Information on the First American Prime Obligations Fund

First American Prime Obligations Fund - Class A (FIVXX)

Fund Objective
First American Prime Obligations Fund seeks maximum current income to the extent consistent with preservation of capital and maintenance of liquidity.

Fund Investment Strategy
First American Prime Obligations Fund invests in high-quality short-term debt obligations, including:

  • Securities issued by the U.S. government or one of its agencies or instrumentalities.
  • U.S. dollar-denominated obligations of domestic and foreign banks with total assets of at least $500 million (including fixed and variable rate certificates of deposit, time deposits and bankers' acceptances.)
  • Commercial paper.
  • Non-convertible corporate debt securities.
  • Loan participation interests.
  • Repurchase agreements for the securities in which the fund may invest.
When selecting securities for the fund, the portfolio managers use a "top-down" approach, looking first at general economic factors and market conditions then at individual securities.

Under normal market conditions, portfolio managers will only purchase (and hold) securities in the fund if they are rated in the top short-term rating category, for example, a rating of A-1 or a rating of Prime-1. If the rating of a security is reduced below the top short-term rating category after purchase, portfolio managers will make every attempt to sell the security.

The fund may invest up to 25% of its total assets in dollar-denominated obligations of U.S. branches of foreign banks which are subject to the same regulation as U.S. banks. The fund also may invest up to 25% of its total assets, collectively, in dollar-denominated obligations of foreign branches of domestic banks, foreign banks, and foreign corporations.

This Fund offers the convenience of direct exchange to and from the Hennessy Funds, as well as check writing privileges.  This Fund is not managed by Hennessy Advisors Incorporated or any of its affiliates. 

Portfolio Allocation (as of June 30, 2008)
 

% of Net Assets
Commercial Paper
35.4%
Structured Notes/SIV's
0.7%
Corporate Notes
22.3%
Certificates of Deposit
28.8%
Repurchase Agreements
2.4%
Funding Agreements/Master Notes
2.3%
Time Deposits
0.0%

Investment Companies

3.9%
Agencies/Treasuries
4.1%
     TOTAL
100.0%

Fund Characteristics  (as of June 30, 2008)
Average Maturity
49days
Current 7-day Yield
1.96%
CUSIP
318 46V 500
Minimum Investment
$1,000 regular account/ $500 IRA
Annual Expense Ratio
0.78%

 
 
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Portfolio allocations are subject to change and are not recommendations to buy or sell any security.

Shares of First American Prime Obligations Fund are available to shareholders of the Hennessy Funds.  This Fund offers the convenience of direct exchange to and from the Hennessy Funds, as well as check writing privileges.  This Fund is not managed by Hennessy Advisors Incorporated or any of its affiliates. 

The fund's investment objectives, risks, charges and expenses must be considered carefully before investing. The prospectus contains this and other important information about the investment company, and it may be obtained by calling 800-966-4354. Read it carefully before investing.

First American Funds are not deposits or obligations of, or guaranteed by U.S. Bank N.A. or its affiliates, nor insured or guaranteed by the Federal Deposit Insurance Corporation, the U.S. government or any others governmental agency.  Although the First American Prime Obligations Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund.  First American Funds are distributed by Quasar Distributors, LLC.