06-20-07 FPAC Minutes - Laserfiche WebLink

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The Investment Advisor places order for all purchases and sales of portfolio securities. Although • neither Fund ordinarily seeks profits from short-term trading,the Investment Advisor may,on behalf of a Fund,dispose of any portfolio investment prior to its maturity if it believes such disposition is advisable. The Investment Advisor seeks to obtain the best net price and most favorable execution of orders for the purchase and sale of portfolio securities. Where price and execution offered by more than one dealer are comparable, the Investment Advisor may, in its discretion, purchase and sell investments through dealers which provide research, statistical and other information to the Investment Advisor or to the Trust. Such supplemental information received from a dealer is in addition to the services required to be performed by the Investment Advisor under its agreement with each Fund, and the expenses of the Investment Advisor will not necessarily be reduced as a result of the receipt of such information. Fund investments will not be purchased from or sold to the Investment Advisor or the Administrator or any affiliate of the Investment Advisor or the Administrator. REPORTS TO PARTICIPANTS Participants in each Fund receive transaction advise subsequent to all investments and wire withdrawals that they make. Each Participant receives annual reports providing financial information regarding each applicable Fund (including a statement of net income) as well as a monthly statement of the Participant's account. The annual report includes audited financial statements of the Funds. Each Fund's fiscal year ends on December 31 of each year. Potential Participants are advised to review the financial reports of the Funds that are made available to them. The Trust answers inquiries at any time during business hours (8:00 a.m. through 4:00 p.m., Minneapolis time) from a Participant concerning the status of its account(number of shares,etc.)and the • current yield available through the Fund's investment program. Such inquiries can be made by telephoning(866)922-2849. TAXES In the opinion of Counsel to the Trust,neither Fund is subject to federal or Minnesota income tax upon the income realized by it, and the Participants are not subject to tax upon distributions to them of such income. Counsel to the Trust is further of the opinion that the Participants are not subject to taxation as a result of their investment of municipal monies in either Fund. DECLARATION OF TRUST Each prospective Participant is given a copy of the Declaration of Trust before becoming a Participant. Certain portions of the Declaration of Trust are summarized in this Information Statement. The following summary is qualified in its entirety by reference to the text of the Declaration of Trust, as amended. Description of Shares. The Declaration of Trust provides that the beneficial interests of Participants in the net assets of each Fund are, for convenience of reference,divided into shares which are used as units to measure the proportionate allocation of beneficial interest among the Participants of such Fund. The Declaration of Trust authorizes an unlimited number of full and fractional shares for each Fund, as well as adjustments in the total number of shares outstanding from time to time in order to permit each Fund to maintain a constant net asset value of$1.00 per share. • -11-