|
Description
of Security
|
Date
Acquired
|
Par
Value/Shares
|
Cost
|
Value
(a)
|
||||
|
(Percentages
of each investment category relate to net assets)
|
||||||||
|
U.S.
Government Agency Mortgage-Backed Securities -
12.6%
|
||||||||
|
Fixed
Rate - 12.6%
|
||||||||
|
Federal
Home Loan Mortgage Corporation,
|
||||||||
|
5.50%,
1/1/18, #E93231 (b)
|
$
|
788,460
|
$
|
810,429
|
$
|
794,189
|
||
|
9.00%,
7/1/30, #C40149
|
143,889
|
147,497
|
156,259
|
|||||
|
Federal
National Mortgage Association,
|
||||||||
|
6.00%,
10/1/16, #610761 (b)
|
433,509
|
440,923
|
441,754
|
|||||
|
5.00%,
7/1/18, #724954 (b)
|
1,769,614
|
1,767,383
|
1,757,423
|
|||||
|
6.50%,
6/1/29, #252497 (b)
|
200,877
|
199,596
|
206,470
|
|||||
|
7.50%,
3/1/30,
#495694
|
230,880
|
227,335
|
238,708
|
|||||
|
7.50%,
5/1/30, #535289 (b)
|
41,483
|
40,166
|
43,273
|
|||||
|
8.00%,
5/1/30, #538266 (b)
|
11,859
|
11,718
|
12,531
|
|||||
|
6.00%,
5/1/31, #535909 (b)
|
386,968
|
389,037
|
392,543
|
|||||
|
6.50%,
11/1/31, #613339 (b)
|
192,709
|
196,733
|
197,806
|
|||||
|
5.50%,
7/1/33, #720735 (b)
|
2,332,530
|
2,306,157
|
2,329,114
|
|||||
|
Total
U.S. Government Agency Mortgage-Backed Securities
|
6,536,974
|
6,570,070
|
||||||
|
Whole
Loans and Participation Mortgages (c) (d) - 92.8%
|
||||||||
|
Commercial
Loans - 47.8%
|
||||||||
|
Advance
Self Storage, Lincoln, NE, 6.13%, 1/1/11
|
11/29/00
|
1,517,737
|
1,517,737
|
1,549,171
|
||||
|
Buca
Restaurant, Maple Grove, MN, 8.63%, 1/1/11
|
01/01/05
|
874,992
|
874,992
|
901,242
|
||||
|
Dependable
Mini-Storage I, Plano, TX, 6.64%, 7/1/11 (e)
|
06/27/06
|
2,800,000
|
2,800,000
|
2,912,000
|
||||
|
Dependable
Mini-Storage II, Plano, TX, 11.88%, 7/1/07 (e)
|
06/27/06
|
300,000
|
300,000
|
312,000
|
||||
|
Dixie
Highway, Pompano Beach, FL, 6.93%, 9/1/11
|
08/31/04
|
823,634
|
823,634
|
864,815
|
||||
|
Hampden
Medical Office, Englewood, CO, 7.38%, 10/1/12 (b)
|
09/09/02
|
1,689,806
|
1,689,806
|
1,549,087
|
||||
|
Integrity
Plaza Shopping Center, Albuquerque, NM, 7.88%, 7/1/12 (b)
|
05/11/04
|
2,023,388
|
2,023,388
|
2,124,557
|
||||
|
Metro
Center, Albuquerque, NM, 5.20%, 5/1/09 (b)
|
04/07/04
|
2,519,557
|
2,519,557
|
2,502,176
|
||||
|
Metro
Center II, Albuquerque, NM, 7.88%, 5/1/09
|
03/20/06
|
149,009
|
149,009
|
140,304
|
||||
|
Minikahda
Mini Storage IV, Minneapolis, MN, 7.15%, 3/1/11
|
02/28/06
|
1,616,674
|
1,616,674
|
1,665,174
|
||||
|
Murphy
Industrial Building, Irvine, CA, 8.70%, 10/1/07 (b) (e)
(f)
|
09/29/04
|
1,450,000
|
1,450,000
|
1,426,213
|
||||
|
Orchard
Commons, Englewood, CO, 8.75%, 4/1/11
|
03/28/01
|
978,904
|
978,904
|
973,077
|
||||
|
Perkins
Restaurant, Maple Grove, MN, 6.38%, 1/1/11 (e)
|
12/23/05
|
1,400,000
|
1,400,000
|
1,437,122
|
||||
|
Par
3 Office Building, Bend, OR, 6.63%, 8/1/13 (e)
|
08/03/06
|
1,900,000
|
1,900,000
|
1,995,000
|
||||
|
Rockwood
Galleria, Gresham, OR, 7.25%, 2/1/11
|
01/06/03
|
1,544,048
|
1,544,048
|
1,080,833
|
||||
|
Stephens
Center, Missoula, MT, 6.38%, 9/1/10
|
08/21/03
|
1,887,941
|
1,887,941
|
1,943,522
|
||||
|
Voit
Office Building, Orange, CA, 7.38%, 9/1/08
|
08/17/01
|
1,475,599
|
1,475,599
|
1,505,111
|
||||
|
24,951,289
|
24,881,404
|
|||||||
|
Multifamily
Loans - 43.3%
|
||||||||
|
135
West Palace Avenue, Santa Fe, New Mexico 6.68%, 11/1/11
(e)
|
10/02/06
|
1,900,000
|
1,900,000
|
1,976,000
|
||||
|
712
S. Westlake Apartments, Los Angeles, CA, 8.20%, 7/1/07 (e)
(f)
|
06/03/05
|
1,800,000
|
1,800,000
|
1,564,245
|
||||
|
Applewood
Manor, Duluth, MN, 8.63%, 1/1/08
|
12/23/93
|
598,309
|
595,318
|
610,276
|
||||
|
Cascade
Village, Cascade Township, MI, 5.25%, 12/1/09 (b)
|
11/23/04
|
1,581,039
|
1,581,039
|
1,565,996
|
||||
|
Forest
Club Apartments, Dallas, TX, 11.88%, 5/1/08 (e)
|
04/19/06
|
1,720,000
|
1,720,000
|
1,681,044
|
||||
|
Franklin
Woods Apartments, Franklin, NH, 6.00%, 3/1/10
|
02/24/95
|
893,697
|
907,859
|
895,417
|
||||
|
Hunt
Club Apartments, Waco, TX, 5.68%, 7/1/11 (b)
|
06/03/04
|
1,204,093
|
1,204,093
|
1,217,195
|
||||
|
Ironwood
Apartments, Tucson, AZ, 8.82%, 4/1/08 (e) (f)
|
03/31/06
|
2,975,000
|
2,975,000
|
2,975,000
|
||||
|
Park
Hollywood, Portland, OR, 7.38%, 6/1/12
|
05/31/02
|
1,128,179
|
1,128,179
|
1,184,588
|
||||
|
Spring
Creek Gardens, Plano, TX, 8.45%, 1/1/09 (e) (f)
|
12/22/05
|
2,050,000
|
2,050,000
|
2,050,000
|
||||
|
Steel
Lake Apartments, Federal Way, WA, 7.97%, 6/1/08 (e) (f)
|
05/31/05
|
3,985,000
|
3,985,000
|
3,743,330
|
||||
|
Vanderbilt
Condominiums, Austin, TX, 8.04%, 10/1/09
|
09/29/99
|
1,110,716
|
1,110,716
|
1,144,037
|
||||
|
Villa
Bonita, Chez Royalle, Fitzhugh Apartments I, Dallas, TX, 8.70%,
3/1/07 (b)
(e) (f)
|
02/21/03
|
844,444
|
844,444
|
844,444
|
||||
|
Villa
Bonita, Chez Royalle, Fitzhugh Apartments II, Dallas, TX, 9.88%,
3/1/07
(e)
|
02/21/03
|
155,556
|
155,556
|
141,522
|
||||
|
Woodland
Garden Apartments, Arlington, WA, 7.38%, 9/1/08
|
08/26/98
|
958,580
|
958,580
|
972,031
|
||||
|
22,915,784
|
22,565,125
|
|||||||
|
Single
Family Loans - 1.7%
|
||||||||
|
Aegis
II, 2 loans, midwestern United States, 9.66%, 1/28/14
|
12/28/95
|
19,567
|
17,928
|
19,178
|
||||
|
American
Portfolio, 1 loan, California, 4.88%, 10/18/15
|
07/18/95
|
23,584
|
22,465
|
22,934
|
||||
|
Anivan,
1 loan, Maryland, 5.19%, 4/14/12
|
06/14/96
|
89,762
|
90,342
|
85,637
|
||||
|
Bank
of New Mexico, 1 loan, New Mexico, 6.23%, 3/31/10
|
03/01/04
|
38,476
|
37,763
|
37,759
|
||||
|
Bluebonnet
Savings and Loan, 7 loans, Texas, 6.66%, 8/31/10
|
05/22/92
|
162,782
|
149,137
|
158,328
|
||||
|
Bluebonnet
Savings and Loan II, 1 loan, Texas, 11.50%, 8/31/10
|
05/22/92
|
4,072
|
3,990
|
3,817
|
||||
|
CLSI
Allison Wiliams, 2 loans, Texas, 9.38%, 8/1/17
|
02/28/92
|
13,200
|
12,140
|
13,017
|
||||
|
Cross
Roads Savings and Loan, 1 loan, Oklahoma, 6.25%, 1/1/21
|
01/07/92
|
37,530
|
35,492
|
37,899
|
||||
|
Cross
Roads Savings and Loan II, 3 loans, Oklahoma, 8.34%,
1/1/21
|
01/07/92
|
23,627
|
22,220
|
22,422
|
||||
|
Fairbanks,
1 loan, Utah, 5.50%, 9/23/15
|
05/21/92
|
21,185
|
17,981
|
19,613
|
||||
|
First
Boston Mortgage Pool, 5 loans, United States, 9.04%,
11/5/07
|
06/23/92
|
37,916
|
30,989
|
38,681
|
||||
|
Knutson
Mortgage Portfolio I, 2 loans, midwestern United States, 9.37%,
8/1/17
|
02/26/92
|
151,044
|
144,130
|
155,575
|
||||
|
McClemore,
Matrix Funding Corporation, 1 loan, North Carolina, 10.50%,
9/30/12
|
09/09/92
|
46,380
|
44,061
|
47,772
|
||||
|
Nomura
III, 4 loans, midwestern United States, 8.20%, 4/29/17
|
09/29/95
|
114,281
|
103,304
|
112,229
|
||||
|
Rand
Mortgage Corporation, 2 loans, Texas, 9.50%, 8/1/17
|
07/01/02
|
63,508
|
52,100
|
65,413
|
||||
|
Salomon
II, 1 loan, midwestern United States, 9.34%, 11/23/14
|
12/23/94
|
36,701
|
31,946
|
37,802
|
||||
|
Valley
Bank of Commerce, 2 loans, New Mexico, 9.01%, 8/31/10
|
05/07/92
|
709
|
603
|
691
|
||||
|
816,591
|
878,767
|
|||||||
|
Total
Whole Loans and Participation Mortgages
|
48,683,664
|
48,325,296
|
||||||
|
Preferred
Stocks- 17.0%
|
||||||||
|
Real
Estate Investment Trusts - 17.0%
|
||||||||
|
AMB
Property, Series L (b)
|
14,500
|
$
|
359,755
|
$
|
362,355
|
|||
|
AMB
Property, Series M (b)
|
5,600
|
139,850
|
140,840
|
|||||
|
BRE
Properties, Series B (b)
|
20,500
|
539,150
|
529,105
|
|||||
|
BRE
Properties, Series C (b)
|
400
|
10,216
|
9,992
|
|||||
|
BRE
Properties, Series D (b)
|
400
|
10,180
|
10,100
|
|||||
|
Developers
Diversified Realty, Series E
|
13,000
|
338,650
|
326,950
|
|||||
|
Developers
Diversified Realty, Series H
|
4,750
|
122,822
|
121,743
|
|||||
|
Developers
Diversified Realty, Series I
|
3,800
|
100,450
|
98,382
|
|||||
|
Duke
Realty Corp., Series J (b)
|
2,100
|
52,246
|
52,563
|
|||||
|
Duke
Realty Corp., Series K (b)
|
6,200
|
152,826
|
155,496
|
|||||
|
Duke
Realty Corp., Series L (b)
|
12,000
|
302,160
|
304,560
|
|||||
|
Duke
Realty Corp., Series M (b)
|
2,000
|
50,000
|
51,940
|
|||||
|
Equity
Office Properties Trust, Series G (b)
|
20,500
|
553,847
|
513,320
|
|||||
|
Equity
Residential Properties, Series D (b)
|
1,600
|
42,553
|
41,536
|
|||||
|
Equity
Residential Properties, Series N (b)
|
20,100
|
500,946
|
508,329
|
|||||
|
First
Industrial Realty Trust (b)
|
23,450
|
594,458
|
605,948
|
|||||
|
Health
Care Properties, Series E (b)
|
10,500
|
274,759
|
275,625
|
|||||
|
Health
Care Properties, Series F (b)
|
15,150
|
390,230
|
391,022
|
|||||
|
HRPT
Properties Trust, Series B (b)
|
14,000
|
364,477
|
358,820
|
|||||
|
Kimco
Realty, Series F (b)
|
19,400
|
500,619
|
492,760
|
|||||
|
New
Plan Excel Realty Trust, Series E (b)
|
4,000
|
102,624
|
102,680
|
|||||
|
Post
Properties, Inc., Series B
|
17,800
|
468,112
|
454,078
|
|||||
|
Prologis
Trust, Series F (b)
|
6,700
|
167,835
|
170,850
|
|||||
|
Prologis
Trust, Series G (b)
|
13,200
|
330,984
|
338,712
|
|||||
|
PS
Business Park, Series F
|
10,500
|
276,103
|
268,800
|
|||||
|
Public
Storage, Series A (b)
|
6,000
|
144,291
|
148,020
|
|||||
|
Public
Storage, Series X (b)
|
3,000
|
74,330
|
75,600
|
|||||
|
Public
Storage, Series Z (b)
|
11,500
|
282,309
|
283,475
|
|||||
|
Realty
Income Corp., Series D (b)
|
20,500
|
546,185
|
541,405
|
|||||
|
Regency
Centers Corp., Series D (b)
|
20,500
|
543,955
|
520,085
|
|||||
|
Vornado
Realty Trust, Series E (b)
|
4,800
|
121,338
|
124,800
|
|||||
|
Vornado
Realty Trust, Series F (b)
|
7,800
|
199,340
|
197,106
|
|||||
|
Vornado
Realty Trust, Series G (b)
|
8,000
|
200,400
|
200,320
|
|||||
|
Vornado
Realty Trust, Series I (b)
|
2,000
|
46,500
|
49,900
|
|||||
|
Total
Preferred Stocks
|
8,904,500
|
8,827,217
|
||||||
|
Total
Investments in Unaffiliated Securities
|
64,125,138
|
63,722,583
|
||||||
|
Short-Term
Investment (g) - 5.5%
|
||||||||
|
First
American Prime Obligations Fund
|
2,862,752
|
2,862,752
|
2,862,752
|
|||||
|
Total
Short-Term Investment
|
2,862,752
|
2,862,752
|
||||||
|
Total
Investments in Securities (h) - 127.9%
|
$
|
66,987,890
|
66,585,335
|
|||||
|
Other
Assets and Liabilities, Net -
(27.9)%
|
(14,512,458)
|
|||||||
|
Total
Net Assets -
100.00%
|
$
|
52,072,877
|
|
Notes
to Schedule of Investments:
|
||||||||||
|
(a)
|
Security
valuations for the fund’s investments (other than whole loans,
participation mortgages, and mortgage servicing rights) are furnished
by
an independent pricing service that has been approved by the fund’s board
of directors. Investments in equity securities that are traded
on a
national securities exchange 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 fund utilizes
the Nasdaq
Official Closing Price which compares the last trade to the bid/ask
price
of a security. If the last trade falls within the bid/ask range,
then that
price will be the closing price. If the last trade is outside the
bid/ask
range, and falls above the ask, the ask price will be the closing
price.
If the last trade is below the bid, the bid will be the closing
price.
Other equity securities traded in the over-the-counter market and
listed
equity securities for which no sale was reported on that date are
stated
at the last quoted bid price. 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. 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 fund’s board of directors. Some
of the factors which may be considered in determining fair value
are
fundamental analytical data relating to the investments; the nature
and
duration of any restrictions on disposition; trading in similar
securities
of the same issuer or comparable companies; information from
broker-dealers; and an evaluation of the forces that influence
the market
in which the security is purchased or 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. Debt obligations with 60 days or less remaining until
maturity
may be valued at their amortized cost, which approximates market
value.
Security valuations are performed at least once a week and at the
end of
each month.
The
fund's investments in whole loans (single family, multifamily,
and
commercial), participation mortgages, and mortgage servicing rights
are
generally not traded in any organized market and, therefore, market
quotations are not readily available. These investments are valued
at fair
value according to procedures adopted by the fund’s board of directors.
Pursuant to these procedures, whole loan investments are initially
valued
at cost and their values are subsequently monitored and adjusted
using a
FAF Advisors, Inc. (“FAF Advisors”) pricing model designed to incorporate,
among other things, the present value of the projected stream of
cash
flows on such investments. The pricing model takes into account
a number
of relevant factors including the projected rate of prepayments,
the
delinquency profile, the historical payment record, the expected
yield at
purchase, changes in prevailing interest rates, and changes in
the real or
perceived liquidity of whole loans, participation mortgages, or
mortgages
servicing rights, as the case may be. The results of the pricing
model may
be further subject to price ceilings due to the illiquid nature
of the
loans. Changes in prevailing interest rates, real or perceived
liquidity,
yield spreads, and creditworthiness are factored into the pricing
model
each week.
Certain
mortgage loan information is received once a month. This information
includes, but is not limited to, the projected rate of prepayments,
the
projected rate and severity of defaults, the delinquency profile,
and the
historical payment record. Valuations of whole loans, participation
mortgages, and mortgage servicing rights are determined no less
frequently
than weekly. Although FAF Advisors believes the pricing model to
be
reasonable and appropriate, the actual values that may be realized
upon
the sale of whole loans, participation mortgages, and mortgage
servicing
rights can only be determined in a negotiation between the fund
and third
parties.
In
accordance with the valuation procedures
adopted by the fund's board of directors, real estate acquired
through
foreclosure, if any, is valued at estimated market value, as determined
by
independent third party appraisals, less estimated selling costs. As
material capital improvements are made to the property, new market
value
appraisals are obtained.
As
of November 30, 2006, the fund held fair valued securities with
a value of
$48,325,296 or 92.8% of net assets.
|
|||||||||
|
(b)
|
On
November 30, 2006, securities valued at $24,962,035 were pledged
as
collateral for the following outstanding reverse repurchase
agreements:
|
|||||||||
|
Amount
|
Acquisition
Date
|
Rate*
|
Due
|
Accrued
Interest
|
Name
of Broker
and
Description
of
Collateral
|
|||||
|
|
$
5,948,270
|
11/10/06
|
5.35%
|
12/18/06
|
$24,751
|
(1)
|
||||
|
|
5,000,000
|
11/1/06
|
6.20%
|
12/1/06
|
25,813
|
(2)
|
||||
|
3,700,000
|
11/10/06
|
6.02%
|
12/11/06
|
19,180
|
(3)
|
|||||
|
|
$14,648,270
|
$69,744
|
||||||||
|
*
|
Interest
rate as of November 30, 2006. Rate is based on the London InterBank
Offered Rate (LIBOR) plus a spread and reset monthly.
|
|||||||||
|
Name
of broker and description of collateral:
|
||||||||||
|
(1)
|
Morgan
Stanley:
|
|||||||||
|
Federal
Home Loan Mortgage Corporation, 5.50%, 1/1/18, $788,460
par
|
||||||||||
|
Federal
National Mortgage Association, 6.00%, 10/1/16, $433,509
par
|
||||||||||
|
Federal
National Mortgage Association, 5.00%, 7/1/18, $1,769,614
par
|
||||||||||
|
Federal
National Mortgage Association, 6.50%, 6/1/29, $200,877
par
|
||||||||||
|
Federal
National Mortgage Association, 7.50%, 5/1/30, $41,483
par
|
||||||||||
|
Federal
National Mortgage Association, 8.00%, 5/1/30, $11,859
par
|
||||||||||
|
Federal
National Mortgage Association, 6.00%, 5/1/31, $386,968
par
|
||||||||||
|
Federal
National Mortgage Association, 6.50%, 11/1/31, $192,709
par
|
||||||||||
|
Federal
National Mortgage Association, 5.50%, 7/1/33, $2,332,530
par
|
||||||||||
|
(2)
|
Morgan
Stanley:
|
|||||||||
|
Cascade
Village, 5.25%, 12/1/09, $1,581,039 par
|
||||||||||
|
Hampden
Medical Office, 7.38%, 10/1/12, $1,689,806 par
|
||||||||||
|
Hunt
Club Apartments, 5.68%, 7/1/11, $1,204,093 par
|
||||||||||
|
Integrity
Plaza Shopping Center, 7.88%, 7/1/12, $2,023,388 par
|
||||||||||
|
Metro
Center, 5.20%, 5/1/09, $2,519,557 par
|
||||||||||
|
Murphy
Industrial Building, 8.70%, 10/1/07, $1,450,000 par
|
||||||||||
|
Villa
Bonita, Chez Royalle, Fitzhugh Apartments I, 8.70%, 3/1/07, $844,444
par
|
||||||||||
|
(3)
|
Dresdner
Bank:
|
|||||||||
|
AMB
Property, Series L, 14,500 shares
|
||||||||||
|
AMB
Property, Series M, 5,600 shares
|
||||||||||
|
BRE
Properties, Series B, 20,500 shares
|
||||||||||
|
BRE
Properties, Series C, 400 shares
|
||||||||||
|
BRE
Properties, Series D, 400 shares
|
||||||||||
|
Duke
Realty Corp., Series J, 2,100 shares
|
||||||||||
|
Duke
Realty Corp., Series K, 6,200 shares
|
||||||||||
|
Duke
Realty Corp., Series L, 12,000 shares
|
||||||||||
|
Duke
Realty Corp., Series M, 2,000 shares
|
||||||||||
|
Equity
Office Properties Trust, Series G, 20,500 shares
|
||||||||||
|
Equity
Residential Properties, Series D, 1,600 shares
|
||||||||||
|
Equity
Residential Properties, Series N, 20,100 shares
|
||||||||||
|
First
Industrial Realty Trust, 23,450 shares
|
||||||||||
|
Health
Care Properties, Series E, 10,500 shares
|
||||||||||
|
Health
Care Properties, Series F, 15,150 shares
|
||||||||||
|
HRPT
Properties Trust, Series B, 14,000 shares
|
||||||||||
|
Kimco
Realty, Series F, 19,400 shares
|
||||||||||
|
New
Plan Excel Realty Trust, Series E, 4,000 shares
|
||||||||||
|
Prologis
Trust, Series F, 6,700 shares
|
||||||||||
|
Prologis
Trust, Series G, 13,200 shares
|
||||||||||
|
Public
Storage, Series A, 6,000 shares
|
||||||||||
|
Public
Storage, Series X, 3,000 shares
|
||||||||||
|
Public
Storage, Series Z, 11,500 shares
|
||||||||||
|
Realty
Income Corp., Series D, 20,500 shares
|
||||||||||
|
Regency
Centers Corp., Series D, 20,500 shares
|
||||||||||
|
Vornado
Realty Trust, Series E, 4,800 shares
|
||||||||||
|
Vornado
Realty Trust, Series F, 7,800 shares
|
||||||||||
|
Vornado
Realty Trust, Series G, 8,000 shares
|
||||||||||
|
Vornado
Realty Trust, Series I, 2,000 shares
|
||||||||||
|
The
fund has entered into a lending commitment with Morgan Stanley.
The
agreement permits the fund to enter into reverse repurchase agreements
up
to $10,000,000 using whole loans as collateral. The fund pays a
fee of
0.15% to Morgan Stanley on any unused portion of the $10,000,000
lending
commitment.
The
fund has entered into a lending commitment with Dresdner Bank.
The
agreement permits the fund to enter into reverse repurchase agreements
up
to $5,000,000 using preferred stock as collateral. The fund pays
a fee of
0.25% to Dresdner Bank on any unused portion of the $5,000,000
lending
commitment.
|
||||||||||
|
(c)
|
Interest
rates on commercial and multifamily loans are the net coupon rates
in
effect (after reducing the coupon rate by any mortgage servicing
fees paid
to mortgage servicers) on November 30, 2006. Interest rates and
maturity
dates disclosed on single family loans represent the weighted average
coupon and weighted average maturity for the underlying mortgage
loans as
of November 30, 2006.
|
|||||||||
|
(d)
|
Securities
purchased as part of a private placement which have not been registered
with the Securities and Exchange Commission under the Securities
Act of
1933 and are considered to be illiquid. These securities are fair
valued
in accordance with the board approved valuation procedures. See
note (a)
above.
|
|||||||||
|
(e)
|
Interest
only - Represents securities that entitle holders to receive only
interest
payments on the mortgage. Principal balance of the loan is due
at
maturity. The interest rate disclosed represents the net coupon
rate in
effect as of November 30, 2006.
|
|||||||||
|
(f)
|
Variable
Rate Security - The rate shown is the net coupon rate as of November
30,
2006.
|
|||||||||
|
(g)
|
Investment
in affiliated security. This money market fund is advised by FAF
Advisors,
Inc., which also serves as the advisor for the fund.
|
|||||||||
|
(h)
|
On
November 30, 2006, the cost of investments in securities was $66,987,890.
The aggregate gross unrealized appreciation and depreciation of
investments in securities, based on this cost, were as
follows:
|
|||||||||
|
Gross
unrealized appreciation
|
$
|
978,616
|
||||||||
|
Gross
unrealized depreciation
|
(1,381,171)
|
|||||||||
|
Net
unrealized depreciation
|
$
|
(402,555)
|
||||||||
|
(a)
|
The
registrant’s Principal Executive Officer and Principal Financial Officer
have evaluated the registrant’s disclosure controls and procedures within
90 days of the date of this filing and have concluded that the
registrant’s disclosure controls and procedures were effective, as of that
date, in ensuring that information required to be disclosed by
the
registrant in this Form N-Q 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 last fiscal quarter that have
materially affected, or are reasonably likely to materially affect,
the
registrant’s internal control over financial reporting.
|