Puerto Rico Public Buildings Authority, Government Facilities, Series M (COMGTY) | ||||||||
6.250%, 07/01/2031 | 2,300 | 2,511 | ||||||
14,739 | ||||||||
General Obligations – 2.5% | ||||||||
Puerto Rico Commonwealth, Series A | ||||||||
5.000%, 07/01/2027 | 10,000 | 9,748 | ||||||
5.000%, 07/01/2028 | 1,000 | 975 | ||||||
Puerto Rico Commonwealth, Series A (MBIA) | ||||||||
5.500%, 07/01/2019 | 1,000 | 1,029 | ||||||
Puerto Rico Public Improvements (MBIA) | ||||||||
5.750%, 07/01/2026 | 500 | 528 | ||||||
12,280 | ||||||||
27,019 | ||||||||
South Carolina – 1.1% | ||||||||
Revenue Bonds – 1.1% | ||||||||
Georgetown County Environmental Improvement, International Paper, Series A (AMT) | ||||||||
5.550%, 12/01/2029 | 700 | 607 | ||||||
Lexington County Health Services District, Lexington Medical Center, Pre-refunded 11/01/2013 @ 100 | ||||||||
5.500%, 11/01/2023 ◊ | 2,000 | 2,170 | ||||||
South Carolina Jobs Economic Development Authority, Palmetto Health Alliance, Series A | ||||||||
6.125%, 08/01/2023 | 1,250 | 1,278 | ||||||
South Carolina Jobs Economic Development Authority, Palmetto Health Alliance, Series C, Pre-refunded 08/01/2013 @ 100 | ||||||||
6.375%, 08/01/2034 ◊ | 135 | 152 | ||||||
6.375%, 08/01/2034 ◊ | 1,115 | 1,260 | ||||||
5,467 | ||||||||
First American Funds 2008 Annual Report 89
Schedule of Investments June 30, 2008, all dollars are rounded to thousands (000)
Tax Free Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
South Dakota – 2.3% | ||||||||
Revenue Bonds – 2.0% | ||||||||
Sioux Falls, Dow Rummel Village Project, Series A, Pre-refunded 11/15/2012 @ 100 | ||||||||
6.625%, 11/15/2023 ◊ | $ | 2,270 | $ | 2,564 | ||||
South Dakota Economic Development Finance Authority, DTS Project, Series A (AMT) | ||||||||
5.500%, 04/01/2019 | 1,055 | 1,061 | ||||||
South Dakota Economic Development Finance Authority, Pooled Loan Project – Davis Family, Series 4-A (AMT) | ||||||||
6.000%, 04/01/2029 | 1,400 | 1,358 | ||||||
South Dakota Economic Development Finance Authority, Pooled Loan Project – Spearfish Forest, Series A (AMT) | ||||||||
5.875%, 04/01/2028 | 2,000 | 1,986 | ||||||
South Dakota Health & Educational Facilities Authority, Avera Health, Series B | ||||||||
5.250%, 07/01/2038 | 2,000 | 1,904 | ||||||
South Dakota Health & Educational Facilities Authority, Westhills Village Retirement Community | ||||||||
5.000%, 09/01/2031 | 1,250 | 1,142 | ||||||
10,015 | ||||||||
Certificate of Participation – 0.3% | ||||||||
Deadwood (ACA) | ||||||||
5.000%, 11/01/2020 | 1,500 | 1,412 | ||||||
11,427 | ||||||||
Tennessee – 3.2% | ||||||||
Revenue Bonds – 3.2% | ||||||||
Johnson City Health & Educational Facilities Authority, Mountain States Health, Series A, Pre-refunded 7/01/2012 @ 103 | ||||||||
7.500%, 07/01/2033 ◊ | 2,500 | 2,935 | ||||||
Memphis-Shelby County Sports Authority, Memphis Arena Project, Series D (MBIA) | ||||||||
5.000%, 11/01/2019 | 3,255 | 3,400 | ||||||
Shelby County Health, Educational & Housing Facilities Board, Methodist Healthcare, Pre-refunded 09/01/2012 @ 100 | ||||||||
6.500%, 09/01/2021 ◊ | 1,875 | 2,099 | ||||||
6.500%, 09/01/2021 ◊ | 1,125 | 1,259 | ||||||
Sullivan County Health, Educational & Housing Facilities Board, Wellmont Health Systems Project, Pre-refunded 09/01/2012 @ 101 | ||||||||
6.250%, 09/01/2032 ◊ | 5,500 | 6,125 | ||||||
15,818 | ||||||||
Texas – 8.8% | ||||||||
Revenue Bonds – 7.7% | ||||||||
Abilene Health Facilities Development, Sears Methodist Retirement Project | ||||||||
5.875%, 11/15/2018 | 500 | 487 | ||||||
Abilene Health Facilities Development, Sears Methodist Retirement Project, Series A | ||||||||
5.875%, 11/15/2018 | 2,500 | 2,436 | ||||||
7.000%, 11/15/2033 | 4,000 | 4,080 | ||||||
Bexar County Housing Finance Authority, American Opportunity Housing, Colinas LLC Project, Series A (MBIA) | ||||||||
5.800%, 01/01/2031 | 2,000 | 2,034 | ||||||
Brazos County Health Facilities, Franciscan Services Corporation, St. Joseph Health | ||||||||
5.000%, 01/01/2023 | 3,635 | 3,508 | ||||||
Crawford Education Facilities, University of St. Thomas Project | ||||||||
5.250%, 10/01/2022 | 1,300 | 1,271 | ||||||
5.375%, 10/01/2027 | 1,750 | 1,704 | ||||||
Dallas Area Rapid Transit Sales Tax Revenue, Senior Lien | ||||||||
5.000%, 12/01/2018 | 2,000 | 2,141 | ||||||
Lubbock Educational Facilities Authority Revenue, Lubbock Christian University | ||||||||
5.125%, 11/01/2027 | 1,000 | 944 | ||||||
5.250%, 11/01/2037 | 1,500 | 1,380 | ||||||
North Texas Tollway Revenue, First Tier, Series A | ||||||||
6.000%, 01/01/2024 | 2,500 | 2,639 | ||||||
North Texas Tollway Revenue, First Tier, Series E-3, Mandatory Put 01/01/2016 @ 100 | ||||||||
5.750%, 01/01/2038 | 4,500 | 4,706 | ||||||
Red River Authority Sewer & Solidwaste Disposal, Excel Corporation Project (AMT) | ||||||||
6.100%, 02/01/2022 | 3,775 | 3,787 | ||||||
San Marcos Waterworks & Wastewater Systems (FSA) | ||||||||
5.000%, 08/15/2026 | 1,000 | 1,027 | ||||||
Tarrant County Cultural Education Retirement Facilities, Northwest Senior Housing Edgemere Project, Series A | ||||||||
6.000%, 11/15/2026 | 1,600 | 1,551 | ||||||
Travis County Health Facilities, Querencia Barton Creek Project | ||||||||
5.500%, 11/15/2025 | 1,300 | 1,139 | ||||||
5.650%, 11/15/2035 | 1,100 | 947 | ||||||
Tyler Health Facilities Development, East Texas Medical Center, Series A | ||||||||
5.375%, 11/01/2037 | 2,000 | 1,742 | ||||||
37,523 | ||||||||
General Obligations – 1.1% | ||||||||
Fort Bend Independent School District, Escrowed to Maturity (PSFG) | ||||||||
5.000%, 02/15/2014 § | 500 | 538 | ||||||
Humble Independent School District, Series A (AGTY) | ||||||||
5.250%, 02/15/2022 | 2,635 | 2,778 | ||||||
San Marcos Certificates of Obligation (FSA) | ||||||||
5.000%, 08/15/2025 | 1,000 | 1,030 | ||||||
5.000%, 08/15/2027 | 1,000 | 1,023 | ||||||
5,369 | ||||||||
42,892 | ||||||||
Utah – 0.2% | ||||||||
Revenue Bonds – 0.2% | ||||||||
Intermountain Power Agency, Utah Power Supply, Series A (AMBAC) | ||||||||
6.500%, 07/01/2011 | 365 | 395 | ||||||
Intermountain Power Agency, Utah Power Supply, Series A, Escrowed to Maturity (AMBAC) | ||||||||
6.500%, 07/01/2011 § | 635 | 698 | ||||||
1,093 | ||||||||
Vermont – 0.2% | ||||||||
Revenue Bond – 0.2% | ||||||||
Vermont Economic Development Authority, Wake Robin Corporation Project, Series A | ||||||||
5.250%, 05/01/2026 | 1,000 | 873 | ||||||
The accompanying notes are an integral part of the financial statements.
90 First American Funds 2008 Annual Report
Tax Free Fund (continued) | ||||||||
DESCRIPTION | PAR/SHARES | VALUE | ||||||
Virginia – 0.2% | ||||||||
Revenue Bond – 0.2% | ||||||||
Arlington County Industrial Development Authority, Berkeley Apartments (AMT) (FNMA) | ||||||||
5.850%, 12/01/2020 | $ | 1,000 | $ | 1,043 | ||||
Washington – 0.2% | ||||||||
Revenue Bond – 0.2% | ||||||||
Washington State Public Power Supply System, Nuclear Project #3, Series B | ||||||||
7.125%, 07/01/2016 | 600 | 726 | ||||||
Wisconsin – 2.3% | ||||||||
Revenue Bonds – 2.3% | ||||||||
Wisconsin State Health & Educational Facilities Authority, Beaver Dam Community Hospitals, Series A | ||||||||
6.750%, 08/15/2034 | 1,000 | 1,012 | ||||||
Wisconsin State Health & Educational Facilities Authority, Children’s Hospital of Wisconsin | ||||||||
5.250%, 08/15/2024 | 2,000 | 2,030 | ||||||
Wisconsin State Health & Educational Facilities Authority, Eastcastle Place Income Project | ||||||||
6.000%, 12/01/2024 | 1,000 | 913 | ||||||
Wisconsin State Health & Educational Facilities Authority, Marshfield Clinic, Series B | ||||||||
6.000%, 02/15/2025 | 3,500 | 3,554 | ||||||
Wisconsin State Health & Educational Facilities Authority, New Castle Place Project, Series A | ||||||||
7.000%, 12/01/2031 | 2,000 | 2,008 | ||||||
Wisconsin State Health & Educational Facilities Authority, Southwest Health Center, Series A | ||||||||
6.250%, 04/01/2034 | 2,000 | 1,856 | ||||||
11,373 | ||||||||
Wyoming – 0.8% | ||||||||
Revenue Bonds – 0.8% | ||||||||
Teton County Hospital District, St. John’s Medical Center | ||||||||
6.750%, 12/01/2022 | 2,100 | 2,127 | ||||||
6.750%, 12/01/2027 | 1,500 | 1,504 | ||||||
3,631 | ||||||||
Total Municipal Bonds | ||||||||
(Cost $494,328) | 483,591 | |||||||
Short Term Investment – 0.5% | ||||||||
First American Tax Free Obligations Fund, Class Z Å | ||||||||
(Cost $2,224) | 2,223,940 | 2,224 | ||||||
Total Investments | ||||||||
(Cost $496,552) | 485,815 | |||||||
Other Assets and Liabilities, Net – 0.3% | 1,620 | |||||||
Total Net Assets – 100.0% | $ | 487,435 | ||||||
Tax Free Fund (concluded)
« | Security purchased on a when-issued basis. On June 30, 2008, the total cost of investment purchased on a when-issued basis was $3,403 or 0.7% of total net assets. See note 2 in Notes to Financial Statements. | |
◊ | Pre-refunded issues are typically backed by U.S. government obligations, which secure the timely payment of principal and interest. These bonds mature at the call date and price indicated. | |
¤ | Zero coupon bonds make no periodic interest payments, but are issued at deep discounts from par value. The rate shown is the effective yield as of June 30, 2008. | |
§ | Escrowed to Maturity issues are typically backed by U.S. government obligations, which secure the timely payment of principal and interest. If callable, these bonds may still be subject to call prior to maturity. | |
Å | Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor for this fund. See note 3 in Notes to Financial Statements. |
ACA – | American Capital Assurance |
AGTY – | Assured Guaranty |
AMBAC – | American Municipal Bond Assurance Corporation |
AMT – | Alternative Minimum Tax. As of June 30, 2008, the aggregate value of securities subject to the AMT was $59,850 which represents 12.3% of total net assets |
COMGTY – | Commonwealth Guaranty |
FGIC – | Financial Guaranty Insurance Corporation |
FHA – | Federal Housing Administration |
FNMA – | Federal National Mortgage Association |
FSA – | Financial Security Assurance |
GNMA – | Government National Mortgage Association |
MBIA – | Municipal Bond Insurance Association |
PSFG – | Permanent School Fund Guarantee |
RAAI – | Radian Asset Assurance Inc. |
VA – | Veterans Administration |
VEREX – | Verex Assurance |
XLCA – | XL Capital Assurance |
First American Funds 2008 Annual Report 91
Statements ofAssets and Liabilities | June 30, 2008, all dollars and shares are rounded to thousands (000), except per share data |
California | Colorado | |||||||||||||||||||||||||
Arizona | Intermediate | California | Intermediate | Colorado | ||||||||||||||||||||||
Tax Free Fund | Tax Free Fund | Tax Free Fund | Tax Free Fund | Tax Free Fund | ||||||||||||||||||||||
Unaffiliated investments, at cost | $ | 25,582 | $ | 56,686 | $ | 44,878 | $ | 49,011 | $ | 23,232 | ||||||||||||||||
Affiliated money market fund, at cost | — | — | — | 916 | 1,844 | |||||||||||||||||||||
ASSETS: | ||||||||||||||||||||||||||
Unaffiliated investments, at value (note 2) | $ | 25,206 | $ | 56,745 | $ | 44,627 | $ | 49,530 | $ | 23,091 | ||||||||||||||||
Affiliated money market fund, at value (note 2) | — | — | — | 916 | 1,844 | |||||||||||||||||||||
Cash | — | — | — | — | — | |||||||||||||||||||||
Receivable for dividends and interest | 465 | 693 | 602 | 345 | 175 | |||||||||||||||||||||
Receivable for investments sold | 49 | — | — | — | — | |||||||||||||||||||||
Receivable for capital shares sold | — | 188 | 234 | 1 | 4 | |||||||||||||||||||||
Receivable from advisor | 13 | — | 9 | — | 14 | |||||||||||||||||||||
Prepaid expenses and other assets | 2 | 1 | 1 | 2 | 2 | |||||||||||||||||||||
Total assets | 25,735 | 57,627 | 45,473 | 50,794 | 25,130 | |||||||||||||||||||||
LIABILITIES: | ||||||||||||||||||||||||||
Bank overdraft | — | 3 | 1 | 1 | — | |||||||||||||||||||||
Dividends payable | 76 | 172 | 122 | 150 | 62 | |||||||||||||||||||||
Payable for investments purchased | — | — | 259 | 259 | 259 | |||||||||||||||||||||
Payable for investments purchased on a when-issued basis | — | — | — | — | — | |||||||||||||||||||||
Payable for capital shares redeemed | 10 | 10 | — | 201 | 200 | |||||||||||||||||||||
Payable for variation margin | 1 | — | — | — | — | |||||||||||||||||||||
Payable to affiliates (note 3) | 17 | 29 | 21 | 24 | 17 | |||||||||||||||||||||
Payable for distribution and shareholder servicing fees | 2 | — | 3 | 1 | 3 | |||||||||||||||||||||
Accrued expenses and other liabilities | 26 | 26 | 26 | 26 | 26 | |||||||||||||||||||||
Total liabilities | 132 | 240 | 432 | 662 | 567 | |||||||||||||||||||||
Net assets | $ | 25,603 | $ | 57,387 | $ | 45,041 | $ | 50,132 | $ | 24,563 | ||||||||||||||||
COMPOSITION OF NET ASSETS: | ||||||||||||||||||||||||||
Portfolio capital | $ | 26,052 | $ | 57,016 | $ | 45,292 | $ | 49,492 | $ | 24,548 | ||||||||||||||||
Undistributed (distributions in excess of) net investment income | 15 | 5 | 1 | 5 | 15 | |||||||||||||||||||||
Accumulated net realized gain (loss) on investments (note 2) | (87 | ) | 307 | (1 | ) | 116 | 141 | |||||||||||||||||||
Net unrealized appreciation (depreciation) of investments | (376 | ) | 59 | (251 | ) | 519 | (141 | ) | ||||||||||||||||||
Net unrealized depreciation on futures contracts | (1 | ) | — | — | — | — | ||||||||||||||||||||
Net assets | $ | 25,603 | $ | 57,387 | $ | 45,041 | $ | 50,132 | $ | 24,563 | ||||||||||||||||
Class A: | ||||||||||||||||||||||||||
Net assets | $ | 6,705 | $ | 4,463 | $ | 12,076 | $ | 6,199 | $ | 5,815 | ||||||||||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 643 | 447 | 1,128 | 609 | 566 | |||||||||||||||||||||
Net asset value and redemption price per share | $ | 10.43 | $ | 9.99 | $ | 10.71 | $ | 10.19 | $ | 10.28 | ||||||||||||||||
Maximum offering price per share1 | $ | 10.89 | $ | 10.22 | $ | 11.19 | $ | 10.42 | $ | 10.74 | ||||||||||||||||
Class C: | ||||||||||||||||||||||||||
Net assets | $ | 1,376 | — | $ | 2,480 | — | $ | 2,859 | ||||||||||||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 132 | — | 231 | — | 279 | |||||||||||||||||||||
Net asset value, offering price, and redemption price per share2 | $ | 10.41 | — | $ | 10.72 | — | $ | 10.26 | ||||||||||||||||||
Class Y: | ||||||||||||||||||||||||||
Net assets | $ | 17,522 | $ | 52,924 | $ | 30,485 | $ | 43,933 | $ | 15,889 | ||||||||||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 1,679 | 5,284 | 2,847 | 4,324 | 1,543 | |||||||||||||||||||||
Net asset value, offering price, and redemption price per share | $ | 10.43 | $ | 10.02 | $ | 10.71 | $ | 10.16 | $ | 10.29 | ||||||||||||||||
1 | The offering price is calculated by dividing the net asset value by 1 minus the maximum sales charge. For a description of front-end sales charges, see note 1 in Notes to Financial Statements. | |
2 | Class C has a contingent deferred sales charge. For a description of this sales charge, see notes 1 and 3 in Notes to Financial Statements. |
The accompanying notes are an integral part of the financial statements.
92 First American Funds 2008 Annual Report
Minnesota | Oregon | Tax | ||||||||||||||||||||||||||||||||||||||||||||
Intermediate | Intermediate | Minnesota | Missouri | Nebraska | Ohio | Intermediate | Short | Free | ||||||||||||||||||||||||||||||||||||||
Tax Free Fund | Tax Free Fund | Tax Free Fund | Tax Free Fund | Tax Free Fund | Tax Free Fund | Tax Free Fund | Tax Free Fund | Fund | ||||||||||||||||||||||||||||||||||||||
$ | 635,220 | $ | 194,602 | $ | 168,820 | $ | 162,171 | $ | 36,757 | $ | 51,036 | $ | 123,966 | $ | 150,292 | $ | 494,328 | |||||||||||||||||||||||||||||
15,388 | — | — | — | 1,377 | — | 1,723 | 73 | 2,224 | ||||||||||||||||||||||||||||||||||||||
$ | 644,548 | $ | 196,622 | $ | 166,308 | $ | 160,385 | $ | 36,518 | $ | 50,592 | $ | 124,449 | $ | 150,339 | $ | 483,591 | |||||||||||||||||||||||||||||
15,388 | — | — | — | 1,377 | — | 1,723 | 73 | 2,224 | ||||||||||||||||||||||||||||||||||||||
— | — | — | 16 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
7,714 | 2,796 | 2,267 | 2,281 | 448 | 451 | 1,068 | 1,917 | 6,510 | ||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | 866 | ||||||||||||||||||||||||||||||||||||||
274 | 400 | 88 | 1,075 | 66 | — | — | 40 | 207 | ||||||||||||||||||||||||||||||||||||||
— | — | — | — | 10 | 6 | — | — | — | ||||||||||||||||||||||||||||||||||||||
3 | 1 | 2 | 2 | 3 | 2 | 1 | — | 4 | ||||||||||||||||||||||||||||||||||||||
667,927 | 199,819 | 168,665 | 163,759 | 38,422 | 51,051 | 127,241 | 152,369 | 493,402 | ||||||||||||||||||||||||||||||||||||||
20 | — | — | — | — | — | — | 61 | — | ||||||||||||||||||||||||||||||||||||||
1,948 | 591 | 307 | 510 | 108 | 147 | 375 | 337 | 1,699 | ||||||||||||||||||||||||||||||||||||||
— | — | 490 | — | 259 | — | — | 5,397 | — | ||||||||||||||||||||||||||||||||||||||
6,742 | 1,340 | — | 1,339 | 986 | 1,455 | — | — | 3,403 | ||||||||||||||||||||||||||||||||||||||
441 | 10 | 594 | 505 | 2 | — | — | 175 | 561 | ||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | 2 | 3 | 9 | — | ||||||||||||||||||||||||||||||||||||||
375 | 111 | 87 | 87 | 19 | 21 | 69 | 70 | 275 | ||||||||||||||||||||||||||||||||||||||
1 | 1 | 18 | 5 | 2 | — | 1 | — | 3 | ||||||||||||||||||||||||||||||||||||||
26 | 26 | 26 | 26 | 26 | 26 | 26 | 27 | 26 | ||||||||||||||||||||||||||||||||||||||
9,553 | 2,079 | 1,522 | 2,472 | 1,402 | 1,651 | 474 | 6,076 | 5,967 | ||||||||||||||||||||||||||||||||||||||
$ | 658,374 | $ | 197,740 | $ | 167,143 | $ | 161,287 | $ | 37,020 | $ | 49,400 | $ | 126,767 | $ | 146,293 | $ | 487,435 | |||||||||||||||||||||||||||||
$ | 648,037 | $ | 195,402 | $ | 169,132 | $ | 162,659 | $ | 37,409 | $ | 49,861 | $ | 126,327 | $ | 148,148 | $ | 498,660 | |||||||||||||||||||||||||||||
505 | (7 | ) | 26 | 79 | 22 | 9 | 57 | (48 | ) | 228 | ||||||||||||||||||||||||||||||||||||
504 | 325 | 497 | 335 | (172 | ) | (24 | ) | (97 | ) | (1,784 | ) | (716 | ) | |||||||||||||||||||||||||||||||||
9,328 | 2,020 | (2,512 | ) | (1,786 | ) | (239 | ) | (444 | ) | 483 | 47 | (10,737 | ) | |||||||||||||||||||||||||||||||||
— | — | — | — | — | (2 | ) | (3 | ) | (70 | ) | — | |||||||||||||||||||||||||||||||||||
$ | 658,374 | $ | 197,740 | $ | 167,143 | $ | 161,287 | $ | 37,020 | $ | 49,400 | $ | 126,767 | $ | 146,293 | $ | 487,435 | |||||||||||||||||||||||||||||
$ | 27,554 | $ | 22,059 | $ | 102,089 | $ | 23,135 | $ | 5,689 | $ | 635 | $ | 5,967 | $ | 2,308 | $ | 35,557 | |||||||||||||||||||||||||||||
2,622 | 2,263 | 9,741 | 2,030 | 565 | 63 | 617 | 236 | 3,467 | ||||||||||||||||||||||||||||||||||||||
$ | 10.51 | $ | 9.75 | $ | 10.48 | $ | 11.40 | $ | 10.06 | $ | 10.02 | $ | 9.68 | $ | 9.79 | $ | 10.26 | |||||||||||||||||||||||||||||
$ | 10.75 | $ | 9.97 | $ | 10.95 | $ | 11.91 | $ | 10.51 | $ | 10.46 | $ | 9.90 | $ | 10.02 | $ | 10.72 | |||||||||||||||||||||||||||||
— | — | $ | 20,061 | $ | 406 | $ | 1,798 | $ | 255 | — | — | $ | 3,104 | |||||||||||||||||||||||||||||||||
— | — | 1,922 | 36 | 180 | 26 | — | — | 304 | ||||||||||||||||||||||||||||||||||||||
— | — | $ | 10.44 | $ | 11.36 | $ | 9.99 | $ | 9.89 | — | — | $ | 10.21 | |||||||||||||||||||||||||||||||||
$ | 630,820 | $ | 175,681 | $ | 44,993 | $ | 137,746 | $ | 29,533 | $ | 48,510 | $ | 120,800 | $ | 143,985 | $ | 448,774 | |||||||||||||||||||||||||||||
60,158 | 18,125 | 4,299 | 12,080 | 2,936 | 4,845 | 12,477 | 14,713 | 43,707 | ||||||||||||||||||||||||||||||||||||||
$ | 10.49 | $ | 9.69 | $ | 10.47 | $ | 11.40 | $ | 10.06 | $ | 10.01 | $ | 9.68 | $ | 9.79 | $ | 10.27 | |||||||||||||||||||||||||||||
First American Funds 2008 Annual Report 93
Statements ofOperations | For the year ended June 30, 2008, all dollars are rounded to thousands (000) |
California | Colorado | |||||||||||||||||||||||||
Arizona | Intermediate | California | Intermediate | Colorado | ||||||||||||||||||||||
Tax Free Fund | Tax Free Fund | Tax Free Fund | Tax Free Fund | Tax Free Fund | ||||||||||||||||||||||
INVESTMENT INCOME: | ||||||||||||||||||||||||||
Interest from unaffiliated investments | $ | 1,409 | $ | 2,567 | $ | 1,913 | $ | 2,200 | $ | 1,163 | ||||||||||||||||
Dividends from unaffiliated money market funds | 19 | 29 | 31 | — | — | |||||||||||||||||||||
Dividends from affiliated money market funds | — | — | — | 21 | 17 | |||||||||||||||||||||
Total investment income | 1,428 | 2,596 | 1,944 | 2,221 | 1,180 | |||||||||||||||||||||
EXPENSES (note 3): | ||||||||||||||||||||||||||
Investment advisory fees | 144 | 286 | 200 | 234 | 115 | |||||||||||||||||||||
Administration fees | 71 | 134 | 96 | 110 | 57 | |||||||||||||||||||||
Transfer agent fees | 83 | 60 | 83 | 60 | 83 | |||||||||||||||||||||
Custodian fees | 2 | 3 | 2 | 3 | 2 | |||||||||||||||||||||
Legal fees | 13 | 13 | 13 | 13 | 13 | |||||||||||||||||||||
Audit fees | 35 | 33 | 33 | 33 | 33 | |||||||||||||||||||||
Registration fees | 6 | 5 | 6 | 5 | 6 | |||||||||||||||||||||
Postage and printing fees | 2 | 4 | 3 | 3 | 2 | |||||||||||||||||||||
Directors’ fees | 27 | 27 | 27 | 26 | 27 | |||||||||||||||||||||
Other expenses | 16 | 16 | 16 | 16 | 16 | |||||||||||||||||||||
Distribution and shareholder servicing fees – Class A | 18 | 14 | 28 | 15 | 17 | |||||||||||||||||||||
Distribution and shareholder servicing fees – Class C | 9 | — | 10 | — | 18 | |||||||||||||||||||||
Total expenses | 426 | 595 | 517 | 518 | 389 | |||||||||||||||||||||
Less: Fee waivers (note 3) | (255 | ) | (194 | ) | (289 | ) | (182 | ) | (240 | ) | ||||||||||||||||
Less: Indirect payments from custodian (note 3) | — | — | — | — | — | |||||||||||||||||||||
Total net expenses | 171 | 401 | 228 | 336 | 149 | |||||||||||||||||||||
Investment income – net | 1,257 | 2,195 | 1,716 | 1,885 | 1,031 | |||||||||||||||||||||
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS AND FUTURES CONTRACTS – NET (note 5): | ||||||||||||||||||||||||||
Net realized gain (loss) on investments | (80 | ) | 328 | (1 | ) | 116 | 144 | |||||||||||||||||||
Net realized gain (loss) on futures contracts | 6 | — | — | — | — | |||||||||||||||||||||
Net change in unrealized appreciation (depreciation) of investments | (836 | ) | (702 | ) | (1,044 | ) | (552 | ) | (802 | ) | ||||||||||||||||
Net change in unrealized appreciation (depreciation) of futures contracts | (1 | ) | — | — | — | — | ||||||||||||||||||||
Net gain (loss) on investments | (911 | ) | (374 | ) | (1,045 | ) | (436 | ) | (658 | ) | ||||||||||||||||
Net increase (decrease) in net assets resulting from operations | $ | 346 | $ | 1,821 | $ | 671 | $ | 1,449 | $ | 373 | ||||||||||||||||
The accompanying notes are an integral part of the financial statements.
94 First American Funds 2008 Annual Report
Minnesota | Oregon | |||||||||||||||||||||||||||||||||||||||||||||
Intermediate | Intermediate | Minnesota | Missouri | Nebraska | Ohio | Intermediate | Short | |||||||||||||||||||||||||||||||||||||||
Tax Free Fund | Tax Free Fund | Tax Free Fund | Tax Free Fund | Tax Free Fund | Tax Free Fund | Tax Free Fund | Tax Free Fund | Tax Free Fund | ||||||||||||||||||||||||||||||||||||||
$ | 29,805 | $ | 8,974 | $ | 8,505 | $ | 7,734 | $ | 1,834 | $ | 2,041 | $ | 5,418 | $ | 5,658 | $ | 26,804 | |||||||||||||||||||||||||||||
— | 75 | 183 | — | — | 31 | — | — | — | ||||||||||||||||||||||||||||||||||||||
264 | — | — | 39 | 13 | — | 44 | 123 | 319 | ||||||||||||||||||||||||||||||||||||||
30,069 | 9,049 | 8,688 | 7,773 | 1,847 | 2,072 | 5,462 | 5,781 | 27,123 | ||||||||||||||||||||||||||||||||||||||
3,090 | 958 | 867 | 798 | 192 | 227 | 610 | 762 | 2,683 | ||||||||||||||||||||||||||||||||||||||
1,415 | 441 | 402 | 369 | 92 | 108 | 282 | 353 | 1,229 | ||||||||||||||||||||||||||||||||||||||
58 | 59 | 84 | 83 | 82 | 82 | 60 | 59 | 83 | ||||||||||||||||||||||||||||||||||||||
31 | 10 | 9 | 9 | 3 | 3 | 6 | 8 | 28 | ||||||||||||||||||||||||||||||||||||||
12 | 12 | 13 | 13 | 13 | 13 | 13 | 12 | 12 | ||||||||||||||||||||||||||||||||||||||
33 | 34 | 34 | 33 | 33 | 33 | 33 | 33 | 33 | ||||||||||||||||||||||||||||||||||||||
27 | 5 | 8 | 7 | 6 | 6 | 5 | 28 | 35 | ||||||||||||||||||||||||||||||||||||||
28 | 9 | 12 | 7 | 3 | 3 | 6 | 7 | 22 | ||||||||||||||||||||||||||||||||||||||
25 | 26 | 26 | 26 | 27 | 27 | 26 | 26 | 25 | ||||||||||||||||||||||||||||||||||||||
16 | 16 | 16 | 16 | 16 | 16 | 16 | 15 | 17 | ||||||||||||||||||||||||||||||||||||||
70 | 52 | 260 | 61 | 16 | 2 | 18 | 6 | 90 | ||||||||||||||||||||||||||||||||||||||
— | — | 110 | 3 | 12 | 1 | — | — | 19 | ||||||||||||||||||||||||||||||||||||||
4,805 | 1,622 | 1,841 | 1,425 | 495 | 521 | 1,075 | 1,309 | 4,276 | ||||||||||||||||||||||||||||||||||||||
(466 | ) | (267 | ) | (343 | ) | (245 | ) | (276 | ) | (291 | ) | (212 | ) | (394 | ) | (477 | ) | |||||||||||||||||||||||||||||
(1 | ) | — | — | — | — | — | — | — | (1 | ) | ||||||||||||||||||||||||||||||||||||
4,338 | 1,355 | 1,498 | 1,180 | 219 | 230 | 863 | 915 | 3,798 | ||||||||||||||||||||||||||||||||||||||
25,731 | 7,694 | 7,190 | 6,593 | 1,628 | 1,842 | 4,599 | 4,866 | 23,325 | ||||||||||||||||||||||||||||||||||||||
970 | 359 | 912 | 337 | (168 | ) | 84 | (96 | ) | 497 | 1,353 | ||||||||||||||||||||||||||||||||||||
— | — | (138 | ) | — | 10 | 6 | — | — | (668 | ) | ||||||||||||||||||||||||||||||||||||
(7,129 | ) | (1,613 | ) | (7,169 | ) | (4,461 | ) | (557 | ) | (856 | ) | (532 | ) | 1,053 | (24,039 | ) | ||||||||||||||||||||||||||||||
— | — | — | — | — | (2 | ) | (3 | ) | (70 | ) | — | |||||||||||||||||||||||||||||||||||
(6,159 | ) | (1,254 | ) | (6,395 | ) | (4,124 | ) | (715 | ) | (768 | ) | (631 | ) | 1,480 | (23,354 | ) | ||||||||||||||||||||||||||||||
$ | 19,572 | $ | 6,440 | $ | 795 | $ | 2,469 | $ | 913 | $ | 1,074 | $ | 3,968 | $ | 6,346 | $ | (29 | ) | ||||||||||||||||||||||||||||
First American Funds 2008 Annual Report 95
Statements ofChanges in Net Assets | all dollars are rounded to thousands (000) |
California | ||||||||||||||||||||||||||||
Arizona | Intermediate | California | ||||||||||||||||||||||||||
Tax Free Fund | Tax Free Fund | Tax Free Fund | ||||||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||||||
6/30/08 | 6/30/07 | 6/30/08 | 6/30/07 | 6/30/08 | 6/30/07 | |||||||||||||||||||||||
OPERATIONS: | ||||||||||||||||||||||||||||
Investment income – net | $ | 1,257 | $ | 1,174 | $ | 2,195 | $ | 2,260 | $ | 1,716 | $ | 1,560 | ||||||||||||||||
Net realized gain (loss) on investments | (80 | ) | 160 | 328 | 140 | (1 | ) | 195 | ||||||||||||||||||||
Net realized gain (loss) on futures contracts | 6 | (38 | ) | — | — | — | 7 | |||||||||||||||||||||
Net change in unrealized appreciation (depreciation) of investments | (836 | ) | (164 | ) | (702 | ) | (149 | ) | (1,044 | ) | (30 | ) | ||||||||||||||||
Net change in unrealized appreciation (depreciation) of futures contracts | (1 | ) | (10 | ) | — | — | — | — | ||||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 346 | 1,122 | 1,821 | 2,251 | 671 | 1,732 | ||||||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | ||||||||||||||||||||||||||||
Investment income – net: | ||||||||||||||||||||||||||||
Class A | (306 | ) | (350 | ) | (222 | ) | (195 | ) | (469 | ) | (440 | ) | ||||||||||||||||
Class C | (51 | ) | (53 | ) | — | — | (57 | ) | (72 | ) | ||||||||||||||||||
Class Y | (894 | ) | (769 | ) | (1,970 | ) | (2,079 | ) | (1,201 | ) | (1,053 | ) | ||||||||||||||||
Net realized gain on investments: | ||||||||||||||||||||||||||||
Class A | (21 | ) | (44 | ) | (8 | ) | (30 | ) | (38 | ) | (33 | ) | ||||||||||||||||
Class C | (3 | ) | (8 | ) | — | — | (4 | ) | (7 | ) | ||||||||||||||||||
Class Y | (62 | ) | (91 | ) | (59 | ) | (271 | ) | (93 | ) | (80 | ) | ||||||||||||||||
Total distributions | (1,337 | ) | (1,315 | ) | (2,259 | ) | (2,575 | ) | (1,862 | ) | (1,685 | ) | ||||||||||||||||
CAPITAL SHARE TRANSACTIONS (note 4): | ||||||||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||||||
Proceeds from sales | 359 | 478 | 1,275 | 3,262 | 2,890 | 2,034 | ||||||||||||||||||||||
Reinvestment of distributions | 94 | 118 | 99 | 110 | 343 | 276 | ||||||||||||||||||||||
Payments for redemptions | (1,849 | ) | (1,244 | ) | (3,105 | ) | (508 | ) | (2,258 | ) | (1,733 | ) | ||||||||||||||||
Increase (decrease) in net assets from Class A transactions | (1,396 | ) | (648 | ) | (1,731 | ) | 2,864 | 975 | 577 | |||||||||||||||||||
Class C: | ||||||||||||||||||||||||||||
Proceeds from sales | 300 | 261 | — | — | 1,518 | 465 | ||||||||||||||||||||||
Reinvestment of distributions | 36 | 43 | — | — | 46 | 55 | ||||||||||||||||||||||
Payments for redemptions (note 3) | (459 | ) | (111 | ) | — | — | (543 | ) | (2,639 | ) | ||||||||||||||||||
Increase (decrease) in net assets from Class C transactions | (123 | ) | 193 | — | — | 1,021 | (2,119 | ) | ||||||||||||||||||||
Class Y: | ||||||||||||||||||||||||||||
Proceeds from sales | 3,964 | 5,560 | 10,372 | 6,214 | 19,459 | 5,985 | ||||||||||||||||||||||
Reinvestment of distributions | 167 | 153 | 34 | 67 | 89 | 67 | ||||||||||||||||||||||
Payments for redemptions | (5,247 | ) | (1,849 | ) | (10,042 | ) | (4,796 | ) | (13,029 | ) | (2,982 | ) | ||||||||||||||||
Increase (decrease) in net assets from Class Y transactions | (1,116 | ) | 3,864 | 364 | 1,485 | 6,519 | 3,070 | |||||||||||||||||||||
Increase (decrease) in net assets from capital share transactions | (2,635 | ) | 3,409 | (1,367 | ) | 4,349 | 8,515 | 1,528 | ||||||||||||||||||||
Total increase (decrease) in net assets | (3,626 | ) | 3,216 | (1,805 | ) | 4,025 | 7,324 | 1,575 | ||||||||||||||||||||
Net assets at beginning of year | 29,229 | 26,013 | 59,192 | 55,167 | 37,717 | 36,142 | ||||||||||||||||||||||
Net assets at end of year | $ | 25,603 | $ | 29,229 | $ | 57,387 | $ | 59,192 | $ | 45,041 | $ | 37,717 | ||||||||||||||||
Undistributed (distributions in excess of) net investment income at end of year | $ | 15 | $ | 9 | $ | 5 | $ | 2 | $ | 1 | $ | 12 | ||||||||||||||||
The accompanying notes are an integral part of the financial statements.
96 First American Funds 2008 Annual Report
Colorado | Minnesota | |||||||||||||||||||||||||||||||||||||||||||||
Intermediate | Colorado | Intermediate | Intermediate | Minnesota | ||||||||||||||||||||||||||||||||||||||||||
Tax Free Fund | Tax Free Fund | Tax Free Fund | Tax Free Fund | Tax Free Fund | ||||||||||||||||||||||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||||||||||||||||||||
6/30/08 | 6/30/07 | 6/30/08 | 6/30/07 | 6/30/08 | 6/30/07 | 6/30/08 | 6/30/07 | 6/30/08 | 6/30/07 | |||||||||||||||||||||||||||||||||||||
$ | 1,885 | $ | 1,735 | $ | 1,031 | $ | 1,018 | $ | 25,731 | $ | 26,434 | $ | 7,694 | $ | 7,924 | $ | 7,190 | $ | 7,075 | |||||||||||||||||||||||||||
116 | 249 | 144 | 91 | 970 | 2,495 | 359 | 642 | 912 | 772 | |||||||||||||||||||||||||||||||||||||
— | — | — | (5 | ) | — | — | — | — | (138 | ) | (94 | ) | ||||||||||||||||||||||||||||||||||
(552 | ) | (208 | ) | (802 | ) | (199 | ) | (7,129 | ) | (1,529 | ) | (1,613 | ) | (415 | ) | (7,169 | ) | (1,158 | ) | |||||||||||||||||||||||||||
— | — | — | (15 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
1,449 | 1,776 | 373 | 890 | 19,572 | 27,400 | 6,440 | 8,151 | 795 | 6,595 | |||||||||||||||||||||||||||||||||||||
(238 | ) | (317 | ) | (287 | ) | (400 | ) | (1,135 | ) | (1,263 | ) | (835 | ) | (921 | ) | (4,350 | ) | (4,281 | ) | |||||||||||||||||||||||||||
— | — | (108 | ) | (122 | ) | — | — | — | — | (627 | ) | (455 | ) | |||||||||||||||||||||||||||||||||
(1,654 | ) | (1,440 | ) | (622 | ) | (534 | ) | (24,290 | ) | (24,980 | ) | (6,991 | ) | (6,943 | ) | (2,281 | ) | (2,302 | ) | |||||||||||||||||||||||||||
(24 | ) | (58 | ) | (22 | ) | (69 | ) | (98 | ) | (42 | ) | (58 | ) | (124 | ) | (553 | ) | (282 | ) | |||||||||||||||||||||||||||
— | — | (9 | ) | (23 | ) | — | — | — | — | (88 | ) | (32 | ) | |||||||||||||||||||||||||||||||||
(190 | ) | (270 | ) | (44 | ) | (83 | ) | (2,016 | ) | (798 | ) | (463 | ) | (892 | ) | (292 | ) | (140 | ) | |||||||||||||||||||||||||||
(2,106 | ) | (2,085 | ) | (1,092 | ) | (1,231 | ) | (27,539 | ) | (27,083 | ) | (8,347 | ) | (8,880 | ) | (8,191 | ) | (7,492 | ) | |||||||||||||||||||||||||||
1,216 | 412 | 611 | 966 | 3,233 | 3,003 | 10,123 | 834 | 21,625 | 21,975 | |||||||||||||||||||||||||||||||||||||
201 | 259 | 243 | 406 | 903 | 936 | 503 | 605 | 3,046 | 2,773 | |||||||||||||||||||||||||||||||||||||
(1,920 | ) | (3,463 | ) | (3,633 | ) | (986 | ) | (5,974 | ) | (6,804 | ) | (9,511 | ) | (6,789 | ) | (24,967 | ) | (18,687 | ) | |||||||||||||||||||||||||||
(503 | ) | (2,792 | ) | (2,779 | ) | 386 | (1,838 | ) | (2,865 | ) | 1,115 | (5,350 | ) | (296 | ) | 6,061 | ||||||||||||||||||||||||||||||
— | — | 433 | 161 | — | — | — | — | 8,918 | 5,343 | |||||||||||||||||||||||||||||||||||||
— | — | 102 | 127 | — | — | — | — | 505 | 326 | |||||||||||||||||||||||||||||||||||||
— | — | (474 | ) | (375 | ) | — | — | — | — | (2,833 | ) | (1,694 | ) | |||||||||||||||||||||||||||||||||
— | — | 61 | (87 | ) | — | — | — | — | 6,590 | 3,975 | ||||||||||||||||||||||||||||||||||||
16,794 | 7,759 | 7,641 | 6,774 | 220,502 | 100,480 | 38,462 | 24,359 | 19,010 | 16,517 | |||||||||||||||||||||||||||||||||||||
53 | 61 | 39 | 56 | 2,647 | 2,305 | 217 | 316 | 214 | 213 | |||||||||||||||||||||||||||||||||||||
(6,785 | ) | (5,727 | ) | (4,833 | ) | (3,330 | ) | (139,275 | ) | (144,759 | ) | (30,220 | ) | (30,534 | ) | (28,113 | ) | (8,996 | ) | |||||||||||||||||||||||||||
10,062 | 2,093 | 2,847 | 3,500 | 83,874 | (41,974 | ) | 8,459 | (5,859 | ) | (8,889 | ) | 7,734 | ||||||||||||||||||||||||||||||||||
9,559 | (699 | ) | 129 | 3,799 | 82,036 | (44,839 | ) | 9,574 | (11,209 | ) | (2,595 | ) | 17,770 | |||||||||||||||||||||||||||||||||
8,902 | (1,008 | ) | (590 | ) | 3,458 | 74,069 | (44,522 | ) | 7,667 | (11,938 | ) | (9,991 | ) | 16,873 | ||||||||||||||||||||||||||||||||
41,230 | 42,238 | 25,153 | 21,695 | 584,305 | 628,827 | 190,073 | 202,011 | 177,134 | 160,261 | |||||||||||||||||||||||||||||||||||||
$ | 50,132 | $ | 41,230 | $ | 24,563 | $ | 25,153 | $ | 658,374 | $ | 584,305 | $ | 197,740 | $ | 190,073 | $ | 167,143 | $ | 177,134 | |||||||||||||||||||||||||||
$ | 5 | $ | 12 | $ | 15 | $ | 1 | $ | 505 | $ | 199 | $ | (7 | ) | $ | 125 | $ | 26 | $ | 94 | ||||||||||||||||||||||||||
First American Funds 2008 Annual Report 97
Statements ofChanges in Net Assets continued
Missouri | Nebraska | Ohio | ||||||||||||||||||||||||||
Tax Free Fund | Tax Free Fund | Tax Free Fund | ||||||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||||||
6/30/08 | 6/30/07 | 6/30/08 | 6/30/07 | 6/30/08 | 6/30/07 | |||||||||||||||||||||||
OPERATIONS: | ||||||||||||||||||||||||||||
Investment income – net | $ | 6,593 | $ | 6,368 | $ | 1,628 | $ | 1,659 | $ | 1,842 | $ | 1,665 | ||||||||||||||||
Net realized gain (loss) on investments | 337 | 991 | (168 | ) | 223 | 84 | 63 | |||||||||||||||||||||
Net realized gain (loss) on futures contracts | — | 5 | 10 | (27 | ) | 6 | (1 | ) | ||||||||||||||||||||
Net change in unrealized appreciation (depreciation) of investments | (4,461 | ) | (235 | ) | (557 | ) | (109 | ) | (856 | ) | 132 | |||||||||||||||||
Net change in unrealized appreciation (depreciation) of futures contracts | — | — | — | (20 | ) | (2 | ) | — | ||||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 2,469 | 7,129 | 913 | 1,726 | 1,074 | 1,859 | ||||||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | ||||||||||||||||||||||||||||
Investment income – net: | ||||||||||||||||||||||||||||
Class A | (949 | ) | (994 | ) | (256 | ) | (282 | ) | (25 | ) | (31 | ) | ||||||||||||||||
Class C | (18 | ) | (12 | ) | (65 | ) | (52 | ) | (7 | ) | (6 | ) | ||||||||||||||||
Class Y | (5,628 | ) | (5,312 | ) | (1,294 | ) | (1,335 | ) | (1,807 | ) | (1,630 | ) | ||||||||||||||||
Net realized gain on investments: | ||||||||||||||||||||||||||||
Class A | (62 | ) | (199 | ) | (33 | ) | (33 | ) | (2 | ) | (2 | ) | ||||||||||||||||
Class C | (1 | ) | (2 | ) | (9 | ) | (7 | ) | (1 | ) | — | |||||||||||||||||
Class Y | (344 | ) | (972 | ) | (147 | ) | (142 | ) | (140 | ) | (84 | ) | ||||||||||||||||
Total distributions | (7,002 | ) | (7,491 | ) | (1,804 | ) | (1,851 | ) | (1,982 | ) | (1,753 | ) | ||||||||||||||||
CAPITAL SHARE TRANSACTIONS (note 4): | ||||||||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||||||
Proceeds from sales | 747 | 2,467 | 606 | 661 | 149 | 352 | ||||||||||||||||||||||
Reinvestment of distributions | 493 | 570 | 172 | 168 | 16 | 17 | ||||||||||||||||||||||
Payments for redemptions | (2,390 | ) | (4,997 | ) | (2,045 | ) | (623 | ) | (329 | ) | (404 | ) | ||||||||||||||||
Increase (decrease) in net assets from Class A transactions | (1,150 | ) | (1,960 | ) | (1,267 | ) | 206 | (164 | ) | (35 | ) | |||||||||||||||||
Class C: | ||||||||||||||||||||||||||||
Proceeds from sales | — | 299 | 623 | 415 | 70 | 1 | ||||||||||||||||||||||
Reinvestment of distributions | 19 | 14 | 43 | 37 | 2 | 2 | ||||||||||||||||||||||
Payments for redemptions (note 3) | (117 | ) | (3 | ) | (386 | ) | (374 | ) | — | (26 | ) | |||||||||||||||||
Increase (decrease) in net assets from Class C transactions | (98 | ) | 310 | 280 | 78 | 72 | (23 | ) | ||||||||||||||||||||
Class Y: | ||||||||||||||||||||||||||||
Proceeds from sales | 40,288 | 21,454 | 4,011 | 6,347 | 12,297 | 7,141 | ||||||||||||||||||||||
Reinvestment of distributions | 175 | 275 | 107 | 112 | 294 | 285 | ||||||||||||||||||||||
Payments for redemptions | (29,502 | ) | (29,190 | ) | (6,372 | ) | (5,210 | ) | (5,409 | ) | (5,912 | ) | ||||||||||||||||
Increase (decrease) in net assets from Class Y transactions | 10,961 | (7,461 | ) | (2,254 | ) | 1,249 | 7,182 | 1,514 | ||||||||||||||||||||
Increase (decrease) in net assets from capital share transactions | 9,713 | (9,111 | ) | (3,241 | ) | 1,533 | 7,090 | 1,456 | ||||||||||||||||||||
Total increase (decrease) in net assets | 5,180 | (9,473 | ) | (4,132 | ) | 1,408 | 6,182 | 1,562 | ||||||||||||||||||||
Net assets at beginning of year | 156,107 | 165,580 | 41,152 | 39,744 | 43,218 | 41,656 | ||||||||||||||||||||||
Net assets at end of year | $ | 161,287 | $ | 156,107 | $ | 37,020 | $ | 41,152 | $ | 49,400 | $ | 43,218 | ||||||||||||||||
Undistributed (distributions in excess of) net investment income at end of year | $ | 79 | $ | 81 | $ | 22 | �� | $ | 9 | $ | 9 | $ | 14 | |||||||||||||||
The accompanying notes are an integral part of the financial statements.
98 First American Funds 2008 Annual Report
Oregon | ||||||||||||||||||||||||||||
Intermediate | Short | |||||||||||||||||||||||||||
Tax Free Fund | Tax Free Fund | Tax Free Fund | ||||||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||||||
6/30/08 | 6/30/07 | 6/30/08 | 6/30/07 | 6/30/08 | 6/30/07 | |||||||||||||||||||||||
$ | 4,599 | $ | 4,694 | $ | 4,866 | $ | 6,259 | $ | 23,325 | $ | 23,134 | |||||||||||||||||
(96 | ) | 337 | 497 | (1,045 | ) | 1,353 | 3,839 | |||||||||||||||||||||
— | 3 | — | — | (668 | ) | (124 | ) | |||||||||||||||||||||
(532 | ) | (569 | ) | 1,053 | 1,824 | (24,039 | ) | (5,298 | ) | |||||||||||||||||||
(3 | ) | — | (70 | ) | — | — | — | |||||||||||||||||||||
3,968 | 4,465 | 6,346 | 7,038 | (29 | ) | 21,551 | ||||||||||||||||||||||
(256 | ) | (323 | ) | (75 | ) | (93 | ) | (1,517 | ) | (1,544 | ) | |||||||||||||||||
— | — | — | — | (106 | ) | (83 | ) | |||||||||||||||||||||
(4,379 | ) | (4,345 | ) | (4,968 | ) | (6,156 | ) | (21,409 | ) | (21,653 | ) | |||||||||||||||||
(5 | ) | (36 | ) | — | — | (200 | ) | (307 | ) | |||||||||||||||||||
— | — | — | — | (15 | ) | (18 | ) | |||||||||||||||||||||
(77 | ) | (478 | ) | — | — | (2,753 | ) | (3,975 | ) | |||||||||||||||||||
(4,717 | ) | (5,182 | ) | (5,043 | ) | (6,249 | ) | (26,000 | ) | (27,580 | ) | |||||||||||||||||
748 | 1,039 | 245 | 1,064 | 4,582 | 7,411 | |||||||||||||||||||||||
134 | 197 | 71 | 85 | 1,212 | 1,294 | |||||||||||||||||||||||
(2,793 | ) | (2,765 | ) | (438 | ) | (2,069 | ) | (6,234 | ) | (7,146 | ) | |||||||||||||||||
(1,911 | ) | (1,529 | ) | (122 | ) | (920 | ) | (440 | ) | 1,559 | ||||||||||||||||||
— | — | — | — | 1,184 | 519 | |||||||||||||||||||||||
— | — | — | — | 59 | 68 | |||||||||||||||||||||||
— | — | — | — | (478 | ) | (276 | ) | |||||||||||||||||||||
— | — | — | — | 765 | 311 | |||||||||||||||||||||||
26,153 | 12,708 | 50,001 | 21,235 | 113,242 | 155,677 | |||||||||||||||||||||||
122 | 350 | 265 | 402 | 1,585 | 1,830 | |||||||||||||||||||||||
(14,100 | ) | (14,360 | ) | (69,032 | ) | (96,849 | ) | (181,303 | ) | (68,372 | ) | |||||||||||||||||
12,175 | (1,302 | ) | (18,766 | ) | (75,212 | ) | (66,476 | ) | 89,135 | |||||||||||||||||||
10,264 | (2,831 | ) | (18,888 | ) | (76,132 | ) | (66,151 | ) | 91,005 | |||||||||||||||||||
9,515 | (3,548 | ) | (17,585 | ) | (75,343 | ) | (92,180 | ) | 84,976 | |||||||||||||||||||
117,252 | 120,800 | 163,878 | 239,221 | 579,615 | 494,639 | |||||||||||||||||||||||
$ | 126,767 | $ | 117,252 | $ | 146,293 | $ | 163,878 | $ | 487,435 | $ | 579,615 | |||||||||||||||||
$ | 57 | $ | 93 | $ | (48 | ) | $ | 129 | $ | 228 | $ | (65 | ) | |||||||||||||||
First American Funds 2008 Annual Report 99
Financial Highlights For a share outstanding throughout the indicated periods.
Realized and | |||||||||||||||||||||||||||||||||||||||||
Net Asset | Unrealized | Distributions | Distributions | Net Asset | |||||||||||||||||||||||||||||||||||||
Value | Net | Gains | Total from | from Net | from Net | Value | |||||||||||||||||||||||||||||||||||
Beginning | Investment | (Losses) on | Investment | Investment | Realized | Total | End of | ||||||||||||||||||||||||||||||||||
of Period | Income | Investments | Operations | Income | Gains | Distributions | Period | ||||||||||||||||||||||||||||||||||
Arizona Tax Free Fund | |||||||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||||||
20081 | $ | 10.79 | $ | 0.45 | $ | (0.33 | ) | $ | 0.12 | $ | (0.45 | ) | $ | (0.03 | ) | $ | (0.48 | ) | $ | 10.43 | |||||||||||||||||||||
20071 | 10.85 | 0.46 | (0.01 | ) | 0.45 | (0.45 | ) | (0.06 | ) | (0.51 | ) | 10.79 | |||||||||||||||||||||||||||||
20062 | 11.19 | 0.33 | (0.25 | ) | 0.08 | (0.33 | ) | (0.09 | ) | (0.42 | ) | 10.85 | |||||||||||||||||||||||||||||
20053 | 11.42 | 0.46 | (0.07 | ) | 0.39 | (0.49 | ) | (0.13 | ) | (0.62 | ) | 11.19 | |||||||||||||||||||||||||||||
20043 | 11.33 | 0.49 | 0.12 | 0.61 | (0.47 | ) | (0.05 | ) | (0.52 | ) | 11.42 | ||||||||||||||||||||||||||||||
20033 | 11.41 | 0.46 | (0.06 | ) | 0.40 | (0.45 | ) | (0.03 | ) | (0.48 | ) | 11.33 | |||||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||||||
20081 | $ | 10.78 | $ | 0.41 | $ | (0.34 | ) | $ | 0.07 | $ | (0.41 | ) | $ | (0.03 | ) | $ | (0.44 | ) | $ | 10.41 | |||||||||||||||||||||
20071 | 10.84 | 0.41 | (0.01 | ) | 0.40 | (0.40 | ) | (0.06 | ) | (0.46 | ) | 10.78 | |||||||||||||||||||||||||||||
20062 | 11.18 | 0.30 | (0.25 | ) | 0.05 | (0.30 | ) | (0.09 | ) | (0.39 | ) | 10.84 | |||||||||||||||||||||||||||||
20053 | 11.41 | 0.42 | (0.08 | ) | 0.34 | (0.44 | ) | (0.13 | ) | (0.57 | ) | 11.18 | |||||||||||||||||||||||||||||
20043 | 11.31 | 0.43 | 0.14 | 0.57 | (0.42 | ) | (0.05 | ) | (0.47 | ) | 11.41 | ||||||||||||||||||||||||||||||
20033 | 11.40 | 0.42 | (0.08 | ) | 0.34 | (0.40 | ) | (0.03 | ) | (0.43 | ) | 11.31 | |||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||||||
20081 | $ | 10.80 | $ | 0.47 | $ | (0.33 | ) | $ | 0.14 | $ | (0.48 | ) | $ | (0.03 | ) | $ | (0.51 | ) | $ | 10.43 | |||||||||||||||||||||
20071 | 10.85 | 0.48 | — | 0.48 | (0.47 | ) | (0.06 | ) | (0.53 | ) | 10.80 | ||||||||||||||||||||||||||||||
20062 | 11.19 | 0.35 | (0.25 | ) | 0.10 | (0.35 | ) | (0.09 | ) | (0.44 | ) | 10.85 | |||||||||||||||||||||||||||||
20053 | 11.43 | 0.50 | (0.09 | ) | 0.41 | (0.52 | ) | (0.13 | ) | (0.65 | ) | 11.19 | |||||||||||||||||||||||||||||
20043 | 11.33 | 0.50 | 0.15 | 0.65 | (0.50 | ) | (0.05 | ) | (0.55 | ) | 11.43 | ||||||||||||||||||||||||||||||
20033 | 11.41 | 0.48 | (0.06 | ) | 0.42 | (0.47 | ) | (0.03 | ) | (0.50 | ) | 11.33 | |||||||||||||||||||||||||||||
California Intermediate Tax Free Fund | |||||||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||||||
20081 | $ | 10.07 | $ | 0.38 | $ | (0.06 | ) | $ | 0.32 | $ | (0.39 | ) | $ | (0.01 | ) | $ | (0.40 | ) | $ | 9.99 | |||||||||||||||||||||
20071 | 10.11 | 0.38 | 0.01 | 0.37 | (0.38 | ) | (0.05 | ) | (0.43 | ) | 10.07 | ||||||||||||||||||||||||||||||
20062 | 10.35 | 0.28 | (0.20 | ) | 0.08 | (0.29 | ) | (0.03 | ) | (0.32 | ) | 10.11 | |||||||||||||||||||||||||||||
20053 | 10.55 | 0.39 | (0.13 | ) | 0.26 | (0.39 | ) | (0.07 | ) | (0.46 | ) | 10.35 | |||||||||||||||||||||||||||||
20043 | 10.64 | 0.40 | (0.05 | ) | 0.35 | (0.41 | ) | (0.03 | ) | (0.44 | ) | 10.55 | |||||||||||||||||||||||||||||
20033 | 10.80 | 0.41 | (0.14 | ) | 0.27 | (0.41 | ) | (0.02 | ) | (0.43 | ) | 10.64 | |||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||||||
20081 | $ | 10.09 | $ | 0.39 | $ | (0.06 | ) | $ | 0.33 | $ | (0.39 | ) | $ | (0.01 | ) | $ | (0.40 | ) | $ | 10.02 | |||||||||||||||||||||
20071 | 10.13 | 0.39 | 0.01 | 0.40 | (0.39 | ) | (0.05 | ) | (0.44 | ) | 10.09 | ||||||||||||||||||||||||||||||
20062 | 10.37 | 0.30 | (0.21 | ) | 0.09 | (0.30 | ) | (0.03 | ) | (0.33 | ) | 10.13 | |||||||||||||||||||||||||||||
20053 | 10.57 | 0.40 | (0.13 | ) | 0.27 | (0.40 | ) | (0.07 | ) | (0.47 | ) | 10.37 | |||||||||||||||||||||||||||||
20043 | 10.66 | 0.41 | (0.05 | ) | 0.36 | (0.42 | ) | (0.03 | ) | (0.45 | ) | 10.57 | |||||||||||||||||||||||||||||
20033 | 10.81 | 0.43 | (0.14 | ) | 0.29 | (0.42 | ) | (0.02 | ) | (0.44 | ) | 10.66 | |||||||||||||||||||||||||||||
California Tax Free Fund | |||||||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||||||
20081 | $ | 10.98 | $ | 0.46 | $ | (0.23 | ) | $ | 0.23 | $ | (0.46 | ) | $ | (0.04 | ) | $ | (0.50 | ) | $ | 10.71 | |||||||||||||||||||||
20071 | 10.96 | 0.45 | 0.06 | 0.51 | (0.45 | ) | (0.04 | ) | (0.49 | ) | 10.98 | ||||||||||||||||||||||||||||||
20062 | 11.24 | 0.33 | (0.26 | ) | 0.07 | (0.33 | ) | (0.02 | ) | (0.35 | ) | 10.96 | |||||||||||||||||||||||||||||
20053 | 11.40 | 0.44 | (0.05 | ) | 0.39 | (0.44 | ) | (0.11 | ) | (0.55 | ) | 11.24 | |||||||||||||||||||||||||||||
20043 | 11.40 | 0.46 | 0.08 | 0.54 | (0.46 | ) | (0.08 | ) | (0.54 | ) | 11.40 | ||||||||||||||||||||||||||||||
20033 | 11.63 | 0.47 | (0.16 | ) | 0.31 | (0.47 | ) | (0.07 | ) | (0.54 | ) | 11.40 | |||||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||||||
20081 | $ | 10.99 | $ | 0.40 | $ | (0.22 | ) | $ | 0.18 | $ | (0.41 | ) | $ | (0.04 | ) | $ | (0.45 | ) | $ | 10.72 | |||||||||||||||||||||
20071 | 10.97 | 0.41 | 0.05 | 0.46 | (0.40 | ) | (0.04 | ) | (0.44 | ) | 10.99 | ||||||||||||||||||||||||||||||
20062 | 11.25 | 0.30 | (0.26 | ) | 0.04 | (0.30 | ) | (0.02 | ) | (0.32 | ) | 10.97 | |||||||||||||||||||||||||||||
20053 | 11.41 | 0.40 | (0.05 | ) | 0.35 | (0.40 | ) | (0.11 | ) | (0.51 | ) | 11.25 | |||||||||||||||||||||||||||||
20043 | 11.41 | 0.41 | 0.09 | 0.50 | (0.42 | ) | (0.08 | ) | (0.50 | ) | 11.41 | ||||||||||||||||||||||||||||||
20033 | 11.64 | 0.43 | (0.16 | ) | 0.27 | (0.43 | ) | (0.07 | ) | (0.50 | ) | 11.41 | |||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||||||
20081 | $ | 10.98 | $ | 0.48 | $ | (0.23 | ) | $ | 0.25 | $ | (0.48 | ) | $ | (0.04 | ) | $ | (0.52 | ) | $ | 10.71 | |||||||||||||||||||||
20071 | 10.97 | 0.47 | 0.05 | 0.52 | (0.47 | ) | (0.04 | ) | (0.51 | ) | 10.98 | ||||||||||||||||||||||||||||||
20062 | 11.25 | 0.35 | (0.26 | ) | 0.09 | (0.35 | ) | (0.02 | ) | (0.37 | ) | 10.97 | |||||||||||||||||||||||||||||
20053 | 11.40 | 0.47 | (0.04 | ) | 0.43 | (0.47 | ) | (0.11 | ) | (0.58 | ) | 11.25 | |||||||||||||||||||||||||||||
20043 | 11.40 | 0.48 | 0.09 | 0.57 | (0.49 | ) | (0.08 | ) | (0.57 | ) | 11.40 | ||||||||||||||||||||||||||||||
20033 | 11.63 | 0.49 | (0.15 | ) | 0.34 | (0.50 | ) | (0.07 | ) | (0.57 | ) | 11.40 | |||||||||||||||||||||||||||||
1 | For the period July 1 to June 30 in the fiscal year indicated. | |
2 | For the period October 1, 2005 to June 30, 2006. Effective in 2006, the fund’s fiscal year-end was changed from September 30 to June 30. All ratios for the period have been annualized, except total return and portfolio turnover. | |
3 | For the period October 1 to September 30 in the fiscal year indicated. | |
4 | Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived. |
The accompanying notes are an integral part of the financial statements.
100 First American Funds 2008 Annual Report
Ratio of Net | ||||||||||||||||||||||||||||||||||||
Ratio of | Investment | |||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses | Income | ||||||||||||||||||||||||||||||||||
Ratio of | Investment | to Average | to Average | |||||||||||||||||||||||||||||||||
Net Assets | Expenses | Income | Net Assets | Net Assets | Portfolio | |||||||||||||||||||||||||||||||
Total | End of | to Average | to Average | (Excluding | (Excluding | Turnover | ||||||||||||||||||||||||||||||
Return4 | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | ||||||||||||||||||||||||||||||
1.10 | % | $ | 6,705 | 0.75 | % | 4.20 | % | 1.63 | % | 3.32 | % | 30 | % | |||||||||||||||||||||||
4.12 | 8,359 | 0.75 | 4.11 | 1.64 | 3.22 | 25 | ||||||||||||||||||||||||||||||
0.73 | 9,041 | 0.75 | 4.02 | 1.47 | 3.30 | 47 | ||||||||||||||||||||||||||||||
3.49 | 9,547 | 0.75 | 4.14 | 1.18 | 3.71 | 20 | ||||||||||||||||||||||||||||||
5.50 | 9,008 | 0.75 | 4.16 | 1.12 | 3.79 | 21 | ||||||||||||||||||||||||||||||
3.61 | 11,928 | 0.75 | 4.03 | 1.09 | 3.69 | 37 | ||||||||||||||||||||||||||||||
0.61 | % | $ | 1,376 | 1.15 | % | 3.79 | % | 2.03 | % | 2.91 | % | 30 | % | |||||||||||||||||||||||
3.71 | 1,541 | 1.15 | 3.70 | 2.12 | 2.73 | 25 | ||||||||||||||||||||||||||||||
0.42 | 1,358 | 1.15 | 3.62 | 2.22 | 2.55 | 47 | ||||||||||||||||||||||||||||||
3.08 | 1,628 | 1.15 | 3.74 | 1.93 | 2.96 | 20 | ||||||||||||||||||||||||||||||
5.17 | 1,588 | 1.15 | 3.76 | 1.87 | 3.04 | 21 | ||||||||||||||||||||||||||||||
3.10 | 1,857 | 1.15 | 3.63 | 1.84 | 2.94 | 37 | ||||||||||||||||||||||||||||||
1.26 | % | $ | 17,522 | 0.50 | % | 4.45 | % | 1.38 | % | 3.57 | % | 30 | % | |||||||||||||||||||||||
4.48 | 19,329 | 0.50 | 4.36 | 1.39 | 3.47 | 25 | ||||||||||||||||||||||||||||||
0.92 | 15,614 | 0.50 | 4.27 | 1.22 | 3.55 | 47 | ||||||||||||||||||||||||||||||
3.65 | 14,035 | 0.50 | 4.39 | 0.93 | 3.96 | 20 | ||||||||||||||||||||||||||||||
5.85 | 9,520 | 0.50 | 4.42 | 0.87 | 4.05 | 21 | ||||||||||||||||||||||||||||||
3.86 | 9,244 | 0.50 | 4.28 | 0.84 | 3.94 | 37 | ||||||||||||||||||||||||||||||
3.20 | % | $ | 4,463 | 0.73 | % | 3.83 | % | 1.27 | % | 3.29 | % | 25 | % | |||||||||||||||||||||||
3.86 | 6,226 | 0.85 | 3.66 | 1.25 | 3.26 | 20 | ||||||||||||||||||||||||||||||
0.78 | 3,441 | 0.85 | 3.73 | 1.22 | 3.36 | 21 | ||||||||||||||||||||||||||||||
2.51 | 3,946 | 0.85 | 3.71 | 1.10 | 3.46 | 29 | ||||||||||||||||||||||||||||||
3.36 | 3,381 | 0.85 | 3.78 | 1.06 | 3.57 | 20 | ||||||||||||||||||||||||||||||
2.58 | 4,262 | 0.85 | 3.86 | 1.06 | 3.65 | 17 | ||||||||||||||||||||||||||||||
3.33 | % | $ | 52,924 | 0.70 | % | 3.84 | % | 1.02 | % | 3.52 | % | 25 | % | |||||||||||||||||||||||
4.01 | 52,966 | 0.70 | 3.82 | 1.00 | 3.52 | 20 | ||||||||||||||||||||||||||||||
0.88 | 51,726 | 0.70 | 3.89 | 0.97 | 3.62 | 21 | ||||||||||||||||||||||||||||||
2.66 | 49,292 | 0.70 | 3.86 | 0.85 | 3.71 | 29 | ||||||||||||||||||||||||||||||
3.51 | 46,953 | 0.70 | 3.93 | 0.81 | 3.82 | 20 | ||||||||||||||||||||||||||||||
2.83 | 44,600 | 0.70 | 4.02 | 0.81 | 3.91 | 17 | ||||||||||||||||||||||||||||||
2.11 | % | $ | 12,076 | 0.67 | % | 4.19 | % | 1.46 | % | 3.40 | % | 45 | % | |||||||||||||||||||||||
4.62 | 11,375 | 0.75 | 4.00 | 1.46 | 3.29 | 36 | ||||||||||||||||||||||||||||||
0.63 | 10,783 | 0.75 | 3.99 | 1.34 | 3.40 | 24 | ||||||||||||||||||||||||||||||
3.50 | 11,888 | 0.75 | 3.88 | 1.15 | 3.48 | 14 | ||||||||||||||||||||||||||||||
4.93 | 9,513 | 0.75 | 4.03 | 1.09 | 3.69 | 16 | ||||||||||||||||||||||||||||||
2.85 | 11,143 | 0.75 | 4.16 | 1.08 | 3.83 | 20 | ||||||||||||||||||||||||||||||
1.61 | % | $ | 2,480 | 1.15 | % | 3.68 | % | 1.85 | % | 2.98 | % | 45 | % | |||||||||||||||||||||||
4.17 | 1,507 | 1.15 | 3.60 | 1.98 | 2.77 | 36 | ||||||||||||||||||||||||||||||
0.33 | 3,592 | 1.15 | 3.60 | 2.09 | 2.66 | 24 | ||||||||||||||||||||||||||||||
3.11 | 3,068 | 1.15 | 3.47 | 1.90 | 2.72 | 14 | ||||||||||||||||||||||||||||||
4.52 | 1,294 | 1.15 | 3.65 | 1.84 | 2.96 | 16 | ||||||||||||||||||||||||||||||
2.45 | 1,101 | 1.15 | 3.75 | 1.83 | 3.07 | 20 | ||||||||||||||||||||||||||||||
2.28 | % | $ | 30,485 | 0.50 | % | 4.36 | % | 1.20 | % | 3.66 | % | 45 | % | |||||||||||||||||||||||
4.78 | 24,835 | 0.50 | 4.25 | 1.21 | 3.54 | 36 | ||||||||||||||||||||||||||||||
0.82 | 21,767 | 0.50 | 4.24 | 1.09 | 3.65 | 24 | ||||||||||||||||||||||||||||||
3.85 | 19,556 | 0.50 | 4.12 | 0.90 | 3.72 | 14 | ||||||||||||||||||||||||||||||
5.19 | 16,047 | 0.50 | 4.29 | 0.84 | 3.95 | 16 | ||||||||||||||||||||||||||||||
3.11 | 15,243 | 0.50 | 4.40 | 0.83 | 4.07 | 20 | ||||||||||||||||||||||||||||||
First American Funds 2008 Annual Report 101
Financial Highlights For a share outstanding throughout the indicated periods.
Realized and | |||||||||||||||||||||||||||||||||||||||||
Net Asset | Unrealized | Distributions | Net Asset | ||||||||||||||||||||||||||||||||||||||
Value | Net | Gains | Total from | from Net | Distributions | Value | |||||||||||||||||||||||||||||||||||
Beginning | Investment | (Losses) on | Investment | Investment | from Net | Total | End of | ||||||||||||||||||||||||||||||||||
of Period | Income | Investments | Operations | Income | Realized Gains | Distributions | Period | ||||||||||||||||||||||||||||||||||
Colorado Intermediate Tax Free Fund | |||||||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||||||
20081 | $ | 10.33 | $ | 0.41 | $ | (0.10 | ) | $ | 0.31 | $ | (0.40 | ) | $ | (0.05 | ) | $ | (0.45 | ) | $ | 10.19 | |||||||||||||||||||||
20071 | 10.40 | 0.43 | 0.01 | 0.44 | (0.43 | ) | (0.08 | ) | (0.51 | ) | 10.33 | ||||||||||||||||||||||||||||||
20062 | 10.74 | 0.32 | (0.28 | ) | 0.04 | (0.32 | ) | (0.06 | ) | (0.38 | ) | 10.40 | |||||||||||||||||||||||||||||
20053 | 10.98 | 0.42 | (0.19 | ) | 0.23 | (0.43 | ) | (0.04 | ) | (0.47 | ) | 10.74 | |||||||||||||||||||||||||||||
20043 | 11.08 | 0.45 | (0.11 | ) | 0.34 | (0.44 | ) | — | (0.44 | ) | 10.98 | ||||||||||||||||||||||||||||||
20033 | 11.12 | 0.41 | (0.02 | ) | 0.39 | (0.43 | ) | — | (0.43 | ) | 11.08 | ||||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||||||
20081 | $ | 10.30 | $ | 0.42 | $ | (0.09 | ) | $ | 0.33 | $ | (0.42 | ) | $ | (0.05 | ) | $ | (0.47 | ) | $ | 10.16 | |||||||||||||||||||||
20071 | 10.38 | 0.43 | 0.01 | 0.44 | (0.44 | ) | (0.08 | ) | (0.52 | ) | 10.30 | ||||||||||||||||||||||||||||||
20062 | 10.72 | 0.33 | (0.28 | ) | 0.05 | (0.33 | ) | (0.06 | ) | (0.39 | ) | 10.38 | |||||||||||||||||||||||||||||
20053 | 10.95 | 0.43 | (0.18 | ) | 0.25 | (0.44 | ) | (0.04 | ) | (0.48 | ) | 10.72 | |||||||||||||||||||||||||||||
20043 | 11.05 | 0.46 | (0.11 | ) | 0.35 | (0.45 | ) | — | (0.45 | ) | 10.95 | ||||||||||||||||||||||||||||||
20033 | 11.10 | 0.43 | (0.03 | ) | 0.40 | (0.45 | ) | — | (0.45 | ) | 11.05 | ||||||||||||||||||||||||||||||
Colorado Tax Free Fund | |||||||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||||||
20081 | $ | 10.61 | $ | 0.48 | $ | (0.33 | ) | $ | 0.15 | $ | (0.45 | ) | $ | (0.03 | ) | $ | (0.48 | ) | $ | 10.28 | |||||||||||||||||||||
20071 | 10.73 | 0.46 | (0.02 | ) | 0.44 | (0.48 | ) | (0.08 | ) | (0.56 | ) | 10.61 | |||||||||||||||||||||||||||||
20062 | 11.30 | 0.35 | (0.26 | ) | 0.09 | (0.34 | ) | (0.32 | ) | (0.66 | ) | 10.73 | |||||||||||||||||||||||||||||
20053 | 11.52 | 0.49 | (0.11 | ) | 0.38 | (0.51 | ) | (0.09 | ) | (0.60 | ) | 11.30 | |||||||||||||||||||||||||||||
20043 | 11.57 | 0.51 | 0.02 | 0.53 | (0.50 | ) | (0.08 | ) | (0.58 | ) | 11.52 | ||||||||||||||||||||||||||||||
20033 | 11.65 | 0.50 | (0.10 | ) | 0.40 | (0.48 | ) | — | (0.48 | ) | 11.57 | ||||||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||||||
20081 | $ | 10.59 | $ | 0.42 | $ | (0.31 | ) | $ | 0.11 | $ | (0.41 | ) | $ | (0.03 | ) | $ | (0.44 | ) | $ | 10.26 | |||||||||||||||||||||
20071 | 10.71 | 0.42 | (0.02 | ) | 0.40 | (0.44 | ) | (0.08 | ) | (0.52 | ) | 10.59 | |||||||||||||||||||||||||||||
20062 | 11.28 | 0.32 | (0.27 | ) | 0.05 | (0.30 | ) | (0.32 | ) | (0.62 | ) | 10.71 | |||||||||||||||||||||||||||||
20053 | 11.50 | 0.43 | (0.10 | ) | 0.33 | (0.46 | ) | (0.09 | ) | (0.55 | ) | 11.28 | |||||||||||||||||||||||||||||
20043 | 11.56 | 0.44 | 0.03 | 0.47 | (0.45 | ) | (0.08 | ) | (0.53 | ) | 11.50 | ||||||||||||||||||||||||||||||
20033 | 11.63 | 0.44 | (0.08 | ) | 0.36 | (0.43 | ) | — | (0.43 | ) | 11.56 | ||||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||||||
20081 | $ | 10.63 | $ | 0.49 | $ | (0.32 | ) | $ | 0.17 | $ | (0.48 | ) | $ | (0.03 | ) | $ | (0.51 | ) | $ | 10.29 | |||||||||||||||||||||
20071 | 10.75 | 0.50 | (0.03 | ) | 0.47 | (0.51 | ) | (0.08 | ) | (0.59 | ) | 10.63 | |||||||||||||||||||||||||||||
20062 | 11.32 | 0.37 | (0.26 | ) | 0.11 | (0.36 | ) | (0.32 | ) | (0.68 | ) | 10.75 | |||||||||||||||||||||||||||||
20053 | 11.53 | 0.51 | (0.09 | ) | 0.42 | (0.54 | ) | (0.09 | ) | (0.63 | ) | 11.32 | |||||||||||||||||||||||||||||
20043 | 11.59 | 0.52 | 0.03 | 0.55 | (0.53 | ) | (0.08 | ) | (0.61 | ) | 11.53 | ||||||||||||||||||||||||||||||
20033 | 11.67 | 0.51 | (0.09 | ) | 0.42 | (0.50 | ) | — | (0.50 | ) | 11.59 | ||||||||||||||||||||||||||||||
Intermediate Tax Free Fund | |||||||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||||||
20081 | $ | 10.63 | $ | 0.44 | $ | (0.09 | ) | $ | 0.35 | $ | (0.43 | ) | $ | (0.04 | ) | $ | (0.47 | ) | $ | 10.51 | |||||||||||||||||||||
20071 | 10.63 | 0.44 | 0.01 | 0.45 | (0.44 | ) | (0.01 | ) | (0.45 | ) | 10.63 | ||||||||||||||||||||||||||||||
20062 | 10.92 | 0.32 | (0.26 | ) | 0.06 | (0.32 | ) | (0.03 | ) | (0.35 | ) | 10.63 | |||||||||||||||||||||||||||||
20053 | 11.18 | 0.44 | (0.19 | ) | 0.25 | (0.45 | ) | (0.06 | ) | (0.51 | ) | 10.92 | |||||||||||||||||||||||||||||
20043 | 11.30 | 0.44 | (0.10 | ) | 0.34 | (0.45 | ) | (0.01 | ) | (0.46 | ) | 11.18 | |||||||||||||||||||||||||||||
20033 | 11.32 | 0.44 | (0.03 | ) | 0.41 | (0.43 | ) | — | (0.43 | ) | 11.30 | ||||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||||||
20081 | $ | 10.61 | $ | 0.44 | $ | (0.08 | ) | $ | 0.36 | $ | (0.44 | ) | $ | (0.04 | ) | $ | (0.48 | ) | $ | 10.49 | |||||||||||||||||||||
20071 | 10.61 | 0.45 | 0.01 | 0.46 | (0.45 | ) | (0.01 | ) | (0.46 | ) | 10.61 | ||||||||||||||||||||||||||||||
20062 | 10.90 | 0.33 | (0.26 | ) | 0.07 | (0.33 | ) | (0.03 | ) | (0.36 | ) | 10.61 | |||||||||||||||||||||||||||||
20053 | 11.16 | 0.46 | (0.19 | ) | 0.27 | (0.47 | ) | (0.06 | ) | (0.53 | ) | 10.90 | |||||||||||||||||||||||||||||
20043 | 11.28 | 0.46 | (0.11 | ) | 0.35 | (0.46 | ) | (0.01 | ) | (0.47 | ) | 11.16 | |||||||||||||||||||||||||||||
20033 | 11.30 | 0.46 | (0.03 | ) | 0.43 | (0.45 | ) | — | (0.45 | ) | 11.28 | ||||||||||||||||||||||||||||||
1 | For the period July 1 to June 30 in the year indicated. | |
2 | For the period October 1, 2005 to June 30, 2006. Effective in 2006, the fund’s fiscal year-end was changed from September 30 to June 30. All ratios for the period have been annualized, except total return and portfolio turnover. | |
3 | For the period October 1 to September 30 in the year indicated. | |
4 | 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 2008 Annual Report
Ratio of Net | ||||||||||||||||||||||||||||||||||||
Ratio of | Investment | |||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses | Income | ||||||||||||||||||||||||||||||||||
Ratio of | Investment | to Average | to Average | |||||||||||||||||||||||||||||||||
Net Assets | Expenses | Income | Net Assets | Net Assets | Portfolio | |||||||||||||||||||||||||||||||
Total | End of | to Average | to Average | (Excluding | (Excluding | Turnover | ||||||||||||||||||||||||||||||
Return4 | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | ||||||||||||||||||||||||||||||
3.04 | % | $ | 6,199 | 0.85 | % | 3.92 | % | 1.33 | % | 3.44 | % | 21 | % | |||||||||||||||||||||||
4.21 | 6,783 | 0.85 | 3.99 | 1.36 | 3.48 | 35 | ||||||||||||||||||||||||||||||
0.37 | 9,577 | 0.85 | 4.02 | 1.27 | 3.60 | 17 | ||||||||||||||||||||||||||||||
2.11 | 13,426 | 0.85 | 3.85 | 1.10 | 3.60 | 20 | ||||||||||||||||||||||||||||||
3.12 | 13,969 | 0.85 | 4.00 | 1.06 | 3.79 | 4 | ||||||||||||||||||||||||||||||
3.64 | 22,555 | 0.85 | 3.79 | 1.06 | 3.58 | 14 | ||||||||||||||||||||||||||||||
3.20 | % | $ | 43,933 | 0.70 | % | 4.05 | % | 1.08 | % | 3.67 | % | 21 | % | |||||||||||||||||||||||
4.28 | 34,447 | 0.70 | 4.14 | 1.11 | 3.73 | 35 | ||||||||||||||||||||||||||||||
0.49 | 32,661 | 0.70 | 4.18 | 1.02 | 3.86 | 17 | ||||||||||||||||||||||||||||||
2.36 | 34,562 | 0.70 | 4.01 | 0.85 | 3.86 | 20 | ||||||||||||||||||||||||||||||
3.29 | 37,748 | 0.70 | 4.15 | 0.81 | 4.04 | 4 | ||||||||||||||||||||||||||||||
3.71 | 47,854 | 0.70 | 3.94 | 0.81 | 3.83 | 14 | ||||||||||||||||||||||||||||||
1.52 | % | $ | 5,815 | 0.75 | % | 4.40 | % | 1.80 | % | 3.35 | % | 49 | % | |||||||||||||||||||||||
4.13 | 8,788 | 0.75 | 4.27 | 1.75 | 3.27 | 47 | ||||||||||||||||||||||||||||||
0.77 | 8,507 | 0.75 | 4.30 | 1.52 | 3.53 | 35 | ||||||||||||||||||||||||||||||
3.36 | 8,362 | 0.75 | 4.23 | 1.18 | 3.80 | 30 | ||||||||||||||||||||||||||||||
4.71 | 10,598 | 0.75 | 4.25 | 1.09 | 3.91 | 12 | ||||||||||||||||||||||||||||||
3.53 | 13,843 | 0.75 | 4.23 | 1.07 | 3.91 | 14 | ||||||||||||||||||||||||||||||
1.12 | % | $ | 2,859 | 1.15 | % | 3.98 | % | 2.20 | % | 2.93 | % | 49 | % | |||||||||||||||||||||||
3.72 | 2,888 | 1.15 | 3.87 | 2.24 | 2.78 | 47 | ||||||||||||||||||||||||||||||
0.47 | 3,007 | 1.15 | 3.90 | 2.27 | 2.78 | 35 | ||||||||||||||||||||||||||||||
2.95 | 3,423 | 1.15 | 3.83 | 1.93 | 3.05 | 30 | ||||||||||||||||||||||||||||||
4.21 | 3,787 | 1.15 | 3.85 | 1.84 | 3.16 | 12 | ||||||||||||||||||||||||||||||
3.23 | 4,284 | 1.15 | 3.83 | 1.82 | 3.16 | 14 | ||||||||||||||||||||||||||||||
1.67 | % | $ | 15,889 | 0.50 | % | 4.63 | % | 1.55 | % | 3.58 | % | 49 | % | |||||||||||||||||||||||
4.39 | 13,477 | 0.50 | 4.51 | 1.50 | 3.51 | 47 | ||||||||||||||||||||||||||||||
0.96 | 10,181 | 0.50 | 4.58 | 1.27 | 3.81 | 35 | ||||||||||||||||||||||||||||||
3.70 | 8,363 | 0.50 | 4.48 | 0.93 | 4.05 | 30 | ||||||||||||||||||||||||||||||
4.87 | 9,439 | 0.50 | 4.51 | 0.84 | 4.17 | 12 | ||||||||||||||||||||||||||||||
3.78 | 9,516 | 0.50 | 4.49 | 0.82 | 4.17 | 14 | ||||||||||||||||||||||||||||||
3.33 | % | $ | 27,554 | 0.77 | % | 4.10 | % | 1.02 | % | 3.85 | % | 19 | % | |||||||||||||||||||||||
4.27 | 29,687 | 0.85 | 4.08 | 1.02 | 3.91 | 27 | ||||||||||||||||||||||||||||||
0.56 | 32,521 | 0.85 | 3.95 | 1.05 | 3.75 | 15 | ||||||||||||||||||||||||||||||
2.31 | 34,658 | 0.85 | 3.98 | 1.05 | 3.78 | 15 | ||||||||||||||||||||||||||||||
3.06 | 35,276 | 0.85 | 3.98 | 1.05 | 3.78 | 10 | ||||||||||||||||||||||||||||||
3.74 | 34,231 | 0.85 | 3.91 | 1.05 | 3.71 | 15 | ||||||||||||||||||||||||||||||
3.41 | % | $ | 630,820 | 0.70 | % | 4.17 | % | 0.77 | % | 4.10 | % | 19 | % | |||||||||||||||||||||||
4.43 | 554,618 | 0.70 | 4.23 | 0.77 | 4.16 | 27 | ||||||||||||||||||||||||||||||
0.67 | 596,306 | 0.70 | 4.10 | 0.80 | 4.00 | 15 | ||||||||||||||||||||||||||||||
2.47 | 641,141 | 0.70 | 4.13 | 0.80 | 4.03 | 15 | ||||||||||||||||||||||||||||||
3.22 | 637,361 | 0.70 | 4.13 | 0.80 | 4.03 | 10 | ||||||||||||||||||||||||||||||
3.90 | 696,994 | 0.70 | 4.05 | 0.80 | 3.95 | 15 | ||||||||||||||||||||||||||||||
First American Funds 2008 Annual Report 103
Financial Highlights For a share outstanding throughout the indicated periods.
Realized and | |||||||||||||||||||||||||||||||||||||||||
Net Asset | Unrealized | Distributions | Net Asset | ||||||||||||||||||||||||||||||||||||||
Value | Net | Gains | Total from | from Net | Distributions | Value | |||||||||||||||||||||||||||||||||||
Beginning | Investment | (Losses) on | Investment | Investment | from Net | Total | End of | ||||||||||||||||||||||||||||||||||
of Period | Income | Investments | Operations | Income | Realized Gains | Distributions | Period | ||||||||||||||||||||||||||||||||||
Minnesota Intermediate Tax Free Fund | |||||||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||||||
20081 | $ | 9.83 | $ | 0.39 | $ | (0.05 | ) | $ | 0.34 | $ | (0.39 | ) | $ | (0.03 | ) | $ | (0.42 | ) | $ | 9.75 | |||||||||||||||||||||
20071 | 9.88 | 0.39 | (0.01 | ) | 0.38 | (0.38 | ) | (0.05 | ) | (0.43 | ) | 9.83 | |||||||||||||||||||||||||||||
20062 | 10.16 | 0.29 | (0.22 | ) | 0.07 | (0.29 | ) | (0.06 | ) | (0.35 | ) | 9.88 | |||||||||||||||||||||||||||||
20053 | 10.34 | 0.39 | (0.15 | ) | 0.24 | (0.39 | ) | (0.03 | ) | (0.42 | ) | 10.16 | |||||||||||||||||||||||||||||
20043 | 10.44 | 0.39 | (0.08 | ) | 0.31 | (0.39 | ) | (0.02 | ) | (0.41 | ) | 10.34 | |||||||||||||||||||||||||||||
20033 | 10.51 | 0.40 | (0.04 | ) | 0.36 | (0.41 | ) | (0.02 | ) | (0.43 | ) | 10.44 | |||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||||||
20081 | $ | 9.78 | $ | 0.39 | $ | (0.05 | ) | 0.34 | $ | (0.40 | ) | $ | (0.03 | ) | $ | (0.43 | ) | $ | 9.69 | ||||||||||||||||||||||
20071 | 9.83 | 0.40 | — | 0.40 | (0.40 | ) | (0.05 | ) | (0.45 | ) | 9.78 | ||||||||||||||||||||||||||||||
20062 | 10.11 | 0.30 | (0.22 | ) | 0.08 | (0.30 | ) | (0.06 | ) | (0.36 | ) | 9.83 | |||||||||||||||||||||||||||||
20053 | 10.29 | 0.40 | (0.15 | ) | 0.25 | (0.40 | ) | (0.03 | ) | (0.43 | ) | 10.11 | |||||||||||||||||||||||||||||
20043 | 10.40 | 0.41 | (0.10 | ) | 0.31 | (0.40 | ) | (0.02 | ) | (0.42 | ) | 10.29 | |||||||||||||||||||||||||||||
20033 | 10.46 | 0.42 | (0.03 | ) | 0.39 | (0.43 | ) | (0.02 | ) | (0.45 | ) | 10.40 | |||||||||||||||||||||||||||||
Minnesota Tax Free Fund | |||||||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||||||
20081 | $ | 10.93 | $ | 0.44 | $ | (0.38 | ) | $ | 0.06 | $ | (0.45 | ) | $ | (0.06 | ) | $ | (0.51 | ) | $ | 10.48 | |||||||||||||||||||||
20071 | 10.97 | 0.46 | (0.02 | ) | 0.44 | (0.45 | ) | (0.03 | ) | (0.48 | ) | 10.93 | |||||||||||||||||||||||||||||
20062 | 11.21 | 0.35 | (0.21 | ) | 0.14 | (0.35 | ) | (0.03 | ) | (0.38 | ) | 10.97 | |||||||||||||||||||||||||||||
20053 | 11.23 | 0.45 | 0.03 | 0.48 | (0.45 | ) | (0.05 | ) | (0.50 | ) | 11.21 | ||||||||||||||||||||||||||||||
20043 | 11.34 | 0.44 | (0.01 | ) | 0.43 | (0.45 | ) | (0.09 | ) | (0.54 | ) | 11.23 | |||||||||||||||||||||||||||||
20033 | 11.39 | 0.48 | (0.05 | ) | 0.43 | (0.45 | ) | (0.03 | ) | (0.48 | ) | 11.34 | |||||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||||||
20081 | $ | 10.89 | $ | 0.40 | $ | (0.39 | ) | $ | 0.01 | $ | (0.40 | ) | $ | (0.06 | ) | $ | (0.46 | ) | $ | 10.44 | |||||||||||||||||||||
20071 | 10.93 | 0.42 | (0.02 | ) | 0.40 | (0.41 | ) | (0.03 | ) | (0.44 | ) | 10.89 | |||||||||||||||||||||||||||||
20062 | 11.17 | 0.31 | (0.20 | ) | 0.11 | (0.32 | ) | (0.03 | ) | (0.35 | ) | 10.93 | |||||||||||||||||||||||||||||
20053 | 11.19 | 0.41 | 0.03 | 0.44 | (0.41 | ) | (0.05 | ) | (0.46 | ) | 11.17 | ||||||||||||||||||||||||||||||
20043 | 11.31 | 0.39 | (0.01 | ) | 0.38 | (0.41 | ) | (0.09 | ) | (0.50 | ) | 11.19 | |||||||||||||||||||||||||||||
20033 | 11.36 | 0.43 | (0.04 | ) | 0.39 | (0.41 | ) | (0.03 | ) | (0.44 | ) | 11.31 | |||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||||||
20081 | $ | 10.92 | $ | 0.46 | $ | (0.38 | ) | $ | 0.08 | $ | (0.47 | ) | $ | (0.06 | ) | $ | (0.53 | ) | $ | 10.47 | |||||||||||||||||||||
20071 | 10.96 | 0.48 | (0.01 | ) | 0.47 | (0.48 | ) | (0.03 | ) | (0.51 | ) | 10.92 | |||||||||||||||||||||||||||||
20062 | 11.20 | 0.36 | (0.20 | ) | 0.16 | (0.37 | ) | (0.03 | ) | (0.40 | ) | 10.96 | |||||||||||||||||||||||||||||
20053 | 11.22 | 0.48 | 0.03 | 0.51 | (0.48 | ) | (0.05 | ) | (0.53 | ) | 11.20 | ||||||||||||||||||||||||||||||
20043 | 11.33 | 0.47 | (0.01 | ) | 0.46 | (0.48 | ) | (0.09 | ) | (0.57 | ) | 11.22 | |||||||||||||||||||||||||||||
20033 | 11.38 | 0.51 | (0.05 | ) | 0.46 | (0.48 | ) | (0.03 | ) | (0.51 | ) | 11.33 | |||||||||||||||||||||||||||||
Missouri Tax Free Fund | |||||||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||||||
20081 | $ | 11.72 | $ | 0.46 | $ | (0.29 | ) | $ | 0.17 | $ | (0.46 | ) | $ | (0.03 | ) | $ | (0.49 | ) | $ | 11.40 | |||||||||||||||||||||
20071 | 11.76 | 0.45 | 0.05 | 0.50 | (0.45 | ) | (0.09 | ) | (0.54 | ) | 11.72 | ||||||||||||||||||||||||||||||
20062 | 12.14 | 0.34 | (0.29 | ) | 0.05 | (0.34 | ) | (0.09 | ) | (0.43 | ) | 11.76 | |||||||||||||||||||||||||||||
20053 | 12.32 | 0.45 | (0.12 | ) | 0.33 | (0.45 | ) | (0.06 | ) | (0.51 | ) | 12.14 | |||||||||||||||||||||||||||||
20043 | 12.37 | 0.45 | (0.02 | ) | 0.43 | (0.45 | ) | (0.03 | ) | (0.48 | ) | 12.32 | |||||||||||||||||||||||||||||
20033 | 12.47 | 0.45 | (0.04 | ) | 0.41 | (0.45 | ) | (0.06 | ) | (0.51 | ) | 12.37 | |||||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||||||
20081 | $ | 11.69 | $ | 0.41 | $ | (0.30 | ) | $ | 0.11 | $ | (0.41 | ) | $ | (0.03 | ) | $ | (0.44 | ) | $ | 11.36 | |||||||||||||||||||||
20071 | 11.73 | 0.41 | 0.04 | 0.45 | (0.40 | ) | (0.09 | ) | (0.49 | ) | 11.69 | ||||||||||||||||||||||||||||||
20062 | 12.12 | 0.30 | (0.30 | ) | — | (0.30 | ) | (0.09 | ) | (0.39 | ) | 11.73 | |||||||||||||||||||||||||||||
20053 | 12.29 | 0.40 | (0.11 | ) | 0.29 | (0.40 | ) | (0.06 | ) | (0.46 | ) | 12.12 | |||||||||||||||||||||||||||||
20043 | 12.35 | 0.40 | (0.03 | ) | 0.37 | (0.40 | ) | (0.03 | ) | (0.43 | ) | 12.29 | |||||||||||||||||||||||||||||
20033 | 12.46 | 0.40 | (0.04 | ) | 0.36 | (0.41 | ) | (0.06 | ) | (0.47 | ) | 12.35 | |||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||||||
20081 | $ | 11.73 | $ | 0.48 | $ | (0.30 | ) | $ | 0.18 | $ | (0.48 | ) | $ | (0.03 | ) | $ | (0.51 | ) | $ | 11.40 | |||||||||||||||||||||
20071 | 11.76 | 0.48 | 0.06 | 0.54 | (0.48 | ) | (0.09 | ) | (0.57 | ) | 11.73 | ||||||||||||||||||||||||||||||
20062 | 12.15 | 0.36 | (0.30 | ) | 0.06 | (0.36 | ) | (0.09 | ) | (0.45 | ) | 11.76 | |||||||||||||||||||||||||||||
20053 | 12.32 | 0.48 | (0.11 | ) | 0.37 | (0.48 | ) | (0.06 | ) | (0.54 | ) | 12.15 | |||||||||||||||||||||||||||||
20043 | 12.38 | 0.48 | (0.03 | ) | 0.45 | (0.48 | ) | (0.03 | ) | (0.51 | ) | 12.32 | |||||||||||||||||||||||||||||
20033 | 12.48 | 0.49 | (0.05 | ) | 0.44 | (0.48 | ) | (0.06 | ) | (0.54 | ) | 12.38 | |||||||||||||||||||||||||||||
1 | For the period July 1 to June 30 in the fiscal year indicated. | |
2 | For the period October 1, 2005 to June 30, 2006. Effective in 2006, the fund’s fiscal year-end was changed from September 30 to June 30. All ratios for the period have been annualized, except total return and portfolio turnover. | |
3 | For the period October 1 to September 30 in the fiscal year indicated. | |
4 | Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived. |
The accompanying notes are an integral part of the financial statements.
104 First American Funds 2008 Annual Report
Ratio of Net | ||||||||||||||||||||||||||||||||||||
Ratio of | Investment | |||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses | Income | ||||||||||||||||||||||||||||||||||
Ratio of | Investment | to Average | to Average | |||||||||||||||||||||||||||||||||
Net Assets | Expenses | Income | Net Assets | Net Assets | Portfolio | |||||||||||||||||||||||||||||||
Total | End of | to Average | to Average | (Excluding | (Excluding | Turnover | ||||||||||||||||||||||||||||||
Return4 | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | ||||||||||||||||||||||||||||||
3.53 | % | $ | 22,059 | 0.77 | % | 3.95 | % | 1.07 | % | 3.65 | % | 15 | % | |||||||||||||||||||||||
3.87 | 21,153 | 0.85 | 3.86 | 1.07 | 3.64 | 18 | ||||||||||||||||||||||||||||||
0.74 | 26,526 | 0.85 | 3.85 | 1.08 | 3.62 | 11 | ||||||||||||||||||||||||||||||
2.33 | 32,326 | 0.85 | 3.78 | 1.06 | 3.57 | 15 | ||||||||||||||||||||||||||||||
3.03 | 35,047 | 0.85 | 3.77 | 1.05 | 3.57 | 8 | ||||||||||||||||||||||||||||||
3.55 | 31,044 | 0.85 | 3.85 | 1.05 | 3.65 | 15 | ||||||||||||||||||||||||||||||
3.51 | % | $ | 175,681 | 0.70 | % | 4.02 | % | 0.82 | % | 3.90 | % | 15 | % | |||||||||||||||||||||||
4.05 | 168,920 | 0.70 | 4.01 | 0.82 | 3.89 | 18 | ||||||||||||||||||||||||||||||
0.85 | 175,485 | 0.70 | 4.00 | 0.83 | 3.87 | 11 | ||||||||||||||||||||||||||||||
2.50 | 197,251 | 0.70 | 3.93 | 0.81 | 3.82 | 15 | ||||||||||||||||||||||||||||||
3.10 | 216,906 | 0.70 | 3.92 | 0.80 | 3.82 | 8 | ||||||||||||||||||||||||||||||
3.82 | 238,958 | 0.70 | 4.01 | 0.80 | 3.91 | 15 | ||||||||||||||||||||||||||||||
0.54 | % | $ | 102,089 | 0.87 | % | 4.14 | % | 1.10 | % | 3.91 | % | 37 | % | |||||||||||||||||||||||
4.05 | 106,732 | 0.95 | 4.10 | 1.10 | 3.95 | 20 | ||||||||||||||||||||||||||||||
1.28 | 101,142 | 0.95 | 4.15 | 1.10 | 4.00 | 11 | ||||||||||||||||||||||||||||||
4.42 | 106,783 | 0.95 | 4.04 | 1.06 | 3.93 | 16 | ||||||||||||||||||||||||||||||
3.94 | 114,981 | 0.95 | 3.87 | 1.05 | 3.77 | 25 | ||||||||||||||||||||||||||||||
3.90 | 125,916 | 0.95 | 4.25 | 1.06 | 4.14 | 23 | ||||||||||||||||||||||||||||||
0.06 | % | $ | 20,061 | 1.35 | % | 3.63 | % | 1.50 | % | 3.48 | % | 37 | % | |||||||||||||||||||||||
3.65 | 14,221 | 1.35 | 3.69 | 1.58 | 3.46 | 20 | ||||||||||||||||||||||||||||||
0.98 | 10,359 | 1.35 | 3.75 | 1.85 | 3.25 | 11 | ||||||||||||||||||||||||||||||
4.02 | 9,841 | 1.35 | 3.64 | 1.81 | 3.18 | 16 | ||||||||||||||||||||||||||||||
3.45 | 10,387 | 1.35 | 3.47 | 1.80 | 3.02 | 25 | ||||||||||||||||||||||||||||||
3.51 | 11,951 | 1.35 | 3.85 | 1.81 | 3.39 | 23 | ||||||||||||||||||||||||||||||
0.71 | % | $ | 44,993 | 0.70 | % | 4.32 | % | 0.85 | % | 4.17 | % | 37 | % | |||||||||||||||||||||||
4.31 | 56,181 | 0.70 | 4.35 | 0.85 | 4.20 | 20 | ||||||||||||||||||||||||||||||
1.47 | 48,760 | 0.70 | 4.40 | 0.85 | 4.25 | 11 | ||||||||||||||||||||||||||||||
4.69 | 46,471 | 0.70 | 4.29 | 0.81 | 4.18 | 16 | ||||||||||||||||||||||||||||||
4.20 | 42,900 | 0.70 | 4.12 | 0.80 | 4.02 | 25 | ||||||||||||||||||||||||||||||
4.16 | 47,858 | 0.70 | 4.50 | 0.81 | 4.39 | 23 | ||||||||||||||||||||||||||||||
1.44 | % | $ | 23,135 | 0.95 | % | 3.92 | % | 1.10 | % | 3.77 | % | 20 | % | |||||||||||||||||||||||
4.23 | 24,945 | 0.95 | 3.78 | 1.10 | 3.63 | 33 | ||||||||||||||||||||||||||||||
0.38 | 26,972 | 0.95 | 3.74 | 1.09 | 3.60 | 20 | ||||||||||||||||||||||||||||||
2.74 | 30,188 | 0.95 | 3.65 | 1.06 | 3.54 | 19 | ||||||||||||||||||||||||||||||
3.60 | 27,114 | 0.95 | 3.68 | 1.05 | 3.58 | 15 | ||||||||||||||||||||||||||||||
3.45 | 28,141 | 0.95 | 3.69 | 1.06 | 3.58 | 20 | ||||||||||||||||||||||||||||||
0.95 | % | $ | 406 | 1.35 | % | 3.53 | % | 1.50 | % | 3.38 | % | 20 | % | |||||||||||||||||||||||
3.84 | 518 | 1.35 | 3.35 | 1.57 | 3.13 | 33 | ||||||||||||||||||||||||||||||
0.00 | 214 | 1.35 | 3.34 | 1.84 | 2.85 | 20 | ||||||||||||||||||||||||||||||
2.42 | 190 | 1.35 | 3.25 | 1.81 | 2.79 | 19 | ||||||||||||||||||||||||||||||
3.11 | 218 | 1.35 | 3.28 | 1.80 | 2.83 | 15 | ||||||||||||||||||||||||||||||
3.05 | 279 | 1.35 | 3.30 | 1.81 | 2.84 | 20 | ||||||||||||||||||||||||||||||
1.60 | % | $ | 137,746 | 0.70 | % | 4.17 | % | 0.85 | % | 4.02 | % | 20 | % | |||||||||||||||||||||||
4.58 | 130,644 | 0.70 | 4.03 | 0.85 | 3.88 | 33 | ||||||||||||||||||||||||||||||
0.49 | 138,394 | 0.70 | 3.99 | 0.84 | 3.85 | 20 | ||||||||||||||||||||||||||||||
3.08 | 151,710 | 0.70 | 3.90 | 0.81 | 3.79 | 19 | ||||||||||||||||||||||||||||||
3.77 | 152,676 | 0.70 | 3.93 | 0.80 | 3.83 | 15 | ||||||||||||||||||||||||||||||
�� | 3.71 | 168,094 | 0.70 | 3.94 | 0.81 | 3.83 | 20 | |||||||||||||||||||||||||||||
First American Funds 2008 Annual Report 105
Financial Highlights For a share outstanding throughout the indicated periods.
Realized and | |||||||||||||||||||||||||||||||||||||||||
Net Asset | Unrealized | Distributions | Net Asset | ||||||||||||||||||||||||||||||||||||||
Value | Net | Gains | Total from | from Net | Distributions | Value | |||||||||||||||||||||||||||||||||||
Beginning | Investment | (Losses) on | Investment | Investment | from Net | Total | End of | ||||||||||||||||||||||||||||||||||
of Period | Income | Investment | Operations | Income | Realized Gains | Distributions | Period | ||||||||||||||||||||||||||||||||||
Nebraska Tax Free Fund | |||||||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||||||
20081 | $ | 10.30 | $ | 0.42 | $ | (0.20 | ) | $ | 0.22 | $ | (0.41 | ) | $ | (0.05 | ) | $ | (0.46 | ) | $ | 10.06 | |||||||||||||||||||||
20071 | 10.33 | 0.42 | 0.02 | 0.44 | (0.42 | ) | (0.05 | ) | (0.47 | ) | 10.30 | ||||||||||||||||||||||||||||||
20062 | 10.58 | 0.31 | (0.24 | ) | 0.07 | (0.30 | ) | (0.02 | ) | (0.32 | ) | 10.33 | |||||||||||||||||||||||||||||
20053 | 10.66 | 0.39 | (0.05 | ) | 0.34 | (0.42 | ) | — | (0.42 | ) | 10.58 | ||||||||||||||||||||||||||||||
20043 | 10.66 | 0.41 | 0.03 | 0.44 | (0.40 | ) | (0.04 | ) | (0.44 | ) | 10.66 | ||||||||||||||||||||||||||||||
20033 | 10.70 | 0.41 | (0.04 | ) | 0.37 | (0.40 | ) | (0.01 | ) | (0.41 | ) | 10.66 | |||||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||||||
20081 | $ | 10.23 | $ | 0.38 | $ | (0.20 | ) | $ | 0.18 | $ | (0.37 | ) | $ | (0.05 | ) | $ | (0.42 | ) | $ | 9.99 | |||||||||||||||||||||
20071 | 10.26 | 0.37 | 0.02 | 0.39 | (0.37 | ) | (0.05 | ) | (0.42 | ) | 10.23 | ||||||||||||||||||||||||||||||
20062 | 10.50 | 0.27 | (0.22 | ) | 0.05 | (0.27 | ) | (0.02 | ) | (0.29 | ) | 10.26 | |||||||||||||||||||||||||||||
20053 | 10.58 | 0.35 | (0.06 | ) | 0.29 | (0.37 | ) | — | (0.37 | ) | 10.50 | ||||||||||||||||||||||||||||||
20043 | 10.58 | 0.35 | 0.04 | 0.39 | (0.35 | ) | (0.04 | ) | (0.39 | ) | 10.58 | ||||||||||||||||||||||||||||||
20033 | 10.63 | 0.36 | (0.04 | ) | 0.32 | (0.36 | ) | (0.01 | ) | (0.37 | ) | 10.58 | |||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||||||
20081 | $ | 10.30 | $ | 0.44 | $ | (0.19 | ) | $ | 0.25 | $ | (0.44 | ) | $ | (0.05 | ) | $ | (0.49 | ) | $ | 10.06 | |||||||||||||||||||||
20071 | 10.33 | 0.44 | 0.02 | 0.46 | (0.44 | ) | (0.05 | ) | (0.49 | ) | 10.30 | ||||||||||||||||||||||||||||||
20062 | 10.58 | 0.32 | (0.23 | ) | 0.09 | (0.32 | ) | (0.02 | ) | (0.34 | ) | 10.33 | |||||||||||||||||||||||||||||
20053 | 10.66 | 0.43 | (0.07 | ) | 0.36 | (0.44 | ) | — | (0.44 | ) | 10.58 | ||||||||||||||||||||||||||||||
20043 | 10.65 | 0.43 | 0.04 | 0.47 | (0.42 | ) | (0.04 | ) | (0.46 | ) | 10.66 | ||||||||||||||||||||||||||||||
20033 | 10.69 | 0.43 | (0.03 | ) | 0.40 | (0.43 | ) | (0.01 | ) | (0.44 | ) | 10.65 | |||||||||||||||||||||||||||||
Ohio Tax Free Fund | |||||||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||||||
20081 | $ | 10.20 | $ | 0.39 | $ | (0.15 | ) | $ | 0.24 | $ | (0.39 | ) | $ | (0.03 | ) | $ | (0.42 | ) | $ | 10.02 | |||||||||||||||||||||
20071 | 10.17 | 0.38 | 0.05 | 0.43 | (0.38 | ) | (0.02 | ) | (0.40 | ) | 10.20 | ||||||||||||||||||||||||||||||
20062 | 10.42 | 0.29 | (0.25 | ) | 0.04 | (0.28 | ) | (0.01 | ) | (0.29 | ) | 10.17 | |||||||||||||||||||||||||||||
20053 | 10.52 | 0.36 | (0.06 | ) | 0.30 | (0.36 | ) | (0.04 | ) | (0.40 | ) | 10.42 | |||||||||||||||||||||||||||||
20043 | 10.54 | 0.36 | 0.07 | 0.43 | (0.35 | ) | (0.10 | ) | (0.45 | ) | 10.52 | ||||||||||||||||||||||||||||||
20033 | 10.58 | 0.36 | (0.03 | ) | 0.33 | (0.37 | ) | — | (0.37 | ) | 10.54 | ||||||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||||||
20081 | $ | 10.07 | $ | 0.35 | $ | (0.15 | ) | $ | 0.20 | $ | (0.35 | ) | $ | (0.03 | ) | $ | (0.38 | ) | $ | 9.89 | |||||||||||||||||||||
20071 | 10.05 | 0.33 | 0.05 | 0.38 | (0.34 | ) | (0.02 | ) | (0.36 | ) | 10.07 | ||||||||||||||||||||||||||||||
20062 | 10.32 | 0.25 | (0.26 | ) | (0.01 | ) | (0.25 | ) | (0.01 | ) | (0.26 | ) | 10.05 | ||||||||||||||||||||||||||||
20053 | 10.41 | 0.32 | (0.05 | ) | 0.27 | (0.32 | ) | (0.04 | ) | (0.36 | ) | 10.32 | |||||||||||||||||||||||||||||
20043 | 10.44 | 0.29 | 0.09 | 0.38 | (0.31 | ) | (0.10 | ) | (0.41 | ) | 10.41 | ||||||||||||||||||||||||||||||
20033 | 10.57 | 0.32 | (0.12 | ) | 0.20 | (0.33 | ) | — | (0.33 | ) | 10.44 | ||||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||||||
20081 | $ | 10.19 | $ | 0.41 | $ | (0.15 | ) | $ | 0.26 | $ | (0.41 | ) | $ | (0.03 | ) | $ | (0.44 | ) | $ | 10.01 | |||||||||||||||||||||
20071 | 10.17 | 0.41 | 0.04 | 0.45 | (0.41 | ) | (0.02 | ) | (0.43 | ) | 10.19 | ||||||||||||||||||||||||||||||
20062 | 10.43 | 0.30 | (0.25 | ) | 0.05 | (0.30 | ) | (0.01 | ) | (0.31 | ) | 10.17 | |||||||||||||||||||||||||||||
20053 | 10.53 | 0.38 | (0.05 | ) | 0.33 | (0.39 | ) | (0.04 | ) | (0.43 | ) | 10.43 | |||||||||||||||||||||||||||||
20043 | 10.55 | 0.38 | 0.07 | 0.45 | (0.37 | ) | (0.10 | ) | (0.47 | ) | 10.53 | ||||||||||||||||||||||||||||||
20033 | 10.57 | 0.39 | (0.02 | ) | 0.37 | (0.39 | ) | — | (0.39 | ) | 10.55 | ||||||||||||||||||||||||||||||
Oregon Intermediate Tax Free Fund | |||||||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||||||
20081 | $ | 9.72 | $ | 0.35 | $ | (0.02 | ) | $ | 0.33 | $ | (0.36 | ) | $ | (0.01 | ) | $ | (0.37 | ) | $ | 9.68 | |||||||||||||||||||||
20071 | 9.78 | 0.37 | (0.02 | ) | 0.35 | (0.37 | ) | (0.04 | ) | (0.41 | ) | 9.72 | |||||||||||||||||||||||||||||
20062 | 10.07 | 0.27 | (0.25 | ) | 0.02 | (0.27 | ) | (0.04 | ) | (0.31 | ) | 9.78 | |||||||||||||||||||||||||||||
20053 | 10.30 | 0.36 | (0.19 | ) | 0.17 | (0.36 | ) | (0.04 | ) | (0.40 | ) | 10.07 | |||||||||||||||||||||||||||||
20043 | 10.43 | 0.37 | (0.05 | ) | 0.32 | (0.37 | ) | (0.08 | ) | (0.45 | ) | 10.30 | |||||||||||||||||||||||||||||
20033 | 10.49 | 0.37 | (0.03 | ) | 0.34 | (0.38 | ) | (0.02 | ) | (0.40 | ) | 10.43 | |||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||||||
20081 | $ | 9.72 | $ | 0.37 | $ | (0.03 | ) | $ | 0.34 | $ | (0.37 | ) | $ | (0.01 | ) | $ | (0.38 | ) | $ | 9.68 | |||||||||||||||||||||
20071 | 9.78 | 0.38 | (0.02 | ) | 0.36 | (0.38 | ) | (0.04 | ) | (0.42 | ) | 9.72 | |||||||||||||||||||||||||||||
20062 | 10.07 | 0.28 | (0.25 | ) | 0.03 | (0.28 | ) | (0.04 | ) | (0.32 | ) | 9.78 | |||||||||||||||||||||||||||||
20053 | 10.30 | 0.38 | (0.19 | ) | 0.19 | (0.38 | ) | (0.04 | ) | (0.42 | ) | 10.07 | |||||||||||||||||||||||||||||
20043 | 10.43 | 0.39 | (0.05 | ) | 0.34 | (0.39 | ) | (0.08 | ) | (0.47 | ) | 10.30 | |||||||||||||||||||||||||||||
20033 | 10.49 | 0.40 | (0.05 | ) | 0.35 | (0.39 | ) | (0.02 | ) | (0.41 | ) | 10.43 | |||||||||||||||||||||||||||||
1 | For the period July 1 to June 30 in the fiscal year indicated. | |
2 | For the period October 1, 2005 to June 30, 2006. Effective in 2006, the fund’s fiscal year-end was changed from September 30 to June 30. |
All ratios for the period have been annualized, except total return and portfolio turnover. |
3 | For the period October 1 to September 30 in the fiscal year indicated. | |
4 | Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived. |
The accompanying notes are an integral part of the financial statements.
106 First American Funds 2008 Annual Report
Ratio of Net | ||||||||||||||||||||||||||||||||||||
Ratio of | Investment | |||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses | Income | ||||||||||||||||||||||||||||||||||
Ratio of | Investment | to Average | to Average | |||||||||||||||||||||||||||||||||
Net Assets | Expenses | Income | Net Assets | Net Assets | Portfolio | |||||||||||||||||||||||||||||||
Total | End of | to Average | to Average | (Excluding | (Excluding | Turnover | ||||||||||||||||||||||||||||||
Return4 | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | ||||||||||||||||||||||||||||||
2.19 | % | $ | 5,689 | 0.75 | % | 4.06 | % | 1.47 | % | 3.34 | % | 22 | % | |||||||||||||||||||||||
4.24 | 7,091 | 0.75 | 3.97 | 1.44 | 3.28 | 39 | ||||||||||||||||||||||||||||||
0.65 | 6,910 | 0.75 | 3.89 | 1.30 | 3.34 | 35 | ||||||||||||||||||||||||||||||
3.20 | 7,136 | 0.75 | 3.78 | 1.12 | 3.41 | 21 | ||||||||||||||||||||||||||||||
4.18 | 4,925 | 0.75 | 3.82 | 1.08 | 3.49 | 17 | ||||||||||||||||||||||||||||||
3.57 | 4,869 | 0.75 | 3.87 | 1.07 | 3.55 | 15 | ||||||||||||||||||||||||||||||
1.81 | % | $ | 1,798 | 1.15 | % | 3.65 | % | 1.87 | % | 2.93 | % | 22 | % | |||||||||||||||||||||||
3.86 | 1,559 | 1.15 | 3.56 | 1.92 | 2.79 | 39 | ||||||||||||||||||||||||||||||
0.46 | 1,487 | 1.15 | 3.49 | 2.05 | 2.59 | 35 | ||||||||||||||||||||||||||||||
2.81 | 1,565 | 1.15 | 3.38 | 1.87 | 2.66 | 21 | ||||||||||||||||||||||||||||||
3.80 | 1,861 | 1.15 | 3.42 | 1.83 | 2.74 | 17 | ||||||||||||||||||||||||||||||
3.10 | 1,657 | 1.15 | 3.46 | 1.82 | 2.79 | 15 | ||||||||||||||||||||||||||||||
2.45 | % | $ | 29,533 | 0.50 | % | 4.31 | % | 1.22 | % | 3.59 | % | 22 | % | |||||||||||||||||||||||
4.51 | 32,502 | 0.50 | 4.22 | 1.19 | 3.53 | 39 | ||||||||||||||||||||||||||||||
0.85 | 31,347 | 0.50 | 4.14 | 1.05 | 3.59 | 35 | ||||||||||||||||||||||||||||||
3.45 | 32,418 | 0.50 | 4.03 | 0.87 | 3.66 | 21 | ||||||||||||||||||||||||||||||
4.54 | 29,722 | 0.50 | 4.07 | 0.83 | 3.74 | 17 | ||||||||||||||||||||||||||||||
3.82 | 28,120 | 0.50 | 4.11 | 0.82 | 3.79 | 15 | ||||||||||||||||||||||||||||||
2.38 | % | $ | 635 | 0.75 | % | 3.81 | % | 1.39 | % | 3.17 | % | 12 | % | |||||||||||||||||||||||
4.28 | 808 | 0.75 | 3.70 | 1.41 | 3.04 | 33 | ||||||||||||||||||||||||||||||
0.40 | 841 | 0.75 | 3.60 | 1.28 | 3.07 | 11 | ||||||||||||||||||||||||||||||
2.86 | 988 | 0.75 | 3.41 | 1.11 | 3.05 | 13 | ||||||||||||||||||||||||||||||
4.16 | 1,200 | 0.75 | 3.43 | 1.08 | 3.10 | 19 | ||||||||||||||||||||||||||||||
3.22 | 849 | 0.75 | 3.52 | 1.09 | 3.18 | 22 | ||||||||||||||||||||||||||||||
2.00 | % | $ | 255 | 1.15 | % | 3.39 | % | 1.78 | % | 2.76 | % | 12 | % | |||||||||||||||||||||||
3.81 | 187 | 1.15 | 3.29 | 1.90 | 2.54 | 33 | ||||||||||||||||||||||||||||||
(0.08 | ) | 209 | 1.15 | 3.22 | 2.03 | 2.34 | 11 | |||||||||||||||||||||||||||||
2.58 | 174 | 1.15 | 3.01 | 1.86 | 2.30 | 13 | ||||||||||||||||||||||||||||||
3.69 | 120 | 1.15 | 3.03 | 1.83 | 2.35 | 19 | ||||||||||||||||||||||||||||||
1.95 | 215 | 1.15 | 3.08 | 1.84 | 2.39 | 22 | ||||||||||||||||||||||||||||||
2.63 | % | $ | 48,510 | 0.50 | % | 4.06 | % | 1.14 | % | 3.42 | % | 12 | % | |||||||||||||||||||||||
4.44 | 42,223 | 0.50 | 3.94 | 1.16 | 3.28 | 33 | ||||||||||||||||||||||||||||||
0.49 | 40,606 | 0.50 | 3.85 | 1.03 | 3.32 | 11 | ||||||||||||||||||||||||||||||
3.12 | 41,104 | 0.50 | 3.66 | 0.86 | 3.30 | 13 | ||||||||||||||||||||||||||||||
4.42 | 39,240 | 0.50 | 3.68 | 0.82 | 3.36 | 19 | ||||||||||||||||||||||||||||||
3.65 | 39,465 | 0.50 | 3.78 | 0.84 | 3.44 | 22 | ||||||||||||||||||||||||||||||
3.39 | % | $ | 5,967 | 0.85 | % | 3.64 | % | 1.12 | % | 3.37 | % | 15 | % | |||||||||||||||||||||||
3.54 | 7,895 | 0.85 | 3.71 | 1.12 | 3.44 | 43 | ||||||||||||||||||||||||||||||
0.16 | 9,456 | 0.85 | 3.62 | 1.11 | 3.36 | 13 | ||||||||||||||||||||||||||||||
1.67 | 9,356 | 0.85 | 3.56 | 1.06 | 3.35 | 20 | ||||||||||||||||||||||||||||||
3.20 | 8,700 | 0.85 | 3.62 | 1.05 | 3.42 | 12 | ||||||||||||||||||||||||||||||
3.31 | 8,189 | 0.85 | 3.67 | 1.05 | 3.47 | 17 | ||||||||||||||||||||||||||||||
3.54 | % | $ | 120,800 | 0.70 | % | 3.78 | % | 0.87 | % | 3.61 | % | 15 | % | |||||||||||||||||||||||
3.70 | 109,357 | 0.70 | 3.86 | 0.87 | 3.69 | 43 | ||||||||||||||||||||||||||||||
0.28 | 111,344 | 0.70 | 3.77 | 0.86 | 3.61 | 13 | ||||||||||||||||||||||||||||||
1.82 | 133,613 | 0.70 | 3.71 | 0.81 | 3.60 | 20 | ||||||||||||||||||||||||||||||
3.35 | 137,869 | 0.70 | 3.77 | 0.80 | 3.67 | 12 | ||||||||||||||||||||||||||||||
3.46 | 146,244 | 0.70 | 3.82 | 0.80 | 3.72 | 17 | ||||||||||||||||||||||||||||||
First American Funds 2008 Annual Report 107
Financial Highlights For a share outstanding throughout the indicated periods.
Realized and | |||||||||||||||||||||||||||||||||||||||||
Net Asset | Unrealized | Distributions | Net Asset | ||||||||||||||||||||||||||||||||||||||
Value | Net | Gains | Total from | from Net | Distributions | Value | |||||||||||||||||||||||||||||||||||
Beginning | Investment | (Losses) on | Investment | Investment | from Net | Total | End of | ||||||||||||||||||||||||||||||||||
of Period | Income | Investments | Operations | Income | Realized Gains | Distributions | Period | ||||||||||||||||||||||||||||||||||
Short Tax Free Fund | |||||||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||||||
20081 | $ | 9.70 | $ | 0.30 | $ | 0.10 | $ | 0.40 | $ | (0.31 | ) | $ | — | $ | (0.31 | ) | $ | 9.79 | |||||||||||||||||||||||
20071 | 9.68 | 0.28 | 0.03 | 0.31 | (0.29 | ) | — | (0.29 | ) | 9.70 | |||||||||||||||||||||||||||||||
20062 | 9.78 | 0.19 | (0.09 | ) | 0.10 | (0.20 | ) | — | (0.20 | ) | 9.68 | ||||||||||||||||||||||||||||||
20053 | 9.96 | 0.24 | (0.17 | ) | 0.07 | (0.25 | ) | — | (0.25 | ) | 9.78 | ||||||||||||||||||||||||||||||
20043 | 10.18 | 0.26 | (0.17 | ) | 0.09 | (0.25 | ) | (0.06 | ) | (0.31 | ) | 9.96 | |||||||||||||||||||||||||||||
20034 | 10.00 | 0.26 | 0.19 | 0.45 | (0.27 | ) | — | (0.27 | ) | 10.18 | |||||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||||||
20081 | $ | 9.70 | $ | 0.31 | $ | 0.10 | $ | 0.41 | $ | (0.32 | ) | $ | — | $ | (0.32 | ) | $ | 9.79 | |||||||||||||||||||||||
20071 | 9.68 | 0.31 | 0.01 | 0.32 | (0.30 | ) | — | (0.30 | ) | 9.70 | |||||||||||||||||||||||||||||||
20062 | 9.78 | 0.21 | (0.10 | ) | 0.11 | (0.21 | ) | — | (0.21 | ) | 9.68 | ||||||||||||||||||||||||||||||
20053 | 9.96 | 0.26 | (0.18 | ) | 0.08 | (0.26 | ) | — | (0.26 | ) | 9.78 | ||||||||||||||||||||||||||||||
20043 | 10.18 | 0.27 | (0.17 | ) | 0.10 | (0.26 | ) | (0.06 | ) | (0.32 | ) | 9.96 | |||||||||||||||||||||||||||||
20034 | 10.00 | 0.28 | 0.18 | 0.46 | (0.28 | ) | — | (0.28 | ) | 10.18 | |||||||||||||||||||||||||||||||
Tax Free Fund | |||||||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||||||
20081 | $ | 10.77 | $ | 0.45 | $ | (0.46 | ) | $ | (0.01 | ) | $ | (0.44 | ) | $ | (0.06 | ) | $ | (0.50 | ) | $ | 10.26 | ||||||||||||||||||||
20071 | 10.86 | 0.45 | — | 0.45 | (0.45 | ) | (0.09 | ) | (0.54 | ) | 10.77 | ||||||||||||||||||||||||||||||
20062 | 11.10 | 0.35 | (0.20 | ) | 0.15 | (0.35 | ) | (0.04 | ) | (0.39 | ) | 10.86 | |||||||||||||||||||||||||||||
20053 | 11.18 | 0.47 | 0.03 | 0.50 | (0.47 | ) | (0.11 | ) | (0.58 | ) | 11.10 | ||||||||||||||||||||||||||||||
20043 | 11.28 | 0.47 | 0.02 | 0.49 | (0.48 | ) | (0.11 | ) | (0.59 | ) | 11.18 | ||||||||||||||||||||||||||||||
20033 | 11.44 | 0.47 | (0.03 | ) | 0.44 | (0.47 | ) | (0.13 | ) | (0.60 | ) | 11.28 | |||||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||||||
20081 | $ | 10.72 | $ | 0.39 | $ | (0.45 | ) | $ | (0.06 | ) | $ | (0.39 | ) | $ | (0.06 | ) | $ | (0.45 | ) | $ | 10.21 | ||||||||||||||||||||
20071 | 10.81 | 0.40 | 0.01 | 0.41 | (0.41 | ) | (0.09 | ) | (0.50 | ) | 10.72 | ||||||||||||||||||||||||||||||
20062 | 11.05 | 0.32 | (0.20 | ) | 0.12 | (0.32 | ) | (0.04 | ) | (0.36 | ) | 10.81 | |||||||||||||||||||||||||||||
20053 | 11.13 | 0.42 | 0.03 | 0.45 | (0.42 | ) | (0.11 | ) | (0.53 | ) | 11.05 | ||||||||||||||||||||||||||||||
20043 | 11.24 | 0.43 | — | 0.43 | (0.43 | ) | (0.11 | ) | (0.54 | ) | 11.13 | ||||||||||||||||||||||||||||||
20033 | 11.40 | 0.42 | (0.02 | ) | 0.40 | (0.43 | ) | (0.13 | ) | (0.56 | ) | 11.24 | |||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||||||
20081 | $ | 10.78 | $ | 0.46 | $ | (0.46 | ) | $ | — | $ | (0.45 | ) | $ | (0.06 | ) | $ | (0.51 | ) | $ | 10.27 | |||||||||||||||||||||
20071 | 10.87 | 0.48 | — | 0.48 | (0.48 | ) | (0.09 | ) | (0.57 | ) | 10.78 | ||||||||||||||||||||||||||||||
20062 | 11.11 | 0.37 | (0.20 | ) | 0.17 | (0.37 | ) | (0.04 | ) | (0.41 | ) | 10.87 | |||||||||||||||||||||||||||||
20053 | 11.19 | 0.50 | 0.02 | 0.52 | (0.49 | ) | (0.11 | ) | (0.60 | ) | 11.11 | ||||||||||||||||||||||||||||||
20043 | 11.29 | 0.50 | 0.01 | 0.51 | (0.50 | ) | (0.11 | ) | (0.61 | ) | 11.19 | ||||||||||||||||||||||||||||||
20033 | 11.45 | 0.50 | (0.03 | ) | 0.47 | (0.50 | ) | (0.13 | ) | (0.63 | ) | 11.29 | |||||||||||||||||||||||||||||
1 | For the period July 1 to June 30 in the fiscal year indicated. | |
2 | For the period October 1, 2005 to June 30, 2006. Effective in 2006, the fund’s fiscal year-end was changed from September 30 to June 30. All ratios for the period have been annualized, except total return and portfolio turnover. | |
3 | For the period October 1 to September 30 in the year indicated. | |
4 | For the period from October 25, 2002, when the class of shares was first offered, to September 30, 2003. All ratios for the period have been annualized, except total return and portfolio turnover. | |
5 | Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived. |
The accompanying notes are an integral part of the financial statements.
108 First American Funds 2008 Annual Report
Ratio of Net | ||||||||||||||||||||||||||||||||||||
Ratio of | Investment | |||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses | Income | ||||||||||||||||||||||||||||||||||
Ratio of | Investment | to Average | to Average | |||||||||||||||||||||||||||||||||
Net Assets | Expenses | Income | Net Assets | Net Assets | Portfolio | |||||||||||||||||||||||||||||||
Total | End of | to Average | to Average | (Excluding | (Excluding | Turnover | ||||||||||||||||||||||||||||||
Return5 | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | ||||||||||||||||||||||||||||||
4.17 | % | $ | 2,308 | 0.75 | % | 3.05 | % | 1.11 | % | 2.69 | % | 58 | % | |||||||||||||||||||||||
3.22 | 2,410 | 0.75 | 2.94 | 1.08 | 2.61 | 57 | ||||||||||||||||||||||||||||||
1.02 | 3,321 | 0.75 | 2.65 | 1.08 | 2.32 | 22 | ||||||||||||||||||||||||||||||
0.67 | 4,103 | 0.75 | 2.46 | 1.06 | 2.15 | 37 | ||||||||||||||||||||||||||||||
0.90 | 6,329 | 0.75 | 2.55 | 1.05 | 2.25 | 30 | ||||||||||||||||||||||||||||||
4.54 | 6,448 | 0.75 | 2.67 | 1.05 | 2.37 | 54 | ||||||||||||||||||||||||||||||
4.33 | % | $ | 143,985 | 0.60 | % | 3.20 | % | 0.86 | % | 2.94 | % | 58 | % | |||||||||||||||||||||||
3.37 | 161,468 | 0.60 | 3.09 | 0.83 | 2.86 | 57 | ||||||||||||||||||||||||||||||
1.13 | 235,900 | 0.60 | 2.80 | 0.83 | 2.57 | 22 | ||||||||||||||||||||||||||||||
0.83 | 329,647 | 0.60 | 2.62 | 0.81 | 2.41 | 37 | ||||||||||||||||||||||||||||||
1.05 | 419,359 | 0.60 | 2.70 | 0.80 | 2.50 | 30 | ||||||||||||||||||||||||||||||
4.66 | 396,918 | 0.60 | 3.00 | 0.80 | 2.80 | 54 | ||||||||||||||||||||||||||||||
(0.05 | )% | $ | 35,557 | 0.78 | % | 4.28 | % | 1.02 | % | 4.04 | % | 52 | % | |||||||||||||||||||||||
4.16 | 37,760 | 0.95 | 4.08 | 1.03 | 4.00 | 31 | ||||||||||||||||||||||||||||||
1.37 | 36,519 | 0.95 | 4.28 | 1.06 | 4.17 | 13 | ||||||||||||||||||||||||||||||
4.51 | 38,205 | 0.95 | 4.20 | 1.06 | 4.09 | 8 | ||||||||||||||||||||||||||||||
4.45 | 40,156 | 0.95 | 4.18 | 1.05 | 4.08 | 23 | ||||||||||||||||||||||||||||||
4.06 | 42,942 | 0.95 | 4.21 | 1.05 | 4.11 | 23 | ||||||||||||||||||||||||||||||
(0.61 | )% | $ | 3,104 | 1.35 | % | 3.72 | % | 1.43 | % | 3.64 | % | 52 | % | |||||||||||||||||||||||
3.76 | 2,495 | 1.35 | 3.67 | 1.51 | 3.51 | 31 | ||||||||||||||||||||||||||||||
1.06 | 2,210 | 1.35 | 3.87 | 1.81 | 3.41 | 13 | ||||||||||||||||||||||||||||||
4.13 | 2,712 | 1.35 | 3.80 | 1.81 | 3.34 | 8 | ||||||||||||||||||||||||||||||
3.92 | 2,682 | 1.35 | 3.77 | 1.80 | 3.32 | 23 | ||||||||||||||||||||||||||||||
3.67 | 4,880 | 1.35 | 3.81 | 1.80 | 3.36 | 23 | ||||||||||||||||||||||||||||||
0.04 | % | $ | 448,774 | 0.70 | % | 4.36 | % | 0.78 | % | 4.28 | % | 52 | % | |||||||||||||||||||||||
4.42 | 539,360 | 0.70 | 4.32 | 0.78 | 4.24 | 31 | ||||||||||||||||||||||||||||||
1.57 | 455,910 | 0.70 | 4.53 | 0.81 | 4.42 | 13 | ||||||||||||||||||||||||||||||
4.77 | 436,303 | 0.70 | 4.45 | 0.81 | 4.34 | 8 | ||||||||||||||||||||||||||||||
4.71 | 416,651 | 0.70 | 4.43 | 0.80 | 4.33 | 23 | ||||||||||||||||||||||||||||||
4.31 | 460,634 | 0.70 | 4.46 | 0.80 | 4.36 | 23 | ||||||||||||||||||||||||||||||
Notes toFinancial Statements | June 30, 2008, all dollars and shares are rounded to thousands (000) |
1 > | Organization |
Arizona Tax Free Fund, California Intermediate Tax Free Fund, California Tax Free Fund, Colorado Intermediate Tax Free Fund, Colorado Tax Free Fund, Intermediate Tax Free Fund, Minnesota Intermediate Tax Free Fund, Minnesota Tax Free Fund, Missouri Tax Free Fund, Nebraska Tax Free Fund, Ohio Tax Free Fund, Oregon Intermediate Tax Free Fund, Short Tax Free Fund, and Tax Free Fund (each a “fund” and collectively, the “funds”) are mutual funds offered by First American Investment Funds, Inc. (“FAIF”), which is a member of the First American Family of Funds. As of June 30, 2008, FAIF offered 43 funds, including the funds listed above. FAIF is registered under the Investment Company Act of 1940, as amended, as an open-end investment management company. FAIF’s articles of incorporation permit the board of directors to create additional funds in the future. Intermediate Tax Free Fund, Short Tax Free Fund, and Tax Free Fund are each diversified open-end management investment companies. Arizona Tax Free Fund, California Intermediate Tax Free Fund, California Tax Free Fund, Colorado Intermediate Tax Free Fund, Colorado Tax Free Fund, Minnesota Intermediate Tax Free Fund, Minnesota Tax Free Fund, Missouri Tax Free Fund, Nebraska Tax Free Fund, Ohio Tax Free Fund, and Oregon Intermediate Tax Free Fund are each non-diversified open-end management investment companies. Non-diversified funds may invest a large component of their net assets in securities of relatively few issuers.
The funds offer Class A and Class Y shares. Arizona Tax Free Fund, California Tax Free Fund, Colorado Tax Free Fund, Minnesota Tax Free Fund, Missouri Tax Free Fund, Nebraska Tax Free Fund, Ohio Tax Free Fund, and Tax Free Fund also offer Class C shares. Class A shares of Arizona Tax Free Fund, California Tax Free Fund, Colorado Tax Free Fund, Minnesota Tax Free Fund, Missouri Tax Free Fund, Nebraska Tax Free Fund, Ohio Tax Free Fund, and Tax Free Fund are sold with a maximum front-end sales charge of 4.25%. Class A shares of California Intermediate Tax Free Fund, Colorado Intermediate Tax Free Fund, Intermediate Tax Free Fund, Minnesota Intermediate Tax Free Fund, Oregon Intermediate Tax Free Fund, and Short Tax Free Fund are sold with a maximum front-end sales charge of 2.25%. Class C shares may be subject to a contingent deferred sales charge of 1.00% for 12 months. Class Y shares have no sales charge and are offered only to qualifying institutional investors and certain other qualifying accounts.
The funds’ prospectuses provide a description of each fund’s investment objective, principal investment strategies, and principal risks. All classes of shares in a fund have identical voting, dividend, liquidation, and other rights, and the same terms and conditions, except that certain fees and expenses, including distribution and shareholder servicing fees, may differ among classes. Each class has exclusive voting rights on any matters relating to that class’ servicing or distribution arrangements.
2 > | Summary of Significant Accounting Policies |
The significant accounting policies followed by the funds are as follows:
SECURITY VALUATIONS – Security valuations for the funds’ investments are furnished by an independent pricing service that has been approved by the funds’ board of directors. Debt obligations exceeding 60 days to maturity are valued by an independent pricing service. The pricing service may employ methodologies that utilize actual market transactions, broker-dealer supplied valuations, or other formula-driven valuation techniques. These techniques generally consider such factors as yields or prices of bonds of comparable quality, type of issue, coupon, maturity, ratings, and general market conditions. Securities for which prices are not available from an independent pricing service, but where an active market exists, are valued using market quotations obtained from one or more dealers that make markets in the securities or from a widely-used quotation system. Debt obligations with 60 days or less remaining until maturity will be valued at their amortized cost, which approximates market value. Investments in open-end 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, Inc. (“FAF Advisors”), on the day the valuation is made. If there were no sales on that day, futures and options on futures will be valued at the last reported bid price. Options on securities, indices, and currencies traded on Nasdaq or listed on a stock exchange, whether domestic or foreign, are valued at the last sale price on Nasdaq or on any exchange on the day the valuation is made. If there were no sales on that day, the options will be valued at the last sale price on the previous valuation date. Last sale prices are obtained from an independent pricing service. Forward contracts (other than foreign currency forward contracts), swaps, and over-the-counter options on securities, indices, and currencies are valued at the quotations received from an independent pricing service, if available. Foreign currency forward contracts are valued at the current day’s interpolated foreign exchange rate, as calculated using the current day’s exchange rate, and the 30-, 60-, 90-, 180-, and 360-day forward rates provided by an independent pricing service.
When market quotations are not readily available, securities are valued at fair value as determined in good faith by procedures established and approved by the funds’ board of directors. Some of the factors which may be considered in determining fair value are fundamental analytical data relating to the investment; the nature and duration of any restrictions on disposition; security’s
110 First American Funds 2008 Annual Report
previous price and/or trading in similar securities of the same issuer or comparable companies; information from broker-dealers; and an evaluation of the forces that influence the market in which the securities are purchased and sold. If events occur that materially affect the value of securities between the close of trading in those securities and the close of regular trading on the New York Stock Exchange, the securities will be valued at fair value. The use of fair value pricing by a fund may cause the net asset value of its shares to differ significantly from net asset value that would be calculated without regard to such considerations. At June 30, 2008, 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. Interest income, including amortization of bond premium and discount, is recorded on an accrual basis. Security gains and losses are determined on the basis of identified cost, which is the same basis used for federal income tax purposes. The resulting gain/loss is calculated as the difference between the sales price and the underlying cost of the security on the transaction date.
DISTRIBUTIONS TO SHAREHOLDERS – Distributions from net investment income are declared daily and are payable in cash or reinvested in additional shares of the fund at the net asset value on the last business day of each month. Any net realized capital gains on sales of a fund’s securities are distributed to shareholders at least annually.
FEDERAL TAXES – Each fund is treated as a separate taxable entity. Each fund intends to continue to qualify as a regulated investment company as provided in Subchapter M of the Internal Revenue Code, as amended, and to distribute all taxable income, if any, to its shareholders. Accordingly, no provision for federal income or excise taxes is required.
FASB Interpretation No. 48, “Accounting for Uncertainty in Income Taxes” (“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. As of June 30, 2008, the funds did not have any tax positions that did not meet the “more-likely-than-not” threshold of being sustained by the applicable tax authority. Generally, tax authorities can examine all the tax returns filed for the last three years.
Net investment income and net realized gains (losses) may differ for financial statement and tax purposes because of temporary or permanent book/tax differences. These differences are primarily due to book and tax differences for straddle loss deferrals, classification of dividends paid by the funds, and tax mark-to-market adjustments for certain derivatives in accordance with IRC Section 1256. To the extent these differences are permanent, reclassifications are made to the appropriate capital accounts in the fiscal period that the differences arise.
On the Statements of Assets and Liabilities, the following reclassifications were made:
Accumulated | Undistributed | |||||||
Net Realized | Net Investment | |||||||
Fund | Gain | Income | ||||||
Ohio Tax Free Fund | $ | 8 | $ | (8 | ) | |||
The character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. In addition, due to the timing of dividend distributions, the fiscal year in which the amounts are distributed may differ from the year that the income or realized gains (losses) were recorded by the fund. The distributions paid during the fiscal years ended June 30, 2008 and June 30, 2007 (adjusted by dividends payable as of June 30, 2008 and June 30, 2007) were as follows:
June 30, 2008 | ||||||||||||||||
Tax Exempt | Ordinary | Long Term | ||||||||||||||
Fund | Income | Income | Gain | Total | ||||||||||||
Arizona Tax Free Fund | $ | 1,257 | $ | 4 | $ | 86 | $ | 1,347 | ||||||||
California Intermediate Tax Free Fund | 2,203 | 34 | 33 | 2,270 | ||||||||||||
California Tax Free Fund | 1,706 | 51 | 84 | 1,841 | ||||||||||||
Colorado Intermediate Tax Free Fund | 1,865 | 26 | 191 | 2,082 | ||||||||||||
Colorado Tax Free Fund | 1,003 | 6 | 75 | 1,084 | ||||||||||||
Intermediate Tax Free Fund | 25,493 | 284 | 1,841 | 27,618 | ||||||||||||
Minnesota Intermediate Tax Free Fund | 7,834 | 29 | 501 | 8,364 | ||||||||||||
Minnesota Tax Free Fund | 7,300 | 59 | 875 | 8,234 | ||||||||||||
Missouri Tax Free Fund | 6,574 | 81 | 327 | 6,982 | ||||||||||||
Nebraska Tax Free Fund | 1,629 | 11 | 178 | 1,818 | ||||||||||||
Ohio Tax Free Fund | 1,819 | 6 | 129 | 1,954 | ||||||||||||
Oregon Intermediate Tax Free Fund | 4,655 | 33 | 54 | 4,742 | ||||||||||||
Short Tax Free Fund | 5,139 | — | — | 5,139 | ||||||||||||
Tax Free Fund | 23,113 | 28 | 2,968 | 26,109 | ||||||||||||
First American Funds 2008 Annual Report 111
Notes toFinancial Statements | June 30, 2008, all dollars and shares are rounded to thousands (000) |
June 30, 2007 | ||||||||||||||||
Tax Exempt | Ordinary | Long Term | ||||||||||||||
Fund | Income | Income | Gain | Total | ||||||||||||
Arizona Tax Free Fund | $ | 1,082 | $ | 4 | $ | 143 | $ | 1,229 | ||||||||
California Intermediate Tax Free Fund | 2,090 | 48 | 254 | 2,392 | ||||||||||||
California Tax Free Fund | 1,465 | 4 | 115 | 1,584 | ||||||||||||
Colorado Intermediate Tax Free Fund | 1,628 | 35 | 296 | 1,959 | ||||||||||||
Colorado Tax Free Fund | 994 | 7 | 176 | 1,177 | ||||||||||||
Intermediate Tax Free Fund | 24,213 | 218 | 625 | 25,056 | ||||||||||||
Minnesota Intermediate Tax Free Fund | 7,247 | 9 | 1,016 | 8,272 | ||||||||||||
Minnesota Tax Free Fund | 6,683 | 30 | 429 | 7,142 | ||||||||||||
Missouri Tax Free Fund | 5,828 | — | 1,173 | 7,001 | ||||||||||||
Nebraska Tax Free Fund | 1,547 | — | 182 | 1,729 | ||||||||||||
Ohio Tax Free Fund | 1,548 | 17 | 69 | 1,634 | ||||||||||||
Oregon Intermediate Tax Free Fund | 4,260 | 8 | 514 | 4,782 | ||||||||||||
Short Tax Free Fund | 5,816 | — | — | 5,816 | ||||||||||||
Tax Free Fund | 21,441 | 90 | 4,241 | 25,772 | ||||||||||||
As of June 30, 2008, the components of accumulated earnings (deficit) on a tax basis were as follows:
Accumulated | Total | |||||||||||||||||||||||||||
Undistributed | Undistributed | Undistributed | Capital and | Unrealized | Other | Accumulated | ||||||||||||||||||||||
Ordinary | Tax Exempt | Long Term | Post-October | Appreciation | Accumulated | Earnings | ||||||||||||||||||||||
Fund | Income | Income | Capital Gains | Losses | (Depreciation) | Gains | (Deficit) | |||||||||||||||||||||
Arizona Tax Free Fund | $ | — | $ | 97 | $ | — | $ | (85 | ) | $ | (380 | ) | $ | 1 | $ | (367 | ) | |||||||||||
California Intermediate Tax Free Fund | 164 | 183 | 143 | — | 59 | 549 | ||||||||||||||||||||||
California Tax Free Fund | — | 129 | — | (1 | ) | (251 | ) | (123 | ) | |||||||||||||||||||
Colorado Intermediate Tax Free Fund | 105 | 159 | 13 | — | 519 | 796 | ||||||||||||||||||||||
Colorado Tax Free Fund | 3 | 82 | 138 | — | (141 | ) | 82 | |||||||||||||||||||||
Intermediate Tax Free Fund | 307 | 2,457 | 200 | — | 9,328 | 12,292 | ||||||||||||||||||||||
Minnesota Intermediate Tax Free Fund | 5 | 585 | 325 | — | 2,020 | 2,935 | ||||||||||||||||||||||
Minnesota Tax Free Fund | — | 340 | 505 | — | (2,520 | ) | (1,675 | ) | ||||||||||||||||||||
Missouri Tax Free Fund | 63 | 596 | 273 | — | (1,786 | ) | (854 | ) | ||||||||||||||||||||
Nebraska Tax Free Fund | — | 136 | — | (168 | ) | (242 | ) | (274 | ) | |||||||||||||||||||
Ohio Tax Free Fund | — | 160 | — | (25 | ) | (446 | ) | 2 | (309 | ) | ||||||||||||||||||
Oregon Intermediate Tax Free Fund | 4 | 434 | — | (99 | ) | 480 | 3 | 822 | ||||||||||||||||||||
Short Tax Free Fund | — | 296 | — | (1,847 | ) | (30 | ) | 70 | (1,511 | ) | ||||||||||||||||||
Tax Free Fund | 10 | 1,923 | — | (715 | ) | (10,737 | ) | (9,519 | ) | |||||||||||||||||||
The difference between book and tax basis unrealized appreciation (depreciation) is primarily due to the tax deferral of losses deferred due to straddles.
As of June 30, 2008, the following funds had capital loss carryforwards, which, if not offset by subsequent capital gains, will expire on the fund’s fiscal year-ends as follows:
Expiration Year | ||||||||||||||||||||||||||||||||||||
Fund | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | Total | |||||||||||||||||||||||||||
Arizona Tax Free Fund | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 33 | $ | 33 | ||||||||||||||||||
California Tax Free Fund | — | — | — | — | — | — | — | 1 | 1 | |||||||||||||||||||||||||||
Nebraska Tax Free Fund | — | — | — | — | — | — | — | 25 | 25 | |||||||||||||||||||||||||||
Oregon Intermediate Tax Free Fund | — | — | — | — | — | — | — | 38 | 38 | |||||||||||||||||||||||||||
Short Tax Free Fund | — | — | — | — | 153 | 550 | 1,144 | — | 1,847 | |||||||||||||||||||||||||||
Certain funds incurred a loss for tax purposes for the period from November 1, 2007 to June 30, 2008. As permitted by tax regulations, the funds intend to elect to defer and treat these losses as arising in the fiscal year ending June 30, 2009. The following funds had deferred losses:
Fund | Amount | |||
Arizona Tax Free Fund | $ | 52 | ||
Nebraska Tax Free Fund | 143 | |||
Ohio Tax Free Fund | 25 | |||
Oregon Intermediate Tax Free Fund | 61 | |||
Tax Free Fund | 715 | |||
112 First American Funds 2008 Annual Report
FUTURES TRANSACTIONS – In order to protect against changes in the market and to maintain sufficient liquidity to meet redemption requests, each fund may enter into futures contracts. Upon entering into a futures contract, the fund is required to deposit cash or pledge U.S. government securities. The margin required for a futures contract is set by the exchange on which the contract is traded. Subsequent payments, which are dependent on the daily fluctuations in the value of the underlying security or securities, are made or received by the fund each day (daily variation margin) and are recorded as unrealized gains (losses) until the contract is closed. When the contract is closed, the fund records a realized gain (loss) equal to the difference between the proceeds from (or cost of) the closing transaction and the fund’s basis in the contract.
Risks of entering into futures contracts, in general, include the possibility that there will not be a perfect price correlation between the futures contracts and the underlying securities. Second, it is possible that a lack of liquidity for futures contracts could exist in the secondary market, resulting in an inability to close a futures position prior to its maturity date. Third, the purchase of a futures contract involves the risk that a fund could lose more than the original margin deposit required to initiate a futures transaction. These contracts involve market risk in excess of the amount reflected in the fund’s Statement of Assets and Liabilities. Unrealized gains (losses) on outstanding positions in futures contracts held at the close of the year will be recognized as capital gains (losses) for federal income tax purposes. At June 30, 2008, Arizona Tax Free Fund, Ohio Tax Free Fund, Oregon Intermediate Tax Free Fund, and Short Tax Free Fund had outstanding futures contracts.
SECURITIES PURCHASED ON A WHEN-ISSUED BASIS – Delivery and payment for securities that have been purchased by a fund on a when-issued or forward-commitment basis can take place up to a month or more after the transaction. Such securities do not earn interest, are subject to market fluctuations, and may increase or decrease in value prior to delivery. Each fund segregates assets with a market value equal to or greater than the amount of its purchase commitments. The purchase of securities on a when-issued or forward-commitment basis may increase the volatility of a fund’s net asset value if the fund makes such purchases while remaining substantially fully invested. At June 30, 2008, the following funds had outstanding commitments to purchase securities on a when-issued or forward-commitment basis:
Fund | Cost | |||
Intermediate Tax Free Fund | $ | 6,742 | ||
Minnesota Intermediate Tax Free Fund | 1,340 | |||
Missouri Tax Free Fund | 1,339 | |||
Nebraska Tax Free Fund | 986 | |||
Ohio Tax Free Fund | 1,455 | |||
Tax Free Fund | 3,403 | |||
ILLIQUID OR RESTRICTED SECURITIES – A security may be considered illiquid if it lacks a readily available market. Securities are generally considered liquid if they can be sold or disposed of in the ordinary course of business within seven days at approximately the price at which the security is valued by the fund. Illiquid securities may be valued under methods approved by the funds’ board of directors as reflecting fair value. Each fund intends to invest no more than 15% of its net assets (determined at the time of purchase and reviewed periodically) in illiquid securities. Certain restricted securities may be considered illiquid. Restricted securities are often purchased in private placement transactions, are not registered under the Securities Act of 1933, and may have contractual restrictions on resale. Certain restricted securities eligible for resale to qualified institutional investors, including Rule 144A securities, are not subject to the limitation on a fund’s investment in illiquid securities if they are determined to be liquid in accordance with procedures adopted by the funds’ board of directors. At June 30, 2008, no fund had investments in illiquid securities.
INVERSE FLOATERS – As part of their investment strategy, the funds may invest in certain securities for which the potential income return is inversely related to changes in a floating interest rate (“inverse floaters”). In general, income on inverse floaters will decrease when short-term interest rates increase and increase when short-term interest rates decrease. Inverse floaters may be characterized as derivative securities and may subject a fund to the risks of reduced or eliminated interest payments and losses of invested principal. In addition, inverse floaters have the effect of providing investment leverage and, as a result, the market values of such securities will generally be more volatile than those of fixed-rate, tax-exempt securities. To the extent the funds invest in inverse floaters, the net asset value of the funds’ shares may be more volatile than if the funds did not invest in such securities. As of and for the year ended June 30, 2008, no fund had investments in inverse floaters.
EXPENSES – Expenses that are directly related to one of the funds are charged directly to that fund. Other operating expenses are allocated to the funds on several bases, including evenly across all funds, allocated based on relative net assets of all funds within the First American Family of Funds, or a combination of both methods. Class specific expenses, such as distribution fees and shareholder servicing fees, are borne by that class. Income, other expenses, and realized and unrealized gains and losses of a fund are allocated to each respective class in proportion to the relative net assets of each class.
INTERFUND LENDING PROGRAM – Pursuant to an exemptive order issued by the Securities and Exchange Commission, the funds, along with other registered investment companies in the First American Family of Funds, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating funds.
First American Funds 2008 Annual Report 113
Notes toFinancial Statements June 30, 2008, all dollars and shares are rounded to thousands (000)
The funds did not have any interfund lending transactions during the fiscal year ended June 30, 2008.
DEFERRED COMPENSATION PLAN – Under a Deferred Compensation Plan (the “Plan”), non-interested directors of the First American Family of Funds may participate and elect to defer receipt of part or all of their annual compensation. Deferred amounts are treated as though equivalent dollar amounts had been invested in shares of selected open-end First American Funds as designated by the board of directors. All amounts in the Plan are 100% vested and accounts under the Plan are obligations of the funds. Deferred amounts remain in the funds until distributed in accordance with the Plan.
USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS – The preparation of financial statements, in conformity with U.S. generally accepted accounting principles, requires management to make estimates and assumptions that affect the reported amounts of net assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported results of operations during the reporting period. Actual results could differ from those estimates.
3 > | Fees and Expenses |
INVESTMENT ADVISORY FEES – Pursuant to an investment advisory agreement (the “Agreement”), FAF Advisors manages each fund’s assets and furnishes related office facilities, equipment, research, and personnel. The Agreement requires each fund to pay FAF Advisors a monthly fee equal, on an annual basis, to 0.50% of the fund’s average daily net assets. FAF Advisors has agreed to waive fees and reimburse other fund expenses at least through June 30, 2009, so that total fund operating expenses, as a percentage of average daily net assets, do not exceed the following amounts:
Share Class | ||||||||||||||
Fund | A | C | Y | |||||||||||
Arizona Tax Free Fund | 0.75 | % | 1.15 | % | 0.50 | % | ||||||||
California Intermediate Tax Free Fund | 0.70 | * | NA | 0.70 | ||||||||||
California Tax Free Fund | 0.65 | * | 1.15 | 0.50 | ||||||||||
Colorado Intermediate Tax Free Fund | 0.85 | NA | 0.70 | |||||||||||
Colorado Tax Free Fund | 0.75 | 1.15 | 0.50 | |||||||||||
Intermediate Tax Free Fund | 0.75 | * | NA | 0.70 | ||||||||||
Minnesota Intermediate Tax Free Fund | 0.75 | * | NA | 0.70 | ||||||||||
Minnesota Tax Free Fund | 0.85 | * | 1.35 | 0.70 | ||||||||||
Missouri Tax Free Fund | 0.95 | 1.35 | 0.70 | |||||||||||
Nebraska Tax Free Fund | 0.75 | 1.15 | 0.50 | |||||||||||
Ohio Tax Free Fund | 0.75 | 1.15 | 0.50 | |||||||||||
Oregon Intermediate Tax Free Fund | 0.85 | NA | 0.70 | |||||||||||
Short Tax Free Fund | 0.75 | NA | 0.60 | |||||||||||
Tax Free Fund | 0.75 | * | 1.35 | 0.70 | ||||||||||
NA = Not Applicable
* | Prior to September 1, 2007, FAF Advisors had contractually agreed to waive fees and reimburse other fund expenses so that the total annual Class A operating expenses, after waivers by the advisor and the distributor, did not exceed 0.85%, 0.75%, 0.85%, 0.85%, 0.95%, and 0.95% of average daily net assets for California Intermediate Tax Free Fund, California Tax Free Fund, Intermediate Tax Free Fund, Minnesota Intermediate Tax Free Fund, Minnesota Tax Free Fund, and Tax Free Fund, respectively. |
The funds may invest in related money market funds that are series of First American Funds, Inc., subject to certain limitations. In order to avoid the payment of duplicative investment advisory fees to FAF Advisors, which acts as the investment advisor to both the investing funds and the related money market funds, FAF Advisors will reimburse each investing fund an amount equal to that portion of FAF Advisors’ investment advisory fee received from the related money market funds that is attributable to the assets of the investing fund. This reimbursement is included in “Fee waivers” in the Statement of Operations.
ADMINISTRATION FEES – FAF Advisors serves as the funds’ administrator pursuant to an administration agreement between FAF Advisors and the funds. U.S. Bancorp Fund Services, LLC (“USBFS”) serves as sub-administrator pursuant to a sub-administration agreement between USBFS and FAF Advisors. FAF Advisors is a subsidiary of U.S. Bank National Association (“U.S. Bank”). Both U.S. Bank and USBFS are direct subsidiaries of U.S. Bancorp. Under the administration agreement, FAF Advisors is compensated to provide, or compensates other entities to provide, services to the funds. These services include various legal, oversight, and administrative services and accounting services. The funds pay FAF Advisors administration fees, which are calculated daily and paid monthly, equal to each fund’s pro rata share of an amount equal, on an annual basis, to 0.25% of the aggregate average daily net assets of all open-end mutual funds in the First American Family of Funds up to $8 billion, 0.235% on the next $17 billion of the aggregate average daily net assets, 0.22% on the next $25 billion of the aggregate average daily net assets, and 0.20% of the aggregate average daily net assets in excess of $50 billion. All fees paid to the sub-administrator are paid from the administration fee. In addition to these fees, the funds may reimburse FAF Advisors and the sub-administrator for any out-of-pocket expenses incurred in providing administration services.
TRANSFER AGENT FEES – USBFS serves as the funds’ transfer agent pursuant to a transfer agent agreement with FAIF. The funds are charged transfer agent fees on a per shareholder account basis, subject to a minimum fee per share class. These fees are charged to each fund based upon the number of accounts within that fund. In addition to these fees, the funds may reimburse USBFS for out-of-pocket expenses incurred in providing transfer agent services.
CUSTODIAN FEES – U.S. Bank serves as the custodian for each fund pursuant to a custodian agreement with FAIF. The custodian fee charged for each fund is equal to an annual rate of 0.005% of average daily net assets. All fees are computed daily and paid monthly.
Under the custodian agreement, interest earned on uninvested cash balances is used to reduce a portion of
114 First American Funds 2008 Annual Report
each fund’s custodian expenses. These credits, if any, are disclosed as “Indirect payments from custodian” in the Statements of Operations. Conversely, the custodian charges a fee for any cash overdrafts incurred, which increases the fund’s custodian expenses.
For the fiscal year ended June 30, 2008, custodian fees were increased as a result of overdrafts and decreased as a result of interest earned as follows:
Fund | Increased | Decreased | ||||||
Intermediate Tax Free Fund | — | 1 | ||||||
Minnesota Tax Free Fund | 1 | — | ||||||
Missouri Tax Free Fund | 1 | — | ||||||
Nebraska Tax Free Fund | 1 | — | ||||||
Tax Free Fund | 1 | 1 | ||||||
DISTRIBUTION AND SHAREHOLDER SERVICING FEES – Quasar Distributors, LLC (“Quasar”), a subsidiary of U.S. Bancorp, serves as the distributor of the funds pursuant to a distribution agreement with FAIF. Under the distribution agreement, and pursuant to a plan adopted by each fund under Rule 12b-1 of the Investment Company Act, each of the funds pays Quasar a monthly distribution and/or shareholder servicing fee equal to an annual rate of 0.25% and 0.65% of each fund’s average daily net assets of Class A and Class C shares, respectively. No distribution or shareholder servicing fees are paid by Class Y shares. These fees may be used by Quasar to provide compensation for sales support, distribution activities, and/or shareholder servicing activities.
Quasar is currently waiving a portion of its 12b-1 fees for Class A shares, limiting its fees to 0.15% of average daily net assets for California Intermediate Tax Free Fund, Colorado Intermediate Tax Free Fund, Intermediate Tax Free Fund, Minnesota Intermediate Tax Free Fund, Oregon Intermediate Tax Free Fund, and Short Tax Free Fund. Effective September 1, 2007, FAF Advisors is waiving an additional amount of Class A 12b-1 fees equal to 0.15%, 0.10%, 0.10%, 0.10%, 0.10%, and 0.20% of average daily net assets of Class A shares for California Intermediate Tax Free Fund, California Tax Free Fund, Intermediate Tax Free Fund, Minnesota Intermediate Tax Free Fund, Minnesota Tax Free Fund, and Tax Free Fund, respectively.
For the fiscal year ended June 30, 2008, total distribution and shareholder servicing fees waived by Quasar for the funds included in this annual report were as follows:
Fund | Amount | |||
California Intermediate Tax Free Fund | $ | 6 | ||
Colorado Intermediate Tax Free Fund | 6 | |||
Intermediate Tax Free Fund | 28 | |||
Minnesota Intermediate Tax Free Fund | 21 | |||
Oregon Intermediate Tax Free Fund | 7 | |||
Short Tax Free Fund | 2 | |||
Under these distribution and shareholder servicing agreements, the following amounts were retained by affiliates of FAF Advisors for the fiscal year ended June 30, 2008:
Fund | Amount | |||
Arizona Tax Free Fund | $ | 2 | ||
California Intermediate Tax Free Fund | 5 | |||
California Tax Free Fund | 30 | |||
Colorado Intermediate Tax Free Fund | 5 | |||
Colorado Tax Free Fund | 7 | |||
Intermediate Tax Free Fund | 23 | |||
Minnesota Intermediate Tax Free Fund | 15 | |||
Minnesota Tax Free Fund | 101 | |||
Missouri Tax Free Fund | 53 | |||
Nebraska Tax Free Fund | 8 | |||
Ohio Tax Free Fund | 2 | |||
Oregon Intermediate Tax Free Fund | 7 | |||
Short Tax Free Fund | 3 | |||
Tax Free Fund | 34 | |||
OTHER FEES AND EXPENSES – In addition to the investment advisory fees, administration fees, transfer agent fees, custodian fees, and distribution and shareholder servicing fees, each fund is responsible for paying other operating expenses, including: legal, auditing, registration fees, postage and printing of shareholder reports, fees and expenses of independent directors, insurance, and other miscellaneous expenses. For the fiscal year ended June 30, 2008, legal fees and expenses of $67 were paid to a law firm of which an Assistant Secretary of the funds is a partner.
CONTINGENT DEFERRED SALES CHARGES – A contingent deferred sales charge (“CDSC”) of 1.00% is imposed on redemptions made in the Class C shares for the first 12 months. The CDSC is imposed on the value of the purchased shares or the value at the time of redemption, whichever is less.
For the fiscal year ended June 30, 2008, total front-end sales charges and CDSCs retained by affiliates of FAF Advisors for distributing the funds’ shares were as follows:
Fund | Amount | |||
Arizona Tax Free Fund | $ | 1 | ||
California Intermediate Tax Free Fund | 3 | |||
California Tax Free Fund | 78 | |||
Colorado Intermediate Tax Free Fund | 4 | |||
Intermediate Tax Free Fund | 4 | |||
Minnesota Intermediate Tax Free Fund | 69 | |||
Minnesota Tax Free Fund | 203 | |||
Missouri Tax Free Fund | 16 | |||
Nebraska Tax Free Fund | 12 | |||
Ohio Tax Free Fund | 4 | |||
Oregon Intermediate Tax Free Fund | 4 | |||
Tax Free Fund | 18 | |||
First American Funds 2008 Annual Report 115
Notes toFinancial Statements June 30, 2008, all dollars and shares are rounded to thousands (000)
4 > | Capital Share Transactions |
FAIF has 362 billion shares of $0.0001 par value capital stock authorized. Capital share transactions for the funds were as follows:
California | ||||||||||||||||||||||||||||
Arizona | Intermediate | California | ||||||||||||||||||||||||||
Tax Free Fund | Tax Free Fund | Tax Free Fund | ||||||||||||||||||||||||||
Year | Year | Year | Year | Year | Year | |||||||||||||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | |||||||||||||||||||||||
6/30/08 | 6/30/07 | 6/30/08 | 6/30/07 | 6/30/08 | 6/30/07 | |||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||||||
Shares issued | 34 | 43 | 127 | 317 | 266 | 183 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | 9 | 11 | 10 | 11 | 32 | 24 | ||||||||||||||||||||||
Shares redeemed | (175 | ) | (112 | ) | (308 | ) | (50 | ) | (206 | ) | (155 | ) | ||||||||||||||||
Total Class A transactions | (132 | ) | (58 | ) | (171 | ) | 278 | 92 | 52 | |||||||||||||||||||
Class C: | ||||||||||||||||||||||||||||
Shares issued | 28 | 24 | — | — | 139 | 41 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | 3 | 4 | — | — | 4 | 5 | ||||||||||||||||||||||
Shares redeemed | (42 | ) | (10 | ) | — | — | (49 | ) | (236 | ) | ||||||||||||||||||
Total Class C transactions | (11 | ) | 18 | — | — | 94 | (190 | ) | ||||||||||||||||||||
Class Y: | ||||||||||||||||||||||||||||
Shares issued | 369 | 506 | 1,020 | 605 | 1,780 | 538 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | 16 | 14 | 3 | 6 | 8 | 6 | ||||||||||||||||||||||
Shares redeemed | (496 | ) | (168 | ) | (989 | ) | (468 | ) | (1,203 | ) | (267 | ) | ||||||||||||||||
Total Class Y transactions | (111 | ) | 352 | 34 | 143 | 585 | 277 | |||||||||||||||||||||
Net increase (decrease) in capital shares | (254 | ) | 312 | (137 | ) | 421 | 771 | 139 | ||||||||||||||||||||
Colorado | ||||||||||||||||||||||||||||
Intermediate | Colorado | Intermediate | ||||||||||||||||||||||||||
Tax Free Fund | Tax Free Fund | Tax Free Fund | ||||||||||||||||||||||||||
Year | Year | Year | Year | Year | Year | |||||||||||||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | |||||||||||||||||||||||
6/30/08 | 6/30/07 | 6/30/08 | 6/30/07 | 6/30/08 | 6/30/07 | |||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||||||
Shares issued | 117 | 39 | 59 | 88 | 302 | 278 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | 20 | 25 | 23 | 38 | 85 | 87 | ||||||||||||||||||||||
Shares redeemed | (185 | ) | (327 | ) | (344 | ) | (91 | ) | (559 | ) | (630 | ) | ||||||||||||||||
Total Class A transactions | (48 | ) | (263 | ) | (262 | ) | 35 | (172 | ) | (265 | ) | |||||||||||||||||
Class C: | ||||||||||||||||||||||||||||
Shares issued | — | — | 41 | 15 | — | — | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | — | — | 10 | 12 | — | — | ||||||||||||||||||||||
Shares redeemed | — | — | (45 | ) | (35 | ) | — | — | ||||||||||||||||||||
Total Class C transactions | — | — | 6 | (8 | ) | — | — | |||||||||||||||||||||
Class Y: | ||||||||||||||||||||||||||||
Shares issued | 1,630 | 738 | 735 | 624 | 20,697 | 9,332 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | 5 | 6 | 3 | 5 | 249 | 214 | ||||||||||||||||||||||
Shares redeemed | (656 | ) | (546 | ) | (463 | ) | (308 | ) | (13,086 | ) | (13,449 | ) | ||||||||||||||||
Total Class Y transactions | 979 | 198 | 275 | 321 | 7,860 | (3,903 | ) | |||||||||||||||||||||
Net increase (decrease) in capital shares | 931 | (65 | ) | 19 | 348 | 7,688 | (4,168 | ) | ||||||||||||||||||||
Minnesota | ||||||||||||||||||||||||||||
Intermediate | Minnesota | Missouri | ||||||||||||||||||||||||||
Tax Free Fund | Tax Free Fund | Tax Free Fund | ||||||||||||||||||||||||||
Year | Year | Year | Year | Year | Year | |||||||||||||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | |||||||||||||||||||||||
6/30/08 | 6/30/07 | 6/30/08 | 6/30/07 | 6/30/08 | 6/30/07 | |||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||||||
Shares issued | 1,028 | 84 | 2,021 | 1,969 | 64 | 207 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | 51 | 60 | 286 | 249 | 43 | 48 | ||||||||||||||||||||||
Shares redeemed | (967 | ) | (679 | ) | (2,328 | ) | (1,676 | ) | (205 | ) | (421 | ) | ||||||||||||||||
Total Class A transactions | 112 | (535 | ) | (21 | ) | 542 | (98 | ) | (166 | ) | ||||||||||||||||||
Class C: | ||||||||||||||||||||||||||||
Shares issued | — | — | 834 | 481 | — | 25 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | — | — | 47 | 29 | 2 | 1 | ||||||||||||||||||||||
Shares redeemed | — | — | (265 | ) | (152 | ) | (10 | ) | — | |||||||||||||||||||
Total Class C transactions | — | — | 616 | 358 | (8 | ) | 26 | |||||||||||||||||||||
Class Y: | ||||||||||||||||||||||||||||
Shares issued | 3,918 | 2,454 | 1,769 | 1,485 | 3,466 | 1,796 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | 22 | 32 | 20 | 19 | 15 | 23 | ||||||||||||||||||||||
Shares redeemed | (3,082 | ) | (3,077 | ) | (2,635 | ) | (809 | ) | (2,542 | ) | (2,443 | ) | ||||||||||||||||
Total Class Y transactions | 858 | (591 | ) | (846 | ) | 695 | 939 | (624 | ) | |||||||||||||||||||
Net increase (decrease) in capital shares | 970 | (1,126 | ) | (251 | ) | 1,595 | 833 | (764 | ) | |||||||||||||||||||
116 First American Funds 2008 Annual Report
Oregon | ||||||||||||||||||||||||||||
Nebraska | Ohio | Intermediate | ||||||||||||||||||||||||||
Tax Free Fund | Tax Free Fund | Tax Free Fund | ||||||||||||||||||||||||||
Year | Year | Year | Year | Year | Year | |||||||||||||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | |||||||||||||||||||||||
6/30/08 | 6/30/07 | 6/30/08 | 6/30/07 | 6/30/08 | 6/30/07 | |||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||||||
Shares issued | 59 | 63 | 15 | 34 | 77 | 105 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | 17 | 16 | 1 | 1 | 13 | 20 | ||||||||||||||||||||||
Shares redeemed | (199 | ) | (60 | ) | (32 | ) | (39 | ) | (285 | ) | (280 | ) | ||||||||||||||||
Total Class A transactions | (123 | ) | 19 | (16 | ) | (4 | ) | (195 | ) | (155 | ) | |||||||||||||||||
Class C: | ||||||||||||||||||||||||||||
Shares issued | 62 | 40 | 7 | — | — | — | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | 4 | 3 | — | — | — | — | ||||||||||||||||||||||
Shares redeemed | (38 | ) | (36 | ) | — | (2 | ) | — | — | |||||||||||||||||||
Total Class C transactions | 28 | 7 | 7 | (2 | ) | — | — | |||||||||||||||||||||
Class Y: | ||||||||||||||||||||||||||||
Shares issued | 393 | 606 | 1,203 | 690 | 2,658 | 1,281 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | 11 | 11 | 29 | 28 | 12 | 35 | ||||||||||||||||||||||
Shares redeemed | (624 | ) | (497 | ) | (530 | ) | (569 | ) | (1,440 | ) | (1,455 | ) | ||||||||||||||||
Total Class Y transactions | (220 | ) | 120 | 702 | 149 | 1,230 | (139 | ) | ||||||||||||||||||||
Net increase (decrease) in capital shares | (315 | ) | 146 | 693 | 143 | 1,035 | (294 | ) | ||||||||||||||||||||
Short | ||||||||||||||||||||
Tax Free Fund | Tax Free Fund | |||||||||||||||||||
Year | Year | Year | Year | |||||||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||||||
6/30/08 | 6/30/07 | 6/30/08 | 6/30/07 | |||||||||||||||||
Class A: | ||||||||||||||||||||
Shares issued | 25 | 109 | 434 | 677 | ||||||||||||||||
Shares issued in lieu of cash distributions | 7 | 8 | 116 | 118 | ||||||||||||||||
Shares redeemed | (44 | ) | (212 | ) | (590 | ) | (651 | ) | ||||||||||||
Total Class A transactions | (12 | ) | (95 | ) | (40 | ) | 144 | |||||||||||||
Class C: | ||||||||||||||||||||
Shares issued | — | — | 112 | 48 | ||||||||||||||||
Shares issued in lieu of cash distributions | — | — | 5 | 6 | ||||||||||||||||
Shares redeemed | — | — | (46 | ) | (25 | ) | ||||||||||||||
Total Class C transactions | — | — | 71 | 29 | ||||||||||||||||
Class Y: | ||||||||||||||||||||
Shares issued | 5,089 | 2,180 | 10,737 | 14,149 | ||||||||||||||||
Shares issued in lieu of cash distributions | 27 | 41 | 150 | 166 | ||||||||||||||||
Shares redeemed | (7,044 | ) | (9,940 | ) | (17,212 | ) | (6,220 | ) | ||||||||||||
Total Class Y transactions | (1,928 | ) | (7,719 | ) | (6,325 | ) | 8,095 | |||||||||||||
Net increase (decrease) in capital shares | (1,940 | ) | (7,814 | ) | (6,294 | ) | 8,268 | |||||||||||||
Each fund reserves the right to pay part or all of the proceeds from a redemption request in a proportionate share of readily marketable securities in the fund instead of cash.
5 > Investment Security Transactions
During the fiscal year ended June 30, 2008, purchases of securities and proceeds from sales of securities, other than government securities and temporary investments in short-term securities, were as follows:
Fund | Purchases | Sales | ||||||
Arizona Tax Free Fund | $ | 8,208 | $ | 9,170 | ||||
California Intermediate Tax Free Fund | 13,698 | 18,656 | ||||||
California Tax Free Fund | 24,758 | 17,397 | ||||||
Colorado Intermediate Tax Free Fund | 17,360 | 9,598 | ||||||
Colorado Tax Free Fund | 10,905 | 11,961 | ||||||
Intermediate Tax Free Fund | 161,485 | 112,318 | ||||||
Minnesota Intermediate Tax Free Fund | 34,428 | 28,308 | ||||||
Minnesota Tax Free Fund | 61,884 | 61,717 | ||||||
Missouri Tax Free Fund | 39,326 | 31,838 | ||||||
Nebraska Tax Free Fund | 8,387 | 11,671 | ||||||
Ohio Tax Free Fund | 13,884 | 5,285 | ||||||
Oregon Intermediate Tax Free Fund | 26,405 | 18,032 | ||||||
Short Tax Free Fund | 80,747 | 128,719 | ||||||
Tax Free Fund | 272,131 | 316,885 | ||||||
The aggregate gross unrealized appreciation and depreciation for securities held by the funds and the total cost of securities for federal income tax purposes at June 30, 2008, were as follows:
Aggregate | Aggregate | Federal | ||||||||||||||
Gross | Gross | Income | ||||||||||||||
Fund | Appreciation | Depreciation | Net | Tax Cost | ||||||||||||
Arizona Tax Free Fund | $ | 592 | $ | (972 | ) | $ | (380 | ) | $ | 25,586 | ||||||
California Intermediate Tax Free Fund | 831 | (772 | ) | 59 | 56,686 | |||||||||||
California Tax Free Fund | 773 | (1,024 | ) | (251 | ) | 44,878 | ||||||||||
Colorado Intermediate Tax Free Fund | 1,108 | (589 | ) | 519 | 49,927 | |||||||||||
Colorado Tax Free Fund | 601 | (742 | ) | (141 | ) | 25,076 | ||||||||||
Intermediate Tax Free Fund | 16,791 | (7,463 | ) | 9,328 | 650,608 | |||||||||||
Minnesota Intermediate Tax Free Fund | 4,399 | (2,379 | ) | 2,020 | 194,602 | |||||||||||
Minnesota Tax Free Fund | 3,316 | (5,836 | ) | (2,520 | ) | 168,828 | ||||||||||
Missouri Tax Free Fund | 2,919 | (4,705 | ) | (1,786 | ) | 162,171 | ||||||||||
Nebraska Tax Free Fund | 520 | (762 | ) | (242 | ) | 38,137 | ||||||||||
Ohio Tax Free Fund | 679 | (1,123 | ) | (444 | ) | 51,036 | ||||||||||
Oregon Intermediate Tax Free Fund | 2,233 | (1,750 | ) | 483 | 125,689 | |||||||||||
Short Tax Free Fund | 447 | (407 | ) | 40 | 150,372 | |||||||||||
Tax Free Fund | 10,272 | (21,009 | ) | (10,737 | ) | 496,552 | ||||||||||
First American Funds 2008 Annual Report 117
Notes toFinancial Statements June 30, 2008, all dollars and shares are rounded to thousands (000)
6 > | Concentration of Credit Risk |
Arizona Tax Free Fund, California Intermediate Tax Free Fund, California Tax Free Fund, Colorado Intermediate Tax Free Fund, Colorado Tax Free Fund, Minnesota Intermediate Tax Free Fund, Minnesota Tax Free Fund, Missouri Tax Free Fund, Nebraska Tax Free Fund, Ohio Tax Free Fund, and Oregon Intermediate Tax Free Fund invest in debt instruments of municipal issuers in specific states. Although these funds monitor investment concentration, the issuers’ ability to meet their obligations may be affected by economic developments in the specific state or region. Additionally, each state has various guidelines relating to the tax treatment of the income distributed from each fund.
7 > | Indemnifications |
The funds enter into contracts that contain a variety of indemnifications. The funds’ maximum exposure under these arrangements is unknown. However, the funds have not had prior claims or losses pursuant to these contracts and expect the risk of loss to be remote.
8 > | New Accounting Pronouncements |
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 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 June 30, 2008, the funds do not believe the adoption of FAS 157 will materially 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.
In March 2008, the FASB issued Statement on Financial Accounting Standards No. 161, “Disclosures about Derivative Instruments and Hedging Activities – an amendment of FASB Statement No. 133” (“FAS 161”). FAS 161 requires enhanced disclosures about funds’ derivative and hedging activities. Funds are required to provide enhanced disclosures about (a) how and why the fund uses derivative instruments, (b) how derivative instruments and related hedged items are accounted for under FAS 133 and its related interpretations, and (c) how derivative instruments and related hedged items affect the fund’s financial position, financial performance, and cash flows. FAS 161 is effective for financial statements issued for fiscal years beginning after November 15, 2008 and interim periods within those fiscal years. The funds do not expect FAS 161 to have a material impact on their financial statements; however, additional disclosures will be required.
118 First American Funds 2008 Annual Report
Notice toShareholders | June 30, 2008 (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 2009 on Form 1099-DIV. Please consult your tax advisor for proper treatment of this information.
For the fiscal year ended June 30, 2008, each fund hereby designates long-term capital gains, ordinary income, and tax exempt income with regard to distributions paid during the year as follows:
Long Term | Ordinary | |||||||||||||||||||
Capital Gains | Income | Total | ||||||||||||||||||
Distributions | Tax Exempt | Distributions | Distributions | |||||||||||||||||
Fund | (Tax Basis) | Interest | (Tax Basis) | (Tax Basis) (a) | ||||||||||||||||
Arizona Tax Free Fund | 7 | % | 93 | % | 0 | % | 100 | % | ||||||||||||
California Intermediate Tax Free Fund | 1 | 98 | 1 | 100 | ||||||||||||||||
California Tax Free Fund | 4 | 93 | 3 | 100 | ||||||||||||||||
Colorado Intermediate Tax Free Fund | 9 | 90 | 1 | 100 | ||||||||||||||||
Colorado Tax Free Fund | 7 | 92 | 1 | 100 | ||||||||||||||||
Intermediate Tax Free Fund | 7 | 92 | 1 | 100 | ||||||||||||||||
Minnesota Intermediate Tax Free Fund | 6 | 94 | 0 | 100 | ||||||||||||||||
Minnesota Tax Free Fund | 10 | 89 | 1 | 100 | ||||||||||||||||
Missouri Tax Free Fund | 5 | 94 | 1 | 100 | ||||||||||||||||
Nebraska Tax Free Fund | 10 | 89 | 1 | 100 | ||||||||||||||||
Ohio Tax Free Fund | 7 | 93 | 0 | 100 | ||||||||||||||||
Oregon Intermediate Tax Free Fund | 1 | 98 | 1 | 100 | ||||||||||||||||
Short Tax Free Fund | 0 | 100 | 0 | 100 | ||||||||||||||||
Tax Free Fund | 12 | 88 | 0 | 100 | ||||||||||||||||
(a) | None of the distributions made by these funds are eligible for the dividends received deduction or are characterized as qualified dividend income. |
Additional Information Applicable to Foreign Shareholders Only:
The percentage of taxable ordinary income distributions that are designated as interest-related dividends under Internal Revenue Code Section 871(k)(1)(C) for each fund were as follows:
Fund | ||||||||
Arizona Tax Free Fund | 99.20 | % | ||||||
California Intermediate Tax Free Fund | 0.00 | |||||||
California Tax Free Fund | 0.00 | |||||||
Colorado Intermediate Tax Free Fund | 1.06 | |||||||
Colorado Tax Free Fund | 4.09 | |||||||
Intermediate Tax Free Fund | 0.08 | |||||||
Minnesota Intermediate Tax Free Fund | 0.77 | |||||||
Minnesota Tax Free Fund | 0.33 | |||||||
Missouri Tax Free Fund | 0.06 | |||||||
Nebraska Tax Free Fund | 0.00 | |||||||
Ohio Tax Free Fund | 0.00 | |||||||
Oregon Intermediate Tax Free Fund | 0.81 | |||||||
Short Tax Free Fund | 0.00 | |||||||
Tax Free Fund | 0.81 | |||||||
First American Funds 2008 Annual Report 119
Notice toShareholders June 30, 2008 (unaudited)
The percentage of taxable ordinary income distributions that are designated as short-term capital gain distributions under Internal Revenue Code Section 871(k)(2)(C) for each fund were as follows:
Fund | ||||||
Arizona Tax Free Fund | 9 | % | ||||
California Intermediate Tax Free Fund | 100 | |||||
California Tax Free Fund | 100 | |||||
Colorado Intermediate Tax Free Fund | 87 | |||||
Colorado Tax Free Fund | 0 | |||||
Intermediate Tax Free Fund | 96 | |||||
Minnesota Intermediate Tax Free Fund | 68 | |||||
Minnesota Tax Free Fund | 100 | |||||
Missouri Tax Free Fund | 100 | |||||
Nebraska Tax Free Fund | 100 | |||||
Ohio Tax Free Fund | 100 | |||||
Oregon Intermediate Tax Free Fund | 81 | |||||
Short Tax Free Fund | 0 | |||||
Tax Free Fund | 0 | |||||
HOW TO OBTAIN A COPY OF THE FUNDS’ PROXY VOTING POLICIES AND PROXY VOTING RECORD
A description of the policies and procedures that the funds use to determine how to vote proxies relating to portfolio securities, as well as information regarding how the funds voted proxies relating to portfolio securities is available at www.firstamericanfunds.com and on the U.S. Securities and Exchange Commission’s website at www.sec.gov. A description of the funds’ policies and procedures is also available without charge, upon request, by calling 800.677.FUND.
FORM N-Q HOLDINGS INFORMATION
Each fund is required to file its complete schedule of portfolio holdings for the first and third quarters of each fiscal year with the Securities and Exchange Commission on Form N-Q. The funds’ Forms N-Q are available (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.
APPROVAL OF THE FUNDS’ INVESTMENT ADVISORY AGREEMENT
The Board of Directors of the Funds (the “Board”), which is comprised entirely of independent directors, oversees the management of each Fund and, as required by law, determines annually whether to renew the Funds’ advisory agreement with FAF Advisors, Inc. (“FAF Advisors”).
At a meeting on May 5-7, 2008, 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 17-19, 2008, the Board concluded its consideration of and approved the Agreement through June 30, 2009.
Although the Agreement, which is with First American Investment Funds, Inc., relates to all of the Funds, the Board separately considered and approved the Agreement with respect to each Fund. In considering the Agreement, the Board, advised by independent legal counsel, reviewed and analyzed the factors it deemed relevant, including: (1) the nature, quality and extent of FAF Advisors’ services to each Fund, (2) the investment performance of the Funds, (3) the profitability of FAF Advisors related to the Funds, including an analysis of FAF Advisors’ cost of providing services and comparative expense information, (4) whether economies of scale may be realized as the Funds grow and whether fee levels are adjusted to enable Fund investors to share in these potential economies of scale, and (5) other benefits that accrue to FAF Advisors through its relationship with the Funds. In its deliberations, the Board did not identify any single factor which alone was responsible for the Board’s decision to approve the Agreement with respect to any Fund.
120 First American Funds 2008 Annual Report
Before approving the Agreement, the independent directors met in executive session with their independent counsel on numerous occasions to consider the materials provided by FAF Advisors and the terms of the Agreement. Based on its evaluation of those materials, the Board concluded that the Agreement is fair and in the best interests of the shareholders of each Fund. In reaching its conclusions, the Board considered the following:
Nature, Quality, and Extent of Investment Advisory Services
The Board examined the nature, quality and extent of the services provided by FAF Advisors to each Fund. The Board reviewed FAF Advisors’ key personnel who provide investment management services to each Fund as well as the fact that, under the Agreement, FAF Advisors has the authority and responsibility to make and execute investment decisions for each Fund within the framework of that Fund’s investment policies and restrictions, subject to review by the Board. The Board further considered that FAF Advisors’ duties with respect to each Fund include: (i) investment research and security selection, (ii) adherence to (and monitoring compliance with) the Fund’s investment policies and restrictions and the Investment Company Act of 1940, and (iii) monitoring the performance of the various organizations providing services to the Funds, including the Funds’ distributor, sub-administrator, transfer agent and custodian. Finally, the Board considered FAF Advisors’ representation that the services provided by FAF Advisors under the Agreement are the types of services customarily provided by investment advisors in the fund industry. The Board also considered compliance reports about FAF Advisors from the Funds’ Chief Compliance Officer.
Based on the foregoing, the Board concluded that each Fund is likely to benefit from the nature, quality and extent of the services provided by FAF Advisors under the Agreement.
Investment Performance of the Funds
The Board considered the performance of each Fund, including comparative information provided by an independent data service regarding the median performance of a group of comparable funds selected by that data service (the “performance universe”) and how each Fund performed versus its benchmark index. The performance periods reviewed by the Board all ended on January 31, 2008. In the case of each state-specific Fund, the Board considered that the Fund’s benchmark index is a national municipal index, rather than a state-specific index, and noted FAF Advisors’ assertion that the Board should, therefore, treat the Fund’s performance universe as a more meaningful source of comparative performance data.
The Board also considered that, in reviewing the comparative performance of the Funds, the different expense levels of a Fund’s share classes can result in different net performance results for each of those classes. Thus, while the Board considered the performance of all classes, it focused on Class Y shares, which, because they have the lowest total expense ratios, offered the most meaningful data on performance. For this reason, the discussion below related to the performance of Class Y Shares.
Arizona Tax Free Fund. The Board considered that the Fund outperformed the performance universe median for the three- and five-year periods, though it underperformed the performance universe median for the one-year period. The Board concluded that, in light of the Fund’s competitive performance over longer periods, it would be in the interest of the Fund and its shareholders to renew the Agreement.
California Intermediate Tax Free Fund, California Tax Free Fund, Colorado Intermediate Tax Free Fund, Colorado Tax Free Fund, Intermediate Tax Free Fund, Missouri Tax Free Fund, Nebraska Tax Free Fund, Ohio Tax Free Fund, Oregon Intermediate Tax Free Fund and Short Tax Free Fund. For each of these Funds, the Board considered that the Fund outperformed or performed competitively against the performance universe median for the one-, three-, five- and, if applicable, ten-year periods. The Board concluded that, in light of each Fund’s competitive performance, it would be in the interest of the Fund and its shareholders to renew the Agreement.
Minnesota Intermediate Tax Free Fund, Minnesota Tax Free Fund and Tax Free Fund. For each of these Funds, the Board considered that the Fund outperformed the performance universe median for the three-, five-, and ten-year periods, although it underperformed the performance universe median for the one-year period. The Board concluded that, in light of each Fund’s competitive long-term performance, it would be in the interest of the Fund and its shareholders to renew the Agreement.
Costs of Services and Profits Realized by FAF Advisors
The Board examined FAF Advisors’ costs in serving as the Funds’ investment manager, including the costs associated with the personnel and systems necessary to manage each Fund. The Board also considered the profitability of FAF Advisors and its affiliates resulting from their relationship with each Fund. For each Fund, the Board examined fee and expense information as compared to that of other funds and accounts managed by FAF Advisors and of comparable funds managed by other 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.
First American Funds 2008 Annual Report 121
Notice toShareholders June 30, 2008 (unaudited)
Using information provided by an independent data service, the Board also evaluated each Fund’s advisory fee compared to the median advisory fee for other mutual funds similar in size, character and investment strategy, and each Fund’s total expense ratio after waivers compared to the median total expense ratio of comparable funds. In connection with its review of Fund fees and expenses, the Board considered FAF Advisors’ pricing philosophy. FAF Advisors attempts generally to maintain each Fund’s total operating expenses at a level that approximates the median of a peer group of funds selected by an independent data service. In addition, FAF Advisors has committed to waive its investment advisory fees to the extent necessary to maintain the Funds’ total expense ratios at levels generally in line with their respective peer groups.
Further detail considered by the Board regarding the advisory fees and total expense ratios of each Fund is set forth below:
Arizona Tax Free Fund, California Intermediate Tax Free Fund, California Tax Free Fund, Colorado Intermediate Tax Free Fund, Colorado Tax Free Fund, Intermediate Tax Free Fund, Minnesota Intermediate Tax Free Fund, Minnesota Tax Free Fund, Nebraska Tax Free Fund, Ohio Tax Free Fund, Short Tax Free Fund and Tax Free Fund. For each of these Funds, the advisory fee and total expense ratio, after waivers, were less than or equal to the peer group median. The Board concluded that each Fund’s advisory fee and total expense ratio are reasonable in light of the services provided.
Missouri Tax Free Fund and Oregon Intermediate Tax Free Fund. The Board considered that each Fund’s advisory fee, after waivers, was lower than the peer group median. Though each Fund’s total expense ratio was higher than the peer group median, the Board noted that it was within a range consistent with FAF Advisors’ pricing philosophy. The Board concluded that each Fund’s advisory fee and total expense ratio are reasonable in light of the services provided.
Economies of Scale in Providing Investment Advisory Services
The Board considered whether each Fund’s investment advisory fee reflects the potential for economies of scale for the benefit of Fund shareholders. Based on information provided by FAF Advisors, the Board noted that profitability will likely increase somewhat as assets grow over time. The Board considered that, although the Funds do not have advisory fee breakpoints in place, FAF Advisors has committed to waive advisory fees to the extent necessary to keep each Fund’s total expenses generally in line with the median total expenses of a peer group of funds as selected by an independent data service. The Board considered FAF Advisors’ assertion that the median total expense ratio of a Fund’s peer group should reflect the effect of any breakpoints in the advisory fee schedules of the funds in that group and any economies of scale which those funds realize. Therefore, by capping a Fund’s total expense ratio at a level close to the median, Fund shareholders will effectively receive the benefit of any breakpoints in the comparable funds’ advisory fee schedules and any such economies of scale. In light of FAF Advisors’ commitment to keep total Fund expenses competitive, the Board concluded that it would be reasonable and in the best interest of each Fund and its shareholders to renew the Agreement.
Other Benefits to FAF Advisors
In evaluating the benefits that accrue to FAF Advisors through its relationship with the Funds, the Board noted that FAF Advisors and certain of its affiliates serve the Funds in various capacities, including as advisor, administrator, sub-administrator, transfer agent, distributor, custodian and securities lending agent, and receive compensation from the Funds in connection with providing services to the Fund. The Board considered that each service provided to the Funds by FAF Advisors or one of its affiliates is pursuant to a written agreement, which the Board evaluates periodically as required by law.
After full consideration of these factors, the Board concluded that approval of each Agreement was in the interest of the respective Fund and its shareholders.
122 First American Funds 2008 Annual Report
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Notice toShareholders June 30, 2008 (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(TM), LLC, a strategic demographic planning and application development firm since 2001 | First American Funds Complex: twelve registered investment companies, including sixty-two portfolios | None | |||||
Virginia L. Stringer P.O. Box 1329 Minneapolis, MN 55440-1329 (1944) | Chair; Director | Chair Term three years. Directors Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Chair of FAIF’s Board since September 1997; Director of FAIF since September 1987 | Governance consultant and non-profit board member; former Owner and President, Strategic Management Resources, Inc., a management consulting firm; Executive Consultant to State Farm Insurance Company through 2003 | First American Funds Complex: twelve registered investment companies, including sixty-two portfolios | None | |||||
124 First American Funds 2008 Annual Report
Independent Directors – concluded | ||||||||||
Other | ||||||||||
Position(s) | Term of Office | Number of Portfolios | Directorships | |||||||
Name, Address, and | Held | and Length of | Principal Occupation(s) | in Fund Complex | Held by | |||||
Year of Birth | with Funds | Time Served | During Past 5 Years | Overseen by Director | Director † | |||||
James M. Wade P.O. Box 1329 Minneapolis, MN 55440-1329 (1943) | Director | Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since August 2001 | Owner and President, Jim Wade Homes, a homebuilding company | First American Funds Complex: twelve registered investment companies, including 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 2008 Annual Report 125
Notice toShareholders June 30, 2008 (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. | |||
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 | |||
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. | |||
* | Messrs. Schreier, Wilson, Gariboldi, Lui, Mitchell, 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. |
126 First American Funds 2008 Annual Report
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Board of Directors First American Investment Funds, Inc.
Virginia Stringer
Chairperson of First American Investment Funds, Inc.
Governance Consultant; 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.
independent directors.
![(FIRST AMERICAN FUNDS LOGO)](https://capedge.com/proxy/N-CSR/0000950137-08-011507/c34172faflogo.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 year ended June 30, 2008. 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.
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.
0182-08 8/2008 AR-TAXFREEINCOME
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 provisions of its code of ethics. The registrant undertakes to furnish a copy of its code of ethics to any person upon request, without charge, by calling 1-800-677-3863.
Item 3—Audit Committee Financial Expert
The registrant’s Board of Directors has determined that Leonard W. Kedrowski, Benjamin R. Field III, John P. Kayser, and Richard K. Riederer, members of the registrant’s Audit Committee, are each an “audit committee financial expert” and are “independent,” as these terms are defined in this Item.
Item 4—Principal Accountant Fees and Services
(a) Audit Fees — Ernst & Young LLP (“E&Y”) billed the registrant audit fees totaling $1,017,283 in the fiscal year ended June 30, 2008 and $1,037,785 in the fiscal year ended June 30, 2007, including fees associated with the annual audit, SEC Rule 17f-2 security count filings and filings of the registrant’s Form N-CSR.
(b) Audit-Related Fees — E&Y billed the registrant audit-related fees totaling $3,546 in the fiscal year ended June 30, 2008 and $3,957 in the fiscal year ended June 30, 2007, including fees associated with the semi-annual review of fund disclosures.
(c) Tax Fees — E&Y billed the registrant fees of $201,222 in the fiscal year ended June 30, 2008 and $157,661 in the fiscal year ended June 30, 2007 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 year ended June 30, 2008 and the fiscal year ended June 30, 2007.
(e)(1) The audit committee’s pre-approval policies and procedures pursuant to paragraph (c)(7) of Rule 2-01 of Regulation S-X are set forth below:
Audit Committee policy regarding pre-approval of services provided by the Independent Auditor
The Audit Committee of the First American Funds (“Committee”) has responsibility for ensuring that all services performed by the independent audit firm for the funds do not impair the firm’s independence. This review is intended to provide reasonable oversight without removing management from its responsibility for day-to-day operations. In this regard, the Committee should:
• Understand the nature of the professional services expected to be provided and their impact on auditor independence and audit quality
• Examine and evaluate the safeguards put into place by the Company and the auditor to safeguard independence
• Meet quarterly with the partner of the independent audit firm
• Consider approving categories of service that are not deemed to impair independence for a one-year period
It is important that a qualitative rather than a mere quantitative evaluation be performed by the Committee in discharging its responsibilities.
Policy for Audit and Non-Audit Services Provided to the Funds
On an annual basis, the Committee will review and consider whether to pre-approve the financial plan for audit fees as well as categories of audit-related and non-audit services that may be performed by the funds’ independent audit firm
directly for the funds. At least annually the Committee will receive a report from the independent audit firm of all audit and non-audit services, which were approved during the year.
The engagement of the independent audit firm for any non-audit service requires the written pre-approval of the Treasurer of the funds and all non-audit services performed by the independent audit firm will be disclosed in the required SEC periodic filings.
In connection with the Committee review and pre-approval responsibilities, the review by the Committee will consist of the following:
Audit Services
The categories of audit services and related fees to be reviewed and considered for pre-approval annually by the Committee or its delegate include the following:
• Annual Fund financial statement audits
• Seed audits (related to new product filings, as required)
• SEC and regulatory filings and consents
Audit-related Services
In addition, the following categories of audit-related services are deemed to be consistent with the role of the independent audit firm and, as such, will be considered for pre-approval by the Committee or its delegate, on an annual basis.
• Accounting consultations
• Fund merger support services
• Other accounting related matters
• Agreed Upon Procedure Reports
• Attestation Reports
• Other Internal Control Reports
Notwithstanding any annual pre-approval of these categories of services, individual projects with an estimated fee in excess of $25,000 are subject to pre-approval by the Committee Chair or its delegate on a case-by-case basis. Individual projects with an estimated fee in excess of $50,000 are subject to pre-approval by the Committee or its delegate on a case-by-case basis.
Tax Services
The following categories of tax services are deemed to be consistent with the role of the independent audit firm and, as such, will be considered for pre-approval by the Committee or its delegate, on an annual basis.
• Tax compliance services related to the filing or amendment of the following:
• Federal, state and local income tax compliance, and
• Sales and use tax compliance
• Timely RIC qualification reviews
• Tax distribution analysis and planning
• Tax authority examination services
• Tax appeals support services
• Accounting methods studies
• Fund merger support services
• Tax consulting services and related projects
Notwithstanding any annual pre-approval of these categories of services, individual projects with an estimated fee in excess of $25,000 are subject to pre-approval by the Committee Chair or its delegate on a case-by-case basis. Individual projects with an estimated fee in excess of $50,000 are subject to pre-approval by the Committee or its delegate on a case-by-case basis.
Other Non-audit Services
The SEC auditor independence rules adopted in response to the Sarbanes-Oxley Act specifically allow certain non-audit services. Because of the nature of these services, none of these services may be commenced by the independent audit firm without the prior approval of the Committee. The Committee may delegate this responsibility to one or more of the Committee members, with the decisions presented to the full Committee at the next scheduled meeting.
Proscribed Services
In accordance with SEC rules on independence, the independent audit firm is prohibited from performing services in the following categories of non-audit services:
• Management functions
• Accounting and bookkeeping services
• Internal audit services
• Financial information systems design and implementation
• Valuation services supporting the financial statements
• Actuarial services supporting the financial statements
• Executive recruitment
• Expert services (e.g., litigation support)
• Investment banking
Policy for Pre-approval of Non-Audit Services Provided to Other Entities within the Investment Company Complex
The Committee is also responsible for pre-approving certain non-audit services provided to FAF Advisors, Inc., U.S. Bank N.A., Quasar Distributors, U.S. Bancorp Fund Services, LLC and any other entity under common control with FAF Advisors, Inc., that provides ongoing services to the funds. The only non-audit services provided to these entities which require pre-approval are those services that relate directly to the operations and financial reporting of the funds.
Although the Committee is not required to pre-approve all services provided to FAF Advisors, Inc. and other affiliated service providers, the Committee will annually receive a report from the independent audit firm on the aggregate fees for all services provided to U.S. Bancorp and affiliates.
(e)(2) All of the services described in paragraphs (b) through (d) of this Item 4 were pre-approved by the audit committee.
(f) All services performed on the engagement to audit the registrant’s financial statements for the most recent fiscal period-end were performed by the principal accountant’s full-time, permanent employees.
(g) The aggregate non-audit fees billed by E&Y to the registrant, the registrant’s investment adviser, and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant, totaled $501,495 in the fiscal year ended June 30, 2008 and $270,900 in the fiscal year ended June 30, 2007.
(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 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 period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12—Exhibits
(a)(1) Not applicable. Registrant’s code of ethics is provided to any person upon request without charge.
(a)(2) Certifications of the principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act are filed as exhibits hereto.
(a)(3) Not applicable.
(b) Certifications of the principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(b) under the Investment Company Act are filed as exhibits hereto.
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
First American Investment Funds, Inc.
By: | /s/ Thomas S. Schreier, Jr. | |||
Thomas S. Schreier, Jr. | ||||
President | ||||
Date: September 4, 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: September 4, 2008
By: | /s/ Charles D. Gariboldi, Jr. | |||
Charles D. Gariboldi, Jr. | ||||
Treasurer | ||||
Date: September 4, 2008