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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-05309
First American Investment Funds, Inc.
(Exact name of registrant as specified in charter)
800 Nicollet Mall, Minneapolis, MN | 55402 | |
(Address of principal executive offices) | (Zip code) |
Charles D. Gariboldi, Jr., 800 Nicollet Mall, Minneapolis, MN 55402
(Name and address of agent for service)
(Name and address of agent for service)
Registrant’s telephone number, including area code: 800-677-3863
Date of fiscal period end: October 31, 2008
Date of reporting period: October 31, 2008
Date of fiscal period end: October 31, 2008
Date of reporting period: October 31, 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.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. Section 3507.
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EX-99.CERT | ||||||||
EX-99.906CERT |
Mutual fund investing involves risk; principal loss is possible.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
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Message to Shareholders December 8, 2008
Dear Shareholders:
We invite you to take a few minutes to review the results of the fiscal year ended October 31, 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
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Explanation of Financial Statements
As a shareholder in First American Funds, you receive shareholder reports semiannually. We strive to present this financial information in an easy-to-understand format; however, for many investors, the information contained in this shareholder report may seem very technical. So, we would like to take this opportunity to explain several sections of the shareholder report.
The Schedule of Investments details all of the securities held in the fund and their related dollar values on the last day of the reporting period. Securities are usually presented by type (common stock, bonds, etc.) and by industry classification (banking, communications, etc.). This information is useful for analyzing how your fund’s assets are invested and seeing where your portfolio manager believes the best opportunities exist to meet your objectives. Holdings are subject to change without notice and do not constitute a recommendation of any individual security. The Notes to the Financial Statements provide additional details on how the securities are valued.
The Statement of Assets and Liabilities lists the assets and liabilities of the fund and present the fund’s net asset value (“NAV”) per share on the last day of the reporting period. The NAV is calculated by dividing the fund’s net assets (assets minus liabilities) by the number of shares outstanding. The investments, as presented in the Schedule of Investments, comprise substantially all of the fund’s assets. Other assets include cash and receivables for items such as income earned by the fund but not yet received. Liabilities include payables for items such as fund expenses incurred but not yet paid.
The Statement of Operations details the dividends and interest income earned from securities as well as the expenses incurred by the fund during the reporting period. Fund expenses may be reduced through fee waivers or reimbursements. This statement reflects total expenses before any waivers or reimbursements, the amount of waivers and reimbursements (if any), and the net expenses. This statement also shows the net realized and unrealized gains and losses from investments owned during the period. The Notes to Financial Statements provide additional details on investment income and expenses of the fund.
The Statement of Changes in Net Assets describes how the fund’s net assets were affected by its operating results, distributions to shareholders, and shareholder transactions during the reporting period. This statement is important to investors because it shows exactly what caused the fund’s net asset size to change during the period.
The Financial Highlights provide a per-share breakdown of the components that affected the fund’s NAV for the current and past reporting periods. It also shows total return, expense ratios, net investment income ratios, and portfolio turnover rates. The net investment income ratios summarize the income earned less expenses, divided by the average net assets. The expense ratios represent the percentage of average net assets that were used to cover operating expenses during the period. Expense ratios can vary across funds for a number of reasons, including differences in advisory fees and the average shareholder account size. The portfolio turnover rate represents the percentage of the fund’s holdings that have changed over the course of the period, and gives an idea of how long the fund holds onto a particular security. A 100% turnover rate implies that an amount equal to the value of the entire portfolio is turned over in a year through the purchase and sale of securities.
The Notes to Financial Statements disclose the organizational background of the fund, its significant accounting policies, federal tax information, fees and compensation paid to affiliates, and significant risks and contingencies.
We hope this guide to your shareholder report will help you get the most out of this important resource. You can visit First American Funds’ website for other useful information on each of our funds, including fund prices, performance, fund manager bios, dividends, and downloadable fact sheets. For more information, call First American Investor Services at 800.677.FUND or visit firstamericanfunds.com.
2 First American Funds 2008 Annual Report
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Balanced Fund
Investment Objective: maximize total return (capital appreciation plus income)
How did the fund perform for the fiscal year ended October 31, 2008?
The First American Balanced Fund (the “fund”), Class Y shares, returned -29.30% for the fiscal year ended October 31, 2008 (Class A shares returned -29.47% without taking the sales charge into account). By comparison, the fund’s benchmarks, the Russell 3000 Index* and the Barclays Aggregate Bond Index*, returned -36.60% and 0.30%, respectively, for the same period.
How did market conditions affect stock market performance during the fiscal year?
It’s impossible to discuss the state of the equity markets during the fiscal year without addressing the impact of the subprime loan debacle and the ensuing financial crisis on stock market performance. Concerns about the proliferation of subprime mortgage loans and the lax lending standards they represented arose as early as February 2007. By October 2007, the threat of large-scale defaults became more pronounced, as did their potential effect on various highly complex securities into which subprime mortgages had been converted. What caught most market participants off guard was the severity of the crisis – the sheer volume of assets that were impaired, the extent to which the holders of those assets were hurt, and the effect of these assets on the financial system.
The financial crisis that followed gradually brought most credit activity to a halt and drained liquidity out of the markets, prompting the federal government to stage several interventions to save ailing financial institutions whose vulnerability suddenly became apparent. The takeovers of Federal Home Loan Mortgage Corporation (Freddie Mac), Federal National Mortgage Association (Fannie Mae), and of AIG, however, were ad hoc solutions rather than consequences of any broad-based policy. In the absence of such policy, the government actions tended to cause more uncertainty than calm, and the markets lost trust in this approach. Prolonged volatility ensued.
What began as a U.S.-based financial crisis rapidly led to a global recession and with it the collapse of commodity prices and the prospect of sharply reduced corporate earnings. As hedge funds undertook a massive effort to repay the loans on which they relied for operations, liquidation sales forced asset prices to plummet far below their fair value. In this environment, the outlook for financial markets appeared bleak indeed. By the end of the fiscal year, however, there were signs that the worst may be behind us. For one thing, the coordinated policy response to the crisis by governments worldwide began to introduce a measure of ease to the financial and credit markets, restoring badly needed liquidity. And because forced liquidations brought asset prices into the bargain territory, there is good value now for investors to be found in the riskier asset classes.
What worked for the fund and why?
For the first nine months of the fiscal year, as global growth continued, with oil and basic material prices reaching all-time highs, our underweight in late-cycle sectors such as industrials, basic materials, and energy, was a drag on performance. The underweight position, however, turned beneficial during the latter part of the fiscal year, when oil declined sharply. We were also rewarded for good stock selection in late cyclicals; for example, steering clear of General Electric proved a prudent choice as both the company’s industrial business and its financial arm were significantly weakened by the financial crisis. In July 2008, as the commodity prices began to crack, we were quick to recognize the likelihood of further declines and therefore rapidly reduced the fund’s positions in energy and basic materials stocks. These timely reductions benefitted the portfolio.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Top 10 Holdings as of October 31, 20081 (% of net assets)
First American Prime Obligations Fund, Class Z | 4.1 | % | ||
iShares MSCI EAFE Index Fund | 1.9 | |||
Hewlett-Packard | 1.8 | |||
Exxon Mobil | 1.7 | |||
Home Depot | 1.6 | |||
Wells Fargo | 1.3 | |||
JPMorgan Chase | 1.2 | |||
U.K. Government Treasury | 1.2 | |||
Apple | 1.2 | |||
Cisco Systems | 1.1 |
Portfolio Allocation as of October 31, 20081 (% of net assets)
Stocks | 49.6 | % | ||
Bonds | 42.1 | |||
Investment Companies | 2.3 | |||
Preferred Stocks | 0.2 | |||
Short-Term Investments | 5.4 | |||
Other Assets and Liabilities, Net 2 | 0.4 | |||
100.0 | % |
1 | Fund holdings and portfolio allocations are subject to change at any time and are not recommendations to buy or sell any security. |
2 | Investments in securities typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
First American Funds 2008 Annual Report 3
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Balanced Fund
In the fixed-income portion of the fund, we were underweight in corporate bonds early in the fiscal year. As we saw cheaper valuations and substantial policy support for markets globally, we increased weightings in non-Treasury sectors. By the end of March, our fixed-income strategy was increasingly positioned for a gradual stabilization of the financial system and ultimate recovery in the value of structured securities and financial debt. This helped the fund in the spring and summer, but subsequent intensification of financial pressures has created a difficult market environment for the portfolio. However, to the extent that we have largely avoided permanent impairments in the form of mortgage and corporate credit-related losses, we anticipate a high potential for recovery in relative returns. The fund had relatively low exposure to Lehman Brothers and Washington Mutual, where bondholders were permanently impaired as the troubled companies were resolved. As a result, the net impact of these events on performance was low.
What did not work for the fund and why?
As the credit crisis worsened and the financial sector became the third worst-performing sector in the marketplace, our overweight in financial stocks detracted from performance. Although we invested in what we believed were stocks of higher-quality companies, the rapid pace of deterioration caused any stock that was not of the highest quality to suffer. Our holdings in Lehman Brothers proved the most notable detractor from performance, since, contrary to our expectations, instead of becoming the subject of a takeover or a federal rescue effort, the firm went out of business. Our positions in asset management firms Affiliated Managers Group, Invesco, and Alliance Bernstein also hurt performance as the profits of these firms shrank with the decline in the stock market.
With the economy in a recession, investors moved their money to relatively safe havens such as stable consumer staple stocks. The fund, however, was underweight in consumer staples and did not hold the more stable companies like Procter & Gamble, Philip Morris, or Annheuser-Bush, which was acquired by the Belgian brewing giant InBev.
Finally, our overweight in technology hurt performance at a time when the sharply slowing economic growth impeded this cyclical sector. A notable underperformer was MEMC Electronics, a solar chip maker, whose shares were hurt by operational issues and, later in the fiscal year, by a perceived decline in demand for energy-efficient chips.
In the bond portion of the portfolio, we underweighted Treasuries and Agency debentures and overweighted corporate bonds, commercial mortgage-backed securities, agency-backed securities, and non-agency mortgage products. As noted, non-Treasury sectors performed poorly amid heightened volatility and shrinking risk tolerance and balance sheets. Our exposure to financials was a particularly large drag on investment results, but with all issuers trading at extremely attractive risk premiums, we expect a high degree of price recovery in coming quarters as the market gradually recognizes the survivors in this sector. Overweights to high-yield and emerging-market bonds detracted from performance, but these weights are relatively low.
Our duration strategy — modestly underweighting the benchmark — detracted from performance, as rates fell sharply amid investors’ flight to quality. The portfolio’s foreign currency exposure detracted from performance when the spike in the dollar, driven by funding strains in the global system, erased gains made earlier.
What strategic moves were made by the fund and why?
The overall allocation strategy for the fund was to reduce allocations to equities. Equity allocations reached their lowest point, about 8% below normal, in spring 2008. In the final four months of the fiscal year, this allocation has been increased to a point near normal. Within the equity portfolio, we maintained a significant underweight to small domestic stocks throughout the fiscal year. Early on, we reduced the fund’s small position in foreign stocks from a level moderately above normal to a neutral, or normal, weight for the remainder of the fiscal year. To balance the fund’s equity allocation strategy, we allocated larger than normal amounts to the fund’s fixed-income portfolio. The performance of the overall allocation strategy added value to the fund’s results as the fixed-income portfolio produced higher returns than the equity portfolio, particularly at the end of the year. Within the equity portfolio, our strategy of emphasizing large-cap domestic stocks also added value.
The equity portfolio became more diversified across sectors in order to better manage risk as the world economy entered a severe recession. Although the significant worldwide policy response to the economic conditions should eventually reaccelerate economic growth, numerous risks are in store for the market and the portfolio before any improvements take effect, and diversification should help us manage such risks. We remained overweight in early cyclical areas, such as retail, consumer durables, and financials, but also overweight in more stable sectors such as healthcare. We maintained our underweight in utilities and late cyclicals. Given continued market volatility, the stable areas should perform well, while early cyclicals are likely to be the first beneficiaries of any economic growth produced by the policy stimulus.
4 First American Funds 2008 Annual Report
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Our fixed-income strategy remains focused on overweighting high-quality, non-Treasury sectors. Portfolio activity has generally been centered on managing issuer-specific risk in the corporate sector and taking advantage of selected opportunities in the securitized sector. We have selectively added new-issue corporate bonds which have come at a considerable concession to the market. At the margin, mortgage exposure was lowered somewhat to fund more attractive holdings in other sectors.
First American Funds 2008 Annual Report 5
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Balanced Fund
Annual Performance1,2
October 31, 2008 | September 30, 2008* | |||||||||||||||||||||||||||||||||||||||||||||||
Since Inception | Since Inception | |||||||||||||||||||||||||||||||||||||||||||||||
1 year | 5 years | 10 years | 3/1/1999 | 11/27/2000 | 9/24/2001 | 1 year | 5 years | 10 years | 3/1/1999 | 11/27/2000 | 9/24/2001 | |||||||||||||||||||||||||||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||||||||||||||||||||||||||||||||||
Class A | (33.33 | )% | (0.70 | )% | 0.82 | % | — | — | — | (21.69 | )% | 3.02 | % | 2.68 | % | — | — | — | ||||||||||||||||||||||||||||||
Class B | (33.08 | )% | (0.66 | )% | — | 0.21 | % | — | — | (21.34 | )% | 3.07 | % | — | 1.77 | % | — | — | ||||||||||||||||||||||||||||||
Class C | (30.68 | )% | (0.35 | )% | — | — | — | 0.84 | % | (18.44 | )% | 3.40 | % | — | — | — | 3.00 | % | ||||||||||||||||||||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||||||||||||||||||||||||||||||||||
Class A | (29.47 | )% | 0.42 | % | 1.40 | % | — | — | — | (17.15 | )% | 4.19 | % | 3.26 | % | — | — | — | ||||||||||||||||||||||||||||||
Class B | (30.02 | )% | (0.35 | )% | — | 0.21 | % | — | — | (17.75 | )% | 3.40 | % | — | 1.77 | % | — | — | ||||||||||||||||||||||||||||||
Class C | (30.06 | )% | (0.35 | )% | — | — | — | 0.84 | % | (17.72 | )% | 3.40 | % | — | — | — | 3.00 | % | ||||||||||||||||||||||||||||||
Class R | (29.68 | )% | 0.22 | % | — | — | (0.84 | )% | — | (17.34 | )% | 3.96 | % | — | — | 1.02 | % | — | ||||||||||||||||||||||||||||||
Class Y | (29.30 | )% | 0.65 | % | 1.66 | % | — | — | — | (16.89 | )% | 4.45 | % | 3.53 | % | — | — | — | ||||||||||||||||||||||||||||||
Russell 3000 Index3 | (36.60 | )% | 0.46 | % | 1.05 | % | (0.14 | )% | (1.80 | )% | 1.98 | % | (21.52 | )% | 5.70 | % | 3.80 | % | 1.91 | % | 0.66 | % | 4.88 | % | ||||||||||||||||||||||||
Barclays Aggregate Bond Index4 | 0.30 | % | 3.48 | % | 5.00 | % | 5.24 | % | 5.22 | % | 4.37 | % | 3.65 | % | 3.78 | % | 5.20 | % | 5.55 | % | 5.60 | % | 4.78 | % | ||||||||||||||||||||||||
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
1 | Mutual fund investing involves risk; principal loss is possible. |
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. | |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 5.50% for Class A shares and the contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV. | |
Investment performance reflects fee waivers that were in effect during the periods indicated. In the absence of such fee waivers, total returns would be reduced. | |
As of the most recent prospectus, the fund’s total annual operating expense ratio (including acquired fund fees and expenses, which the fund indirectly bears) for Class A, Class B, Class C, Class R, and Class Y shares was 1.26%, 2.01%, 2.01%, 1.51% and 1.01%, 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 (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. |
* | This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period. |
Value of $10,000 Investment1,2,5 as of October 31, 2008
Balanced Fund, Class A (NAV) | ![]() | $ | 11,490 | |||||
Balanced Fund, Class A (POP) | ![]() | $ | 10,855 | |||||
Russell 3000 Index3 | ![]() | $ | 11,098 | |||||
Barclays Aggregate Bond Index4 | ![]() | $ | 16,290 | |||||
This chart illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 10/31/1998 to 10/31/2008) as compared to the Russell 3000 Index3 and the Barclays Aggregate Bond Index4.
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950137-09-000237/c48053c4805915.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
On September 24, 2001, the First American Balanced Fund combined with Firstar Balanced Growth Fund and Firstar Balanced Income Fund. Performance history prior to September 24, 2001, represents that of Firstar Balanced Growth Fund.
3 | An unmanaged index that measures the performance of the 3,000 largest U.S. companies (98% of the investable U.S. equity market) based on total market capitalization. |
4 | An unmanaged fixed income index covering the U.S. investment-grade fixed-rate bond market. |
5 | Performance for Class B, Class C, Class R, and Class Y shares is not presented. Performance for these classes will vary due to the different expense structures. |
6 First American Funds 2008 Annual Report
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Equity Income Fund
Investment Objective: long-term growth of capital and income
How did the fund perform for the fiscal year ended October 31, 2008?
The First American Equity Income Fund (the “fund”), Class Y shares, returned -32.29% for the fiscal year ended October 31, 2008 (Class A shares returned -32.51% without taking the sales charge into account). By comparison, the fund’s benchmark, the Standard and Poor’s 500 Dividend Only Stocks Index*, returned -34.70% for the same period.
How did market conditions affect stock market performance during the fiscal year?
It’s impossible to discuss the state of the equity markets during the fiscal year without addressing the impact of the subprime loan debacle and the ensuing financial crisis on stock market performance. Concerns about the proliferation of subprime mortgage loans and the lax lending standards they represented arose as early as February 2007. By October of 2007, the threat of large-scale defaults became more pronounced, as did their potential effect on various highly complex securities into which subprime mortgages had been converted. What caught most market participants off guard was the severity of the crisis — the sheer volume of assets that were impaired, the extent to which the holders of those assets were hurt, and the effect of these assets on the financial system.
The financial crisis that followed gradually brought most credit activity to a halt and drained liquidity out of the markets, prompting the federal government to stage several interventions to save ailing financial institutions whose vulnerability suddenly became apparent. The takeovers of Federal Home Loan Mortgage Corporation (Freddie Mac), Federal National Mortgage Association (Fannie Mae), and of AIG, however, were ad hoc solutions rather than consequences of any broad-based policy. In the absence of such policy, the government actions tended to cause more uncertainty than calm, and the markets lost trust in this approach. Prolonged volatility ensued.
What began as a U.S.-based financial crisis rapidly led to a global recession and with it the collapse of commodity prices and the prospect of sharply reduced corporate earnings. As hedge funds undertook a massive effort to repay the loans on which they relied for operations, liquidation sales forced asset prices to plummet far below their fair value. In this environment, the outlook for financial markets appeared bleak indeed. By the end of the fiscal period, however, there were signs that the worst may be behind us. For one thing, the coordinated policy response to the crisis by governments worldwide began to introduce a measure of ease to the financial and credit markets, restoring badly needed liquidity. And because forced liquidations brought asset prices into the bargain territory, there is good value now for investors to be found in the riskier asset classes.
What will be the likely developments in the equity markets in the coming fiscal year?
We expect the more defensively positioned sectors (healthcare, consumer staples) and sectors that tend to thrive early in the economic cycle (financials, consumer discretionary, retail) to make gains, while late-cycle sectors (energy, basic materials, industrials) will most likely remain under pressure. Clearly, conditions will remain challenging for some time to come, but as the most acute stages of the crisis recede into the past, we anticipate a gradual return of opportunities.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Top 10 Holdings as of October 31, 20081 (% of net assets)
Exxon Mobil | 4.2 | % | ||
Abbott Laboratories | 4.1 | |||
Chevron | 3.8 | |||
Wal-Mart Stores | 3.2 | |||
Johnson & Johnson | 3.1 | |||
ConocoPhillips | 3.0 | |||
McDonald’s | 3.0 | |||
BP – ADR | 3.0 | |||
Microsoft | 2.5 | |||
Praxair | 2.4 |
Sector Allocation as of October 31, 20081 (% of net assets)
Energy | 15.8 | % | ||
Financials | 14.8 | |||
Information Technology | 14.0 | |||
Healthcare | 11.4 | |||
Consumer Staples | 10.9 | |||
Industrials | 8.8 | |||
Consumer Discretionary | 6.9 | |||
Telecommunication Services | 5.9 | |||
Materials | 4.6 | |||
Utilities | 4.5 | |||
Short-Term Investment | 1.5 | |||
Other Assets and Liabilities, Net2 | 0.9 | |||
100.0 | % |
1 | Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security. |
2 | Investments in securities typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
First American Funds 2008 Annual Report 7
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Equity Income Fund
What worked for the fund and why?
In general, the fund’s sector allocation was modestly positive. The fund was overweight in energy, one of the best-performing sectors of the market, and underweight in three of the underperforming sectors — financials, industrials, and consumer discretionary. This sector positioning reflected the fund managers’ growing conviction during the period that the U.S. financial crisis was leading the global economy into recessionary economic conditions and that U.S. consumer spending was likely to remain challenged. Therefore, the fund maintained a relatively defensive posture throughout the period, with lower exposure to late-cycle industrial and materials companies and companies that rely on discretionary U.S. consumer spending, and it continued its emphasis across sectors on companies paying above-average dividends. Stock selection contributed positively to fund results in most sectors due to a general emphasis on companies with strong balance sheets and the ability to self-finance operations in a deteriorating credit and general global economic environment. In the consumer discretionary sector, McDonald’s was a standout performer, benefiting from its dominant global market position as well as strong new product introductions. In consumer staples, General Mills and Wal-Mart performed well, reflecting consumer efforts to stretch tight family budgets. In healthcare, Abbott Laboratories contributed positively to the fund’s return, delivering positive results in its pharmaceutical and stent product lines. In the materials sector, the fund’s emphasis on less cyclical companies such as Praxair, which operates in the relatively defensive industrial gas business, helped results as the stock price fell less than other more cyclical companies in the sector. In the information technology sector, QUALCOMM was the standout performer, holding up better than average due to a favorable legal settlement with Nokia. The fund’s holdings in utilities also outperformed as the higher-dividend-paying companies generally held up better than the lower-dividend-paying companies in the group.
What did not work for the fund and why?
The fund’s worst performers were concentrated in the financials sector, where the fallout from the global financial crisis was widely spread. Several of the fund’s holdings were impacted, including Wachovia and AllianceBernstein, two of the fund’s worst performers. The fund’s holding of FairPoint Communications was a very poor performer because of market concerns over subscriber losses in the landline business and delays in merging the operations of businesses acquired from Verizon.
What strategic moves were made by the fund and why?
The fund continued to maintain overweight positions in the information technology and telecommunications sectors and an underweight position in industrials. Throughout the fiscal year, we emphasized primarily large U.S.-based companies with growing global franchises and with dividend policies that support above-average current yields and dividend growth. At the close of the fiscal year, the fund began to reposition opportunistically for the eventual end of the global financial crisis and U.S. recession. The underweight position in the consumer discretionary sector has been reduced, funded by sales in consumer staples and a move to underweight in this defensive sector.
8 First American Funds 2008 Annual Report
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Annual Performance1,2
October 31, 2008 | September 30, 2008* | |||||||||||||||||||||||||||||||||||||||
Since Inception | Since Inception | |||||||||||||||||||||||||||||||||||||||
1 year | 5 years | 10 years | 2/1/1999 | 9/24/2001 | 1 year | 5 years | 10 years | 2/1/1999 | 9/24/2001 | |||||||||||||||||||||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||||||||||||||||||||||||||
Class A | (36.23 | )% | 0.44 | % | 1.85 | % | — | — | (24.66 | )% | 4.42 | % | 3.71 | % | — | — | ||||||||||||||||||||||||
Class B | (36.02 | )% | 0.50 | % | 1.69 | % | — | — | (24.54 | )% | 4.47 | % | 3.53 | % | — | — | ||||||||||||||||||||||||
Class C | (33.56 | )% | 0.82 | % | — | 0.80 | % | — | (21.60 | )% | 4.81 | % | — | 2.40 | % | — | ||||||||||||||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||||||||||||||||||||||||||
Class A | (32.51 | )% | 1.58 | % | 2.43 | % | — | — | (20.29 | )% | 5.61 | % | 4.29 | % | — | — | ||||||||||||||||||||||||
Class B | (32.95 | )% | 0.83 | % | 1.69 | % | — | — | (20.92 | )% | 4.81 | % | 3.53 | % | — | — | ||||||||||||||||||||||||
Class C | (32.95 | )% | 0.82 | % | — | 0.80 | % | — | (20.88 | )% | 4.81 | % | — | 2.40 | % | — | ||||||||||||||||||||||||
Class R | (32.64 | )% | 1.34 | % | — | — | 2.09 | % | (20.52 | )% | 5.36 | % | — | — | 4.33 | % | ||||||||||||||||||||||||
Class Y | (32.29 | )% | 1.83 | % | 2.69 | % | — | — | (20.12 | )% | 5.86 | % | 4.56 | % | — | — | ||||||||||||||||||||||||
S&P 500 Index3 | (36.10 | )% | 0.26 | % | 0.40 | % | (1.13 | )% | 1.34 | % | (21.98 | )% | 5.17 | % | 3.06 | % | 0.76 | % | 4.04 | % | ||||||||||||||||||||
S&P 500 Dividend Only Stocks Index4 | (34.70 | )% | 0.78 | % | 1.25 | % | 0.11 | % | 1.05 | %5 | (20.98 | )% | 5.57 | % | 3.93 | % | 1.99 | % | 3.70 | %5 | ||||||||||||||||||||
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
1 | Mutual fund investing involves risk; principal loss is possible. |
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 5.50% for Class A shares and the contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV. | |
Investment performance in the table reflects fee waivers that had been in effect for certain portions of the periods indicated. In the absence of such fee waivers, total returns would be reduced. | |
As of the most recent prospectus, the fund’s total annual operating expense ratio for Class A, Class B, Class C, Class R, and Class Y shares was 1.16%, 1.91%, 1.91%, 1.41%, and 0.91%, respectively. |
* | This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period. |
Value of $10,000 Investment1,2,6 as of October 31, 2008
Equity Income Fund, Class A (NAV) | ![]() | $ | 12,714 | |||||
Equity Income Fund, Class A (POP) | ![]() | $ | 12,013 | |||||
S&P 500 Index3 | ![]() | $ | 10,403 | |||||
S&P 500 Dividend Only Stocks Index4 | ![]() | $ | 11,319 | |||||
This chart illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 10/31/1998 to 10/31/2008) as compared to the S&P 500 Index3 and the S&P 500 Dividend Only Stocks Index4.
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950137-09-000237/c48053c4805916.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
3 | An unmanaged market capitalization-weighted index based on the average weighted performance of 500 widely held common stocks. |
4 | The S&P 500 Dividend Only Stocks Index custom benchmark is composed of companies in the S&P 500 Index that have an indicated annual dividend. |
5 | The performance since inception of this index is calculated from the month end following the inception of the class. |
6 | Performance for Class B, Class C, Class R, and Class Y shares is not presented. Performance for these classes will vary due to the different expense structures. |
First American Funds 2008 Annual Report 9
Table of Contents
Global Infrastructure Fund
Investment Objective: to provide long-term growth of capital and income
How did the fund perform during the period from December 17, 2007 through October 31, 2008?
The First American Global Infrastructure Fund (the “fund”), Class Y shares, returned -35.70% for the fiscal period ended October 31, 2008 (Class A shares returned -35.70% without taking the sales charge into account). By comparison, the fund’s benchmark, the S&P Global Infrastructure Index*, returned -38.21% for the same period.
How did market conditions affect stock market performance during the reporting period?
It’s impossible to discuss the state of the equity markets during the fiscal period without addressing the impact of the subprime loan debacle and the ensuing financial crisis on stock market performance. Concerns about the proliferation of subprime mortgage loans and the lax lending standards they represented arose as early as February 2007. By October 2007, the threat of large-scale defaults became more pronounced, as did their potential effect on various highly complex securities into which subprime mortgages had been converted. What caught most market participants off guard was the severity of the crisis — the sheer volume of assets that were impaired, the extent to which the holders of those assets were hurt, and the effect of these assets on the financial system.
The financial crisis that followed gradually brought most credit activity to a halt and drained liquidity out of the markets, prompting the federal government to stage several interventions to save ailing financial institutions whose vulnerability suddenly became apparent. The takeovers of Federal Home Loan Mortgage Corporation (Freddie Mac), Federal National Mortgage Association (Fannie Mae), and of AIG, however, were ad hoc solutions rather than consequences of any broad-based policy. In the absence of such policy, the government actions tended to cause more uncertainty than calm, and the markets lost trust in this approach. Prolonged volatility ensued.
What began as a U.S.-based financial crisis rapidly led to a global recession and with it the collapse of commodity prices and the prospect of sharply reduced corporate earnings. As hedge funds undertook a massive effort to repay the loans on which they relied for operations, liquidation sales forced asset prices to plummet far below their fair value. In this environment, the outlook for financial markets appeared bleak indeed. By the end of the fiscal period, however, there were signs that the worst may be behind us. For one thing, the coordinated policy response to the crisis by governments worldwide began to introduce a measure of ease to the financial and credit markets, restoring badly needed liquidity. And because forced liquidations brought asset prices into the bargain territory, there is good value now for investors to be found in the riskier asset classes.
Defensive stocks such as those contained in the fund outperformed during the fiscal period, especially toward the latter part. These companies were generally able to reaffirm the defensiveness of their cash flows in an environment of very little visibility in the economy. The market also rewarded defensive sectors like infrastructure because of their continued (albeit limited) access to the capital markets at a time when other companies were shut out.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Top 10 Holdings as of October 31, 20081 (% of net assets)
TransCanada | 5.5 | % | ||
State Street GA Prime Fund | 3.5 | |||
Enbridge | 3.1 | |||
Northeast Utilities | 3.0 | |||
Societe des Autoroutes Paris-Rhin-Rhone | 2.8 | |||
National Grid – ADR | 2.7 | |||
NSTAR | 2.6 | |||
Ausnet | 2.6 | |||
East Japan Railway | 2.5 | |||
Abertis Infraestructuras | 2.3 | |||
Country Allocation as of October 31, 20081 (% of net assets)
United States | 22 | .4% | ||
Canada | 10 | .4 | ||
Australia | 7 | .6 | ||
France | 7 | .0 | ||
Spain | 6 | .4 | ||
Italy | 5 | .6 | ||
Great Britain | 5 | .4 | ||
Singapore | 5 | .1 | ||
Germany | 5 | .0 | ||
Hong Kong | 4 | .2 | ||
Other | 16 | .3 | ||
Short-Term Investment | 3 | .5 | ||
Other Assets & Liabilities, Net2 | 1 | .1 | ||
100 | .0% | |||
1 | Fund holdings and country allocations are subject to change at any time and are not recommendations to buy or sell any security. |
2 | Investments in securities typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
10 First American Funds 2008 Annual Report
Table of Contents
What worked for the fund and why?
The largest contributor to fund outperformance during the fiscal period was our adherence to a more defensive stance relative to the index during an exceptionally volatile market environment. In general, the fund was positioned with a focus on companies exhibiting a lower correlation to gross domestic product (“GDP”), as growth slowed around the globe. We emphasized companies with cash flows that tend to be more resilient in this type of environment because of the long-term nature of their contracts.
Strong stock selection was in evidence across the majority of the sectors in the portfolio, particularly in the pipeline sector. Our goal was to position the fund in pipeline companies that have consistent, stable cash flows without taking on significant exposure to commodity prices. Therefore, we underweighted our holdings in exploration and production as well as petroleum-processing companies. Conversely, we augmented our position in pipeline companies with fee-based contracts that provide more consistent revenue streams. These stocks performed relatively well as commodity prices fell.
The fund’s exposure to electric transmission also benefited performance. As we expected, stocks in this sector acted very defensively during the fiscal period because these companies are uniformly regulated entities with consistent cash flows. The market rewarded this defensiveness, benefiting the fund.
We also reaped positive performance from strong selection in the rail and toll road sectors. Even in a weakening economy, people tend to continue using mass transit, thereby helping the relative performance of investments in this area. In toll roads, once again our holdings were defensive, with a focus on companies with relatively low debt and those operating in favorable regulatory environments.
The logistics sector helped performance, primarily because of our holdings in privatized post offices. The fund was rewarded for holding two other defensive areas that are not part of the index: government outsourcing and waste-management stocks. We also benefited from the fund’s largely underweight stance in the shipping sector. Shipping tends to be highly correlated to GDP, so as the U.S. and Western European economies entered a recession, the shipping industry suffered.
What did not work and why?
The fund’s biggest negative contributor was its exposure to the construction and engineering sector, where companies are also highly correlated to GDP. Although our holdings are niche selections in the nuclear and electric transmission industries, which are not typical construction companies, the entire segment suffered with the economic downturn. While we believe this sector is attractive in the long term, we are likely to maintain a muted weighting in this area because of our primary focus on companies that own and operate long-lived assets with stable contractual cash flows.
Electric utilities also hurt fund performance despite very positive stock selection in this sector. Our considerable underweight in the sector (17% vs. 35% in the index), dictated by our efforts to maintain diversification, was the chief reason for underperformance relative to the index. Finally, the fund’s holdings of water utilities hurt results. Much of our exposure to water utilities came from emerging market stocks that were tied to the Chinese and Brazilian economies. These stocks are highly correlated with their markets, which dramatically underperformed. We have pared back our exposure to emerging market water utilities due to this trend.
What strategic moves were made and why?
As we’ve seen a significant deterioration in global economies, we’ve become even more defensive in the fund. We continue to focus on companies that have greater visibility in the marketplace than their peers. We have increased our exposure to regulated companies, because we believe they have much higher levels of unconstrained demand in their businesses and thus will do better in an economic downturn.
First American Funds 2008 Annual Report 11
Table of Contents
Global Infrastructure Fund
Performance1,2
October 31, 2008† | September 30, 2008*† | |||||||
Since Inception | Since Inception | |||||||
12/17/2007 | 12/17/2007 | |||||||
Average annual return with sales charge (POP) | ||||||||
Class A | (39.22 | )% | (26.75 | )% | ||||
Average annual return without sales charge (NAV) | ||||||||
Class A | (35.70 | )% | (22.50 | )% | ||||
Class Y | (35.70 | )% | (22.40 | )% | ||||
S&P Global Infrastructure Index3 | (38.21 | )% | (24.09 | )% | ||||
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 | International investing involves risks not typically associated with domestic investing, including risks of adverse currency fluctuations, potential political and economic instability, different accounting standards, foreign government regulations, currency exchange rates, limited liquidity, and volatile prices. |
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV.
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 5.50% for Class A shares. Total returns assume reinvestment of all distributions at NAV.
Investment performance reflects fee waivers that were in effect during the periods indicated. In the absence of such fee waivers, total returns would be reduced.
As of the most recent prospectus, the fund’s total annual operating expense ratio before waivers for Class A and Class Y shares was 1.89% and 1.64%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through October 31, 2009 so that the total annual fund operating expenses for Class A and Class Y shares do not exceed 1.25% and 1.00%, respectively. These fee waivers and expense reimbursements may be terminated at any time after October 31, 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.
* | This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period. |
† | Returns not annualized |
Value of $10,000 Investment1,2,4 as of October 31, 2008
Global Infrastructure Fund, Class A (NAV) | ![]() | $ | 6,430 | |||||
Global Infrastructure Fund, Class A (POP) | ![]() | $ | 6,078 | |||||
S&P Global Infrastructure Index3 | ![]() | $ | 6,179 | |||||
This chart illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 12/17/2007 to 10/31/2008) as compared to the S&P Global Infrastructure Index3.
![(LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950137-09-000237/c48053c4805929.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
3 | The unmanaged S&P Global Infrastructure Index in comprised of 75 of the largest publicly listed infrastructure companies from around the world that meet specific investability requirements. |
4 | Performance for Class Y shares is not presented. Performance for this class will vary due to the different expense structures. |
12 First American Funds 2008 Annual Report
Table of Contents
International Fund
Investment Objective: long-term growth of capital
How did the fund perform for the fiscal year ended October 31, 2008?
The First American International Fund (the “fund”), Class Y shares, returned -43.68% for the fiscal year ended October 31, 2008 (Class A shares returned -43.82% without taking the sales charge into account). By comparison, the fund’s benchmark, the MSCI EAFE Index*, returned -46.34% for the same period.
How did market conditions affect stock market performance during the fiscal year?
During the fiscal year, it became clear that the harmful effects of subprime mortgage loans and the lax lending standards they represented had spread throughout the developed world. Financial crises arose in England, Germany, Iceland, and a host of developing markets as valuations, credit quality, and counterparty risks brought the international financial system close to a standstill. What caught most market participants off guard was the severity of the crisis — the sheer volume of assets that were impaired, the extent to which the holders of those assets were hurt, and the effect of these assets on the financial system.
As the U.S.-based financial crisis rapidly led to a global recession — and with it the collapse of commodity prices and the prospect of sharply reduced corporate earnings — hedge funds undertook a massive effort to repay the loans on which they relied for operations, and liquidation sales forced asset prices to plummet far below their fair value. By the end of the fiscal year, however, there were signs that the worst of the crisis in the financial system may be behind us. Still, the effects of the spreading global recession are yet to be seen. The coordinated policy response to the crisis by governments worldwide began to introduce a measure of ease to the financial and credit markets, restoring badly needed liquidity. And because forced liquidations brought asset prices into the bargain territory, there are now good values to be found for investors in some of the riskier asset classes.
What worked for the fund and why?
During the fiscal year, the larger, more diversified, and stable companies better weathered the crisis in the international stock markets. The fund held the stocks of several larger, more liquid companies that fared comparatively better than their smaller counterparts in this volatile environment. The portfolio was underweight in financial stocks, which proved beneficial at a time when the value of such stocks depreciated rapidly amidst the global financial crisis.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Top 10 Holdings as of October 31, 20081 (% of net assets)
State Street GA Prime Fund | 12.9 | % | ||
Nestle | 2.8 | |||
HSBC | 2.8 | |||
U.S. Treasury Bill, 0.740%, 12/18/2008 | 2.7 | |||
Vodafone | 2.3 | |||
Roche | 2.1 | |||
Novartis | 2.1 | |||
Eni | 2.0 | |||
E.ON | 2.0 | |||
Tesco | 1.8 | |||
Country Allocation as of October 31, 20081 (% of net assets)
Japan | 17 | .8% | ||
Great Britain | 12 | .2 | ||
France | 12 | .1 | ||
Switzerland | 11 | .1 | ||
Germany | 7 | .3 | ||
Hong Kong | 4 | .5 | ||
Italy | 3 | .7 | ||
Spain | 3 | .6 | ||
Netherlands | 2 | .5 | ||
Australia | 1 | .7 | ||
Other | 7 | .7 | ||
Short-Term Investments | 15 | .7 | ||
Other Assets & Liabilities, Net2 | 0 | .1 | ||
100 | .0% | |||
1 | Fund holdings and country allocations are subject to change at any time and are not recommendations to buy or sell any security. |
2 | Investments in securities typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
First American Funds 2008 Annual Report 13
Table of Contents
International Fund
In the summer of 2008, the fund’s advisor applied a new level of active overlay strategies to the fund. In our overlay approach, we typically use futures contracts to gain broad exposure to an equity market. This new overlay strategy proved beneficial to performance. For example, since Canada was the source of many of the commodities that were in short supply earlier in 2008, the fund gained access to firms that benefitted from high commodity prices through the Toronto Stock Exchange futures index. Another timely move was minimizing our exposure to emerging markets and overweighting U.S.-based investments. In the process, we reduced the portfolio’s sensitivity to the sharp downturn in all international markets, which was especially strong during the summer and fall of 2008.
What did not work for the fund and why?
Virtually all international equity investments performed poorly during the fiscal year. While we reduced the fund’s exposure to the riskiest segments and nations, the fund’s overall performance nonetheless suffered.
What strategic moves were made by the fund and why?
Having implemented a new level of our active overlay strategies in the summer of 2008, toward the end of the fiscal year we began preparing for the second major transition in the fund, from a single sub-advisor approach to manager-of-managers approach. This approach allows us to pool the market insights from several experienced managers (or “sub-advisors”) with in-depth expertise in their international investing niches. Within our First American oversight framework, each sub-advisor uses its own process for security selection and sector, and country allocation. The overarching management responsibilities for the fund, however, lie with the First American International Equity Fund Oversight and Management Team which selects the sub-advisors and is actively engaged in tactical asset allocation and risk management to make portfolio adjustments in pursuit of enhancing fund performance. As part of this change to a manager-of-managers approach, effective November 3, 2008, Altrinsic Global Advisors, LLC, and Hansberger Global Investors, Inc., were added as sub-advisors to the fund, replacing the fund’s then-current sub-advisor.
14 First American Funds 2008 Annual Report
Table of Contents
Annual Performance1,2
October 31, 2008 | September 30, 2008* | |||||||||||||||||||||||||||||||
Since Inception | Since Inception | |||||||||||||||||||||||||||||||
1 year | 5 years | 10 years | 9/24/2001 | 1 year | 5 years | 10 years | 9/24/2001 | |||||||||||||||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||||||||||||||||||
Class A | (46.92 | )% | (0.26 | )% | 0.74 | % | — | (31.10 | )% | 5.92 | % | 3.85 | % | — | ||||||||||||||||||
Class B | (46.70 | )% | (0.23 | )% | 0.56 | % | — | (30.92 | )% | 6.00 | % | 3.65 | % | — | ||||||||||||||||||
Class C | (44.71 | )% | 0.13 | % | — | 1.66 | % | (28.29 | )% | 6.33 | % | — | 5.03 | % | ||||||||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||||||||||||||||||
Class A | (43.82 | )% | 0.87 | % | 1.32 | % | — | (27.07 | )% | 7.12 | % | 4.44 | % | — | ||||||||||||||||||
Class B | (44.19 | )% | 0.13 | % | 0.56 | % | — | (27.67 | )% | 6.32 | % | 3.65 | % | — | ||||||||||||||||||
Class C | (44.21 | )% | 0.13 | % | — | 1.66 | % | (27.64 | )% | 6.33 | % | — | 5.03 | % | ||||||||||||||||||
Class R | (43.94 | )% | 0.50 | % | 1.12 | % | — | (27.32 | )% | 6.71 | % | 4.23 | % | — | ||||||||||||||||||
Class Y | (43.68 | )% | 1.12 | % | 1.57 | % | — | (26.89 | )% | 7.38 | % | 4.70 | % | — | ||||||||||||||||||
MSCI EAFE Index3 | (46.34 | )% | 4.04 | % | 2.05 | % | 5.47 | % | (30.13 | )% | 10.16 | % | 5.42 | % | 8.98 | % | ||||||||||||||||
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
1 | International investing involves risks not typically associated with domestic investing, including risks of adverse currency fluctuations, potential political and economic instability, different accounting standards, foreign government regulations, currency exchange rates, limited liquidity, and volatile prices. |
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV.
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 5.50% for Class A shares and the contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.
Investment performance reflects fee waivers that were in effect during the periods indicated. In the absence of such fee waivers, total returns would be reduced.
As of the most recent prospectus, the fund’s total annual operating expense ratio before waivers for Class A, Class B, Class C, Class R, and Class Y shares was 1.53%, 2.28%, 2.28%, 1.78%, and 1.28%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through June 30, 2009 so that the total annual fund operating expenses for Class A, Class B, Class C, Class R, and Class Y shares do not exceed 1.49%, 2.24%, 2.24%, 1.74%, and 1.24%, respectively. These fee waivers and expense reimbursements may be terminated at any time after June 30, 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.
* | This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period. |
Value of $10,000 Investment1,2,4 as of October 31, 2008
International Fund, Class A (NAV) | ![]() | $ | 11,396 | |||||
International Fund, Class A (POP) | ![]() | $ | 10,766 | |||||
MSCI EAFE Index3 | ![]() | $ | 12,247 | |||||
This chart illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 10/31/1998 to 10/31/2008) as compared to the MSCI EAFE Index3.
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950137-09-000237/c48053c4805917.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
Effective December 8, 2004, J.P. Morgan was named the fund’s subadvisor and began managing the fund’s assets. On September 24, 2001, the First American International Fund merged with Firstar International Growth Fund and Firstar International Value Fund, both subadvised by Clay Finlay Inc. Performance history prior to September 24, 2001 represents that of the Firstar International Growth Fund. | |
3 | An unmanaged index of common stocks in Europe, Australasia, and the Far East. |
4 | Performance for Class B, Class C, Class R, and Class Y shares is not presented. Performance for these classes will vary due to the different expense structures. |
First American Funds 2008 Annual Report 15
Table of Contents
International Select Fund
Investment Objective: long-term growth of capital
How did the fund perform for the fiscal year ended October 31, 2008?
The First American International Select Fund (the “fund”), Class Y shares, returned -44.86% for the fiscal period ended October 31, 2008 (Class A shares returned -45.00% without taking the sales charge into account). By comparison, the fund’s benchmark, the MSCI AC World Index Ex. U.S.*, returned -48.27% for the same period.
How did market conditions affect stock market performance during the fiscal year?
During the fiscal year, it became clear that the harmful effects of subprime mortgage loans and the lax lending standards they represented had spread throughout the developed world. Financial crises arose in England, Germany, Iceland, and a host of developing markets as valuations, credit quality, and counterparty risks brought the international financial system close to a standstill. What caught most market participants off guard was the severity of the crisis — the sheer volume of assets that were impaired, the extent to which the holders of those assets were hurt, and the effect of these assets on the financial system. Emerging markets were particularly susceptible in this environment, as many of them had weak currency reserves and were at risk of experiencing runs on their central banks.
As the U.S.-based financial crisis rapidly led to a global recession — and with it the collapse of commodity prices and the prospect of sharply reduced corporate earnings — hedge funds undertook a massive effort to repay the loans on which they relied for operations, and liquidation sales forced asset prices to plummet far below their fair value. By the end of the fiscal year, however, there were signs that the worst of the crisis in the financial system may be behind us. Still, the effects of the spreading global recession are yet to be seen. The coordinated policy response to the crisis by governments worldwide began to introduce a measure of ease to the financial and credit markets, restoring badly needed liquidity. And because forced liquidations brought asset prices into the bargain territory, there are now good values to be found for investors in some of the riskier asset classes.
What worked for the fund and why?
First American active overlay strategies were the main source of positive performance during the fiscal year. In our overlay approach, we typically use futures contracts to gain broad exposure to an equity market. This new overlay strategy proved beneficial to performance. For example, since Canada was the source of many of the commodities that were in short supply earlier in 2008, the fund gained access to firms that benefitted from high commodity prices through the Toronto Stock Exchange futures index. Another beneficial move was reducing our exposure to emerging markets to the market level in the latter part of the fiscal year and overweighting U.S.-based investments. In the process, we reduced the portfolio’s sensitivity to the sharp downturn in all international markets, which was especially strong during the summer and fall of 2008.
International Select allocates fund assets to three sub-managers who specialize in value, growth, and emerging international stocks. The sub-managers emphasized careful stock selection in their areas of expertise. Though they focused on companies that tended to be lower-capitalization, less liquid, and potentially more susceptible to global disruptions, the stock picks nonetheless produced strong relative performance for two of the sub-managers, with the dramatic outperformance for the part of the portfolio allocated to the emerging markets.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Top 10 Holdings as of October 31, 20081 (% of net assets)
State Street GA Prime Fund | 15 | .7% | ||
U.S. Treasury Bill, 0.948%, 12/18/2008 | 3 | .3 | ||
Nestle | 1 | .5 | ||
PowerShares MENA Frontier Countries Portfolio | 1 | .3 | ||
GlaxoSmithKline | 1 | .2 | ||
Heineken | 1 | .2 | ||
Vivendi Universal | 1 | .2 | ||
Novartis | 1 | .1 | ||
Carrefour | 1 | .1 | ||
Vodafone Group – ADR | 1 | .1 | ||
Country Allocation as of October 31, 20081 (% of net assets)
Japan | 14 | .9% | ||
Great Britain | 13 | .0 | ||
France | 7 | .7 | ||
Germany | 6 | .0 | ||
Switzerland | 4 | .9 | ||
Brazil | 3 | .8 | ||
South Africa | 3 | .0 | ||
South Korea | 2 | .9 | ||
Canada | 2 | .6 | ||
Hong Kong | 2 | .2 | ||
Other | 24 | .2 | ||
Exchange-Traded Fund | 1 | .3 | ||
Short-Term Investments | 19 | .0 | ||
Other Assets & Liabilities, Net2 | (5 | .5) | ||
100 | .0% | |||
1 | Fund holdings and country allocations are subject to change at any time and are not recommendations to buy or sell any security. |
2 | Investments in securities typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
16 First American Funds 2008 Annual Report
Table of Contents
What did not work for the fund and why?
Virtually all international equity investments performed poorly during the fiscal year. While we reduced the fund’s exposure to the riskiest segments and nations, the fund’s overall performance nonetheless suffered. Among the most notable detractors from performance was National Bank of Greece, whose operations extend to Central and Eastern Europe as well as Turkey. The stock sold off in the course of the fiscal year, in line with other financial stocks; however, its exposure to emerging markets further pressured its performance. Heineken, one of the world’s largest brewers, also lost ground. The company’s shares fell primarily because of fears that reduced consumption and consumers opting for lower-priced brands might hurt profits in the near term.
What strategic moves were made by the fund and why?
Toward the end of the fiscal year, we began structuring the portfolio to focus more on three major geographical regions: the Americas, Asia Pacific, and Europe, as we expect trading patterns to become somewhat more focused in those regions.
First American Funds 2008 Annual Report 17
Table of Contents
International Select Fund
Annual Performance1,2
October 31, 2008 | September 30, 2008* | |||||||||||||||
Since Inception | Since Inception | |||||||||||||||
1 year | 12/21/2006 | 1 year | 12/21/2006 | |||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||
Class A | (48.04 | )% | (21.86 | )% | (29.71 | )% | (11.13 | )% | ||||||||
Class B | (48.05 | )% | (22.17 | )% | (29.78 | )% | (11.49 | )% | ||||||||
Class C | (45.93 | )% | (20.06 | )% | (26.92 | )% | (8.98 | )% | ||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||
Class A | (45.00 | )% | (19.45 | )% | (25.62 | )% | (8.26 | )% | ||||||||
Class B | (45.37 | )% | (20.04 | )% | (26.16 | )% | (8.96 | )% | ||||||||
Class C | (45.39 | )% | (20.06 | )% | (26.19 | )% | (8.98 | )% | ||||||||
Class R | (45.10 | )% | (19.64 | )% | (25.81 | )% | (8.53 | )% | ||||||||
Class Y | (44.86 | )% | (19.27 | )% | (25.48 | )% | (8.07 | )% | ||||||||
MSCI AC World Index Ex. U.S.3 | (48.27 | )% | (20.74 | )% | (29.97 | )% | (9.83 | )% | ||||||||
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
1 | International investing involves risks not typically associated with domestic investing, including risks of adverse currency fluctuations, potential political and economic instability, different accounting standards, foreign government regulations, currency exchange rates, limited liquidity, and volatile prices. |
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV.
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 5.50% for Class A shares and the contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.
Investment performance reflects fee waivers that were in effect during the periods indicated. In the absence of such fee waivers, total returns would be reduced.
As of the most recent prospectus, the fund’s total annual operating expense ratio before waivers (including acquired fund fees and expenses which the fund indirectly bears) for Class A, Class B, Class C, Class R, and Class Y shares was 1.91%, 2.66%, 2.66%, 2.16%, and 1.66%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through June 30, 2009 so that the total annual fund operating expenses (excluding acquired fund fees and expenses) for Class A, Class B, Class C, Class R, and Class Y shares do not exceed 1.49%, 2.24%, 2.24%, 1.74%, and 1.24%, respectively. These fee waivers and expense reimbursements may be terminated at any time after June 30, 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.
* | This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period. |
Value of $10,000 Investment1,2,4 as of October 31, 2008
International Select Fund, Class A (NAV) | ![]() | $ | 6,687 | |||||
International Select Fund, Class A (POP) | ![]() | $ | 6,320 | |||||
MSCI AC World Index Ex. U.S.3 | ![]() | $ | 6,490 | |||||
This chart illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 12/21/2006 to 10/31/2008) as compared to the MSCI AC World Index Ex. U.S.3
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950137-09-000237/c48053c4805918.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
3 | An unmanaged index of stocks representing developed and emerging markets around the world that collectively comprise most foreign stock markets. |
4 | Performance for Class B, Class C, Class R, and Class Y shares is not presented. Performance for these classes will vary due to the different expense structures. |
18 First American Funds 2008 Annual Report
Table of Contents
Large Cap Growth Opportunities Fund
Investment Objective: long-term growth of capital
How did the fund perform for the fiscal year ended October 31, 2008?
The First American Large Cap Growth Opportunities Fund (the “fund”), Class Y shares, returned -34.65% for the fiscal year ended October 31, 2008 (Class A shares returned -34.81% without taking the sales charge into account). By comparison, the fund’s benchmark, the Russell 1000 Growth Index*, returned -36.95% for the same period.
How did market conditions affect stock market performance during the fiscal year?
It’s impossible to discuss the state of the equity markets during the fiscal year without addressing the impact of the subprime loan debacle and the ensuing financial crisis on stock market performance. Concerns about the proliferation of subprime mortgage loans and the lax lending standards they represented arose as early as February 2007. By October 2007, the threat of large-scale defaults became more pronounced, as did their potential effect on various highly complex securities into which subprime mortgages had been converted. What caught most market participants off guard was the severity of the crisis — the sheer volume of assets that were impaired, the extent to which the holders of those assets were hurt, and the effect of these assets on the financial system.
The financial crisis that followed gradually brought most credit activity to a halt and drained liquidity out of the markets, prompting the federal government to stage several interventions to save ailing financial institutions whose vulnerability suddenly became apparent. The takeovers of Federal Home Loan Mortgage Corporation (Freddie Mac), Federal National Mortgage Association (Fannie Mae), and of AIG, however, were ad hoc solutions rather than consequences of any broad-based policy. In the absence of such policy, the government actions tended to cause more uncertainty than calm, and the markets lost trust in this approach. Prolonged volatility ensued.
What began as a U.S.-based financial crisis rapidly led to a global recession and with it the collapse of commodity prices and the prospect of sharply reduced corporate earnings. As hedge funds undertook a massive effort to repay the loans on which they relied for operations, liquidation sales forced asset prices to plummet far below their fair value. In this environment, the outlook for financial markets appeared bleak indeed. By the end of the fiscal period, however, there were signs that the worst may be behind us. For one thing, the coordinated policy response to the crisis by governments worldwide began to introduce a measure of ease to the financial and credit markets, restoring badly needed liquidity. And because forced liquidations brought asset prices into the bargain territory, there is good value now for investors to be found in the riskier asset classes.
What will be the likely developments in the equity markets in the coming fiscal year?
We expect the more defensively positioned sectors (healthcare, consumer staples) and sectors that tend to thrive early in the economic cycle (financials, consumer discretionary, retail) to make gains, while late-cycle sectors (energy, basic materials, industrials) will most likely remain under pressure. Clearly, conditions will remain challenging for some time to come, but as the most acute stages of the crisis recede into the past, we anticipate a gradual return of opportunities.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Top 10 Holdings as of October 31, 20081 (% of net assets)
Apple | 3.9 | % | ||
Hewlett-Packard | 3.5 | |||
Oracle | 3.4 | |||
Philip Morris International | 3.4 | |||
Cisco Systems | 3.2 | |||
Abbott Laboratories | 3.2 | |||
McDonald’s | 2.8 | |||
Procter & Gamble | 2.8 | |||
Gilead Sciences | 2.5 | |||
Baxter International | 2.5 | |||
Sector Allocation as of October 31, 20081 (% of net assets)
Information Technology | 28.1 | % | ||
Healthcare | 16.0 | |||
Consumer Staples | 14.2 | |||
Industrials | 12.7 | |||
Consumer Discretionary | 10.4 | |||
Energy | 7.1 | |||
Materials | 5.2 | |||
Financials | 4.0 | |||
Telecommunication Services | 1.8 | |||
Short-Term Investment | 1.1 | |||
Other Assets and Liabilities, Net2 | (0.6 | ) | ||
100.0 | % | |||
1 | Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security. |
2 | Investments in securities typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
First American Funds 2008 Annual Report 19
Table of Contents
Large Cap Growth Opportunities Fund
What worked for the fund and why?
Throughout the fiscal year, investors were focused on the evolving financial crisis and the ensuing impact on global economic activity. Earlier in the year, energy stocks performed quite well on the belief that developing economies — China in particular — would be insulated from the slowdown in the United States and would, therefore, continue to support rising oil prices. Once that premise proved false (as developing economies experienced meaningful growth deceleration, too), energy prices collapsed, as did prices of other basic commodities. Our investment process emphasizes strong and improving earnings fundamentals and, by following our discipline, we were overweight in the energy sector during the first half of the year and underweight during the second half. In addition, as we reduced our exposure in energy, we significantly increased our weight in the healthcare sector and other companies with relatively secure earnings outlooks. These beneficial sector positions were the result of our traditional bottom-up, one-stock-at-a-time approach. Healthcare companies Abbott, Baxter, Celgene, and Gilead were all strong performers. Materials companies Monsanto, Praxair, and Ecolab performed well, and in financials, our investment in Charles Schwab supports our contention that there are outstanding franchise growth companies that can succeed even in the most challenging environments. Winners Oracle, C.H. Robinson, McDonald’s, Accenture, and Proctor and Gamble reinforce that point.
What did not work for the fund and why?
Among the biggest detractors from our relative performance was our underweight position in consumer staples. These stocks fell more modestly than those in every other sector. While we became concerned that the broad earnings outlook was weakening and recognized that the staples would offer relatively strong fundamentals, valuation held us back. From an individual stock standpoint, we didn’t sell formerly strong portfolio performers Goldman Sachs, Lehman Brothers, Research in Motion, and MEMC Electronic Materials quickly enough. Each of these companies experienced much less earnings stability and consistency than we had estimated.
What strategic moves were made by the fund and why?
The biggest changes made during the past fiscal year reflected our conviction that the global economy was weakening and that, accordingly, earnings would be pressured. We started out the year significantly underweight in healthcare and consumer staples and ended the year overweight in those sectors. Similarly, we reduced our investments in technology, financials, and energy.
We are always looking to invest in franchise growth companies with solid and/or improving fundamentals, a reasonable valuation, and an approaching catalyst. When we sell, it is the result of expected or actual deterioration of the fundamental earnings outlook, the realization or removal of the expected catalyst, or excessive valuation. The current positioning of the portfolio reflects this consistent approach.
20 First American Funds 2008 Annual Report
Table of Contents
Annual Performance1,2
October 31, 2008 | September 30, 2008* | |||||||||||||||||||||||||||||||||||||||||||||||
Since Inception | Since Inception | |||||||||||||||||||||||||||||||||||||||||||||||
1 year | 5 years | 10 years | 3/01/1999 | 11/27/2000 | 9/24/2001 | 1 year | 5 years | 10 years | 3/01/1999 | 11/27/2000 | 9/24/2001 | |||||||||||||||||||||||||||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||||||||||||||||||||||||||||||||||
Class A | (38.39 | )% | (1.22 | )% | (1.68 | )% | — | — | — | (25.38 | )% | 3.17 | % | 0.61 | % | — | — | — | ||||||||||||||||||||||||||||||
Class B | (38.25 | )% | (1.20 | )% | — | (3.28 | )% | — | — | (25.16 | )% | 3.22 | % | — | (1.63 | )% | — | — | ||||||||||||||||||||||||||||||
Class C | (35.90 | )% | (0.84 | )% | — | — | — | (0.56 | )% | (22.31 | )% | 3.56 | % | — | — | — | 1.81 | % | ||||||||||||||||||||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||||||||||||||||||||||||||||||||||
Class A | (34.81 | )% | (0.10 | )% | (1.12 | )% | — | — | — | (21.04 | )% | 4.34 | % | 1.19 | % | — | — | — | ||||||||||||||||||||||||||||||
Class B | (35.33 | )% | (0.84 | )% | — | (3.28 | )% | — | — | (21.62 | )% | 3.57 | % | — | (1.63 | )% | — | — | ||||||||||||||||||||||||||||||
Class C | (35.31 | )% | (0.84 | )% | — | — | — | (0.56 | )% | (21.60 | )% | 3.56 | % | — | — | — | 1.81 | % | ||||||||||||||||||||||||||||||
Class R | (35.00 | )% | (0.33 | )% | — | — | (4.95 | )% | — | (21.23 | )% | 4.11 | % | — | — | (2.98 | )% | — | ||||||||||||||||||||||||||||||
Class Y | (34.65 | )% | 0.16 | % | (0.87 | )% | — | — | — | (20.83 | )% | 4.61 | % | 1.44 | % | — | — | — | ||||||||||||||||||||||||||||||
Russell 1000 Growth Index3 | (36.95 | )% | (1.29 | )% | (2.10 | )% | (3.87 | )% | (6.13 | )% | (0.08 | )% | (20.88 | )% | 3.74 | % | 0.59 | % | (1.94 | )% | (3.85 | )% | 2.72 | % | ||||||||||||||||||||||||
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
1 | Mutual fund investing involves risk; principal loss is possible. |
Growth stocks typically have more volatility than value stocks; whereas value stocks tend to have slower earnings growth rates.
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV.
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 5.50% for Class A shares and the contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.
Investment performance in the table reflects fee waivers that had been in effect for certain portions of the periods indicated. In the absence of such fee waivers, total returns would be reduced.
As of the most recent prospectus, the fund’s total operating expense ratio (including acquired fund fees and expenses which the fund indirectly bears) for Class A, Class B, Class C, Class R, and Class Y shares was 1.20%, 1.95%, 1.95%, 1.45%, and 0.95%, respectively.
* | This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period. |
Value of $10,000 Investment1,2,4 as of October 31, 2008
Large Cap Growth Opportunities Fund, Class A (NAV) | ![]() | $ | 8,936 | |||||
Large Cap Growth Opportunities Fund, Class A (POP) | ![]() | $ | 8,445 | |||||
Russell 1000 Growth Index3 | ![]() | $ | 8,089 | |||||
This chart illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 10/31/1998 to 10/31/2008) as compared to the Russell 1000 Growth Index3.
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950137-09-000237/c48053c4805928.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
On September 24, 2001, the First American Large Cap Growth Opportunities Fund became the successor by merger to the Firstar Large Cap Core Equity Fund, a series of Firstar Funds, Inc. Prior to the merger, the First American fund had no assets or liabilities. Performance presented prior to September 24, 2001 represents that of the Firstar Large Cap Core Equity Fund. | |
3 | An unmanaged index that measures the performance of those companies in the Russell 1000 Index (large-cap index) with higher price-to-book ratios and higher forecasted growth values. |
4 | Performance for Class B, Class C, Class R, and Class Y shares is not presented. Performance for these classes will vary due to the different expense structures. |
First American Funds 2008 Annual Report 21
Table of Contents
Large Cap Select Fund
Investment Objective: capital appreciation
How did the fund perform for the fiscal year ended October 31, 2008?
The First American Large Cap Select Fund (the “fund”), Class Y shares, returned -39.63% for the fiscal year ended October 31, 2008 (Class A shares returned -39.81% without taking the sales charge into account). By comparison, the fund’s benchmark, the Standard & Poor’s 500 Index* (“S&P 500 Index”), returned -36.10% for the same period.
How did market conditions affect stock market performance during the fiscal year?
It’s impossible to discuss the state of the equity markets during the fiscal year without addressing the impact of the subprime loan debacle and the ensuing financial crisis on stock market performance. Concerns about the proliferation of subprime mortgage loans and the lax lending standards they represented arose as early as February 2007. By October 2007, the threat of large-scale defaults became more pronounced, as did their potential effect on various highly complex securities into which subprime mortgages had been converted. What caught most market participants off guard was the severity of the crisis — the sheer volume of assets that were impaired, the extent to which the holders of those assets were hurt, and the effect of these assets on the financial system.
The financial crisis that followed gradually brought most credit activity to a halt and drained liquidity out of the markets, prompting the federal government to stage several interventions to save ailing financial institutions whose vulnerability suddenly became apparent. The takeovers of Federal Home Loan Mortgage Corporation (Freddie Mac), Federal National Mortgage Association (Fannie Mae), and of AIG, however, were ad hoc solutions rather than consequences of any broad-based policy. In the absence of such policy, the government actions tended to cause more uncertainty than calm, and the markets lost trust in this approach. Prolonged volatility ensued.
What began as a U.S.-based financial crisis rapidly led to a global recession and with it the collapse of commodity prices and the prospect of sharply reduced corporate earnings. As hedge funds undertook a massive effort to repay the loans on which they relied for operations, liquidation sales forced asset prices to plummet far below their fair value. In this environment, the outlook for financial markets appeared bleak indeed. By the end of the fiscal period, however, there were signs that the worst may be behind us. For one thing, the coordinated policy response to the crisis by governments worldwide began to introduce a measure of ease to the financial and credit markets, restoring badly needed liquidity. And because forced liquidations brought asset prices into the bargain territory, there is good value now for investors to be found in the riskier asset classes.
What will be the likely developments in the equity markets in the coming fiscal year?
We expect the more defensively positioned sectors (healthcare, consumer staples) and sectors that tend to thrive early in the economic cycle (financials, consumer discretionary, retail) to make gains, while late-cycle sectors (energy, basic materials, industrials) will most likely remain under pressure. Clearly, conditions will remain challenging for some time to come, but as the most acute stages of the crisis recede into the past, we anticipate a gradual return of opportunities.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Top 10 Holdings as of October 31, 20081 (% of net assets)
Hewlett-Packard | 4.0 | % | ||
Exxon Mobil | 3.7 | |||
Home Depot | 3.4 | |||
Wells Fargo | 2.8 | |||
JPMorgan Chase | 2.7 | |||
Apple | 2.5 | |||
Cisco Systems | 2.5 | |||
Pactiv | 2.5 | |||
Bank of America | 2.4 | |||
Abbott Laboratories | 2.3 | |||
Sector Allocation as of October 31, 20081 (% of net assets)
Information Technology | 19.0 | % | ||
Financials | 16.8 | |||
Consumer Discretionary | 15.7 | |||
Healthcare | 15.6 | |||
Energy | 11.1 | |||
Industrials | 9.6 | |||
Consumer Staples | 6.0 | |||
Telecommunication Services | 3.1 | |||
Materials | 2.5 | |||
Short-Term Investment | 1.0 | |||
Other Assets and Liabilities, Net2 | (0.4 | ) | ||
100.0 | % | |||
1 | Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security. |
2 | Investments 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. |
22 First American Funds 2008 Annual Report
Table of Contents
What worked for the fund and why?
For the first nine months of the fiscal year, as global growth continued, with oil and basic material prices reaching all-time highs, the fund’s underweight in late-cycle sectors such as industrials, basic materials, and energy, was a drag on performance. The underweight position, however, turned beneficial during the latter part of the fiscal year, when oil declined sharply. We were also rewarded for good stock selection in late cyclicals; for example, steering clear of General Electric proved a prudent choice as both the company’s industrial business and its financial arm were significantly weakened by the financial crisis.
In July 2008, as the commodity prices began to crack, we were quick to recognize the likelihood of further declines and therefore rapidly reduced the fund’s positions in energy and basic materials stocks. These timely reductions benefitted the portfolio.
What did not work for the fund and why?
As the credit crisis worsened and the financial sector became the third worst-performing sector in the marketplace, the fund’s overweight in financial stocks detracted from performance. Although we invested in what we believed were stocks of higher-quality companies, the rapid pace of deterioration caused any stock that was not of the highest quality to suffer. The fund’s holdings in Lehman Brothers proved the most notable detractor from performance, since, contrary to our expectations, instead of becoming the subject of a takeover or a federal rescue effort, the troubled firm went out of business. The fund’s positions in asset management firms Affiliated Managers Group, Invesco, and Alliance Bernstein also hurt performance as the profits of these firms shrank with the decline in the stock market.
With the economy in a recession, investors moved their money to relatively safe havens such as stable consumer staple stocks. The fund, however, was underweight in consumer staples and did not hold the more stable companies like Procter & Gamble, Philip Morris, or Annheuser-Bush, which was acquired by the Belgian brewing giant InBev.
Finally, the fund’s overweight in technology hurt performance at a time when the sharply slowing economic growth impeded this cyclical sector. A notable underperformer was MEMC Electronics, a solar chip maker, whose shares were hurt by operational issues and, later in the fiscal year, by a perceived decline in demand for energy-efficient chips.
What strategic moves were made by the fund and why?
The fund became more diversified across sectors in order better to manage portfolio risk as the world economy entered severe recession. Although the significant worldwide policy response to the economic conditions should eventually reaccelerate economic growth, numerous risks are in store for the market and the portfolio before any improvements take effect, and diversification should help us manage such risks. The fund remained overweight in early cyclical areas, such as retail, consumer durables, and financials, and was also overweight in more stable sectors such as healthcare. We maintained our underweight in utilities and late cyclicals. Given continued market volatility, the stable areas should perform well, while early cyclicals are likely to be the first beneficiaries of any economic growth produced by the policy stimulus.
First American Funds 2008 Annual Report 23
Table of Contents
Large Cap Select Fund
Annual Performance1,2
October 31, 2008 | September 30, 2008* | |||||||||||||||||||||||
Since Inception | Since Inception | |||||||||||||||||||||||
1 year | 5 years | 1/31/2003 | 1 year | 5 years | 1/31/2003 | |||||||||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||||||||||
Class A | (43.12) | % | (2.56) | % | 1.21 | % | (30.25) | % | 2.39 | % | 4.65 | % | ||||||||||||
Class B | (42.81) | % | (2.48) | % | 1.29 | % | (29.85) | % | 2.46 | % | 4.74 | % | ||||||||||||
Class C | (40.89) | % | (2.22) | % | 1.40 | % | (27.47) | % | 2.74 | % | 4.86 | % | ||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||||||||||
Class A | (39.81) | % | (1.45) | % | 2.21 | % | (26.17) | % | 3.56 | % | 5.70 | % | ||||||||||||
Class B | (40.24) | % | (2.17) | % | 1.43 | % | (26.70) | % | 2.79 | % | 4.89 | % | ||||||||||||
Class C | (40.38) | % | (2.22) | % | 1.40 | % | (26.84) | % | 2.74 | % | 4.86 | % | ||||||||||||
Class R | (39.94) | % | (1.68) | % | 1.98 | % | (26.32) | % | 3.32 | % | 5.46 | % | ||||||||||||
Class Y | (39.63) | % | (1.17) | % | 2.48 | % | (25.96) | % | 3.84 | % | 5.96 | % | ||||||||||||
S&P 500 Index3 | (36.10) | % | 0.26 | % | 4.12 | % | (21.98) | % | 5.17 | % | 7.62 | % | ||||||||||||
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
1 | Mutual fund investing involves risk; principal loss is possible. |
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV.
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 5.50% for Class A shares and the contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.
Investment performance in the table reflects fee waivers that had been in effect for certain portions of the periods indicated. In the absence of such fee waivers, total returns would be reduced.
As of the most recent prospectus, the fund’s total operating expense ratio (including acquired fund fees and expenses which the fund indirectly bears) for Class A, Class B, Class C, Class R, and Class Y shares was 1.20%, 1.95%, 1.95%, 1.45%, and 0.95%, respectively.
* | This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period. |
Value of $10,000 Investment 1,2,4 as of October 31, 2008
Large Cap Select Fund, Class A (NAV) | ![]() | $ | 11,337 | |||||
Large Cap Select Fund, Class A (POP) | ![]() | $ | 10,716 | |||||
S&P 500 Index3 | ![]() | $ | 12,611 | |||||
This chart illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 1/31/2003 to 10/31/2008) as compared to the S&P 500 Index3.
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950137-09-000237/c48053c4805919.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
3 | An unmanaged market capitalization-weighted index based on the average weighted performance of 500 widely held common stocks. |
4 | Performance for Class B, Class C, Class R, and Class Y shares is not presented. Performance for these classes will vary due to the different expense structures. |
24 First American Funds 2008 Annual Report
Table of Contents
Large Cap Value Fund
Investment Objective: primary – capital appreciation; secondary – current income
How did the fund perform for the fiscal year ended October 31, 2008?
The First American Large Cap Value Fund (the “fund”), Class Y shares, returned -33.80% for the fiscal year ended October 31, 2008 (Class A shares returned -34.00% without taking the sales charge into account). By comparison, the fund’s benchmark, the Russell 1000 Value Index*, returned -36.80% for the same period.
How did market conditions affect stock market performance during the fiscal year?
It’s impossible to discuss the state of the equity markets during the fiscal year without addressing the impact of the subprime loan debacle and the ensuing financial crisis on stock market performance. Concerns about the proliferation of subprime mortgage loans and the lax lending standards they represented arose as early as February 2007. By October of 2007, the threat of large-scale defaults became more pronounced, as did their potential effect on various highly complex securities into which subprime mortgages had been converted. What caught most market participants off guard was the severity of the crisis — the sheer volume of assets that were impaired, the extent to which the holders of those assets were hurt, and the effect of these assets on the financial system.
The financial crisis that followed gradually brought most credit activity to a halt and drained liquidity out of the markets, prompting the federal government to stage several interventions to save ailing financial institutions whose vulnerability suddenly became apparent. The takeovers of Federal Home Loan Mortgage Corporation (Freddie Mac), Federal National Mortgage Association (Fannie Mae), and of AIG, however, were ad hoc solutions rather than consequences of any broad-based policy. In the absence of such policy, the government actions tended to cause more uncertainty than calm, and the markets lost trust in this approach. Prolonged volatility ensued.
What began as a U.S.-based financial crisis rapidly led to a global recession and with it the collapse of commodity prices and the prospect of sharply reduced corporate earnings. As hedge funds undertook a massive effort to repay the loans on which they relied for operations, liquidation sales forced asset prices to plummet far below their fair value. In this environment, the outlook for financial markets appeared bleak indeed. By the end of the fiscal period, however, there were signs that the worst may be behind us. For one thing, the coordinated policy response to the crisis by governments worldwide began to introduce a measure of ease to the financial and credit markets, restoring badly needed liquidity. And because forced liquidations brought asset prices into the bargain territory, there is good value now for investors to be found in the riskier asset classes.
What will be the likely developments in the equity markets in the coming fiscal year?
We expect the more defensively positioned sectors (healthcare, consumer staples) and sectors that tend to thrive early in the economic cycle (financials, consumer discretionary, retail) to make gains, while late-cycle sectors (energy, basic materials, industrials) will most likely remain under pressure. Clearly, conditions will remain challenging for some time to come, but as the most acute stages of the crisis recede into the past, we anticipate a gradual return of opportunities.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Top 10 Holdings as of October 31, 20081 (% of net assets)
Exxon Mobil | 5.3 | % | ||
JPMorgan Chase | 4.7 | |||
Chevron | 4.3 | |||
Johnson & Johnson | 4.0 | |||
Procter & Gamble | 3.8 | |||
AT&T | 3.5 | |||
Wells Fargo | 3.4 | |||
ACE | 3.3 | |||
Bank of America | 2.7 | |||
Pfizer | 2.3 | |||
Sector Allocation as of October 31, 20081 (% of net assets)
Financials | 23.6 | % | ||
Healthcare | 15.0 | |||
Energy | 14.2 | |||
Consumer Staples | 9.2 | |||
Consumer Discretionary | 8.2 | |||
Industrials | 7.5 | |||
Information Technology | 6.4 | |||
Materials | 5.4 | |||
Telecommunication Services | 5.4 | |||
Utilities | 3.5 | |||
Short-Term Investment | 1.5 | |||
Other Assets and Liabilities, Net2 | 0.1 | |||
100.0 | % | |||
1 | Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security. |
2 | Investments in securities typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
First American Funds 2008 Annual Report 25
Table of Contents
Large Cap Value Fund
What worked for the fund and why?
The fund benefited from positive stock selection in several sectors. In the financial sector, banking companies JPMorgan Chase, BB&T, M&T Bank, and Wells Fargo outperformed, along with insurance company ACE Ltd., while the fund avoided several of the financial firms that declined dramatically. These outperforming financials generally enjoy stronger capital and liquidity positions and may benefit from the turmoil in the current capital markets environment by capturing market share from weaker competitors. In the industrial sector, railroad operator Norfolk Southern outperformed due to strong industry pricing and improving margins. Waste collection operator Waste Management outperformed due to stable volumes, strong industry pricing, and proposed consolidation activity within the sector. Several stocks in the materials sector also outperformed, notably packaging companies Owens-Illinois and Pactiv, which benefited from rising earnings expectations associated with improved operations and lower costs. Additionally, steel manufacturer Nucor positively impacted performance earlier in the period due to robust demand and rising steel prices. Other standouts include Procter & Gamble and grocery retailer Kroger, which both benefited from stable fundamentals in the face of declining economic activity.
What did not work for the fund and why?
Sector selection detracted from performance due to an overweight position in the technology sector that lagged the benchmark. Within technology, semiconductor manufacturers MEMC Electronic Materials and Texas Instruments underperformed due to lower earnings expectations as slowing end markets have led to reduced demand for semiconductors. Software provider Symantec also performed poorly because of market share losses in key end markets for its security software. In the consumer staples area, poor returns from agriculture giant Archer Daniels Midland and packaged food company ConAgra Foods detracted from performance. Both companies delivered earnings that were below expectations due to poor execution in their respective end markets. Other securities which negatively impacted performance included retailers Abercrombie & Fitch and J.C. Penney: both saw reduction in earnings due to slower consumer spending and excess inventories which caused additional markdowns.
What strategic moves were made by the fund and why?
The fund was overweight in the technology, materials, healthcare, and consumer discretionary sectors, while it was underweight in utilities, energy, industrials, and financials. We continued to implement our investment process of selecting companies that exhibit stable to improving fundamentals, sell at attractive valuations, and exhibit a near-term catalyst that could improve investor perception. We focused on opportunities to increase concentrations in companies that we believe will benefit from improving fundamentals not fully recognized by the market. Our basic view of the investment environment is constructive, as we look for the deleveraging of capital markets to moderate, and various stimulus initiatives to stabilize economic activity. We believe equity valuations are attractive, which should allow stocks to attain modest appreciation.
26 First American Funds 2008 Annual Report
Table of Contents
Annual Performance1,2
October 31, 2008 | September 30, 2008* | |||||||||||||||||||||||||||||||||||||||
Since Inception | Since Inception | |||||||||||||||||||||||||||||||||||||||
1 year | 5 years | 10 years | 2/01/1999 | 9/24/2001 | 1 year | 5 years | 10 years | 2/01/1999 | 9/24/2001 | |||||||||||||||||||||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||||||||||||||||||||||||||
Class A | (37.64 | )% | 0.48 | % | 0.21 | % | — | — | (25.98 | )% | 5.04 | % | 2.65 | % | — | — | ||||||||||||||||||||||||
Class B | (37.34 | )% | 0.56 | % | 0.02 | % | — | — | (25.61 | )% | 5.12 | % | 2.47 | % | — | — | ||||||||||||||||||||||||
Class C | (35.03 | )% | 0.88 | % | — | (0.91 | )% | — | (22.91 | )% | 5.45 | % | — | 0.72 | % | — | ||||||||||||||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||||||||||||||||||||||||||
Class A | (34.00 | )% | 1.63 | % | 0.78 | % | — | — | (21.67 | )% | 6.24 | % | 3.24 | % | — | — | ||||||||||||||||||||||||
Class B | (34.51 | )% | 0.86 | % | 0.02 | % | — | — | (22.25 | )% | 5.44 | % | 2.47 | % | — | — | ||||||||||||||||||||||||
Class C | (34.46 | )% | 0.88 | % | — | (0.91 | )% | — | (22.24 | )% | 5.45 | % | — | 0.72 | % | — | ||||||||||||||||||||||||
Class R | (34.13 | )% | 1.41 | % | — | — | 1.88 | % | (21.84 | )% | 6.02 | % | — | — | 4.22 | % | ||||||||||||||||||||||||
Class Y | (33.80 | )% | 1.89 | % | 1.03 | % | — | — | (21.46 | )% | 6.51 | % | 3.50 | % | — | — | ||||||||||||||||||||||||
Russell 1000 Value Index3 | (36.80 | )% | 1.90 | % | 2.79 | % | 2.00 | % | 3.27 | % | (23.56 | )% | 7.12 | % | 5.55 | % | 4.05 | % | 6.14 | % | ||||||||||||||||||||
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
1 | Mutual fund investing involves risk; principal loss is possible. |
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. | |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 5.50% for Class A shares and the contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV. | |
Investment performance in the table reflects fee waivers that had been in effect for certain portions of the periods indicated. In the absence of such fee waivers, total returns would be reduced. | |
As of the most recent prospectus, the fund’s total operating expense ratio for Class A, Class B, Class C, Class R, and Class Y shares was 1.17%, 1.92%, 1.92%, 1.42%, and 0.92%, respectively. |
* | This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period. |
Value of $10,000 Investment1,2,4 as of October 31, 2008
Large Cap Value Fund, Class A (NAV) | ![]() | $ | 10,806 | |||||
Large Cap Value Fund, Class A (POP) | ![]() | $ | 10,210 | |||||
Russell 1000 Value Index3 | ![]() | $ | 13,166 | |||||
This chart illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 10/31/1998 to 10/31/2008) as compared to the Russell 1000 Value Index3.
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950137-09-000237/c48053c4805920.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
3 | An unmanaged index that measures the performance of those companies in the Russell 1000 Index (large-cap index) with lower price-to-book ratios and lower forecasted growth values. |
4 | Performance for Class B, Class C, Class R and Class Y shares is not presented. Performance for these classes will vary due to the different expense structures. |
First American Funds 2008 Annual Report 27
Table of Contents
Mid Cap Growth Opportunities Fund
Investment Objective: capital appreciation
How did the fund perform for the fiscal year ended October 31, 2008?
The First American Mid Cap Growth Opportunities Fund (the “fund”), Class Y shares, returned -42.59% for the fiscal year ended October 31, 2008 (Class A shares returned -42.75% without taking the sales charge into account). By comparison, the fund’s benchmark, the Russell Midcap Growth Index*, returned -42.65% for the same period.
How did market conditions affect stock market performance during the fiscal year?
It’s impossible to discuss the state of the equity markets during the fiscal year without addressing the impact of the subprime loan debacle and the ensuing financial crisis on stock market performance. Concerns about the proliferation of subprime mortgage loans and the lax lending standards they represented arose as early as February 2007. By October of 2007, the threat of large-scale defaults became more pronounced, as did their potential effect on various highly complex securities into which subprime mortgages had been converted. What caught most market participants off guard was the severity of the crisis — the sheer volume of assets that were impaired, the extent to which the holders of those assets were hurt, and the effect of these assets on the financial system.
The financial crisis that followed gradually brought most credit activity to a halt and drained liquidity out of the markets, prompting the federal government to stage several interventions to save ailing financial institutions whose vulnerability suddenly became apparent. The takeovers of Federal Home Loan Mortgage Corporation (Freddie Mac), Federal National Mortgage Association (Fannie Mae), and of AIG, however, were ad hoc solutions rather than consequences of any broad-based policy. In the absence of such policy, the government actions tended to cause more uncertainty than calm, and the markets lost trust in this approach. Prolonged volatility ensued.
What began as a U.S.-based financial crisis rapidly led to a global recession and with it the collapse of commodity prices and the prospect of sharply reduced corporate earnings. As hedge funds undertook a massive effort to repay the loans on which they relied for operations, liquidation sales forced asset prices to plummet far below their fair value. In this environment, the outlook for financial markets appeared bleak indeed. By the end of the fiscal period, however, there were signs that the worst may be behind us. For one thing, the coordinated policy response to the crisis by governments worldwide began to introduce a measure of ease to the financial and credit markets, restoring badly needed liquidity. And because forced liquidations brought asset prices into the bargain territory, there is good value now for investors to be found in the riskier asset classes.
What will be the likely developments in the equity markets in the coming fiscal year?
We expect the more defensively positioned sectors (healthcare, consumer staples) and sectors that tend to thrive early in the economic cycle (financials, consumer discretionary, retail) to make gains, while late-cycle sectors (energy, basic materials, industrials) will most likely remain under pressure. Clearly, conditions will remain challenging for some time to come, but as the most acute stages of the crisis recede into the past, we anticipate a gradual return of opportunities.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Top 10 Holdings as of October 31, 20081 (% of net assets)
St. Jude Medical | 2.8 | % | ||
Express Scripts | 2.6 | |||
TJX | 2.2 | |||
Juniper Networks | 2.2 | |||
Thermo Fisher Scientific | 2.1 | |||
American Tower, Class A | 2.1 | |||
Family Dollar Stores | 2.1 | |||
Kohl’s | 2.0 | |||
Republic Services | 2.0 | |||
DeVry | 2.0 | |||
Sector Allocation as of October 31, 20081 (% of net assets)
Information Technology | 18.7 | % | ||
Consumer Discretionary | 18.3 | |||
Healthcare | 18.0 | |||
Industrials | 13.2 | |||
Energy | 9.6 | |||
Financials | 8.0 | |||
Consumer Staples | 5.0 | |||
Telecommunication Services | 4.9 | |||
Materials | 3.6 | |||
Short-Term Investment | 0.2 | |||
Other Assets and Liabilities, Net2 | 0.5 | |||
100.0 | % | |||
1 | Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security. |
2 | 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. |
28 First American Funds 2008 Annual Report
Table of Contents
What worked for the fund and why?
Good stock selection in the material and industrial sectors led to positive relative performance over the past fiscal year before taking into account fund expenses. Our process of investing in companies with franchise growth characteristics and improving fundamentals led us to sizeable overweight positions in companies with relatively predictable earnings, as well as those in the healthcare sector, an area that has defensive characteristics. Holdings in the materials sector include Ecolab, a maker of cleaning products and services, and packaging product manufacturers Sonoco Products and Pactiv. All three of these companies benefited from their defensive business models and from lower input costs due to falling commodity prices. Within the industrial sector, freight transportation companies Knight Transportation and C.H. Robinson increased in value, benefiting from lower diesel fuel prices and from many of their competitors’ leaving the business. Republic Services, a waste management company, and Dun & Bradstreet, a business information provider, also proved to be less sensitive to the overall economy than many of their peers.
What did not work for the fund and why?
Our primary challenge during the fiscal year was stock selection in the technology and energy sectors. Long-time holding MEMC Electronics, a manufacturer of a key material for the production of photovoltaic cells for the solar industry, declined significantly as the company had difficulty ramping new capacity to meet strong demand. Another technology holding, Fairchild Semiconductor, a provider of semiconductor devices used in power-management applications, declined in value as the weak economy caused order push-outs and cancellations. Energy holding Nabors Industries, an owner and operator of land-drilling rigs in North America, fared poorly as the outlook for drilling activity and drilling rates dimmed in concert with the fall in natural gas and crude prices.
What strategic moves were made by the fund and why?
Our approach emphasizes franchise companies that exhibit improving fundamentals and attractive valuations with an identifiable catalyst. As a result, we remained overweight in healthcare due to sustainable growth characteristics that are generally less affected by macroeconomic concerns. We also retained our overweight position in telecommunication services primarily due to our investments in wireless tower companies and the stable nature of their business models. Our investment approach also led us to pull away from the economically sensitive industrial sector over the course of the last fiscal year. Key sales in the industrial sector include Rockwell Collins, Precision Castparts, American Reprographics, Cooper Industries, McDermott International, and Cummins. The fund also increased the weight in consumer staples, a relatively defensive sector. Key purchases were H.J. Heinz, Kellogg, and Alberto-Culver. Earnings for these companies are likely to increase over the next year, unlike the significant declines we expect for the mid-cap growth universe on average.
First American Funds 2008 Annual Report 29
Table of Contents
Mid Cap Growth Opportunities Fund
Annual Performance1,2
October 31, 2008 | September 30, 2008* | |||||||||||||||||||||||||||||||||||||||||||||||
Since Inception | Since Inception | |||||||||||||||||||||||||||||||||||||||||||||||
1 year | 5 years | 10 years | 3/1/1999 | 12/11/2000 | 9/24/2001 | 1 year | 5 years | 10 years | 3/1/1999 | 12/11/2000 | 9/24/2001 | |||||||||||||||||||||||||||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||||||||||||||||||||||||||||||||||
Class A | (45.90 | )% | 0.22 | % | 4.44 | % | — | — | — | (33.01 | )% | 6.03 | % | 6.91 | % | — | — | — | ||||||||||||||||||||||||||||||
Class B | (45.69 | )% | 0.37 | % | — | 4.35 | % | — | — | (32.76 | )% | 6.19 | % | — | 6.68 | % | — | — | ||||||||||||||||||||||||||||||
Class C | (43.67 | )% | 0.61 | % | — | — | — | 4.27 | % | (30.27 | )% | 6.44 | % | — | — | — | 7.47 | % | ||||||||||||||||||||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||||||||||||||||||||||||||||||||||
Class A | (42.75 | )% | 1.36 | % | 5.04 | % | — | — | — | (29.11 | )% | 7.24 | % | 7.51 | % | — | — | — | ||||||||||||||||||||||||||||||
Class B | (43.18 | )% | 0.61 | % | — | 4.35 | % | — | — | (29.65 | )% | 6.44 | % | — | 6.68 | % | — | — | ||||||||||||||||||||||||||||||
Class C | (43.16 | )% | 0.61 | % | — | — | — | 4.27 | % | (29.64 | )% | 6.44 | % | — | — | — | 7.47 | % | ||||||||||||||||||||||||||||||
Class R | (42.88 | )% | 1.16 | % | — | — | 0.91 | % | — | (29.28 | )% | 7.02 | % | — | — | 3.64 | % | — | ||||||||||||||||||||||||||||||
Class Y | (42.59 | )% | 1.63 | % | 5.30 | % | — | — | — | (28.96 | )% | 7.51 | % | 7.78 | % | — | — | — | ||||||||||||||||||||||||||||||
Russell MidCap Growth Index3 | (42.65 | )% | (0.18 | )% | 2.19 | % | 0.74 | % | (4.60 | )% | 3.46 | % | (24.65 | )% | 6.53 | % | 5.51 | % | 3.38 | % | (1.57 | )% | 7.23 | % | ||||||||||||||||||||||||
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
1 | Stocks of mid-capitalization companies may be slightly less volatile than those of small-capitalization companies, but they still involve substantial risk and may be subject to increased volatility and more price fluctuation than large-capitalization companies. |
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV.
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 5.50% for Class A shares and the contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.
Investment performance in the table reflects fee waivers that had been in effect for certain portions of the periods indicated. In the absence of such fee waivers, total returns would be reduced.
As of the most recent prospectus, the fund’s total annual operating expense ratio (including acquired fund fees and expenses which the fund indirectly bears) for Class A, Class B, Class C, Class R, and Class Y shares was 1.22%, 1.97%, 1.97%, 1.47%, and 0.97%, respectively.
* | This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period. |
Value of $10,000 Investment1,2,4 as of October 31, 2008
Mid Cap Growth Opportunities Fund, Class A (NAV) | ![]() | $ | 16,347 | |||||
Mid Cap Growth Opportunities Fund, Class A (POP) | ![]() | $ | 15,447 | |||||
Russell Midcap Growth Index3 | ![]() | $ | 12,425 | |||||
This chart illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 10/31/1998 to 10/31/2008) as compared to the Russell Midcap Growth Index3.
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950137-09-000237/c48053c4805921.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
On September 24, 2001, the First American Mid Cap Growth Opportunities Fund became the successor by merger to the Firstar MidCap Core Equity Fund, a series of Firstar Funds, Inc. Prior to the merger, the First American fund had no assets or liabilities. Performance presented prior to September 24, 2001 represents that of the Firstar MidCap Core Equity Fund.
3 | An unmanaged index that measures the performance of those Russell mid-cap companies with higher price-to-book ratios and higher forecasted growth values. |
4 | Performance for Class B, Class C, Class R, and Class Y shares is not presented. Performance for these classes will vary due to the different expense structures. |
30 First American Funds 2008 Annual Report
Table of Contents
Mid Cap Value Fund
Investment Objective: capital appreciation
How did the Fund perform for the fiscal year ended October 31, 2008?
The First American Mid Cap Value Fund (the “fund”), Class Y shares, returned -37.17% for the fiscal year ended October 31, 2008 (Class A shares returned -37.32% without taking the sales charge into account). By comparison, the fund’s benchmark, the Russell Midcap Value Index*, returned -38.83% for the same period.
How did market conditions affect stock market performance during the fiscal year?
It’s impossible to discuss the state of the equity markets during the fiscal year without addressing the impact of the subprime loan debacle and the ensuing financial crisis on stock market performance. Concerns about the proliferation of subprime mortgage loans and the lax lending standards they represented arose as early as February 2007. By October of 2007, the threat of large-scale defaults became more pronounced, as did their potential effect on various highly complex securities into which subprime mortgages had been converted. What caught most market participants off guard was the severity of the crisis — the sheer volume of assets that were impaired, the extent to which the holders of those assets were hurt, and the effect of these assets on the financial system.
The financial crisis that followed gradually brought most credit activity to a halt and drained liquidity out of the markets, prompting the federal government to stage several interventions to save ailing financial institutions whose vulnerability suddenly became apparent. The takeovers of Federal Home Loan Mortgage Corporation (Freddie Mac), Federal National Mortgage Association (Fannie Mae), and of AIG, however, were ad hoc solutions rather than consequences of any broad-based policy. In the absence of such policy, the government actions tended to cause more uncertainty than calm, and the markets lost trust in this approach. Prolonged volatility ensued.
What began as a U.S.-based financial crisis rapidly led to a global recession and with it the collapse of commodity prices and the prospect of sharply reduced corporate earnings. As hedge funds undertook a massive effort to repay the loans on which they relied for operations, liquidation sales forced asset prices to plummet far below their fair value. In this environment, the outlook for financial markets appeared bleak indeed. By the end of the fiscal period, however, there were signs that the worst may be behind us. For one thing, the coordinated policy response to the crisis by governments worldwide began to introduce a measure of ease to the financial and credit markets, restoring badly needed liquidity. And because forced liquidations brought asset prices into the bargain territory, there is good value now for investors to be found in the riskier asset classes.
What will be the likely developments in the equity markets in the coming fiscal year?
We expect the more defensively positioned sectors (healthcare, consumer staples) and sectors that tend to thrive early in the economic cycle (financials, consumer discretionary, retail) to make gains, while late-cycle sectors (energy, basic materials, industrials) will most likely remain under pressure. Clearly, conditions will remain challenging for some time to come, but as the most acute stages of the crisis recede into the past, we anticipate a gradual return of opportunities.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Top 10 Holdings as of October 31, 20081 (% of net assets)
Pactiv | 2.6 | % | ||
Aon | 2.5 | |||
First American Prime Obligations Fund, Class Z | 2.3 | |||
Republic Services | 2.2 | |||
Sonoco Products | 2.2 | |||
Wisconsin Energy | 2.1 | |||
Arch Capital Group | 2.0 | |||
Astoria Financial | 2.0 | |||
Werner Enterprises | 2.0 | |||
PG&E | 2.0 | |||
Sector Allocation as of October 31, 20081 (% of net assets)
Financials | 30.0 | % | ||
Consumer Discretionary | 14.4 | |||
Industrials | 9.4 | |||
Utilities | 9.0 | |||
Consumer Staples | 8.3 | |||
Materials | 7.2 | |||
Information Technology | 6.9 | |||
Energy | 4.6 | |||
Healthcare | 4.5 | |||
Telecommunication Services | 1.8 | |||
Short-Term Investment | 2.3 | |||
Other Assets and Liabilities, Net2 | 1.6 | |||
100.0 | % | |||
1 | Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security. |
2 | Investments in securities typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
First American Funds 2008 Annual Report 31
Table of Contents
Mid Cap Value Fund
What worked for the fund and why?
The fund benefited from positive stock selection in several sectors during the last year. Stock selection was favorable in the financial sector, as regional banks M&T Bank, City National, and TCF Financial, along with nonlife insurance related companies Arch Capital Group, W.R. Berkley, and Aon posted smaller declines, while the fund avoided several of the financial firms that declined dramatically. These outperforming financial companies generally enjoy stronger capital and liquidity positions and may benefit from the current turmoil in the capital markets by capturing market share from weaker competitors. Several stocks in the consumer discretionary sector also outperformed, including fast-food restaurant operator Burger King Holdings and discount stores Family Dollar Stores and TJX Cos. These companies are positioned to benefit from slower economic activity given their value positioning in their respective end markets. In the industrial sector, truckload carrier Werner Enterprises outperformed due to stable industry pricing, continued share gains, and improving margins. Waste-collection operator Republic Services outperformed due to stable volumes, strong industry pricing, and proposed consolidation activity within the sector. Continued share gains, fuel hedging benefits, and a strong balance sheet boosted the performance of low-cost airline Southwest Airlines. Other standouts included specialty chemical manufacturer Rohm & Haas, following its agreement to be purchased by Dow Chemical, and consumer packaging manufacturer Pactiv, which can benefit from lower input costs as a result of falling oil prices.
What did not work for the fund and why?
Sector selection detracted from performance due to an overweight position in several sectors that lagged the benchmark, including consumer discretionary, technology, and telecommunication services. Additionally, the fund was underweight within the energy sector, which outperformed during the period. Poor returns from managed-care organizations Coventry Health Care and Humana Stock detracted from the performance of the fund’s healthcare holdings. Both companies experienced reduced earnings expectations due to cost overruns from higher utilization and healthcare cost inflation. In technology, semiconductor manufacturers MEMC Electronic Materials and Fairchild Semiconductor underperformed due to lower earnings expectations, as slowing end markets have led to a reduction in demand for semiconductors. In telecommunication services, TW Telecom suffered from slowing conditions in its core enterprise communications end markets. Other securities that negatively impacted performance included multiline insurance provider Assurant and automotive airbag manufacturer Autoliv. Both companies experienced a reduction in earnings expectations.
What strategic moves were made by the fund and why?
The fund has been overweight in the consumer discretionary, industrial, and materials sectors, while it has been underweight in utilities, consumer staples, energy, and financials. We continued to implement our investment process of selecting companies that exhibit stable-to-improving fundamentals, sell at attractive valuations, and anticipate a near-term catalyst that could improve investor perception. We also focused on opportunities to increase concentrations in companies that we believe will benefit from improving fundamentals not fully recognized by the market. Our basic view of the investment environment is constructive, as we look for the deleveraging of capital markets to moderate, and various stimulus initiatives to stabilize, economic activity. We believe equity valuations are attractive given this view, which should allow stocks to attain modest appreciation.
32 First American Funds 2008 Annual Report
Table of Contents
Annual Performance1,2
October 31, 2008 | September 30, 2008* | |||||||||||||||||||||||||||||||||||||||
Since Inception | Since Inception | |||||||||||||||||||||||||||||||||||||||
1 year | 5 years | 10 years | 2/1/1999 | 9/24/2001 | 1 year | 5 years | 10 years | 2/1/1999 | 9/24/2001 | |||||||||||||||||||||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||||||||||||||||||||||||||
Class A | (40.76 | )% | 1.41 | % | 3.71 | % | — | — | (25.97 | )% | 7.27 | % | 7.12 | % | — | — | ||||||||||||||||||||||||
Class B | (40.69 | )% | 1.46 | % | 3.53 | % | — | — | (25.85 | )% | 7.38 | % | 6.95 | % | — | — | ||||||||||||||||||||||||
Class C | (38.38 | )% | 1.80 | % | — | 3.51 | % | — | (22.97 | )% | 7.67 | % | — | 5.83 | % | — | ||||||||||||||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||||||||||||||||||||||||||
Class A | (37.32 | )% | 2.56 | % | 4.30 | % | — | — | (21.65 | )% | 8.50 | % | 7.74 | % | — | — | ||||||||||||||||||||||||
Class B | (37.82 | )% | 1.79 | % | 3.53 | % | — | — | (22.26 | )% | 7.68 | % | 6.95 | % | — | — | ||||||||||||||||||||||||
Class C | (37.80 | )% | 1.80 | % | — | 3.51 | % | — | (22.26 | )% | 7.67 | % | — | 5.83 | % | — | ||||||||||||||||||||||||
Class R | (37.47 | )% | 2.35 | % | — | — | 5.91 | % | (21.86 | )% | 8.26 | % | — | — | 9.20 | % | ||||||||||||||||||||||||
Class Y | (37.17 | )% | 2.82 | % | 4.56 | % | — | — | (21.47 | )% | 8.76 | % | 8.01 | % | — | — | ||||||||||||||||||||||||
Russell Midcap Value Index3 | (38.83 | )% | 2.97 | % | 5.74 | % | 5.47 | % | 6.46 | % | (20.50 | )% | 9.97 | % | 9.19 | % | 8.38 | % | 10.54 | % | ||||||||||||||||||||
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 | Stocks of mid-capitalization companies may be slightly less volatile than those of small-capitalization companies, but they still involve substantial risk and may be subject to increased volatility and more price fluctuation than large-capitalization companies. |
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV.
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 5.50% for Class A shares and the contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.
Investment performance in the table reflects fee waivers that had been in effect for certain portions of the periods indicated. In the absence of such fee waivers, total returns would be reduced.
As of the most recent prospectus, the fund’s total annual operating expense ratio (including acquired fund fees and expenses, which the fund indirectly bears) for Class A, Class B, Class C, Class R, and Class Y shares was 1.23%, 1.98%, 1.98%, 1.48%, and 0.98%, respectively.
* | This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period. |
Value of $10,000 Investment 1,2,4 as of October 31, 2008
Mid Cap Value Fund, Class A (NAV) | ![]() | $ | 15,230 | |||||
Mid Cap Value Fund, Class A (POP) | ![]() | $ | 14,393 | |||||
Russell Midcap Value Index3 | ![]() | $ | 17,479 | |||||
This chart illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 10/31/1998 to 10/31/2008) as compared to the Russell Midcap Value Index3.
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950137-09-000237/c48053c4805922.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
3 | An unmanaged index that measures the performance of those Russell mid-cap companies with lower price-to-book ratios and lower forecasted growth values. |
4 | Performance for Class B, Class C, Class R, and Class Y shares is not presented. Performance for these classes will vary due to the different expense structures. |
First American Funds 2008 Annual Report 33
Table of Contents
Real Estate Securities Fund
Investment Objective: to provide above-average current income and long-term capital appreciation
How did the fund perform for the fiscal year ended October 31, 2008?
The First American Real Estate Securities Fund (the “fund”), Class Y shares, returned -37.56% for the fiscal year ended October 31, 2008 (Class A shares returned -37.71% without taking the sales charge into account). By comparison, the fund’s benchmark, the MSCI U.S. REIT Index*, returned -40.46% for the same period.
How did market conditions affect stock market performance during the fiscal year?
It’s impossible to discuss the state of the equity markets during the fiscal year without addressing the impact of the subprime loan debacle and the ensuing financial crisis on stock market performance. Concerns about the proliferation of subprime mortgage loans and the lax lending standards they represented arose as early as February 2007. By October of 2007, the threat of large-scale defaults became more pronounced, as did their potential effect on various highly complex securities into which subprime mortgages had been converted. What caught most market participants off guard was the severity of the crisis — the sheer volume of assets that were impaired, the extent to which the holders of those assets were hurt, and the effect of these assets on the financial system.
The financial crisis that followed gradually brought most credit activity to a halt and drained liquidity out of the markets, prompting the federal government to stage several interventions to save ailing financial institutions whose vulnerability suddenly became apparent. The takeovers of Federal Home Loan Mortgage Corporation (Freddie Mac), Federal National Mortgage Association (Fannie Mae), and of AIG, however, were ad hoc
solutions rather than consequences of any broad-based policy. In the absence of such policy, the government actions tended to cause more uncertainty than calm, and the markets lost trust in this approach. Prolonged volatility ensued.
What began as a U.S.-based financial crisis rapidly led to a global recession and with it the collapse of commodity prices and the prospect of sharply reduced corporate earnings. As hedge funds undertook a massive effort to repay the loans on which they relied for operations, liquidation sales forced asset prices to plummet far below their fair value. In this environment, the outlook for financial markets appeared bleak indeed. By the end of the fiscal period, however, there were signs that the worst may be behind us. For one thing, the coordinated policy response to the crisis by governments worldwide began to introduce a measure of ease to the financial and credit markets, restoring badly needed liquidity. And because forced liquidations brought asset prices into the bargain territory, there is good value now for investors to be found in the riskier asset classes.
Commercial real estate is a capital-intensive industry and faces significant headwinds from the financial and economic environment described above. A slowing economy will adversely impact occupancies and rental rates for commercial properties. The capital-constrained environment has led to a dramatic reduction in the number of private market transactions occurring. Publicly traded real estate stocks outperformed broader equity markets through September 30, 2008, but had a dramatic sell off in October, the worst single monthly performance ever for real estate investment trusts.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Top 10 Holdings as of October 31, 20081 (% of net assets)
Simon Property Group | 8.3 | % | ||
Public Storage | 6.1 | |||
Ventas | 5.2 | |||
Boston Properties | 5.2 | |||
Equity Residential Properties Trust | 5.0 | |||
Kimco Realty | 3.8 | |||
HCP | 3.7 | |||
Vornado Realty Trust | 3.6 | |||
Highwoods Properties | 2.9 | |||
First American Prime Obligations Fund, Class Z | 2.5 |
Sector Allocation as of October 31, 20081 (% of net assets)
Office | 21 | .8 | % | ||
Healthcare | 16 | .4 | |||
Apartments | 15 | .1 | |||
Malls | 10 | .3 | |||
Community Centers | 9 | .6 | |||
Industrials | 6 | .9 | |||
Self Storage | 6 | .3 | |||
Diversified | 4 | .1 | |||
Hotels | 2 | .9 | |||
Net Lease | 2 | .7 | |||
Manufactured Homes | 0 | .2 | |||
Real Estate Service Provider | 0 | .0 | |||
Private Real Estate Companies | 0 | .0 | |||
Short-Term Investment | 2 | .5 | |||
Other Assets and Liabilities, Net2 | 1 | .2 | |||
100 | .0 | % |
1 | Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security. |
2 | Investments 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. |
34 First American Funds 2008 Annual Report
Table of Contents
What worked for the fund and why?
The fund benefited from individual stock selection. The portfolio had a bias toward higher-quality companies (those with consistent, visible cash flows), and continues to invest on a relative-value basis (with a focus on individual stocks rather than economic or market cycles). This strategy helped the fund avoid several underperforming stocks. Reduced holdings in job markets with financial services industry exposure also proved beneficial. The fund’s best-performing sectors were regional malls, hotel REITs and industrial.
What did not work for the fund and why?
The healthcare REIT sector underperformed as the fund was underweight some of the better performing individual stocks.
What strategic moves were made by the fund and why?
Reducing exposure to the financial services industry employment proved to be a successful strategy. In addition, because the fund continued to invest on a relative-value basis, it garnered a fairly balanced position across the various property types, which benefited the fund by reducing the impact of any one negatively performing sector. The fund continued to use international stocks to supplement domestic holdings in an attempt to access more dynamic parts of the global real estate cycle. At the end of the fiscal year the fund had less than 3% of assets in nondollar denominated stocks.
First American Funds 2008 Annual Report 35
Table of Contents
Real Estate Securities Fund
Annual Performance1,2
October 31, 2008 | September 30, 2008* | |||||||||||||||||||||||||||||||||||||||
Since Inception | Since Inception | |||||||||||||||||||||||||||||||||||||||
1 year | 5 years | 10 years | 2/1/2000 | 9/24/2001 | 1 year | 5 years | 10 years | 2/1/2000 | 9/24/2001 | |||||||||||||||||||||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||||||||||||||||||||||||||
Class A | (41.15 | )% | 5.67 | % | 9.48 | % | — | — | (14.69 | )% | 13.89 | % | 13.15 | % | — | — | ||||||||||||||||||||||||
Class B | (40.81 | )% | 5.82 | % | 9.28 | % | — | — | (14.26 | )% | 14.07 | % | 12.94 | % | — | — | ||||||||||||||||||||||||
Class C | (38.71 | )% | 6.07 | % | — | 11.22 | % | — | (11.18 | )% | 14.33 | % | — | 15.98 | % | — | ||||||||||||||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||||||||||||||||||||||||||
Class A | (37.71 | )% | 6.87 | % | 10.10 | % | — | — | (9.74 | )% | 15.18 | % | 13.79 | % | — | — | ||||||||||||||||||||||||
Class B | (38.18 | )% | 6.06 | % | 9.28 | % | — | — | (10.45 | )% | 14.31 | % | 12.94 | % | — | — | ||||||||||||||||||||||||
Class C | (38.19 | )% | 6.07 | % | — | 11.22 | % | — | (10.42 | )% | 14.33 | % | — | 15.98 | % | — | ||||||||||||||||||||||||
Class R | (37.90 | )% | 6.61 | % | — | — | 10.59 | % | (9.97 | )% | 14.93 | % | — | — | 16.45 | % | ||||||||||||||||||||||||
Class Y | (37.56 | )% | 7.14 | % | 10.38 | % | — | — | (9.53 | )% | 15.47 | % | 14.08 | % | — | — | ||||||||||||||||||||||||
MSCI U.S. REIT Index3 | (40.46 | )% | 4.49 | % | 8.37 | % | 10.09 | % | 8.78 | % | (11.63 | )% | 13.18 | % | 12.38 | % | 15.17 | % | 14.99 | % | ||||||||||||||||||||
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
1 | Sector funds such as the First American Real Estate Securities Fund are more vulnerable to price fluctuation as a result of events that may affect the industry in which they focus than are funds that invest in multiple industries. Share prices of sector funds also will fluctuate with changing market conditions, as will share prices of other stock funds. Sector funds should not be treated as a core investment; rather, their role is to round out the growth portion of a well-diversified investment portfolio. |
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV.
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 5.50% for Class A shares and the contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.
Investment performance in the table reflects fee waivers that had been in effect for certain portions of the periods indicated. In the absence of such fee waivers, total returns would be reduced.
As of the most recent prospectus, the fund’s total annual operating expense ratio (including acquired fund fees and expenses which the fund indirectly bears) for Class A, Class B, Class C, Class R, and Class Y shares was 1.23%, 1.98%, 1.98%, 1.48%, and 0.98%, respectively.
* | This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period. |
Value of $10,000 Investment1,2,4 as of October 31, 2008
Real Estate Securities Fund, Class A (NAV) | ![]() | $ | 26,172 | |||||
Real Estate Securities Fund, Class A (POP) | ![]() | $ | 24,736 | |||||
MSCI U.S. REIT Index3 | ![]() | $ | 22,341 | |||||
This chart illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 10/31/1998 to 10/31/2008) as compared to the MSCI U.S. REIT Index3.
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950137-09-000237/c48053c4805923.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
3 | An unmanaged index of the most actively traded real estate investment trusts. |
4 | Performance for Class B, Class C, Class R, and Class Y shares is not presented. Performance for these classes will vary due to the different expense structures. |
36 First American Funds 2008 Annual Report
Table of Contents
Small Cap Growth Opportunities Fund
Investment Objective: growth of capital
How did the fund perform for the fiscal year ended October 31, 2008?
The First American Small Cap Growth Opportunities Fund (the “fund”), Class Y shares, returned -39.97% for the fiscal year ended October 31, 2008 (Class A shares returned -40.07% without taking the sales charge into account). By comparison, the fund’s benchmark, the Russell 2000 Growth Index*, returned -37.87% for the same period.
How did market conditions affect stock market performance during the fiscal year?
It’s impossible to discuss the state of the equity markets during the fiscal year without addressing the impact of the subprime loan debacle and the ensuing financial crisis on stock market performance. Concerns about the proliferation of subprime mortgage loans and the lax lending standards they represented arose as early as February 2007. By October of last year, the threat of large-scale defaults became more pronounced, as did their potential effect on various highly complex securities into which subprime mortgages had been converted. What caught most market participants off guard was the severity of the crisis — the sheer volume of assets that were impaired, the extent to which the holders of those assets were hurt, and the effect of these assets on the financial system.
The financial crisis that followed gradually brought most credit activity to a halt and drained liquidity out of the markets, prompting federal government to stage several interventions to save ailing financial institutions whose vulnerability suddenly became apparent. The takeovers of Freddie Mac, Fannie Mae, and of AIG, however, were ad hoc solutions rather than consequences of any broad-based policy. In the absence of such policy, the government actions tended to cause more uncertainty than calm, and the markets lost trust in this approach. Prolonged volatility ensued.
What began as a U.S.-based financial crisis rapidly led to a global recession and with it the collapse of commodity prices and the prospect of sharply reduced corporate earnings. As hedge funds undertook a massive effort to repay the loans on which they relied for operations, liquidation sales forced asset prices to plummet far below their fair value. In this environment, the outlook for financial markets appeared bleak indeed. By the end of the fiscal period, however, there were signs that the worst may be behind us. For one thing, the coordinated policy response to the crisis by governments worldwide began to introduce a measure of ease to the financial and credit markets, restoring badly needed liquidity. And because forced liquidations brought asset prices into the bargain territory, there is good value now for investors to be found in the riskier asset classes.
What will be the likely developments in the equity markets in the coming fiscal year?
We expect the more defensively positioned sectors (healthcare, consumer staples) and sectors that tend to thrive early in the economic cycle (financials, consumer discretionary, retail) to make gains, while late-cycle sectors (energy, basic materials, industrials) will most likely remain under pressure. Clearly, conditions will remain challenging for some time to come, but as the most acute stages of the crisis recede into the past, we anticipate a gradual return of opportunities.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Top 10 Holdings as of October 31, 20081 (% of net assets)
Intersil, Class A | 2.7 | % | ||
Wolverine World Wide | 2.4 | |||
NuVasive | 2.4 | |||
Polycom | 2.4 | |||
PMC-Sierra | 2.1 | |||
First American Prime Obligations Fund, Class Z | 2.1 | |||
Quest Software | 2.1 | |||
Deckers Outdoor | 1.9 | |||
F5 Networks | 1.8 | |||
Wright Medical Group | 1.8 |
Sector Allocation as of October 31, 20081 (% of net assets)
Information Technology | 27 | .0 | % | ||
Healthcare | 23 | .1 | |||
Industrials | 16 | .2 | |||
Consumer Discretionary | 14 | .8 | |||
Energy | 8 | .0 | |||
Financials | 4 | .6 | |||
Consumer Staples | 2 | .7 | |||
Materials | 1 | .7 | |||
Short-Term Investment | 2 | .1 | |||
Other Assets & Liabilities, Net2 | (0 | .2 | ) | ||
100 | .0 | % |
1 | Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security. |
2 | Investments in securities typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
First American Funds 2008 Annual Report 37
Table of Contents
Small Cap Growth Opportunities Fund
What worked for the fund and why?
Consumer Discretionary performed well for the fund with solid relative stock selection. Aeropostale, a mall-based teen retailer, continued to post impressive growth throughout the fiscal year despite the negative impact of the decelerating U.S. economy. Priceline.com, an online travel service, posted strong growth throughout the fiscal year as a result of market share gains in Europe. Wolverine World Wide, a manufacturer of footwear, held up relatively well during the fiscal year due to both strong brand momentum (Merrell) and strong penetration into European markets.
The fund’s technology holdings also fared well on a relative basis. F5 Networks, a provider of advanced application acceleration hardware and software, was the top performing technology stock, as the company exceeded expectations for the second and third calendar quarters. Tellabs, a provider of voice, data, and video transport equipment sold to telecommunication providers, reported a solid third calendar quarter, beating analysts’ expectations, resulting in share appreciation. Foundry Networks, a provider of networking equipment sold to enterprises and service providers, agreed to be purchased by Brocade Communications Systems for a sizeable premium. Also, the fund benefitted during the fiscal year by being underweight materials and telecommunication services, sectors that fared poorly during the fiscal year.
What did not work for the fund and why?
Industrials had a negative impact on performance due to an underweight position and poor stock selection. Evergreen Solar, a manufacturer of solar power cells, panels and systems, performed poorly in the latter half of the fiscal year as investor’s became concerned regarding potential industry over-capacity and financing needs. Advisory Board, a “best practices” research group dedicated to the health care industry, reported an unexpected slowing in revenue and profits for the June quarter, resulting in a significant pullback in the stock. The funds’ performance in industrials was also negatively impacted by the strong performance of many solar-related names not held, most notably Energy Conversions.
Energy stocks were also a detractor to the fund’s performance during the fiscal year due both to an underweight position and adverse stock selection. Among held names, Global Industries, a provider of deepwater services to the oil and gas industry, reported weak second quarter results on weather-related project delays in the Middle East, port clearance issues in West Africa and low utilization caused by dry-docked vessels. Shares of Oil States International were impacted by investor concerns that sharply falling natural gas prices late in the year would impact its tubular goods business. Finally, the fund’s performance was also impacted by its lack of exposure to coal, an atypical sector for growth investors, which created tremendous momentum among select, large names that subsequently were removed from the Russell 2000 Growth Index during the June 2008 rebalancing.
Healthcare stocks also weighed on results during the year, primarily due to stock selection. Regeneration Technologies, a small provider of orthobiologic implants, reported a temporary disruption in its sports medicine business and continued sluggishness for dental and spinal implants, which sent shares lower. Hologic, the nation’s leading provider of female diagnostic equipment and implants, lagged on integration issues with the acquisition of a major cytology company and as investors became concerned with capital equipment purchases. Finally, shares of Eurand N.V., a specialty pharmaceutical company, declined in response to uncertainties surrounding the approval of its lead product, Zentase, for cystic fibrosis. We find the valuations of each of these names very compelling and maintain positions in the portfolio.
What strategic moves were made by the fund and why?
We have been moving the portfolio toward sector exposures closer to the Russell 2000 Growth Index, as it is not clear which sectors are poised to outperform in this uncertain economic climate. As such, we have reduced our sector overweight position in technology and increased the fund’s weighting in health care, which is considered to be less economically sensitive. Although at October 31, 2008 the fund was overweight in the consumer discretionary sector, the overweighting was concentrated in the footwear manufacturing and retailing subsectors, which we believe may be somewhat less economically sensitive relative to other consumer discretionary subsectors, such as specialty retail and restaurants. At October 31, 2008 the fund was market weighted in late cycle sectors (energy, materials, and industrials), and underweight financials. Our investment strategy continues to be driven by our focus on long-term economic trends as a means to identify investment opportunities in companies with growth characteristics and reasonable valuations.
38 First American Funds 2008 Annual Report
Table of Contents
Annual Performance1,2
October 31, 2008 | September 30, 2008* | |||||||||||||||||||||||||||||||||||||||||||||||
Since Inception | Since Inception | |||||||||||||||||||||||||||||||||||||||||||||||
1 year | 5 years | 10 years | 3/1/1999 | 12/11/2000 | 9/24/2001 | 1 year | 5 years | 10 years | 3/1/1999 | 12/11/2000 | 9/24/2001 | |||||||||||||||||||||||||||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||||||||||||||||||||||||||||||||||
Class A | (43.37 | )% | (5.11 | )% | 10.91 | % | — | — | — | (24.26 | )% | 1.44 | % | 14.13 | % | — | — | — | ||||||||||||||||||||||||||||||
Class B | (43.27 | )% | (4.99 | )% | — | 9.90 | % | — | — | (24.15 | )% | 1.57 | % | — | 12.95 | % | — | — | ||||||||||||||||||||||||||||||
Class C | (41.08 | )% | (4.76 | )% | — | — | — | 1.69 | % | (21.16 | )% | 1.83 | % | — | — | — | 5.47 | % | ||||||||||||||||||||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||||||||||||||||||||||||||||||||||
Class A | (40.07 | )% | (4.03 | )% | 11.54 | % | — | — | — | (19.86 | )% | 2.59 | % | 14.78 | % | — | — | — | ||||||||||||||||||||||||||||||
Class B | (40.55 | )% | (4.76 | )% | — | 9.90 | % | — | — | (20.52 | )% | 1.82 | % | — | 12.95 | % | — | — | ||||||||||||||||||||||||||||||
Class C | (40.53 | )% | (4.76 | )% | — | — | — | 1.69 | % | (20.43 | )% | 1.83 | % | — | — | — | 5.47 | % | ||||||||||||||||||||||||||||||
Class R | (40.24 | )% | (4.22 | )% | — | — | (0.52 | )% | — | (20.07 | )% | 2.41 | % | — | — | 2.77 | % | — | ||||||||||||||||||||||||||||||
Class Y | (39.97 | )% | (3.82 | )% | 11.81 | % | — | — | — | (19.70 | )% | 2.84 | % | 15.07 | % | — | — | — | ||||||||||||||||||||||||||||||
Russell 2000 Growth Index3 | (37.87 | )% | (0.13 | )% | 1.63 | % | 0.47 | % | (2.10 | )% | 3.50 | % | (17.07 | )% | 6.64 | % | 4.67 | % | 3.07 | % | 1.00 | % | 7.22 | % | ||||||||||||||||||||||||
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
1 | Stocks of small-capitalization companies involve substantial risk. These stocks historically have experienced greater price volatility than stocks of larger companies, and they may be expected to do so in the future. |
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV.
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 5.50% for Class A shares and the contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.
Investment performance reflects fee waivers that were in effect during the periods indicated. In the absence of such fee waivers, total returns would be reduced.
As of the most recent prospectus, the fund’s total annual operating expense ratio before waivers (including acquired fund fees and expenses which the fund indirectly bears) for Class A, Class B, Class C, Class R, and Class Y shares was 1.60%, 2.35%, 2.35%, 1.85%, and 1.35%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through June 30, 2009 so that the total annual fund operating expenses (excluding acquired fund fees and expenses) for Class A, Class B, Class C, Class R, and Class Y shares do not exceed 1.47%, 2.22%, 2.22%, 1.72%, and 1.22%, respectively. These fee waivers and expense reimbursements may be terminated at any time after 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.
* | This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period. |
Value of $10,000 Investment1,2,4 as of October 31, 2008
Small Cap Growth Opportunities Fund, Class A (NAV) | ![]() | $ | 29,809 | |||||
Small Cap Growth Opportunities Fund, Class A (POP) | ![]() | $ | 28,171 | |||||
Russell 2000 Growth Index3 | ![]() | $ | 11,750 | |||||
This chart illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 10/31/1998 to 10/31/2008) as compared to the Russell 2000 Growth Index3.
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950137-09-000237/c48053c4805924.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
On December 12, 2002 the fund changed its main investment strategy such that it was permitted to invest in securities of companies with market capitalizations within the range of companies in the Russell 2000 index. Previously, the fund invested primarily in companies with market capitalizations of below $500 million at the time of purchase.
On September 24, 2001, the First American Small Cap Growth Opportunities Fund became the successor by merger to the Firstar MicroCap Fund, a series of Firstar Funds, Inc. Prior to the merger, the First American Fund had no assets or liabilities. Performance presented prior to September 24, 2001, represents that of the Firstar MicroCap Fund.
The First American Small Cap Growth Opportunities Fund’s 1999 returns were higher due in substantial part to its strategy of investing in IPOs in a period favorable for IPO investing. Of course, such favorable returns involve accepting the risk of volatility, and there is no assurance that the fund’s future investment in IPOs will have the same effect on performance as it did in 1999.
3 | An unmanaged index that measures the performance of those Russell 2000 Index (a small-cap index) with higher price-to-book ratios and higher forecasted growth values. |
4 | Performance for Class B, Class C, Class R, and Class Y shares is not presented. Performance for these classes will vary due to the different expense structures. |
First American Funds 2008 Annual Report 39
Table of Contents
Small Cap Select Fund
Investment Objective: capital appreciation
How did the fund perform for the fiscal year ended October 31, 2008?
The First American Small Cap Select Fund (the “fund”), Class Y shares, returned -36.86% for the fiscal year ended October 31, 2008 (Class A shares returned -37.00% without taking the sales charge into account). By comparison, the fund’s benchmark, the Russell 2000 Index*, returned -34.16% for the same period.
How did market conditions affect stock market performance during the fiscal year?
It’s impossible to discuss the state of the equity markets during the fiscal year without addressing the impact of the subprime loan debacle and the ensuing financial crisis on stock market performance. Concerns about the proliferation of subprime mortgage loans and the lax lending standards they represented arose as early as February 2007. By October of 2007, the threat of large-scale defaults became more pronounced, as did their potential effect on various highly complex securities into which subprime mortgages had been converted. What caught most market participants off guard was the severity of the crisis — the sheer volume of assets that were impaired, the extent to which the holders of those assets were hurt, and the effect of these assets on the financial system.
The financial crisis that followed gradually brought most credit activity to a halt and drained liquidity out of the markets, prompting the federal government to stage several interventions to save ailing financial institutions whose vulnerability suddenly became apparent. The takeovers of Federal Home Loan Mortgage Corporation (Freddie Mac), Federal National Mortgage Association (Fannie Mae), and of AIG, however, were ad hoc solutions rather than consequences of any broad-based policy. In the absence of such policy, the government actions tended to cause more uncertainty than calm, and the markets lost trust in this approach. Prolonged volatility ensued.
What began as a U.S.-based financial crisis rapidly led to a global recession and with it the collapse of commodity prices and the prospect of sharply reduced corporate earnings. As hedge funds undertook a massive effort to repay the loans on which they relied for operations, liquidation sales forced asset prices to plummet far below their fair value. In this environment, the outlook for financial markets appeared bleak indeed. By the end of the fiscal period, however, there were signs that the worst may be behind us. For one thing, the coordinated policy response to the crisis by governments worldwide began to introduce a measure of ease to the financial and credit markets, restoring badly needed liquidity. And because forced liquidations brought asset prices into the bargain territory, there is good value now for investors to be found in the riskier asset classes.
What will be the likely developments in the equity markets in the coming fiscal year?
We expect the more defensively positioned sectors (healthcare, consumer staples) and sectors that tend to thrive early in the economic cycle (financials, consumer discretionary, retail) to make gains, while late-cycle sectors (energy, basic materials, industrials) will most likely remain under pressure. Clearly, conditions will remain challenging for some time to come, but as the most acute stages of the crisis recede into the past, we anticipate a gradual return of opportunities.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Top 10 Holdings as of October 31, 20081 (% of net assets)
ESCO Technologies | 2.0 | % | ||
ICU Medical | 1.9 | |||
Coinstar | 1.8 | |||
Bank of the Ozarks | 1.8 | |||
Hain Celestial Group | 1.7 | |||
K-V Pharmaceutical, Class A | 1.7 | |||
Astoria Financial | 1.7 | |||
Progress Software | 1.7 | |||
Platinum Underwriters Holdings | 1.7 | |||
Polycom | 1.7 | |||
Sector Allocation as of October 31, 20081 (% of net assets)
Financials | 18 | .4 | % | ||
Information Technology | 18 | .4 | |||
Consumer Discretionary | 16 | .3 | |||
Industrials | 15 | .4 | |||
Healthcare | 15 | .4 | |||
Energy | 5 | .7 | |||
Consumer Staples | 3 | .9 | |||
Materials | 3 | .2 | |||
Utilities | 1 | .0 | |||
Telecommunication Services | 0 | .8 | |||
Short-Term Investment | 1 | .6 | |||
Other Assets & Liabilities, Net2 | (0 | .1 | ) | ||
100 | .0 | % |
1 | Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security. |
2 | Investments in securities typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
40 First American Funds 2008 Annual Report
Table of Contents
What worked for the fund and why?
Stock selection in the consumer sector was the most beneficial contributor to fund performance during the fiscal year. Shares of Aeropostale were up 27% during the period; all other stocks in the sector were down. Aeropostale benefited from being a price leader in the under-25 casual clothing retail category. PF Chang’s was a relative outperformer, being down only 29% as the rest of the sector was down 48%. PF Chang’s is a Chinese-themed restaurant that has used its strong brand to manage this downturn in the economy better than most other restaurants. In the financial sector, Bank of the Ozarks was a stellar performer, up 7% for this time period when the banking sector was down 15%. The bank operates in Arkansas, Texas, and Oklahoma — an area of the country that benefited from the strong energy prices.
What did not work for the fund and why?
Most companies came under increased pressure as the mortgage market meltdown and ensuing credit crunch dampened economic activity. The South Financial Group, a South Carolina bank, was down 78%, as it was exposed to the soft mortgage market of south Florida. Loan losses were much more severe than the bank had planned, which led to the use of reserves and dramatically reduced its capital adequacy. In healthcare, both KV Pharmaceutical and Pediatrix Medical were down more than 40% for the fiscal year. KV and Pediatrix were both hit by a sharp slowing of the birth rate in the United States, which led to a market decline during the period. Pediatrix has neonatal care centers that have seen their patient numbers decline as the birth rate moved lower, and KV’s prenatal vitamin franchise was negatively impacted by the same trends. In industrials, BE Aerospace had a negative return of 74% as the market took most cyclical company stocks to very low valuations. BE Aerospace manufactures seating for airplanes, and although their business has slowed only marginally, the market has sharply discounted the aerospace-related industries.
What strategic moves were made by the fund and why?
The fund has continued to be well-diversified and continues to execute its discipline of buying good companies with good valuations. It has been a very trying period for the fund to execute on the valuation methodology of its discipline, as almost all firms have been impacted negatively by slowing demand, higher interest costs, lower commodity costs, and general economic weakness. The fund continues to invest in those companies whose management teams take the right steps and have the right products and services to persevere through this incredibly volatile time. The fund has taken a more constructive view on the financial sector as the stocks have come down in price and their problem loans get identified and resolved. Having been underweight in financials for almost four years, the fund has been increasing the weight in that sector bringing it closer to a market weight. The fund has now become overweight in the consumer space, as we like the valuations in many consumer stocks at this point. The other sectors are very close to the index weight. The fund has been tilted toward early cyclical areas in the industrial space such as trucking and services. Most heavy construction and engineering stocks have been sold. The fund is also invested in more service-oriented consumer stocks, as we believe those companies may be best positioned to see the first improvements in economic activity. We have continued to stay away from home builders and other big-ticket consumer items, since the deleveraging of the consumer balance sheet looks to be just beginning.
First American Funds 2008 Annual Report 41
Table of Contents
Small Cap Select Fund
Annual Performance1,2
October 31, 2008 | September 30, 2008* | |||||||||||||||||||||||||||||||
Since Inception | Since Inception | |||||||||||||||||||||||||||||||
1 year | 5 years | 10 years | 9/24/2001 | 1 year | 5 years | 10 years | 9/24/2001 | |||||||||||||||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||||||||||||||||||
Class A | (40.48 | )% | (0.49 | )% | 6.42 | % | — | (24.36 | )% | 5.73 | % | 9.39 | % | — | ||||||||||||||||||
Class B | (40.39 | )% | (0.31 | )% | 6.25 | % | — | (24.20 | )% | 5.96 | % | 9.22 | % | — | ||||||||||||||||||
Class C | (38.02 | )% | (0.11 | )% | — | 5.18 | % | (21.27 | )% | 6.15 | % | — | 8.40 | % | ||||||||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||||||||||||||||||
Class A | (37.00 | )% | 0.65 | % | 7.03 | % | — | (19.97 | )% | 6.94 | % | 10.01 | % | — | ||||||||||||||||||
Class B | (37.52 | )% | (0.13 | )% | 6.25 | % | — | (20.55 | )% | 6.16 | % | 9.22 | % | — | ||||||||||||||||||
Class C | (37.44 | )% | (0.11 | )% | — | 5.18 | % | (20.53 | )% | 6.15 | % | — | 8.40 | % | ||||||||||||||||||
Class R | (37.19 | )% | 0.42 | % | 6.94 | % | — | (20.11 | )% | 6.73 | % | 9.92 | % | — | ||||||||||||||||||
Class Y | (36.86 | )% | 0.88 | % | 7.31 | % | — | (19.71 | )% | 7.22 | % | 10.30 | % | — | ||||||||||||||||||
Russell 2000 Index3 | (34.16 | )% | 1.57 | % | 4.90 | % | 5.80 | % | (14.48 | )% | 8.15 | % | 7.81 | % | 9.45 | % | ||||||||||||||||
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
1 | Stocks of small-capitalization companies involve substantial risk. These stocks historically have experienced greater price volatility than stocks of larger companies, and they may be expected to do so in the future. |
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV.
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 5.50% for Class A shares and the contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.
Investment performance in the table reflects fee waivers that had been in effect for certain portions of the periods indicated. In the absence of such fee waivers, total returns would be reduced.
As of the most recent prospectus, the fund’s total annual operating expense ratio (including acquired fund fees and expenses, which the fund indirectly bears) for Class A, Class B, Class C, Class R, and Class Y shares was 1.24%, 1.99%, 1.99%, 1.49%, and 0.99%, respectively.
* | This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period. |
Value of $10,000 Investment1,2,4 as of October 31, 2008
Small Cap Select Fund, Class A (NAV) | ![]() | $ | 19,726 | |||||
Small Cap Select Fund, Class A (POP) | ![]() | $ | 18,635 | |||||
Russell 2000 Index3 | ![]() | $ | 16,134 | |||||
This chart illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 10/31/1998 to 10/31/2008) as compared to the Russell 2000 Index3.
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950137-09-000237/c48053c4805925.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
On September 24, 2001, the First American Small Cap Select Fund became the successor by merger to the Firstar SmallCap Core Equity Fund, a series of Firstar Funds, Inc. Prior to the merger, the First American Fund had no assets or liabilities. Performance presented prior to September 24, 2001, represents that of the Firstar SmallCap Core Equity Fund. The Firstar SmallCap Core Equity Fund was organized on November 27, 2000, and prior to that, was a separate series of Mercantile Funds, Inc.
3 | An unmanaged small-cap index that measures the performance of the 2,000 smallest companies in the Russell 3000 Index. |
4 | Performance for Class B, Class C, Class R, and Class Y shares is not presented. Performance for these classes will vary due to the different expense structures. |
42 First American Funds 2008 Annual Report
Table of Contents
Small Cap Value Fund
Investment Objective: capital appreciation
How did the fund perform for the fiscal year ended October 31, 2008?
The First American Small Cap Value Fund (the “fund”), Class Y shares, returned -31.56% for the fiscal year ended October 31, 2008 (Class A shares returned -31.75% without taking the sales charge into account). By comparison, the fund’s benchmark, the Russell 2000 Value Index*, returned -30.54% for the same period.
How did market conditions affect stock market performance during the fiscal year?
It’s impossible to discuss the state of the equity markets during the fiscal year without addressing the impact of the subprime loan debacle and the ensuing financial crisis on stock market performance. Concerns about the proliferation of subprime mortgage loans and the lax lending standards they represented arose as early as February 2007. By October of 2007, the threat of large-scale defaults became more pronounced, as did their potential effect on various highly complex securities into which subprime mortgages had been converted. What caught most market participants off guard was the severity of the crisis — the sheer volume of assets that were impaired, the extent to which the holders of those assets were hurt, and the effect of these assets on the financial system.
The financial crisis that followed gradually brought most credit activity to a halt and drained liquidity out of the markets, prompting the federal government to stage several interventions to save ailing financial institutions whose vulnerability suddenly became apparent. The takeovers of Federal Home Loan Mortgage Corporation (Freddie Mac), Federal National Mortgage Association (Fannie Mae), and of AIG, however, were ad hoc solutions rather than consequences of any broad-based policy. In the absence of such policy, the government actions tended to cause more uncertainty than calm, and the markets lost trust in this approach. Prolonged volatility ensued.
What began as a U.S.-based financial crisis rapidly led to a global recession and with it the collapse of commodity prices and the prospect of sharply reduced corporate earnings. As hedge funds undertook a massive effort to repay the loans on which they relied for operations, liquidation sales forced asset prices to plummet far below their fair value. In this environment, the outlook for financial markets appeared bleak indeed. By the end of the fiscal period, however, there were signs that the worst may be behind us. For one thing, the coordinated policy response to the crisis by governments worldwide began to introduce a measure of ease to the financial and credit markets, restoring badly needed liquidity. And because forced liquidations brought asset prices into the bargain territory, there is good value now for investors to be found in the riskier asset classes.
What will be the likely developments in the equity markets in the coming fiscal year?
We expect the more defensively positioned sectors (healthcare, consumer staples) and sectors that tend to thrive early in the economic cycle (financials, consumer discretionary, retail) to make gains, while late-cycle sectors (energy, basic materials, industrials) will most likely remain under pressure. Clearly, conditions will remain challenging for some time to come, but as the most acute stages of the crisis recede into the past, we anticipate a gradual return of opportunities.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Top 10 Holdings as of October 31, 20081 (% of net assets)
MFA Mortgage Investments | 2.0 | % | ||
Bank of the Ozarks | 1.9 | |||
Wolverine World Wide | 1.8 | |||
Cathay General Bancorp | 1.7 | |||
Spartan Stores | 1.6 | |||
Independent Bank | 1.6 | |||
Pinnacle Financial Partners | 1.6 | |||
Ralcorp Holdings | 1.6 | |||
Stifel Financial | 1.6 | |||
First Midwest Bancorp | 1.6 | |||
Sector Allocation as of October 31, 20081 (% of net assets)
Financials | 35 | .3% | ||
Information Technology | 14 | .1 | ||
Consumer Discretionary | 12 | .7 | ||
Industrials | 10 | .7 | ||
Healthcare | 7 | .5 | ||
Utilities | 5 | .9 | ||
Consumer Staples | 4 | .7 | ||
Materials | 4 | .2 | ||
Energy | 2 | .5 | ||
Exchange-Traded Fund | 0 | .5 | ||
Short-Term Investment | 0 | .5 | ||
Other Assets & Liabilities, Net2 | 1 | .4 | ||
100 | .0% | |||
1 | Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security. |
2 | Investments in securities typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
First American Funds 2008 Annual Report 43
Table of Contents
Small Cap Value Fund
What worked for the fund and why?
Strong individual stock selection within the consumer discretionary, financials, healthcare and materials sectors were the primary contributors. Being overweight in the healthcare sector was also beneficial. Aaron Rents, Inc., specialty lease-to-own retailer, and The Buckle, Inc., fashion-oriented apparel retailer, were standouts in an otherwise challenging environment for consumer-based stocks. Strong contributors within the financial sector were high-quality bank stocks — Bank of the Ozarks, Zions Bancorporation, and Pinnacle Financial Partners — located in relatively strong trade areas. Perrigo Co., an over-the-counter pharmaceutical company, and Vital Signs, a medical device company focused on the respiratory segment, were standouts in healthcare. The remaining top contributors were distributed across multiple sectors.
Notables were Schnitzer Steel Industries (metal recycling), Penn Virginia (oil and gas exploration and production), and Ralcorp Holdings (manufacturer of private label food products).
What did not work for the fund and why?
Stock selection within the industrial and utility sectors was the primary detractor. Being overweight in the energy sector post-Russell rebalance in June and being underweight in financials were slight detractors. Within industrials, Crane, a diversified manufacturer of engineered parts and subsystems, was hurt by the global slowdown. Additionally, Interface, Inc., a leading manufacturer of modular carpet products, was affected by both declining corporate office demand and higher raw material inputs despite taking market share with a superior product. Within the utility sector, PNM Resources, New Mexico-and Texas-based, was unsuccessful in its rate case attempt and consequently has undertaken a large restructuring plan. Additional business models affected by the transitional global economy were Delphi Financial Group (employee benefit services and insurance), Emulex (data storage subsystem provider), and Group One Automotive (diversified auto retailer).
What strategic moves were made by the fund and why?
The fund has reduced its position to underweight in commodities that thrive late in the economic cycle (materials and energy) with preference within materials for those business models that should benefit from the dramatic fall in raw material input costs. We continue to monitor the impacts of energy (positive) and housing (negative) on the consumer discretionary sector and are selectively adding to well-positioned business models. While maintaining an underweight position in financials, we are maintaining an emphasis on quality bank business models and capital market participants that stand to benefit from the substantial capital infusion and market volatility, respectively. We remain overweight in healthcare and technology.
We continue to focus on building a well-diversified portfolio of small-cap stocks with strong balance sheet and free cash flow characteristics that are trading at a discount to intrinsic value.
44 First American Funds 2008 Annual Report
Table of Contents
Annual Performance1,2
October 31, 2008 | September 30, 2008* | |||||||||||||||||||||||||||||||||||||||
1 year | 5 years | 10 years | 2/1/1999 | 9/24/2001 | 1 year | 5 years | 10 years | 2/1/1999 | 9/24/2001 | |||||||||||||||||||||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||||||||||||||||||||||||||
Class A | (35.52 | )% | 0.96 | % | 5.86 | % | — | — | (19.62 | )% | 6.69 | % | 8.19 | % | — | — | ||||||||||||||||||||||||
Class B | (35.27 | )% | 1.16 | % | 5.63 | % | — | — | (19.25 | )% | 6.88 | % | 7.96 | % | — | — | ||||||||||||||||||||||||
Class C | (32.82 | )% | 1.37 | % | — | 5.27 | % | — | (16.31 | )% | 7.10 | % | — | 7.51 | % | — | ||||||||||||||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||||||||||||||||||||||||||
Class A | (31.75 | )% | 2.12 | % | 6.46 | % | — | — | (14.95 | )% | 7.90 | % | 8.81 | % | — | — | ||||||||||||||||||||||||
Class B | (32.32 | )% | 1.34 | % | 5.63 | % | — | — | (15.57 | )% | 7.07 | % | 7.96 | % | — | — | ||||||||||||||||||||||||
Class C | (32.23 | )% | 1.37 | % | — | 5.27 | % | — | (15.57 | )% | 7.10 | % | — | 7.51 | % | — | ||||||||||||||||||||||||
Class R | (31.90 | )% | 1.92 | % | — | — | 6.23 | % | (15.21 | )% | 7.69 | % | — | — | 9.37 | % | ||||||||||||||||||||||||
Class Y | (31.56 | )% | 2.37 | % | 6.72 | % | — | — | (14.79 | )% | 8.15 | % | 9.06 | % | — | — | ||||||||||||||||||||||||
Russell 2000 Value Index3 | (30.54 | )% | 3.05 | % | 7.40 | % | 7.27 | % | 7.67 | % | (12.25 | )% | 9.45 | % | 10.14 | % | 9.84 | % | 11.25 | % | ||||||||||||||||||||
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
1 | Stocks of small-capitalization companies involve substantial risk. These stocks historically have experienced greater price volatility than stocks of larger companies, and they may be expected to do so in the future. |
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV.
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 5.50% for Class A shares and the contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.
Investment performance in the table reflects fee waivers that had been in effect for certain portions of the periods indicated. In the absence of such fee waivers, total returns would be reduced.
As of the most recent prospectus, the fund’s total annual operating expense ratio (including acquired fund fees and expenses, which the fund indirectly bears) for Class A, Class B, Class C, Class R, and Class Y shares was 1.27%, 2.02%, 2.02%, 1.52%, and 1.02%, respectively.
* | This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period. |
Value of $10,000 Investment1,2,4 as of October 31, 2008
Small Cap Value Fund, Class A (NAV) | ![]() | $ | 18,700 | |||||
Small Cap Value Fund, Class A (POP) | ![]() | $ | 17,666 | |||||
Russell 2000 Value Index3 | ![]() | $ | 20,412 | |||||
This chart illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 10/31/1998 to 10/31/2008) as compared to the Russell 2000 Value Index3.
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950137-09-000237/c48053c4805926.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
3 | An unmanaged index that measures the performance of those companies in the Russell 2000 Index (a small-cap index) with lower price-to-book ratios and lower forecasted growth values. |
4 | Performance for Class B, Class C, Class R, and Class Y shares is not presented. Performance for these classes will vary due to the different expense structures. |
First American Funds 2008 Annual Report 45
Table of Contents
Small-Mid Cap Core Fund
Investment Objective: long-term growth of capital
How did the fund perform for the fiscal year ended October 31, 2008?
The First American Small-Mid Cap Core Fund (the “fund”), Class Y shares, returned -34.08% for the fiscal year ended October 31, 2008 (Class A shares returned -34.21% without taking the sales charge into account). By comparison, the fund’s benchmark during the fiscal year, the Russell 2500 Index*, returned -37.27% for the same period.
How did market conditions affect stock market performance during the fiscal year?
It’s impossible to discuss the state of the equity markets during the fiscal year without addressing the impact of the subprime loan debacle and the ensuing financial crisis on stock market performance. Concerns about the proliferation of subprime mortgage loans and the lax lending standards they represented arose as early as February 2007. By October 2007, the threat of large-scale defaults became more pronounced, as did their potential effect on various highly complex securities into which subprime mortgages had been converted. What caught most market participants off guard was the severity of the crisis — the sheer volume of assets that were impaired, the extent to which the holders of those assets were hurt, and the effect of these assets on the financial system.
The financial crisis that followed gradually brought most credit activity to a halt and drained liquidity out of the markets, prompting the federal government to stage several interventions to save ailing financial institutions whose vulnerability suddenly became apparent. The takeovers of Federal Home Loan Mortgage Corporation (Freddie Mac), Federal National Mortgage Association (Fannie Mae), and of AIG, however, were ad hoc solutions rather than consequences of any broad-based policy. In the absence of such policy, the government actions tended to cause more uncertainty than calm, and the markets lost trust in this approach. Prolonged volatility ensued.
What began as a U.S.-based financial crisis rapidly led to a global recession and with it the collapse of commodity prices and the prospect of sharply reduced corporate earnings. As hedge funds undertook a massive effort to repay the loans on which they relied for operations, liquidation sales forced asset prices to plummet far below their fair value. In this environment, the outlook for financial markets appeared bleak indeed. By the end of the fiscal period, however, there were signs that the worst may be behind us. For one thing, the coordinated policy response to the crisis by governments worldwide began to introduce a measure of ease to the financial and credit markets, restoring badly needed liquidity. And because forced liquidations brought asset prices into the bargain territory, there is good value now for investors to be found in the riskier asset classes.
What will be the likely developments in the equity markets in the coming fiscal year?
We expect the more defensively positioned sectors (healthcare, consumer staples) and sectors that tend to thrive early in the economic cycle (financials, consumer discretionary, retail) to make gains, while late-cycle sectors (energy, basic materials, industrials) will most likely remain under pressure. Clearly, conditions will remain challenging for some time to come, but as the most acute stages of the crisis recede into the past, we anticipate a gradual return of opportunities.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Top 10 Holdings as of October 31, 20081 (% of net assets)
Astoria Financial | 2 | .5% | ||
Arch Capital Group | 2 | .5 | ||
DeVry | 2 | .5 | ||
Pediatrix Medical Group | 2 | .4 | ||
Burger King Holdings | 2 | .3 | ||
Knight Capital Group, Class A | 2 | .3 | ||
Family Dollar Stores | 2 | .3 | ||
Platinum Underwriters Holdings | 2 | .1 | ||
Pactiv | 2 | .1 | ||
Regal-Beloit | 2 | .1 | ||
Sector Allocation as of October 31, 20081 (% of net assets)
Financials | 23 | .8% | ||
Consumer Discretionary | 15 | .9 | ||
Information Technology | 13 | .5 | ||
Healthcare | 12 | .5 | ||
Industrials | 10 | .8 | ||
Materials | 7 | .0 | ||
Consumer Staples | 6 | .5 | ||
Energy | 5 | .2 | ||
Utilities | 4 | .6 | ||
Short-Term Investment | 0 | .6 | ||
Other Assets & Liabilities, Net2 | (0 | .4) | ||
100 | .0% | |||
1 | Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security. |
2 | Investments 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. |
46 First American Funds 2008 Annual Report
Table of Contents
What worked for the fund and why?
Although we added incremental relative returns through sector, style, and size allocations, the large majority of fund performance this year was due to individual stock selection and our bias toward quality. Within sectors, our opportunistic weightings in banks were, by far, the greatest contributors to performance. For the first nine months of the fiscal year, we were underweight in banks while the sector underperformed the market. In September we moved to an overweight position by buying shares of Zions Bancorp and Bank of the Ozarks. The financial sector turned upward sharply, and these stocks added significant performance to the fund. We also added value with our tilt toward defensive stocks and sectors. We made extensive use of our process to help us identify securities that should outperform on a relative basis in a downward-trending market. Based on this theme, we took overweight positions in packaging company Pactiv, grocery store chain Spartan Stores, and insurer Arch Capital Group, all of which contributed significantly to fund performance. The fund also benefitted by holding securities with lower volatility than the index.
What did not work for the fund and why?
The largest detractor from performance was Fairchild Semiconductor. As a whole, semiconductors underperformed the index due to continued pressure on cyclical stocks. Fairchild, however, underperformed the rest of the sector because of the company’s weaker balance sheet. The fund was also hurt by holdings of Crane, Lear, and Colonial BancGroup. Crane, an industrial engineering company, suffered from a slowing global economy. The high oil prices and credit concerns that affected the automotive industry also affected auto parts manufacturer Lear. Colonial, a bank that the fund held during the first nine months of the year, suffered along with other financials, due to subprime and credit concerns.
What strategic moves were made by the fund and why?
We increased our exposure to securities that we believe should continue to outperform in a challenging market. Having limited the number of tactical allocations based on sector, size and style, we continue to concentrate mainly on stock selection. We increased the number of overall holdings to reduce stock-specific risk. However, we still hold significant positions in a number of stocks about which we feel confident: discount retailer Family Dollar Stores, fast-food chain Burger King, and financial firms Knight Capital Group and Arch Capital Group. We continually look to add high-quality, less volatile stocks to the fund.
First American Funds 2008 Annual Report 47
Table of Contents
Small-Mid Cap Core Fund
Annual Performance1,2
October 31, 2008 | September 30, 2008* | |||||||||||||||||||||||||||||||
Since Inception | Since Inception | |||||||||||||||||||||||||||||||
1 year | 5 years | 10 years | 2/1/2000 | 1 year | 5 years | 10 years | 2/1/2000 | |||||||||||||||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||||||||||||||||||
Class A | (37.83 | )% | (3.88 | )% | (3.86 | )% | — | (23.04 | )% | 2.77 | % | (1.34 | )% | — | ||||||||||||||||||
Class B | (38.01 | )% | (3.88 | )% | (4.04 | )% | — | (23.18 | )% | 2.81 | % | (1.53 | )% | — | ||||||||||||||||||
Class C | (35.31 | )% | (3.48 | )% | — | (18.70 | )% | (19.98 | )% | 3.15 | % | — | (16.97 | )% | ||||||||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||||||||||||||||||
Class A | (34.21 | )% | (2.78 | )% | (3.32 | )% | — | (18.57 | )% | 3.93 | % | (0.78 | )% | — | ||||||||||||||||||
Class B | (34.74 | )% | (3.49 | )% | (4.04 | )% | — | (19.14 | )% | 3.16 | % | (1.53 | )% | — | ||||||||||||||||||
Class C | (34.66 | )% | (3.48 | )% | — | (18.70 | )% | (19.17 | )% | 3.15 | % | — | (16.97 | )% | ||||||||||||||||||
Class Y | (34.08 | )% | (2.53 | )% | (3.05 | )% | — | (18.30 | )% | 4.20 | % | (0.50 | )% | — | ||||||||||||||||||
Russell 2500 Index3 | (37.27 | )% | 1.44 | % | 5.86 | % | 2.92 | % | (17.99 | )% | 8.12 | % | 9.04 | % | 5.87 | % | ||||||||||||||||
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
1 | Effective October 3, 2005, the investment strategy of the fund, formerly called the Technology Fund, changed from investing primarily in technology stocks to investing primarily in common stocks of small- and mid-capitalization companies. As a result, performance for the periods prior to October 3, 2005 reflect the performance of a materially different investment portfolio. |
Stocks of small- and mid-capitalization companies involve substantial risk and may be subject to increased volatility and more price fluctuation than large-capitalization companies.
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV.
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 5.50% for Class A shares and the contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV. |
Investment performance reflects fee waivers that were in effect during the periods indicated. In the absence of such fee waivers, total returns would be reduced.
As of the most recent prospectus, the fund’s total annual operating expense ratio before waivers for Class A, Class B, Class C, and Class Y shares was 1.49%, 2.24%, 2.24%, and 1.24%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through June 30, 2009 so that the total annual fund operating expenses for Class A, Class B, Class C, and Class Y shares do not exceed 1.41%, 2.16%, 2.16%, and 1.16%, respectively. These fee waivers and expense reimbursements may be terminated at any time after June 30, 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.
* | This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period. |
Value of $10,000 Investment1,2,4 as of October 31, 2008
Small-Mid Cap Core Fund, Class A (NAV) | ![]() | $ | 7,136 | |||||
Small-Mid Cap Core Fund, Class A (POP) | ![]() | $ | 6,745 | |||||
Russell 2500 Index3 | ![]() | $ | 17,668 | |||||
This chart illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 10/31/1998 to 10/31/2008) as compared to the Russell 2500 Index3.
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950137-09-000237/c48053c4805927.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
The Small-Mid Cap Core Fund’s 1999 returns were higher due in part to its strategy of investing in IPOs and technology-related stocks in a period favorable for IPO and technology stock investing. Of course, such favorable returns involve accepting the risk of volatility, and there is no assurance that the fund’s future investment in IPOs and technology stocks will have the same effect on performance as it did in 1999.
3 | An unmanaged small- and mid-cap index that measures the performance of the 2,500 smallest companies in the Russell 3000 Index. |
4 | Performance for Class B, Class C, and Class Y shares is not presented. Performance for these classes will vary due to the different expense structures. |
48 First American Funds 2008 Annual Report
Table of Contents
Expense Examples
As a shareholder of one or more of the funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. The examples below are intended to help you understand your ongoing costs (in dollars) of investing in the funds and to compare these costs with the ongoing costs of investing in other mutual funds. The examples are based on an investment of $1,000 invested in a fund at the beginning of the period and held for the entire period from May 1, 2008 to October 31, 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.
Balanced Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (5/01/08 to | ||||||||||
Value (5/01/08) | Value (10/31/08) | 10/31/08) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 731.50 | $ | 4.79 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.61 | $ | 5.58 | ||||||
Class B Actual2 | $ | 1,000.00 | $ | 728.10 | $ | 8.04 | ||||||
Class B Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.84 | $ | 9.37 | ||||||
Class C Actual2 | $ | 1,000.00 | $ | 728.10 | $ | 8.04 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.84 | $ | 9.37 | ||||||
Class R Actual2 | $ | 1,000.00 | $ | 730.40 | $ | 5.87 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.35 | $ | 6.85 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 731.60 | $ | 3.70 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.86 | $ | 4.32 | ||||||
1 | Expenses are equal to the fund’s annualized expense ratio (including waivers) 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 October 31, 2008 of -26.85%, -27.19%, -27.19%, -26.96%, and -26.84% for Class A, Class B, Class C, Class R, and Class Y, respectively. |
First American Funds 2008 Annual Report 49
Table of Contents
Expense Examples
Equity Income Fund
Beginning Account | Ending Account | |||||||||||
Value (5/01/08) | Value (10/31/08) | Expenses Paid During Period1 (5/01/08 to 10/31/08) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 734.00 | $ | 5.14 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.20 | $ | 5.99 | ||||||
Class B Actual2 | $ | 1,000.00 | $ | 731.80 | $ | 8.40 | ||||||
Class B Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.43 | $ | 9.78 | ||||||
Class C Actual2 | $ | 1,000.00 | $ | 731.60 | $ | 8.40 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.43 | $ | 9.78 | ||||||
Class R Actual2 | $ | 1,000.00 | $ | 733.00 | $ | 6.23 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.95 | $ | 7.25 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 735.00 | $ | 4.06 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.46 | $ | 4.72 | ||||||
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 1.18%, 1.93%, 1.93%, 1.43%, and 0.93% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/366 (to reflect the one-half year period). |
2 | Based on the actual returns for the six-month period ended October 31, 2008 of -26.60%, -26.82%, -26.84%, -26.70%, and -26.50% for Class A, Class B, Class C, Class R, and Class Y, respectively. |
Global Infrastructure Fund
Beginning Account | Ending Account | |||||||||||
Value (5/01/08) | Value (10/31/08) | Expenses Paid During Period3 (5/01/08 to 10/31/08) | ||||||||||
Class A Actual4 | $ | 1,000.00 | $ | 644.90 | $ | 5.17 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.85 | $ | 6.34 | ||||||
Class Y Actual4 | $ | 1,000.00 | $ | 644.90 | $ | 4.09 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.16 | $ | 5.03 | ||||||
3 | Expenses are equal to the fund’s annualized expense ratio (including waivers) for the most recent six-month period of 1.25%, and 0.99% 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 October 31, 2008 of -35.51% and -35.51% for Class A and Class Y, respectively. |
50 First American Funds 2008 Annual Report
Table of Contents
International Fund
Beginning Account | Ending Account | |||||||||||
Value (5/01/08) | Value (10/31/08) | Expenses Paid During Period1 (5/01/08 to 10/31/08) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 604.90 | $ | 6.01 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.65 | $ | 7.56 | ||||||
Class B Actual2 | $ | 1,000.00 | $ | 603.20 | $ | 9.03 | ||||||
Class B Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,013.88 | $ | 11.34 | ||||||
Class C Actual2 | $ | 1,000.00 | $ | 603.10 | $ | 9.03 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,013.88 | $ | 11.34 | ||||||
Class R Actual2 | $ | 1,000.00 | $ | 604.20 | $ | 7.02 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,016.39 | $ | 8.82 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 605.90 | $ | 5.01 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.90 | $ | 6.29 | ||||||
1 | Expenses are equal to the fund’s annualized expense ratio (including waivers) for the most recent six-month period of 1.49%, 2.24%, 2.24%, 1.74%, and 1.24% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/366 (to reflect the one-half year period). |
2 | Based on the actual returns for the six-month period ended October 31, 2008 of -39.51%, -39.68%, -39.69%, -39.58%, and -39.41% for Class A, Class B, Class C, Class R, and Class Y, respectively. |
International Select Fund
Beginning Account | Ending Account | |||||||||||
Value (5/01/08) | Value (10/31/08) | Expenses Paid During Period3 (5/01/08 to 10/31/08) | ||||||||||
Class A Actual4 | $ | 1,000.00 | $ | 601.30 | $ | 6.00 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.65 | $ | 7.56 | ||||||
Class B Actual4 | $ | 1,000.00 | $ | 598.30 | $ | 9.00 | ||||||
Class B Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,013.88 | $ | 11.34 | ||||||
Class C Actual4 | $ | 1,000.00 | $ | 598.30 | $ | 9.00 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,013.88 | $ | 11.34 | ||||||
Class R Actual4 | $ | 1,000.00 | $ | 600.00 | $ | 7.00 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,016.39 | $ | 8.82 | ||||||
Class Y Actual4 | $ | 1,000.00 | $ | 602.00 | $ | 4.99 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.90 | $ | 6.29 | ||||||
3 | Expenses are equal to the fund’s annualized expense ratio (including waivers) for the most recent six-month period of 1.49%, 2.24%, 2.24%, 1.74%, and 1.24% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/366 (to reflect the one-half year period). |
4 | Based on the actual returns for the six-month period ended October 31, 2008 of -39.87%, -40.17%, -40.17%, -40.00%, and -39.80% for Class A, Class B, Class C, Class R and Class Y, respectively. |
First American Funds 2008 Annual Report 51
Table of Contents
Expense Examples
Large Cap Growth Opportunities Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (5/01/08 to | ||||||||||
Value (5/01/08) | Value (10/31/08) | 10/31/08) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 718.10 | $ | 5.18 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.10 | $ | 6.09 | ||||||
Class B Actual2 | $ | 1,000.00 | $ | 715.10 | $ | 8.41 | ||||||
Class B Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.33 | $ | 9.88 | ||||||
Class C Actual2 | $ | 1,000.00 | $ | 715.30 | $ | 8.41 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.33 | $ | 9.88 | ||||||
Class R Actual2 | $ | 1,000.00 | $ | 716.80 | $ | 6.26 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.85 | $ | 7.35 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 719.00 | $ | 4.10 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.36 | $ | 4.82 | ||||||
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 1.20%, 1.95%, 1.95%, 1.45%, and 0.95% 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 October 31, 2008 of -28.19%, -28.49%, -28.47%, -28.32%, and -28.10% for Class A, Class B, Class C, Class R, and Class Y, respectively. |
Large Cap Select Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period3 (5/01/08 to | ||||||||||
Value (5/01/08) | Value (10/31/08) | 10/31/08) | ||||||||||
Class A Actual4 | $ | 1,000.00 | $ | 666.40 | $ | 5.11 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.00 | $ | 6.19 | ||||||
Class B Actual4 | $ | 1,000.00 | $ | 664.10 | $ | 8.24 | ||||||
Class B Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.23 | $ | 9.98 | ||||||
Class C Actual4 | $ | 1,000.00 | $ | 664.10 | $ | 8.24 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.23 | $ | 9.98 | ||||||
Class R Actual4 | $ | 1,000.00 | $ | 665.80 | $ | 6.16 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.75 | $ | 7.46 | ||||||
Class Y Actual4 | $ | 1,000.00 | $ | 667.40 | $ | 4.07 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.26 | $ | 4.93 | ||||||
3 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 1.22%, 1.97%, 1.97%, 1.47%, and 0.97% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/366 (to reflect the one-half year period). |
4 | Based on the actual returns for the six-month period ended October 31, 2008 of -33.36%, -33.59%, -33.59%, -33.42%, and -33.26% for Class A, Class B, Class C, Class R, and Class Y, respectively. |
52 First American Funds 2008 Annual Report
Table of Contents
Large Cap Value Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (5/01/08 to | ||||||||||
Value (5/01/08) | Value (10/31/08) | 10/31/08) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 710.80 | $ | 5.16 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.10 | $ | 6.09 | ||||||
Class B Actual2 | $ | 1,000.00 | $ | 707.90 | $ | 8.37 | ||||||
Class B Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.33 | $ | 9.88 | ||||||
Class C Actual2 | $ | 1,000.00 | $ | 708.00 | $ | 8.37 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.33 | $ | 9.88 | ||||||
Class R Actual2 | $ | 1,000.00 | $ | 710.10 | $ | 6.23 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.85 | $ | 7.35 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 711.80 | $ | 4.09 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.36 | $ | 4.82 | ||||||
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 1.20%, 1.95%, 1.95%, 1.45%, and 0.95% 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 October 31, 2008 of -28.92%, -29.21%, -29.20%, -28.99%, and -28.82% for Class A, Class B, Class C, Class R, and Class Y, respectively. |
Mid Cap Growth Opportunities Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period3 (5/01/08 to | ||||||||||
Value (5/01/08) | Value (10/31/08) | 10/31/08) | ||||||||||
Class A Actual4 | $ | 1,000.00 | $ | 639.40 | $ | 5.07 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.95 | $ | 6.24 | ||||||
Class B Actual4 | $ | 1,000.00 | $ | 637.00 | $ | 8.15 | ||||||
Class B Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.18 | $ | 10.03 | ||||||
Class C Actual4 | $ | 1,000.00 | $ | 637.10 | $ | 8.15 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.18 | $ | 10.03 | ||||||
Class R Actual4 | $ | 1,000.00 | $ | 638.70 | $ | 6.10 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.70 | $ | 7.51 | ||||||
Class Y Actual4 | $ | 1,000.00 | $ | 640.40 | $ | 4.04 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.21 | $ | 4.98 | ||||||
3 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 1.23%, 1.98%, 1.98%, 1.48%, and 0.98% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/366 (to reflect the one-half year period). |
4 | Based on the actual returns for the six-month period ended October 31, 2008 of -36.06%, -36.30%, -36.29%, -36.13%, and -35.96% for Class A, Class B, Class C, Class R, and Class Y, respectively. |
First American Funds 2008 Annual Report 53
Table of Contents
Expense Examples
Mid Cap Value Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (5/01/08 to | ||||||||||
Value (5/01/08) | Value (10/31/08) | 10/31/08) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 685.10 | $ | 5.29 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.85 | $ | 6.34 | ||||||
Class B Actual2 | $ | 1,000.00 | $ | 682.30 | $ | 8.46 | ||||||
Class B Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.08 | $ | 10.13 | ||||||
Class C Actual2 | $ | 1,000.00 | $ | 682.50 | $ | 8.46 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.08 | $ | 10.13 | ||||||
Class R Actual2 | $ | 1,000.00 | $ | 684.40 | $ | 6.35 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.60 | $ | 7.61 | ||||||
�� | ||||||||||||
Class Y Actual2 | $ | 1,000.00 | $ | 685.90 | $ | 4.24 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.11 | $ | 5.08 | ||||||
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 1.25%, 2.00%, 2.00%, 1.50%, and 1.00% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/366 (to reflect the one-half year period). |
2 | Based on the actual returns for the six-month period ended October 31, 2008 of -31.49%, -31.77%, -31.75%, -31.56%, and -31.41% for Class A, Class B, Class C, Class R, and Class Y, respectively. |
Real Estate Securities Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period3 (5/01/08 to | ||||||||||
Value (5/01/08) | Value (10/31/08) | 10/31/08) | ||||||||||
Class A Actual4 | $ | 1,000.00 | $ | 663.00 | $ | 5.14 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.95 | $ | 6.24 | ||||||
Class B Actual4 | $ | 1,000.00 | $ | 660.60 | $ | 8.26 | ||||||
Class B Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.18 | $ | 10.03 | ||||||
Class C Actual4 | $ | 1,000.00 | $ | 660.30 | $ | 8.26 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.18 | $ | 10.03 | ||||||
Class R Actual4 | $ | 1,000.00 | $ | 662.00 | $ | 6.22 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.65 | $ | 7.56 | ||||||
Class Y Actual4 | $ | 1,000.00 | $ | 663.90 | $ | 4.10 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.21 | $ | 4.98 | ||||||
3 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 1.23%, 1.98%, 1.98%, 1.49%, and 0.98% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/366 (to reflect the one-half year period). |
4 | Based on the actual returns for the six-month period ended October 31, 2008 of -33.70%, -33.94%, -33.97%, -33.80%, and -33.61% for Class A, Class B, Class C, Class R and Class Y, respectively. |
54 First American Funds 2008 Annual Report
Table of Contents
Small Cap Growth Opportunities Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (5/01/08 to | ||||||||||
Value (5/01/08) | Value (10/31/08) | 10/31/08) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 703.50 | $ | 6.25 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.80 | $ | 7.41 | ||||||
Class B Actual2 | $ | 1,000.00 | $ | 701.00 | $ | 9.49 | ||||||
Class B Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,013.98 | $ | 11.24 | ||||||
Class C Actual2 | $ | 1,000.00 | $ | 700.90 | $ | 9.49 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,013.98 | $ | 11.24 | ||||||
Class R Actual2 | $ | 1,000.00 | $ | 702.50 | $ | 7.36 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,016.49 | $ | 8.72 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 704.20 | $ | 5.23 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.00 | $ | 6.19 | ||||||
1 | Expenses are equal to the fund’s annualized expense ratio (including waivers) for the most recent six-month period of 1.46%, 2.22%, 2.22%, 1.72%, and 1.22% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/366 (to reflect the one-half year period). |
2 | Based on the actual returns for the six-month period ended October 31, 2008 of -29.65%, -29.90%, -29.91%, -29.75%, and -29.58% for Class A, Class B, Class C, Class R, and Class Y, respectively. |
Small Cap Select Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period3 (5/01/08 to | ||||||||||
Value (5/01/08) | Value (10/31/08) | 10/31/08) | ||||||||||
Class A Actual4 | $ | 1,000.00 | $ | 752.50 | $ | 5.59 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.75 | $ | 6.44 | ||||||
Class B Actual4 | $ | 1,000.00 | $ | 749.40 | $ | 8.88 | ||||||
Class B Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,014.98 | $ | 10.23 | ||||||
Class C Actual4 | $ | 1,000.00 | $ | 749.50 | $ | 8.88 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,014.98 | $ | 10.23 | ||||||
Class R Actual4 | $ | 1,000.00 | $ | 751.20 | $ | 6.69 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.50 | $ | 7.71 | ||||||
Class Y Actual4 | $ | 1,000.00 | $ | 753.20 | $ | 4.50 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.01 | $ | 5.18 | ||||||
3 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 1.27%, 2.02%, 2.02%, 1.52%, and 1.02% 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). |
4 | Based on the actual returns for the six-month period ended October 31, 2008 of -24.75%, -25.06%, -25.05%, -24.88%, and -24.68% for Class A, Class B, Class C, Class R, and Class Y, respectively. |
First American Funds 2008 Annual Report 55
Table of Contents
Expense Examples
Small Cap Value Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (5/01/08 to | ||||||||||
Value (5/01/08) | Value (10/31/08) | 10/31/08) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 771.10 | $ | 5.92 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.45 | $ | 6.75 | ||||||
Class B Actual2 | $ | 1,000.00 | $ | 768.00 | $ | 9.24 | ||||||
Class B Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,014.68 | $ | 10.53 | �� | |||||
Class C Actual2 | $ | 1,000.00 | $ | 768.90 | $ | 9.25 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,014.68 | $ | 10.53 | ||||||
Class R Actual2 | $ | 1,000.00 | $ | 770.00 | $ | 7.03 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.19 | $ | 8.01 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 771.90 | $ | 4.81 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.71 | $ | 5.48 | ||||||
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 1.33%, 2.08%, 2.08%, 1.58%, and 1.08% 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 October 31, 2008 of -22.89%, -23.20%, -23.11%, -23.00%, and -22.81% for Class A, Class B, Class C, Class R, and Class Y, respectively. |
Small-Mid Cap Core Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period3 (5/01/08 to | ||||||||||
Value (5/01/08) | Value (10/31/08) | 10/31/08) | ||||||||||
Class A Actual4 | $ | 1,000.00 | $ | 723.90 | $ | 6.11 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.05 | $ | 7.15 | ||||||
Class B Actual4 | $ | 1,000.00 | $ | 720.60 | $ | 9.34 | ||||||
Class B Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,014.28 | $ | 10.94 | ||||||
Class C Actual4 | $ | 1,000.00 | $ | 721.70 | $ | 9.35 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,014.28 | $ | 10.94 | ||||||
Class Y Actual4 | $ | 1,000.00 | $ | 724.50 | $ | 5.03 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.30 | $ | 5.89 | ||||||
3 | Expenses are equal to the fund’s annualized expense ratio (including waivers) for the most recent six-month period of 1.41%, 2.16%, 2.16%, and 1.16% for Class A, Class B, Class C, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/366 (to reflect the one-half year period). |
4 | Based on the actual returns for the six-month period ended October 31, 2008 of -27.61%, -27.94%, -27.83%, and -27.55% for Class A, Class B, Class C, and Class Y, respectively. |
56 First American Funds 2008 Annual Report
Table of Contents
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Directors
First American Investment Funds, Inc.
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of the Balanced, Equity Income, Global Infrastructure, International, International Select, Large Cap Growth Opportunities, Large Cap Select, Large Cap Value, Mid Cap Growth Opportunities, Mid Cap Value, Real Estate Securities, Small Cap Growth Opportunities, Small Cap Select, Small Cap Value, and Small-Mid Cap Core Funds (series of First American Investment Funds, Inc.) (collectively, the “funds”) as of October 31, 2008, and the related statements of operations, statements of changes in net assets and financial highlights for each of the periods indicated therein. These financial statements and financial highlights are the responsibility of the funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the funds’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2008 by correspondence with the custodians and brokers, or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the funds listed above of the First American Investment Funds, Inc. at October 31, 2008, the results of their operations, changes in their net assets and the 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/0000950137-09-000237/c48053ernstyo.gif)
Minneapolis, Minnesota
December 19, 2008
First American Funds 2008 Annual Report 57
Table of Contents
Schedule of Investments October 31, 2008, all dollars rounded to thousands (000)
Balanced Fund | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Common Stocks – 49.6% | ||||||||
Consumer Discretionary – 7.9% | ||||||||
1-800-Flowers.com, Class A = | 23,318 | $ | 125 | |||||
Advance Auto Parts | 27,688 | 864 | ||||||
Amerigon = 6 | 4,554 | 22 | ||||||
ATC Technology = 6 | 4,313 | 95 | ||||||
Burger King Holdings | 58,026 | 1,154 | ||||||
Christopher & Banks 6 | 9,672 | 50 | ||||||
Coinstar = 6 | 5,394 | 129 | ||||||
Comcast, Class A 6 | 111,071 | 1,750 | ||||||
Cooper Tire & Rubber 6 | 13,859 | 106 | ||||||
D.R. Horton 6 | 88,501 | 653 | ||||||
FGX International Holdings Limited = | 4,190 | 46 | ||||||
Fossil = 6 | 3,461 | 63 | ||||||
Guess? | 32,260 | 702 | ||||||
Home Depot 6 | 115,879 | 2,734 | ||||||
Interface, Class A | 5,534 | 39 | ||||||
Interpublic Group of Companies = 6 | 134,589 | 698 | ||||||
Jos. A. Bank Clothiers = 6 | 1,871 | 48 | ||||||
McCormick & Schmick’s Seafood Restaurants = | 2 | — | ||||||
McGraw-Hill 6 | 34,263 | 920 | ||||||
Omnicom Group | 27,495 | 812 | ||||||
P.F. Chang’s China Bistro = 6 | 5,101 | 104 | ||||||
Scientific Games, Class A = 6 | 4,491 | 81 | ||||||
Skechers U.S.A., Class A = | 7,254 | 98 | ||||||
Texas Roadhouse, Class A = | 13,845 | 97 | ||||||
TJX | 54,264 | 1,452 | ||||||
VF | 15,538 | 856 | ||||||
VistaPrint = 6 | 739 | 13 | ||||||
WMS Industries = 6 | 4,323 | 108 | ||||||
13,819 | ||||||||
Consumer Staples – 2.9% | ||||||||
Chattem = 6 | 1,275 | 96 | ||||||
Hain Celestial Group = 6 | 5,465 | 127 | ||||||
Molson Coors Brewing, Class B | 20,440 | 764 | ||||||
Pepsi Bottling Group | 58,374 | 1,350 | ||||||
Procter & Gamble | 23,675 | 1,528 | ||||||
Ralcorp Holdings = 6 | 970 | 66 | ||||||
Wal-Mart Stores | 20,167 | 1,125 | ||||||
5,056 | ||||||||
Energy – 5.3% | ||||||||
Arena Resources = 6 | 1,184 | 36 | ||||||
Atwood Oceanics = | 1,635 | 45 | ||||||
Cal Dive International = | 3,693 | 31 | ||||||
Cameron International = 6 | 27,415 | 665 | ||||||
Chevron | 13,463 | 1,004 | ||||||
Comstock Resources = 6 | 1,284 | 64 | ||||||
Edge Petroleum = 6 | 10,567 | 6 | ||||||
Exxon Mobil | 39,700 | 2,943 | ||||||
Holly | 3,018 | 59 | ||||||
Penn Virginia | 1,093 | 41 | ||||||
Petroleum Development = 6 | 589 | 12 | ||||||
Plains Exploration & Production = | 24,398 | 688 | ||||||
Tesoro 6 | 5,778 | 56 | ||||||
TETRA Technologies = | 10,694 | 75 | ||||||
Weatherford International = 6 | 65,545 | 1,106 | ||||||
Williams | 66,900 | 1,403 | ||||||
XTO Energy | 29,370 | 1,056 | ||||||
9,290 | ||||||||
Financials – 8.4% | ||||||||
ACE | 17,408 | 999 | ||||||
Affiliated Managers Group = 6 | 1,524 | 71 | ||||||
Astoria Financial | 6,407 | 122 | ||||||
Bank of America | 78,855 | 1,906 | ||||||
Bank of the Ozarks 6 | 4,469 | 136 | ||||||
BB&T 6 | 29,544 | 1,059 | ||||||
BioMed Realty Trust | 3,855 | 54 | ||||||
Cullen/Frost Bankers | 1,275 | 71 | ||||||
Delphi Financial Group, Class A | 6,504 | 102 | ||||||
Digital Realty Trust – REIT 6 | 1,074 | 36 | ||||||
Dime Community Bancshares | 7,362 | 123 | ||||||
HCC Insurance Holdings | 2,316 | 51 | ||||||
Hudson City Bancorp | 49,193 | 925 | ||||||
Independent Bank | 2,824 | 81 | ||||||
Invesco | 70,553 | 1,052 | ||||||
JPMorgan Chase | 52,686 | 2,173 | ||||||
Kite Realty Group Trust – REIT | 3,643 | 22 | ||||||
Knight Capital Group, Class A = | 7,958 | 115 | ||||||
LaSalle Hotel Properties – REIT | 3,097 | 44 | ||||||
MFA Mortgage Investments – REIT | 18,462 | 102 | ||||||
Platinum Underwriters Holdings | 3,998 | 127 | ||||||
State Street | 29,239 | 1,267 | ||||||
TD Ameritrade = | 73,450 | 976 | ||||||
Umpqua Holdings 6 | 2,641 | 45 | ||||||
Wells Fargo | 66,511 | 2,265 | ||||||
Zions Bancorporation | 23,090 | 880 | ||||||
14,804 | ||||||||
Healthcare – 7.8% | ||||||||
Abbott Laboratories | 33,905 | 1,870 | ||||||
Acorda Therapeutics = | 1,299 | 26 | ||||||
Alexion Pharmaceuticals = 6 | 912 | 37 | ||||||
Amedisys = 6 | 1,002 | 56 | ||||||
Amgen = | 23,068 | 1,382 | ||||||
Arena Pharmaceuticals = 6 | 6,103 | 22 | ||||||
Array BioPharma = | 7,424 | 37 | ||||||
Baxter International | 25,371 | 1,535 | ||||||
BioMarin Pharmaceutical = 6 | 804 | 15 | ||||||
Bio-Reference Laboratories = | 1,275 | 31 | ||||||
Celgene = 6 | 25,166 | 1,617 | ||||||
Dexcom = 6 | 12,115 | 55 | ||||||
eResearchTechnology = | 4,281 | 28 | ||||||
Exelixis = 6 | 4,165 | 14 | ||||||
Gilead Sciences = 6 | 27,689 | 1,270 | ||||||
Hologic = 6 | 1,156 | 14 | ||||||
ICU Medical = 6 | 4,140 | 133 | ||||||
Immucor = 6 | 4,171 | 111 | ||||||
Invitrogen = 6 | 27,271 | 785 | ||||||
IPC The Hospitalist = | 1,750 | 36 | ||||||
Isis Pharmaceuticals = 6 | 1,821 | 26 | ||||||
K-V Pharmaceutical, Class A = 6 | 7,925 | 135 | ||||||
Magellan Health Services = | 712 | 26 | ||||||
Masimo = | 1,259 | 40 | ||||||
Medco Health Solutions = | 31,586 | 1,199 | ||||||
Medtronic | 41,553 | 1,676 | ||||||
Myriad Genetics = 6 | 546 | 34 | ||||||
Onyx Pharmaceuticals = | 557 | 15 | ||||||
OSI Pharmaceuticals = 6 | 560 | 21 | ||||||
Pediatrix Medical Group = 6 | 882 | 34 | ||||||
RTI Biologics = | 6,689 | 20 | ||||||
Senomyx = 6 | 7,470 | 19 | ||||||
SonoSite = 6 | 3,279 | 69 | ||||||
Thermo Fisher Scientific = | 28,735 | 1,167 | ||||||
Thoratec = | 1,919 | 47 | ||||||
TranS1 = 6 | 5,556 | 35 | ||||||
United Therapeutics = 6 | 219 | 19 | ||||||
13,656 | ||||||||
The accompanying notes are an integral part of the financial statements.
58 First American Funds 2008 Annual Report
Table of Contents
Balanced Fund (continued) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Industrials – 5.1% | ||||||||
3M 6 | 23,887 | $ | 1,536 | |||||
Advisory Board = | 3,989 | 98 | ||||||
Ameron International | 845 | 40 | ||||||
AMETEK 6 | 2,256 | 75 | ||||||
BE Aerospace = | 8,486 | 109 | ||||||
CBIZ = 6 | 6,234 | 51 | ||||||
Con-way | 1,631 | 56 | ||||||
Emerson Electric | 35,096 | 1,149 | ||||||
EnergySolutions | 3,947 | 18 | ||||||
ESCO Technologies = 6 | 4,361 | 150 | ||||||
Forward Air 6 | 4,334 | 113 | ||||||
IDEX | 3,215 | 75 | ||||||
Illinois Tool Works 6 | 40,992 | 1,369 | ||||||
Interline Brands = 6 | 6,012 | 64 | ||||||
Kaydon | 532 | 18 | ||||||
Knight Transportation 6 | 5,166 | 82 | ||||||
MasTec = | 12,200 | 106 | ||||||
Old Dominion Freight Line = 6 | 1,277 | 39 | ||||||
Raytheon 6 | 28,704 | 1,467 | ||||||
RBC Bearings = 6 | 1,172 | 28 | ||||||
Southwest Airlines 6 | 70,405 | 829 | ||||||
United Parcel Service, Class B 6 | 25,656 | 1,354 | ||||||
Waste Connections = 6 | 1,698 | 57 | ||||||
8,883 | ||||||||
Information Technology – 9.5% | ||||||||
Accenture, Class A | 32,805 | 1,084 | ||||||
Activision Blizzard = | 64,381 | 802 | ||||||
ADC Telecommunications = 6 | 17,095 | 108 | ||||||
Advanced Analogic Technologies = | 32,621 | 98 | ||||||
Apple = 6 | 18,870 | 2,030 | ||||||
Bankrate = 6 | 404 | 13 | ||||||
Belden | 2,349 | 49 | ||||||
BMC Software = | 51,783 | 1,337 | ||||||
Cisco Systems = | 112,888 | 2,006 | ||||||
Cognex 6 | 239 | 4 | ||||||
Commvault Systems = | 3,858 | 41 | ||||||
DealerTrack Holdings = 6 | 8,107 | 87 | ||||||
Digital River = 6 | 1,294 | 32 | ||||||
Emulex = | 11,568 | 110 | ||||||
F5 Networks = | 3,848 | 96 | ||||||
Hewlett-Packard | 82,982 | 3,177 | ||||||
Hittite Microwave = | 1,469 | 48 | ||||||
MEMC Electronic Materials = | 43,758 | 804 | ||||||
Netlogic Microsystems = 6 | 1,274 | 27 | ||||||
Omniture = 6 | 6,194 | 71 | ||||||
Oracle = | 98,614 | 1,804 | ||||||
Plexus = | 1,589 | 30 | ||||||
Polycom = 6 | 5,970 | 125 | ||||||
Power Integrations = | 802 | 17 | ||||||
Progress Software = | 5,556 | 128 | ||||||
QUALCOMM | 11,528 | 441 | ||||||
Silicon Laboratories = | 3,040 | 79 | ||||||
Symantec = | 60,801 | 765 | ||||||
Tessera Technologies = | 6,441 | 111 | ||||||
Texas Instruments | 48,166 | 942 | ||||||
TTM Technologies = 6 | 6,376 | 46 | ||||||
VASCO Data Security International = | 5,738 | 65 | ||||||
16,577 | ||||||||
Materials – 1.3% | ||||||||
Albemarle | 3,986 | 97 | ||||||
AptarGroup | 2,469 | 75 | ||||||
Pactiv = | 84,622 | 1,994 | ||||||
Terra Industries | 3,139 | 69 | ||||||
2,235 | ||||||||
Telecommunication Services – 1.4% | ||||||||
American Tower, Class A = | 37,984 | 1,227 | ||||||
Cogent Communications Group = 6 | 6,095 | 29 | ||||||
General Communication, Class A = 6 | 3,916 | 30 | ||||||
Verizon Communications | 42,334 | 1,256 | ||||||
2,542 | ||||||||
Utilities – 0.0% | ||||||||
NSTAR | 2,004 | 66 | ||||||
Total Common Stocks (Cost $105,134) | 86,928 | |||||||
Investment Companies – 2.3% | ||||||||
iShares MSCI EAFE Index Fund 6 | 76,600 | 3,418 | ||||||
iShares MSCI Emerging Markets Index Fund 6 | 23,400 | 596 | ||||||
Total Investment Companies (Cost $4,900) | 4,014 | |||||||
Corporate Bonds – 18.8% | ||||||||
Banking – 4.8% | ||||||||
Bank of America | ||||||||
5.750%, 12/01/2017 6 | $ | 390 | 336 | |||||
8.000%, 12/29/2049 6 Δ | 585 | 438 | ||||||
Citigroup | ||||||||
6.125%, 05/15/2018 | 530 | 454 | ||||||
6.875%, 03/05/2038 6 | 350 | 290 | ||||||
8.400%, 04/29/2049 Δ | 1,395 | 970 | ||||||
Citigroup Capital XXI | ||||||||
8.300%, 12/21/2057 Δ | 955 | 656 | ||||||
Fifth Third Bancorp | ||||||||
6.250%, 05/01/2013 | 445 | 386 | ||||||
HSBC Holdings | ||||||||
6.800%, 06/01/2038 | 530 | 437 | ||||||
JPMorgan Chase | ||||||||
Series 1 | ||||||||
7.900%, 04/29/2049 Δ | 710 | 575 | ||||||
JPMorgan Chase Capital XX | ||||||||
Series T | ||||||||
6.550%, 09/29/2036 | 570 | 399 | ||||||
Lloyds TSB Group | ||||||||
6.267%, 12/31/2049 Δ n | 340 | 154 | ||||||
National City Preferred Capital Trust I | ||||||||
12.000%, 12/29/2049 Δ | 300 | 273 | ||||||
PNC Financial Services | ||||||||
8.250%, 05/29/2049 Δ | 440 | 363 | ||||||
UBS Preferred Funding Trust V | ||||||||
6.243%, 05/29/2049 Δ | 545 | 326 | ||||||
Wachovia | ||||||||
5.750%, 06/15/2017 | 290 | 250 | ||||||
5.750%, 02/01/2018 | 135 | 118 | ||||||
7.980%, 02/28/2049 6 Δ | 545 | 412 | ||||||
Wells Fargo | ||||||||
5.625%, 12/11/2017 6 | 250 | 221 | ||||||
Wells Fargo Capital X | ||||||||
5.950%, 12/15/2036 | 230 | 150 | ||||||
Wells Fargo Capital XIII | ||||||||
Series GMTN | ||||||||
7.700%, 12/29/2049 Δ | 1,250 | 1,022 | ||||||
Wells Fargo Capital XV | ||||||||
9.750%, 12/29/2049 Δ | 105 | 102 | ||||||
8,332 | ||||||||
First American Funds 2008 Annual Report 59
Table of Contents
Balanced Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Basic Industry – 1.7% | ||||||||
Arcelormittal | ||||||||
6.125%, 06/01/2018 n | $ | 470 | $ | 324 | ||||
Braskem Finance | ||||||||
7.250%, 06/05/2018 n | 405 | 289 | ||||||
Celulosa Arauco y Constitucion | ||||||||
5.625%, 04/20/2015 | 345 | 288 | ||||||
Evraz Group | ||||||||
8.250%, 11/10/2015 n | 190 | 80 | ||||||
FMG Finance | ||||||||
10.000%, 09/01/2013 6 n | 195 | 132 | ||||||
Freeport-McMoRan Copper & Gold | ||||||||
8.375%, 04/01/2017 | 350 | 275 | ||||||
Georgia-Pacific | ||||||||
7.125%, 01/15/2017 n | 190 | 132 | ||||||
Griffin Coal Mining | ||||||||
9.500%, 12/01/2016 n | 200 | 82 | ||||||
International Paper | ||||||||
8.700%, 06/15/2038 | 185 | 142 | ||||||
Noble Group Limited | ||||||||
6.625%, 03/17/2015 n | 255 | 115 | ||||||
Nova Chemicals | ||||||||
6.500%, 01/15/2012 | 200 | 158 | ||||||
Rio Tinto Financial U.S.A. | ||||||||
6.500%, 07/15/2018 | 265 | 205 | ||||||
Southern Copper | ||||||||
7.500%, 07/27/2035 | 190 | 125 | ||||||
Teck Cominco Limited | ||||||||
6.125%, 10/01/2035 | 280 | 153 | ||||||
U.S. Steel | ||||||||
7.000%, 02/01/2018 | 335 | 231 | ||||||
Vale Overseas | ||||||||
6.250%, 01/11/2016 | 175 | 146 | ||||||
Vedanta Resources | ||||||||
9.500%, 07/18/2018 n | 195 | 86 | ||||||
2,963 | ||||||||
Brokerage – 1.5% | ||||||||
Bear Stearns | ||||||||
7.250%, 02/01/2018 | 290 | 273 | ||||||
Goldman Sachs Capital II | ||||||||
5.793%, 12/29/2049 Δ | 1,015 | 466 | ||||||
Goldman Sachs Group | ||||||||
6.750%, 10/01/2037 | 780 | 508 | ||||||
Merrill Lynch | ||||||||
5.450%, 02/05/2013 | 305 | 275 | ||||||
6.050%, 05/16/2016 6 | 340 | 275 | ||||||
Morgan Stanley | ||||||||
5.375%, 10/15/2015 6 | 440 | 344 | ||||||
Series MTN | ||||||||
6.625%, 04/01/2018 | 650 | 541 | ||||||
2,682 | ||||||||
Capital Goods – 0.1% | ||||||||
Siemens Financiering | ||||||||
6.125%, 08/17/2026 n | 225 | 183 | ||||||
Communications – 1.1% | ||||||||
British Sky Broadcasting | ||||||||
6.100%, 02/15/2018 n | 510 | 430 | ||||||
British Telecom | ||||||||
5.950%, 01/15/2018 | 450 | 356 | ||||||
Deutsche Telekom | ||||||||
6.750%, 08/20/2018 6 | 370 | 308 | ||||||
Embarq | ||||||||
7.082%, 06/01/2016 | 215 | 166 | ||||||
Time Warner Cable | ||||||||
7.300%, 07/01/2038 6 | 370 | 310 | ||||||
Verizon Communications | ||||||||
6.900%, 04/15/2038 | 475 | 397 | ||||||
1,967 | ||||||||
Consumer Cyclical – 0.8% | ||||||||
CVS Caremark | ||||||||
6.302%, 06/01/2037 Δ | 340 | 238 | ||||||
Duty Free International | ||||||||
7.000%, 01/15/2004 ⊡ ª | 588 | — | ||||||
Galaxy Entertainment | ||||||||
9.875%, 12/15/2012 6 n ¥ | 175 | 67 | ||||||
Home Depot | ||||||||
5.875%, 12/16/2036 | 270 | 161 | ||||||
Lippo Karawaci Finance | ||||||||
8.875%, 03/09/2011 | 175 | 80 | ||||||
Marfrig Overseas | ||||||||
9.625%, 11/16/2016 n | 290 | 139 | ||||||
Viacom | ||||||||
6.875%, 04/30/2036 | 365 | 255 | ||||||
Whirlpool | ||||||||
Series MTN | ||||||||
5.500%, 03/01/2013 | 435 | 403 | ||||||
1,343 | ||||||||
Consumer Non Cyclical – 0.6% | ||||||||
AmerisourceBergen | ||||||||
5.625%, 09/15/2012 | 500 | 452 | ||||||
Constellation Brands | ||||||||
7.250%, 05/15/2017 | 300 | 249 | ||||||
Fisher Scientific International | ||||||||
6.750%, 08/15/2014 | 220 | 192 | ||||||
Smithfield Foods | ||||||||
7.000%, 08/01/2011 | 250 | 175 | ||||||
1,068 | ||||||||
Electric – 0.8% | ||||||||
Dynegy Holdings | ||||||||
7.750%, 06/01/2019 | 305 | 204 | ||||||
Energy Future Holdings | ||||||||
10.875%, 11/01/2017 n | 205 | 158 | ||||||
ISA Capital Brasil | ||||||||
8.800%, 01/30/2017 n | 180 | 130 | ||||||
Oncor Electric Delivery | ||||||||
7.000%, 05/01/2032 | 225 | 168 | ||||||
Taqa Abu Dhabi National Energy | ||||||||
6.165%, 10/25/2017 6 n | 370 | 247 | ||||||
Transalta | ||||||||
6.650%, 05/15/2018 | 290 | 251 | ||||||
Virginia Electric Power | ||||||||
5.950%, 09/15/2017 | 240 | 207 | ||||||
1,365 | ||||||||
Energy – 1.1% | ||||||||
Lukoil International Finance | ||||||||
6.356%, 06/07/2017 n | 120 | 66 | ||||||
6.656%, 06/07/2022 n | 460 | 230 | ||||||
Mariner Energy | ||||||||
7.500%, 04/15/2013 | 270 | 186 | ||||||
Petro-Canada | ||||||||
6.800%, 05/15/2038 | 270 | 182 | ||||||
Pioneer Natural Resource | ||||||||
6.650%, 03/15/2017 | 290 | 218 | ||||||
Suncor Energy | ||||||||
6.100%, 06/01/2018 | 195 | 155 |
The accompanying notes are an integral part of the financial statements.
60 First American Funds 2008 Annual Report
Table of Contents
Balanced Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Tengizchevroil Finance | ||||||||
6.124%, 11/15/2014 n | $ | 344 | $ | 220 | ||||
Tesoro | ||||||||
6.625%, 11/01/2015 | 375 | 255 | ||||||
Weatherford International | ||||||||
7.000%, 03/15/2038 | 145 | 107 | ||||||
Whiting Petroleum | ||||||||
7.000%, 02/01/2014 | 295 | 209 | ||||||
XTO Energy | ||||||||
6.375%, 06/15/2038 | 205 | 144 | ||||||
1,972 | ||||||||
Finance – 1.2% | ||||||||
American Express Credit Series C | ||||||||
7.300%, 08/20/2013 | 335 | 296 | ||||||
Capital One Financial | ||||||||
6.150%, 09/01/2016 | 400 | 243 | ||||||
CIT Group | ||||||||
5.650%, 02/13/2017 | 110 | 53 | ||||||
Credit Agricole | ||||||||
6.637%, 05/29/2049 Δ n | 275 | 132 | ||||||
ILFC E-Capital Trust I | ||||||||
5.900%, 12/21/2065 Δ n | 405 | 136 | ||||||
International Lease Finance | ||||||||
6.375%, 03/25/2013 | 305 | 199 | ||||||
Janus Capital Group | ||||||||
6.700%, 06/15/2017 | 305 | 193 | ||||||
Rockies Express Pipeline | ||||||||
7.500%, 07/15/2038 6 n | 200 | 151 | ||||||
RSHB Capital | ||||||||
7.750%, 05/29/2018 n | 250 | 157 | ||||||
SLM | ||||||||
Series MTN | ||||||||
5.400%, 10/25/2011 | 350 | 248 | ||||||
Transcapitalinvest | ||||||||
5.670%, 03/05/2014 n | 640 | 371 | ||||||
2,179 | ||||||||
Insurance – 1.3% | ||||||||
Allied World Assurance | ||||||||
7.500%, 08/01/2016 6 | 565 | 465 | ||||||
American International Group | ||||||||
8.175%, 05/15/2058 Δ n | 680 | 108 | ||||||
Chubb | ||||||||
5.750%, 05/15/2018 | 560 | 465 | ||||||
Genworth Financial | ||||||||
Series MTN | ||||||||
6.515%, 05/22/2018 | 325 | 158 | ||||||
Hartford Financial Services Group Series MTN | ||||||||
6.000%, 01/15/2019 | 415 | 288 | ||||||
Liberty Mutual Group | ||||||||
7.000%, 03/15/2037 Δ n | 235 | 126 | ||||||
MetLife Capital Trust IV | ||||||||
7.875%, 12/15/2037 n | 330 | 185 | ||||||
ZFS Finance USA Trust V | ||||||||
6.500%, 05/09/2037 Δ n | 755 | 408 | ||||||
2,203 | ||||||||
Natural Gas – 0.4% | ||||||||
Enterprise Products | ||||||||
8.375%, 08/01/2066 | 180 | 134 | ||||||
Kinder Morgan Energy Partners Series MTN | ||||||||
6.950%, 01/15/2038 | 290 | 213 | ||||||
NGPL Pipeco | ||||||||
7.119%, 12/15/2017 n | 230 | 187 | ||||||
Southern Union | ||||||||
7.200%, 11/01/2066 Δ | 155 | 96 | ||||||
Transport De Gas Del Sur | ||||||||
7.875%, 05/14/2017 n | 235 | 96 | ||||||
726 | ||||||||
Real Estate – 0.5% | ||||||||
Health Care Properties – REIT Series MTN | ||||||||
6.300%, 09/15/2016 | 710 | 532 | ||||||
iStar Financial – REIT | ||||||||
8.625%, 06/01/2013 | 235 | 92 | ||||||
Prologis 2006 – REIT | ||||||||
5.750%, 04/01/2016 | 600 | 317 | ||||||
941 | ||||||||
Sovereign – 1.2% | ||||||||
U.K. Government Treasury | ||||||||
5.250%, 06/07/2012 ¬ | GBP | 1,200 | 2,035 | |||||
Technology – 1.6% | ||||||||
Amkor Technologies | ||||||||
9.250%, 06/01/2016 | $ | 285 | 170 | |||||
Celestica | ||||||||
7.875%, 07/01/2011 | 295 | 265 | ||||||
Chartered Semiconductor | ||||||||
6.375%, 08/03/2015 | 250 | 196 | ||||||
Computer Sciences | ||||||||
6.500%, 03/15/2018 n | 340 | 264 | ||||||
First Data | ||||||||
9.875%, 09/24/2015 | 200 | 128 | ||||||
IBM | ||||||||
8.000%, 10/15/2038 | 175 | 182 | ||||||
Jabil Circuit | ||||||||
5.875%, 07/15/2010 | 680 | 613 | ||||||
LG Electronics | ||||||||
5.000%, 06/17/2010 n ¥ | 340 | 308 | ||||||
National Semiconductor | ||||||||
6.600%, 06/15/2017 | 475 | 408 | ||||||
NXP BV/NXP Funding | ||||||||
9.500%, 10/15/2015 6 | 180 | 61 | ||||||
Seagate Technology | ||||||||
6.375%, 10/01/2011 | 290 | 258 | ||||||
2,853 | ||||||||
Transportation – 0.1% | ||||||||
Erac USA Finance | ||||||||
6.375%, 10/15/2017 n | 265 | 163 | ||||||
Total Corporate Bonds (Cost $45,649) | 32,975 | |||||||
Collateralized Mortgage Obligation – Private Mortgage-Backed Securities – 8.9% | ||||||||
Adjustable RateΔ – 3.4% | ||||||||
Citigroup Mortgage Loan Trust Series 2004-HYB4, Class HAII | ||||||||
5.346%, 10/25/2034 | 1,860 | 1,340 | ||||||
Series 2005-7, Class 2A1A | ||||||||
4.862%, 09/25/2035 | 520 | 443 | ||||||
Countrywide Home Loans Series 2006-HYB5, Class 3A1A | ||||||||
6.041%, 09/20/2036 | 1,165 | 692 |
First American Funds 2008 Annual Report 61
Table of Contents
Balanced Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Harborview Mortgage Loan Trust Series 2007-4, Class 2A1 | ||||||||
5.540%, 07/19/2047 | $ | 1,013 | $ | 502 | ||||
JPMorgan Mortgage Trust Series 2004-A1, Class 3A1 | ||||||||
5.090%, 02/25/2034 | 1,052 | 869 | ||||||
Series 2006-A7, Class 3A4 | ||||||||
5.962%, 01/25/2037 | 413 | 310 | ||||||
Residential Funding Mortgage Securities I Series 2006-SA2, Class 4A1 | ||||||||
5.891%, 08/25/2036 | 904 | 708 | ||||||
Structured Mortgage Loan Trust Series 2004-11, Class A | ||||||||
7.195%, 08/25/2034 | 29 | 29 | ||||||
Wachovia Mortgage Loan Trust Series 2005-B, Class 1A1 | ||||||||
4.995%, 10/20/2035 | 394 | 366 | ||||||
Wells Fargo Mortgage Backed Securities Trust Series 2003-D, Class A1 | ||||||||
4.931%, 02/25/2033 | 105 | 99 | ||||||
Series 2006-AR1, Class 2A2 | ||||||||
5.551%, 03/25/2036 | 838 | 702 | ||||||
6,060 | ||||||||
Fixed Rate – 5.5% | ||||||||
Banc of America Mortgage Securities Series 2003-6, Class 1A30 | ||||||||
4.750%, 08/25/2033 | 585 | 572 | ||||||
Countrywide Alternative Loan Trust | ||||||||
Series 2004-12CB, Class 1A1 | ||||||||
5.000%, 07/25/2019 | 338 | 307 | ||||||
Series 2004-2CB, Class 1A1 | ||||||||
4.250%, 03/25/2034 | 206 | 188 | ||||||
Series 2004-24CB, Class 1A1 | ||||||||
6.000%, 11/25/2034 | 266 | 234 | ||||||
Series 2006-19CB, Class A15 | ||||||||
6.000%, 08/25/2036 | 336 | 271 | ||||||
Countrywide Home Loans Series 2007-17, Class 1A1 | ||||||||
6.000%, 10/25/2037 | 1,179 | 919 | ||||||
Credit Suisse First Boston Mortgage Securities Series 2005-3, Class 5A1 | ||||||||
5.500%, 07/25/2020 | 453 | 445 | ||||||
Deutsche Alt-A Securities Series 2006-AR5, Class 22A | ||||||||
5.500%, 10/25/2021 | 639 | 528 | ||||||
GMAC Mortgage Corporation Loan Trust Series 2004-J5, Class A7 | ||||||||
6.500%, 01/25/2035 | 456 | 417 | ||||||
GSMPS Mortgage Loan Trust Series 2003-1, Class B1 | ||||||||
6.948%, 03/25/2043 | 816 | 665 | ||||||
GSR Mortgage Loan Trust Series 2004-10F, Class 3A1 | ||||||||
5.500%, 08/25/2019 | 335 | 317 | ||||||
Master Alternative Loans Trust Series 2005-2, Class 1A3 | ||||||||
6.500%, 03/25/2035 | 220 | 195 | ||||||
Morgan Stanley Mortgage Loan Trust Series 2004-9, Class 1A | ||||||||
6.206%, 11/25/2034 | 291 | 245 | ||||||
Residential Accredit Loans Series 2006-QS4, Class A9 | ||||||||
6.000%, 04/25/2036 | 1,059 | 841 | ||||||
Residential Asset Mortgage Products | ||||||||
Series 2004-SL4, Class A3 | ||||||||
6.500%, 07/25/2032 | 197 | 170 | ||||||
Washington Mutual Pass-Through Certificates Series 2004-CB1, Class 1A | ||||||||
5.250%, 06/25/2019 | 556 | 544 | ||||||
Series 2007-2, Class 3A1 | ||||||||
5.500%, 04/25/2022 | 580 | 497 | ||||||
Series 2004-RA3, Class 2A | ||||||||
6.609%, 08/25/2038 | 337 | 318 | ||||||
Wells Fargo Mortgage Backed Securities Trust Series 2004-7, Class 2A2 | ||||||||
5.000%, 07/25/2019 | 1,196 | 1,110 | ||||||
Series 2007-13, Class A8 | ||||||||
6.000%, 09/25/2037 | 950 | 788 | ||||||
Westam Mortgage Financial Series 11, Class A | ||||||||
6.360%, 08/26/2020 ¥ | 1 | 1 | ||||||
9,572 | ||||||||
Total Collateralized Mortgage Obligation — Private Mortgage-Backed Securities (Cost $18,971) | 15,632 | |||||||
Asset-Backed Securities – 6.8% | ||||||||
Automotive – 0.5% | ||||||||
Hertz Vehicle Financing Series 2005-2A, Class A6 | ||||||||
5.080%, 11/25/2011 n | 935 | 865 | ||||||
Credit Cards – 0.5% | ||||||||
Citibank Credit Card Issuance Trust Series 2006-A4, Class A4 | ||||||||
5.450%, 05/10/2013 | 805 | 754 | ||||||
Discover Card Master Trust Series 2007-A1, Class A1 | ||||||||
5.650%, 03/16/2020 | 275 | 196 | ||||||
950 | ||||||||
Home Equity – 0.0% | ||||||||
Saxon Asset Securities Trust Series 2004-1, Class A | ||||||||
1.361%, 03/25/2035 Δ ¥ | 4 | 3 | ||||||
Other – 5.8% | ||||||||
Banc of America Commercial Mortgage Series 2004-5, Class A3 | ||||||||
4.561%, 11/10/2041 | 710 | 645 | ||||||
Series 2006-2, Class A4 | ||||||||
5.741%, 05/10/2045 Δ | 340 | 270 | ||||||
Bear Stearns Commercial Mortgage Securities Series 2007-T28, Class D | ||||||||
5.992%, 09/11/2042 n | 270 | 95 | ||||||
Series 2007-PW18, Class AJ | ||||||||
6.413%, 06/11/2050 Δ | 295 | 164 | ||||||
Citigroup Commercial Mortgage Trust Series 2008-C7, Class AJ | ||||||||
6.096%, 12/10/2049 Δ | 355 | 196 | ||||||
Citigroup/Deutsche Bank Commercial Mortgage Trust Series 2007-CD4, Class A2B | ||||||||
5.205%, 12/11/2049 | 230 | 201 | ||||||
Commercial Mortgage Pass-Through Certificates Series 2006-CN2A, Class A2FX | ||||||||
5.449%, 02/05/2019 n | 585 | 539 | ||||||
Series 2004-RS1, Class A | ||||||||
4.018%, 03/03/2041 n ¥ | 414 | 333 |
The accompanying notes are an integral part of the financial statements.
62 First American Funds 2008 Annual Report
Table of Contents
Balanced Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Crown Castle Towers Series 2005-1A, Class B | ||||||||
4.878%, 06/15/2035 n | $ | 630 | $ | 597 | ||||
GE Capital Commercial Mortgage Corporation Series 2005-C3, Class A2 | ||||||||
4.853%, 07/10/2045 | 725 | 688 | ||||||
Global Signal Trust Series 2004-2A, Class A | ||||||||
4.232%, 12/15/2014 n | 750 | 733 | ||||||
Greenwich Capital Commercial Funding Series 2003-C1, Class A2 | ||||||||
3.285%, 07/05/2035 | 903 | 854 | ||||||
GS Mortgage Securities II Series 2006-GG8, Class A2 | ||||||||
5.479%, 11/10/2039 | 500 | 450 | ||||||
Series 2007-GG10, Class A4 | ||||||||
5.993%, 08/10/2045 Δ | 310 | 233 | ||||||
Series 2006-RR2, Class A1 | ||||||||
5.816%, 06/23/2046 Δ n ¥ | 359 | 144 | ||||||
JPMorgan Chase Commercial Mortgage Securities Series 2005-LDP5, Class B | ||||||||
5.334%, 12/15/2044 Δ | 245 | 158 | ||||||
Series 2007-CB20, Class AJ | ||||||||
6.099%, 02/12/2051 Δ | 320 | 178 | ||||||
LB-UBS Commercial Mortgage Trust Series 2003-C3, Class A2 | ||||||||
3.086%, 05/15/2027 | 46 | 46 | ||||||
Series 2005-C7, Class A2 | ||||||||
5.103%, 11/15/2030 | 800 | 752 | ||||||
Series 2008-C1, Class AJ | ||||||||
6.150%, 04/15/2041 | 200 | 109 | ||||||
Series 2007-C7, Class AM | ||||||||
6.374%, 09/15/2045 Δ | 370 | 230 | ||||||
Merrill Lynch Mortgage Trust Series 2005-CIP1, Class C | ||||||||
5.128%, 07/12/2038 Δ | 265 | 168 | ||||||
Series 2005-LC1, Class AM | ||||||||
5.264%, 01/12/2044 Δ | 490 | 335 | ||||||
Series 2008-C1, Class A4 | ||||||||
5.690%, 02/12/2051 | 120 | 89 | ||||||
Merrill Lynch/Countrywide Commercial Mortgage Trust Series 2007-8, Class AM | ||||||||
5.957%, 08/12/2049 Δ | 645 | 399 | ||||||
Morgan Stanley Capital I Series 2005-HQ6, Class B | ||||||||
5.152%, 08/13/2042 Δ | 115 | 74 | ||||||
Series 2005-HQ6, Class C | ||||||||
5.172%, 08/13/2042 Δ | 110 | 71 | ||||||
Morgan Stanley Dean Witter Capital I Series 2002-TOP7, Class A2 | ||||||||
5.980%, 01/15/2039 | 1,025 | 956 | ||||||
Wachovia Bank Commercial Mortgage Trust Series 2007-C34, Class AJ | ||||||||
5.952%, 05/15/2046 Δ | 430 | 236 | ||||||
Series 2007-C33, Class AJ | ||||||||
6.100%, 02/15/2051 Δ | 420 | 231 | ||||||
10,174 | ||||||||
Total Asset-Backed Securities (Cost $14,614) | 11,992 | |||||||
U.S. Government Agency Mortgage-Backed Securities – 5.7% | ||||||||
Adjustable Rate Δ – 0.9% | ||||||||
Federal Home Loan Mortgage Corporation Pool | ||||||||
5.771%, 07/01/2036, #1K1238 6 | 816 | 821 | ||||||
Federal National Mortgage Association Pool | ||||||||
6.164%, 04/01/2018, #070009 | 26 | 27 | ||||||
5.262%, 11/01/2034, #735054 6 | 653 | 653 | ||||||
1,501 | ||||||||
Fixed Rate – 4.8% | ||||||||
Federal Home Loan Mortgage Corporation Pool | ||||||||
5.500%, 03/01/2013, #E00546 | 57 | 57 | ||||||
4.500%, 05/01/2018, #P10032 6 | 310 | 303 | ||||||
6.500%, 11/01/2028, #C00676 | 360 | 368 | ||||||
7.000%, 12/01/2029, #G01091 | 68 | 70 | ||||||
6.500%, 07/01/2031, #A17212 6 | 215 | 219 | ||||||
6.000%, 05/01/2032, #C01361 | 85 | 86 | ||||||
7.000%, 08/01/2037, #H09059 6 | 734 | 742 | ||||||
Federal National Mortgage Association Pool | ||||||||
6.000%, 09/01/2017, #653368 | 144 | 145 | ||||||
4.500%, 06/01/2019, #045181 | 256 | 245 | ||||||
6.000%, 10/01/2022, #254513 6 | 323 | 325 | ||||||
7.000%, 04/01/2029, #323681 | 72 | 75 | ||||||
6.500%, 12/01/2031, #254169 6 | 240 | 243 | ||||||
6.000%, 04/01/2032, #745101 6 | 644 | 646 | ||||||
6.500%, 05/01/2032, #640032 | 546 | 558 | ||||||
7.000%, 07/01/2032, #545815 | 132 | 137 | ||||||
6.000%, 09/01/2032, #254447 6 | 274 | 275 | ||||||
5.500%, 06/01/2033, #843435 | 366 | 359 | ||||||
5.000%, 09/01/2033, #713735 | 188 | 179 | ||||||
6.000%, 11/01/2033, #772130 | 153 | 153 | ||||||
6.000%, 11/01/2033, #772256 | 175 | 175 | ||||||
5.500%, 04/01/2034, #725424 | 345 | 338 | ||||||
6.500%, 06/01/2034, #735273 6 | 573 | 584 | ||||||
6.500%, 04/01/2036, #852909 | 505 | 512 | ||||||
6.500%, 07/01/2036, #831683 6 | 511 | 518 | ||||||
6.500%, 08/01/2036, #893318 6 | 451 | 458 | ||||||
6.000%, 09/01/2037, #256890 6 | 534 | 526 | ||||||
Government National Mortgage Association Pool | ||||||||
6.500%, 10/20/2010, #002108 | 2 | 2 | ||||||
7.500%, 06/15/2027, #447728 | 4 | 5 | ||||||
7.500%, 09/15/2027, #455516 | 6 | 7 | ||||||
7.000%, 04/15/2029, #506639 | 143 | 147 | ||||||
8,457 | ||||||||
Total U.S. Government Agency Mortgage-Backed Securities (Cost $10,043) | 9,958 | |||||||
Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities – 1.9% | ||||||||
Fixed Rate – 1.9% | ||||||||
Federal Home Loan Mortgage Corporation Series 2763, Class TA | ||||||||
4.000%, 03/15/2011 | 430 | 434 | ||||||
Series 85, Class C | ||||||||
8.600%, 01/15/2021 | 63 | 67 | ||||||
Series 1136, Class H | ||||||||
6.000%, 09/15/2021 | 43 | 44 | ||||||
Federal National Mortgage Association Series 1989-2, Class D | ||||||||
8.800%, 01/25/2019 | 4 | 4 |
First American Funds 2008 Annual Report 63
Table of Contents
Balanced Fund (continued) | ||||||||
DESCRIPTION | PAR/SHARES/CONTRACTS | VALUE | ||||||
Series 1989-37, Class G | ||||||||
8.000%, 07/25/2019 | $ | 64 | $ | 69 | ||||
Series 1990-30, Class E | ||||||||
6.500%, 03/25/2020 | 25 | 26 | ||||||
Series 1990-63, Class H | ||||||||
9.500%, 06/25/2020 | 13 | 14 | ||||||
Series 1990-89, Class K | ||||||||
6.500%, 07/25/2020 | 3 | 3 | ||||||
Series 1990-105, Class J | ||||||||
6.500%, 09/25/2020 | 40 | 42 | ||||||
Series 2005-44, Class PC | ||||||||
5.000%, 11/25/2027 | 1,139 | 1,144 | ||||||
Series 2003-81, Class MB | ||||||||
5.000%, 05/25/2029 | 960 | 964 | ||||||
Series 2005-62, Class JE | ||||||||
5.000%, 06/25/2035 | 616 | 604 | ||||||
Government National Mortgage Association Series 3, Class F | ||||||||
6.500%, 06/17/2020 | 5 | 5 | ||||||
Total Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities (Cost $3,384) | 3,420 | |||||||
Preferred Stocks – 0.2% | ||||||||
Brokerage – 0.2% | ||||||||
Merrill Lynch | 13,700 | 281 | ||||||
Sovereign – 0.0% | ||||||||
Fannie Mae 6 | 28,000 | 59 | ||||||
Total Preferred Stocks (Cost $1,043) | 340 | |||||||
Options Purchased – 0.0% | ||||||||
Call Options Purchased – 0.0% | ||||||||
Euro Bund Futures December 2008 Futures Call Expires 11/21/2008 | ||||||||
Exercise Price: $117.00 | 7 | 6 | ||||||
Euro Bund Futures December 2008 Futures Call Expires 11/21/2008 | 14 | 7 | ||||||
Exercise Price: $117.50 | ||||||||
Total Purchased Options (Cost $13) | 13 | |||||||
Short-Term Investments – 5.4% | ||||||||
Money Market Fund – 4.1% | ||||||||
First American Prime Obligations Fund, Class Z Å | 7,230,226 | 7,230 | ||||||
U.S. Treasury Obligations – 1.3% | ||||||||
U.S. Treasury Bills o | ||||||||
1.640%, 11/20/2008 | $ | 425 | 425 | |||||
2.130%, 12/18/2008 | 600 | 598 | ||||||
0.288%, 01/22/2009 | 295 | 295 | ||||||
0.425%, 01/29/2009 | 40 | 40 | ||||||
0.799%, 04/02/2009 | 910 | 907 | ||||||
0.815%, 04/09/2009 | 70 | 70 | ||||||
2,335 | ||||||||
Total Short-Term Investments (Cost $9,563) | 9,565 | |||||||
Investment Purchased with Proceeds from Securities Lending – 20.1% | ||||||||
Mount Vernon Securities Lending Prime Portfolio† (Cost $35,199) | 35,198,700 | $ | 35,199 | |||||
Total Investments – 119.7% (Cost $248,513) | 210,036 | |||||||
Other Assets and Liabilities, Net – (19.7)% | (34,631 | ) | ||||||
Total Net Assets – 100.0% | $ | 175,405 | ||||||
= | Non-income producing security. | |
6 | This security or a portion of this security is out on loan at October 31, 2008. Total loaned securities had a value of $34,439 at October 31, 2008. See note 2 in Notes to Financial Statements. | |
Δ | Variable Rate Security – The rate shown is the rate in effect as of October 31, 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 October 31, 2008, the value of these investments was $9,362 or 5.3% of total net assets. See note 2 in Notes to Financial Statements. | |
¥ | Security is illiquid. As of October 31, 2008, the value of these investments are $856 or 0.5% of total net assets. See note 2 in Notes to Financial Statements. | |
⊡ | Security is fair valued and illiquid. As of October 31, 2008, the fair value of this investment was $0 or 0.0% of total net assets. See note 2 in Notes to Financial Statements. | |
ª | Security is in default at October 31, 2008. | |
¬ | Foreign denominated security values are stated in U.S. dollars. Principal amounts are 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 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 October 31, 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. |
GBP – | Great Britain Pound |
REIT – | Real Estate Investment Trust |
The accompanying notes are an integral part of the financial statements.
64 First American Funds 2008 Annual Report
Table of Contents
Balanced 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 | 5 | $ | 333 | December 2008 | $ | (11 | ) | |||||||
British Pounds Currency Futures | (20 | ) | (2,013 | ) | December 2008 | 67 | ||||||||
Canadian Dollar Currency Futures | 23 | 1,915 | December 2008 | (214 | ) | |||||||||
Euro Bund Futures | 25 | 3,694 | December 2008 | 52 | ||||||||||
Euro Currency Futures | 8 | 1,274 | December 2008 | (9 | ) | |||||||||
Eurodollar 90 Day Futures | 27 | 26,232 | December 2009 | 24 | ||||||||||
Japanese Yen Currency Futures | (16 | ) | (2,028 | ) | December 2008 | 30 | ||||||||
S&P 500 Futures | 14 | 3,386 | December 2008 | (724 | ) | |||||||||
Swiss Franc Currency Futures | 18 | 1,949 | December 2008 | (106 | ) | |||||||||
U.S. Treasury 2 Year Note Futures | (98 | ) | (21,053 | ) | December 2008 | (82 | ) | |||||||
U.S. Treasury 5 Year Note Futures | (39 | ) | (4,417 | ) | December 2008 | 20 | ||||||||
U.S. Treasury 10 Year Note Futures | 65 | 7,350 | December 2008 | (177 | ) | |||||||||
U.S. Treasury Long Bond Futures | (36 | ) | (4,073 | ) | December 2008 | 227 | ||||||||
$ | (903 | ) | ||||||||||||
Credit Default Swap Agreements
Pay/ | Unrealized | |||||||||||||||||||||
Reference | Buy/Sell | Receive | Expiration | Notional | Appreciation | |||||||||||||||||
Counterparty | Entity | Protection | Fixed Rate | Date | Amount | (Depreciation) | ||||||||||||||||
Credit Suisse First Boston | Dow Jones CDX IG11 Index | Sell | 1.500% | 12/20/2013 | $ | 4,200 | $ | (39 | ) | |||||||||||||
Deutsche Bank | Dow Jones CDX HVOL11 Index | Sell | 3.850% | 12/20/2013 | 4,100 | (55 | ) | |||||||||||||||
Deutsche Bank | Dow Jones CDX IG11 Index | Sell | 1.500% | 12/20/2013 | 6,600 | (61 | ) | |||||||||||||||
JPMorgan | Deutsche Bank AG | Buy | 0.525% | 09/20/2012 | 600 | 19 | ||||||||||||||||
JPMorgan | Dow Jones CDX HVOL11 Index | Sell | 3.850% | 12/20/2013 | 1,400 | (22 | ) | |||||||||||||||
JPMorgan | Dow Jones iTraxx Asia ex-Japan Index | Sell | 6.500% | 06/20/2013 | 3,700 | (761 | ) | |||||||||||||||
UBS | Dow Jones iTraxx Asia ex-Japan Index | Sell | 6.500% | 06/20/2013 | 1,200 | (256 | ) | |||||||||||||||
UBS | Dow Jones CDX IG11 Index | Sell | 1.500% | 12/20/2013 | 900 | (9 | ) | |||||||||||||||
UBS | Markit ABX AAA071 Index | Sell | 0.090% | 08/25/2037 | 650 | (19 | ) | |||||||||||||||
UBS | Korea Government Investment Bond | Buy | 1.050% | 09/20/2015 | 300 | 41 | ||||||||||||||||
$ | (1,162 | ) | ||||||||||||||||||||
Balanced 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 | 4.135% | 09/24/2013 | $ | 2,000 | $ | 27 | ||||||||||||||
JPMorgan | 3-Month LIBOR | Pay | 3.612% | 09/19/2013 | 2,000 | (19 | ) | |||||||||||||||
UBS | 3-Month LIBOR | Pay | 4.070% | 09/25/2013 | 1,000 | 10 | ||||||||||||||||
UBS | 3-Month LIBOR | Pay | 2.795% | 04/18/2010 | 3,000 | (2 | ) | |||||||||||||||
UBS | 3-Month LIBOR | Pay | 3.343% | 07/18/2010 | 6,000 | 53 | ||||||||||||||||
$ | 69 | |||||||||||||||||||||
First American Funds 2008 Annual Report 65
Table of Contents
Schedule of Investments October 31, 2008, all dollars rounded to thousands (000)
Equity Income Fund | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Common Stocks – 97.6% | ||||||||
Consumer Discretionary – 6.9% | ||||||||
Home Depot 6 | 468,022 | $ | 11,041 | |||||
McDonald’s 6 | 355,665 | 20,604 | ||||||
Time Warner 6 | 363,555 | 3,668 | ||||||
Yum! Brands 6 | 425,200 | 12,335 | ||||||
47,648 | ||||||||
Consumer Staples – 10.9% | ||||||||
Altria Group 6 | 332,471 | 6,380 | ||||||
General Mills 6 | 210,116 | 14,233 | ||||||
Kraft Foods, Class A 6 | 211,613 | 6,167 | ||||||
Philip Morris International 6 | 332,471 | 14,453 | ||||||
Procter & Gamble | 181,408 | 11,708 | ||||||
Wal-Mart Stores 6 | 401,171 | 22,389 | ||||||
75,330 | ||||||||
Energy – 15.8% | ||||||||
BP – ADR 6 | 412,674 | 20,510 | ||||||
Chevron | 352,577 | 26,302 | ||||||
ConocoPhillips | 397,988 | 20,703 | ||||||
Enerplus Resources Fund | 56,143 | 1,500 | ||||||
Exterran Partners | 300,168 | 4,514 | ||||||
Exxon Mobil | 389,224 | 28,849 | ||||||
Williams 6 | 304,893 | 6,394 | ||||||
108,772 | ||||||||
Financials – 14.8% | ||||||||
AFLAC 6 | 163,992 | 7,262 | ||||||
AllianceBernstein Holding | 421,846 | 9,888 | ||||||
Annaly Capital Management – REIT 6 | 473,883 | 6,587 | ||||||
Bank of America 6 | 490,859 | 11,864 | ||||||
Barclays – ADR 6 | 102,020 | 1,099 | ||||||
BB&T 6 | 312,226 | 11,193 | ||||||
BlackRock 6 | 44,537 | 5,849 | ||||||
Citigroup | 1,116,431 | 15,239 | ||||||
Goldman Sachs Group 6 | 81,983 | 7,583 | ||||||
ICICI Bank – ADR | 120,481 | 2,059 | ||||||
Prudential Financial 6 | 44,822 | 1,345 | ||||||
TCF Financial | 733,541 | 13,013 | ||||||
Travelers | 212,383 | 9,037 | ||||||
102,018 | ||||||||
Healthcare – 11.4% | ||||||||
Abbott Laboratories 6 | 517,478 | 28,539 | ||||||
Allergan | 49,222 | 1,953 | ||||||
Bristol-Myers Squibb 6 | 668,755 | 13,743 | ||||||
Johnson & Johnson 6 | 350,238 | 21,483 | ||||||
Medtronic 6 | 194,497 | 7,844 | ||||||
Pfizer | 277,791 | 4,920 | ||||||
78,482 | ||||||||
Industrials – 8.8% | ||||||||
3M 6 | 163,737 | 10,528 | ||||||
Emerson Electric 6 | 450,766 | 14,754 | ||||||
General Dynamics | 179,817 | 10,847 | ||||||
General Electric 6 | 665,323 | 12,980 | ||||||
United Parcel Service, Class B 6 | 219,672 | 11,594 | ||||||
60,703 | ||||||||
Information Technology – 14.0% | ||||||||
CA 6 | 695,624 | 12,382 | ||||||
Hewlett-Packard 6 | 271,473 | 10,392 | ||||||
IBM | 121,759 | 11,320 | ||||||
Intel | 710,642 | 11,370 | ||||||
Intersil, Class A | 347,681 | 4,760 | ||||||
MasterCard, Class A 6 | 22,339 | 3,302 | ||||||
Maxim Integrated Products 6 | 330,571 | 4,496 | ||||||
Microsoft 6 | 768,936 | 17,170 | ||||||
QUALCOMM | 387,742 | 14,835 | ||||||
Texas Instruments | 325,248 | 6,362 | ||||||
96,389 | ||||||||
Materials – 4.6% | ||||||||
E.I. Du Pont de Nemours | 460,487 | 14,736 | ||||||
Praxair 6 | 256,628 | 16,719 | ||||||
31,455 | ||||||||
Telecommunication Services – 5.9% | ||||||||
AT&T 6 | 594,940 | 15,927 | ||||||
FairPoint Communications 6 | 1,335,635 | 5,316 | ||||||
Verizon Communications 6 | 445,787 | 13,226 | ||||||
Windstream | 871,379 | 6,544 | ||||||
41,013 | ||||||||
Utilities – 4.5% | ||||||||
Duke Energy | 273,976 | 4,488 | ||||||
PNM Resources | 672,213 | 6,554 | ||||||
Westar Energy 6 | 568,065 | 11,072 | ||||||
Xcel Energy 6 | 511,554 | 8,911 | ||||||
31,025 | ||||||||
Total Common Stocks (Cost $625,300) | 672,835 | |||||||
Short-Term Investment – 1.5% | ||||||||
First American Prime Obligations Fund, Class Z Å | ||||||||
(Cost $10,644) | 10,643,722 | 10,644 | ||||||
Investment Purchased with Proceeds from Securities Lending – 34.1% | ||||||||
Mount Vernon Securities Lending Prime Portfolio † (Cost $234,846) | 234,845,523 | 234,846 | ||||||
Total Investments – 133.2% (Cost $870,790) | 918,325 | |||||||
Other Assets and Liabilities, Net – (33.2)% | (229,066 | ) | ||||||
Total Net Assets – 100.0% | $ | 689,259 | ||||||
6 | This security or a portion of this security is out on loan at October 31, 2008. Total loaned securities had a value of $230,352 at October 31, 2008. 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. | |
† | The fund may loan securities representing up to one third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks, or other institutional borrowers of securities. The fund maintains collateral equal to at least 100% of the value of the securities loaned. The adequacy of the collateral is monitored on a daily basis. The cash collateral received by the fund is invested in this affiliated money market fund. See note 2 in Notes to Financial Statements. |
ADR – | American Depository Receipt |
REIT – | Real Estate Investment Trust |
The accompanying notes are an integral part of the financial statements.
66 First American Funds 2008 Annual Report
Table of Contents
Global Infrastructure Fund | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Common Stocks – 95.4% | ||||||||
Australia – 7.6% | ||||||||
Ausnet | 757,174 | $ | 558 | |||||
DUET Group | 120,136 | 192 | ||||||
Macquarie Airports | 119,564 | 170 | ||||||
Macquarie Infrastructure Group | 47,000 | 62 | ||||||
Spark Infrastructure Group | 330,000 | 322 | ||||||
Transurban Group | 88,689 | 318 | ||||||
1,622 | ||||||||
Austria – 0.4% | ||||||||
Oesterreichische Post | 2,849 | 83 | ||||||
Belgium – 1.6% | ||||||||
Elia System Operator | 11,142 | 349 | ||||||
Brazil – 0.7% | ||||||||
Companhia de Transmissao Energia Electrica Paulista = | 5,174 | 98 | ||||||
Santos Brasil Participacoes = | 12,000 | 54 | ||||||
152 | ||||||||
Canada – 10.4% | ||||||||
Boralex, Class A = | 29,947 | 180 | ||||||
Brookfield Asset Management, Class A | 4,681 | 84 | ||||||
Enbridge | 19,271 | 667 | ||||||
TransCanada | 2,000 | 61 | ||||||
TransCanada | 38,282 | 1,160 | ||||||
Westshore Terminals Income Fund | 5,566 | 51 | ||||||
2,203 | ||||||||
China – 0.5% | ||||||||
Dalian Port, Class H | 466,000 | 106 | ||||||
Denmark – 0.4% | ||||||||
AP Moller – Maersk, Class B | 16 | 92 | ||||||
Finland – 0.5% | ||||||||
Fortum Oyj | 4,243 | 104 | ||||||
France – 7.0% | ||||||||
Areva | 15 | 8 | ||||||
Electricite de France | 872 | 52 | ||||||
Eutelsat Communications | 7,836 | 168 | ||||||
GDF Suez – ADR = | 719 | 31 | ||||||
GDF Suez | 6,862 | 305 | ||||||
Rubis | 2,000 | 111 | ||||||
SES | 8,000 | 144 | ||||||
Societe des Autoroutes Paris-Rhin-Rhone | 9,000 | 585 | ||||||
Suez Environnement = | 1,211 | 23 | ||||||
Vinci | 1,500 | 54 | ||||||
1,481 | ||||||||
Germany – 5.0% | ||||||||
E.ON | 9,113 | 349 | ||||||
Eurokai KGaA | 1,258 | 38 | ||||||
Fraport | 8,500 | 271 | ||||||
Hamburger Hafen und Logistik | 4,806 | 161 | ||||||
RWE | 3,000 | 250 | ||||||
1,069 | ||||||||
Great Britain – 5.4% | ||||||||
Centrica | 45,858 | 225 | ||||||
National Grid – ADR | 10,138 | 580 | ||||||
Scottish & Southern Energy | 6,000 | 118 | ||||||
Serco Group | 37,923 | 226 | ||||||
1,149 | ||||||||
Hong Kong – 4.2% | ||||||||
Cheung Kong Infrastructure Holdings | 45,000 | 165 | ||||||
China Water Affairs Group = | 104,000 | 11 | ||||||
CLP Holdings | 21,192 | 143 | ||||||
Guangdong Investment | 948,000 | 290 | ||||||
Hutchison Whampoa | 10,000 | 54 | ||||||
MTR | 77,570 | 172 | ||||||
NWS | 53,000 | 55 | ||||||
890 | ||||||||
Italy – 5.6% | ||||||||
Atlantia | 26,514 | 485 | ||||||
Snam Rete Gas | 77,255 | 391 | ||||||
Terna | 99,492 | 321 | ||||||
1,197 | ||||||||
Japan – 4.1% | ||||||||
East Japan Railway | 74 | 526 | ||||||
Japan Airport Terminal | 1,550 | 19 | ||||||
Mitsubishi Logistics | 242 | 2 | ||||||
Tokyo Electric Power Company | 9,063 | 257 | ||||||
Tokyo Gas Company | 16,000 | 69 | ||||||
873 | ||||||||
Mexico – 1.0% | ||||||||
Grupo Aeroportuario del Sureste – ADR | 6,528 | 211 | ||||||
Netherlands – 1.0% | ||||||||
Koninklijke Vopak | 6,245 | 203 | ||||||
New Zealand – 0.8% | ||||||||
Auckland International Airport | 45,390 | 49 | ||||||
Port of Tauranga | 16,696 | 64 | ||||||
Vector | 50,000 | 60 | ||||||
173 | ||||||||
Norway – 1.0% | ||||||||
Hafslund, Class B | 19,820 | 202 | ||||||
Portugal – 0.6% | ||||||||
Redes Energeticas Nacionais = | 38,814 | 126 | ||||||
Russia – 0.0% | ||||||||
TGK-11 = ¥ | 139,193 | — | ||||||
Singapore – 5.1% | ||||||||
Cityspring Infrastructure | 27,000 | 10 | ||||||
Hyflux | 102,000 | 110 | ||||||
Hyflux Water Trust | 421,000 | 98 | ||||||
Parkway Life – REIT | 110,468 | 56 | ||||||
Singapore Post | 986,835 | 473 | ||||||
SMRT | 323,000 | 340 | ||||||
1,087 | ||||||||
Spain – 6.4% | ||||||||
Abertis Infraestructuras | 28,467 | 489 | ||||||
Cintra Concesiones de Infraestructuras de Transporte | 1,837 | 16 | ||||||
Enagas | 7,706 | 151 | ||||||
Iberdrola | 41,811 | 303 | ||||||
Red Electrica de Espana | 9,019 | 395 | ||||||
1,354 | ||||||||
Switzerland – 2.4% | ||||||||
BKW FMB Energie | 1,537 | 139 | ||||||
Flughafen Zuerich | 1,393 | 371 | ||||||
510 | ||||||||
United Kingdom – 1.3% | ||||||||
United Utilities Group | 24,879 | 281 | ||||||
United States – 22.4% | ||||||||
American Tower, Class A = | 4,301 | 139 | ||||||
CenterPoint Energy | 15,980 | 184 | ||||||
Corrections Corporation of America = | 15,295 | 292 |
First American Funds 2008 Annual Report 67
Table of Contents
Schedule of Investments October 31, 2008, all dollars rounded to thousands (000)
Global Infrastructure Fund (concluded) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Covanta Holding = | 10,650 | $ | 230 | |||||
Digital Realty Trust – REIT | 13,214 | 442 | ||||||
El Paso | 8,899 | 86 | ||||||
Enbridge Energy Management = | 892 | 34 | ||||||
Exelon | 1,896 | 103 | ||||||
FPL Group | 3,073 | 145 | ||||||
Great Lakes Dredge & Dock | 4,147 | 19 | ||||||
ITC Holdings | 8,165 | 331 | ||||||
Kinder Morgan Management = | 3,459 | 173 | ||||||
Northeast Utilities | 27,814 | 627 | ||||||
NSTAR | 17,000 | 562 | ||||||
ONEOK | 1,412 | 45 | ||||||
Quanta Services = | 8,159 | 161 | ||||||
Sempra Energy | 3,668 | 156 | ||||||
Skilled Healthcare Group, Class A = | 9,340 | 115 | ||||||
Southern Union | 750 | 13 | ||||||
Southwest Water | 17,387 | 139 | ||||||
Spectra Energy | 16,602 | 321 | ||||||
WGL Holdings | 2,983 | 96 | ||||||
Williams | 1,717 | 36 | ||||||
Wisconsin Energy | 6,983 | 304 | ||||||
4,753 | ||||||||
Total Common Stocks (Cost $24,926) | 20,270 | |||||||
Short-Term Investment – 3.5% | ||||||||
State Street GA Prime Fund (Cost $732) | 732,135 | 732 | ||||||
Total Investments – 98.9% (Cost $25,658) | 21,002 | |||||||
Other Assets and Liabilities, Net – 1.1% | 241 | |||||||
Total Net Assets – 100.0% | $ | 21,243 | ||||||
l | Non-income producing security. | |
¥ | Security is illiquid. As of October 31, 2008, the value of this investment was $0 or 0.0% of total net assets. See note 2 in Notes to Financial Statements. |
ADR – American Depository Receipt
REIT – Real Estate Investment Trust
At October 31, 2008, sector diversification of the fund was as follows:
% of | ||||||||
Foreign Common Stock | Net Assets | Value | ||||||
Utilities* | 44.3 | % | $ | 9,415 | ||||
Industrials* | 31.2 | 6,620 | ||||||
Energy | 13.0 | 2,763 | ||||||
Financials | 3.6 | 756 | ||||||
Consumer Discretionary | 1.9 | 406 | ||||||
Healthcare | 0.8 | 171 | ||||||
Telecommunication Services | 0.6 | 139 | ||||||
Total Foreign Common Stock | 95.4 | 20,270 | ||||||
Total Short-Term Investments | 3.5 | 732 | ||||||
Total Investments | 98.8 | 21,002 | ||||||
Other Assets and Liabilities, Net | 1.1 | 241 | ||||||
Net Assets | 100 | % | $ | 21,243 | ||||
* | The fund is significantly invested in these sectors and therefore subject to additional risks. See note 7 in Notes to Financial Statements. |
International Fund | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Common Stocks – 84.2% | ||||||||
Australia – 1.7% | ||||||||
BHP Billiton | 543,276 | $ | 10,437 | |||||
Rio Tinto | 28,252 | 1,462 | ||||||
11,899 | ||||||||
Belgium – 0.1% | ||||||||
Dexia | 119,266 | 634 | ||||||
Brazil – 1.5% | ||||||||
Companhia Vale do Rio Doce – ADR | 388,807 | 5,101 | ||||||
Petroleo Brasileiro – ADR | 209,019 | 5,621 | ||||||
10,722 | ||||||||
Finland – 1.4% | ||||||||
Nokia Oyj | 638,155 | 9,775 | ||||||
France – 12.1% | ||||||||
Accor | 129,807 | 5,050 | ||||||
Axa | 435,969 | 8,329 | ||||||
BNP Paribas | 146,839 | 10,602 | ||||||
Compagnie de Saint-Gobain | 97,075 | 3,746 | ||||||
GDF Suez | 105,886 | 4,713 | ||||||
Imerys 6 | 100,427 | 4,572 | ||||||
Lafarge | 89,769 | 5,934 | ||||||
Pernod-Ricard | 108,802 | 7,085 | ||||||
Sanofi-Aventis | 108,404 | 6,868 | ||||||
Suez Environment = | 33,022 | 631 | ||||||
Total | 465,601 | 25,614 | ||||||
83,144 | ||||||||
Germany – 7.3% | ||||||||
Bayer | 155,492 | 8,697 | ||||||
Deutsche Post | 241,536 | 2,645 | ||||||
E.ON | 358,589 | 13,724 | ||||||
Linde | 59,373 | 4,994 | ||||||
RWE | 43,000 | 3,576 | ||||||
SAP | 155,637 | 5,494 | ||||||
Siemens | 129,028 | 7,751 | ||||||
Symrise = | 283,626 | 3,447 | ||||||
50,328 | ||||||||
Great Britain – 12.2% | ||||||||
BG Group | 643,428 | 9,461 | ||||||
British Land | 308,116 | 3,072 | ||||||
Centrica | 868,832 | 4,269 | ||||||
GlaxoSmithKline | 575,477 | 11,063 | ||||||
ICAP | 1,053,738 | 5,251 | ||||||
Morrison Supermarket | 1,585,528 | 6,751 | ||||||
Royal Dutch Shell, Class A | 1 | — | ||||||
Standard Chartered | 572,672 | 9,465 | ||||||
Tesco | 2,290,464 | 12,550 | ||||||
Vodafone | 8,062,866 | 15,511 | ||||||
WPP Group | 1,079,257 | 6,456 | ||||||
83,849 | ||||||||
Greece – 0.4% | ||||||||
Piraeus Bank | 221,585 | 2,811 | ||||||
Hong Kong – 4.5% | ||||||||
China Mobile | 369,500 | 3,253 | ||||||
Esprit Holdings | 898,900 | 5,108 | ||||||
Hang Lung Properties | 1,445,000 | 3,431 | ||||||
HSBC | 1,627,200 | 19,369 | ||||||
31,161 | ||||||||
Israel – 1.1% | ||||||||
Teva Pharmaceutical Industries – ADR | 170,120 | 7,295 | ||||||
The accompanying notes are an integral part of the financial statements.
68 First American Funds 2008 Annual Report
Table of Contents
International Fund (continued) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Italy – 3.7% | ||||||||
Banca Intesa | 2,029,915 | $ | 7,429 | |||||
Eni | 575,104 | 13,727 | ||||||
UniCredit | 1,934,750 | 4,736 | ||||||
25,892 | ||||||||
Japan – 17.8% | ||||||||
Astellas Pharma | 220,000 | 8,861 | ||||||
Canon | 300,400 | 10,512 | ||||||
Daikin Industries | 104,500 | 2,350 | ||||||
East Japan Railway | 684 | 4,867 | ||||||
Honda Motor | 422,700 | 10,511 | ||||||
Japan Tobacco | 2,630 | 9,330 | ||||||
KOMATSU | 484,700 | 5,329 | ||||||
Mitsubishi | 448,500 | 7,518 | ||||||
Mitsubishi UFJ Financial Group | 650,900 | 4,090 | ||||||
Mitsui Fudosan | 271,000 | 4,727 | ||||||
Murata Manufacturing | 190,000 | 6,548 | ||||||
Nidec | 113,700 | 6,115 | ||||||
Nintendo | 20,000 | 6,426 | ||||||
Nippon Oil | 925 | 4 | ||||||
Nomura Holdings | 270,400 | 2,562 | ||||||
Shin-Etsu Chemical | 193,600 | 10,291 | ||||||
SMC | 55,600 | 5,249 | ||||||
Sony | 287,700 | 6,819 | ||||||
Sumitomo | 741,100 | 6,520 | ||||||
Sumitomo Mitsui Financial Group | 1,125 | 4,510 | ||||||
123,139 | ||||||||
Mexico – 0.9% | ||||||||
America Movil, Series L – ADR | 94,193 | 2,914 | ||||||
Fomento Economico Mexicano – ADR | 123,067 | 3,112 | ||||||
6,026 | ||||||||
Netherlands – 2.5% | ||||||||
ING Group | 383,693 | 3,599 | ||||||
Philips Electronics | 233,350 | 4,312 | ||||||
Reed Elsevier | 392,097 | 5,241 | ||||||
Wolters Kluwer | 229,202 | 4,057 | ||||||
17,209 | ||||||||
Norway – 0.3% | ||||||||
Norsk Hydro | 460,493 | 1,924 | ||||||
South Korea – 0.7% | ||||||||
Samsung Electronics | 10,830 | 4,566 | ||||||
Spain – 3.6% | ||||||||
Banco Bilbano Vizcaya Argentaria | 573,966 | 6,662 | ||||||
Industria de Diseno Textil | 181,908 | 6,149 | ||||||
Telefonica | 641,277 | 11,873 | ||||||
24,684 | ||||||||
Sweden – 0.3% | ||||||||
Atlas Copco, Class A = | 276,410 | 2,318 | ||||||
Switzerland – 11.1% | ||||||||
ABB | 619,024 | 8,122 | ||||||
Adecco | 146,780 | 5,106 | ||||||
Holcim | 115,689 | 6,571 | ||||||
Nestle | 504,890 | 19,634 | ||||||
Novartis | 283,405 | 14,385 | ||||||
Roche | 96,420 | 14,745 | ||||||
Zurich Financial Services | 39,522 | 8,019 | ||||||
76,582 | ||||||||
International Fund (continued) | ||||||||
DESCRIPTION | SHARES/PAR | VALUE | ||||||
Taiwan – 1.0% | ||||||||
Taiwan Semiconductor Manufacturing – ADR | 802,793 | $ | 6,631 | |||||
Total Common Stocks (Cost $669,148) | 580,589 | |||||||
Short-Term Investments – 15.7% | ||||||||
Money Market Fund – 13.0% | ||||||||
State Street GA Prime Fund | 89,204,936 | 89,205 | ||||||
U.S. Treasury Obligation – 2.7% | ||||||||
U.S. Treasury Bill | ||||||||
0.740%, 12/18/2008 o | $ | 18,900 | 18,882 | |||||
Total Short-Term Investments (Cost $108,087) | 108,087 | |||||||
Investment Purchased with Proceeds from Securities Lending – 0.0% | ||||||||
State Street Navigator Prime Fund † | ||||||||
(Cost $321) | 320,627 | 321 | ||||||
Total Investments – 99.9% | ||||||||
(Cost $777,556) | 688,997 | |||||||
Other Assets and Liabilities, Net – 0.1% | 354 | |||||||
Total Net Assets – 100.0% | $ | 689,351 | ||||||
6 | This security or a portion of this security is out on loan at October 31, 2008. Total loaned securities had a market value of $294 at October 31, 2008. | |
l | Non-income producing security. | |
o | Security has been deposited as initial margin on open futures contracts. Yield shown is the effective yield as of October 31, 2008. | |
† | The fund may loan securities representing up to one third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks, or other institutional borrowers of securities. The fund maintains collateral equal to at least 100% of the value of the securities loaned. The adequacy of the collateral is monitored on a daily basis. The cash collateral received by the fund is invested as noted in the schedule above. |
ADR – | American Depository Receipt |
Schedule of Open Futures Contracts
Number of | ||||||||||||||
Contracts | Notional | Unrealized | ||||||||||||
Purchased | Contract | Settlement | Appreciation | |||||||||||
Description | (Sold) | Value | Month | (Depreciation) | ||||||||||
Dow Jones Euro STOXX 50 Futures | (621 | ) | $ | (20,516 | ) | December 2008 | $ | (921 | ) | |||||
E-Mini Emerging Markets Index Futures | (1,381 | ) | (40,035 | ) | December 2008 | (5,171 | ) | |||||||
E-Mini MSCI EAFE Futures | 360 | 22,946 | December 2008 | 899 | ||||||||||
Hang Seng Index Futures | 38 | 3,415 | November 2008 | 287 | ||||||||||
Financial Times Index 100 Futures | 519 | 36,571 | December 2008 | (3,610 | ) | |||||||||
Nikkei 225 Futures | 896 | 40,029 | December 2008 | (8,974 | ) | |||||||||
S&P 500 Futures | 96 | 23,215 | December 2008 | 631 | ||||||||||
S&P TSE 60 Futures | 65 | 6,375 | December 2008 | 84 | ||||||||||
$ | (16,775 | ) | ||||||||||||
First American Funds 2008 Annual Report 69
Table of Contents
Schedule of Investments October 31, 2008, all dollars rounded to thousands (000)
International Fund (concluded)
At October 31, 2008, sector diversification of the fund sector was as follows:
% of | ||||||||||||
Net Assets | Value | |||||||||||
Foreign Common Stock | ||||||||||||
Financials | 15.8 | % | $ | 109,297 | ||||||||
Healthcare | 9.2 | 63,217 | ||||||||||
Industrials | 8.9 | 61,522 | ||||||||||
Energy | 8.8 | 60,620 | ||||||||||
Consumer Staples | 8.5 | 58,462 | ||||||||||
Materials | 8.4 | 58,060 | ||||||||||
Consumer Discretionary | 8.3 | 57,149 | ||||||||||
Information Technology | 8.1 | 56,067 | ||||||||||
Telecommunication Services | 4.9 | 33,551 | ||||||||||
Utilities | 3.3 | 22,644 | ||||||||||
Total Foreign Common Stock | 84.2 | 580,589 | ||||||||||
Total Short-Term Investments | 15.7 | 108,087 | ||||||||||
Total Investment Purchased with Proceeds from Securities Lending | 0.0 | 321 | ||||||||||
Total Investments | 99.9 | 688,997 | ||||||||||
Other Assets and Liabilities, Net | 0.1 | 354 | ||||||||||
Net Assets | 100 | % | $ | 689,351 | ||||||||
International Fund (concluded)
International Select Fund | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Common Stocks – 85.2% | ||||||||
Argentina – 0.2% | ||||||||
Tenaris – ADR 6 | 30,300 | $ | 624 | |||||
Australia – 1.6% | ||||||||
BHP Billiton | 71,873 | 1,381 | ||||||
National Australia Bank 6 | 40,930 | 664 | ||||||
Rio Tinto | 21,462 | 1,110 | ||||||
Woodside Petroleum | 30,528 | 863 | ||||||
4,018 | ||||||||
Austria – 0.4% | ||||||||
Erste Bank der Oesterreichischen Sparkassen 6 | 34,974 | 932 | ||||||
Bahrain – 0.0% | ||||||||
Investcorp Bank – ADR = | 12,100 | 130 | ||||||
Brazil – 3.8% | ||||||||
AES Tiete | 54,014 | 334 | ||||||
Banco do Brasil | 110,900 | 756 | ||||||
Banco Itau Holding Financeira – ADR 6 | 88,131 | 975 | ||||||
Cia Vale do Rio Doce | 78,000 | 915 | ||||||
Companhia de Concessoes Rodoviarias | 46,100 | 455 | ||||||
Companhia Energetica De Minas = | 4,197 | 64 | ||||||
Companhia Vale do Rio Doce – ADR 6 | 99,183 | 1,301 | ||||||
Empresa Brasileira de Aeronautica – ADR 6 | 24,000 | 502 | ||||||
Iochpe Maxion = | 23,317 | 137 | ||||||
JHSF Participacoes = | 134,800 | 125 | ||||||
Klabin | 121,400 | 198 | ||||||
Petroleo Brasileiro – ADR | 54,688 | 1,471 | ||||||
Redecard | 90,130 | 998 | ||||||
Souza Cruz | 33,999 | 628 | ||||||
Suzano Papel e Celulose | 52,410 | 319 | ||||||
Tam – ADR 6 | 37,700 | 399 | ||||||
9,577 | ||||||||
Canada – 2.6% | ||||||||
Cameco 6 | 97,259 | 1,578 | ||||||
First Quantum Minerals 6 | 7,700 | 162 | ||||||
Manulife Financial | 85,438 | 1,716 | ||||||
Patheon = | 64,460 | 106 | ||||||
Rogers Communications – Class B = | 74,718 | 2,169 | ||||||
Suncor Energy | 40,175 | 961 | ||||||
6,692 | ||||||||
China – 1.5% | ||||||||
China Communications Construction | 1,288,000 | 912 | ||||||
China Merchants Bank | 577,500 | 885 | ||||||
Focus Media Holdings – ADR 6 = | 92,769 | 1,719 | ||||||
Shougang Concord International Enterprises | 1,790,000 | 148 | ||||||
3,664 | ||||||||
Denmark – 0.5% | ||||||||
Vestas Wind Systems = | 31,973 | 1,310 | ||||||
Egypt – 0.5% | ||||||||
Eastern Tobacco | 8,765 | 339 | ||||||
Mobinil | 20,165 | 395 | ||||||
Orascom Construction Industries = | 9,811 | 328 | ||||||
Orascom Telecom Holdings = | 39,283 | 228 | ||||||
1,290 | ||||||||
Finland – 0.4% | ||||||||
Nokia Oyj | 72,601 | 1,112 | ||||||
France – 7.7% | ||||||||
Alcatel-Lucent – ADR 6 = | 59,288 | 152 | ||||||
BNP Paribas | 7,050 | 509 | ||||||
Carrefour 6 | 64,984 | 2,745 | ||||||
Electricite de France | 23,713 | 1,425 | ||||||
Groupe Danone 6 | 23,220 | 1,293 |
The accompanying notes are an integral part of the financial statements.
70 First American Funds 2008 Annual Report
Table of Contents
International Select Fund (continued) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Iliad 6 | 23,981 | $ | 1,897 | |||||
L’oreal | 17,618 | 1,334 | ||||||
LVMH Moet Hennessy Louis Vuitton 6 | 13,749 | 915 | ||||||
Sanofi-Aventis 6 | 35,960 | 2,278 | ||||||
Thales | 32,700 | 1,312 | ||||||
Total 6 | 48,290 | 2,657 | ||||||
Vivendi Universal 6 | 112,210 | 2,933 | ||||||
19,450 | ||||||||
Germany – 6.0% | ||||||||
Adidas | 23,073 | 790 | ||||||
Allianz | 12,722 | 957 | ||||||
BASF | 13,110 | 440 | ||||||
Deutsche Boerse | 19,999 | 1,572 | ||||||
Deutsche Telekom | 103,880 | 1,542 | ||||||
E.ON | 41,395 | 1,584 | ||||||
Henkel KGAA 6 | 60,891 | 1,741 | ||||||
Metro | 26,780 | 851 | ||||||
SAP 6 | 42,490 | 1,500 | ||||||
SAP – ADR | 30,283 | 1,070 | ||||||
Siemens | 13,061 | 785 | ||||||
Symrise | 116,311 | 1,414 | ||||||
Wacker Chemie | 8,712 | 948 | ||||||
15,194 | ||||||||
Great Britain – 13.0% | ||||||||
ARM Holdings 6 | 705,489 | 1,100 | ||||||
Autonomy = | 121,111 | 1,920 | ||||||
BAE Systems | 129,680 | 729 | ||||||
Benfield Group | 219,248 | 1,204 | ||||||
BG Group | 67,984 | 1,000 | ||||||
BP – ADR 6 | 50,360 | 2,503 | ||||||
British Sky Broadcasting Group | 139,458 | 849 | ||||||
Cadbury | 229,188 | 2,105 | ||||||
Dawnay Day Treveria = | 695,980 | 74 | ||||||
Diageo | 142,330 | 2,172 | ||||||
Experian Group | 393,406 | 2,169 | ||||||
GlaxoSmithKline | 156,090 | 3,001 | ||||||
ICAP | 203,029 | 1,012 | ||||||
Kingfisher | 235,680 | 435 | ||||||
Prudential | 248,997 | 1,251 | ||||||
Scottish & Southern Energy | 64,673 | 1,268 | ||||||
Smith & Nephew | 150,948 | 1,382 | ||||||
Standard Chartered | 98,713 | 1,631 | ||||||
Tesco | 237,896 | 1,303 | ||||||
Vedanta Resources 6 | 88,464 | 1,225 | ||||||
Vodafone Group – ADR 6 | 138,550 | 2,670 | ||||||
WPP Group | 313,240 | 1,874 | ||||||
32,877 | ||||||||
Hong Kong – 2.2% | ||||||||
Agile Property | 3,042,000 | 1,011 | ||||||
Cheung Kong Holdings | 89,490 | 859 | ||||||
Esprit Holdings | 309,400 | 1,758 | ||||||
Foxconn International Holdings = | 2,588,000 | 953 | ||||||
Li & Fung | 444,000 | 891 | ||||||
5,472 | ||||||||
Hungary – 0.1% | ||||||||
OTP Bank 6 = | 10,429 | 173 | ||||||
India – 2.1% | ||||||||
Grasim Industries – ADR = | 9,100 | 189 | ||||||
HDFC Bank – ADR 6 | 15,383 | 1,009 | ||||||
Hero Honda | 20,806 | 319 | ||||||
Infosys Technologies – ADR 6 | 40,164 | 1,177 | ||||||
Oil & Natural Gas | 84,362 | 1,160 | ||||||
Punjab National Bank | 34,329 | 299 | ||||||
Satyam Computer Services – ADR 6 | 56,400 | 887 | ||||||
State Bank Of India – ADR | 4,032 | 187 | ||||||
5,227 | ||||||||
Indonesia – 0.8% | ||||||||
Astra International | 566,500 | 471 | ||||||
Bank Mandiri Persero | 4,327,000 | 621 | ||||||
Telekomunikasi Indonesia – ADR 6 | 43,500 | 872 | ||||||
United Tractors | 468,166 | 136 | ||||||
2,100 | ||||||||
Israel – 1.2% | ||||||||
Bank Hapoalim B.M. | 260,192 | 589 | ||||||
Delek Automotive Systems | 25,300 | 159 | ||||||
Icl-Israel Chem | 74,719 | 754 | ||||||
Teva Pharmaceutical Industries – ADR 6 | 36,217 | 1,553 | ||||||
3,055 | ||||||||
Italy – 1.7% | ||||||||
Alleanza Assicurazioni 6 | 138,770 | 925 | ||||||
Ansaldo STS = | 63,880 | 818 | ||||||
Eni | 48,930 | 1,168 | ||||||
Saipem | 67,027 | 1,260 | ||||||
UniCredit | 4,440 | 11 | ||||||
4,182 | ||||||||
Japan – 14.9% | ||||||||
Bank of Yokohama 6 | 272,321 | 1,321 | ||||||
Daiwa Securities Group 6 | 116,310 | 658 | ||||||
DENSO | 45,700 | 891 | ||||||
FANUC 6 | 21,700 | 1,446 | ||||||
Fuji Television Network | 905 | 1,083 | ||||||
The Joyo Bank 6 | 420,734 | 1,979 | ||||||
KEYENCE | 5,749 | 1,102 | ||||||
Kose | 89,183 | 2,317 | ||||||
Mid REIT = | 210 | 281 | ||||||
Mitsubishi UFJ Financial Group | 113,710 | 715 | ||||||
Mitsui Sumitomo Insurance Group | 83,946 | 2,333 | ||||||
Mitsui-Soko 6 | 187,841 | 827 | ||||||
NGK Insulators | 106,000 | 1,101 | ||||||
Nintendo | 5,500 | 1,767 | ||||||
Nippon Commercial Investment 6 = | 158 | 97 | ||||||
Nipponkoa Insurance | 399,580 | 2,395 | ||||||
Nomura Holdings | 85,078 | 806 | ||||||
Nomura Research Institute | 104,180 | 1,667 | ||||||
ORIX 6 | 14,020 | 1,440 | ||||||
Seven & I Holdings | 54,241 | 1,523 | ||||||
Shin-Etsu Chemical | 30,600 | 1,626 | ||||||
SMC | 22,809 | 2,153 | ||||||
Sugi Pharmacy 6 | 70,899 | 1,705 | ||||||
Sumitomo Bakelite 6 | 312,401 | 1,140 | ||||||
Sumitomo Trust & Banking | 318,878 | 1,477 | ||||||
Suzuki Motor 6 | 70,521 | 1,035 | ||||||
THK 6 | 47,482 | 650 | ||||||
Toyota Motor | 23,900 | 933 | ||||||
United Urban Investment | 91 | 276 | ||||||
Yamada Denki 6 | 15,610 | 850 | ||||||
37,594 | ||||||||
Luxembourg – 0.4% | ||||||||
Millicom International Cellular – ADR 6 | 27,670 | 1,107 | ||||||
Malaysia – 0.4% | ||||||||
British American Tobacco | 37,300 | 432 | ||||||
Plus Expressways | 475,100 | 357 | ||||||
Sime Darby Berhad | 164,861 | 291 | ||||||
1,080 | ||||||||
First American Funds 2008 Annual Report 71
Table of Contents
Schedule of Investments October 31, 2008, all dollars rounded to thousands (000)
International Select Fund (continued) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Mexico – 1.0% | ||||||||
Desarrolladora Homex – ADR 6 = | 17,800 | $ | 414 | |||||
Fomento Economico Mexicano – ADR | 2,140 | 54 | ||||||
Grupo Televisa – ADR 6 | 21,200 | 374 | ||||||
Kimberly-Clark de Mexico | 162,000 | 540 | ||||||
Wal-Mart de Mexico – ADR | 37,279 | 1,018 | ||||||
2,400 | ||||||||
Netherlands – 2.2% | ||||||||
Heineken | 87,504 | 2,952 | ||||||
ING Group | 28,716 | 270 | ||||||
Koninklijke Philips Electronics – ADR | 52,774 | 976 | ||||||
Philips Electronics 6 | 33,840 | 625 | ||||||
Unilever NV CVA 6 | 26,880 | 648 | ||||||
5,471 | ||||||||
Norway – 0.8% | ||||||||
Renewable Energy 6 = | 97,453 | 919 | ||||||
Statoil 6 | 48,717 | 980 | ||||||
1,899 | ||||||||
Pakistan – 0.1% | ||||||||
Pakistan Petroleum | 64,410 | 153 | ||||||
Philippines – 0.5% | ||||||||
Philippine Long Distance Telephone – ADR 6 | 29,300 | 1,198 | ||||||
Portugal – 0.4% | ||||||||
Energias de Portugal | 262,690 | 895 | ||||||
Russia – 2.0% | ||||||||
Eurasia Drilling – GDR = | 20,200 | 111 | ||||||
Evraz Group – ADR | 12,600 | 194 | ||||||
Gazprom – ADR | 72,155 | 1,476 | ||||||
LUKOIL – ADR | 30,750 | 1,180 | ||||||
Mechel – ADR 6 | 35,800 | 328 | ||||||
Mobile Telesystems – ADR = | 25,700 | 1,006 | ||||||
Oriflame Cosmetics 6 | 14,605 | 456 | ||||||
TNK-BP Holdings = | 243,052 | 127 | ||||||
Vsmpo-Avisma | 1,666 | 91 | ||||||
4,969 | ||||||||
Singapore – 0.6% | ||||||||
Cosco – ADR 6 | 49,600 | 129 | ||||||
DBS Group Holdings | 66,650 | 509 | ||||||
Keppel | 316,000 | 985 | ||||||
1,623 | ||||||||
South Africa – 3.0% | ||||||||
Aquarius Platinum | 82,484 | 205 | ||||||
Gold Fields – ADR 6 | 96,622 | 643 | ||||||
Kumba Iron Ore = | 47,516 | 626 | ||||||
Massmart Holdings | 78,270 | 702 | ||||||
MTN Group | 108,505 | 1,218 | ||||||
Murray & Roberts Holdings | 48,237 | 327 | ||||||
Naspers | 20,906 | 348 | ||||||
Nedbank Group | 91,112 | 884 | ||||||
Pretoria Portland Cement | 216,641 | 667 | ||||||
Sanlam = | 359,692 | 590 | ||||||
Steinhoff International Holdings | 286,710 | 418 | ||||||
Truworths International | 291,567 | 991 | ||||||
7,619 | ||||||||
South Korea – 2.9% | ||||||||
AmorePacific | 712 | 313 | ||||||
GS Engineering & Construction | 6,066 | 288 | ||||||
Hite Brewery = | 4,990 | 667 | ||||||
Hite Holdings 6 | 3,154 | 55 | ||||||
KB Financial Group – ADR 6 = | 40,821 | 1,004 | ||||||
Samsung Electronics | 2,500 | 1,054 | ||||||
Samsung Electronics – GDR | 11,587 | 2,401 | ||||||
Samsung Electronics – GDR | 700 | 144 | ||||||
Samsung Electronics – GDR | 600 | 78 | ||||||
Shinhan Financial Group – ADR 6 = | 13,000 | 647 | ||||||
Woongjin Coway | 33,330 | 686 | ||||||
7,337 | ||||||||
Spain – 1.7% | ||||||||
Banco Bilbano Vizcaya Argentaria 6 | 113,790 | 1,321 | ||||||
Banco Santander Central Hispano 6 | 133,115 | 1,440 | ||||||
Telefonica 6 | 89,075 | 1,649 | ||||||
4,410 | ||||||||
Sweden – 0.7% | ||||||||
Ericsson | 275,178 | 1,873 | ||||||
Switzerland – 4.9% | ||||||||
ABB | 75,530 | 991 | ||||||
Credit Suisse Group | 42,480 | 1,588 | ||||||
Nestle | 97,248 | 3,782 | ||||||
Nobel Biocare 6 | 53,970 | 927 | ||||||
Novartis | 55,825 | 2,834 | ||||||
Roche | 14,417 | 2,205 | ||||||
12,327 | ||||||||
Taiwan – 0.7% | ||||||||
Advanced Semiconductor | 575,233 | 245 | ||||||
Advantech | 147,310 | 205 | ||||||
Hon Hai Precision Industry | 202,700 | 489 | ||||||
Novatek Microelectronics, Fractional Shares = ⊡ | 0.67 | — | ||||||
Taiwan Semiconductor Manufacturing | 557,812 | 812 | ||||||
1,751 | ||||||||
Thailand – 0.3% | ||||||||
Bangkok Bank | 157,346 | 318 | ||||||
Banpu Public | 72,500 | 347 | ||||||
665 | ||||||||
Turkey – 0.9% | ||||||||
Ford Otomotiv Sanayi = | 49,670 | 156 | ||||||
Turkcell Iletisim Hizmet – ADR 6 | 108,800 | 1,335 | ||||||
Turkiye Is Bankasi = | 266,145 | 757 | ||||||
2,248 | ||||||||
United States – 0.5% | ||||||||
Dr. Pepper Snapple Group = | 1 | — | ||||||
Philip Morris International 6 | 30,390 | 1,321 | ||||||
1,321 | ||||||||
Total Common Stocks (Cost $324,049) | 215,019 | |||||||
Exchange-Traded Fund – 1.3% | ||||||||
PowerShares MENA Frontier Countries Portfolio (Cost $5,133) | 215,000 | 3,264 | ||||||
Short-Term Investments – 19.0% | ||||||||
Money Market Fund – 15.7% | ||||||||
State Street GA Prime Fund | 39,678,542 | 39,679 | ||||||
U.S. Treasury Obligation – 3.3% | ||||||||
U.S. Treasury Bill o | ||||||||
0.948%, 12/18/2008 | $ | 8,350 | 8,339 | |||||
Total Short-Term Investments (Cost $48,018) | 48,018 | |||||||
The accompanying notes are an integral part of the financial statements.
72 First American Funds 2008 Annual Report
Table of Contents
International Select Fund (concluded) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Investment Purchased with Proceeds from Securities Lending – 21.4% | ||||||||
State Street Navigator Prime Fund † | ||||||||
(Cost $53,892) | 53,891,934 | $ | 53,892 | |||||
Total Investments – 126.9% | ||||||||
(Cost $431,092) | 320,193 | |||||||
Other Assets and Liabilities, Net – (26.9)% | (67,953 | ) | ||||||
Total Net Assets – 100.0% | $ | 252,240 | ||||||
6 | This security or a portion of this security is out on loan at October 31, 2008. Total loaned securities had a market value of $51,467 at October 31, 2008. | |
⊡ | Security is fair-valued and illiquid. As of October 31, 2008, the fair value of this investment was $0 or 0.0% of total assets. See note 2 in Notes to Financial Statements. | |
= | Non-income producing security. | |
o | Security has been deposited as initial margin on open futures contracts. Yield shown is the effective yield as of October 31, 2008. | |
† | The fund may loan securities representing up to one third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks, or other institutional borrowers of securities. The fund maintains collateral equal to at least 100% of the value of the securities loaned. The adequacy of the collateral is monitored on a daily basis. The cash collateral received by the fund is invested as noted in the schedule above. See note 2 in Notes to Financial Statements. |
ADR – | American Depository Receipt |
GDR – | Global Depository Receipt |
Schedule of Open Futures Contracts
Number of | ||||||||||||||
Contracts | Notional | Unrealized | ||||||||||||
Purchased | Contract | Settlement | Appreciation | |||||||||||
Description | (Sold) | Value | Month | (Depreciation) | ||||||||||
Dow Jones STOXX 50 Index Futures | (207 | ) | $ | (6,839 | ) | December 2008 | $ | (306 | ) | |||||
E-Mini MSCI EAFE Index Futures | 133 | 8,477 | December 2008 | (1,680 | ) | |||||||||
E-Mini MSCI Emerging Markets Index Futures | (565 | ) | (16,379 | ) | December 2008 | 2,248 | ||||||||
Hang Seng Index Futures | 50 | 4,494 | November 2008 | 378 | ||||||||||
Nikkei 225 Index Futures | 204 | 9,114 | December 2008 | (1,077 | ) | |||||||||
S&P 500 Index Futures | 70 | 16,928 | December 2008 | (1,054 | ) | |||||||||
S&P TSE 60 Futures | 161 | 15,791 | December 2008 | (3,472 | ) | |||||||||
$ | (4,963 | ) | ||||||||||||
At October 31, 2008, sector diversification of the fund was as follows:
% of | ||||||||
Net Assets | Value | |||||||
Foreign Common Stocks | ||||||||
Financials | 17.1 | % | $ | 43,182 | ||||
Consumer Staples | 13.1 | 32,996 | ||||||
Consumer Discretionary | 9.2 | 23,331 | ||||||
Information Technology | 9.0 | 22,707 | ||||||
Industrials | 8.5 | 21,435 | ||||||
Energy | 7.5 | 18,992 | ||||||
Telecommunication Services | 6.9 | 17,287 | ||||||
Materials | 6.0 | 15,234 | ||||||
Healthcare | 5.7 | 14,285 | ||||||
Utilities | 2.2 | 5,570 | ||||||
Total Foreign Common Stocks | 85.2 | 215,019 | ||||||
Total Exchange-Traded Funds | 1.3 | 3,264 | ||||||
Total Short-Term Investments | 19.0 | 48,018 | ||||||
Total Investment Purchased with Proceeds from Securities Lending | 21.4 | 53,892 | ||||||
Total Investments | 126.9 | 320,193 | ||||||
Other Assets and Liabilities, Net | (26.9 | ) | (67,953 | ) | ||||
Net Assets | 100.0 | % | $ | 252,240 | ||||
Large Cap Growth Opportunities Fund | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Common Stocks – 99.5% | ||||||||
Consumer Discretionary – 10.4% | ||||||||
Advance Auto Parts | 150,772 | $ | 4,704 | |||||
Family Dollar Stores | 128,657 | 3,462 | ||||||
McDonald’s | 235,888 | 13,665 | ||||||
Nike, Class B 6 | 108,301 | 6,242 | ||||||
Omnicom Group 6 | 202,887 | 5,993 | ||||||
Polo Ralph Lauren 6 | 103,917 | 4,902 | ||||||
Target 6 | 122,237 | 4,904 | ||||||
TJX | 241,182 | 6,454 | ||||||
50,326 | ||||||||
Consumer Staples – 14.2% | ||||||||
CVS Caremark | 188,254 | 5,770 | ||||||
H.J. Heinz | 168,869 | 7,400 | ||||||
Kellogg 6 | 141,527 | 7,136 | ||||||
PepsiCo | 196,803 | 11,219 | ||||||
Philip Morris International | 374,163 | 16,265 | ||||||
Procter & Gamble | 206,288 | 13,314 | ||||||
Wal-Mart Stores 6 | 129,654 | 7,236 | ||||||
68,340 | ||||||||
Energy – 7.1% | ||||||||
Cameron International 6 = | 183,237 | 4,445 | ||||||
Exxon Mobil | 67,669 | 5,016 | ||||||
Schlumberger 6 | 57,668 | 2,978 | ||||||
Transocean 6 = | 104,362 | 8,592 | ||||||
Weatherford International 6 = | 300,647 | 5,075 | ||||||
XTO Energy 6 | 223,644 | 8,040 | ||||||
34,146 | ||||||||
Financials – 4.0% | ||||||||
Bank of New York Mellon | 137,235 | 4,474 | ||||||
Black Rock 6 | 18,502 | 2,430 | ||||||
Charles Schwab 6 | 574,257 | 10,980 | ||||||
Goldman Sachs Group 6 | 16,019 | 1,481 | ||||||
19,365 | ||||||||
Healthcare – 16.0% | ||||||||
Abbott Laboratories 6 | 277,970 | 15,330 | ||||||
Baxter International | 196,127 | 11,864 | ||||||
Becton, Dickinson & Company | 32,652 | 2,266 | ||||||
Celgene 6 = | 150,328 | 9,660 | ||||||
Gilead Sciences 6 = | 260,123 | 11,927 | ||||||
Invitrogen 6 = | 131,671 | 3,791 | ||||||
Medco Health Solutions 6 = | 140,471 | 5,331 | ||||||
St. Jude Medical = | 207,197 | 7,880 | ||||||
Thermo Fisher Scientific = | 136,287 | 5,533 | ||||||
Varian Medical Systems = | 79,820 | 3,632 | ||||||
77,214 | ||||||||
Industrials – 12.7% | ||||||||
C.H. Robinson Worldwide 6 | 137,055 | 7,097 | ||||||
CSX | 151,358 | 6,920 | ||||||
Dun & Bradstreet | 96,663 | 7,123 | ||||||
Emerson Electric 6 | 175,069 | 5,730 | ||||||
Fastenal 6 | 140,319 | 5,649 | ||||||
Goodrich | 104,084 | 3,805 | ||||||
Raytheon 6 | 175,477 | 8,969 | ||||||
Republic Services | 286,518 | 6,791 | ||||||
United Technologies 6 | 161,682 | 8,886 | ||||||
60,970 | ||||||||
Information Technology ⊳ – 28.1% | ||||||||
Accenture, Class A | 292,202 | 9,657 | ||||||
Activision Blizzard = | 430,958 | 5,370 | ||||||
Amphenol, Class A | 257,599 | 7,380 |
First American Funds 2008 Annual Report 73
Table of Contents
Schedule of Investments October 31, 2008, all dollars rounded to thousands (000)
Large Cap Growth Opportunities Fund (concluded) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Apple 6 = | 174,508 | $ | 18,775 | |||||
BMC Software 6 = | 234,169 | 6,046 | ||||||
Cisco Systems = | 872,655 | 15,507 | ||||||
Dolby Laboratories, Class A 6 = | 114,824 | 3,625 | ||||||
Hewlett-Packard | 434,988 | 16,652 | ||||||
Intel | 321,766 | 5,148 | ||||||
MasterCard, Class A 6 | 36,117 | 5,339 | ||||||
Microsoft 6 | 350,747 | 7,832 | ||||||
Oracle = | 906,034 | 16,572 | ||||||
QUALCOMM | 292,110 | 11,176 | ||||||
Research In Motion 6 = | 53,396 | 2,693 | ||||||
Visa, Class A | 65,515 | 3,626 | ||||||
135,398 | ||||||||
Materials – 5.2% | ||||||||
Ecolab 6 | 122,566 | 4,567 | ||||||
Monsanto 6 | 131,318 | 11,685 | ||||||
Praxair | 135,535 | 8,830 | ||||||
25,082 | ||||||||
Telecommunication Services – 1.8% | ||||||||
American Tower, Class A = | 262,718 | 8,488 | ||||||
Total Common Stocks (Cost $515,609) | 479,329 | |||||||
Short-Term Investment – 1.1% | ||||||||
First American Prime Obligations Fund, Class Z Å (Cost $5,366) | 5,366,069 | 5,366 | ||||||
Investment Purchased with Proceeds from Securities Lending – 22.9% | ||||||||
Mount Vernon Securities Lending Prime Portfolio ��� (Cost $110,081) | 110,081,027 | 110,081 | ||||||
Total Investments – 123.5% (Cost $631,056) | 594,776 | |||||||
Other Assets and Liabilities, Net – (23.5)% | (113,280 | ) | ||||||
Total Net Assets – 100.0% | $ | 481,496 | ||||||
6 | This security or a portion of this security is out on loan at October 31, 2008. Total loaned securities had a market value of $108,996 at October 31, 2008. See note 2 in Notes to Financial Statements. | |
= | Non-income producing security. | |
⊳ | The fund is significantly invested in this sector and therefore is subject to additional risks. See note 7 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. | |
† | 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 receives 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. |
Large Cap Select Fund | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Common Stocks – 99.4% | ||||||||
Consumer Discretionary – 15.7% | ||||||||
Advance Auto Parts 6 | 73,361 | $ | 2,289 | |||||
Burger King Holdings 6 | 153,745 | 3,056 | ||||||
Comcast, Class A 6 | 294,268 | 4,638 | ||||||
D.R. Horton 6 | 234,488 | 1,731 | ||||||
Guess?6 | 85,474 | 1,861 | ||||||
Home Depot 6 | 307,029 | 7,243 | ||||||
Interpublic Group of Companies 6 = | 356,600 | 1,851 | ||||||
McGraw-Hill 6 | 90,775 | 2,436 | ||||||
Omnicom Group 6 | 72,850 | 2,152 | ||||||
TJX 6 | 143,775 | 3,847 | ||||||
VF 6 | 41,144 | 2,267 | ||||||
33,371 | ||||||||
Consumer Staples – 6.0% | ||||||||
Molson Coors Brewing, Class B | 54,159 | 2,023 | ||||||
Pepsi Bottling Group | 154,666 | 3,576 | ||||||
Procter & Gamble | 62,718 | 4,048 | ||||||
Wal-Mart Stores | 53,426 | 2,982 | ||||||
12,629 | ||||||||
Energy – 11.1% | ||||||||
Cameron International 6 = | 72,637 | 1,762 | ||||||
Chevron | 35,671 | 2,661 | ||||||
Exxon Mobil 6 | 105,179 | 7,796 | ||||||
Plains Exploration & Production = | 64,641 | 1,823 | ||||||
Weatherford International 6 = | 172,795 | 2,917 | ||||||
Williams | 177,229 | 3,716 | ||||||
XTO Energy 6 | 77,815 | 2,797 | ||||||
23,472 | ||||||||
Financials – 16.8% | ||||||||
ACE 6 | 46,122 | 2,646 | ||||||
Bank of America | 208,898 | 5,049 | ||||||
BB&T 6 | 78,273 | 2,806 | ||||||
Hudson City Bancorp 6 | 130,329 | 2,452 | ||||||
Invesco 6 | 186,909 | 2,787 | ||||||
JPMorgan Chase | 139,595 | 5,758 | ||||||
State Street | 77,470 | 3,358 | ||||||
TD Ameritrade = | 194,610 | 2,586 | ||||||
Wells Fargo 6 | 176,114 | 5,997 | ||||||
Zions Bancorporation 6 | 57,360 | 2,186 | ||||||
35,625 | ||||||||
Healthcare – 15.6% | ||||||||
Abbott Laboratories | 89,777 | 4,951 | ||||||
Amgen 6 = | 61,082 | 3,658 | ||||||
Baxter International 6 | 67,179 | 4,064 | ||||||
Celgene 6 = | 66,678 | 4,285 | ||||||
Gilead Sciences 6 = | 73,364 | 3,364 | ||||||
Invitrogen 6 = | 72,256 | 2,080 | ||||||
Medco Health Solutions = | 83,677 | 3,176 | ||||||
Medtronic | 110,095 | 4,440 | ||||||
Thermo Fisher Scientific = | 76,136 | 3,091 | ||||||
33,109 | ||||||||
Industrials – 9.6% | ||||||||
3M 6 | 63,291 | 4,070 | ||||||
Emerson Electric | 92,989 | 3,044 | ||||||
Illinois Tool Works 6 | 108,611 | 3,626 | ||||||
Raytheon 6 | 76,052 | 3,887 | ||||||
Southwest Airlines 6 | 186,543 | 2,197 | ||||||
United Parcel Service, Class B 6 | 67,978 | 3,588 | ||||||
20,412 | ||||||||
The accompanying notes are an integral part of the financial statements.
74 First American Funds 2008 Annual Report
Table of Contents
Large Cap Select Fund (concluded) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Information Technology – 19.0% | ||||||||
Accenture, Class A 6 | 86,918 | $ | 2,873 | |||||
Activision Blizzard = | 170,581 | 2,125 | ||||||
Apple 6 = | 49,994 | 5,379 | ||||||
BMC Software 6 = | 137,202 | 3,542 | ||||||
Cisco Systems = | 299,102 | 5,315 | ||||||
Hewlett-Packard | 219,867 | 8,416 | ||||||
MEMC Electronic Materials = | 115,941 | 2,131 | ||||||
Oracle = | 261,284 | 4,779 | ||||||
QUALCOMM | 30,545 | 1,169 | ||||||
Symantec = | 161,096 | 2,027 | ||||||
Texas Instruments 6 | 127,618 | 2,496 | ||||||
40,252 | ||||||||
Materials – 2.5% | ||||||||
Pactiv 6 = | 224,211 | 5,282 | ||||||
Telecommunication Services – 3.1% | ||||||||
American Tower, Class A = | 100,640 | 3,252 | ||||||
Verizon Communications | 112,150 | 3,327 | ||||||
6,579 | ||||||||
Total Common Stocks | ||||||||
(Cost $253,450) | 210,731 | |||||||
Short-Term Investment – 1.0% | ||||||||
First American Prime Obligations Fund, Class Z Å (Cost $2,063) | 2,063,154 | 2,063 | ||||||
Investment Purchased with Proceeds from Securities Lending – 37.8% | ||||||||
Mount Vernon Securities Lending Prime Portfolio † (Cost $80,273) | 80,273,115 | 80,273 | ||||||
Total Investments – 138.2% (Cost $335,786) | 293,067 | |||||||
Other Assets and Liabilities, Net – (38.2)% | (81,024 | ) | ||||||
Total Net Assets – 100.0% | $ | 212,043 | ||||||
6 | This security or a portion of this security is out on loan at October 31, 2008. Total loaned securities had a market value of $79,185 at October 31, 2008. See note 2 in Notes to Financial Statements. | |
= | Non-income producing security. | |
Å | Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor to this fund. See note 3 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. |
Fund (concluded)
Large Cap Value Fund | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Common Stocks – 98.4% | ||||||||
Consumer Discretionary – 8.2% | ||||||||
Autoliv | 193,990 | $ | 4,143 | |||||
Burger King Holdings | 234,503 | 4,662 | ||||||
Comcast, Class A 6 | 329,048 | 5,186 | ||||||
D.R. Horton | 199,169 | 1,470 | ||||||
Gap 6 | 534,686 | 6,919 | ||||||
Home Depot 6 | 267,714 | 6,315 | ||||||
J.C. Penney 6 | 223,785 | 5,353 | ||||||
Omnicom Group 6 | 142,475 | 4,209 | ||||||
38,257 | ||||||||
Consumer Staples – 9.2% | ||||||||
ConAgra Foods 6 | 291,853 | 5,084 | ||||||
H.J. Heinz | 144,051 | 6,312 | ||||||
Kroger 6 | 245,997 | 6,755 | ||||||
Procter&Gamble 6 | 278,423 | 17,970 | ||||||
Wal-Mart Stores 6 | 127,364 | 7,108 | ||||||
43,229 | ||||||||
Energy – 14.2% | ||||||||
Chevron | 272,091 | 20,298 | ||||||
Devon Energy | 63,926 | 5,169 | ||||||
Exxon Mobil 6 | 335,940 | 24,900 | ||||||
Occidental Petroleum | 117,047 | 6,501 | ||||||
Transocean 6 = | 47,702 | 3,927 | ||||||
Williams | 268,345 | 5,627 | ||||||
66,422 | ||||||||
Financials – 23.6% | ||||||||
ACE 6 | 270,216 | 15,500 | ||||||
AON | 136,551 | 5,776 | ||||||
Assurant | 28,734 | 732 | ||||||
Bank of America | 523,268 | 12,647 | ||||||
BB&T 6 | 220,407 | 7,902 | ||||||
Citigroup 6 | 456,389 | 6,230 | ||||||
Everest Re Group | 28,461 | 2,126 | ||||||
Goldman Sachs Group 6 | 53,381 | 4,938 | ||||||
Invesco | 377,220 | 5,624 | ||||||
JPMorgan Chase | 535,894 | 22,106 | ||||||
M&T Bank 6 | 60,201 | 4,882 | ||||||
PartnerRe | 33,012 | 2,235 | ||||||
Prudential Financial | 34,360 | 1,031 | ||||||
State Street | 62,082 | 2,691 | ||||||
Wells Fargo 6 | 468,061 | 15,937 | ||||||
110,357 | ||||||||
Healthcare – 15.0% | ||||||||
AmerisourceBergen 6 | 174,839 | 5,467 | ||||||
Amgen 6 = | 145,656 | 8,723 | ||||||
Bristol-Myers Squibb | 330,578 | 6,794 | ||||||
Johnson & Johnson 6 | 307,161 | 18,841 | ||||||
Medtronic | 221,151 | 8,919 | ||||||
Pfizer | 599,815 | 10,623 | ||||||
Quest Diagnostics | 128,605 | 6,019 | ||||||
Wyeth | 153,573 | 4,942 | ||||||
70,328 | ||||||||
Industrials – 7.5% | ||||||||
Emerson Electric | 90,675 | 2,968 | ||||||
General Electric | 483,922 | 9,441 | ||||||
Illinois Tool Works | 72,468 | 2,420 | ||||||
Republic Services | 212,380 | 5,033 | ||||||
Southwest Airlines 6 | 426,539 | 5,025 |
First American Funds 2008 Annual Report 75
Table of Contents
Schedule of Investments October 31, 2008, all dollars rounded to thousands (000)
Large Cap Value Fund (concluded) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
W.W. Grainger | 50,257 | $ | 3,949 | |||||
Waste Management 6 | 200,820 | 6,271 | ||||||
35,107 | ||||||||
Information Technology – 6.4% | ||||||||
BMC Software = | 221,669 | 5,724 | ||||||
Cisco Systems = | 397,472 | 7,063 | ||||||
Hewlett-Packard | 254,413 | 9,739 | ||||||
Intel 6 | 212,342 | 3,398 | ||||||
Symantec 6 = | 326,129 | 4,103 | ||||||
30,027 | ||||||||
Materials – 5.4% | ||||||||
Eastman Chemical 6 | 114,751 | 4,635 | ||||||
Freeport-McMoRan Copper & Gold 6 | 52,261 | 1,521 | ||||||
Pactiv = | 447,547 | 10,544 | ||||||
Sonoco Products | 352,160 | 8,867 | ||||||
25,567 | ||||||||
Telecommunication Services – 5.4% | ||||||||
AT&T | 614,193 | 16,442 | ||||||
Verizon Communications | 294,460 | 8,736 | ||||||
25,178 | ||||||||
Utilities – 3.5% | ||||||||
Edison International 6 | 170,970 | 6,085 | ||||||
FirstEnergy 6 | 92,154 | 4,807 | ||||||
PG&E 6 | 149,176 | 5,470 | ||||||
16,362 | ||||||||
Total Common Stocks (Cost $527,958) | 460,834 | |||||||
Short-Term Investment – 1.5% | ||||||||
First American Prime Obligations Fund, Class Z Å (Cost $7,257) | 7,257,376 | 7,257 | ||||||
Investment Purchased with Proceeds from Securities Lending – 26.0% | ||||||||
Mount Vernon Securities Lending Prime Portfolio † (Cost $121,818) | 121,818,059 | 121,818 | ||||||
Total Investments – 125.9% (Cost $657,033) | 589,909 | |||||||
Other Assets and Liabilities, Net – (25.9)% | (121,466 | ) | ||||||
Total Net Assets – 100.0% | $ | 468,443 | ||||||
6 | This security or a portion of this security is out on loan at October 31, 2008. Total loaned securities had a market value of $120,489 at October 31, 2008. See note 2 in Notes to Financial Statements. | |
= | Non-income producing security. | |
Å | Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor to this fund. See note 3 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 receives 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. |
Mid Cap Growth Opportunities Fund | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Common Stocks – 99.3% | ||||||||
Consumer Discretionary – 18.3% | ||||||||
Advance Auto Parts | 528,831 | $ | 16,500 | |||||
Aeropostale = 6 | 471,972 | 11,427 | ||||||
Burger King Holdings | 756,920 | 15,048 | ||||||
DeVry 6 | 346,110 | 19,621 | ||||||
Family Dollar Stores 6 | 754,079 | 20,292 | ||||||
Guess? 6 | 475,952 | 10,361 | ||||||
Kohl’s = 6 | 560,631 | 19,695 | ||||||
Omnicom Group 6 | 300,295 | 8,871 | ||||||
Polo Ralph Lauren 6 | 344,520 | 16,251 | ||||||
TJX 6 | 822,800 | 22,018 | ||||||
WMS Industries = 6 | 177,973 | 4,449 | ||||||
Yum! Brands | 545,425 | 15,823 | ||||||
180,356 | ||||||||
Consumer Staples – 5.0% | ||||||||
Alberto-Culver 6 | 641,385 | 16,503 | ||||||
Avon Products 6 | 318,188 | 7,901 | ||||||
H.J. Heinz 6 | 387,921 | 16,999 | ||||||
Kellogg 6 | 163,552 | 8,246 | ||||||
49,649 | ||||||||
Energy – 9.6% | ||||||||
Cameron International = 6 | 556,874 | 13,510 | ||||||
Nabors Industries = | 633,438 | 9,109 | ||||||
Petrohawk Energy = 6 | 735,434 | 13,936 | ||||||
Pride International = 6 | 318,484 | 5,984 | ||||||
Quicksilver Resources = 6 | 913,726 | 9,567 | ||||||
Smith International 6 | 235,557 | 8,122 | ||||||
Southwestern Energy = | 386,792 | 13,778 | ||||||
Weatherford International = 6 | 598,525 | 10,103 | ||||||
Williams | 496,063 | 10,402 | ||||||
94,511 | ||||||||
Financials – 8.0% | ||||||||
Charles Schwab 6 | 725,660 | 13,875 | ||||||
Invesco | 746,191 | 11,126 | ||||||
Janus Capital Group 6 | 553,235 | 6,495 | ||||||
Northern Trust | 222,935 | 12,553 | ||||||
PartnerRe | 71,885 | 4,866 | ||||||
TCF Financial 6 | 779,262 | 13,824 | ||||||
TD Ameritrade = 6 | 1,185,790 | 15,759 | ||||||
78,498 | ||||||||
Healthcare – 18.0% | ||||||||
Allergan 6 | 221,061 | 8,770 | ||||||
Applied Biosystems | 548,828 | 16,920 | ||||||
DENTSPLY International 6 | 371,648 | 11,291 | ||||||
Express Scripts = 6 | 418,507 | 25,366 | ||||||
Henry Schein = 6 | 207,527 | 9,714 | ||||||
IDEXX Laboratories = 6 | 314,506 | 11,068 | ||||||
Invitrogen = 6 | 597,198 | 17,193 | ||||||
Quest Diagnostics | 294,732 | 13,793 | ||||||
St. Jude Medical = | 717,180 | 27,274 | ||||||
Thermo Fisher Scientific = | 517,072 | 20,993 | ||||||
Varian Medical Systems = | 207,229 | 9,431 | ||||||
Vertex Pharmaceuticals = 6 | 182,131 | 4,774 | ||||||
176,587 | ||||||||
Industrials – 13.2% | ||||||||
C.H. Robinson Worldwide 6 | 243,403 | 12,603 | ||||||
Dun & Bradstreet 6 | 213,919 | 15,764 | ||||||
Fluor 6 | 140,005 | 5,590 | ||||||
Goodrich | 360,190 | 13,169 | ||||||
Kansas City Southern = 6 | 236,475 | 7,300 | ||||||
Knight Transportation 6 | 682,777 | 10,856 | ||||||
Republic Services | 829,243 | 19,653 |
The accompanying notes are an integral part of the financial statements.
76 First American Funds 2008 Annual Report
Table of Contents
Mid Cap Growth Opportunities Fund (concluded) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Roper Industries 6 | 354,804 | $ | 16,090 | |||||
Ryanair Holdings – ADR = 6 | 514,255 | 11,452 | ||||||
SPX | 174,312 | 6,753 | ||||||
W.W. Grainger 6 | 131,354 | 10,321 | ||||||
129,551 | ||||||||
Information Technology – 18.7% | ||||||||
Activision Blizzard = | 1,477,648 | 18,412 | ||||||
Amphenol, Class A | 493,152 | 14,129 | ||||||
ANSYS = | 199,419 | 5,709 | ||||||
Avnet = | 313,725 | 5,252 | ||||||
BMC Software = 6 | 676,331 | 17,463 | ||||||
Broadcom, Class A = 6 | 703,103 | 12,009 | ||||||
CA 6 | 894,846 | 15,928 | ||||||
Dolby Laboratories, Class A = 6 | 388,418 | 12,262 | ||||||
F5 Networks = 6 | 752,572 | 18,679 | ||||||
Fairchild Semiconductor International = 6 | 826,290 | 4,693 | ||||||
Global Payments 6 | 263,269 | 10,665 | ||||||
Intersil, Class A 6 | 715,459 | 9,795 | ||||||
Juniper Networks = 6 | 1,139,240 | 21,349 | ||||||
MasterCard, Class A 6 | 94,852 | 14,021 | ||||||
Mercadolibre = 6 | 220,932 | 3,020 | ||||||
183,386 | ||||||||
Materials – 3.6% | ||||||||
Ecolab 6 | 311,714 | 11,614 | ||||||
Pactiv = 6 | 526,678 | 12,409 | ||||||
Sonoco Products | 461,294 | 11,615 | ||||||
35,638 | ||||||||
Telecommunication Services – 4.9% | ||||||||
American Tower, Class A = | 638,767 | 20,639 | ||||||
NII Holdings = 6 | 612,616 | 15,781 | ||||||
SBA Communications, Class A = 6 | 539,504 | 11,324 | ||||||
47,744 | ||||||||
Total Common Stocks (Cost $1,159,580) | 975,920 | |||||||
Short-Term Investment – 0.2% | ||||||||
First American Prime Obligations Fund, Class Z Å | ||||||||
(Cost $2,497) | 2,497,068 | 2,497 | ||||||
Mount Vernon Securities Lending Prime Portfolio † | ||||||||
(Cost $345,289) | 345,288,889 | 345,289 | ||||||
Total Investments – 134.6% (Cost $1,507,366) | 1,323,706 | |||||||
Other Assets and Liabilities, Net – (34.6)% | (340,597 | ) | ||||||
Total Net Assets – 100.0% | $ | 983,109 | ||||||
= | Non-income producing security | |
6 | This security or a portion of this security is out on loan at October 31, 2008. Total loaned securities had a market value of $341,010 at October 31, 2008. 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. | |
† | The fund may loan securities representing up to one third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks, or other institutional borrowers of securities. The fund maintains collateral equal to at least 100% of the value of the securities loaned. The adequacy of the collateral is monitored on a daily basis. The cash collateral received by the fund is invested in this affiliated money market fund. See note 2 in Notes to Financial Statements. |
ADR – | American Depository Receipt |
Mid Cap Value Fund | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Common Stocks – 96.1% | ||||||||
Consumer Discretionary – 14.4% | ||||||||
Advance Auto Parts | 201,119 | $ | 6,275 | |||||
Autoliv 6 | 294,659 | 6,294 | ||||||
Burger King Holdings | 506,724 | 10,074 | ||||||
D.R. Horton 6 | 611,316 | 4,511 | ||||||
Family Dollar Stores | 276,733 | 7,447 | ||||||
Ford Motor 6 = | 826,997 | 1,811 | ||||||
Gap 6 | 536,611 | 6,944 | ||||||
J.C. Penney 6 | 130,219 | 3,115 | ||||||
Omnicom Group 6 | 186,579 | 5,511 | ||||||
Sherwin-Williams 6 | 93,364 | 5,313 | ||||||
Stanley Works 6 | 176,269 | 5,771 | ||||||
TJX 6 | 321,593 | 8,606 | ||||||
Toll Brothers 6 = | 334,114 | 7,725 | ||||||
VF | 79,756 | 4,395 | ||||||
83,792 | ||||||||
Consumer Staples – 8.3% | ||||||||
ConAgra Foods 6 | 426,064 | 7,422 | ||||||
Corn Products International | 85,646 | 2,083 | ||||||
H.J. Heinz | 233,714 | 10,241 | ||||||
Hershey | 75,920 | 2,827 | ||||||
Kroger 6 | 338,484 | 9,295 | ||||||
Lorillard | 86,262 | 5,681 | ||||||
Pepsi Bottling Group | 451,930 | 10,449 | ||||||
47,998 | ||||||||
Energy – 4.6% | ||||||||
BJ Services 6 | 201,219 | 2,586 | ||||||
El Paso 6 | 647,106 | 6,277 | ||||||
EOG Resources | 63,634 | 5,149 | ||||||
Nabors Industries = | 143,796 | 2,068 | ||||||
Noble Energy 6 | 200,143 | 10,371 | ||||||
26,451 | ||||||||
Financials ⊳ – 30.0% | ||||||||
ACE | 98,469 | 5,648 | ||||||
Ameriprise Financial | 110,406 | 2,385 | ||||||
AON | 340,445 | 14,401 | ||||||
Arch Capital Group 6 = | 170,523 | 11,894 | ||||||
Assurant 6 | 60,311 | 1,537 | ||||||
Astoria Financial 6 | 609,236 | 11,588 | ||||||
Boston Properties – REIT 6 | 104,430 | 7,402 | ||||||
City National 6 | 147,391 | 7,890 | ||||||
Discover Financial Services | 287,151 | 3,518 | ||||||
Essex Property Trust – REIT 6 | 82,932 | 8,069 | ||||||
Everest Re Group | 140,758 | 10,515 | ||||||
Federal Realty Investment Trust – REIT 6 | 120,006 | 7,353 | ||||||
Fifth Third Bancorp 6 | 224,920 | 2,440 | ||||||
Invesco | 348,314 | 5,193 | ||||||
Lazard, Class A 6 | 95,995 | 2,896 | ||||||
M&T Bank 6 | 108,919 | 8,833 | ||||||
Northern Trust | 120,680 | 6,795 | ||||||
PartnerRe | 86,891 | 5,882 | ||||||
Public Storage – REIT 6 | 75,524 | 6,155 | ||||||
StanCorp Financial Group 6 | 204,763 | 6,978 | ||||||
TCF Financial 6 | 446,720 | 7,925 | ||||||
TD Ameritrade = | 579,023 | 7,695 | ||||||
Vornado Realty Trust – REIT 6 | 82,601 | 5,827 | ||||||
W.R. Berkley | 298,594 | 7,844 | ||||||
Zions Bancorporation 6 | 202,012 | 7,699 | ||||||
174,362 | ||||||||
Healthcare – 4.5% | ||||||||
AmerisourceBergen | 351,272 | 10,984 | ||||||
Community Health Systems 6 = | 138,196 | 2,833 |
First American Funds 2008 Annual Report 77
Table of Contents
Schedule of Investments October 31, 2008, all dollars rounded to thousands (000)
Mid Cap Value Fund (continued) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Forest Laboratories = | 202,493 | $ | 4,704 | |||||
Quest Diagnostics | 166,705 | 7,802 | ||||||
26,323 | ||||||||
Industrials – 9.4% | ||||||||
AGCO 6 = | 120,284 | 3,791 | ||||||
Cooper Industries, Class A | 23,662 | 732 | ||||||
Delta Air Lines = | 306,130 | 3,361 | ||||||
Eaton 6 | 63,986 | 2,854 | ||||||
Illinois Tool Works 6 | 131,642 | 4,396 | ||||||
Republic Services | 531,566 | 12,598 | ||||||
Southwest Airlines 6 | 617,520 | 7,274 | ||||||
W.W. Grainger 6 | 105,937 | 8,324 | ||||||
Werner Enterprises 6 | 578,434 | 11,349 | ||||||
54,679 | ||||||||
Information Technology – 6.9% | ||||||||
Amphenol, Class A | 229,133 | 6,565 | ||||||
Avnet = | 302,302 | 5,060 | ||||||
BMC Software = | 295,724 | 7,636 | ||||||
CA | 511,943 | 9,112 | ||||||
Harris 6 | 151,535 | 5,448 | ||||||
National Semiconductor | 480,576 | 6,329 | ||||||
40,150 | ||||||||
Materials – 7.2% | ||||||||
Albemarle | 45,804 | 1,115 | ||||||
Celanese, Series A | 150,316 | 2,084 | ||||||
Eastman Chemical 6 | 124,180 | 5,016 | ||||||
Freeport-McMoRan Copper & Gold 6 | 87,004 | 2,532 | ||||||
Packaging Corporation of America 6 | 208,755 | 3,513 | ||||||
Pactiv = | 635,827 | 14,980 | ||||||
Sonoco Products | 496,155 | 12,493 | ||||||
41,733 | ||||||||
Telecommunication Services – 1.8% | ||||||||
Windstream | 1,386,592 | 10,413 | ||||||
Utilities – 9.0% | ||||||||
American Electric Power 6 | 207,557 | 6,773 | ||||||
PG&E 6 | 310,419 | 11,383 | ||||||
SCANA | 167,845 | 5,524 | ||||||
Sempra Energy | 238,284 | 10,149 | ||||||
Wisconsin Energy 6 | 277,058 | 12,052 | ||||||
Xcel Energy | 347,617 | 6,055 | ||||||
51,936 | ||||||||
Total Common Stocks (Cost $662,033) | 557,837 | |||||||
Short-Term Investment – 2.3% | ||||||||
First American Prime Obligations Fund, Class Z Å | ||||||||
(Cost $13,133) | 13,132,950 | 13,133 | ||||||
Investment Purchased with Proceeds from Securities Lending – 28.6% | ||||||||
Mount Vernon Securities Lending Prime Portfolio † | ||||||||
(Cost $166,065) | 166,064,845 | 166,065 | ||||||
Total Investments – 127.0% | ||||||||
(Cost $841,231) | 737,035 | |||||||
Other Assets and Liabilities, Net – (27.0)% | (156,564 | ) | ||||||
Total Net Assets – 100.0% | $ | 580,471 | ||||||
Mid Cap Value Fund (concluded)
6 | This security or a portion of this security is out on loan at October 31, 2008. Total loaned securities had a market value of $165,710 at October 31, 2008. See note 2 in Notes to Financial Statements. | |
= | Non-income producing security. | |
⊳ | The fund is significantly invested in this sector and therefore is subject to additional risks. See note 7 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. | |
† | The fund may loan securities representing up to one third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks, or other institutional borrowers of securities. The fund maintains collateral equal to at least 100% of the value of the securities loaned. The adequacy of the collateral is monitored on a daily basis. The cash collateral received by the fund is invested in this affiliated money market fund. See note 2 in Notes to Financial Statements. |
ADR – | American Depository Receipt |
REIT – | Real Estate Investment Trust |
The accompanying notes are an integral part of the financial statements.
78 First American Funds 2008 Annual Report
Table of Contents
Mid Cap Value Fund (concluded)
Real Estate Securities Fund | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Real Estate Common Stocks ⊳ – 96.3% | ||||||||
Apartments – 15.1% | ||||||||
American Campus Communities 6 ⊲ | 142,449 | $ | 3,701 | |||||
Avalonbay Communities 6 ⊲ | 241,546 | 17,155 | ||||||
Boardwalk Real Estate ⊲ = ¬ | 106,303 | 2,284 | ||||||
BRE Properties 6 ⊲ | 53,665 | 1,868 | ||||||
Camden Property Trust 6 ⊲ | 285,787 | 9,634 | ||||||
Equity Residential Properties Trust 6 ⊲ | 1,003,785 | 35,062 | ||||||
Essex Property Trust 6 ⊲ | 166,419 | 16,192 | ||||||
Home Properties 6 ⊲ | 91,333 | 3,698 | ||||||
Mid-America Apartment Communities 6 ⊲ | 319,316 | 11,253 | ||||||
Northern Property ⊲ ¬ | 90,267 | 1,346 | ||||||
Post Properties 6 ⊲ | 49,780 | 1,111 | ||||||
UDR 6 ⊲ | 86,014 | 1,700 | ||||||
105,004 | ||||||||
Community Centers – 9.6% | ||||||||
Eurocommercial Properties ⊲ ¬ | 66,153 | 2,191 | ||||||
Federal Realty Investment Trust 6 ⊲ | 281,849 | 17,269 | ||||||
Kimco Realty 6 ⊲ | 1,182,873 | 26,709 | ||||||
Regency Centers 6 ⊲ | 274,921 | 10,849 | ||||||
Saul Centers 6 ⊲ | 108,697 | 3,977 | ||||||
Urstadt Biddle Properties, Class A ⊲ | 16,808 | 275 | ||||||
Weingarten Realty Investors 6 ⊲ | 266,949 | 5,459 | ||||||
66,729 | ||||||||
Diversified – 4.1% | ||||||||
Brixton ⊲ ¬ | 592,055 | 1,593 | ||||||
Forest City Enterprises, Class A | 42,472 | 505 | ||||||
Mission West Properties 6 ⊲ | 163,256 | 1,414 | ||||||
Vornado Realty Trust 6 ⊲ | 350,819 | 24,750 | ||||||
28,262 | ||||||||
Healthcare – 16.4% | ||||||||
Brookdale Senior Living 6 | 126,502 | 1,090 | ||||||
Capital Senior Living = | 777,173 | 3,490 | ||||||
HCP 6 ⊲ | 870,457 | 26,053 | ||||||
Health Care 6 ⊲ | 329,279 | 14,656 | ||||||
Healthcare Realty Trust 6 ⊲ | 191,114 | 4,883 | ||||||
LTC Properties ⊲ | 454,372 | 10,982 | ||||||
Nationwide Health Properties ⊲ | 274,860 | 8,202 | ||||||
OMEGA Healthcare Investors 6 ⊲ | 365,657 | 5,510 | ||||||
Parkway Life ⊲ ¬ | 1,275,740 | 651 | ||||||
Skilled Healthcare Group, Class A 6 = | 227,407 | 2,793 | ||||||
Ventas 6 ⊲ | 1,004,809 | 36,233 | ||||||
114,543 | ||||||||
Hotels – 2.9% | ||||||||
DiamondRock Hospitality ⊲ | 519,972 | 2,694 | ||||||
Hersha Hospitality Trust ⊲ | 121,024 | 510 | ||||||
Host Marriott 6 ⊲ | 1,017,830 | 10,524 | ||||||
LaSalle Hotel Properties 6 ⊲ | 267,557 | 3,767 | ||||||
Marriott International, Class A 6 | 127,473 | 2,660 | ||||||
20,155 | ||||||||
Industrials – 6.9% | ||||||||
AMB Property 6 ⊲ | 70,302 | 1,689 | ||||||
American Tower, Class A = | 99,492 | 3,214 | ||||||
DCT Industrial Trust 6 ⊲ | 702,603 | 3,464 | ||||||
EastGroup Properties 6 ⊲ | 342,205 | 11,457 | ||||||
First Potomac Realty Trust 6 ⊲ | 252,615 | 3,102 | ||||||
Forth Ports ¬ | 21,920 | 347 | ||||||
Mapletree Logistics Trust ⊲ ¬ | 281,083 | 80 | ||||||
Mitsubishi Logistics ¬ | 61,482 | 559 | ||||||
Prologis 6 ⊲ | 773,340 | 10,827 | ||||||
PS Business Parks ⊲ | 294,763 | 13,344 | ||||||
48,083 | ||||||||
Malls – 10.3% | ||||||||
Macerich 6 ⊲ | 84,678 | 2,491 | ||||||
Simon Property Group 6 ⊲ | 866,999 | 58,115 | ||||||
Taubman Centers 6 ⊲ | 334,609 | 11,116 | ||||||
71,722 | ||||||||
Manufactured Homes – 0.2% | ||||||||
Equity Lifestyle Properties 6 ⊲ | 39,948 | 1,677 | ||||||
Net Lease – 2.7% | ||||||||
Entertainment Properties Trust 6 ⊲ | 80,389 | 3,011 | ||||||
National Retail Properties 6 | 466,483 | 8,317 | ||||||
Realty Income 6 ⊲ | 332,658 | 7,691 | ||||||
19,019 | ||||||||
Office – 21.8% | ||||||||
Alexandria Real Estate Equities 6 ⊲ | 104,000 | 7,230 | ||||||
BioMed Realty Trust 6 ⊲ | 426,375 | 5,990 | ||||||
Boston Properties 6 ⊲ | 509,452 | 36,110 | ||||||
Brookfield Asset Management, Class A 6 | 532,722 | 9,605 | ||||||
Brookfield Properties | 264,979 | 2,674 | ||||||
Cogdell Spencer 6 ⊲ | 772,871 | 9,274 | ||||||
Corporate Office Properties Trust 6 ⊲ | 190,420 | 5,920 | ||||||
Digital Realty Trust 6 ⊲ | 483,620 | 16,192 | ||||||
Douglas Emmett 6 ⊲ | 786,160 | 11,871 | ||||||
Duke Realty 6 ⊲ | 379,600 | 5,356 | ||||||
Highwoods Properties 6 ⊲ | 810,594 | 20,119 | ||||||
Kilroy Realty 6 ⊲ | 74,283 | 2,388 | ||||||
Liberty Property Trust 6 ⊲ | 536,387 | 12,793 | ||||||
Mack-Cali Realty 6 ⊲ | 260,923 | 5,928 | ||||||
Parkway Properties ⊲ | 6,422 | 111 | ||||||
151,561 | ||||||||
Real Estate Service Provider – 0.0% | ||||||||
HFF = | 49,192 | 125 | ||||||
Self Storage – 6.3% | ||||||||
Extra Space Storage 6 ⊲ | 149,141 | 1,717 | ||||||
Public Storage 6 ⊲ | 517,634 | 42,187 | ||||||
Sovran Self Storage ⊲ | 3,278 | 106 | ||||||
44,010 | ||||||||
Total Common Stocks | ||||||||
(Cost $781,942) | 670,890 | |||||||
Private Real Estate Company – 0.0% | ||||||||
Newcastle Investment Holdings = ⊡ | ||||||||
(Cost $153) | 35,000 | 159 | ||||||
Short-Term Investment – 2.5% | ||||||||
First American Prime Obligations Fund, Class Z Å | ||||||||
(Cost $17,704) | 17,704,348 | 17,704 | ||||||
Investment Purchased with Proceeds from Securities Lending – 44.0% | ||||||||
Mount Vernon Securities Lending Prime Portfolio † | ||||||||
(Cost $306,836) | 306,835,662 | 306,836 | ||||||
Total Investments – 142.8% | ||||||||
(Cost $1,106,635) | 995,589 | |||||||
Other Assets and Liabilities, Net – (42.8)% | (298,494 | ) | ||||||
Total Net Assets – 100.0% | $ | 697,095 | ||||||
First American Funds 2008 Annual Report 79
Table of Contents
Schedule of Investments October 31, 2008, all dollars rounded to thousands (000)
Real Estate Securities Fund (concluded)
⊳ | The fund is primarily invested in the Real Estate sector and therefore is subject to additional risks. See notes 1 and 7 in Notes to Financial Statements. | |
6 | This security or a portion of this security is out on loan at October 31, 2008. Total loaned securities had a market value of $314,935 at October 31, 2008. See note 2 in Notes to Financial Statements. | |
⊲ | Real Estate Investment Trust. As of October 31, 2008, the market value of these investments was $635,511, or 91.2% of total net assets. | |
= | Non-income producing security. | |
¬ | Foreign denominated security values stated in U.S. dollars. Principal amounts are U.S. dollars unless otherwise noted. | |
⊡ | Security is fair-valued and illiquid. As of October 31, 2008, the fair value of this investment was $159 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. | |
† | 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. Due to significant market movement on October 31, 2008, the value of the securities on loan increased. As a result, additional collateral was received from the borrower on the following business day. The cash collateral received by the fund is invested in this affiliated money market fund. See note 2 in Notes to Financial Statements. |
Real Estate Securities Fund (concluded)
Small Cap Growth Opportunities Fund | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Common Stocks – 98.1% | ||||||||
Consumer Discretionary – 14.8% | ||||||||
Deckers Outdoor 6 = | 24,592 | $ | 2,087 | |||||
Dick’s Sporting Goods 6 = | 119,552 | 1,832 | ||||||
Einstein Noah Restaurant Group 6 = | 133,895 | 1,074 | ||||||
Gymboree 6 = | 44,992 | 1,163 | ||||||
Iconix Brand Group 6 = | 126,493 | 1,377 | ||||||
Skechers U.S.A., Class A = | 81,454 | 1,106 | ||||||
Texas Roadhouse, Class A 6 = | 202,094 | 1,419 | ||||||
Warnaco Group = | 58,762 | 1,752 | ||||||
WMS Industries 6 = | 63,158 | 1,579 | ||||||
Wolverine World Wide 6 | 110,532 | 2,597 | ||||||
15,986 | ||||||||
Consumer Staples – 2.7% | ||||||||
NBTY = | 58,647 | 1,371 | ||||||
Nu Skin Enterprises, Class A 6 | 117,768 | 1,518 | ||||||
2,889 | ||||||||
Energy – 8.0% | ||||||||
Arena Resources 6 = | 47,099 | 1,436 | ||||||
Carrizo Oil & Gas 6 = | 43,213 | 1,011 | ||||||
Comstock Resources 6 = | 19,689 | 973 | ||||||
Concho Resources 6 = | 66,928 | 1,422 | ||||||
Dril-Quip 6 = | 40,094 | 990 | ||||||
Oil States International 6 = | 18,379 | 425 | ||||||
Penn Virginia 6 | 25,579 | 951 | ||||||
Superior Energy Services 6 = | 65,994 | 1,407 | ||||||
8,615 | ||||||||
Financials – 4.6% | ||||||||
American Campus Communities – REIT 6 | 40,660 | 1,057 | ||||||
Boston Private Financial Holdings 6 | 140,177 | 1,239 | ||||||
First Commonwealth Financial | 71,523 | 791 | ||||||
Investment Technology Group 6 = | 92,220 | 1,882 | ||||||
4,969 | ||||||||
Healthcare – 23.1% | ||||||||
Alexion Pharmaceuticals 6 = | 33,700 | 1,373 | ||||||
Alliance Imaging = | 204,962 | 1,670 | ||||||
AMN Healthcare Services = | 78,504 | 706 | ||||||
Array BioPharma 6 = | 235,435 | 1,158 | ||||||
BioMarin Pharmaceutical 6 = | 63,462 | 1,163 | ||||||
Durect 6 = | 219,903 | 904 | ||||||
Eurand 6 = | 130,376 | 1,239 | ||||||
Hologic 6 = | 53,423 | 654 | ||||||
Immucor 6 = | 63,937 | 1,698 | ||||||
Integra LifeSciences 6 = | 25,680 | 964 | ||||||
NuVasive 6 = | 54,806 | 2,581 | ||||||
Onyx Pharmaceuticals = | 41,198 | 1,111 | ||||||
OSI Pharmaceuticals 6 = | 29,858 | 1,133 | ||||||
Pediatrix Medical Group 6 = | 28,882 | 1,116 | ||||||
Regeneron Pharmaceuticals 6 = | 87,635 | 1,691 | ||||||
RTI Biologics 6 = | 240,722 | 734 | ||||||
Skilled Healthcare Group, Class A = | 96,984 | 1,191 | ||||||
TranS1 6 = | 121,309 | 771 | ||||||
United Therapeutics 6 = | 12,585 | 1,098 | ||||||
Wright Medical Group 6 = | 84,365 | 1,956 | ||||||
24,911 | ||||||||
Industrials – 16.2% | ||||||||
Advisory Board 6 = | 56,846 | 1,401 | ||||||
AMETEK | 43,033 | 1,431 | ||||||
BE Aerospace = | 123,303 | 1,587 | ||||||
Curtiss-Wright 6 | 43,257 | 1,596 | ||||||
ESCO Technologies 6 = | 44,272 | 1,527 | ||||||
Forward Air 6 | 68,256 | 1,786 |
The accompanying notes are an integral part of the financial statements.
80 First American Funds 2008 Annual Report
Table of Contents
Small Cap Growth Opportunities Fund (continued) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Kaydon | 50,039 | $ | 1,672 | |||||
Knight Transportation 6 | 105,852 | 1,683 | ||||||
Old Dominion Freight Line 6 = | 40,754 | 1,236 | ||||||
RBC Bearings 6 = | 34,219 | 812 | ||||||
Tennant 6 | 45,504 | 1,142 | ||||||
Watson Wyatt Worldwide, Class A 6 | 37,851 | 1,608 | ||||||
17,481 | ||||||||
Information Technology ⊳ – 27.0% | ||||||||
ADTRAN 6 | 68,758 | 1,045 | ||||||
ATMI = | 98,007 | 1,192 | ||||||
Belden 6 | 85,993 | 1,792 | ||||||
Ciena 6 = | 195,489 | 1,879 | ||||||
Commvault Systems = | 96,583 | 1,034 | ||||||
DealerTrack Holdings 6 = | 126,572 | 1,358 | ||||||
F5 Networks = | 78,814 | 1,956 | ||||||
Forrester Research = | 34,765 | 975 | ||||||
Hittite Microwave = | 41,934 | 1,374 | ||||||
Intersil, Class A 6 | 214,666 | 2,939 | ||||||
Lawson Software 6 = | 273,566 | 1,455 | ||||||
MICROS Systems 6 = | 74,081 | 1,262 | ||||||
Plantronics 6 | 71,367 | 1,031 | ||||||
PMC-Sierra 6 = | 493,815 | 2,311 | ||||||
Polycom 6 = | 120,819 | 2,538 | ||||||
Quest Software 6 = | 168,978 | 2,239 | ||||||
Tellabs = | 396,921 | 1,683 | ||||||
Verigy 6 = | 70,360 | 1,020 | ||||||
VideoPropulsion = ⊡ | 780,460 | — | ||||||
29,083 | ||||||||
Materials – 1.7% | ||||||||
GrafTech International = | 130,158 | 1,056 | ||||||
Terra Industries 6 | 36,899 | 811 | ||||||
1,867 | ||||||||
Total Common Stocks | ||||||||
(Cost $127,986) | 105,801 | |||||||
Warrants – 0.0% | ||||||||
Hollis-Eden Pharmaceuticals, Warrants = ⊡ | 70,545 | — | ||||||
Kuhlman Company, Warrants = ⊡ | 281,680 | — | ||||||
Lantronix, Warrants = ⊡ | 11,236 | — | ||||||
(Cost $434) | — | |||||||
Short-Term Investment – 2.1% | ||||||||
First American Prime Obligations Fund, Class Z Å | ||||||||
(Cost $2,302) | 2,301,956 | 2,302 | ||||||
Investment Purchased with Proceeds from Securities Lending – 44.6% | ||||||||
Mount Vernon Securities Lending Prime Portfolio † | ||||||||
(Cost $48,170) | 48,170,207 | 48,170 | ||||||
Total Investments – 144.8% | ||||||||
(Cost $178,892) | 156,273 | |||||||
Other Assets and Liabilities, Net – (44.8)% | (48,381 | ) | ||||||
Total Net Assets – 100.0% | $ | 107,892 | ||||||
Small Cap Growth Opportunities Fund (concluded)
6 | This security or a portion of this security is out on loan at October 31, 2008. Total loaned securities had a market value of $47,103 at October 31, 2008. See note 2 in Notes to Financial Statements. | |
= | Non-income producing security. | |
⊳ | The fund is significantly invested in this sector and therefore is subject to additional risks. See note 7 in Notes to Financial Statements. | |
⊡ | Security is fair-valued and illiquid. As of October 31, 2008, the fair value of these investments was $0 or 0.0% of total net assets. See note 2 in Notes to Financial Statements. | |
Å | Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor to this fund. See note 3 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. |
REIT – | Real Estate Investment Trust |
First American Funds 2008 Annual Report 81
Table of Contents
Schedule of Investments October 31, 2008, all dollars rounded to thousands (000)
Small Cap Growth Opportunities Fund (concluded)
Small Cap Select Fund | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Common Stocks – 98.5% | ||||||||
Consumer Discretionary – 16.3% | ||||||||
1-800-Flowers.com, Class A = | 1,501,340 | $ | 8,032 | |||||
Amerigon = 6 | 297,781 | 1,429 | ||||||
ATC Technology = 6 | 321,370 | 7,048 | ||||||
Christopher & Banks 6 | 728,970 | 3,805 | ||||||
Coinstar = 6 | 381,045 | 9,141 | ||||||
Cooper Tire & Rubber 6 | 890,447 | 6,794 | ||||||
FGX International Holdings Limited = | 302,341 | 3,326 | ||||||
Fossil = 6 | 223,413 | 4,055 | ||||||
Interface, Class A 6 | 363,983 | 2,566 | ||||||
Jos. A. Bank Clothiers = 6 | 121,314 | 3,090 | ||||||
McCormick & Schmick’s Seafood Restaurants = | 95 | — | ||||||
P.F. Chang’s China Bistro = 6 | 326,711 | 6,685 | ||||||
Scientific Games, Class A = 6 | 292,744 | 5,269 | ||||||
Skechers U.S.A., Class A = 6 | 480,745 | 6,529 | ||||||
Texas Roadhouse, Class A = 6 | 920,094 | 6,459 | ||||||
VistaPrint = 6 | 49,628 | 847 | ||||||
WMS Industries = 6 | 279,111 | 6,978 | ||||||
82,053 | ||||||||
Consumer Staples – 3.9% | ||||||||
Chattem = 6 | 85,092 | 6,439 | ||||||
Hain Celestial Group = 6 | 377,021 | 8,762 | ||||||
Ralcorp Holdings = 6 | 66,388 | 4,493 | ||||||
19,694 | ||||||||
Energy – 5.7% | ||||||||
Arena Resources = 6 | 77,326 | 2,357 | ||||||
Atwood Oceanics = 6 | 108,657 | 2,986 | ||||||
Cal Dive International = 6 | 246,201 | 2,095 | ||||||
Comstock Resources = 6 | 89,025 | 4,400 | ||||||
Edge Petroleum = 6 | 761,792 | 449 | ||||||
Holly | 200,996 | 3,946 | ||||||
Penn Virginia 6 | 74,552 | 2,771 | ||||||
Petroleum Development = 6 | 40,515 | 839 | ||||||
Tesoro 6 | 385,695 | 3,730 | ||||||
TETRA Technologies = | 713,832 | 4,968 | ||||||
28,541 | ||||||||
Financials – 18.4% | ||||||||
Affiliated Managers Group = 6 | 110,219 | 5,112 | ||||||
Astoria Financial 6 | 460,057 | 8,750 | ||||||
Bank of the Ozarks 6 | 295,986 | 8,998 | ||||||
BioMed Realty Trust – REIT 6 | 257,202 | 3,614 | ||||||
Cullen/Frost Bankers 6 | 94,706 | 5,301 | ||||||
Delphi Financial Group, Class A 6 | 426,962 | 6,725 | ||||||
Digital Realty Trust – REIT 6 | 70,993 | 2,377 | ||||||
Dime Community Bancshares 6 | 486,435 | 8,123 | ||||||
HCC Insurance Holdings | 154,457 | 3,407 | ||||||
Independent Bank 6 | 206,516 | 5,941 | ||||||
Kite Realty Group Trust – REIT | 245,761 | 1,494 | ||||||
Knight Capital Group, Class A = 6 | 574,830 | 8,312 | ||||||
LaSalle Hotel Properties – REIT 6 | 200,042 | 2,817 | ||||||
MFA Mortgage Investments – REIT 6 | 1,193,111 | 6,562 | ||||||
Platinum Underwriters Holdings 6 | 266,398 | 8,456 | ||||||
Umpqua Holdings 6 | 189,432 | 3,224 | ||||||
Zions Bancorporation 6 | 94,285 | 3,593 | ||||||
92,806 | ||||||||
Healthcare – 15.4% | ||||||||
Acorda Therapeutics = 6 | 87,294 | 1,781 | ||||||
Alexion Pharmaceuticals = 6 | 60,097 | 2,449 | ||||||
Amedisys = 6 | 65,428 | 3,691 | ||||||
Arena Pharmaceuticals = 6 | 416,423 | 1,533 | ||||||
Array BioPharma = 6 | 485,319 | 2,388 | ||||||
BioMarin Pharmaceutical = 6 | 52,152 | 955 | ||||||
Bio-Reference Laboratories = 6 | 83,759 | 2,060 | ||||||
Dexcom = 6 | 843,017 | 3,811 | ||||||
eResearchTechnology = 6 | 274,501 | 1,773 | ||||||
Exelixis = 6 | 291,848 | 1,004 | ||||||
Hologic = 6 | 83,018 | 1,016 | ||||||
ICU Medical = 6 | 295,296 | 9,458 | ||||||
Immucor = 6 | 277,300 | 7,362 | ||||||
IPC The Hospitalist = | 116,664 | 2,375 | ||||||
Isis Pharmaceuticals = 6 | 119,578 | 1,681 | ||||||
K-V Pharmaceutical, Class A = 6 | 514,704 | 8,750 | ||||||
Magellan Health Services = 6 | 57,443 | 2,122 | ||||||
Masimo = | 83,252 | 2,663 | ||||||
Myriad Genetics = 6 | 39,293 | 2,479 | ||||||
Onyx Pharmaceuticals = | 36,597 | 987 | ||||||
OSI Pharmaceuticals = 6 | 39,658 | 1,505 | ||||||
Pediatrix Medical Group = 6 | 58,846 | 2,274 | ||||||
RTI Biologics = 6 | 430,152 | 1,312 | ||||||
Senomyx = 6 | 494,337 | 1,236 | ||||||
SonoSite = 6 | 177,707 | 3,744 | ||||||
Thoratec = 6 | 126,923 | 3,125 | ||||||
TranS1 = 6 | 383,334 | 2,438 | ||||||
United Therapeutics = 6 | 14,624 | 1,276 | ||||||
77,248 | ||||||||
Industrials – 15.4% | ||||||||
Advisory Board = 6 | 266,334 | 6,565 | ||||||
Ameron International | 55,898 | 2,627 | ||||||
AMETEK 6 | 148,892 | 4,951 | ||||||
BE Aerospace = | 557,860 | 7,180 | ||||||
CBIZ = 6 | 410,047 | 3,321 | ||||||
Con-way | 107,271 | 3,652 | ||||||
EnergySolutions | 262,960 | 1,186 | ||||||
ESCO Technologies = 6 | 286,813 | 9,895 | ||||||
Forward Air 6 | 289,893 | 7,587 | ||||||
IDEX 6 | 211,467 | 4,902 | ||||||
Interline Brands = | 389,306 | 4,142 | ||||||
Kaydon | 34,986 | 1,169 | ||||||
Knight Transportation 6 | 340,761 | 5,418 | ||||||
MasTec = 6 | 788,279 | 6,874 | ||||||
Old Dominion Freight Line = 6 | 84,025 | 2,549 | ||||||
RBC Bearings = | 77,053 | 1,828 | ||||||
Waste Connections = 6 | 111,665 | 3,780 | ||||||
77,626 | ||||||||
Information Technology – 18.4% | ||||||||
ADC Telecommunications = 6 | 1,141,118 | 7,235 | ||||||
Advanced Analogic Technologies = 6 | 2,166,286 | 6,520 | ||||||
Bankrate = 6 | 27,734 | 913 | ||||||
Belden 6 | 156,488 | 3,261 | ||||||
Cognex 6 | 15,732 | 252 | ||||||
Commvault Systems = | 255,578 | 2,735 | ||||||
DealerTrack Holdings = 6 | 523,394 | 5,616 | ||||||
Digital River = 6 | 92,678 | 2,297 | ||||||
Emulex = 6 | 747,223 | 7,099 | ||||||
F5 Networks = 6 | 260,900 | 6,476 | ||||||
Hittite Microwave = 6 | 99,082 | 3,247 | ||||||
Netlogic Microsystems = 6 | 84,211 | 1,778 | ||||||
Omniture = 6 | 410,527 | 4,721 | ||||||
Plexus = 6 | 104,842 | 1,956 | ||||||
Polycom = 6 | 396,631 | 8,333 | ||||||
Power Integrations = | 53,017 | 1,113 | ||||||
Progress Software = 6 | 379,227 | 8,699 | ||||||
Silicon Laboratories = 6 | 200,629 | 5,208 | ||||||
Tessera Technologies = 6 | 428,877 | 7,411 |
The accompanying notes are an integral part of the financial statements.
82 First American Funds 2008 Annual Report
Table of Contents
Small Cap Select Fund (concluded) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
TTM Technologies = 6 | 459,876 | $ | 3,293 | |||||
VASCO Data Security International = | 375,010 | 4,249 | ||||||
92,412 | ||||||||
Materials – 3.2% | ||||||||
Albemarle 6 | 262,040 | 6,381 | ||||||
AptarGroup | 164,953 | 5,001 | ||||||
Terra Industries 6 | 211,612 | 4,653 | ||||||
16,035 | ||||||||
Telecommunication Services – 0.8% | ||||||||
Cogent Communications Group = 6 | 412,760 | 1,973 | ||||||
General Communication, Class A = 6 | 265,211 | 2,037 | ||||||
4,010 | ||||||||
Utilities – 1.0% | ||||||||
NSTAR 6 | 145,355 | 4,804 | ||||||
Total Common Stocks (Cost $640,349) | 495,229 | |||||||
Warrants – 0.0% | ||||||||
Lantronix, Warrants = ⊡ (Cost $0) | 5,143 | — | ||||||
Short-Term Investment – 1.6% | ||||||||
First American Prime Obligations Fund, Class Z Å (Cost $8,081) | 8,081,427 | 8,081 | ||||||
Investment Purchased with Proceeds from Securities Lending – 45.7% | ||||||||
Mount Vernon Securities Lending Prime Portfolio † | ||||||||
(Cost $229,670) | 229,669,555 | 229,670 | ||||||
Total Investments – 145.8% (Cost $878,100) | 732,980 | |||||||
Other Assets and Liabilities, Net – (45.8)% | (230,217 | ) | ||||||
Total Net Assets – 100.0% | $ | 502,763 | ||||||
= | Non-income producing security. | |
6 | This security or a portion of this security is out on loan at October 31, 2008. Total loaned securities had a market value of $224,819 at October 31, 2008. See note 2 in Notes to Financial Statements. | |
⊡ | Security is fair-valued and illiquid. As of October 31, 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 to this fund. See note 3 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. |
REIT – | Real Estate Investment Trust |
Small Cap Value Fund | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Common Stocks – 97.6% | ||||||||
Consumer Discretionary – 12.7% | ||||||||
Aaron Rents 6 | 121,872 | $ | 3,021 | |||||
Ameristar Casinos 6 | 95,476 | 879 | ||||||
CBRL Group 6 | 52,692 | 1,050 | ||||||
Charlotte Russe Holding = | 51,452 | 435 | ||||||
Domino’s Pizza 6 = | 223,200 | 1,328 | ||||||
Ethan Allen Interiors 6 | 109,363 | 1,956 | ||||||
Group 1 Automotive 6 | 101,848 | 1,023 | ||||||
Interface, Class A | 235,160 | 1,658 | ||||||
Jack in the Box = | 114,189 | 2,295 | ||||||
Jos. A. Bank Clothiers 6 = | 69,718 | 1,776 | ||||||
Monro Muffler Brake 6 | 117,370 | 2,527 | ||||||
Skechers U.S.A., Class A = | 153,905 | 2,090 | ||||||
WMS Industries = | 38,744 | 969 | ||||||
Wolverine World Wide 6 | 151,017 | 3,549 | ||||||
24,556 | ||||||||
Consumer Staples – 4.7% | ||||||||
Alberto-Culver | 58,174 | 1,497 | ||||||
Darling International 6 = | 96,447 | 727 | ||||||
Nu Skin Enterprises, Class A 6 | 37,490 | 483 | ||||||
Ralcorp Holdings 6 = | 46,737 | 3,163 | ||||||
Spartan Stores 6 | 118,436 | 3,197 | ||||||
9,067 | ||||||||
Energy – 2.5% | ||||||||
Dril-Quip 6 = | 31,043 | 767 | ||||||
Oil States International 6 = | 61,885 | 1,431 | ||||||
Penn Virginia 6 | 16,244 | 604 | ||||||
PetroQuest Energy = | 73,720 | 734 | ||||||
Swift Energy 6 = | 43,702 | 1,402 | ||||||
4,938 | ||||||||
Financials – 35.3% | ||||||||
Alexandria Real Estate Equities – REIT 6 | 20,093 | 1,397 | ||||||
American Equity Investment Life Holding 6 | 145,824 | 659 | ||||||
Aspen Insurance Holdings | 123,287 | 2,831 | ||||||
Astoria Financial 6 | 144,410 | 2,747 | ||||||
Bank of the Ozarks 6 | 123,745 | 3,762 | ||||||
Cathay General Bancorp 6 | 134,197 | 3,285 | ||||||
Colonial BancGroup 6 | 92,455 | 375 | ||||||
Delphi Financial Group, Class A 6 | 176,147 | 2,774 | ||||||
First Midwest Bancorp | 141,004 | 3,132 | ||||||
FPIC Insurance Group 6 = | 49,724 | 2,226 | ||||||
Highwoods Properties – REIT 6 | 82,243 | 2,041 | ||||||
IBERIABANK 6 | 52,461 | 2,672 | ||||||
Independent Bank 6 | 110,326 | 3,174 | ||||||
Knight Capital Group, Class A 6 = | 191,920 | 2,775 | ||||||
LaSalle Hotel Properties – REIT 6 | 88,771 | 1,250 | ||||||
MFA Mortgage Investments – REIT 6 | 706,554 | 3,886 | ||||||
Mid-America Apartment Communities – REIT 6 | 45,295 | 1,596 | ||||||
National Retail Properties – REIT 6 | 158,426 | 2,825 | ||||||
optionsXpress Holdings 6 | 86,491 | 1,536 | ||||||
Pinnacle Financial Partners 6 = | 108,415 | 3,172 | ||||||
PS Business Parks – REIT | 34,386 | 1,557 | ||||||
Selective Insurance Group 6 | 108,670 | 2,581 | ||||||
Sterling Bancshares 6 | 347,880 | 2,769 | ||||||
Stifel Financial = | 71,791 | 3,134 | ||||||
TCF Financial 6 | 77,645 | 1,377 | ||||||
Texas Capital Bancshares 6 = | 173,306 | 3,094 | ||||||
WSFS Financial 6 | 59,587 | 2,852 | ||||||
Zions Bancorporation 6 | 78,930 | 3,008 | ||||||
68,487 | ||||||||
First American Funds 2008 Annual Report 83
Table of Contents
Schedule of Investments October 31, 2008, all dollars rounded to thousands (000)
Small Cap Value Fund (continued) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Healthcare – 7.5% | ||||||||
CONMED 6 = | 80,663 | $ | 2,113 | |||||
Greatbatch 6 = | 125,170 | 2,723 | ||||||
Healthspring = | 150,509 | 2,486 | ||||||
Merit Medical Systems = | 45,140 | 826 | ||||||
Pediatrix Medical Group 6 = | 39,918 | 1,543 | ||||||
Res-Care = | 162,866 | 2,510 | ||||||
STERIS 6 | 33,295 | 1,133 | ||||||
Varian 6 = | 30,479 | 1,123 | ||||||
14,457 | ||||||||
Industrials – 10.7% | ||||||||
Apogee Enterprises 6 | 68,987 | 680 | ||||||
Brady, Class A 6 | 72,530 | 2,249 | ||||||
Con-way 6 | 68,141 | 2,320 | ||||||
CRA International 6 = | 62,462 | 1,690 | ||||||
Deluxe 6 | 69,434 | 844 | ||||||
EMCOR Group 6 = | 94,513 | 1,680 | ||||||
ESCO Technologies = | 33,489 | 1,155 | ||||||
Heartland Express 6 | 123,507 | 1,895 | ||||||
Nordson 6 | 47,869 | 1,768 | ||||||
Regal-Beloit 6 | 46,725 | 1,521 | ||||||
SkyWest | 100,804 | 1,553 | ||||||
Triumph Group 6 | 38,186 | 1,675 | ||||||
URS = | 57,362 | 1,686 | ||||||
20,716 | ||||||||
Information Technology – 14.1% | ||||||||
Amkor Technology = | 217,132 | 882 | ||||||
CACI International, Class A 6 = | 69,219 | 2,850 | ||||||
Emulex = | 195,618 | 1,858 | ||||||
Epicor Software = | 152,333 | 1,074 | ||||||
Ixia 6 = | 421,772 | 2,809 | ||||||
Macrovision Solutions 6 = | 112,505 | 1,247 | ||||||
Pericom Semiconductor = | 87,062 | 679 | ||||||
Perot Systems, Class A = | 78,967 | 1,136 | ||||||
Plantronics | 114,953 | 1,660 | ||||||
Polycom 6 = | 147,433 | 3,098 | ||||||
Progress Software = | 98,908 | 2,269 | ||||||
TriQuint Semiconductor 6 = | 553,335 | 2,479 | ||||||
TTM Technologies 6 = | 318,320 | 2,279 | ||||||
United Online 6 | 267,075 | 1,976 | ||||||
Verigy 6 = | 70,117 | 1,017 | ||||||
27,313 | ||||||||
Materials – 4.2% | ||||||||
Albemarle | 63,319 | 1,542 | ||||||
AptarGroup | 76,674 | 2,325 | ||||||
Arch Chemicals 6 | 69,884 | 1,982 | ||||||
Commercial Metals 6 | 74,756 | 830 | ||||||
Innophos Holdings 6 | 33,680 | 901 | ||||||
Myers Industries | 49,887 | 527 | ||||||
8,107 | ||||||||
Utilities – 5.9% | ||||||||
Black Hills | 69,332 | 1,751 | ||||||
El Paso Electric 6 = | 121,445 | 2,249 | ||||||
Northwest Natural Gas 6 | 51,522 | 2,621 | ||||||
Portland General Electric 6 | 109,868 | 2,254 | ||||||
Westar Energy 6 | 137,023 | 2,671 | ||||||
11,546 | ||||||||
Total Common Stocks (Cost $235,519) | 189,187 | |||||||
Exchange-Traded Fund – 0.5% | ||||||||
SPDR S&P Biotech (Cost $1,303) | 19,977 | 1,073 | ||||||
Small Cap Value Fund (concluded) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Short-Term Investment – 0.5% | ||||||||
First American Prime Obligations Fund, Class Z Å (Cost $1,043) | 1,043,098 | $ | 1,043 | |||||
Investment Purchased with Proceeds from Securities Lending – 37.6% | ||||||||
Mount Vernon Securities Lending Prime Portfolio † (Cost $72,934) | 72,934,425 | 72,934 | ||||||
Total Investments – 136.2% (Cost $310,799) | 264,237 | |||||||
Other Assets and Liabilities – (36.2)% | (70,285 | ) | ||||||
Total Net Assets – 100.0% | $ | 193,952 | ||||||
6 | This security or a portion of this security is out on loan at October 31, 2008. Total loaned securities had a market value of $72,588 at October 31, 2008. See note 2 in Notes to Financial Statements. | |
= | Non-income producing security. | |
The fund is significantly invested in this sector and therefore is subject to additional risks. See note 7 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. | |
† | The fund may loan securities representing up to one third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks, or other institutional borrowers of securities. The fund maintains collateral equal to at least 100% of the value of the securities loaned. The adequacy of the collateral is monitored on a daily basis. The cash collateral received by the fund is invested in this affiliated money market fund. See note 2 in Notes to Financial Statements. |
REIT – | Real Estate Investment Trust |
The accompanying notes are an integral part of the financial statements.
84 First American Funds 2008 Annual Report
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Fund (concluded)
Small-Mid Cap Core Fund | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Common Stocks – 99.8% | ||||||||
Consumer Discretionary – 15.9% | ||||||||
Advance Auto Parts | 37,022 | $ | 1,155 | |||||
ATC Technology 6 = | 28,605 | 627 | ||||||
Autoliv | 22,512 | 481 | ||||||
Burger King Holdings | 69,290 | 1,378 | ||||||
DeVry | 25,566 | 1,449 | ||||||
Family Dollar Stores | 49,836 | 1,341 | ||||||
Stanley Works 6 | 31,558 | 1,033 | ||||||
WMS Industries 6 = | 44,873 | 1,122 | ||||||
Wolverine World Wide 6 | 32,343 | 760 | ||||||
9,346 | ||||||||
Consumer Staples – 6.5% | ||||||||
Alberto-Culver 6 | 34,757 | 894 | ||||||
Darling International 6 = | 48,285 | 364 | ||||||
Pepsi Bottling Group | 21,819 | 504 | ||||||
Ralcorp Holdings = | 12,952 | 877 | ||||||
Spartan Stores 6 | 43,776 | 1,182 | ||||||
3,821 | ||||||||
Energy – 5.2% | ||||||||
BJ Services 6 | 53,498 | 688 | ||||||
Penn Virginia 6 | 14,226 | 529 | ||||||
PetroQuest Energy = | 47,450 | 472 | ||||||
Quicksilver Resources 6 = | 41,491 | 434 | ||||||
Superior Energy Services 6 = | 22,200 | 473 | ||||||
Swift Energy 6 = | 15,590 | 500 | ||||||
3,096 | ||||||||
Financials – 23.8% | ||||||||
Arch Capital Group = | 20,798 | 1,451 | ||||||
Astoria Financial | 76,827 | 1,461 | ||||||
Bank of the Ozarks 6 | 39,738 | 1,208 | ||||||
BioMed Realty Trust – REIT | 44,080 | 619 | ||||||
First Midwest Bancorp 6 | 33,045 | 734 | ||||||
FPIC Insurance Group 6 = | 19,032 | 852 | ||||||
Knight Capital Group, Class A 6 = | 93,902 | 1,358 | ||||||
LTC Properties – REIT 6 | 28,691 | 693 | ||||||
MFA Mortgage Investments – REIT 6 | 133,081 | 732 | ||||||
Mid-America Apartment Communities – REIT 6 | 19,050 | 671 | ||||||
National Retail Properties – REIT 6 | 38,514 | 687 | ||||||
optionsXpress Holdings | 26,310 | 467 | ||||||
Platinum Underwriters Holdings | 39,252 | 1,246 | ||||||
Sterling Bancshares 6 | 152,822 | 1,217 | ||||||
Zions Bancorporation 6 | 15,705 | 599 | ||||||
13,995 | ||||||||
Healthcare – 12.5% | ||||||||
Applied Biosystems | 23,252 | 717 | ||||||
ICU Medical = | 22,752 | 729 | ||||||
IDEXX Laboratories 6 = | 12,735 | 448 | ||||||
Immucor = | 23,613 | 627 | ||||||
Intuitive Surgical 6 = | 4,957 | 857 | ||||||
Magellan Health Services = | 17,369 | 642 | ||||||
OSI Pharmaceuticals 6 = | 23,395 | 888 | ||||||
Pediatrix Medical Group 6 = | 35,862 | 1,386 | ||||||
SonoSite 6 = | 24,318 | 512 | ||||||
United Therapeutics 6 = | 6,080 | 530 | ||||||
7,336 | ||||||||
Industrials – 10.8% | ||||||||
Cooper Industries, Class A | 19,230 | 595 | ||||||
EMCOR Group = | 29,773 | 529 | ||||||
ESCO Technologies = | 14,829 | 512 | ||||||
Fluor | 11,008 | 439 | ||||||
Forward Air 6 | 41,992 | 1,099 | ||||||
Regal-Beloit | 37,498 | 1,221 | ||||||
SPX | 10,536 | 408 | ||||||
Watson Wyatt Worldwide, Class A 6 | 14,598 | 620 | ||||||
Werner Enterprises 6 | 49,177 | 965 | ||||||
6,388 | ||||||||
Information Technology – 13.5% | ||||||||
ANSYS = | 25,943 | 743 | ||||||
Avnet = | 48,740 | 816 | ||||||
Digital River 6 = | 18,733 | 464 | ||||||
Dolby Laboratories, Class A l | 17,014 | 537 | ||||||
Emulex = | 127,556 | 1,212 | ||||||
F5 Networks 6 = | 41,440 | 1,029 | ||||||
Fairchild Semiconductor International = | 158,135 | 898 | ||||||
Polycom 6 = | 31,100 | 653 | ||||||
Progress Software = | 30,769 | 706 | ||||||
Quest Software 6 = | 65,640 | 870 | ||||||
7,928 | ||||||||
Materials – 7.0% | ||||||||
Eastman Chemical | 10,398 | 420 | ||||||
Innophos Holdings | 23,281 | 623 | ||||||
Pactiv = | 52,527 | 1,237 | ||||||
Sonoco Products | 37,049 | 933 | ||||||
Terra Industries | 40,699 | 895 | ||||||
4,108 | ||||||||
Utilities – 4.6% | ||||||||
NSTAR | 31,306 | 1,035 | ||||||
SCANA | 21,168 | 696 | ||||||
Westar Energy 6 | 50,750 | 989 | ||||||
2,720 | ||||||||
Total Common Stocks (Cost $73,953) | 58,738 | |||||||
Warrants – 0.0% | ||||||||
Lantronix, Warrants ⊡ (Cost $0) | 746 | — | ||||||
Short-Term Investment – 0.6% | ||||||||
First American Prime Obligations Fund, Class Z Å (Cost $374) | 374,197 | 374 | ||||||
Investment Purchased with Proceeds from Securities Lending – 30.5% | ||||||||
Mount Vernon Securities Lending Prime Portfolio † (Cost $17,930) | 17,929,608 | 17,930 | ||||||
Total Investments – 130.9% (Cost $92,257) | 77,042 | |||||||
Other Assets and Liabilities, Net – (30.9)% | (18,205 | ) | ||||||
Total Net Assets – 100.0% | $ | 58,837 | ||||||
6 | This security or a portion of this security is out on loan at October 31, 2008. Total loaned securities had a market value of $17,773 at October 31, 2008. See note 2 in Notes to Financial Statements. | |
= | Non-income producing security. |
First American Funds 2008 Annual Report 85
Table of Contents
Schedule of Investments October 31, 2008, all dollars rounded to thousands (000)
Small-Mid Cap Core Fund (concluded)
⊡ | Security is fair-valued and illiquid. As of October 31, 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 to this fund. See note 3 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. |
REIT – | Real Estate Investment Trust |
The accompanying notes are an integral part of the financial statements.
86 First American Funds 2008 Annual Report
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Table of Contents
Statements ofAssets and Liabilities | October 31, 2008, all dollars and shares are rounded to thousands (000), |
except per share data
Balanced | Equity | Global | International | |||||||||||||||||||||||
Fund | Income Fund | Infrastructure Fund | International Fund | Select Fund | ||||||||||||||||||||||
Unaffiliated investments, at cost | $ | 206,084 | $ | 625,300 | $ | 25,658 | $ | 777,235 | $ | 377,200 | ||||||||||||||||
Affiliated money market fund, at cost | 7,230 | 10,644 | — | — | — | |||||||||||||||||||||
Unaffiliated investment purchased with proceeds from securities lending, at cost (note 2) | — | — | — | 321 | 53,892 | |||||||||||||||||||||
Affiliated investment purchased with proceeds from securities lending, at cost (note 2) | 35,199 | 234,846 | — | — | — | |||||||||||||||||||||
Cash denominated in foreign currencies, at cost | 116 | — | 9 | 12,494 | 6,666 | |||||||||||||||||||||
ASSETS: | ||||||||||||||||||||||||||
Unaffiliated investments, at value* (note 2) | $ | 167,607 | $ | 672,835 | $ | 21,002 | $ | 688,676 | $ | 266,301 | ||||||||||||||||
Affiliated money market fund, at value (note 2) | 7,230 | 10,644 | — | — | — | |||||||||||||||||||||
Unaffiliated investment purchased with proceeds from securities lending, at value (note 2) | — | — | — | 321 | 53,892 | |||||||||||||||||||||
Affiliated investment purchased with proceeds from securities lending, at value (note 2) | 35,199 | 234,846 | — | — | — | |||||||||||||||||||||
Cash denominated in foreign currencies, at value (note 2) | — | — | 9 | — | — | |||||||||||||||||||||
Cash | 936 | — | 501 | 13,366 | 6,393 | |||||||||||||||||||||
Receivable for dividends and interest | 1,290 | 2,774 | 27 | 2,512 | 718 | |||||||||||||||||||||
Receivable for investments sold | 3,107 | 9,128 | 1,165 | 731 | 21,517 | |||||||||||||||||||||
Receivable for capital shares sold | 88 | 103 | 79 | 154 | 4,414 | |||||||||||||||||||||
Receivable for foreign withholding tax reclaim | — | — | 2 | 1 | 110 | |||||||||||||||||||||
Receivable for variation margin (note 2) | — | — | — | 219 | — | |||||||||||||||||||||
Receivable from advisor (note 3) | — | — | 37 | — | — | |||||||||||||||||||||
Prepaid expenses and other assets | 36 | 34 | 47 | 36 | 33 | |||||||||||||||||||||
Total assets | 215,493 | 930,364 | 22,869 | 706,016 | 353,378 | |||||||||||||||||||||
LIABILITIES: | ||||||||||||||||||||||||||
Bank overdraft | — | — | — | — | — | |||||||||||||||||||||
Cash denominated in foreign currencies, at value (note 2) | 110 | — | — | 12,282 | 6,579 | |||||||||||||||||||||
Payable for investments purchased | 2,738 | 4,762 | 1,542 | 2,643 | 39,328 | |||||||||||||||||||||
Payable upon return of securities loaned (note 2) | 35,199 | 234,846 | — | 321 | 53,892 | |||||||||||||||||||||
Payable for capital shares redeemed | 147 | 894 | 5 | 659 | 657 | |||||||||||||||||||||
Payable for swap agreements (note 2) | 1,687 | — | — | — | — | |||||||||||||||||||||
Payable for variation margin (note 2) | 40 | — | — | — | 320 | |||||||||||||||||||||
Payable to affiliates (note 3) | 135 | 550 | 26 | 631 | 234 | |||||||||||||||||||||
Payable to custodian (note 3) | — | — | 34 | 104 | 127 | |||||||||||||||||||||
Payable for distribution and shareholder servicing fees | 19 | 34 | 1 | 11 | 1 | |||||||||||||||||||||
Accrued expenses and other liabilities | 13 | 19 | 18 | 14 | — | |||||||||||||||||||||
Total liabilities | 40,088 | 241,105 | 1,626 | 16,665 | 101,138 | |||||||||||||||||||||
Net assets | $ | 175,405 | $ | 689,259 | $ | 21,243 | $ | 689,351 | $ | 252,240 | ||||||||||||||||
COMPOSITION OF NET ASSETS: | ||||||||||||||||||||||||||
Portfolio capital | $ | 235,668 | $ | 652,576 | $ | 29,999 | $ | 771,140 | $ | 392,588 | ||||||||||||||||
Undistributed (distributions in excess of) net investment income | 1,153 | 2,097 | 210 | 7,434 | 5,358 | |||||||||||||||||||||
Accumulated net realized gain (loss) on investments, futures contracts, foreign currency transactions, and swap agreements | (20,943 | ) | (12,949 | ) | (4,309 | ) | 15,881 | (30,042 | ) | |||||||||||||||||
Net unrealized appreciation or depreciation of: | ||||||||||||||||||||||||||
Investments | (38,477 | ) | 47,535 | (4,656 | ) | (88,559 | ) | (110,899 | ) | |||||||||||||||||
Futures contracts | (903 | ) | — | — | (16,775 | ) | (4,963 | ) | ||||||||||||||||||
Foreign currency, and translation of other assets and liabilities denominated in foreign currency (note 2) | — | — | (1 | ) | 230 | 198 | ||||||||||||||||||||
Swap agreements | (1,093 | ) | — | — | — | — | ||||||||||||||||||||
Net assets | $ | 175,405 | $ | 689,259 | $ | 21,243 | $ | 689,351 | $ | 252,240 | ||||||||||||||||
* Including securities loaned, at value | $ | 34,439 | $ | 230,352 | $ | — | $ | 294 | $ | 51,467 | ||||||||||||||||
Class A: | ||||||||||||||||||||||||||
Net assets | $ | 61,222 | $ | 100,824 | $ | 4,022 | $ | 25,342 | $ | 1,904 | ||||||||||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 8,048 | 9,989 | 626 | 2,918 | 291 | |||||||||||||||||||||
Net asset value and redemption price per share | $ | 7.61 | $ | 10.09 | $ | 6.43 | $ | 8.68 | $ | 6.53 | ||||||||||||||||
Maximum offering price per share1 | $ | 8.05 | $ | 10.68 | $ | 6.80 | $ | 9.19 | $ | 6.91 | ||||||||||||||||
Class B2,3: | ||||||||||||||||||||||||||
Net assets | $ | 4,422 | $ | 9,113 | — | $ | 2,499 | $ | 257 | |||||||||||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 586 | 915 | — | 316 | 40 | |||||||||||||||||||||
Net asset value, offering price, and redemption price per share | $ | 7.54 | $ | 9.96 | — | $ | 7.92 | $ | 6.46 | |||||||||||||||||
Class C2,3: | ||||||||||||||||||||||||||
Net assets | $ | 1,612 | $ | 4,625 | — | $ | 3,232 | $ | 226 | |||||||||||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 212 | 464 | — | 392 | 35 | |||||||||||||||||||||
Net asset value, offering price and redemption price per share | $ | 7.59 | $ | 9.98 | — | $ | 8.25 | $ | 6.46 | |||||||||||||||||
Class R2,4: | ||||||||||||||||||||||||||
Net assets | $ | 342 | $ | 535 | — | $ | 2 | $ | 48 | |||||||||||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 45 | 53 | — | — | ** | 7 | ||||||||||||||||||||
Net asset value, offering price, and redemption price per share | $ | 7.67 | $ | 10.08 | — | $ | 8.67 | $ | 6.52 | |||||||||||||||||
Class Y: | ||||||||||||||||||||||||||
Net assets | $ | 107,807 | $ | 574,162 | $ | 17,221 | $ | 658,276 | $ | 249,805 | ||||||||||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 14,125 | 56,401 | 2,676 | 74,689 | 38,129 | |||||||||||||||||||||
Net asset value, offering price, and redemption price per share | $ | 7.63 | $ | 10.18 | $ | 6.43 | $ | 8.81 | $ | 6.55 | ||||||||||||||||
1 | The offering price is calculated by dividing the net asset value by 1 minus the maximum sales charge of 5.50%. |
2 | Class B, Class C, and Class R were not offered by Global Infrastructure Fund during the period. The fund began offering Class C and Class R on November 3, 2008. | |
3 | Class B and Class C have a contingent deferred sales charge. For a description of this sales charge, see notes 1 and 3 in Notes to Financial Statements. | |
4 | Class R is not offered by Small-Mid Cap Core Fund. |
** | Due to the presentation of the Financial Statements in thousands, the number rounds to zero. |
The accompanying notes are an integral part of the financial statements.
88 First American Funds 2008 Annual Report
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Large Cap Growth | Large Cap | Large Cap | Mid Cap Growth | Mid Cap | Real Estate | Small Cap Growth | Small Cap | Small Cap | Small-Mid Cap | ||||||||||||||||||||||||||||||||||||||||||
Opportunities Fund | Select Fund | Value Fund | Opportunities Fund | Value Fund | Securities Fund | Opportunities Fund | Select Fund | Value Fund | Core Fund | ||||||||||||||||||||||||||||||||||||||||||
$ | 515,609 | $ | 253,450 | $ | 527,958 | $ | 1,159,580 | $ | 662,033 | $ | 782,095 | $ | 128,420 | $ | 640,349 | $ | 236,822 | $ | 73,953 | ||||||||||||||||||||||||||||||||
5,366 | 2,063 | 7,257 | 2,497 | 13,133 | 17,704 | 2,302 | 8,081 | 1,043 | 374 | ||||||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
110,081 | 80,273 | 121,818 | 345,289 | 166,065 | 306,836 | 48,170 | 229,670 | 72,934 | 17,930 | ||||||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
$ | 479,329 | $ | 210,731 | $ | 460,834 | $ | 975,920 | $ | 557,837 | $ | 671,049 | $ | 105,801 | $ | 495,229 | $ | 190,260 | $ | 58,738 | ||||||||||||||||||||||||||||||||
5,366 | 2,063 | 7,257 | 2,497 | 13,133 | 17,704 | 2,302 | 8,081 | 1,043 | 374 | ||||||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
110,081 | 80,273 | 121,818 | 345,289 | 166,065 | 306,836 | 48,170 | 229,670 | 72,934 | 17,930 | ||||||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
— | 1,223 | — | — | 9 | 522 | — | — | 1 | — | ||||||||||||||||||||||||||||||||||||||||||
568 | 175 | 1,015 | 559 | 503 | 726 | 65 | 381 | 250 | 41 | ||||||||||||||||||||||||||||||||||||||||||
3,177 | 4,733 | 3,021 | 16,985 | 29,256 | 10,952 | 5,910 | 14,079 | 3,894 | 1,869 | ||||||||||||||||||||||||||||||||||||||||||
379 | 121 | 159 | 631 | 532 | 6,431 | 42 | 684 | 46 | 16 | ||||||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
28 | 27 | 37 | 41 | 52 | 49 | 36 | 42 | 32 | 26 | ||||||||||||||||||||||||||||||||||||||||||
598,928 | 299,346 | 594,141 | 1,341,922 | 767,387 | 1,014,269 | 162,326 | 748,166 | 268,460 | 78,994 | ||||||||||||||||||||||||||||||||||||||||||
1,098 | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
4,653 | 6,216 | 3,097 | 11,015 | 19,464 | 8,350 | 6,097 | 13,981 | 1,265 | 1,917 | ||||||||||||||||||||||||||||||||||||||||||
110,081 | 80,273 | 121,818 | 345,289 | 166,065 | 306,836 | 48,170 | 229,670 | 72,934 | 17,930 | ||||||||||||||||||||||||||||||||||||||||||
1,154 | 610 | 364 | 1,595 | 807 | 1,322 | 59 | 1,208 | 102 | 234 | ||||||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
417 | 188 | 386 | 835 | 516 | 597 | 90 | 465 | 183 | 60 | ||||||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
21 | 1 | 18 | 71 | 52 | 53 | 9 | 65 | 12 | 8 | ||||||||||||||||||||||||||||||||||||||||||
8 | 15 | 15 | 8 | 12 | 16 | 9 | 14 | 12 | 8 | ||||||||||||||||||||||||||||||||||||||||||
117,432 | 87,303 | 125,698 | 358,813 | 186,916 | 317,174 | 54,434 | 245,403 | 74,508 | 20,157 | ||||||||||||||||||||||||||||||||||||||||||
$ | 481,496 | $ | 212,043 | $ | 468,443 | $ | 983,109 | $ | 580,471 | $ | 697,095 | $ | 107,892 | $ | 502,763 | $ | 193,952 | $ | 58,837 | ||||||||||||||||||||||||||||||||
$ | 616,764 | $ | 324,380 | $ | 586,436 | $ | 1,329,413 | $ | 790,346 | $ | 941,355 | $ | 174,984 | $ | 763,479 | $ | 265,802 | $ | 522,500 | ||||||||||||||||||||||||||||||||
1,882 | 727 | 3,618 | (11 | ) | 1,332 | (8 | ) | (7 | ) | (9 | ) | 1,164 | (6 | ) | |||||||||||||||||||||||||||||||||||||
(100,870 | ) | (70,345 | ) | (54,487 | ) | (162,633 | ) | (107,011 | ) | (133,206 | ) | (44,466 | ) | (115,587 | ) | (26,452 | ) | (448,442 | ) | ||||||||||||||||||||||||||||||||
(36,280 | ) | (42,719 | ) | (67,124 | ) | (183,660 | ) | (104,196 | ) | (111,046 | ) | (22,619 | ) | (145,120 | ) | (46,562 | ) | (15,215 | ) | ||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
$ | 481,496 | $ | 212,043 | $ | 468,443 | $ | 983,109 | $ | 580,471 | $ | 697,095 | $ | 107,892 | $ | 502,763 | $ | 193,952 | $ | 58,837 | ||||||||||||||||||||||||||||||||
$ | 108,996 | $ | 79,185 | $ | 120,489 | $ | 341,010 | $ | 165,710 | $ | 314,935 | $ | 47,103 | $ | 224,819 | $ | 72,588 | $ | 17,773 | ||||||||||||||||||||||||||||||||
$ | 53,430 | $ | 3,608 | $ | 60,870 | $ | 209,052 | $ | 124,275 | $ | 133,162 | $ | 29,022 | $ | 166,698 | $ | 28,344 | $ | 12,848 | ||||||||||||||||||||||||||||||||
2,484 | 409 | 4,725 | 8,753 | 7,705 | 10,512 | 2,427 | 20,163 | 3,491 | 1,835 | ||||||||||||||||||||||||||||||||||||||||||
$ | 21.52 | $ | 8.83 | $ | 12.88 | $ | 23.88 | $ | 16.13 | $ | 12.67 | $ | 11.96 | $ | 8.27 | $ | 8.12 | $ | 7.00 | ||||||||||||||||||||||||||||||||
$ | 22.77 | $ | 9.34 | $ | 13.63 | $ | 25.27 | $ | 17.07 | $ | 13.41 | $ | 12.66 | $ | 8.75 | $ | 8.59 | $ | 7.41 | ||||||||||||||||||||||||||||||||
$ | 5,907 | $ | 331 | $ | 3,750 | $ | 7,241 | $ | 4,133 | $ | 3,276 | $ | 1,978 | $ | 6,249 | $ | 2,964 | $ | 2,512 | ||||||||||||||||||||||||||||||||
296 | 39 | 303 | 341 | 271 | 264 | 186 | 941 | 420 | 418 | ||||||||||||||||||||||||||||||||||||||||||
$ | 19.93 | $ | 8.58 | $ | 12.39 | $ | 21.22 | $ | 15.22 | $ | 12.39 | $ | 10.62 | $ | 6.64 | $ | 7.05 | $ | 6.01 | ||||||||||||||||||||||||||||||||
$ | 4,368 | $ | 180 | $ | 2,643 | $ | 13,011 | $ | 13,154 | $ | 11,458 | $ | 1,104 | $ | 17,062 | $ | 2,373 | $ | 3,068 | ||||||||||||||||||||||||||||||||
214 | 21 | 210 | 584 | 844 | 921 | 99 | 2,237 | 329 | 468 | ||||||||||||||||||||||||||||||||||||||||||
$ | 20.38 | $ | 8.56 | $ | 12.59 | $ | 22.26 | $ | 15.58 | $ | 12.44 | $ | 11.13 | $ | 7.63 | $ | 7.22 | $ | 6.56 | ||||||||||||||||||||||||||||||||
$ | 454 | $ | 20 | $ | 174 | $ | 21,246 | $ | 23,423 | $ | 22,813 | $ | 433 | $ | 23,069 | $ | 2,159 | — | |||||||||||||||||||||||||||||||||
21 | 2 | 13 | 902 | 1,461 | 1,783 | 37 | 2,840 | 270 | — | ||||||||||||||||||||||||||||||||||||||||||
$ | 21.26 | $ | 8.78 | $ | 12.85 | $ | 23.56 | $ | 16.04 | $ | 12.79 | $ | 11.83 | $ | 8.12 | $ | 8.00 | — | |||||||||||||||||||||||||||||||||
$ | 417,337 | $ | 207,904 | $ | 401,006 | $ | 732,559 | $ | 415,486 | $ | 526,386 | $ | 75,355 | $ | 289,685 | $ | 158,112 | $ | 40,409 | ||||||||||||||||||||||||||||||||
18,711 | 23,450 | 30,965 | 28,651 | 25,588 | 41,152 | 5,881 | 32,404 | 18,915 | 5,526 | ||||||||||||||||||||||||||||||||||||||||||
$ | 22.31 | $ | 8.87 | $ | 12.95 | $ | 25.57 | $ | 16.24 | $ | 12.79 | $ | 12.81 | $ | 8.94 | $ | 8.36 | $ | 7.31 | ||||||||||||||||||||||||||||||||
First American Funds 2008 Annual Report 89
Table of Contents
Statements ofOperations | For the year ended October 31, 2008, all dollars are rounded to thousands (000) |
Large Cap | |||||||||||||||||||||||||||||||
Global | Growth | ||||||||||||||||||||||||||||||
Balanced | Equity | Infrastructure | International | International | Opportunities | ||||||||||||||||||||||||||
Fund | Income Fund | Fund3 | Fund | Select Fund | Fund | ||||||||||||||||||||||||||
INVESTMENT INCOME: | |||||||||||||||||||||||||||||||
Interest from unaffiliated investments | $ | 8,229 | $ | 6 | $ | 7 | $ | 718 | $ | 1,172 | $ | — | |||||||||||||||||||
Dividends from unaffiliated investments | 2,364 | 34,285 | 325 | 44,530 | 8,432 | 7,775 | |||||||||||||||||||||||||
Dividends from affiliated money market fund | 158 | 535 | — | — | — | 314 | |||||||||||||||||||||||||
Less: Foreign taxes withheld | (7 | ) | (4 | ) | (23 | ) | (4,060 | ) | (676 | ) | (34 | ) | |||||||||||||||||||
Securities lending income | 307 | 1,021 | — | 2,312 | 351 | 888 | |||||||||||||||||||||||||
Total investment income | 11,051 | 35,843 | 309 | 43,500 | 9,279 | 8,943 | |||||||||||||||||||||||||
EXPENSES (note 3): | |||||||||||||||||||||||||||||||
Investment advisory fees | 1,711 | 6,430 | 89 | 12,681 | 3,133 | 4,594 | |||||||||||||||||||||||||
Administration fees | 630 | 2,186 | 35 | 2,843 | 728 | 1,566 | |||||||||||||||||||||||||
Transfer agent fees | 216 | 286 | 63 | 192 | 124 | 315 | |||||||||||||||||||||||||
Custodian fees | 17 | 50 | 84 | 386 | 390 | 36 | |||||||||||||||||||||||||
Legal fees | 15 | 14 | 13 | 14 | 15 | 14 | |||||||||||||||||||||||||
Audit fees | 33 | 26 | 30 | 26 | 26 | 27 | |||||||||||||||||||||||||
Registration fees | 52 | 52 | 19 | 52 | 52 | 52 | |||||||||||||||||||||||||
Postage & printing fees | 21 | 70 | 13 | 92 | 25 | 46 | |||||||||||||||||||||||||
Directors’ fees | 28 | 28 | 23 | 28 | 28 | 29 | |||||||||||||||||||||||||
Other expenses | 20 | 21 | 21 | 34 | 26 | 20 | |||||||||||||||||||||||||
Distribution and shareholder servicing fees: | |||||||||||||||||||||||||||||||
Class A | 217 | 362 | 2 | 111 | 8 | 198 | |||||||||||||||||||||||||
Class B1 | 66 | 134 | — | 49 | 4 | 92 | |||||||||||||||||||||||||
Class C1 | 24 | 72 | — | 55 | 4 | 69 | |||||||||||||||||||||||||
Class R1,2 | 1 | 4 | — | — | — | 3 | |||||||||||||||||||||||||
Total expenses | 3,051 | 9,735 | 392 | 16,563 | 4,563 | 7,061 | |||||||||||||||||||||||||
Less: Fee waivers (note 3) | (508 | ) | (14 | ) | (291 | ) | (544 | ) | (646 | ) | (8 | ) | |||||||||||||||||||
Less: Indirect payments from custodian (note 3) | (2 | ) | (2 | ) | — | (74 | ) | (16 | ) | (1 | ) | ||||||||||||||||||||
Total net expenses | 2,541 | 9,719 | 101 | 15,945 | 3,901 | 7,052 | |||||||||||||||||||||||||
Investment income (loss) – net | 8,510 | 26,124 | 208 | 27,555 | 5,378 | 1,891 | |||||||||||||||||||||||||
REALIZED AND UNREALIZED GAINS (LOSSES) – NET (note 5): | |||||||||||||||||||||||||||||||
Net realized gain (loss) on: | |||||||||||||||||||||||||||||||
Investments | (21,140 | ) | (12,130 | ) | (4,310 | ) | 43,357 | (24,099 | ) | (52,117 | ) | ||||||||||||||||||||
Redemptions-in-kind (note 9) | — | 4,349 | — | 23,282 | — | — | |||||||||||||||||||||||||
Futures contracts | 782 | — | — | (12,795 | ) | (2,901 | ) | — | |||||||||||||||||||||||
Options written | 367 | — | — | — | — | — | |||||||||||||||||||||||||
Swap agreements | 391 | — | — | — | — | — | |||||||||||||||||||||||||
Forward foreign currency contracts, foreign currency, and translation of other assets and liabilities denominated in foreign currency (note 2) | 12 | — | 2 | (796 | ) | 181 | — | ||||||||||||||||||||||||
Net change in unrealized appreciation or depreciation of: | |||||||||||||||||||||||||||||||
Investments | (65,261 | ) | (379,560 | ) | (4,656 | ) | (666,682 | ) | (148,884 | ) | (229,507 | ) | |||||||||||||||||||
Futures contracts | (1,285 | ) | — | — | (16,775 | ) | (6,171 | ) | — | ||||||||||||||||||||||
Options written | (7 | ) | — | — | — | — | — | ||||||||||||||||||||||||
Forward foreign currency contracts, foreign currency, and translation of other assets and liabilities denominated in foreign currency (note 2) | (1 | ) | — | (1 | ) | 138 | 186 | — | |||||||||||||||||||||||
Swap agreements | (1,575 | ) | — | — | — | — | — | ||||||||||||||||||||||||
Net loss on investments, redemptions-in-kind, futures contracts, options written, foreign currency transactions, and swap agreements | (87,717 | ) | (387,341 | ) | (8,965 | ) | (630,271 | ) | (181,688 | ) | (281,624 | ) | |||||||||||||||||||
Net decrease in net assets resulting from operations | $ | (79,207 | ) | $ | (361,217 | ) | $ | (8,757 | ) | $ | (602,716 | ) | $ | (176,310 | ) | $ | (279,733 | ) | |||||||||||||
1 | Class B, Class C, and Class R were not offered by Global Infrastructure Fund during the period. The fund began offering Class C and Class R on November 3, 2008. | |
2 | Class R is not offered by Small-Mid Cap Core Fund. | |
3 | For the period December 17, 2007 (commencement of operations) through October 31, 2008. |
The accompanying notes are an integral part of the financial statements.
90 First American Funds 2008 Annual Report
Table of Contents
Small Cap | ||||||||||||||||||||||||||||||||||||||||||||||
Mid Cap Growth | Growth | |||||||||||||||||||||||||||||||||||||||||||||
Large Cap | Large Cap | Opportunities | Mid Cap | Real Estate | Opportunities | Small Cap | Small Cap | Small-Mid Cap | ||||||||||||||||||||||||||||||||||||||
Select Fund | Value Fund | Fund | Value Fund | Securities Fund | Fund | Select Fund | Value Fund | Core Fund | ||||||||||||||||||||||||||||||||||||||
$ | — | $ | — | $ | — | $ | — | $ | — | $ | 1 | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||
5,392 | 16,386 | 8,579 | 17,101 | 34,010 | 767 | 5,248 | 4,779 | 885 | ||||||||||||||||||||||||||||||||||||||
92 | 356 | 637 | 592 | 368 | 190 | 688 | 66 | 32 | ||||||||||||||||||||||||||||||||||||||
— | — | — | (27 | ) | (155 | ) | — | — | — | — | ||||||||||||||||||||||||||||||||||||
403 | 690 | 3,194 | 1,172 | 1,404 | 541 | 2,081 | 808 | 240 | ||||||||||||||||||||||||||||||||||||||
5,887 | 17,432 | 12,410 | 18,838 | 35,627 | 1,499 | 8,017 | 5,653 | 1,157 | ||||||||||||||||||||||||||||||||||||||
2,249 | 4,351 | 11,060 | 6,192 | 5,543 | 2,310 | 5,061 | 1,917 | 633 | ||||||||||||||||||||||||||||||||||||||
773 | 1,483 | 3,486 | 1,957 | 1,752 | 520 | 1,603 | 615 | 210 | ||||||||||||||||||||||||||||||||||||||
126 | 252 | 464 | 335 | 225 | 184 | 386 | 185 | 226 | ||||||||||||||||||||||||||||||||||||||
22 | 34 | 79 | 47 | 41 | 12 | 38 | 18 | 8 | ||||||||||||||||||||||||||||||||||||||
14 | 14 | 13 | 14 | 14 | 15 | 14 | 15 | 15 | ||||||||||||||||||||||||||||||||||||||
27 | 27 | 27 | 27 | 27 | 26 | 27 | 26 | 26 | ||||||||||||||||||||||||||||||||||||||
51 | 52 | 62 | 63 | 73 | 60 | 70 | 52 | 43 | ||||||||||||||||||||||||||||||||||||||
27 | 52 | 113 | 66 | 60 | 41 | 76 | 27 | 12 | ||||||||||||||||||||||||||||||||||||||
28 | 28 | 28 | 28 | 28 | 28 | 28 | 28 | 28 | ||||||||||||||||||||||||||||||||||||||
20 | 20 | 22 | 21 | 21 | 20 | 21 | 20 | 19 | ||||||||||||||||||||||||||||||||||||||
15 | 225 | 871 | 515 | 409 | 282 | 504 | 102 | 46 | ||||||||||||||||||||||||||||||||||||||
5 | 59 | 125 | 66 | 53 | 32 | 97 | 44 | 45 | ||||||||||||||||||||||||||||||||||||||
3 | 37 | 228 | 207 | 146 | 17 | 261 | 32 | 45 | ||||||||||||||||||||||||||||||||||||||
— | 1 | 141 | 145 | 104 | 3 | 166 | 14 | — | ||||||||||||||||||||||||||||||||||||||
3,360 | 6,635 | 16,719 | 9,683 | 8,496 | 3,550 | 8,352 | 3,095 | 1,356 | ||||||||||||||||||||||||||||||||||||||
(3 | ) | (10 | ) | (18 | ) | (20 | ) | (12 | ) | (404 | ) | (21 | ) | (2 | ) | (173 | ) | |||||||||||||||||||||||||||||
— | (2 | ) | (11 | ) | (3 | ) | (4 | ) | (1 | ) | (3 | ) | — | — | ||||||||||||||||||||||||||||||||
3,357 | 6,623 | 16,690 | 9,660 | 8,480 | 3,145 | 8,328 | 3,093 | 1,183 | ||||||||||||||||||||||||||||||||||||||
2,530 | 10,809 | (4,280 | ) | 9,178 | 27,147 | (1,646 | ) | (311 | ) | 2,560 | (26 | ) | ||||||||||||||||||||||||||||||||||
(68,940 | ) | (53,971 | ) | (139,560 | ) | (107,430 | ) | (128,631 | ) | (40,776 | ) | (93,456 | ) | (26,457 | ) | (7,982 | ) | |||||||||||||||||||||||||||||
— | — | — | — | — | 247 | — | — | — | ||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | 305 | — | — | — | ||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
— | ||||||||||||||||||||||||||||||||||||||||||||||
— | — | — | — | (31 | ) | — | — | — | — | |||||||||||||||||||||||||||||||||||||
(93,774 | ) | (214,939 | ) | (635,741 | ) | (268,835 | ) | (281,542 | ) | (52,783 | ) | (234,746 | ) | (77,076 | ) | (26,410 | ) | |||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
(162,714 | ) | (268,910 | ) | (775,301 | ) | (376,265 | ) | (410,204 | ) | (93,007 | ) | (328,202 | ) | (103,533 | ) | (34,392 | ) | |||||||||||||||||||||||||||||
$ | (160,184 | ) | $ | (258,101 | ) | $ | (779,581 | ) | $ | (367,087 | ) | $ | (383,057 | ) | $ | (94,653 | ) | $ | (328,513 | ) | $ | (100,973 | ) | $ | (34,418 | ) | ||||||||||||||||||||
First American Funds 2008 Annual Report 91
Table of Contents
Statements ofChanges in Net Assets | all dollars are rounded to thousands (000) |
Global | |||||||||||||||||||||||||||||||||
Balanced | Equity | Infrastructure | International | ||||||||||||||||||||||||||||||
Fund | Income Fund | Fund | Fund | ||||||||||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | 12/17/071 | Year Ended | Year Ended | |||||||||||||||||||||||||||
10/31/08 | 10/31/07 | 10/31/08 | 10/31/07 | to 10/31/08 | 10/31/08 | 10/31/07 | |||||||||||||||||||||||||||
OPERATIONS: | |||||||||||||||||||||||||||||||||
Investment income (loss) – net | $ | 8,510 | $ | 6,838 | $ | 26,124 | $ | 26,412 | $ | 208 | $ | 27,555 | $ | 20,766 | |||||||||||||||||||
Net realized gain (loss) on: | |||||||||||||||||||||||||||||||||
Unaffiliated investments | (21,140 | ) | 36,857 | (12,130 | ) | 91,683 | (4,310 | ) | 43,357 | 165,689 | |||||||||||||||||||||||
Affiliated investments | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Redemptions in-kind (note 9) | — | — | 4,349 | — | — | 23,282 | — | ||||||||||||||||||||||||||
Futures contracts | 782 | (712 | ) | — | — | — | (12,795 | ) | — | ||||||||||||||||||||||||
Options written | 367 | (163 | ) | — | — | — | — | — | |||||||||||||||||||||||||
Swap agreements | 391 | 916 | — | — | — | — | — | ||||||||||||||||||||||||||
Forward foreign currency contracts, foreign currency, and translation of other assets and liabilities denominated in foreign currency (note 2) | 12 | 2 | — | — | 2 | (796 | ) | (871 | ) | ||||||||||||||||||||||||
Net change in unrealized appreciation or depreciation of: | |||||||||||||||||||||||||||||||||
Investments | (65,261 | ) | (7,616 | ) | (379,560 | ) | 69,097 | (4,656 | ) | (666,682 | ) | 122,521 | |||||||||||||||||||||
Futures contracts | (1,285 | ) | 317 | — | — | — | (16,775 | ) | — | ||||||||||||||||||||||||
Options written | (7 | ) | 7 | — | — | — | — | — | |||||||||||||||||||||||||
Forward foreign currency contracts, foreign currency, and translation of other assets and liabilities denominated in foreign currency (note 2) | (1 | ) | 1 | — | — | (1 | ) | 138 | 52 | ||||||||||||||||||||||||
Swap agreements | (1,575 | ) | 478 | — | — | — | — | — | |||||||||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | (79,207 | ) | 36,925 | (361,217 | ) | 187,192 | (8,757 | ) | (602,716 | ) | 308,157 | ||||||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||||||||||||||||||||||||
Investment income – net: | |||||||||||||||||||||||||||||||||
Class A | (2,782 | ) | (1,878 | ) | (3,201 | ) | (3,199 | ) | — | (504 | ) | (467 | ) | ||||||||||||||||||||
Class B | (159 | ) | (104 | ) | (204 | ) | (238 | ) | — | (16 | ) | (15 | ) | ||||||||||||||||||||
Class C | (59 | ) | (29 | ) | (110 | ) | (128 | ) | — | (9 | ) | (13 | ) | ||||||||||||||||||||
Class R | (6 | ) | — | (16 | ) | (10 | ) | — | — | — | |||||||||||||||||||||||
Class Y | (5,641 | ) | (4,784 | ) | (19,995 | ) | (22,721 | ) | — | (17,791 | ) | (18,658 | ) | ||||||||||||||||||||
Net realized gain on investments: | |||||||||||||||||||||||||||||||||
Class A | (10,035 | ) | (7,413 | ) | (11,805 | ) | (15,114 | ) | — | (4,764 | ) | (948 | ) | ||||||||||||||||||||
Class B | (790 | ) | (926 | ) | (1,124 | ) | (1,748 | ) | — | (604 | ) | (136 | ) | ||||||||||||||||||||
Class C | (275 | ) | (207 | ) | (605 | ) | (982 | ) | — | (611 | ) | (149 | ) | ||||||||||||||||||||
Class R | (4 | ) | (2 | ) | (63 | ) | (47 | ) | — | (1 | ) | — | |||||||||||||||||||||
Class Y | (21,214 | ) | (17,359 | ) | (67,897 | ) | (99,232 | ) | — | (133,882 | ) | (29,782 | ) | ||||||||||||||||||||
Total distributions | (40,965 | ) | (32,702 | ) | (105,020 | ) | (143,419 | ) | — | (158,182 | ) | (50,168 | ) | ||||||||||||||||||||
CAPITAL SHARE TRANSACTIONS (note 4): | |||||||||||||||||||||||||||||||||
Class A: | |||||||||||||||||||||||||||||||||
Proceeds from sales | 4,164 | 7,514 | 7,241 | 14,413 | 5,363 | 6,019 | 11,786 | ||||||||||||||||||||||||||
Reinvestment of distributions | 12,406 | 9,001 | 13,962 | 17,020 | — | 4,612 | 1,277 | ||||||||||||||||||||||||||
Payments for redemptions | (19,471 | ) | (20,902 | ) | (31,641 | ) | (30,354 | ) | (272 | ) | (14,884 | ) | (16,840 | ) | |||||||||||||||||||
Increase (decrease) in net assets from Class A transactions | (2,901 | ) | (4,387 | ) | (10,438 | ) | 1,079 | 5,091 | (4,253 | ) | (3,777 | ) | |||||||||||||||||||||
Class B2: | |||||||||||||||||||||||||||||||||
Proceeds from sales | 382 | 299 | 411 | 1,217 | — | 341 | 580 | ||||||||||||||||||||||||||
Reinvestment of distributions | 909 | 992 | 1,248 | 1,875 | — | 597 | 143 | ||||||||||||||||||||||||||
Payments for redemptions (note 3) | (2,103 | ) | (6,855 | ) | (3,181 | ) | (6,493 | ) | — | (2,149 | ) | (2,230 | ) | ||||||||||||||||||||
Decrease in net assets from Class B transactions | (812 | ) | (5,564 | ) | (1,522 | ) | (3,401 | ) | — | (1,211 | ) | (1,507 | ) | ||||||||||||||||||||
Class C2: | |||||||||||||||||||||||||||||||||
Proceeds from sales | 199 | 411 | 595 | 788 | — | 462 | 872 | ||||||||||||||||||||||||||
Reinvestment of distributions | 319 | 225 | 666 | 1,026 | — | 556 | 142 | ||||||||||||||||||||||||||
Payments for redemptions (note 3) | (605 | ) | (912 | ) | (2,522 | ) | (4,021 | ) | — | (1,585 | ) | (2,984 | ) | ||||||||||||||||||||
Increase (decrease) in net assets from Class C transactions | (87 | ) | (276 | ) | (1,261 | ) | (2,207 | ) | — | (567 | ) | (1,970 | ) | ||||||||||||||||||||
Class R2: | |||||||||||||||||||||||||||||||||
Proceeds from sales | 410 | 27 | 78 | 613 | — | 3 | 3 | ||||||||||||||||||||||||||
Reinvestment of distributions | 10 | 2 | 79 | 56 | — | 1 | — | ||||||||||||||||||||||||||
Payments for redemptions | (2 | ) | (19 | ) | (193 | ) | (287 | ) | — | (3 | ) | — | |||||||||||||||||||||
Increase in net assets from Class R transactions | 418 | 10 | (36 | ) | 382 | — | 1 | 3 | |||||||||||||||||||||||||
Class Y: | |||||||||||||||||||||||||||||||||
Proceeds from sales | 21,293 | 23,664 | 77,778 | 80,545 | 32,934 | 210,818 | 167,696 | ||||||||||||||||||||||||||
Reinvestment of distributions | 25,617 | 21,029 | 39,603 | 56,726 | — | 101,831 | 29,171 | ||||||||||||||||||||||||||
Payments for redemptions | (82,249 | ) | (75,193 | ) | (216,514 | ) | (242,377 | ) | (8,025 | ) | (597,730 | ) | (512,210 | ) | |||||||||||||||||||
Increase (decrease) in net assets from Class Y transactions | (35,339 | ) | (30,500 | ) | (99,133 | ) | (105,106 | ) | 24,909 | (285,081 | ) | (315,343 | ) | ||||||||||||||||||||
Increase (decrease) in net assets from capital share transactions | (38,721 | ) | (40,717 | ) | (112,390 | ) | (109,253 | ) | 30,000 | (291,111 | ) | (322,594 | ) | ||||||||||||||||||||
Increase in net assets from regulatory settlement proceeds (note 10) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Total increase (decrease) in net assets | (158,893 | ) | (36,494 | ) | (578,627 | ) | (65,480 | ) | 21,243 | (1,052,009 | ) | (64,605 | ) | ||||||||||||||||||||
Net assets at beginning of period | 334,298 | 370,792 | 1,267,886 | 1,333,366 | — | 1,741,360 | 1,805,965 | ||||||||||||||||||||||||||
Net assets at end of period | $ | 175,405 | $ | 334,298 | $ | 689,259 | $ | 1,267,886 | $ | 21,243 | $ | 689,351 | $ | 1,741,360 | |||||||||||||||||||
Undistributed (distributions in excess of) net investment income at end of period | $ | 1,153 | $ | 768 | $ | 2,097 | $ | (490 | ) | $ | 210 | $ | 7,434 | $ | 18,037 | ||||||||||||||||||
1 | Commencement of operations. | |
2 | Class B, Class C and Class R were not offered by Global Infrastructure Fund during the period. The fund began offering Class C and Class R on November 3, 2008. |
The accompanying notes are an integral part of the financial statements.
92 First American Funds 2008 Annual Report
Table of Contents
International | Large Cap Growth | Large Cap | Large Cap | ||||||||||||||||||||||||||||||||||
Select Fund | Opportunities Fund | Select Fund | Value Fund | ||||||||||||||||||||||||||||||||||
Year Ended | 12/21/061 | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||||||||||||||||
10/31/08 | to 10/31/07 | 10/31/08 | 10/31/07 | 10/31/08 | 10/31/07 | 10/31/08 | 10/31/07 | ||||||||||||||||||||||||||||||
$ | 5,378 | $ | 2,427 | $ | 1,891 | $ | 454 | $ | 2,530 | $ | 2,112 | $ | 10,809 | $ | 11,387 | ||||||||||||||||||||||
(24,099 | ) | 2,639 | (52,117 | ) | 96,005 | (68,940 | ) | 64,920 | (53,971 | ) | 119,358 | ||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
(2,901 | ) | (26 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
181 | (316 | ) | — | — | — | — | — | — | |||||||||||||||||||||||||||||
(148,884 | ) | 37,985 | (229,507 | ) | 85,008 | (93,774 | ) | (1,889 | ) | (214,939 | ) | (27,940 | ) | ||||||||||||||||||||||||
(6,171 | ) | 1,208 | — | — | — | — | — | — | |||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
186 | 12 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
(176,310 | ) | 43,929 | (279,733 | ) | 181,467 | (160,184 | ) | 65,143 | (258,101 | ) | 102,805 | ||||||||||||||||||||||||||
(19 | ) | — | — | — | (21 | ) | (17 | ) | (844 | ) | (1,259 | ) | |||||||||||||||||||||||||
(1 | ) | — | — | — | — | — | (26 | ) | (52 | ) | |||||||||||||||||||||||||||
(1 | ) | — | — | — | (1 | ) | — | (15 | ) | (28 | ) | ||||||||||||||||||||||||||
— | — | — | — | — | — | (1 | ) | (1 | ) | ||||||||||||||||||||||||||||
(2,254 | ) | (49 | ) | (464 | ) | (1,284 | ) | (1,853 | ) | (2,107 | ) | (6,296 | ) | (10,065 | ) | ||||||||||||||||||||||
(58 | ) | — | (8,176 | ) | (1,037 | ) | (1,002 | ) | (116 | ) | (13,581 | ) | (8,885 | ) | |||||||||||||||||||||||
(7 | ) | — | (1,066 | ) | (159 | ) | (87 | ) | (11 | ) | (962 | ) | (738 | ) | |||||||||||||||||||||||
(6 | ) | — | (757 | ) | (93 | ) | (42 | ) | (4 | ) | (561 | ) | (404 | ) | |||||||||||||||||||||||
— | — | (50 | ) | (7 | ) | (5 | ) | (2 | ) | (23 | ) | (13 | ) | ||||||||||||||||||||||||
(5,572 | ) | — | (61,331 | ) | (8,372 | ) | (55,522 | ) | (7,569 | ) | (86,486 | ) | (62,201 | ) | |||||||||||||||||||||||
(7,918 | ) | (49 | ) | (71,844 | ) | (10,952 | ) | (58,533 | ) | (9,826 | ) | (108,795 | ) | (83,646 | ) | ||||||||||||||||||||||
1,504 | 3,236 | 7,836 | 13,170 | 888 | 1,953 | 3,879 | 8,622 | ||||||||||||||||||||||||||||||
67 | — | 7,846 | 986 | 817 | 113 | 13,370 | 9,390 | ||||||||||||||||||||||||||||||
(1,162 | ) | (339 | ) | (19,590 | ) | (26,532 | ) | (2,403 | ) | (2,094 | ) | (20,859 | ) | (22,821 | ) | ||||||||||||||||||||||
409 | 2,897 | (3,908 | ) | (12,376 | ) | (698 | ) | (28 | ) | (3,610 | ) | (4,809 | ) | ||||||||||||||||||||||||
202 | 296 | 407 | 827 | 18 | 70 | 161 | 432 | ||||||||||||||||||||||||||||||
7 | — | 1,032 | 156 | 88 | 10 | 964 | 768 | ||||||||||||||||||||||||||||||
(61 | ) | (3 | ) | (2,852 | ) | (5,385 | ) | (117 | ) | (133 | ) | (2,115 | ) | (3,166 | ) | ||||||||||||||||||||||
148 | 293 | (1,413 | ) | (4,402 | ) | (11 | ) | (53 | ) | (990 | ) | (1,966 | ) | ||||||||||||||||||||||||
244 | 267 | 706 | 1,235 | 54 | 80 | 319 | 817 | ||||||||||||||||||||||||||||||
5 | — | 707 | 90 | 38 | 4 | 510 | 387 | ||||||||||||||||||||||||||||||
(105 | ) | (8 | ) | (2,155 | ) | (2,802 | ) | (70 | ) | (40 | ) | (741 | ) | (1,866 | ) | ||||||||||||||||||||||
144 | 259 | (742 | ) | (1,477 | ) | 22 | 44 | 88 | (662 | ) | |||||||||||||||||||||||||||
62 | 16 | 231 | 104 | 13 | 21 | 105 | 45 | ||||||||||||||||||||||||||||||
— | — | 50 | 7 | 5 | 2 | 24 | 14 | ||||||||||||||||||||||||||||||
(8 | ) | (1 | ) | (89 | ) | (221 | ) | (15 | ) | (111 | ) | (36 | ) | (39 | ) | ||||||||||||||||||||||
54 | 15 | 192 | (110 | ) | 3 | (88 | ) | 93 | 20 | ||||||||||||||||||||||||||||
201,444 | 322,481 | 111,241 | 88,407 | 108,988 | 51,891 | 74,224 | 52,221 | ||||||||||||||||||||||||||||||
4,127 | 48 | 32,809 | 4,913 | 23,632 | 3,629 | 59,454 | 45,777 | ||||||||||||||||||||||||||||||
(116,875 | ) | (22,856 | ) | (172,512 | ) | (285,174 | ) | (159,401 | ) | (136,802 | ) | (146,403 | ) | (213,481 | ) | ||||||||||||||||||||||
88,696 | 299,673 | (28,462 | ) | (191,854 | ) | (26,781 | ) | (81,282 | ) | (12,725 | ) | (115,483 | ) | ||||||||||||||||||||||||
89,451 | 303,137 | (34,333 | ) | (210,219 | ) | (27,465 | ) | (81,407 | ) | (17,144 | ) | (122,900 | ) | ||||||||||||||||||||||||
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
(94,777 | ) | 347,017 | (385,910 | ) | (39,704 | ) | (246,182 | ) | (26,090 | ) | (384,040 | ) | (103,741 | ) | |||||||||||||||||||||||
347,017 | — | 867,406 | 907,110 | 458,225 | 484,315 | 852,483 | 956,224 | ||||||||||||||||||||||||||||||
$ | 252,240 | $ | 347,017 | $ | 481,496 | $ | 867,406 | $ | 212,043 | $ | 458,225 | $ | 468,443 | $ | 852,483 | ||||||||||||||||||||||
$ | 5,358 | $ | 2,063 | $ | 1,882 | $ | 455 | $ | 727 | $ | 66 | $ | 3,618 | $ | (8 | ) | |||||||||||||||||||||
First American Funds 2008 Annual Report 93
Table of Contents
Statements ofChanges in Net Assets all dollars are rounded to thousands (000)
Mid Cap Growth | Mid Cap | Real Estate | ||||||||||||||||||||||||||
Opportunities Fund | Value Fund | Securities Fund | ||||||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||||||
10/31/08 | 10/31/07 | 10/31/08 | 10/31/07 | 10/31/08 | 10/31/07 | |||||||||||||||||||||||
OPERATIONS: | ||||||||||||||||||||||||||||
Investment income (loss) – net | $ | (4,280 | ) | $ | (6,938 | ) | $ | 9,178 | $ | 7,546 | $ | 27,147 | $ | 20,209 | ||||||||||||||
Net realized gain (loss) on: | ||||||||||||||||||||||||||||
Unaffiliated investments | (139,560 | ) | 219,650 | (107,430 | ) | 82,464 | (128,631 | ) | 78,326 | |||||||||||||||||||
Affiliated investments | — | — | — | — | — | — | ||||||||||||||||||||||
Redemptions in-kind (note 9) | — | — | — | — | — | — | ||||||||||||||||||||||
Futures contracts | — | — | — | — | — | — | ||||||||||||||||||||||
Options written | — | — | — | — | — | — | ||||||||||||||||||||||
Swap agreements | — | — | — | — | — | — | ||||||||||||||||||||||
Forward foreign currency contracts, foreign currency, and translation of other assets and liabilities denominated in foreign currency (note 2) | — | — | — | — | (31 | ) | — | |||||||||||||||||||||
Net change in unrealized appreciation or depreciation of: | ||||||||||||||||||||||||||||
Investments | (635,741 | ) | 162,820 | (268,835 | ) | 24,636 | (281,542 | ) | (95,107 | ) | ||||||||||||||||||
Futures contracts | — | — | — | — | — | — | ||||||||||||||||||||||
Options written | — | — | — | — | — | — | ||||||||||||||||||||||
Forward foreign currency contracts, foreign currency, and translation of other assets and liabilities denominated in foreign currency (note 2) | — | — | — | — | — | — | ||||||||||||||||||||||
Swap agreements | — | — | — | — | — | — | ||||||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | (779,581 | ) | 375,532 | (367,087 | ) | 114,646 | (383,057 | ) | 3,428 | |||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | ||||||||||||||||||||||||||||
Investment income – net: | ||||||||||||||||||||||||||||
Class A | — | — | (1,408 | ) | (1,522 | ) | (3,653 | ) | (3,489 | ) | ||||||||||||||||||
Class B | — | — | (22 | ) | (14 | ) | (78 | ) | (76 | ) | ||||||||||||||||||
Class C | — | — | (63 | ) | (40 | ) | (217 | ) | (197 | ) | ||||||||||||||||||
Class R | — | — | (175 | ) | (111 | ) | (409 | ) | (229 | ) | ||||||||||||||||||
Class Y | — | — | (5,086 | ) | (6,390 | ) | (14,270 | ) | (11,675 | ) | ||||||||||||||||||
Net realized gain on investments: | ||||||||||||||||||||||||||||
Class A | (42,869 | ) | (30,495 | ) | (16,522 | ) | (12,946 | ) | (22,068 | ) | (21,330 | ) | ||||||||||||||||
Class B | (1,753 | ) | (1,525 | ) | (565 | ) | (528 | ) | (816 | ) | (722 | ) | ||||||||||||||||
Class C | (3,115 | ) | (1,884 | ) | (1,759 | ) | (1,175 | ) | (2,036 | ) | (1,281 | ) | ||||||||||||||||
Class R | (3,185 | ) | (1,645 | ) | (1,982 | ) | (1,102 | ) | (2,193 | ) | (931 | ) | ||||||||||||||||
Class Y | (137,824 | ) | (106,455 | ) | (48,932 | ) | (42,784 | ) | (68,467 | ) | (65,821 | ) | ||||||||||||||||
Total distributions | (188,746 | ) | (142,004 | ) | (76,514 | ) | (66,612 | ) | (114,207 | ) | (105,751 | ) | ||||||||||||||||
CAPITAL SHARE TRANSACTIONS (note 4): | ||||||||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||||||
Proceeds from sales | 59,598 | 113,868 | 48,087 | 154,646 | 96,399 | 105,664 | ||||||||||||||||||||||
Reinvestment of distributions | 41,285 | 29,160 | 17,368 | 14,057 | 24,612 | 22,640 | ||||||||||||||||||||||
Payments for redemptions | (104,324 | ) | (87,910 | ) | (94,410 | ) | (81,184 | ) | (85,724 | ) | (127,551 | ) | ||||||||||||||||
Increase (decrease) in net assets from Class A transactions | (3,441 | ) | 55,118 | (28,955 | ) | 87,519 | 35,287 | 753 | ||||||||||||||||||||
Class B: | ||||||||||||||||||||||||||||
Proceeds from sales | 738 | 1,912 | 357 | 1,235 | 517 | 3,037 | ||||||||||||||||||||||
Reinvestment of distributions | 1,643 | 1,419 | 554 | 513 | 773 | 730 | ||||||||||||||||||||||
Payments for redemptions (note 3) | (3,120 | ) | (4,702 | ) | (1,801 | ) | (2,298 | ) | (2,144 | ) | (2,757 | ) | ||||||||||||||||
Decrease in net assets from Class B transactions | (739 | ) | (1,371 | ) | (890 | ) | (550 | ) | (854 | ) | 1,010 | |||||||||||||||||
Class C: | ||||||||||||||||||||||||||||
Proceeds from sales | 4,282 | 9,743 | 2,358 | 9,914 | 6,738 | 16,692 | ||||||||||||||||||||||
Reinvestment of distributions | 2,677 | 1,764 | 1,585 | 1,083 | 1,755 | 1,193 | ||||||||||||||||||||||
Payments for redemptions (note 3) | (8,531 | ) | (4,958 | ) | (6,416 | ) | (4,006 | ) | (6,111 | ) | (9,390 | ) | ||||||||||||||||
Increase (decrease) in net assets from Class C transactions | (1,572 | ) | 6,549 | (2,473 | ) | 6,991 | 2,382 | 8,495 | ||||||||||||||||||||
Class R1: | ||||||||||||||||||||||||||||
Proceeds from sales | 16,036 | 13,492 | 16,462 | 22,611 | 24,530 | 23,035 | ||||||||||||||||||||||
Reinvestment of distributions | 3,185 | 1,645 | 2,152 | 1,204 | 2,601 | 1,152 | ||||||||||||||||||||||
Payments for redemptions | (9,288 | ) | (6,431 | ) | (9,556 | ) | (13,287 | ) | (8,819 | ) | (13,301 | ) | ||||||||||||||||
Increase in net assets from Class R transactions | 9,933 | 8,706 | 9,058 | 10,528 | 18,312 | 10,886 | ||||||||||||||||||||||
Class Y: | ||||||||||||||||||||||||||||
Proceeds from sales | 150,690 | 200,629 | 57,392 | 102,337 | 388,360 | 200,077 | ||||||||||||||||||||||
Reinvestment of distributions | 104,398 | 78,118 | 39,960 | 34,548 | 49,830 | 42,649 | ||||||||||||||||||||||
Payments for redemptions | (286,403 | ) | (221,866 | ) | (140,793 | ) | (127,700 | ) | (198,925 | ) | (275,626 | ) | ||||||||||||||||
Increase (decrease) in net assets from Class Y transactions | (31,315 | ) | 56,881 | (43,441 | ) | 9,185 | 239,265 | (32,900 | ) | |||||||||||||||||||
Increase (decrease) in net assets from capital share transactions | (27,134 | ) | 125,883 | (66,701 | ) | 113,673 | 294,392 | (11,756 | ) | |||||||||||||||||||
Increase in net assets from regulatory settlement proceeds (note 10) | — | — | — | — | — | — | ||||||||||||||||||||||
Total increase (decrease) in net assets | (995,461 | ) | 359,411 | (510,302 | ) | 161,707 | (202,872 | ) | (114,079 | ) | ||||||||||||||||||
Net assets at beginning of period | 1,978,570 | 1,619,159 | 1,090,773 | 929,006 | 899,967 | 1,014,046 | ||||||||||||||||||||||
Net assets at end of period | $ | 983,109 | $ | 1,978,570 | $ | 580,471 | $ | 1,090,713 | $ | 697,095 | $ | 899,967 | ||||||||||||||||
Undistributed (distributions in excess of) net investment income at end of period | $ | (11 | ) | $ | (10 | ) | $ | 1,332 | $ | (7 | ) | $ | (8 | ) | $ | (7 | ) | |||||||||||
1 | Class R is not offered by Small-Mid Cap Core Fund. |
The accompanying notes are an integral part of the financial statements.
94 First American Funds 2008 Annual Report
Table of Contents
Small Cap Growth | Small Cap | Small Cap | Small-Mid Cap | ||||||||||||||||||||||||||||||||||
Opportunities Fund | Select Fund | Value Fund | Core Fund | ||||||||||||||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||||||||||||||||
10/31/08 | 10/31/07 | 10/31/08 | 10/31/07 | 10/31/08 | 10/31/07 | 10/31/08 | 10/31/07 | ||||||||||||||||||||||||||||||
$ | (1,646 | ) | $ | (2,579 | ) | $ | (311 | ) | $ | (813 | ) | $ | 2,560 | $ | 4,450 | $ | (26 | ) | $ | (151 | ) | ||||||||||||||||
(40,776 | ) | 29,255 | (93,456 | ) | 81,194 | (26,457 | ) | 42,939 | (7,982 | ) | 9,015 | ||||||||||||||||||||||||||
— | — | — | (2,200 | ) | — | — | — | — | |||||||||||||||||||||||||||||
247 | — | — | 6,598 | — | — | — | — | ||||||||||||||||||||||||||||||
305 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
(52,783 | ) | 11,753 | (234,746 | ) | (12,056 | ) | (77,076 | ) | (29,588 | ) | (26,410 | ) | 3,441 | ||||||||||||||||||||||||
— | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
— | |||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | ||||||||||||||||||||||||||||||||
— | — | — | — | — | — | ||||||||||||||||||||||||||||||||
(94,653 | ) | 38,429 | (328,513 | ) | 72,723 | (100,973 | ) | 17,801 | (34,418 | ) | 12,305 | ||||||||||||||||||||||||||
— | — | — | — | (573 | ) | (94 | ) | — | — | ||||||||||||||||||||||||||||
— | — | — | — | (24 | ) | — | — | — | |||||||||||||||||||||||||||||
— | — | — | — | (20 | ) | — | — | — | |||||||||||||||||||||||||||||
— | — | — | — | (33 | ) | (3 | ) | — | — | ||||||||||||||||||||||||||||
— | — | (290 | ) | — | (3,749 | ) | (1,306 | ) | — | (108 | ) | ||||||||||||||||||||||||||
(10,823 | ) | (8,975 | ) | (14,448 | ) | (33,807 | ) | (5,182 | ) | (9,082 | ) | — | — | ||||||||||||||||||||||||
(340 | ) | (443 | ) | (980 | ) | (2,398 | ) | (645 | ) | (1,323 | ) | — | — | ||||||||||||||||||||||||
(169 | ) | (178 | ) | (2,230 | ) | (2,921 | ) | (434 | ) | (764 | ) | — | — | ||||||||||||||||||||||||
(39 | ) | (81 | ) | (2,457 | ) | (578 | ) | (336 | ) | (321 | ) | — | — | ||||||||||||||||||||||||
(9,817 | ) | (10,242 | ) | (34,350 | ) | (94,474 | ) | (27,249 | ) | (52,686 | ) | — | — | ||||||||||||||||||||||||
(21,188 | ) | (19,919 | ) | (54,755 | ) | (134,178 | ) | (38,245 | ) | (65,579 | ) | — | (108 | ) | |||||||||||||||||||||||
17,198 | 42,677 | 111,735 | 169,005 | 2,653 | 9,352 | 3,246 | 5,584 | ||||||||||||||||||||||||||||||
10,653 | 8,788 | 13,800 | 24,845 | 5,531 | 8,932 | — | — | ||||||||||||||||||||||||||||||
(101,235 | ) | (49,599 | ) | (89,826 | ) | (161,596 | ) | (12,847 | ) | (15,854 | ) | (5,139 | ) | (12,536 | ) | ||||||||||||||||||||||
(73,384 | ) | 1,866 | 35,709 | 32,254 | (4,663 | ) | 2,430 | (1,893 | ) | (6,952 | ) | ||||||||||||||||||||||||||
103 | 235 | 324 | 1,987 | 44 | 183 | 118 | 294 | ||||||||||||||||||||||||||||||
325 | 412 | 937 | 2,264 | 642 | 1,220 | — | — | ||||||||||||||||||||||||||||||
(1,039 | ) | (2,909 | ) | (3,322 | ) | (4,115 | ) | (1,622 | ) | (1,975 | ) | (2,833 | ) | (2,885 | ) | ||||||||||||||||||||||
(611 | ) | (2,262 | ) | (2,061 | ) | 136 | (936 | ) | (572 | ) | (2,715 | ) | (2,591 | ) | |||||||||||||||||||||||
214 | 807 | 4,504 | 21,138 | 477 | 1,120 | 696 | 1,179 | ||||||||||||||||||||||||||||||
154 | 151 | 2,068 | 2,706 | 411 | 736 | — | — | ||||||||||||||||||||||||||||||
(583 | ) | (1,431 | ) | (10,197 | ) | (6,772 | ) | (869 | ) | (1,648 | ) | (1,120 | ) | (1,497 | ) | ||||||||||||||||||||||
(215 | ) | (473 | ) | (3,625 | ) | 17,072 | 19 | 208 | (424 | ) | (318 | ) | |||||||||||||||||||||||||
299 | 449 | 13,319 | 39,652 | 1,187 | 2,573 | — | — | ||||||||||||||||||||||||||||||
39 | 81 | 2,457 | 578 | 369 | 323 | — | — | ||||||||||||||||||||||||||||||
(127 | ) | (1,395 | ) | (14,269 | ) | (5,019 | ) | (1,207 | ) | (1,268 | ) | — | — | ||||||||||||||||||||||||
211 | (865 | ) | 1,507 | 35,211 | 349 | 1,628 | — | — | |||||||||||||||||||||||||||||
12,641 | 15,021 | 70,683 | 200,087 | 19,705 | 39,919 | 17,744 | 27,632 | ||||||||||||||||||||||||||||||
7,546 | 7,633 | 26,896 | 71,615 | 27,122 | 46,881 | — | 38 | ||||||||||||||||||||||||||||||
(35,529 | ) | (60,378 | ) | (259,101 | ) | (270,010 | ) | (78,089 | ) | (100,232 | ) | (32,921 | ) | (23,844 | ) | ||||||||||||||||||||||
(15,342 | ) | (37,724 | ) | (161,522 | ) | 1,692 | (31,262 | ) | (13,432 | ) | (15,177 | ) | 3,826 | ||||||||||||||||||||||||
(89,341 | ) | (39,458 | ) | (129,992 | ) | 86,365 | (36,493 | ) | (9,738 | ) | (20,209 | ) | (6,035 | ) | |||||||||||||||||||||||
2,103 | 177 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
(203,079 | ) | (20,771 | ) | (513,260 | ) | 24,910 | (175,711 | ) | (57,516 | ) | (54,627 | ) | 6,162 | ||||||||||||||||||||||||
310,971 | 331,742 | 1,016,023 | 991,113 | 369,663 | 427,179 | 113,464 | 107,302 | ||||||||||||||||||||||||||||||
$ | 107,892 | $ | 310,971 | $ | 502,763 | $ | 1,016,023 | $ | 193,952 | $ | 369,663 | $ | 58,837 | $ | 113,464 | ||||||||||||||||||||||
$ | (7 | ) | $ | (6 | ) | $ | (9 | ) | $ | (7 | ) | $ | 1,164 | $ | 3,082 | $ | (6 | ) | $ | (5 | ) | ||||||||||||||||
First American Funds 2008 Annual Report 95
Table of Contents
Financial Highlights For a share outstanding throughout the indicated periods.
Realized and | |||||||||||||||||||||||||||||||||||||||||
Net Asset | Unrealized | Distributions | Net Asset | ||||||||||||||||||||||||||||||||||||||
Value | Net | Gains | Total from | from Net | Distributions | Value | |||||||||||||||||||||||||||||||||||
Beginning | Investment | (Losses) on | Investment | Investment | from Net | Total | End of | ||||||||||||||||||||||||||||||||||
of Period | Income | Investments | Operations | Income | Realized Gains | Distributions | Period | ||||||||||||||||||||||||||||||||||
Balanced Fund1 | |||||||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||||||
20082 | $ | 12.44 | $ | 0.32 | $ | (3.57 | ) | $ | (3.25 | ) | $ | (0.33 | ) | $ | (1.25 | ) | $ | (1.58 | ) | $ | 7.61 | ||||||||||||||||||||
20072 | 12.27 | 0.22 | 1.04 | 1.26 | (0.21 | ) | (0.88 | ) | (1.09 | ) | 12.44 | ||||||||||||||||||||||||||||||
20062 | 11.27 | 0.20 | 1.00 | 1.20 | (0.20 | ) | — | (0.20 | ) | 12.27 | |||||||||||||||||||||||||||||||
20053 | 11.43 | 0.01 | (0.17 | ) | (0.16 | ) | — | — | — | 11.27 | |||||||||||||||||||||||||||||||
20054 | 10.12 | 0.15 | 1.31 | 1.46 | (0.15 | ) | — | (0.15 | ) | 11.43 | |||||||||||||||||||||||||||||||
20044 | 9.47 | 0.13 | 0.66 | 0.79 | (0.14 | ) | — | (0.14 | ) | 10.12 | |||||||||||||||||||||||||||||||
Class B | |||||||||||||||||||||||||||||||||||||||||
20082 | $ | 12.34 | $ | 0.24 | $ | (3.54 | ) | $ | (3.30 | ) | $ | (0.25 | ) | $ | (1.25 | ) | $ | (1.50 | ) | $ | 7.54 | ||||||||||||||||||||
20072 | 12.18 | 0.13 | 1.03 | 1.16 | (0.12 | ) | (0.88 | ) | (1.00 | ) | 12.34 | ||||||||||||||||||||||||||||||
20062 | 11.18 | 0.11 | 1.00 | 1.11 | (0.11 | ) | — | (0.11 | ) | 12.18 | |||||||||||||||||||||||||||||||
20053 | 11.34 | — | (0.16 | ) | (0.16 | ) | — | — | — | 11.18 | |||||||||||||||||||||||||||||||
20054 | 10.04 | 0.07 | 1.30 | 1.37 | (0.07 | ) | — | (0.07 | ) | 11.34 | |||||||||||||||||||||||||||||||
20044 | 9.41 | 0.05 | 0.65 | 0.70 | (0.07 | ) | — | (0.07 | ) | 10.04 | |||||||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||||||
20082 | $ | 12.42 | $ | 0.24 | $ | (3.57 | ) | $ | (3.33 | ) | $ | (0.25 | ) | $ | (1.25 | ) | $ | (1.50 | ) | $ | 7.59 | ||||||||||||||||||||
20072 | 12.25 | 0.13 | 1.04 | 1.17 | (0.12 | ) | (0.88 | ) | (1.00 | ) | 12.42 | ||||||||||||||||||||||||||||||
20062 | 11.22 | 0.11 | 0.99 | 1.10 | (0.07 | ) | — | (0.07 | ) | 12.25 | |||||||||||||||||||||||||||||||
20053 | 11.38 | — | (0.16 | ) | (0.16 | ) | — | — | — | 11.22 | |||||||||||||||||||||||||||||||
20054 | 10.08 | 0.07 | 1.30 | 1.37 | (0.07 | ) | — | (0.07 | ) | 11.38 | |||||||||||||||||||||||||||||||
20044 | 9.44 | 0.05 | 0.66 | 0.71 | (0.07 | ) | — | (0.07 | ) | 10.08 | |||||||||||||||||||||||||||||||
Class R5 | |||||||||||||||||||||||||||||||||||||||||
20082 | $ | 12.54 | $ | 0.30 | $ | (3.61 | ) | $ | (3.31 | ) | $ | (0.31 | ) | $ | (1.25 | ) | $ | (1.56 | ) | $ | 7.67 | ||||||||||||||||||||
20072 | 12.35 | 0.19 | 1.07 | 1.26 | (0.19 | ) | (0.88 | ) | (1.07 | ) | 12.54 | ||||||||||||||||||||||||||||||
20062 | 11.29 | 0.17 | 1.01 | 1.18 | (0.12 | ) | — | (0.12 | ) | 12.35 | |||||||||||||||||||||||||||||||
20053 | 11.45 | 0.01 | (0.17 | ) | (0.16 | ) | — | — | — | 11.29 | |||||||||||||||||||||||||||||||
20054 | 10.14 | 0.11 | 1.32 | 1.43 | (0.12 | ) | — | (0.12 | ) | 11.45 | |||||||||||||||||||||||||||||||
20044 | 9.49 | 0.14 | 0.64 | 0.78 | (0.13 | ) | — | (0.13 | ) | 10.14 | |||||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||||||
20082 | $ | 12.47 | $ | 0.35 | $ | (3.58 | ) | $ | (3.23 | ) | $ | (0.36 | ) | $ | (1.25 | ) | $ | (1.61 | ) | $ | 7.63 | ||||||||||||||||||||
20072 | 12.30 | 0.25 | 1.04 | 1.29 | (0.24 | ) | (0.88 | ) | (1.12 | ) | 12.47 | ||||||||||||||||||||||||||||||
20062 | 11.31 | 0.23 | 0.99 | 1.22 | (0.23 | ) | — | (0.23 | ) | 12.30 | |||||||||||||||||||||||||||||||
20053 | 11.46 | 0.01 | (0.16 | ) | (0.15 | ) | — | — | — | 11.31 | |||||||||||||||||||||||||||||||
20054 | 10.15 | 0.17 | 1.32 | 1.49 | (0.18 | ) | — | (0.18 | ) | 11.46 | |||||||||||||||||||||||||||||||
20044 | 9.50 | 0.16 | 0.66 | 0.82 | (0.17 | ) | — | (0.17 | ) | 10.15 | |||||||||||||||||||||||||||||||
1 | Per share data calculated using average shares outstanding method. | |
2 | For the period November 1 to October 31 in the fiscal year indicated. | |
3 | For the period October 1, 2005 to October 31, 2005. Effective October 1, 2005, the fund’s fiscal year end was changed from September 30 to October 31. All ratios for the period have been annualized, except total return and portfolio turnover. | |
4 | For the period October 1 to September 30 in the fiscal year indicated. | |
5 | Prior to July 1, 2004, Class R shares were named Class S shares. | |
6 | Total return does not include sales charges. Total return would have been lower had certain expenses not been waived. |
The accompanying notes are an integral part of the financial statements.
96 First American Funds 2008 Annual Report
Table of Contents
Ratio of Net | ||||||||||||||||||||||||||||||||||||
Ratio of | Investment | |||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses | Income | ||||||||||||||||||||||||||||||||||
Ratio of | Investment | to Average | to Average | |||||||||||||||||||||||||||||||||
Net Assets | Expenses to | Income | Net Assets | Net Assets | Portfolio | |||||||||||||||||||||||||||||||
Total | End of | Average | to Average | (Excluding | (Excluding | Turnover | ||||||||||||||||||||||||||||||
Return6 | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | ||||||||||||||||||||||||||||||
(29.47 | )% | $ | 61,222 | 1.10 | % | 3.12 | % | 1.30 | % | 2.92 | % | 143 | % | |||||||||||||||||||||||
10.97 | 103,818 | 1.10 | 1.79 | 1.24 | 1.65 | 144 | ||||||||||||||||||||||||||||||
10.73 | 106,565 | 1.10 | 1.67 | 1.23 | 1.54 | 143 | ||||||||||||||||||||||||||||||
(1.40 | ) | 112,557 | 1.10 | 0.90 | 1.21 | 0.79 | 12 | |||||||||||||||||||||||||||||
14.51 | 114,388 | 1.06 | 1.35 | 1.21 | 1.20 | 147 | ||||||||||||||||||||||||||||||
8.39 | 119,292 | 1.05 | 1.27 | 1.19 | 1.13 | 110 | ||||||||||||||||||||||||||||||
(30.02 | )% | $ | 4,422 | 1.85 | % | 2.37 | % | 2.05 | % | 2.17 | % | 143 | % | |||||||||||||||||||||||
10.08 | 8,212 | 1.85 | 1.06 | 1.99 | 0.92 | 144 | ||||||||||||||||||||||||||||||
9.93 | 13,809 | 1.85 | 0.92 | 1.98 | 0.79 | 143 | ||||||||||||||||||||||||||||||
(1.41 | ) | 19,409 | 1.85 | 0.15 | 1.96 | 0.04 | 12 | |||||||||||||||||||||||||||||
13.64 | 20,657 | 1.81 | 0.60 | 1.96 | 0.45 | 147 | ||||||||||||||||||||||||||||||
7.46 | 28,101 | 1.80 | 0.54 | 1.94 | 0.40 | 110 | ||||||||||||||||||||||||||||||
(30.06 | )% | $ | 1,612 | 1.85 | % | 2.37 | % | 2.05 | % | 2.17 | % | 143 | % | |||||||||||||||||||||||
10.15 | 2,785 | 1.85 | 1.06 | 1.99 | 0.92 | 144 | ||||||||||||||||||||||||||||||
9.86 | 3,030 | 1.85 | 0.92 | 1.98 | 0.79 | 143 | ||||||||||||||||||||||||||||||
(1.41 | ) | 4,787 | 1.85 | 0.15 | 1.96 | 0.04 | 12 | |||||||||||||||||||||||||||||
13.61 | 5,528 | 1.81 | 0.60 | 1.96 | 0.45 | 147 | ||||||||||||||||||||||||||||||
7.53 | 5,890 | 1.80 | 0.55 | 1.94 | 0.41 | 110 | ||||||||||||||||||||||||||||||
(29.68 | )% | $ | 342 | 1.35 | % | 3.11 | % | 1.55 | % | 2.91 | % | 143 | % | |||||||||||||||||||||||
10.82 | 33 | 1.35 | 1.54 | 1.49 | 1.40 | 144 | ||||||||||||||||||||||||||||||
10.49 | 23 | 1.35 | 1.38 | 1.61 | 1.12 | 143 | ||||||||||||||||||||||||||||||
(1.40 | ) | 1 | 1.35 | 0.65 | 1.61 | 0.39 | 12 | |||||||||||||||||||||||||||||
14.16 | 1 | 1.31 | 1.06 | 1.61 | 0.76 | 147 | ||||||||||||||||||||||||||||||
8.22 | 1 | 1.05 | 1.39 | 1.19 | 1.25 | 110 | ||||||||||||||||||||||||||||||
(29.30 | )% | $ | 107,807 | 0.85 | % | 3.34 | % | 1.05 | % | 3.14 | % | 143 | % | |||||||||||||||||||||||
11.21 | 219,450 | 0.85 | 2.05 | 0.99 | 1.91 | 144 | ||||||||||||||||||||||||||||||
10.92 | 247,365 | 0.85 | 1.92 | 0.98 | 1.79 | 143 | ||||||||||||||||||||||||||||||
(1.31 | ) | 254,534 | 0.85 | 1.15 | 0.96 | 1.04 | 12 | |||||||||||||||||||||||||||||
14.76 | 262,557 | 0.81 | 1.60 | 0.96 | 1.45 | 147 | ||||||||||||||||||||||||||||||
8.62 | 283,005 | 0.80 | 1.55 | 0.94 | 1.41 | 110 | ||||||||||||||||||||||||||||||
First American Funds 2008 Annual Report 97
Table of Contents
Financial Highlights For a share outstanding throughout the indicated periods.
Realized and | |||||||||||||||||||||||||||||||||||||||||
Net Asset | Unrealized | Distributions | Net Asset | ||||||||||||||||||||||||||||||||||||||
Value | Net | Gains | Total from | from Net | Distributions | Value | |||||||||||||||||||||||||||||||||||
Beginning | Investment | (Losses) on | Investment | Investment | from Net | End of | |||||||||||||||||||||||||||||||||||
of Period | Income | Investments | Operations | Income | Realized Gains | Total Distributions | Period | ||||||||||||||||||||||||||||||||||
Equity Income Fund1 | |||||||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||||||
20082 | $ | 16.43 | $ | 0.33 | $ | (5.28 | ) | $ | (4.95 | ) | $ | (0.29 | ) | $ | (1.10 | ) | $ | (1.39 | ) | $ | 10.09 | ||||||||||||||||||||
20072 | 15.90 | 0.29 | 1.96 | 2.25 | (0.29 | ) | (1.43 | ) | (1.72 | ) | 16.43 | ||||||||||||||||||||||||||||||
20062 | 13.67 | 0.20 | 2.32 | 2.52 | (0.21 | ) | (0.08 | ) | (0.29 | ) | 15.90 | ||||||||||||||||||||||||||||||
20053 | 13.89 | 0.01 | (0.22 | ) | (0.21 | ) | (0.01 | ) | — | (0.01 | ) | 13.67 | |||||||||||||||||||||||||||||
20054 | 12.77 | 0.20 | 1.15 | 1.35 | (0.22 | ) | (0.01 | ) | (0.23 | ) | 13.89 | ||||||||||||||||||||||||||||||
20044 | 11.56 | 0.18 | 1.23 | 1.41 | (0.20 | ) | — | (0.20 | ) | 12.77 | |||||||||||||||||||||||||||||||
Class B | |||||||||||||||||||||||||||||||||||||||||
20082 | $ | 16.23 | $ | 0.22 | $ | (5.19 | ) | $ | (4.97 | ) | $ | (0.20 | ) | $ | (1.10 | ) | $ | (1.30 | ) | $ | 9.96 | ||||||||||||||||||||
20072 | 15.75 | 0.17 | 1.94 | 2.11 | (0.20 | ) | (1.43 | ) | (1.63 | ) | 16.23 | ||||||||||||||||||||||||||||||
20062 | 13.57 | 0.09 | 2.30 | 2.39 | (0.13 | ) | (0.08 | ) | (0.21 | ) | 15.75 | ||||||||||||||||||||||||||||||
20053 | 13.79 | — | (0.22 | ) | (0.22 | ) | — | — | — | 13.57 | |||||||||||||||||||||||||||||||
20054 | 12.68 | 0.10 | 1.14 | 1.24 | (0.12 | ) | (0.01 | ) | (0.13 | ) | 13.79 | ||||||||||||||||||||||||||||||
20044 | 11.49 | 0.08 | 1.22 | 1.30 | (0.11 | ) | — | (0.11 | ) | 12.68 | |||||||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||||||
20082 | $ | 16.26 | $ | 0.22 | $ | (5.20 | ) | $ | (4.98 | ) | $ | (0.20 | ) | $ | (1.10 | ) | $ | (1.30 | ) | $ | 9.98 | ||||||||||||||||||||
20072 | 15.78 | 0.17 | 1.94 | 2.11 | (0.20 | ) | (1.43 | ) | (1.63 | ) | 16.26 | ||||||||||||||||||||||||||||||
20062 | 13.59 | 0.10 | 2.30 | 2.40 | (0.13 | ) | (0.08 | ) | (0.21 | ) | 15.78 | ||||||||||||||||||||||||||||||
20053 | 13.81 | — | (0.22 | ) | (0.22 | ) | — | — | — | 13.59 | |||||||||||||||||||||||||||||||
20054 | 12.70 | 0.11 | 1.13 | 1.24 | (0.12 | ) | (0.01 | ) | (0.13 | ) | 13.81 | ||||||||||||||||||||||||||||||
20044 | 11.51 | 0.08 | 1.22 | 1.30 | (0.11 | ) | — | (0.11 | ) | 12.70 | |||||||||||||||||||||||||||||||
Class R5 | |||||||||||||||||||||||||||||||||||||||||
20082 | $ | 16.41 | $ | 0.29 | $ | (5.26 | ) | $ | (4.97 | ) | $ | (0.26 | ) | $ | (1.10 | ) | $ | (1.36 | ) | $ | 10.08 | ||||||||||||||||||||
20072 | 15.88 | 0.23 | 1.98 | 2.21 | (0.25 | ) | (1.43 | ) | (1.68 | ) | 16.41 | ||||||||||||||||||||||||||||||
20062 | 13.66 | 0.17 | 2.31 | 2.48 | (0.18 | ) | (0.08 | ) | (0.26 | ) | 15.88 | ||||||||||||||||||||||||||||||
20053 | 13.88 | 0.01 | (0.23 | ) | (0.22 | ) | — | — | — | 13.66 | |||||||||||||||||||||||||||||||
20054 | 12.78 | 0.11 | 1.20 | 1.31 | (0.20 | ) | (0.01 | ) | (0.21 | ) | 13.88 | ||||||||||||||||||||||||||||||
20044 | 11.56 | 0.19 | 1.22 | 1.41 | (0.19 | ) | — | (0.19 | ) | 12.78 | |||||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||||||
20082 | $ | 16.55 | $ | 0.36 | $ | (5.30 | ) | $ | (4.94 | ) | $ | (0.33 | ) | $ | (1.10 | ) | $ | (1.43 | ) | $ | 10.18 | ||||||||||||||||||||
20072 | 16.00 | 0.33 | 1.98 | 2.31 | (0.33 | ) | (1.43 | ) | (1.76 | ) | 16.55 | ||||||||||||||||||||||||||||||
20062 | 13.76 | 0.24 | 2.33 | 2.57 | (0.25 | ) | (0.08 | ) | (0.33 | ) | 16.00 | ||||||||||||||||||||||||||||||
20053 | 13.98 | 0.01 | (0.21 | ) | (0.20 | ) | (0.01 | ) | (0.01 | ) | (0.02 | ) | 13.76 | ||||||||||||||||||||||||||||
20054 | 12.85 | 0.24 | 1.15 | 1.39 | (0.25 | ) | (0.01 | ) | (0.26 | ) | 13.98 | ||||||||||||||||||||||||||||||
20044 | 11.63 | 0.21 | 1.24 | 1.45 | (0.23 | ) | — | (0.23 | ) | 12.85 | |||||||||||||||||||||||||||||||
1 | Per share data calculated using average shares outstanding method. | |
2 | For the period November 1 to October 31 in the fiscal year indicated. | |
3 | For the period October 1, 2005 to October 31, 2005. Effective October 1, 2005, the fund’s fiscal year end was changed from September 30 to October 31. All ratios for the period have been annualized, except total return and portfolio turnover. | |
4 | For the period October 1 to September 30 in the fiscal year indicated. | |
5 | Prior to July 1, 2004, Class R shares were named Class S shares. | |
6 | Total return does not include sales charges. Total return would have been lower had certain expenses not been waived. |
The accompanying notes are an integral part of the financial statements.
98 First American Funds 2008 Annual Report
Table of Contents
Ratio of Net | Ratio of | Ratio of Net | ||||||||||||||||||||||||||||||||||
Investment | Expenses | Investment | ||||||||||||||||||||||||||||||||||
Ratio of | Income | to Average | Income (Loss) | |||||||||||||||||||||||||||||||||
Net Assets | Expenses to | (Loss) | Net Assets | to Average | Portfolio | |||||||||||||||||||||||||||||||
Total | End of | Average | to Average | (Excluding | Net Assets (Excluding | Turnover | ||||||||||||||||||||||||||||||
Return6 | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | ||||||||||||||||||||||||||||||
(32.51 | )% | $ | 100,824 | 1.17 | % | 2.45 | % | 1.17 | % | 2.45 | % | 32 | % | |||||||||||||||||||||||
15.24 | 179,379 | 1.16 | 1.83 | 1.16 | 1.83 | 20 | ||||||||||||||||||||||||||||||
18.66 | 171,814 | 1.18 | 1.40 | 1.18 | 1.40 | 23 | ||||||||||||||||||||||||||||||
(1.53 | ) | 171,998 | 1.20 | 0.70 | 1.20 | 0.70 | — | |||||||||||||||||||||||||||||
10.65 | 176,878 | 1.16 | 1.51 | 1.19 | 1.48 | 27 | ||||||||||||||||||||||||||||||
12.26 | 184,381 | 1.15 | 1.39 | 1.19 | 1.35 | 12 | ||||||||||||||||||||||||||||||
(32.95 | )% | $ | 9,113 | 1.92 | % | 1.69 | % | 1.92 | % | 1.69 | % | 32 | % | |||||||||||||||||||||||
14.40 | 16,893 | 1.91 | 1.09 | 1.91 | 1.09 | 20 | ||||||||||||||||||||||||||||||
17.76 | 19,845 | 1.93 | 0.65 | 1.93 | 0.65 | 23 | ||||||||||||||||||||||||||||||
(1.60 | ) | 21,003 | 1.95 | (0.05 | ) | 1.95 | (0.05 | ) | — | |||||||||||||||||||||||||||
9.86 | 21,639 | 1.91 | 0.78 | 1.94 | 0.75 | 27 | ||||||||||||||||||||||||||||||
11.37 | 23,869 | 1.90 | 0.65 | 1.94 | 0.61 | 12 | ||||||||||||||||||||||||||||||
(32.95 | )% | $ | 4,625 | 1.92 | % | 1.69 | % | 1.92 | % | 1.69 | % | 32 | % | |||||||||||||||||||||||
14.37 | 9,241 | 1.91 | 1.09 | 1.91 | 1.09 | 20 | ||||||||||||||||||||||||||||||
17.80 | 11,225 | 1.93 | 0.68 | 1.93 | 0.68 | 23 | ||||||||||||||||||||||||||||||
(1.59 | ) | 15,313 | 1.95 | (0.05 | ) | 1.95 | (0.05 | ) | — | |||||||||||||||||||||||||||
9.84 | 16,128 | 1.91 | 0.79 | 1.94 | 0.76 | 27 | ||||||||||||||||||||||||||||||
11.34 | 19,300 | 1.90 | 0.66 | 1.94 | 0.62 | 12 | ||||||||||||||||||||||||||||||
(32.64 | )% | $ | 535 | 1.42 | % | 2.20 | % | 1.42 | % | 2.20 | % | 32 | % | |||||||||||||||||||||||
14.98 | 940 | 1.41 | 1.48 | 1.41 | 1.48 | 20 | ||||||||||||||||||||||||||||||
18.33 | 511 | 1.43 | 1.14 | 1.57 | 1.00 | 23 | ||||||||||||||||||||||||||||||
(1.55 | ) | 418 | 1.45 | 0.45 | 1.60 | 0.30 | — | |||||||||||||||||||||||||||||
10.33 | 415 | 1.41 | 0.83 | 1.59 | 0.65 | 27 | ||||||||||||||||||||||||||||||
12.18 | 1 | 1.15 | 1.52 | 1.19 | 1.48 | 12 | ||||||||||||||||||||||||||||||
(32.29 | )% | $ | 574,162 | 0.92 | % | 2.70 | % | 0.92 | % | 2.70 | % | 32 | % | |||||||||||||||||||||||
15.54 | 1,061,433 | 0.91 | 2.09 | 0.91 | 2.09 | 20 | ||||||||||||||||||||||||||||||
18.89 | 1,129,971 | 0.93 | 1.65 | 0.93 | 1.65 | 23 | ||||||||||||||||||||||||||||||
(1.50 | ) | 1,169,267 | 0.95 | 0.95 | 0.95 | 0.95 | — | |||||||||||||||||||||||||||||
10.94 | 1,206,483 | 0.91 | 1.80 | 0.94 | 1.77 | 27 | ||||||||||||||||||||||||||||||
12.54 | 1,404,431 | 0.90 | 1.65 | 0.94 | 1.61 | 12 | ||||||||||||||||||||||||||||||
First American Funds 2008 Annual Report 99
Table of Contents
Financial Highlights For a share outstanding throughout the indicated periods.
Realized and | |||||||||||||||||||||||||||||||||||||||||
Net Asset | Unrealized | Distributions | Net Asset | ||||||||||||||||||||||||||||||||||||||
Value | Net | Gains | Total from | from Net | Distributions | Value | |||||||||||||||||||||||||||||||||||
Beginning | Investment | (Losses) on | Investment | Investment | from Net | Total | End of | ||||||||||||||||||||||||||||||||||
of Period | Income (Loss) | Investments | Operations | Income | Realized Gains | Distributions | Period | ||||||||||||||||||||||||||||||||||
Global Infrastructure Fund1 | |||||||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||||||
20082 | $ | 10.00 | $ | 0.05 | $ | (3.62 | ) | $ | (3.57 | ) | $ | — | $ | — | $ | — | $ | 6.43 | |||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||||||
20082 | $ | 10.00 | $ | 0.16 | $ | (3.73 | ) | $ | (3.57 | ) | $ | — | $ | — | $ | — | $ | 6.43 | |||||||||||||||||||||||
International Fund1 | |||||||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||||||
20083 | $ | 17.15 | $ | 0.26 | $ | (7.14 | ) | $ | (6.88 | ) | $ | (0.14 | ) | $ | (1.45 | ) | $ | (1.59 | ) | $ | 8.68 | ||||||||||||||||||||
20073 | 14.80 | 0.15 | 2.59 | 2.74 | (0.13 | ) | (0.26 | ) | (0.39 | ) | 17.15 | ||||||||||||||||||||||||||||||
20063 | 12.01 | 0.12 | 2.80 | 2.92 | (0.13 | ) | — | (0.13 | ) | 14.80 | |||||||||||||||||||||||||||||||
20054 | 12.24 | 0.01 | (0.24 | ) | (0.23 | ) | — | — | — | 12.01 | |||||||||||||||||||||||||||||||
20055 | 10.19 | 0.09 | 2.02 | 2.11 | (0.06 | ) | — | (0.06 | ) | 12.24 | |||||||||||||||||||||||||||||||
20045 | 8.99 | 0.03 | 1.22 | 1.25 | (0.05 | ) | — | (0.05 | ) | 10.19 | |||||||||||||||||||||||||||||||
Class B | |||||||||||||||||||||||||||||||||||||||||
20083 | $ | 15.78 | $ | 0.14 | $ | (6.52 | ) | $ | (6.38 | ) | $ | (0.03 | ) | $ | (1.45 | ) | $ | (1.48 | ) | $ | 7.92 | ||||||||||||||||||||
20073 | 13.65 | 0.03 | 2.39 | 2.42 | (0.03 | ) | (0.26 | ) | (0.29 | ) | 15.78 | ||||||||||||||||||||||||||||||
20063 | 11.09 | 0.02 | 2.58 | 2.60 | (0.04 | ) | — | (0.04 | ) | 13.65 | |||||||||||||||||||||||||||||||
20054 | 11.31 | — | (0.22 | ) | (0.22 | ) | — | — | — | 11.09 | |||||||||||||||||||||||||||||||
20055 | 9.43 | — | 1.88 | 1.88 | — | — | — | 11.31 | |||||||||||||||||||||||||||||||||
20045 | 8.34 | (0.05 | ) | 1.14 | 1.09 | — | — | — | 9.43 | ||||||||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||||||
20083 | $ | 16.36 | $ | 0.15 | $ | (6.79 | ) | $ | (6.64 | ) | $ | (0.02 | ) | $ | (1.45 | ) | $ | (1.47 | ) | $ | 8.25 | ||||||||||||||||||||
20073 | 14.13 | 0.03 | 2.48 | 2.51 | (0.02 | ) | (0.26 | ) | (0.28 | ) | 16.36 | ||||||||||||||||||||||||||||||
20063 | 11.47 | 0.02 | 2.67 | 2.69 | (0.03 | ) | — | (0.03 | ) | 14.13 | |||||||||||||||||||||||||||||||
20054 | 11.70 | — | (0.23 | ) | (0.23 | ) | — | — | — | 11.47 | |||||||||||||||||||||||||||||||
20055 | 9.76 | — | 1.94 | 1.94 | — | — | — | 11.70 | |||||||||||||||||||||||||||||||||
20045 | 8.63 | (0.05 | ) | 1.18 | 1.13 | — | — | — | 9.76 | ||||||||||||||||||||||||||||||||
Class R6 | |||||||||||||||||||||||||||||||||||||||||
20083 | $ | 17.17 | $ | 0.19 | $ | (7.10 | ) | $ | (6.91 | ) | $ | (0.14 | ) | $ | (1.45 | ) | $ | (1.59 | ) | $ | 8.67 | ||||||||||||||||||||
20073 | 14.81 | 0.10 | 2.61 | 2.71 | (0.09 | ) | (0.26 | ) | (0.35 | ) | 17.17 | ||||||||||||||||||||||||||||||
20063 | 11.94 | 0.05 | 2.82 | 2.87 | — | — | — | 14.81 | |||||||||||||||||||||||||||||||||
20054 | 12.17 | (0.02 | ) | (0.21 | ) | (0.23 | ) | — | — | — | 11.94 | ||||||||||||||||||||||||||||||
20055 | 10.11 | 0.09 | 1.97 | 2.06 | — | — | — | 12.17 | |||||||||||||||||||||||||||||||||
20045 | 8.98 | (0.01 | ) | 1.19 | 1.18 | (0.05 | ) | — | (0.05 | ) | 10.11 | ||||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||||||
20083 | $ | 17.38 | $ | 0.30 | $ | (7.24 | ) | $ | (6.94 | ) | $ | (0.18 | ) | $ | (1.45 | ) | $ | (1.63 | ) | $ | 8.81 | ||||||||||||||||||||
20073 | 14.99 | 0.19 | 2.62 | 2.81 | (0.16 | ) | (0.26 | ) | (0.42 | ) | 17.38 | ||||||||||||||||||||||||||||||
20063 | 12.16 | 0.16 | 2.83 | 2.99 | (0.16 | ) | — | (0.16 | ) | 14.99 | |||||||||||||||||||||||||||||||
20054 | 12.39 | 0.01 | (0.24 | ) | (0.23 | ) | — | — | — | 12.16 | |||||||||||||||||||||||||||||||
20055 | 10.31 | 0.12 | 2.05 | 2.17 | (0.09 | ) | — | (0.09 | ) | 12.39 | |||||||||||||||||||||||||||||||
20045 | 9.10 | 0.06 | 1.23 | 1.29 | (0.08 | ) | — | (0.08 | ) | 10.31 | |||||||||||||||||||||||||||||||
1 | Per share data calculated using average shares outstanding method. | |
2 | Commenced operations on December 17, 2007. All ratios for the period ended October 31, 2008 have been annualized, except total return and portfolio turnover. | |
3 | For the period November 1 to October 31 in the fiscal year indicated. | |
4 | For the period October 1, 2005 to October 31, 2005. Effective October 1, 2005, the fund’s fiscal year end was changed from September 30 to October 31. All ratios for the period have been annualized, except total return and portfolio turnover. | |
5 | For the period October 1 to September 30 in the year indicated. | |
6 | Prior to July 1, 2004, Class R shares were named Class S shares, which had lower fees and expenses. | |
7 | Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived. |
The accompanying notes are an integral part of the financial statements.
100 First American Funds 2008 Annual Report
Table of Contents
Ratio of Net | ||||||||||||||||||||||||||||||||||||
Ratio of Net | Ratio of | Investment | ||||||||||||||||||||||||||||||||||
Investment | Expenses | Income (Loss) | ||||||||||||||||||||||||||||||||||
Ratio of | Income | to Average | to Average | |||||||||||||||||||||||||||||||||
Net Assets | Expenses to | (Loss) | Net Assets | Net Assets | Portfolio | |||||||||||||||||||||||||||||||
Total | End of | Average | to Average | (Excluding | (Excluding | Turnover | ||||||||||||||||||||||||||||||
Return7 | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | ||||||||||||||||||||||||||||||
(35.70 | )% | $ | 4,022 | 1.25 | % | 0.80 | % | 4.16 | % | (2.11 | )% | 304 | % | |||||||||||||||||||||||
(35.70 | )% | $ | 17,221 | 0.99 | % | 2.18 | % | 3.90 | % | (0.73 | )% | 304 | % | |||||||||||||||||||||||
(43.82 | )% | $ | 25,342 | 1.49 | % | 1.92 | % | 1.54 | % | 1.87 | % | 18 | % | |||||||||||||||||||||||
18.92 | 56,705 | 1.49 | 0.97 | 1.53 | 0.93 | 14 | ||||||||||||||||||||||||||||||
24.50 | 52,489 | 1.51 | 0.89 | 1.54 | 0.86 | 17 | ||||||||||||||||||||||||||||||
(1.88 | ) | 48,439 | 1.51 | 0.58 | 1.55 | 0.54 | — | |||||||||||||||||||||||||||||
20.80 | 48,851 | 1.56 | 0.77 | 1.61 | 0.72 | 74 | ||||||||||||||||||||||||||||||
13.91 | 44,851 | 1.60 | 0.31 | 1.64 | 0.27 | 77 | ||||||||||||||||||||||||||||||
(44.19 | )% | $ | 2,499 | 2.24 | % | 1.16 | % | 2.29 | % | 1.11 | % | 18 | % | |||||||||||||||||||||||
18.05 | 6,668 | 2.24 | 0.22 | 2.28 | 0.18 | 14 | ||||||||||||||||||||||||||||||
23.50 | 7,172 | 2.26 | 0.15 | 2.29 | 0.12 | 17 | ||||||||||||||||||||||||||||||
(1.95 | ) | 6,632 | 2.26 | (0.17 | ) | 2.30 | (0.21 | ) | — | |||||||||||||||||||||||||||
19.94 | 6,819 | 2.31 | — | 2.36 | (0.05 | ) | 74 | |||||||||||||||||||||||||||||
13.12 | 7,371 | 2.35 | (0.48 | ) | 2.39 | (0.52 | ) | 77 | ||||||||||||||||||||||||||||
(44.21 | )% | $ | 3,232 | 2.24 | % | 1.20 | % | 2.29 | % | 1.15 | % | 18 | % | |||||||||||||||||||||||
18.09 | 7,173 | 2.24 | 0.20 | 2.28 | 0.16 | 14 | ||||||||||||||||||||||||||||||
23.53 | 8,049 | 2.26 | 0.16 | 2.29 | 0.13 | 17 | ||||||||||||||||||||||||||||||
(1.97 | ) | 7,520 | 2.26 | (0.17 | ) | 2.30 | (0.21 | ) | — | |||||||||||||||||||||||||||
19.88 | 7,915 | 2.31 | (0.01 | ) | 2.36 | (0.06 | ) | 74 | ||||||||||||||||||||||||||||
13.14 | 8,542 | 2.35 | (0.52 | ) | 2.39 | (0.56 | ) | 77 | ||||||||||||||||||||||||||||
(43.94 | )% | $ | 2 | 1.74 | % | 1.40 | % | 1.79 | % | 1.35 | % | 18 | % | |||||||||||||||||||||||
18.66 | 4 | 1.74 | 0.60 | 1.78 | 0.56 | 14 | ||||||||||||||||||||||||||||||
24.04 | 1 | 1.76 | 0.39 | 1.91 | 0.24 | 17 | ||||||||||||||||||||||||||||||
(1.89 | ) | 1 | 1.76 | 0.33 | 1.95 | 0.14 | — | |||||||||||||||||||||||||||||
20.38 | 163 | 1.81 | 0.77 | 2.01 | 0.57 | 74 | ||||||||||||||||||||||||||||||
13.16 | 1 | 1.60 | (0.11 | ) | 1.64 | (0.15 | ) | 77 | ||||||||||||||||||||||||||||
(43.68 | )% | $ | 658,276 | 1.24 | % | 2.19 | % | 1.29 | % | 2.14 | % | 18 | % | |||||||||||||||||||||||
19.23 | 1,670,810 | 1.24 | 1.21 | 1.28 | 1.17 | 14 | ||||||||||||||||||||||||||||||
24.81 | 1,738,254 | 1.26 | 1.16 | 1.29 | 1.13 | 17 | ||||||||||||||||||||||||||||||
(1.86 | ) | 1,516,510 | 1.26 | 0.83 | 1.30 | 0.79 | — | |||||||||||||||||||||||||||||
21.12 | 1,523,057 | 1.31 | 1.07 | 1.36 | 1.02 | 74 | ||||||||||||||||||||||||||||||
14.13 | 1,145,409 | 1.35 | 0.59 | 1.39 | 0.55 | 77 | ||||||||||||||||||||||||||||||
First American Funds 2008 Annual Report 101
Table of Contents
Financial Highlights For a share outstanding throughout the indicated periods.
Net Asset | Realized and | Distributions | Net Asset | ||||||||||||||||||||||||||||||||||||||
Value | Net | Unrealized | Total from | from Net | Distributions | Value | |||||||||||||||||||||||||||||||||||
Beginning | Investment | Gains (Losses) on | Investment | Investment | from Net | Total | End of | ||||||||||||||||||||||||||||||||||
of Period | Income | Investments | Operations | Income | Realized Gains | Distributions | Period | ||||||||||||||||||||||||||||||||||
International Select Fund1 | |||||||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||||||
20082 | $ | 12.15 | $ | 0.15 | $ | (5.52 | ) | $ | (5.37 | ) | $ | (0.06 | ) | $ | (0.19 | ) | $ | (0.25 | ) | $ | 6.53 | ||||||||||||||||||||
20073 | 10.00 | 0.09 | 2.07 | 2.16 | (0.01 | ) | — | (0.01 | ) | 12.15 | |||||||||||||||||||||||||||||||
Class B | |||||||||||||||||||||||||||||||||||||||||
20082 | $ | 12.07 | $ | 0.08 | $ | (5.47 | ) | $ | (5.39 | ) | $ | (0.03 | ) | $ | (0.19 | ) | $ | (0.22 | ) | $ | 6.46 | ||||||||||||||||||||
20073 | 10.00 | 0.02 | 2.05 | 2.07 | — | — | — | 12.07 | |||||||||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||||||
20082 | $ | 12.07 | $ | 0.09 | $ | (5.48 | ) | $ | (5.39 | ) | $ | (0.03 | ) | $ | (0.19 | ) | $ | (0.22 | ) | $ | 6.46 | ||||||||||||||||||||
20073 | 10.00 | 0.03 | 2.04 | 2.07 | — | — | — | 12.07 | |||||||||||||||||||||||||||||||||
Class R | |||||||||||||||||||||||||||||||||||||||||
20082 | $ | 12.12 | $ | 0.08 | $ | (5.46 | ) | $ | (5.38 | ) | $ | (0.03 | ) | $ | (0.19 | ) | $ | (0.22 | ) | $ | 6.52 | ||||||||||||||||||||
20073 | 10.00 | 0.07 | 2.06 | 2.13 | (0.01 | ) | — | (0.01 | ) | 12.12 | |||||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||||||
20082 | $ | 12.17 | $ | 0.17 | $ | (5.52 | ) | $ | (5.35 | ) | $ | (0.08 | ) | $ | (0.19 | ) | $ | (0.27 | ) | $ | 6.55 | ||||||||||||||||||||
20073 | �� | 10.00 | 0.13 | 2.05 | 2.18 | (0.01 | ) | — | (0.01 | ) | 12.17 | ||||||||||||||||||||||||||||||
1 | Per share data calculated using average shares outstanding method. | |
2 | For the period November 1 to October 31 in the year indicated. | |
3 | Commenced operations on December 21, 2006. All ratios for the period ended October 31, 2007 have been annualized, except total return and portfolio turnover. | |
4 | Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived. |
The accompanying notes are an integral part of the financial statements.
102 First American Funds 2008 Annual Report
Table of Contents
Ratio of Net | ||||||||||||||||||||||||||||||||||||
Ratio of | Investment | |||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses | Income (Loss) | ||||||||||||||||||||||||||||||||||
Ratio of | Investment | to Average | to Average | |||||||||||||||||||||||||||||||||
Net Assets | Expenses to | Income | Net Assets | Net Assets | Portfolio | |||||||||||||||||||||||||||||||
Total | End of | Average | to Average | (Excluding | (Excluding | Turnover | ||||||||||||||||||||||||||||||
Return4 | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | ||||||||||||||||||||||||||||||
(45.00 | )% | $ | 1,904 | 1.49 | % | 1.52 | % | 1.70 | % | 1.31 | % | 63 | % | |||||||||||||||||||||||
21.58 | 3,228 | 1.49 | 0.95 | 1.89 | 0.55 | 45 | ||||||||||||||||||||||||||||||
(45.37 | )% | $ | 257 | 2.24 | % | 0.79 | % | 2.45 | % | 0.58 | % | 63 | % | |||||||||||||||||||||||
20.75 | 324 | 2.24 | 0.24 | 2.64 | (0.16 | ) | 45 | |||||||||||||||||||||||||||||
(45.39 | )% | $ | 226 | 2.24 | % | 0.92 | % | 2.45 | % | 0.71 | % | 63 | % | |||||||||||||||||||||||
20.75 | 287 | 2.24 | 0.30 | 2.64 | (0.10 | ) | 45 | |||||||||||||||||||||||||||||
(45.10 | )% | $ | 48 | 1.74 | % | 0.90 | % | 1.95 | % | 0.69 | % | 63 | % | |||||||||||||||||||||||
21.27 | 17 | 1.74 | 0.77 | 2.14 | 0.37 | 45 | ||||||||||||||||||||||||||||||
(44.86 | )% | $ | 249,805 | 1.24 | % | 1.72 | % | 1.45 | % | 1.51 | % | 63 | % | |||||||||||||||||||||||
21.78 | 343,161 | 1.24 | 1.36 | 1.64 | 0.96 | 45 | ||||||||||||||||||||||||||||||
First American Funds 2008 Annual Report 103
Table of Contents
Financial Highlights For a share outstanding throughout the indicated periods.
Realized and | ||||||||||||||||||||||||||||||||||||||||||||||
Net Asset | Unrealized | Distributions | Net Asset | |||||||||||||||||||||||||||||||||||||||||||
Value | Net | Gains | Total from | from Net | Distributions | Distributions | Value | |||||||||||||||||||||||||||||||||||||||
Beginning | Investment | (Losses) on | Investment | Investment | from Net | from Return | Total | End of | ||||||||||||||||||||||||||||||||||||||
of Period | Income (Loss) | Investments | Operations | Income | Realized Gains | of Capital | Distributions | Period | ||||||||||||||||||||||||||||||||||||||
Large Cap Growth Opportunities Fund1 | ||||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||
20082 | $ | 36.27 | $ | 0.02 | $ | (11.65 | ) | $ | (11.63 | ) | $ | — | $ | (3.12 | ) | $ | — | $ | (3.12 | ) | $ | 21.52 | ||||||||||||||||||||||||
20072 | 29.58 | (0.05 | ) | 7.08 | 7.03 | — | (0.34 | ) | — | (0.34 | ) | 36.27 | ||||||||||||||||||||||||||||||||||
20062 | 27.86 | (0.02 | ) | 1.74 | 1.72 | — | — | — | — | 29.58 | ||||||||||||||||||||||||||||||||||||
20053 | 28.02 | (0.01 | ) | (0.15 | ) | (0.16 | ) | — | — | — | — | 27.86 | ||||||||||||||||||||||||||||||||||
20054 | 25.00 | (0.01 | ) | 3.08 | 3.07 | (0.04 | ) | — | (0.01 | ) | (0.05 | ) | 28.02 | |||||||||||||||||||||||||||||||||
20044 | 22.84 | (0.03 | ) | 2.20 | 2.17 | (0.01 | ) | — | — | (6) | (0.01 | ) | 25.00 | |||||||||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||||||||||||
20082 | $ | 34.08 | $ | (0.19 | ) | $ | (10.84 | ) | $ | (11.03 | ) | $ | — | $ | (3.12 | ) | $ | — | $ | (3.12 | ) | $ | 19.93 | |||||||||||||||||||||||
20072 | 28.01 | (0.27 | ) | 6.68 | 6.41 | — | (0.34 | ) | — | (0.34 | ) | 34.08 | ||||||||||||||||||||||||||||||||||
20062 | 26.58 | (0.22 | ) | 1.65 | 1.43 | — | — | — | — | 28.01 | ||||||||||||||||||||||||||||||||||||
20053 | 26.75 | (0.03 | ) | (0.14 | ) | (0.17 | ) | — | — | — | — | 26.58 | ||||||||||||||||||||||||||||||||||
20054 | 24.02 | (0.20 | ) | 2.96 | 2.76 | (0.02 | ) | — | (0.01 | ) | (0.03 | ) | 26.75 | |||||||||||||||||||||||||||||||||
20044 | 22.10 | (0.21 | ) | 2.13 | 1.92 | — | — | — | (6) | — | 24.02 | |||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||
20082 | $ | 34.77 | $ | (0.19 | ) | $ | (11.08 | ) | $ | (11.27 | ) | $ | — | $ | (3.12 | ) | $ | — | $ | (3.12 | ) | $ | 20.38 | |||||||||||||||||||||||
20072 | 28.58 | (0.28 | ) | 6.81 | 6.53 | — | (0.34 | ) | — | (0.34 | ) | 34.77 | ||||||||||||||||||||||||||||||||||
20062 | 27.12 | (0.23 | ) | 1.69 | 1.46 | — | — | — | — | 28.58 | ||||||||||||||||||||||||||||||||||||
20053 | 27.29 | (0.03 | ) | (0.14 | ) | (0.17 | ) | — | — | — | — | 27.12 | ||||||||||||||||||||||||||||||||||
20054 | 24.51 | (0.20 | ) | 3.00 | 2.80 | (0.01 | ) | — | (0.01 | ) | (0.02 | ) | 27.29 | |||||||||||||||||||||||||||||||||
20044 | 22.55 | (0.21 | ) | 2.17 | 1.96 | — | — | — | (6) | — | 24.51 | |||||||||||||||||||||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||||||||||||||||||||
20082 | $ | 35.97 | $ | (0.05 | ) | $ | (11.54 | ) | $ | (11.59 | ) | $ | — | $ | (3.12 | ) | $ | — | $ | (3.12 | ) | $ | 21.26 | |||||||||||||||||||||||
20072 | 29.41 | (0.12 | ) | 7.02 | 6.90 | — | (0.34 | ) | — | (0.34 | ) | 35.97 | ||||||||||||||||||||||||||||||||||
20062 | 27.78 | (0.09 | ) | 1.72 | 1.63 | — | — | — | — | 29.41 | ||||||||||||||||||||||||||||||||||||
20053 | 27.94 | (0.02 | ) | (0.14 | ) | (0.16 | ) | — | — | — | — | 27.78 | ||||||||||||||||||||||||||||||||||
20054 | 24.98 | (0.16 | ) | 3.17 | 3.01 | (0.05 | ) | — | — | (6) | (0.05 | ) | 27.94 | |||||||||||||||||||||||||||||||||
20044 | 22.85 | (0.02 | ) | 2.16 | 2.14 | (0.01 | ) | — | — | (6) | (0.01 | ) | 24.98 | |||||||||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||||||||||||
20082 | $ | 37.42 | $ | 0.10 | $ | (12.07 | ) | $ | (11.97 | ) | $ | (0.02 | ) | $ | (3.12 | ) | $ | — | $ | (3.14 | ) | $ | 22.31 | |||||||||||||||||||||||
20072 | 30.48 | 0.03 | 7.30 | 7.33 | (0.05 | ) | (0.34 | ) | — | (0.39 | ) | 37.42 | ||||||||||||||||||||||||||||||||||
20062 | 28.64 | 0.05 | 1.79 | 1.84 | — | — | — | — | 30.48 | |||||||||||||||||||||||||||||||||||||
20053 | 28.79 | (0.01 | ) | (0.14 | ) | (0.15 | ) | — | — | — | — | 28.64 | ||||||||||||||||||||||||||||||||||
20054 | 25.63 | 0.07 | 3.15 | 3.22 | (0.04 | ) | — | (0.02 | ) | (0.06 | ) | 28.79 | ||||||||||||||||||||||||||||||||||
20044 | 23.38 | 0.03 | 2.25 | 2.28 | (0.02 | ) | — | (0.01 | ) | (0.03 | ) | 25.63 | ||||||||||||||||||||||||||||||||||
1 | Per share data calculated using average shares outstanding method. | |
2 | For the period November 1 to October 31 in the fiscal year indicated. | |
3 | For the period October 1, 2005 to October 31, 2005. Effective in 2005, the fund’s fiscal year-end was changed from September 30 to October 31. All ratios for the period have been annualized, except total return and portfolio turnover. | |
4 | For the period October 1 to September 30 in the year indicated. | |
5 | Prior to July 1, 2004, Class R shares were named Class S shares, which had lower fees and expenses. | |
6 | Includes a tax return of capital of less than $0.01. | |
7 | Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived. |
The accompanying notes are an integral part of the financial statements.
104 First American Funds 2008 Annual Report
Table of Contents
Ratio of Net | ||||||||||||||||||||||||||||||||||||
Ratio of Net | Ratio of | Investment | ||||||||||||||||||||||||||||||||||
Investment | Expenses | Income (Loss) | ||||||||||||||||||||||||||||||||||
Ratio of | Income | to Average | to Average | |||||||||||||||||||||||||||||||||
Net Assets | Expenses to | (Loss) | Net Assets | Net Assets | Portfolio | |||||||||||||||||||||||||||||||
Total | End of | Average | to Average | (Excluding | (Excluding | Turnover | ||||||||||||||||||||||||||||||
Return7 | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | ||||||||||||||||||||||||||||||
(34.81 | )% | $ | 53,430 | 1.20 | % | 0.07 | % | 1.20 | % | 0.07 | % | 92 | % | |||||||||||||||||||||||
24.01 | 96,514 | 1.19 | (0.15 | ) | 1.19 | (0.15 | ) | 102 | ||||||||||||||||||||||||||||
6.17 | 90,285 | 1.19 | (0.07 | ) | 1.19 | (0.07 | ) | 94 | ||||||||||||||||||||||||||||
(0.57 | ) | 104,960 | 1.21 | (0.47 | ) | 1.21 | (0.47 | ) | 6 | |||||||||||||||||||||||||||
12.30 | 107,079 | 1.17 | (0.03 | ) | 1.20 | (0.06 | ) | 103 | ||||||||||||||||||||||||||||
9.52 | 112,379 | 1.15 | (0.13 | ) | 1.19 | (0.17 | ) | 113 | ||||||||||||||||||||||||||||
(35.33 | )% | $ | 5,907 | 1.95 | % | (0.68 | )% | 1.95 | % | (0.68 | )% | 92 | % | |||||||||||||||||||||||
23.13 | 11,955 | 1.94 | (0.90 | ) | 1.94 | (0.90 | ) | 102 | ||||||||||||||||||||||||||||
5.38 | 13,990 | 1.94 | (0.82 | ) | 1.94 | (0.82 | ) | 94 | ||||||||||||||||||||||||||||
(0.64 | ) | 19,601 | 1.96 | (1.22 | ) | 1.96 | (1.22 | ) | 6 | |||||||||||||||||||||||||||
11.47 | 20,239 | 1.92 | (0.77 | ) | 1.95 | (0.80 | ) | 103 | ||||||||||||||||||||||||||||
8.69 | 25,633 | 1.90 | (0.87 | ) | 1.94 | (0.91 | ) | 113 | ||||||||||||||||||||||||||||
(35.31 | )% | $ | 4,368 | 1.95 | % | (0.68 | )% | 1.95 | % | (0.68 | )% | 92 | % | |||||||||||||||||||||||
23.09 | 8,506 | 1.94 | (0.90 | ) | 1.94 | (0.90 | ) | 102 | ||||||||||||||||||||||||||||
5.38 | 8,424 | 1.94 | (0.82 | ) | 1.94 | (0.82 | ) | 94 | ||||||||||||||||||||||||||||
(0.62 | ) | 10,739 | 1.96 | (1.22 | ) | 1.96 | (1.22 | ) | 6 | |||||||||||||||||||||||||||
11.44 | 11,147 | 1.92 | (0.78 | ) | 1.95 | (0.81 | ) | 103 | ||||||||||||||||||||||||||||
8.69 | 12,811 | 1.90 | (0.87 | ) | 1.94 | (0.91 | ) | 113 | ||||||||||||||||||||||||||||
(35.00 | )% | $ | 454 | 1.45 | % | (0.18 | )% | 1.45 | % | (0.18 | )% | 92 | % | |||||||||||||||||||||||
23.70 | 566 | 1.44 | (0.39 | ) | 1.44 | (0.39 | ) | 102 | ||||||||||||||||||||||||||||
5.87 | 558 | 1.44 | (0.32 | ) | 1.57 | (0.45 | ) | 94 | ||||||||||||||||||||||||||||
(0.57 | ) | 290 | 1.46 | (0.72 | ) | 1.61 | (0.87 | ) | 6 | |||||||||||||||||||||||||||
12.04 | 290 | 1.42 | (0.57 | ) | 1.60 | (0.75 | ) | 103 | ||||||||||||||||||||||||||||
9.38 | 1 | 1.15 | (0.08 | ) | 1.19 | (0.12 | ) | 113 | ||||||||||||||||||||||||||||
(34.65 | )% | $ | 417,337 | 0.95 | % | 0.32 | % | 0.95 | % | 0.32 | % | 92 | % | |||||||||||||||||||||||
24.32 | 749,865 | 0.94 | 0.11 | 0.94 | 0.11 | 102 | ||||||||||||||||||||||||||||||
6.42 | 793,853 | 0.94 | 0.18 | 0.94 | 0.18 | 94 | ||||||||||||||||||||||||||||||
(0.52 | ) | 849,194 | 0.96 | (0.22 | ) | 0.96 | (0.22 | ) | 6 | |||||||||||||||||||||||||||
12.58 | 849,382 | 0.92 | 0.26 | 0.95 | 0.23 | 103 | ||||||||||||||||||||||||||||||
9.76 | 1,188,261 | 0.90 | 0.13 | 0.94 | 0.09 | 113 | ||||||||||||||||||||||||||||||
First American Funds 2008 Annual Report 105
Table of Contents
Financial Highlights For a share outstanding throughout the indicated periods.
Realized and | |||||||||||||||||||||||||||||||||||||||||
Net Asset | Unrealized | Distributions | Net Asset | ||||||||||||||||||||||||||||||||||||||
Value | Net | Gains | Total from | from Net | Distributions | Value | |||||||||||||||||||||||||||||||||||
Beginning | Investment | (Losses) on | Investment | Investment | from Net | Total | End of | ||||||||||||||||||||||||||||||||||
of Period | Income (Loss) | Investments | Operations | Income | Realized Gains | Distributions | Period | ||||||||||||||||||||||||||||||||||
Large Cap Select Fund1 | |||||||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||||||
20082 | $ | 17.05 | $ | 0.06 | $ | (6.04 | ) | $ | (5.98 | ) | $ | (0.04 | ) | $ | (2.20 | ) | $ | (2.24 | ) | $ | 8.83 | ||||||||||||||||||||
20072 | 15.18 | 0.03 | 2.12 | 2.15 | (0.03 | ) | (0.25 | ) | (0.28 | ) | 17.05 | ||||||||||||||||||||||||||||||
20062 | 14.30 | 0.06 | 1.48 | 1.54 | (0.06 | ) | (0.60 | ) | (0.66 | ) | 15.18 | ||||||||||||||||||||||||||||||
20053 | 14.47 | — | (0.17 | ) | (0.17 | ) | — | — | — | 14.30 | |||||||||||||||||||||||||||||||
20054 | 12.52 | 0.06 | 2.15 | 2.21 | (0.06 | ) | (0.20 | ) | (0.26 | ) | 14.47 | ||||||||||||||||||||||||||||||
20044 | 11.45 | 0.04 | 1.19 | 1.23 | (0.05 | ) | (0.11 | ) | (0.16 | ) | 12.52 | ||||||||||||||||||||||||||||||
Class B | |||||||||||||||||||||||||||||||||||||||||
20082 | $ | 16.69 | $ | (0.03 | ) | $ | (5.88 | ) | $ | (5.91 | ) | $ | — | $ | (2.20 | ) | $ | (2.20 | ) | $ | 8.58 | ||||||||||||||||||||
20072 | 14.94 | (0.09 | ) | 2.09 | 2.00 | — | (0.25 | ) | (0.25 | ) | 16.69 | ||||||||||||||||||||||||||||||
20062 | 14.12 | (0.05 | ) | 1.48 | 1.43 | (0.01 | ) | (0.60 | ) | (0.61 | ) | 14.94 | |||||||||||||||||||||||||||||
20053 | 14.30 | (0.01 | ) | (0.17 | ) | (0.18 | ) | — | — | — | 14.12 | ||||||||||||||||||||||||||||||
20054 | 12.41 | (0.05 | ) | 2.15 | 2.10 | (0.01 | ) | (0.20 | ) | (0.21 | ) | 14.30 | |||||||||||||||||||||||||||||
20044 | 11.41 | (0.06 | ) | 1.18 | 1.12 | (0.01 | ) | (0.11 | ) | (0.12 | ) | 12.41 | |||||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||||||
20082 | $ | 16.69 | $ | (0.03 | ) | $ | (5.90 | ) | $ | (5.93 | ) | $ | — | $ | (2.20 | ) | $ | (2.20 | ) | $ | 8.56 | ||||||||||||||||||||
20072 | 14.95 | (0.09 | ) | 2.08 | 1.99 | — | (0.25 | ) | (0.25 | ) | 16.69 | ||||||||||||||||||||||||||||||
20062 | 14.13 | (0.05 | ) | 1.48 | 1.43 | (0.01 | ) | (0.60 | ) | (0.61 | ) | 14.95 | |||||||||||||||||||||||||||||
20053 | 14.31 | (0.01 | ) | (0.17 | ) | (0.18 | ) | — | — | — | 14.13 | ||||||||||||||||||||||||||||||
20054 | 12.43 | (0.05 | ) | 2.14 | 2.09 | (0.01 | ) | (0.20 | ) | (0.21 | ) | 14.31 | |||||||||||||||||||||||||||||
20044 | 11.42 | (0.06 | ) | 1.19 | 1.13 | (0.01 | ) | (0.11 | ) | (0.12 | ) | 12.43 | |||||||||||||||||||||||||||||
Class R5 | |||||||||||||||||||||||||||||||||||||||||
20082 | $ | 16.97 | $ | 0.03 | $ | (6.00 | ) | $ | (5.97 | ) | $ | (0.02 | ) | $ | (2.20 | ) | $ | (2.22 | ) | $ | 8.78 | ||||||||||||||||||||
20072 | 15.12 | — | 2.11 | 2.11 | (0.01 | ) | (0.25 | ) | (0.26 | ) | 16.97 | ||||||||||||||||||||||||||||||
20062 | 14.26 | 0.01 | 1.49 | 1.50 | (0.04 | ) | (0.60 | ) | (0.64 | ) | 15.12 | ||||||||||||||||||||||||||||||
20053 | 14.43 | (0.01 | ) | (0.16 | ) | (0.17 | ) | — | — | — | 14.26 | ||||||||||||||||||||||||||||||
20054 | 12.49 | 0.02 | 2.15 | 2.17 | (0.03 | ) | (0.20 | ) | (0.23 | ) | 14.43 | ||||||||||||||||||||||||||||||
20044 | 11.44 | 0.02 | 1.18 | 1.20 | (0.04 | ) | (0.11 | ) | (0.15 | ) | 12.49 | ||||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||||||
20082 | $ | 17.10 | $ | 0.09 | $ | (6.05 | ) | $ | (5.96 | ) | $ | (0.07 | ) | $ | (2.20 | ) | $ | (2.27 | ) | $ | 8.87 | ||||||||||||||||||||
20072 | 15.22 | 0.07 | 2.13 | 2.20 | (0.07 | ) | (0.25 | ) | (0.32 | ) | 17.10 | ||||||||||||||||||||||||||||||
20062 | 14.33 | 0.10 | 1.49 | 1.59 | (0.10 | ) | (0.60 | ) | (0.70 | ) | 15.22 | ||||||||||||||||||||||||||||||
20053 | 14.49 | — | (0.16 | ) | (0.16 | ) | — | — | — | 14.33 | |||||||||||||||||||||||||||||||
20054 | 12.53 | 0.09 | 2.16 | 2.25 | (0.09 | ) | (0.20 | ) | (0.29 | ) | 14.49 | ||||||||||||||||||||||||||||||
20044 | 11.45 | 0.07 | 1.19 | 1.26 | (0.07 | ) | (0.11 | ) | (0.18 | ) | 12.53 | ||||||||||||||||||||||||||||||
1 | Per share data calculated using average shares outstanding method. | |
2 | For the period November 1 to October 31 in the fiscal year indicated. | |
3 | For the period October 1, 2005 to October 31, 2005. Effective in 2005, the fund’s fiscal year-end was changed from September 30 to October 31. All ratios for the period have been annualized, except total return and portfolio turnover. | |
4 | For the period October 1 to September 30 in the 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.
106 First American Funds 2008 Annual Report
Table of Contents
Ratio of Net | ||||||||||||||||||||||||||||||||||||
Ratio of Net | Ratio of | Investment | ||||||||||||||||||||||||||||||||||
Investment | Expenses | Income (Loss) | ||||||||||||||||||||||||||||||||||
Ratio of | Income | to Average | to Average | |||||||||||||||||||||||||||||||||
Net Assets | Expenses to | (Loss) | Net Assets | Net Assets | Portfolio | |||||||||||||||||||||||||||||||
Total | End of | Average | to Average | (Excluding | (Excluding | Turnover | ||||||||||||||||||||||||||||||
Return6 | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | ||||||||||||||||||||||||||||||
(39.81 | )% | $ | 3,608 | 1.21 | % | 0.49 | % | 1.21 | % | 0.49 | % | 210 | % | |||||||||||||||||||||||
14.36 | 7,998 | 1.19 | 0.20 | 1.19 | 0.20 | 138 | ||||||||||||||||||||||||||||||
11.07 | 7,152 | 1.20 | 0.41 | 1.20 | 0.41 | 112 | ||||||||||||||||||||||||||||||
(1.17 | ) | 5,682 | 1.19 | (0.20 | ) | 1.19 | (0.20 | ) | 8 | |||||||||||||||||||||||||||
17.83 | 5,299 | 1.17 | 0.41 | 1.22 | 0.36 | 176 | ||||||||||||||||||||||||||||||
10.82 | 714 | 1.15 | 0.30 | 1.21 | 0.24 | 67 | ||||||||||||||||||||||||||||||
(40.24 | )% | $ | 331 | 1.96 | % | (0.26 | )% | 1.96 | % | (0.26 | )% | 210 | % | |||||||||||||||||||||||
13.52 | 664 | 1.94 | (0.55 | ) | 1.94 | (0.55 | ) | 138 | ||||||||||||||||||||||||||||
10.32 | 643 | 1.95 | (0.34 | ) | 1.95 | (0.34 | ) | 112 | ||||||||||||||||||||||||||||
(1.26 | ) | 573 | 1.94 | (0.95 | ) | 1.94 | (0.95 | ) | 8 | |||||||||||||||||||||||||||
17.02 | 567 | 1.92 | (0.36 | ) | 1.97 | (0.41 | ) | 176 | ||||||||||||||||||||||||||||
9.89 | 270 | 1.90 | (0.44 | ) | 1.96 | (0.50 | ) | 67 | ||||||||||||||||||||||||||||
(40.38 | )% | $ | 180 | 1.96 | % | (0.26 | )% | 1.96 | % | (0.26 | )% | 210 | % | |||||||||||||||||||||||
13.45 | 325 | 1.94 | (0.57 | ) | 1.94 | (0.57 | ) | 138 | ||||||||||||||||||||||||||||
10.36 | 248 | 1.95 | (0.35 | ) | 1.95 | (0.35 | ) | 112 | ||||||||||||||||||||||||||||
(1.26 | ) | 180 | 1.94 | (0.95 | ) | 1.94 | (0.95 | ) | 8 | |||||||||||||||||||||||||||
16.91 | 182 | 1.92 | (0.35 | ) | 1.97 | (0.40 | ) | 176 | ||||||||||||||||||||||||||||
9.98 | 59 | 1.90 | (0.45 | ) | 1.96 | (0.51 | ) | 67 | ||||||||||||||||||||||||||||
(39.94 | )% | $ | 20 | 1.46 | % | 0.24 | % | 1.46 | % | 0.24 | % | 210 | % | |||||||||||||||||||||||
14.09 | 37 | 1.44 | 0.02 | 1.44 | 0.02 | 138 | ||||||||||||||||||||||||||||||
10.79 | 118 | 1.45 | 0.08 | 1.57 | (0.04 | ) | 112 | |||||||||||||||||||||||||||||
(1.18 | ) | 2 | 1.44 | (0.45 | ) | 1.59 | (0.60 | ) | 8 | |||||||||||||||||||||||||||
17.54 | 2 | 1.42 | 0.14 | 1.62 | (0.06 | ) | 176 | |||||||||||||||||||||||||||||
10.60 | 1 | 1.32 | 0.18 | 1.38 | 0.12 | 67 | ||||||||||||||||||||||||||||||
(39.63 | )% | $ | 207,904 | 0.96 | % | 0.74 | % | 0.96 | % | 0.74 | % | 210 | % | |||||||||||||||||||||||
14.65 | 449,201 | 0.94 | 0.45 | 0.94 | 0.45 | 138 | ||||||||||||||||||||||||||||||
11.37 | 476,154 | 0.95 | 0.66 | 0.95 | 0.66 | 112 | ||||||||||||||||||||||||||||||
(1.10 | ) | 341,061 | 0.94 | 0.05 | 0.94 | 0.05 | 8 | |||||||||||||||||||||||||||||
18.14 | 329,656 | 0.92 | 0.67 | 0.97 | 0.62 | 176 | ||||||||||||||||||||||||||||||
11.10 | 291,807 | 0.90 | 0.57 | 0.96 | 0.51 | 67 | ||||||||||||||||||||||||||||||
First American Funds 2008 Annual Report 107
Table of Contents
Financial Highlights For a share outstanding throughout the indicated periods.
Realized and | |||||||||||||||||||||||||||||||||||||||||
Net Asset | Unrealized | Distributions | Net Asset | ||||||||||||||||||||||||||||||||||||||
Value | Net | Gains | Total from | from Net | Distributions | Value | |||||||||||||||||||||||||||||||||||
Beginning | Investment | (Losses) on | Investment | Investment | from Net | Total | End of | ||||||||||||||||||||||||||||||||||
of Period | Income (Loss) | Investments | Operations | Income | Realized Gains | Distributions | Period | ||||||||||||||||||||||||||||||||||
Large Cap Value Fund1 | |||||||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||||||
20082 | $ | 22.61 | $ | 0.25 | $ | (7.02 | ) | $ | (6.77 | ) | $ | (0.16 | ) | $ | (2.80 | ) | $ | (2.96 | ) | $ | 12.88 | ||||||||||||||||||||
20072 | 22.12 | 0.23 | 2.19 | 2.42 | (0.24 | ) | (1.69 | ) | (1.93 | ) | 22.61 | ||||||||||||||||||||||||||||||
20062 | 19.56 | 0.21 | 3.19 | 3.40 | (0.21 | ) | (0.63 | ) | (0.84 | ) | 22.12 | ||||||||||||||||||||||||||||||
20053 | 20.06 | — | (0.50 | ) | (0.50 | ) | — | — | — | 19.56 | |||||||||||||||||||||||||||||||
20054 | 17.21 | 0.17 | 2.85 | 3.02 | (0.17 | ) | — | (0.17 | ) | 20.06 | |||||||||||||||||||||||||||||||
20044 | 14.97 | 0.15 | 2.24 | 2.39 | (0.15 | ) | — | (0.15 | ) | 17.21 | |||||||||||||||||||||||||||||||
Class B | |||||||||||||||||||||||||||||||||||||||||
20082 | $ | 21.92 | $ | 0.11 | $ | (6.77 | ) | $ | (6.66 | ) | $ | (0.07 | ) | $ | (2.80 | ) | $ | (2.87 | ) | $ | 12.39 | ||||||||||||||||||||
20072 | 21.54 | 0.07 | 2.12 | 2.19 | (0.12 | ) | (1.69 | ) | (1.81 | ) | 21.92 | ||||||||||||||||||||||||||||||
20062 | 19.12 | 0.06 | 3.11 | 3.17 | (0.12 | ) | (0.63 | ) | (0.75 | ) | 21.54 | ||||||||||||||||||||||||||||||
20053 | 19.62 | (0.01 | ) | (0.49 | ) | (0.50 | ) | — | — | — | 19.12 | ||||||||||||||||||||||||||||||
20054 | 16.87 | 0.03 | 2.78 | 2.81 | (0.06 | ) | — | (0.06 | ) | 19.62 | |||||||||||||||||||||||||||||||
20044 | 14.70 | 0.03 | 2.20 | 2.23 | (0.06 | ) | — | (0.06 | ) | 16.87 | |||||||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||||||
20082 | $ | 22.21 | $ | 0.11 | $ | (6.86 | ) | $ | (6.75 | ) | $ | (0.07 | ) | $ | (2.80 | ) | $ | (2.87 | ) | $ | 12.59 | ||||||||||||||||||||
20072 | 21.81 | 0.07 | 2.14 | 2.21 | (0.12 | ) | (1.69 | ) | (1.81 | ) | 22.21 | ||||||||||||||||||||||||||||||
20062 | 19.35 | 0.06 | 3.15 | 3.21 | (0.12 | ) | (0.63 | ) | (0.75 | ) | 21.81 | ||||||||||||||||||||||||||||||
20053 | 19.85 | (0.01 | ) | (0.49 | ) | (0.50 | ) | — | — | — | 19.35 | ||||||||||||||||||||||||||||||
20054 | 17.07 | 0.03 | 2.81 | 2.84 | (0.06 | ) | — | (0.06 | ) | 19.85 | |||||||||||||||||||||||||||||||
20044 | 14.87 | 0.03 | 2.23 | 2.26 | (0.06 | ) | — | (0.06 | ) | 17.07 | |||||||||||||||||||||||||||||||
Class R5 | |||||||||||||||||||||||||||||||||||||||||
20082 | $ | 22.57 | $ | 0.20 | $ | (6.99 | ) | $ | (6.79 | ) | $ | (0.13 | ) | $ | (2.80 | ) | $ | (2.93 | ) | $ | 12.85 | ||||||||||||||||||||
20072 | 22.10 | 0.17 | 2.17 | 2.34 | (0.18 | ) | (1.69 | ) | (1.87 | ) | 22.57 | ||||||||||||||||||||||||||||||
20062 | 19.55 | 0.12 | 3.23 | 3.35 | (0.17 | ) | (0.63 | ) | (0.80 | ) | 22.10 | ||||||||||||||||||||||||||||||
20053 | 20.06 | (0.01 | ) | (0.50 | ) | (0.51 | ) | — | — | — | 19.55 | ||||||||||||||||||||||||||||||
20054 | 17.22 | 0.12 | 2.85 | 2.97 | (0.13 | ) | — | (0.13 | ) | 20.06 | |||||||||||||||||||||||||||||||
20044 | 14.96 | 0.17 | 2.23 | 2.40 | (0.14 | ) | — | (0.14 | ) | 17.22 | |||||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||||||
20082 | $ | 22.69 | $ | 0.29 | $ | (7.04 | ) | $ | (6.75 | ) | $ | (0.19 | ) | $ | (2.80 | ) | $ | (2.99 | ) | $ | 12.95 | ||||||||||||||||||||
20072 | 22.19 | 0.29 | 2.18 | 2.47 | (0.28 | ) | (1.69 | ) | (1.97 | ) | 22.69 | ||||||||||||||||||||||||||||||
20062 | 19.62 | 0.26 | 3.21 | 3.47 | (0.27 | ) | (0.63 | ) | (0.90 | ) | 22.19 | ||||||||||||||||||||||||||||||
20053 | 20.12 | — | (0.50 | ) | (0.50 | ) | — | — | — | 19.62 | |||||||||||||||||||||||||||||||
20054 | 17.26 | 0.22 | 2.86 | 3.08 | (0.22 | ) | — | (0.22 | ) | 20.12 | |||||||||||||||||||||||||||||||
20044 | 15.01 | 0.20 | 2.24 | 2.44 | (0.19 | ) | — | (0.19 | ) | 17.26 | |||||||||||||||||||||||||||||||
1 | Per share data calculated using average shares outstanding method. | |
2 | For the period November 1 to October 31 in the year indicated. | |
3 | For the period October 1, 2005 to October 31, 2005. Effective in 2005, the fund’s fiscal year-end was changed from September 30 to October 31. All ratios for the period have been annualized, except total return and portfolio turnover. | |
4 | For the period October 1 to September 30 in the year indicated. | |
5 | Prior to July 1, 2004, Class R shares were named Class S shares, which had lower fees and expenses. | |
6 | Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived. |
The accompanying notes are an integral part of the financial statements.
108 First American Funds 2008 Annual Report
Table of Contents
Ratio of Net | Ratio of | Ratio of Net | ||||||||||||||||||||||||||||||||||
Investment | Expenses | Investment | ||||||||||||||||||||||||||||||||||
Ratio of | Income | to Average | Income (Loss) | |||||||||||||||||||||||||||||||||
Net Assets | Expenses to | (Loss) | Net Assets | to Average | Portfolio | |||||||||||||||||||||||||||||||
Total | End of | Average | to Average | (Excluding | Net Assets (Excluding | Turnover | ||||||||||||||||||||||||||||||
Return6 | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | ||||||||||||||||||||||||||||||
(34.00 | )% | $ | 60,870 | 1.19 | % | 1.41 | % | 1.19 | % | 1.41 | % | 90 | % | |||||||||||||||||||||||
11.60 | 113,223 | 1.17 | 1.05 | 1.17 | 1.05 | 81 | ||||||||||||||||||||||||||||||
17.93 | 115,438 | 1.19 | 1.05 | 1.19 | 1.05 | 55 | ||||||||||||||||||||||||||||||
(2.48 | ) | 118,443 | 1.21 | (0.17 | ) | 1.21 | (0.17 | ) | 2 | |||||||||||||||||||||||||||
17.62 | 121,809 | 1.17 | 0.90 | 1.20 | 0.87 | 61 | ||||||||||||||||||||||||||||||
16.01 | 113,683 | 1.15 | 0.91 | 1.19 | 0.87 | 104 | ||||||||||||||||||||||||||||||
(34.51 | )% | $ | 3,750 | 1.94 | % | 0.65 | % | 1.94 | % | 0.65 | % | 90 | % | |||||||||||||||||||||||
10.76 | 7,973 | 1.92 | 0.31 | 1.92 | 0.31 | 81 | ||||||||||||||||||||||||||||||
17.04 | 9,815 | 1.94 | 0.32 | 1.94 | 0.32 | 55 | ||||||||||||||||||||||||||||||
(2.55 | ) | 13,826 | 1.96 | (0.92 | ) | 1.96 | (0.92 | ) | 2 | |||||||||||||||||||||||||||
16.70 | 14,876 | 1.92 | 0.15 | 1.95 | 0.12 | 61 | ||||||||||||||||||||||||||||||
15.19 | 21,829 | 1.90 | 0.19 | 1.94 | 0.15 | 104 | ||||||||||||||||||||||||||||||
(34.46 | )% | $ | 2,643 | 1.94 | % | 0.66 | % | 1.94 | % | 0.66 | % | 90 | % | |||||||||||||||||||||||
10.71 | 4,587 | 1.92 | 0.31 | 1.92 | 0.31 | 81 | ||||||||||||||||||||||||||||||
17.05 | 5,174 | 1.94 | 0.30 | 1.94 | 0.30 | 55 | ||||||||||||||||||||||||||||||
(2.52 | ) | 5,399 | 1.96 | (0.92 | ) | 1.96 | (0.92 | ) | 2 | |||||||||||||||||||||||||||
16.75 | 5,710 | 1.92 | 0.15 | 1.95 | 0.12 | 61 | ||||||||||||||||||||||||||||||
15.21 | 6,344 | 1.90 | 0.18 | 1.94 | 0.14 | 104 | ||||||||||||||||||||||||||||||
(34.13 | )% | $ | 174 | 1.44 | % | 1.18 | % | 1.44 | % | 1.18 | % | 90 | % | |||||||||||||||||||||||
11.25 | 188 | 1.42 | 0.78 | 1.42 | 0.78 | 81 | ||||||||||||||||||||||||||||||
17.63 | 164 | 1.44 | 0.58 | 1.55 | 0.47 | 55 | ||||||||||||||||||||||||||||||
(2.54 | ) | 7 | 1.46 | (0.42 | ) | 1.61 | (0.57 | ) | 2 | |||||||||||||||||||||||||||
17.34 | 7 | 1.42 | 0.61 | 1.60 | 0.43 | 61 | ||||||||||||||||||||||||||||||
16.05 | 1 | 1.15 | 1.00 | 1.19 | 0.96 | 104 | ||||||||||||||||||||||||||||||
(33.80 | )% | $ | 401,006 | 0.94 | % | 1.66 | % | 0.94 | % | 1.66 | % | 90 | % | |||||||||||||||||||||||
11.83 | 726,512 | 0.92 | 1.30 | 0.92 | 1.30 | 81 | ||||||||||||||||||||||||||||||
18.23 | 825,633 | 0.94 | 1.29 | 0.94 | 1.29 | 55 | ||||||||||||||||||||||||||||||
(2.47 | ) | 740,511 | 0.96 | 0.08 | 0.96 | 0.08 | 2 | |||||||||||||||||||||||||||||
17.92 | 764,679 | 0.92 | 1.17 | 0.95 | 1.14 | 61 | ||||||||||||||||||||||||||||||
16.31 | 1,021,197 | 0.90 | 1.17 | 0.94 | 1.13 | 104 | ||||||||||||||||||||||||||||||
First American Funds 2008 Annual Report 109
Table of Contents
Financial Highlights
Realized and | |||||||||||||||||||||||||||||||
Net Asset | Unrealized | Net Asset | |||||||||||||||||||||||||||||
Value | Net | Gains | Total from | Distributions | Value | ||||||||||||||||||||||||||
Beginning | Investment | (Losses) on | Investment | from Net | End of | ||||||||||||||||||||||||||
of Period | Loss | Investments | Operations | Realized Gains | Period | ||||||||||||||||||||||||||
Mid Cap Growth Opportunities Fund1 | |||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||
20082 | $ | 46.57 | $ | (0.16 | ) | $ | (17.86 | ) | $ | (18.02 | ) | $ | (4.67 | ) | $ | 23.88 | |||||||||||||||
20072 | 41.43 | (0.24 | ) | 9.19 | 8.95 | (3.81 | ) | 46.57 | |||||||||||||||||||||||
20062 | 40.77 | (0.11 | ) | 5.04 | 4.93 | (4.27 | ) | 41.43 | |||||||||||||||||||||||
20053 | 41.55 | (0.02 | ) | (0.76 | ) | (0.78 | ) | — | 40.77 | ||||||||||||||||||||||
20054 | 38.19 | (0.24 | ) | 9.65 | 9.41 | (6.05 | ) | 41.55 | |||||||||||||||||||||||
20044 | 33.68 | (0.30 | ) | 5.88 | 5.58 | (1.07 | ) | 38.19 | |||||||||||||||||||||||
Class B | |||||||||||||||||||||||||||||||
20082 | $ | 42.21 | $ | (0.38 | ) | $ | (15.94 | ) | $ | (16.32 | ) | $ | (4.67 | ) | $ | 21.22 | |||||||||||||||
20072 | 38.15 | (0.51 | ) | 8.38 | 7.87 | (3.81 | ) | 42.21 | |||||||||||||||||||||||
20062 | 38.12 | (0.38 | ) | 4.68 | 4.30 | (4.27 | ) | 38.15 | |||||||||||||||||||||||
20053 | 38.87 | (0.05 | ) | (0.70 | ) | (0.75 | ) | — | 38.12 | ||||||||||||||||||||||
20054 | 36.31 | (0.51 | ) | 9.12 | 8.61 | (6.05 | ) | 38.87 | |||||||||||||||||||||||
20044 | 32.30 | (0.55 | ) | 5.63 | 5.08 | (1.07 | ) | 36.31 | |||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||
20082 | $ | 44.03 | $ | (0.40 | ) | $ | (16.70 | ) | $ | (17.10 | ) | $ | (4.67 | ) | $ | 22.26 | |||||||||||||||
20072 | 39.65 | (0.53 | ) | 8.72 | 8.19 | (3.81 | ) | 44.03 | |||||||||||||||||||||||
20062 | 39.46 | (0.40 | ) | 4.86 | 4.46 | (4.27 | ) | 39.65 | |||||||||||||||||||||||
20053 | 40.23 | (0.05 | ) | (0.72 | ) | (0.77 | ) | — | 39.46 | ||||||||||||||||||||||
20054 | 37.40 | (0.53 | ) | 9.41 | 8.88 | (6.05 | ) | 40.23 | |||||||||||||||||||||||
20044 | 33.24 | (0.57 | ) | 5.80 | 5.23 | (1.07 | ) | 37.40 | |||||||||||||||||||||||
Class R5 | |||||||||||||||||||||||||||||||
20082 | $ | 46.11 | $ | (0.24 | ) | $ | (17.64 | ) | $ | (17.88 | ) | $ | (4.67 | ) | $ | 23.56 | |||||||||||||||
20072 | 41.15 | (0.34 | ) | 9.11 | 8.77 | (3.81 | ) | 46.11 | |||||||||||||||||||||||
20062 | 40.61 | (0.23 | ) | 5.04 | 4.81 | (4.27 | ) | 41.15 | |||||||||||||||||||||||
20053 | 41.40 | (0.03 | ) | (0.76 | ) | (0.79 | ) | — | 40.61 | ||||||||||||||||||||||
20054 | 38.15 | (0.31 | ) | 9.61 | 9.30 | (6.05 | ) | 41.40 | |||||||||||||||||||||||
20044 | 33.66 | (0.30 | ) | 5.86 | 5.56 | (1.07 | ) | 38.15 | |||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||
20082 | $ | 49.40 | $ | (0.07 | ) | $ | (19.09 | ) | $ | (19.16 | ) | $ | (4.67 | ) | $ | 25.57 | |||||||||||||||
20072 | 43.62 | (0.14 | ) | 9.73 | 9.59 | (3.81 | ) | 49.40 | |||||||||||||||||||||||
20062 | 42.61 | (0.01 | ) | 5.29 | 5.28 | (4.27 | ) | 43.62 | |||||||||||||||||||||||
20053 | 43.42 | (0.02 | ) | (0.79 | ) | (0.81 | ) | — | 42.61 | ||||||||||||||||||||||
20054 | 39.58 | (0.16 | ) | 10.05 | 9.89 | (6.05 | ) | 43.42 | |||||||||||||||||||||||
20044 | 34.78 | (0.21 | ) | 6.08 | 5.87 | (1.07 | ) | 39.58 | |||||||||||||||||||||||
1 | Per share data calculated using average shares outstanding method. | |
2 | For the period November 1 to October 31 in the year indicated. | |
3 | For the period October 1, 2005 to October 31, 2005. Effective October 1, 2005, the fund’s fiscal year end was changed from September 30 to October 31. All ratios for the period have been annualized, except total return and portfolio turnover. | |
4 | For the period October 1 to September 30 in the year indicated. | |
5 | Prior to July 1, 2004, Class R shares were named Class S shares, which had lower fees and expenses. | |
6 | Total return does not include sales charges. Total return would have been lower had certain expenses not been waived. |
The accompanying notes are an integral part of the financial statements.
110 First American Funds 2008 Annual Report
Table of Contents
Ratio of | Ratio of Net | |||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses | Investment | ||||||||||||||||||||||||||||||||||
Ratio of | Investment | to Average | Loss | |||||||||||||||||||||||||||||||||
Net Assets | Expenses to | Loss | Net Assets | to Average | Portfolio | |||||||||||||||||||||||||||||||
Total | End of | Average | to Average | (Excluding | Net Assets (Excluding | Turnover | ||||||||||||||||||||||||||||||
Return6 | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | ||||||||||||||||||||||||||||||
(42.75 | )% | $ | 209,052 | 1.22 | % | (0.43 | )% | 1.22 | % | (0.43 | )% | 113 | % | |||||||||||||||||||||||
23.36 | 425,995 | 1.21 | (0.56 | ) | 1.21 | (0.56 | ) | 96 | ||||||||||||||||||||||||||||
12.69 | 322,385 | 1.23 | (0.26 | ) | 1.23 | (0.26 | ) | 75 | ||||||||||||||||||||||||||||
(1.88 | ) | 314,830 | 1.23 | (0.72 | ) | 1.23 | (0.72 | ) | 9 | |||||||||||||||||||||||||||
26.25 | 317,906 | 1.21 | (0.62 | ) | 1.24 | (0.65 | ) | 107 | ||||||||||||||||||||||||||||
16.88 | 173,436 | 1.20 | (0.79 | ) | 1.24 | (0.83 | ) | 135 | ||||||||||||||||||||||||||||
(43.18 | )% | $ | 7,241 | 1.97 | % | (1.18 | )% | 1.97 | % | (1.18 | )% | 113 | % | |||||||||||||||||||||||
22.47 | 15,820 | 1.96 | (1.31 | ) | 1.96 | (1.31 | ) | 96 | ||||||||||||||||||||||||||||
11.83 | 15,605 | 1.98 | (1.02 | ) | 1.98 | (1.02 | ) | 75 | ||||||||||||||||||||||||||||
(1.93 | ) | 14,586 | 1.98 | (1.47 | ) | 1.98 | (1.47 | ) | 9 | |||||||||||||||||||||||||||
25.29 | 14,922 | 1.96 | (1.40 | ) | 1.99 | (1.43 | ) | 107 | ||||||||||||||||||||||||||||
16.03 | 10,974 | 1.95 | (1.54 | ) | 1.99 | (1.58 | ) | 135 | ||||||||||||||||||||||||||||
(43.16 | )% | $ | 13,011 | 1.97 | % | (1.18 | )% | 1.97 | % | (1.18 | )% | 113 | % | |||||||||||||||||||||||
22.42 | 28,891 | 1.96 | (1.31 | ) | 1.96 | (1.31 | ) | 96 | ||||||||||||||||||||||||||||
11.84 | 19,540 | 1.98 | (1.02 | ) | 1.98 | (1.02 | ) | 75 | ||||||||||||||||||||||||||||
(1.91 | ) | 15,435 | 1.98 | (1.47 | ) | 1.98 | (1.47 | ) | 9 | |||||||||||||||||||||||||||
25.27 | 17,079 | 1.96 | (1.40 | ) | 1.99 | (1.43 | ) | 107 | ||||||||||||||||||||||||||||
16.03 | 12,356 | 1.95 | (1.54 | ) | 1.99 | (1.58 | ) | 135 | ||||||||||||||||||||||||||||
(42.88 | )% | $ | 21,246 | 1.47 | % | (0.69 | )% | 1.47 | % | (0.69 | )% | 113 | % | |||||||||||||||||||||||
23.06 | 29,490 | 1.46 | (0.81 | ) | 1.46 | (0.81 | ) | 96 | ||||||||||||||||||||||||||||
12.41 | 17,853 | 1.48 | (0.57 | ) | 1.61 | (0.70 | ) | 75 | ||||||||||||||||||||||||||||
(1.91 | ) | 5,502 | 1.48 | (0.97 | ) | 1.63 | (1.12 | ) | 9 | |||||||||||||||||||||||||||
25.95 | 5,501 | 1.46 | (0.77 | ) | 1.64 | (0.95 | ) | 107 | ||||||||||||||||||||||||||||
16.83 | 1 | 1.20 | (0.81 | ) | 1.24 | (0.85 | ) | 135 | ||||||||||||||||||||||||||||
(42.59 | )% | $ | 732,559 | 0.97 | % | (0.18 | )% | 0.97 | % | (0.18 | )% | 113 | % | |||||||||||||||||||||||
23.68 | 1,478,374 | 0.96 | (0.31 | ) | 0.96 | (0.31 | ) | 96 | ||||||||||||||||||||||||||||
12.98 | 1,243,776 | 0.98 | (0.02 | ) | 0.98 | (0.02 | ) | 75 | ||||||||||||||||||||||||||||
(1.86 | ) | 1,238,595 | 0.98 | (0.47 | ) | 0.98 | (0.47 | ) | 9 | |||||||||||||||||||||||||||
26.57 | 1,273,320 | 0.96 | (0.40 | ) | 0.99 | (0.43 | ) | 107 | ||||||||||||||||||||||||||||
17.18 | 1,168,220 | 0.95 | (0.54 | ) | 0.99 | (0.58 | ) | 135 | ||||||||||||||||||||||||||||
First American Funds 2008 Annual Report 111
Table of Contents
Financial Highlights For a share outstanding throughout the indicated periods.
Realized and | |||||||||||||||||||||||||||||||||||||||||
Net Asset | Unrealized | Distributions | Distributions | Net Asset | |||||||||||||||||||||||||||||||||||||
Value | Net | Gains | Total from | from Net | from Net | Value | |||||||||||||||||||||||||||||||||||
Beginning | Investment | (Losses) on | Investment | Investment | Realized | Total | End of | ||||||||||||||||||||||||||||||||||
of Period | Income (Loss) | Investments | Operations | Income | Gains | Distributions | Period | ||||||||||||||||||||||||||||||||||
Mid Cap Value Fund1 | |||||||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||||||
20082 | $ | 27.83 | $ | 0.21 | $ | (9.92 | ) | $ | (9.71 | ) | $ | (0.16 | ) | $ | (1.83 | ) | $ | (1.99 | ) | $ | 16.13 | ||||||||||||||||||||
20072 | 26.65 | 0.14 | 2.78 | 2.92 | (0.16 | ) | (1.58 | ) | (1.74 | ) | 27.83 | ||||||||||||||||||||||||||||||
20062 | 24.04 | 0.14 | 3.89 | 4.03 | (0.16 | ) | (1.26 | ) | (1.42 | ) | 26.65 | ||||||||||||||||||||||||||||||
20053 | 24.88 | (0.01 | ) | (0.83 | ) | (0.84 | ) | — | — | — | 24.04 | ||||||||||||||||||||||||||||||
20054 | 20.09 | 0.13 | 4.76 | 4.89 | (0.10 | ) | — | (0.10 | ) | 24.88 | |||||||||||||||||||||||||||||||
20044 | 16.30 | 0.08 | 3.77 | 3.85 | (0.06 | ) | — | (0.06 | ) | 20.09 | |||||||||||||||||||||||||||||||
Class B | |||||||||||||||||||||||||||||||||||||||||
20082 | $ | 26.48 | $ | 0.03 | $ | (9.39 | ) | $ | (9.36 | ) | $ | (0.07 | ) | $ | (1.83 | ) | $ | (1.90 | ) | $ | 15.22 | ||||||||||||||||||||
20072 | 25.50 | (0.05 | ) | 2.65 | 2.60 | (0.04 | ) | (1.58 | ) | (1.62 | ) | 26.48 | |||||||||||||||||||||||||||||
20062 | 23.12 | (0.03 | ) | 3.71 | 3.68 | (0.04 | ) | (1.26 | ) | (1.30 | ) | 25.50 | |||||||||||||||||||||||||||||
20053 | 23.94 | (0.02 | ) | (0.80 | ) | (0.82 | ) | — | — | — | 23.12 | ||||||||||||||||||||||||||||||
20054 | 19.39 | (0.05 | ) | 4.60 | 4.55 | — | — | — | 23.94 | ||||||||||||||||||||||||||||||||
20044 | 15.81 | (0.06 | ) | 3.65 | 3.59 | (0.01 | ) | — | (0.01 | ) | 19.39 | ||||||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||||||
20082 | $ | 27.05 | $ | 0.03 | $ | (9.60 | ) | $ | (9.57 | ) | $ | (0.07 | ) | $ | (1.83 | ) | $ | (1.90 | ) | $ | 15.58 | ||||||||||||||||||||
20072 | 26.02 | (0.06 | ) | 2.72 | 2.66 | (0.05 | ) | (1.58 | ) | (1.63 | ) | 27.05 | |||||||||||||||||||||||||||||
20062 | 23.57 | (0.04 | ) | 3.80 | 3.76 | (0.05 | ) | (1.26 | ) | (1.31 | ) | 26.02 | |||||||||||||||||||||||||||||
20053 | 24.40 | (0.02 | ) | (0.81 | ) | (0.83 | ) | — | — | — | 23.57 | ||||||||||||||||||||||||||||||
20054 | 19.77 | (0.03 | ) | 4.66 | 4.63 | — | — | — | 24.40 | ||||||||||||||||||||||||||||||||
20044 | 16.12 | (0.06 | ) | 3.72 | 3.66 | (0.01 | ) | — | (0.01 | ) | 19.77 | ||||||||||||||||||||||||||||||
Class R5 | |||||||||||||||||||||||||||||||||||||||||
20082 | $ | 27.72 | $ | 0.15 | $ | (9.87 | ) | $ | (9.72 | ) | $ | (0.13 | ) | $ | (1.83 | ) | $ | (1.96 | ) | $ | 16.04 | ||||||||||||||||||||
20072 | 26.56 | 0.06 | 2.78 | 2.84 | (0.10 | ) | (1.58 | ) | (1.68 | ) | 27.72 | ||||||||||||||||||||||||||||||
20062 | 24.00 | 0.05 | 3.91 | 3.96 | (0.14 | ) | (1.26 | ) | (1.40 | ) | 26.56 | ||||||||||||||||||||||||||||||
20053 | 24.83 | (0.01 | ) | (0.82 | ) | (0.83 | ) | — | — | — | 24.00 | ||||||||||||||||||||||||||||||
20054 | 20.09 | 0.12 | 4.70 | 4.82 | (0.08 | ) | — | (0.08 | ) | 24.83 | |||||||||||||||||||||||||||||||
20044 | 16.31 | 0.07 | 3.76 | 3.83 | (0.05 | ) | — | (0.05 | ) | 20.09 | |||||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||||||
20082 | $ | 27.98 | $ | 0.27 | $ | (9.99 | ) | $ | (9.72 | ) | $ | (0.19 | ) | $ | (1.83 | ) | $ | (2.02 | ) | $ | 16.24 | ||||||||||||||||||||
20072 | 26.77 | 0.22 | 2.80 | 3.02 | (0.23 | ) | (1.58 | ) | (1.81 | ) | 27.98 | ||||||||||||||||||||||||||||||
20062 | 24.14 | 0.22 | 3.89 | 4.11 | (0.22 | ) | (1.26 | ) | (1.48 | ) | 26.77 | ||||||||||||||||||||||||||||||
20053 | 24.98 | — | (0.84 | ) | (0.84 | ) | — | — | — | 24.14 | |||||||||||||||||||||||||||||||
20054 | 20.17 | 0.18 | 4.78 | 4.96 | (0.15 | ) | — | (0.15 | ) | 24.98 | |||||||||||||||||||||||||||||||
20044 | 16.36 | 0.12 | 3.79 | 3.91 | (0.10 | ) | — | (0.10 | ) | 20.17 | |||||||||||||||||||||||||||||||
1 | Per share data calculated using average shares outstanding method. | |
2 | For the period November 1 to October 31 in the fiscal year indicated. | |
3 | For the period October 1, 2005 to October 31, 2005. Effective October 1, 2005, the fund’s fiscal year end was changed from September 30 to October 31. All ratios for the period have been annualized, except total return and portfolio turnover. | |
4 | For the period October 1 to September 30 in the 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 include sales charges. Total return would have been lower had certain expenses not been waived. |
The accompanying notes are an integral part of the financial statements.
112 First American Funds 2008 Annual Report
Table of Contents
Ratio of Net | Ratio of | Ratio of Net | ||||||||||||||||||||||||||||||||||
Investment | Expenses | Investment | ||||||||||||||||||||||||||||||||||
Ratio of | Income | to Average | Income (Loss) | |||||||||||||||||||||||||||||||||
Net Assets | Expenses to | (Loss) | Net Assets | to Average | Portfolio | |||||||||||||||||||||||||||||||
Total | End of | Average | to Average | (Excluding | Net Assets (Excluding | Turnover | ||||||||||||||||||||||||||||||
Return6 | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | ||||||||||||||||||||||||||||||
(37.32 | )% | $ | 124,275 | 1.23 | % | 0.90 | % | 1.23 | % | 0.90 | % | 93 | % | |||||||||||||||||||||||
11.47 | 254,342 | 1.22 | 0.58 | 1.22 | 0.58 | 95 | ||||||||||||||||||||||||||||||
17.36 | 156,576 | 1.24 | 0.50 | 1.24 | 0.50 | 70 | ||||||||||||||||||||||||||||||
(3.38 | ) | 56,125 | 1.23 | (0.48 | ) | 1.23 | (0.48 | ) | 10 | |||||||||||||||||||||||||||
24.38 | 54,360 | 1.21 | 0.59 | 1.25 | 0.55 | 101 | ||||||||||||||||||||||||||||||
23.65 | 28,561 | 1.20 | 0.41 | 1.25 | 0.36 | 83 | ||||||||||||||||||||||||||||||
(37.82 | )% | $ | 4,133 | 1.98 | % | 0.14 | % | 1.98 | % | 0.14 | % | 93 | % | |||||||||||||||||||||||
10.67 | 8,360 | 1.97 | (0.13 | ) | 1.97 | (0.13 | ) | 95 | ||||||||||||||||||||||||||||
16.45 | 8,590 | 1.99 | (0.17 | ) | 1.99 | (0.17 | ) | 70 | ||||||||||||||||||||||||||||
(3.43 | ) | 9,252 | 1.98 | (1.25 | ) | 1.98 | (1.25 | ) | 10 | |||||||||||||||||||||||||||
23.47 | 10,157 | 1.96 | (0.21 | ) | 2.00 | (0.25 | ) | 101 | ||||||||||||||||||||||||||||
22.69 | 9,928 | 1.95 | (0.35 | ) | 2.00 | (0.40 | ) | 83 | ||||||||||||||||||||||||||||
(37.80 | )% | $ | 13,154 | 1.98 | % | 0.14 | % | 1.98 | % | 0.14 | % | 93 | % | |||||||||||||||||||||||
10.66 | 26,141 | 1.97 | (0.18 | ) | 1.97 | (0.18 | ) | 95 | ||||||||||||||||||||||||||||
16.47 | 18,162 | 1.99 | (0.24 | ) | 1.99 | (0.24 | ) | 70 | ||||||||||||||||||||||||||||
(3.40 | ) | 7,439 | 1.98 | (1.24 | ) | 1.98 | (1.24 | ) | 10 | |||||||||||||||||||||||||||
23.43 | 7,426 | 1.96 | (0.15 | ) | 2.00 | (0.19 | ) | 101 | ||||||||||||||||||||||||||||
22.69 | 3,342 | 1.95 | (0.33 | ) | 2.00 | (0.38 | ) | 83 | ||||||||||||||||||||||||||||
(37.47 | )% | $ | 23,423 | 1.49 | % | 0.64 | % | 1.49 | % | 0.64 | % | 93 | % | |||||||||||||||||||||||
11.18 | 29,752 | 1.47 | 0.29 | 1.47 | 0.29 | 95 | ||||||||||||||||||||||||||||||
17.06 | 17,724 | 1.49 | 0.15 | 1.61 | 0.03 | 70 | ||||||||||||||||||||||||||||||
(3.34 | ) | 785 | 1.47 | (0.69 | ) | 1.62 | (0.84 | ) | 10 | |||||||||||||||||||||||||||
24.04 | 380 | 1.46 | 0.52 | 1.65 | 0.33 | 101 | ||||||||||||||||||||||||||||||
23.51 | 1 | 1.20 | 0.37 | 1.25 | 0.32 | 83 | ||||||||||||||||||||||||||||||
(37.17 | )% | $ | 415,486 | 0.99 | % | 1.14 | % | 0.99 | % | 1.14 | % | 93 | % | |||||||||||||||||||||||
11.79 | 772,178 | 0.97 | 0.86 | 0.97 | 0.86 | 95 | ||||||||||||||||||||||||||||||
17.63 | 728,014 | 0.99 | 0.81 | 0.99 | 0.81 | 70 | ||||||||||||||||||||||||||||||
(3.36 | ) | 598,428 | 0.98 | (0.24 | ) | 0.98 | (0.24 | ) | 10 | |||||||||||||||||||||||||||
24.68 | 621,172 | 0.96 | 0.80 | 1.00 | 0.76 | 101 | ||||||||||||||||||||||||||||||
23.95 | 433,879 | 0.95 | 0.66 | 1.00 | 0.61 | 83 | ||||||||||||||||||||||||||||||
First American Funds 2008 Annual Report 113
Table of Contents
Financial Highlights For a share outstanding throughout the indicated periods.
Realized and | |||||||||||||||||||||||||||||||||||||||||
Net Asset | Unrealized | Distributions | Net Asset | ||||||||||||||||||||||||||||||||||||||
Value | Net | Gains | Total from | from Net | Distributions | Value | |||||||||||||||||||||||||||||||||||
Beginning | Investment | (Losses) on | Investment | Investment | from Net | Total | End of | ||||||||||||||||||||||||||||||||||
of Period | Income | Investments | Operations | Income | Realized Gains | Distributions | Period | ||||||||||||||||||||||||||||||||||
Real Estate Securities Fund1 | |||||||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||||||
20082 | $ | 23.99 | $ | 0.60 | $ | (8.78 | ) | $ | (8.18 | ) | $ | (0.40 | ) | $ | (2.74 | ) | $ | (3.14 | ) | $ | 12.67 | ||||||||||||||||||||
20072 | 26.49 | 0.47 | (0.24 | ) | 0.23 | (0.36 | ) | (2.37 | ) | (2.73 | ) | 23.99 | |||||||||||||||||||||||||||||
20062 | 21.42 | 0.47 | 7.77 | 8.24 | (0.58 | ) | (2.59 | ) | (3.17 | ) | 26.49 | ||||||||||||||||||||||||||||||
20053 | 21.81 | 0.03 | (0.42 | ) | (0.39 | ) | — | — | — | 21.42 | |||||||||||||||||||||||||||||||
20054 | 18.62 | 0.69 | 4.47 | 5.16 | (0.55 | ) | (1.42 | ) | (1.97 | ) | 21.81 | ||||||||||||||||||||||||||||||
20044 | 16.00 | 0.63 | 3.21 | 3.84 | (0.62 | ) | (0.60 | ) | (1.22 | ) | 18.62 | ||||||||||||||||||||||||||||||
Class B | |||||||||||||||||||||||||||||||||||||||||
20082 | $ | 23.53 | $ | 0.46 | $ | (8.60 | ) | $ | (8.14 | ) | $ | (0.26 | ) | $ | (2.74 | ) | $ | (3.00 | ) | $ | 12.39 | ||||||||||||||||||||
20072 | 26.08 | 0.27 | (0.22 | ) | 0.05 | (0.23 | ) | (2.37 | ) | (2.60 | ) | 23.53 | |||||||||||||||||||||||||||||
20062 | 21.14 | 0.29 | 7.66 | 7.95 | (0.42 | ) | (2.59 | ) | (3.01 | ) | 26.08 | ||||||||||||||||||||||||||||||
20053 | 21.53 | 0.01 | (0.40 | ) | (0.39 | ) | — | — | — | 21.14 | |||||||||||||||||||||||||||||||
20054 | 18.41 | 0.54 | 4.40 | 4.94 | (0.40 | ) | (1.42 | ) | (1.82 | ) | 21.53 | ||||||||||||||||||||||||||||||
20044 | 15.85 | 0.50 | 3.17 | 3.67 | (0.51 | ) | (0.60 | ) | (1.11 | ) | 18.41 | ||||||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||||||
20082 | $ | 23.62 | $ | 0.45 | $ | (8.63 | ) | $ | (8.18 | ) | $ | (0.26 | ) | $ | (2.74 | ) | $ | (3.00 | ) | $ | 12.44 | ||||||||||||||||||||
20072 | 26.17 | 0.26 | (0.21 | ) | 0.05 | (0.23 | ) | (2.37 | ) | (2.60 | ) | 23.62 | |||||||||||||||||||||||||||||
20062 | 21.21 | 0.28 | 7.70 | 7.98 | (0.43 | ) | (2.59 | ) | (3.02 | ) | 26.17 | ||||||||||||||||||||||||||||||
20053 | 21.61 | 0.01 | (0.41 | ) | (0.40 | ) | — | — | — | 21.21 | |||||||||||||||||||||||||||||||
20054 | 18.47 | 0.54 | 4.42 | 4.96 | (0.40 | ) | (1.42 | ) | (1.82 | ) | 21.61 | ||||||||||||||||||||||||||||||
20044 | 15.89 | 0.50 | 3.19 | 3.69 | (0.51 | ) | (0.60 | ) | (1.11 | ) | 18.47 | ||||||||||||||||||||||||||||||
Class R5 | |||||||||||||||||||||||||||||||||||||||||
20082 | $ | 24.20 | $ | 0.54 | $ | (8.85 | ) | $ | (8.31 | ) | $ | (0.36 | ) | $ | (2.74 | ) | $ | (3.10 | ) | $ | 12.79 | ||||||||||||||||||||
20072 | 26.72 | 0.38 | (0.21 | ) | 0.17 | (0.32 | ) | (2.37 | ) | (2.69 | ) | 24.20 | |||||||||||||||||||||||||||||
20062 | 21.61 | 0.35 | 7.90 | 8.25 | (0.55 | ) | (2.59 | ) | (3.14 | ) | 26.72 | ||||||||||||||||||||||||||||||
20053 | 22.00 | 0.02 | (0.41 | ) | (0.39 | ) | — | — | — | 21.61 | |||||||||||||||||||||||||||||||
20054 | 18.80 | 0.72 | 4.43 | 5.15 | (0.53 | ) | (1.42 | ) | (1.95 | ) | 22.00 | ||||||||||||||||||||||||||||||
20044 | 16.00 | 0.61 | 3.24 | 3.85 | (0.45 | ) | (0.60 | ) | (1.05 | ) | 18.80 | ||||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||||||
20082 | $ | 24.18 | $ | 0.64 | $ | (8.84 | ) | $ | (8.20 | ) | $ | (0.45 | ) | $ | (2.74 | ) | $ | (3.19 | ) | $ | 12.79 | ||||||||||||||||||||
20072 | 26.67 | 0.53 | (0.24 | ) | 0.29 | (0.41 | ) | (2.37 | ) | (2.78 | ) | 24.18 | |||||||||||||||||||||||||||||
20062 | 21.54 | 0.53 | 7.82 | 8.35 | (0.63 | ) | (2.59 | ) | (3.22 | ) | 26.67 | ||||||||||||||||||||||||||||||
20053 | 21.92 | 0.03 | (0.41 | ) | (0.38 | ) | — | — | — | 21.54 | |||||||||||||||||||||||||||||||
20054 | 18.71 | 0.74 | 4.49 | 5.23 | (0.60 | ) | (1.42 | ) | (2.02 | ) | 21.92 | ||||||||||||||||||||||||||||||
20044 | 16.06 | 0.69 | 3.22 | 3.91 | (0.66 | ) | (0.60 | ) | (1.26 | ) | 18.71 | ||||||||||||||||||||||||||||||
1 | Per share data calculated using average shares outstanding method. | |
2 | For the period November 1 to October 31 in the fiscal year indicated. | |
3 | For the period October 1, 2005 to October 31, 2005. Effective October 1, 2005, the fund’s fiscal year end was changed from September 30 to October 31. All ratios for the period have been annualized, except total return and portfolio turnover. | |
4 | For the period October 1 to September 30 in the 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.
114 First American Funds 2008 Annual Report
Table of Contents
Ratio of Net | ||||||||||||||||||||||||||||||||||||
Ratio of | Investment | |||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses | Income | ||||||||||||||||||||||||||||||||||
Ratio of | Investment | to Average | to Average | |||||||||||||||||||||||||||||||||
Net Assets | Expenses to | Income | Net Assets | Net Assets | Portfolio | |||||||||||||||||||||||||||||||
Total | End of | Average | to Average | (Excluding | (Excluding | Turnover | ||||||||||||||||||||||||||||||
Return6 | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | ||||||||||||||||||||||||||||||
(37.71 | )% | $ | 133,162 | 1.23 | % | 3.31 | % | 1.23 | % | 3.31 | % | 150 | % | |||||||||||||||||||||||
0.78 | 203,101 | 1.22 | 1.87 | 1.22 | 1.87 | 210 | ||||||||||||||||||||||||||||||
43.25 | 228,186 | 1.23 | 2.06 | 1.23 | 2.06 | 161 | ||||||||||||||||||||||||||||||
(1.79 | ) | 133,339 | 1.23 | 1.48 | 1.23 | 1.48 | 11 | |||||||||||||||||||||||||||||
28.99 | 135,745 | 1.23 | 3.43 | 1.25 | 3.41 | 118 | ||||||||||||||||||||||||||||||
24.98 | 86,996 | 1.23 | 3.63 | 1.26 | 3.60 | 127 | ||||||||||||||||||||||||||||||
(38.18 | )% | $ | 3,276 | 1.98 | % | 2.57 | % | 1.98 | % | 2.57 | % | 150 | % | |||||||||||||||||||||||
0.00 | 7,391 | 1.97 | 1.12 | 1.97 | 1.12 | 210 | ||||||||||||||||||||||||||||||
42.17 | 7,288 | 1.98 | 1.30 | 1.98 | 1.30 | 161 | ||||||||||||||||||||||||||||||
(1.81 | ) | 4,419 | 1.98 | 0.74 | 1.98 | 0.74 | 11 | |||||||||||||||||||||||||||||
27.98 | 4,700 | 1.98 | 2.69 | 2.00 | 2.67 | 118 | ||||||||||||||||||||||||||||||
24.06 | 4,412 | 1.98 | 2.91 | 2.01 | 2.88 | 127 | ||||||||||||||||||||||||||||||
(38.19 | )% | $ | 11,458 | 1.98 | % | 2.56 | % | 1.98 | % | 2.56 | % | 150 | % | |||||||||||||||||||||||
0.03 | 18,403 | 1.97 | 1.06 | 1.97 | 1.06 | 210 | ||||||||||||||||||||||||||||||
42.16 | 12,281 | 1.98 | 1.25 | 1.98 | 1.25 | 161 | ||||||||||||||||||||||||||||||
(1.85 | ) | 4,669 | 1.98 | 0.75 | 1.98 | 0.75 | 11 | |||||||||||||||||||||||||||||
28.00 | 4,954 | 1.98 | 2.68 | 2.00 | 2.66 | 118 | ||||||||||||||||||||||||||||||
24.12 | 4,247 | 1.98 | 2.92 | 2.01 | 2.89 | 127 | ||||||||||||||||||||||||||||||
(37.90 | )% | $ | 22,813 | 1.48 | % | 3.01 | % | 1.48 | % | 3.01 | % | 150 | % | |||||||||||||||||||||||
0.52 | 18,493 | 1.47 | 1.52 | 1.47 | 1.52 | 210 | ||||||||||||||||||||||||||||||
42.87 | 9,423 | 1.48 | 1.50 | 1.60 | 1.38 | 161 | ||||||||||||||||||||||||||||||
(1.77 | ) | 57 | 1.48 | 1.23 | 1.63 | 1.08 | 11 | |||||||||||||||||||||||||||||
28.60 | 36 | 1.48 | 3.37 | 1.65 | 3.20 | 118 | ||||||||||||||||||||||||||||||
24.94 | 1 | 1.23 | 3.57 | 1.26 | 3.54 | 127 | ||||||||||||||||||||||||||||||
(37.56 | )% | $ | 526,386 | 0.98 | % | 3.51 | % | 0.98 | % | 3.51 | % | 150 | % | |||||||||||||||||||||||
1.01 | 652,579 | 0.97 | 2.12 | 0.97 | 2.12 | 210 | ||||||||||||||||||||||||||||||
43.58 | 756,868 | 0.98 | 2.31 | 0.98 | 2.31 | 161 | ||||||||||||||||||||||||||||||
(1.73 | ) | 504,655 | 0.98 | 1.74 | 0.98 | 1.74 | 11 | |||||||||||||||||||||||||||||
29.25 | 525,196 | 0.98 | 3.66 | 1.00 | 3.64 | 118 | ||||||||||||||||||||||||||||||
25.33 | 414,544 | 0.98 | 3.95 | 1.01 | 3.92 | 127 | ||||||||||||||||||||||||||||||
First American Funds 2008 Annual Report 115
Table of Contents
Financial Highlights For a share outstanding throughout the indicated periods.
Realized and | |||||||||||||||||||||||||||||||
Net Asset | Unrealized | Net Asset | |||||||||||||||||||||||||||||
Value | Net | Gains | Total from | Distributions | Value | ||||||||||||||||||||||||||
Beginning | Investment | (Losses) on | Investment | from Net | End of | ||||||||||||||||||||||||||
of Period | Income Loss | Investments | Operations | Realized Gains | Period | ||||||||||||||||||||||||||
Small Cap Growth Opportunities Fund1 | |||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||
20082 | $ | 21.65 | $ | (0.14 | ) | $ | (7.97 | ) | $ | (8.11 | ) | $ | (1.58 | ) | $ | 11.96 | |||||||||||||||
20072 | 20.49 | (0.19 | ) | 2.67 | 2.48 | (1.32 | ) | 21.65 | |||||||||||||||||||||||
20062 | 22.79 | (0.18 | ) | 2.37 | 2.19 | (4.49 | ) | 20.49 | |||||||||||||||||||||||
20053 | 23.75 | (0.02 | ) | (0.94 | ) | (0.96 | ) | — | 22.79 | ||||||||||||||||||||||
20054 | 21.74 | (0.32 | ) | 5.28 | 4.96 | (2.95 | ) | 23.75 | |||||||||||||||||||||||
20044 | 21.95 | (0.35 | ) | 0.27 | (0.08 | ) | (0.13 | ) | 21.74 | ||||||||||||||||||||||
Class B | |||||||||||||||||||||||||||||||
20082 | $ | 19.56 | $ | (0.23 | ) | $ | (7.13 | ) | $ | (7.36 | ) | $ | (1.58 | ) | $ | 10.62 | |||||||||||||||
20072 | 18.76 | (0.31 | ) | 2.43 | 2.12 | (1.32 | ) | 19.56 | |||||||||||||||||||||||
20062 | 21.36 | (0.31 | ) | 2.20 | 1.89 | (4.49 | ) | 18.76 | |||||||||||||||||||||||
20053 | 22.27 | (0.03 | ) | (0.88 | ) | (0.91 | ) | — | 21.36 | ||||||||||||||||||||||
20054 | 20.69 | (0.45 | ) | 4.98 | 4.53 | (2.95 | ) | 22.27 | |||||||||||||||||||||||
20044 | 21.05 | (0.50 | ) | 0.27 | (0.23 | ) | (0.13 | ) | 20.69 | ||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||
20082 | $ | 20.41 | $ | (0.24 | ) | $ | (7.46 | ) | $ | (7.70 | ) | $ | (1.58 | ) | $ | 11.13 | |||||||||||||||
20072 | 19.53 | (0.33 | ) | 2.53 | 2.20 | (1.32 | ) | 20.41 | |||||||||||||||||||||||
20062 | 22.05 | (0.32 | ) | 2.29 | 1.97 | (4.49 | ) | 19.53 | |||||||||||||||||||||||
20053 | 23.00 | (0.04 | ) | (0.91 | ) | (0.95 | ) | — | 22.05 | ||||||||||||||||||||||
20054 | 21.28 | (0.48 | ) | 5.15 | 4.67 | (2.95 | ) | 23.00 | |||||||||||||||||||||||
20044 | 21.65 | (0.49 | ) | 0.25 | (0.24 | ) | (0.13 | ) | 21.28 | ||||||||||||||||||||||
Class R5 | |||||||||||||||||||||||||||||||
20082 | $ | 21.49 | $ | (0.17 | ) | $ | (7.91 | ) | $ | (8.08 | ) | $ | (1.58 | ) | $ | 11.83 | |||||||||||||||
20072 | 20.39 | (0.24 | ) | 2.66 | 2.42 | (1.32 | ) | 21.49 | |||||||||||||||||||||||
20062 | 22.75 | (0.23 | ) | 2.36 | 2.13 | (4.49 | ) | 20.39 | |||||||||||||||||||||||
20053 | 23.72 | (0.03 | ) | (0.94 | ) | (0.97 | ) | — | 22.75 | ||||||||||||||||||||||
20054 | 21.74 | (0.48 | ) | 5.41 | 4.93 | (2.95 | ) | 23.72 | |||||||||||||||||||||||
20044 | 21.95 | (0.42 | ) | 0.34 | (0.08 | ) | (0.13 | ) | 21.74 | ||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||
20082 | $ | 23.03 | $ | (0.10 | ) | $ | (8.54 | ) | $ | (8.64 | ) | $ | (1.58 | ) | $ | 12.81 | |||||||||||||||
20072 | 21.66 | (0.15 | ) | 2.84 | 2.69 | (1.32 | ) | 23.03 | |||||||||||||||||||||||
20062 | 23.81 | (0.13 | ) | 2.47 | 2.34 | (4.49 | ) | 21.66 | |||||||||||||||||||||||
20053 | 24.81 | (0.02 | ) | (0.98 | ) | (1.00 | ) | — | 23.81 | ||||||||||||||||||||||
20054 | 22.55 | (0.27 | ) | 5.48 | 5.21 | (2.95 | ) | 24.81 | |||||||||||||||||||||||
20044 | 22.70 | (0.32 | ) | 0.30 | (0.02 | ) | (0.13 | ) | 22.55 | ||||||||||||||||||||||
1 | Per share data calculated using average shares outstanding method. | |
2 | For the period November 1 to October 31 in the fiscal year indicated. | |
3 | For the period October 1, 2005 to October 31, 2005. Effective October 1, 2005, the fund’s fiscal year end was changed from September 30 to October 31. All ratios for the period have been annualized, except total return and portfolio turnover. | |
4 | For the period October 1 to September 30 in the 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. | |
7 | During the period, the fund received a regulatory settlement, which had an impact on total return of 0.75% for Class A, Class C, and Class Y, 0.79% for Class B, and 0.76% for Class R. | |
8 | During the period, the fund received a regulatory settlement, which had an impact on total return of 0.05% for Class A, Class R, and Class Y and 0.06% for Class B and Class C. |
The accompanying notes are an integral part of the financial statements.
116 First American Funds 2008 Annual Report
Table of Contents
Ratio of Net | Ratio of | Ratio of Net | ||||||||||||||||||||||||||||||||||
Investment | Expenses | Investment | ||||||||||||||||||||||||||||||||||
Ratio of | Income | to Average | Loss | |||||||||||||||||||||||||||||||||
Net Assets | Expenses to | (Loss) | Net Assets | to Average | Portfolio | |||||||||||||||||||||||||||||||
Total | End of | Average | to Average | (Excluding | Net Assets (Excluding | Turnover | ||||||||||||||||||||||||||||||
Return6 | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | ||||||||||||||||||||||||||||||
(40.07 | )%7 | $ | 29,022 | 1.46 | % | (0.82 | )% | 1.63 | % | (0.99 | )% | 138 | % | |||||||||||||||||||||||
12.81 | 8 | 149,231 | 1.47 | (0.89 | ) | 1.59 | (1.01 | ) | 118 | |||||||||||||||||||||||||||
9.91 | 138,786 | 1.47 | (0.88 | ) | 1.58 | (0.99 | ) | 209 | ||||||||||||||||||||||||||||
(4.04 | ) | 78,357 | 1.47 | (1.17 | ) | 1.56 | (1.26 | ) | 14 | |||||||||||||||||||||||||||
24.21 | 84,567 | 1.82 | (1.42 | ) | 1.87 | (1.47 | ) | 190 | ||||||||||||||||||||||||||||
(0.39 | ) | 101,031 | 1.93 | (1.42 | ) | 1.96 | (1.45 | ) | 178 | |||||||||||||||||||||||||||
(40.55 | )%7 | $ | 1,978 | 2.21 | % | (1.57 | )% | 2.38 | % | (1.74 | )% | 138 | % | |||||||||||||||||||||||
12.03 | 8 | 4,467 | 2.22 | (1.65 | ) | 2.34 | (1.77 | ) | 118 | |||||||||||||||||||||||||||
9.03 | 6,540 | 2.22 | (1.62 | ) | 2.33 | (1.73 | ) | 209 | ||||||||||||||||||||||||||||
(4.09 | ) | 8,271 | 2.22 | (1.93 | ) | 2.31 | (2.02 | ) | 14 | |||||||||||||||||||||||||||
23.27 | 8,760 | 2.57 | (2.16 | ) | 2.62 | (2.21 | ) | 190 | ||||||||||||||||||||||||||||
(1.13 | ) | 9,063 | 2.68 | (2.16 | ) | 2.71 | (2.19 | ) | 178 | |||||||||||||||||||||||||||
(40.53 | )%7 | $ | 1,104 | 2.21 | % | (1.56 | )% | 2.38 | % | (1.73 | )% | 138 | % | |||||||||||||||||||||||
11.96 | 8 | 2,295 | 2.22 | (1.64 | ) | 2.34 | (1.76 | ) | 118 | |||||||||||||||||||||||||||
9.11 | 2,664 | 2.22 | (1.63 | ) | 2.33 | (1.74 | ) | 209 | ||||||||||||||||||||||||||||
(4.13 | ) | 2,962 | 2.22 | (1.93 | ) | 2.31 | (2.02 | ) | 14 | |||||||||||||||||||||||||||
23.28 | 3,152 | 2.57 | (2.20 | ) | 2.62 | (2.25 | ) | 190 | ||||||||||||||||||||||||||||
(1.14 | ) | 4,669 | 2.68 | (2.07 | ) | 2.71 | (2.10 | ) | 178 | |||||||||||||||||||||||||||
(40.24 | )%7 | $ | 433 | 1.72 | % | (1.04 | )% | 1.89 | % | (1.21 | )% | 138 | % | |||||||||||||||||||||||
12.56 | 8 | 522 | 1.72 | (1.17 | ) | 1.84 | (1.29 | ) | 118 | |||||||||||||||||||||||||||
9.62 | 1,323 | 1.72 | (1.16 | ) | 1.95 | (1.39 | ) | 209 | ||||||||||||||||||||||||||||
(4.09 | ) | 5 | 1.72 | (1.43 | ) | 1.96 | (1.67 | ) | 14 | |||||||||||||||||||||||||||
24.06 | 5 | 2.07 | (2.14 | ) | 2.27 | (2.34 | ) | 190 | ||||||||||||||||||||||||||||
(0.39 | ) | 1 | 1.93 | (1.67 | ) | 1.96 | (1.70 | ) | 178 | |||||||||||||||||||||||||||
(39.97 | )%7 | $ | 75,355 | 1.22 | % | (0.56 | )% | 1.39 | % | (0.73 | )% | 138 | % | |||||||||||||||||||||||
13.10 | 8 | 154,456 | 1.22 | (0.64 | ) | 1.34 | (0.76 | ) | 118 | |||||||||||||||||||||||||||
10.16 | 182,429 | 1.22 | (0.63 | ) | 1.33 | (0.74 | ) | 209 | ||||||||||||||||||||||||||||
(4.03 | ) | 210,769 | 1.22 | (0.92 | ) | 1.31 | (1.01 | ) | 14 | |||||||||||||||||||||||||||
24.47 | 220,772 | 1.57 | (1.15 | ) | 1.62 | (1.20 | ) | 190 | ||||||||||||||||||||||||||||
(0.11 | ) | 224,432 | 1.68 | (1.25 | ) | 1.71 | (1.28 | ) | 178 | |||||||||||||||||||||||||||
First American Funds 2008 Annual Report 117
Table of Contents
Financial Highlights For a share outstanding throughout the indicated periods.
Realized and | |||||||||||||||||||||||||||||||||||||||||
Net Asset | Unrealized | Distributions | Net Asset | ||||||||||||||||||||||||||||||||||||||
Value | Net | Gains | Total from | from Net | Distributions | Value | |||||||||||||||||||||||||||||||||||
Beginning | Investment | (Losses) on | Investment | Investment | from Net | Total | End of | ||||||||||||||||||||||||||||||||||
of Period | Income (Loss) | Investments | Operations | Income | Realized Gains | Distributions | Period | ||||||||||||||||||||||||||||||||||
Small Cap Select Fund1 | |||||||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||||||
20082 | $ | 14.06 | $ | (0.02 | ) | $ | (4.92 | ) | $ | (4.94 | ) | $ | — | $ | (0.85 | ) | $ | (0.85 | ) | $ | 8.27 | ||||||||||||||||||||
20072 | 15.12 | (0.02 | ) | 1.04 | 1.02 | — | (2.08 | ) | (2.08 | ) | 14.06 | ||||||||||||||||||||||||||||||
20062 | 15.33 | (0.05 | ) | 3.05 | 3.00 | — | (3.21 | ) | (3.21 | ) | 15.12 | ||||||||||||||||||||||||||||||
20053 | 15.82 | (0.01 | ) | (0.48 | ) | (0.49 | ) | — | — | — | 15.33 | ||||||||||||||||||||||||||||||
20054 | 15.95 | (0.08 | ) | 3.10 | 3.02 | — | (3.15 | ) | (3.15 | ) | 15.82 | ||||||||||||||||||||||||||||||
20044 | 14.52 | (0.12 | ) | 2.60 | 2.48 | — | (1.05 | ) | (1.05 | ) | 15.95 | ||||||||||||||||||||||||||||||
Class B | |||||||||||||||||||||||||||||||||||||||||
20082 | $ | 11.56 | $ | (0.08 | ) | $ | (3.99 | ) | $ | (4.07 | ) | $ | — | $ | (0.85 | ) | $ | (0.85 | ) | $ | 6.64 | ||||||||||||||||||||
20072 | 12.88 | (0.11 | ) | 0.87 | 0.76 | — | (2.08 | ) | (2.08 | ) | 11.56 | ||||||||||||||||||||||||||||||
20062 | 13.58 | (0.13 | ) | 2.64 | 2.51 | — | (3.21 | ) | (3.21 | ) | 12.88 | ||||||||||||||||||||||||||||||
20053 | 14.02 | (0.02 | ) | (0.42 | ) | (0.44 | ) | — | — | — | 13.58 | ||||||||||||||||||||||||||||||
20054 | 14.56 | (0.17 | ) | 2.78 | 2.61 | — | (3.15 | ) | (3.15 | ) | 14.02 | ||||||||||||||||||||||||||||||
20044 | 13.42 | (0.22 | ) | 2.41 | 2.19 | — | (1.05 | ) | (1.05 | ) | 14.56 | ||||||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||||||
20082 | $ | 13.13 | $ | (0.09 | ) | $ | (4.56 | ) | $ | (4.65 | ) | $ | — | $ | (0.85 | ) | $ | (0.85 | ) | $ | 7.63 | ||||||||||||||||||||
20072 | 14.36 | (0.12 | ) | 0.97 | 0.85 | — | (2.08 | ) | (2.08 | ) | 13.13 | ||||||||||||||||||||||||||||||
20062 | 14.79 | (0.16 | ) | 2.94 | 2.78 | — | (3.21 | ) | (3.21 | ) | 14.36 | ||||||||||||||||||||||||||||||
20053 | 15.28 | (0.02 | ) | (0.47 | ) | (0.49 | ) | — | — | — | 14.79 | ||||||||||||||||||||||||||||||
20054 | 15.60 | (0.19 | ) | 3.02 | 2.83 | — | (3.15 | ) | (3.15 | ) | 15.28 | ||||||||||||||||||||||||||||||
20044 | 14.32 | (0.24 | ) | 2.57 | 2.33 | — | (1.05 | ) | (1.05 | ) | 15.60 | ||||||||||||||||||||||||||||||
Class R5 | |||||||||||||||||||||||||||||||||||||||||
20082 | $ | 13.86 | $ | (0.04 | ) | $ | (4.85 | ) | $ | (4.89 | ) | $ | — | $ | (0.85 | ) | $ | (0.85 | ) | $ | 8.12 | ||||||||||||||||||||
20072 | 14.98 | (0.05 | ) | 1.01 | 0.96 | — | (2.08 | ) | (2.08 | ) | 13.86 | ||||||||||||||||||||||||||||||
20062 | 15.24 | (0.09 | ) | 3.04 | 2.95 | — | (3.21 | ) | (3.21 | ) | 14.98 | ||||||||||||||||||||||||||||||
20053 | 15.73 | (0.01 | ) | (0.48 | ) | (0.49 | ) | — | — | — | 15.24 | ||||||||||||||||||||||||||||||
20054 | 15.91 | (0.08 | ) | 3.05 | 2.97 | — | (3.15 | ) | (3.15 | ) | 15.73 | ||||||||||||||||||||||||||||||
20044 | 14.49 | (0.13 | ) | 2.60 | 2.47 | — | (1.05 | ) | (1.05 | ) | 15.91 | ||||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||||||
20082 | $ | 15.10 | $ | 0.01 | $ | (5.31 | ) | $ | (5.30 | ) | $ | (0.01 | ) | $ | (0.85 | ) | $ | (0.86 | ) | $ | 8.94 | ||||||||||||||||||||
20072 | 16.06 | 0.01 | 1.11 | 1.12 | — | (2.08 | ) | (2.08 | ) | 15.10 | |||||||||||||||||||||||||||||||
20062 | 16.06 | (0.01 | ) | 3.22 | 3.21 | — | (3.21 | ) | (3.21 | ) | 16.06 | ||||||||||||||||||||||||||||||
20053 | 16.57 | (0.01 | ) | (0.50 | ) | (0.51 | ) | — | — | — | 16.06 | ||||||||||||||||||||||||||||||
20054 | 16.54 | (0.04 | ) | 3.22 | 3.18 | — | (3.15 | ) | (3.15 | ) | 16.57 | ||||||||||||||||||||||||||||||
20044 | 14.98 | (0.09 | ) | 2.70 | 2.61 | — | (1.05 | ) | (1.05 | ) | 16.54 | ||||||||||||||||||||||||||||||
1 | Per share data calculated using average shares outstanding method. | |
2 | For the period November 1 to October 31 in the year indicated. | |
3 | For the period October 1, 2005 to October 31, 2005. Effective October 1, 2005, the fund’s fiscal year end was changed from September 30 to October 31. All ratios for the period have been annualized, except total return and portfolio turnover. | |
4 | For the period October 1 to September 30 in the year indicated. | |
5 | Prior to July 1, 2004, Class R shares were named Class S shares, which had lower fees and expenses. | |
6 | Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived. |
The accompanying notes are an integral part of the financial statements.
118 First American Funds 2008 Annual Report
Table of Contents
Ratio of Net | Ratio of | Ratio of Net | ||||||||||||||||||||||||||||||||||
Investment | Expenses | Investment | ||||||||||||||||||||||||||||||||||
Ratio of | Income | to Average | Income (Loss) | |||||||||||||||||||||||||||||||||
Net Assets | Expenses to | (Loss) | Net Assets | to Average | Portfolio | |||||||||||||||||||||||||||||||
Total | End of | Average | to Average | (Excluding | Net Assets (Excluding | Turnover | ||||||||||||||||||||||||||||||
Return6 | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | ||||||||||||||||||||||||||||||
(37.00 | )% | $ | 166,698 | 1.26 | % | (0.15 | )% | 1.26 | % | (0.15 | )% | 92 | % | |||||||||||||||||||||||
7.35 | 238,129 | 1.23 | (0.22 | ) | 1.23 | (0.22 | ) | 97 | ||||||||||||||||||||||||||||
22.46 | 222,293 | 1.24 | (0.38 | ) | 1.24 | (0.38 | ) | 111 | ||||||||||||||||||||||||||||
(3.10 | ) | 104,568 | 1.25 | (0.92 | ) | 1.25 | (0.92 | ) | 14 | |||||||||||||||||||||||||||
20.46 | 107,270 | 1.22 | (0.53 | ) | 1.25 | (0.56 | ) | 122 | ||||||||||||||||||||||||||||
17.64 | 97,775 | 1.21 | (0.76 | ) | 1.24 | (0.79 | ) | 116 | ||||||||||||||||||||||||||||
(37.52 | )% | $ | 6,249 | 2.01 | % | (0.90 | )% | 2.01 | % | (0.90 | )% | 92 | % | |||||||||||||||||||||||
6.51 | 13,720 | 1.98 | (0.97 | ) | 1.98 | (0.97 | ) | 97 | ||||||||||||||||||||||||||||
21.59 | 15,077 | 1.99 | (1.14 | ) | 1.99 | (1.14 | ) | 111 | ||||||||||||||||||||||||||||
(3.14 | ) | 13,406 | 2.00 | (1.67 | ) | 2.00 | (1.67 | ) | 14 | |||||||||||||||||||||||||||
19.45 | 14,023 | 1.97 | (1.28 | ) | 2.00 | (1.31 | ) | 122 | ||||||||||||||||||||||||||||
16.88 | 13,050 | 1.96 | (1.51 | ) | 1.99 | (1.54 | ) | 116 | ||||||||||||||||||||||||||||
(37.44 | )% | $ | 17,062 | 2.01 | % | (0.90 | )% | 2.01 | % | (0.90 | )% | 92 | % | |||||||||||||||||||||||
6.46 | 34,505 | 1.98 | (0.95 | ) | 1.98 | (0.95 | ) | 97 | ||||||||||||||||||||||||||||
21.64 | 18,794 | 1.99 | (1.14 | ) | 1.99 | (1.14 | ) | 111 | ||||||||||||||||||||||||||||
(3.21 | ) | 13,453 | 2.00 | (1.67 | ) | 2.00 | (1.67 | ) | 14 | |||||||||||||||||||||||||||
19.58 | 14,418 | 1.97 | (1.28 | ) | 2.00 | (1.31 | ) | 122 | ||||||||||||||||||||||||||||
16.79 | 13,841 | 1.96 | (1.50 | ) | 1.99 | (1.53 | ) | 116 | ||||||||||||||||||||||||||||
(37.19 | )% | $ | 23,069 | 1.51 | % | (0.40 | )% | 1.51 | % | (0.40 | )% | 92 | % | |||||||||||||||||||||||
6.99 | 38,181 | 1.48 | (0.43 | ) | 1.48 | (0.43 | ) | 97 | ||||||||||||||||||||||||||||
22.23 | 2,697 | 1.49 | (0.59 | ) | 1.62 | (0.72 | ) | 111 | ||||||||||||||||||||||||||||
(3.11 | ) | 333 | 1.50 | (1.14 | ) | 1.65 | (1.29 | ) | 14 | |||||||||||||||||||||||||||
20.16 | 312 | 1.47 | (0.53 | ) | 1.65 | (0.71 | ) | 122 | ||||||||||||||||||||||||||||
17.60 | 19 | 1.21 | (0.81 | ) | 1.24 | (0.84 | ) | 116 | ||||||||||||||||||||||||||||
(36.86 | )% | $ | 289,685 | 1.01 | % | 0.10 | % | 1.01 | % | 0.10 | % | 92 | % | |||||||||||||||||||||||
7.58 | 691,488 | 0.98 | 0.03 | 0.98 | 0.03 | 97 | ||||||||||||||||||||||||||||||
22.81 | 732,252 | 0.99 | (0.15 | ) | 0.99 | (0.15 | ) | 111 | ||||||||||||||||||||||||||||
(3.08 | ) | 682,088 | 1.00 | (0.67 | ) | 1.00 | (0.67 | ) | 14 | |||||||||||||||||||||||||||
20.73 | 715,496 | 0.97 | (0.28 | ) | 1.00 | (0.31 | ) | 122 | ||||||||||||||||||||||||||||
17.98 | 770,981 | 0.96 | (0.52 | ) | 0.99 | (0.55 | ) | 116 | ||||||||||||||||||||||||||||
First American Funds 2008 Annual Report 119
Table of Contents
Financial Highlights
Realized and | |||||||||||||||||||||||||||||||||||||||||
Net Asset | Unrealized | Distributions | Net Asset | ||||||||||||||||||||||||||||||||||||||
Value | Net | Gains | Total from | from Net | Distributions | Value | |||||||||||||||||||||||||||||||||||
Beginning | Investment | (Losses) on | Investment | Investment | from Net | Total | End of | ||||||||||||||||||||||||||||||||||
of Period | Income (Loss) | Investments | Operations | Income | Realized Gains | Distributions | Period | ||||||||||||||||||||||||||||||||||
Small Cap Value Fund1 | |||||||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||||||
20082 | $ | 13.52 | $ | 0.08 | $ | (3.97 | ) | $ | (3.89 | ) | $ | (0.14 | ) | $ | (1.37 | ) | $ | (1.51 | ) | $ | 8.12 | ||||||||||||||||||||
20072 | 15.38 | 0.12 | 0.48 | 0.60 | (0.02 | ) | (2.44 | ) | (2.46 | ) | 13.52 | ||||||||||||||||||||||||||||||
20062 | 16.34 | 0.03 | 2.86 | 2.89 | (0.04 | ) | (3.81 | ) | (3.85 | ) | 15.38 | ||||||||||||||||||||||||||||||
20053 | 16.78 | 0.01 | (0.45 | ) | (0.44 | ) | — | — | — | 16.34 | |||||||||||||||||||||||||||||||
20054 | 16.84 | 0.03 | 2.63 | 2.66 | (0.06 | ) | (2.66 | ) | (2.72 | ) | 16.78 | ||||||||||||||||||||||||||||||
20044 | 14.28 | 0.03 | 3.13 | 3.16 | (0.04 | ) | (0.56 | ) | (0.60 | ) | 16.84 | ||||||||||||||||||||||||||||||
Class B | |||||||||||||||||||||||||||||||||||||||||
20082 | $ | 11.94 | $ | — | $ | (3.48 | ) | $ | (3.48 | ) | $ | (0.04 | ) | $ | (1.37 | ) | $ | (1.41 | ) | $ | 7.05 | ||||||||||||||||||||
20072 | 13.93 | 0.02 | 0.43 | 0.45 | — | (2.44 | ) | (2.44 | ) | 11.94 | |||||||||||||||||||||||||||||||
20062 | 15.19 | (0.07 | ) | 2.62 | 2.55 | — | (3.81 | ) | (3.81 | ) | 13.93 | ||||||||||||||||||||||||||||||
20053 | 15.61 | — | (0.42 | ) | (0.42 | ) | — | — | — | 15.19 | |||||||||||||||||||||||||||||||
20054 | 15.92 | (0.09 | ) | 2.47 | 2.38 | (0.03 | ) | (2.66 | ) | (2.69 | ) | 15.61 | |||||||||||||||||||||||||||||
20044 | 13.60 | (0.08 | ) | 2.96 | 2.88 | — | (0.56 | ) | (0.56 | ) | 15.92 | ||||||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||||||
20082 | $ | 12.19 | $ | — | $ | (3.54 | ) | $ | (3.54 | ) | $ | (0.06 | ) | $ | (1.37 | ) | $ | (1.43 | ) | $ | 7.22 | ||||||||||||||||||||
20072 | 14.17 | 0.02 | 0.44 | 0.46 | — | (2.44 | ) | (2.44 | ) | 12.19 | |||||||||||||||||||||||||||||||
20062 | 15.39 | (0.07 | ) | 2.66 | 2.59 | — | (3.81 | ) | (3.81 | ) | 14.17 | ||||||||||||||||||||||||||||||
20053 | 15.82 | — | (0.43 | ) | (0.43 | ) | — | — | — | 15.39 | |||||||||||||||||||||||||||||||
20054 | 16.10 | (0.09 | ) | 2.50 | 2.41 | (0.03 | ) | (2.66 | ) | (2.69 | ) | 15.82 | |||||||||||||||||||||||||||||
20044 | 13.74 | (0.08 | ) | 3.00 | 2.92 | — | (0.56 | ) | (0.56 | ) | 16.10 | ||||||||||||||||||||||||||||||
Class R5 | |||||||||||||||||||||||||||||||||||||||||
20082 | $ | 13.35 | $ | 0.05 | $ | (3.91 | ) | $ | (3.86 | ) | $ | (0.12 | ) | $ | (1.37 | ) | $ | (1.49 | ) | $ | 8.00 | ||||||||||||||||||||
20072 | 15.24 | 0.10 | 0.47 | 0.57 | (0.02 | ) | (2.44 | ) | (2.46 | ) | 13.35 | ||||||||||||||||||||||||||||||
20062 | 16.29 | (0.01 | ) | 2.84 | 2.83 | (0.07 | ) | (3.81 | ) | (3.88 | ) | 15.24 | |||||||||||||||||||||||||||||
20053 | 16.74 | 0.01 | (0.46 | ) | (0.45 | ) | — | — | — | 16.29 | |||||||||||||||||||||||||||||||
20054 | 16.83 | (0.01 | ) | 2.64 | 2.63 | (0.06 | ) | (2.66 | ) | (2.72 | ) | 16.74 | |||||||||||||||||||||||||||||
20044 | 14.27 | 0.03 | 3.12 | 3.15 | (0.03 | ) | (0.56 | ) | (0.59 | ) | 16.83 | ||||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||||||
20082 | $ | 13.87 | $ | 0.11 | $ | (4.08 | ) | $ | (3.97 | ) | $ | (0.17 | ) | $ | (1.37 | ) | $ | (1.54 | ) | $ | 8.36 | ||||||||||||||||||||
20072 | 15.71 | 0.16 | 0.49 | 0.65 | (0.05 | ) | (2.44 | ) | (2.49 | ) | 13.87 | ||||||||||||||||||||||||||||||
20062 | 16.62 | 0.07 | 2.90 | 2.97 | (0.07 | ) | (3.81 | ) | (3.88 | ) | 15.71 | ||||||||||||||||||||||||||||||
20053 | 17.06 | 0.01 | (0.45 | ) | (0.44 | ) | — | — | — | 16.62 | |||||||||||||||||||||||||||||||
20054 | 17.05 | 0.07 | 2.67 | 2.74 | (0.07 | ) | (2.66 | ) | (2.73 | ) | 17.06 | ||||||||||||||||||||||||||||||
20044 | 14.44 | 0.08 | 3.16 | 3.24 | (0.07 | ) | (0.56 | ) | (0.63 | ) | 17.05 | ||||||||||||||||||||||||||||||
1 | Per share data calculated using average shares outstanding method. | |
2 | For the period November 1 to October 31 in the year indicated. | |
3 | For the period October 1, 2005 to October 31, 2005. Effective October 1, 2005, the fund’s fiscal year end was changed from September 30 to October 31. All ratios for the period have been annualized, except total return and portfolio turnover. | |
4 | For the period October 1 to September 30 in the year indicated. | |
5 | Prior to July 1, 2004, Class R shares were named Class S shares, which had lower fees and expenses. | |
6 | Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived. |
The accompanying notes are an integral part of the financial statements.
120 First American Funds 2008 Annual Report
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Ratio of Net | Ratio of | Ratio of Net | ||||||||||||||||||||||||||||||||||
Investment | Expenses | Investment | ||||||||||||||||||||||||||||||||||
Ratio of | Income | to Average | Income (Loss) | |||||||||||||||||||||||||||||||||
Net Assets | Expenses to | (Loss) | Net Assets | to Average | Portfolio | |||||||||||||||||||||||||||||||
Total | End of | Average | to Average | (Excluding | Net Assets (Excluding | Turnover | ||||||||||||||||||||||||||||||
Return6 | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | ||||||||||||||||||||||||||||||
(31.75 | )% | $ | 28,344 | 1.31 | % | 0.75 | % | 1.31 | % | 0.75 | % | 49 | % | |||||||||||||||||||||||
4.18 | 53,498 | 1.26 | 0.90 | 1.26 | 0.90 | 63 | ||||||||||||||||||||||||||||||
20.78 | 57,922 | 1.26 | 0.21 | �� | 1.26 | 0.21 | 96 | |||||||||||||||||||||||||||||
(2.62 | ) | 46,467 | 1.25 | 0.78 | 1.25 | 0.78 | 15 | |||||||||||||||||||||||||||||
16.78 | 48,128 | 1.24 | 0.19 | 1.26 | 0.17 | 72 | ||||||||||||||||||||||||||||||
22.70 | 43,192 | 1.23 | 0.21 | 1.25 | 0.19 | 34 | ||||||||||||||||||||||||||||||
(32.32 | )% | $ | 2,964 | 2.06 | % | 0.00 | % | 2.06 | % | 0.00 | % | 49 | % | |||||||||||||||||||||||
3.41 | 6,213 | 2.01 | 0.14 | 2.01 | 0.14 | 63 | ||||||||||||||||||||||||||||||
19.88 | 7,855 | 2.01 | (0.53 | ) | 2.01 | (0.53 | ) | 96 | ||||||||||||||||||||||||||||
(2.69 | ) | 8,913 | 2.00 | 0.03 | 2.00 | 0.03 | 15 | |||||||||||||||||||||||||||||
15.90 | 9,325 | 1.99 | (0.56 | ) | 2.01 | (0.58 | ) | 72 | ||||||||||||||||||||||||||||
21.76 | 9,901 | 1.98 | (0.51 | ) | 2.00 | (0.53 | ) | 34 | ||||||||||||||||||||||||||||
(32.23 | )% | $ | 2,373 | 2.06 | % | 0.00 | % | 2.06 | % | 0.00 | % | 49 | % | |||||||||||||||||||||||
3.42 | 4,006 | 2.01 | 0.14 | 2.01 | 0.14 | 63 | ||||||||||||||||||||||||||||||
19.89 | 4,405 | 2.01 | (0.53 | ) | 2.01 | (0.53 | ) | 96 | ||||||||||||||||||||||||||||
(2.72 | ) | 4,590 | 2.00 | 0.03 | 2.00 | 0.03 | 15 | |||||||||||||||||||||||||||||
15.92 | 4,808 | 1.99 | (0.56 | ) | 2.01 | (0.58 | ) | 72 | ||||||||||||||||||||||||||||
21.83 | 4,609 | 1.98 | (0.52 | ) | 2.00 | (0.54 | ) | 34 | ||||||||||||||||||||||||||||
(31.90 | )% | $ | 2,159 | 1.56 | % | 0.50 | % | 1.56 | % | 0.50 | % | 49 | % | |||||||||||||||||||||||
3.96 | 3,263 | 1.51 | 0.72 | 1.51 | 0.72 | 63 | ||||||||||||||||||||||||||||||
20.44 | 1,849 | 1.51 | (0.09 | ) | 1.63 | (0.21 | ) | 96 | ||||||||||||||||||||||||||||
(2.69 | ) | 4 | 1.50 | 0.59 | 1.65 | 0.44 | 15 | |||||||||||||||||||||||||||||
16.60 | 4 | 1.49 | (0.04 | ) | 1.66 | (0.21 | ) | 72 | ||||||||||||||||||||||||||||
22.69 | 1 | 1.23 | 0.22 | 1.25 | 0.20 | 34 | ||||||||||||||||||||||||||||||
(31.56 | )% | $ | 158,112 | 1.06 | % | 1.00 | % | 1.06 | % | 1.00 | % | 49 | % | |||||||||||||||||||||||
4.45 | 302,683 | 1.01 | 1.15 | 1.01 | 1.15 | 63 | ||||||||||||||||||||||||||||||
21.01 | 355,148 | 1.01 | 0.47 | 1.01 | 0.47 | 96 | ||||||||||||||||||||||||||||||
(2.58 | ) | 348,166 | 1.00 | 1.03 | 1.00 | 1.03 | 15 | |||||||||||||||||||||||||||||
17.08 | 363,261 | 0.99 | 0.44 | 1.01 | 0.42 | 72 | ||||||||||||||||||||||||||||||
23.02 | 367,774 | 0.98 | 0.50 | 1.00 | 0.48 | 34 | ||||||||||||||||||||||||||||||
First American Funds 2008 Annual Report 121
Table of Contents
Financial Highlights For a share outstanding throughout the indicated periods.
Realized and | |||||||||||||||||||||||||||||||
Net Asset | Unrealized | Distributions | Net Asset | ||||||||||||||||||||||||||||
Value | Net | Gains | Total from | from Net | Value | ||||||||||||||||||||||||||
Beginning | Investment | (Losses) on | Investment | Investment | End of | ||||||||||||||||||||||||||
of Period | Income (Loss) | Investments | Operations | Income | Period | ||||||||||||||||||||||||||
Small-Mid Cap Core Fund1,2 | |||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||
20083 | $ | 10.64 | $ | (0.01 | ) | $ | (3.63 | ) | $ | (3.64 | ) | $ | — | $ | 7.00 | ||||||||||||||||
20073 | 9.57 | (0.02 | ) | 1.09 | 1.07 | — | 10.64 | ||||||||||||||||||||||||
20063 | 8.03 | 0.01 | 1.53 | 1.54 | — | 9.57 | |||||||||||||||||||||||||
20054 | 8.31 | (0.01 | ) | (0.27 | ) | (0.28 | ) | — | 8.03 | ||||||||||||||||||||||
20055 | 7.40 | (0.07 | ) | 0.98 | 0.91 | — | 8.31 | ||||||||||||||||||||||||
20045 | 7.05 | (0.07 | ) | 0.42 | 0.35 | — | 7.40 | ||||||||||||||||||||||||
Class B | |||||||||||||||||||||||||||||||
20083 | $ | 9.21 | $ | (0.07 | ) | $ | (3.13 | ) | $ | (3.20 | ) | $ | — | $ | 6.01 | ||||||||||||||||
20073 | 8.34 | (0.08 | ) | 0.95 | 0.87 | — | 9.21 | ||||||||||||||||||||||||
20063 | 7.06 | (0.04 | ) | 1.32 | 1.28 | — | 8.34 | ||||||||||||||||||||||||
20054 | 7.31 | (0.01 | ) | (0.24 | ) | (0.25 | ) | — | 7.06 | ||||||||||||||||||||||
20055 | 6.55 | (0.11 | ) | 0.87 | 0.76 | — | 7.31 | ||||||||||||||||||||||||
20045 | 6.29 | (0.11 | ) | 0.37 | 0.26 | — | 6.55 | ||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||
20083 | $ | 10.04 | $ | (0.08 | ) | $ | (3.40 | ) | $ | (3.48 | ) | $ | — | $ | 6.56 | ||||||||||||||||
20073 | 9.09 | (0.09 | ) | 1.04 | 0.95 | — | 10.04 | ||||||||||||||||||||||||
20063 | 7.69 | (0.05 | ) | 1.45 | 1.40 | — | 9.09 | ||||||||||||||||||||||||
20054 | 7.97 | (0.01 | ) | (0.27 | ) | (0.28 | ) | — | 7.69 | ||||||||||||||||||||||
20055 | 7.14 | (0.12 | ) | 0.95 | 0.83 | — | 7.97 | ||||||||||||||||||||||||
20045 | 6.86 | (0.12 | ) | 0.40 | 0.28 | — | 7.14 | ||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||
20083 | $ | 11.09 | $ | 0.01 | $ | (3.79 | ) | $ | (3.78 | ) | $ | — | $ | 7.31 | |||||||||||||||||
20073 | 9.95 | — | 1.15 | 1.15 | (0.01 | ) | 11.09 | ||||||||||||||||||||||||
20063 | 8.34 | 0.04 | 1.57 | 1.61 | — | 9.95 | |||||||||||||||||||||||||
20054 | 8.63 | — | (0.29 | ) | (0.29 | ) | — | 8.34 | |||||||||||||||||||||||
20055 | 7.66 | (0.05 | ) | 1.02 | 0.97 | — | 8.63 | ||||||||||||||||||||||||
20045 | 7.28 | (0.05 | ) | 0.43 | 0.38 | — | 7.66 | ||||||||||||||||||||||||
1 | Per share data calculated using average shares outstanding method. | |
2 | The financial highlights for Small-Mid Cap Core Fund as set forth herein include the historical financial highlights of the First American Technology Fund. Effective October 3, 2005, the fund’s name and strategy changed. | |
3 | For the period November 1 to October 31 in the year indicated. | |
4 | For the period October 1, 2005 to October 31, 2005. Effective October 1, 2005, the fund’s fiscal year end was changed from September 30 to October 31. All ratios for the period have been annualized, except total return and portfolio turnover. | |
5 | For the period October 1 to September 30 in the year indicated. | |
6 | Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived. |
The accompanying notes are an integral part of the financial statements.
122 First American Funds 2008 Annual Report
Table of Contents
Ratio of Net | Ratio of | Ratio of Net | ||||||||||||||||||||||||||||||||||
Investment | Expenses | Investment | ||||||||||||||||||||||||||||||||||
Ratio of | Income | to Average | Income (Loss) | |||||||||||||||||||||||||||||||||
Net Assets | Expenses to | (Loss) | Net Assets | to Average | Portfolio | |||||||||||||||||||||||||||||||
Total | End of | Average | to Average | (Excluding | Net Assets (Excluding | Turnover | ||||||||||||||||||||||||||||||
Return6 | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | ||||||||||||||||||||||||||||||
(34.21 | )% | $ | 12,848 | 1.41 | % | (0.13 | )% | 1.60 | % | (0.32 | )% | 170 | % | |||||||||||||||||||||||
11.18 | 21,817 | 1.41 | (0.20 | ) | 1.49 | (0.28 | ) | 151 | ||||||||||||||||||||||||||||
19.18 | 26,190 | 1.39 | 0.12 | 1.46 | 0.05 | 110 | ||||||||||||||||||||||||||||||
(3.37 | ) | 22,339 | 1.34 | (0.86 | ) | 1.34 | (0.86 | ) | 80 | |||||||||||||||||||||||||||
12.30 | 23,016 | 1.42 | (0.83 | ) | 1.50 | (0.91 | ) | 197 | ||||||||||||||||||||||||||||
4.96 | 27,356 | 1.23 | (0.86 | ) | 1.28 | (0.91 | ) | 51 | ||||||||||||||||||||||||||||
(34.74 | )% | $ | 2,512 | 2.16 | % | (0.88 | )% | 2.35 | % | (1.07 | )% | 170 | % | |||||||||||||||||||||||
10.43 | 6,883 | 2.16 | (0.94 | ) | 2.24 | (1.02 | ) | 151 | ||||||||||||||||||||||||||||
18.13 | 8,689 | 2.14 | (0.58 | ) | 2.21 | (0.65 | ) | 110 | ||||||||||||||||||||||||||||
(3.42 | ) | 10,054 | 2.09 | (1.61 | ) | 2.09 | (1.61 | ) | 80 | |||||||||||||||||||||||||||
11.60 | 10,685 | 2.17 | (1.59 | ) | 2.25 | (1.67 | ) | 197 | ||||||||||||||||||||||||||||
4.13 | 13,445 | 1.98 | (1.60 | ) | 2.03 | (1.65 | ) | 51 | ||||||||||||||||||||||||||||
(34.66 | )% | $ | 3,068 | 2.16 | % | (0.88 | )% | 2.35 | % | (1.07 | )% | 170 | % | |||||||||||||||||||||||
10.45 | 5,190 | 2.16 | (0.96 | ) | 2.24 | (1.04 | ) | 151 | ||||||||||||||||||||||||||||
18.21 | 4,986 | 2.14 | (0.64 | ) | 2.21 | (0.71 | ) | 110 | ||||||||||||||||||||||||||||
(3.51 | ) | 4,253 | 2.09 | (1.61 | ) | 2.09 | (1.61 | ) | 80 | |||||||||||||||||||||||||||
11.62 | 4,485 | 2.17 | (1.59 | ) | 2.25 | (1.67 | ) | 197 | ||||||||||||||||||||||||||||
4.08 | 6,000 | 1.98 | (1.60 | ) | 2.03 | (1.65 | ) | 51 | ||||||||||||||||||||||||||||
(34.08 | )% | $ | 40,409 | 1.16 | % | 0.12 | % | 1.35 | % | (0.07 | )% | 170 | % | |||||||||||||||||||||||
11.62 | 79,574 | 1.16 | 0.02 | 1.24 | (0.06 | ) | 151 | |||||||||||||||||||||||||||||
19.30 | 67,437 | 1.14 | 0.35 | 1.21 | 0.28 | 110 | ||||||||||||||||||||||||||||||
(3.36 | ) | 31,381 | 1.09 | (0.61 | ) | 1.09 | (0.61 | ) | 80 | |||||||||||||||||||||||||||
12.66 | 33,537 | 1.17 | (0.58 | ) | 1.25 | (0.66 | ) | 197 | ||||||||||||||||||||||||||||
5.22 | 43,758 | 0.98 | (0.60 | ) | 1.03 | (0.65 | ) | 51 | ||||||||||||||||||||||||||||
First American Funds 2008 Annual Report 123
Table of Contents
Notes to Financial Statements | October 31, 2008, all dollars and shares are rounded to thousands (000) |
1 > | Organization |
Balanced Fund, Equity Income Fund, Global Infrastructure Fund, International Fund, International Select Fund, Large Cap Growth Opportunities Fund, Large Cap Select Fund, Large Cap Value Fund, Mid Cap Growth Opportunities Fund, Mid Cap Value Fund, Real Estate Securities Fund, Small Cap Growth Opportunities Fund, Small Cap Select Fund, Small Cap Value Fund, and Small-Mid Cap Core 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. Global Infrastructure Fund commenced operations December 17, 2007. As of October 31, 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 other than Real Estate Securities Fund is a diversified open-end management investment company. Real Estate Securities Fund is a non-diversified, open-end management investment company. Prior to October 3, 2005, Small-Mid Cap Core Fund had different investment strategies, was named Technology Fund, and also was non-diversified. Non-diversified funds may invest a large component of their net assets in securities of relatively few issuers.
FAIF offers Class A, Class C, Class R, and Class Y shares. Class A shares are sold with a front-end sales charge. Class C shares may be subject to a contingent deferred sales charge for 12 months. Class R shares have no sales charge and are offered only through certain tax-deferred retirement plans. Class Y shares have no sales charge and are offered only to qualifying institutional investors and certain other qualifying accounts. Class R shares are not offered by the Small-Mid Cap Core Fund. Prior to November 3, 2008, Class C and Class R were not offered by Global Infrastructure Fund. Prior to the close of business on June 30, 2008, each fund except Global Infrastructure Fund offered Class B shares. Subsequent to this date, no new or additional investments are allowed in Class B shares, except through permitted exchanges and any reinvested dividends. Class B shares are subject to a contingent deferred sales charge for six years and automatically convert to Class A shares after eight years.
The funds’ prospectus provides descriptions of each fund’s investment objective, principal investment strategies, and principal risks. All classes of shares of a fund have identical voting, dividend, liquidation, and other rights, and the same terms and conditions, except that certain fees and expenses, including distribution and shareholder servicing fees, may differ among classes. Each class has exclusive voting rights on any matters relating to that class’ servicing or distribution arrangements.
2 > | Summary of Significant Accounting Policies |
The significant accounting policies followed by the funds are as follows:
SECURITY VALUATIONS – Security valuations for the funds’ investments are furnished by an independent pricing service that has been approved by the funds’ board of directors. Investments in equity securities that are traded on a national securities exchange (or reported on the Nasdaq national market system) are stated at the last quoted sales price if readily available for such securities on each business day. For securities traded on the Nasdaq national market system, the funds utilize the Nasdaq Official Closing Price which compares the last trade to the bid/ask range of a security. If the last trade falls within the bid/ask range, then that price will be the closing price. If the last trade is outside the bid/ask range, and falls above the ask, then the ask will be the closing price. If the last trade is below the bid, then the bid will be the closing price. Other equity securities traded in the over-the-counter market and listed equity securities for which no sale was reported on that date are stated at the last quoted bid price. Investments in open-end mutual funds are valued at their respective net asset values on the valuation date.
Debt obligations exceeding 60 days to maturity are valued by an independent pricing service. The pricing service may employ methodologies that utilize actual market transactions, broker-dealer supplied valuations, or other formula-driven valuation techniques. These techniques generally consider such factors as yields or prices of bonds of comparable quality, type of issue, coupon, maturity, ratings, and general market conditions. Securities for which prices are not available from an independent pricing service, but where an active market exists, are valued using market quotations obtained from one or more dealers that make markets in the securities or from a widely-used quotation system. Debt obligations with 60 days or less remaining until maturity may be valued at their amortized cost, which approximates market value.
The following investment vehicles, when held by a fund, are priced as follows: Exchange listed futures and options on futures are priced at their last sale price on the exchange on which they are principally traded, as determined by FAF Advisors, 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 currency forward contracts), swaps, and over-the-counter
124 First American Funds 2008 Annual Report
Table of Contents
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. As of October 31, 2008, Balanced Fund, International Select Fund, Real Estate Securities Fund, Small Cap Growth Opportunities Fund, Small Cap Select Fund, and Small-Mid Cap Core Fund held fair valued securities with a total value of $0, $0, $159, $0, $0 and $0, respectively, or 0.0%, 0.0%, 0.0%, 0.0%, 0.0%, and 0.0% of total net assets, respectively. The fair values of foreign securities held by Global Infrastructure Fund, International Fund, and International Select Fund are determined on each business day by an independent third party based on factors such as price changes for futures contracts, sector indices, American Depository Receipts, and currency exchange rates that occur between the close of the local market and the close of the New York Stock Exchange. The use of daily fair value pricing by the Global Infrastructure Fund, International Fund, and International Select Fund may cause the net asset value of their shares to differ significantly from the net asset value that would be determined without fair value pricing. Foreign securities are valued at the closing prices on the principal exchange on which they trade unless they are fair valued as described above. The prices for foreign securities are reported in local currency and converted to U.S. dollars using currency exchange rates. Exchange rates are provided daily by recognized independent pricing agents.
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 security on the transaction date.
DISTRIBUTIONS TO SHAREHOLDERS – Balanced Fund, Equity Income Fund, and Real Estate Securities Fund declare and pay income dividends quarterly. Global Infrastructure Fund, International Fund, International Select Fund, Large Cap Growth Opportunities Fund, Large Cap Select Fund, Large Cap Value Fund, Mid Cap Growth Opportunities Fund, Mid Cap Value Fund, Small Cap Growth Opportunities Fund, Small Cap Select Fund, Small Cap Value Fund, and Small-Mid Cap Core Fund declare and pay income dividends annually. Distributions are payable in cash or reinvested in additional shares of the funds. Any net realized capital gains on sales of a fund’s securities are distributed to shareholders at least annually.
Real Estate Securities Fund receives substantial distributions from holdings in real estate investment trusts (“REITs”). Additionally, other funds also invest in REITs. Distributions from REITs may be characterized as ordinary income, net capital gain, or a return of capital to the REIT shareholder. The proper characterization of REIT distributions is generally not known until after the end of each calendar year. As such, Real Estate Securities Fund, and other funds that invest in REITs, must use estimates in reporting the character of its income and distributions for financial statement purposes. The actual character of distributions to fund shareholders will be reflected on the Form 1099 received by shareholders after the end of the calendar year. Due to the nature of REIT investments, a portion of the distributions received by a fund shareholder may represent a return of capital.
FEDERAL TAXES – Each fund is treated as a separate taxable entity. Each fund intends to continue to qualify as a regulated investment company as provided in Subchapter M of the Internal Revenue Code, as amended, and to distribute all taxable income, if any, to its shareholders. Accordingly, no provision for federal income taxes is required.
Financial Accounting Standards Board (“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 October 31, 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
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Notes to Financial Statements October 31, 2008, all dollars and shares are rounded to thousands (000)
authority. Generally, tax authorities can examine all tax returns filed for the last three years.
Net investment income and net realized gains (losses) may differ for financial statement and tax purposes because of temporary or permanent book-to-tax differences. These differences are primarily due to deferred wash sale and straddle losses, foreign currency gains and losses, investments in limited partnerships and REITs, and the “mark-to-market” of certain passive foreign investment companies (“PFICs”) for tax purposes. To the extent these differences are permanent, reclassifications are made to the appropriate equity accounts in the fiscal period that the differences arise.
On the Statement of Assets and Liabilities, the following reclassifications were made:
Accumulated | Undistributed | |||||||||||
Net Realized | Net Investment | Portfolio | ||||||||||
Fund | Gain (Loss) | Income | Capital | |||||||||
Balanced Fund | $ | (16 | ) | $ | 522 | $ | (506 | ) | ||||
Equity Income Fund | (4,338 | ) | (11 | ) | 4,349 | |||||||
Global Infrastructure Fund | (1 | ) | 2 | (1 | ) | |||||||
International Fund | (34,253 | ) | (19,838 | ) | 54,091 | |||||||
International Select Fund | (192 | ) | 192 | — | ||||||||
Large Cap Select Fund | (6 | ) | 6 | — | ||||||||
Large Cap Value Fund | 1 | (1 | ) | — | ||||||||
Mid Cap Growth Opportunities Fund | 1 | 4,279 | (4,280 | ) | ||||||||
Mid Cap Value Fund | 1,085 | (1,085 | ) | — | ||||||||
Real Estate Securities Fund | 9,227 | (8,521 | ) | (706 | ) | |||||||
Small Cap Growth Opportunities Fund | 19 | 1,645 | (1,664 | ) | ||||||||
Small Cap Select Fund | 1,635 | 599 | (2,234 | ) | ||||||||
Small Cap Value Fund | 79 | (79 | ) | — | ||||||||
Small-Mid Cap Core Fund | 1,494 | 25 | (1,519 | ) | ||||||||
The character of distributions made during the fiscal period from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. In addition, due to the timing of dividend distributions, the fiscal period in which the amounts are distributed may differ from the period that the income or realized gains (losses) were recorded by the fund. The funds designated as long-term capital gain dividend, pursuant to Internal Revenue Code Section 852(b)(3), the amounts necessary to reduce earnings and profits of the funds’ related to net capital gain to zero for the tax year ended October 31, 2008. The distributions paid during the fiscal periods ended October 31, 2008 and October 31, 2007 were as follows:
October 31, 2008 | ||||||||||||
Ordinary | Long Term | |||||||||||
Fund | Income | Gain | Total | |||||||||
Balanced Fund | $ | 24,384 | $ | 16,581 | $ | 40,965 | ||||||
Equity Income Fund | 30,036 | 74,984 | 105,020 | |||||||||
International Fund | 21,018 | 137,164 | 158,182 | |||||||||
International Select Fund | 6,421 | 1,497 | 7,918 | |||||||||
Large Cap Growth Opportunities Fund | 13,656 | 58,188 | 71,844 | |||||||||
Large Cap Select Fund | 35,710 | 22,823 | 58,533 | |||||||||
Large Cap Value Fund | 34,901 | 73,894 | 108,795 | |||||||||
Mid Cap Growth Opportunities Fund | 27,657 | 161,089 | 188,746 | |||||||||
Mid Cap Value Fund | 30,903 | 45,611 | 76,514 | |||||||||
Real Estate Securities Fund | 45,177 | 69,030 | 114,207 | |||||||||
Small Cap Growth Opportunities Fund | 17,232 | 3,956 | 21,188 | |||||||||
Small Cap Select Fund | 9,296 | 45,459 | 54,755 | |||||||||
Small Cap Value Fund | 18,134 | 20,111 | 38,245 | |||||||||
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October 31, 2007 | ||||||||||||
Ordinary | Long Term | |||||||||||
Fund | Income | Gain | Total | |||||||||
Balanced Fund | $ | 8,951 | $ | 23,751 | $ | 32,702 | ||||||
Equity Income Fund | 30,078 | 113,341 | 143,419 | |||||||||
International Fund | 19,153 | 31,015 | 50,168 | |||||||||
International Select Fund | 49 | — | 49 | |||||||||
Large Cap Growth Opportunities Fund | 1,284 | 9,668 | 10,952 | |||||||||
Large Cap Select Fund | 2,124 | 7,702 | 9,826 | |||||||||
Large Cap Value Fund | 30,236 | 53,410 | 83,646 | |||||||||
Mid Cap Growth Opportunities Fund | — | 142,004 | 142,004 | |||||||||
Mid Cap Value Fund | 28,183 | 38,429 | 66,612 | |||||||||
Real Estate Securities Fund | 74,531 | 31,221 | 105,752 | |||||||||
Small Cap Growth Opportunities Fund | 17,479 | 2,440 | 19,919 | |||||||||
Small Cap Select Fund | 58,806 | 75,372 | 134,178 | |||||||||
Small Cap Value Fund | 21,986 | 43,593 | 65,579 | |||||||||
Small-Mid Cap Core Fund | 109 | — | 109 | |||||||||
As of October 31, 2008, the funds’ most recently completed fiscal year-end, components of accumulated earnings (deficit) on a tax-basis were as follows:
Accumulated | ||||||||||||||||||||
Undistributed | Capital and | Unrealized | Other | Total | ||||||||||||||||
Ordinary | Post-October | Appreciation | Accumulated | Accumulated | ||||||||||||||||
Fund | Income | Losses | (Depreciation) | Gains (Losses) | Earnings (Deficit) | |||||||||||||||
Balanced Fund | $ | — | $ | (19,256 | ) | $ | (40,887 | ) | $ | (113 | ) | $ | (60,256 | ) | ||||||
Equity Income Fund | 3,293 | (11,961 | ) | 45,361 | — | 36,693 | ||||||||||||||
Global Infrastructure Fund | 211 | (3,174 | ) | (5,791 | ) | (1 | ) | (8,755 | ) | |||||||||||
International Fund | 7,587 | — | (89,594 | ) | 230 | (81,777 | ) | |||||||||||||
International Select Fund | 5,364 | (30,787 | ) | (114,948 | ) | 29 | (140,342 | ) | ||||||||||||
Large Cap Growth Opportunities Fund | 1,892 | (96,931 | ) | (40,205 | ) | (14 | ) | (135,258 | ) | |||||||||||
Large Cap Select Fund | 734 | (63,928 | ) | (49,084 | ) | (52 | ) | (112,330 | ) | |||||||||||
Large Cap Value Fund | 3,627 | (45,994 | ) | (75,521 | ) | (96 | ) | (117,984 | ) | |||||||||||
Mid Cap Growth Opportunities Fund | — | (151,432 | ) | (193,487 | ) | (1,374 | ) | (346,293 | ) | |||||||||||
Mid Cap Value Fund | 1,341 | (101,786 | ) | (108,047 | ) | (1,375 | ) | (209,867 | ) | |||||||||||
Real Estate Securities Fund | — | (98,570 | ) | (145,682 | ) | — | (244,252 | ) | ||||||||||||
Small Cap Growth Opportunities Fund | — | (34,593 | ) | (31,979 | ) | (513 | ) | (67,085 | ) | |||||||||||
Small Cap Select Fund | — | (100,606 | ) | (160,101 | ) | — | (260,707 | ) | ||||||||||||
Small Cap Value Fund | 1,171 | (26,281 | ) | (46,733 | ) | — | (71,843 | ) | ||||||||||||
Small-Mid Cap Core Fund | — | (448,284 | ) | (15,373 | ) | — | (463,657 | ) | ||||||||||||
The differences between book and tax basis unrealized appreciation (depreciation) are primarily due to the tax deferral of losses on wash sales and investments in limited partnerships, the amount of gain (loss) recognized for tax purposes due to mark-to-market adjustments on open futures contracts, and the mark-to-market for certain PFICs for tax purposes.
As of October 31, 2008, the following funds had capital loss carryforwards, which, if not offset by subsequent capital gains, will expire on the funds’ fiscal year-ends as follows:
Expiration Year | ||||||||||||||||||||||||||||||||||||
Fund | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | Total | |||||||||||||||||||||||||||
Balanced Fund | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 19,256 | $ | 19,256 | ||||||||||||||||||
Equity Income Fund | — | — | — | — | — | — | — | 11,961 | 11,961 | |||||||||||||||||||||||||||
Global Infrastructure Fund | — | — | — | — | — | — | — | 3,174 | 3,174 | |||||||||||||||||||||||||||
International Select Fund | — | — | — | — | — | — | — | 30,787 | 30,787 | |||||||||||||||||||||||||||
Large Cap Growth Opportunities Fund | 47,305 | — | — | — | — | — | — | 49,626 | 96,931 | |||||||||||||||||||||||||||
Large Cap Select Fund | — | — | — | — | — | — | — | 63,928 | 63,928 | |||||||||||||||||||||||||||
Large Cap Value Fund | — | — | — | — | — | — | — | 45,994 | 45,994 | |||||||||||||||||||||||||||
Mid Cap Growth Opportunities Fund | 20,168 | — | — | — | — | — | — | 131,264 | 151,432 | |||||||||||||||||||||||||||
Mid Cap Value Fund | — | — | — | — | — | — | — | 101,786 | 101,786 | |||||||||||||||||||||||||||
Real Estate Securities Fund | — | — | — | — | — | — | — | 98,570 | 98,570 | |||||||||||||||||||||||||||
Small Cap Growth Opportunities Fund | — | — | — | — | — | — | — | 34,593 | 34,593 | |||||||||||||||||||||||||||
Small Cap Select Fund | 19,442 | — | — | — | — | — | — | 81,164 | 100,606 | |||||||||||||||||||||||||||
Small Cap Value Fund | — | — | — | — | — | — | — | 26,281 | 26,281 | |||||||||||||||||||||||||||
Small-Mid Cap Core Fund | 334,032 | 102,106 | 4,320 | — | — | — | — | 7,826 | 448,284 | |||||||||||||||||||||||||||
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Notes to Financial Statements October 31, 2008, all dollars and shares are rounded to thousands (000)
In accordance with Section 382 of the Internal Revenue Code, utilization of all or a portion of the above capital loss carryovers is limited on an annual basis for Large Cap Growth Opportunities Fund, Mid Cap Growth Opportunities Fund, Small Cap Select Fund, and Small-Mid Cap Core Fund to $23,652, $10,084, $9,721, and $1,524, respectively.
FUTURES TRANSACTIONS – In order to gain exposure to or protect against changes in the market, maintain sufficient liquidity to meet redemption requests, and increase the level of fund assets devoted to replicating the composition of the S&P and Russell indices while reducing transaction costs, certain funds may enter into S&P stock index futures contracts and other stock index futures contracts. Balanced Fund may also enter into interest rate index futures contracts. Upon entering into a futures contract, the fund is required to deposit cash or pledge U.S. government securities. The margin required for a futures contract is set by the exchange on which the contract is traded. Subsequent payments, which are dependent on the daily fluctuations in the value of the underlying security or securities, are made or received by the fund each day (daily variation margin) and are recorded as unrealized gains (losses) until the contract is closed. When the contract is closed, the fund records a realized gain (loss) equal to the difference between the proceeds from (or cost of) the closing transaction and the fund’s basis in the contract.
Risks of entering into futures contracts, in general, include the possibility that there will not be a perfect price correlation between the futures contracts and the underlying securities. Second, it is possible that a lack of liquidity for futures contracts could exist in the secondary market, resulting in an inability to close a futures position prior to its maturity date. Third, the purchase of a futures contract involves the risk that a fund could lose more than the original margin deposit required to initiate a futures transaction. These contracts involve market risk in excess of the amount reflected in the fund’s Statement of Assets and Liabilities. Unrealized gains (losses) on outstanding positions in futures contracts held at the close of the year will be recognized as capital gains (losses) for federal income tax purposes.
As of October 31, 2008, Balanced Fund, International Fund, and International Select Fund had outstanding futures contracts as disclosed in their Schedules of Investments.
OPTIONS TRANSACTIONS – The funds may utilize options in an attempt to manage market or business risk or enhance returns. When a call or put option is written, an amount equal to the premium received is recorded as a liability. The liability is marked-to-market daily to reflect the current market value of the option written. When a written option expires, a gain is realized in the amount of the premium originally received. If a closing purchase contract is entered into, a gain or loss is realized in the amount of the original premium less the cost of the closing transaction. If a written call option is exercised, a gain or loss is realized from the sale of the underlying security, and the proceeds from such sale are increased by the premium originally received. If a written put option is exercised, the amount of the premium originally received reduces the cost of the security which is purchased upon exercise of the option. As of October 31, 2008, the funds had no outstanding written options.
Options purchased are recorded as investments and marked-to-market daily to reflect the current market value of the option contract. If an option purchased expires, a loss is realized in the amount of the cost of the option. If a closing transaction is entered into, a gain or loss is realized to the extent that the proceeds from the sale are greater or less than the cost of the option. If a purchased put option is exercised, a gain or loss is realized from the sale of the underlying security by adjusting the proceeds from such sale by the amount of the premium originally paid. If a purchased call option is exercised, the cost of the security purchased upon exercise is increased by the premium originally paid. As of October 31, 2008, Balanced Fund held options purchased as disclosed in its Schedule of Investments.
SWAP AGREEMENTS – Balanced Fund may invest in swap agreements. A swap agreement is an agreement to exchange the return generated by one instrument for the return generated by another instrument. The fund may enter into interest rate and credit default swap agreements to manage its exposure to interest rates and credit risk.
Interest rate swap agreements involve the exchange by the fund with another party of their respective commitments to pay or receive interest (e.g., an exchange of floating rate payments for fixed rate payments with respect to a notional amount of principal). As of October 31, 2008, Balanced Fund had outstanding interest rate swaps as disclosed in its Schedule of Investments.
In a credit default swap, one party makes a stream of payments to another party in exchange for the right to receive a specified return in the event of a default by a specified reference entity on its obligation (typically a corporate issue or sovereign issue of an emerging country). The fund may use credit default swaps to provide a measure of protection against defaults of particular issuers (i.e., to reduce risk where the fund owns an issuance of or otherwise has exposure to the issuer) or to take an active long or short position with respect to the likelihood of a particular issuer’s default. 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
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swap contract (shown as sell protection in the Credit Default Swap Agreement table on the Schedule of Investments). As of October 31, 2008, Balanced Fund had outstanding credit default swaps as disclosed in its Schedule of Investments.
Swaps are marked-to-market daily based upon quotations from market makers and the change in value, if any, is recorded as unrealized gain or loss on the Statement of Operations. Payments received or made at the beginning of the measurement period are reflected on the Statement of Assets and Liabilities. A liquidation payment received or made at the termination of the swap agreement is recorded as realized gain or loss on the Statement of Operations. Net periodic payments received by the fund are included as part of miscellaneous income on the Statement of Operations. Entering into these agreements involves, to varying degrees, elements of credit, market, and documentation risk in excess of the amounts recognized on the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to an agreement may default on its obligation to perform or disagree as to the meaning of contractual terms in the agreement, and that there may be unfavorable changes in interest rates.
FOREIGN CURRENCY TRANSLATION – The books and records of Balanced Fund, Global Infrastructure Fund, International Fund, International Select Fund, and Real Estate Securities Fund relating to the funds’ non-U.S. dollar denominated investments are maintained in U.S. dollars on the following bases:
• | market value of investment securities, assets, and liabilities are translated at the current rate of exchange; and | |
• | purchases and sales of investment securities, income, and expenses are translated at the relevant rates of exchange prevailing on the respective dates of such transactions. |
The funds do not isolate the portion of gains and losses on investments in equity securities that is due to changes in the foreign exchange rates from that which is due to changes in market prices of equity securities.
The funds report certain foreign currency-related transactions as components of realized gains for financial reporting purposes, whereas such components are treated as ordinary income for federal income tax purposes. As of October 31, 2008, Balanced Fund, Global Infrastructure Fund, International Fund, and International Select Fund had foreign currency holdings consisting of multiple denominations.
FORWARD FOREIGN CURRENCY CONTRACTS – The funds may enter into forward foreign currency contracts as hedges against either specific transactions or fund positions. The aggregate principal amount of the contracts are not recorded because the funds intend to settle the contracts prior to delivery. All commitments are marked-to-market daily at the applicable foreign exchange rate, and any resulting unrealized gains or losses are recorded currently. The funds realize gains or losses at the time the forward contracts are extinguished. Unrealized gains or losses on outstanding positions in forward foreign currency contracts held at the close of the period are recognized as ordinary income or loss for federal income tax purposes.
The use of forward foreign currency contracts does not eliminate fluctuations in the underlying prices of the securities, but it does establish a rate of exchange that can be achieved in the future. Although forward foreign currency contracts limit the risk of loss due to a decline in the value of the hedged currency, they also limit a potential gain that might result should the value of the currency increase. These contracts involve market risk in excess of the amount reflected in the fund’s Statement of Assets and Liabilities. The face or contract amount in U.S. dollars reflects the total exposure the fund has in that particular currency contract. In addition, there could be exposure to risks (limited to the amount of unrealized gains) if the counterparties to the contracts are unable to meet the terms of their contracts. As of October 31, 2008, the funds had no outstanding forward currency contracts.
SECURITIES PURCHASED ON A WHEN-ISSUED BASIS – Delivery and payment for securities that have been purchased by a fund on a when-issued or forward-commitment basis can take place up to a month or more after the transaction. Such securities do not earn interest, are subject to market fluctuations, and may increase or decrease in value prior to their delivery. Each fund segregates assets with a market value equal to or greater than the amount of its purchase commitments. The purchase of securities on a when-issued or forward-commitment basis may increase the volatility of the fund’s net asset value if the fund makes such purchases while remaining substantially fully invested. As of October 31, 2008, the funds had no when-issued or forward-commitment securities outstanding.
In connection with the ability to purchase securities on a when-issued basis, each fund may also enter into dollar rolls in which the fund sells securities purchased on a forward-commitment basis and simultaneously contracts with a counterparty to repurchase similar (same type, coupon, and maturity), but not identical, securities on a specified future date. As an inducement for the fund to “roll over” its purchase commitments, the fund receives negotiated amounts in the form of reductions of the purchase price of the commitment. Dollar rolls are considered a form of leverage. As of and for the fiscal period ended October 31, 2008, the funds had no dollar rolls.
ILLIQUID OR RESTRICTED SECURITIES – A security may be considered illiquid if it lacks a readily available market. Securities are generally considered liquid if they can be
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Notes to Financial Statements October 31, 2008, all dollars and shares are rounded to thousands (000)
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. As of October 31, 2008, Balanced Fund, International Select Fund, Real Estate Securities Fund, Small Cap Growth Opportunities Fund, Small Cap Select Fund, and Small-Mid Cap Core Fund had investments in illiquid securities with a total value of $856, $0, $159, $0, $0, and $0, respectively, or 0.5%, 0.0%, 0.0%, 0.0%, 0.0%, and 0.0%, respectively, of total net assets.
Information concerning illiquid securities, including restricted securities considered to be illiquid, is as follows:
Dates | Cost | |||||||||||
Balanced Fund | Par | Acquired | Basis | |||||||||
Duty Free International | $ | 588 | 1/99-11/02 | $ | 588 | |||||||
Commercial Mortgage Pass-Through Certificates, Series 2004-RS1, Class A | 414 | 2/07 | 403 | |||||||||
Galaxy Entertainment | 175 | 3/06 | 181 | |||||||||
GS Mortgage Securities II, Series 2006-RR2, Class A1 | 359 | 7/06 | 353 | |||||||||
LG Electronics | 340 | 6/05 | 338 | |||||||||
Saxon Asset Securities Trust, Series 2004-1, Class A | 4 | 1/04 | 4 | |||||||||
Westam Mortgage Financial, Series 11, Class A | 1 | 10/02 | 1 | |||||||||
Dates | Cost | |||||||||||
Global Infrastructure Fund | Shares | Acquired | Basis | |||||||||
TGK-11 | 139 | 9/08 | $ | 130 | ||||||||
Dates | Cost | |||||||||||
International Select Fund | Shares | Acquired | Basis | |||||||||
Novatek Microelectronics | —* | 3/08 | $ | — | ||||||||
* | Due to the presentation of the financial statements in thousands, the number rounds to zero. |
Dates | Cost | |||||||||||
Real Estate Securities Fund | Shares | Acquired | Basis | |||||||||
Newcastle Investment Holdings | 35 | 6/98 | $ | 153 | ||||||||
Dates | Cost | |||||||||||
Small Cap Growth Opportunities Fund | Shares | Acquired | Basis | |||||||||
Hollis-Eden Pharmaceuticals Warrants | 71 | 2/06 | $ | 161 | ||||||||
Kuhlman Company Warrants | 282 | 1/06 | 273 | |||||||||
Lantronix Warrants | 11 | 5/08 | — | |||||||||
VideoPropulsion | 780 | 12/99 | — | |||||||||
Dates | Cost | |||||||||||
Small Cap Select Fund | Shares | Acquired | Basis | |||||||||
Lantronix Warrants | 5 | 6/08 | $ | — | ||||||||
Dates | Cost | |||||||||||
Small-Mid Cap Core Fund | Shares | Acquired | Basis | |||||||||
Lantronix Warrants | 1 | 5/08 | $ | — | ||||||||
SECURITIES LENDING – In order to generate additional income, a fund may lend securities representing up to one-third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks, or other institutional borrowers of securities. Each fund’s policy is to receive collateral from the borrower in the form of cash, U.S. government securities, or other high-grade debt obligations equal to at least 100% of the value of securities loaned. If the value of the securities on loan increases, additional collateral is received from the borrower. As with other extensions of credit, there may be risks of delay in recovery of the securities or even loss of rights in the collateral should the borrower of the security fail financially.
U.S. Bank National Association (“U.S. Bank”), the parent company of the funds’ advisor, serves as the securities lending agent for the funds in transactions involving the lending of portfolio securities on behalf of the funds. U.S. Bank acts as the securities lending agent pursuant to, and subject to compliance with conditions contained in, an exemptive order issued by the Securities and Exchange Commission (“SEC”). U.S. Bank receives fees as a percentage of each fund’s net income from securities lending transactions. With respect to Global Infrastructure Fund, International Fund, and International Select Fund, a portion of this amount is paid to State Street Bank and Trust (“State Street”) for acting as sub-lending agent. For each fund other than Global Infrastructure Fund, International Fund, and International Select Fund, collateral for securities on loan is invested in a money market fund administered by FAF Advisors and FAF Advisors receives an administration fee equal to 0.02% of such fund’s average daily net assets. For Global Infrastructure Fund, International Fund, and International Select Fund, collateral for securities on loan is invested in a money market fund administered by State Street.
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Securities lending fees paid to U.S. Bank by the funds during the fiscal period ended October 31, 2008, were as follows:
Fund | Amount | |||
Balanced Fund | $ | 114 | ||
Equity Income Fund | 392 | |||
International Fund | 405 | |||
International Select Fund | 29 | |||
Large Cap Growth Opportunities Fund | 343 | |||
Large Cap Select Fund | 161 | |||
Large Cap Value Fund | 273 | |||
Mid Cap Growth Opportunities Fund | 1,190 | |||
Mid Cap Value Fund | 449 | |||
Real Estate Securities Fund | 555 | |||
Small Cap Growth Opportunities Fund | 204 | |||
Small Cap Select Fund | 783 | |||
Small Cap Value Fund | 304 | |||
Small-Mid Cap Core Fund | 89 | |||
Income from securities lending is recorded on the Statement of Operations as securities lending income net of fees paid to U.S. Bank.
SECURITY LITIGATION SETTLEMENTS – Income from settlement proceeds related to portfolio securities no longer included in the portfolio is recorded as an adjustment to realized gains or losses. Adjustments made during the fiscal period ended October 31, 2008, were as follows:
Fund | Amount | |||
Balanced Fund | $ | 343 | ||
Equity Income Fund | 586 | |||
International Fund | 1 | |||
Large Cap Growth Opportunities Fund | 1,602 | |||
Large Cap Select Fund | 69 | |||
Large Cap Value Fund | 1,797 | |||
Mid Cap Growth Opportunities Fund | 368 | |||
Mid Cap Value Fund | 25 | |||
Small Cap Growth Opportunities Fund | 2,732 | |||
Small Cap Select Fund | 1,495 | |||
Small Cap Value Fund | 281 | |||
Small-Mid Cap Core Fund | 263 | |||
EXPENSES – Expenses that are directly related to one of the funds are charged directly to that fund. Other operating expenses are allocated to the funds on several bases, including evenly across all funds, allocated based on relative net assets of all funds within the First American Family of Funds, or a combination of both methods. Class specific expenses, such as distribution fees and shareholder servicing fees, are borne by that class. Income, other expenses, and realized and unrealized gains and losses of a fund are allocated to each respective class in proportion to the relative net assets of each class.
INTERFUND LENDING PROGRAM – Pursuant to an exemptive order issued by the SEC, the funds, along with other registered investment companies in the First American Family of Funds, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating funds. The funds did not have any interfund lending transactions during the fiscal period ended October 31, 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 PREPARATION OF FINANCIAL STATEMENTS – The preparation of financial statements, in conformity with U.S. generally accepted accounting principles, requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported results of operations during the reporting period. Actual results could differ from those estimates.
3 > | Fees and Expenses |
INVESTMENT ADVISORY FEES – Pursuant to an investment advisory agreement (the “Agreement”), FAF Advisors manages each fund’s assets and furnishes related office facilities, equipment, research, and personnel. The Agreement requires each fund to pay FAF Advisors a monthly fee based upon average daily net assets. The annual fee for each fund is as follows:
Advisory Fee | ||||||
as a % of Average | ||||||
Fund | Daily Net Assets | |||||
Balanced Fund* | 0.65 | % | ||||
Equity Income Fund* | 0.65 | |||||
Global Infrastructure Fund | 0.90 | |||||
International Fund | 1.00 | |||||
International Select Fund | 1.00 | |||||
Large Cap Growth Opportunities Fund* | 0.65 | |||||
Large Cap Select Fund* | 0.65 | |||||
Large Cap Value Fund* | 0.65 | |||||
Mid Cap Growth Opportunities Fund | 0.70 | |||||
Mid Cap Value Fund | 0.70 | |||||
Real Estate Securities Fund | 0.70 | |||||
Small Cap Growth Opportunities Fund | 1.00 | |||||
Small Cap Select Fund | 0.70 | |||||
Small Cap Value Fund | 0.70 | |||||
Small-Mid Cap Core Fund | 0.70 | |||||
* | The advisory fees for Balanced Fund, Equity Income Fund, Large Cap Growth Opportunities Fund, Large Cap Select Fund, and Large Cap Value Fund are equal to an annual rate of 0.65% of the average daily net assets up to $3 billion, 0.625% of the average daily net assets on the next $2 billion, and 0.60% of the average daily net assets in excess of $5 billion. |
FAF Advisors has agreed to waive fees and reimburse other fund expenses for the following funds through at least
First American Funds 2008 Annual Report 131
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Notes to Financial Statements October 31, 2008, all dollars and shares are rounded to thousands (000)
June 30, 2009 (October 31, 2009 for Global Infrastructure Fund), so that total fund operating expenses, excluding acquired fund fees and expenses, as a percentage of average daily net assets, do not exceed the following amounts:
Share Class | ||||||||||||||||||||||
Fund | A | B | C | R | Y | |||||||||||||||||
Balanced Fund | 1.10 | % | 1.85 | % | 1.85 | % | 1.35 | % | 0.85 | % | ||||||||||||
Global Infrastructure Fund1 | 1.25 | N/A | 2.00 | 1.50 | 1.00 | |||||||||||||||||
International Fund | 1.49 | 2.24 | 2.24 | 1.74 | 1.24 | |||||||||||||||||
International Select Fund | 1.49 | 2.24 | 2.24 | 1.74 | 1.24 | |||||||||||||||||
Small Cap Growth Opportunities Fund | 1.47 | 2.22 | 2.22 | 1.72 | 1.22 | |||||||||||||||||
Small-Mid Cap Core Fund | 1.41 | 2.16 | 2.16 | N/A | 1.16 | |||||||||||||||||
N/A = Not Applicable
1 The fund began offering Class C and Class R on November 3, 2008.
The funds may invest in related money market funds that are series of First American Funds, Inc., subject to certain limitations. In order to avoid the payment of duplicative investment advisory fees to FAF Advisors, which acts as the investment advisor to both the investing funds and the related money market funds, FAF Advisors will reimburse each investing fund an amount equal to that portion of FAF Advisor’s investment advisory fee received from the related money market funds that is attributable to the assets of the investing fund.
ADMINISTRATION FEES – FAF Advisors serves as the funds’ administrator pursuant to an administration agreement between FAF Advisors and the funds. U.S. Bancorp Fund Services, LLC (“USBFS”) serves as sub-administrator pursuant to a sub-administration agreement between USBFS and FAF Advisors. FAF Advisors is a subsidiary of U.S. Bank. Both U.S. Bank and USBFS are direct subsidiaries of U.S. Bancorp. Under the administration agreement, FAF Advisors is compensated to provide, or compensates other entities to provide, services to the funds. These services include various legal, oversight, administrative, and accounting services. The funds pay FAF Advisors administration fees, which are calculated daily and paid monthly, equal to each fund’s pro rata share of an amount equal, on an annual basis, to 0.25% of the aggregate average daily net assets of all open-end mutual funds in the First American Family of Funds up to $8 billion, 0.235% on the next $17 billion of the aggregate average daily net assets, 0.22% on the next $25 billion of the aggregate average daily net assets, and 0.20% of the aggregate average daily net assets in excess of $50 billion. All fees paid to the sub-administrator are paid from the administration fee. In addition to these fees, the funds may reimburse FAF Advisors and the sub-administrator for any out-of-pocket expenses incurred in providing administration services.
SUB-ADVISORY FEES – During the year ended October 31, 2008, J.P. Morgan Investment Management Inc. (“JP Morgan”) served as investment sub-advisor to the International Fund pursuant to a sub-advisory agreement with FAF Advisors. For the services under its sub-advisory agreement with FAF Advisors, JP Morgan was paid a monthly fee by FAF Advisors equal, on an annual basis, to 0.34% of the first $100 million of the fund’s average daily net assets, 0.30% of the next $250 million of the fund’s average daily net assets, 0.24% of the next $1.25 billion of the fund’s average daily net assets, and 0.22% of the fund’s average daily net assets in excess of $1.60 billion.
As of the close of business on October 31, 2008, JP Morgan no longer serves as an investment sub-advisor to International Fund. Effective November 3, 2008, Altrinsic Global Advisors, LLC (“Altrinsic”) and Hansberger Global Investors, Inc. (“HGI”) each serve as investment sub-advisor to International Fund pursuant to separate sub-advisory agreements with FAF Advisors. Altrinsic, HGI, and Lazard Asset Management, LLC (“Lazard”) each serve as investment sub-advisor to the International Select Fund pursuant to separate sub-advisory agreements with FAF Advisors. Each sub-advisor has discretion to select portfolio securities for its portion of the respective fund. FAF Advisors pays monthly fees to Altrinsic, HGI, and Lazard for the services provided under their respective sub-advisory agreements with FAF Advisors.
TRANSFER AGENT FEES – USBFS serves as the funds’ transfer agent pursuant to a transfer agent agreement with FAIF. The funds are charged transfer agent fees based on a per shareholder account basis, subject to a minimum fee per share class. These fees are charged to each fund based on the number of accounts within that fund. In addition to these fees, the funds may reimburse USBFS for out-of-pocket expenses incurred in providing transfer agent services.
CUSTODIAN FEES – U.S. Bank serves as the custodian for each fund other than Global Infrastructure Fund , International Fund, and International Select Fund pursuant to a custodian agreement with FAIF. The fee for each fund (except Global Infrastructure Fund, International Fund, and International Select Fund) is equal to an annual rate of 0.005% of average daily net assets. State Street Bank (“SSB”) serves as the custodian for Global Infrastructure Fund, International Fund, and International Select Fund pursuant to a custodian agreement with FAIF. Global Infrastructure Fund, International Fund, and International Select Fund pay SSB various asset-based fees and transaction charges based on the issuer’s country. All fees are computed daily and paid monthly.
Under the custodian agreements, interest earned on uninvested cash balances is used to reduce a portion of each fund’s custodian expenses. Global Infrastructure Fund, International Fund, and International Select Fund have also entered into agreements with SSB to receive certain credits to reduce the amount of custody fees incurred. These credits, if any, are disclosed as “Indirect payments from custodian” in the Statement of Operations. Conversely, the custodian charges a fee for any cash
132 First American Funds 2008 Annual Report
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overdrafts incurred, which increases the fund’s custodian expenses. Effective January 1, 2008, the agreements were amended and the funds no longer receive custody fee credits.
For the fiscal period ended October 31, 2008, custodian fees were increased as a result of overdrafts and decreased as a result of interest earned (and other custodian credits for Global Infrastructure Fund, International Fund, and International Select Fund) as follows:
Fund | Increased | Decreased | ||||||
Balanced Fund | $ | 3 | $ | 2 | ||||
Equity Income Fund | — | 2 | ||||||
Global Infrastructure Fund | — | — | ||||||
International Fund | — | 74 | ||||||
International Select Fund | — | 16 | ||||||
Large Cap Growth Opportunities Fund | 1 | 1 | ||||||
Large Cap Select Fund | 5 | — | ||||||
Large Cap Value Fund | — | 2 | ||||||
Mid Cap Growth Opportunities Fund | — | 11 | ||||||
Mid Cap Value Fund | 4 | 3 | ||||||
Real Estate Securities Fund | 1 | 4 | ||||||
Small Cap Growth Opportunities Fund | — | 1 | ||||||
Small Cap Select Fund | 2 | 3 | ||||||
Small Cap Value Fund | 4 | — | ||||||
Small-Mid Cap Core Fund | 4 | — | ||||||
DISTRIBUTION AND SHAREHOLDER SERVICING (12B-1) FEES – Quasar Distributors, LLC (“Quasar”), a subsidiary of U.S. Bancorp, serves as the distributor of the funds pursuant to a distribution agreement with FAIF. Under the distribution agreement, and pursuant to a plan adopted by each fund under rule 12b-1 of the Investment Company Act, each fund pays Quasar a monthly distribution and/or shareholder servicing fee equal to an annual rate of 0.25%, 1.00%, 1.00%, and 0.50% of each fund’s average daily net assets attributable to Class A, Class B, Class C, and Class R shares, respectively. No distribution or shareholder servicing fees are paid by Class Y shares. These fees may be used by Quasar to provide compensation for sales support, distribution activities, and/or shareholder servicing activities.
Under the distribution and shareholder servicing agreement, the following amounts were retained by affiliates of FAF Advisors for the fiscal period ended October 31, 2008:
Fund | Amount | |||
Balanced Fund | $ | 188 | ||
Equity Income Fund | 318 | |||
Global Infrastructure Fund | — | |||
International Fund | 60 | |||
International Select Fund | 7 | |||
Large Cap Growth Opportunities Fund | 151 | |||
Large Cap Select Fund | 12 | |||
Large Cap Value Fund | 140 | |||
Mid Cap Growth Opportunities Fund | 398 | |||
Mid Cap Value Fund | 130 | |||
Real Estate Securities Fund | 171 | |||
Small Cap Growth Opportunities Fund | 59 | |||
Small Cap Select Fund | 298 | |||
Small Cap Value Fund | 71 | |||
Small-Mid Cap Core Fund | 27 | |||
OTHER FEES AND EXPENSES – In addition to investment advisory fees, administration fees, transfer agent fees, custodian fees, and distribution and shareholder servicing fees, each fund is responsible for paying most other operating expenses, including: legal, auditing, registration fees, postage and printing of shareholder reports, fees and expenses of independent directors, insurance, and other miscellaneous expenses. For the fiscal period ended October 31, 2008, legal fees and expenses of $83 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.
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Notes to Financial Statements October 31, 2008, all dollars and shares are rounded to thousands (000)
For the fiscal period ended October 31, 2008, total front-end sales charges and CDSCs retained by affiliates of FAF Advisors for distributing the funds’ shares were as follows:
Fund | ||||
Balanced Fund | $ | 42 | ||
Equity Income Fund | 84 | |||
Global Infrastructure Fund | 3 | |||
International Fund | 32 | |||
International Select Fund | 15 | |||
Large Cap Growth Opportunities Fund | 44 | |||
Large Cap Select Fund | 7 | |||
Large Cap Value Fund | 26 | |||
Mid Cap Growth Opportunities Fund | 66 | |||
Mid Cap Value Fund | 23 | |||
Real Estate Securities Fund | 27 | |||
Small Cap Growth Opportunities Fund | 17 | |||
Small Cap Select Fund | 32 | |||
Small Cap Value Fund | 18 | |||
Small-Mid Cap Core Fund | 11 | |||
4 > | Capital Share Transactions |
FAIF has 366 billion shares of $0.0001 par value capital stock authorized. Capital share transactions for the funds were as follows:
Global | |||||||||||||||||||||||||||||||||
Balanced | Equity | Infrastructure | International | ||||||||||||||||||||||||||||||
Fund | Income Fund | Fund | Fund | ||||||||||||||||||||||||||||||
Year | Year | Year | Year | 12/17/07* | Year | Year | |||||||||||||||||||||||||||
Ended | Ended | Ended | Ended | to | Ended | Ended | |||||||||||||||||||||||||||
10/31/08 | 10/31/07 | 10/31/08 | 10/31/07 | 10/31/08 | 10/31/08 | 10/31/07 | |||||||||||||||||||||||||||
Class A: | |||||||||||||||||||||||||||||||||
Shares issued | 435 | 631 | 526 | 931 | 664 | 436 | 753 | ||||||||||||||||||||||||||
Shares issued in lieu of cash distributions | 1,168 | 769 | 973 | 1,124 | — | 317 | 85 | ||||||||||||||||||||||||||
Shares redeemed | (1,902 | ) | (1,737 | ) | (2,431 | ) | (1,942 | ) | (38 | ) | (1,141 | ) | (1,079 | ) | |||||||||||||||||||
Total Class A transactions | (299 | ) | (337 | ) | (932 | ) | 113 | 626 | (388 | ) | (241 | ) | |||||||||||||||||||||
Class B1: | |||||||||||||||||||||||||||||||||
Shares issued | 38 | 25 | 30 | 79 | — | 25 | 40 | ||||||||||||||||||||||||||
Shares issued in lieu of cash distributions | 86 | 86 | 87 | 125 | — | 45 | 10 | ||||||||||||||||||||||||||
Shares redeemed | (203 | ) | (580 | ) | (243 | ) | (423 | ) | — | (177 | ) | (152 | ) | ||||||||||||||||||||
Total Class B transactions | (79 | ) | (469 | ) | (126 | ) | (219 | ) | — | (107 | ) | (102 | ) | ||||||||||||||||||||
Class C1: | |||||||||||||||||||||||||||||||||
Shares issued | 19 | 34 | 49 | 51 | 36 | 59 | |||||||||||||||||||||||||||
Shares issued in lieu of cash distributions | 30 | 19 | 47 | 68 | 40 | 10 | |||||||||||||||||||||||||||
Shares redeemed | (61 | ) | (76 | ) | (200 | ) | (262 | ) | (122 | ) | (200 | ) | |||||||||||||||||||||
Total Class C transactions | (12 | ) | (23 | ) | (104 | ) | (143 | ) | — | (46 | ) | (131 | ) | ||||||||||||||||||||
Class R1: | |||||||||||||||||||||||||||||||||
Shares issued | 41 | 2 | 6 | 39 | — | — | — | ||||||||||||||||||||||||||
Shares issued in lieu of cash distributions | 1 | — | 5 | 4 | — | — | — | ||||||||||||||||||||||||||
Shares redeemed | — | (1 | ) | (15 | ) | (18 | ) | — | — | — | |||||||||||||||||||||||
Total Class R transactions | 42 | 1 | (4 | ) | 25 | — | — | — | |||||||||||||||||||||||||
Class Y: | |||||||||||||||||||||||||||||||||
Shares issued | 2,063 | 1,971 | 5,895 | 5,150 | 3,662 | 16,723 | 10,532 | ||||||||||||||||||||||||||
Shares issued in lieu of cash distributions | 2,398 | 1,790 | 2,716 | 3,727 | — | 6,896 | 1,920 | ||||||||||||||||||||||||||
Shares redeemed | (7,929 | ) | (6,272 | ) | (16,341 | ) | (15,349 | ) | (986 | ) | (45,063 | ) | (32,299 | ) | |||||||||||||||||||
Total Class Y transactions | (3,468 | ) | (2,511 | ) | (7,730 | ) | (6,472 | ) | 2,676 | (21,444 | ) | (19,847 | ) | ||||||||||||||||||||
Net increase (decrease) in capital shares | (3,816 | ) | (3,339 | ) | (8,896 | ) | (6,696 | ) | 3,302 | (21,985 | ) | (20,321 | ) | ||||||||||||||||||||
* | Commencement of operations. |
1 | Class B, Class C, and Class R shares were not offered by Global Infrastructure Fund during the period. The fund began offering Class C and Class R shares on November 3, 2008. |
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International | Large Cap Growth | Large Cap | ||||||||||||||||||||||||||
Select Fund | Opportunities Fund | Select Fund | ||||||||||||||||||||||||||
Year | 12/21/06* | Year | Year | Year | Year | |||||||||||||||||||||||
Ended | to | Ended | Ended | Ended | Ended | |||||||||||||||||||||||
10/31/08 | 10/31/07 | 10/31/08 | 10/31/07 | 10/31/08 | 10/31/07 | |||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||||||
Shares issued | 143 | 295 | 271 | 413 | 71 | 121 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | 6 | — | 248 | 33 | 59 | 7 | ||||||||||||||||||||||
Shares redeemed | (124 | ) | (29 | ) | (696 | ) | (837 | ) | (190 | ) | (130 | ) | ||||||||||||||||
Total Class A transactions | 25 | 266 | (177 | ) | (391 | ) | (60 | ) | (2 | ) | ||||||||||||||||||
Class B: | ||||||||||||||||||||||||||||
Shares issued | 19 | 27 | 14 | 29 | 1 | 4 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | 1 | — | 35 | 6 | 7 | 1 | ||||||||||||||||||||||
Shares redeemed | (7 | ) | — | (104 | ) | (183 | ) | (9 | ) | (8 | ) | |||||||||||||||||
Total Class B transactions | 13 | 27 | (55 | ) | (148 | ) | (1 | ) | (3 | ) | ||||||||||||||||||
Class C: | ||||||||||||||||||||||||||||
Shares issued | 23 | 25 | 25 | 40 | 4 | 5 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | — | — | 23 | 3 | 3 | — | ||||||||||||||||||||||
Shares redeemed | (12 | ) | (1 | ) | (79 | ) | (93 | ) | (5 | ) | (3 | ) | ||||||||||||||||
Total Class C transactions | 11 | 24 | (31 | ) | (50 | ) | 2 | 2 | ||||||||||||||||||||
Class R: | ||||||||||||||||||||||||||||
Shares issued | 7 | 1 | 8 | 4 | 1 | 1 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | — | — | 1 | — | — | — | ||||||||||||||||||||||
Shares redeemed | (1 | ) | — | (4 | ) | (7 | ) | (1 | ) | (7 | ) | |||||||||||||||||
Total Class R transactions | 6 | 1 | 5 | (3 | ) | — | (6 | ) | ||||||||||||||||||||
Class Y: | ||||||||||||||||||||||||||||
Shares issued | 21,338 | 30,297 | 3,761 | 2,632 | 8,815 | 3,283 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | 374 | 5 | 1,002 | 158 | 1,699 | 234 | ||||||||||||||||||||||
Shares redeemed | (11,780 | ) | (2,105 | ) | (6,090 | ) | (8,796 | ) | (13,334 | ) | (8,527 | ) | ||||||||||||||||
Total Class Y transactions | 9,932 | 28,197 | (1,327 | ) | (6,006 | ) | (2,820 | ) | (5,010 | ) | ||||||||||||||||||
Net increase (decrease) in capital shares | 9,987 | 28,515 | (1,585 | ) | (6,598 | ) | (2,879 | ) | (5,019 | ) | ||||||||||||||||||
* | Commencement of operations. |
Large Cap | Mid Cap Growth | Mid Cap | ||||||||||||||||||||||||||
Value Fund | Opportunities Fund | Value Fund | ||||||||||||||||||||||||||
Year | Year | Year | Year | Year | Year | |||||||||||||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | |||||||||||||||||||||||
10/31/08 | 10/31/07 | 10/31/08 | 10/31/07 | 10/31/08 | 10/31/07 | |||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||||||
Shares issued | 226 | 393 | 1,612 | 2,690 | 2,107 | 5,728 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | 711 | 443 | 1,029 | 747 | 708 | 541 | ||||||||||||||||||||||
Shares redeemed | (1,221 | ) | (1,045 | ) | (3,036 | ) | (2,071 | ) | (4,248 | ) | (3,006 | ) | ||||||||||||||||
Total Class A transactions | (284 | ) | (209 | ) | (395 | ) | 1,366 | (1,433 | ) | 3,263 | ||||||||||||||||||
Class B: | ||||||||||||||||||||||||||||
Shares issued | 10 | 21 | 21 | 49 | 16 | 48 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | 53 | 37 | 46 | 40 | 23 | 21 | ||||||||||||||||||||||
Shares redeemed | (124 | ) | (150 | ) | (101 | ) | (123 | ) | (84 | ) | (90 | ) | ||||||||||||||||
Total Class B transactions | (61 | ) | (92 | ) | (34 | ) | (34 | ) | (45 | ) | (21 | ) | ||||||||||||||||
Class C: | ||||||||||||||||||||||||||||
Shares issued | 19 | 38 | 120 | 241 | 105 | 377 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | 28 | 18 | 71 | 47 | 66 | 43 | ||||||||||||||||||||||
Shares redeemed | (43 | ) | (87 | ) | (263 | ) | (125 | ) | (293 | ) | (152 | ) | ||||||||||||||||
Total Class C transactions | 4 | (31 | ) | (72 | ) | 163 | (122 | ) | 268 | |||||||||||||||||||
Class R: | ||||||||||||||||||||||||||||
Shares issued | 6 | 2 | 449 | 318 | 731 | 847 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | 1 | 1 | 80 | 43 | 88 | 47 | ||||||||||||||||||||||
Shares redeemed | (2 | ) | (2 | ) | (267 | ) | (155 | ) | (431 | ) | (488 | ) | ||||||||||||||||
Total Class R transactions | 5 | 1 | 262 | 206 | 388 | 406 | ||||||||||||||||||||||
Class Y: | ||||||||||||||||||||||||||||
Shares issued | 4,518 | 2,404 | 4,000 | 4,461 | 2,573 | 3,775 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | 3,150 | 2,150 | 2,437 | 1,889 | 1,620 | 1,321 | ||||||||||||||||||||||
Shares redeemed | (8,720 | ) | (9,744 | ) | (7,712 | ) | (4,936 | ) | (6,204 | ) | (4,689 | ) | ||||||||||||||||
Total Class Y transactions | (1,052 | ) | (5,190 | ) | (1,275 | ) | 1,414 | (2,011 | ) | 407 | ||||||||||||||||||
Net increase (decrease) in capital shares | (1,388 | ) | (5,521 | ) | (1,514 | ) | 3,115 | (3,223 | ) | 4,323 | ||||||||||||||||||
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Notes to Financial Statements October 31, 2008, all dollars and shares are rounded to thousands (000)
Real Estate | Small Cap Growth | Small Cap | ||||||||||||||||||||||||||
Securities Fund | Opportunities Fund | Select Fund | ||||||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||||||
10/31/08 | 10/31/07 | 10/31/08 | 10/31/07 | 10/31/08 | 10/31/07 | |||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||||||
Shares issued | 5,449 | 4,146 | 991 | 2,066 | 10,356 | 12,088 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | 1,377 | 921 | 572 | 449 | 1,153 | 1,842 | ||||||||||||||||||||||
Shares redeemed | (4,781 | ) | (5,215 | ) | (6,028 | ) | (2,397 | ) | (8,283 | ) | (11,692 | ) | ||||||||||||||||
Total Class A transactions | 2,045 | (148 | ) | (4,465 | ) | 118 | 3,226 | 2,238 | ||||||||||||||||||||
Class B: | ||||||||||||||||||||||||||||
Shares issued | 29 | 119 | 7 | 12 | 34 | 171 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | 44 | 30 | 20 | 23 | 97 | 203 | ||||||||||||||||||||||
Shares redeemed | (123 | ) | (114 | ) | (69 | ) | (156 | ) | (377 | ) | (358 | ) | ||||||||||||||||
Total Class B transactions | (50 | ) | 35 | (42 | ) | (121 | ) | (246 | ) | 16 | ||||||||||||||||||
Class C: | ||||||||||||||||||||||||||||
Shares issued | 398 | 659 | 13 | 42 | 420 | 1,625 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | 100 | 49 | 9 | 8 | 186 | 213 | ||||||||||||||||||||||
Shares redeemed | (356 | ) | (398 | ) | (36 | ) | (73 | ) | (996 | ) | (520 | ) | ||||||||||||||||
Total Class C transactions | 142 | 310 | (14 | ) | (23 | ) | (390 | ) | 1,318 | |||||||||||||||||||
Class R: | ||||||||||||||||||||||||||||
Shares issued | 1,378 | 911 | 18 | 22 | 1,227 | 2,900 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | 144 | 46 | 2 | 4 | 209 | 43 | ||||||||||||||||||||||
Shares redeemed | (503 | ) | (546 | ) | (7 | ) | (67 | ) | (1,350 | ) | (369 | ) | ||||||||||||||||
Total Class R transactions | 1,019 | 411 | 13 | (41 | ) | 86 | 2,574 | |||||||||||||||||||||
Class Y: | ||||||||||||||||||||||||||||
Shares issued | 22,570 | 7,923 | 701 | 688 | 5,975 | 13,513 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | 2,761 | 1,720 | 380 | 368 | 2,082 | 4,956 | ||||||||||||||||||||||
Shares redeemed | (11,162 | ) | (11,037 | ) | (1,906 | ) | (2,772 | ) | (21,448 | ) | (18,273 | ) | ||||||||||||||||
Total Class Y transactions | 14,169 | (1,394 | ) | (825 | ) | (1,716 | ) | (13,391 | ) | 196 | ||||||||||||||||||
Net increase (decrease) in capital shares | 17,325 | (786 | ) | (5,333 | ) | (1,783 | ) | (10,715 | ) | 6,342 | ||||||||||||||||||
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Small Cap | Small-Mid Cap | ||||||||||||||||||
Value Fund | Core Fund | ||||||||||||||||||
Year | Year | Year | Year | ||||||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||||
10/31/08 | 10/31/07 | 10/31/08 | 10/31/07 | ||||||||||||||||
Class A: | |||||||||||||||||||
Shares issued | 255 | 680 | 341 | 550 | |||||||||||||||
Shares issued in lieu of cash distributions | 496 | 670 | — | — | |||||||||||||||
Shares redeemed | (1,217 | ) | (1,160 | ) | (556 | ) | (1,238 | ) | |||||||||||
Total Class A transactions | (466 | ) | 190 | (215 | ) | (688 | ) | ||||||||||||
Class B: | |||||||||||||||||||
Shares issued | 4 | 15 | 14 | 33 | |||||||||||||||
Shares issued in lieu of cash distributions | 66 | 103 | — | — | |||||||||||||||
Shares redeemed | (171 | ) | (161 | ) | (344 | ) | (327 | ) | |||||||||||
Total Class B transactions | (101 | ) | (43 | ) | (330 | ) | (294 | ) | |||||||||||
Class C: | |||||||||||||||||||
Shares issued | 52 | 90 | 77 | 123 | |||||||||||||||
Shares issued in lieu of cash distributions | 41 | 61 | — | — | |||||||||||||||
Shares redeemed | (93 | ) | (133 | ) | (126 | ) | (155 | ) | |||||||||||
Total Class C transactions | — | 18 | (49 | ) | (32 | ) | |||||||||||||
Class R:2 | |||||||||||||||||||
Shares issued | 116 | 193 | — | — | |||||||||||||||
Shares issued in lieu of cash distributions | 34 | 24 | — | — | |||||||||||||||
Shares redeemed | (124 | ) | (94 | ) | — | — | |||||||||||||
Total Class R transactions | 26 | 123 | — | — | |||||||||||||||
Class Y: | |||||||||||||||||||
Shares issued | 1,837 | 2,860 | 1,776 | 2,627 | |||||||||||||||
Shares issued in lieu of cash distributions | 2,360 | 3,430 | — | 4 | |||||||||||||||
Shares redeemed | (7,102 | ) | (7,072 | ) | (3,428 | ) | (2,229 | ) | |||||||||||
Total Class Y transactions | (2,905 | ) | (782 | ) | (1,652 | ) | 402 | ||||||||||||
Net decrease in capital shares | (3,446 | ) | (494 | ) | (2,246 | ) | (612 | ) | |||||||||||
2 Class R is not offered by the Small-Mid Cap Core Fund.
Class B shares converted to Class A shares (reflected above as Class A shares issued and Class B shares redeemed) during the fiscal period ended October 31, 2008, and the fiscal period ended October 31, 2007, were as follows:
Fiscal | Fiscal | |||||||
Period | Period | |||||||
Ended | Ended | |||||||
Fund | 10/31/08 | 10/31/07 | ||||||
Balanced Fund | 62 | 407 | ||||||
Equity Income Fund | 55 | 223 | ||||||
International Fund | 99 | 47 | ||||||
International Select Fund | 1 | — | ||||||
Large Cap Growth Opportunities Fund | 52 | 99 | ||||||
Large Cap Select Fund | — | 1 | ||||||
Large Cap Value Fund | 68 | 76 | ||||||
Mid Cap Growth Opportunities Fund | 17 | 71 | ||||||
Mid Cap Value Fund | 23 | 34 | ||||||
Real Estate Securities Fund | 14 | 13 | ||||||
Small Cap Growth Opportunities Fund | 1 | 66 | ||||||
Small Cap Select Fund | 67 | 125 | ||||||
Small Cap Value Fund | 41 | 39 | ||||||
Small-Mid Cap Core Fund | 219 | 106 | ||||||
5 > | Investment Security Transactions |
During the fiscal period ended October 31, 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 | ||||||||||||
Balanced Fund | $ | 47,554 | $ | 89,093 | $ | 322,120 | $ | 350,015 | ||||||||
Equity Income Fund | — | — | 317,896 | 515,250 | ||||||||||||
Global Infrastructure Fund | — | — | 62,712 | 33,671 | ||||||||||||
International Fund | — | — | 227,378 | 771,734 | ||||||||||||
International Select Fund | — | — | 234,814 | 173,229 | ||||||||||||
Large Cap Growth Opportunities Fund | — | — | 645,117 | 738,020 | ||||||||||||
Large Cap Select Fund | — | — | 726,118 | 808,385 | ||||||||||||
Large Cap Value Fund | — | — | 597,525 | 708,572 | ||||||||||||
Mid Cap Growth Opportunities Fund | — | — | 1,776,069 | 1,952,417 | ||||||||||||
Mid Cap Value Fund | — | — | 806,705 | 923,874 | ||||||||||||
Real Estate Securities Fund | — | — | 1,377,612 | 1,180,746 | ||||||||||||
Small Cap Growth Opportunities Fund | — | — | 311,154 | 414,502 | ||||||||||||
Small Cap Select Fund | — | — | 652,590 | 806,999 | ||||||||||||
Small Cap Value Fund | — | — | 134,765 | 206,983 | ||||||||||||
Small-Mid Cap Core Fund | — | — | 153,220 | 173,131 | ||||||||||||
The aggregate gross unrealized appreciation and depreciation of securities held by the funds and the total cost of securities (including cost of securities purchased
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Notes toFinancial Statements October 31, 2008, all dollars and shares are rounded to thousands (000)
with proceeds from securities lending) for federal tax purposes at October 31, 2008, were as follows:
Aggregate | Aggregate | Federal | ||||||||||||||
Gross | Gross | Income | ||||||||||||||
Fund | Appreciation | Depreciation | Net | Tax Cost | ||||||||||||
Balanced Fund | $ | 2,106 | $ | (42,993 | ) | $ | (40,887 | ) | $ | 250,923 | ||||||
Equity Income Fund | 133,425 | (88,064 | ) | 45,361 | 872,964 | |||||||||||
Global Infrastructure Fund | 314 | (6,105 | ) | (5,791 | ) | 26,793 | ||||||||||
International Fund | 94,799 | (184,393 | ) | (89,594 | ) | 778,591 | ||||||||||
International Select Fund | 4,695 | (119,643 | ) | (114,948 | ) | 435,141 | ||||||||||
Large Cap Growth Opportunities Fund | 26,609 | (66,814 | ) | (40,205 | ) | 634,981 | ||||||||||
Large Cap Select Fund | 3,187 | (52,271 | ) | (49,084 | ) | 342,151 | ||||||||||
Large Cap Value Fund | 26,365 | (101,886 | ) | (75,521 | ) | 665,430 | ||||||||||
Mid Cap Growth Opportunities Fund | 76,967 | (270,454 | ) | (193,487 | ) | 1,517,193 | ||||||||||
Mid Cap Value Fund | 27,912 | (135,959 | ) | (108,047 | ) | 845,082 | ||||||||||
Real Estate Securities Fund | 48,295 | (193,977 | ) | (145,682 | ) | 1,141,271 | ||||||||||
Small Cap Growth Opportunities Fund | 4,341 | (36,320 | ) | (31,979 | ) | 188,252 | ||||||||||
Small Cap Select Fund | 19,091 | (179,192 | ) | (160,101 | ) | 893,081 | ||||||||||
Small Cap Value Fund | 9,541 | (56,274 | ) | (46,733 | ) | 310,970 | ||||||||||
Small-Mid Cap Core Fund | 1,181 | (16,554 | ) | (15,373 | ) | 92,415 | ||||||||||
6 > | Options Written |
Transactions in options written for the fiscal period ended October 31, 2008, were as follows:
Put Options Written | Call Options Written | |||||||||||||||
Number of | Premium | Number of | Premium | |||||||||||||
Balanced Fund | Contracts | Amount | Contracts | Amount | ||||||||||||
Balance at October 31, 2007 | — | $ | — | 41 | $ | 10 | ||||||||||
Opened | 573 | 296 | 560 | 276 | ||||||||||||
Expired | (210 | ) | (90 | ) | (253 | ) | (114 | ) | ||||||||
Closed | (363 | ) | (206 | ) | (348 | ) | (172 | ) | ||||||||
Balance at October 31, 2008 | — | $ | — | — | $ | — | ||||||||||
7 > | Sector Risk |
Portfolios that primarily invest in a particular sector may experience greater volatility than portfolios investing in a broad range of industry sectors. Real Estate Securities Fund primarily invests in income-producing common stocks of publicly traded companies engaged in the real estate industry. The real estate industry has been subject to substantial fluctuations and declines on a local, regional, and national basis in the past and that may continue in the future. Global Infrastructure Fund concentrates its investments in infrastructure-related securities of companies in the industrial and utility sectors. The securities of these companies in the industrial and utility sectors have greater exposure to adverse economic, regulatory, political, legal, and other changes affecting the issuers of such securities. As of October 31, 2008, Large Cap Growth Opportunities Fund and Small Cap Growth Opportunities Fund each had a significant portion of their assets invested in the information technology sector, which could be more sensitive to short product cycles and aggressive pricing than the technology industry as a whole. As of the same date, Mid Cap Value Fund and Small Cap Value Fund had significant portions of their assets invested in the financials sector. The financials sector may be more greatly impacted by the performance of the overall economy, interest rates, competition, and consumer confidence and spending.
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 > | Redemption-in-Kind Transactions |
On November 29, 2007, $1,595 was redeemed from the Small Cap Growth Opportunities Fund as a redemption-in-kind transaction, on March 14, 2008, $13,066 was redeemed from the Equity Income Fund as a redemption-in-kind transaction, and on June 11, 2008, $84,930 was redeemed from the International Fund as a redemption-in-kind transaction. In each transaction, the fund paid redemption proceeds by distributing a proportionate amount of securities in the fund’s portfolio. Remaining shareholders in the fund did not recognize any additional capital gains from the transaction.
10 > | Regulatory Settlement Proceeds |
Small Cap Growth Opportunities Fund received $2,103 during the fiscal year ended October 31, 2008 from Bank of America and $177 during the fiscal year ended October 31, 2007 from Veras Capital Partners in settlements of administrative proceeds involving findings by the Securities and Exchange Commission of market timing and late trading of mutual funds. The settlements are presented in the fund’s Statement of Changes in Net Assets for the years ended October 31, 2008 and 2007, respectively. Neither the fund nor its affiliates were involved in the proceedings.
11 > | 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 October 31, 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.
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In March 2008, the FASB issued Statement of Financial Accounting Standards No. 161, “Disclosures about Derivative Instruments and Hedging Activities — an amendment of FASB Statement No. 133,” (“FAS 161”), which requires enhanced disclosures about a fund’s derivative and hedging activities. In addition, FASB issued Statement of Financial Accounting Standards Staff Position No. 133-1 and Interpretation No. 45-4, (“FSP FAS 133-1” and “FIN 45-4”) on September 12, 2008 which amends FAS 133 and FIN 45 and provides additional clarification and disclosure related to the credit risk of derivative instruments and guarantees. 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, (c) how derivative instruments affect the fund’s financial position and financial performance, and (d) the current status of the payment/performance risk of the credit derivative. FAS 161, FSP FAS 133-1, and FIN 45-4 are effective for financial statements issued for periods beginning after November 15, 2008 and interim periods within those fiscal years. The funds do not expect FAS 161, FSP FAS 133-1, and FIN 45-4 to have a material impact on the financial statement amounts; however, additional disclosures will be required.
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Notice toShareholders | October 31, 2008 (unaudited) |
RESULTS OF A SPECIAL MEETING
A special meeting of the shareholders of the International Fund was held on September 18, 2008, for shareholders of record as of July 31, 2008, to vote on the following proposals, the results of which are provided below. The shareholders of the fund voted on whether to approve an investment sub-advisory agreement between Altrinsic and the fund’s investment advisor, FAF Advisors, Inc. (the “advisor”); whether to approve an investment sub-advisory agreement between HGI and the advisor; and whether to approve a “manager-of-managers” structure for the fund.
To approve an investment sub-advisory agreement for the fund with Altrinsic (not rounded):
For | Against | Abstain | ||
75,129,595 | 112,247 | 71,499 | ||
To approve an investment sub-advisory agreement for the fund with HGI (not rounded):
For | Against | Abstain | ||
75,122,215 | 112,628 | 78,498 | ||
To authorize a “manager-of-managers” structure for the fund, whereby the advisor, subject to certain conditions, will be able to add or replace sub-advisors to the fund, or materially amend existing sub-advisory agreements, without obtaining shareholder approval (not rounded):
For | Against | Abstain | ||
75,055,602 | 185,309 | 72,430 | ||
TAX INFORMATION
The information set forth below is for each fund’s fiscal period as required by federal laws. Most shareholders, however, must report distributions on a calendar year basis for income tax purposes, which may include distributions for portions of two fiscal periods of a fund. Accordingly, the information needed for income tax purposes will be sent in early 2008 on Form 1099. Please consult your tax advisor for proper treatment of this information.
For the fiscal period ended October 31, 2008, each fund has designated long-term capital gains, ordinary income, dividends qualifying for the corporate received deduction, and qualified dividend income with regard to distributions paid during the period as follows:
Long Term | Ordinary | |||||||||||||
Capital Gains | Income | Total Taxable | ||||||||||||
Distributions | Distributions | Distributions | ||||||||||||
Fund | (Tax Basis)1 | (Tax Basis)1 | (Tax Basis) | |||||||||||
Balanced Fund | 40 | % | 60 | % | 100 | % | ||||||||
Equity Income Fund | 71 | 29 | 100 | |||||||||||
International Fund2 | 87 | 13 | 100 | |||||||||||
International Select Fund2 | 19 | 81 | 100 | |||||||||||
Large Cap Growth Opportunities Fund | 81 | 19 | 100 | |||||||||||
Large Cap Select Fund | 39 | 61 | 100 | |||||||||||
Large Cap Value Fund | 68 | 32 | 100 | |||||||||||
Mid Cap Growth Opportunities Fund | 85 | 15 | 100 | |||||||||||
Mid Cap Value Fund | 60 | 40 | 100 | |||||||||||
Real Estate Securities Fund | 60 | 40 | 100 | |||||||||||
Small Cap Growth Opportunities Fund | 19 | 81 | 100 | |||||||||||
Small Cap Select Fund | 83 | 17 | 100 | |||||||||||
Small Cap Value Fund | 53 | 47 | 100 | |||||||||||
1 | Based on a percentage of the fund’s total distributions. | |
2 | The International Fund and International Select Fund have elected to pass through to shareholders foreign taxes under Section 853 of the Internal Revenue Code. Foreign taxes paid for the funds were $4,038,296 and $670,701, respectively, and foreign source income for the funds was $47,276,257 and $8,477,972, respectively. |
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Shareholder Notification of Federal Tax Status:
Each fund has designated the following percentages of the ordinary income distributions during the fiscal period ended October 31, 2008 as dividends qualifying for the dividends received deduction available to corporate shareholders:
Fund | ||||||
Balanced Fund | 17.35 | % | ||||
Equity Income Fund | 100.00 | |||||
Global Infrastructure Fund | 0.00 | |||||
International Fund | 0.00 | |||||
International Select Fund | 0.00 | |||||
Large Cap Growth Opportunities Fund | 100.00 | |||||
Large Cap Select Fund | 20.89 | |||||
Large Cap Value Fund | 58.37 | |||||
Mid Cap Growth Opportunities Fund | 28.46 | |||||
Mid Cap Value Fund | 55.98 | |||||
Real Estate Securities Fund | 0.82 | |||||
Small Cap Growth Opportunities Fund | 3.82 | |||||
Small Cap Select Fund | 0.00 | |||||
Small Cap Value Fund | 0.00 | |||||
Small-Mid Cap Core Fund | 0.00 | |||||
In addition, each fund has designated the following percentages of the ordinary income distributions from net investment income during the fiscal period ended October 31, 2008 as qualified dividend income available to individual shareholders under the Jobs and Growth Tax Relief Reconciliation Act of 2003:
Fund | ||||||
Balanced Fund | 17.96 | % | ||||
Equity Income Fund | 100.00 | |||||
Global Infrastructure Fund | 0.00 | |||||
International Fund | 100.00 | |||||
International Select Fund | 52.87 | |||||
Large Cap Growth Opportunities Fund | 55.36 | |||||
Large Cap Select Fund | 21.26 | |||||
Large Cap Value Fund | 58.83 | |||||
Mid Cap Growth Opportunities Fund | 29.18 | |||||
Mid Cap Value Fund | 56.18 | |||||
Real Estate Securities Fund | 1.15 | |||||
Small Cap Growth Opportunities Fund | 3.81 | |||||
Small Cap Select Fund | 59.56 | |||||
Small Cap Value Fund | 39.24 | |||||
Small-Mid Cap Core Fund | 0.00 | |||||
Additional Information Applicable to Foreign Shareholders Only:
The percentage of ordinary income distributions that are designated as interest-related dividends under Internal Revenue Code Section 871(k)(l)(C) for each fund were as follows:
Fund | ||||||
Balanced Fund | 19.40 | % | ||||
Equity Income Fund | 0.10 | |||||
Global Infrastructure Fund | 0.00 | |||||
International Fund | 0.44 | |||||
International Select Fund | 0.00 | |||||
Large Cap Growth Opportunities Fund | 2.27 | |||||
Large Cap Select Fund | 0.56 | |||||
Large Cap Value Fund | 0.97 | |||||
Mid Cap Growth Opportunities Fund | 0.00 | |||||
Mid Cap Value Fund | 0.32 | |||||
Real Estate Securities Fund | 0.31 | |||||
Small Gap Growth Opportunities Fund | 0.60 | |||||
Small Cap Select Fund | 0.55 | |||||
Small Cap Value Fund | 0.79 | |||||
Small-Mid Cap Core Fund | 0.00 | |||||
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Notice to Shareholders October 31, 2008 (unaudited)
The percentage of ordinary income distributions that are designated as short-term capital gain distributions under Internal Revenue Code Section 871(k)(2)(C) for each fund were as follows:
Fund | ||||||
Balanced Fund | 65 | % | ||||
Equity Income Fund | 22 | |||||
Global Infrastructure Fund | 0 | |||||
International Fund | 13 | |||||
International Select Fund | 65 | |||||
Large Cap Growth Opportunities Fund | 97 | |||||
Large Cap Select Fund | 95 | |||||
Large Cap Value Fund | 79 | |||||
Mid Cap Growth Opportunities Fund | 100 | |||||
Mid Cap Value Fund | 78 | |||||
Real Estate Securities Fund | 0 | |||||
Small Cap Growth Opportunities Fund | 100 | |||||
Small Cap Select Fund | 79 | |||||
Small Cap Value Fund | 75 | |||||
Small-Mid Cap Core Fund | 0 | |||||
HOW TO OBTAIN A COPY OF THE FUNDS’ PROXY VOTING POLICIES AND PROXY VOTING RECORD
A description of the policies and procedures that the funds use to determine how to vote proxies relating to portfolio securities, as well as information regarding how the funds voted proxies relating to portfolio securities, is available at firstamericanfunds.com and on the 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 Securities and Exchange Commission’s website at www.sec.gov. In addition, you may review and copy the funds’ Forms N-Q at the Commission’s Public Reference Room in Washington, D.C. You may obtain information on the operation of the Public Reference Room by calling 800.SEC.0330.
QUARTERLY PORTFOLIO HOLDINGS
Each fund will make portfolio holdings information publicly available by posting the information at firstamericanfunds.com on a quarterly basis. The funds will attempt to post such information within 10 business days of the calendar quarter-end.
APPROVAL OF THE FUNDS’ INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS
The Board of Directors of the Funds (the “Board”), which is comprised entirely of independent directors, oversees the management of each Fund and, as required by law, determines annually whether to renew the Funds’ advisory agreement with FAF Advisors, Inc. (“FAF Advisors”). In addition to determining whether to renew the Agreement with FAF Advisors, the Board also is responsible for determining whether to approve sub-advisory agreements for the Funds.
At a meeting on May 5-7, 2008, the Board considered information relating to the Funds’ investment advisory agreement with FAF Advisors (the “Agreement”) and: (i) with respect to the International Fund, information relating to the sub-advisory agreement between FAF Advisors and J.P. Morgan Investment Management Inc. (“JP Morgan”), (ii) with respect to the International Select Fund, information relating to each sub-advisory agreement between FAF Advisors and Altrinsic Global Advisors, LLC (“Altrinsic”), Hansberger Global Investors, Inc. (“HGI”), and Lazard Asset Management LLC (“Lazard”) (collectively the “Sub-Advisory Agreements” and the “Sub-Advisors”). In advance of the meeting, the Board received materials relating to the Agreement and the Sub-Advisory Agreements, and had the opportunity to ask questions and request further information in connection with their consideration. At a subsequent meeting on June 17-19, 2008, the Board concluded its consideration of and approved the Agreement and the Sub-Advisory Agreements 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 considered the factors it deemed relevant, including: (1) the nature, quality and extent of FAF Advisors’ services to each Fund, (2) the investment performance of each Fund, (3) the profitability of FAF Advisors related to the Funds, including an analysis of FAF Advisors’ cost of providing services and comparative
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expense information, (4) whether economies of scale may be realized as the Funds grow and whether fee levels are adjusted to enable Fund investors to share in these potential economies of scale, and (5) other benefits that accrue to FAF Advisors through its relationship with the Funds. In its deliberations, the Board did not identify any single factor which alone was responsible for the Board’s decision to approve the Agreement and the Sub-Advisory Agreements.
Before approving the Agreement and the Sub-Advisory Agreements, the Board met in executive session with its independent counsel on numerous occasions to consider the materials provided by FAF Advisors and the terms of the Agreement and the Sub-Advisory Agreements. Based on its evaluation of those materials, the Board concluded that the Agreement is fair and in the best interests of the shareholders of each Fund and that the Sub-Advisory Agreements are fair and in the interests of the shareholders of the International Fund and of the International Select Fund. In reaching its conclusions, the Board considered the following:
Nature, Quality and Extent of Investment Advisory Services
The Board examined the nature, quality and extent of the services provided by FAF Advisors to each Fund, and the nature, quality and extent of the services provided by the Sub-Advisors to the International Fund and to the International Select Fund.
For each Fund other than the International Fund, which is sub-advised by JP Morgan, and the International Select Fund, which is sub-advised by Altrinsic, HGI and Lazard, the Board reviewed FAF Advisors’ key personnel who provide investment management services to the Fund as well as the fact that, under the Agreement, FAF Advisors has the authority and responsibility to make and execute investment decisions for the Fund within the framework of the Fund’s investment policies and restrictions, subject to review by the Board. The Board further considered that FAF Advisors’ duties with respect to each Fund include: (i) investment research and security selection, (ii) adherence to (and monitoring compliance with) the Fund’s investment policies and restrictions and the Investment Company Act of 1940, and (iii) monitoring the performance of the various organizations providing services to the Fund, including the Fund’s distributor, sub-administrator, transfer agent and custodian. Finally, the Board considered FAF Advisors’ representation that the services provided by FAF Advisors under the Agreement are the type of services customarily provided by investment advisors in the fund industry.
With respect to the International Fund and the International Select Fund, the Board examined the nature, quality and extent of the services provided by each Sub-Advisor and reviewed each Sub-Advisor’s key personnel who provide investment management services to the Funds. The Board noted that, under the Sub-Advisory Agreements, the Sub-Advisors have the authority and responsibility to make and execute investment decisions for the Funds within the framework of the Funds’ investment policies and restrictions, subject to the supervision of FAF Advisors and review by the Board. The Board further considered that the Sub-Advisor’s duties with respect to the International Fund and the International Select Fund include investment research and stock selection and adherence to the Funds’ investment policies and restrictions. The Board noted that, under the Agreement, FAF Advisors is responsible for monitoring the performance of the Sub-Advisors as well as various organizations providing services to the International Fund and to the International Select Fund, including the Funds’ distributor, sub-administrator, transfer agent and custodian. Finally, the Board considered FAF Advisors’ representation that the services provided by the FAF Advisors under the Agreement are the type of services customarily provided by investment advisors in the fund industry.
The Board considered compliance reports about FAF Advisors, JP Morgan, Altrinsic, HGI and Lazard from the Fund’s Chief Compliance Officer (“CCO”).
Based on the foregoing, the Board concluded that: (i) each Fund is likely to benefit from the nature, extent and quality of the services provided by FAF Advisors under the Agreement, and (ii) the International Fund and the International Select Fund are likely to benefit from the nature, extent and quality of the services provided by their respective Sub-Advisors under the Sub-Advisory Agreements into which each of them has entered.
Investment Performance of the Funds
The Board considered the performance of each Fund, including how each Fund performed versus the median performance of a group of comparable funds selected by an independent data service (the “performance universe”) and how each Fund performed versus its benchmark index. The performance periods considered by the Board 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 relates to the performance of the Class Y shares.
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Notice to Shareholders October 31, 2008 (unaudited)
Balanced Fund. The Board considered that the Fund outperformed its performance universe median and its benchmark index for the one-, three-, and five-year periods, though it underperformed its performance universe median and its benchmark index for the ten-year period. The Board concluded that, in light of the Fund’s competitive performance it would be in the interest of the Fund and its shareholders to renew the Agreement.
Equity Income Fund. The Board considered that the Fund outperformed or performed competitively versus its performance universe median for the one-, three-, five- and ten-year periods. The Board also considered that the Fund’s performance exceeded that of its benchmark index for all periods. The Board concluded that, in light of the Fund’s competitive performance it would be in the interest of the Fund and its shareholders to renew the Agreement.
International Fund. The Board noted that the Fund has underperformed both its benchmark index and its performance universe for the one-, three-, five- and ten-year periods. The Board also considered, however, that for the first quarter of 2008 the Fund ranked in the 26th percentile of its performance universe. Further, the Board considered that the Fund’s sub-advisor, JP Morgan, did not begin managing the Fund until December 2004 and that JP Morgan, therefore, is not responsible for the long-term performance record of the Fund. While the Board concluded that it would be in the interest of the Fund and its shareholders to renew the Agreement and the Sub-Advisory Agreement, it also decided to aggressively pursue strategic alternatives to address Fund performance, including sub-advisor replacements.
International Select Fund. The Board considered that the Fund outperformed its performance universe median for the one-year period. The Board also noted that the Fund matched its benchmark performance for the same period. The Board concluded that, in light of the Fund’s competitive performance it would be in the interest of the Fund and its shareholders to renew the Agreement and the Sub-Advisory Agreements.
Large Cap Growth Opportunities Fund. The Board considered that the Fund outperformed its performance universe for the one-, three- and five-year periods (although the Fund underperformed its performance universe for the ten-year period) and outperformed its benchmark for all periods. The Board concluded that, in light of the Fund’s competitive performance, it would be in the interest of the Fund and its shareholders to renew the Agreement.
Large Cap Select Fund. The Board considered that the Fund outperformed its performance universe for the three- and five-year periods, though it underperformed its performance universe for the one-year period and its benchmark for all periods. The Board concluded that, in light of the Fund’s competitive performance against its performance universe, it would be in the interest of the Fund and its shareholders to renew the Agreement.
Large Cap Value Fund. The Board considered that the Fund outperformed its performance universe for the one-, three- and five-year periods, though it underperformed its performance universe for the ten-year period. The Board also considered that the Fund outperformed its benchmark index for the one- and three-year periods, though it underperformed its benchmark index for longer periods. The Board noted FAF Advisor’s assertion that the Fund’s underperformance over longer periods could be attributed primarily to a former management team. The Board concluded that, in light of the Fund’s competitive performance relative to its performance universe for the one-, three- and five-year periods, it would be in the interest of the Fund and its shareholders to renew the Agreement.
Mid Cap Growth Opportunities Fund. The Board considered that the Fund outperformed its performance universe for the three-, five- and ten-year periods, and performed comparably to its performance universe for the one-year period. The Board considered that the Fund outperformed its benchmark index for all periods. The Board concluded that, in light of the Fund’s competitive performance, it would be in the interest of the Fund and its shareholders to renew the Agreement.
Mid Cap Value Fund. The Board considered that the Fund outperformed its performance universe for the one-, three- and five-year periods, though it underperformed its performance universe for the ten-year period. The Board also considered that the Fund outperformed its benchmark index for the one- and three-year periods, though it underperformed its benchmark index for longer periods. The Board noted FAF Advisor’s assertion that the Fund’s underperformance over longer periods could be attributed primarily to a former management team. The Board concluded that, in light of the Fund’s competitive performance relative to its performance universe for the one-, three- and five-year periods, it would be in the interest of the Fund and its shareholders to renew the Agreement.
Real Estate Securities Fund. The Board considered that the Fund outperformed its benchmark index and its performance universe for the one-, three-, five-, and ten-year periods. The Board concluded that, in light of the Fund’s competitive performance, it would be in the interest of the Fund and its shareholders to renew the Agreement.
Small Cap Growth Opportunities Fund. The Board noted that the Fund underperformed both its performance universe and its benchmark index for the one-, three-, and five-year periods, though it outperformed its performance universe and benchmark index for the ten-year period. The Board considered that FAF Advisors recently implemented changes in the Fund’s management team to address the Fund’s underperformance. The Board noted that the Fund outperformed or
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performed competitively versus its performance universe and benchmark index during the one-, three- and six-month periods ended April 30, 2008. The Board concluded that, in light of the Fund’s changes in management and the recent improvement in the Fund’s performance, it would be in the interest of the Fund and its shareholders to renew the Agreement.
Small Cap Select Fund. The Board noted that the Fund outperformed or performed competitively against its performance universe for the three-, five- and ten-year periods, though it underperformed its performance universe for the one-year period. The Board also noted that the Fund underperformed its benchmark index for the one-, three-, and five-year periods, though it outperformed its benchmark index for the ten-year period. The Board considered that FAF Advisors recently implemented certain measures to improve the Fund’s performance. The Board noted that the Fund outperformed or performed competitively against its benchmark index and performance universe for the one- and three-month periods ended April 30, 2008. The Board concluded that, in light of the recent improvement in the Fund’s performance, it would be in the interest of the Fund and its shareholders to renew the Agreement.
Small Cap Value Fund. The Board noted that the Fund outperformed its performance universe for the three- and five- year periods while it underperformed its performance universe for the one- and ten-year periods. The Board also noted that the Fund outperformed its benchmark index for the one-year period, though it underperformed its benchmark index for all other periods. The Board concluded that, in light of the Fund’s competitive performance versus the performance universe for the three- and five-year periods, it would be in the interest of the Fund and its shareholders to renew the Agreement.
Small-Mid Cap Core Fund. The Board noted that the Fund outperformed its benchmark and performed comparably to its performance universe for the one-year period, though it underperformed its benchmark index and performance universe for the remaining periods. The Board considered FAF Advisors’ assertion that the Fund has operated as a small-mid cap core fund only since October 3, 2005, therefore comparisons of the Fund’s performance against a mid-cap core performance universe and the Russell 2500 benchmark index for the three-, five- and ten-year periods are not meaningful. In light of this and of the Fund’s competitive short-term performance, the Board concluded it would be in the interest of the Fund and its shareholders to renew the Agreement.
Costs of Services and Profits Realized by FAF Advisors
The Board reviewed FAF Advisors’ 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 reviewed fee and expense information as compared to that of other funds and accounts managed by FAF Advisors and of comparable funds managed by other advisors. The Board found that while the management fees for FAF Advisors’ institutional separate accounts are lower than the Funds’ management fees, the Funds receive additional services from FAF Advisors that separate accounts do not receive.
Using information provided by an independent data service, the Board also evaluated each Fund’s advisory fee compared to the median advisory fee for other mutual funds similar in size, character and investment strategy, and each Fund’s expense ratio after waivers compared to the median expense ratio, after waivers, of comparable funds. In connection with its review of Fund fees and expenses, the Board considered FAF Advisors’ pricing philosophy. FAF Advisors attempts generally to maintain each Fund’s total operating expenses at a level that approximates the median of a peer group of funds selected by an independent data service. In addition, FAF Advisors has committed to waive its investment advisory fees to the extent necessary to maintain the Funds’ total expense ratios at levels generally in line with their respective peer groups.
Further detail considered by the Board regarding the advisory fees and expense ratios of each Fund is set forth below:
Balanced Fund. The Board considered that, after waivers, the Fund’s advisory fee and total expense ratio are 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.
Equity Income Fund. The Board considered that the Fund’s advisory fee and total expenses are higher than the peer group median, though consistent with FAF Advisors’ pricing philosophy. The Board concluded that the advisory fee and total expense ratio are reasonable in light of the services provided.
International Fund. The Board noted that the Fund’s advisory fee and total expense ratio, after waivers, are higher than those of its peer group median, though consistent with FAF Advisors’ pricing philosophy. The Board concluded that the advisory fee and total expense ratio are reasonable in light of the services provided.
International Select Fund. The Board considered that, after waivers, the Fund’s advisory fee is lower that the peer group median. The Board also considered that the Fund’s total expense ratio, after waivers, is equal to that of the peer group median. The Board concluded that the Fund’s advisory fee and total expense ratio are reasonable in light of the services provided.
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Notice to Shareholders October 31, 2008 (unaudited)
Large Cap Growth Opportunities Fund. The Board considered that the Fund’s advisory fee is equal to the peer group median. The Board also noted that the Funds’ total expense ratio is lower than the peer group median. The Board concluded that the Fund’s advisory fee and total expense ratio are reasonable in light of the services provided.
Large Cap Select Fund. The Board considered that the Fund’s advisory fee and total expense ratio are higher than the peer group median, though consistent with FAF Advisors’ pricing philosophy. The Board concluded that the Fund’s advisory fee and total expense ratio are reasonable in light of the services provided.
Large Cap Value Fund. The Board considered that the Fund’s advisory fee and total expense ratio are higher than the peer group median, though consistent with FAF Advisors’ pricing philosophy. The Board concluded that the advisory fee and total expense ratio are reasonable in light of the services provided.
Mid Cap Growth Opportunities Fund. The Board considered that, although the Fund’s advisory fee is higher than the peer group median, the Fund’s total expense ratio is lower than the peer group median. The Board concluded that the Fund’s advisory fee and total expense ratio are reasonable in light of the services provided.
Mid Cap Value Fund. The Board considered that the Fund’s advisory fee and total expense ratio are 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.
Real Estate Securities Fund. The Board considered that the Fund’s advisory fee is higher than the peer group median, though the total expense ratio is lower than the peer group median. The Board concluded that the Fund’s advisory fee and total expense ratio are reasonable in light of the services provided.
Small Cap Growth Opportunities Fund. The Board considered that, although the Fund’s advisory fee, after waivers, is higher than the peer group median, the Fund’s total expense ratio is nearly the same as that of the peer group median. The Board concluded that the Fund’s advisory fee and total expense ratio are reasonable in light of the services provided.
Small Cap Select Fund. The Board considered that the Fund’s advisory fee and total expense ratio are 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.
Small Cap Value Fund. The Board considered that the Fund’s advisory fee and total expense ratio are 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.
Small-Mid Cap Core Fund. The Board considered that the Fund’s advisory fee, after waivers, is lower than the peer group median. The Board also considered that the Fund’s total expense ratio, after waivers, is higher than the peer group median, though consistent with FAF Advisors’ pricing philosophy. The Board concluded that the Fund’s advisory fee and total expense ratio, after taking into account waivers, are reasonable in light of the services provided.
Economies of Scale in Providing Investment Advisory Services
The Board considered the extent to which each Fund’s investment advisory fee reflects economies of scale for the benefit of Fund shareholders. Based on information provided by FAF Advisors, the Board noted that profitability will likely increase somewhat as assets grow over time. The Board considered that, although most Funds do not have advisory fee breakpoints in place, FAF Advisors has committed to waive advisory fees to the extent necessary to keep each Fund’s total expenses generally in line with the median total expenses of a peer group of funds as selected by an independent data service. The Board considered 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, transfer agent, distributor, custodian (except with respect to International Fund and International Select Fund) and securities lending agent, and receive compensation from the Funds in connection with providing services to the Funds. The Board considered that
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each service provided to the Funds by FAF Advisors or one of its affiliates is pursuant to a written agreement, which the Board evaluates periodically as required by law.
The Board also considered FAF Advisors’ use of the Funds’ portfolio brokerage transactions to obtain research. The Board concluded, based on its own review and on representations of FAF Advisors and the CCO, that FAF Advisors’ use of “soft” commission dollars was consistent with regulatory requirements.
After full consideration of these and other factors, the Board concluded that approval of the Agreement was in the interest of each Fund and its shareholders.
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Notice to Shareholders October 31, 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; Advisor/Consultant, Future FreightTM, a logistics/supply chain company since August 2004; Vice President and Chief Operating Officer, Cargo-United Airlines, from July 2001 until retirement in June 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 since 2001; Board Chair, United Educators Insurance Company | 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, William Blair & Company, LLC, a Chicago-based investment firm | 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 | 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., a consulting company providing advice on business strategy, mergers and acquisitions, and non-profit board member since 2005 | First American Funds Complex: twelve registered investment companies, including sixty-two portfolios | Cliffs Natural Resources, Inc. (a producer of iron ore pellets and coal) | |||||
Joseph D. Strauss P.O. Box 1329 Minneapolis, MN 55440-1329 (1940) | Director | Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since April 1991 | Attorney At Law, Owner and President, Strauss Management Company, a Minnesota holding company for various organizational management business ventures; Owner, Chairman and Chief Executive Officer, Community Resource Partnerships, Inc., a 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 | 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; Chair, Saint Paul Riverfront Corporation, Since 2005 | First American Funds Complex: twelve registered investment companies, including sixty-two portfolios | None | |||||
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Independent Directors – concluded | ||||||||||
Other | ||||||||||
Position(s) | Term of Office | Number of Portfolios | Directorships | |||||||
Name, Address, and | Held | and Length of | Principal Occupation(s) | in Fund Complex | Held by | |||||
Year of Birth | with Funds | Time Served | During Past 5 Years | Overseen by Director | Director † | |||||
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.
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Notice to Shareholders October 31, 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 & Vice President – Investments | 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. | |||
Mark D. Corns FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1963)* | Anti-Money Laundering Officer | Re-elected by the Board annually; Anti-Money Laundering Officer of FAIF since September 2008 | Director of Compliance, FAF Advisors, Inc. since June 2006; Compliance Manager, FAF Advisors, Inc. from January 2005 to June 2006; prior thereto, Compliance Manager, OppenheimerFunds, 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, Corns, 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. |
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Board of Directors First American Investment Funds, Inc.
Virginia Stringer
Chairperson of First American Investment Funds, Inc.
Governance Consultant; Chair of Saint Paul Riverfront Corporation;
former Owner and President of Strategic Management Resources, Inc.
Benjamin Field III
Director of First American Investment Funds, Inc.
Retired; former Senior Financial Advisor, Senior Vice President,
Chief Financial Officer, and Treasurer of Bemis Company, Inc.
Roger Gibson
Director of First American Investment Funds, Inc.
Director of Charterhouse Group, Inc.
Victoria Herget
Director of First American Investment Funds, Inc.
Investment Consultant; Chair of United Educators Insurance Company;
former Managing Director of Zurich Scudder Investments
John Kayser
Director of First American Investment Funds, Inc.
Retired; former Principal, Chief Financial Officer, and Chief Administrative Officer of William Blair & Company, LLC
Leonard Kedrowski
Director of First American Investment Funds, Inc.
Owner and President of Executive and Management Consulting, Inc.
Richard Riederer
Director of First American Investment Funds, Inc.
Owner and Chief Executive Officer of RKR Consultants, Inc.
Joseph Strauss
Director of First American Investment Funds, Inc.
Owner and President of Strauss Management Company
James Wade
Director of First American Investment Funds, Inc.
Owner and President of Jim Wade Homes
First American Investment Funds’ Board of Directors is comprised entirely of
independent directors.
independent directors.
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![(FIRST AMERICAN FUNDS LOGO)](https://capedge.com/proxy/N-CSR/0000950137-09-000237/c48053faflogo.gif)
Direct fund correspondence to:
First American Funds
P.O. Box 1330
Minneapolis, MN 55440-1330
This report and the financial statements contained herein are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Further, there is no assurance that certain securities will remain in or out of each fund’s portfolio. The views expressed in this report reflect those of the portfolio managers only through the period ended October 31, 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
CUSTODIANS
U.S. Bank National Association
60 Livingston Avenue
St. Paul, Minnesota 55101
State Street Bank and Trust Company
2 Avenue de Lafayette
Boston, Massachusetts 02111
DISTRIBUTOR
Quasar Distributors, LLC
615 East Michigan Street
Milwaukee, Wisconsin 53202
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
220 South Sixth Street
Suite 1400
Minneapolis, Minnesota 55402
COUNSEL
Dorsey & Whitney LLP
50 South Sixth Street
Suite 1500
Minneapolis, Minnesota 55402
First American Funds
P.O. Box 1330
Minneapolis, MN 55440-1330
In an attempt to reduce shareholder costs and help eliminate duplication, First American Funds will try to limit their mailing to one report for each address that lists one or more shareholders with the same last name. If you would like additional copies, please call First American Investor Services at 800.677.FUND or visit firstamericanfunds.com
0182-08 12/2008 AR-EQUITY
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Mutual fund investing involves risk; principal loss is possible.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
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Message to Shareholders December 8, 2008
Dear Shareholders:
We invite you to take a few minutes to review the results of the fiscal year ended October 31, 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
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Explanation of Financial Statements
As a shareholder in First American Funds, you receive shareholder reports semiannually. We strive to present this financial information in an easy-to-understand format; however, for many investors, the information contained in this shareholder report may seem very technical. So, we would like to take this opportunity to explain several sections of the shareholder report.
The Schedule of Investments details all of the securities held in the fund and their related dollar values on the last day of the reporting period. Securities are usually presented by type (common stock, bonds, etc.) and by industry classification (banking, communications, etc.). This information is useful for analyzing how your fund’s assets are invested and seeing where your portfolio manager believes the best opportunities exist to meet your objectives. Holdings are subject to change without notice and do not constitute a recommendation of any individual security. The Notes to the Financial Statements provide additional details on how the securities are valued.
The Statement of Assets and Liabilities lists the assets and liabilities of the fund and present the fund’s net asset value (“NAV”) per share on the last day of the reporting period. The NAV is calculated by dividing the fund’s net assets (assets minus liabilities) by the number of shares outstanding. The investments, as presented in the Schedule of Investments, comprise substantially all of the fund’s assets. Other assets include cash and receivables for items such as income earned by the fund but not yet received. Liabilities include payables for items such as fund expenses incurred but not yet paid.
The Statement of Operations details the dividends and interest income earned from securities as well as the expenses incurred by the fund during the reporting period. Fund expenses may be reduced through fee waivers or reimbursements. This statement reflects total expenses before any waivers or reimbursements, the amount of waivers and reimbursements (if any), and the net expenses. This statement also shows the net realized and unrealized gains and losses from investments owned during the period. The Notes to Financial Statements provide additional details on investment income and expenses of the fund.
The Statement of Changes in Net Assets describes how the fund’s net assets were affected by its operating results, distributions to shareholders, and shareholder transactions during the reporting period. This statement is important to investors because it shows exactly what caused the fund’s net asset size to change during the period.
The Financial Highlights provide a per-share breakdown of the components that affected the fund’s NAV for the current and past reporting periods. It also shows total return, expense ratios, net investment income ratios, and portfolio turnover rates. The net investment income ratios summarize the income earned less expenses, divided by the average net assets. The expense ratios represent the percentage of average net assets that were used to cover operating expenses during the period. Expense ratios can vary across funds for a number of reasons, including differences in advisory fees and the average shareholder account size. The portfolio turnover rate represents the percentage of the fund’s holdings that have changed over the course of the period, and gives an idea of how long the fund holds onto a particular security. A 100% turnover rate implies that an amount equal to the value of the entire portfolio is turned over in a year through the purchase and sale of securities.
The Notes to Financial Statements disclose the organizational background of the fund, its significant accounting policies, federal tax information, fees and compensation paid to affiliates, and significant risks and contingencies.
We hope this guide to your shareholder report will help you get the most out of this important resource. You can visit First American Funds’ website for other useful information on each of our funds, including fund prices, performance, fund manager bios, dividends, and downloadable fact sheets. For more information, call First American Investor Services at 800.677.FUND or visit firstamericanfunds.com.
2 First American Funds 2008 Annual Report
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Equity Index Fund
Investment Objective: to provide investment results that correspond to the performance of the Standard & Poor’s
500 Index* (“S&P 500 Index”).
500 Index* (“S&P 500 Index”).
How did the fund perform for the fiscal year ended October 31, 2008?
The First American Equity Index Fund (the “fund”), Class Y shares, returned -36.18% for the fiscal year October 31, 2008 (Class A shares returned -36.35% without taking the sales charge into account). By comparison, the fund’s benchmark, the S&P 500 Index, returned -36.10% for the same period.
How did market conditions affect stock market performance during the reporting period?
It’s impossible to discuss the state of the equity markets during the fiscal period without addressing the impact of the subprime loan debacle and the ensuing financial crisis on stock market performance. Concerns about the proliferation of subprime mortgage loans and the lax lending standards they represented arose as early as February 2007. By October 2007, the threat of large-scale defaults became more pronounced, as did their potential effect on various highly complex securities into which subprime mortgages had been converted. What caught most market participants off guard was the severity of the crisis — the sheer volume of assets that were impaired, the extent to which the holders of those assets were hurt, and the effect of these assets on the financial system.
The financial crisis that followed gradually brought most credit activity to a halt and drained liquidity out of the markets, prompting the federal government to stage several interventions to save ailing financial institutions whose vulnerability suddenly became apparent. The takeovers of Federal Home Loan Mortgage Corporation (Freddie Mac), Federal National Mortgage Association (Fannie Mae), and of AIG, however, were ad hoc solutions rather than consequences of any broad-based policy. In the absence of such policy, the government actions tended to cause more uncertainty than calm, and the markets lost trust in this approach. Prolonged volatility ensued.
What began as a U.S.-based financial crisis rapidly led to a global recession and with it the collapse of commodity prices and the prospect of sharply reduced corporate earnings. As hedge funds undertook a massive effort to repay the loans on which they relied for operations, liquidation sales forced asset prices to plummet far below their fair value. In this environment, the outlook for financial markets appeared bleak indeed. By the end of the fiscal period, however, there were signs that the worst may be behind us. For one thing, the coordinated policy response to the crisis by governments worldwide began to introduce a measure of ease to the financial and credit markets, restoring badly needed liquidity. And because forced liquidations brought asset prices into the bargain territory, there is good value now for investors to be found in the riskier asset classes.
What will be the likely developments in the equity markets in the coming fiscal year?
We expect the more defensively positioned sectors (healthcare, consumer staples) and sectors that tend to thrive early in the economic cycle (financials, consumer discretionary, retail) to make gains, while late-cycle sectors (energy, basic materials, industrials) will most likely remain under pressure. Clearly, conditions will remain challenging for some time to come, but as the most acute stages of the crisis recede into the past, we anticipate a gradual return of opportunities.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Top 10 Holdings as of October 31, 20081 (% of net assets)
Exxon Mobil | 4 | .5% | ||
General Electric | 2 | .3 | ||
Procter & Gamble | 2 | .3 | ||
Microsoft | 2 | .0 | ||
Johnson & Johnson | 2 | .0 | ||
AT&T | 1 | .8 | ||
Chevron | 1 | .8 | ||
JPMorgan Chase | 1 | .8 | ||
First American Prime Obligations Fund, Class Z | 1 | .5 | ||
Wal-Mart Stores | 1 | .5 | ||
Sector Allocation as of October 31, 20081 (% of net assets)
Information Technology | 15 | .6% | ||
Financials | 14 | .5 | ||
Healthcare | 13 | .5 | ||
Energy | 12 | .9 | ||
Consumer Staples | 12 | .7 | ||
Industrials | 10 | .7 | ||
Consumer Discretionary | 8 | .1 | ||
Utilities | 3 | .7 | ||
Telecommunication Services | 3 | .3 | ||
Materials | 3 | .1 | ||
Short-Term Investments | 1 | .8 | ||
Other Assets and Liabilities, Net2 | 0 | .1 | ||
100 | .0% | |||
1 | Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security. |
2 | Investments in securities typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
First American Funds 2008 Annual Report 3
Table of Contents
Equity Index Fund
Fund Overview
The fund is invested to replicate the S&P 500 Index as closely as possible with consideration given to turnover costs and fees. As a result, the fund performed very similarly to the index. The index includes 500 leading companies in the major industries of the U.S. economy and covers about 75% of the dollar value of all traded stocks in the U.S. market.
The best-performing sectors during the fiscal year were consumer staples, healthcare, and utilities, having fallen by 12%, 24%, and 29%, respectively. The sector that declined the most over the same period was financials, falling by 52%. In October 2008, the overall financial sector lost 22% with its constituent real estate and insurance industries falling one-third each.
4 First American Funds 2008 Annual Report
Table of Contents
Annual Performance1,2
October 31, 2008 | September 30, 2008* | |||||||||||||||||||||||||||||||||||||||
Since Inception | Since Inception | |||||||||||||||||||||||||||||||||||||||
1 year | 5 years | 10 years | 2/01/1999 | 9/24/2001 | 1 year | 5 years | 10 years | 2/01/1999 | 9/24/2001 | |||||||||||||||||||||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||||||||||||||||||||||||||
Class A | (39.85 | )% | (1.38 | )% | (0.72 | )% | — | — | (26.50 | )% | 3.46 | % | 1.93 | % | — | — | ||||||||||||||||||||||||
Class B | (39.89 | )% | (1.37 | )% | (0.91 | )% | — | — | (26.56 | )% | 3.52 | % | 1.74 | % | — | — | ||||||||||||||||||||||||
Class C | (37.45 | )% | (0.99 | )% | — | (2.43 | )% | — | (23.56 | )% | 3.86 | % | — | (0.56 | )% | — | ||||||||||||||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||||||||||||||||||||||||||
Class A | (36.35 | )% | (0.25 | )% | (0.16 | )% | — | — | (22.23 | )% | 4.64 | % | 2.51 | % | — | — | ||||||||||||||||||||||||
Class B | (36.82 | )% | (1.00 | )% | (0.91 | )% | — | — | (22.81 | )% | 3.86 | % | 1.74 | % | — | — | ||||||||||||||||||||||||
Class C | (36.83 | )% | (0.99 | )% | — | (2.43 | )% | — | (22.81 | )% | 3.86 | % | — | (0.56 | )% | — | ||||||||||||||||||||||||
Class R | (36.51 | )% | (1.48 | )% | — | — | 0.65 | % | (22.41 | )% | 4.41 | % | — | — | 3.35 | % | ||||||||||||||||||||||||
Class Y | (36.18 | )% | (0.01 | )% | (0.09 | )% | — | — | (22.04 | )% | 4.90 | % | 2.76 | % | — | — | ||||||||||||||||||||||||
S&P 500 Index3 | (36.10 | )% | 0.26 | % | 0.40 | % | (1.13 | )% | 1.34 | % | (21.98 | )% | 5.17 | % | 3.06 | % | 0.76 | % | 4.04 | % | ||||||||||||||||||||
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
1 | Mutual fund investing involves risk; principal loss is possible. |
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 5.50% for Class A shares and the contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.
Investment performance reflects fee waivers that were in effect during the periods indicated. In the absence of such fee waivers, total returns would be reduced.
As of the most recent prospectus, the fund’s total annual operating expense ratio for Class A, Class B, Class C, Class R, and Class Y shares was 0.76%, 1.51%, 1.51%, 1.01% and 0.51%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through 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 0.62%, 1.37%, 1.37%, 0.87% and 0.37%, respectively. These fee waivers and expense reimbursements may be terminated at any time after June 30, 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.
* | This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period. |
Value of $10,000 Investment1,2,4 as of October 31, 2008
Equity Index Fund, Class A (NAV) | ![]() | $ | 9,844 | |||||
Equity Index Fund, Class A (POP) | ![]() | $ | 9,301 | |||||
S&P 500 Index3 | ![]() | $ | 10,403 | |||||
This chart illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 10/31/1998 to 10/31/2008) as compared to the S&P 500 Index3.
![(EQUITY INDEX LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950137-09-000237/c48053c4805301.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
3 | An unmanaged, market capitalization-weighted index based on the average weighted performance of 500 widely held large-cap common stocks. |
4 | Performance for Class B, Class C, Class R, and Class Y shares is not presented. Performance for these classes will vary due to the different expense structures. |
First American Funds 2008 Annual Report 5
Table of Contents
Mid Cap Index Fund
Investment Objective: to provide investment results that correspond to the performance of the Standard & Poor’s MidCap 400 Index* (“S&P MidCap 400 Index”).
How did the fund perform for the fiscal year ended October 31, 2008?
The First American Mid Cap Index Fund (the “fund”), Class Y shares, returned -36.31% for the fiscal year ended October 31, 2008 (Class A shares returned -36.46% without taking the sales charge into account). By comparison, the fund’s benchmark, the S&P MidCap 400 Index, returned -36.46% for the same period.
How did market conditions affect stock market performance during the reporting period?
It’s impossible to discuss the state of the equity markets during the fiscal period without addressing the impact of the subprime loan debacle and the ensuing financial crisis on stock market performance. Concerns about the proliferation of subprime mortgage loans and the lax lending standards they represented arose as early as February 2007. By October 2007, the threat of large-scale defaults became more pronounced, as did their potential effect on various highly complex securities into which subprime mortgages had been converted. What caught most market participants off guard was the severity of the crisis — the sheer volume of assets that were impaired, the extent to which the holders of those assets were hurt, and the effect of these assets on the financial system.
The financial crisis that followed gradually brought most credit activity to a halt and drained liquidity out of the markets, prompting the federal government to stage several interventions to save ailing financial institutions whose vulnerability suddenly became apparent. The takeovers of Federal Home Loan Mortgage Corporation (Freddie Mac), Federal National Mortgage Association (Fannie Mae), and of AIG, however, were ad hoc solutions rather than consequences of any broad-based policy. In the absence of such policy, the government actions tended to cause more uncertainty than calm, and the markets lost trust in this approach. Prolonged volatility ensued.
What began as a U.S.-based financial crisis rapidly led to a global recession and with it the collapse of commodity prices and the prospect of sharply reduced corporate earnings. As hedge funds undertook a massive effort to repay the loans on which they relied for operations, liquidation sales forced asset prices to plummet far below their fair value. In this environment, the outlook for financial markets appeared bleak indeed. By the end of the fiscal period, however, there were signs that the worst may be behind us. For one thing, the coordinated policy response to the crisis by governments worldwide began to introduce a measure of ease to the financial and credit markets, restoring badly needed liquidity. And because forced liquidations brought asset prices into the bargain territory, there is good value now for investors to be found in the riskier asset classes.
What will be the likely developments in the equity markets in the coming fiscal year?
We expect the more defensively positioned sectors (healthcare, consumer staples) and sectors that tend to thrive early in the economic cycle (financials, consumer discretionary, retail) to make gains, while late-cycle sectors (energy, basic materials, industrials) will most likely remain under pressure. Clearly, conditions will remain challenging for some time to come, but as the most acute stages of the crisis recede into the past, we anticipate a gradual return of opportunities.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Top 10 Holdings as of October 31, 20081 (% of net assets)
First American Prime Obligations Fund, Class Z | 6 | .1% | ||
U.S. Treasury Bill, 1.578%, 12/18/2008 | 0 | .7 | ||
McAfee | 0 | .7 | ||
New York Community Bancorp | 0 | .6 | ||
Stericycle | 0 | .6 | ||
Cephalon | 0 | .6 | ||
Everest Re Group | 0 | .6 | ||
DENTSPLY International | 0 | .6 | ||
Equitable Resources | 0 | .6 | ||
Health Care – REIT | 0 | .6 | ||
Sector Allocation as of October 31, 20081 (% of net assets)
Financials | 18 | .2% | ||
Industrials | 14 | .4 | ||
Consumer Discretionary | 12 | .1 | ||
Information Technology | 11 | .9 | ||
Healthcare | 11 | .1 | ||
Utilities | 7 | .8 | ||
Energy | 6 | .5 | ||
Materials | 6 | .1 | ||
Consumer Staples | 3 | .8 | ||
Telecommunication Services | 0 | .6 | ||
Short-Term Investments | 6 | .8 | ||
Other Assets and Liabilities, Net2 | 0 | .7 | ||
100 | .0% | |||
1 | Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security. |
2 | Investments in securities typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
6 First American Funds 2008 Annual Report
Table of Contents
Fund Overview
The fund is invested to replicate the S&P MidCap 400 Index as closely as possible with consideration given to turnover costs and fees. As a result, the fund performed very similarly to the index. The index includes stocks that reflect the risk and return characteristics of the broader mid-cap universe. Mid-cap stocks are now being recognized as an independent asset class and the capitalization range of this index covers about 10% of the U.S. equities market.
The best-performing sectors during the fiscal year were utilities, consumer staples, and healthcare, having fallen by 24%, 27%, and 30%, respectively. The sector that declined the most over the same period was telecommunications, falling by 60%. Between the end of July 2008 and October 2008, the decline in commodities prices helped to explain the 45% to 50% fall in materials and energy firms.
First American Funds 2008 Annual Report 7
Table of Contents
Mid Cap Index Fund
Annual Performance1,2
October 31, 2008 | September 30, 2008* | |||||||||||||||||||||||||||||||||||||||
Since Inception | Since Inception | |||||||||||||||||||||||||||||||||||||||
1 year | 5 years | 11/04/1999 | 11/27/2000 | 9/24/2001 | 1 year | 5 years | 11/04/1999 | 11/27/2000 | 9/24/2001 | |||||||||||||||||||||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||||||||||||||||||||||||||
Class A | (39.94 | )% | 0.31 | % | 3.40 | % | — | — | (21.35 | )% | 6.88 | % | 6.30 | % | — | — | ||||||||||||||||||||||||
Class B | (39.71 | )% | 0.39 | % | 3.30 | % | — | — | (21.01 | )% | 6.98 | % | 6.21 | % | — | — | ||||||||||||||||||||||||
Class C | (37.47 | )% | 0.71 | % | — | — | 4.25 | % | (18.16 | )% | 7.27 | % | — | — | 8.00 | % | ||||||||||||||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||||||||||||||||||||||||||
Class A | (36.46 | )% | 1.46 | % | 4.05 | % | — | — | (16.78 | )% | 8.09 | % | 6.98 | % | — | — | ||||||||||||||||||||||||
Class B | (36.90 | )% | 0.70 | % | 3.30 | % | — | — | (17.34 | )% | 7.28 | % | 6.21 | % | — | — | ||||||||||||||||||||||||
Class C | (36.91 | )% | 0.71 | % | — | — | 4.25 | % | (17.42 | )% | 7.27 | % | — | — | 8.00 | % | ||||||||||||||||||||||||
Class R | (36.66 | )% | 1.21 | % | — | 1.82 | % | — | (16.96 | )% | 7.83 | % | — | 5.07 | % | — | ||||||||||||||||||||||||
Class Y | (36.31 | )% | 1.69 | % | 4.30 | % | — | — | (16.54 | )% | 8.35 | % | 7.25 | % | — | — | ||||||||||||||||||||||||
S&P MidCap 400 Index3 | (36.46 | )% | 1.96 | % | 4.94 | % | 2.73 | % | 5.69 | % | (16.68 | )% | 8.65 | % | 7.92 | % | 6.02 | % | 9.52 | % | ||||||||||||||||||||
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
1 | Stocks of mid-capitalization companies may be slightly less volatile than those of small-capitalization companies, but they still involve substantial risk and may be subject to increased volatility and more price fluctuation than large-capitalization companies. |
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV.
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 5.50% for Class A shares and the contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.
Investment performance reflects fee waivers that were in effect during the periods indicated. In the absence of such fee waivers, total returns would be reduced.
As of the most recent prospectus, the fund’s total annual operating expense ratio (including acquired fund fees and expenses) for Class A, Class B, Class C, Class R, and Class Y shares was 0.82%, 1.57%, 1.57%, 1.07% and 0.57%, 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 (excluding acquired fund fees and expenses) for Class A, Class B, Class C, Class R and Class Y shares do not exceed 0.75%, 1.50%, 1.50%, 1.00% and 0.50%, respectively. These fee waivers and expense reimbursements may be terminated at any time after June 30, 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. |
* | This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period. |
Value of $10,000 Investment1,2,4 as of October 31, 2008
Mid Cap Index Fund, Class A (NAV) | ![]() | $ | 14,289 | |||||
Mid Cap Index Fund, Class A (POP) | ![]() | $ | 13,505 | |||||
S&P Mid Cap 400 Index3 | ![]() | $ | 15,427 | |||||
This chart illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 11/04/1999 to 10/31/2008) as compared to the S&P MidCap 400 Index3.
![(EQUITY INDEX LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950137-09-000237/c48053c4805302.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
3 | An unmanaged, market value-weighted index of 400 mid-cap companies. |
4 | Performance for Class B, Class C, Class R, and Class Y shares is not presented. Performance for these classes will vary due to the different expense structures. |
8 First American Funds 2008 Annual Report
Table of Contents
Small Cap Index Fund
Investment Objective: to provide investment results that correspond to the performance of the Russell 2000 Index*.
How did the fund perform for the fiscal year ended October 31, 2008?
The First American Small Cap Index Fund (the “fund”), Class Y shares, returned -33.95% for the fiscal year ended October 31, 2008 (Class A shares returned -34.15% without taking the sales charge into account). By comparison, the fund’s benchmark, the Russell 2000 Index, returned -34.16% for the same period.
How did market conditions affect stock market performance during the reporting period?
It’s impossible to discuss the state of the equity markets during the fiscal period without addressing the impact of the subprime loan debacle and the ensuing financial crisis on stock market performance. Concerns about the proliferation of subprime mortgage loans and the lax lending standards they represented arose as early as February 2007. By October 2007, the threat of large-scale defaults became more pronounced, as did their potential effect on various highly complex securities into which subprime mortgages had been converted. What caught most market participants off guard was the severity of the crisis — the sheer volume of assets that were impaired, the extent to which the holders of those assets were hurt, and the effect of these assets on the financial system.
The financial crisis that followed gradually brought most credit activity to a halt and drained liquidity out of the markets, prompting the federal government to stage several interventions to save ailing financial institutions whose vulnerability suddenly became apparent. The takeovers of Federal Home Loan Mortgage Corporation (Freddie Mac), Federal National Mortgage Association (Fannie Mae), and of AIG, however, were ad hoc solutions rather than consequences of any broad-based policy. In the absence of such policy, the government actions tended to cause more uncertainty than calm, and the markets lost trust in this approach. Prolonged volatility ensued.
What began as a U.S.-based financial crisis rapidly led to a global recession and with it the collapse of commodity prices and the prospect of sharply reduced corporate earnings. As hedge funds undertook a massive effort to repay the loans on which they relied for operations, liquidation sales forced asset prices to plummet far below their fair value. In this environment, the outlook for financial markets appeared bleak indeed. By the end of the fiscal period, however, there were signs that the worst may be behind us. For one thing, the coordinated policy response to the crisis by governments worldwide began to introduce a measure of ease to the financial and credit markets, restoring badly needed liquidity. And because forced liquidations brought asset prices into the bargain territory, there is good value now for investors to be found in the riskier asset classes.
What will be the likely developments in the equity markets in the coming fiscal year?
We expect the more defensively positioned sectors (healthcare, consumer staples) and sectors that tend to thrive early in the economic cycle (financials, consumer discretionary, retail) to make gains, while late-cycle sectors (energy, basic materials, industrials) will most likely remain under pressure. Clearly, conditions will remain challenging for some time to come, but as the most acute stages of the crisis recede into the past, we anticipate a gradual return of opportunities.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Top 10 Holdings as of October 31, 20081 (% of net assets)
First American Prime Obligations Fund, Class Z | 6 | .5% | ||
U.S. Treasury Bill, 2.074%, 12/18/2008 | 0 | .9 | ||
Ralcorp Holdings | 0 | .4 | ||
Alexion Pharmaceuticals | 0 | .4 | ||
Myriad Genetics | 0 | .3 | ||
Waste Connections | 0 | .3 | ||
Realty Income – REIT | 0 | .3 | ||
Flowers Foods | 0 | .3 | ||
Comstock Resources | 0 | .3 | ||
Piedmont Natural Gas | 0 | .3 | ||
Sector Allocation as of October 31, 20081 (% of net assets)
Financials | 20 | .8% | ||
Information Technology | 15 | .2 | ||
Industrials | 15 | .0 | ||
Healthcare | 13 | .3 | ||
Consumer Discretionary | 10 | .9 | ||
Energy | 4 | .9 | ||
Materials | 3 | .9 | ||
Utilities | 3 | .8 | ||
Consumer Staples | 3 | .7 | ||
Telecommunication Services | 1 | .0 | ||
Short-Term Investments | 7 | .4 | ||
Other Assets and Liabilities, Net2 | 0 | .1 | ||
100 | .0% | |||
1 | Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security. |
2 | Investments in securities typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
First American Funds 2008 Annual Report 9
Table of Contents
Small Cap Index Fund
Fund Overview
The fund is invested to replicate the Russell 2000 Index as closely as possible with consideration given to turnover costs and fees. The index includes the traded shares of U.S. companies ranked 1,001 through 3,000 in size, thereby skipping large- and mid-capitalization names in the list of investable companies.
The best-performing sectors during the fiscal year were utilities and consumer staples, having fallen by 13% and 15%, respectively. The sector that declined the most over the same period was telecommunications, falling by 55%. Between the end of July 2008 and October 2008, the decline in commodities prices helped to explain the 35% to 45% fall in materials and energy firms.
10 First American Funds 2008 Annual Report
Table of Contents
Annual Performance1,2
October 31, 2008 | September 30, 2008* | |||||||||||||||||||||||||||||||||||||||
Since Inception | Since Inception | |||||||||||||||||||||||||||||||||||||||
1 year | 5 years | 12/30/1998 | 12/11/2000 | 9/24/2001 | 1 year | 5 years | 12/30/1998 | 12/11/2000 | 9/24/2001 | |||||||||||||||||||||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||||||||||||||||||||||||||
Class A | (37.75 | )% | (0.19 | )% | 3.39 | % | — | — | (19.58 | )% | 6.18 | % | 5.88 | % | — | — | ||||||||||||||||||||||||
Class B | (37.52 | )% | (0.17 | )% | — | 1.53 | % | — | (19.27 | )% | 6.22 | % | — | 4.58 | % | — | ||||||||||||||||||||||||
Class C | (35.25 | )% | 0.13 | % | — | — | 3.92 | % | (16.35 | )% | 6.49 | % | — | — | 7.42 | % | ||||||||||||||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||||||||||||||||||||||||||
Class A | (34.15 | )% | 0.94 | % | 3.99 | % | — | — | (14.90 | )% | 7.39 | % | 6.49 | % | — | — | ||||||||||||||||||||||||
Class B | (34.64 | )% | 0.11 | % | — | 1.53 | % | — | (15.54 | )% | 6.52 | % | — | 4.58 | % | — | ||||||||||||||||||||||||
Class C | (34.67 | )% | 0.13 | % | — | — | 3.92 | % | (15.60 | )% | 6.49 | % | — | — | 7.42 | % | ||||||||||||||||||||||||
Class R | (34.33 | )% | 0.67 | % | 3.78 | % | — | — | (15.17 | )% | 7.09 | % | 6.28 | % | — | — | ||||||||||||||||||||||||
Class Y | (33.95 | )% | 1.13 | % | 4.20 | % | — | — | (14.66 | )% | 7.59 | % | 6.71 | % | — | — | ||||||||||||||||||||||||
Russell 2000 Index3 | (34.16 | )% | 1.57 | % | 4.06 | % | 2.55 | % | 5.80 | % | (14.48 | )% | 8.15 | % | 6.62 | % | 5.69 | % | 9.45 | % | ||||||||||||||||||||
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The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
1 | Stocks of small-capitalization companies involve substantial risk. These stocks historically have experienced greater price volatility than stocks of larger companies, and they may be expected to do so in the future. |
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. | |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 5.50% for Class A shares and the contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV. | |
Investment performance reflects fee waivers that were in effect during the periods indicated. In absence of such fee waivers, total returns would be reduced. | |
As of the most recent prospectus, the fund’s total annual operating expense ratio (including acquired fund fees and expenses) for Class A, Class B, Class C, Class R, and Class Y shares was 1.14%, 1.89%, 1.89%, 1.39%, and 0.89%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least June 30, 2009 so that total annual fund operating expenses (excluding acquired fund fees and expenses) for Class A, Class B, Class C, Class R, and Class Y shares do not exceed 0.83%, 1.58%, 1.58%, 1.08%, and 0.58%, respectively. These fee waivers and expense reimbursements may be terminated at any time after June 30, 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. |
* | This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period. |
Value of $10,000 Investment1,2,4 as of October 31, 2008
Small Cap Index Fund, Class A (NAV) | ![]() | $ | 14,692 | |||||
Small Cap Index Fund, Class A (POP) | ![]() | $ | 13,887 | |||||
Russell 2000 Index3 | ![]() | $ | 14,790 | |||||
This chart illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 12/30/1998 to 10/31/2008) as compared to the Russell 2000 Index3.
![(EQUITY INDEX LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950137-09-000237/c48053c4805305.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
On September 24, 2001, the Small Cap Index Fund became the successor by merger to the Firstar Small Cap Index Fund, a series of Firstar Funds, Inc. Prior to the merger, the First American Fund had no assets or liabilities. Performance presented prior to September 24, 2001, represents that of the Firstar Small Cap Index Fund. The Firstar Small Cap Index Fund was organized on December 11, 2000, and, prior to that, was a separate series of Mercantile Mutual Funds, Inc. | |
3 | An unmanaged index that measures the performance of the 2,000 smallest companies in the Russell 2000 Index. |
4 | Performance for Class B, Class C, Class R and Class Y shares is not presented. Performance for these classes will vary due to the different expense structures. |
First American Funds 2008 Annual Report 11
Table of Contents
Expense Examples
As a shareholder of one or more of the funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. The examples below are intended to help you understand your ongoing costs (in dollars) of investing in the funds and to compare these costs with the ongoing costs of investing in other mutual funds. The examples are based on an investment of $1,000 invested in a fund at the beginning of the period and held for the entire period from May 1, 2008 to October 31, 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.
Equity Index Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (5/01/08 to | ||||||||||
Value (5/01/08) | Value (10/31/08) | 10/31/08) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 705.50 | $ | 2.66 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.02 | $ | 3.15 | ||||||
Class B Actual2 | $ | 1,000.00 | $ | 703.00 | $ | 5.86 | ||||||
Class B Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.25 | $ | 6.95 | ||||||
Class C Actual2 | $ | 1,000.00 | $ | 703.10 | $ | 5.86 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.25 | $ | 6.95 | ||||||
Class R Actual2 | $ | 1,000.00 | $ | 704.70 | $ | 3.73 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.76 | $ | 4.42 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 706.60 | $ | 1.59 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,023.28 | $ | 1.88 | ||||||
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.62%, 1.37%, 1.37%, 0.87%, and 0.37% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/366 (to reflect the one-half year period). |
2 | Based on the actual returns for the six-month period ended October 31, 2008 of -29.45%, -29.70%, -29.69%, -29.53%, and -29.34% for Class A, Class B, Class C, Class R, and Class Y, respectively. |
12 First American Funds 2008 Annual Report
Table of Contents
Expense Examples
Mid Cap Index Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (5/01/08 to | ||||||||||
Value (5/01/08) | Value (10/31/08) | 10/31/08) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 684.40 | $ | 3.13 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.42 | $ | 3.76 | ||||||
Class B Actual2 | $ | 1,000.00 | $ | 681.90 | $ | 6.30 | ||||||
Class B Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.65 | $ | 7.56 | ||||||
Class C Actual2 | $ | 1,000.00 | $ | 681.60 | $ | 6.30 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.65 | $ | 7.56 | ||||||
Class R Actual2 | $ | 1,000.00 | $ | 683.40 | $ | 4.23 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.11 | $ | 5.08 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 684.60 | $ | 2.07 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.67 | $ | 2.49 | ||||||
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.74%, 1.49%, 1.49%, 1.00%, and 0.49% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/366 (to reflect the one-half year period). |
2 | Based on the actual returns for the six month period ended October 31, 2008 of -31.56%, -31.81%, -31.84%, -31.66%, and -31.54% for Class A, Class B, Class C, Class R, and Class Y, respectively. |
Small Cap Index Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period3 (5/01/08 to | ||||||||||
Value (5/01/08) | Value (10/31/08) | 10/31/08) | ||||||||||
Class A Actual4 | $ | 1,000.00 | $ | 756.40 | $ | 3.62 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.01 | $ | 4.17 | ||||||
Class B Actual4 | $ | 1,000.00 | $ | 753.40 | $ | 6.92 | ||||||
Class B Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.24 | $ | 7.96 | ||||||
Class C Actual4 | $ | 1,000.00 | $ | 753.60 | $ | 6.92 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.24 | $ | 7.96 | ||||||
Class R Actual4 | $ | 1,000.00 | $ | 755.50 | $ | 4.72 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.76 | $ | 5.43 | ||||||
Class Y Actual4 | $ | 1,000.00 | $ | 757.80 | $ | 2.52 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.27 | $ | 2.90 | ||||||
3 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.82%, 1.57%, 1.57%, 1.07%, and 0.57% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/366 (to reflect the one-half year period). |
4 | Based on the actual returns for the six month period ended October 31, 2008 of -24.36%, -24.66%, -24.64%, -24.45%, and -24.22% for Class A, Class B, Class C, Class R, and Class Y, respectively. |
First American Funds 2008 Annual Report 13
Table of Contents
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Directors
First American Investment Funds, Inc.
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of the Equity Index, Mid Cap Index, and Small Cap Index funds (series of First American Investment Funds, Inc.) (the “funds”) as of October 31, 2008, and the related statements of operations, changes in net assets and the financial highlights for each of the periods indicated therein. These financial statements and financial highlights are the responsibility of the funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the funds’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2008, by correspondence with the custodian and brokers, or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the funds listed above of First American Investment Funds, Inc. at October 31, 2008, the results of their operations, changes in their net assets, and their financial highlights for the periods indicated therein in conformity with U.S. generally accepted accounting principles.
![-s- Ernst & Young LLP](https://capedge.com/proxy/N-CSR/0000950137-09-000237/c48053ernstyo.gif)
Minneapolis, Minnesota
December 19, 2008
14 First American Funds 2008 Annual Report
Table of Contents
Schedule of Investments October 31, 2008, all dollars are rounded to thousands (000)
Equity Index Fund | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Common Stocks – 98.1% | ||||||||
Consumer Discretionary – 8.1% | ||||||||
Abercrombie & Fitch, Class A 6 | 10,882 | $ | 315 | |||||
Amazon.com 6 = | 40,831 | 2,337 | ||||||
Apollo Group, Class A 6 = | 13,575 | 944 | ||||||
AutoNation 6 = | 21,139 | 145 | ||||||
AutoZone 6 = | 5,703 | 726 | ||||||
Bed Bath & Beyond 6 = | 37,214 | 959 | ||||||
Best Buy 6 | 44,050 | 1,181 | ||||||
Big Lots 6 = | 12,504 | 305 | ||||||
Black & Decker | 8,185 | 414 | ||||||
Carnival 6 | 52,729 | 1,339 | ||||||
CBS, Class B 6 | 96,582 | 938 | ||||||
Centex 6 | 15,891 | 195 | ||||||
Coach 6 = | 45,198 | 931 | ||||||
Comcast, Class A 6 | 377,277 | 5,946 | ||||||
D.R. Horton 6 | 34,821 | 257 | ||||||
Darden Restaurants 6 | 16,442 | 364 | ||||||
DIRECTV Group 6 = | 74,875 | 1,639 | ||||||
Eastman Kodak | 34,812 | 320 | ||||||
Expedia 6 = | 25,586 | 243 | ||||||
Family Dollar Stores 6 | 19,220 | 517 | ||||||
Ford Motor 6 = | 285,672 | 626 | ||||||
Fortune Brands | 17,424 | 664 | ||||||
GameStop, Class A 6 = | 19,943 | 546 | ||||||
Gannett 6 | 29,548 | 325 | ||||||
Gap 6 | 57,193 | 740 | ||||||
General Motors 6 | 71,194 | 411 | ||||||
Genuine Parts | 21,361 | 840 | ||||||
Goodyear Tire & Rubber 6 = | 27,449 | 245 | ||||||
H&R Block 6 | 41,173 | 812 | ||||||
Harley-Davidson 6 | 30,317 | 742 | ||||||
Harman International Industries | 7,669 | 141 | ||||||
Hasbro | 17,202 | 500 | ||||||
Home Depot 6 | 200,861 | 4,738 | ||||||
International Game Technology | 41,450 | 580 | ||||||
Interpublic Group of Companies 6 = | 50,590 | 263 | ||||||
J.C. Penney 6 | 27,917 | 668 | ||||||
Johnson Controls 6 | 73,947 | 1,311 | ||||||
Jones Apparel Group | 14,826 | 165 | ||||||
KB Home 6 | 9,785 | 163 | ||||||
Kohl’s 6 = | 37,769 | 1,327 | ||||||
Leggett & Platt 6 | 22,790 | 396 | ||||||
Lennar 6 | 17,676 | 137 | ||||||
Limited Brands 6 | 38,276 | 458 | ||||||
Liz Claiborne | 13,221 | 108 | ||||||
Lowe’s 6 | 190,937 | 4,143 | ||||||
Macy’s 6 | 56,618 | 696 | ||||||
Marriott International, Class A | 40,157 | 838 | ||||||
Mattel | 47,644 | 716 | ||||||
McDonald’s 6 | 145,192 | 8,411 | ||||||
McGraw-Hill 6 | 44,086 | 1,183 | ||||||
New York Times, Class A 6 | 17,773 | 178 | ||||||
Newell Rubbermaid | 33,258 | 457 | ||||||
News, Class A 6 | 291,378 | 3,100 | ||||||
Nike, Class B 6 | 46,470 | 2,678 | ||||||
Nordstrom 6 | 20,375 | 369 | ||||||
Office Depot = | 34,600 | 125 | ||||||
Omnicom Group 6 | 40,811 | 1,206 | ||||||
Polo Ralph Lauren 6 | 7,691 | 363 | ||||||
Pulte Homes | 27,166 | 303 | ||||||
RadioShack 6 | 17,354 | 220 | ||||||
Scripps Networks Interactive, Class A 6 | 9,227 | 262 | ||||||
Sears 6 = | 7,271 | 420 | ||||||
Sherwin-Williams | 13,302 | 757 | ||||||
Snap-On | 7,192 | 266 | ||||||
Stanley Works 6 | 9,952 | 326 | ||||||
Staples 6 | 90,021 | 1,749 | ||||||
Starbucks 6 = | 92,986 | 1,221 | ||||||
Starwood Hotels & Resorts Worldwide 6 | 23,763 | 536 | ||||||
Target 6 | 99,195 | 3,980 | ||||||
Tiffany & Company 6 | 18,480 | 507 | ||||||
Time Warner | 457,860 | 4,620 | ||||||
TJX | 53,424 | 1,430 | ||||||
VF 6 | 10,746 | 592 | ||||||
Viacom, Class B 6 = | 80,626 | 1,630 | ||||||
Walt Disney 6 | 246,524 | 6,385 | ||||||
Whirlpool | 9,640 | 450 | ||||||
Wyndham Worldwide 6 | 22,470 | 184 | ||||||
Yum! Brands | 63,582 | 1,844 | ||||||
89,066 | ||||||||
Consumer Staples – 12.7% | ||||||||
Altria Group 6 | 262,846 | 5,044 | ||||||
Anheuser-Busch | 95,813 | 5,943 | ||||||
Archer-Daniels-Midland 6 | 80,841 | 1,676 | ||||||
Avon Products 6 | 59,268 | 1,472 | ||||||
Brown-Forman, Class B 6 | 11,725 | 532 | ||||||
Campbell Soup | 21,692 | 823 | ||||||
Clorox 6 | 18,574 | 1,129 | ||||||
Coca-Cola Enterprises | 26,763 | 269 | ||||||
Coca-Cola | 254,463 | 11,212 | ||||||
Colgate-Palmolive | 63,556 | 3,989 | ||||||
ConAgra Foods | 65,901 | 1,148 | ||||||
Constellation Brands, Class A = | 23,627 | 296 | ||||||
Costco Wholesale 6 | 54,806 | 3,125 | ||||||
CVS Caremark | 182,129 | 5,582 | ||||||
Dean Foods 6 = | 16,082 | 352 | ||||||
Dr. Pepper Snapple Group 6 = | 26,543 | 608 | ||||||
Estee Lauder, Class A 6 | 8,765 | 316 | ||||||
General Mills 6 | 39,918 | 2,704 | ||||||
H.J. Heinz 6 | 41,312 | 1,810 | ||||||
Hershey Foods | 22,475 | 837 | ||||||
Kellogg 6 | 31,539 | 1,590 | ||||||
Kimberly-Clark 6 | 53,371 | 3,271 | ||||||
Kraft Foods, Class A 6 | 192,857 | 5,620 | ||||||
Kroger | 89,344 | 2,453 | ||||||
Lorillard | 20,583 | 1,356 | ||||||
McCormick 6 | 16,523 | 556 | ||||||
Molson Coors Brewing, Class B 6 | 12,756 | 477 | ||||||
Pepsi Bottling Group | 16,970 | 392 | ||||||
PepsiCo 6 | 203,459 | 11,599 | ||||||
Philip Morris International | 262,793 | 11,424 | ||||||
Procter & Gamble | 389,981 | 25,169 | ||||||
Reynolds American | 21,393 | 1,047 | ||||||
Safeway 6 | 55,078 | 1,172 | ||||||
Sara Lee | 93,796 | 1,049 | ||||||
SUPERVALU 6 | 25,925 | 369 | ||||||
Sysco 6 | 82,214 | 2,154 | ||||||
Tyson Foods, Class A | 30,681 | 268 | ||||||
UST | 20,199 | 1,365 | ||||||
Walgreen 6 | 124,160 | 3,161 | ||||||
Wal-Mart Stores 6 | 286,626 | 15,997 | ||||||
Whole Foods Market 6 | 17,691 | 190 | ||||||
139,546 | ||||||||
Energy – 12.9% | ||||||||
Anadarko Petroleum 6 | 59,397 | 2,097 | ||||||
Apache 6 | 41,530 | 3,419 | ||||||
Baker Hughes | 42,538 | 1,487 | ||||||
BJ Services 6 | 37,016 | 476 | ||||||
Cabot Oil & Gas | 12,401 | 348 | ||||||
Cameron International 6 = | 27,579 | 669 |
First American Funds 2008 Annual Report 15
Table of Contents
Schedule of Investments October 31, 2008, all dollars are rounded to thousands (000)
Equity Index Fund (continued) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Chesapeake Energy 6 | 65,411 | $ | 1,437 | |||||
Chevron | 263,803 | 19,680 | ||||||
ConocoPhillips | 201,736 | 10,494 | ||||||
CONSOL Energy | 22,876 | 718 | ||||||
Devon Energy | 56,950 | 4,605 | ||||||
El Paso 6 | 87,499 | 849 | ||||||
ENSCO International 6 | 18,224 | 693 | ||||||
EOG Resources 6 | 31,389 | 2,540 | ||||||
Exxon Mobil | 664,097 | 49,223 | ||||||
Halliburton 6 | 117,733 | 2,330 | ||||||
Hess 6 | 34,489 | 2,077 | ||||||
Marathon Oil | 87,108 | 2,535 | ||||||
Murphy Oil | 21,766 | 1,102 | ||||||
Nabors Industries = | 36,528 | 525 | ||||||
National-Oilwell Varco 6 = | 53,350 | 1,595 | ||||||
Noble Energy | 21,670 | 1,123 | ||||||
Noble | 34,625 | 1,115 | ||||||
Occidental Petroleum 6 | 103,171 | 5,730 | ||||||
Peabody Energy | 33,273 | 1,148 | ||||||
Pioneer Natural Resources 6 | 15,272 | 425 | ||||||
Range Resources 6 | 19,814 | 836 | ||||||
Rowan 6 | 13,580 | 246 | ||||||
Schlumberger 6 | 151,301 | 7,815 | ||||||
Smith International 6 | 24,457 | 843 | ||||||
Southwestern Energy 6 = | 44,682 | 1,592 | ||||||
Spectra Energy | 73,494 | 1,421 | ||||||
Sunoco | 15,223 | 464 | ||||||
Tesoro 6 | 17,185 | 166 | ||||||
Transocean 6 = | 40,147 | 3,305 | ||||||
Valero Energy | 68,719 | 1,414 | ||||||
Weatherford International 6 = | 87,003 | 1,469 | ||||||
Williams | 74,956 | 1,572 | ||||||
XTO Energy 6 | 70,216 | 2,524 | ||||||
142,107 | ||||||||
Financials – 14.5% | ||||||||
AFLAC | 61,604 | 2,728 | ||||||
Allstate | 71,258 | 1,880 | ||||||
American Capital Strategies 6 | 24,660 | 346 | ||||||
American Express 6 | 149,768 | 4,119 | ||||||
American International Group 6 | 342,599 | 654 | ||||||
Ameriprise Financial | 28,761 | 621 | ||||||
AON | 40,413 | 1,709 | ||||||
Apartment Investment & Management – REIT | 13,643 | 200 | ||||||
Assurant | 12,445 | 317 | ||||||
AvalonBay Communities – REIT 6 | 9,976 | 708 | ||||||
Bank of America 6 | 640,701 | 15,486 | ||||||
Bank of New York Mellon | 142,234 | 4,637 | ||||||
BB&T 6 | 66,257 | 2,375 | ||||||
Boston Properties – REIT 6 | 14,867 | 1,054 | ||||||
Capital One Financial 6 | 50,266 | 1,966 | ||||||
CB Richard Ellis Group = | 23,477 | 165 | ||||||
Charles Schwab | 119,365 | 2,282 | ||||||
Chubb | 44,477 | 2,305 | ||||||
Cincinnati Financial 6 | 19,197 | 499 | ||||||
CIT Group | 35,841 | 148 | ||||||
Citigroup | 693,686 | 9,469 | ||||||
CME Group 6 | 8,577 | 2,420 | ||||||
Comerica 6 | 20,549 | 567 | ||||||
Developers Diversified Realty – REIT | 15,662 | 206 | ||||||
Discover Financial Services | 61,626 | 755 | ||||||
E*TRADE Financial 6 = | 68,381 | 124 | ||||||
Equity Residential Properties Trust – REIT 6 | 36,605 | 1,279 | ||||||
Federated Investors, Class B | 10,246 | 248 | ||||||
Fifth Third Bancorp 6 | 73,160 | 794 | ||||||
First Horizon National 6 | 25,775 | 307 | ||||||
Franklin Resources | 20,665 | 1,405 | ||||||
General Growth Properties – REIT 6 | 34,048 | 141 | ||||||
Genworth Financial, Class A | 55,409 | 268 | ||||||
Goldman Sachs Group 6 | 55,504 | 5,134 | ||||||
Hartford Financial Services Group | 34,799 | 359 | ||||||
HCP – REIT 6 | 31,326 | 938 | ||||||
Host Hotels & Resorts – REIT 6 | 65,522 | 677 | ||||||
Hudson City Bancorp | 65,878 | 1,239 | ||||||
Huntington Bancshares 6 | 46,547 | 440 | ||||||
IntercontinentalExchange 6 = | 9,631 | 824 | ||||||
Invesco 6 | 49,410 | 737 | ||||||
Janus Capital Group 6 | 22,239 | 261 | ||||||
JPMorgan Chase | 470,046 | 19,389 | ||||||
KeyCorp 6 | 61,865 | 757 | ||||||
Kimco Realty – REIT | 31,638 | 714 | ||||||
Legg Mason 6 | 15,174 | 337 | ||||||
Leucadia National 6 | 20,498 | 550 | ||||||
Lincoln National 6 | 37,739 | 651 | ||||||
Loew’s | 52,244 | 1,735 | ||||||
M&T Bank 6 | 9,867 | 800 | ||||||
Marsh & McLennan 6 | 64,289 | 1,885 | ||||||
Marshall & Ilsley 6 | 33,144 | 598 | ||||||
MBIA 6 | 25,287 | 249 | ||||||
Merrill Lynch | 194,931 | 3,624 | ||||||
MetLife | 90,126 | 2,994 | ||||||
Moody’s 6 | 27,942 | 715 | ||||||
Morgan Stanley | 138,905 | 2,427 | ||||||
Nasdaq Stock Market = | 17,352 | 563 | ||||||
National City 6 | 267,385 | 722 | ||||||
Northern Trust | 28,239 | 1,590 | ||||||
NYSE Euronext | 33,016 | 996 | ||||||
Plum Creek Timber – REIT 6 | 22,988 | 857 | ||||||
PNC Financial Services Group 6 | 43,115 | 2,874 | ||||||
Principal Financial Group | 38,285 | 727 | ||||||
Progressive 6 | 90,659 | 1,294 | ||||||
ProLogis – REIT | 32,038 | 449 | ||||||
Prudential Financial 6 | 58,695 | 1,761 | ||||||
Public Storage – REIT 6 | 15,832 | 1,290 | ||||||
Regions Financial 6 | 90,796 | 1,007 | ||||||
Simon Property Group – REIT 6 | 27,915 | 1,871 | ||||||
SLM 6 = | 56,646 | 604 | ||||||
Sovereign Bancorp 6 | 69,465 | 201 | ||||||
State Street | 52,286 | 2,267 | ||||||
SunTrust Banks 6 | 44,811 | 1,799 | ||||||
T. Rowe Price Group 6 | 33,536 | 1,326 | ||||||
Torchmark 6 | 12,971 | 542 | ||||||
Travelers | 78,570 | 3,343 | ||||||
U.S. Bancorp 6 Å | 224,405 | 6,690 | ||||||
UnumProvident 6 | 42,020 | 662 | ||||||
Vornado Realty Trust – REIT 6 | 16,270 | 1,148 | ||||||
Wells Fargo | 422,961 | 14,402 | ||||||
XL Capital, Class A 6 | 32,640 | 317 | ||||||
Zions Bancorporation | 14,657 | 559 | ||||||
160,077 | ||||||||
Healthcare – 13.5% | ||||||||
Abbott Laboratories | 192,052 | 10,592 | ||||||
Aetna | 64,247 | 1,598 | ||||||
Allergan | 38,437 | 1,525 | ||||||
AmerisourceBergen 6 | 22,686 | 709 | ||||||
Amgen 6 = | 135,802 | 8,133 | ||||||
Applied Biosystems | 24,780 | 764 | ||||||
Barr Pharmaceuticals = | 13,741 | 883 | ||||||
Baxter International 6 | 81,643 | 4,939 | ||||||
Becton, Dickinson & Company | 31,192 | 2,165 | ||||||
Biogen Idec = | 36,982 | 1,574 |
The accompanying notes are an integral part of the financial statements.
16 First American Funds 2008 Annual Report
Table of Contents
Equity Index Fund (continued) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Boston Scientific 6 = | 191,816 | $ | 1,732 | |||||
Bristol-Myers Squibb | 245,813 | 5,051 | ||||||
C.R. Bard | 12,823 | 1,132 | ||||||
Cardinal Health 6 | 47,232 | 1,804 | ||||||
Celgene 6 = | 57,710 | 3,708 | ||||||
CIGNA | 36,061 | 588 | ||||||
Coventry Health Care 6 = | 19,635 | 259 | ||||||
Covidien | 61,678 | 2,732 | ||||||
DaVita = | 9,184 | 521 | ||||||
Eli Lilly | 123,879 | 4,190 | ||||||
Express Scripts 6 = | 32,283 | 1,957 | ||||||
Forest Laboratories = | 39,816 | 925 | ||||||
Genzyme 6 = | 32,398 | 2,361 | ||||||
Gilead Sciences 6 = | 116,793 | 5,355 | ||||||
Hospira 6 = | 20,392 | 567 | ||||||
Humana = | 20,193 | 598 | ||||||
IMS Health | 24,637 | 353 | ||||||
Intuitive Surgical 6 = | 5,048 | 872 | ||||||
Johnson & Johnson 6 | 358,478 | 21,989 | ||||||
King Pharmaceuticals = | 30,382 | 267 | ||||||
Laboratory Corporation of America 6 = | 14,182 | 872 | ||||||
McKesson 6 | 37,554 | 1,382 | ||||||
Medco Health Solutions 6 = | 64,565 | 2,450 | ||||||
Medtronic | 146,984 | 5,928 | ||||||
Merck 6 | 273,710 | 8,471 | ||||||
Millipore 6 = | 5,941 | 308 | ||||||
Mylan Laboratories 6 = | 37,921 | 325 | ||||||
Patterson Companies 6 = | 17,100 | 433 | ||||||
PerkinElmer | 16,809 | 302 | ||||||
Pfizer | 859,258 | 15,218 | ||||||
Quest Diagnostics | 19,603 | 917 | ||||||
Schering-Plough | 207,677 | 3,009 | ||||||
St. Jude Medical = | 42,239 | 1,606 | ||||||
Stryker | 30,401 | 1,625 | ||||||
Tenet Healthcare 6 = | 59,443 | 260 | ||||||
Thermo Fisher Scientific = | 49,878 | 2,025 | ||||||
UnitedHealth Group 6 | 156,559 | 3,715 | ||||||
Varian Medical Systems 6 = | 15,955 | 726 | ||||||
Watson Pharmaceuticals = | 13,640 | 357 | ||||||
WellPoint = | 65,948 | 2,563 | ||||||
Wyeth | 168,198 | 5,413 | ||||||
Zimmer Holdings 6 = | 30,769 | 1,429 | ||||||
149,177 | ||||||||
Industrials – 10.7% | ||||||||
3M 6 | 90,144 | 5,796 | ||||||
Allied Waste Industries = | 34,405 | 359 | ||||||
Avery Dennison 6 | 13,371 | 468 | ||||||
Boeing | 96,284 | 5,033 | ||||||
Burlington Northern Santa Fe 6 | 36,079 | 3,213 | ||||||
C.H. Robinson Worldwide 6 | 21,392 | 1,108 | ||||||
Caterpillar | 78,922 | 3,012 | ||||||
Cintas 6 | 16,601 | 393 | ||||||
Cooper Industries, Class A 6 | 22,970 | 711 | ||||||
CSX | 52,798 | 2,414 | ||||||
Cummins 6 | 26,118 | 675 | ||||||
Danaher 6 | 28,793 | 1,706 | ||||||
Deere & Company 6 | 55,049 | 2,123 | ||||||
Dover 6 | 19,857 | 631 | ||||||
Eaton | 17,992 | 802 | ||||||
Emerson Electric | 101,486 | 3,322 | ||||||
Equifax 6 | 15,844 | 413 | ||||||
Expeditors International of Washington 6 | 23,931 | 781 | ||||||
Fastenal 6 | 10,012 | 403 | ||||||
FedEx 6 | 37,563 | 2,456 | ||||||
Flowserve | 7,331 | 417 | ||||||
Fluor 6 | 22,605 | 903 | ||||||
General Dynamics | 47,538 | 2,867 | ||||||
General Electric 6 | 1,319,960 | 25,752 | ||||||
Goodrich 6 | 14,762 | 540 | ||||||
Honeywell International 6 | 97,898 | 2,981 | ||||||
Illinois Tool Works 6 | 50,005 | 1,670 | ||||||
Ingersoll-Rand, Class A | 43,438 | 801 | ||||||
ITT | 22,565 | 1,004 | ||||||
Jacobs Engineering Group 6 = | 15,422 | 562 | ||||||
L-3 Communications Holdings 6 | 15,627 | 1,268 | ||||||
Lockheed Martin 6 | 43,175 | 3,672 | ||||||
Manitowoc 6 | 15,665 | 154 | ||||||
Masco 6 | 47,365 | 481 | ||||||
Monster Worldwide 6 = | 15,823 | 225 | ||||||
Norfolk Southern | 47,827 | 2,867 | ||||||
Northrop Grumman 6 | 43,839 | 2,056 | ||||||
Paccar 6 | 46,916 | 1,372 | ||||||
Pall | 15,516 | 410 | ||||||
Parker Hannifin 6 | 21,633 | 839 | ||||||
Pitney Bowes 6 | 21,011 | 521 | ||||||
Precision Castparts 6 | 17,072 | 1,106 | ||||||
R.R. Donnelley & Sons | 27,316 | 453 | ||||||
Raytheon 6 | 54,492 | 2,785 | ||||||
Robert Half International 6 | 20,186 | 381 | ||||||
Rockwell Automation 6 | 21,043 | 582 | ||||||
Rockwell Collins 6 | 21,743 | 809 | ||||||
Ryder System 6 | 7,509 | 298 | ||||||
Southwest Airlines 6 | 94,334 | 1,111 | ||||||
Textron | 33,050 | 585 | ||||||
Tyco International 6 | 61,802 | 1,562 | ||||||
Union Pacific | 66,632 | 4,449 | ||||||
United Parcel Service, Class B 6 | 132,822 | 7,010 | ||||||
United Technologies | 123,793 | 6,804 | ||||||
W.W. Grainger | 9,583 | 753 | ||||||
Waste Management 6 | 65,354 | 2,041 | ||||||
117,910 | ||||||||
Information Technology – 15.6% | ||||||||
Adobe Systems = | 68,625 | 1,828 | ||||||
Advanced Micro Devices 6 = | 76,195 | 267 | ||||||
Affiliated Computer Services, Class A 6 = | 12,410 | 509 | ||||||
Agilent Technologies 6 = | 49,503 | 1,098 | ||||||
Akamai Technologies 6 = | 21,437 | 308 | ||||||
Altera | 42,962 | 745 | ||||||
Amphenol, Class A 6 | 22,588 | 647 | ||||||
Analog Devices | 37,126 | 793 | ||||||
Apple 6 = | 113,159 | 12,175 | ||||||
Applied Materials | 172,936 | 2,233 | ||||||
Autodesk 6 = | 28,225 | 601 | ||||||
Automatic Data Processing 6 | 66,057 | 2,309 | ||||||
BMC Software = | 25,613 | 661 | ||||||
Broadcom, Class A 6 = | 58,935 | 1,007 | ||||||
CA 6 | 51,711 | 920 | ||||||
Ciena 6 = | 10,768 | 104 | ||||||
Cisco Systems = | 757,448 | 13,460 | ||||||
Citrix Systems 6 = | 23,846 | 615 | ||||||
Cognizant Technology Solutions, Class A = | 35,909 | 689 | ||||||
Computer Sciences 6 = | 21,039 | 635 | ||||||
Compuware = | 38,324 | 245 | ||||||
Convergys = | 17,458 | 134 | ||||||
Corning 6 | 196,534 | 2,128 | ||||||
Dell 6 = | 222,787 | 2,707 | ||||||
eBay 6 = | 141,959 | 2,168 | ||||||
Electronic Arts = | 37,926 | 864 | ||||||
EMC 6 = | 262,355 | 3,091 | ||||||
Fidelity National Information Services | 20,348 | 307 |
First American Funds 2008 Annual Report 17
Table of Contents
Schedule of Investments October 31, 2008, all dollars are rounded to thousands (000)
Equity Index Fund (continued) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Fiserv = | 23,246 | $ | 776 | |||||
Google, Class A 6 = | 30,547 | 10,977 | ||||||
Harris | 17,114 | 615 | ||||||
Hewlett-Packard | 313,318 | 11,994 | ||||||
IBM | 170,601 | 15,861 | ||||||
Intel | 718,534 | 11,497 | ||||||
Intuit 6 = | 43,823 | 1,098 | ||||||
Jabil Circuit | 26,037 | 219 | ||||||
JDS Uniphase = | 27,651 | 151 | ||||||
Juniper Networks 6 = | 66,539 | 1,247 | ||||||
KLA-Tencor 6 | 21,668 | 504 | ||||||
Lexmark International, Class A 6 = | 11,815 | 305 | ||||||
Linear Technology | 27,745 | 629 | ||||||
LSI Logic 6 = | 97,169 | 374 | ||||||
MasterCard, Class A 6 | 9,277 | 1,371 | ||||||
MEMC Electronic Materials 6 = | 28,702 | 528 | ||||||
Microchip Technology 6 | 23,522 | 579 | ||||||
Micron Technology 6 = | 96,004 | 452 | ||||||
Microsoft 6 | 1,007,657 | 22,501 | ||||||
Molex | 17,732 | 256 | ||||||
Motorola 6 | 289,793 | 1,556 | ||||||
National Semiconductor | 24,907 | 328 | ||||||
NetApp 6 = | 46,024 | 623 | ||||||
Novell = | 47,871 | 223 | ||||||
Novellus Systems 6 = | 12,666 | 200 | ||||||
NVIDIA = | 68,794 | 603 | ||||||
Oracle 6 = | 493,624 | 9,028 | ||||||
Paychex | 41,007 | 1,170 | ||||||
QLogic = | 20,217 | 243 | ||||||
QUALCOMM | 208,548 | 7,979 | ||||||
Salesforce.com 6 = | 13,225 | 409 | ||||||
SanDisk = | 28,515 | 254 | ||||||
Sun Microsystems 6 = | 108,077 | 497 | ||||||
Symantec = | 113,128 | 1,423 | ||||||
Tellabs = | 56,939 | 241 | ||||||
Teradata = | 22,572 | 347 | ||||||
Teradyne 6 = | 24,056 | 123 | ||||||
Texas Instruments | 167,694 | 3,280 | ||||||
Total System Services | 16,935 | 233 | ||||||
Tyco Electronics 6 | 61,799 | 1,201 | ||||||
Unisys = | 39,973 | 61 | ||||||
VeriSign 6 = | 24,679 | 523 | ||||||
Waters 6 = | 13,894 | 609 | ||||||
Western Union 6 | 96,924 | 1,479 | ||||||
Xerox 6 | 118,086 | 947 | ||||||
Xilinx | 35,584 | 655 | ||||||
Yahoo! 6 = | 177,040 | 2,270 | ||||||
171,687 | ||||||||
Materials – 3.1% | ||||||||
Air Products and Chemicals 6 | 28,085 | 1,633 | ||||||
AK Steel Holding 6 | 14,261 | 198 | ||||||
Alcoa | 109,326 | 1,258 | ||||||
Allegheny Technologies 6 | 12,834 | 341 | ||||||
Ashland 6 | 8,729 | 197 | ||||||
Ball 6 | 12,796 | 438 | ||||||
Bemis | 13,031 | 324 | ||||||
CF Industries Holdings | 6,653 | 427 | ||||||
Dow Chemical 6 | 120,850 | 3,223 | ||||||
E.I. Du Pont de Nemours | 113,261 | 3,624 | ||||||
Eastman Chemical 6 | 8,980 | 363 | ||||||
Ecolab 6 | 22,810 | 850 | ||||||
Freeport-McMoRan Copper & Gold 6 | 48,829 | 1,421 | ||||||
Hercules 6 | 13,306 | 224 | ||||||
International Flavors & Fragrances 6 | 8,446 | 269 | ||||||
International Paper 6 | 54,530 | 939 | ||||||
Massey Energy 6 | 10,209 | 236 | ||||||
MeadWestvaco 6 | 22,350 | 313 | ||||||
Monsanto 6 | 69,644 | 6,197 | ||||||
Newmont Mining | 57,852 | 1,524 | ||||||
Nucor | 37,699 | 1,527 | ||||||
Pactiv 6 = | 18,227 | 429 | ||||||
PPG Industries | 20,834 | 1,033 | ||||||
Praxair 6 | 40,656 | 2,649 | ||||||
Rohm & Haas | 17,026 | 1,198 | ||||||
Sealed Air 6 | 20,164 | 341 | ||||||
Sigma-Aldrich 6 | 16,551 | 726 | ||||||
Titanium Metals 6 | 10,779 | 100 | ||||||
United States Steel | 14,835 | 547 | ||||||
Vulcan Materials 6 | 12,529 | 680 | ||||||
Weyerhaeuser | 27,727 | 1,060 | ||||||
34,289 | ||||||||
Telecommunication Services – 3.3% | ||||||||
American Tower, Class A = | 51,545 | 1,665 | ||||||
AT&T | 757,030 | 20,266 | ||||||
CenturyTel 6 | 13,702 | 344 | ||||||
Embarq | 18,723 | 562 | ||||||
Frontier Communications 6 | 42,986 | 327 | ||||||
Qwest Communications International | 201,037 | 575 | ||||||
Sprint Nextel 6 | 362,227 | 1,134 | ||||||
Verizon Communications | 360,390 | 10,693 | ||||||
Windstream | 59,478 | 446 | ||||||
36,012 | ||||||||
Utilities – 3.7% | ||||||||
AES 6 = | 85,947 | 685 | ||||||
Allegheny Energy | 20,704 | 624 | ||||||
Ameren 6 | 26,384 | 856 | ||||||
American Electric Power | 48,025 | 1,567 | ||||||
CenterPoint Energy | 39,667 | 457 | ||||||
CMS Energy | 28,618 | 293 | ||||||
Consolidated Edison | 33,292 | 1,442 | ||||||
Constellation Energy | 22,599 | 547 | ||||||
Dominion Resources 6 | 72,148 | 2,618 | ||||||
DTE Energy 6 | 20,166 | 712 | ||||||
Duke Energy | 157,451 | 2,579 | ||||||
Dynegy, Class A = | 64,621 | 235 | ||||||
Edison International 6 | 39,652 | 1,411 | ||||||
Entergy 6 | 29,138 | 2,274 | ||||||
Exelon | 83,988 | 4,555 | ||||||
FirstEnergy | 40,731 | 2,125 | ||||||
FPL Group 6 | 50,600 | 2,390 | ||||||
Integrys Energy Group 6 | 9,713 | 463 | ||||||
Nicor 6 | 5,696 | 263 | ||||||
NiSource | 34,270 | 444 | ||||||
Pepco Holdings 6 | 24,910 | 514 | ||||||
PG&E 6 | 48,159 | 1,766 | ||||||
Pinnacle West Capital | 12,531 | 397 | ||||||
PPL 6 | 48,256 | 1,584 | ||||||
Progress Energy | 29,873 | 1,176 | ||||||
Public Service Enterprise Group 6 | 63,369 | 1,784 | ||||||
Questar | 21,958 | 757 | ||||||
Sempra Energy 6 | 33,031 | 1,407 | ||||||
Southern | 98,394 | 3,379 | ||||||
TECO Energy | 26,192 | 302 | ||||||
Wisconsin Energy | 4,151 | 181 | ||||||
Xcel Energy | 50,912 | 887 | ||||||
40,674 | ||||||||
Total Common Stocks | ||||||||
(Cost $907,212) | 1,080,545 | |||||||
The accompanying notes are an integral part of the financial statements.
18 First American Funds 2008 Annual Report
Table of Contents
Equity Index Fund (concluded) | ||||||||
DESCRIPTION | SHARES/PAR | VALUE | ||||||
Short-Term Investments – 1.8% | ||||||||
Money Market Fund – 1.5% | ||||||||
First American Prime Obligations Fund, Class Z Å | 16,845,124 | $ | 16,845 | |||||
U.S. Treasury Obligation – 0.3% | ||||||||
U.S. Treasury Bill o | ||||||||
2.130%, 12/18/2008 | $ | 3,000 | 2,992 | |||||
Total Short-Term Investments | ||||||||
(Cost $19,837) | 19,837 | |||||||
Investment Purchased with Proceeds from Securities Lending – 32.8% | ||||||||
Mount Vernon Securities Lending Prime Portfolio † | ||||||||
(Cost $360,899) | 360,899,202 | 360,899 | ||||||
Total Investments – 132.7% | ||||||||
(Cost $1,287,948) | 1,461,281 | |||||||
Other Assets and Liabilities, Net – (32.7)% | (359,942 | ) | ||||||
Total Net Assets – 100.0% | $ | 1,101,339 | ||||||
6 | This security or a portion of this security is out on loan at October 31, 2008. Total loaned securities had a value of $353,304 at October 31, 2008. See note 2 in Notes to Financial Statements. | |
= | Non-income producing security. | |
Å | Investment in affiliated security. As of October 31, 2008, the market value of these investments was $23,535 or 2.1% of total net assets. See notes 3 and 4 in Notes to Financial Statements. | |
o | Security has been deposited as initial margin on open futures contracts. Yield shown is effective yield as of October 31, 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. |
REIT – | Real Estate Investment Trust |
Schedule of Open Futures Contracts
Number of | Notional | |||||||||||||
Contracts | Contract | Settlement | Unrealized | |||||||||||
Description | Purchased | Value | Month | Depreciation | ||||||||||
S&P 500 Futures | 77 | $ | 18,621 | December 2008 | $ | (2,906 | ) | |||||||
First American Funds 2008 Annual Report 19
Table of Contents
Schedule of Investments October 31, 2008, all dollars are rounded to thousands (000)
Mid Cap Index Fund | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Common Stocks – 92.5% | ||||||||
Consumer Discretionary – 12.1% | ||||||||
99 Cents Only Stores = 6 | 12,059 | $ | 147 | |||||
Advance Auto Parts | 24,344 | 760 | ||||||
Aeropostale = 6 | 17,196 | 416 | ||||||
American Eagle Outfitters | 55,083 | 613 | ||||||
American Greetings, Class A | 15,091 | 176 | ||||||
AnnTaylor Stores = 6 | 15,762 | 198 | ||||||
ArvinMeritor 6 | 18,515 | 110 | ||||||
Barnes & Noble 6 | 9,468 | 179 | ||||||
Belo, Class A | 22,502 | 48 | ||||||
BLYTH | 7,178 | 62 | ||||||
Bob Evans Farms | 9,065 | 189 | ||||||
Borders Group | 16,072 | 54 | ||||||
BorgWarner | 29,765 | 669 | ||||||
Boyd Gaming 6 | 14,383 | 98 | ||||||
Brinker International | 27,071 | 252 | ||||||
Callaway Golf 6 | 17,160 | 180 | ||||||
CarMax = 6 | 55,321 | 588 | ||||||
Cheesecake Factory = 6 | 18,318 | 161 | ||||||
Chico’s FAS = 6 | 44,971 | 153 | ||||||
Chipotle Mexican Grill, Class A = 6 | 8,453 | 429 | ||||||
Coldwater Creek = 6 | 15,661 | 56 | ||||||
Collective Brands = | 16,848 | 215 | ||||||
Corinthian Colleges = | 21,675 | 310 | ||||||
DeVry | 15,288 | 867 | ||||||
Dick’s Sporting Goods = 6 | 21,245 | 325 | ||||||
Dollar Tree = 6 | 24,160 | 919 | ||||||
DreamWorks Animation, Class A = | 18,051 | 507 | ||||||
Foot Locker 6 | 39,923 | 584 | ||||||
Furniture Brands International 6 | 12,809 | 73 | ||||||
Gentex 6 | 37,797 | 362 | ||||||
Guess? | 13,941 | 304 | ||||||
Hanesbrands = | 24,582 | 429 | ||||||
Harte-Hanks 6 | 12,816 | 90 | ||||||
Hovnanian Enterprises, Class A = 6 | 13,050 | 56 | ||||||
International Speedway, Class A | 7,947 | 249 | ||||||
J. Crew Group = 6 | 11,505 | 233 | ||||||
John Wiley & Sons, Class A | 10,912 | 380 | ||||||
Lamar Advertising, Class A = 6 | 20,185 | 306 | ||||||
Lear = | 19,753 | 40 | ||||||
Life Time Fitness = 6 | 8,611 | 164 | ||||||
M.D.C. Holdings 6 | 8,928 | 300 | ||||||
Marvel Entertainment = 6 | 12,592 | 405 | ||||||
Matthews International, Class A 6 | 8,025 | 358 | ||||||
Media General, Class A 6 | 6,371 | 49 | ||||||
Modine Manufacturing 6 | 8,818 | 65 | ||||||
Mohawk Industries = 6 | 13,879 | 671 | ||||||
Netflix = 6 | 12,528 | 310 | ||||||
NVR = 6 | 1,319 | 647 | ||||||
O’Reilly Automotive = 6 | 32,093 | 870 | ||||||
Pacific Sunwear of California = 6 | 17,725 | 61 | ||||||
PetSmart 6 | 33,050 | 651 | ||||||
Phillips-Van Heusen | 13,191 | 323 | ||||||
Priceline.com = | 9,543 | 502 | ||||||
Regis | 11,927 | 148 | ||||||
Rent-A-Center = 6 | 18,211 | 266 | ||||||
Ross Stores 6 | 35,126 | 1,148 | ||||||
Ryland Group 6 | 11,280 | 212 | ||||||
Saks = 6 | 35,300 | 212 | ||||||
Scholastic 6 | 6,534 | 121 | ||||||
Scientific Games, Class A = 6 | 16,688 | 300 | ||||||
Service International 6 | 69,176 | 477 | ||||||
Strayer Education 6 | 3,698 | 837 | ||||||
Thor Industries 6 | 9,126 | 163 | ||||||
Timberland, Class A = | 12,887 | 156 | ||||||
Toll Brothers = 6 | 32,534 | 752 | ||||||
TravelCenters, fractional share = ⊡ | 0.70 | — | ||||||
Tupperware 6 | 15,313 | 387 | ||||||
Under Armour, Class A = 6 | 8,876 | 231 | ||||||
Urban Outfitters = 6 | 28,782 | 626 | ||||||
Valassis Communications = 6 | 12,464 | 55 | ||||||
Warnaco Group = | 11,874 | 354 | ||||||
Wendy’s/Arby’s Group, Class A 6 | 119,000 | 431 | ||||||
Williams-Sonoma 6 | 22,625 | 187 | ||||||
24,226 | ||||||||
Consumer Staples – 3.8% | ||||||||
Alberto-Culver 6 | 21,583 | 555 | ||||||
BJ’s Wholesale Club = 6 | 16,645 | 586 | ||||||
Church & Dwight 6 | 16,281 | 962 | ||||||
Corn Products International | 19,200 | 467 | ||||||
Energizer Holdings = 6 | 14,891 | 728 | ||||||
Hansen Natural = 6 | 19,032 | 482 | ||||||
Hormel Foods | 18,660 | 527 | ||||||
JM Smucker 6 | 15,084 | 672 | ||||||
Lancaster Colony 6 | 5,566 | 175 | ||||||
NBTY = | 13,182 | 308 | ||||||
PepsiAmericas | 15,563 | 295 | ||||||
Ralcorp Holdings = | 13,638 | 923 | ||||||
Ruddick | 8,644 | 248 | ||||||
Smithfield Foods = 6 | 28,350 | 298 | ||||||
Tootsie Roll Industries 6 | 7,190 | 179 | ||||||
Universal | 6,949 | 275 | ||||||
7,680 | ||||||||
Energy – 6.5% | ||||||||
Arch Coal 6 | 37,056 | 793 | ||||||
Bill Barrett = | 8,497 | 173 | ||||||
Cimarex Energy 6 | 20,577 | 833 | ||||||
Comstock Resources = 6 | 11,817 | 584 | ||||||
Denbury Resources = 6 | 62,881 | 799 | ||||||
Encore Acquisition = 6 | 13,722 | 427 | ||||||
Exterran Holdings = 6 | 16,344 | 366 | ||||||
FMC Technologies = 6 | 33,234 | 1,163 | ||||||
Forest Oil = 6 | 22,557 | 659 | ||||||
Frontier Oil 6 | 27,167 | 359 | ||||||
Helix Energy Solutions Group = 6 | 23,666 | 250 | ||||||
Helmerich & Payne 6 | 26,664 | 915 | ||||||
Newfield Exploration = 6 | 33,200 | 763 | ||||||
Oceaneering International = | 14,384 | 405 | ||||||
Overseas Shipholding Group 6 | 6,989 | 263 | ||||||
Patriot Coal = 6 | 16,228 | 257 | ||||||
Patterson-UTI Energy 6 | 39,700 | 527 | ||||||
Plains Exploration & Production = | 28,918 | 816 | ||||||
Pride International = | 41,796 | 785 | ||||||
Quicksilver Resources = 6 | 28,660 | 300 | ||||||
Superior Energy Services = 6 | 20,805 | 444 | ||||||
Tidewater 6 | 15,092 | 658 | ||||||
Unit = | 12,212 | 458 | ||||||
12,997 | ||||||||
Financials – 18.2% | ||||||||
Affiliated Managers Group = 6 | 10,559 | 490 | ||||||
Alexandria Real Estate Equities – REIT 6 | 8,007 | 557 | ||||||
AMB Property – REIT 6 | 25,615 | 615 | ||||||
American Financial Group | 17,612 | 400 | ||||||
AmeriCredit = 6 | 30,449 | 178 | ||||||
Apollo Investment 6 | 32,171 | 424 | ||||||
Arthur J. Gallagher 6 | 24,123 | 588 | ||||||
Associated Banc 6 | 34,129 | 753 | ||||||
Astoria Financial 6 | 21,082 | 401 | ||||||
BancorpSouth 6 | 18,634 | 452 |
The accompanying notes are an integral part of the financial statements.
20 First American Funds 2008 Annual Report
Table of Contents
Mid Cap Index Fund (continued) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Bank of Hawaii 6 | 13,566 | $ | 688 | |||||
BRE Properties – REIT 6 | 12,922 | 450 | ||||||
Brown & Brown 6 | 29,001 | 595 | ||||||
Camden Property Trust – REIT 6 | 14,291 | 482 | ||||||
Cathay General Bancorp | 10,346 | 253 | ||||||
City National 6 | 10,384 | 556 | ||||||
Colonial BancGroup | 46,017 | 187 | ||||||
Commerce Bancshares | 16,401 | 775 | ||||||
Cousins Properties – REIT 6 | 11,464 | 166 | ||||||
Cullen/Frost Bankers | 13,077 | 732 | ||||||
Duke Realty – REIT 6 | 36,507 | 515 | ||||||
Eaton Vance | 32,183 | 708 | ||||||
Equity One – REIT 6 | 9,549 | 167 | ||||||
Essex Property Trust – REIT 6 | 6,584 | 641 | ||||||
Everest Re Group | 16,388 | 1,224 | ||||||
Federal Realty Investment Trust – REIT 6 | 15,117 | 926 | ||||||
Fidelity National Title Group | 55,466 | 500 | ||||||
First American 6 | 24,113 | 492 | ||||||
First Niagara Financial Group | 27,475 | 433 | ||||||
FirstMerit | 21,947 | 512 | ||||||
GATX 6 | 12,542 | 358 | ||||||
Hanover Insurance Group | 13,282 | 521 | ||||||
HCC Insurance Holdings | 29,271 | 646 | ||||||
Health Care – REIT 6 | 26,256 | 1,169 | ||||||
Highwoods Properties – REIT | 16,266 | 404 | ||||||
Horace Mann Educators | 11,053 | 88 | ||||||
Hospitality Properties Trust – REIT 6 | 23,366 | 237 | ||||||
Jefferies Group 6 | 30,908 | 489 | ||||||
Jones Lang LaSalle 6 | 10,405 | 342 | ||||||
Liberty Property Trust – REIT 6 | 22,972 | 548 | ||||||
Macerich – REIT 6 | 18,585 | 547 | ||||||
Mack-Cali Realty – REIT 6 | 17,315 | 393 | ||||||
Mercury General 6 | 9,169 | 471 | ||||||
Nationwide Health Properties – REIT 6 | 23,875 | 712 | ||||||
New York Community Bancorp | 83,132 | 1,302 | ||||||
Old Republic International 6 | 58,884 | 542 | ||||||
PacWest Bancorp 6 | 5,593 | 140 | ||||||
Philadelphia Consolidated Holding = | 14,898 | 871 | ||||||
PMI Group 6 | 20,911 | 52 | ||||||
Potlatch – REIT 6 | 9,902 | 329 | ||||||
Protective Life | 17,907 | 149 | ||||||
Raymond James Financial 6 | 24,136 | 562 | ||||||
Rayonier – REIT 6 | 20,209 | 668 | ||||||
Realty Income – REIT 6 | 25,770 | 596 | ||||||
Regency Centers – REIT 6 | 17,046 | 673 | ||||||
Reinsurance Group of America, Class A | 18,427 | 688 | ||||||
SEI Investments | 32,262 | 570 | ||||||
StanCorp Financial Group | 13,251 | 452 | ||||||
SVB Financial = 6 | 9,656 | 497 | ||||||
Synovus Financial 6 | 77,914 | 805 | ||||||
TCF Financial 6 | 28,555 | 507 | ||||||
UDR – REIT 6 | 34,495 | 682 | ||||||
Unitrin | 13,325 | 280 | ||||||
W.R. Berkley | 38,243 | 1,005 | ||||||
Waddell & Reed Financial, Class A | 21,774 | 316 | ||||||
Washington Federal 6 | 23,667 | 417 | ||||||
Webster Financial 6 | 14,652 | 272 | ||||||
Weingarten Realty Investors – REIT 6 | 21,304 | 436 | ||||||
Westamerica Bancorporation 6 | 7,626 | 437 | ||||||
Wilmington Trust 6 | 17,531 | 506 | ||||||
36,539 | ||||||||
Healthcare – 11.1% | ||||||||
Advanced Medical Optics = 6 | 15,492 | 96 | ||||||
Affymetrix = | 17,734 | 65 | ||||||
Beckman Coulter | 15,892 | 793 | ||||||
Cephalon = 6 | 17,131 | 1,229 | ||||||
Cerner = 6 | 16,803 | 626 | ||||||
Charles River Laboratories International = 6 | 17,538 | 628 | ||||||
Community Health Systems = 6 | 24,525 | 503 | ||||||
Covance = 6 | 16,215 | 811 | ||||||
DENTSPLY International | 39,530 | 1,201 | ||||||
Edwards Lifesciences = 6 | 15,032 | 794 | ||||||
Endo Pharmaceuticals Holdings = 6 | 31,538 | 583 | ||||||
Gen-Probe = 6 | 13,528 | 637 | ||||||
Health Management Associates, Class A = | 62,127 | 130 | ||||||
Health Net = | 28,200 | 363 | ||||||
Henry Schein = 6 | 22,551 | 1,056 | ||||||
Hill-Rom Holdings 6 | 15,697 | 357 | ||||||
Hologic = 6 | 65,224 | 798 | ||||||
IDEXX Laboratories = 6 | 13,831 | 487 | ||||||
Invitrogen = 6 | 24,768 | 713 | ||||||
Kindred Healthcare = 6 | 8,130 | 118 | ||||||
Kinetic Concepts = 6 | 13,760 | 333 | ||||||
Lifepoint Hospitals = 6 | 14,926 | 358 | ||||||
Lincare Holdings = | 18,851 | 497 | ||||||
Medicis Pharmaceutical, Class A | 13,192 | 188 | ||||||
Mine Safety Appliances 6 | 6,722 | 181 | ||||||
Omnicare 6 | 28,673 | 790 | ||||||
PDL BioPharma 6 | 30,083 | 293 | ||||||
Perrigo 6 | 19,938 | 678 | ||||||
Pharmaceutical Product Development 6 | 28,273 | 876 | ||||||
Psychiatric Solutions = 6 | 14,117 | 470 | ||||||
Resmed = 6 | 19,471 | 667 | ||||||
Sepracor = 6 | 28,696 | 382 | ||||||
STERIS 6 | 16,631 | 566 | ||||||
Techne | 9,690 | 669 | ||||||
United Therapeutics = 6 | 5,877 | 513 | ||||||
Universal Health Services 6 | 13,666 | 575 | ||||||
Valeant Pharmaceuticals International = 6 | 23,584 | 443 | ||||||
Varian = | 8,202 | 302 | ||||||
VCA Antech = 6 | 21,043 | 381 | ||||||
Vertex Pharmaceuticals = 6 | 38,259 | 1,003 | ||||||
WellCare Health Plans = | 10,659 | 258 | ||||||
22,411 | ||||||||
Industrials – 14.4% | ||||||||
AGCO = 6 | 23,679 | 746 | ||||||
AirTran Holdings = 6 | 23,284 | 95 | ||||||
Alaska Air Group = | 9,801 | 242 | ||||||
Alexander & Baldwin | 10,639 | 339 | ||||||
Alliant Techsystems = 6 | 8,622 | 712 | ||||||
AMETEK | 27,530 | 915 | ||||||
Avis Budget Group = | 26,590 | 44 | ||||||
BE Aerospace = | 23,594 | 304 | ||||||
Brinks | 11,475 | 556 | ||||||
Career Education = | 19,294 | 305 | ||||||
Carlisle Companies | 15,329 | 356 | ||||||
Clean Harbors = | 5,151 | 338 | ||||||
Con-way | 11,611 | 395 | ||||||
Copart = 6 | 18,507 | 646 | ||||||
Corporate Executive Board | 9,110 | 272 | ||||||
Corrections Corporation of America = | 32,116 | 614 | ||||||
Crane | 13,028 | 213 | ||||||
Deluxe 6 | 13,393 | 163 | ||||||
Donaldson 6 | 20,253 | 712 | ||||||
Dun & Bradstreet | 14,921 | 1,100 | ||||||
Dycom Industries = | 10,837 | 96 | ||||||
Federal Signal | 12,290 | 105 | ||||||
Graco 6 | 16,158 | 400 | ||||||
Granite Construction | 8,779 | 313 | ||||||
Harsco 6 | 21,352 | 505 |
First American Funds 2008 Annual Report 21
Table of Contents
Schedule of Investments October 31, 2008, all dollars are rounded to thousands (000)
Mid Cap Index Fund (continued) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Herman Miller 6 | 15,727 | $ | 346 | |||||
HNI 6 | 11,819 | 217 | ||||||
Hubbell, Class B 6 | 14,891 | 534 | ||||||
IDEX | 20,383 | 473 | ||||||
ITT Educational Services = 6 | 7,960 | 698 | ||||||
J.B. Hunt Transport Services 6 | 22,832 | 649 | ||||||
JetBlue Airways = 6 | 45,563 | 253 | ||||||
Joy Global 6 | 27,687 | 802 | ||||||
Kansas City Southern = 6 | 23,421 | 723 | ||||||
KBR 6 | 43,502 | 646 | ||||||
Kelly Services, Class A 6 | 5,117 | 73 | ||||||
Kennametal | 20,181 | 428 | ||||||
Korn/Ferry International = 6 | 11,475 | 159 | ||||||
Lincoln Electric Holdings 6 | 11,073 | 478 | ||||||
Manpower 6 | 20,813 | 648 | ||||||
MSC Industrial Direct, Class A 6 | 12,037 | 432 | ||||||
Navigant Consulting = | 11,770 | 190 | ||||||
Nordson | 8,707 | 322 | ||||||
Oshkosh Truck | 18,846 | 144 | ||||||
Pentair 6 | 25,642 | 709 | ||||||
Quanta Services = | 45,196 | 893 | ||||||
Republic Services | 41,284 | 978 | ||||||
Rollins | 10,974 | 193 | ||||||
Roper Industries 6 | 22,407 | 1,016 | ||||||
SAIC = 6 | 45,990 | 849 | ||||||
Shaw Group = | 21,130 | 378 | ||||||
Sotheby’s Holdings, Class A 6 | 17,096 | 159 | ||||||
SPX | 14,305 | 554 | ||||||
Stericycle = 6 | 22,209 | 1,298 | ||||||
Teleflex 6 | 10,147 | 538 | ||||||
Thomas & Betts = | 13,096 | 311 | ||||||
Timken 6 | 24,144 | 383 | ||||||
Trinity Industries 6 | 20,776 | 351 | ||||||
United Rentals = | 12,090 | 124 | ||||||
URS = | 21,498 | 632 | ||||||
Werner Enterprises | 11,588 | 227 | ||||||
Westinghouse Air Brake Technologies 6 | 12,409 | 493 | ||||||
YRC Worldwide = 6 | 14,710 | 67 | ||||||
28,854 | ||||||||
Information Technology – 11.9% | ||||||||
3Com = | 102,416 | 280 | ||||||
ACI Worldwide = 6 | 9,519 | 130 | ||||||
Acxiom 6 | 17,333 | 136 | ||||||
ADC Telecommunications = 6 | 29,973 | 190 | ||||||
ADTRAN 6 | 15,658 | 238 | ||||||
Advent Software = 6 | 5,314 | 100 | ||||||
Alliance Data Systems = 6 | 17,362 | 871 | ||||||
ANSYS = | 21,025 | 602 | ||||||
Arrow Electronics = | 31,145 | 543 | ||||||
Atmel = 6 | 122,636 | 509 | ||||||
Avnet = | 38,402 | 643 | ||||||
Avocent = 6 | 13,119 | 197 | ||||||
Broadridge Financial Solutions | 35,050 | 424 | ||||||
Cadence Design Systems = | 69,562 | 283 | ||||||
CommScope = 6 | 18,092 | 266 | ||||||
Cree = 6 | 21,709 | 426 | ||||||
Diebold | 17,018 | 506 | ||||||
Digital River = 6 | 10,453 | 259 | ||||||
DST Systems = 6 | 11,925 | 484 | ||||||
F5 Networks = 6 | 21,574 | 535 | ||||||
FactSet Research Systems 6 | 9,400 | 365 | ||||||
Fair Isaac | 12,922 | 201 | ||||||
Fairchild Semiconductor International = | 31,275 | 178 | ||||||
FLIR Systems = 6 | 34,648 | 1,112 | ||||||
Foundry Networks = 6 | 38,701 | 575 | ||||||
Gartner, Class A = 6 | 15,228 | 280 | ||||||
Global Payments | 20,537 | 832 | ||||||
Imation | 8,382 | 103 | ||||||
Ingram Micro, Class A = | 37,440 | 499 | ||||||
Integrated Device Technology = | 44,182 | 281 | ||||||
International Rectifier = | 18,469 | 285 | ||||||
Intersil, Class A | 33,633 | 460 | ||||||
Jack Henry & Associates 6 | 19,428 | 369 | ||||||
Lam Research = 6 | 32,067 | 717 | ||||||
Lender Processing Services | 20,180 | 466 | ||||||
Macrovision Solutions = 6 | 20,536 | 228 | ||||||
McAfee = | 41,179 | 1,340 | ||||||
Mentor Graphics = | 22,950 | 168 | ||||||
Metavante Technologies = | 22,730 | 381 | ||||||
MPS Group = 6 | 27,021 | 211 | ||||||
National Instruments 6 | 14,424 | 366 | ||||||
NCR = 6 | 43,129 | 788 | ||||||
Palm = 6 | 26,653 | 106 | ||||||
Parametric Technology = 6 | 29,414 | 382 | ||||||
Plantronics | 12,385 | 179 | ||||||
Polycom = 6 | 22,904 | 481 | ||||||
RF Micro Devices = | 73,363 | 146 | ||||||
Semtech = 6 | 16,874 | 205 | ||||||
Silicon Laboratories = | 12,564 | 326 | ||||||
SRA International, Class A = 6 | 9,394 | 174 | ||||||
Sybase = 6 | 22,262 | 593 | ||||||
Synopsys = | 35,941 | 657 | ||||||
Tech Data = | 14,149 | 304 | ||||||
Trimble Navigation = | 28,776 | 592 | ||||||
ValueClick = 6 | 25,218 | 187 | ||||||
Vishay Intertechnology = | 48,208 | 208 | ||||||
Western Digital = 6 | 56,102 | 926 | ||||||
Wind River Systems = | 19,509 | 171 | ||||||
Zebra Technology, Class A = 6 | 17,709 | 358 | ||||||
23,822 | ||||||||
Materials – 6.1% | ||||||||
Airgas | 21,087 | 809 | ||||||
Albemarle | 23,554 | 574 | ||||||
AptarGroup | 17,514 | 531 | ||||||
Cabot Microelectronics 6 | 17,384 | 460 | ||||||
Carpenter Technology 6 | 13,105 | 237 | ||||||
Chemtura 6 | 63,772 | 110 | ||||||
Cliffs Natural Resources 6 | 27,496 | 742 | ||||||
Commercial Metals | 30,029 | 333 | ||||||
Cytec Industries 6 | 10,758 | 305 | ||||||
Ferro 6 | 10,910 | 169 | ||||||
FMC 6 | 19,505 | 849 | ||||||
Greif, Class A 6 | 8,796 | 357 | ||||||
Louisiana Pacific | 27,041 | 130 | ||||||
Lubrizol 6 | 17,779 | 668 | ||||||
Martin Marietta Materials 6 | 11,053 | 866 | ||||||
Minerals Technologies 6 | 5,156 | 293 | ||||||
Olin 6 | 18,195 | 330 | ||||||
Packaging Corporation of America 6 | 23,751 | 400 | ||||||
Reliance Steel & Aluminum 6 | 16,560 | 415 | ||||||
RPM International 6 | 30,589 | 434 | ||||||
Scotts Miracle-Gro, Class A 6 | 11,109 | 290 | ||||||
Sensient Technologies 6 | 11,847 | 299 | ||||||
Sonoco Products | 26,017 | 655 | ||||||
Steel Dynamics 6 | 48,204 | 575 | ||||||
Temple-Inland | 25,503 | 151 | ||||||
Terra Industries | 23,852 | 525 | ||||||
Valspar 6 | 25,472 | 521 | ||||||
Worthington Industries | 16,895 | 204 | ||||||
12,232 | ||||||||
The accompanying notes are an integral part of the financial statements.
22 First American Funds 2008 Annual Report
Table of Contents
Mid Cap Index Fund (continued) | ||||||||
DESCRIPTION | SHARES/PAR | VALUE | ||||||
Telecommunication Services – 0.6% | ||||||||
Cincinnati Bell = 6 | 62,851 | $ | 150 | |||||
NeuStar, Class A = 6 | 19,351 | 381 | ||||||
Telephone & Data Systems | 27,297 | 733 | ||||||
1,264 | ||||||||
Utilities – 7.8% | ||||||||
AGL Resources 6 | 19,926 | 606 | ||||||
Alliant Energy | 32,258 | 948 | ||||||
Aqua America 6 | 33,961 | 611 | ||||||
Black Hills 6 | 9,228 | 233 | ||||||
DPL 6 | 30,339 | 692 | ||||||
Energen | 18,502 | 621 | ||||||
Equitable Resources 6 | 33,713 | 1,170 | ||||||
Great Plains Energy 6 | 28,803 | 560 | ||||||
Hawaiian Electric Industries | 21,142 | 563 | ||||||
IDACORP 6 | 10,983 | 293 | ||||||
MDU Resources Group 6 | 46,855 | 853 | ||||||
National Fuel Gas 6 | 20,415 | 739 | ||||||
Northeast Utilities 6 | 39,441 | 890 | ||||||
NSTAR | 28,007 | 926 | ||||||
OGE Energy | 22,054 | 602 | ||||||
ONEOK | 27,622 | 881 | ||||||
PNM Resources 6 | 19,657 | 192 | ||||||
Puget Energy | 30,902 | 724 | ||||||
SCANA | 29,908 | 984 | ||||||
Sierra Pacific Resources | 58,995 | 489 | ||||||
UGI | 28,005 | 668 | ||||||
Vectren | 19,935 | 502 | ||||||
Westar Energy | 26,642 | 519 | ||||||
WGL Holdings 6 | 12,634 | 407 | ||||||
15,673 | ||||||||
Total Common Stocks | ||||||||
(Cost $222,249) | 185,698 | |||||||
Short-Term Investments – 6.8% | ||||||||
Money Market Fund – 6.1% | ||||||||
First American Prime Obligations Fund, Class Z Å | 12,269,203 | 12,269 | ||||||
U.S. Treasury Obligation – 0.7% | ||||||||
U.S. Treasury Bill o | ||||||||
1.578%, 12/18/2008 | $ | 1,470 | 1,467 | |||||
Total Short-Term Investments | ||||||||
(Cost $13,736) | 13,736 | |||||||
Investment Purchased with Proceeds from Securities Lending – 45.1% | ||||||||
Mount Vernon Securities Lending Prime Portfolio † | ||||||||
(Cost $90,544) | 90,544,049 | 90,544 | ||||||
Total Investments – 144.4% | ||||||||
(Cost $326,529) | 289,978 | |||||||
Other Assets and Liabilities, Net – (44.4)% | (89,168 | ) | ||||||
Total Net Assets – 100.0% | $ | 200,810 | ||||||
= | Non-income producing security. | |
6 | This security or a portion of this security is out on loan at October 31, 2008. Total loaned securities had a market value of $89,533 at October 31, 2008. See note 2 in Notes to Financial Statements. | |
⊡ | Security is fair valued and illiquid. As of October 31, 2008, the value of this investment was $0 or 0.0% of total net assets. See note 2 in Notes to Financial Statements. |
Mid Cap Index Fund (concluded)
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. Yield shown is effective yield as of October 31, 2008. | |
† | 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. |
REIT – | Real Estate Investment Trust |
Schedule of Open Futures Contracts
Number of | Notional | |||||||||||||
Contracts | Contract | Settlement | Unrealized | |||||||||||
Description | Purchased | Value | Month | Depreciation | ||||||||||
S&P Mid Cap 400 Futures | 52 | $ | 14,778 | December 2008 | $ | (3,366 | ) | |||||||
First American Funds 2008 Annual Report 23
Table of Contents
Schedule of Investments October 31, 2008, all dollars are rounded to thousands (000)
Small Cap Index Fund | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Common Stocks – 92.5% | ||||||||
Consumer Discretionary – 10.9% | ||||||||
1-800-Flowers.com, Class A = | 1,917 | $ | 10 | |||||
99 Cents Only Stores = 6 | 3,439 | 42 | ||||||
Aaron Rents 6 | 3,323 | 82 | ||||||
Aeropostale = 6 | 4,929 | 119 | ||||||
AFC Enterprises = | 1,940 | 9 | ||||||
AH Belo, Class A | 1,500 | 5 | ||||||
Ambassadors Group | 1,404 | 15 | ||||||
American Apparel = 6 | 2,495 | 15 | ||||||
American Axle & Manufacturing Holdings 6 | 3,373 | 12 | ||||||
American Greetings, Class A 6 | 3,533 | 41 | ||||||
American Public Education = | 787 | 35 | ||||||
America’s Car-Mart = 6 | 717 | 12 | ||||||
Amerigon = 6 | 1,601 | 8 | ||||||
Ameristar Casinos 6 | 1,838 | 17 | ||||||
Andersons 6 | 1,309 | 35 | ||||||
Arbitron | 1,940 | 63 | ||||||
ArvinMeritor 6 | 5,430 | 32 | ||||||
Asbury Automotive Group | 2,282 | 7 | ||||||
ATC Technology = 6 | 1,555 | 34 | ||||||
Avatar Holdings = 6 | 437 | 15 | ||||||
Bally Technologies = 6 | 4,031 | 89 | ||||||
Beazer Homes USA = 6 | 2,891 | 9 | ||||||
Bebe Stores 6 | 2,828 | 25 | ||||||
Belo, Class A | 6,528 | 14 | ||||||
Big 5 Sporting Goods | 1,718 | 11 | ||||||
BJ’s Restaurants = | 1,135 | 10 | ||||||
Blockbuster, Class A = 6 | 13,248 | 20 | ||||||
Blount International = | 2,851 | 25 | ||||||
Blue Nile = 6 | 987 | 30 | ||||||
Bluegreen = | 934 | 5 | ||||||
BLYTH | 1,782 | 15 | ||||||
Bob Evans Farms | 2,114 | 44 | ||||||
Borders Group | 4,325 | 15 | ||||||
Brookfield Homes 6 | 966 | 9 | ||||||
Brown Shoe 6 | 3,147 | 33 | ||||||
Brunswick 6 | 6,454 | 22 | ||||||
Buckle | 1,709 | 45 | ||||||
Buffalo Wild Wings = 6 | 1,311 | 37 | ||||||
Build-A-Bear Workshop = | 1,170 | 6 | ||||||
Cabela’s = 6 | 2,894 | 23 | ||||||
Cache = | 853 | 3 | ||||||
California Pizza Kitchen = | 1,737 | 17 | ||||||
Callaway Golf 6 | 4,844 | 51 | ||||||
Capella Education Company = 6 | 1,042 | 49 | ||||||
Carters = 6 | 4,170 | 89 | ||||||
Casual Male Retail Group = | 2,664 | 5 | ||||||
Cato, Class A | 2,032 | 32 | ||||||
Cavco Industries = | 462 | 16 | ||||||
CBRL Group | 1,632 | 33 | ||||||
CEC Entertainment = | 1,581 | 41 | ||||||
Champion Enterprise = | 5,620 | 11 | ||||||
Charlotte Russe Holding = | 1,536 | 13 | ||||||
Charming Shoppes = 6 | 8,347 | 9 | ||||||
Charter Communications, Class A = 6 | 30,059 | 13 | ||||||
Cheesecake Factory = 6 | 4,795 | 42 | ||||||
Cherokee 6 | 594 | 12 | ||||||
Chico’s FAS = 6 | 12,925 | 44 | ||||||
Children’s Place Retail Stores = 6 | 1,710 | 57 | ||||||
Christopher & Banks | 2,583 | 13 | ||||||
Churchill Downs | 684 | 26 | ||||||
Cinemark Holdings 6 | 1,951 | 16 | ||||||
Circuit City Stores 6 | 12,070 | 3 | ||||||
Citadel Broadcasting = 6 | 12,466 | 3 | ||||||
Citi Trends = | 1,051 | 18 | ||||||
CKE Restaurants | 3,893 | 33 | ||||||
CKX = | 3,806 | 17 | ||||||
Coinstar = 6 | 2,012 | 48 | ||||||
Coldwater Creek = 6 | 4,193 | 15 | ||||||
Collective Brands = | 4,710 | 60 | ||||||
Columbia Sportswear 6 | 895 | 33 | ||||||
Conn’s = 6 | 699 | 9 | ||||||
Cooper Tire & Rubber | 4,340 | 33 | ||||||
Core Mark Holding = | 598 | 12 | ||||||
Corinthian Colleges = | 6,237 | 89 | ||||||
Courier | 801 | 14 | ||||||
Cox Radio = | 2,105 | 11 | ||||||
Crocs = 6 | 6,096 | 15 | ||||||
Crown Media Holdings, Class A = 6 | 1,767 | 6 | ||||||
CSS Industries | 538 | 12 | ||||||
Cumulus Media, Class A = 6 | 2,367 | 2 | ||||||
Dana Holding = 6 | 7,250 | 14 | ||||||
Deckers Outdoor = 6 | 956 | 81 | ||||||
Denny’s = | 7,982 | 14 | ||||||
DG Fastchannel = 6 | 1,091 | 19 | ||||||
Dillard’s, Class A 6 | 4,079 | 22 | ||||||
DineEquity 6 | 1,282 | 23 | ||||||
Dolan Media = | 1,567 | 6 | ||||||
Domino’s Pizza = 6 | 2,890 | 17 | ||||||
Dorman Products = | 784 | 9 | ||||||
Dover Downs Gaming & Entertainment | 942 | 5 | ||||||
Dover Motorsports | 1,083 | 2 | ||||||
Dress Barn = | 3,295 | 32 | ||||||
Drew Industries = | 1,425 | 17 | ||||||
Drugstore.com = | 5,974 | 11 | ||||||
DSW = 6 | 1,048 | 14 | ||||||
Einstein Noah Restaurant Group = | 314 | 3 | ||||||
Entercom Communications 6 | 2,069 | 1 | ||||||
Entravision Communications = | 4,525 | 9 | ||||||
Ethan Allen Interiors 6 | 1,813 | 32 | ||||||
Exide Technologies = | 5,511 | 26 | ||||||
FGX International Holdings Limited = | 994 | 11 | ||||||
Finish Line, Class A | 3,105 | 30 | ||||||
Fisher Communications = | 409 | 15 | ||||||
Fleetwood Enterprises = 6 | 5,619 | 3 | ||||||
Fossil = 6 | 3,322 | 60 | ||||||
Fred’s 6 | 2,924 | 36 | ||||||
Fuel Systems Solutions = | 885 | 25 | ||||||
Fuqi International = | 697 | 6 | ||||||
Furniture Brands International 6 | 3,338 | 19 | ||||||
Gaiam, Class A = | 1,277 | 10 | ||||||
Gaylord Entertainment = 6 | 2,992 | 64 | ||||||
Genesco = 6 | 1,396 | 35 | ||||||
GenTek = | 618 | 11 | ||||||
G-III Apparel Group = | 968 | 13 | ||||||
Global Sources = 6 | 1,242 | 10 | ||||||
Gray Television | 3,058 | 2 | ||||||
Great Wolf Resorts = | 1,961 | 4 | ||||||
Group 1 Automotive 6 | 1,677 | 17 | ||||||
GSI Commerce = 6 | 1,730 | 18 | ||||||
Gymboree = 6 | 2,097 | 54 | ||||||
Harte-Hanks 6 | 2,624 | 18 | ||||||
Haverty Furniture | 1,350 | 13 | ||||||
Hayes Lemmerz International = | 7,228 | 10 | ||||||
Helen of Troy = 6 | 2,079 | 37 | ||||||
hhgregg = | 892 | 5 | ||||||
Hibbett Sports = 6 | 2,187 | 39 | ||||||
Hooker Furniture | 657 | 6 | ||||||
Hot Topic = | 3,202 | 21 | ||||||
Hovnanian Enterprises, Class A = 6 | 3,356 | 14 | ||||||
Iconix Brand Group = 6 | 4,223 | 46 |
The accompanying notes are an integral part of the financial statements.
24 First American Funds 2008 Annual Report
Table of Contents
Small Cap Index Fund (continued) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Idearc 6 | 10,538 | $ | 4 | |||||
Insight Enterprises = | 3,434 | 33 | ||||||
Interactive Data 6 | 2,697 | 64 | ||||||
Interface, Class A | 3,856 | 27 | ||||||
iRobot = 6 | 1,279 | 13 | ||||||
Isle of Capri Casinos = 6 | 1,132 | 6 | ||||||
J. Crew Group = 6 | 3,103 | 63 | ||||||
Jack in the Box = | 4,304 | 87 | ||||||
JAKKS Pacific = | 2,006 | 45 | ||||||
Jo-Ann Stores = | 1,869 | 36 | ||||||
Jos. A. Bank Clothiers = 6 | 1,341 | 34 | ||||||
Journal Communications, Class A | 2,895 | 7 | ||||||
K12 = 6 | 449 | 12 | ||||||
Kenneth Cole Productions | 692 | 9 | ||||||
Kimball International | 2,283 | 17 | ||||||
Knology = | 2,053 | 10 | ||||||
Krispy Kreme Doughnuts = 6 | 4,526 | 12 | ||||||
K-Swiss, Class A | 1,927 | 29 | ||||||
Landry’s Restaurants 6 | 849 | 11 | ||||||
La-Z-Boy 6 | 3,520 | 20 | ||||||
LeapFrog Enterprises = | 2,610 | 18 | ||||||
Lear = | 5,079 | 10 | ||||||
Lee Enterprises 6 | 3,185 | 8 | ||||||
Libbey | 1,077 | 4 | ||||||
Life Time Fitness = 6 | 2,551 | 49 | ||||||
Lin TV, Class A = | 1,865 | 3 | ||||||
Lincoln Edl Svcs Corp. = | 315 | 5 | ||||||
Live Nation = 6 | 5,584 | 63 | ||||||
Lodgian = 6 | 1,271 | 6 | ||||||
Luby’s = | 1,542 | 7 | ||||||
Lululemon Athletica = 6 | 1,328 | 19 | ||||||
Lumber Liquidators = 6 | 672 | 6 | ||||||
M/I Homes | 1,015 | 14 | ||||||
Maidenform Brands = | 1,611 | 18 | ||||||
Marcus | 1,450 | 20 | ||||||
Marine Products | 1,141 | 7 | ||||||
MarineMax = 6 | 1,205 | 3 | ||||||
Martha Stewart Living = | 1,824 | 10 | ||||||
Marvel Entertainment = 6 | 3,605 | 116 | ||||||
Matthews International, Class A 6 | 2,384 | 106 | ||||||
McClatchy 6 | 4,068 | 12 | ||||||
Media General, Class A 6 | 1,536 | 12 | ||||||
Mediacom Communications = | 3,768 | 17 | ||||||
Men’s Wearhouse | 3,781 | 58 | ||||||
Meritage Homes = 6 | 2,262 | 31 | ||||||
Midas = | 1,017 | 13 | ||||||
Modine Manufacturing 6 | 2,364 | 17 | ||||||
Monarch Casino & Resort = 6 | 901 | 8 | ||||||
Monro Muffler Brake | 1,248 | 27 | ||||||
Morgans Hotel Group = 6 | 1,989 | 9 | ||||||
Movado Group 6 | 1,174 | 18 | ||||||
National Cinemedia | 3,082 | 25 | ||||||
National Presto Industries | 321 | 21 | ||||||
Nautilus = | 2,239 | 5 | ||||||
Netflix = 6 | 2,974 | 74 | ||||||
New York & Company = | 1,725 | 5 | ||||||
NutriSystem 6 | 2,238 | 32 | ||||||
O’Charleys | 1,902 | 14 | ||||||
Orbitz Worldwide = 6 | 2,649 | 9 | ||||||
Outdoor Channel Holdings = | 1,164 | 9 | ||||||
Overstock.com = 6 | 1,122 | 14 | ||||||
Oxford Industries | 1,030 | 14 | ||||||
P.F. Chang’s China Bistro = 6 | 1,638 | 34 | ||||||
Pacific Sunwear of California = 6 | 5,199 | 18 | ||||||
Palm Harbor Homes = 6 | 836 | 7 | ||||||
Papa John’s International = | 1,462 | 33 | ||||||
PC Mall = | 791 | 4 | ||||||
Pep Boys – Manny, Moe & Jack | 3,091 | 15 | ||||||
Perry Ellis International = | 897 | 9 | ||||||
PetMed Express = 6 | 1,697 | 30 | ||||||
Pier 1 Imports = | 6,562 | 9 | ||||||
Pinnacle Entertainment = 6 | 4,392 | 25 | ||||||
Playboy Enterprises, Class B = | 1,742 | 4 | ||||||
Polaris Industries 6 | 2,466 | 83 | ||||||
Pool 6 | 3,503 | 61 | ||||||
Prestige Brand Holdings = | 2,247 | 16 | ||||||
PRIMEDIA | 3,018 | 4 | ||||||
Quantum Fuel Systems Technologies Worldwide = 6 | 6,070 | 5 | ||||||
Quiksilver = | 9,232 | 24 | ||||||
R.H. Donnelley & Sons = 6 | 4,919 | 4 | ||||||
Raser Technologies = 6 | 3,301 | 14 | ||||||
RC2 = 6 | 1,283 | 16 | ||||||
RCN = | 2,692 | 17 | ||||||
Red Robin Gourmet Burgers = 6 | 1,294 | 20 | ||||||
Regis | 3,037 | 38 | ||||||
Rent-A-Center = 6 | 4,888 | 71 | ||||||
Retail Ventures = | 2,067 | 4 | ||||||
Rex Stores = | 636 | 6 | ||||||
RHI Entertainment = | 602 | 8 | ||||||
Rick’s Cabaret International = | 432 | 3 | ||||||
Riviera Holdings = | 743 | 3 | ||||||
Ruby Tuesday = | 3,747 | 9 | ||||||
Russ Berrie and Company = | 1,236 | 3 | ||||||
Ruth’s Chris Steak House = | 1,344 | 3 | ||||||
Ryland Group 6 | 3,105 | 58 | ||||||
Sally Beauty Holdings = 6 | 6,952 | 35 | ||||||
Sauer-Danfoss | 850 | 9 | ||||||
Scholastic 6 | 2,087 | 39 | ||||||
Sealy 6 | 3,259 | 11 | ||||||
Shoe Carnival = | 669 | 9 | ||||||
Shuffle Master = 6 | 3,898 | 15 | ||||||
Shutterfly = | 1,407 | 11 | ||||||
Sinclair Broadcast Group, Class A 6 | 3,477 | 11 | ||||||
Six Flags = 6 | 5,265 | 2 | ||||||
Skechers U.S.A., Class A = | 2,405 | 33 | ||||||
Skyline | 507 | 11 | ||||||
Smith & Wesson = | 2,686 | 6 | ||||||
Sonic Automotive, Class A 6 | 1,985 | 10 | ||||||
Sonic = 6 | 4,360 | 47 | ||||||
Spartan Motors | 2,375 | 11 | ||||||
Speedway Motorsports | 948 | 15 | ||||||
Stage Stores | 2,808 | 22 | ||||||
Stamps.com = | 1,192 | 12 | ||||||
Standard-Pacific = 6 | 9,137 | 26 | ||||||
Steak ’N Shake = | 2,025 | 10 | ||||||
Stein Mart 6 | 1,838 | 4 | ||||||
Steiner Leisure = | 1,201 | 31 | ||||||
Steinway Musical Instruments = | 658 | 15 | ||||||
Steven Madden = | 1,294 | 28 | ||||||
Stoneridge = | 1,079 | 6 | ||||||
Superior Industries International 6 | 1,647 | 24 | ||||||
SYMS = 6 | 475 | 5 | ||||||
Systemax 6 | 797 | 11 | ||||||
Talbots 6 | 1,769 | 17 | ||||||
Tempur-Pedic International 6 | 5,504 | 43 | ||||||
Tenneco Automotive = | 3,414 | 17 | ||||||
Texas Roadhouse, Class A = 6 | 4,031 | 28 | ||||||
thinkorswim Group = | 3,836 | 31 | ||||||
Timberland, Class A = 6 | 3,502 | 42 | ||||||
TiVo = | 7,510 | 52 | ||||||
Town Sports International Holdings = | 1,266 | 3 |
First American Funds 2008 Annual Report 25
Table of Contents
Schedule of Investments October 31, 2008, all dollars are rounded to thousands (000)
Small Cap Index Fund (continued) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Tractor Supply = 6 | 2,441 | $ | 101 | |||||
True Religion Apparel = 6 | 1,250 | 21 | ||||||
Tuesday Morning = 6 | 2,107 | 5 | ||||||
Tupperware 6 | 4,485 | 113 | ||||||
Tween Brands = | 1,774 | 15 | ||||||
Ulta Salon, Cosmetics & Fragrance = 6 | 1,452 | 13 | ||||||
Under Armour, Class A = 6 | 2,414 | 63 | ||||||
Unifi = | 3,228 | 16 | ||||||
UniFirst | 1,027 | 34 | ||||||
Universal Electronics = | 1,031 | 22 | ||||||
Vail Resorts = 6 | 2,306 | 77 | ||||||
Valassis Communications = | 3,477 | 15 | ||||||
VistaPrint = 6 | 3,234 | 55 | ||||||
Visteon = | 9,599 | 7 | ||||||
Volcom = 6 | 1,331 | 17 | ||||||
Warnaco Group = | 3,334 | 99 | ||||||
Wendy’s/Arby’s Group, Class A 6 | 26,547 | 96 | ||||||
Westwood One = 6 | 4,797 | 1 | ||||||
Wet Seal, Class A = 6 | 6,785 | 20 | ||||||
Weyco Group | 519 | 14 | ||||||
Winnebago Industries 6 | 2,198 | 13 | ||||||
WMS Industries = 6 | 3,215 | 80 | ||||||
Wolverine World Wide 6 | 3,601 | 85 | ||||||
Wonder Auto Technology = | 1,051 | 4 | ||||||
World Wrestling Entertainment | 1,609 | 23 | ||||||
Xerium Technologies 6 | 1,483 | 6 | ||||||
Zale = 6 | 2,617 | 45 | ||||||
Zumiez = 6 | 1,439 | 14 | ||||||
7,038 | ||||||||
Consumer Staples – 3.7% | ||||||||
Agfeed Industries = | 1,419 | 6 | ||||||
Alico | 330 | 13 | ||||||
Alliance One International = | 7,019 | 23 | ||||||
American Dairy = | 520 | 6 | ||||||
American Oriental Bioengineering = 6 | 4,521 | 28 | ||||||
Arden Group, Class A | 83 | 12 | ||||||
B & G Foods | 1,437 | 5 | ||||||
Boston Beer, Class A = 6 | 602 | 23 | ||||||
Cadiz = 6 | 796 | 11 | ||||||
Calavo Growers | 741 | 8 | ||||||
Cal-Maine Foods 6 | 938 | 28 | ||||||
Casey’s General Stores 6 | 3,715 | 112 | ||||||
Central Garden & Pet, Class A = | 4,657 | 15 | ||||||
Chattem = 6 | 1,258 | 95 | ||||||
China Sky One Med = | 530 | 5 | ||||||
Chiquita Brands International = 6 | 3,132 | 43 | ||||||
Coca-Cola Bottling 6 | 346 | 15 | ||||||
Darling International = 6 | 5,969 | 45 | ||||||
Diamond Foods | 1,147 | 34 | ||||||
Elizabeth Arden = | 1,799 | 31 | ||||||
Farmer Brothers | 456 | 11 | ||||||
Flowers Foods | 5,697 | 169 | ||||||
Fresh Del Monte Produce = | 2,999 | 63 | ||||||
Great Atlantic & Pacific Tea = | 2,599 | 22 | ||||||
Green Mountain Coffee Roasters = 6 | 1,308 | 38 | ||||||
Griffin Land & Nurseries | 244 | 7 | ||||||
Hain Celestial Group = | 2,897 | 67 | ||||||
HQ Sustainable Maritime Industries = 6 | 476 | 2 | ||||||
Imperial Sugar | 903 | 11 | ||||||
Ingles Markets, Class A | 889 | 17 | ||||||
Inter Parfums | 1,004 | 12 | ||||||
J&J Snack Foods | 1,047 | 33 | ||||||
Lancaster Colony | 1,422 | 45 | ||||||
Lance 6 | 2,118 | 44 | ||||||
Lifeway Foods = | 346 | 3 | ||||||
M & F Worldwide = | 911 | 21 | ||||||
Mannatech 6 | 1,380 | 6 | ||||||
Maui Land & Pineapple = | 372 | 6 | ||||||
Nash-Finch 6 | 912 | 36 | ||||||
National Beverage = | 714 | 7 | ||||||
Nu Skin Enterprises, Class A | 3,472 | 45 | ||||||
Omega Protein = | 1,313 | 10 | ||||||
Pantry = | 1,637 | 36 | ||||||
Peet’s Coffee & Tea = 6 | 1,034 | 23 | ||||||
Pilgrim’s Pride 6 | 3,304 | 4 | ||||||
PriceSmart | 1,032 | 15 | ||||||
Ralcorp Holdings = | 4,143 | 280 | ||||||
Reddy Ice Holdings | 1,278 | 3 | ||||||
Ruddick 6 | 3,010 | 86 | ||||||
Sanderson Farms | 1,495 | 47 | ||||||
Schiff Nutrition International = | 684 | 4 | ||||||
Seaboard | 27 | 36 | ||||||
Smart Balance = 6 | 4,479 | 32 | ||||||
Spartan Stores 6 | 1,780 | 48 | ||||||
Spectrum Brands = 6 | 2,951 | 2 | ||||||
Star Scientific = 6 | 4,711 | 15 | ||||||
Susser Holdings = | 556 | 9 | ||||||
Synutra International = 6 | 765 | 11 | ||||||
Tootsie Roll Industries 6 | 2,104 | 52 | ||||||
Treehouse Foods = 6 | 2,300 | 70 | ||||||
United Natural Foods = 6 | 3,141 | 70 | ||||||
Universal | 1,977 | 78 | ||||||
USANA Health Sciences = 6 | 592 | 22 | ||||||
Vector Group | 2,243 | 38 | ||||||
Village Super Market | 208 | 10 | ||||||
WD-40 Company | 1,116 | 32 | ||||||
Weis Markets | 808 | 26 | ||||||
Winn Dixie Stores = | 3,961 | 60 | ||||||
Zhongpin = | 1,319 | 11 | ||||||
2,353 | ||||||||
Energy – 4.9% | ||||||||
Abraxas Petroleum = | 3,001 | 7 | ||||||
Allis Chalmers Energy = 6 | 2,052 | 14 | ||||||
Alon USA Energy 6 | 792 | 7 | ||||||
American Oil & Gas = | 2,622 | 5 | ||||||
APCO Argentina | 276 | 8 | ||||||
Approach Resources = | 658 | 7 | ||||||
Arena Resources = 6 | 2,788 | 85 | ||||||
Arlington Tankers | 416 | 4 | ||||||
Atlas America | 2,542 | 58 | ||||||
ATP Oil & Gas = | 2,035 | 24 | ||||||
Aventine Renewable Energy = 6 | 2,082 | 4 | ||||||
Basic Energy Services = 6 | 2,985 | 41 | ||||||
Berry Petroleum, Class A 6 | 3,126 | 73 | ||||||
Bill Barrett = 6 | 2,683 | 55 | ||||||
BMB Munai = 6 | 2,668 | 7 | ||||||
Bolt Technology = | 616 | 5 | ||||||
BPZ Energy = 6 | 4,395 | 43 | ||||||
Brigham Exploration = 6 | 3,708 | 29 | ||||||
Bristow Group = 6 | 1,783 | 44 | ||||||
Bronco Drilling = | 1,754 | 14 | ||||||
Cal Dive International = | 3,238 | 28 | ||||||
Callon Petroleum = | 1,634 | 17 | ||||||
Cano Petroleum = | 4,971 | 3 | ||||||
Carbo Ceramics 6 | 1,449 | 63 | ||||||
Carrizo Oil & Gas = 6 | 2,001 | 47 | ||||||
Cheniere Energy = 6 | 3,577 | 13 | ||||||
Clayton Williams Energy = | 400 | 19 | ||||||
Clean Energy Fuels = | 1,576 | 12 | ||||||
Complete Production Services = 6 | 3,516 | 44 |
The accompanying notes are an integral part of the financial statements.
26 First American Funds 2008 Annual Report
Table of Contents
Small Cap Index Fund (continued) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Comstock Resources = 6 | 3,356 | $ | 166 | |||||
Concho Resources = 6 | 3,997 | 85 | ||||||
Contango Oil & Gas Company = | 962 | 53 | ||||||
Crosstex Energy | 2,909 | 30 | ||||||
CVR Energy = | 1,644 | 7 | ||||||
Dawson Geophysical = | 607 | 15 | ||||||
Delek US Holdings | 959 | 5 | ||||||
Delta Petroleum = 6 | 4,551 | 43 | ||||||
DHT Maritime 6 | 2,620 | 14 | ||||||
Double Eagle Petroleum = | 583 | 5 | ||||||
Dril-Quip = | 2,211 | 55 | ||||||
Endeavour International = | 8,129 | 6 | ||||||
Energy Partners = | 2,281 | 10 | ||||||
Energy XXI (Bermuda) | 8,835 | 17 | ||||||
Evergreen Energy = 6 | 6,122 | 2 | ||||||
EXCO Resources = 6 | 11,002 | 101 | ||||||
FX Energy = | 2,970 | 14 | ||||||
Gasco Energy = | 6,906 | 6 | ||||||
General Maritime | 1,959 | 30 | ||||||
GeoGlobal Resources = 6 | 2,798 | 5 | ||||||
Geokinetics = | 470 | 3 | ||||||
Geomet = | 1,182 | 3 | ||||||
Georesources = | 447 | 7 | ||||||
GMX Resources = 6 | 1,228 | 46 | ||||||
Golar LNG | 2,418 | 17 | ||||||
Goodrich Petroleum = | 1,662 | 46 | ||||||
Gran Tierra Energy = 6 | 7,639 | 19 | ||||||
Greenhunter Energy = 6 | 307 | 3 | ||||||
Grey Wolf = 6 | 13,835 | 89 | ||||||
Gulf Island Fabrication 6 | 870 | 17 | ||||||
GulfMark Offshore = 6 | 1,662 | 61 | ||||||
Gulfport Energy = | 1,875 | 13 | ||||||
Harvest Natural Resources = | 2,602 | 22 | ||||||
Hornbeck Offshore Services = 6 | 1,707 | 41 | ||||||
Houston American Energy 6 | 1,066 | 4 | ||||||
ICO = | 1,980 | 9 | ||||||
International Coal Group = 6 | 9,373 | 44 | ||||||
Ion Geophysical = | 6,194 | 41 | ||||||
James River Coal = | 1,983 | 38 | ||||||
Kayne Anderson Energy | 681 | 10 | ||||||
Knightsbridge Tankers | 1,181 | 21 | ||||||
Lufkin Industries 6 | 1,117 | 58 | ||||||
Matrix Service = 6 | 1,882 | 23 | ||||||
McMoRan Exploration = 6 | 4,224 | 60 | ||||||
Meridian Resource = | 6,277 | 7 | ||||||
Mitcham Industries = | 701 | 4 | ||||||
Natco Group = 6 | 1,430 | 30 | ||||||
National Coal = 6 | 1,892 | 8 | ||||||
Natural Gas Services Group = | 865 | 11 | ||||||
Newpark Resources = | 6,582 | 38 | ||||||
NGP Capital Resources 6 | 1,594 | 19 | ||||||
Northern Oil & Gas = 6 | 1,402 | 8 | ||||||
Oilsands Quest = 6 | 12,940 | 21 | ||||||
Pacific Ethanol = 6 | 3,162 | 3 | ||||||
Panhandle Oil And Gas | 524 | 13 | ||||||
Parallel Petroleum = | 2,994 | 12 | ||||||
Parker Drilling = | 8,173 | 42 | ||||||
Penn Virginia 6 | 3,065 | 114 | ||||||
Petroleum Development = 6 | 1,075 | 22 | ||||||
PetroQuest Energy = | 3,444 | 34 | ||||||
PHI = | 947 | 20 | ||||||
Pioneer Drilling = 6 | 3,648 | 28 | ||||||
PrimeEnergy = | 67 | 4 | ||||||
Quest Resource = | 2,031 | 1 | ||||||
RAM Energy Resources = 6 | 2,577 | 3 | ||||||
Rentech = 6 | 12,145 | 9 | ||||||
Resource America, Class A | 938 | 5 | ||||||
Rex Energy = | 1,228 | 8 | ||||||
Rosetta Resources = 6 | 3,791 | 40 | ||||||
RPC | 2,370 | 25 | ||||||
Ship Finance International | 2,976 | 41 | ||||||
Stone Energy = | 2,314 | 70 | ||||||
SulphCo = 6 | 3,853 | 8 | ||||||
Superior Well Services = | 1,193 | 20 | ||||||
Swift Energy = 6 | 2,237 | 72 | ||||||
T-3 Energy Services = 6 | 914 | 22 | ||||||
Teekay Tankers, Class A 6 | 965 | 12 | ||||||
Toreador Resources = 6 | 1,239 | 9 | ||||||
Tri Valley = 6 | 1,603 | 8 | ||||||
Trico Marine Service = 6 | 777 | 7 | ||||||
TXCO Resources = 6 | 2,535 | 13 | ||||||
Union Drilling = | 1,004 | 5 | ||||||
Vaalco Energy = | 4,626 | 24 | ||||||
Venoco = | 1,484 | 6 | ||||||
VeraSun Energy = 6 | 7,561 | 4 | ||||||
Warren Resources = | 4,295 | 23 | ||||||
Western Refining | 2,135 | 14 | ||||||
Westmoreland Coal = | 680 | 7 | ||||||
Willbros Group = | 2,846 | 44 | ||||||
World Fuel Services | 2,118 | 45 | ||||||
3,127 | ||||||||
Financials – 20.8% | ||||||||
1st Source | 1,092 | 23 | ||||||
Abington Bancorp | 1,748 | 18 | ||||||
Acadia Realty Trust – REIT | 2,239 | 40 | ||||||
Advance America Cash Advance Centers | 3,222 | 9 | ||||||
Advanta, Class B | 2,737 | 12 | ||||||
Agree Realty – REIT | 571 | 11 | ||||||
Alexander’s – REIT = 6 | 167 | 58 | ||||||
Ambac Financial Group 6 | 21,138 | 57 | ||||||
AmCOMP = | 920 | 11 | ||||||
AMCORE Financial | 1,761 | 8 | ||||||
American Campus Communities – REIT 6 | 2,850 | 74 | ||||||
American Capital Agency – REIT 6 | 714 | 13 | ||||||
American Equity Investment Life Holding 6 | 4,405 | 20 | ||||||
American Physicians Capital 6 | 647 | 26 | ||||||
American Safety Insurance Holdings = | 759 | 8 | ||||||
Ameris Bancorp | 906 | 10 | ||||||
Amerisafe = 6 | 1,303 | 22 | ||||||
Ames National 6 | 460 | 12 | ||||||
Ampal-American Israel, Class A = | 1,441 | 3 | ||||||
Amtrust Financial Services | 1,154 | 11 | ||||||
Anchor Bancorp | 1,490 | 9 | ||||||
Anthracite Capital – REIT 6 | 4,613 | 20 | ||||||
Anworth Mortgage Asset – REIT | 5,897 | 34 | ||||||
Apollo Investment 6 | 10,418 | 137 | ||||||
Arbor Realty Trust – REIT 6 | 1,014 | 4 | ||||||
Ares Capital 6 | 7,159 | 56 | ||||||
Argo Group International Holdings = 6 | 2,250 | 72 | ||||||
Arrow Financial | 660 | 17 | ||||||
Ashford Hospitality Trust – REIT | 8,560 | 14 | ||||||
Aspen Insurance Holdings 6 | 6,071 | 139 | ||||||
Associated Estates Realty – REIT | 1,036 | 8 | ||||||
Assured Guaranty | 4,230 | 48 | ||||||
Baldwin & Lyons, Class B | 550 | 10 | ||||||
BancFirst | 539 | 27 | ||||||
Banco Latinoamericano de Exportaciones | 1,861 | 20 | ||||||
BancTrust Financial Group 6 | 1,253 | 16 | ||||||
Bank Mutual 6 | 3,874 | 45 | ||||||
Bank of the Ozarks 6 | 901 | 27 | ||||||
BankFinancial | 1,176 | 14 |
First American Funds 2008 Annual Report 27
Table of Contents
Schedule of Investments October 31, 2008, all dollars are rounded to thousands (000)
Small Cap Index Fund (continued) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Banner | 1,028 | $ | 13 | |||||
Beneficial Mutual Bancorp = | 2,341 | 28 | ||||||
Berkshire Hills Bancorp | 767 | 20 | ||||||
BGC Partners, Class A | 2,475 | 10 | ||||||
BioMed Realty Trust – REIT | 5,190 | 73 | ||||||
Blackrock Kelso Capital 6 | 929 | 10 | ||||||
Boston Private Financial Holdings 6 | 4,022 | 36 | ||||||
Broadpoint Securities = | 1,727 | 5 | ||||||
Brookline Bancorp | 4,351 | 51 | ||||||
Bryn Mawr Bank | 491 | 10 | ||||||
Calamos Asset Management | 1,764 | 14 | ||||||
Camden National | 550 | 16 | ||||||
Capital City Bank Group 6 | 1,147 | 32 | ||||||
Capital Southwest | 231 | 24 | ||||||
Capital Trust – REIT 6 | 1,192 | 9 | ||||||
Capitol Bancorp 6 | 1,110 | 11 | ||||||
CapLease – REIT 6 | 2,222 | 15 | ||||||
Capstead Mortgage – REIT 6 | 3,832 | 39 | ||||||
Cardinal Financial 6 | 1,727 | 11 | ||||||
Cardtronics = | 859 | 5 | ||||||
Care Investment Trust – REIT | 949 | 11 | ||||||
Cascade Bancorp 6 | 1,769 | 17 | ||||||
Cash America International 6 | 2,134 | 75 | ||||||
Castlepoint Holdings | 2,392 | 22 | ||||||
Cathay General Bancorp 6 | 3,607 | 88 | ||||||
Cedar Shopping Centers – REIT | 3,171 | 30 | ||||||
Centerstate Banks of Florida | 660 | 12 | ||||||
Central Pacific Financial 6 | 2,122 | 33 | ||||||
Chemical Financial | 1,723 | 45 | ||||||
Chimera Investment – REIT 6 | 2,440 | 7 | ||||||
Citizens & Northern 6 | 641 | 15 | ||||||
Citizens Banking 6 | 7,607 | 22 | ||||||
Citizens = 6 | 2,670 | 23 | ||||||
City Bank 6 | 984 | 10 | ||||||
City Holdings | 1,384 | 58 | ||||||
Clifton Savings Bancorp 6 | 1,222 | 13 | ||||||
CNA Surety = | 1,289 | 18 | ||||||
CoBiz 6 | 1,442 | 17 | ||||||
Cogdell Spencer – REIT | 754 | 9 | ||||||
Cohen & Steers 6 | 1,228 | 22 | ||||||
Colonial BancGroup 6 | 14,785 | 60 | ||||||
Colonial Properties Trust – REIT 6 | 3,390 | 36 | ||||||
Columbia Banking System | 1,333 | 21 | ||||||
Community Bank System | 2,554 | 64 | ||||||
Community Trust Bancorp | 1,051 | 35 | ||||||
Compass Diversified Trust | 1,756 | 21 | ||||||
CompuCredit = 6 | 1,406 | 4 | ||||||
Consolidated-Tomoka Land 6 | 423 | 16 | ||||||
Corporate Office Properties Trust – REIT 6 | 2,824 | 88 | ||||||
Corus Bankshares 6 | 2,682 | 6 | ||||||
Cousins Properties – REIT 6 | 3,367 | 49 | ||||||
Crawford & Company = 6 | 1,725 | 25 | ||||||
Credit Acceptance = 6 | 438 | 7 | ||||||
CVB Financial 6 | 4,874 | 62 | ||||||
Danvers Bancorp 6 | 1,275 | 16 | ||||||
DCT Industrial Trust – REIT | 12,410 | 61 | ||||||
Delphi Financial Group, Class A 6 | 2,987 | 47 | ||||||
Diamond Hill Investment Group = | 147 | 9 | ||||||
DiamondRock Hospitality – REIT | 6,776 | 35 | ||||||
Dime Community Bancshares | 1,714 | 29 | ||||||
Dollar Financial = 6 | 1,732 | 20 | ||||||
Donegal Group, Class A 6 | 1,291 | 21 | ||||||
Doral Financial = 6 | 389 | 4 | ||||||
Downey Financial 6 | 1,204 | 2 | ||||||
DuPont Fabros Technology – REIT | 1,148 | 7 | ||||||
East West Bancorp 6 | 4,675 | 81 | ||||||
EastGroup Properties – REIT | 1,634 | 55 | ||||||
Education Realty Trust – REIT | 1,971 | 8 | ||||||
eHealth = | 1,836 | 23 | ||||||
EMC Insurance Group | 450 | 11 | ||||||
Employers Holdings | 3,642 | 46 | ||||||
Encore Bancshares = | 460 | 8 | ||||||
Encore Capital Group = | 1,132 | 11 | ||||||
Enstar Group = 6 | 485 | 37 | ||||||
Enterprise Financial Services 6 | 746 | 14 | ||||||
Entertainment Properties Trust – REIT 6 | 2,189 | 82 | ||||||
Epoch Holdings | 730 | 6 | ||||||
Equity Lifestyle Properties – REIT 6 | 1,712 | 72 | ||||||
Equity One – REIT 6 | 3,212 | 56 | ||||||
Essa Bancorp | 1,214 | 17 | ||||||
Evercore Partners 6 | 721 | 9 | ||||||
Extra Space Storage – REIT 6 | 5,679 | 65 | ||||||
Ezcorp = | 2,851 | 45 | ||||||
F.N.B. 6 | 5,955 | 78 | ||||||
Farmers Capital Bank | 443 | 9 | ||||||
FBL Financial Group, Class A | 916 | 16 | ||||||
FBR Capital Markets = 6 | 2,112 | 12 | ||||||
FCStone Group = 6 | 1,662 | 10 | ||||||
Federal Agricultural Mortgage, Class C | 746 | 4 | ||||||
FelCor Lodging Trust – REIT 6 | 4,551 | 14 | ||||||
Financial Federal | 1,891 | 44 | ||||||
Financial Institutions | 784 | 13 | ||||||
First Acceptance = | 1,440 | 4 | ||||||
First Bancorp – North Carolina 6 | 966 | 17 | ||||||
First Bancorp of Puerto Rico 6 | 5,209 | 53 | ||||||
First Bancorp | 619 | 11 | ||||||
First Busey 6 | 1,816 | 34 | ||||||
First Cash Financial Services = 6 | 1,445 | 22 | ||||||
First Commonwealth Financial – Pennsylvania 6 | 5,095 | 56 | ||||||
First Community Bancshares – Nevada | 765 | 24 | ||||||
First Financial – Indiana | 904 | 38 | ||||||
First Financial Bancorp – Ohio 6 | 2,605 | 35 | ||||||
First Financial Bankshares 6 | 1,545 | 84 | ||||||
First Financial Holdings | 1,054 | 23 | ||||||
First Financial Northwest | 1,634 | 13 | ||||||
First Industrial Realty Trust – REIT 6 | 3,127 | 32 | ||||||
First Marblehead 6 | 4,941 | 8 | ||||||
First Merchants | 1,254 | 28 | ||||||
First Mercury Financial = | 847 | 9 | ||||||
First Midwest Bancorp | 3,578 | 79 | ||||||
First Niagara Financial Group | 8,036 | 127 | ||||||
First Place Financial | 1,254 | 9 | ||||||
First Potomac Realty Trust – REIT 6 | 1,507 | 19 | ||||||
First South Bancorp | 581 | 8 | ||||||
FirstBank, fractional shares = ⊡ | 0.29 | — | ||||||
FirstFed Financial = 6 | 1,008 | 9 | ||||||
FirstMerit | 5,958 | 139 | ||||||
Flagstar Bancorp 6 | 3,832 | 7 | ||||||
Flagstone Reinsurance Holdings | 1,004 | 11 | ||||||
Flushing Financial 6 | 1,930 | 30 | ||||||
Forestar Real Estate Group = | 2,624 | 23 | ||||||
Fox Chase Bancorp = | 452 | 5 | ||||||
FPIC Insurance Group = | 667 | 30 | ||||||
Franklin Street Properties – REIT | 4,352 | 51 | ||||||
Friedman Billings Ramsey Group – REIT = | 11,028 | 7 | ||||||
Frontier Financial 6 | 3,443 | 23 | ||||||
FX Real Estate & Entertainment = | 705 | — | ||||||
GAMCO Investors | 541 | 21 | ||||||
Getty Realty – REIT | 1,760 | 34 | ||||||
GFI Group 6 | 5,525 | 18 | ||||||
Glacier Bancorp 6 | 3,952 | 80 | ||||||
Gladstone Capital | 1,544 | 18 |
The accompanying notes are an integral part of the financial statements.
28 First American Funds 2008 Annual Report
Table of Contents
Small Cap Index Fund (continued) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Gladstone Investment | 1,578 | $ | 9 | |||||
Glimcher Realty Trust – REIT 6 | 2,748 | 14 | ||||||
Gramercy Capital – REIT | 2,976 | 8 | ||||||
Greene County Bancshares 6 | 929 | 18 | ||||||
Greenhill & Company 6 | 1,385 | 91 | ||||||
Greenlight Capital = 6 | 2,123 | 27 | ||||||
Grubb & Ellis | 2,662 | 4 | ||||||
Guaranty Bancorp = | 3,790 | 16 | ||||||
Guaranty Financial Group = 6 | 2,662 | 5 | ||||||
Hallmark Financial Services = | 433 | 3 | ||||||
Hancock Holding 6 | 1,846 | 82 | ||||||
Hanmi Financial 6 | 3,239 | 13 | ||||||
Harleysville Group | 1,040 | 33 | ||||||
Harleysville National | 2,310 | 32 | ||||||
Harris & Harris Group = | 1,667 | 8 | ||||||
Hatteras Financial – REIT | 821 | 18 | ||||||
Healthcare Realty Trust – REIT 6 | 3,922 | 100 | ||||||
Heartland Financial USA | 1,121 | 27 | ||||||
Hercules Technology Growth Capital | 2,349 | 20 | ||||||
Heritage Commerce | 1,036 | 13 | ||||||
Hersha Hospitality Trust – REIT | 3,028 | 13 | ||||||
Highwoods Properties – REIT | 4,002 | 99 | ||||||
Hilltop Holdings = | 3,446 | 32 | ||||||
Home Bancshares | 947 | 25 | ||||||
Home Properties – REIT 6 | 2,556 | 103 | ||||||
Horace Mann Educators | 3,646 | 29 | ||||||
IBERIABANK | 833 | 42 | ||||||
Independence Holdings | 507 | 3 | ||||||
Independent Bank | 1,157 | 33 | ||||||
Infinity Property & Casualty | 1,202 | 48 | ||||||
Inland Real Estate – REIT 6 | 4,007 | 46 | ||||||
Integra Bank | 1,495 | 9 | ||||||
Interactive Brokers Group = 6 | 2,974 | 64 | ||||||
International Assets Holding = | 301 | 5 | ||||||
International Bancshares 6 | 3,690 | 96 | ||||||
Investors Bancorp = 6 | 2,843 | 41 | ||||||
Investors Real Estate Trust – REIT 6 | 3,398 | 34 | ||||||
IPC Holdings 6 | 3,902 | 108 | ||||||
JER Investment Trust – REIT 6 | 1,665 | 5 | ||||||
Kansas City Life Insurance | 327 | 16 | ||||||
KBW = 6 | 2,023 | 59 | ||||||
Kearny Financial | 1,474 | 17 | ||||||
Kite Realty Group Trust – REIT | 2,157 | 13 | ||||||
Knight Capital Group, Class A = | 7,102 | 103 | ||||||
Kohlberg Capital | 1,238 | 7 | ||||||
LaBranche = | 4,010 | 25 | ||||||
Ladenburg Thalman Financial Services = 6 | 7,472 | 9 | ||||||
Lakeland Bancorp 6 | 1,778 | 20 | ||||||
Lakeland Financial | 897 | 20 | ||||||
LandAmerica Financial Group 6 | 1,087 | 11 | ||||||
LaSalle Hotel Properties – REIT 6 | 2,895 | 41 | ||||||
Lexington Corporate Properties Trust – REIT 6 | 5,078 | 41 | ||||||
Life Partners Holdings | 424 | 17 | ||||||
LTC Properties – REIT | 1,445 | 35 | ||||||
Maguire Properties – REIT 6 | 2,929 | 10 | ||||||
Maiden Holdings 6 | 3,380 | 15 | ||||||
MainSource Financial Group | 1,361 | 24 | ||||||
MarketAxess Holdings = 6 | 2,237 | 13 | ||||||
Max Capital Hamilton | 4,182 | 67 | ||||||
MB Financial 6 | 2,484 | 74 | ||||||
MCG Capital 6 | 5,407 | 4 | ||||||
Meadowbrook Insurance Group | 4,103 | 22 | ||||||
Medallion Financial | 1,062 | 9 | ||||||
Medical Properties Trust – REIT 6 | 4,862 | 36 | ||||||
Meridian Interstat Bancorp = | 761 | 7 | ||||||
Meruelo Maddux Properties = | 3,137 | 3 | ||||||
MFA Mortgage Investments – REIT | 14,517 | 80 | ||||||
Mid-America Apartment Communities – REIT | 1,899 | 67 | ||||||
Midwest Banc Holdings | 1,607 | 5 | ||||||
Mission West Properties – REIT | 1,231 | 11 | ||||||
Montpelier Holdings 6 | 7,019 | 100 | ||||||
Move = | 9,457 | 16 | ||||||
MVC Capital 6 | 1,791 | 22 | ||||||
Nara Bancorp | 1,612 | 18 | ||||||
NASB Financial 6 | 347 | 10 | ||||||
National Financial Partners 6 | 2,914 | 19 | ||||||
National Health Investors – REIT | 1,598 | 48 | ||||||
National Interstate | 372 | 7 | ||||||
National Penn Bancshares, fractional shares = ⊡ | 0.50 | — | ||||||
National Penn Bancshares 6 | 5,937 | 101 | ||||||
National Retail Properties – REIT 6 | 5,252 | 94 | ||||||
National Western Life Insurance, Class A | 153 | 29 | ||||||
Navigators Group = | 878 | 44 | ||||||
NBT Bancorp | 2,367 | 66 | ||||||
Nelnet, Class A 6 | 1,222 | 18 | ||||||
NewAlliance Bancshares | 8,222 | 113 | ||||||
Newcastle Investment – REIT 6 | 3,774 | 15 | ||||||
Newstar Financial = | 1,711 | 9 | ||||||
Northfield Bancorp = | 1,407 | 17 | ||||||
NorthStar Realty Finance – REIT 6 | 4,349 | 25 | ||||||
Northwest Bancorp 6 | 1,420 | 38 | ||||||
NYMAGIC | 305 | 5 | ||||||
OceanFirst Financial | 632 | 10 | ||||||
Ocwen Financial = 6 | 2,817 | 19 | ||||||
Odyssey RE Holdings | 1,946 | 77 | ||||||
Old National Bancorp 6 | 4,879 | 92 | ||||||
Old Second Bancorp 6 | 995 | 13 | ||||||
OMEGA Healthcare Investors – REIT 6 | 5,338 | 80 | ||||||
optionsXpress Holdings | 3,102 | 55 | ||||||
Oriental Financial Group | 1,737 | 28 | ||||||
Oritani Financial = | 928 | 16 | ||||||
Pacific Capital Bancorp 6 | 3,398 | 67 | ||||||
Pacific Continental | 763 | 11 | ||||||
PacWest Bancorp 6 | 1,747 | 44 | ||||||
Park National 6 | 832 | 61 | ||||||
Parkway Properties – REIT | 1,228 | 21 | ||||||
Patriot Capital Funding | 1,498 | 7 | ||||||
Peapack-Gladstone Financial | 594 | 19 | ||||||
PennantPark Investment | 1,365 | 6 | ||||||
Pennsylvania Commerce Bancorp = | 371 | 11 | ||||||
Pennsylvania Real Estate Investment Trust – REIT 6 | 2,203 | 28 | ||||||
Penson Worldwide = | 1,239 | 9 | ||||||
Peoples Bancorp – Ohio | 807 | 15 | ||||||
Phoenix Companies | 8,431 | 55 | ||||||
Pinnacle Financial Partners = | 1,616 | 47 | ||||||
Piper Jaffray Companies = | 1,416 | 56 | ||||||
Platinum Underwriters Holdings | 3,553 | 113 | ||||||
PMA Capital = | 2,454 | 11 | ||||||
PMI Group 6 | 5,986 | 15 | ||||||
Post Properties – REIT | 3,232 | 72 | ||||||
Potlatch – REIT 6 | 2,911 | 97 | ||||||
PremierWest Bancorp 6 | 1,385 | 11 | ||||||
Presidential Life | 1,469 | 14 | ||||||
Primus Guaranty = 6 | 1,696 | 1 | ||||||
PrivateBancorp 6 | 1,586 | 57 | ||||||
ProAssurance = 6 | 2,133 | 117 | ||||||
Prospect Capital 6 | 1,875 | 24 | ||||||
Prosperity Bancshares 6 | 2,803 | 93 | ||||||
Provident Bankshares 6 | 2,443 | 26 | ||||||
Provident Financial Services 6 | 4,183 | 61 |
First American Funds 2008 Annual Report 29
Table of Contents
Schedule of Investments October 31, 2008, all dollars are rounded to thousands (000)
Small Cap Index Fund (continued) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Provident New York Bancorp | 3,080 | $ | 37 | |||||
PS Business Parks – REIT | 1,199 | 54 | ||||||
Pzena Investment Management | 451 | 2 | ||||||
Radian Group 6 | 5,751 | 21 | ||||||
RAIT Financial Trust – REIT 6 | 4,540 | 17 | ||||||
Ramco-Gershenson Properties Trust – REIT | 1,645 | 22 | ||||||
Realty Income – REIT 6 | 7,466 | 173 | ||||||
Redwood Trust – REIT 6 | 2,349 | 36 | ||||||
Renasant | 1,498 | 31 | ||||||
Republic Bancorp – Kentucky, Class A | 764 | 18 | ||||||
Resource Capital – REIT | 1,478 | 7 | ||||||
Riskmetrics Group = | 1,574 | 24 | ||||||
RLI | 1,442 | 83 | ||||||
Rockville Financial 6 | 971 | 13 | ||||||
Roma Financial | 627 | 9 | ||||||
S&T Bancorp 6 | 1,703 | 58 | ||||||
Safety Insurance Group | 1,045 | 40 | ||||||
Sanders Morris Harris Group | 1,434 | 11 | ||||||
Sandy Spring Bancorp 6 | 1,195 | 26 | ||||||
Santander Bancorp | 334 | 3 | ||||||
Saul Centers – REIT | 835 | 31 | ||||||
SCBT Financial 6 | 721 | 24 | ||||||
SeaBright Insurance Holdings = | 1,563 | 16 | ||||||
Seacoast Banking 6 | 1,295 | 12 | ||||||
Selective Insurance Group 6 | 4,103 | 97 | ||||||
Senior Housing Properties Trust – REIT 6 | 8,437 | 162 | ||||||
Shore Bancshares | 601 | 15 | ||||||
Sierra Bancorp 6 | 538 | 11 | ||||||
Signature Bank = 6 | 2,283 | 74 | ||||||
Simmons First National, Class A | 962 | 30 | ||||||
Smithtown Bancorp | 704 | 14 | ||||||
South Financial Group 6 | 5,362 | 31 | ||||||
Southside Bancshares 6 | 956 | 23 | ||||||
Southwest Bancorp – Oklahoma | 1,168 | 17 | ||||||
Sovran Self Storage – REIT | 1,398 | 45 | ||||||
State Auto Financial | 1,276 | 34 | ||||||
State Bancorp | 1,024 | 13 | ||||||
StellarOne | 1,615 | 27 | ||||||
Sterling Bancorp | 1,615 | 25 | ||||||
Sterling Bancshares 6 | 5,158 | 41 | ||||||
Sterling Financial – Washington 6 | 3,824 | 32 | ||||||
Stewart Information Services | 1,490 | 25 | ||||||
Stifel Financial = | 1,754 | 77 | ||||||
Strategic Hotels & Resorts – REIT | 5,451 | 27 | ||||||
Stratus Properties = | 443 | 11 | ||||||
Suffolk Bancorp | 794 | 26 | ||||||
Sun Bancorp – New Jersey = | 1,288 | 13 | ||||||
Sun Communities – REIT 6 | 1,748 | 26 | ||||||
Sunstone Hotel Investors – REIT | 3,681 | 24 | ||||||
Susquehanna Bancshares 6 | 6,221 | 96 | ||||||
SVB Financial = 6 | 2,364 | 122 | ||||||
SWS Group | 1,820 | 34 | ||||||
SY Bancorp | 1,072 | 30 | ||||||
Tanger Factory Outlet Centers – REIT 6 | 2,691 | 97 | ||||||
Tejon Ranch = | 827 | 24 | ||||||
Texas Capital Bancshares = 6 | 1,931 | 34 | ||||||
Thomas Properties Group | 1,639 | 11 | ||||||
Thomas Weisel Partners Group = 6 | 1,512 | 9 | ||||||
Tompkins Trustco | 446 | 22 | ||||||
Tower Group 6 | 1,607 | 34 | ||||||
Townebank Portsmouth 6 | 1,485 | 32 | ||||||
TradeStation Group = | 2,326 | 18 | ||||||
TriCo Bancshares | 1,308 | 28 | ||||||
TrustCo Bank Corporation of New York 6 | 5,134 | 62 | ||||||
Trustmark | 3,649 | 75 | ||||||
UCBH Holdings 6 | 8,141 | 43 | ||||||
UMB Financial 6 | 2,222 | 101 | ||||||
Umpqua Holdings 6 | 4,402 | 75 | ||||||
Union Bankshares | 1,167 | 28 | ||||||
United American Indemnity = | 1,464 | 18 | ||||||
United Bankshares 6 | 2,774 | 88 | ||||||
United Capital = | 131 | 3 | ||||||
United Community Banks 6 | 2,896 | 38 | ||||||
United Community Financial | 1,817 | 9 | ||||||
United Financial Bancorp | 1,271 | 18 | ||||||
United Fire & Casualty | 1,628 | 38 | ||||||
United Security Bancshares 6 | 577 | 8 | ||||||
Universal American Financial = | 2,851 | 25 | ||||||
Universal Health Realty Income Trust – REIT | 1,196 | 42 | ||||||
Univest Corporation of Pennsylvania 6 | 1,071 | 33 | ||||||
Urstadt Biddle Properties, Class A – REIT | 2,213 | 36 | ||||||
US Global Investors | 916 | 7 | ||||||
U-Store-It Trust – REIT 6 | 3,628 | 25 | ||||||
Validus Holdings | 4,654 | 83 | ||||||
Viewpoint Financial | 800 | 14 | ||||||
W Holding Company 6 | 7,958 | 5 | ||||||
Washington Real Estate Investment Trust – REIT 6 | 3,637 | 109 | ||||||
Washington Trust Bancorp | 774 | 17 | ||||||
Waterstone Financial = | 509 | 4 | ||||||
WesBanco | 1,921 | 52 | ||||||
West Bancorp | 1,245 | 16 | ||||||
West Coast Bancorp – Oregon | 1,397 | 12 | ||||||
Westamerica Bancorporation 6 | 2,073 | 119 | ||||||
Western Alliance Bancorp = 6 | 1,406 | 21 | ||||||
Westfield Financial | 2,271 | 24 | ||||||
Westwood Holdings | 384 | 15 | ||||||
Wilshire Bancorp | 1,643 | 18 | ||||||
Winthrop Realty Trust – REIT 6 | 3,125 | 8 | ||||||
Wintrust Financial 6 | 1,671 | 43 | ||||||
World Acceptance = 6 | 1,192 | 22 | ||||||
WSFS Financial | 479 | 23 | ||||||
Yadkin Valley Financial | 820 | 12 | ||||||
Zenith National Insurance 6 | 2,736 | 90 | ||||||
13,360 | ||||||||
Healthcare – 13.3% | ||||||||
Abaxis = | 1,568 | 24 | ||||||
Abiomed = | 2,176 | 32 | ||||||
ACADIA Pharmaceuticals = 6 | 2,388 | 5 | ||||||
Accuray = 6 | 2,659 | 17 | ||||||
Acorda Therapeutics = | 2,725 | 56 | ||||||
Acura Pharmaceuticals = 6 | 583 | 3 | ||||||
Adolor = | 3,291 | 10 | ||||||
Affymax = | 749 | 10 | ||||||
Affymetrix = | 5,085 | 19 | ||||||
Air Methods = | 832 | 14 | ||||||
Akorn = 6 | 4,076 | 13 | ||||||
Albany Molecular Research = | 1,825 | 23 | ||||||
Alexion Pharmaceuticals = 6 | 5,628 | 229 | ||||||
Alexza Pharmaceuticals = | 1,757 | 5 | ||||||
Align Technology = | 4,540 | 31 | ||||||
Alkermes = | 7,041 | 70 | ||||||
Alliance Imaging = | 1,869 | 15 | ||||||
Allos Therapeutics = | 3,903 | 29 | ||||||
Allscripts Healthcare Solutions 6 | 4,179 | 27 | ||||||
Almost Family = | 455 | 22 | ||||||
Alnylam Pharmaceuticals = 6 | 2,605 | 60 | ||||||
Alpharma, Class A = | 3,000 | 94 | ||||||
Alphatec Holdings = | 1,782 | 7 | ||||||
AMAG Pharmaceuticals = | 1,244 | 38 | ||||||
Amedisys = 6 | 1,952 | 110 |
The accompanying notes are an integral part of the financial statements.
30 First American Funds 2008 Annual Report
Table of Contents
Small Cap Index Fund (continued) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
American Medical Systems = 6 | 5,361 | $ | 58 | |||||
AMERIGROUP = 6 | 3,945 | 99 | ||||||
Amicus Therapeutics = | 317 | 3 | ||||||
AMN Healthcare Services = | 2,528 | 23 | ||||||
Amsurg, Class A = | 2,068 | 52 | ||||||
Analogic | 965 | 43 | ||||||
AngioDynamics = | 1,729 | 22 | ||||||
Ardea Biosciences = | 892 | 9 | ||||||
Arena Pharmaceuticals = 6 | 5,280 | 19 | ||||||
Ariad Pharmaceuticals = | 5,117 | 10 | ||||||
ArQule = | 2,970 | 8 | ||||||
Array BioPharma = | 3,439 | 17 | ||||||
ArthroCare = 6 | 2,009 | 42 | ||||||
Assisted Living Concept = | 4,140 | 21 | ||||||
Athenahealth = 6 | 1,521 | 47 | ||||||
Atrion | 107 | 11 | ||||||
Auxilium Pharmaceuticals = 6 | 3,032 | 60 | ||||||
Biodel = | 767 | 2 | ||||||
BioForm Medical = 6 | 1,563 | 3 | ||||||
Biomimetic Therapeutics = | 948 | 8 | ||||||
Bio-Rad Laboratories, Class A = | 1,395 | 119 | ||||||
Bio-Reference Laboratories = | 923 | 23 | ||||||
BMP Sunstone = 6 | 2,066 | 14 | ||||||
Bruker BioSciences = | 4,212 | 17 | ||||||
Cadence Pharmaceuticals = 6 | 1,440 | 9 | ||||||
Caliper Life Sciences = | 3,416 | 5 | ||||||
Cantel Medical = | 814 | 8 | ||||||
Capital Senior Living = | 1,767 | 8 | ||||||
Caraco Pharmaceutical Laboratories = | 1,095 | 11 | ||||||
Cardiac Science = | 1,390 | 13 | ||||||
Cardionet = | 321 | 8 | ||||||
Catalyst Health Solutions = 6 | 2,356 | 40 | ||||||
Celera = 6 | 5,787 | 65 | ||||||
Cell Genesys = 6 | 6,139 | 1 | ||||||
Celldex Therapeutics = 6 | 1,067 | 8 | ||||||
Centene = 6 | 3,198 | 60 | ||||||
Cepheid = 6 | 4,195 | 50 | ||||||
Chemed | 1,769 | 77 | ||||||
Chindex International = | 789 | 7 | ||||||
Clinical Data = 6 | 741 | 8 | ||||||
Columbia Labs = 6 | 3,347 | 5 | ||||||
Computer Programs & Systems | 596 | 17 | ||||||
Conceptus = 6 | 2,159 | 35 | ||||||
CONMED = 6 | 1,936 | 51 | ||||||
Corvel = | 620 | 17 | ||||||
Cougar Biotechnology = 6 | 1,098 | 28 | ||||||
Cross Country Healthcare = | 2,180 | 25 | ||||||
CryoLife = | 1,989 | 27 | ||||||
Cubist Pharmaceuticals = 6 | 4,079 | 104 | ||||||
CV Therapeutics = | 4,475 | 42 | ||||||
Cyberonics = 6 | 1,739 | 22 | ||||||
Cynosure = | 683 | 6 | ||||||
Cypress Bioscience = | 2,683 | 15 | ||||||
Cytokinetics = | 2,451 | 7 | ||||||
Cytori Therapeutics = | 1,424 | 6 | ||||||
Datascope | 922 | 46 | ||||||
Dendreon = 6 | 6,868 | 34 | ||||||
DepoMed = | 3,434 | 7 | ||||||
Dexcom = | 1,875 | 8 | ||||||
Discovery Laboratories = 6 | 7,082 | 13 | ||||||
Durect = 6 | 6,028 | 25 | ||||||
Dyax = | 3,975 | 13 | ||||||
Eclipsys = 6 | 4,006 | 59 | ||||||
Emergency Medical Services = 6 | 639 | 21 | ||||||
Emergent Biosolutions = | 967 | 17 | ||||||
Emeritus = 6 | 1,407 | 16 | ||||||
Ensign Group | 594 | 10 | ||||||
Enzo Biochem = | 2,297 | 13 | ||||||
Enzon = 6 | 2,983 | 15 | ||||||
eResearchTechnology = | 3,166 | 20 | ||||||
ev3 = 6 | 5,179 | 34 | ||||||
Exactech = | 503 | 10 | ||||||
Exelixis = 6 | 7,700 | 26 | ||||||
Five Star Quality Care = | 2,275 | 4 | ||||||
Genomic Health = | 952 | 18 | ||||||
Genoptix = 6 | 594 | 20 | ||||||
Gentiva Health Services = | 1,992 | 54 | ||||||
Geron = | 5,636 | 22 | ||||||
Greatbatch = 6 | 1,632 | 35 | ||||||
GTx = 6 | 1,347 | 19 | ||||||
Haemonetics = | 1,819 | 107 | ||||||
Halozyme Therapeutics = | 4,451 | 21 | ||||||
Hanger Orthopedic Group = | 1,917 | 32 | ||||||
Hansen Medical = 6 | 1,219 | 11 | ||||||
HealthSouth = 6 | 6,483 | 81 | ||||||
Healthspring = | 3,641 | 60 | ||||||
Healthways = | 2,521 | 25 | ||||||
HMS Holdings = | 1,786 | 44 | ||||||
Human Genome Sciences = 6 | 9,982 | 32 | ||||||
ICU Medical = | 880 | 28 | ||||||
Idenix Pharmaceuticals = 6 | 2,157 | 12 | ||||||
Idera Pharmaceuticals = 6 | 1,469 | 14 | ||||||
I-Flow = | 1,701 | 10 | ||||||
Immucor = 6 | 5,130 | 136 | ||||||
ImmunoGen = 6 | 3,738 | 17 | ||||||
Immunomedics = | 4,672 | 7 | ||||||
Incyte = 6 | 5,532 | 23 | ||||||
Indevus Pharmaceuticals = 6 | 5,608 | 15 | ||||||
Inspire Pharmaceuticals = | 3,018 | 11 | ||||||
Insulet = | 1,311 | 7 | ||||||
Integra LifeSciences = 6 | 1,242 | 47 | ||||||
InterMune = | 2,329 | 34 | ||||||
Invacare | 2,320 | 42 | ||||||
inVentiv Health = 6 | 2,436 | 23 | ||||||
IPC The Hospitalist = | 405 | 8 | ||||||
IRIS International = | 1,316 | 15 | ||||||
Isis Pharmaceuticals = 6 | 6,610 | 93 | ||||||
Javelin Pharmaceuticals = | 3,561 | 5 | ||||||
Jazz Pharmaceuticals = 6 | 438 | 1 | ||||||
Kendle International = | 968 | 17 | ||||||
Kensey Nash = | 801 | 20 | ||||||
Kindred Healthcare = 6 | 2,051 | 30 | ||||||
K-V Pharmaceutical, Class A = 6 | 2,604 | 44 | ||||||
Lexicon Pharmaceuticals = | 5,742 | 9 | ||||||
LHC Group = | 1,047 | 37 | ||||||
Life Sciences Research = | 625 | 12 | ||||||
Ligand Pharmaceuticals = | 6,368 | 13 | ||||||
Luminex = | 3,038 | 57 | ||||||
Magellan Health Services = 6 | 2,685 | 99 | ||||||
MannKind = 6 | 3,367 | 13 | ||||||
Map Pharmaceuticals = | 559 | 2 | ||||||
Marshall Edwards = 6 | 1,384 | 2 | ||||||
Martek Biosciences = 6 | 2,378 | 71 | ||||||
Masimo = | 3,395 | 109 | ||||||
Maxygen = | 2,189 | 9 | ||||||
Medarex = | 9,350 | 66 | ||||||
MedAssets = | 1,108 | 16 | ||||||
MedCath = | 1,138 | 18 | ||||||
Medical Action Industries = | 1,107 | 13 | ||||||
Medicines = 6 | 3,764 | 66 | ||||||
Medicis Pharmaceutical, Class A | 4,084 | 58 | ||||||
Medivation = 6 | 1,879 | 35 |
First American Funds 2008 Annual Report 31
Table of Contents
Schedule of Investments October 31, 2008, all dollars are rounded to thousands (000)
Small Cap Index Fund (continued) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Mentor 6 | 2,443 | $ | 41 | |||||
Meridian Bioscience | 2,960 | 73 | ||||||
Merit Medical Systems = | 1,956 | 36 | ||||||
Metabolix = | 1,399 | 13 | ||||||
Micrus Endovascular = | 1,037 | 12 | ||||||
Middlebrook Pharmaceutical = 6 | 2,563 | 3 | ||||||
Mine Safety Appliances 6 | 2,218 | 60 | ||||||
Molecular Insight Pharmaceuticals = | 1,265 | 6 | ||||||
Molina Healthcare = 6 | 1,064 | 24 | ||||||
Momenta Pharmaceuticals = 6 | 1,901 | 17 | ||||||
MWI Veterinary Supply = 6 | 656 | 23 | ||||||
Myriad Genetics = 6 | 3,290 | 208 | ||||||
NABI Biopharmaceuticals = | 4,477 | 18 | ||||||
Nanosphere = | 922 | 5 | ||||||
National Healthcare 6 | 484 | 20 | ||||||
National Research | 127 | 4 | ||||||
Natus Medical = | 1,972 | 30 | ||||||
Nektar Therapeutics = | 6,770 | 37 | ||||||
Neogen = | 1,031 | 30 | ||||||
Neurocrine Biosciences = | 2,560 | 11 | ||||||
Nighthawk Radiology Holdings = | 1,794 | 8 | ||||||
Novavax = | 3,729 | 8 | ||||||
Noven Pharmaceuticals = | 1,743 | 20 | ||||||
NPS Pharmaceuticals = | 3,376 | 24 | ||||||
NuVasive = 6 | 2,619 | 123 | ||||||
NxStage Medical = | 1,398 | 6 | ||||||
Obagi Medical Products = | 1,269 | 11 | ||||||
Odyssey Healthcare = | 2,672 | 26 | ||||||
Omnicell = | 2,382 | 26 | ||||||
Omrix Biopharmaceuticals = | 1,035 | 18 | ||||||
Onyx Pharmaceuticals = | 4,072 | 110 | ||||||
Opko Health = 6 | 3,432 | 5 | ||||||
Optimer Pharmaceuticals = | 1,730 | 7 | ||||||
OraSure Technologies = | 3,432 | 16 | ||||||
Orexigen Therapeutics = | 1,433 | 7 | ||||||
Orthofix International = | 1,252 | 17 | ||||||
Orthovita = | 4,734 | 13 | ||||||
OSI Pharmaceuticals = | 4,188 | 159 | ||||||
Osiris Therapeutics = 6 | 1,081 | 16 | ||||||
Owens & Minor | 3,013 | 130 | ||||||
Pain Therapeutics = | 2,406 | 22 | ||||||
Palomar Medical Technologies = | 1,305 | 15 | ||||||
Par Pharmaceutical Companies = | 2,622 | 26 | ||||||
PAREXEL International = 6 | 4,097 | 43 | ||||||
PDL BioPharma 6 | 8,741 | 85 | ||||||
PharmaNet Development Group = 6 | 1,416 | 2 | ||||||
Pharmasset = 6 | 1,119 | 20 | ||||||
Pharmerica = | 2,175 | 45 | ||||||
POZEN = | 1,905 | 12 | ||||||
Progenics Pharmaceutical = | 1,905 | 19 | ||||||
Protalix Biotherapeutics = | 771 | 1 | ||||||
PSS World Medical = 6 | 4,629 | 84 | ||||||
Psychiatric Solutions = 6 | 4,060 | 135 | ||||||
Questcor Pharmaceuticals = 6 | 3,973 | 31 | ||||||
Quidel = | 2,020 | 32 | ||||||
Radnet = 6 | 1,526 | 5 | ||||||
Regeneron Pharmaceuticals = 6 | 4,571 | 88 | ||||||
RehabCare Group = | 1,322 | 23 | ||||||
Repligen = | 2,221 | 9 | ||||||
Res-Care = | 1,688 | 26 | ||||||
Rexahn Pharmaceuticals = 6 | 2,088 | 2 | ||||||
Rigel Pharmaceuticals = 6 | 2,673 | 23 | ||||||
RTI Biologics = | 3,843 | 12 | ||||||
Salix Pharmaceuticals = 6 | 3,519 | 32 | ||||||
Sangamo BioSciences = 6 | 2,618 | 20 | ||||||
Savient Pharmaceuticals = 6 | 3,973 | 19 | ||||||
Seattle Genetics = 6 | 4,464 | 46 | ||||||
Sequenom = 6 | 4,170 | 75 | ||||||
Sirona Dental Systems = | 1,337 | 21 | ||||||
Skilled Healthcare Group, Class A = | 1,517 | 19 | ||||||
Somanetics = | 919 | 17 | ||||||
SonoSite = 6 | 1,306 | 28 | ||||||
Spectranetics = | 2,418 | 7 | ||||||
Stereotaxis = 6 | 2,000 | 8 | ||||||
STERIS 6 | 4,440 | 151 | ||||||
Stewart Enterprises, Class A 6 | 6,960 | 36 | ||||||
Sucampo Pharmaceuticals = | 653 | 5 | ||||||
Sun Healthcare Group = 6 | 3,152 | 36 | ||||||
Sunrise Senior Living = | 3,248 | 10 | ||||||
SurModics = 6 | 1,046 | 28 | ||||||
Symmetry Medical = | 2,448 | 32 | ||||||
Synovis Life Technologies = | 891 | 16 | ||||||
Synta Pharmaceuticals = 6 | 1,197 | 8 | ||||||
Targacept = | 1,297 | 8 | ||||||
Theravance = 6 | 3,814 | 26 | ||||||
Thoratec = | 4,015 | 99 | ||||||
TomoTherapy = 6 | 2,928 | 10 | ||||||
TranS1 = | 873 | 6 | ||||||
Triple-S Management = | 1,015 | 10 | ||||||
U.S. Physical Therapy = | 849 | 12 | ||||||
United Therapeutics = 6 | 1,660 | 145 | ||||||
Valeant Pharmaceuticals International = 6 | 5,473 | 103 | ||||||
Varian = | 2,110 | 78 | ||||||
ViroPharma = | 5,125 | 64 | ||||||
Virtual Radiologic = 6 | 500 | 4 | ||||||
Vision-Sciences = 6 | 1,203 | 4 | ||||||
Vital Images = 6 | 1,245 | 16 | ||||||
Vivus = | 4,439 | 27 | ||||||
VNUS Medical Technologies = | 930 | 14 | ||||||
Volcano = 6 | 3,478 | 54 | ||||||
West Pharmaceutical Services 6 | 2,377 | 95 | ||||||
Wright Medical Group = 6 | 2,690 | 62 | ||||||
XenoPort = 6 | 1,842 | 77 | ||||||
XOMA = 6 | 9,749 | 12 | ||||||
Zoll Medical = 6 | 1,531 | 37 | ||||||
ZymoGenetics = 6 | 2,965 | 9 | ||||||
8,581 | ||||||||
Industrials – 15.0% | ||||||||
3D Systems = 6 | 1,275 | 14 | ||||||
A.O. Smith | 1,462 | 46 | ||||||
AAON | 937 | 15 | ||||||
AAR = 6 | 2,838 | 45 | ||||||
ABM Industries 6 | 3,202 | 52 | ||||||
ACCO Brands = | 3,991 | 11 | ||||||
Accuride = | 2,533 | 1 | ||||||
Aceto | 1,747 | 15 | ||||||
Actuant, Class A 6 | 4,092 | 73 | ||||||
Acuity Brands | 3,010 | 105 | ||||||
Administaff | 1,677 | 33 | ||||||
Advanced Battery Technologies = 6 | 2,970 | 8 | ||||||
Advisory Board = | 1,228 | 30 | ||||||
AeroVironment = | 732 | 26 | ||||||
Aircastle 6 | 3,439 | 24 | ||||||
AirTran Holdings = 6 | 8,619 | 35 | ||||||
Akeena Solar = 6 | 1,493 | 4 | ||||||
Alamo Group | 442 | 6 | ||||||
Alaska Air Group = | 2,650 | 65 | ||||||
Albany International, Class A 6 | 2,147 | 31 | ||||||
Allegiant Travel = 6 | 1,006 | 40 | ||||||
Altra Holdings = | 1,888 | 17 | ||||||
Amerco = 6 | 773 | 35 |
The accompanying notes are an integral part of the financial statements.
32 First American Funds 2008 Annual Report
Table of Contents
Small Cap Index Fund (continued) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
American Commercial Lines = | 2,653 | $ | 20 | |||||
American Ecology | 1,199 | 21 | ||||||
American Railcar Industries 6 | 690 | 8 | ||||||
American Reprographics = | 2,603 | 28 | ||||||
American Science & Engineering | 743 | 47 | ||||||
American Superconductor = 6 | 3,211 | 40 | ||||||
American Woodmark | 943 | 17 | ||||||
Ameron International | 676 | 32 | ||||||
Ampco-Pittsburgh | 606 | 14 | ||||||
Amrep = | 147 | 4 | ||||||
Apogee Enterprises 6 | 2,092 | 21 | ||||||
Applied Industrial Technology 6 | 3,117 | 63 | ||||||
Applied Signal Technology 6 | 900 | 16 | ||||||
Argon ST = | 1,015 | 21 | ||||||
Arkansas Best 6 | 1,668 | 49 | ||||||
Ascent Solar Technologies = 6 | 533 | 3 | ||||||
Asset Acceptance Capital = | 1,224 | 10 | ||||||
Astec Industries = | 1,305 | 33 | ||||||
Atlas Air Worldwide Holdings = 6 | 979 | 19 | ||||||
Axsys Technologies = | 643 | 42 | ||||||
AZZ = | 877 | 26 | ||||||
Badger Meter | 1,068 | 27 | ||||||
Baldor Electric 6 | 3,378 | 59 | ||||||
Barnes Group 6 | 3,503 | 51 | ||||||
Beacon Power = 6 | 6,341 | 6 | ||||||
Beacon Roofing Supply = 6 | 3,263 | 45 | ||||||
Bowne & Company | 1,871 | 15 | ||||||
Brady, Class A 6 | 3,678 | 114 | ||||||
Briggs & Stratton 6 | 3,652 | 58 | ||||||
Builders FirstSource = 6 | 742 | 3 | ||||||
CAI International = | 525 | 4 | ||||||
Capstone Turbine = 6 | 10,666 | 14 | ||||||
Cascade | 704 | 23 | ||||||
Casella Waste Systems = | 1,589 | 8 | ||||||
CBIZ = 6 | 4,189 | 34 | ||||||
CDI | 952 | 12 | ||||||
Celadon Group = | 1,610 | 17 | ||||||
Cenveo = 6 | 3,676 | 18 | ||||||
Ceradyne = | 1,940 | 46 | ||||||
Chart Industries = | 2,074 | 28 | ||||||
China Architectural Engineering = | 1,332 | 5 | ||||||
China BAK Battery = 6 | 2,161 | 6 | ||||||
China Direct = | 487 | 1 | ||||||
China Precision Steel = | 1,227 | 3 | ||||||
China Security & Surveillance Technology = 6 | 1,968 | 21 | ||||||
Circor International 6 | 1,232 | 38 | ||||||
CLARCOR 6 | 3,698 | 131 | ||||||
Clean Harbors = 6 | 1,414 | 93 | ||||||
Coleman Cable = | 561 | 4 | ||||||
Colfax = 6 | 1,579 | 13 | ||||||
Columbus McKinnon = | 1,399 | 20 | ||||||
Comfort Systems USA 6 | 3,251 | 30 | ||||||
Commercial Vehicle Group = | 1,692 | 2 | ||||||
COMSYS IT Partners = | 1,183 | 7 | ||||||
Consolidated Graphics = | 712 | 9 | ||||||
Cornell = | 794 | 18 | ||||||
CoStar Group = | 1,396 | 50 | ||||||
CRA International = | 848 | 23 | ||||||
Cubic | 1,127 | 25 | ||||||
Curtiss-Wright 6 | 3,297 | 122 | ||||||
Deluxe 6 | 3,795 | 46 | ||||||
Dollar Thrifty Automotive = | 1,591 | 3 | ||||||
Ducommun | 755 | 15 | ||||||
Duff & Phelps, Class A = | 776 | 15 | ||||||
DXP Enterprises = | 512 | 7 | ||||||
Dycom Industries = | 3,039 | 27 | ||||||
Dynamex = | 790 | 19 | ||||||
Dynamic Materials 6 | 936 | 18 | ||||||
DynCorp International = | 2,014 | 27 | ||||||
Eagle Bulk Shipping 6 | 3,344 | 33 | ||||||
Electro Rent | 1,558 | 19 | ||||||
EMCOR Group = | 4,971 | 88 | ||||||
Encore Wire 6 | 1,593 | 31 | ||||||
Ener1 = 6 | 2,647 | 21 | ||||||
Energy Conversion Devices = 6 | 3,348 | 114 | ||||||
Energy Recovery, Inc. = | 486 | 3 | ||||||
EnergySolutions | 2,374 | 11 | ||||||
EnerSys = | 2,013 | 27 | ||||||
ENGlobal = | 1,994 | 9 | ||||||
Ennis Business Forms | 2,093 | 25 | ||||||
EnPro Industries = 6 | 1,589 | 35 | ||||||
ESCO Technologies = | 1,911 | 66 | ||||||
Esterline Technologies = | 2,154 | 78 | ||||||
Evergreen Solar = 6 | 10,553 | 40 | ||||||
Exponent = | 1,015 | 30 | ||||||
Federal Signal | 3,537 | 30 | ||||||
First Advantage = | 734 | 8 | ||||||
Flanders = | 1,149 | 7 | ||||||
Flow International = 6 | 2,753 | 11 | ||||||
Force Protection = 6 | 4,999 | 14 | ||||||
Forward Air 6 | 2,075 | 54 | ||||||
Franklin Electric 6 | 1,685 | 71 | ||||||
FreightCar America | 897 | 23 | ||||||
FuelCell Energy = | 4,962 | 24 | ||||||
Fuel-Tech = 6 | 1,280 | 15 | ||||||
Furmanite = | 2,604 | 21 | ||||||
Fushi Copperweld = 6 | 1,030 | 5 | ||||||
G&K Services, Class A | 1,351 | 30 | ||||||
Genco Shipping & Trading 6 | 1,627 | 34 | ||||||
GenCorp = 6 | 4,200 | 21 | ||||||
Genesee & Wyoming, Class A = | 2,249 | 75 | ||||||
Geo Group = 6 | 3,735 | 66 | ||||||
GeoEye = | 1,326 | 29 | ||||||
Gevity HR | 1,655 | 6 | ||||||
Global Cash Access Holdings = | 2,956 | 8 | ||||||
Global Traffic Network = | 846 | 4 | ||||||
Gorman-Rupp 6 | 1,051 | 33 | ||||||
Graham | 726 | 15 | ||||||
Granite Construction 6 | 2,561 | 91 | ||||||
Great Lakes Dredge & Dock | 2,846 | 13 | ||||||
Greenbrier Companies 6 | 1,170 | 10 | ||||||
Griffon = | 2,480 | 21 | ||||||
GT Solar International = 6 | 2,231 | 10 | ||||||
H & E Equipment Services = | 1,182 | 7 | ||||||
Harbin Electric = 6 | 447 | 4 | ||||||
Hawaiian Holdings = | 2,910 | 20 | ||||||
Healthcare Services Group 6 | 3,113 | 52 | ||||||
Heartland Express 6 | 3,970 | 61 | ||||||
HEICO | 1,603 | 62 | ||||||
Heidrick & Struggles International | 1,381 | 33 | ||||||
Herley Industries = | 965 | 13 | ||||||
Herman Miller 6 | 4,136 | 91 | ||||||
Hexcel = 6 | 7,070 | 93 | ||||||
Hill International = | 1,674 | 10 | ||||||
HNI 6 | 3,275 | 60 | ||||||
Horizon Lines, Class A 6 | 2,322 | 11 | ||||||
Houston Wire & Cable 6 | 1,311 | 15 | ||||||
Hub Group = 6 | 2,723 | 86 | ||||||
Hudson Highland Group = | 1,834 | 10 | ||||||
Hurco = | 472 | 11 | ||||||
Huron Consulting Group = 6 | 1,406 | 76 | ||||||
ICF International = | 475 | 9 |
First American Funds 2008 Annual Report 33
Table of Contents
Schedule of Investments October 31, 2008, all dollars are rounded to thousands (000)
Small Cap Index Fund (continued) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
ICT Group = | 640 | $ | 3 | |||||
II-VI = | 1,764 | 50 | ||||||
IKON Office Solutions 6 | 5,969 | 103 | ||||||
InnerWorkings = 6 | 2,260 | 16 | ||||||
Insituform Technologies, Class A = | 2,031 | 27 | ||||||
Insteel Industries | 1,288 | 13 | ||||||
Integrated Electrical Services = 6 | 563 | 7 | ||||||
Interline Brands = 6 | 2,315 | 25 | ||||||
International Shipholding | 432 | 11 | ||||||
Jackson Hewitt Tax Service | 2,053 | 28 | ||||||
JetBlue Airways = 6 | 12,756 | 71 | ||||||
Kadant = | 1,020 | 17 | ||||||
Kaman | 1,874 | 48 | ||||||
Kaydon 6 | 2,029 | 68 | ||||||
Kelly Services, Class A | 1,877 | 27 | ||||||
Kenexa = | 1,758 | 16 | ||||||
Key Technology = | 403 | 6 | ||||||
Kforce = | 2,259 | 18 | ||||||
Knight Transportation 6 | 4,291 | 68 | ||||||
Knoll | 3,462 | 50 | ||||||
Korn/Ferry International = 6 | 3,398 | 47 | ||||||
K-Tron International = | 174 | 16 | ||||||
LaBarge = | 872 | 12 | ||||||
Ladish = 6 | 1,110 | 19 | ||||||
Lawson Products | 284 | 8 | ||||||
Layne Christensen = 6 | 1,405 | 37 | ||||||
LB Foster = 6 | 818 | 22 | ||||||
Learning Tree International = | 640 | 8 | ||||||
LECG = | 1,850 | 9 | ||||||
Lindsay Manufacturing 6 | 873 | 42 | ||||||
LMI Aerospace = | 621 | 9 | ||||||
LSI Industries | 1,688 | 13 | ||||||
Lydall = | 1,187 | 8 | ||||||
Marten Transport = 6 | 1,265 | 23 | ||||||
MasTec = | 3,165 | 28 | ||||||
McGrath Rentcorp | 1,708 | 39 | ||||||
Medis Technologies = 6 | 2,304 | 3 | ||||||
Mercury Computer Systems = | 1,667 | 12 | ||||||
Met Pro 6 | 1,076 | 13 | ||||||
Metalico = 6 | 1,772 | 6 | ||||||
Michael Baker = | 538 | 13 | ||||||
Microvision = 6 | 5,013 | 9 | ||||||
Middleby = 6 | 1,243 | 50 | ||||||
Mobile Mini = 6 | 2,577 | 43 | ||||||
Moog, Class A = 6 | 3,123 | 110 | ||||||
Mueller Industries | 2,719 | 62 | ||||||
Mueller Water Products, Class A 6 | 8,435 | 59 | ||||||
Multi Color | 679 | 13 | ||||||
NACCO Industries, Class A 6 | 430 | 26 | ||||||
Navigant Consulting = | 3,560 | 58 | ||||||
NCI Building Systems = | 1,446 | 27 | ||||||
Nordic American Tanker Shipping 6 | 2,456 | 73 | ||||||
Nordson 6 | 2,468 | 91 | ||||||
Odyssey Marine Exploration = 6 | 3,438 | 13 | ||||||
Old Dominion Freight Line = 6 | 2,252 | 68 | ||||||
Omega Flex | 223 | 5 | ||||||
On Assignment = | 2,533 | 16 | ||||||
Orbital Sciences = 6 | 4,314 | 88 | ||||||
Orion Energy Systems = 6 | 650 | 3 | ||||||
Orion Marine Group = | 1,542 | 8 | ||||||
Pacer International | 2,562 | 29 | ||||||
Park-Ohio Holdings = | 568 | 4 | ||||||
Patriot Transportation Holdings = | 115 | 8 | ||||||
PeopleSupport = | 1,735 | 21 | ||||||
Perini = | 3,425 | 65 | ||||||
PHH = | 3,918 | 32 | ||||||
Pico Holdings = | 1,157 | 29 | ||||||
Pike Electric = | 1,210 | 11 | ||||||
Plug Power = | 5,729 | 6 | ||||||
PMFG = 6 | 942 | 10 | ||||||
Polypore International = | 1,140 | 10 | ||||||
Portfolio Recovery Associates = 6 | 1,050 | 38 | ||||||
Powell Industries = | 565 | 10 | ||||||
Power-One = 6 | 5,244 | 6 | ||||||
Powersecure International = | 1,210 | 5 | ||||||
Preformed Line Products 6 | 194 | 8 | ||||||
Pre-Paid Legal Services = | 620 | 24 | ||||||
PRG-Schultz International = | 1,072 | 5 | ||||||
Princeton Review = | 956 | 5 | ||||||
Protection One = 6 | 444 | 3 | ||||||
The Provident Service = | 893 | 1 | ||||||
Quanex Building Products 6 | 2,718 | 25 | ||||||
Raven Industries | 1,172 | 38 | ||||||
RBC Bearings = | 1,577 | 37 | ||||||
Regal-Beloit | 2,371 | 77 | ||||||
Republic Airways Holdings = | 2,576 | 38 | ||||||
Resources Connection = | 3,523 | 61 | ||||||
Robbins & Myers | 2,101 | 43 | ||||||
Rollins | 2,929 | 51 | ||||||
RSC Holdings = | 3,402 | 25 | ||||||
Rush Enterprises = | 2,431 | 23 | ||||||
Saia = | 992 | 10 | ||||||
Schawk | 1,277 | 17 | ||||||
School Specialty = 6 | 1,342 | 28 | ||||||
SI International = | 961 | 28 | ||||||
Simpson Manufacturing 6 | 2,742 | 63 | ||||||
SkyWest | 4,300 | 66 | ||||||
Sotheby’s Holdings, Class A 6 | 4,963 | 46 | ||||||
Spherion = | 4,043 | 13 | ||||||
Standard Parking = | 804 | 17 | ||||||
Standard Register | 1,174 | 10 | ||||||
Standex International | 842 | 22 | ||||||
Stanley = 6 | 647 | 22 | ||||||
Sterling Construction = | 824 | 11 | ||||||
Sun Hydraulics | 854 | 18 | ||||||
TAL International Group | 924 | 15 | ||||||
Taleo, Class A = 6 | 1,612 | 22 | ||||||
TBS International = 6 | 768 | 7 | ||||||
Team = | 1,320 | 37 | ||||||
Tecumseh Products, Class A = | 1,166 | 22 | ||||||
Teledyne Technologies = 6 | 2,597 | 118 | ||||||
Teletech Holdings = | 2,891 | 26 | ||||||
Tennant 6 | 1,201 | 30 | ||||||
Tetra Tech = | 4,337 | 95 | ||||||
Textainer Group Holdings | 685 | 8 | ||||||
Thermadyne Holdings = | 957 | 9 | ||||||
Titan International | 2,525 | 29 | ||||||
Titan Machinery = 6 | 524 | 6 | ||||||
TransDigm Group = 6 | 2,435 | 73 | ||||||
Tredegar | 2,189 | 32 | ||||||
Trex = 6 | 1,113 | 18 | ||||||
Trimas = | 1,072 | 4 | ||||||
Triumph Group 6 | 1,218 | 53 | ||||||
TrueBlue = | 3,247 | 27 | ||||||
TurboChef Technologies = 6 | 1,688 | 8 | ||||||
Twin Disc | 635 | 5 | ||||||
UAL 6 | 9,268 | 135 | ||||||
Ultralife Batteries = | 898 | 8 | ||||||
Ultrapetrol Bahamas = 6 | 1,842 | 8 | ||||||
United Stationers = | 1,702 | 64 | ||||||
Universal Forest Products | 1,217 | 29 | ||||||
Universal Technical Institute = 6 | 1,684 | 28 |
The accompanying notes are an integral part of the financial statements.
34 First American Funds 2008 Annual Report
Table of Contents
Small Cap Index Fund (continued) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Universal Truckload Services = | 437 | $ | 7 | |||||
US Airways Group = | 8,387 | 85 | ||||||
Valence Technology = 6 | 3,626 | 8 | ||||||
Viad | 1,513 | 33 | ||||||
Vicor | 1,335 | 9 | ||||||
Volt Information Sciences = | 1,061 | 8 | ||||||
VSE | 287 | 9 | ||||||
Wabash National | 2,250 | 14 | ||||||
Waste Connections = 6 | 5,180 | 175 | ||||||
Waste Services = | 1,698 | 10 | ||||||
Watsco 6 | 1,722 | 71 | ||||||
Watson Wyatt & Company Holdings 6 | 3,088 | 131 | ||||||
Watts Water Technologies, Class A 6 | 2,139 | 57 | ||||||
Werner Enterprises 6 | 3,217 | 63 | ||||||
Westinghouse Air Brake Technologies | 3,568 | 142 | ||||||
Woodward Governor 6 | 4,327 | 139 | ||||||
YRC Worldwide = 6 | 4,183 | 19 | ||||||
9,644 | ||||||||
Information Technology – 15.2% | ||||||||
3Com = | 29,536 | 81 | ||||||
3PAR = | 1,947 | 12 | ||||||
Accelrys = | 1,915 | 9 | ||||||
ACI Worldwide = 6 | 2,560 | 35 | ||||||
Acme Packet = | 1,942 | 9 | ||||||
Actel = | 1,763 | 21 | ||||||
Actuate = | 4,413 | 13 | ||||||
Acxiom 6 | 4,501 | 35 | ||||||
Adaptec = | 8,911 | 29 | ||||||
ADTRAN 6 | 4,064 | 62 | ||||||
Advanced Analogic Technologies = | 3,263 | 10 | ||||||
Advanced Energy Industries = | 2,414 | 26 | ||||||
Advent Software = 6 | 1,281 | 24 | ||||||
Agilysys | 1,632 | 7 | ||||||
Airvana = | 1,723 | 8 | ||||||
American Software, Class A | 1,610 | 7 | ||||||
Amkor Technology = | 7,984 | 32 | ||||||
ANADIGICS = 6 | 4,584 | 8 | ||||||
Anaren = | 1,201 | 15 | ||||||
Anixter International = 6 | 2,187 | 73 | ||||||
Applied Micro Circuits = 6 | 4,868 | 25 | ||||||
Arcsight = | 492 | 3 | ||||||
Ariba = | 6,262 | 67 | ||||||
Arris Group = | 9,099 | 63 | ||||||
Art Technology Group = | 9,317 | 18 | ||||||
AsiaInfo Holdings = | 2,505 | 28 | ||||||
Asyst Technologies = | 3,572 | 2 | ||||||
Atheros Communications = 6 | 4,372 | 79 | ||||||
ATMI = | 2,365 | 29 | ||||||
Audiovox = | 1,192 | 7 | ||||||
Authentec = | 1,791 | 3 | ||||||
Avanex = 6 | 961 | 3 | ||||||
Avid Technology = | 2,551 | 38 | ||||||
Avocent = | 3,277 | 49 | ||||||
Axcelis Technologies = | 7,076 | 3 | ||||||
Bankrate = 6 | 938 | 31 | ||||||
BearingPoint = 6 | 16,058 | 3 | ||||||
Bel Fuse | 771 | 17 | ||||||
Belden 6 | 3,224 | 67 | ||||||
Benchmark Electronics = | 4,941 | 59 | ||||||
Bidz = | 414 | 3 | ||||||
Black Box | 1,192 | 36 | ||||||
Blackbaud 6 | 3,275 | 50 | ||||||
Blackboard = | 2,265 | 55 | ||||||
Blue Coat Systems = | 2,426 | 33 | ||||||
Bookham = 6 | 7,203 | 4 | ||||||
Bottomline Technologies = | 1,569 | 12 | ||||||
Brightpoint = 6 | 3,652 | 21 | ||||||
Brooks Automation = | 4,651 | 32 | ||||||
Cabot Microelectronics = | 1,630 | 47 | ||||||
CACI International, Class A = 6 | 2,219 | 91 | ||||||
Callidus Software = | 2,153 | 7 | ||||||
Cass Information Systems 6 | 488 | 17 | ||||||
Cavium Networks = 6 | 2,218 | 28 | ||||||
Ceva = | 1,439 | 12 | ||||||
Checkpoint Systems = | 2,882 | 36 | ||||||
China Fire & Security Group = | 1,031 | 9 | ||||||
China Information Security Technology = 6 | 1,638 | 6 | ||||||
Chordiant Software = | 2,277 | 8 | ||||||
CIBER = | 3,951 | 21 | ||||||
Cirrus Logic = | 5,257 | 30 | ||||||
Cogent = 6 | 2,965 | 27 | ||||||
Cognex 6 | 3,087 | 49 | ||||||
Cogo Group = 6 | 1,841 | 10 | ||||||
Coherent = | 1,688 | 43 | ||||||
Cohu | 1,539 | 22 | ||||||
Commvault Systems = | 3,056 | 33 | ||||||
Compellent Technologies = | 1,009 | 11 | ||||||
comScore = | 1,316 | 16 | ||||||
Comtech Telecommunications = 6 | 1,784 | 86 | ||||||
Comverge = | 1,560 | 7 | ||||||
Concur Technologies = | 3,156 | 80 | ||||||
Constant Contact = 6 | 1,453 | 17 | ||||||
CPI International = | 697 | 7 | ||||||
Cray = | 2,299 | 7 | ||||||
CSG Systems International = | 2,573 | 43 | ||||||
CTS | 2,494 | 17 | ||||||
CyberSource = 6 | 5,083 | 62 | ||||||
Cymer = | 2,181 | 53 | ||||||
Daktronics 6 | 2,372 | 24 | ||||||
Data Domain = 6 | 2,362 | 44 | ||||||
DealerTrack Holdings = 6 | 3,122 | 33 | ||||||
Deltek = | 899 | 5 | ||||||
DemandTec = | 1,403 | 10 | ||||||
Dice Holdings = 6 | 1,144 | 5 | ||||||
Digi International = 6 | 1,826 | 19 | ||||||
Digimarc = | 413 | 4 | ||||||
Digital River = 6 | 2,719 | 67 | ||||||
Diodes = 6 | 2,060 | 20 | ||||||
Dionex = | 1,307 | 70 | ||||||
Divx = | 1,926 | 13 | ||||||
Double-take Software = | 1,234 | 9 | ||||||
DSP Group = | 1,925 | 12 | ||||||
DTS = | 1,490 | 31 | ||||||
Eagle Test Systems = | 990 | 15 | ||||||
EarthLink = | 8,087 | 56 | ||||||
Ebix = | 432 | 11 | ||||||
Echelon = 6 | 2,172 | 18 | ||||||
Electro Scientific Industries = | 2,096 | 18 | ||||||
Electronics for Imaging = | 3,940 | 42 | ||||||
Elixir Gaming Technologies = 6 | 4,841 | 1 | ||||||
EMCORE = 6 | 5,374 | 19 | ||||||
Emulex = | 6,182 | 59 | ||||||
EnerNOC = 6 | 691 | 5 | ||||||
Entegris = | 8,167 | 22 | ||||||
Entropic Communications = | 666 | 1 | ||||||
Entrust = | 4,380 | 6 | ||||||
Epicor Software = | 4,516 | 32 | ||||||
EPIQ Systems = 6 | 2,557 | 35 | ||||||
Euronet Worldwide = 6 | 3,409 | 41 | ||||||
Exar = | 2,751 | 18 | ||||||
Exlservice Holdings = | 1,034 | 8 |
First American Funds 2008 Annual Report 35
Table of Contents
Schedule of Investments October 31, 2008, all dollars are rounded to thousands (000)
Small Cap Index Fund (continued) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Extreme Networks = | 6,509 | $ | 12 | |||||
Fair Isaac | 3,583 | 56 | ||||||
FalconStor Software = | 2,761 | 8 | ||||||
FARO Technologies = | 1,192 | 18 | ||||||
FEI = 6 | 2,687 | 56 | ||||||
Finisar = | 28,971 | 18 | ||||||
FormFactor = 6 | 3,597 | 63 | ||||||
Forrester Research = | 1,227 | 34 | ||||||
Foundry Networks = 6 | 10,749 | 160 | ||||||
Gartner, Class A = 6 | 4,362 | 80 | ||||||
Gerber Scientific = | 1,786 | 9 | ||||||
Globecomm Systems = | 1,441 | 11 | ||||||
Guidance Software = | 666 | 2 | ||||||
Hackett Group = | 2,943 | 9 | ||||||
Harmonic = | 6,894 | 49 | ||||||
Harris Stratex Networks, Class A = | 1,926 | 13 | ||||||
Heartland Payment Systems 6 | 1,745 | 30 | ||||||
Hittite Microwave = | 1,397 | 46 | ||||||
HSW International = 6 | 1,993 | 2 | ||||||
Hughes Communications = | 513 | 8 | ||||||
Hutchinson Technology = | 1,911 | 13 | ||||||
Hypercom = | 3,673 | 7 | ||||||
i2 Technologies = 6 | 1,101 | 16 | ||||||
iBasis = | 2,265 | 5 | ||||||
ICx Technologies = 6 | 979 | 8 | ||||||
iGATE = | 1,773 | 12 | ||||||
Imation | 2,303 | 28 | ||||||
Immersion = | 2,251 | 12 | ||||||
Infinera = 6 | 6,797 | 53 | ||||||
Infogroup 6 | 2,509 | 11 | ||||||
Informatica = | 6,483 | 91 | ||||||
InfoSpace | 2,519 | 22 | ||||||
Integral Systems = | 1,280 | 31 | ||||||
Interactive Intelligence = | 1,024 | 8 | ||||||
Interdigital = | 3,322 | 72 | ||||||
Intermec = | 4,537 | 59 | ||||||
Internap Network Services = | 3,693 | 11 | ||||||
Internet Brands = | 1,585 | 10 | ||||||
Internet Capital Group = | 2,835 | 16 | ||||||
Interwoven = | 3,335 | 42 | ||||||
Intevac = | 1,644 | 13 | ||||||
IPG Photonics = | 1,373 | 19 | ||||||
Isilon Systems = 6 | 1,815 | 6 | ||||||
Ixia = | 3,040 | 20 | ||||||
IXYS | 1,785 | 14 | ||||||
J2 Global Communications = | 3,253 | 52 | ||||||
Jack Henry & Associates 6 | 5,630 | 107 | ||||||
JDA Software = 6 | 1,749 | 25 | ||||||
KEMET = | 6,190 | 4 | ||||||
Keynote Systems = | 988 | 10 | ||||||
The Knot = | 2,043 | 14 | ||||||
Kopin = | 4,933 | 11 | ||||||
Kulicke & Soffa = | 4,267 | 13 | ||||||
L-1 Identity Solutions = | 4,768 | 39 | ||||||
Landauer | 708 | 38 | ||||||
Lattice Semiconductor = | 8,530 | 16 | ||||||
Lawson Software = 6 | 9,403 | 50 | ||||||
Limelight Networks = | 2,061 | 5 | ||||||
Liquidity Services = | 1,046 | 9 | ||||||
Littelfuse = 6 | 1,531 | 29 | ||||||
LoopNet = 6 | 2,118 | 16 | ||||||
Loral Space & Communications = | 860 | 10 | ||||||
LTX-Credence = | 9,216 | 6 | ||||||
Macrovision Solutions = | 6,040 | 67 | ||||||
Magma Design Automation = | 3,244 | 8 | ||||||
Manhattan Associates = | 1,870 | 31 | ||||||
ManTech International = | 1,486 | 80 | ||||||
Marchex 6 | 1,947 | 15 | ||||||
Mattson Technology = | 3,640 | 10 | ||||||
Maximus 6 | 1,250 | 40 | ||||||
Maxwell Technologies = 6 | 1,305 | 12 | ||||||
Measurement Specialties = | 1,108 | 12 | ||||||
Mentor Graphics = | 6,649 | 49 | ||||||
Mercadolibre = | 1,867 | 26 | ||||||
Methode Electronics, Class A | 2,784 | 21 | ||||||
Micrel | 3,801 | 28 | ||||||
MICROS Systems = 6 | 5,966 | 102 | ||||||
Microsemi = 6 | 5,761 | 125 | ||||||
MicroStrategy = | 655 | 26 | ||||||
Microtune = | 4,026 | 10 | ||||||
Midway Games = 6 | 1,434 | 1 | ||||||
MIPS Technologies, Class A = | 3,287 | 9 | ||||||
MKS Instruments = | 3,672 | 68 | ||||||
ModusLink Global Solutions = | 3,611 | 20 | ||||||
Monolithic Power Systems = | 1,923 | 33 | ||||||
Monotype Imaging Holdings = | 1,078 | 7 | ||||||
MPS Group = 6 | 7,093 | 55 | ||||||
MRV Communications = | 11,239 | 8 | ||||||
MSC.Software = | 3,312 | 28 | ||||||
MTS Systems 6 | 1,212 | 39 | ||||||
Multi-Fineline Electronix = 6 | 630 | 7 | ||||||
NCI = 6 | 465 | 11 | ||||||
Ness Technologies = 6 | 2,804 | 21 | ||||||
Net 1 UEPS Technologies = | 3,294 | 46 | ||||||
Netezza = | 2,820 | 27 | ||||||
NETGEAR = 6 | 2,560 | 28 | ||||||
Netlogic Microsystems = 6 | 1,266 | 27 | ||||||
NetScout Systems = | 2,107 | 20 | ||||||
NetSuite = | 483 | 5 | ||||||
Neutral Tandem = | 1,191 | 21 | ||||||
Newport = | 2,637 | 19 | ||||||
Nextwave Wireless = | 3,465 | 1 | ||||||
NIC | 2,940 | 16 | ||||||
Novatel Wireless = | 2,293 | 12 | ||||||
NVE = | 332 | 9 | ||||||
Omniture = 6 | 4,598 | 53 | ||||||
OmniVision Technologies = 6 | 3,962 | 32 | ||||||
Online Resources = | 2,061 | 7 | ||||||
OpenTV = 6 | 6,377 | 8 | ||||||
Oplink Communications = | 1,330 | 11 | ||||||
OPNET Technologies = | 943 | 12 | ||||||
Opnext = | 1,406 | 6 | ||||||
Orbcomm = 6 | 2,261 | 7 | ||||||
OSI Systems = | 1,237 | 14 | ||||||
OYO Geospace = | 317 | 9 | ||||||
Palm = 6 | 7,854 | 31 | ||||||
Parametric Technology = 6 | 8,486 | 110 | ||||||
Park Electrochemical 6 | 1,374 | 30 | ||||||
ParkerVision = 6 | 1,644 | 8 | ||||||
PC Connection = | 639 | 4 | ||||||
PC-Tel | 1,492 | 9 | ||||||
Pegasystems | 934 | 12 | ||||||
Perficient = 6 | 2,343 | 13 | ||||||
Pericom Semiconductor = | 2,098 | 16 | ||||||
Perot Systems, Class A = | 6,374 | 92 | ||||||
Phase Forward = 6 | 3,153 | 45 | ||||||
Phoenix Technologies = | 1,968 | 9 | ||||||
Photronics = | 3,166 | 2 | ||||||
Plantronics | 3,607 | 52 | ||||||
Plexus = | 3,168 | 59 | ||||||
PLX Technology = | 2,075 | 7 | ||||||
PMC-Sierra = 6 | 16,117 | 75 |
The accompanying notes are an integral part of the financial statements.
36 First American Funds 2008 Annual Report
Table of Contents
Small Cap Index Fund (continued) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Polycom = 6 | 6,380 | $ | 134 | |||||
Power Integrations = | 2,200 | 46 | ||||||
Powerwave Technologies = 6 | 9,626 | 9 | ||||||
Presstek = | 1,973 | 8 | ||||||
Progress Software = | 3,043 | 70 | ||||||
PROS Holdings = | 920 | 5 | ||||||
QAD | 1,086 | 6 | ||||||
Quality Systems 6 | 1,283 | 49 | ||||||
Quantum = | 14,750 | 4 | ||||||
Quest Software = | 5,332 | 71 | ||||||
Rackable Systems = | 2,187 | 16 | ||||||
Rackspace Hosting = | 1,273 | 7 | ||||||
Radiant Systems = | 1,920 | 10 | ||||||
RadiSys = | 1,565 | 10 | ||||||
RealNetworks = | 6,510 | 28 | ||||||
Renaissance Learning | 576 | 8 | ||||||
RF Micro Devices = | 19,271 | 38 | ||||||
RightNow Technologies = 6 | 2,049 | 13 | ||||||
Rimage = | 691 | 10 | ||||||
Riverbed Technology = 6 | 4,108 | 51 | ||||||
Rofin-Sinar Technologies = | 2,175 | 48 | ||||||
Rogers = | 1,298 | 39 | ||||||
Rubicon Technology = | 948 | 5 | ||||||
Rudolph Technologies = | 2,212 | 7 | ||||||
S1 = | 3,862 | 24 | ||||||
Safeguard Scientifics = | 9,654 | 8 | ||||||
Sanmina – SCI = | 38,889 | 29 | ||||||
Sapient = | 6,471 | 36 | ||||||
SAVVIS = 6 | 2,770 | 24 | ||||||
ScanSource = | 1,902 | 38 | ||||||
SeaChange International = | 2,075 | 16 | ||||||
Secure Computing = | 3,785 | 21 | ||||||
Semitool = | 1,632 | 10 | ||||||
Semtech = 6 | 4,523 | 55 | ||||||
Shoretel = | 3,097 | 15 | ||||||
Sigma Designs = 6 | 1,955 | 22 | ||||||
Silicon Image = | 5,959 | 27 | ||||||
Silicon Storage Technology = | 6,863 | 22 | ||||||
SiRF Technology Holdings = 6 | 4,337 | 4 | ||||||
Skyworks Solutions = 6 | 11,941 | 85 | ||||||
Smart Modular Technologies = | 3,468 | 9 | ||||||
Smith Micro Software = | 2,201 | 14 | ||||||
Solera Holdings = 6 | 3,802 | 95 | ||||||
Sonic Solutions = | 2,098 | 4 | ||||||
SonicWALL = | 4,376 | 20 | ||||||
Sonus Networks = 6 | 16,382 | 36 | ||||||
Sourcefire = | 1,431 | 9 | ||||||
Spansion = | 9,120 | 6 | ||||||
SPSS = | 1,264 | 30 | ||||||
SRA International, Class A = 6 | 3,134 | 58 | ||||||
Standard Microsystems = | 1,674 | 30 | ||||||
Starent Networks = 6 | 2,179 | 22 | ||||||
STEC = 6 | 2,302 | 13 | ||||||
Stratasys = | 1,512 | 18 | ||||||
SuccessFactors = 6 | 1,634 | 13 | ||||||
Super Micro Computer = | 1,581 | 10 | ||||||
Supertex = | 818 | 20 | ||||||
Supportsoft = | 3,308 | 8 | ||||||
Switch & Data Facilities = 6 | 1,467 | 14 | ||||||
Sybase = 6 | 5,842 | 156 | ||||||
Sycamore Networks | 14,007 | 47 | ||||||
Sykes Enterprises = 6 | 2,359 | 38 | ||||||
Symmetricom = | 3,733 | 17 | ||||||
Synaptics = 6 | 2,491 | 77 | ||||||
Synchronoss Technologies = 6 | 1,618 | 13 | ||||||
SYNNEX = | 1,245 | 19 | ||||||
Syntel 6 | 923 | 23 | ||||||
Take-Two Interactive Software = | 5,631 | 67 | ||||||
TASER International = 6 | 4,612 | 23 | ||||||
Technitrol | 3,039 | 18 | ||||||
Techtarget = | 995 | 5 | ||||||
Techwell = | 1,055 | 9 | ||||||
Tekelec = | 4,778 | 61 | ||||||
Telecommunication Systems = | 2,407 | 17 | ||||||
Terremark Worldwide = | 3,825 | 17 | ||||||
Tessera Technologies = | 3,543 | 61 | ||||||
TheStreet.com 6 | 1,404 | 6 | ||||||
THQ = | 4,913 | 37 | ||||||
TIBCO Software = 6 | 13,741 | 71 | ||||||
TNS = | 1,921 | 27 | ||||||
Transmeta = 6 | 869 | 14 | ||||||
Trident Microsystems = | 4,469 | 8 | ||||||
TriQuint Semiconductor = 6 | 10,586 | 47 | ||||||
TTM Technologies = | 3,088 | 22 | ||||||
Tyler Technologies = | 2,709 | 37 | ||||||
Ultimate Software Group = | 1,814 | 24 | ||||||
Ultra Clean Holdings = 6 | 1,286 | 4 | ||||||
Ultratech = | 1,713 | 26 | ||||||
Unica = | 1,011 | 5 | ||||||
United Online 6 | 5,566 | 41 | ||||||
Universal Display = 6 | 2,119 | 23 | ||||||
UTStarcom = 6 | 8,093 | 19 | ||||||
ValueClick = 6 | 6,832 | 51 | ||||||
VASCO Data Security International = | 1,968 | 22 | ||||||
Veeco Instruments = | 2,349 | 18 | ||||||
VeriFone Holdings = 6 | 5,005 | 57 | ||||||
ViaSat = | 1,856 | 34 | ||||||
Vignette = | 1,981 | 16 | ||||||
Virtusa = | 631 | 3 | ||||||
Vocus = 6 | 1,149 | 19 | ||||||
Volterra Semiconductor = | 1,813 | 17 | ||||||
Web.com Group = | 1,976 | 10 | ||||||
Websense = 6 | 3,307 | 65 | ||||||
Wind River Systems = | 5,275 | 46 | ||||||
Wright Express = 6 | 2,843 | 39 | ||||||
Zoran = 6 | 3,818 | 31 | ||||||
Zygo = | 1,164 | 10 | ||||||
9,775 | ||||||||
Materials – 3.9% | ||||||||
A. Schulman 6 | 1,997 | 36 | ||||||
A.M. Castle & Company 6 | 1,209 | 15 | ||||||
AbitibiBowater = 6 | 3,894 | 8 | ||||||
AEP Industries = | 383 | 8 | ||||||
Allied Nevada Gold = | 3,218 | 11 | ||||||
AMCOL International | 1,889 | 46 | ||||||
American Vanguard 6 | 1,515 | 22 | ||||||
Apex Silver Mines = 6 | 4,014 | 5 | ||||||
Arch Chemicals | 1,798 | 51 | ||||||
Balchem | 1,293 | 33 | ||||||
Boise = | 2,614 | 2 | ||||||
Brush Engineered Metals = | 1,494 | 18 | ||||||
Buckeye Technologies = | 2,888 | 17 | ||||||
BWAY Holding Company = | 534 | 4 | ||||||
Calgon Carbon = 6 | 3,015 | 40 | ||||||
Cambrex = | 1,941 | 9 | ||||||
Coeur D’Alene Mines = 6 | 40,597 | 29 | ||||||
Compass Minerals International 6 | 2,373 | 130 | ||||||
Deltic Timber | 764 | 35 | ||||||
Ferro 6 | 3,202 | 50 | ||||||
Flotek Industries = 6 | 1,659 | 8 | ||||||
General Moly = 6 | 4,622 | 9 |
First American Funds 2008 Annual Report 37
Table of Contents
Schedule of Investments October 31, 2008, all dollars are rounded to thousands (000)
Small Cap Index Fund (continued) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
General Steel Holdings = | 769 | $ | 4 | |||||
Gibraltar Industries | 1,981 | 26 | ||||||
Glatfelter | 3,333 | 34 | ||||||
GrafTech International = | 8,792 | 71 | ||||||
Graphic Packaging Holding = 6 | 10,649 | 20 | ||||||
H.B. Fuller 6 | 3,824 | 68 | ||||||
Haynes International = | 872 | 22 | ||||||
Headwaters = 6 | 3,076 | 33 | ||||||
Hecla Mining = 6 | 9,364 | 23 | ||||||
Hercules | 8,335 | 140 | ||||||
Horsehead Holding = | 2,557 | 9 | ||||||
Innophos Holdings 6 | 761 | 20 | ||||||
Innospec | 1,713 | 15 | ||||||
Kaiser Aluminum 6 | 1,154 | 39 | ||||||
Kapstone Paper & Packaging = | 1,282 | 6 | ||||||
Koppers Holdings 6 | 1,526 | 36 | ||||||
Landec = | 1,699 | 16 | ||||||
Louisiana Pacific | 7,566 | 36 | ||||||
LSB Industries = | 1,281 | 11 | ||||||
Mercer International = 6 | 2,206 | 6 | ||||||
Minerals Technologies 6 | 1,384 | 79 | ||||||
Myers Industries | 2,086 | 22 | ||||||
Neenah Paper 6 | 1,044 | 9 | ||||||
NewMarket Group | 987 | 37 | ||||||
NL Industries | 706 | 10 | ||||||
NN | 1,134 | 8 | ||||||
Northwest Pipe = 6 | 670 | 19 | ||||||
Olin 6 | 5,476 | 99 | ||||||
Olympic Steel | 662 | 15 | ||||||
OM Group = 6 | 2,238 | 48 | ||||||
Penford | 804 | 10 | ||||||
PolyOne = | 6,833 | 32 | ||||||
Quaker Chemical | 735 | 14 | ||||||
Rock-Tenn, Class A | 2,793 | 85 | ||||||
Rockwood Holdings = 6 | 3,054 | 38 | ||||||
Royal Gold | 2,063 | 59 | ||||||
RTI International Metals = 6 | 1,685 | 27 | ||||||
Schweitzer-Mauduit International | 1,109 | 19 | ||||||
Sensient Technologies 6 | 3,186 | 80 | ||||||
ShengdaTech = 6 | 2,181 | 11 | ||||||
Silgan Holdings 6 | 1,825 | 85 | ||||||
Solutia = | 6,394 | 62 | ||||||
Spartech | 2,179 | 14 | ||||||
Stepan | 454 | 16 | ||||||
Stillwater Mining = 6 | 2,903 | 12 | ||||||
Sutor Tech Group = | 545 | 1 | ||||||
Symyx Technologies = | 2,478 | 11 | ||||||
Texas Industries 6 | 1,776 | 56 | ||||||
United States Lime & Minerals = | 128 | 3 | ||||||
Universal Stainless & Alloy = | 485 | 9 | ||||||
Uranium Resources = | 3,559 | 3 | ||||||
US Concrete = | 2,912 | 9 | ||||||
USEC = 6 | 8,144 | 34 | ||||||
Verso Paper = | 1,002 | 2 | ||||||
W.R. Grace & Company = | 5,314 | 48 | ||||||
Wausau-Mosinee Paper | 3,341 | 31 | ||||||
Westlake Chemical | 1,413 | 26 | ||||||
Worthington Industries | 4,712 | 57 | ||||||
Zep | 1,649 | 35 | ||||||
Zoltek Companies = 6 | 2,016 | 24 | ||||||
2,480 | ||||||||
Telecommunication Services – 1.0% | ||||||||
Alaska Communications Systems Group | 2,892 | 27 | ||||||
Aruba Networks = 6 | 3,853 | 12 | ||||||
Atlantic Tele-Network | 676 | 16 | ||||||
Bigband Networks = | 2,349 | 9 | ||||||
Cbeyond = 6 | 1,764 | 21 | ||||||
Centennial Communications, Class A = | 4,815 | 17 | ||||||
Cincinnati Bell = 6 | 18,188 | 44 | ||||||
Cogent Communications Group = 6 | 3,505 | 17 | ||||||
Consolidated Communications Holdings | 1,555 | 16 | ||||||
EMS Technologies = | 1,218 | 26 | ||||||
FairPoint Communications 6 | 6,365 | 25 | ||||||
Fibertower = 6 | 8,601 | 6 | ||||||
General Communication, Class A = | 4,070 | 31 | ||||||
Global Crossing = | 2,326 | 16 | ||||||
GlobalStar = | 1,402 | 1 | ||||||
Hungarian Telephone & Cable = | 221 | 2 | ||||||
ICO Global Communication Holdings = | 7,490 | 12 | ||||||
IDT = | 3,472 | 4 | ||||||
Iowa Telecommunication Services 6 | 2,146 | 32 | ||||||
iPCS = | 1,256 | 21 | ||||||
NTELOS Holdings 6 | 2,190 | 57 | ||||||
Paetec Holding = | 9,052 | 8 | ||||||
Premiere Global Services = 6 | 4,672 | 47 | ||||||
Shenandoah Telecommunications | 1,724 | 41 | ||||||
Syniverse Holdings = | 3,759 | 71 | ||||||
Terrestar = | 4,157 | 3 | ||||||
tw telecom = 6 | 10,777 | 76 | ||||||
USA Mobility | 1,561 | 15 | ||||||
Virgin Mobile USA, Class A = | 2,197 | 2 | ||||||
Vonage Holdings = 6 | 4,420 | 4 | ||||||
679 | ||||||||
Utilities – 3.8% | ||||||||
Allete 6 | 1,749 | 61 | ||||||
American States Water | 1,467 | 50 | ||||||
Avista | 3,909 | 78 | ||||||
Black Hills | 2,766 | 70 | ||||||
California Water Service | 1,437 | 54 | ||||||
Central Vermont Public Service | 710 | 14 | ||||||
CH Energy Group | 1,173 | 48 | ||||||
Chesapeake Utilities | 486 | 15 | ||||||
CLECO 6 | 4,410 | 101 | ||||||
Connecticut Water Service | 303 | 8 | ||||||
Consolidated Water 6 | 1,001 | 14 | ||||||
El Paso Electric = | 3,146 | 58 | ||||||
Empire District Electric 6 | 2,277 | 44 | ||||||
IDACORP 6 | 3,303 | 88 | ||||||
ITC Holdings | 3,620 | 147 | ||||||
Laclede Group | 1,862 | 97 | ||||||
MGE Energy 6 | 1,789 | 64 | ||||||
Middlesex Water | 949 | 16 | ||||||
New Jersey Resources 6 | 2,971 | 111 | ||||||
Nicor 6 | 3,327 | 154 | ||||||
Northwest Natural Gas 6 | 1,701 | 87 | ||||||
NorthWestern 6 | 2,652 | 52 | ||||||
Ormat Technologies | 1,312 | 32 | ||||||
Otter Tail | 2,227 | 52 | ||||||
Piedmont Natural Gas 6 | 4,996 | 164 | ||||||
PNM Resources 6 | 5,636 | 55 | ||||||
Portland General Electric | 4,472 | 92 | ||||||
SJW 6 | 1,269 | 35 | ||||||
South Jersey Industries | 2,417 | 82 | ||||||
Southwest Gas 6 | 2,896 | 76 | ||||||
Southwest Water 6 | 1,726 | 14 | ||||||
Synthesis Energy Systems = | 1,869 | 4 | ||||||
UIL Holdings | 1,936 | 64 | ||||||
UniSource Energy Holding 6 | 2,522 | 70 | ||||||
US Geothermal = | 4,435 | 4 | ||||||
Westar Energy 6 | 7,586 | 148 |
The accompanying notes are an integral part of the financial statements.
38 First American Funds 2008 Annual Report
Table of Contents
Small Cap Index Fund (concluded) | ||||||||
DESCRIPTION | SHARES/PAR | VALUE | ||||||
WGL Holdings 6 | 3,580 | $ | 115 | |||||
2,438 | ||||||||
Total Common Stocks | ||||||||
(Cost $69,017) | 59,475 | |||||||
Warrants ⊡ – 0.0% | ||||||||
Greenhunter Energy, Warrants | 30 | — | ||||||
Lantronix, Warrants | 39 | — | ||||||
Pegasus Wireless, Warrants | 604 | — | ||||||
(Cost $0) | — | |||||||
Short-Term Investments – 7.4% | ||||||||
Money Market Fund – 6.5% | ||||||||
First American Prime Obligations Fund, Class Z Å | 4,155,641 | 4,156 | ||||||
U.S. Treasury Obligation – 0.9% | ||||||||
U.S. Treasury Bill | ||||||||
2.074%, 12/18/2008 o | $ | 600 | 598 | |||||
Total Short-Term Investments | ||||||||
(Cost $4,754) | 4,754 | |||||||
Investment Purchased with Proceeds from Securities Lending – 42.6% | ||||||||
Mount Vernon Securities Lending Prime Portfolio † | ||||||||
(Cost $27,423) | 27,423,472 | 27,423 | ||||||
Total Investments – 142.5% | ||||||||
(Cost $101,194) | 91,652 | |||||||
Other Assets and Liabilities, Net – (42.5)% | (27,340 | ) | ||||||
Total Net Assets – 100.0% | $ | 64,312 | ||||||
= | Non-income producing security | |
6 | This security or a portion of this security is out on loan at October 31, 2008. Total loaned securities had a market value of $26,956 at October 31, 2008. See note 2 in Notes to Financial Statements. | |
⊡ | Security is fair valued and illiquid. As of October 31, 2008, the fair value of these investments was $0 or 0.0% of total net assets. See note 2 in Notes to Financial Statements. | |
Å | Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor to 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 effective yield as of October 31, 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. |
REIT – | Real Estate Investment Trust |
Schedule of Open Futures Contracts
Number of | Notional | |||||||||||||
Contracts | Contract | Settlement | Unrealized | |||||||||||
Description | Purchased | Value | Month | Depreciation | ||||||||||
Russell 2000 Futures | 89 | $ | 4,775 | December 2008 | $ | (568 | ) | |||||||
First American Funds 2008 Annual Report 39
Table of Contents
Statements ofAssets and Liabilities | October 31, 2008, all dollars and shares are rounded to thousands (000), except per share data |
Equity | Mid Cap | Small Cap | ||||||||||||||
Index Fund | Index Fund | Index Fund | ||||||||||||||
Unaffiliated investments, at cost | $ | 905,151 | $ | 223,716 | $ | 69,615 | ||||||||||
Affiliated investments, at cost | 21,898 | 12,269 | 4,156 | |||||||||||||
Affiliated investment purchased with proceeds from securities lending, at cost (note 2) | 360,899 | 90,544 | 27,423 | |||||||||||||
ASSETS: | ||||||||||||||||
Unaffiliated investments, at value* (note 2) | $ | 1,076,847 | $ | 187,165 | $ | 60,073 | ||||||||||
Affiliated investments, at value* (note 2) | 23,535 | 12,269 | 4,156 | |||||||||||||
Affiliated investment purchased with proceeds from securities lending, at value (note 2) | 360,899 | 90,544 | 27,423 | |||||||||||||
Cash | 34 | — | — | |||||||||||||
Receivable for dividends and interest | 1,809 | 225 | 86 | |||||||||||||
Receivable for investments sold | 261 | 1,344 | 48 | |||||||||||||
Receivable for capital shares sold | 1,379 | 747 | 34 | |||||||||||||
Receivable for variation margin | 112 | 214 | 180 | |||||||||||||
Receivable from advisor (note 3) | — | — | 27 | |||||||||||||
Prepaid expenses and other assets | 34 | 41 | 35 | |||||||||||||
Total assets | 1,464,910 | 292,549 | 92,062 | |||||||||||||
LIABILITIES: | ||||||||||||||||
Payable upon return of securities loaned (note 2) | 360,899 | 90,544 | 27,423 | |||||||||||||
Payable for investments purchased | 179 | 811 | 56 | |||||||||||||
Payable for capital shares redeemed | 2,066 | 304 | 203 | |||||||||||||
Payable to affiliates (note 3) | 370 | 70 | 46 | |||||||||||||
Payable for distribution and shareholder servicing fees | 48 | 10 | 4 | |||||||||||||
Accrued expenses and other liabilities | 9 | — | 18 | |||||||||||||
Total liabilities | 363,571 | 91,739 | 27,750 | |||||||||||||
Net assets | $ | 1,101,339 | $ | 200,810 | $ | 64,312 | ||||||||||
COMPOSITION OF NET ASSETS: | ||||||||||||||||
Portfolio capital | $ | 945,222 | $ | 226,604 | $ | 66,726 | ||||||||||
Undistributed net investment income | 2,285 | 806 | 281 | |||||||||||||
Accumulated net realized gain (loss) on investments (note 2) | (16,595 | ) | 13,317 | 7,415 | ||||||||||||
Net unrealized appreciation (depreciation) of: | ||||||||||||||||
Investments | 173,333 | (36,551 | ) | (9,542 | ) | |||||||||||
Futures contracts | (2,906 | ) | (3,366 | ) | (568 | ) | ||||||||||
Net assets | $ | 1,101,339 | $ | 200,810 | $ | 64,312 | ||||||||||
* Including securities loaned, at value | $ | 353,304 | $ | 89,533 | $ | 26,956 | ||||||||||
Class A: | ||||||||||||||||
Net assets | $ | 114,654 | $ | 11,374 | $ | 6,043 | ||||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 6,509 | 1,288 | 678 | |||||||||||||
Net asset value, and redemption price per share | $ | 17.61 | $ | 8.83 | $ | 8.91 | ||||||||||
Maximum offering price per share1 | $ | 18.63 | $ | 9.34 | $ | 9.43 | ||||||||||
Class B: | ||||||||||||||||
Net assets | $ | 12,856 | $ | 1,140 | $ | 685 | ||||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 741 | 132 | 80 | |||||||||||||
Net asset value, offering price, and redemption price per share2 | $ | 17.35 | $ | 8.61 | $ | 8.56 | ||||||||||
Class C: | ||||||||||||||||
Net assets | $ | 9,784 | $ | 3,101 | $ | 1,531 | ||||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 560 | 359 | 177 | |||||||||||||
Net asset value, offering price, and redemption price per share2 | $ | 17.46 | $ | 8.64 | $ | 8.66 | ||||||||||
Class R: | ||||||||||||||||
Net assets | $ | 9,463 | $ | 8,157 | $ | 1,121 | ||||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 538 | 931 | 128 | |||||||||||||
Net asset value, offering price, and redemption price per share | $ | 17.58 | $ | 8.76 | $ | 8.76 | ||||||||||
Class Y: | ||||||||||||||||
Net assets | $ | 954,582 | $ | 177,038 | $ | 54,932 | ||||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 54,208 | 20,019 | 6,161 | |||||||||||||
Net asset value, offering price, and redemption price per share | $ | 17.61 | $ | 8.84 | $ | 8.92 | ||||||||||
1 | The offering price is calculated by dividing the net asset value by 1 minus the maximum sales charge of 5.50%. | |
2 | Class B and C have a contingent deferred sales charge. For a description of this sales charge, see notes 1 and 3 in Notes to Financial Statements. |
The accompanying notes are an integral part of the financial statements.
40 First American Funds 2008 Annual Report
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Statements ofOperations | For the year ended October 31, 2008, all dollars are rounded to thousands (000) |
Equity | Mid Cap | Small Cap | ||||||||||||||
Index Fund | Index Fund | Index Fund | ||||||||||||||
INVESTMENT INCOME: | ||||||||||||||||
Dividends from unaffiliated investments | $ | 34,695 | $ | 4,054 | $ | 1,190 | ||||||||||
Dividends from affiliated investments | 1,394 | 368 | 166 | |||||||||||||
Interest from unaffiliated investments | 87 | 25 | 14 | |||||||||||||
Less: Foreign taxes withheld | (1 | ) | — | — | ||||||||||||
Securities lending income | 1,992 | 676 | 346 | |||||||||||||
Total investment income | 38,167 | 5,123 | 1,716 | |||||||||||||
EXPENSES (note 3): | ||||||||||||||||
Investment advisory fees | 4,044 | 713 | 360 | |||||||||||||
Administration fees | 3,578 | 652 | 262 | |||||||||||||
Transfer agent fees | 454 | 128 | 134 | |||||||||||||
Custodian fees | 82 | 15 | 5 | |||||||||||||
Legal fees | 13 | 15 | 15 | |||||||||||||
Audit fees | 27 | 27 | 27 | |||||||||||||
Registration fees | 64 | 57 | 51 | |||||||||||||
Postage and printing fees | 107 | 20 | 7 | |||||||||||||
Directors’ fees | 28 | 28 | 28 | |||||||||||||
Other expenses | 74 | 32 | 65 | |||||||||||||
Distribution and shareholder servicing fees: | ||||||||||||||||
Class A | 418 | 38 | 19 | |||||||||||||
Class B | 216 | 18 | 10 | |||||||||||||
Class C | 149 | 44 | 22 | |||||||||||||
Class R | 39 | 34 | 5 | |||||||||||||
Total expenses | 9,293 | 1,821 | 1,010 | |||||||||||||
Less: Fee waivers (note 3) | (2,516 | ) | (273 | ) | (439 | ) | ||||||||||
Less: Indirect payments from custodian (note 3) | (3 | ) | (2 | ) | — | |||||||||||
Total net expenses | 6,774 | 1,546 | 571 | |||||||||||||
Investment income – net | 31,393 | 3,577 | 1,145 | |||||||||||||
REALIZED AND UNREALIZED GAINS (LOSSES) – NET (note 6): | ||||||||||||||||
Net realized gain (loss) on: | ||||||||||||||||
Unaffiliated investments | 11,988 | 19,413 | 11,307 | |||||||||||||
Affiliated investments (note 4) | 254 | — | — | |||||||||||||
Redemption-in-kind (note 8) | 33,430 | — | — | |||||||||||||
Futures contracts | (14,113 | ) | (3,523 | ) | (1,568 | ) | ||||||||||
Net change in unrealized appreciation or depreciation of: | ||||||||||||||||
Unaffiliated investments | (721,395 | ) | (134,758 | ) | (46,893 | ) | ||||||||||
Affiliated investments | (1,060 | ) | — | — | ||||||||||||
Futures contracts | (3,051 | ) | (3,623 | ) | (577 | ) | ||||||||||
Net loss on investments and futures contracts | (693,947 | ) | (122,491 | ) | (37,731 | ) | ||||||||||
Net decrease in net assets resulting from operations | $ | (662,554 | ) | $ | (118,914 | ) | $ | (36,586 | ) | |||||||
First American Funds 2008 Annual Report 41
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Statements ofChanges in Net Assets | all dollars are rounded to thousands (000) |
Equity | Mid Cap | Small Cap | ||||||||||||||||||||||||||
Index Fund | Index Fund | Index Fund | ||||||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||||||
10/31/08 | 10/31/07 | 10/31/08 | 10/31/07 | 10/31/08 | 10/31/07 | |||||||||||||||||||||||
OPERATIONS: | ||||||||||||||||||||||||||||
Investment income – net | $ | 31,393 | $ | 31,846 | $ | 3,577 | $ | 4,582 | $ | 1,145 | $ | 1,583 | ||||||||||||||||
Net realized gain (loss) on: | ||||||||||||||||||||||||||||
Unaffiliated investments | 11,988 | 37,487 | 19,413 | 38,080 | 11,307 | 13,831 | ||||||||||||||||||||||
Affiliated investments (note 4) | 254 | 767 | — | — | — | — | ||||||||||||||||||||||
Redemption-in-kind (note 8) | 33,430 | 121,979 | — | — | — | — | ||||||||||||||||||||||
Futures contracts | (14,113 | ) | 1,031 | (3,523 | ) | 1,065 | (1,568 | ) | 231 | |||||||||||||||||||
Net change in unrealized appreciation or depreciation of: | ||||||||||||||||||||||||||||
Unaffiliated investments | (721,395 | ) | 75,164 | (134,758 | ) | 12,962 | (46,893 | ) | (3,070 | ) | ||||||||||||||||||
Affiliated investments | (1,060 | ) | (966 | ) | — | — | — | — | ||||||||||||||||||||
Futures contracts | (3,051 | ) | (447 | ) | (3,623 | ) | (65 | ) | (577 | ) | (89 | ) | ||||||||||||||||
Net increase (decrease) in net assets resulting from operations | (662,554 | ) | 266,861 | (118,914 | ) | 56,624 | (36,586 | ) | 12,486 | |||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | ||||||||||||||||||||||||||||
Investment income – net: | ||||||||||||||||||||||||||||
Class A | (2,631 | ) | (2,903 | ) | (126 | ) | (145 | ) | (63 | ) | (82 | ) | ||||||||||||||||
Class B | (193 | ) | (253 | ) | (5 | ) | (5 | ) | (3 | ) | (2 | ) | ||||||||||||||||
Class C | (132 | ) | (134 | ) | (11 | ) | (10 | ) | (6 | ) | (5 | ) | ||||||||||||||||
Class R | (101 | ) | (56 | ) | (42 | ) | (35 | ) | (6 | ) | (3 | ) | ||||||||||||||||
Class Y | (25,572 | ) | (28,278 | ) | (2,674 | ) | (3,806 | ) | (785 | ) | (1,322 | ) | ||||||||||||||||
Net realized gain on investments: | ||||||||||||||||||||||||||||
Class A | (3,893 | ) | (2,670 | ) | (1,774 | ) | (684 | ) | (947 | ) | (1,272 | ) | ||||||||||||||||
Class B | (552 | ) | (488 | ) | (232 | ) | (119 | ) | (132 | ) | (166 | ) | ||||||||||||||||
Class C | (351 | ) | (235 | ) | (548 | ) | (207 | ) | (311 | ) | (336 | ) | ||||||||||||||||
Class R | (144 | ) | (42 | ) | (602 | ) | (197 | ) | (86 | ) | (37 | ) | ||||||||||||||||
Class Y | (31,878 | ) | (20,073 | ) | (32,293 | ) | (15,634 | ) | (10,301 | ) | (17,014 | ) | ||||||||||||||||
Total distributions | (65,447 | ) | (55,132 | ) | (38,307 | ) | (20,842 | ) | (12,640 | ) | (20,239 | ) | ||||||||||||||||
CAPITAL SHARE TRANSACTIONS (note 5): | ||||||||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||||||
Proceeds from sales | 20,758 | 40,302 | 4,704 | 6,269 | 1,928 | 1,987 | ||||||||||||||||||||||
Reinvestment of distributions | 6,237 | 5,055 | 1,717 | 781 | 975 | 1,274 | ||||||||||||||||||||||
Payments for redemptions | (49,679 | ) | (83,782 | ) | (4,543 | ) | (5,602 | ) | (1,862 | ) | (4,270 | ) | ||||||||||||||||
Increase (decrease) in net assets from Class A transactions | (22,684 | ) | (38,425 | ) | 1,878 | 1,448 | 1,041 | (1,009 | ) | |||||||||||||||||||
Class B: | ||||||||||||||||||||||||||||
Proceeds from sales | 770 | 1,244 | 122 | 218 | 156 | 413 | ||||||||||||||||||||||
Reinvestment of distributions | 720 | 711 | 225 | 120 | 131 | 163 | ||||||||||||||||||||||
Payments for redemptions (note 3) | (10,397 | ) | (17,733 | ) | (499 | ) | (992 | ) | (320 | ) | (598 | ) | ||||||||||||||||
Decrease in net assets from Class B transactions | (8,907 | ) | (15,778 | ) | (152 | ) | (654 | ) | (33 | ) | (22 | ) | ||||||||||||||||
Class C: | ||||||||||||||||||||||||||||
Proceeds from sales | 1,128 | 1,794 | 797 | 938 | 127 | 428 | ||||||||||||||||||||||
Reinvestment of distributions | 449 | 338 | 502 | 197 | 285 | 301 | ||||||||||||||||||||||
Payments for redemptions (note 3) | (4,643 | ) | (5,352 | ) | (1,051 | ) | (636 | ) | (585 | ) | (339 | ) | ||||||||||||||||
Increase (decrease) in net assets from Class C transactions | (3,066 | ) | (3,220 | ) | 248 | 499 | (173 | ) | 390 | |||||||||||||||||||
Class R: | ||||||||||||||||||||||||||||
Proceeds from sales | 9,125 | 4,337 | 8,117 | 2,240 | 1,239 | 598 | ||||||||||||||||||||||
Reinvestment of distributions | 244 | 98 | 644 | 232 | 92 | 40 | ||||||||||||||||||||||
Payments for redemptions | (2,841 | ) | (1,177 | ) | (2,163 | ) | (1,070 | ) | (379 | ) | (216 | ) | ||||||||||||||||
Increase in net assets from Class R transactions | 6,528 | 3,258 | 6,598 | 1,402 | 952 | 422 | ||||||||||||||||||||||
Class Y: | ||||||||||||||||||||||||||||
Proceeds from sales | 303,124 | 299,763 | 34,746 | 52,493 | 22,782 | 22,880 | ||||||||||||||||||||||
Reinvestment of distributions | 32,635 | 29,030 | 17,958 | 10,219 | 5,060 | 9,132 | ||||||||||||||||||||||
Payments for redemptions | (464,413 | ) | (732,535 | ) | (68,345 | ) | (95,477 | ) | (44,407 | ) | (46,440 | ) | ||||||||||||||||
Decrease in net assets from Class Y transactions | (128,654 | ) | (403,742 | ) | (15,641 | ) | (32,765 | ) | (16,565 | ) | (14,428 | ) | ||||||||||||||||
Decrease in net assets from capital share transactions | (156,783 | ) | (457,907 | ) | (7,069 | ) | (30,070 | ) | (14,778 | ) | (14,647 | ) | ||||||||||||||||
Total increase (decrease) in net assets | (884,784 | ) | (246,178 | ) | (164,290 | ) | 5,712 | (64,004 | ) | (22,400 | ) | |||||||||||||||||
Net assets at beginning of period | 1,986,123 | 2,232,301 | 365,100 | 359,388 | 128,316 | 150,716 | ||||||||||||||||||||||
Net assets at end of period | $ | 1,101,339 | $ | 1,986,123 | $ | 200,810 | $ | 365,100 | $ | 64,312 | $ | 128,316 | ||||||||||||||||
Undistributed (distributions in excess of) net investment income at end of period | $ | 2,285 | $ | (11 | ) | $ | 806 | $ | 371 | $ | 281 | $ | 84 | |||||||||||||||
The accompanying notes are an integral part of the financial statements.
42 First American Funds 2008 Annual Report
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Financial Highlights For a share outstanding throughout the indicated periods.
Realized and | ||||||||||||||||||||||||||||||||||||
Net Asset | Unrealized | Distributions | ||||||||||||||||||||||||||||||||||
Value | Net | Gains or | Total from | from Net | Distributions | |||||||||||||||||||||||||||||||
Beginning | Investment | (Losses) on | Investment | Investment | from Net | Total | ||||||||||||||||||||||||||||||
of Period | Income | Investments | Operations | Income | Realized Gains | Distributions | ||||||||||||||||||||||||||||||
Equity Index Fund1 | ||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||
20082 | $ | 28.67 | $ | 0.42 | $ | (10.57 | ) | $ | (10.15 | ) | $ | (0.38 | ) | $ | (0.53 | ) | $ | (0.91 | ) | |||||||||||||||||
20072 | 25.80 | 0.37 | 3.16 | 3.53 | (0.36 | ) | (0.30 | ) | (0.66 | ) | ||||||||||||||||||||||||||
20062 | 22.59 | 0.33 | 3.21 | 3.54 | (0.33 | ) | — | (0.33 | ) | |||||||||||||||||||||||||||
20053 | 23.00 | 0.01 | (0.40 | ) | (0.39 | ) | (0.02 | ) | — | (0.02 | ) | |||||||||||||||||||||||||
20054 | �� | 20.91 | 0.34 | 2.09 | 2.43 | (0.34 | ) | — | (0.34 | ) | ||||||||||||||||||||||||||
20044 | 18.70 | 0.23 | 2.22 | 2.45 | (0.24 | ) | — | (0.24 | ) | |||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||
20082 | $ | 28.27 | $ | 0.24 | $ | (10.42 | ) | $ | (10.18 | ) | $ | (0.21 | ) | $ | (0.53 | ) | $ | (0.74 | ) | |||||||||||||||||
20072 | 25.47 | 0.17 | 3.11 | 3.28 | (0.18 | ) | (0.30 | ) | (0.48 | ) | ||||||||||||||||||||||||||
20062 | 22.31 | 0.15 | 3.17 | 3.32 | (0.16 | ) | — | (0.16 | ) | |||||||||||||||||||||||||||
20053 | 22.72 | — | (0.40 | ) | (0.40 | ) | (0.01 | ) | — | (0.01 | ) | |||||||||||||||||||||||||
20054 | 20.66 | 0.18 | 2.06 | 2.24 | (0.18 | ) | — | (0.18 | ) | |||||||||||||||||||||||||||
20044 | 18.48 | 0.08 | 2.19 | 2.27 | (0.09 | ) | — | (0.09 | ) | |||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||
20082 | $ | 28.45 | $ | 0.24 | $ | (10.48 | ) | $ | (10.24 | ) | $ | (0.22 | ) | $ | (0.53 | ) | $ | (0.75 | ) | |||||||||||||||||
20072 | 25.62 | 0.17 | 3.14 | 3.31 | (0.18 | ) | (0.30 | ) | (0.48 | ) | ||||||||||||||||||||||||||
20062 | 22.44 | 0.15 | 3.19 | 3.34 | (0.16 | ) | — | (0.16 | ) | |||||||||||||||||||||||||||
20053 | 22.85 | — | (0.40 | ) | (0.40 | ) | (0.01 | ) | — | (0.01 | ) | |||||||||||||||||||||||||
20054 | 20.78 | 0.18 | 2.07 | 2.25 | (0.18 | ) | — | (0.18 | ) | |||||||||||||||||||||||||||
20044 | 18.59 | 0.08 | 2.20 | 2.28 | (0.09 | ) | — | (0.09 | ) | |||||||||||||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||||||||||
20082 | $ | 28.63 | $ | 0.35 | $ | (10.54 | ) | $ | (10.19 | ) | $ | (0.33 | ) | $ | (0.53 | ) | $ | (0.86 | ) | |||||||||||||||||
20072 | 25.77 | 0.29 | 3.17 | 3.46 | (0.30 | ) | (0.30 | ) | (0.60 | ) | ||||||||||||||||||||||||||
20062 | 22.57 | 0.26 | 3.21 | 3.47 | (0.27 | ) | — | (0.27 | ) | |||||||||||||||||||||||||||
20053 | 22.98 | 0.01 | (0.40 | ) | (0.39 | ) | (0.02 | ) | — | (0.02 | ) | |||||||||||||||||||||||||
20054 | 20.91 | 0.26 | 2.11 | 2.37 | (0.30 | ) | — | (0.30 | ) | |||||||||||||||||||||||||||
20044 | 18.70 | 0.23 | 2.20 | 2.43 | (0.22 | ) | — | (0.22 | ) | |||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||
20082 | $ | 28.66 | $ | 0.48 | $ | (10.56 | ) | $ | (10.08 | ) | $ | (0.44 | ) | $ | (0.53 | ) | $ | (0.97 | ) | |||||||||||||||||
20072 | 25.79 | 0.44 | 3.16 | 3.60 | (0.43 | ) | (0.30 | ) | (0.73 | ) | ||||||||||||||||||||||||||
20062 | 22.58 | 0.39 | 3.21 | 3.60 | (0.39 | ) | — | (0.39 | ) | |||||||||||||||||||||||||||
20053 | 22.99 | 0.02 | (0.41 | ) | (0.39 | ) | (0.02 | ) | — | (0.02 | ) | |||||||||||||||||||||||||
20054 | 20.91 | 0.40 | 2.08 | 2.48 | (0.40 | ) | — | (0.40 | ) | |||||||||||||||||||||||||||
20044 | 18.69 | 0.29 | 2.22 | 2.51 | (0.29 | ) | — | (0.29 | ) | |||||||||||||||||||||||||||
1 | Per share data calculated using average shares outstanding method. | |
2 | For the period November 1 to October 31 in the year indicated. | |
3 | For the period October 1, 2005 to October 31, 2005. Effective October 1, 2005, the fund’s fiscal year-end was changed from September 30 to October 31. All ratios for the period have been annualized, except total return and portfolio turnover. | |
4 | For the period October 1 to September 30 in the year indicated. | |
5 | Prior to July 1, 2004, Class R shares were named Class S shares, which had lower fees and expenses. | |
6 | Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived. |
The accompanying notes are an integral part of the financial statements.
44 First American Funds 2008 Annual Report
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Ratio of Net | |||||||||||||||||||||||||||||||||||||||||
Ratio of Net | Ratio of | Investment | |||||||||||||||||||||||||||||||||||||||
Investment | Expenses | Income (Loss) | |||||||||||||||||||||||||||||||||||||||
Net Asset | Ratio of | Income | to Average | to Average | |||||||||||||||||||||||||||||||||||||
Value | Net Assets | Expenses to | (Loss) | Net Assets | Net Assets | Portfolio | |||||||||||||||||||||||||||||||||||
End of | Total | End of | Average | to Average | (Excluding | (Excluding | Turnover | ||||||||||||||||||||||||||||||||||
Period | Return6 | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | ||||||||||||||||||||||||||||||||||
$ | 17.61 | (36.35 | )% | $ | 114,654 | 0.62 | % | 1.74 | % | 0.78 | % | 1.58 | % | 4 | % | ||||||||||||||||||||||||||
28.67 | 13.93 | 213,957 | 0.62 | 1.37 | 0.76 | 1.23 | 4 | ||||||||||||||||||||||||||||||||||
25.80 | 15.76 | 229,185 | 0.62 | 1.36 | 0.77 | 1.21 | 3 | ||||||||||||||||||||||||||||||||||
22.59 | (1.70 | ) | 234,629 | 0.62 | 0.69 | 0.79 | 0.52 | — | |||||||||||||||||||||||||||||||||
23.00 | 11.69 | 238,379 | 0.62 | 1.53 | 0.79 | 1.36 | 4 | ||||||||||||||||||||||||||||||||||
20.91 | 13.12 | 234,349 | 0.62 | 1.13 | 0.79 | 0.96 | 1 | ||||||||||||||||||||||||||||||||||
$ | 17.35 | (36.82 | )% | $ | 12,856 | 1.37 | % | 0.99 | % | 1.53 | % | 0.83 | % | 4 | % | ||||||||||||||||||||||||||
28.27 | 13.05 | 31,343 | 1.37 | 0.63 | 1.51 | 0.49 | 4 | ||||||||||||||||||||||||||||||||||
25.47 | 14.94 | 43,369 | 1.37 | 0.63 | 1.52 | 0.48 | 3 | ||||||||||||||||||||||||||||||||||
22.31 | (1.78 | ) | 56,097 | 1.37 | (0.06 | ) | 1.54 | (0.23 | ) | — | |||||||||||||||||||||||||||||||
22.72 | 10.86 | 58,857 | 1.37 | 0.79 | 1.54 | 0.62 | 4 | ||||||||||||||||||||||||||||||||||
20.66 | 12.31 | 69,828 | 1.37 | 0.38 | 1.54 | 0.21 | 1 | ||||||||||||||||||||||||||||||||||
$ | 17.46 | (36.83 | )% | $ | 9,784 | 1.37 | % | 0.99 | % | 1.53 | % | 0.83 | % | 4 | % | ||||||||||||||||||||||||||
28.45 | 13.09 | 19,585 | 1.37 | 0.62 | 1.51 | 0.48 | 4 | ||||||||||||||||||||||||||||||||||
25.62 | 14.93 | 20,714 | 1.37 | 0.62 | 1.52 | 0.47 | 3 | ||||||||||||||||||||||||||||||||||
22.44 | (1.78 | ) | 24,195 | 1.37 | (0.05 | ) | 1.54 | (0.22 | ) | — | |||||||||||||||||||||||||||||||
22.85 | 10.84 | 26,258 | 1.37 | 0.79 | 1.54 | 0.62 | 4 | ||||||||||||||||||||||||||||||||||
20.78 | 12.28 | 30,111 | 1.37 | 0.38 | 1.54 | 0.21 | 1 | ||||||||||||||||||||||||||||||||||
$ | 17.58 | (36.51 | )% | $ | 9,463 | 0.87 | % | 1.49 | % | 1.03 | % | 1.33 | % | 4 | % | ||||||||||||||||||||||||||
28.63 | 13.65 | 7,230 | 0.87 | 1.07 | 1.01 | 0.93 | 4 | ||||||||||||||||||||||||||||||||||
25.77 | 15.47 | 3,419 | 0.87 | 1.08 | 1.15 | 0.80 | 3 | ||||||||||||||||||||||||||||||||||
22.57 | (1.72 | ) | 1,715 | 0.87 | 0.44 | 1.19 | 0.12 | — | |||||||||||||||||||||||||||||||||
22.98 | 11.38 | 1,663 | 0.87 | 1.14 | 1.19 | 0.82 | 4 | ||||||||||||||||||||||||||||||||||
20.91 | 13.00 | 333 | 0.62 | 1.13 | 0.79 | 0.96 | 1 | ||||||||||||||||||||||||||||||||||
$ | 17.61 | (36.18 | )% | $ | 954,582 | 0.37 | % | 1.99 | % | 0.53 | % | 1.83 | % | 4 | % | ||||||||||||||||||||||||||
28.66 | 14.22 | 1,714,008 | 0.37 | 1.62 | 0.51 | 1.48 | 4 | ||||||||||||||||||||||||||||||||||
25.79 | 16.07 | 1,935,614 | 0.37 | 1.61 | 0.52 | 1.46 | 3 | ||||||||||||||||||||||||||||||||||
22.58 | (1.69 | ) | 1,882,517 | 0.37 | 0.94 | 0.54 | 0.77 | — | |||||||||||||||||||||||||||||||||
22.99 | 11.92 | 1,940,567 | 0.37 | 1.78 | 0.54 | 1.61 | 4 | ||||||||||||||||||||||||||||||||||
20.91 | 13.45 | 1,979,198 | 0.37 | 1.38 | 0.54 | 1.21 | 1 | ||||||||||||||||||||||||||||||||||
First American Funds 2008 Annual Report 45
Table of Contents
Financial Highlights For a share outstanding throughout the indicated periods.
Realized and | ||||||||||||||||||||||||||||||||||||
Net Asset | Unrealized | Distributions | ||||||||||||||||||||||||||||||||||
Value | Net | Gains | Total from | from Net | Distributions | |||||||||||||||||||||||||||||||
Beginning | Investment | (Losses) on | Investment | Investment | from Net | Total | ||||||||||||||||||||||||||||||
of Period | Income (Loss) | Investments | Operations | Income | Realized Gains | Distributions | ||||||||||||||||||||||||||||||
Mid Cap Index Fund1 | ||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||
20082 | $ | 15.69 | $ | 0.13 | $ | (5.30 | ) | $ | (5.17 | ) | $ | (0.10 | ) | $ | (1.59 | ) | $ | (1.69 | ) | |||||||||||||||||
20072 | 14.25 | 0.15 | 2.08 | 2.23 | (0.13 | ) | (0.66 | ) | (0.79 | ) | ||||||||||||||||||||||||||
20062 | 13.52 | 0.11 | 1.55 | 1.66 | (0.11 | ) | (0.82 | ) | (0.93 | ) | ||||||||||||||||||||||||||
20053 | 13.82 | — | (0.30 | ) | (0.30 | ) | — | — | — | |||||||||||||||||||||||||||
20054 | 11.84 | 0.09 | 2.40 | 2.49 | (0.09 | ) | (0.42 | ) | (0.51 | ) | ||||||||||||||||||||||||||
20044 | 10.36 | 0.05 | 1.67 | 1.72 | (0.05 | ) | (0.19 | ) | (0.24 | ) | ||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||
20082 | $ | 15.36 | $ | 0.04 | $ | (5.17 | ) | $ | (5.13 | ) | $ | (0.03 | ) | $ | (1.59 | ) | $ | (1.62 | ) | |||||||||||||||||
20072 | 13.98 | 0.04 | 2.03 | 2.07 | (0.03 | ) | (0.66 | ) | (0.69 | ) | ||||||||||||||||||||||||||
20062 | 13.28 | — | 1.53 | 1.53 | (0.01 | ) | (0.82 | ) | (0.83 | ) | ||||||||||||||||||||||||||
20053 | 13.59 | (0.01 | ) | (0.30 | ) | (0.31 | ) | — | — | — | ||||||||||||||||||||||||||
20054 | 11.67 | (0.01 | ) | 2.37 | 2.36 | (0.02 | ) | (0.42 | ) | (0.44 | ) | |||||||||||||||||||||||||
20044 | 10.25 | (0.03 | ) | 1.64 | 1.61 | — | (0.19 | ) | (0.19 | ) | ||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||
20082 | $ | 15.41 | $ | 0.04 | $ | (5.19 | ) | $ | (5.15 | ) | $ | (0.03 | ) | $ | (1.59 | ) | $ | (1.62 | ) | |||||||||||||||||
20072 | 14.03 | 0.04 | 2.03 | 2.07 | (0.03 | ) | (0.66 | ) | (0.69 | ) | ||||||||||||||||||||||||||
20062 | 13.32 | — | 1.55 | 1.55 | (0.02 | ) | (0.82 | ) | (0.84 | ) | ||||||||||||||||||||||||||
20053 | 13.63 | (0.01 | ) | (0.30 | ) | (0.31 | ) | — | — | — | ||||||||||||||||||||||||||
20054 | 11.70 | (0.01 | ) | 2.38 | 2.37 | (0.02 | ) | (0.42 | ) | (0.44 | ) | |||||||||||||||||||||||||
20044 | 10.28 | (0.03 | ) | 1.64 | 1.61 | — | (0.19 | ) | (0.19 | ) | ||||||||||||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||||||||||
20082 | $ | 15.60 | $ | 0.10 | $ | (5.27 | ) | $ | (5.17 | ) | $ | (0.08 | ) | $ | (1.59 | ) | $ | (1.67 | ) | |||||||||||||||||
20072 | 14.19 | 0.11 | 2.07 | 2.18 | (0.11 | ) | (0.66 | ) | (0.77 | ) | ||||||||||||||||||||||||||
20062 | 13.48 | 0.07 | 1.55 | 1.62 | (0.09 | ) | (0.82 | ) | (0.91 | ) | ||||||||||||||||||||||||||
20053 | 13.78 | — | (0.30 | ) | (0.30 | ) | — | — | — | |||||||||||||||||||||||||||
20054 | 11.83 | 0.04 | 2.41 | 2.45 | (0.08 | ) | (0.42 | ) | (0.50 | ) | ||||||||||||||||||||||||||
20044 | 10.36 | 0.06 | 1.65 | 1.71 | (0.05 | ) | (0.19 | ) | (0.24 | ) | ||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||
20082 | $ | 15.70 | $ | 0.17 | $ | (5.31 | ) | $ | (5.14 | ) | $ | (0.13 | ) | $ | (1.59 | ) | $ | (1.72 | ) | |||||||||||||||||
20072 | 14.27 | 0.19 | 2.07 | 2.26 | (0.17 | ) | (0.66 | ) | (0.83 | ) | ||||||||||||||||||||||||||
20062 | 13.53 | 0.15 | 1.56 | 1.71 | (0.15 | ) | (0.82 | ) | (0.97 | ) | ||||||||||||||||||||||||||
20053 | 13.83 | 0.01 | (0.31 | ) | (0.30 | ) | — | — | — | |||||||||||||||||||||||||||
20054 | 11.84 | 0.12 | 2.41 | 2.53 | (0.12 | ) | (0.42 | ) | (0.54 | ) | ||||||||||||||||||||||||||
20044 | 10.37 | 0.08 | 1.66 | 1.74 | (0.08 | ) | (0.19 | ) | (0.27 | ) | ||||||||||||||||||||||||||
1 | Per share data calculated using average shares outstanding method. | |
2 | For the period November 1 to October 31 in the fiscal year indicated. | |
3 | For the period October 1, 2005 to October 31, 2005. Effective in 2005, the fund’s fiscal year end was changed from September 30 to October 31. All ratios for the period have been annualized, except total return and portfolio turnover. | |
4 | For the period October 1 to September 30 in the 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.
46 First American Funds 2008 Annual Report
Table of Contents
Ratio of | Ratio of Net | ||||||||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses | Investment | |||||||||||||||||||||||||||||||||||||||
Net Asset | Ratio of | Investment | to Average | Income (Loss) | |||||||||||||||||||||||||||||||||||||
Value | Net Assets | Expenses to | Income (Loss) | Net Assets | to Average | Portfolio | |||||||||||||||||||||||||||||||||||
End of | Total | End of | Average | to Average | (Excluding | Net Assets | Turnover | ||||||||||||||||||||||||||||||||||
Period | Return6 | Period (000) | Net Assets | Net Assets | Waivers) | (Excluding Waivers) | Rate | ||||||||||||||||||||||||||||||||||
$ | 8.83 | (36.46 | )% | $ | 11,374 | 0.74 | % | 1.04 | % | 0.84 | % | 0.94 | % | 15 | % | ||||||||||||||||||||||||||
15.69 | 16.32 | 17,868 | 0.75 | 1.02 | 0.81 | 0.96 | 15 | ||||||||||||||||||||||||||||||||||
14.25 | 12.70 | 14,722 | 0.75 | 0.77 | 0.81 | 0.71 | 7 | ||||||||||||||||||||||||||||||||||
13.52 | (2.17 | ) | 14,318 | 0.75 | 0.26 | 0.80 | 0.21 | 1 | |||||||||||||||||||||||||||||||||
13.82 | 21.43 | 14,827 | 0.75 | 0.68 | 0.82 | 0.61 | 15 | ||||||||||||||||||||||||||||||||||
11.84 | 16.80 | 11,987 | 0.75 | 0.47 | 0.80 | 0.42 | 14 | ||||||||||||||||||||||||||||||||||
$ | 8.61 | (36.90 | )% | $ | 1,140 | 1.48 | % | 0.29 | % | 1.58 | % | 0.19 | % | 15 | % | ||||||||||||||||||||||||||
15.36 | 15.41 | 2,248 | 1.50 | 0.32 | 1.56 | 0.26 | 15 | ||||||||||||||||||||||||||||||||||
13.98 | 11.87 | 2,678 | 1.50 | 0.03 | 1.56 | (0.03 | ) | 7 | |||||||||||||||||||||||||||||||||
13.28 | (2.28 | ) | 3,485 | 1.50 | (0.49 | ) | 1.55 | (0.54 | ) | 1 | |||||||||||||||||||||||||||||||
13.59 | 20.57 | 3,546 | 1.50 | (0.08 | ) | 1.57 | (0.15 | ) | 15 | ||||||||||||||||||||||||||||||||
11.67 | 15.88 | 3,133 | 1.50 | (0.27 | ) | 1.55 | (0.32 | ) | 14 | ||||||||||||||||||||||||||||||||
$ | 8.64 | (36.91 | )% | $ | 3,101 | 1.48 | % | 0.30 | % | 1.58 | % | 0.20 | % | 15 | % | ||||||||||||||||||||||||||
15.41 | 15.39 | 5,287 | 1.50 | 0.28 | 1.56 | 0.22 | 15 | ||||||||||||||||||||||||||||||||||
14.03 | 11.96 | 4,320 | 1.50 | 0.02 | 1.56 | (0.04 | ) | 7 | |||||||||||||||||||||||||||||||||
13.32 | (2.27 | ) | 3,388 | 1.50 | (0.49 | ) | 1.55 | (0.54 | ) | 1 | |||||||||||||||||||||||||||||||
13.63 | 20.60 | 3,533 | 1.50 | (0.08 | ) | 1.57 | (0.15 | ) | 15 | ||||||||||||||||||||||||||||||||
11.70 | 15.83 | 2,653 | 1.50 | (0.27 | ) | 1.55 | (0.32 | ) | 14 | ||||||||||||||||||||||||||||||||
$ | 8.76 | (36.66 | )% | $ | 8,157 | 1.00 | % | 0.80 | % | 1.10 | % | 0.70 | % | 15 | % | ||||||||||||||||||||||||||
15.60 | 16.01 | 5,913 | 1.00 | 0.78 | 1.06 | 0.72 | 15 | ||||||||||||||||||||||||||||||||||
14.19 | 12.40 | 4,032 | 1.00 | 0.47 | 1.17 | 0.30 | 7 | ||||||||||||||||||||||||||||||||||
13.48 | (2.18 | ) | 131 | 1.00 | 0.01 | 1.20 | (0.19 | ) | 1 | ||||||||||||||||||||||||||||||||
13.78 | 21.09 | 122 | 1.00 | 0.28 | 1.22 | 0.06 | 15 | ||||||||||||||||||||||||||||||||||
11.83 | 16.62 | 1 | 0.75 | 0.49 | 0.80 | 0.44 | 14 | ||||||||||||||||||||||||||||||||||
$ | 8.84 | (36.31 | )% | $ | 177,038 | 0.49 | % | 1.29 | % | 0.59 | % | 1.19 | % | 15 | % | ||||||||||||||||||||||||||
15.70 | 16.52 | 333,784 | 0.50 | 1.29 | 0.56 | 1.23 | 15 | ||||||||||||||||||||||||||||||||||
14.27 | 13.05 | 333,636 | 0.50 | 1.03 | 0.56 | 0.97 | 7 | ||||||||||||||||||||||||||||||||||
13.53 | (2.17 | ) | 342,072 | 0.50 | 0.51 | 0.55 | 0.46 | 1 | |||||||||||||||||||||||||||||||||
13.83 | 21.82 | 353,354 | 0.50 | 0.92 | 0.57 | 0.85 | 15 | ||||||||||||||||||||||||||||||||||
11.84 | 16.97 | 313,403 | 0.50 | 0.73 | 0.55 | 0.68 | 14 | ||||||||||||||||||||||||||||||||||
First American Funds 2008 Annual Report 47
Table of Contents
Financial Highlights For a share outstanding throughout the indicated periods.
Realized and | ||||||||||||||||||||||||||||||||||||
Net Asset | Unrealized | Distributions | ||||||||||||||||||||||||||||||||||
Value | Net | Gains or | Total from | from Net | Distributions | |||||||||||||||||||||||||||||||
Beginning | Investment | (Losses) on | Investment | Investment | from Net | Total | ||||||||||||||||||||||||||||||
of Period | Income (Loss) | Investments | Operations | Income | Realized Gains | Distributions | ||||||||||||||||||||||||||||||
Small Cap Index Fund1 | ||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||
20082 | $ | 15.37 | $ | 0.13 | $ | (4.88 | ) | $ | (4.75 | ) | $ | (0.10 | ) | $ | (1.61 | ) | $ | (1.71 | ) | |||||||||||||||||
20072 | 16.23 | 0.14 | 1.13 | 1.27 | (0.12 | ) | (2.01 | ) | (2.13 | ) | ||||||||||||||||||||||||||
20062 | 14.12 | 0.07 | 2.56 | 2.63 | (0.10 | ) | (0.42 | ) | (0.52 | ) | ||||||||||||||||||||||||||
20053 | 14.57 | — | (0.45 | ) | (0.45 | ) | — | — | — | |||||||||||||||||||||||||||
20054 | 13.38 | 0.07 | 2.17 | 2.24 | (0.06 | ) | (0.99 | ) | (1.05 | ) | ||||||||||||||||||||||||||
20044 | 11.47 | 0.04 | 1.98 | 2.02 | (0.03 | ) | (0.08 | ) | (0.11 | ) | ||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||
20082 | $ | 14.86 | $ | 0.04 | $ | (4.70 | ) | $ | (4.66 | ) | $ | (0.03 | ) | $ | (1.61 | ) | $ | (1.64 | ) | |||||||||||||||||
20072 | 15.77 | 0.03 | 1.09 | 1.12 | (0.02 | ) | (2.01 | ) | (2.03 | ) | ||||||||||||||||||||||||||
20062 | 13.76 | (0.04 | ) | 2.48 | 2.44 | (0.01 | ) | (0.42 | ) | (0.43 | ) | |||||||||||||||||||||||||
20053 | 14.21 | (0.01 | ) | (0.44 | ) | (0.45 | ) | — | — | — | ||||||||||||||||||||||||||
20054 | 13.15 | (0.03 | ) | 2.08 | 2.05 | — | (0.99 | ) | (0.99 | ) | ||||||||||||||||||||||||||
20044 | 11.33 | (0.06 | ) | 1.96 | 1.90 | — | (0.08 | ) | (0.08 | ) | ||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||
20082 | $ | 15.02 | $ | 0.04 | $ | (4.76 | ) | $ | (4.72 | ) | $ | (0.03 | ) | $ | (1.61 | ) | $ | (1.64 | ) | |||||||||||||||||
20072 | 15.92 | 0.03 | 1.10 | 1.13 | (0.02 | ) | (2.01 | ) | (2.03 | ) | ||||||||||||||||||||||||||
20062 | 13.88 | (0.04 | ) | 2.51 | 2.47 | (0.01 | ) | (0.42 | ) | (0.43 | ) | |||||||||||||||||||||||||
20053 | 14.34 | (0.01 | ) | (0.45 | ) | (0.46 | ) | — | — | — | ||||||||||||||||||||||||||
20054 | 13.26 | (0.03 | ) | 2.10 | 2.07 | — | (0.99 | ) | (0.99 | ) | ||||||||||||||||||||||||||
20044 | 11.43 | (0.06 | ) | 1.97 | 1.91 | — | (0.08 | ) | (0.08 | ) | ||||||||||||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||||||||||
20082 | $ | 15.16 | $ | 0.10 | $ | (4.81 | ) | $ | (4.71 | ) | $ | (0.08 | ) | $ | (1.61 | ) | $ | (1.69 | ) | |||||||||||||||||
20072 | 16.04 | 0.11 | 1.11 | 1.22 | (0.09 | ) | (2.01 | ) | (2.10 | ) | ||||||||||||||||||||||||||
20062 | 13.97 | 0.03 | 2.53 | 2.56 | (0.07 | ) | (0.42 | ) | (0.49 | ) | ||||||||||||||||||||||||||
20053 | 14.43 | — | (0.46 | ) | (0.46 | ) | — | — | — | |||||||||||||||||||||||||||
20054 | 13.31 | 0.04 | 2.11 | 2.15 | (0.04 | ) | (0.99 | ) | (1.03 | ) | ||||||||||||||||||||||||||
20044 | 11.41 | 0.03 | 1.97 | 2.00 | (0.02 | ) | (0.08 | ) | (0.10 | ) | ||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||
20082 | $ | 15.37 | $ | 0.16 | $ | (4.88 | ) | $ | (4.72 | ) | $ | (0.12 | ) | $ | (1.61 | ) | $ | (1.73 | ) | |||||||||||||||||
20072 | 16.23 | 0.18 | 1.13 | 1.31 | (0.16 | ) | (2.01 | ) | (2.17 | ) | ||||||||||||||||||||||||||
20062 | 14.12 | 0.11 | 2.55 | 2.66 | (0.13 | ) | (0.42 | ) | (0.55 | ) | ||||||||||||||||||||||||||
20053 | 14.57 | 0.01 | (0.46 | ) | (0.45 | ) | — | — | — | |||||||||||||||||||||||||||
20054 | 13.43 | 0.11 | 2.12 | 2.23 | (0.10 | ) | (0.99 | ) | (1.09 | ) | ||||||||||||||||||||||||||
20044 | 11.51 | 0.07 | 1.99 | 2.06 | (0.06 | ) | (0.08 | ) | (0.14 | ) | ||||||||||||||||||||||||||
1 | Per share data calculated using average shares outstanding method. | |
2 | For the period November 1 to October 31 in the year indicated. | |
3 | For the period October 1, 2005 to October 31, 2005. Effective in 2005, the Fund’s fiscal year-end was changed from September 30 to October 31. All ratios for the period have been annualized, except total return and portfolio turnover. | |
4 | For the period October 1 to September 30 in the year indicated. | |
5 | Prior to July 1, 2004, Class R shares were named Class S shares, which had lower fees and expenses. | |
6 | Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived. |
The accompanying notes are an integral part of the financial statements.
48 First American Funds 2008 Annual Report
Table of Contents
Ratio of | Ratio of Net | ||||||||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses | Investment | |||||||||||||||||||||||||||||||||||||||
Net Asset | Ratio of | Investment | to Average | Income (Loss) | |||||||||||||||||||||||||||||||||||||
Value | Net Assets | Expenses to | Income (Loss) | Net Assets | to Average | Portfolio | |||||||||||||||||||||||||||||||||||
End of | Total | End of | Average | to Average | (Excluding | Net Assets | Turnover | ||||||||||||||||||||||||||||||||||
Period | Return6 | Period (000) | Net Assets | Net Assets | Waivers) | (Excluding Waivers) | Rate | ||||||||||||||||||||||||||||||||||
$ | 8.91 | (34.15 | )% | $ | 6,043 | 0.82 | % | 1.09 | % | 1.31 | % | 0.60 | % | 19 | % | ||||||||||||||||||||||||||
15.37 | 8.56 | 9,109 | 0.83 | 0.92 | 1.12 | 0.63 | 12 | ||||||||||||||||||||||||||||||||||
16.23 | 19.02 | 10,639 | 0.83 | 0.47 | 1.08 | 0.22 | 17 | ||||||||||||||||||||||||||||||||||
14.12 | (3.09 | ) | 10,067 | 0.83 | 0.27 | 1.01 | 0.09 | — | |||||||||||||||||||||||||||||||||
14.57 | 17.08 | 10,323 | 0.90 | 0.53 | 1.03 | 0.40 | 23 | ||||||||||||||||||||||||||||||||||
13.38 | 17.71 | 8,749 | 0.93 | 0.30 | 1.02 | 0.21 | 25 | ||||||||||||||||||||||||||||||||||
$ | 8.56 | (34.64 | )% | $ | 685 | 1.57 | % | 0.33 | % | 2.06 | % | (0.16 | )% | 19 | % | ||||||||||||||||||||||||||
14.86 | 7.78 | 1,245 | 1.58 | 0.17 | 1.87 | (0.12 | ) | 12 | |||||||||||||||||||||||||||||||||
15.77 | 18.07 | 1,333 | 1.58 | (0.28 | ) | 1.83 | (0.53 | ) | 17 | ||||||||||||||||||||||||||||||||
13.76 | (3.17 | ) | 1,498 | 1.58 | (0.48 | ) | 1.76 | (0.66 | ) | — | |||||||||||||||||||||||||||||||
14.21 | 15.82 | 1,555 | 1.65 | (0.23 | ) | 1.78 | (0.36 | ) | 23 | ||||||||||||||||||||||||||||||||
13.15 | 16.83 | 1,494 | 1.68 | (0.46 | ) | 1.77 | (0.55 | ) | 25 | ||||||||||||||||||||||||||||||||
$ | 8.66 | (34.67 | )% | $ | 1,531 | 1.57 | % | 0.34 | % | 2.06 | % | (0.15 | )% | 19 | % | ||||||||||||||||||||||||||
15.02 | 7.78 | 2,916 | 1.58 | 0.17 | 1.87 | (0.12 | ) | 12 | |||||||||||||||||||||||||||||||||
15.92 | 18.15 | 2,662 | 1.58 | (0.28 | ) | 1.83 | (0.53 | ) | 17 | ||||||||||||||||||||||||||||||||
13.88 | (3.21 | ) | 2,068 | 1.58 | (0.48 | ) | 1.76 | (0.66 | ) | — | |||||||||||||||||||||||||||||||
14.34 | 15.84 | 2,256 | 1.65 | (0.23 | ) | 1.78 | (0.36 | ) | 23 | ||||||||||||||||||||||||||||||||
13.26 | 16.77 | 1,939 | 1.68 | (0.46 | ) | 1.77 | (0.55 | ) | 25 | ||||||||||||||||||||||||||||||||
$ | 8.76 | (34.33 | )% | $ | 1,121 | 1.08 | % | 0.87 | % | 1.57 | % | 0.38 | % | 19 | % | ||||||||||||||||||||||||||
15.16 | 8.34 | 703 | 1.08 | 0.71 | 1.37 | 0.43 | 12 | ||||||||||||||||||||||||||||||||||
16.04 | 18.75 | 280 | 1.08 | 0.23 | 1.47 | (0.16 | ) | 17 | |||||||||||||||||||||||||||||||||
13.97 | (3.19 | ) | 23 | 1.08 | 0.02 | 1.41 | (0.31 | ) | — | ||||||||||||||||||||||||||||||||
14.43 | 16.45 | 11 | 1.15 | 0.30 | 1.43 | 0.02 | 23 | ||||||||||||||||||||||||||||||||||
13.31 | 17.65 | 1 | 0.93 | 0.24 | 0.99 | 0.18 | 25 | ||||||||||||||||||||||||||||||||||
$ | 8.92 | (33.95 | )% | $ | 54,932 | 0.57 | % | 1.33 | % | 1.06 | % | 0.84 | % | 19 | % | ||||||||||||||||||||||||||
15.37 | 8.84 | 114,343 | 0.58 | 1.16 | 0.87 | 0.87 | 12 | ||||||||||||||||||||||||||||||||||
16.23 | 19.32 | 135,802 | 0.58 | 0.72 | 0.83 | 0.47 | 17 | ||||||||||||||||||||||||||||||||||
14.12 | (3.09 | ) | 153,572 | 0.58 | 0.52 | 0.76 | 0.34 | — | |||||||||||||||||||||||||||||||||
14.57 | 16.93 | 164,156 | 0.65 | 0.78 | 0.78 | 0.65 | 23 | ||||||||||||||||||||||||||||||||||
13.43 | 18.02 | 156,411 | 0.68 | 0.54 | 0.77 | 0.45 | 25 | ||||||||||||||||||||||||||||||||||
First American Funds 2008 Annual Report 49
Table of Contents
Notes toFinancial Statements | October 31, 2008, all dollars and shares are rounded to thousands (000) |
1 > | Organization |
Equity Index Fund, Mid Cap Index Fund, and Small Cap Index Fund (each a “fund” and collectively, the “funds”) are mutual funds offered by First American Investment Funds, Inc. (“FAIF”), which is a member of the First American Family of Funds. As of October 31, 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. Equity Index Fund, Mid Cap Index Fund, and Small Cap Index Fund are each diversified open-end management investment companies.
FAIF offers Class A, Class C, Class R, and Class Y shares. Class A shares are sold with a front-end sales charge. Class C shares may be subject to a contingent deferred sales charge for 12 months. Class R shares have no sales charge and are offered only through certain tax-deferred retirement plans. Class Y shares have no sales charge and are offered only to qualifying institutional investors and certain other qualifying accounts. Prior to the close of business on June 30, 2008, each fund offered Class B shares. Subsequent to 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 of a fund have identical voting, dividend, liquidation, and other rights, and the same terms and conditions, except that certain fees and expenses, including distribution and shareholder servicing fees, may differ among classes. Each class has exclusive voting rights on any matters relating to that class’s servicing or distribution arrangements.
2 > | Summary of Significant Accounting Policies |
The significant accounting policies followed by the funds are as follows:
SECURITY VALUATIONS – Security valuations for the funds’ investments are furnished by an independent pricing service that has been approved by the funds’ board of directors. Investments in equity securities that are traded on a national securities exchange (or reported on the Nasdaq national market system) are stated at the last quoted sales price if readily available for such securities on each business day. For securities traded on the Nasdaq national market system, the funds utilize the Nasdaq Official Closing Price which compares the last trade to the bid/ask range of a security. If the last trade falls within the bid/ask range, then that price will be the closing price. If the last trade is outside the bid/ask range, and falls above the ask, then the ask will be the closing price. If the last trade is below the bid, then the bid will be the closing price. Other equity securities traded in the over-the-counter market and listed equity securities for which no sale was reported on that date are stated at the last quoted bid price. Investments in open-end mutual funds are valued at their respective net asset values on the valuation date.
Debt obligations exceeding 60 days to maturity are valued by an independent pricing service. The pricing service may employ methodologies that utilize actual market transactions, broker-dealer supplied valuations, or other formula-driven valuation techniques. These techniques generally consider such factors as yields or prices of bonds of comparable quality, type of issue, coupon, maturity, ratings, and general market conditions. Securities for which prices are not available from an independent pricing service, but where an active market exists, are valued using market quotations obtained from one or more dealers that make markets in the securities or from a widely-used quotation system. Debt obligations with 60 days or less remaining until maturity may be valued at their amortized cost, which approximates market value.
The following investment vehicles, when held by a fund, are priced as follows: Exchange listed futures and options on futures are priced at their last sale price on the exchange on which they are principally traded, as determined by FAF Advisors, 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 currency forward contracts), swaps, and over-the-counter options on securities, indices, and currencies are valued at the quotations received from an independent pricing service, if available.
When market quotations are not readily available, securities are valued at fair value as determined in good faith by procedures established and approved by the funds’ board of directors. Some of the factors which may be considered in determining fair value are fundamental analytical data relating to the investment; the nature and duration of any restrictions on disposition; 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
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trading on the New York Stock Exchange, the securities will be valued at fair value. As of October 31, 2008, Mid Cap Index Fund and Small Cap Index Fund held fair valued securities with a total market value of $0 or 0% of each fund’s 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 security on the transaction date.
DISTRIBUTIONS TO SHAREHOLDERS – Distributions from net investment income are declared and paid annually for Mid Cap Index Fund and Small Cap Index Fund and quarterly for Equity Index Fund. Distributions are payable in cash or reinvested in additional shares of the fund. Any net realized capital gains on sales of a fund’s securities are distributed to shareholders at least annually.
FEDERAL TAXES – Each fund is treated as a separate taxable entity. Each fund intends to continue to qualify as a regulated investment company as provided in Subchapter M of the Internal Revenue Code, as amended, and to distribute all taxable income, if any, to its shareholders. Accordingly, no provision for federal income taxes is required.
Financial Accounting Standards Board (“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 October 31, 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 tax returns filed for the last three years.
Net investment income and net realized gains (losses) may differ for financial statement and tax purposes because of temporary or permanent book-to-tax differences. These differences are primarily due to losses deferred from wash sales, the tax recognition of mark to market gains (losses) on open futures contracts, proceeds from securities litigation, and the sale of real estate investment trust securities (“REITs”). To the extent these differences are permanent, reclassifications are made to the appropriate equity accounts in the period in which the differences arise.
On the Statements of Assets and Liabilities the following reclassifications were made:
Accumulated | Undistributed | |||||||||||
Net Realized | Net Investment | Portfolio | ||||||||||
Fund | Gain (Loss) | Income | Capital | |||||||||
Equity Index Fund | $ | (31,367 | ) | $ | (468 | ) | $ | 31,835 | ||||
Mid Cap Index Fund | (915 | ) | (284 | ) | 1,199 | |||||||
Small Cap Index Fund | (1,625 | ) | (85 | ) | 1,710 | |||||||
The character of distributions paid during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. In addition, due to the timing of dividend distributions, the fiscal period or year in which the amounts are distributed may differ from the period or year that the income or realized gains (losses) are recorded by the fund. The tax character of distributions paid during the fiscal years ended October 31, 2008 and October 31, 2007, were as follows:
October 31, 2008 | ||||||||||||
Ordinary | Long Term | |||||||||||
Fund | Income | Gain | Total | |||||||||
Equity Index Fund | $ | 29,606 | $ | 35,841 | $ | 65,447 | ||||||
Mid Cap Index Fund | 3,585 | 34,722 | 38,307 | |||||||||
Small Cap Index Fund | 1,739 | 10,901 | 12,640 | |||||||||
October 31, 2007 | ||||||||||||
Ordinary | Long Term | |||||||||||
Fund | Income | Gain | Total | |||||||||
Equity Index Fund | $ | 31,624 | $ | 23,508 | $ | 55,132 | ||||||
Mid Cap Index Fund | 4,340 | 16,502 | 20,842 | |||||||||
Small Cap Index Fund | 2,149 | 18,090 | 20,239 | |||||||||
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Notes toFinancial Statements | October 31, 2008, all dollars and shares are rounded to thousands (000) |
As of October 31, 2008, the components of accumulated earnings (deficit) on a tax basis were as follows:
Accumulated | ||||||||||||||||||||
Undistributed | Undistributed | Capital and | Total | |||||||||||||||||
Ordinary | Long Term | Post October | Unrealized | Accumulated | ||||||||||||||||
Fund | Income | Capital Gains | Losses | Appreciation | Earnings (Deficit) | |||||||||||||||
Equity Index Fund | $ | 2,298 | $ | — | $ | (3,675 | ) | $ | 157,506 | $ | 156,129 | |||||||||
Mid Cap Index Fund | 815 | 11,208 | — | (37,809 | ) | (25,786 | ) | |||||||||||||
Small Cap Index Fund | 287 | 7,475 | — | (10,169 | ) | (2,407 | ) | |||||||||||||
The differences between book and tax basis unrealized appreciation (depreciation) are primarily due to the tax deferral of losses on wash sales and the amount of gain (loss) recognized for tax purposes due to mark-to-market adjustments on open futures contracts.
As of October 31, 2008 Equity Index Fund had capital loss carryforwards of $3,675 which if not offset by subsequent capital gains, will expire in 2016.
FUTURES TRANSACTIONS – In order to gain exposure to or protect against changes in the market, maintain sufficient liquidity to meet redemption requests, and increase the level of fund assets devoted to replicating the composition of the S&P and Russell indices while reducing transaction costs, the funds may enter into S&P and Russell Index futures contracts and other stock index futures contracts. Upon entering into a futures contract, the fund is required to deposit cash or pledge U.S. government securities. The margin required for a futures contract is set by the exchange on which the contract is traded. Subsequent payments, which are dependent on the daily fluctuations in the value of the underlying security or securities, are made or received by the fund each day (daily variation margin) and are recorded as unrealized gains (losses) until the contract is closed. When the contract is closed, the fund records a realized gain (loss) equal to the difference between the proceeds from (or cost of) the closing transaction and the fund’s basis in the contract.
Risks of entering into futures contracts, in general, include the possibility that there will not be a perfect price correlation between the futures contracts and the underlying securities. Second, it is possible that a lack of liquidity for futures contracts could exist in the secondary market, resulting in an inability to close a futures position prior to its maturity date. Third, the purchase of a futures contract involves the risk that a fund could lose more than the original margin deposit required to initiate a futures transaction. These contracts involve market risk in excess of the amount reflected in the fund’s statement of assets and liabilities. Unrealized gains (losses) on outstanding positions in futures contracts held at the close of the year will be recognized as capital gains (losses) for federal income tax purposes.
The funds’ outstanding futures contracts as of October 31, 2008, are disclosed in the Schedule of Investments.
ILLIQUID OR RESTRICTED SECURITIES – A security may be considered illiquid if it lacks a readily available market. Securities are generally considered liquid if they can be sold or disposed of in the ordinary course of business within seven days at approximately the price at which the security is valued by the fund. Illiquid securities may be valued under methods approved by the funds’ board of directors as reflecting fair value. Each fund intends to invest no more than 15% of its net assets (determined at the time of purchase and reviewed periodically) in illiquid securities. Certain restricted securities may be considered illiquid. Restricted securities are often purchased in private placement transactions, are not registered under the Securities Act of 1933, may have contractual restrictions on resale, and may be valued under methods approved by the funds’ board of directors as reflecting fair value. Certain restricted securities eligible for resale to qualified institutional investors, including Rule 144A securities, are not subject to the limitation on a fund’s investment in illiquid securities if they are determined to be liquid in accordance with procedures adopted by the funds’ board of directors. At October 31, 2008, Mid Cap Index Fund and Small Cap Index Fund had investments in illiquid securities with a total value of $0 and $0 or 0% and 0%, respectively, of total net assets.
Information concerning illiquid securities, including restricted securities considered to be illiquid, is as follows:
Date | Cost | |||||||||||
Mid Cap Index Fund | Shares | Acquired | Basis | |||||||||
Travelcenters, Fractional Share | —* | 10/01 | $ | — | ||||||||
Dates | Cost | |||||||||||
Small Cap Index Fund | Shares | Acquired | Basis | |||||||||
FirstBank, Fractional Share | — | * | 8/05 | $ | — | |||||||
Greenhunter Energy, Warrants | — | * | 8/08 | — | ||||||||
Lantronix, Warrants | — | * | 5/08 | — | ||||||||
National Penn, Fractional Share | — | * | 10/05 | — | ||||||||
Pegasus Wireless, Warrants | 1 | 6/06 | — | |||||||||
* | Due to the presentation of the financial statements in thousands, the number rounds to zero. |
SECURITIES LENDING – In order to generate additional income, each fund may lend securities representing up to one-third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks, or other institutional borrowers of securities. Each fund’s policy is to receive collateral from the borrower in the
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form of cash, U.S. government securities, or other high-grade debt obligations equal to at least 100% of the value of securities loaned. If the value of the securities on loan increases, additional collateral is received from the borrower. As with other extensions of credit, there may be risks of delay in recovery of the securities or even loss of rights in the collateral should the borrower of the security fail financially.
U.S. Bank National Association (“U.S. Bank”), the parent company of the funds’ advisor, serves as the securities lending agent for the funds in transactions involving the lending of portfolio securities on behalf of the funds. U.S. Bank acts as the securities lending agent pursuant to, and subject to compliance with conditions contained in, an exemptive order issued by the Securities and Exchange Commission (“SEC”). U.S. Bank receives fees as a percentage of each fund’s net income from securities lending transactions. Collateral for securities on loan is invested in a money market fund administered by FAF Advisors and FAF Advisors receives an administration fee equal to 0.02% of such money market fund’s average daily net assets. Securities lending fees paid to U.S. Bank by the funds during the fiscal year ended October 31, 2008, were as follows:
Fund | Amount | |||
Equity Index Fund | $ | 777 | ||
Mid Cap Index Fund | 258 | |||
Small Cap Index Fund | 127 | |||
Each fund’s income from securities lending is recorded on the Statement of Operations as securities lending income net of fees paid to U.S. Bank.
SECURITY LITIGATION SETTLEMENTS – Income from settlement proceeds related to portfolio securities no longer included in the portfolio is recorded as an adjustment to realized gains or losses when cash is received. Adjustments made during the fiscal year ended October 31, 2008, were as follows:
Fund | Amount | |||
Equity Index Fund | $ | 336 | ||
Mid Cap Index Fund | 50 | |||
Small Cap Index Fund | 646 | |||
EXPENSES – Expenses that are directly related to one of the funds are charged directly to that fund. Other operating expenses are allocated to the funds on several bases, including evenly across all funds, allocated based on relative net assets of all funds within the First American Family of Funds, or a combination of both methods. Class specific expenses, such as distribution fees and shareholder servicing fees, are borne by that class. Income, other expenses, and realized and unrealized gains and losses of a fund are allocated to each respective class in proportion to the relative net assets of each class.
INTERFUND LENDING PROGRAM – Pursuant to an exemptive order issued by the SEC, the funds, along with other registered investment companies in the First American Family of Funds, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating funds. The funds did not have any interfund lending transactions during the fiscal year ended October 31, 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 open-end First American Funds, preselected by each director. All amounts in the Plan are 100% vested and accounts under the Plan are obligations of the funds. Deferred amounts remain in the funds until distributed in accordance with the Plan.
USE OF ESTIMATES IN PREPARATION OF FINANCIAL STATEMENTS – The preparation of financial statements, in conformity with U.S. generally accepted accounting principles, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported results of operations during the reporting period. Actual results could differ from those estimates.
3 > | Fees and Expenses |
INVESTMENT ADVISORY FEES – Pursuant to an investment advisory agreement (the “Agreement”), FAF Advisors manages each fund’s assets and furnishes related office facilities, equipment, research, and personnel. The Agreement requires each fund to pay FAF Advisors a monthly fee based upon average daily net assets. The annual fee for Equity Index Fund, Mid Cap Index Fund, and Small Cap Index Fund is 0.25%, 0.25%, and 0.40%, respectively. FAF Advisors has agreed to waive fees and reimburse other fund expenses through June 30, 2009, so that total fund operating expenses, excluding acquired fund fees and expenses, as a percentage of average daily net assets, do not exceed the following amounts:
Share Class | ||||||||||||||||||||||
Fund | A | B | C | R | Y | |||||||||||||||||
Equity Index Fund | 0.62 | % | 1.37 | % | 1.37 | % | 0.87 | % | 0.37 | % | ||||||||||||
Mid Cap Index Fund | 0.75 | 1.50 | 1.50 | 1.00 | 0.50 | |||||||||||||||||
Small Cap Index Fund | 0.83 | 1.58 | 1.58 | 1.08 | 0.58 | |||||||||||||||||
The funds may invest in related money market funds that are series of First American Funds, Inc., subject to certain limitations. In order to avoid the payment of duplicative investment advisory fees to FAF Advisors, which acts as the investment advisor to both the investing funds and the related money market funds, FAF Advisors will reimburse each investing fund an amount equal to that portion of FAF Advisors’ investment advisory fee received from the
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Notes toFinancial Statements October 31, 2008, all dollars and shares are rounded to thousands (000)
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 funds’ custodian pursuant to a custodian agreement with FAIF. The custodian fee charged for each fund is equal to an annual rate of 0.005% of average daily net assets. All fees are computed daily and paid monthly.
Under the custodian agreement, interest earned on uninvested cash balances is used to reduce a portion of each fund’s custodian expenses. These credits, if any, are disclosed as “Indirect payments from the custodian” in the Statement of Operations. Conversely, the custodian charges a fee for any cash overdrafts incurred, which will increase the fund’s custodian expenses. For the fiscal year ended October 31, 2008, custodian fees for Equity Index Fund, Mid Cap Index Fund, and Small Cap Index Fund were increased by $1, $0, $1, respectively, as a result of overdrafts and decreased by $3, $2, and $0, respectively, as a result of interest earned.
DISTRIBUTION AND SHAREHOLDER SERVICING (12B-1) FEES – Quasar Distributors, LLC (“Quasar”), a subsidiary of U.S. Bancorp, serves as distributor of the funds pursuant to a distribution agreement with FAIF. Under the distribution agreement, and pursuant to a plan adopted by each fund under rule 12b-1 of the Investment Company Act, each fund pays Quasar a monthly distribution and/or shareholder servicing fee equal to an annual rate of 0.25%, 1.00%, 1.00% and 0.50% of each fund’s average daily net assets attributable to Class A, Class B, Class C, and Class R shares, respectively. Class Y shares pay no distribution or shareholder servicing fees. These fees may be used by Quasar to provide compensation for sales support, distribution activities, and/or shareholder servicing activities.
Under the distribution agreement, the following amounts were retained by affiliates of FAF Advisors for the fiscal year ended October 31, 2008:
Fund | Amount | |||
Equity Index Fund | $ | 280 | ||
Mid Cap Index Fund | 33 | |||
Small Cap Index Fund | 12 | |||
OTHER FEES AND EXPENSES – In addition to investment advisory fees, administration fees, transfer agent fees, custodian fees, and distribution and shareholder servicing fees, each fund is responsible for paying most other operating expenses including: legal, auditing, registration fees, postage and printing of shareholder reports, fees and expenses of independent directors, insurance, and other miscellaneous expenses. For the fiscal year ended October 31, 2008, legal fees and expenses of $16 were paid to a law firm of which an Assistant Secretary of the funds is a partner.
CONTINGENT DEFERRED SALES CHARGES – A contingent deferred sales charge (“CDSC”) is imposed on redemptions made in Class B shares. The CDSC varies depending on the number of years from time of payment for the purchase of Class B shares until the redemption of such shares. Class B shares automatically convert to Class A shares after eight years.
CDSC as a Percentage | ||||||
of Dollar Amount | ||||||
Year Since Purchase | Subject to Charge | |||||
First | 5.00 | % | ||||
Second | 5.00 | |||||
Third | 4.00 | |||||
Fourth | 3.00 | |||||
Fifth | 2.00 | |||||
Sixth | 1.00 | |||||
Seventh | — | |||||
Eighth | — | |||||
A CDSC of 1.00% is imposed on redemptions made in Class C shares for the first twelve months.
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The CDSC for Class B shares and Class C shares is imposed on the value of the purchased shares or the value at the time of redemption, whichever is less.
For the fiscal year ended October 31, 2008, total front-end sales charges and CDSCs retained by affiliates of FAF Advisors for distributing the funds’ shares were as follows:
Fund | Amount | |||
Equity Index Fund | $ | 96 | ||
Mid Cap Index Fund | 11 | |||
Small Cap Index Fund | 4 | |||
4 > | Investment in Common Stock of Affiliate |
As disclosed in the Schedule of Investments, Equity Index Fund owns common stock issued by U.S. Bancorp. For the fiscal year ended October 31, 2008, Equity Index Fund recorded a net realized gain from the sale of U.S. Bancorp common stock of $254 and $411 of dividend income from U.S. Bancorp common stock. At October 31, 2008, Equity Index Fund had an unrealized gain of $1,637 with respect to its investment in U.S. Bancorp common stock.
5 > | Capital Share Transactions |
FAIF has 366 billion shares of $0.0001 par value capital stock authorized. Capital share transactions for the funds were as follows:
Equity | Mid Cap | Small Cap | ||||||||||||||||||||||||||
Index Fund | Index Fund | Index Fund | ||||||||||||||||||||||||||
Year | Year | Year | Year | Year | Year | |||||||||||||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | |||||||||||||||||||||||
10/31/08 | 10/31/07 | 10/31/08 | 10/31/07 | 10/31/08 | 10/31/07 | |||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||||||
Shares issued | 868 | 1,499 | 387 | 428 | 168 | 131 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | 244 | 189 | 130 | 55 | 77 | 87 | ||||||||||||||||||||||
Shares redeemed | (2,065 | ) | (3,108 | ) | (368 | ) | (377 | ) | (160 | ) | (281 | ) | ||||||||||||||||
Total Class A transactions | (953 | ) | (1,420 | ) | 149 | 106 | 85 | (63 | ) | |||||||||||||||||||
Class B: | ||||||||||||||||||||||||||||
Shares issued | 31 | 47 | 9 | 15 | 12 | 28 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | 28 | 27 | 17 | 9 | 11 | 11 | ||||||||||||||||||||||
Shares redeemed | (427 | ) | (668 | ) | (40 | ) | (69 | ) | (27 | ) | (40 | ) | ||||||||||||||||
Total Class B transactions | (368 | ) | (594 | ) | (14 | ) | (45 | ) | (4 | ) | (1 | ) | ||||||||||||||||
Class C: | ||||||||||||||||||||||||||||
Shares issued | 47 | 66 | 67 | 64 | 11 | 29 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | 18 | 13 | 39 | 14 | 23 | 21 | ||||||||||||||||||||||
Shares redeemed | (193 | ) | (200 | ) | (90 | ) | (43 | ) | (51 | ) | (23 | ) | ||||||||||||||||
Total Class C transactions | (128 | ) | (121 | ) | 16 | 35 | (17 | ) | 27 | |||||||||||||||||||
Class R: | ||||||||||||||||||||||||||||
Shares issued | 398 | 160 | 685 | 151 | 107 | 40 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | 10 | 4 | 49 | 16 | 7 | 3 | ||||||||||||||||||||||
Shares redeemed | (123 | ) | (44 | ) | (182 | ) | (72 | ) | (32 | ) | (14 | ) | ||||||||||||||||
Total Class R transactions | 285 | 120 | 552 | 95 | 82 | 29 | ||||||||||||||||||||||
Class Y: | ||||||||||||||||||||||||||||
Shares issued | 12,669 | 11,085 | 2,915 | 3,523 | 1,954 | 1,488 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | 1,273 | 1,087 | 1,357 | 722 | 400 | 623 | ||||||||||||||||||||||
Shares redeemed | (19,533 | ) | (27,413 | ) | (5,510 | ) | (6,374 | ) | (3,632 | ) | (3,040 | ) | ||||||||||||||||
Total Class Y transactions | (5,591 | ) | (15,241 | ) | (1,238 | ) | (2,129 | ) | (1,278 | ) | (929 | ) | ||||||||||||||||
Net decrease in capital shares | (6,755 | ) | (17,256 | ) | (535 | ) | (1,938 | ) | (1,132 | ) | (937 | ) | ||||||||||||||||
Class B shares converted to Class A shares (reflected as Class A shares issued and Class B shares redeemed) during the fiscal years ended October 31, 2008 and October 31, 2007, as follows:
Fiscal | Fiscal | |||||||
Year Ended | Year Ended | |||||||
Fund | 10/31/08 | 10/31/07 | ||||||
Equity Index Fund | 188 | 397 | ||||||
Mid Cap Index Fund | 4 | 41 | ||||||
Small Cap Index Fund | 4 | 4 | ||||||
6 > | Investment Security Transactions |
During the fiscal year ended October 31, 2008, purchases of securities and proceeds from sales of securities other than temporary investments in short-term securities, were as follows:
Fund | Purchases | Sales | ||||||
Equity Index Fund | $ | 60,560 | $ | 269,139 | ||||
Mid Cap Index Fund | 42,722 | 74,289 | ||||||
Small Cap Index Fund | 16,594 | 47,369 | ||||||
The aggregate gross unrealized appreciation and depreciation of securities held by the funds and the total cost of securities (including cost of securities purchased
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Notes toFinancial Statements October 31, 2008, all dollars and shares are rounded to thousands (000)
with proceeds from securities lending) for federal income tax purposes at October 31, 2008, were as follows:
Aggregate | Aggregate | Federal | ||||||||||||||
Gross | Gross | Income | ||||||||||||||
Fund | Appreciation | Depreciation | Net | Tax Cost | ||||||||||||
Equity Index Fund | $ | 372,616 | $ | (215,110 | ) | $ | 157,506 | $ | 1,303,775 | |||||||
Mid Cap Index Fund | 30,680 | (68,489 | ) | (37,809 | ) | 327,787 | ||||||||||
Small Cap Index Fund | 13,221 | (23,390 | ) | (10,169 | ) | 101,821 | ||||||||||
7 > | Indemnifications |
The funds enter into contracts that contain a variety of indemnifications. The funds’ maximum exposure under these arrangements is unknown. However, the funds have not had prior claims or losses pursuant to these contracts and expect the risk of loss to be remote.
8 > | Redemption-in-Kind Transaction |
On August 1, 2008, $65,171 was redeemed from Equity Index Fund as a redemption-in-kind transaction. In this transaction, the fund distributed a proportionate amount of securities in the fund’s portfolio to the U.S. Bancorp Pension Plan. Remaining shareholders in the fund did not recognize any additional capital gains from the transactions.
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 disclosure about the use of fair value measurements. FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. As of October 31, 2008, the funds do not believe the adoption of FAS 157 will impact the amounts reported in the financial statements; however, additional disclosures will be required about the inputs used to develop the measurements of fair value and the effect of certain measurements reported in the Statement of Operations for a fiscal period.
In March 2008, the FASB issued Statement of 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 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.
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Notice toShareholders | October 31, 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 October 31, 2008, each fund has designated long term capital gains, ordinary income, and tax exempt income with regard to distributions paid during the period as follows:
Long Term | Ordinary | |||||||||||||||
Capital Gains | Income | Total | ||||||||||||||
Distributions | Distributions | Distributions | ||||||||||||||
Fund | (Tax Basis) 1 | (Tax Basis) 1 | (Tax Basis) | |||||||||||||
Equity Index Fund | 55 | % | 45 | % | 100 | % | ||||||||||
Mid Cap Index Fund | 91 | 9 | 100 | |||||||||||||
Small Cap Index Fund | 86 | 14 | 100 | |||||||||||||
1 Based on a percentage of the fund’s total distributions.
Shareholder Notification of Federal Tax Status:
Each fund has designated the following percentages of the ordinary income distributions during the fiscal year ended October 31, 2008 as dividends qualifying for the dividends received deduction available to corporate shareholders:
Fund | ||||||
Equity Index Fund | 100.00 | % | ||||
Mid Cap Index Fund | 97.35 | |||||
Small Cap Index Fund | 69.76 | |||||
In addition, each fund has designated the following percentages of the ordinary income distributions from net investment income during the fiscal year ended October 31, 2008 as qualified dividend income available to individual shareholders under the Jobs and Growth Tax Relief Reconciliation Act of 2003:
Fund | ||||||
Equity Index Fund | 100.00 | % | ||||
Mid Cap Index Fund | 98.19 | |||||
Small Cap Index Fund | 72.68 | |||||
Additional Information Applicable to Foreign Shareholders Only:
The percentage of ordinary income distributions that are designated as interest-related dividends under Internal Revenue Code Section 871(k)(1)(c) for each fund were as follows:
Fund | ||||||
Equity Index Fund | 4.96 | % | ||||
Mid Cap Index Fund | 2.99 | |||||
Small Cap Index Fund | 5.87 | |||||
The percentage of ordinary income distributions that are designated as short-term capital gain distributions under Internal Revenue Code Section 871(k)(2)(c) for each fund were as follows:
Fund | ||||||||
Equity Index Fund | 3.64 | % | ||||||
Mid Cap Index Fund | 21.30 | |||||||
Small Cap Index Fund | 51.15 | |||||||
HOW TO OBTAIN A COPY OF THE FUNDS’ PROXY VOTING POLICIES AND PROXY VOTING RECORD
A description of the policies and procedures that the funds use to determine how to vote proxies relating to portfolio securities, as well as information regarding how the funds voted proxies relating to portfolio securities is available at firstamericanfunds.com and on the Securities and Exchange Commission’s website at www.sec.gov. A description of the funds’ policies and procedures is also available without charge, upon request, by calling 800.677.FUND.
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Notice toShareholders October 31, 2008 (unaudited)
FORM N-Q HOLDINGS INFORMATION
Each fund is required to file its complete schedule of portfolio holdings for the first and third quarters of each fiscal year with the Securities and Exchange Commission on Form N-Q. The funds’ Forms N-Q are available (1) without charge upon request by calling 800.677.FUND and (2) on the Securities and Exchange Commission’s website at www.sec.gov. In addition, you may review and copy the funds’ Forms N-Q at the Commission’s Public Reference Room in Washington, D.C. You may obtain information on the operation of the Public Reference Room by calling 800.SEC.0330.
APPROVAL OF 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 considered the factors it deemed relevant, including: (1) the nature, quality and extent of FAF Advisors’ services to each Fund, (2) the investment performance of 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 Board met in executive session with its independent counsel on numerous occasions to consider the materials provided by FAF Advisors and the terms of the Agreement. Based on its evaluation of those materials, the Board concluded that the Agreement is fair and in the best interests of the shareholders of each Fund. In reaching its conclusions, the Board considered the following:
Nature, Quality, and Extent of Investment Advisory Services
The Board examined the nature, quality and extent of the services provided by FAF Advisors to each Fund. The Board reviewed FAF Advisors’ key personnel who provide investment management services to each Fund as well as the fact that, under the Agreement, FAF Advisors has the authority and responsibility to make and execute investment decisions for each Fund within the framework of that Fund’s investment policies and restrictions, subject to review by the Board. The Board further considered that FAF Advisors’ duties with respect to each Fund include: (i) investment research and security selection, (ii) adherence to (and monitoring compliance with) the Fund’s investment policies and restrictions and the Investment Company Act of 1940, and (iii) monitoring the performance of the various organizations providing services to the Funds, including the Funds’ distributor, sub-administrator, transfer agent and custodian. Finally, the Board considered FAF Advisors’ representation that the services provided by FAF Advisors under the Agreement are the 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
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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 relates to the performance of Class Y shares.
Equity Index Fund. The Board noted that the objective of the Fund is to provide investment results that correspond to the performance of the Standard & Poor’s 500 Composite Index and that the Fund’s prospectus states the goal of attaining “at least 95%” correlation with the Index. The Board considered that results over the past three years on a gross-of-fees basis have a correlation to the Index of over 99%, even though, net of fees, the Fund performed below its benchmark index (which has no fees) for all periods. The Board also considered that the Fund outperformed its performance universe median for the one-, three-, five- and ten-year periods. The Board concluded that, in light of the Fund’s close tracking of its benchmark index and competitive performance vis-à-vis its performance universe, it would be in the interest of the Fund and its shareholders to renew the Agreement.
Mid Cap Index Fund. The Board noted that the objective of the Fund is to provide investment results that correspond to the performance of the Standard & Poor’s MidCap 400 Composite Index and that the Fund’s prospectus states the goal of attaining “at least 95%” correlation with the Index. The Board considered that results over the past three years on a gross-of-fees basis have a correlation to the Index of over 99%, even though, net of fees, the Fund performed below its benchmark index (which has no fees) for the one-, three- and five-year periods. The Board also noted that the Fund outperformed its performance universe median for the one-, three- and five-year periods. The Board concluded that, in light of the Fund’s close tracking of its benchmark index and competitive performance vis-à-vis its performance universe, it would be in the interest of the Fund and its shareholders to renew the Agreement.
Small Cap Index Fund. The Board noted that the objective of the Fund is to provide investment results that correspond to the performance of the Russell 2000 Index and that the Fund’s prospectus states the goal of attaining “at least 95%” correlation with the Index. The Board considered that results over the past three years on a gross-of-fees basis have a correlation to the Index of over 99%, even though, net of fees, the Fund performed below its benchmark index (which has no fees) for the one-, three- and five-year periods. The Board noted that the Fund outperformed its performance universe for the one-, three- and five-year periods. The Board concluded that, in light of the Fund’s close tracking of its benchmark index and its competitive performance vis-à-vis its performance universe, it would be in the interest of the Fund and its shareholders to renew the Agreement.
Costs of Services and Profits Realized by FAF Advisors
The Board reviewed FAF Advisors’ 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 reviewed fee and expense information as compared to that of other funds and accounts managed by FAF Advisors and of comparable funds managed by other advisers. The Board found that while the management fees for FAF Advisors’ institutional separate accounts are lower than the Funds’ management fees, the Funds receive additional services from FAF Advisors that separate accounts do not receive.
Using information provided by an independent data service, the Board also evaluated each Fund’s advisory fee compared to the median advisory fee for other mutual funds similar in size, character and investment strategy, and each Fund’s 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:
Equity Index Fund. The Board considered that the Fund’s advisory fee and total expense ratio, after waivers, are higher than the peer group median, though consistent with FAF Advisors’ pricing philosophy. The Board concluded that the Fund’s advisory fee and total expense ratio are reasonable in light of the services provided.
Mid Cap Index Fund. The Board considered that the Fund’s advisory fee, after waivers, is lower than the peer group median and that the Fund’s total expense ratio, after waivers, is slightly higher that 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.
Small Cap Index Fund. The Board considered that the Fund’s advisory fee, after waivers, and the Fund’s total expense ratio, after waivers, are lower than the peer group median. The Board concluded that the Fund’s advisory fee and total expense ratio are reasonable in light of the services provided.
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Notice toShareholders October 31, 2008 (unaudited)
Economies of Scale in Providing Investment Advisory Services
The Board considered the extent to which each Fund’s investment advisory fee reflects economies of scale for the benefit of Fund shareholders. Based on information provided by FAF Advisors, the Board noted that profitability will likely increase somewhat as assets grow over time. The Board considered that, although the Funds do not have advisory fee breakpoints in place, FAF Advisors has committed to waive advisory fees to the extent necessary to keep each Fund’s total expenses generally in line with the median total expenses of a peer group of funds as selected by an independent data service. The Board considered FAF Advisors’ assertion that the median total expense ratio of a Fund’s peer group 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, transfer agent, distributor, custodian and securities lending agent, and receive compensation from the Funds in connection with providing services to the Funds. The Board considered that each service provided to the Funds by FAF Advisors or one of its affiliates is pursuant to a written agreement, which the Board evaluates periodically as required by law.
The Board also considered FAF Advisors’ use of the Funds’ portfolio brokerage transactions to obtain research. The Board concluded, based on its own review and on representations of FAF Advisors, that FAF Advisors’ use of “soft” commission dollars was consistent with regulatory requirements.
After full consideration of these factors, the Board concluded that approval of the Agreement was in the best interest of each Fund and its shareholders.
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Directors and Officers of the Funds
Independent Directors | ||||||||||
Other | ||||||||||
Position(s) | Term of Office | Number of Portfolios | Directorships | |||||||
Name, Address, and | Held | and Length of | Principal Occupation(s) | in Fund Complex | Held by | |||||
Year of Birth | with Funds | Time Served | During Past 5 Years | Overseen by Director | Director † | |||||
Benjamin R. Field III P.O. Box 1329 Minneapolis, MN 55440-1329 (1938) | Director | Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since September 2003 | Retired; Senior Financial Advisor, Bemis Company, Inc. from May 2002 through 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; Advisor/Consultant, Future FreightTM, a logistics/supply chain company since August 2004; Vice President and Chief Operating Officer, Cargo-United Airlines, from July 2001 until retirement in June 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 since 2001; Board Chair, United Educators Insurance Company | 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, William Blair & Company, LLC, a Chicago-based investment firm | 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 | 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., a consulting company providing advice on business strategy, mergers and acquisitions, and non-profit board member since 2005 | First American Funds Complex: twelve registered investment companies, including sixty-two portfolios | Cliffs Natural Resources, Inc. (a producer of iron ore pellets and coal) | |||||
Joseph D. Strauss P.O. Box 1329 Minneapolis, MN 55440-1329 (1940) | Director | Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since April 1991 | Attorney At Law, Owner and President, Strauss Management Company, a Minnesota holding company for various organizational management business ventures; Owner, Chairman and Chief Executive Officer, Community Resource Partnerships, Inc., a 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 | 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; Chair, Saint Paul Riverfront Corporation, since 2005 | First American Funds Complex: twelve registered investment companies, including sixty-two portfolios | None | |||||
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Notice toShareholders | October 31, 2008 (unaudited) |
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 † | |||||
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.
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Officers | ||||||
Position(s) | Term of Office | |||||
Name, Address, and | Held | and Length of | ||||
Year of Birth | with Funds | Time Served | Principal Occupation(s) During Past 5 Years | |||
Thomas S. Schreier, Jr. FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1962)* | President & Vice President – Investments | 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. | |||
Mark D. Corns FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1963)* | Anti-Money Laundering Officer | Re-elected by the Board annually; Anti-Money Laundering Officer of FAIF since September 2008 | Director of Compliance, FAF Advisors, Inc. since June 2006; Compliance Manager, FAF Advisors, Inc. from January 2005 to June 2006; prior thereto, Compliance Manager, OppenheimerFunds, 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, Corns, 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 63
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Board of Directors First American Investment Funds, Inc.
Virginia Stringer
Chairperson of First American Investment Funds, Inc.
Governance Consultant; Chair of Saint Paul Riverfront Corporation;
former Owner and President of Strategic Management Resources, Inc.
Benjamin Field III
Director of First American Investment Funds, Inc.
Retired; former Senior Financial Advisor, Senior Vice President,
Chief Financial Officer, and Treasurer of Bemis Company, Inc.
Roger Gibson
Director of First American Investment Funds, Inc.
Director of Charterhouse Group, Inc.
Victoria Herget
Director of First American Investment Funds, Inc.
Investment Consultant; Chair of United Educators Insurance Company;
former Managing Director of Zurich Scudder Investments
John Kayser
Director of First American Investment Funds, Inc.
Retired; former Principal, Chief Financial Officer, and Chief Administrative Officer of William Blair & Company, LLC
Leonard Kedrowski
Director of First American Investment Funds, Inc.
Owner and President of Executive and Management Consulting, Inc.
Richard Riederer
Director of First American Investment Funds, Inc.
Owner and Chief Executive Officer of RKR Consultants, Inc.
Joseph Strauss
Director of First American Investment Funds, Inc.
Owner and President of Strauss Management Company
James Wade
Director of First American Investment Funds, Inc.
Owner and President of Jim Wade Homes
First American Investment Funds’ Board of Directors is comprised entirely of
independent directors.
independent directors.
Table of Contents
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Direct fund correspondence to:
First American Funds
P.O. Box 1330
Minneapolis, MN 55440-1330
This report and the financial statements contained herein are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Further, there is no assurance that certain securities will remain in or out of each fund’s portfolio. The views expressed in this report reflect those of the portfolio managers only through the period ended October 31, 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 12/2008 AR-INDEX
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Mutual fund investing involves risk; principal loss is possible.
First American Funds’ quantitative funds are actively managed using our proprietary macro quant process, which projects individual stock performance based on multiple factors and current economic conditions. Stocks selected using this process could underperform if the current performance of the factors differs from their historic performance. Turnover, expenses, and taxes will be similar to other actively managed funds.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
Table of Contents
Dear Shareholders:
We invite you to take a few minutes to review the results of the fiscal year ended October 31, 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
Table of Contents
As a shareholder in First American Funds, you receive shareholder reports semiannually. We strive to present this financial information in an easy-to-understand format; however, for many investors, the information contained in this shareholder report may seem very technical. So, we would like to take this opportunity to explain several sections of the shareholder report.
The Schedule of Investments details all of the securities held in the fund and their related dollar values on the last day of the reporting period. Securities are usually presented by type (common stock, bonds, etc.) and by industry classification (banking, communications, etc.). This information is useful for analyzing how your fund’s assets are invested and seeing where your portfolio manager believes the best opportunities exist to meet your objectives. Holdings are subject to change without notice and do not constitute a recommendation of any individual security. The Notes to the Financial Statements provide additional details on how the securities are valued.
The Statement of Assets and Liabilities lists the assets and liabilities of the fund and present the fund’s net asset value (“NAV”) per share on the last day of the reporting period. The NAV is calculated by dividing the fund’s net assets (assets minus liabilities) by the number of shares outstanding. The investments, as presented in the Schedule of Investments, comprise substantially all of the fund’s assets. Other assets include cash and receivables for items such as income earned by the fund but not yet received. Liabilities include payables for items such as fund expenses incurred but not yet paid.
The Statement of Operations details the dividends and interest income earned from securities as well as the expenses incurred by the fund during the reporting period. Fund expenses may be reduced through fee waivers or reimbursements. This statement reflects total expenses before any waivers or reimbursements, the amount of waivers and reimbursements (if any), and the net expenses. This statement also shows the net realized and unrealized gains and losses from investments owned during the period. The Notes to Financial Statements provide additional details on investment income and expenses of the fund.
The Statement of Changes in Net Assets describes how the fund’s net assets were affected by its operating results, distributions to shareholders, and shareholder transactions during the reporting period. This statement is important to investors because it shows exactly what caused the fund’s net asset size to change during the period.
The Financial Highlights provide a per-share breakdown of the components that affected the fund’s NAV for the current and past reporting periods. It also shows total return, expense ratios, net investment income ratios, and portfolio turnover rates. The net investment income ratios summarize the income earned less expenses, divided by the average net assets. The expense ratios represent the percentage of average net assets that were used to cover operating expenses during the period. Expense ratios can vary across funds for a number of reasons, including differences in advisory fees and the average shareholder account size. The portfolio turnover rate represents the percentage of the fund’s holdings that have changed over the course of the period, and gives an idea of how long the fund holds onto a particular security. A 100% turnover rate implies that an amount equal to the value of the entire portfolio is turned over in a year through the purchase and sale of securities.
The Notes to Financial Statements disclose the organizational background of the fund, its significant accounting policies, federal tax information, fees and compensation paid to affiliates, and significant risks and contingencies.
We hope this guide to your shareholder report will help you get the most out of this important resource. You can visit First American Funds’ website for other useful information on each of our funds, including fund prices, performance, fund manager bios, dividends, and downloadable fact sheets. For more information, call First American Investor Services at 800.677.FUND or visit firstamericanfunds.com.
2 First American Funds 2008 Annual Report
Table of Contents
Quantitative Large Cap Core Fund
Investment Objective: to provide, over the long term, a total return that exceeds that of the S&P 500 Index*
How did the fund perform for the fiscal year ended October 31, 2008?
The First American Quantitative Large Cap Core Fund (the “fund”), Class Y shares, returned -36.93% for the fiscal year ended October 31, 2008 (Class A shares returned -37.08% without taking the sales charge into account). By comparison, the fund’s benchmark, the S&P 500 Index*, returned -36.10% for the same period.
How did market conditions affect stock market performance during the fiscal year?
As we entered this fiscal year, financial markets were already severely disrupted. Investors watched the housing and mortgage downturn deteriorate into a broad financial and economic crisis. The floundering housing market caused an uptick in loan delinquencies and more mortgage credit-related losses for financial institutions. The ensuing turmoil tripped up some of the largest mortgage, bank, financial, and insurance companies around the globe.
Despite the failures of high-profile brokerages and significant losses for large banks, overall stock market returns were relatively contained until the failure of Lehman Brothers in September 2008 exposed the sensitivity of the broad market to the financial system. Market volatility soared, liquidity evaporated, and broad equity indices were down sharply by the end of the fiscal period.
In the current capital-constrained environment, corporate and consumer credit, employment growth, corporate earnings, and consumer confidence are likely to weaken further. These issues and potentially others will likely continue creating headwinds for the stock market. However, we believe the domestic markets have already discounted, to a significant degree, the negative economic environment that is likely to prevail in the coming fiscal year.
What worked for the fund and why?
Throughout the fiscal year, we generally stayed below index-level investments in the financial industry, and this approach produced a major positive contribution to performance during the first and second quarters of 2008, although it turned negative in the third quarter, when it appeared briefly that the financial system was stabilizing. Our concern about the financial sector caused us to reduce the portfolio’s sensitivity to broad equity market conditions, and at various times we allowed cash to accumulate in the portfolio. When invested, those monies were put into lower-volatility sectors. Virtually all our style strategies – a tilt away from value stocks and momentum stocks (i.e., those with recent relative strength); emphasis on stocks with lower volatility and higher-quality earnings – were successful. In the middle of the fiscal year, our emphasis on the small-cap end of the benchmark range added value (we de-emphasized that position before the decline in small-cap returns).
What did not work for the fund and why?
As noted above, our efforts to limit the fund’s exposure to financials proved to have a negative effect on performance toward the end of the fiscal year. One of the sectors where we placed more weight to compensate for the defensive position in financials was energy. Energy stocks, however, experienced weak performance as global demand slackened. The disappointing performance from consumer staples – typically a sector where activity does not stall in response to a financial crisis – also had a negative effect.
What strategic moves were made by the fund and why?
Throughout the fiscal year, we re-evaluated the risks in the financial sector, and as they increased, we redeployed assets elsewhere. As credit markets continued to price in high risk levels and economic output remained weak, we shifted even further away from momentum stocks. Additionally, we have shifted our focus from the large-cap end of the benchmark range to the mid-cap end of the range.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Top 10 Holdings as of October 31, 20081 (% of net assets)
First American Prime Obligations Fund, Class Z | 9 | .3% | ||
Exxon Mobil | 4 | .9 | ||
Chevron | 2 | .3 | ||
Microsoft | 2 | .2 | ||
Johnson & Johnson | 2 | .2 | ||
Pfizer | 2 | .0 | ||
Procter & Gamble | 1 | .8 | ||
AT&T | 1 | .7 | ||
General Electric | 1 | .7 | ||
U.S. Treasury Bill, 1.761%, 12/18/2008 | 1 | .2 | ||
Sector Allocation as of October 31, 20081 (% of net assets)
Information Technology | 16 | .0% | ||
Healthcare | 14 | .3 | ||
Energy | 13 | .0 | ||
Industrials | 10 | .5 | ||
Consumer Staples | 10 | .0 | ||
Financials | 9 | .0 | ||
Consumer Discretionary | 7 | .2 | ||
Utilities | 3 | .6 | ||
Materials | 2 | .9 | ||
Telecommunication Services | 2 | .9 | ||
Short-Term Investments | 10 | .5 | ||
Other Assets and Liabilities, Net2 | 0 | .1 | ||
100 | .0% | |||
1 | Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security. |
2 | Investments in securities typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
First American Funds 2008 Annual Report 3
Table of Contents
Quantitative Large Cap Core Fund
Annual Performance1,2
October 31, 2008 | September 30, 2008* | |||||||||||||||
Since Inception | Since Inception | |||||||||||||||
1 year | 7/31/2007 | 1 year | 7/31/2007 | |||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||
Class A | (40.55 | )% | (29.86 | )% | (27.18 | )% | (19.75 | )% | ||||||||
Class C | (38.19 | )% | (27.18 | )% | (24.29 | )% | (16.38 | )% | ||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||
Class A | (37.08 | )% | (26.61 | )% | (22.95 | )% | (15.75 | )% | ||||||||
Class C | (37.58 | )% | (27.18 | )% | (23.53 | )% | (16.38 | )% | ||||||||
Class R | (37.22 | )% | (26.79 | )% | (23.11 | )% | (15.93 | )% | ||||||||
Class Y | (36.93 | )% | (26.45 | )% | (22.77 | )% | (15.57 | )% | ||||||||
S&P 500 Index3 | (36.10 | )% | (26.20 | )% | (21.98 | )% | (15.50 | )% | ||||||||
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 | Mutual fund investing involves risk; principal loss is possible. |
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV.
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 5.50% for Class A shares and the contingent deferred sales charge (“CDSC”) for Class C shares for the relevant period. Maximum CDSC is 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.
Investment performance in the table reflects fee waivers that were in effect during the periods indicated. In the absence of such fee waivers, total returns would be reduced.
As of the most recent prospectus, the fund’s total annual operating expense ratio for Class A, Class C, Class R, and Class Y shares was 1.40%, 2.15%, 1.65% and 1.15%, 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 0.70%, 1.45%, 0.95% and 0.45%, 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.
* | This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period. |
Value of $10,000 Investment 1,2,4 as of October 31, 2008
Quantitative Large Cap Core Fund, Class A (NAV) | ![]() | $ | 6,789 | |||||
Quantitative Large Cap Core Fund, Class A (POP) | ![]() | $ | 6,414 | |||||
S&P 500 Index3 | ![]() | $ | 6,836 | |||||
This chart illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 7/31/2007 to 10/31/2008) as compared to the S&P 500 Index3.
![(QUANTITATIVE LARGE CAP CORE GRAPH)](https://capedge.com/proxy/N-CSR/0000950137-09-000237/c48053c4805702.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
3 | An unmanaged, market capitalization-weighted index based on the average weighted performance of 500 widely held large-cap common stocks. |
4 | Performance for Class C, Class R, and Class Y shares is not presented. Performance for these classes will vary due to the different expense structures. |
4 First American Funds 2008 Annual Report
Table of Contents
Quantitative Large Cap Growth Fund
Investment Objective: to provide, over the long term, a total return that exceeds that of the Russell 1000 Growth Index*
How did the fund perform for the fiscal year ended October 31, 2008?
The First American Quantitative Large Cap Growth Fund (the “fund”), Class Y shares, returned -34.27% for the fiscal year ended October 31, 2008 (Class A shares returned -34.41% without taking the sales charge into account). By comparison, the fund’s benchmark, the Russell 1000 Growth Index*, returned -36.95% for the same period.
How did market conditions affect stock market performance during the fiscal year?
As we entered this fiscal year, financial markets were already severely disrupted. Investors watched the housing and mortgage downturn deteriorate into a broad financial and economic crisis. The floundering housing market caused an uptick in loan delinquencies and more mortgage credit-related losses for financial institutions. The ensuing turmoil tripped up some of the largest mortgage, bank, financial, and insurance companies around the globe.
Despite the failures of high-profile brokerages and significant losses for large banks, overall stock market returns were relatively contained until the failure of Lehman Brothers in September 2008 exposed the sensitivity of the broad market to the financial system. Market volatility soared, liquidity evaporated, and broad equity indices were down sharply by the end of the fiscal period.
In the current capital-constrained environment, corporate and consumer credit, employment growth, corporate earnings, and consumer confidence are likely to weaken further. These issues and potentially others will likely continue creating headwinds for the stock market. However, we believe the domestic markets have already discounted, to a significant degree, the negative economic environment that is likely to prevail in the coming fiscal year.
What worked for the fund and why?
Throughout the fiscal year, we generally stayed below index-level investments in the financial industry, and this approach produced a major positive contribution to performance during the first and second quarters of 2008, although it turned negative in the third quarter, when it appeared briefly that the financial system was stabilizing. Our concern about the financial sector caused us to reduce the portfolio’s sensitivity to broad equity market conditions, and at various times we allowed cash to accumulate in the portfolio. When invested, those monies were put into lower-volatility sectors. Virtually all our style strategies – a tilt away from value stocks and momentum stocks (i.e., those with recent relative strength); emphasis on stocks with lower volatility and higher-quality earnings – were successful. In the middle of the fiscal year, our emphasis on the small-cap end of the benchmark range added value (we de-emphasized that position before the decline in small-cap returns).
What did not work for the fund and why?
As noted above, our efforts to limit the fund’s exposure to financials proved to have a negative effect on performance toward the end of the fiscal year. One of the sectors where we placed more weight to compensate for the defensive position in financials was energy. Energy stocks, however, experienced weak performance as global demand slackened. The disappointing performance from consumer staples – typically a sector where activity does not stall in response to a financial crisis – also had a negative effect.
What strategic moves were made by the fund and why?
Throughout the fiscal year, we re-evaluated the risks in the financial sector, and as they increased, we redeployed assets elsewhere. As credit markets continued to price in high risk levels and economic output remained weak, we shifted even further away from momentum stocks. Additionally, we have shifted our focus from the large-cap end of the benchmark range to the mid-cap end of the range.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Top 10 Holdings as of October 31, 20081 (% of net assets)
Microsoft | 4 | .0% | ||
Exxon Mobil | 2 | .4 | ||
IBM | 2 | .2 | ||
Cisco | 2 | .2 | ||
Intel | 1 | .8 | ||
Hewlett-Packard | 1 | .7 | ||
Apple | 1 | .7 | ||
Google, Class A | 1 | .7 | ||
Abbot Laboratories | 1 | .6 | ||
U.S. Treasury Bill, 1.014%, 12/18/2008 | 1 | .6 | ||
Sector Allocation as of October 31, 20081 (% of net assets)
Information Technology | 29 | .3% | ||
Healthcare | 15 | .9 | ||
Industrials | 12 | .6 | ||
Consumer Staples | 11 | .6 | ||
Energy | 10 | .3 | ||
Consumer Discretionary | 6 | .9 | ||
Materials | 3 | .9 | ||
Utilities | 3 | .6 | ||
Financials | 2 | .5 | ||
Telecommunication Services | 0 | .7 | ||
Short-Term Investments | 2 | .4 | ||
Other Assets and Liabilities, Net2 | 0 | .3 | ||
100 | .0% | |||
1 | Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security. |
2 | Investments in securities typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
First American Funds 2008 Annual Report 5
Table of Contents
Quantitative Large Cap Growth Fund
Annual Performance1,2
October 31, 2008 | September 30, 2008* | |||||||||||||||
Since Inception | Since Inception | |||||||||||||||
1 year | 7/31/2007 | 1 year | 7/31/2007 | |||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||
Class A | (38.01 | )% | (26.24 | )% | (23.77 | )% | (16.14 | )% | ||||||||
Class C | (35.55 | )% | (23.41 | )% | (20.73 | )% | (12.61 | )% | ||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||
Class A | (34.41 | )% | (22.82 | )% | (19.34 | )% | (11.96 | )% | ||||||||
Class C | (34.91 | )% | (23.41 | )% | (19.93 | )% | (12.61 | )% | ||||||||
Class R | (34.61 | )% | (23.04 | )% | (19.54 | )% | (12.18 | )% | ||||||||
Class Y | (34.27 | )% | (22.66 | )% | (19.12 | )% | (11.73 | )% | ||||||||
Russell 1000 Growth Index3 | (36.95 | )% | (25.64 | )% | (20.88 | )% | (14.10 | )% | ||||||||
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
1 | Mutual fund investing involves risk; principal loss is possible. |
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV.
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 5.50% for Class A shares and the contingent deferred sales charge (“CDSC”) for Class C shares for the relevant period. Maximum CDSC is 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.
Investment performance in the table reflects fee waivers that were in effect during the periods indicated. In the absence of such fee waivers, total returns would be reduced.
As of the most recent prospectus, the fund’s total annual operating expense ratio for Class A, Class C, Class R, and Class Y shares was 4.70%, 5.45%, 4.95%, 4.45%, 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 0.70%, 1.45%, 0.95%, and 0.45%, 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.
* | This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period. |
Value of $10,000 Investment1,2,4 as of October 31, 2008
Class A | ||||||||
Quantitative Large Cap Growth Fund, Class A (NAV) | ![]() | $ | 7,230 | |||||
Quantitative Large Cap Growth Fund, Class A (POP) | ![]() | $ | 6,831 | |||||
Russell 1000 Growth Index3 | ![]() | $ | 6,900 | |||||
This chart illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 7/31/2007 to 10/31/2008) as compared to the Russell 1000 Growth Index3.
![(QUANTITATIVE LARGE CAP GROWTH)](https://capedge.com/proxy/N-CSR/0000950137-09-000237/c48053c4805703.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
3 | An unmanaged growth index that tracks the performance of companies within the Russell 1000 Index with greater-than-average growth orientation. |
4 | Performance for Class C, Class R, and Class Y shares is not presented. Performance for these classes will vary due to the different expense structures. |
6 First American Funds 2008 Annual Report
Table of Contents
Quantitative Large Cap Value Fund
Investment Objective: to provide, over the long term, a total return that exceeds that of the Russell 1000 Value Index*
How did the fund perform for the fiscal year ended October 31, 2008?
The First American Quantitative Large Cap Value Fund (the “fund”), Class Y shares, returned -34.63% for the fiscal year ended October 31, 2008 (Class A shares returned -34.79% without taking the sales charge into account). By comparison, the fund’s benchmark, the Russell 1000 Value Index*, returned -36.80% for the same period.
How did market conditions affect stock market performance during the fiscal year?
As we entered this fiscal year, financial markets were already severely disrupted. Investors watched the housing and mortgage downturn deteriorate into a broad financial and economic crisis. The floundering housing market caused an uptick in loan delinquencies and more mortgage credit-related losses for financial institutions. The ensuing turmoil tripped up some of the largest mortgage, bank, financial, and insurance companies around the globe.
Despite the failures of high-profile brokerages and significant losses for large banks, overall stock market returns were relatively contained until the failure of Lehman Brothers in September 2008 exposed the sensitivity of the broad market to the financial system. Market volatility soared, liquidity evaporated, and broad equity indices were down sharply by the end of the fiscal period.
In the current capital-constrained environment, corporate and consumer credit, employment growth, corporate earnings, and consumer confidence are likely to weaken further. These issues and potentially others will likely continue creating headwinds for the stock market. However, we believe the domestic markets have already discounted, to a significant degree, the negative economic environment that is likely to prevail in the coming fiscal year.
What worked for the fund and why?
Throughout the fiscal year, we generally stayed below index-level investments in the financial industry, and this approach produced a major positive contribution to performance during the first and second quarters of 2008, although it turned negative in the third quarter, when it appeared briefly that the financial system was stabilizing. Our concern about the financial sector caused us to reduce the portfolio’s sensitivity to broad equity market conditions, and at various times we allowed cash to accumulate in the portfolio. When invested, those monies were put into lower-volatility sectors. Virtually all our style strategies – a tilt away from value stocks and momentum stocks (i.e., those with recent relative strength); emphasis on stocks with lower volatility and higher-quality earnings – were successful. In the middle of the fiscal year, our emphasis on the small-cap end of the benchmark range added value (we de-emphasized that position before the decline in small-cap returns).
What did not work for the fund and why?
As noted above, our efforts to limit the fund’s exposure to financials proved to have a negative effect on performance toward the end of the fiscal year. One of the sectors where we placed more weight to compensate for the defensive position in financials was energy. Energy stocks, however, experienced weak performance as global demand slackened. The disappointing performance from consumer staples – typically a sector where activity does not stall in response to a financial crisis – also had a negative effect.
What strategic moves were made by the fund and why?
Throughout the fiscal year, we re-evaluated the risks in the financial sector, and as they increased, we redeployed assets elsewhere. As credit markets continued to price in high risk levels and economic output remained weak, we shifted even further away from momentum stocks. Additionally, we have shifted our focus from the large-cap end of the benchmark range to the mid-cap end of the range.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Top 10 Holdings as of October 31, 20081 (% of net assets)
First American Prime Obligations Fund, Class Z | 10 | .9% | ||
Exxon Mobil | 6 | .6 | ||
Chevron | 3 | .4 | ||
General Electric | 3 | .1 | ||
AT&T | 2 | .9 | ||
Pfizer | 2 | .7 | ||
Johnson & Johnson | 2 | .6 | ||
JPMorgan Chase | 2 | .1 | ||
Procter & Gamble | 2 | .0 | ||
Bank of America | 1 | .8 | ||
Sector Allocation as of October 31, 20081 (% of net assets)
Financials | 18 | .4% | ||
Energy | 14 | .8 | ||
Healthcare | 13 | .1 | ||
Industrials | 9 | .5 | ||
Utilities | 6 | .4 | ||
Consumer Discretionary | 6 | .2 | ||
Consumer Staples | 6 | .1 | ||
Telecommunication Services | 5 | .1 | ||
Information Technology | 4 | .5 | ||
Materials | 3 | .1 | ||
Short-Term Investments | 12 | .3 | ||
Other Assets and Liabilities, Net2 | 0 | .5 | ||
100 | .0% | |||
1 | Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security. |
2 | Investments in securities typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
First American Funds 2008 Annual Report 7
Table of Contents
Quantitative Large Cap Value Fund
Annual Performance1,2
October 31, 2008 | September 30, 2008* | |||||||||||||||
Since Inception | Since Inception | |||||||||||||||
1 year | 7/31/2007 | 1 year | 7/31/2007 | |||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||
Class A | (38.36 | )% | (28.59 | )% | (26.26 | )% | (19.05 | )% | ||||||||
Class C | (35.89 | )% | (25.83 | )% | (23.31 | )% | (15.65 | )% | ||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||
Class A | (34.79 | )% | (25.28 | )% | (21.96 | )% | (15.02 | )% | ||||||||
Class C | (35.25 | )% | (25.83 | )% | (22.56 | )% | (15.65 | )% | ||||||||
Class R | (34.94 | )% | (25.45 | )% | (22.14 | )% | (15.22 | )% | ||||||||
Class Y | (34.63 | )% | (25.10 | )% | (21.76 | )% | (14.81 | )% | ||||||||
Russell 1000 Value Index3 | (36.80 | )% | (28.14 | )% | (23.56 | )% | (17.44 | )% | ||||||||
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
1 | Mutual fund investing involves risk; principal loss is possible. |
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV.
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 5.50% for Class A shares and the contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.
Investment performance in the table reflects fee waivers that were in effect during the periods indicated. In the absence of such fee waivers, total returns would be reduced.
As of the most recent prospectus, the fund’s total annual operating expense ratio for Class A, Class C, Class R, and Class Y shares was 4.73%, 5.48%, 4.98%, and 4.48%, 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 0.70%, 1.45%, 0.95%, and 0.45%, 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.
* | This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period. |
Value of $10,000 Investment 1,2,4 as of October 31, 2008
Class A | ||||||||
Quantitative Large Cap Value Fund, Class A (NAV) | ![]() | $ | 6,942 | |||||
Quantitative Large Cap Value Fund, Class A (POP) | ![]() | $ | 6,559 | |||||
Russell 1000 Value Index3 | ![]() | $ | 6,611 | |||||
This chart illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 7/31/2007 to 10/31/2008) as compared to the Russell 1000 Value Total Index3.
![(QUANTITATIVE LARGE CAP VALUE GRAPH)](https://capedge.com/proxy/N-CSR/0000950137-09-000237/c48053c4805704.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
3 | An unmanaged index that tracks the performance of companies within the Russell 1000 Index with a greater-than-average value orientation. |
4 | Performance for Class C, Class R, and Class Y shares is not presented. Performance for these classes will vary due to the different expense structures. |
8 First American Funds 2008 Annual Report
Table of Contents
Expense Examples
As a shareholder of one or more of the funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. The examples below are intended to help you understand your ongoing costs (in dollars) of investing in the funds and to compare these costs with the ongoing costs of investing in other mutual funds. The examples are based on an investment of $1,000 invested in a fund at the beginning of the period and held for the entire period from May 1, 2008 to October 31, 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.
Quantitative Large Cap Core Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (5/01/08 to | ||||||||||
Value (5/01/08) | Value (10/31/08) | 10/31/08) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 698.70 | $ | 2.99 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.62 | $ | 3.56 | ||||||
Class C Actual2 | $ | 1,000.00 | $ | 695.70 | $ | 6.18 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.85 | $ | 7.35 | ||||||
Class R Actual2 | $ | 1,000.00 | $ | 697.80 | $ | 3.84 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.61 | $ | 4.57 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 699.50 | $ | 1.92 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.87 | $ | 2.29 | ||||||
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.70%, 1.45%, 0.90%, and 0.45% for Class A, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the 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 October 31, 2008 of -30.13%, -30.43%, -30.22%, and -30.05% for Class A, Class C, Class R, and Class Y, respectively. |
First American Funds 2008 Annual Report 9
Table of Contents
Expense Examples
Quantitative Large Cap Growth Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (5/01/08 to | ||||||||||
Value (5/01/08) | Value (10/31/08) | 10/31/08) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 721.10 | $ | 2.99 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.67 | $ | 3.51 | ||||||
Class C Actual2 | $ | 1,000.00 | $ | 718.20 | $ | 6.22 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.90 | $ | 7.30 | ||||||
Class R Actual2 | $ | 1,000.00 | $ | 719.90 | $ | 4.06 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.41 | $ | 4.77 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 721.70 | $ | 1.90 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.92 | $ | 2.24 | ||||||
�� |
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.69%, 1.44%, 0.94%, and 0.44% 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). |
2 | Based on the actual returns for the six-month period ended October 31, 2008 of -27.89%, -28.18%, -28.01%, and -27.83% for Class A, Class C, Class R, and Class Y, respectively. |
Quantitative Large Cap Value Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period3 (5/01/08 to | ||||||||||
Value (5/01/08) | Value (10/31/08) | 10/31/08) | ||||||||||
Class A Actual4 | $ | 1,000.00 | $ | 712.30 | $ | 2.97 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.67 | $ | 3.51 | ||||||
Class C Actual4 | $ | 1,000.00 | $ | 709.80 | $ | 6.19 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.90 | $ | 7.30 | ||||||
Class R Actual4 | $ | 1,000.00 | $ | 711.70 | $ | 4.00 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.46 | $ | 4.72 | ||||||
Class Y Actual4 | $ | 1,000.00 | $ | 713.20 | $ | 1.89 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.92 | $ | 2.24 | ||||||
3 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.69%, 1.44%, 0.93%, and 0.44% 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 October 31, 2008 of -28.77%, -29.02%, -28.83%, and -28.68% for Class A, Class C, Class R, and Class Y, respectively. |
10 First American Funds 2008 Annual Report
Table of Contents
To the Shareholders and Board of Directors
First American Investment Funds, Inc.
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of the Quantitative Large Cap Core, Quantitative Large Cap Growth, and Quantitative Large Cap Value Funds (series of First American Investment Funds, Inc.) (the “funds”) as of October 31, 2008, and the related statements of operations, changes in net assets and the financial highlights for each of the periods indicated therein. These financial statements and financial highlights are the responsibility of the funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the funds’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2008, by correspondence with the custodian and brokers, or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the funds listed above of First American Investment Funds, Inc. at October 31, 2008, the results of their operations, the changes in their net assets and the 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/0000950137-09-000237/c48053ernstyo.gif)
Minneapolis, Minnesota
December 19, 2008
First American Funds 2008 Annual Report 11
Table of Contents
Schedule of Investments October 31, 2008, all dollars are rounded to thousands (000)
Quantitative Large Cap Core Fund | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Common Stocks – 89.4% | ||||||||
Consumer Discretionary – 7.2% | ||||||||
Abercrombie & Fitch, Class A 6 | 3,868 | $ | 112 | |||||
Amazon.com 6 = | 1,786 | 102 | ||||||
Apollo Group, Class A 6 = | 3,206 | 223 | ||||||
AutoNation 6 = | 5,572 | 38 | ||||||
Bed Bath & Beyond 6 = | 4,536 | 117 | ||||||
Best Buy 6 | 1,454 | 39 | ||||||
Carnival 6 | 12,149 | 309 | ||||||
Coach 6 = | 6,707 | 138 | ||||||
Expedia = | 10,381 | 99 | ||||||
Family Dollar Stores��6 | 2,910 | 78 | ||||||
Fortune Brands | 2,475 | 94 | ||||||
Gap 6 | 5,253 | 68 | ||||||
Harley-Davidson 6 | 1,887 | 46 | ||||||
Harman International Industries | 4,200 | 77 | ||||||
Home Depot 6 | 7,627 | 180 | ||||||
International Game Technology | 8,764 | 123 | ||||||
J.C. Penney 6 | 2,668 | 64 | ||||||
Johnson Controls | 2,393 | 42 | ||||||
Kohl’s 6 = | 796 | 28 | ||||||
Limited Brands 6 | 2,465 | 30 | ||||||
Lowe’s 6 | 15,120 | 328 | ||||||
Marriott International, Class A | 789 | 16 | ||||||
Mattel | 15,402 | 231 | ||||||
McDonald’s | 3,299 | 191 | ||||||
McGraw-Hill 6 | 6,526 | 175 | ||||||
Newell Rubbermaid | 13,624 | 187 | ||||||
News, Class A 6 | 38,119 | 406 | ||||||
Nike, Class B 6 | 5,352 | 308 | ||||||
Nordstrom 6 | 693 | 13 | ||||||
Office Depot = | 26,551 | 96 | ||||||
Omnicom Group | 9,706 | 287 | ||||||
RadioShack 6 | 1,972 | 25 | ||||||
Scripps Networks Interactive, Class A 6 | 1,128 | 32 | ||||||
Sherwin-Williams 6 | 1,791 | 102 | ||||||
Snap-On | 2,786 | 103 | ||||||
Stanley Works 6 | 4,618 | 151 | ||||||
Staples 6 | 9,270 | 180 | ||||||
Starbucks 6 = | 10,280 | 135 | ||||||
Target 6 | 1,262 | 51 | ||||||
Tiffany & Company 6 | 1,692 | 46 | ||||||
Time Warner | 15,404 | 155 | ||||||
TJX | 3,590 | 96 | ||||||
VF | 4,262 | 235 | ||||||
Viacom, Class B 6 = | 19,775 | 400 | ||||||
Walt Disney 6 | 10,111 | 262 | ||||||
Washington Post, Class B | 287 | 123 | ||||||
Wyndham Worldwide 6 | 10,518 | 86 | ||||||
6,427 | ||||||||
Consumer Staples – 10.0% | ||||||||
Altria Group | 34,248 | 657 | ||||||
Archer-Daniels-Midland 6 | 10,805 | 224 | ||||||
Avon Products 6 | 1,720 | 43 | ||||||
Brown-Forman, Class B | 6,114 | 278 | ||||||
Campbell Soup | 1,036 | 39 | ||||||
Coca-Cola | 16,331 | 720 | ||||||
Colgate-Palmolive | 2,507 | 157 | ||||||
ConAgra Foods 6 | 7,859 | 137 | ||||||
Costco Wholesale 6 | 2,306 | 131 | ||||||
CVS Caremark | 4,987 | 153 | ||||||
Dr. Pepper Snapple Group 6 = | 936 | 21 | ||||||
Estee Lauder, Class A 6 | 479 | 17 | ||||||
Kimberly-Clark | 4,610 | 283 | ||||||
Kraft Foods, Class A | 10,008 | 292 | ||||||
Kroger 6 | 5,191 | 143 | ||||||
Lorillard | 3,364 | 222 | ||||||
McCormick 6 | 6,818 | 229 | ||||||
Molson Coors Brewing, Class B | 2,455 | 92 | ||||||
Pepsi Bottling Group | 5,142 | 119 | ||||||
PepsiCo | 12,783 | 729 | ||||||
Philip Morris International | 13,157 | 572 | ||||||
Procter & Gamble | 24,408 | 1,575 | ||||||
Safeway | 6,529 | 139 | ||||||
Sara Lee | 10,183 | 114 | ||||||
Sysco | 17,454 | 457 | ||||||
Tyson Foods, Class A | 1,165 | 10 | ||||||
Walgreen 6 | 17,597 | 448 | ||||||
Wal-Mart Stores 6 | 14,512 | 810 | ||||||
Whole Foods Market 6 | 8,533 | 91 | ||||||
8,902 | ||||||||
Energy – 13.0% | ||||||||
Apache | 3,410 | 281 | ||||||
Baker Hughes 6 | 8,729 | 305 | ||||||
BJ Services | 15,357 | 197 | ||||||
Chevron | 27,680 | 2,065 | ||||||
ConocoPhillips 6 | 18,502 | 962 | ||||||
CONSOL Energy 6 | 544 | 17 | ||||||
Devon Energy | 1,020 | 82 | ||||||
ENSCO International 6 | 3,039 | 116 | ||||||
EOG Resources | 649 | 53 | ||||||
Exxon Mobil | 58,818 | 4,360 | ||||||
Halliburton | 8,097 | 160 | ||||||
Hess | 1,679 | 101 | ||||||
Marathon Oil | 12,665 | 369 | ||||||
Murphy Oil 6 | 4,961 | 251 | ||||||
Nabors Industries = | 3,030 | 44 | ||||||
National-Oilwell Varco 6 = | 5,311 | 159 | ||||||
Noble | 9,202 | 296 | ||||||
Noble Energy | 1,327 | 69 | ||||||
Occidental Petroleum | 8,953 | 497 | ||||||
Rowan | 2,893 | 53 | ||||||
Schlumberger 6 | 10,889 | 562 | ||||||
Smith International 6 | 1,021 | 35 | ||||||
Spectra Energy 6 | 10,348 | 200 | ||||||
Sunoco 6 | 4,880 | 149 | ||||||
Tesoro 6 | 3,006 | 29 | ||||||
Valero Energy | 9,102 | 187 | ||||||
Weatherford International 6 = | 2,748 | 46 | ||||||
11,645 | ||||||||
Financials – 9.0% | ||||||||
Allstate | 3,901 | 103 | ||||||
American International Group 6 | 59,701 | 114 | ||||||
Ameriprise Financial | 9,762 | 211 | ||||||
Bank of America | 38,648 | 934 | ||||||
Bank of New York Mellon | 15,675 | 511 | ||||||
Charles Schwab | 8,177 | 156 | ||||||
Chubb | 1,409 | 73 | ||||||
Cincinnati Financial 6 | 10,620 | 276 | ||||||
Citigroup | 6,581 | 90 | ||||||
CME Group 6 | 555 | 157 | ||||||
Discover Financial Services | 1,546 | 19 | ||||||
Federated Investors, Class B 6 | 4,086 | 99 | ||||||
Fifth Third Bancorp 6 | 13,615 | 148 | ||||||
Franklin Resources | 3,389 | 230 | ||||||
Genworth Financial, Class A | 18,601 | 90 | ||||||
Goldman Sachs Group 6 | 1,011 | 94 | ||||||
Hartford Financial Services Group | 14,993 | 155 | ||||||
Huntington Bancshares 6 | 9,712 | 92 |
The accompanying notes are an integral part of the financial statements.
12 First American Funds 2008 Annual Report
Table of Contents
Quantitative Large Cap Core Fund (continued) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
IntercontinentalExchange = | 379 | $ | 32 | |||||
Invesco | 3,564 | 53 | ||||||
JPMorgan Chase | 23,834 | 983 | ||||||
Lincoln National 6 | 7,970 | 137 | ||||||
Loew’s | 7,316 | 243 | ||||||
National City | 19,629 | 53 | ||||||
Northern Trust | 4,498 | 253 | ||||||
NYSE Euronext | 4,826 | 146 | ||||||
PNC Financial Services Group | 642 | 43 | ||||||
Principal Financial Group | 13,475 | 256 | ||||||
Progressive 6 | 5,459 | 78 | ||||||
Prudential Financial 6 | 4,569 | 137 | ||||||
Regions Financial 6 | 13,554 | 150 | ||||||
State Street | 5,730 | 248 | ||||||
SunTrust Banks 6 | 4,106 | 165 | ||||||
T. Rowe Price Group 6 | 4,628 | 183 | ||||||
Torchmark 6 | 4,513 | 189 | ||||||
Travelers | 6,394 | 272 | ||||||
Wachovia 6 | 33,606 | 215 | ||||||
Wells Fargo 6 | 16,246 | 553 | ||||||
XL Capital, Class A 6 | 7,286 | 71 | ||||||
Zions Bancorporation 6 | 349 | 13 | ||||||
8,025 | ||||||||
Healthcare – 14.3% | ||||||||
Abbott Laboratories | 13,047 | 720 | ||||||
Aetna 6 | 10,081 | 251 | ||||||
Allergan | 559 | 22 | ||||||
AmerisourceBergen | 3,914 | 122 | ||||||
Amgen 6 = | 9,618 | 576 | ||||||
Applied Biosystems | 2,086 | 64 | ||||||
Baxter International | 4,251 | 257 | ||||||
Becton, Dickinson & Company | 9,065 | 629 | ||||||
Bristol-Myers Squibb | 28,436 | 584 | ||||||
C.R. Bard | 2,969 | 262 | ||||||
Cardinal Health | 6,147 | 235 | ||||||
CIGNA | 7,961 | 130 | ||||||
Coventry Health Care 6 = | 5,008 | 66 | ||||||
Eli Lilly 6 | 19,140 | 647 | ||||||
Forest Laboratories = | 11,023 | 256 | ||||||
Hospira 6 = | 48 | 1 | ||||||
Humana = | 3,356 | 99 | ||||||
Intuitive Surgical = | 114 | 20 | ||||||
Johnson & Johnson | 32,071 | 1,967 | ||||||
King Pharmaceuticals = | 5,970 | 53 | ||||||
McKesson | 2,008 | 74 | ||||||
Medco Health Solutions = | 510 | 19 | ||||||
Medtronic | 14,012 | 565 | ||||||
Merck | 32,168 | 996 | ||||||
Patterson Companies 6 = | 5,738 | 145 | ||||||
PerkinElmer | 8,125 | 146 | ||||||
Pfizer | 98,899 | 1,752 | ||||||
Schering-Plough | 6,298 | 91 | ||||||
St. Jude Medical = | 3,145 | 120 | ||||||
Stryker | 6,649 | 356 | ||||||
Thermo Fisher Scientific = | 1,834 | 75 | ||||||
UnitedHealth Group 6 | 16,526 | 392 | ||||||
Varian Medical Systems 6 = | 2,753 | 125 | ||||||
WellPoint = | 7,126 | 277 | ||||||
Wyeth | 13,391 | 431 | ||||||
Zimmer Holdings 6 = | 5,888 | 273 | ||||||
12,798 | ||||||||
Industrials – 10.5% | ||||||||
3M | 14,267 | 917 | ||||||
Avery Dennison 6 | 671 | 24 | ||||||
Boeing 6 | 11,984 | 626 | ||||||
C.H. Robinson Worldwide 6 | 437 | 23 | ||||||
Caterpillar | 191 | 7 | ||||||
Cintas 6 | 14,142 | 335 | ||||||
Cooper Industries, Class A | 8,519 | 264 | ||||||
Cummins | 1,070 | 28 | ||||||
Danaher 6 | 1,522 | 90 | ||||||
Deere & Company | 451 | 17 | ||||||
Dover | 4,888 | 155 | ||||||
Eaton | 3,428 | 153 | ||||||
Emerson Electric | 10,762 | 352 | ||||||
Expeditors International of Washington | 2,543 | 83 | ||||||
FedEx | 611 | 40 | ||||||
Fluor | 1,509 | 60 | ||||||
General Dynamics 6 | 6,945 | 419 | ||||||
General Electric | 78,352 | 1,529 | ||||||
Goodrich | 4,351 | 159 | ||||||
Honeywell International | 8,527 | 260 | ||||||
Illinois Tool Works 6 | 17,456 | 583 | ||||||
Ingersoll-Rand, Class A | 6,518 | 120 | ||||||
ITT | 1,890 | 84 | ||||||
Lockheed Martin | 1,581 | 135 | ||||||
Manitowoc 6 | 7,089 | 70 | ||||||
Monster Worldwide 6 = | 9,071 | 129 | ||||||
Northrop Grumman | 3,306 | 155 | ||||||
Pall | 2,007 | 53 | ||||||
Parker Hannifin | 4,754 | 184 | ||||||
Precision Castparts | 2,731 | 177 | ||||||
Raytheon | 1,685 | 86 | ||||||
Robert Half International 6 | 8,375 | 158 | ||||||
Rockwell Automation 6 | 6,664 | 184 | ||||||
Rockwell Collins 6 | 13,065 | 487 | ||||||
Terex 6 = | 3,004 | 50 | ||||||
Textron | 3,227 | 57 | ||||||
Union Pacific | 1,006 | 67 | ||||||
United Parcel Service, Class B 6 | 6,153 | 325 | ||||||
United Technologies 6 | 10,618 | 584 | ||||||
W.W. Grainger | 855 | 67 | ||||||
Waste Management 6 | 1,758 | 55 | ||||||
9,351 | ||||||||
Information Technology – 16.0% | ||||||||
Adobe Systems = | 5,245 | 140 | ||||||
Akamai Technologies 6 = | 1,466 | 21 | ||||||
Analog Devices | 2,474 | 53 | ||||||
Apple 6 = | 6,303 | 678 | ||||||
Applied Materials 6 | 15,868 | 205 | ||||||
Autodesk 6 = | 6,368 | 136 | ||||||
Automatic Data Processing | 26,008 | 909 | ||||||
BMC Software = | 6,254 | 161 | ||||||
Broadcom, Class A = | 2,533 | 43 | ||||||
Cisco Systems = | 59,977 | 1,066 | ||||||
Citrix Systems = | 7,203 | 186 | ||||||
Cognizant Technology Solutions, Class A = | 8,512 | 163 | ||||||
Computer Sciences = | 9,450 | 285 | ||||||
Compuware = | 16,531 | 105 | ||||||
Convergys = | 14,760 | 114 | ||||||
Corning 6 | 1,655 | 18 | ||||||
Dell = | 25,419 | 309 | ||||||
eBay = | 17,339 | 265 | ||||||
Electronic Arts = | 2,925 | 67 | ||||||
EMC = | 26,558 | 313 | ||||||
Google, Class A = | 2,191 | 787 | ||||||
Harris | 801 | 29 | ||||||
Hewlett-Packard | 19,493 | 746 | ||||||
IBM | 9,702 | 902 |
First American Funds 2008 Annual Report 13
Table of Contents
Schedule of Investments October 31, 2008, all dollars are rounded to thousands (000)
Quantitative Large Cap Core Fund (continued) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Intel 6 | 64,282 | $ | 1,029 | |||||
Intuit 6 = | 6,600 | 165 | ||||||
Jabil Circuit | 8,100 | 68 | ||||||
Lexmark International, Class A 6 = | 1,279 | 33 | ||||||
MEMC Electronic Materials = | 4,091 | 75 | ||||||
Microsoft | 88,614 | 1,979 | ||||||
Molex | 13,893 | 200 | ||||||
Motorola | 29,576 | 159 | ||||||
NetApp 6 = | 5,567 | 75 | ||||||
NVIDIA = | 7,019 | 61 | ||||||
Oracle = | 41,220 | 754 | ||||||
Paychex 6 | 10,361 | 296 | ||||||
QLogic = | 3,844 | 46 | ||||||
QUALCOMM | 14,295 | 547 | ||||||
Symantec = | 3,915 | 49 | ||||||
Tellabs = | 12,052 | 51 | ||||||
Teradata = | 6,665 | 103 | ||||||
Texas Instruments | 22,160 | 433 | ||||||
Total System Services | 16,369 | 225 | ||||||
Tyco Electronics 6 | 5,996 | 117 | ||||||
Waters 6 = | 1,413 | 62 | ||||||
Xerox 6 | 8,251 | 66 | ||||||
14,294 | ||||||||
Materials – 2.9% | ||||||||
Air Products and Chemicals | 3,861 | 224 | ||||||
Alcoa 6 | 7,815 | 90 | ||||||
Allegheny Technologies 6 | 6,015 | 160 | ||||||
Ashland 6 | 5,293 | 120 | ||||||
Bemis 6 | 6,948 | 173 | ||||||
Dow Chemical 6 | 12,370 | 330 | ||||||
E.I. Du Pont de Nemours 6 | 12,620 | 404 | ||||||
Ecolab | 1,425 | 53 | ||||||
Freeport-McMoRan Copper & Gold 6 | 1,974 | 57 | ||||||
Monsanto 6 | 2,303 | 205 | ||||||
Nucor | 7,303 | 296 | ||||||
PPG Industries 6 | 5,191 | 257 | ||||||
Praxair | 2,597 | 169 | ||||||
Sigma-Aldrich 6 | 1,231 | 54 | ||||||
Titanium Metals 6 | 2,721 | 25 | ||||||
United States Steel 6 | 707 | 26 | ||||||
2,643 | ||||||||
Telecommunication Services – 2.9% | ||||||||
AT&T | 57,651 | 1,543 | ||||||
CenturyTel | 2,688 | 68 | ||||||
Verizon Communications | 34,367 | 1,020 | ||||||
2,631 | ||||||||
Utilities – 3.6% | ||||||||
Consolidated Edison | 2,041 | 88 | ||||||
Constellation Energy | 4,719 | 114 | ||||||
Dominion Resources 6 | 3,368 | 122 | ||||||
DTE Energy | 749 | 27 | ||||||
Duke Energy | 10,146 | 166 | ||||||
Edison International | 2,161 | 77 | ||||||
FPL Group | 4,641 | 219 | ||||||
Integrys Energy Group | 7,914 | 377 | ||||||
Nicor 6 | 7,943 | 367 | ||||||
NiSource | 17,732 | 230 | ||||||
Pepco Holdings | 1,965 | 41 | ||||||
PG&E | 5,872 | 215 | ||||||
Public Service Enterprise Group | 4,470 | 126 | ||||||
Questar | 12,675 | 437 | ||||||
Sempra Energy | 9,144 | 390 | ||||||
Southern 6 | 1,317 | 45 | ||||||
Xcel Energy | 9,356 | 163 | ||||||
3,204 | ||||||||
Total Common Stocks | ||||||||
(Cost $101,507) | 79,920 | |||||||
Short-Term Investments – 10.5% | ||||||||
Money Market Fund – 9.3% | ||||||||
First American Prime Obligations Fund, Class Z Å | 8,265,988 | 8,266 | ||||||
U.S. Treasury Obligation – 1.2% | ||||||||
U.S. Treasury Bill o | ||||||||
1.761%, 12/18/2008 | $ | 1,100 | 1,097 | |||||
Total Short-Term Investments | ||||||||
(Cost $9,363) | 9,363 | |||||||
Investment Purchased with Proceeds from Securities Lending – 21.9% | ||||||||
Mount Vernon Securities Lending Prime Portfolio † | ||||||||
(Cost $19,563) | 19,563,263 | 19,563 | ||||||
Total Investments – 121.8% | ||||||||
(Cost $130,433) | 108,846 | |||||||
Other Assets and Liabilities, Net – (21.8)% | (19,445 | ) | ||||||
Total Net Assets – 100.0% | $ | 89,401 | ||||||
6 | This security or a portion of this security is out on loan at October 31, 2008. Total loaned securities had a market value of $19,282 at October 31, 2008. See note 2 in Notes to Financial Statements. | |
= | Non-income producing security. | |
Å | Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor to 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 October 31, 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. |
Schedule of Open Futures Contracts
Number of | Notional | |||||||||||||
Contracts | Contract | Settlement | Unrealized | |||||||||||
Description | Purchased | Value | Month | Appreciation | ||||||||||
S&P 500 Futures | 20 | $ | 4,837 | December 2008 | $ | 124 | ||||||||
The accompanying notes are an integral part of the financial statements.
14 First American Funds 2008 Annual Report
Table of Contents
Quantitative Large Cap Growth Fund | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Common Stocks – 97.3% | ||||||||
Consumer Discretionary – 6.9% | ||||||||
Abercrombie & Fitch, Class A 6 | 849 | $ | 25 | |||||
Amazon.com 6 = | 1,013 | 58 | ||||||
American Eagle Outfitters 6 | 954 | 11 | ||||||
AnnTaylor Stores = | 246 | 3 | ||||||
Apollo Group, Class A 6 = | 851 | 59 | ||||||
Bed Bath & Beyond 6 = | 1,181 | 30 | ||||||
Best Buy 6 | 552 | 15 | ||||||
Carnival 6 | 1,157 | 29 | ||||||
Chipotle Mexican Grill, Class A 6 = | 130 | 7 | ||||||
Coach 6 = | 2,016 | 41 | ||||||
CTC Media = | 1,156 | 9 | ||||||
DeVry | 416 | 24 | ||||||
Dollar Tree 6 = | 630 | 24 | ||||||
DreamWorks Animation, Class A = | 333 | 9 | ||||||
Expedia = | 1,352 | 13 | ||||||
Gap 6 | 280 | 4 | ||||||
Garmin 6 | 1,436 | 32 | ||||||
Harley-Davidson 6 | 279 | 7 | ||||||
Harman International Industries | 660 | 12 | ||||||
Hillenbrand | 735 | 14 | ||||||
International Game Technology | 1,958 | 27 | ||||||
International Speedway, Class A | 1,757 | 55 | ||||||
Interval Leisure Group = | 1,408 | 10 | ||||||
Johnson Controls | 224 | 4 | ||||||
Kohl’s 6 = | 318 | 11 | ||||||
Liberty Media Entertainment, Series A 6 = | 1,227 | 20 | ||||||
Limited Brands 6 | 277 | 3 | ||||||
Lowe’s 6 | 402 | 9 | ||||||
Mattel | 1,537 | 23 | ||||||
McDonald’s | 1,344 | 78 | ||||||
McGraw-Hill 6 | 1,115 | 30 | ||||||
Newell Rubbermaid | 300 | 4 | ||||||
News, Class A 6 | 4,634 | 49 | ||||||
Nike, Class B 6 | 1,433 | 83 | ||||||
Office Depot = | 2,002 | 7 | ||||||
Omnicom Group | 2,405 | 71 | ||||||
O’Reilly Automotive 6 = | 741 | 20 | ||||||
PetSmart 6 | 460 | 9 | ||||||
Phillips-Van Heusen | 298 | 7 | ||||||
Priceline.com = | 77 | 4 | ||||||
RadioShack | 35 | — | ||||||
Ross Stores 6 | 481 | 16 | ||||||
Sherwin-Williams 6 | 858 | 49 | ||||||
Signet Jewelers 6 | 1,644 | 17 | ||||||
Snap-On | 299 | 11 | ||||||
Stanley Works 6 | 278 | 9 | ||||||
Staples 6 | 1,690 | 33 | ||||||
Starbucks 6 = | 2,740 | 36 | ||||||
Strayer Education | 48 | 11 | ||||||
Target 6 | 1,368 | 55 | ||||||
Tiffany & Company 6 | 260 | 7 | ||||||
Tim Hortons | 1,001 | 25 | ||||||
TJX | 1,652 | 44 | ||||||
VF | 438 | 24 | ||||||
Viacom, Class B 6 = | 4,122 | 83 | ||||||
Williams-Sonoma 6 | 555 | 5 | ||||||
Wyndham Worldwide 6 | 920 | 8 | ||||||
1,383 | ||||||||
Consumer Staples – 11.6% | ||||||||
Alberto-Culver | 938 | 24 | ||||||
Altria Group | 6,521 | 125 | ||||||
Archer-Daniels-Midland 6 | 608 | 13 | ||||||
Avon Products 6 | 645 | 16 | ||||||
Brown-Forman, Class B | 1,576 | 72 | ||||||
Campbell Soup | 31 | 1 | ||||||
Coca-Cola | 5,541 | 244 | ||||||
Colgate-Palmolive | 1,501 | 94 | ||||||
Corn Products International | 460 | 11 | ||||||
Costco Wholesale 6 | 1,362 | 78 | ||||||
CVS Caremark | 1,199 | 37 | ||||||
Estee Lauder, Class A 6 | 40 | 2 | ||||||
Hansen Natural 6 = | 305 | 8 | ||||||
Hormel Foods | 2,101 | 59 | ||||||
Kimberly-Clark | 411 | 25 | ||||||
Kroger 6 | 411 | 11 | ||||||
Lorillard | 839 | 55 | ||||||
McCormick 6 | 720 | 24 | ||||||
Molson Coors Brewing, Class B | 55 | 2 | ||||||
NBTY = | 562 | 13 | ||||||
Pepsi Bottling Group | 226 | 5 | ||||||
PepsiAmericas | 1,623 | 31 | ||||||
PepsiCo | 5,253 | 300 | ||||||
Philip Morris International | 6,462 | 281 | ||||||
Procter & Gamble | 3,227 | 208 | ||||||
Safeway | 103 | 2 | ||||||
Sysco | 4,551 | 119 | ||||||
Walgreen 6 | 4,800 | 122 | ||||||
Wal-Mart Stores 6 | 5,709 | 319 | ||||||
Whole Foods Market 6 | 1,866 | 20 | ||||||
2,321 | ||||||||
Energy – 10.3% | ||||||||
Apache 6 | 77 | 6 | ||||||
Arch Coal 6 | 257 | 6 | ||||||
Atwood Oceanics = | 556 | 15 | ||||||
Baker Hughes 6 | 2,295 | 80 | ||||||
BJ Services | 2,088 | 27 | ||||||
Chevron | 1,920 | 143 | ||||||
CNX Gas = | 1,290 | 33 | ||||||
ConocoPhillips 6 | 929 | 48 | ||||||
CONSOL Energy 6 | 358 | 11 | ||||||
Denbury Resources 6 = | 26 | — | ||||||
Diamond Offshore Drilling 6 | 446 | 40 | ||||||
Dresser-Rand Group 6 = | 883 | 20 | ||||||
ENSCO International 6 | 1,137 | 43 | ||||||
EOG Resources | 201 | 16 | ||||||
Exxon Mobil | 6,359 | 471 | ||||||
FMC Technologies 6 = | 768 | 27 | ||||||
Frontier Oil | 2,609 | 35 | ||||||
Global Industries 6 = | 1,648 | 4 | ||||||
Halliburton 6 | 3,425 | 68 | ||||||
Helmerich & Payne 6 | 296 | 10 | ||||||
Hess | 772 | 47 | ||||||
Holly | 1,064 | 21 | ||||||
Marathon Oil | 1,372 | 40 | ||||||
Murphy Oil 6 | 1,721 | 87 | ||||||
National-Oilwell Varco 6 = | 2,084 | 62 | ||||||
Noble | 2,403 | 78 | ||||||
Noble Energy | 18 | 1 | ||||||
Occidental Petroleum | 3,563 | 198 | ||||||
Oceaneering International 6 = | 290 | 8 | ||||||
Oil States International = | 655 | 15 | ||||||
Patterson-UTI Energy 6 | 2,563 | 34 | ||||||
Peabody Energy 6 | 149 | 5 | ||||||
Rowan 6 | 296 | 5 | ||||||
Schlumberger 6 | 4,630 | 239 | ||||||
Smith International 6 | 181 | 6 | ||||||
Spectra Energy 6 | 98 | 2 | ||||||
Sunoco 6 | 1,120 | 34 |
First American Funds 2008 Annual Report 15
Table of Contents
Schedule of Investments October 31, 2008, all dollars are rounded to thousands (000)
Quantitative Large Cap Growth Fund (continued) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
TETRA Technologies = | 448 | $ | 3 | |||||
Tidewater 6 | 197 | 9 | ||||||
Unit 6 = | 688 | 26 | ||||||
Valero Energy | 809 | 17 | ||||||
Weatherford International = | 1,675 | 28 | ||||||
2,068 | ||||||||
Financials – 2.5% | ||||||||
American National Insurance | 201 | 14 | ||||||
Ameriprise Financial | 556 | 12 | ||||||
Charles Schwab | 3,033 | 58 | ||||||
CME Group 6 | 127 | 36 | ||||||
Erie Indemnity | 1,482 | 55 | ||||||
Federated Investors, Class B 6 | 183 | 4 | ||||||
Franklin Resources | 406 | 28 | ||||||
Hartford Financial Services Group | 1,195 | 12 | ||||||
IntercontinentalExchange = | 167 | 14 | ||||||
NYSE Euronext | 625 | 19 | ||||||
Principal Financial Group | 1,138 | 22 | ||||||
Protective Life | 2,718 | 23 | ||||||
SEI Investments | 1,815 | 32 | ||||||
StanCorp Financial Group | 287 | 10 | ||||||
State Street | 517 | 22 | ||||||
T. Rowe Price Group 6 | 1,163 | 46 | ||||||
TD Ameritrade = | 2,194 | 29 | ||||||
Transatlantic Holdings | 1,481 | 64 | ||||||
500 | ||||||||
Healthcare – 15.9% | ||||||||
Abbott Laboratories | 5,878 | 324 | ||||||
Aetna 6 | 2,636 | 66 | ||||||
Allergan | 844 | 33 | ||||||
AmerisourceBergen | 672 | 21 | ||||||
Amgen 6 = | 218 | 13 | ||||||
Applied Biosystems | 454 | 14 | ||||||
Baxter International | 2,237 | 135 | ||||||
Beckman Coulter | 432 | 22 | ||||||
Becton, Dickinson & Company | 2,636 | 183 | ||||||
Biogen Idec = | 137 | 6 | ||||||
Bristol-Myers Squibb | 8,490 | 174 | ||||||
C.R. Bard | 905 | 80 | ||||||
Cardinal Health 6 | 1,577 | 60 | ||||||
Cerner 6 = | 638 | 24 | ||||||
Charles River Laboratories International 6 = | 112 | 4 | ||||||
CIGNA | 1,038 | 17 | ||||||
Coventry Health Care = | 453 | 6 | ||||||
DENTSPLY International 6 | 1,487 | 45 | ||||||
Edwards Lifesciences 6 = | 188 | 10 | ||||||
Eli Lilly 6 | 2,751 | 93 | ||||||
Endo Pharmaceuticals Holdings 6 = | 3,429 | 63 | ||||||
Forest Laboratories = | 2,094 | 49 | ||||||
Genentech 6 = | 1,729 | 143 | ||||||
Gen-Probe = | 797 | 38 | ||||||
Genzyme 6 = | 384 | 28 | ||||||
Gilead Sciences 6 = | 1,069 | 49 | ||||||
Henry Schein 6 = | 1,137 | 53 | ||||||
Humana = | 545 | 16 | ||||||
IDEXX Laboratories 6 = | 1,086 | 38 | ||||||
Intuitive Surgical = | 70 | 12 | ||||||
Johnson & Johnson | 4,084 | 251 | ||||||
Kinetic Concepts 6 = | 1,447 | 35 | ||||||
King Pharmaceuticals = | 355 | 3 | ||||||
McKesson | 752 | 28 | ||||||
Medco Health Solutions = | 919 | 35 | ||||||
Medtronic | 4,989 | 201 | ||||||
Merck | 5,246 | 162 | ||||||
Patterson Companies 6 = | 1,370 | 35 | ||||||
Pediatrix Medical Group 6 = | 242 | 9 | ||||||
PerkinElmer | 1,228 | 22 | ||||||
Pfizer | 6,390 | 113 | ||||||
Pharmaceutical Product Development 6 | 132 | 4 | ||||||
Resmed 6 = | 85 | 3 | ||||||
Schering-Plough | 3,846 | 56 | ||||||
St. Jude Medical = | 1,454 | 55 | ||||||
Stryker | 2,297 | 123 | ||||||
Techne = | 474 | 33 | ||||||
UnitedHealth Group 6 | 2,806 | 67 | ||||||
Varian Medical Systems 6 = | 566 | 26 | ||||||
WellCare Health Plans = | 23 | 1 | ||||||
WellPoint = | 592 | 23 | ||||||
Wyeth | 157 | 5 | ||||||
Zimmer Holdings 6 = | 1,548 | 72 | ||||||
3,181 | ||||||||
Industrials – 12.6% | ||||||||
3M 6 | 4,363 | 281 | ||||||
AMETEK | 134 | 4 | ||||||
BE Aerospace = | 2,028 | 26 | ||||||
Boeing 6 | 3,929 | 205 | ||||||
Brinks | 443 | 22 | ||||||
Burlington Northern Santa Fe | 73 | 7 | ||||||
C.H. Robinson Worldwide 6 | 399 | 21 | ||||||
Career Education = | 1,410 | 22 | ||||||
Carlisle Companies | 1,272 | 30 | ||||||
Caterpillar 6 | 483 | 18 | ||||||
Cintas | 1,519 | 36 | ||||||
Cooper Industries, Class A | 1,295 | 40 | ||||||
Copart 6 = | 1,337 | 47 | ||||||
Corporate Executive Board | 1,311 | 39 | ||||||
CSX | 133 | 6 | ||||||
Cummins | 474 | 12 | ||||||
Danaher 6 | 683 | 40 | ||||||
Deere & Company | 828 | 32 | ||||||
Donaldson 6 | 260 | 9 | ||||||
Dover | 1,450 | 46 | ||||||
Eaton | 548 | 24 | ||||||
Emerson Electric | 3,779 | 124 | ||||||
Expeditors International of Washington | 959 | 31 | ||||||
Fluor | 429 | 17 | ||||||
Gardner Denver = | 156 | 4 | ||||||
General Dynamics | 800 | 48 | ||||||
Goodrich | 864 | 32 | ||||||
Harsco 6 | 1,865 | 44 | ||||||
Honeywell International | 3,101 | 94 | ||||||
Hubbell, Class B 6 | 2,845 | 102 | ||||||
IDEX | 205 | 5 | ||||||
IHS, Class A = | 308 | 11 | ||||||
Illinois Tool Works 6 | 2,898 | 97 | ||||||
Ingersoll-Rand, Class A 6 | 667 | 12 | ||||||
ITT 6 | 249 | 11 | ||||||
ITT Educational Services = | 120 | 11 | ||||||
Joy Global 6 | 340 | 10 | ||||||
Kennametal | 642 | 14 | ||||||
Lennox International 6 | 165 | 5 | ||||||
Lincoln Electric Holdings 6 | 914 | 39 | ||||||
Lockheed Martin | 949 | 81 | ||||||
Manitowoc 6 | 1,582 | 16 | ||||||
Manpower 6 | 704 | 22 | ||||||
Monster Worldwide 6 = | 1,806 | 26 | ||||||
MSC Industrial Direct, Class A | 85 | 3 | ||||||
Northrop Grumman | 135 | 6 | ||||||
Pall | 199 | 5 |
The accompanying notes are an integral part of the financial statements.
16 First American Funds 2008 Annual Report
Table of Contents
Quantitative Large Cap Growth Fund (continued) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Parker Hannifin | 1,239 | $ | 48 | |||||
Precision Castparts | 933 | 61 | ||||||
Republic Services | 1,233 | 29 | ||||||
Robert Half International 6 | 1,276 | 24 | ||||||
Rockwell Automation 6 | 1,884 | 52 | ||||||
Rockwell Collins 6 | 3,317 | 124 | ||||||
Spirit AeroSystems Holdings, Class A = | 296 | 5 | ||||||
Terex 6 = | 137 | 2 | ||||||
Textron | 287 | 5 | ||||||
Thomas & Betts = | 390 | 9 | ||||||
Timken 6 | 1,396 | 22 | ||||||
Union Pacific | 800 | 53 | ||||||
United Parcel Service, Class B 6 | 1,695 | 90 | ||||||
United Technologies 6 | 2,445 | 134 | ||||||
W.W. Grainger | 470 | 37 | ||||||
WESCO International 6 = | 10 | — | ||||||
2,532 | ||||||||
Information Technology ⊳ – 29.3% | ||||||||
Accenture, Class A | 2,884 | 95 | ||||||
Activision Blizzard = | 2,553 | 32 | ||||||
Adobe Systems = | 2,395 | 64 | ||||||
Akamai Technologies 6 = | 428 | 6 | ||||||
Altera 6 | 43 | 1 | ||||||
Amdocs = | 2,065 | 47 | ||||||
Analog Devices | 1,166 | 25 | ||||||
Apple 6 = | 3,197 | 344 | ||||||
Applied Materials 6 | 6,351 | 82 | ||||||
Arrow Electronics = | 960 | 17 | ||||||
Atmel 6 = | 796 | 3 | ||||||
Autodesk 6 = | 1,951 | 42 | ||||||
Automatic Data Processing | 6,656 | 233 | ||||||
Avnet = | 892 | 15 | ||||||
AVX | 3,045 | 27 | ||||||
BMC Software = | 1,604 | 41 | ||||||
Broadcom, Class A = | 1,774 | 30 | ||||||
Cisco Systems = | 24,664 | 438 | ||||||
Citrix Systems 6 = | 1,961 | 50 | ||||||
Cognizant Technology Solutions, Class A = | 2,449 | 47 | ||||||
Computer Sciences = | 1,445 | 44 | ||||||
Compuware = | 4,192 | 27 | ||||||
Convergys = | 2,679 | 21 | ||||||
Corning 6 | 3,149 | 34 | ||||||
Dell = | 9,536 | 116 | ||||||
Dolby Laboratories, Class A = | 60 | 2 | ||||||
DST Systems 6 = | 349 | 14 | ||||||
eBay = | 6,205 | 95 | ||||||
Electronic Arts = | 1,190 | 27 | ||||||
EMC = | 7,105 | 84 | ||||||
F5 Networks 6 = | 240 | 6 | ||||||
FactSet Research Systems 6 | 354 | 14 | ||||||
Genpact Limited = | 2,067 | 16 | ||||||
Global Payments | 572 | 23 | ||||||
Google, Class A = | 949 | 341 | ||||||
Harris | 752 | 27 | ||||||
Hewlett-Packard | 9,093 | 348 | ||||||
IBM | 4,732 | 440 | ||||||
Ingram Micro, Class A = | 477 | 6 | ||||||
Integrated Device Technology = | 721 | 5 | ||||||
Intel 6 | 22,049 | 353 | ||||||
Intersil, Class A | 996 | 14 | ||||||
Intuit 6 = | 1,547 | 39 | ||||||
Jabil Circuit | 780 | 7 | ||||||
Juniper Networks = | 372 | 7 | ||||||
Marvell Technology Group = | 870 | 6 | ||||||
MasterCard, Class A 6 | 18 | 3 | ||||||
McAfee = | 872 | 28 | ||||||
MEMC Electronic Materials = | 1,344 | 25 | ||||||
Mettler-Toledo International = | 281 | 21 | ||||||
Microsoft | 36,208 | 808 | ||||||
Molex | 2,530 | 36 | ||||||
National Instruments 6 | 1,440 | 37 | ||||||
NCR 6 = | 859 | 16 | ||||||
NetApp 6 = | 1,999 | 27 | ||||||
NVIDIA = | 1,101 | 10 | ||||||
Oracle = | 16,236 | 297 | ||||||
Paychex 6 | 3,098 | 88 | ||||||
QLogic = | 371 | 4 | ||||||
QUALCOMM | 6,483 | 248 | ||||||
Red Hat 6 = | 97 | 1 | ||||||
Sohu.com 6 = | 182 | 10 | ||||||
Synopsys = | 2,699 | 49 | ||||||
Teradata = | 1,639 | 25 | ||||||
Texas Instruments | 7,170 | 140 | ||||||
Total System Services | 3,274 | 45 | ||||||
Trimble Navigation 6 = | 1,393 | 29 | ||||||
Varian Semiconductor Equipment Associates = | 732 | 14 | ||||||
Visa, Class A 6 | 285 | 16 | ||||||
VMware, Class A = | 142 | 4 | ||||||
Waters 6 = | 354 | 15 | ||||||
Western Digital 6 = | 832 | 14 | ||||||
Yahoo! 6 = | 6,382 | 82 | ||||||
Zebra Technologies, Class A 6 = | 1,663 | 34 | ||||||
5,881 | ||||||||
Materials – 3.9% | ||||||||
Air Products and Chemicals 6 | 1,099 | 64 | ||||||
Albemarle | 843 | 21 | ||||||
Alcoa 6 | 1,243 | 14 | ||||||
Allegheny Technologies 6 | 1,368 | 36 | ||||||
AptarGroup | 393 | 12 | ||||||
Ashland 6 | 609 | 14 | ||||||
Cabot Microelectronics 6 | 450 | 12 | ||||||
Carpenter Technology 6 | 1,644 | 30 | ||||||
CF Industries Holdings 6 | 223 | 14 | ||||||
Cliffs Natural Resources 6 | 533 | 14 | ||||||
Commercial Metals | 2,591 | 29 | ||||||
Cytec Industries 6 | 550 | 16 | ||||||
Dow Chemical 6 | 230 | 6 | ||||||
E.I. Du Pont de Nemours 6 | 293 | 9 | ||||||
Ecolab | 969 | 36 | ||||||
FMC 6 | 211 | 9 | ||||||
Intrepid Potash 6 = | 662 | 14 | ||||||
Lubrizol 6 | 480 | 18 | ||||||
Monsanto 6 | 1,499 | 133 | ||||||
Mosaic 6 | 372 | 15 | ||||||
Nucor | 1,022 | 41 | ||||||
PPG Industries 6 | 836 | 41 | ||||||
Praxair | 1,092 | 71 | ||||||
Reliance Steel & Aluminum 6 | 662 | 17 | ||||||
Schnitzer Steel Industries, Class A 6 | 438 | 12 | ||||||
Scotts Miracle-Gro, Class A 6 | 35 | 1 | ||||||
Sigma-Aldrich 6 | 459 | 20 | ||||||
Sonoco Products | 116 | 3 | ||||||
Southern Copper | 1,923 | 28 | ||||||
Steel Dynamics 6 | 638 | 8 | ||||||
Titanium Metals 6 | 815 | 8 | ||||||
United States Steel 6 | 336 | 12 | ||||||
Valspar 6 | 368 | 8 | ||||||
786 | ||||||||
First American Funds 2008 Annual Report 17
Table of Contents
Schedule of Investments October 31, 2008, all dollars are rounded to thousands (000)
Quantitative Large Cap Growth Fund (continued) | ||||||||
DESCRIPTION | SHARES/PAR | VALUE | ||||||
Telecommunication Services – 0.7% | ||||||||
NeuStar, Class A 6 = | 883 | $ | 17 | |||||
NII Holdings = | 447 | 11 | ||||||
Telephone & Data Systems | 331 | 9 | ||||||
U.S. Cellular = | 1,582 | 61 | ||||||
Verizon Communications | 1,236 | 37 | ||||||
135 | ||||||||
Utilities – 3.6% | ||||||||
AGL Resources 6 | 2,412 | 73 | ||||||
Alliant Energy 6 | 2,671 | 78 | ||||||
Aqua America 6 | 2,404 | 43 | ||||||
Constellation Energy | 704 | 17 | ||||||
Energen | 1,683 | 57 | ||||||
Equitable Resources 6 | 1,078 | 37 | ||||||
Integrys Energy Group | 461 | 22 | ||||||
National Fuel Gas 6 | 1,926 | 70 | ||||||
NSTAR | 514 | 17 | ||||||
OGE Energy | 1,446 | 40 | ||||||
Questar | 2,956 | 102 | ||||||
SCANA | 662 | 22 | ||||||
Sempra Energy | 593 | 25 | ||||||
UGI | 3,272 | 78 | ||||||
Vectren | 1,652 | 42 | ||||||
723 | ||||||||
Total Common Stocks | ||||||||
(Cost $24,004) | 19,510 | |||||||
Short-Term Investments – 2.4% | ||||||||
Money Market Fund – 0.8% | ||||||||
First American Prime Obligations Fund, Class Z Å | 162,655 | 163 | ||||||
U.S. Treasury Obligation – 1.6% | ||||||||
U.S. Treasury Bill | ||||||||
1.014%, 12/18/2008 | $ | 320 | 319 | |||||
Total Short-Term Investments | ||||||||
(Cost $482) | 482 | |||||||
Investment Purchased with Proceeds from Securities Lending – 28.5% | ||||||||
Mount Vernon Securities Lending Prime Portfolio † | ||||||||
(Cost $5,705) | 5,705,274 | 5,705 | ||||||
Total Investments – 128.2% | ||||||||
(Cost $30,191) | 25,697 | |||||||
Other Assets and Liabilities, Net – (28.2)% | (5,651 | ) | ||||||
Total Net Assets – 100.0% | $ | 20,046 | ||||||
Quantitative Large Cap Growth Fund (concluded)
6 | This security or a portion of this security is out on loan at October 31, 2008. Total loaned securities had a market value of $5,622 at October 31, 2008. See note 2 in Notes to Financial Statements. | |
= | Non-income producing security. | |
⊳ | The fund is significantly invested in this sector and therefore subject to additional risks. See note 6 in Notes to Financial Statements. | |
Å | Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor to this fund. See note 3 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.
18 First American Funds 2008 Annual Report
Table of Contents
Quantitative Large Cap Value Fund | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Common Stocks – 87.2% | ||||||||
Consumer Discretionary – 6.2% | ||||||||
Abercrombie & Fitch, Class A 6 | 494 | $ | 14 | |||||
American Eagle Outfitters 6 | 476 | 5 | ||||||
AnnTaylor Stores 6 = | 669 | 8 | ||||||
Apollo Group, Class A 6 = | 216 | 15 | ||||||
AutoNation 6 = | 702 | 5 | ||||||
Barnes & Noble 6 | 335 | 6 | ||||||
Bed Bath & Beyond 6 = | 634 | 16 | ||||||
Carnival 6 | 2,014 | 51 | ||||||
Coach 6 = | 456 | 9 | ||||||
DeVry | 23 | 1 | ||||||
Dollar Tree 6 = | 148 | 6 | ||||||
Expedia = | 2,038 | 19 | ||||||
Family Dollar Stores | 108 | 3 | ||||||
Fortune Brands | 266 | 10 | ||||||
Gannett 6 | 333 | 4 | ||||||
Gap 6 | 510 | 7 | ||||||
Garmin 6 = | 820 | 18 | ||||||
Harley-Davidson | 177 | 4 | ||||||
Harman International Industries | 695 | 13 | ||||||
Hillenbrand | 365 | 7 | ||||||
Home Depot 6 | 2,850 | 67 | ||||||
International Game Technology | 947 | 13 | ||||||
International Speedway, Class A | 1,380 | 43 | ||||||
Interval Leisure Group = | 1,480 | 11 | ||||||
J.C. Penney 6 | 510 | 12 | ||||||
Johnson Controls | 321 | 6 | ||||||
Liberty Media Interactive, Class A 6 = | 138 | 1 | ||||||
Limited Brands 6 | 79 | 1 | ||||||
Lowe’s 6 | 4,107 | 89 | ||||||
Mattel | 2,208 | 33 | ||||||
McGraw-Hill 6 | 1,123 | 30 | ||||||
Meredith 6 | 328 | 6 | ||||||
Newell Rubbermaid | 2,132 | 29 | ||||||
News, Class A 6 | 6,473 | 69 | ||||||
Nike, Class B 6 | 133 | 8 | ||||||
Office Depot = | 6,610 | 24 | ||||||
Omnicom Group | 954 | 28 | ||||||
O’Reilly Automotive 6 = | 747 | 20 | ||||||
Phillips-Van Heusen 6 | 30 | 1 | ||||||
RadioShack | 169 | 2 | ||||||
Royal Caribbean Cruises 6 | 658 | 9 | ||||||
Sherwin-Williams 6 | 194 | 11 | ||||||
Signet Jewelers Limited | 1,884 | 19 | ||||||
Snap-On | 78 | 3 | ||||||
Stanley Works 6 | 183 | 6 | ||||||
Staples 6 | 334 | 7 | ||||||
Starbucks 6 = | 503 | 7 | ||||||
Ticketmaster = | 354 | 4 | ||||||
Time Warner | 5,294 | 54 | ||||||
VF | 523 | 29 | ||||||
Viacom, Class B 6 = | 2,077 | 42 | ||||||
Walt Disney 6 | 3,221 | 84 | ||||||
Washington Post, Class B | 49 | 21 | ||||||
Williams-Sonoma 6 | 1,153 | 10 | ||||||
Wyndham Worldwide 6 | 2,324 | 19 | ||||||
1,039 | ||||||||
Consumer Staples – 6.1% | ||||||||
Alberto-Culver 6 | 636 | 16 | ||||||
Altria Group | 3,031 | 58 | ||||||
Archer-Daniels-Midland 6 | 2,295 | 48 | ||||||
Brown-Forman, Class B | 765 | 35 | ||||||
Bunge Limited 6 | 158 | 6 | ||||||
Coca-Cola | 1,511 | 67 | ||||||
ConAgra Foods 6 | 966 | 17 | ||||||
Corn Products International | 623 | 15 | ||||||
CVS Caremark | 605 | 18 | ||||||
Dr. Pepper Snapple Group 6 = | 509 | 12 | ||||||
Hormel Foods | 1,501 | 42 | ||||||
Kimberly-Clark | 304 | 19 | ||||||
Kraft Foods, Class A | 2,290 | 67 | ||||||
Kroger 6 | 534 | 15 | ||||||
Lorillard | 439 | 29 | ||||||
McCormick 6 | 310 | 10 | ||||||
Molson Coors Brewing, Class B | 361 | 13 | ||||||
NBTY = | 385 | 9 | ||||||
Pepsi Bottling Group | 586 | 13 | ||||||
PepsiAmericas | 1,940 | 37 | ||||||
Procter & Gamble | 5,120 | 330 | ||||||
Safeway 6 | 1,250 | 27 | ||||||
Sara Lee | 1,034 | 12 | ||||||
Sysco | 2,094 | 55 | ||||||
Tyson Foods, Class A | 156 | 1 | ||||||
Walgreen 6 | 1,701 | 43 | ||||||
Whole Foods Market 6 | 1,283 | 14 | ||||||
1,028 | ||||||||
Energy – 14.8% | ||||||||
Apache 6 | 728 | 60 | ||||||
Atwood Oceanics = | 54 | 1 | ||||||
Baker Hughes | 765 | 27 | ||||||
BJ Services | 2,734 | 35 | ||||||
Chevron | 7,715 | 575 | ||||||
CNX Gas = | 633 | 16 | ||||||
ConocoPhillips 6 | 5,387 | 280 | ||||||
Devon Energy | 283 | 23 | ||||||
Exxon Mobil | 14,902 | 1,104 | ||||||
Frontier Oil | 1,596 | 21 | ||||||
Global Industries 6 = | 1,654 | 4 | ||||||
Helix Energy Solutions Group 6 = | 20 | — | ||||||
Holly | 604 | 12 | ||||||
Marathon Oil | 3,232 | 94 | ||||||
Murphy Oil 6 | 513 | 26 | ||||||
Noble | 664 | 21 | ||||||
Occidental Petroleum | 300 | 17 | ||||||
Oceaneering International 6 = | 16 | — | ||||||
Oil States International = | 330 | 8 | ||||||
Patterson-UTI Energy 6 | 1,352 | 18 | ||||||
Rowan 6 | 256 | 5 | ||||||
Spectra Energy 6 | 2,104 | 41 | ||||||
Sunoco 6 | 974 | 30 | ||||||
Tesoro 6 | 478 | 5 | ||||||
Tidewater 6 | 186 | 8 | ||||||
Unit 6 = | 293 | 11 | ||||||
Valero Energy | 2,459 | 51 | ||||||
2,493 | ||||||||
Financials – 18.4% | ||||||||
Allied World Assurance Company Holdings | 1,093 | 35 | ||||||
Allstate | 1,317 | 35 | ||||||
American Financial Group | 370 | 8 | ||||||
American International Group 6 | 15,362 | 29 | ||||||
American National Insurance | 559 | 38 | ||||||
Ameriprise Financial | 2,051 | 44 | ||||||
Associated Banc 6 | 2,715 | 60 | ||||||
BancorpSouth | 326 | 8 | ||||||
Bank of America | 12,431 | 301 | ||||||
Bank of Hawaii 6 | 917 | 47 | ||||||
Bank of New York Mellon | 4,282 | 140 | ||||||
BB&T 6 | 258 | 9 |
First American Funds 2008 Annual Report 19
Table of Contents
Schedule of Investments October 31, 2008, all dollars are rounded to thousands (000)
Quantitative Large Cap Value Fund (continued) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
BOK Financial | 893 | $ | 43 | |||||
Chubb | 529 | 27 | ||||||
Cincinnati Financial 6 | 2,062 | 54 | ||||||
Citigroup | 9,683 | 132 | ||||||
City National 6 | 768 | 41 | ||||||
CME Group 6 | 42 | 12 | ||||||
Commerce Bancshares | 1,173 | 56 | ||||||
Discover Financial Services | 1,217 | 15 | ||||||
Erie Indemnity, Class A | 2,054 | 76 | ||||||
Federated Investors, Class B 6 | 340 | 8 | ||||||
Fifth Third Bancorp 6 | 3,327 | 36 | ||||||
First Citizens Bancshares, Class A | 68 | 10 | ||||||
Franklin Resources | 568 | 39 | ||||||
Fulton Financial | 624 | 7 | ||||||
Genworth Financial, Class A | 4,830 | 23 | ||||||
Goldman Sachs Group 6 | 464 | 43 | ||||||
Hartford Financial Services Group | 3,120 | 32 | ||||||
HCC Insurance Holdings | 1,085 | 24 | ||||||
Huntington Bancshares 6 | 1,649 | 16 | ||||||
Invesco | 1,139 | 17 | ||||||
iStar Financial – REIT 6 | 11,251 | 12 | ||||||
JPMorgan Chase | 8,610 | 355 | ||||||
KeyCorp 6 | 850 | 10 | ||||||
Legg Mason 6 | 234 | 5 | ||||||
Lincoln National 6 | 1,521 | 26 | ||||||
Loew’s | 1,569 | 52 | ||||||
Markel = | 60 | 21 | ||||||
Marshall & Ilsley 6 | 124 | 2 | ||||||
MBIA 6 | 189 | 2 | ||||||
Mercury General 6 | 284 | 15 | ||||||
MF Global = | 2,783 | 11 | ||||||
National City | 5,040 | 14 | ||||||
Nationwide Financial Services, Class A | 4 | — | ||||||
Northern Trust | 299 | 17 | ||||||
NYSE Euronext | 736 | 22 | ||||||
Old Republic International 6 | 1,956 | 18 | ||||||
Philadelphia Consolidated Holding = | 37 | 2 | ||||||
PNC Financial Services Group | 481 | 32 | ||||||
Principal Financial Group | 2,850 | 54 | ||||||
Progressive 6 | 1,539 | 22 | ||||||
Protective Life | 3,844 | 32 | ||||||
Prudential Financial 6 | 1,196 | 36 | ||||||
Raymond James Financial 6 | 395 | 9 | ||||||
Regions Financial 6 | 3,573 | 40 | ||||||
RenaissanceRe Holdings | 163 | 8 | ||||||
SEI Investments | 1,251 | 22 | ||||||
StanCorp Financial Group | 448 | 15 | ||||||
State Street | 1,255 | 54 | ||||||
SunTrust Banks 6 | 1,270 | 51 | ||||||
Synovus Financial 6 | 2,256 | 23 | ||||||
T. Rowe Price Group 6 | 187 | 7 | ||||||
TD Ameritrade = | 1,197 | 16 | ||||||
Torchmark 6 | 465 | 20 | ||||||
Transatlantic Holdings | 2,004 | 86 | ||||||
Travelers | 1,768 | 75 | ||||||
Unitrin | 199 | 4 | ||||||
W.R. Berkley | 957 | 25 | ||||||
Wachovia 6 | 9,504 | 61 | ||||||
Wells Fargo 6 | 6,995 | 238 | ||||||
Whitney Holding 6 | 1,917 | 37 | ||||||
Wilmington Trust 6 | 1,189 | 34 | ||||||
XL Capital, Class A 6 | 2,607 | 25 | ||||||
Zions Bancorporation 6 | 303 | 12 | ||||||
3,087 | ||||||||
Healthcare – 13.1% | ||||||||
Aetna 6 | 1,269 | 32 | ||||||
AmerisourceBergen | 602 | 19 | ||||||
Amgen 6 = | 2,811 | 168 | ||||||
Beckman Coulter | 173 | 9 | ||||||
Becton, Dickinson & Company | 889 | 62 | ||||||
Bristol-Myers Squibb | 1,578 | 32 | ||||||
C.R. Bard | 145 | 13 | ||||||
Cardinal Health | 638 | 24 | ||||||
Cerner 6 = | 166 | 6 | ||||||
CIGNA | 1,608 | 26 | ||||||
Coventry Health Care = | 568 | 8 | ||||||
DENTSPLY International 6 | 476 | 15 | ||||||
Eli Lilly 6 | 4,488 | 152 | ||||||
Endo Pharmaceuticals Holdings 6 = | 1,645 | 30 | ||||||
Forest Laboratories = | 1,988 | 46 | ||||||
Gen-Probe 6 = | 281 | 13 | ||||||
Health Net = | 682 | 9 | ||||||
Henry Schein 6 = | 449 | 21 | ||||||
Humana = | 222 | 7 | ||||||
IDEXX Laboratories 6 = | 180 | 6 | ||||||
Johnson & Johnson | 7,134 | 438 | ||||||
Kinetic Concepts 6 = | 889 | 22 | ||||||
King Pharmaceuticals = | 599 | 5 | ||||||
Medtronic | 428 | 17 | ||||||
Merck | 6,695 | 207 | ||||||
Patterson Companies 6 = | 472 | 12 | ||||||
PerkinElmer | 662 | 12 | ||||||
Pfizer | 25,314 | 448 | ||||||
Stryker | 567 | 30 | ||||||
UnitedHealth Group 6 | 3,328 | 79 | ||||||
Varian Medical Systems 6 = | 76 | 3 | ||||||
WellPoint = | 1,762 | 69 | ||||||
Wyeth | 4,082 | 131 | ||||||
Zimmer Holdings 6 = | 727 | 34 | ||||||
2,205 | ||||||||
Industrials – 9.5% | ||||||||
3M 6 | 1,019 | 66 | ||||||
Avery Dennison 6 | 85 | 3 | ||||||
BE Aerospace = | 1,656 | 21 | ||||||
Boeing 6 | 891 | 47 | ||||||
Brinks | 21 | 1 | ||||||
Career Education = | 1,017 | 16 | ||||||
Carlisle Companies | 731 | 17 | ||||||
Cintas | 1,902 | 45 | ||||||
Cooper Industries, Class A | 478 | 15 | ||||||
Copart 6 = | 507 | 18 | ||||||
Corporate Executive Board | 1,158 | 35 | ||||||
Dover | 380 | 12 | ||||||
Eaton | 607 | 27 | ||||||
Emerson Electric | 179 | 6 | ||||||
FedEx | 335 | 22 | ||||||
General Dynamics | 1,459 | 88 | ||||||
General Electric | 26,977 | 526 | ||||||
Goodrich | 313 | 12 | ||||||
Harsco | 821 | 19 | ||||||
Hubbell, Class B 6 | 1,979 | 71 | ||||||
Illinois Tool Works 6 | 3,157 | 105 | ||||||
Ingersoll-Rand, Class A 6 | 1,391 | 26 | ||||||
ITT Educational Services = | 21 | 2 | ||||||
ITT 6 | 35 | 2 | ||||||
Kennametal | 867 | 18 | ||||||
Lincoln Electric Holdings 6 | 358 | 15 | ||||||
Manitowoc 6 | 770 | 8 | ||||||
Manpower 6 | 759 | 24 |
The accompanying notes are an integral part of the financial statements.
20 First American Funds 2008 Annual Report
Table of Contents
Quantitative Large Cap Value Fund (continued) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Monster Worldwide 6 = | 1,377 | $ | 20 | |||||
Northrop Grumman | 825 | 39 | ||||||
Parker Hannifin | 409 | 16 | ||||||
Precision Castparts | 270 | 17 | ||||||
Raytheon | 279 | 14 | ||||||
Republic Services | 437 | 10 | ||||||
Robert Half International 6 | 759 | 14 | ||||||
Rockwell Automation 6 | 710 | 20 | ||||||
Rockwell Collins 6 | 1,945 | 72 | ||||||
Spirit AeroSystems Holdings, Class A = | 897 | 14 | ||||||
Terex 6 = | 278 | 5 | ||||||
Thomas & Betts = | 100 | 2 | ||||||
Timken 6 | 977 | 16 | ||||||
United Technologies 6 | 1,425 | 78 | ||||||
1,604 | ||||||||
Information Technology – 4.5% | ||||||||
Amdocs = | 1,033 | 23 | ||||||
Arrow Electronics = | 765 | 13 | ||||||
Autodesk 6 = | 397 | 9 | ||||||
Automatic Data Processing | 3,325 | 116 | ||||||
Avnet = | 457 | 8 | ||||||
AVX | 1,457 | 13 | ||||||
BMC Software = | 130 | 3 | ||||||
Cadence Design Systems = | 2,660 | 11 | ||||||
Citrix Systems 6 = | 656 | 17 | ||||||
Cognizant Technology Solutions, Class A = | 689 | 13 | ||||||
Computer Sciences = | 1,887 | 57 | ||||||
Compuware = | 1,291 | 8 | ||||||
Convergys = | 2,003 | 15 | ||||||
Dell = | 1,527 | 19 | ||||||
DST Systems 6 = | 104 | 4 | ||||||
eBay = | 1,207 | 18 | ||||||
EMC = | 2,832 | 33 | ||||||
Fairchild Semiconductor International = | 171 | 1 | ||||||
Genpact Limited = | 995 | 8 | ||||||
Ingram Micro, Class A = | 396 | 5 | ||||||
Intel 6 | 3,184 | 51 | ||||||
Intersil, Class A | 851 | 12 | ||||||
Jabil Circuit | 585 | 5 | ||||||
Lender Processing Services | 495 | 11 | ||||||
Lexmark International, Class A 6 = | 15 | — | ||||||
Microsoft | 1,595 | 36 | ||||||
Molex | 2,028 | 29 | ||||||
Motorola | 7,561 | 41 | ||||||
National Instruments 6 | 391 | 10 | ||||||
Oracle = | 276 | 5 | ||||||
Paychex 6 | 1,037 | 30 | ||||||
Seagate Technology | 487 | 3 | ||||||
Sun Microsystems = | 118 | 1 | ||||||
Synopsys = | 2,154 | 39 | ||||||
Tellabs = | 1,734 | 7 | ||||||
Teradata = | 1,008 | 16 | ||||||
Texas Instruments | 980 | 19 | ||||||
Total System Services | 1,906 | 26 | ||||||
Tyco Electronics 6 | 173 | 3 | ||||||
Xerox 6 | 570 | 5 | ||||||
Yahoo! 6 = | 199 | 3 | ||||||
Zebra Technologies, Class A = | 426 | 9 | ||||||
755 | ||||||||
Materials – 3.1% | ||||||||
Air Products and Chemicals 6 | 245 | 14 | ||||||
Albemarle | 345 | 8 | ||||||
Alcoa 6 | 461 | 5 | ||||||
Allegheny Technologies 6 | 710 | 19 | ||||||
AptarGroup | 145 | 4 | ||||||
Ashland 6 | 1,052 | 24 | ||||||
Bemis 6 | 188 | 5 | ||||||
Cabot Microelectronics 6 | 247 | 7 | ||||||
Carpenter Technology 6 | 1,317 | 24 | ||||||
Celanese, Series A 6 | 5 | — | ||||||
Commercial Metals | 1,744 | 19 | ||||||
Cytec Industries 6 | 844 | 24 | ||||||
Dow Chemical 6 | 3,313 | 88 | ||||||
E.I. Du Pont de Nemours 6 | 3,148 | 101 | ||||||
Freeport-McMoRan Copper & Gold 6 | 773 | 22 | ||||||
Intrepid Potash 6 = | 359 | 8 | ||||||
Lubrizol 6 | 286 | 11 | ||||||
Nucor | 1,163 | 47 | ||||||
Pactiv = | 59 | 1 | ||||||
PPG Industries 6 | 800 | 40 | ||||||
Reliance Steel & Aluminum 6 | 453 | 11 | ||||||
RPM International 6 | 140 | 2 | ||||||
Schnitzer Steel Industries, Class A 6 | 288 | 8 | ||||||
Sonoco Products | 180 | 4 | ||||||
Southern Copper | 394 | 6 | ||||||
Steel Dynamics 6 | 230 | 3 | ||||||
Titanium Metals 6 | 111 | 1 | ||||||
Valspar 6 | 914 | 19 | ||||||
525 | ||||||||
Telecommunication Services – 5.1% | ||||||||
AT&T | 18,219 | 488 | ||||||
CenturyTel | 261 | 7 | ||||||
NeuStar, Class A 6 = | 415 | 8 | ||||||
Telephone & Data Systems | 200 | 5 | ||||||
U.S. Cellular = | 1,185 | 45 | ||||||
Verizon Communications | 9,924 | 295 | ||||||
848 | ||||||||
Utilities – 6.4% | ||||||||
AGL Resources 6 | 3,564 | 108 | ||||||
Alliant Energy | 2,972 | 87 | ||||||
American Electric Power | 73 | 2 | ||||||
Aqua America 6 | 3,209 | 58 | ||||||
Atmos Energy | 945 | 23 | ||||||
Consolidated Edison | 341 | 15 | ||||||
Constellation Energy Group | 618 | 15 | ||||||
Dominion Resources 6 | 1,031 | 37 | ||||||
DTE Energy | 101 | 4 | ||||||
Duke Energy | 2,134 | 35 | ||||||
Energen | 1,086 | 37 | ||||||
Equitable Resources 6 | 739 | 26 | ||||||
FPL Group | 1,298 | 61 | ||||||
Integrys Energy Group | 559 | 27 | ||||||
National Fuel Gas 6 | 1,653 | 60 | ||||||
NiSource | 2,295 | 30 | ||||||
NSTAR | 524 | 17 | ||||||
OGE Energy | 1,269 | 35 | ||||||
Pepco Holdings | 198 | 4 | ||||||
PG&E | 709 | 26 | ||||||
Questar | 2,291 | 79 | ||||||
SCANA | 680 | 22 | ||||||
Sempra Energy | 1,978 | 84 | ||||||
Southern Union | 669 | 12 | ||||||
Southern 6 | 936 | 32 | ||||||
UGI | 2,822 | 67 |
First American Funds 2008 Annual Report 21
Table of Contents
Schedule of Investments October 31, 2008, all dollars are rounded to thousands (000)
Quantitative Large Cap Value Fund (concluded) | ||||||||
DESCRIPTION | SHARES/PAR | VALUE | ||||||
Vectren | 1,880 | $ | 47 | |||||
Xcel Energy | 1,210 | 21 | ||||||
1,071 | ||||||||
Total Common Stocks | ||||||||
(Cost $17,178) | 14,655 | |||||||
Short-Term Investments – 12.3% | ||||||||
Money Market Fund – 10.9% | ||||||||
First American Prime Obligations Fund, Class Z Å | 1,836,074 | 1,836 | ||||||
U.S. Treasury Obligation – 1.4% | ||||||||
U.S. Treasury Bill | ||||||||
1.248%, 12/18/2008 o | $ | 240 | 240 | |||||
Total Short-Term Investments | ||||||||
(Cost $2,076) | 2,076 | |||||||
Investment Purchased with Proceeds from Securities Lending – 25.1% | ||||||||
Mount Vernon Securities Lending Prime Portfolio † | ||||||||
(Cost $4,208) | 4,208,380 | 4,208 | ||||||
Total Investments – 124.6% | ||||||||
(Cost $23,462) | 20,939 | |||||||
Other Assets and Liabilities, Net – (24.6)% | (4,140 | ) | ||||||
Total Net Assets – 100.0% | $ | 16,799 | ||||||
6 | This security or a portion of this security is out on loan at October 31, 2008. Total loaned securities had a value of $4,137 at October 31, 2008. See note 2 in Notes to Financial Statements. | |
= | Non-income producing security. | |
Å | Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor to 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 effective yield as of October 31, 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. |
REIT – Real Estate Investment Trust
Schedule of Open Futures Contracts
Number of | Notional | |||||||||||||
Contracts | Contract | Settlement | Unrealized | |||||||||||
Description | Purchased | Value | Month | Appreciation | ||||||||||
S&P 500 E-Mini Futures | 27 | $ | 1,306 | December 2008 | $ | 28 | ||||||||
The accompanying notes are an integral part of the financial statements.
22 First American Funds 2008 Annual Report
Table of Contents
Statements ofAssets and Liabilities | October 31, 2008, all dollars and shares are rounded to thousands (000), except per share data |
Quantitative | Quantitative | Quantitative | ||||||||||||||
Large Cap | Large Cap | Large Cap | ||||||||||||||
Core Fund | Growth Fund | Value Fund | ||||||||||||||
Unaffiliated investments, at cost | $ | 102,604 | $ | 24,323 | $ | 17,418 | ||||||||||
Affiliated money market fund, at cost | 8,266 | 163 | 1,836 | |||||||||||||
Affiliated investment purchased with proceeds from securities lending, at cost (note 2) | 19,563 | 5,705 | 4,208 | |||||||||||||
ASSETS: | ||||||||||||||||
Unaffiliated investments, at value* (note 2) | $ | 81,017 | $ | 19,829 | $ | 14,895 | ||||||||||
Affiliated money market fund, at value (note 2) | 8,266 | 163 | 1,836 | |||||||||||||
Affiliated investment purchased with proceeds from securities lending, at value (note 2) | 19,563 | 5,705 | 4,208 | |||||||||||||
Receivable for dividends and interest | 122 | 17 | 25 | |||||||||||||
Receivable for variation margin | 29 | — | 8 | |||||||||||||
Receivable from advisor (note 3) | — | 20 | 20 | |||||||||||||
Prepaid expenses and other assets | 47 | 47 | 47 | |||||||||||||
Total assets | 109,044 | 25,781 | 21,039 | |||||||||||||
LIABILITIES: | ||||||||||||||||
Payable upon return of securities loaned (note 2) | 19,563 | 5,705 | 4,208 | |||||||||||||
Payable for capital shares redeemed | 25 | — | — | |||||||||||||
Payable to affiliates (note 3) | 32 | 19 | 19 | |||||||||||||
Accrued expenses and other liabilities | 23 | 11 | 13 | |||||||||||||
Total liabilities | 19,643 | 5,735 | 4,240 | |||||||||||||
Net assets | $ | 89,401 | $ | 20,046 | $ | 16,799 | ||||||||||
COMPOSITION OF NET ASSETS: | ||||||||||||||||
Portfolio capital | $ | 119,736 | $ | 25,063 | $ | 20,131 | ||||||||||
Undistributed net investment income | 539 | 60 | 82 | |||||||||||||
Accumulated net realized loss on investments (note 2) | (9,411 | ) | (583 | ) | (919 | ) | ||||||||||
Net unrealized appreciation or depreciation of: | ||||||||||||||||
Investments | (21,587 | ) | (4,494 | ) | (2,523 | ) | ||||||||||
Futures contracts | 124 | — | 28 | |||||||||||||
Net assets | $ | 89,401 | $ | 20,046 | $ | 16,799 | ||||||||||
* Including securities loaned, at value | $ | 19,282 | $ | 5,622 | $ | 4,137 | ||||||||||
Class A: | ||||||||||||||||
Net assets | $ | 118 | $ | 56 | $ | 14 | ||||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 7 | 3 | 1 | |||||||||||||
Net asset value, and redemption price per share | $ | 16.56 | $ | 17.75 | $ | 16.84 | ||||||||||
Maximum offering price per share1 | $ | 17.52 | $ | 18.78 | $ | 17.82 | ||||||||||
Class C: | ||||||||||||||||
Net assets | $ | 10 | $ | 12 | $ | 3 | ||||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 1 | 1 | — | ** | ||||||||||||
Net asset value, offering price, and redemption price per share2 | $ | 16.51 | $ | 17.69 | $ | 16.80 | ||||||||||
Class R: | ||||||||||||||||
Net assets | $ | 3 | $ | 4 | $ | 3 | ||||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | — | ** | — | ** | — | ** | ||||||||||
Net asset value, offering price, and redemption price per share | $ | 16.55 | $ | 17.73 | $ | 16.83 | ||||||||||
Class Y: | ||||||||||||||||
Net assets | $ | 89,270 | $ | 19,974 | $ | 16,779 | ||||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 5,387 | 1,124 | 996 | |||||||||||||
Net asset value, offering price, and redemption price per share | $ | 16.57 | $ | 17.76 | $ | 16.85 | ||||||||||
1 | The offering price is calculated by dividing the net asset value by 1 minus the maximum sales charge of 5.50%. | |
2 | Class C has a contingent deferred sales charge. For a description of this sales charge, see notes 1 and 3 in Notes to Financial Statements. |
** | Due to the presentation of the Financial Statements in thousands, the number rounds to zero. |
First American Funds 2008 Annual Report 23
Table of Contents
Statements ofOperations | For the year ended October 31, 2008, all dollars are rounded to thousands (000) |
Quantitative | Quantitative | Quantitative | ||||||||||||||
Large Cap | Large Cap | Large Cap | ||||||||||||||
Core Fund | Growth Fund | Value Fund | ||||||||||||||
INVESTMENT INCOME: | ||||||||||||||||
Dividends from unaffiliated investments | $ | 1,539 | $ | 169 | $ | 226 | ||||||||||
Dividends from affiliated money market fund | 124 | 23 | 17 | |||||||||||||
Interest from unaffiliated investments | 12 | 1 | 2 | |||||||||||||
Securities lending income | 65 | 9 | 7 | |||||||||||||
Total investment income | 1,740 | 202 | 252 | |||||||||||||
EXPENSES (note 3): | ||||||||||||||||
Investment advisory fees | 215 | 36 | 26 | |||||||||||||
Administration fees | 170 | 40 | 32 | |||||||||||||
Transfer agent fees | 105 | 105 | 105 | |||||||||||||
Custodian fees | 4 | 1 | — | |||||||||||||
Legal fees | 15 | 15 | 15 | |||||||||||||
Audit fees | 31 | 32 | 31 | |||||||||||||
Registration fees | 41 | 41 | 41 | |||||||||||||
Postage and printing fees | 41 | 8 | 8 | |||||||||||||
Directors’ fees | 24 | 24 | 24 | |||||||||||||
Other expenses | 19 | 19 | 19 | |||||||||||||
Distribution and shareholder servicing fees: | ||||||||||||||||
Class A | — | — | — | |||||||||||||
Class C | — | — | — | |||||||||||||
Class R | — | — | — | |||||||||||||
Total expenses | 665 | 321 | 301 | |||||||||||||
Less: Fee waivers (note 3) | (347 | ) | (267 | ) | (263 | ) | ||||||||||
Total net expenses | 318 | 54 | 38 | |||||||||||||
Investment income – net | 1,422 | 148 | 214 | |||||||||||||
REALIZED AND UNREALIZED GAINS (LOSSES) – NET (note 5): | ||||||||||||||||
Net realized gain (loss) on: | ||||||||||||||||
Investments | (7,587 | ) | (746 | ) | (1,073 | ) | ||||||||||
Futures contracts | (1,790 | ) | 167 | 184 | ||||||||||||
Net change in unrealized appreciation or depreciation of: | ||||||||||||||||
Investments | (24,537 | ) | (5,124 | ) | (2,879 | ) | ||||||||||
Futures contracts | 116 | (1 | ) | 15 | ||||||||||||
Net loss on investments and futures contracts | (33,798 | ) | (5,704 | ) | (3,753 | ) | ||||||||||
Net decrease in net assets resulting from operations | $ | (32,376 | ) | $ | (5,556 | ) | $ | (3,539 | ) | |||||||
The accompanying notes are an integral part of the financial statements.
24 First American Funds 2008 Annual Report
Table of Contents
Statements ofChanges in Net Assets | all dollars are rounded to thousands (000) |
Quantitative | Quantitative | Quantitative | ||||||||||||||||||||||||||
Large Cap | Large Cap | Large Cap | ||||||||||||||||||||||||||
Core Fund | Growth Fund | Value Fund | ||||||||||||||||||||||||||
Year | 7/31/071 | Year | 7/31/071 | Year | 7/31/071 | |||||||||||||||||||||||
Ended | to | Ended | to | Ended | to | |||||||||||||||||||||||
10/31/08 | 10/31/07 | 10/31/08 | 10/31/07 | 10/31/08 | 10/31/07 | |||||||||||||||||||||||
OPERATIONS: | ||||||||||||||||||||||||||||
Investment income – net | $ | 1,422 | $ | 204 | $ | 148 | $ | 20 | $ | 214 | $ | 42 | ||||||||||||||||
Net realized gain (loss) on: | ||||||||||||||||||||||||||||
Investments | (7,587 | ) | 335 | (746 | ) | 74 | (1,073 | ) | 48 | |||||||||||||||||||
Futures contracts | (1,790 | ) | 83 | 167 | — | 184 | (1 | ) | ||||||||||||||||||||
Net change in unrealized appreciation or depreciation of: | ||||||||||||||||||||||||||||
Investments | (24,537 | ) | 2,950 | (5,124 | ) | 630 | (2,879 | ) | 356 | |||||||||||||||||||
Futures contracts | 116 | 8 | (1 | ) | 1 | 15 | 13 | |||||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | (32,376 | ) | 3,580 | (5,556 | ) | 725 | (3,539 | ) | 458 | |||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | ||||||||||||||||||||||||||||
Investment income – net: | ||||||||||||||||||||||||||||
Class A | (2 | ) | — | — | — | — | — | |||||||||||||||||||||
Class C | — | — | — | — | — | — | ||||||||||||||||||||||
Class R | — | — | — | — | — | — | ||||||||||||||||||||||
Class Y | (941 | ) | (144 | ) | (94 | ) | (14 | ) | (149 | ) | (25 | ) | ||||||||||||||||
Net realized gain on investments: | ||||||||||||||||||||||||||||
Class A | (1 | ) | — | (1 | ) | — | — | — | ||||||||||||||||||||
Class C | — | — | — | — | — | — | ||||||||||||||||||||||
Class R | — | — | — | — | — | — | ||||||||||||||||||||||
Class Y | (451 | ) | — | (77 | ) | — | (77 | ) | — | |||||||||||||||||||
Total distributions | (1,395 | ) | (144 | ) | (172 | ) | (14 | ) | (226 | ) | (25 | ) | ||||||||||||||||
CAPITAL SHARE TRANSACTIONS (note 4): | ||||||||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||||||
Proceeds from sales | 109 | 129 | 51 | 69 | 7 | 30 | ||||||||||||||||||||||
Reinvestment of distributions | 3 | — | 1 | — | 1 | — | ||||||||||||||||||||||
Payments for redemptions | (72 | ) | — | (39 | ) | — | (16 | ) | — | |||||||||||||||||||
Increase (decrease) in net assets from Class A transactions | 40 | 129 | 13 | 69 | (8 | ) | 30 | |||||||||||||||||||||
Class C: | ||||||||||||||||||||||||||||
Proceeds from sales | — | 15 | — | 17 | — | 5 | ||||||||||||||||||||||
Reinvestment of distributions | — | — | — | — | — | — | ||||||||||||||||||||||
Payments for redemptions (note 3) | — | — | — | — | — | — | ||||||||||||||||||||||
Increase in net assets from Class C transactions | — | 15 | — | 17 | — | 5 | ||||||||||||||||||||||
Class R: | ||||||||||||||||||||||||||||
Proceeds from sales | — | 5 | — | 5 | — | 5 | ||||||||||||||||||||||
Reinvestment of distributions | — | — | — | — | — | — | ||||||||||||||||||||||
Payments for redemptions | — | — | — | — | — | — | ||||||||||||||||||||||
Increase in net assets from Class R transactions | — | 5 | — | 5 | — | 5 | ||||||||||||||||||||||
Class Y: | ||||||||||||||||||||||||||||
Proceeds from sales | 84,298 | 47,241 | 18,446 | 7,004 | 12,884 | 7,000 | ||||||||||||||||||||||
Reinvestment of distributions | 1,108 | 133 | 147 | 14 | 206 | 25 | ||||||||||||||||||||||
Payments for redemptions | (11,171 | ) | (2,062 | ) | (652 | ) | — | (16 | ) | — | ||||||||||||||||||
Increase in net assets from Class Y transactions | 74,235 | 45,312 | 17,941 | 7,018 | 13,074 | 7,025 | ||||||||||||||||||||||
Increase in net assets from capital share transactions | 74,275 | 45,461 | 17,954 | 7,109 | 13,066 | 7,065 | ||||||||||||||||||||||
Total increase in net assets | 40,504 | 48,897 | 12,226 | 7,820 | 9,301 | 7,498 | ||||||||||||||||||||||
Net assets at beginning of period | 48,897 | — | 7,820 | — | 7,498 | — | ||||||||||||||||||||||
Net assets at end of period | $ | 89,401 | $ | 48,897 | $ | 20,046 | $ | 7,820 | $ | 16,799 | $ | 7,498 | ||||||||||||||||
Undistributed net investment income at end of period | $ | 539 | $ | 60 | $ | 60 | $ | 6 | $ | 82 | $ | 17 | ||||||||||||||||
1 | Commencement of operations. |
First American Funds 2008 Annual Report 25
Table of Contents
Financial Highlights For a share outstanding throughout the indicated periods.
Realized and | ||||||||||||||||||||||||||||||||||||
Net Asset | Net | Unrealized | Distributions | |||||||||||||||||||||||||||||||||
Value | Investment | Gains | Total from | from Net | Distributions | |||||||||||||||||||||||||||||||
Beginning | Income | (Losses) on | Investment | Investment | from Net Realized | Total | ||||||||||||||||||||||||||||||
of Period | (Loss) | Investments | Operations | Income | Gains | Distributions | ||||||||||||||||||||||||||||||
Quantitative Large Cap Core Fund1 | ||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||
20082 | $ | 26.90 | $ | 0.40 | $ | (10.21 | ) | $ | (9.81 | ) | $ | (0.29 | ) | $ | (0.24 | ) | $ | (0.53 | ) | |||||||||||||||||
20073 | 25.00 | 0.06 | 1.91 | 1.97 | (0.07 | ) | — | (0.07 | ) | |||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||
20082 | $ | 26.88 | $ | 0.23 | $ | (10.20 | ) | $ | (9.97 | ) | $ | (0.16 | ) | $ | (0.24 | ) | $ | (0.40 | ) | |||||||||||||||||
20073 | 25.00 | 0.02 | 1.90 | 1.92 | (0.04 | ) | — | (0.04 | ) | |||||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||||||
20082 | $ | 26.89 | $ | 0.34 | $ | (10.20 | ) | $ | (9.86 | ) | $ | (0.24 | ) | $ | (0.24 | ) | $ | (0.48 | ) | |||||||||||||||||
20073 | 25.00 | 0.08 | 1.87 | 1.95 | (0.06 | ) | — | (0.06 | ) | |||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||
20082 | $ | 26.90 | $ | 0.44 | $ | (10.20 | ) | $ | (9.76 | ) | $ | (0.33 | ) | $ | (0.24 | ) | $ | (0.57 | ) | |||||||||||||||||
20073 | 25.00 | 0.11 | 1.87 | 1.98 | (0.08 | ) | — | (0.08 | ) | |||||||||||||||||||||||||||
Quantitative Large Cap Growth Fund1 | ||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||
20082 | $ | 27.51 | $ | 0.24 | $ | (9.58 | ) | $ | (9.34 | ) | $ | (0.16 | ) | $ | (0.26 | ) | $ | (0.42 | ) | |||||||||||||||||
20073 | 25.00 | 0.02 | 2.53 | 2.55 | (0.04 | ) | — | (0.04 | ) | |||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||
20082 | $ | 27.47 | $ | 0.05 | $ | (9.55 | ) | $ | (9.50 | ) | $ | (0.02 | ) | $ | (0.26 | ) | $ | (0.28 | ) | |||||||||||||||||
20073 | 25.00 | (0.03 | ) | 2.53 | 2.50 | (0.03 | ) | — | (0.03 | ) | ||||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||||||
20082 | $ | 27.51 | $ | 0.17 | $ | (9.58 | ) | $ | (9.41 | ) | $ | (0.11 | ) | $ | (0.26 | ) | $ | (0.37 | ) | |||||||||||||||||
20073 | 25.00 | 0.04 | 2.50 | 2.54 | (0.03 | ) | — | (0.03 | ) | |||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||
20082 | $ | 27.52 | $ | 0.28 | $ | (9.57 | ) | $ | (9.29 | ) | $ | (0.21 | ) | $ | (0.26 | ) | $ | (0.47 | ) | |||||||||||||||||
20073 | 25.00 | 0.07 | 2.50 | 2.57 | (0.05 | ) | — | (0.05 | ) | |||||||||||||||||||||||||||
Quantitative Large Cap Value Fund1 | ||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||
20082 | $ | 26.53 | $ | 0.52 | $ | (9.56 | ) | $ | (9.04 | ) | $ | (0.40 | ) | $ | (0.25 | ) | $ | (0.65 | ) | |||||||||||||||||
20073 | 25.00 | 0.10 | 1.51 | 1.61 | (0.08 | ) | — | (0.08 | ) | |||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||
20082 | $ | 26.51 | $ | 0.35 | $ | (9.55 | ) | $ | (9.20 | ) | $ | (0.26 | ) | $ | (0.25 | ) | $ | (0.51 | ) | |||||||||||||||||
20073 | 25.00 | 0.08 | 1.48 | 1.56 | (0.05 | ) | — | (0.05 | ) | |||||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||||||
20082 | $ | 26.53 | $ | 0.46 | $ | (9.56 | ) | $ | (9.10 | ) | $ | (0.35 | ) | $ | (0.25 | ) | $ | (0.60 | ) | |||||||||||||||||
20073 | 25.00 | 0.11 | 1.49 | 1.60 | (0.07 | ) | — | (0.07 | ) | |||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||
20082 | $ | 26.54 | $ | 0.55 | $ | (9.54 | ) | $ | (8.99 | ) | $ | (0.45 | ) | $ | (0.25 | ) | $ | (0.70 | ) | |||||||||||||||||
20073 | 25.00 | 0.15 | 1.48 | 1.63 | (0.09 | ) | — | (0.09 | ) | |||||||||||||||||||||||||||
1 | Per share data calculated using average shares outstanding method. | |
2 | For the period November 1 to October 31 in the fiscal year indicated. | |
3 | Commenced operations on July 31, 2007. All ratios for the period July 31, 2007 to October 31, 2007 have been annualized, except total return and portfolio turnover. | |
4 | Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived. |
The accompanying notes are an integral part of the financial statements.
26 First American Funds 2008 Annual Report
Table of Contents
Ratio of | Ratio of Net | ||||||||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses | Investment | |||||||||||||||||||||||||||||||||||||||
Net Asset | Ratio of | Investment | to Average | Income (Loss) | |||||||||||||||||||||||||||||||||||||
Value | Net Assets | Expenses to | Income (Loss) | Net Assets | to Average | Portfolio | |||||||||||||||||||||||||||||||||||
End of | Total | End of | Average | to Average | (Excluding | Net Assets | Turnover | ||||||||||||||||||||||||||||||||||
Period | Return4 | Period (000) | Net Assets | Net Assets | Waivers) | (Excluding Waivers) | Rate | ||||||||||||||||||||||||||||||||||
$ | 16.56 | (37.08 | )% | $ | 118 | 0.70 | % | 1.77 | % | 1.18 | % | 1.29 | % | 153 | % | ||||||||||||||||||||||||||
26.90 | 7.89 | 131 | 0.70 | 0.91 | 1.40 | 0.21 | 55 | ||||||||||||||||||||||||||||||||||
$ | 16.51 | (37.58 | )% | $ | 10 | 1.45 | % | 0.99 | % | 1.93 | % | 0.51 | % | 153 | % | ||||||||||||||||||||||||||
26.88 | 7.69 | 15 | 1.45 | 0.23 | 2.15 | (0.47 | ) | 55 | |||||||||||||||||||||||||||||||||
$ | 16.55 | (37.22 | )% | $ | 3 | 0.92 | % | 1.51 | % | 1.40 | % | 1.03 | % | 153 | % | ||||||||||||||||||||||||||
26.89 | 7.81 | 6 | 0.95 | 1.20 | 1.65 | 0.50 | 55 | ||||||||||||||||||||||||||||||||||
$ | 16.57 | (36.93 | )% | $ | 89,270 | 0.45 | % | 1.99 | % | 0.93 | % | 1.51 | % | 153 | % | ||||||||||||||||||||||||||
26.90 | 7.93 | 48,745 | 0.45 | 1.73 | 1.15 | 1.03 | 55 | ||||||||||||||||||||||||||||||||||
$ | 17.75 | (34.41 | )% | $ | 56 | 0.69 | % | 0.99 | % | 2.89 | % | (1.21 | )% | 161 | % | ||||||||||||||||||||||||||
27.51 | 10.22 | 71 | 0.70 | 0.23 | 4.70 | (3.77 | ) | 58 | |||||||||||||||||||||||||||||||||
$ | 17.69 | (34.91 | )% | $ | 12 | 1.44 | % | 0.23 | % | 3.64 | % | (1.97 | )% | 161 | % | ||||||||||||||||||||||||||
27.47 | 10.01 | 18 | 1.45 | (0.36 | ) | 5.45 | (4.36 | ) | 58 | ||||||||||||||||||||||||||||||||
$ | 17.73 | (34.61 | )% | $ | 4 | 0.94 | % | 0.73 | % | 3.14 | % | (1.47 | )% | 161 | % | ||||||||||||||||||||||||||
27.51 | 10.17 | 6 | 0.95 | 0.54 | 4.95 | (3.46 | ) | 58 | |||||||||||||||||||||||||||||||||
$ | 17.76 | (34.27 | )% | $ | 19,974 | 0.44 | % | 1.23 | % | 2.64 | % | (0.97 | )% | 161 | % | ||||||||||||||||||||||||||
27.52 | 10.29 | 7,725 | 0.45 | 1.07 | 4.45 | (2.93 | ) | 58 | |||||||||||||||||||||||||||||||||
$ | 16.84 | (34.79 | )% | $ | 14 | 0.69 | % | 2.26 | % | 3.78 | % | (0.83 | )% | 178 | % | ||||||||||||||||||||||||||
26.53 | 6.46 | 31 | 0.70 | 1.57 | 4.73 | (2.46 | ) | 65 | |||||||||||||||||||||||||||||||||
$ | 16.80 | (35.25 | )% | $ | 3 | 1.44 | % | 1.52 | % | 4.53 | % | (1.57 | )% | 178 | % | ||||||||||||||||||||||||||
26.51 | 6.25 | 5 | 1.45 | 1.18 | 5.48 | (2.85 | ) | 65 | |||||||||||||||||||||||||||||||||
$ | 16.83 | (34.94 | )% | $ | 3 | 0.94 | % | 2.02 | % | 4.03 | % | (1.07 | )% | 178 | % | ||||||||||||||||||||||||||
26.53 | 6.41 | 5 | 0.95 | 1.68 | 4.98 | (2.35 | ) | 65 | |||||||||||||||||||||||||||||||||
$ | 16.85 | (34.63 | )% | $ | 16,779 | 0.44 | % | 2.51 | % | 3.53 | % | (0.58 | )% | 178 | % | ||||||||||||||||||||||||||
26.54 | 6.52 | 7,457 | 0.45 | 2.28 | 4.48 | (1.75 | ) | 65 | |||||||||||||||||||||||||||||||||
First American Funds 2008 Annual Report 27
Table of Contents
Notes to Financial Statements | October 31, 2008, all dollars and shares are rounded to thousands (000) |
1 > | Organization |
The Quantitative Large Cap Core Fund, Quantitative Large Cap Growth Fund, and Quantitative Large Cap Value Fund (each a “fund” and collectively, the “funds”) are mutual funds offered by First American Investment Funds, Inc. (“FAIF”), which is a member of the First American Family of Funds. The funds commenced operations July 31, 2007. As of October 31, 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. The Quantitative Large Cap Core Fund, Quantitative Large Cap Growth Fund, and Quantitative Large Cap Value Fund are each diversified open-end management investment companies.
The funds offer Class A, Class C, Class R, and Class Y shares. Class A shares are sold with a front-end sales charge. Class C shares may be subject to a contingent deferred sales charge for 12 months. Class R shares have no sales charge and are offered only through certain tax-deferred retirement plans. Class Y shares have no sales charge and are offered only to qualifying institutional investors and certain other qualifying accounts.
The funds’ prospectus provides descriptions of each fund’s investment objective, principal investment strategies, and principal risks. All classes of shares in a fund have identical voting, dividend, liquidation, and other rights, and the same terms and conditions, except that certain fees, including distribution and shareholder servicing fees, may differ among classes. Each class has exclusive voting rights on any matters relating to that class’s servicing or distribution arrangements.
2 > | Summary of Significant Accounting Policies |
The significant accounting policies followed by the funds are as follows:
SECURITY VALUATIONS – Security valuations for the funds’ investments are furnished by an independent pricing service that has been approved by the funds’ board of directors. Investments in equity securities that are traded on a national securities exchange (or reported on the Nasdaq national market system) are stated at the last quoted sales price if readily available for such securities on each business day. For securities traded on the Nasdaq national market system, the funds utilize the Nasdaq Official Closing Price which compares the last trade to the bid/ask range of a security. If the last trade falls within the bid/ask range, then that price will be the closing price. If the last trade is outside the bid/ask range, and falls above the ask, then the ask will be the closing price. If the last trade is below the bid, then the bid will be the closing price. Other equity securities traded in the over-the-counter market and listed equity securities for which no sale was reported on that date are stated at the last quoted bid price. Investments in open-end mutual funds are valued at their respective net asset values on the valuation date.
Debt obligations exceeding 60 days to maturity are valued by an independent pricing service. The pricing service may employ methodologies that utilize actual market transactions, broker-dealer supplied valuations, or other formula-driven valuation techniques. These techniques generally consider such factors as yields or prices of bonds of comparable quality, type of issue, coupon, maturity, ratings, and general market conditions. Securities for which prices are not available from an independent pricing service, but where an active market exists, are valued using market quotations obtained from one or more dealers that make markets in the securities or from a widely-used quotation system. Debt obligations with 60 days or less remaining until maturity may be valued at their amortized cost, which approximates market value.
The following investment vehicles, when held by a fund, are priced as follows: Exchange listed futures and options on futures are priced at their last sale price on the exchange on which they are principally traded, as determined by FAF Advisors, 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 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
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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 October 31, 2008, the Quantitative Large Cap Core Fund, Quantitative Large Cap Growth Fund, and Quantitative Large Cap Value Fund held no fair valued securities.
SECURITY TRANSACTIONS AND INVESTMENT INCOME – For financial statement purposes, the funds record security transactions on the trade date of the security purchase or sale. Dividend income is recorded on the ex-dividend date. Interest income, including amortization of bond premium and discount, is recorded on an accrual basis. Security gains and losses are determined on the basis of identified cost, which is the same basis used for federal income tax purposes. The resulting gain/loss is calculated as the difference between the sales price and the underlying security on the transaction date.
DISTRIBUTIONS TO SHAREHOLDERS – Distributions from net investment income are declared and paid annually by each of the funds. Distributions are payable in cash or reinvested in additional shares of the fund. Any net realized capital gains on sales of a fund’s securities are distributed to shareholders at least annually.
FEDERAL TAXES – Each fund is treated as a separate taxable entity. Each fund intends to continue to qualify as a regulated investment company as provided in Subchapter M of the Internal Revenue Code, as amended, and to distribute all taxable income, if any, to its shareholders. Accordingly, no provision for federal income taxes is required.
Financial Accounting Standards Board (“FASB”) Interpretation No. 48, “Accounting for Uncertainty in Income Taxes” (“FIN 48”) provides guidance for how uncertain tax position 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 of expense in the current year. As of October 31, 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.
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 period in which the amounts are distributed may differ from the period or year that the income or realized gains (losses) were recorded by the fund. The distributions paid during the fiscal year ended October 31, 2008 and fiscal period ended October 31, 2007, were as follows:
October 31, 2008 | ||||||||||||
Ordinary | Long Term | |||||||||||
Fund | Income | Gain | Total | |||||||||
Quantitative Large Cap Core Fund | $ | 1,341 | $ | 54 | $ | 1,395 | ||||||
Quantitative Large Cap Growth Fund | 171 | 1 | 172 | |||||||||
Quantitative Large Cap Value Fund | 219 | 7 | 226 | |||||||||
October 31, 2007 | ||||||||||||
Ordinary | ||||||||||||
Fund | Income | |||||||||||
Quantitative Large Cap Core Fund | $ | 144 | ||||||||||
Quantitative Large Cap Growth Fund | 14 | |||||||||||
Quantitative Large Cap Value Fund | 25 | |||||||||||
As of October 31, 2008, the components of accumulated earnings (deficit) on a tax-basis were as follows:
Accumulated | ||||||||||||||||
Undistributed | Capital and | Total | ||||||||||||||
Ordinary | Post-October | Unrealized | Accumulated | |||||||||||||
Fund | Income | Losses | Depreciation | Deficit | ||||||||||||
Quantitative Large Cap Core Fund | $ | 541 | $ | (7,444 | ) | $ | (23,430 | ) | $ | (30,333 | ) | |||||
Quantitative Large Cap Growth Fund | 62 | (313 | ) | (4,764 | ) | (5,015 | ) | |||||||||
Quantitative Large Cap Value Fund | 83 | (351 | ) | (3,062 | ) | (3,330 | ) | |||||||||
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Notes to Financial Statements October 31, 2008, all dollars and shares are rounded to thousands (000)
The difference between book and tax basis unrealized appreciation (depreciation) is primarily due to the tax deferral of losses on wash sales and the amount of gain (loss) recognized for tax purposes due to mark-to-market adjustments on open futures contracts.
As of October 31, 2008, the funds had capital loss carryforwards, which, if not offset by subsequent capital gains, will expire on the fund’s fiscal year-ends as follows:
Fund | 2016 | Total | ||||||
Quantitative Large Cap Core Fund | $ | 7,444 | $ | 7,444 | ||||
Quantitative Large Cap Growth Fund | 313 | 313 | ||||||
Quantitative Large Cap Value Fund | 351 | 351 | ||||||
FUTURES TRANSACTIONS – In order to gain exposure to or protect against changes in the market and to maintain sufficient liquidity to meet redemption requests, each fund may enter into futures contracts. Upon entering into a futures contract, the fund is required to deposit cash or pledge U.S. government securities. The margin required for a futures contract is set by the exchange on which the contract is traded. Subsequent payments, which are dependent on the daily fluctuations in the value of the underlying security or securities, are made or received by the fund each day (daily variation margin) and are recorded as unrealized gains (losses) until the contract is closed. When the contract is closed, the fund records a realized gain (loss) equal to the difference between the proceeds from (or cost of) the closing transaction and the fund’s basis in the contract.
Risks of entering into futures contracts, in general, include the possibility that there will not be a perfect price correlation between the futures contracts and the underlying securities. Second, it is possible that a lack of liquidity for futures contracts could exist in the secondary market, resulting in an inability to close a futures position prior to its maturity date. Third, the purchase of a futures contract involves the risk that a fund could lose more than the original margin deposit required to initiate a futures transaction. These contracts involve market risk in excess of the amount reflected in the fund’s Statement of Assets and Liabilities. Unrealized gains (losses) on outstanding positions in futures contracts held at the close of the period will be recognized as capital gains (losses) for federal income tax purposes.
As of October 31, 2008, Quantitative Large Cap Core Fund and Quantitative Large Cap Value Fund had outstanding futures contracts as disclosed in their Schedule of Investments.
ILLIQUID OR RESTRICTED SECURITIES – A security may be considered illiquid if it lacks a readily available market. Securities are generally considered liquid if they can be sold or disposed of in the ordinary course of business within seven days at approximately the price at which the security is valued by the fund. Illiquid securities may be valued under methods approved by the funds’ board of directors as reflecting fair value. Each fund intends to invest no more than 15% of its net assets (determined at the time of purchase and reviewed periodically) in illiquid securities. Certain restricted securities may be considered illiquid. Restricted securities are often purchased in private placement transactions, are not registered under the Securities Act of 1933, may have contractual restrictions on resale, and may be valued under methods approved by the funds’ board of directors as reflecting fair value. Certain restricted securities eligible for resale to qualified institutional investors, including Rule 144A securities, are not subject to the limitation on a fund’s investment in illiquid securities if they are determined to be liquid in accordance with procedures adopted by the funds’ board of directors. At October 31, 2008, Quantitative Large Cap Core Fund, Quantitative Large Cap Growth Fund, and Quantitative Large Cap Value Fund held no investments in illiquid securities.
SECURITIES LENDING – In order to generate additional income, each fund may lend securities representing up to one-third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks, or other institutional borrowers of securities. Each fund’s policy is to receive collateral from the borrower in the form of cash, U.S. government securities, or other high-grade debt obligations equal to at least 100% of the value of securities loaned. If the value of the securities on loan increases, additional collateral is received from the borrower. As with other extensions of credit, there may be risks of delay in recovery of the securities or even loss of rights in the collateral should the borrower of the security fail financially.
U.S. Bank National Association (“U.S. Bank”), the parent company of the funds’ advisor, serves as the securities lending agent for the funds in transactions involving the lending of portfolio securities on behalf of the funds. U.S. Bank acts as the securities lending agent pursuant to, and subject to compliance with conditions contained in, an exemptive order issued by the Securities and Exchange Commission (“SEC”). U.S. Bank receives fees as a percentage of each fund’s net income from securities lending transactions. 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. Securities lending fees paid to
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U.S. Bank by the funds for the fiscal year ended October 31, 2008, were as follows:
Fund | Amount | |||
Quantitative Large Cap Core Fund | $ | 26 | ||
Quantitative Large Cap Growth Fund | 4 | |||
Quantitative Large Cap Value Fund | 3 | |||
SECURITY LITIGATION SETTLEMENTS – Income from settlement proceeds related to portfolio securities no longer included in the portfolio is recorded as an adjustment to realized gains or losses. The funds did not have any adjustments made for the fiscal year ended October 31, 2008.
EXPENSES – Expenses that are directly related to one of the funds are charged directly to that fund. Other operating expenses are allocated to the funds on several bases, including evenly across all funds, allocated based on relative net assets of all funds within the First American Family of Funds, or a combination of both methods. Class specific expenses, such as distribution fees and shareholder servicing fees, are borne by that class. Income, other expenses, and realized and unrealized gains and losses of a fund are allocated to each respective class in proportion to the relative net assets of each class.
INTERFUND LENDING PROGRAM – Pursuant to an exemptive order issued by the SEC, the funds, along with other registered investment companies in the First American Family of Funds, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating funds. The funds did not have any interfund lending transactions during the fiscal year ended October 31, 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 open-end First American Funds, preselected by each director. All amounts in the Plan are 100% vested and accounts under the Plan are obligations of the funds. Deferred amounts remain in the funds until distributed in accordance with the Plan.
USE OF ESTIMATES IN PREPARATION OF FINANCIAL STATEMENTS – The preparation of financial statements, in conformity with U.S. generally accepted accounting principles, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported results of operations during the reporting period. Actual results could differ from those estimates.
3 > | Fees and Expenses |
INVESTMENT ADVISORY FEES – Pursuant to an investment advisory agreement (the “Agreement”), FAF Advisors manages each fund’s assets and furnishes related office facilities, equipment, research, and personnel. The Agreement requires each fund to pay FAF Advisors a monthly fee based upon average daily net assets. The annual fee for Quantitative Large Cap Core Fund, Quantitative Large Cap Growth Fund, and Quantitative Large Cap Value Fund is 0.30%, 0.30%, and 0.30%, respectively. FAF Advisors has agreed to waive fees and reimburse other fund expenses through at least 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 | R | Y | ||||||||||||||||||
Quantitative Large Cap Core Fund | 0.70 | % | 1.45 | % | 0.95 | % | 0.45 | % | ||||||||||||||
Quantitative Large Cap Growth Fund | 0.70 | 1.45 | 0.95 | 0.45 | ||||||||||||||||||
Quantitative Large Cap Value Fund | 0.70 | 1.45 | 0.95 | 0.45 | ||||||||||||||||||
The funds may invest in related money market funds that are series of First American Funds, Inc., subject to certain limitations. In order to avoid the payment of duplicative investment advisory fees to FAF Advisors, which acts as the investment advisor to both the investing funds and the related money market funds, FAF Advisors will reimburse each investing fund an amount equal to that portion of FAF Advisors’ investment advisory fee received from the related money market funds that is attributable to the assets of the investing fund. 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, 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
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Notes to Financial Statements October 31, 2008, all dollars and shares are rounded to thousands (000)
out-of-pocket expenses incurred in providing administration services.
TRANSFER AGENT FEES – USBFS serves as the funds’ transfer agent pursuant to a transfer agent agreement with FAIF. The funds are charged transfer agent fees on a per shareholder account basis, subject to a minimum fee per share class. These fees are charged to each fund based upon the number of accounts within that fund. In addition to these fees, the funds may reimburse USBFS for out-of-pocket expenses incurred in providing transfer agent services.
CUSTODIAN FEES – U.S. Bank serves as the funds’ custodian pursuant to a custodian agreement with FAIF. The custodian fee charged for each fund is equal to an annual rate of 0.005% of average daily net assets. All fees are computed daily and paid monthly.
Under the custodian agreement, interest earned on uninvested cash balances is used to reduce a portion of each fund’s custodian expenses. These credits, if any, are disclosed as “Indirect payments from custodian” in the Statement of Operations. Conversely, the custodian charges a fee for any cash overdrafts incurred, which will increase the fund’s custodian expenses. For the fiscal year ended October 31, 2008, custodian fees for Quantitative Large Cap Core Fund, Quantitative Large Cap Growth Fund, and Quantitative Large Cap Value Fund were not increased as a result of overdrafts and were not decreased by as a result of interest earned, respectively.
DISTRIBUTION AND SHAREHOLDER SERVICING (12B-1) FEES – Quasar Distributors, LLC (“Quasar”), a subsidiary of U.S. Bancorp, serves as distributor of the funds pursuant to a distribution agreement with FAIF. Under the distribution agreement, and pursuant to a plan adopted by each fund under rule 12b-1 of the Investment Company Act, each fund pays Quasar a monthly distribution and/or shareholder servicing fee equal to an annual rate of 0.25%, 1.00% and 0.50% of each fund’s average daily net assets attributable to Class A shares, Class C shares, and Class R shares, respectively. Class Y shares pay no distribution or shareholder servicing fees. These fees may be used by Quasar to provide compensation for sales support, distribution activities, and/or shareholder servicing activities.
Under the distribution and shareholder servicing agreement, the following amounts were retained by affiliates of FAF Advisors for the fiscal year ended October 31, 2008:
Fund | Amount | |||
Quantitative Large Cap Core Fund | $ | — | ||
Quantitative Large Cap Growth Fund | — | |||
Quantitative Large Cap Value Fund | — | |||
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 most other operating expenses, including: legal, auditing, registration fees, postage and printing of shareholder reports, fees and expenses of independent directors, insurance, and other miscellaneous expenses. For the fiscal year ended October 31, 2008, legal fees and expenses of $16 were paid to a law firm of which an Assistant Secretary of the funds is a partner.
CONTINGENT DEFERRED SALES CHARGES – A contingent deferred sales charge (“CDSC”) 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 October 31, 2008, total front-end sales charges and CDSCs retained by affiliates of FAF Advisors for distributing the funds’ shares were as follows:
Fund | Amount | |||
Quantitative Large Cap Core Fund | $ | 2 | ||
Quantitative Large Cap Growth Fund | — | |||
Quantitative Large Cap Value Fund | — | |||
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4 > | Capital Share Transactions |
FAIF has 366 billion shares of $0.0001 par value capital stock authorized. Capital share transactions for the funds were as follows:
Quantitative | Quantitative | Quantitative | ||||||||||||||||||||||||||
Large Cap | Large Cap | Large Cap | ||||||||||||||||||||||||||
Core Fund | Growth Fund | Value Fund | ||||||||||||||||||||||||||
Year | 7/31/07* | Year | 7/31/07* | Year | 7/31/07* | |||||||||||||||||||||||
Ended | to | Ended | to | Ended | to | |||||||||||||||||||||||
10/31/08 | 10/31/07 | 10/31/08 | 10/31/07 | 10/31/08 | 10/31/07 | |||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||||||
Shares issued | 5 | 5 | 2 | 2 | — | 1 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | — | — | — | — | — | — | ||||||||||||||||||||||
Shares redeemed | (3 | ) | — | (1 | ) | — | — | — | ||||||||||||||||||||
Total Class A transactions | 2 | 5 | 1 | 2 | — | 1 | ||||||||||||||||||||||
Class C: | ||||||||||||||||||||||||||||
Shares issued | — | 1 | — | 1 | — | — | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | — | — | — | — | — | — | ||||||||||||||||||||||
Shares redeemed | — | — | — | — | — | — | ||||||||||||||||||||||
Total Class C transactions | — | 1 | — | 1 | — | — | ||||||||||||||||||||||
Class R: | ||||||||||||||||||||||||||||
Shares issued | — | — | — | — | — | — | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | — | — | — | — | — | — | ||||||||||||||||||||||
Shares redeemed | — | — | — | — | — | — | ||||||||||||||||||||||
Total Class R transactions | — | — | — | — | — | — | ||||||||||||||||||||||
Class Y: | ||||||||||||||||||||||||||||
Shares issued | 4,109 | 1,887 | 870 | 280 | 707 | 280 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | 46 | 5 | 6 | 1 | 9 | 1 | ||||||||||||||||||||||
Shares redeemed | (580 | ) | (80 | ) | (33 | ) | — | (1 | ) | — | ||||||||||||||||||
Total Class Y transactions | 3,575 | 1,812 | 843 | 281 | 715 | 281 | ||||||||||||||||||||||
Net increase in capital shares | 3,577 | 1,818 | 844 | 284 | 715 | 282 | ||||||||||||||||||||||
* | Commencement of operations |
5 > | Investment Security Transactions |
During the fiscal year ended October 31, 2008, purchases of securities and proceeds from sales of securities, other than temporary investments in short-term securities, were as follows:
Fund | Purchases | Sales | ||||||
Quantitative Large Cap Core Fund | $ | 168,766 | $ | 104,476 | ||||
Quantitative Large Cap Growth Fund | 36,360 | 18,586 | ||||||
Quantitative Large Cap Value Fund | 26,313 | 14,458 | ||||||
The aggregate gross unrealized appreciation and depreciation of securities held by the funds and the total cost of securities (including cost of securities purchased with proceeds from securities lending) for federal income tax purposes at October 31, 2008, were as follows:
Aggregate | Aggregate | Federal | ||||||||||||||
Gross | Gross | Income | ||||||||||||||
Fund | Appreciation | Depreciation | Net | Tax Cost | ||||||||||||
Quantitative Large Cap Core Fund | $ | 1,113 | $ | (24,543 | ) | $ | (23,430 | ) | $ | 132,276 | ||||||
Quantitative Large Cap Growth Fund | 82 | (4,846 | ) | (4,764 | ) | 30,461 | ||||||||||
Quantitative Large Cap Value Fund | 388 | (3,450 | ) | (3,062 | ) | 24,001 | ||||||||||
6 > | Sector Risks |
Portfolios that primarily invest in a particular sector may experience greater volatility than portfolios investing in a broad range of industry sectors. As of October 31, 2008, Quantitative Large Cap Growth Fund had a significant portion of its assets invested in the information technology sector, which could be more sensitive to short product cycles and aggressive pricing than the technology industry as a whole.
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 October 31, 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 of Financial Accounting Standards No. 161, “Disclosures about
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Notes to Financial Statements | October 31, 2008, all dollars and shares are rounded to thousands (000) |
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.
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Notice toShareholders | October 31, 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 October 31, 2008, each fund has designated long term capital gains, ordinary income, and tax exempt income with regard to distributions paid during the period as follows:
Long Term | Ordinary | |||||||||||||||
Capital Gains | Income | Total | ||||||||||||||
Distributions | Distributions | Distributions | ||||||||||||||
Fund | (Tax Basis) 1 | (Tax Basis) 1 | (Tax Basis) | |||||||||||||
Quantitative Large Cap Core Fund | 4 | % | 96 | % | 100 | % | ||||||||||
Quantitative Large Cap Growth Fund | 1 | 99 | 100 | |||||||||||||
Quantitative Large Cap Value Fund | 3 | 97 | 100 | |||||||||||||
1 | Based on a percentage of the fund’s total distributions. |
Shareholder Notification of Federal Tax Status:
Each fund has designated the following percentages of the ordinary income distributions during the fiscal year ended October 31, 2008 as dividends qualifying for the dividends received deduction available to corporate shareholders:
Fund | ||||||||
Quantitative Large Cap Core Fund | 77.75 | % | ||||||
Quantitative Large Cap Growth Fund | 61.94 | |||||||
Quantitative Large Cap Value Fund | 98.84 | |||||||
In addition, each fund has designated the following percentages of the ordinary income distributions from net investment income during the fiscal year ended October 31, 2008 as qualified dividend income available to individual shareholders under the Jobs and Growth Tax Relief Reconciliation Act of 2003:
Fund | ||||||||
Quantitative Large Cap Core Fund | 78.30 | % | ||||||
Quantitative Large Cap Growth Fund | 62.67 | |||||||
Quantitative Large Cap Value Fund | 74.72 | |||||||
Additional Information Applicable to Foreign Shareholders Only:
The percentage of ordinary income distributions that are designated as interest-related dividends under Internal Revenue Code Section 871(k)(1)(c) for each fund was as follows:
Fund | ||||||||
Quantitative Large Cap Core Fund | 1.81 | % | ||||||
Quantitative Large Cap Growth Fund | 1.68 | |||||||
Quantitative Large Cap Value Fund | 1.29 | |||||||
The percentage of ordinary income distributions that are designated as short-term capital gain distributions under Internal Revenue Code Section 871(k)(2)(c) for each fund was as follows:
Fund | ||||||||
Quantitative Large Cap Core Fund | 29.68 | % | ||||||
Quantitative Large Cap Growth Fund | 45.20 | |||||||
Quantitative Large Cap Value Fund | 31.83 | |||||||
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Notice toShareholders October 31, 2008 (unaudited)
HOW TO OBTAIN A COPY OF THE FUNDS’ PROXY VOTING POLICIES AND PROXY VOTING RECORD
A description of the policies and procedures that the funds use to determine how to vote proxies relating to portfolio securities, as well as information regarding how the funds voted proxies relating to portfolio securities, is available at firstamericanfunds.com and on the Securities and Exchange Commission’s website at www.sec.gov. A description of the funds’ policies and procedures is also available without charge, upon request, by calling 800.677.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 period with the U.S. Securities and Exchange Commission on Form N-Q. The funds’ Forms N-Q are available (1) without charge upon request by calling 800.677.FUND and (2) on the Securities and Exchange Commission’s website at www.sec.gov. In addition, you may review and copy the funds’ Forms N-Q at the Commission’s Public Reference Room in Washington, D.C. You may obtain information on the operation of the Public Reference Room by calling 800.SEC.0330.
QUARTERLY PORTFOLIO HOLDINGS
Each fund will make portfolio holdings information publicly available by posting the information at firstamericanfunds.com on a quarterly basis. The funds will attempt to post such information within 10 business days of the calendar quarter end.
APPROVAL OF 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 considered the factors it deemed relevant, including: (1) the nature, quality and extent of FAF Advisors’ services to each Fund, (2) the investment performance of each Fund, (3) the profitability of FAF Advisors related to the Funds, including an analysis of FAF Advisors’ cost of providing services and comparative expense information, (4) whether economies of scale may be realized as the Funds grow and whether fee levels are adjusted to enable Fund investors to share in these potential economies of scale, and (5) other benefits that accrue to FAF Advisors through its relationship with the Funds. In its deliberations, the Board did not identify any single factor which alone was responsible for the Board’s decision to approve the Agreement.
Before approving the Agreement, the Board met in executive session with its independent counsel on numerous occasions to consider the materials provided by FAF Advisors and the terms of the Agreement. Based on its evaluation of those materials, the Board concluded that the Agreement is fair and in the best interests of the shareholders of each Fund. In reaching its conclusions, the Board considered the following:
Nature, Quality and Extent of Investment Advisory Services
The Board examined the nature, quality and extent of the services provided by FAF Advisors to each Fund. For each Fund, the Board reviewed FAF Advisors’ key personnel who provide investment management services to the Fund as well as the fact that, under the Agreement, FAF Advisors has the authority and responsibility to make and execute investment decisions for the Fund within the framework of the Fund’s investment policies and restrictions, subject to review by the Board. The Board further considered that FAF Advisors’ duties with respect to each Fund include: (i) investment research and security selection, (ii) adherence to (and monitoring compliance with) the Fund’s investment policies and restrictions and the Investment Company Act of 1940, and (iii) monitoring the performance of the various organizations providing services to the Fund, including the Fund’s distributor, sub-administrator, transfer agent and custodian. Finally, the Board considered FAF Advisors’ representation that the services provided by FAF Advisors under the Agreement are the type of services customarily provided by investment advisors in the fund industry.
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.
36 First American Funds 2008 Annual Report
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Investment Performance of the Funds
The Board considered the performance of each Fund, including how each Fund performed versus the median performance of a group of comparable funds selected by an independent data service (the “performance universe”) and how each Fund performed versus its benchmark index. The performance periods considered by the Board 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 relates to the performance of the Class Y shares.
The Board considered that each Fund started operations on July 31, 2007 and that the Funds have a short operating history. The Board noted that each Fund outperformed both its performance universe and its median for the period since inception. In light of each Fund’s short operating history and its competitive performance the Board concluded that it would be in the interest of each Fund and its shareholders to renew the Agreement.
Costs of Services and Profits Realized by FAF Advisors
The Board reviewed FAF Advisors’ costs in serving as the Funds’ investment manager, including the costs associated with the personnel and systems necessary to manage 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 reviewed fee and expense information as compared to that of other funds and accounts managed by FAF Advisors and of comparable funds managed by other advisors. The Board found that while the management fees for FAF Advisors’ institutional separate accounts are lower than the Funds’ management fees, the Funds receive additional services from FAF Advisors that separate accounts do not receive.
Using information provided by an independent data service, the Board also evaluated each Fund’s advisory fee compared to the median advisory fee for other mutual funds similar in size, character and investment strategy, and each Fund’s expense ratio after waivers compared to the median expense ratio, after waivers, of comparable funds. In connection with its review of Fund fees and expenses, the Board considered FAF Advisors’ pricing philosophy. FAF Advisors attempts generally to maintain each Fund’s total operating expenses at a level that approximates the median of a peer group of funds selected by an independent data service. In addition, FAF Advisors has committed to waive its investment advisory fees to the extent necessary to maintain the Funds’ total expense ratios at levels generally in line with their respective peer groups.
The Board considered that the Funds’ advisory fee and total expense ratio are lower than the peer group median. The Board concluded that the Funds’ advisory fee and total expense ratio are reasonable in light of the services provided.
Economies of Scale in Providing Investment Advisory Services
The Board considered the extent to which each Fund’s investment advisory fee reflects economies of scale for the benefit of Fund shareholders. Based on information provided by FAF Advisors, the Board noted that profitability will likely increase somewhat as assets grow over time. The Board considered that, although most Funds do not have advisory fee breakpoints in place, FAF Advisors has committed to waive advisory fees to the extent necessary to keep each Fund’s total expenses generally in line with the median total expenses of a peer group of funds as selected by an independent data service. The Board considered 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, transfer agent, distributor, custodian and securities lending agent, and receive compensation from the Funds in connection with providing services to the Funds. The Board considered that each service provided to the Funds by FAF Advisors or one of its affiliates is pursuant to a written agreement, which the Board evaluates periodically as required by law.
First American Funds 2008 Annual Report 37
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Notice toShareholders October 31, 2008 (unaudited)
The Board also considered FAF Advisors’ use of the Funds’ portfolio brokerage transactions to obtain research. The Board concluded, based on its own review and on representations of FAF Advisors and the CCO, that FAF Advisors’ use of “soft” commission dollars was consistent with regulatory requirements.
After full consideration of these and other factors, the Board concluded that approval of the Agreement was in the interest of each Fund and its shareholders.
38 First American Funds 2008 Annual Report
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Directors and Officers of the Funds
Independent Directors | ||||||||||
Other | ||||||||||
Position(s) | Term of Office | Number of Portfolios | Directorships | |||||||
Name, Address, and | Held | and Length of | Principal Occupation(s) | in Fund Complex | Held by | |||||
Year of Birth | with Funds | Time Served | During Past 5 Years | Overseen by Director | Director † | |||||
Benjamin R. Field III P.O. Box 1329 Minneapolis, MN 55440-1329 (1938) | Director | Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since September 2003 | Retired; Senior Financial Advisor, Bemis Company, Inc. from May 2002 through 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; Advisor/Consultant, Future FreightTM, a logistics/supply chain company since August 2004; Vice President and Chief Operating Officer, Cargo-United Airlines, from July 2001 until retirement in June 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 since 2001; Board Chair, United Educators Insurance Company | 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, William Blair & Company, LLC, a Chicago-based investment firm | 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 | 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., a consulting company providing advice on business strategy, mergers and acquisitions, and non-profit board member since 2005 | First American Funds Complex: twelve registered investment companies, including sixty-two portfolios | Cliffs Natural Resources, Inc. (a producer of iron ore pellets and coal) | |||||
Joseph D. Strauss P.O. Box 1329 Minneapolis, MN 55440-1329 (1940) | Director | Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since April 1991 | Attorney At Law, Owner and President, Strauss Management Company, a Minnesota holding company for various organizational management business ventures; Owner, Chairman and Chief Executive Officer, Community Resource Partnerships, Inc., a 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 | 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 FASF since September 1987 | Governance consultant and non-profit board member; former Owner and President, Strategic Management Resources, Inc., a management consulting firm; Chair, Saint Paul Riverfront Corporation, since 2005 | First American Funds Complex: twelve registered investment companies, including sixty-two portfolios | None | |||||
First American Funds 2008 Annual Report 39
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Notice toShareholders | October 31, 2008 (unaudited) |
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 † | |||||
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.
40 First American Funds 2008 Annual Report
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Officers | ||||||
Position(s) | Term of Office | |||||
Name, Address, and | Held | and Length of | ||||
Year of Birth | with Funds | Time Served | Principal Occupation(s) During Past 5 Years | |||
Thomas S. Schreier, Jr. FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1962)* | President & Vice President – Investments | 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. | |||
Mark D. Corns FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1963)* | Anti-Money Laundering Officer | Re-elected by the Board annually; Anti-Money Laundering Officer of FAIF since September 2008 | Director of Compliance, FAF Advisors, Inc., since June 2006; Compliance Manager, FAF Advisors, Inc. from January 2005 to June 2006; prior thereto, Compliance Manager, OppenheimerFunds, 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 FASF 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, Corns, 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 41
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Board of Directors First American Investment Funds, Inc.
Virginia Stringer
Chairperson of First American Investment Funds, Inc.
Governance Consultant; Chair of Saint Paul Riverfront Corporation;
former Owner and President of Strategic Management Resources, Inc.
Benjamin Field III
Director of First American Investment Funds, Inc.
Retired; former Senior Financial Advisor, Senior Vice President,
Chief Financial Officer, and Treasurer of Bemis Company, Inc.
Roger Gibson
Director of First American Investment Funds, Inc.
Director of Charterhouse Group, Inc.
Victoria Herget
Director of First American Investment Funds, Inc.
Investment Consultant; Chair of United Educators Insurance Company;
former Managing Director of Zurich Scudder Investments
John Kayser
Director of First American Investment Funds, Inc.
Retired; former Principal, Chief Financial Officer, and Chief Administrative Officer of William Blair & Company, LLC
Leonard Kedrowski
Director of First American Investment Funds, Inc.
Owner and President of Executive and Management Consulting, Inc.
Richard Riederer
Director of First American Investment Funds, Inc.
Owner and Chief Executive Officer of RKR Consultants, Inc.
Joseph Strauss
Director of First American Investment Funds, Inc.
Owner and President of Strauss Management Company
James Wade
Director of First American Investment Funds, Inc.
Owner and President of Jim Wade Homes
First American Investment Funds’ Board of Directors is comprised entirely of
independent directors.
independent directors.
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![(FIRST AMERICAN FUNDS LOGO)](https://capedge.com/proxy/N-CSR/0000950137-09-000237/c48053faflogo.gif)
Direct fund correspondence to:
First American Funds
P.O. Box 1330
Minneapolis, MN 55440-1330
This report and the financial statements contained herein are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Further, there is no assurance that certain securities will remain in or out of each fund’s portfolio. The views expressed in this report reflect those of the portfolio managers only through the period ended October 31, 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 12/2008 AR-QUANT
Item 2—Code of Ethics
The registrant has adopted a code of ethics that applies to its principal executive officer and principal financial officer. During the period covered by this report, there were no amendments to the provisions of the registrant’s code of ethics that apply to the registrant’s principal executive officer and principal financial officer and that relate to any element of the code of ethics definition enumerated in this Item. During the period covered by this report, the registrant did not grant any waivers, including implicit waivers, from any provision of its code of ethics. The registrant undertakes to 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 $1,038,747 in the fiscal period ended October 31, 2008 and $938,498 in the fiscal year ended October 31, 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 $3,647 in the fiscal period ended October 31, 2008 and $4,117 in the fiscal year ended October 31, 2007, including fees associated with the semi-annual review of fund disclosures. | |
(c) | Tax Fees — E&Y billed the registrant fees of $209,423 in the fiscal period ended October 31, 2008 and $159,670 in the fiscal year ended October 31, 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 years ended October 31, 2008 and October 31, 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
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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 |
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• | Accounting methods studies | ||
• | Fund merger support services | ||
• | Tax consulting services and related projects |
Notwithstanding any annual pre-approval of these categories of services, individual projects with an estimated fee in excess of $25,000 are subject to pre-approval by the Committee Chair or its delegate on a case-by-case basis. Individual projects with an estimated fee in excess of $50,000 are subject to pre-approval by the Committee or its delegate on a case-by-case basis.
Other Non-audit Services
The SEC auditor independence rules adopted in response to the Sarbanes-Oxley Act specifically allow certain non-audit services. Because of the nature of these services, none of these services may be commenced by the independent audit firm without the prior approval of the Committee. The Committee may delegate this responsibility to one or more of the Committee members, with the decisions presented to the full Committee at the next scheduled meeting.
Proscribed Services
In accordance with SEC rules on independence, the independent audit firm is prohibited from performing services in the following categories of non-audit services:
• | Management functions | ||
• | Accounting and bookkeeping services | ||
• | Internal audit services | ||
• | Financial information systems design and implementation | ||
• | Valuation services supporting the financial statements | ||
• | Actuarial services supporting the financial statements | ||
• | Executive recruitment | ||
• | Expert services (e.g., litigation support) | ||
• | Investment banking |
Policy for Pre-approval of Non-Audit Services Provided to Other Entities within the Investment Company Complex
The Committee is also responsible for pre-approving certain non-audit services provided to FAF Advisors, Inc., U.S. Bank N.A., Quasar Distributors, LLC, U.S. Bancorp Fund Services, LLC and any other entity under common control with FAF Advisors, Inc., that provides ongoing services to the funds. The only non-audit services provided to these entities which require pre-approval are those services that relate directly to the operations and financial reporting of the funds.
Although the Committee is not required to pre-approve all services provided to FAF Advisors, Inc. and other affiliated service providers, the Committee will annually receive a report from the independent audit firm on the aggregate fees for all services provided to U.S. Bancorp and affiliates.
(e)(2) | All of the services described in paragraphs (b) through (d) of this Item 4 were pre-approved by the audit committee. | |
(f) | All services performed on the engagement to audit the registrant’s financial statements for the most recent fiscal period end were performed by the principal accountant’s full-time, permanent employees. | |
(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 $363,233 in the fiscal period October 31, 2008 and $163,787 in the fiscal year ended October 31, 2007. |
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(h) | The registrant’s audit committee has determined that the provision of non-audit services to the registrant’s investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant, that were not pre-approved is compatible with maintaining E&Y’s independence. |
Item 5—Audit Committee of Listed Registrants
Not applicable.
Item 6—Schedule of Investments
The schedule is included as part of the report to shareholders filed under Item 1 of this Form.
Item 7—Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8—Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9—Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10—Submission of Matters to a Vote of Security Holders
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of directors, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14A, or this Item.
Item 11—Controls and Procedures
(a) | The registrant’s principal executive officer and principal financial officer have evaluated the effectiveness of the registrant’s disclosure controls and procedures within 90 days of the date of this filing and have concluded that the registrant’s disclosure controls and procedures were effective, as of that date, in ensuring that information required to be disclosed by the registrant in this Form N-CSR was recorded, processed, summarized and reported timely. | |
(b) | There were no changes in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12—Exhibits
(a)(1) | Not applicable. Registrant’s code of ethics is provided to any person upon request without charge. | |
(a)(2) | Certifications of the principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940 are filed as exhibits hereto. | |
(a)(3) | Not applicable. | |
(b) | Certifications of the principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(b) under the Investment Company Act of 1940 are filed as exhibits hereto. |
Table of Contents
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
First American Investment Funds, Inc. | ||||
By: | /s/ Thomas S. Schreier, Jr. | |||
President | ||||
Date: January 6, 2009 |
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. | |||
President | ||||
Date: January 6, 2009 | ||||
By: | /s/ Charles D. Gariboldi, Jr. | |||
Treasurer | ||||
Date: January 6, 2009 |