N-CSRS 1 a2137248zn-csrs.txt N-CSRS ----------------------------- OMB APPROVAL ----------------------------- OMB Number: 3235-0570 Expires: November 30, 2005 Estimated average burden hours per response....... 5.0 ----------------------------- UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-03313 --------------------------------------------- First American Funds, Inc. ------------------------------------------------------------------------------- (Exact name of registrant as specified in charter) 800 Nicollet Mall Minneapolis, MN 55402 ------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) Joseph M. Ulrey III 800 Nicollet Mall Minneapolis, MN 55402 ------------------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: 800-677-3863 ---------------------------- Date of fiscal year end: September 30, 2004 -------------------------- Date of reporting period: March 31, 2004 ------------------------- 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. [FIRST AMERICAN FUNDS(TM) LOGO] 2004 SEMIANNUAL REPORT MONEY MARKET FUNDS [GRAPHIC] "NOTHING BUT HARMONY, HONESTY, INDUSTRY, AND FRUGALITY ARE NECESSARY TO MAKE US A GREAT AND HAPPY PEOPLE." GEORGE WASHINGTON JANUARY 29, 1789 [PHOTO OF GEORGE WASHINGTON] FIRST AMERICAN FUNDS OUR IMAGE-GEORGE WASHINGTON HIS RICH LEGACY AS PATRIOT AND LEADER IS WIDELY RECOGNIZED AS EMBODYING THE SOUND JUDGMENT, RELIABILITY, AND STRATEGIC VISION THAT ARE CENTRAL TO OUR BRAND. FASHIONED IN A STYLE REMINISCENT OF AN 18TH CENTURY ENGRAVING, THE ILLUSTRATION CONVEYS THE SYMBOLIC STRENGTH AND VITALITY OF WASHINGTON, WHICH ARE ATTRIBUTES THAT WE VALUE AT FIRST AMERICAN FUNDS. AN INVESTMENT IN MONEY MARKET FUNDS IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY. ALTHOUGH THESE FUNDS SEEK TO PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN THESE FUNDS. NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE FIRST AMERICAN FUNDS ONLINE TABLE OF CONTENTS Schedule of Investments 2 Statements of Assets and Liabilities 12 Statements of Operations 13 Statements of Changes in Net Assets 14 Financial Highlights 16 Notes to Financial Statements 24
@ firstamericanfunds.com Visit the First American Funds website for useful information on each of our funds, including fund prices, performance, fund management bios, dividends, and downloadable fact sheets. You'll also find college and retirement planning tools and general investor education. [GRAPHIC] ONLINE FEATURES AND FUNCTIONALITY INCLUDE: - The ability to deepen your understanding of the fund family by learning about the full range of investment choices available to you through First American Funds - The ability to educate yourself through market and investment strategy commentaries We stand behind our commitment to serve you with excellence. For more information, call First American Investor Services at 800.677.FUND or visit firstamericanfunds.com. 1 SCHEDULE OF INVESTMENTS March 31, 2004 (unaudited) GOVERNMENT OBLIGATIONS FUND
DESCRIPTION PAR (000) VALUE (000) ------------------------------------------------------------------------------------------ U.S. GOVERNMENT AGENCY OBLIGATIONS - 57.7% FAMC 1.030%, 04/01/04 (a) $ 117,600 $ 117,592 3.850%, 04/15/04 17,517 17,534 FFCB 1.000%, 04/01/04 (a) 125,000 124,985 0.975%, 04/07/04 (a) 50,000 50,000 2.375%, 10/01/04 9,400 9,448 FHLB 0.970%, 04/11/04 (a) 80,000 79,991 1.250%, 04/15/04 15,000 15,000 3.750%, 04/15/04 17,530 17,546 4.875%, 04/16/04 29,845 29,889 0.995%, 04/25/04 (a) 100,000 99,983 0.980%, 04/27/04 (a) 100,000 99,985 3.375%, 06/15/04 15,000 15,066 1.035%, 07/23/04 25,000 24,990 4.625%, 08/13/04 3,310 3,352 6.250%, 08/13/04 5,730 5,836 1.250%, 09/22/04 9,675 9,675 1.250%, 10/14/04 5,000 5,000 3.625%, 10/15/04 10,000 10,126 1.510%, 12/08/04 10,000 10,000 4.000%, 02/15/05 4,085 4,180 7.125%, 02/15/05 4,000 4,201 1.200%, 04/01/05 20,000 19,991 4.625%, 04/15/05 10,000 10,344 FHLMC 6.950%, 04/01/04 10,000 10,000 3.750%, 04/15/04 40,510 40,549 1.020%, 05/20/04 25,000 24,965 1.000%, 06/02/04 15,000 14,974 1.133%, 07/15/04 20,000 19,935 3.000%, 07/15/04 28,160 28,319 1.328%, 08/12/04 20,000 19,903 1.245%, 09/09/04 40,000 39,772 1.220%, 10/07/04 16,067 15,951 1.360%, 11/04/04 20,000 19,838 3.250%, 11/15/04 19,260 19,476 1.340%, 12/30/04 27,573 27,297 1.174%, 03/08/05 30,000 29,670 FNMA 1.000%, 04/01/04 (a) 78,000 77,988 1.003%, 04/01/04 (a) 125,000 124,985 1.005%, 04/01/04 (a) 65,000 65,000 1.015%, 04/01/04 (a) 100,000 99,993 0.975%, 04/15/04 (a) 100,000 99,953 1.190%, 04/21/04 (a) 25,000 25,000 1.120%, 04/30/04 30,000 29,973 1.034%, 04/30/04 (a) 125,000 124,987 1.420%, 10/15/04 50,000 49,627 1.620%, 12/08/04 17,000 17,000 1.330%, 12/10/04 35,000 34,676 1.200%, 02/04/05 20,000 19,794 7.125%, 02/15/05 37,460 39,349 1.210%, 03/04/05 10,000 9,888 FNMA Pool 1.300%, 09/01/04, Pool #760080 25,000 24,863 ------------- TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost $1,938,439) 1,938,439 ------------- REPURCHASE AGREEMENTS - 42.2% Bank of America 1.000%, dated 3/31/04, matures 4/1/04, repurchase price $100,002,778 (collateralized by U.S. Treasury Obligations: Total Market Value $102,004,882) $ 100,000 $ 100,000 CS First Boston 1.060%, dated 3/31/04, matures 4/1/04, repurchase price $250,007,361 (collateralized by U.S. Treasury Obligations: Total Market Value $255,004,286) 250,000 250,000 Goldman Sachs 1.055%, dated 3/31/04, matures 4/1/04, repurchase price $450,013,188 (collateralized by U.S. Treasury Obligations: Total Market Value $459,000,340) 450,000 450,000 Lehman Brothers 1.040%, dated 3/31/04, matures 4/1/04, repurchase price $50,001,444 (collateralized by U.S. Treasury Obligations: Total Market Value $51,000,531) 50,000 50,000 UBS Warburg 1.010%, dated 3/31/04, matures 4/1/04, repurchase price $69,165,940 (collateralized by U.S. Treasury Obligations: Total Market Value $70,551,137) 69,164 69,164 UBS Warburg 1.060%, dated 3/31/04, matures 4/1/04, repurchase price $500,014,722 (collateralized by U.S. Treasury Obligations: Total Market Value $510,002,835) 500,000 500,000 ------------- TOTAL REPURCHASE AGREEMENTS (Cost $1,419,164) 1,419,164 ------------- TOTAL INVESTMENTS - 99.9% (Cost $3,357,603) 3,357,603 ------------- OTHER ASSETS AND LIABILITIES, NET - 0.1% 2,017 ------------- TOTAL NET ASSETS - 100.0% $ 3,359,620 -------------
(a) Variable Rate Security - The rate shown is the rate in effect as of March 31, 2004. The date shown is the next reset date. FAMC - Federal Agriculture Mortgage Corporation FFCB - Federal Farm Credit Bank FHLB - Federal Home Loan Bank FHLMC - Federal Home Loan Mortgage Corporation FNMA - Federal National Mortgage Association The accompanying notes are an integral part of the financial statements. 2 PRIME OBLIGATIONS FUND
DESCRIPTION PAR (000) VALUE (000) ------------------------------------------------------------------------------------------ COMMERCIAL PAPER - 34.7% BASIC INDUSTRY - 0.2% Cargill 1.052%, 05/05/04 (a) $ 40,000 $ 39,960 ------------- BROKERAGE - 4.0% Citicorp Global Markets 1.020%, 04/07/04 90,000 89,985 1.030%, 04/20/04 140,000 139,924 CS First Boston USA 1.040%, 04/02/04 50,000 49,999 1.025%, 04/26/04 50,000 49,964 Goldman Sachs Group 1.133%, 04/01/04 (b) 200,000 200,000 Morgan Stanley Dean Witter 1.143%, 04/01/04 (b) 100,000 100,000 ------------- TOTAL BROKERAGE 629,872 ------------- COMMERCIAL FUNDING CORPORATIONS - 19.6% CAFCO 1.040%, 04/13/04 (a) 50,000 49,983 1.020%, 04/21/04 (a) 45,000 44,975 1.030%, 04/28/04 (a) 50,000 49,961 1.030%, 04/29/04 (a) 50,000 49,960 1.030%, 05/13/04 (a) 50,000 49,940 Edison Asset Securitization Corp 1.030%, 04/05/04 (a) 198,560 198,537 Falcon Asset Security Corp 1.030%, 04/01/04 (a) 55,000 55,000 1.025%, 04/05/04 (a) 90,000 89,990 1.030%, 04/12/04 (a) 58,360 58,342 1.030%, 04/15/04 (a) 42,071 42,054 1.030%, 04/20/04 (a) 35,890 35,871 1.030%, 04/22/04 (a) 70,000 69,958 Fleet Funding 1.030%, 05/03/04 (a) 42,238 42,199 Jupiter Securitization 1.030%, 04/06/04 (a) 45,184 45,178 1.020%, 04/13/04 (a) 50,000 49,983 1.020%, 04/15/04 (a) 24,530 24,520 1.025%, 04/26/04 (a) 100,000 99,929 1.030%, 04/28/04 (a) 77,800 77,740 1.030%, 04/29/04 (a) 40,000 39,968 Moat Funding (Guarantor: 26% JPM Chase) 1.060%, 04/14/04 (a) 50,000 49,981 1.040%, 04/21/04 (a) 50,000 49,971 1.030%, 04/28/04 (a) 100,000 99,923 1.040%, 06/16/04 (a) 100,000 99,780 1.040%, 06/23/04 (a) 30,000 29,928 Motown Notes 1.050%, 04/12/04 (a) 100,000 99,968 1.050%, 04/13/04 (a) 75,000 74,974 1.050%, 04/26/04 (a) 65,000 64,953 1.060%, 05/13/04 (a) 150,000 149,815 1.050%, 06/16/04 (a) 50,000 49,889 Receivables Capital Corp 1.030%, 04/01/04 (a) 50,000 50,000 1.020%, 04/14/04 (a) 63,598 63,575 1.025%, 04/23/04 (a) 117,747 117,673 1.030%, 05/03/04 (a) 51,857 51,810 1.030%, 05/07/04 (a) 100,000 99,897 Sheffield Receivables Corp 1.030%, 04/01/04 (a) 160,000 160,000 1.020%, 04/13/04 (a) 67,210 67,187 1.030%, 04/15/04 (a) 50,000 49,980 1.030%, 04/26/04 (a) 75,000 74,946 Yorktown Capital Corp 1.020%, 04/12/04 (a) $ 100,000 $ 99,969 1.025%, 04/20/04 (a) 250,161 250,025 1.030%, 04/21/04 (a) 57,031 56,998 ------------- TOTAL COMMERCIAL FUNDING CORPORATIONS 3,085,330 ------------- DIVERSIFIED FINANCIALS - 0.5% General Electric Capital Corp 1.030%, 04/19/04 75,000 74,961 ------------- DOMESTIC BANKS - 4.7% American Express Centurian 1.020%, 04/05/04 (a) 150,000 150,000 1.020%, 04/22/04 (a) 50,000 50,000 1.020%, 04/22/04 (a) 100,000 100,000 1.020%, 04/28/04 (a) 50,000 50,000 Kitty Hawk Funding (Guarantor: Bank of America) 1.025%, 04/21/04 (a) 114,380 114,315 Variable Funding Capital (Guarantor: Wachovia) 1.020%, 04/07/04 (a) 25,000 24,996 1.020%, 04/08/04 (a) 75,000 74,985 1.020%, 04/15/04 (a) 100,168 100,128 1.030%, 04/20/04 (a) 50,000 49,973 1.030%, 05/04/04 (a) 25,000 24,976 ------------- TOTAL DOMESTIC BANKS 739,373 ------------- FOREIGN BANK - 0.6% Greenwich Capital Funding 1.020%, 04/16/04 (a) 100,000 99,958 ------------- FOREIGN FUNDING CORPORATION - 0.4% Sigma Finance 1.050%, 04/01/04 (a) (b) 65,000 64,991 ------------- RETAIL FUNDING CORPORATION - 4.7% Emerald Certificates (MBNA Master Certificates) (Secured Liquidity Note) 1.050%, 04/06/04 (a) 45,000 44,993 1.060%, 05/06/04 (a) 50,000 49,948 1.060%, 05/11/04 (a) 50,000 49,941 1.063%, 05/18/04 (a) 25,000 24,965 1.040%, 05/26/04 (a) 50,000 49,921 1.050%, 05/27/04 (a) 110,000 109,820 1.050%, 05/27/04 (a) 50,000 49,918 Park Granada LLC 1.080%, 04/08/04 (a) 55,000 54,988 1.060%, 05/03/04 (a) 71,000 70,933 1.060%, 06/04/04 (a) 40,000 39,925 1.040%, 06/14/04 (a) 95,000 94,797 1.050%, 06/18/04 (a) 100,000 99,772 ------------- TOTAL RETAIL FUNDING CORPORATION 739,921 ------------- TOTAL COMMERCIAL PAPER (Cost $5,474,366) 5,474,366 ------------- CORPORATE OBLIGATIONS - 34.8% BASIC INDUSTRY - 2.6% 3M 5.639%, 12/13/04 (a) 200,000 205,961 Merck & Co. Inc. 4.484%, 02/22/05 (a) 95,000 97,703 Wal-Mart Stores 5.199%, 06/01/04 100,000 100,678 ------------- TOTAL BASIC INDUSTRY 404,342 ------------- BROKERAGE - 6.8% Bear Stearns 1.253%, 4/1/04 400,000 400,000
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DESCRIPTION PAR (000) VALUE (000) ------------------------------------------------------------------------------------------ Goldman Sachs Group 1.170%, 04/15/04 (a) (b) $ 177,000 $ 177,008 1.370%, 04/15/04 (a) (b) 88,000 88,000 Merrill Lynch 1.360%, 04/01/04 (b) 54,000 54,032 Morgan Stanley Dean Witter 1.210%, 04/15/04 (a) (b) 250,000 250,000 1.100%, 04/29/04 (a) (b) 95,000 95,000 ------------- TOTAL BROKERAGE 1,064,040 ------------- DIVERSIFIED FINANCIALS - 4.5% American Express Credit 1.110%, 04/20/04 (a) (b) 90,000 89,995 Associates Corp 1.210%, 06/25/04 (b) 120,000 120,000 General Electric Capital Corp 1.180%, 04/09/04 (b) 300,000 300,096 1.170%, 04/17/04 (b) 200,000 200,000 ------------- TOTAL DIVERSIFIED FINANCIALS 710,091 ------------- FOREIGN FUNDING CORPORATIONS - 13.2% Beta Finance 1.040%, 04/01/04 (a) (b) 100,000 99,988 1.450%, 08/18/04 (a) 107,000 107,000 1.270%, 10/15/04 (a) 50,000 49,999 1.400%, 01/07/05 (a) 50,000 50,000 Centauri (CC USA LLC) 1.055%, 04/01/04 (a) (b) 30,000 29,999 1.078%, 04/01/04 (a) (b) 50,000 50,000 1.180%, 04/01/04 (a) (b) 50,000 50,038 1.150%, 07/26/04 (a) 50,000 50,000 1.450%, 10/25/04 (a) 100,000 100,000 1.500%, 11/17/04 (a) 50,000 50,028 1.390%, 11/26/04 (a) 50,000 49,990 Dorada Finance 1.060%, 04/01/04 (a) (b) 177,000 176,979 1.065%, 04/01/04 (a) (b) 75,000 75,000 1.450%, 11/10/04 (a) 50,000 50,000 1.450%, 11/22/04 (a) 85,000 85,000 K2 USA LLC 1.070%, 04/01/04 (a) (b) 50,000 49,996 1.070%, 04/01/04 (a) (b) 75,000 74,993 1.213%, 04/01/04 (a) (b) 100,000 100,020 1.440%, 09/02/04 (a) 50,000 50,000 1.235%, 09/22/04 (a) 75,000 74,995 1.270%, 10/15/04 (a) 50,000 50,000 1.450%, 10/25/04 (a) 100,000 100,013 1.445%, 11/08/04 (a) 60,000 59,998 Sigma Finance 1.055%, 04/01/04 (a) (b) 100,000 99,977 1.055%, 04/01/04 (a) (b) 100,000 99,977 1.060%, 04/01/04 (a) (b) 50,000 49,999 1.065%, 04/01/04 (a) (b) 50,000 49,999 1.078%, 04/01/04 (a) (b) 100,000 99,990 1.130%, 04/01/04 (a) (b) 50,000 50,006 ------------- TOTAL FOREIGN FUNDING CORPORATIONS 2,083,984 ------------- INSURANCE - 7.7% AI Life Funding Agreement 1.242%, 04/01/04 (b) 75,000 75,000 1.242%, 04/01/04 (b) 100,000 100,000 AIG Life Funding Agreement 1.262%, 04/01/04 (b) $ 100,000 $ 100,000 1.262%, 04/01/04 (b) 100,000 100,000 Allstate Life Insurance Funding Agreement 1.282%, 04/01/04 (b) 100,000 100,000 1.320%, 04/15/04 (b) 100,000 100,000 Anchor National Life Funding Agreement 1.250%, 04/01/04 (b) 75,000 75,000 Metlife Global Funding 1.100%, 04/28/04 (a) (b) 95,000 95,000 Sun Life Insurance Funding Agreement 1.240%, 04/01/04 (b) 75,000 75,000 Transamerica Occidental Funding Agreement 1.246%, 04/01/04 (b) 400,000 400,000 ------------- TOTAL INSURANCE 1,220,000 ------------- TOTAL CORPORATE OBLIGATIONS (Cost $5,482,457) 5,482,457 ------------- CERTIFICATES OF DEPOSIT - 3.8% CS First Boston USA 1.030%, 04/09/04 100,000 100,000 1.050%, 05/04/04 175,000 175,000 1.035%, 05/18/04 75,000 75,000 Wells Fargo Bank 1.020%, 04/12/04 100,000 100,000 1.020%, 04/14/04 150,000 150,000 ------------- TOTAL CERTIFICATES OF DEPOSIT (Cost $600,000) 600,000 ------------- YANKEE CERTIFICATES OF DEPOSIT - 13.0% Bayerische Landesbank NY 5.000%, 07/20/04 15,000 15,178 BNP Paribas NY 1.050%, 06/16/04 195,000 194,983 Canadian Imperial Bank NY 1.020%, 04/08/04 150,000 150,000 Credit Agricole NY 1.040%, 04/01/04 (b) 70,000 70,000 1.070%, 04/07/04 (b) 70,000 70,000 1.230%, 08/04/04 (b) 50,000 49,998 Danske Bank NY 1.250%, 09/10/04 100,000 99,996 Fortis Banque 1.020%, 04/26/04 100,000 100,000 1.020%, 04/26/04 200,000 200,000 Landesbank Hessen Thueringen 1.320%, 02/10/05 100,000 99,987 Nordeutche Bank NY 1.100%, 07/06/04 100,000 100,000 1.110%, 07/12/04 50,000 49,999 1.230%, 02/09/05 45,000 45,000 Rabobank Nederland NY 1.240%, 08/04/04 48,000 47,998 Royal Bank of Scotland NY 1.295%, 04/16/04 50,000 50,000 1.305%, 04/16/04 50,000 50,000 1.395%, 02/02/05 100,000 99,987 1.326%, 03/31/05 50,000 49,965 Svenska Handlesbanken NY 1.025%, 04/01/04 115,150 115,150
The accompanying notes are an integral part of the financial statements. 4
DESCRIPTION PAR (000) VALUE (000) ------------------------------------------------------------------------------------------ West Deutsche Landesbank NY 1.320%, 04/15/04 $ 100,000 $ 100,000 1.200%, 08/02/04 50,000 50,000 1.390%, 08/26/04 75,000 74,997 1.250%, 09/20/04 75,000 75,000 1.315%, 10/18/04 55,000 54,997 1.550%, 12/10/04 35,000 35,000 ------------- TOTAL YANKEE CERTIFICATES OF DEPOSIT (Cost $2,048,235) 2,048,235 ------------- EURO TIME DEPOSITS - 6.6% M & I Time Deposit 1.031%, 04/01/04 500,000 500,000 National City Time Deposit 1.040%, 04/01/04 533,443 533,443 ------------- TOTAL EURO TIME DEPOSITS (Cost $1,033,443) 1,033,443 ------------- REPURCHASE AGREEMENTS - 2.2% UBS Warburg 1.031%, dated 3/31/04, matures 4/1/04, repurchase price $345,638,697 (collateralized by U.S. Treasury Obligations: Total Market value $352,546,169) 345,629 345,629 ------------- TOTAL REPURCHASE AGREEMENTS (Cost $345,629) 345,629 ------------- U.S. GOVERNMENT AGENCY OBLIGATIONS - 4.8% FHLB 3.375%, 06/15/04 40,000 40,176 1.200%, 04/01/05 50,000 49,975 FHLMC 1.030%, 04/02/04 23,850 23,849 3.750%, 04/15/04 55,400 55,457 1.020%, 05/20/04 35,785 35,735 6.250%, 07/15/04 49,282 49,990 1.400%, 08/11/04 30,000 30,000 1.328%, 08/12/04 50,000 49,758 0.000%, 12/02/04 60,000 59,396 FNMA 1.060%, 04/01/04 (b) 180,000 180,000 1.120%, 04/30/04 65,000 64,941 3.500%, 09/15/04 19,500 19,681 1.420%, 11/01/04 23,474 23,278 1.270%, 04/25/05 75,000 75,000 ------------- TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost $757,236) 757,236 ------------- TOTAL INVESTMENTS - 99.9% (Cost $15,741,366) 15,741,366 ------------- OTHER ASSETS AND LIABILITIES, NET - 0.1% 20,240 ------------- TOTAL NET ASSETS - 100.0% $ 15,761,606 -------------
(a) Security sold 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." These securities have been determined to be liquid under the guidelines established by the Funds' board of directors. As of March 31, 2004, the value of these investments was $7,952,184,290 or 50.5% of total net assets. (b) Variable Rate Security - The rate shown is the rate in effect as of March 31, 2004. The date shown is the next reset date. FHLB - Federal Home Loan Bank FHLMC - Federal Home Loan Mortgage Corporation FNMA - Federal National Mortgage Association TAX FREE OBLIGATIONS FUND
DESCRIPTION PAR (000) VALUE (000) ------------------------------------------------------------------------------------------ MUNICIPAL BONDS - 100.4% ARIZONA - 1.5% Arizona Health Facilities, Royal Oaks Project (LOC: Lasalle Bank) 1.017%, 04/07/04 (a) $ 5,825 $ 5,825 Arizona Health Facilities, The Terraces Project, Series B2 (LOC: Sovereign Bank) (LOC: Lloyds TSB Bank) 1.017%, 04/07/04 (a) 5,000 5,000 Phoenix Civic Improvement (CP) 0.970%, 07/29/04 10,000 10,000 ------------- 20,825 ------------- CALIFORNIA - 0.3% Los Angeles School District, Belmont Learning Complex A (LOC: Bank of New York) 0.947%, 04/07/04 (a) 75 75 Santa Barbara Tax and Revenue Anticipation Notes - Series A 2.000%, 07/23/04 4,000 4,015 ------------- 4,090 ------------- COLORADO - 3.2% Boulder Valley School District (GO) 1.500%, 06/30/04 10,000 10,013 2.000%, 06/30/04 10,000 10,025 Colorado General Fund Tax and Anticipation Notes Revenue 2.000%, 06/25/04 15,000 15,039 Moffat County Pollution Control (INS: AMBAC) 1.227%, 04/07/04 (a) 10,465 10,465 ------------- 45,542 ------------- DELAWARE - 0.4% Kent County Delaware University Student Housing, Series B (LOC: Wachovia Bank) 1.007%, 04/07/04 (a) 5,000 5,000 ------------- DISTRICT OF COLUMBIA - 1.6% District of Columbia Revenue (LOC: First Union) 1.007%, 04/07/04 (a) 9,400 9,400 District of Columbia, The Washington Home (LOC: First Union National Bank) 1.017%, 04/07/04 (a) 13,605 13,605 ------------- 23,005 ------------- FLORIDA - 3.5% Florida Housing Agency (LOC: Kreidetbank) 1.097%, 04/07/04 (a) (b) 6,035 6,035 Highlands County Florida Health Facilities, Adventist Health Systems, Series A (LOC: Suntrust Bank) 1.017%, 04/07/04 (a) 12,100 12,100 Highlands County Florida Health Facilities, Adventist Health Systems, Series B (LOC: Suntrust Bank) 1.027%, 04/07/04 (a) 11,000 11,000 Jacksonville Florida Educational Facilities, Jacksonville University Project (LOC: Wachovia Bank) 1.007%, 04/07/04 (a) 6,175 6,175 Miami-Dade County Development Authority, Gulliver School Project (LOC: Bank of America) 1.097%, 04/07/04 (a) 3,650 3,650
5
DESCRIPTION PAR (000) VALUE (000) ------------------------------------------------------------------------------------------ Orange County Florida Health Facilities, Adventist Health Systems, Sunbelt (LOC: Suntrust Bank) 1.017%, 04/07/04 (a) $ 2,800 $ 2,800 Palm Beach County Revenue, Benjamin Private School Project (LOC: Bank of America) 1.047%, 04/07/04 (a) 2,000 2,000 University of Florida Research Funding Revenue (LOC: Wachovia Bank) 1.057%, 04/07/04 (a) 5,000 5,000 University of South Florida Funding (LOC: First Union) 0.967%, 04/07/04 (a) 930 930 ------------- 49,690 ------------- GEORGIA - 0.4% Clayton County Georgia Development Authority, Delta Airlines Project, Series A (LOC: General Electric Capital) 1.057%, 04/07/04 (a) 2,450 2,450 Fulton County Development Authority, Pace Academy Project (LOC: Bank of America) 1.047%, 04/07/04 (a) 1,925 1,925 Gordon County Georgia Hospital Authority, Adventist Health Systems, Series A (LOC: Suntrust Bank) 1.017%, 04/07/04 (a) 1,205 1,205 ------------- 5,580 ------------- IDAHO - 0.6% Boise Idaho Urban Renewal Agency, Capital City (LOC: Bank America) 1.067%, 04/07/04 (a) 5,110 5,110 University of Idaho Foundation Authority (LOC: First Security Bank) 1.067%, 04/07/04 (a) (b) 3,900 3,900 ------------- 9,010 ------------- ILLINOIS - 16.6% ABN AMRO Munitops Certificates Trust, Chicago IL (INS:FGIC) 1.117%, 04/07/04 (a) (b) 20,000 20,000 ABN AMRO Munitops Certificates Trust, llinois State (GO) (INS: MBIA) 1.117%, 04/07/04 (a) (b) 4,575 4,575 Chicago Illinois (LOC: Landesbank Hessen - THRGN) 1.047%, 12/09/04 (a) 15,000 15,000 Chicago Illinois Park District (LOC: Landesbank Hessen - THRGN) 1.750%, 05/01/04 19,000 19,013 Illinois Development Finance Authority (LOC: Northern Trust) 1.097%, 04/07/04 (a) 3,500 3,500 Illinois Development Finance Authority, Aurora (LOC: Allied Irish Bank, PLC) 1.346%, 04/07/04 (a) 6,740 6,740 Illinois Development Finance Authority, Chinese American Service Project (LOC: LaSalle Bank) 1.047%, 04/07/04 (a) 5,000 5,000 Illinois Development Finance Authority, Lake Forest (LOC: Northern Trust) 1.097%, 04/07/04 (a) 6,255 6,255 Illinois Development Finance Authority, Loyola Academy (LOC: Bank One) 1.097%, 04/07/04 (a) 4,000 4,000 Illinois Development Finance Authority, McCormick Theological (LOC: Northern Trust) 1.097%, 04/07/04 (a) $ 7,935 $ 7,935 Illinois Development Finance Authority, Roosevelt University (LOC: American National Bank) 1.097%, 04/07/04 (a) 7,700 7,700 Illinois Development Finance Authority, Solomon Schechter Day School (LOC: LaSalle Bank) 1.047%, 04/07/04 (a) 5,000 5,000 Illinois Development Finance Authority, St. Ignatius (LOC: Northern Trust) 1.097%, 04/07/04 (a) 9,800 9,800 Illinois Development Finance Authority, St. Paul's Housing (LOC: Lasalle Bank) 1.097%, 04/07/04 (a) 4,290 4,290 Illinois Development Finance Authority, United Way/Crusade Mercy (LOC: LaSalle Bank) 1.047%, 04/07/04 (a) 4,935 4,935 Illinois Development Finance Authority, Mount Carmel High School Project (LOC: Bank One) 1.097%, 04/07/04 (a) 2,800 2,800 Illinois Educational Facilities Authority, Chicago Zoological Society (LOC: Northern Trust) 1.097%, 04/07/04 (a) 5,000 5,000 Illinois Health Facilities Authorities, Edgewater Hospital 1.077%, 04/07/04 (a) (b) 10,600 10,600 Illinois Health Facilities Authority Lifelink (LOC: American National Bank) 1.047%, 04/07/04 (a) 7,225 7,225 Illinois Health Facilities, Central Baptist Home, Series B (LOC: Allied Irish Bank, PLC) 1.047%, 04/07/04 (a) 3,260 3,260 Illinois Health Facilities, Lutheran Home and Services (LOC: Fifth Third Bank) 1.067%, 04/07/04 (a) 14,350 14,350 Illinois Health Facilities, Lutheran Home and Services Project (LOC: Allied Irish Bank, PLC) 1.047%, 04/07/04 (a) 2,200 2,200 Illinois Health Facilities, Series C (LOC: Lasalle Bank) 1.017%, 04/07/04 (a) 13,000 13,000 Illinois State Toll Highway Authority (INS: FSA) (SPA: LandesBank - Hessen-THRGN) 1.067%, 04/07/04 (a) 18,500 18,500 1.067%, 04/07/04 (a) 13,100 13,100 Macon County - Milikin University (INS: AMBAC) (SPA: Bank One) 1.047%, 04/07/04 (a) 4,400 4,400 Northern Cook County Illinois Solid Waste Agency (LOC: Northern Trust) 1.047%, 04/07/04 (a) 5,900 5,900 State of Illinois (GO) 5.000%, 04/01/04 5,000 5,000 State of Illinois, Series A (GO) 5.000%, 03/01/05 5,182 5,182 State of Illinois, Series B (GO) 5.000%, 03/01/05 2,135 2,135 ------------- 236,395 -------------
The accompanying notes are an integral part of the financial statements. 6
DESCRIPTION PAR (000) VALUE (000) ------------------------------------------------------------------------------------------ INDIANA - 4.3% Evansville Economic Development Authority (LOC: Citibank) 1.017%, 04/07/04 (a) (b) $ 2,500 $ 2,500 Fort Wayne Industries Economic Development, Lutheran Homes Project (LOC: Fifth Third Bank) 1.117%, 04/07/04 (a) 5,500 5,500 Indiana Development Financing Authority, Educational Facilities Heritage School Project (LOC: Lasalle Bank) 1.047%, 04/07/04 (a) 8,650 8,650 Indiana Health Facilities Financing Authority, Baptist Homes (LOC: Lasalle Bank) 1.027%, 04/07/04 (a) 9,800 9,800 Indiana Health Facilities Financing Authority, Henry County Memorial Hospital (LOC: Fifth Third Bank) 1.097%, 04/07/04 (a) 19,685 19,685 Indiana Health Facilities Financing Authority, Major Hospital Project (LOC: Bank One) 1.097%, 04/07/04 (a) 10,000 10,000 Indiana, Series A 2.000%, 01/25/05 5,000 5,036 ------------- 61,171 ------------- IOWA - 0.3% Iowa Financial Retirement Authority, Wesley Retirement Services (LOC: Wells Fargo Bank) 1.017%, 04/07/04 (a) 4,000 4,000 ------------- KANSAS - 0.7% Prairie Village Revenue, Claridge Court (LOC: LaSalle Bank) 1.017%, 04/07/04 (a) 9,410 9,410 ------------- KENTUCKY - 0.2% Lexington-Fayette Urban Residential Facilities, Richmond Project (LOC: Bank of America) 1.070%, 04/01/05 (a) 2,630 2,630 ------------- LOUISIANA - 3.1% State of Louisiana (CP) INS: AMBAC SPA: CSFB 0.987%, 04/05/04 10,000 10,000 0.960%, 04/06/04 9,470 9,470 0.950%, 07/07/04 10,000 10,000 0.950%, 07/08/04 5,000 5,000 0.960%, 07/13/04 10,000 10,000 ------------- 44,470 ------------- MASSACHUSETTS - 3.8% State of Massachusetts Series B (SPA: Landesbank - Hessen - THRGN) (GO) 1.057%, 04/07/04 (a) 27,495 27,495 State of Massachusetts Series C (GO) (SPA: State Street B&T) 1.057%, 04/07/04 (a) 25,725 25,725 ------------- 53,220 ------------- MICHIGAN - 7.3% Hannahville Indian Community Finance, Series A (LOC: National City) 1.107%, 04/07/04 (a) (b) 1,450 1,450 Michigan State Housing Development Authority (INS: MBIA) (SPA: Merrill Lynch Cap Services) 1.067%, 04/07/04 (a) (b) $ 5,325 $ 5,325 Oakland County Michigan Economic Development, Catholic Central High School (LOC: Fifth Third Bank) 1.097%, 04/07/04 (a) 13,145 13,145 State of Michigan (CP) 1.050%, 05/04/04 20,000 20,000 1.100%, 05/11/04 30,080 30,080 State of Michigan Strategic Fund, Lutheran Social Services (LOC: National City Bank) 1.077%, 04/07/04 (a) 19,195 19,195 Wayne Charter County (LOC: Allied Irish, PLC) 1.057%, 04/07/04 (a) 13,825 13,825 ------------- 103,020 ------------- MINNESOTA - 4.6% Eden Prairie, Multifamily Housing Authority (Liquidity: Freddie Mac) 1.097%, 04/07/04 (a) 13,700 13,700 Mendota Heights Revenue, St. Thomas Academy Project (LOC: Allied Irish, PLC) 1.017%, 04/07/04 (a) 1,960 1,960 Minneapolis School District Credit Support: SD Credit Program (GO) 2.000%, 08/06/04 10,000 10,036 Minnesota State Higher Educational FaciIities Bethel College, Credit Support: GO of Institution (LOC: Allied Irish Bank, PLC) 1.346%, 04/07/04 (a) 3,585 3,585 University of Minnesota (GO of University) Series A 1.057%, 04/07/04 (a) 36,725 36,725 ------------- 66,006 ------------- MISSOURI - 1.1% Jackson County Missouri Industrial Development Authority, YMCA Greater Kansas City (LOC: Bank of America) 1.097%, 04/07/04 (a) 6,700 6,700 Missouri State Health & Educational Facilties (LOC: Bank One) (INS: AMBAC) 1.017%, 04/07/04 (a) 9,550 9,550 ------------- 16,250 ------------- MONTANA - 1.0% Montana State Health Facilities Authority 1.177%, 04/07/04 (a) (b) (INS: AMBAC) 14,625 14,625 ------------- NEVADA - 1.2% ABN AMRO Munitops Certificates Trust, Nevada State (GO) (INS: MBIA) 1.117%, 04/07/04 (a) (b) (SPA: ABN AMRO) 8,500 8,500 Clark County School District (GO) (INS: FGIC) 3.000%, 06/01/04 8,720 8,750 ------------- 17,250 ------------- NEW JERSEY - 0.7% State of New Jersey 2.000%, 06/25/04 10,000 10,022 ------------- NEW MEXICO - 0.7% Bernalillo County New Mexico, Series A 2.000%, 12/14/04 10,000 10,060 -------------
7
DESCRIPTION PAR (000) VALUE (000) ------------------------------------------------------------------------------------------ NEW YORK - 1.7% Jay Street Development, Jay Street Project, Series A-2 (LOC: Landesbank Hessen-THRGN) 0.967%, 04/01/04 (a) $ 11,500 $ 11,500 State of New York (GO) (SPA: Lehman Liquidity) (Credit: CIEG-TCRS) 1.077%, 04/07/04 (a) (b) 9,975 9,975 Yonkers (GO) (LOC: Bank of New York) 2.000%, 05/14/04 3,000 3,004 ------------- 24,479 ------------- NORTH CAROLINA - 1.1% North Carolina State Correctional Facilities Project, Series A 2.000%, 02/01/05 2,000 2,015 North Carolina Wolfpack Club Project (LOC: Bank of America) 1.047%, 04/07/04 (a) 10,000 10,000 Wake County North Carolina, Series B 4.500%, 02/01/05 3,150 3,240 ------------- 15,255 ------------- OHIO - 5.6% ABN AMRO Munitops Certificates Trust, Westerville Ohio County School (INS: MBIA) (SPA: ABN AMRO Bank) 1.097%, 04/07/04 (a) (b) 4,000 4,000 Cuyahoga County Ohio Hospital Revenue, University Hospital (INS: AMBAC) (SPA: Chase Manhattan) 1.017%, 04/07/04 (a) 3,000 3,000 Franklin County Health Care Facilities Revenue, Mother Angeline McCrory Project (LOC: Allied Irish Bank, PLC) 1.087%, 04/07/04 (a) 16,690 16,690 Franklin County Ohio Health Care Facilities (LOC: National City Bank) 1.047%, 04/07/04 (a) 3,800 3,800 Logan County Ohio Healthcare Facilities (LOC: Fifth Third Bank) 1.117%, 04/07/04 (a) 10,800 10,800 Lucas County Ohio Facilities Improvement, Toledo Society (LOC: Fifth Third Bank) 1.017%, 04/07/04 (a) 12,200 12,200 Miami County Hospital (LOC: National Australia Bank, NY) (SPA: Merrill Lynch Cap SVCS) 1.117%, 04/07/04 (a) (b) 4,740 4,740 Middleburg Heights Hospital Improvement Revenue (LOC: Fifth Third Bank) 1.057%, 04/07/04 (a) 2,400 2,400 Ohio State Air Quality Development Authority, Ohio Power (INS: AMBAC) (Liquidity: Merrill Lynch SVCS) 1.067%, 04/07/04 (a) (b) 4,700 4,700 Ohio State Higher Education Facilities, Lake Erie (LOC: Fifth Third Bank) 1.057%, 04/07/04 (a) 12,665 12,665 Summit County Ohio Port Authority, Summa Health Systems Hospital (LOC: Fifth Third Bank) 1.057%, 04/07/04 (a) 5,000 5,000 ------------- 79,995 ------------- OKLAHOMA - 0.8% Oklahoma Authority Revenue, American Cancer Society Project (LOC: Bank of America) 1.097%, 04/07/04 (a) $ 2,905 $ 2,905 Tulsa Industrial Authority Revenue Floating 1.067%, 04/07/04 (a) (b) 7,970 7,970 ------------- 10,875 ------------- PENNSYLVANIA - 1.2% Lehigh County Pennsylvania General Purpose Authority, St. Lukes Hospital Project (LOC: Wachovia Bank) 1.017%, 04/01/04 (a) 100 100 Philadelphia, PA Tax and Revenue Anticipation Notes 2.000%, 06/30/04 17,000 17,040 ------------- 17,140 ------------- RHODE ISLAND - 0.5% Rhode Island Health & Education Revenue, Jewish Services Agency (LOC: Sovereign Bank) (LOC: Bank of New York) 1.017%, 04/07/04 (a) 6,750 6,750 ------------- SOUTH CAROLINA - 3.0% ABN AMRO Munitops Certificates Trust (GO) (INS: FSA SCSDE) (SPA: ABN AMRO Bank) 1.117%, 04/07/04 (a) (b) 14,000 14,000 ABN AMRO Munitops Certificates Trust, South Carolina Transportaion Infastructure (INS: AMBAC) (SPA: ABN AMRO Bank) 1.117%, 04/07/04 (a) (b) 10,000 10,000 State of South Carolina (GO) 2.000%, 04/01/05 4,000 4,040 University of South Carolina Revenue 1.750%, 07/24/04 15,000 15,040 ------------- 43,080 ------------- TENNESSEE - 3.7% Memphis TN (CP) (LOC: West Deutsche Landesbank) 0.950%, 04/06/04 12,500 12,500 Met Government Nashville & Davidson (LOC: Societe Generale) 1.097%, 04/07/04 (a) (b) 7,035 7,035 Rutherford County Industrial Developement - Square D Company (LOC: Societe Generale) 1.047%, 04/07/04 (a) 4,100 4,100 Shelby County Heatlh (CP) (LOC: Bank of America) 0.950%, 04/22/04 20,000 20,000 0.970%, 04/27/04 8,500 8,500 ------------- 52,135 ------------- TEXAS - 16.3% ABN AMRO Munitops Certificates Trust, Comal Texas (Credit: PSF-GTD) (SPA: ABN AMRO Bank) 1.117%, 04/07/04 (a) (b) 10,002 10,002 ABN AMRO Munitops Certificates Trust, Frisco Texas School District (Credit: PSF-GTD) (SPA: ABN AMRO Bank) 1.200%, 05/12/04 (b) 9,695 9,695
The accompanying notes are an integral part of the financial statements. 8
DESCRIPTION PAR (000) VALUE (000) ------------------------------------------------------------------------------------------ ABN AMRO Munitops Certificates Trust, Irving Texas (Credit: PSF-GTD) (SPA: ABN AMRO Bank) 1.080%, 03/09/05 (b) $ 11,390 $ 11,390 ABN AMRO Munitops Certificates Trust, Williamson County Texas (INS: FSA) (SPA: ABN AMRO Bank) 1.117%, 04/07/04 (a) (b) 10,395 10,395 Galena Park Independent School District (GTY: TXPSF) 1.067%, 04/07/04 (a) (b) 20,965 20,965 Harris County Texas Health Facilities Development, Seven Acres Jewish Senior Care (LOC: J.P. Morgan Chase Bank) 1.067%, 04/07/04 (a) 19,000 19,000 Kendall County Texas Health Facilities, Morningside Ministries (LOC: Bank One) 1.107%, 04/07/04 (a) 15,000 15,000 Midland County Texas Health Facilities, Manor Park Project (LOC: Wells Fargo Bank) 1.097%, 04/07/04 (a) 17,860 17,860 Northeast Independent School District (Credit: PSF-GTD) (Liquidity: Societe Generale) 1.067%, 04/07/04 (a) (b) 26,515 26,515 San Antonio Electric & Gas (INS: MBIA) (Liquidity: Societe Generale) 1.067%, 04/07/04 (a) (b) 7,455 7,455 State of Texas 2.000%, 08/31/04 47,850 48,027 University of Texas (CP) 0.970%, 06/09/04 10,000 10,000 0.950%, 07/08/04 10,000 10,000 0.940%, 08/11/04 15,425 15,425 ------------- 231,729 ------------- VIRGINIA - 1.8% Richmond Virginia (GO) 2.000%, 06/29/04 25,000 25,058 ------------- WASHINGTON - 2.2% ABN AMRO Munitops Certificates Trust, Washington State (GO) (INS: MBIA-IBC) (SPA: ABN AMRO Bank) 1.117%, 04/07/04 (a) (b) 14,000 14,000 Everett Public Facilities (CP) 0.990%, 05/21/04 6,240 6,240 Washington State Housing Financial Nonprofit Revenue, Emerald Heights Project (LOC: Bank of America) 1.077%, 04/01/04 (a) 5,000 5,000 Washington State Housing Financial Nonprofit Revenue, Open Window School Project (LOC: Bank of America) 1.097%, 04/07/04 (a) 6,600 6,600 ------------- 31,840 ------------- WEST VIRGINIA - 1.7% Monongalia County West Virginia General Hospital - A (LOC: Bank One) 1.047%, 04/07/04 (a) 4,700 4,700 West Virginia State Hospital Financing Authority, Pallottine Health, Series A1 (LOC: Bank One) 1.017%, 04/07/04 (a) 20,000 20,000 ------------- 24,700 ------------- DESCRIPTION PAR (000)/SHARES VALUE (000) ------------------------------------------------------------------------------------------ WISCONSIN - 2.6% Wisconsin State Health and Education Facilties (LOC: Marshall & Illsley) 1.047%, 04/07/04 (a) $ 13,800 $ 13,800 Wisconsin State Health and Educational Facilities, Lindengrove, Series B (LOC: Bank One) 1.047%, 04/07/04 (a) 7,500 7,500 Wisconsin State Health and Education Facilties, Torah Study (LOC: Harris Trust & Savings Bank) 1.047%, 04/07/04 (a) 3,315 3,315 Wisconsin State Health and Educational Facilities, Watertown Memorial Hospital Project (LOC: Bank One) 1.047%, 04/07/04 (a) 4,400 4,400 Wisconsin State Health Marshfield (LOC: Morgan Guaranty) 1.047%, 04/07/04 (a) 8,000 8,000 ------------- 37,015 ------------- MULTISTATE - 1.1% Clipper Tax-Exempt Trust 1.217%, 04/07/04 (a) (b) 15,000 15,000 ------------- TOTAL MUNICIPAL BONDS (Cost $1,426,322) 1,426,322 ------------- MONEY MARKET FUND - 0.0% AIM Tax Free Investments Company 71,689 72 Money Market Obligations Trust 59,558 59 ------------- TOTAL MONEY MARKET FUND (Cost $131) 131 ------------- TOTAL INVESTMENTS - 100.4% (Cost $1,426,453) 1,426,453 ------------- OTHER ASSETS AND LIABILITIES, NET - (0.4)% (5,009) ------------- TOTAL NET ASSETS - 100.0% $ 1,421,444 -------------
(a) Variable Rate Security - The rate shown is the rate in effect as of March 31, 2004. The date shown is the next reset date. (b) Security sold 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." These securities have been determined to be liquid under the guidelines established by the Funds' board of directors. As of March 31, 2004, the value of these investments was $265,347,000 or 18.7% of total net assets. AMBAC - American Municipal Bond Assurance Company CP - Commercial Paper FGIC - Financial Guaranty Insurance Corporation FSA - Financial Security Assistance GO - General Obligation GTD - Guaranteed GTY - Guaranty IBC - Insured Bond Certificate INS - Insured LOC - Letter of Credit MBIA - Municipal Bond Insurance Association PSF - Permanent School Fund SPA - Standby Purchase Agreement TXPSF - Texas Permanent School Fund 9 TREASURY OBLIGATIONS FUND
DESCRIPTION PAR (000) VALUE (000) ------------------------------------------------------------------------------------------ U.S. TREASURY OBLIGATIONS - 23.2% U.S. Treasury Notes 3.375%, 04/30/04 $ 375,000 $ 375,638 3.250%, 05/31/04 125,000 125,436 2.875%, 06/30/04 400,000 401,813 2.125%, 08/31/04 570,000 572,129 1.875%, 09/30/04 80,000 80,218 5.875%, 11/15/04 445,000 457,584 2.000%, 11/30/04 125,000 125,529 7.500%, 02/15/05 75,000 79,146 1.500%, 02/28/05 150,000 150,373 ------------- TOTAL U.S. TREASURY OBLIGATIONS (Cost $2,367,866) 2,367,866 ------------- REPURCHASE AGREEMENTS - 76.7% ABN AMRO 1.010%, dated 3/31/04, matures 4/1/04, repurchase price $925,025,951 (collateralized by U.S. Treasury Obligations: Total Market value $943,500,000) 925,000 925,000 Banc One 1.000%, dated 3/31/04, matures 4/1/04, repurchase price $450,012,500 (collateralized by U.S. Treasury Obligations: Total Market value $459,002,619) 450,000 450,000 Bank of America 0.950%, dated 3/31/04, matures 4/1/04, repurchase price $125,003,299 (collateralized by U.S. Treasury Obligations: Total Market value $127,500,988) 125,000 125,000 Bear Stearns 1.020%, dated 3/31/04, matures 4/1/04, repurchase price $1,150,032,583 (collateralized by U.S. Treasury Obligations: Total Market value $1,177,388,889) 1,150,000 1,150,000 CS First Boston 1.010%, dated 3/31/04, matures 4/1/04, repurchase price $175,004,910 (collateralized by U.S. Treasury Obligations: Total Market value $178,500,700) 175,000 175,000 Deutsche Bank 1.010%, dated 3/31/04, matures 4/1/04, repurchase price $450,012,625 (collateralized by U.S. Treasury Obligations: Total Market value $459,000,665) 450,000 450,000 Goldman Sachs 1.000%, dated 3/31/04, matures 4/1/04, repurchase price $1,450,040,278 (collateralized by U.S. Treasury Obligations: Total Market value $1,479,000,152) 1,450,000 1,450,000 Greenwich Capital 1.010%, dated 3/31/04, matures 4/1/04, repurchase price $450,012,625 (collateralized by U.S. Treasury Obligations: Total Market value $459,000,674) 450,000 450,000 Merrill Lynch 0.980%, dated 3/31/04, matures 4/1/04, repurchase price $450,012,250 (collateralized by U.S. Treasury Obligations: Total Market value $459,002,519) 450,000 450,000 Morgan Stanley 0.990%, dated 3/31/04, matures 4/1/04, repurchase price $450,012,375 (collateralized by U.S. Treasury Obligations: Total Market value $459,000,489) 450,000 450,000 Societe Generale 1.000%, dated 3/31/04, matures 4/1/04, repurchase price $125,003,472 (collateralized by U.S. Treasury Obligations: Total Market value $127,778,945) $ 125,000 $ 125,000 UBS Warburg 1.010%, dated 3/31/04, matures 4/1/04, repurchase price $1,186,178,278 (collateralized by U.S. Treasury Obligations: Total Market value $1,209,873,211) 1,186,145 1,186,145 Wachovia 1.010%, dated 3/31/04, matures 4/1/04, repurchase price $300,008,417 (collateralized by U.S. Treasury Obligations: Total Market value $306,001,337) 300,000 300,000 Wachovia 1.010%, dated 3/31/04, matures 4/1/04, repurchase price $125,003,507 (collateralized by U.S. Treasury Obligations: Total Market value $127,500,820) 125,000 125,000 ------------- TOTAL REPURCHASE AGREEMENTS (Cost $7,811,145) 7,811,145 ------------- TOTAL INVESTMENTS - 99.9% (Cost $10,179,011) 10,179,011 ------------- OTHER ASSETS AND LIABILITIES, NET - 0.1% 14,148 ------------- TOTAL NET ASSETS - 100.0% $ 10,193,159 -------------
The accompanying notes are an integral part of the financial statements. 10 TREASURY RESERVE FUND
DESCRIPTION PAR (000) VALUE (000) ------------------------------------------------------------------------------------------ U.S. TREASURY OBLIGATIONS - 22.6% U.S. Treasury Notes 3.375%, 04/30/04 $ 25,000 $ 25,042 3.250%, 05/31/04 20,000 20,070 2.875%, 06/30/04 95,000 95,425 2.125%, 08/31/04 105,000 105,383 1.875%, 09/30/04 20,000 20,055 5.875%, 11/15/04 85,000 87,403 2.000%, 11/30/04 55,000 55,246 ------------- TOTAL U.S. TREASURY OBLIGATIONS (Cost $408,624) 408,624 ------------- REPURCHASE AGREEMENTS - 77.3% ABN AMRO 1.010%, dated 3/31/04, matures 4/1/04, repurchase price $75,002,104 (collateralized by U.S. Treasury Obligations: Total Market value $76,500,000) 75,000 75,000 Bank of America 0.950%, dated 3/31/04, matures 4/1/04, repurchase price $75,001,979 (collateralized by U.S. Treasury Obligations: Total Market value $76,500,181) 75,000 75,000 Bear Stearns 1.020%, dated 3/31/04, matures 4/1/04, repurchase price $350,009,917 (collateralized by U.S. Treasury Obligations: Total Market value $358,271,127) 350,000 350,000 CS First Boston 1.010%, dated 3/31/04, matures 4/1/04, repurchase price $75,002,104 (collateralized by U.S. Treasury Obligations: Total Market value $76,500,521) 75,000 75,000 Goldman Sachs 1.000%, dated 3/31/04, matures 4/1/04, repurchase price $75,002,083 (collateralized by U.S. Treasury Obligations: Total Market value $76,500,159) 75,000 75,000 Greenwich Capital 1.010%, dated 3/31/04, matures 4/1/04, repurchase price $300,008,417 (collateralized by U.S. Treasury Obligations: Total Market value $306,001,282) 300,000 300,000 Lehman Brothers 1.000%, dated 3/31/04, matures 4/1/04, repurchase price $75,002,083 (collateralized by U.S. Treasury Obligations: Total Market value $76,475,154) 75,000 75,000 Merrill Lynch 0.980%, dated 3/31/04, matures 4/1/04, repurchase price $75,002,042 (collateralized by U.S. Treasury Obligations: Total Market value $76,502,654) 75,000 75,000 Morgan Stanley 0.990%, dated 3/31/04, matures 4/1/04, repurchase price $75,002,063 (collateralized by U.S. Treasury Obligations: Total Market value $76,500,773) 75,000 75,000 UBS Warburg 1.010%, dated 3/31/04, matures 4/1/04, repurchase price $149,066,182 (collateralized by U.S. Treasury Obligations: Total Market value $152,047,529) 149,062 149,062 Wachovia 1.010%, dated 3/31/04, matures 4/1/04, repurchase price $75,002,104 (collateralized by U.S. Treasury Obligations: Total Market value $76,501,002) $ 75,000 $ 75,000 ------------- TOTAL REPURCHASE AGREEMENTS (Cost $1,399,062) 1,399,062 ------------- TOTAL INVESTMENTS - 99.9% (Cost $1,807,686) 1,807,686 ------------- OTHER ASSETS AND LIABILITIES, NET - 0.1% 2,160 ------------- TOTAL NET ASSETS - 100.0% $ 1,809,846 -------------
11 STATEMENTS OF ASSETS AND LIABILITIES March 31, 2004 (unaudited), in thousands, except per share data
GOVERNMENT PRIME TAX FREE TREASURY TREASURY OBLIGATIONS OBLIGATIONS OBLIGATIONS OBLIGATIONS RESERVE FUND FUND FUND FUND FUND ---------------------------------------------------------------------------------------------------------------------------- ASSETS: Investments in securities, at amortized cost $ 1,938,439 $ 15,395,737 $ 1,426,453 $ 2,367,866 $ 408,624 Repurchase agreements, at amortized cost 1,419,164 345,629 -- 7,811,145 1,399,062 Cash -- 1 -- 29 -- Receivable for securities sold -- -- 15,175 -- -- Dividends and interest receivable 5,262 34,169 4,088 22,525 3,760 Capital shares sold 70 1,314 -- 791 -- Prepaid expenses and other assets 115 295 99 177 80 ---------------------------------------------------------------------------------------------------------------------------- TOTAL ASSETS 3,363,050 15,777,145 1,445,815 10,202,533 1,811,526 ============================================================================================================================ LIABILITIES: Bank overdraft 2 -- -- -- -- Dividends payable 1,507 8,119 609 4,337 192 Payable for investment securities purchased -- -- 23,062 -- -- Capital shares redeemed 433 980 -- 82 -- Payable to affiliates 590 2,631 299 1,728 305 Payable for distribution and shareholder servicing fees 883 3,743 394 3,168 1,164 Accrued expenses and other liabilities 15 66 7 59 19 ---------------------------------------------------------------------------------------------------------------------------- TOTAL LIABILITIES 3,430 15,539 24,371 9,374 1,680 ============================================================================================================================ NET ASSETS $ 3,359,620 $ 15,761,606 $ 1,421,444 $ 10,193,159 $ 1,809,846 ============================================================================================================================ COMPOSITION OF NET ASSETS: Portfolio capital 3,359,651 15,761,349 1,421,434 10,193,226 1,809,854 Undistributed (distributions in excess of) net investment income (28) 172 (4) (5) (8) Accumulated net realized gain (loss) on investments (3) 85 14 (62) -- ---------------------------------------------------------------------------------------------------------------------------- NET ASSETS $ 3,359,620 $ 15,761,606 $ 1,421,444 $ 10,193,159 $ 1,809,846 ============================================================================================================================ CLASS A: Net assets $ 145,734 $ 1,091,193 $ 173,957 $ 1,247,781 $ 1,809,846 Shares issued and outstanding ($0.01 par value -- 5 billion authorized) 145,665 1,091,225 173,991 1,247,757 1,809,871 Net asset value, offering price, and redemption price per share $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 CLASS B: Net assets -- $ 6,974 -- -- -- Shares issued and outstanding ($0.01 par value -- 20 billion authorized) -- 6,979 -- -- -- Net asset value, offering price, and redemption price per share -- $ 1.00 -- -- -- CLASS C: Net assets -- $ 6,477 -- -- -- Shares issued and outstanding ($0.01 par value -- 1 billion authorized) -- 6,478 -- -- -- Net asset value, offering price, and redemption price per share -- $ 1.00 -- -- -- CLASS D: Net assets $ 833,587 $ 770,196 $ 20,039 $ 5,586,245 -- Shares issued and outstanding ($0.01 par value -- 20 billion authorized) 833,602 770,199 20,039 5,586,295 -- Net asset value, offering price, and redemption price per share $ 1.00 $ 1.00 $ 1.00 $ 1.00 -- CLASS I: Net assets -- $ 1,495,426 -- -- -- Shares issued and outstanding ($0.01 par value -- 20 billion authorized) -- 1,495,457 -- -- -- Net asset value, offering price, and redemption price per share -- $ 1.00 -- -- -- CLASS Y: Net assets $ 2,000,084 $ 5,939,133 $ 871,974 $ 3,225,426 -- Shares issued and outstanding ($0.01 par value -- 20 billion authorized) 2,000,187 5,939,028 871,978 3,225,456 -- Net asset value, offering price, and redemption price per share $ 1.00 $ 1.00 $ 1.00 $ 1.00 -- CLASS Z: Net assets $ 38,599 $ 3,057,189 $ 103,239 $ 93,606 -- Shares issued and outstanding ($0.01 par value -- 20 billion authorized) 38,599 3,057,179 103,239 93,606 -- Net asset value, offering price, and redemption price per share $ 1.00 $ 1.00 $ 1.00 $ 1.00 -- PIPER JAFFRAY: Net assets $ 341,616 $ 3,395,018 $ 252,235 $ 40,101 -- Shares issued and outstanding ($0.01 par value -- 20 billion authorized) 341,684 3,394,998 252,252 40,101 -- Net asset value, offering price, and redemption price per share $ 1.00 $ 1.00 $ 1.00 $ 1.00 --
The accompanying notes are an integral part of the financial statements. 12 STATEMENTS OF OPERATIONS For the six months ended March 31, 2004 (unaudited), in thousands
GOVERNMENT PRIME TAX FREE TREASURY TREASURY OBLIGATIONS OBLIGATIONS OBLIGATIONS OBLIGATIONS RESERVE FUND FUND FUND FUND FUND ---------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Interest $ 16,672 $ 95,774 $ 7,671 $ 56,040 $ 10,639 Securities lending 34 -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT INCOME 16,706 95,774 7,671 56,040 10,639 ============================================================================================================================ EXPENSES: Investment advisory fees 1,514 8,270 743 5,366 1,010 Co-administration fees and expenses (including per account transfer agency fees) 2,122 12,818 1,075 7,291 1,328 Custodian fees 151 827 74 536 101 Directors' fees 26 133 12 96 21 Registration fees 40 68 38 35 29 Printing 34 172 16 125 27 Professional fees 57 294 27 213 45 Other 53 273 25 198 42 Distribution and shareholder servicing fees - Class A 320 2,332 392 3,257 7,578 Distribution and shareholder servicing fees - Class B -- 31 -- -- -- Distribution and shareholder servicing fees - Class C -- 29 -- -- -- Distribution and shareholder servicing fees - Class D 1,669 1,562 40 11,123 -- Shareholder servicing fees - Class I -- 1,408 -- -- -- Shareholder servicing fees - Class Y 2,070 8,077 1,190 4,543 Shareholder servicing fees - Piper Jaffray 986 9,725 731 389 -- ---------------------------------------------------------------------------------------------------------------------------- TOTAL EXPENSES 9,042 46,019 4,363 33,172 10,181 ============================================================================================================================ Less: Fee waivers (815) (2,108) (411) (2,764) (683) ---------------------------------------------------------------------------------------------------------------------------- TOTAL NET EXPENSES 8,227 43,911 3,952 30,408 9,498 ============================================================================================================================ INVESTMENT INCOME - NET 8,479 51,863 3,719 25,632 1,141 ---------------------------------------------------------------------------------------------------------------------------- NET REALIZED GAIN ON INVESTMENTS 9 85 1 -- -- ============================================================================================================================ NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 8,488 $ 51,948 $ 3,720 $ 25,632 $ 1,141 ============================================================================================================================
13 STATEMENTS OF CHANGES IN NET ASSETS in thousands
GOVERNMENT PRIME OBLIGATIONS FUND OBLIGATIONS FUND ----------------------------------------------------------------------------------------------------------- 10/1/03 10/1/02 10/1/03 10/1/02 3/31/04 9/30/03 3/31/04 9/30/03 ----------------------------------------------------------------------------------------------------------- (UNAUDITED) (UNAUDITED) OPERATIONS: Investment income - net $ 8,479 $ 25,267 $ 51,863 $ 150,493 Net realized gain on investments 9 -- 85 6 ----------------------------------------------------------------------------------------------------------- Net increase in net assets resulting from operations 8,488 25,267 51,948 150,499 ----------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Investment income - net: Class A (226) (523) (1,764) (348) Class B -- -- (2) (11) Class C -- -- (2) (6) Class D (2,101) (5,707) (2,061) (6,265) Class I -- -- (6,278) (25,049) Class Y (5,412) (15,558) (21,909) (81,697) Class Z (66) -- (13,428) (3,190) Piper Jaffray (675) (3,478) (6,419) (33,928) Net realized gain on investments: Class A -- -- (2) -- Class B -- -- -- -- Class C -- -- -- -- Class D -- -- -- -- Class I -- -- -- -- Class Y -- -- (3) -- Class Z -- -- (1) -- Piper Jaffray -- -- -- -- ----------------------------------------------------------------------------------------------------------- Total distributions (8,480) (25,266) (51,869) (150,494) =========================================================================================================== CAPITAL SHARE TRANSACTIONS AT NET ASSET VALUE OF $1.00 PER SHARE: Class A: Proceeds from sales 237,355 215,734 1,910,543 504,642 Reinvestment of distributions 175 1 2,145 1 Payments for redemptions (243,208) (257,042) (2,315,697) (417,928) ----------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets from Class A transactions (5,678) (41,307) (403,009) 86,715 ----------------------------------------------------------------------------------------------------------- Class B: Proceeds from sales -- -- 1,289 4,397 Reinvestment of distributions -- -- 2 13 Payments for redemptions -- -- (2,396) (6,680) ----------------------------------------------------------------------------------------------------------- Decrease in net assets from Class B transactions -- -- (1,105) (2,270) ----------------------------------------------------------------------------------------------------------- Class C: Proceeds from sales -- -- 1,828 15,669 Reinvestment of distributions -- -- 1 4 Payments for redemptions -- -- (2,089) (11,894) ----------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets from Class C transactions -- -- (260) 3,779 ----------------------------------------------------------------------------------------------------------- Class D: Proceeds from sales 1,906,686 3,531,232 2,725,318 6,138,802 Reinvestment of distributions 3 54 24 556 Payments for redemptions (1,976,046) (3,056,653) (2,587,614) (6,130,325) ----------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets from Class D transactions (69,357) 474,633 137,728 9,033 ----------------------------------------------------------------------------------------------------------- Class I: Proceeds from sales -- -- 3,734,027 8,342,321 Reinvestment of distributions -- -- 637 2,257 Payments for redemptions -- -- (3,870,933) (9,291,624) ----------------------------------------------------------------------------------------------------------- Decrease in net assets from Class I transactions -- -- (136,269) (947,046) ----------------------------------------------------------------------------------------------------------- Class Y: Proceeds from sales 8,662,382 12,298,176 40,493,029 66,564,151 Reinvestment of distributions 2,096 6,776 9,763 37,417 Payments for redemptions (8,214,843) (12,317,387) (41,394,285) (68,437,758) ----------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets from Class Y transactions 449,635 (12,435) (891,493) (1,836,190) ----------------------------------------------------------------------------------------------------------- Class Z: Proceeds from sales 138,837 -- 9,674,119 4,895,562 Reinvestment of distributions -- -- 1,323 62 Payments for redemptions (100,237) -- (9,846,628) (1,667,259) ----------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets from Class Z transactions 38,600 -- (171,186) 3,228,365 ----------------------------------------------------------------------------------------------------------- Piper Jaffray: Proceeds from sales 279,660 813,989 1,866,995 10,000,038 Reinvestment of distributions 549 3,488 5,402 35,428 Payments for redemptions (314,929) (878,280) (1,736,436) (11,131,842) ----------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets from Piper Jaffray transactions (34,720) (60,803) 135,961 (1,096,376) ----------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets from capital share transactions 378,480 360,088 (1,329,633) (553,990) ----------------------------------------------------------------------------------------------------------- Total increase (decrease) in net assets 378,488 360,089 (1,329,554) (553,985) NET ASSETS AT BEGINNING OF PERIOD 2,981,132 2,621,043 17,091,160 17,645,145 =========================================================================================================== NET ASSETS AT END OF PERIOD $ 3,359,620 $ 2,981,132 $ 15,761,606 $ 17,091,160 =========================================================================================================== UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME (LOSS) AT END OF PERIOD $ (28) $ (27) $ 172 $ 172 ===========================================================================================================
The accompanying notes are an integral part of the financial statements. 14
TAX FREE TREASURY TREASURY OBLIGATIONS FUND OBLIGATIONS FUND RESERVE FUND ----------------------------------------------------------------------------------------------------------------------------------- 10/1/03 10/1/02 10/1/03 10/1/02 10/1/03 10/1/02 3/31/04 9/30/03 3/31/04 9/30/03 3/31/04 9/30/03 ----------------------------------------------------------------------------------------------------------------------------------- (UNAUDITED) (UNAUDITED) (UNAUDITED) OPERATIONS: Investment income - net $ 3,719 $ 8,966 $ 25,632 $ 78,089 $ 1,141 $ 10,163 Net realized gain on investments 1 95 -- 2 -- -- ----------------------------------------------------------------------------------------------------------------------------------- Net increase in net assets resulting from operations 3,720 9,061 25,632 78,091 1,141 10,163 ----------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Investment income - net: Class A (220) (880) (1,918) (8,107) (1,149) (10,163) Class B -- -- -- -- -- -- Class C -- -- -- -- -- -- Class D (43) (131) (12,359) (36,523) -- -- Class I -- -- -- -- -- -- Class Y (2,774) (6,028) (10,800) (31,412) -- -- Class Z (265) -- (329) -- -- -- Piper Jaffray (417) (1,927) (226) (2,047) -- -- Net realized gain on investments: -- -- -- -- -- -- Class A (6) -- -- -- -- -- Class B -- -- -- -- -- -- Class C -- -- -- -- -- -- Class D (1) -- -- -- -- -- Class I -- -- -- -- -- -- Class Y (48) -- -- -- -- -- Class Z -- -- -- -- -- -- Piper Jaffray (18) -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- Total distributions (3,792) (8,966) (25,632) (78,089) (1,149) (10,163) =================================================================================================================================== CAPITAL SHARE TRANSACTIONS AT NET ASSET VALUE OF $1.00 PER SHARE: Class A: Proceeds from sales 188,686 389,270 1,782,264 2,891,552 1,727,173 3,491,491 Reinvestment of distributions 151 -- 63 48 805 9,039 Payments for redemptions (231,756) (472,655) (2,157,619) (3,185,732) (1,873,476) (4,339,951) ----------------------------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets from Class A transactions (42,919) (83,385) (375,292) (294,132) (145,498) (839,421) ----------------------------------------------------------------------------------------------------------------------------------- Class B: Proceeds from sales -- -- -- -- -- -- Reinvestment of distributions -- -- -- -- -- -- Payments for redemptions -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- Decrease in net assets from Class B transactions -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- Class C: Proceeds from sales -- -- -- -- -- -- Reinvestment of distributions -- -- -- -- -- -- Payments for redemptions -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets from Class C transactions -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- Class D: Proceeds from sales 43,832 69,558 14,206,569 36,795,843 -- -- Reinvestment of distributions -- -- -- 32 -- -- Payments for redemptions (43,136) (71,168) (14,340,453) (36,231,031) -- -- ----------------------------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets from Class D transactions 696 (1,610) (133,884) 564,844 -- -- ----------------------------------------------------------------------------------------------------------------------------------- Class I: Proceeds from sales -- -- -- -- -- -- Reinvestment of distributions -- -- -- -- -- -- Payments for redemptions -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- Decrease in net assets from Class I transactions -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- Class Y: Proceeds from sales 1,002,500 2,638,663 10,916,092 20,137,572 -- -- Reinvestment of distributions 448 741 2,149 7,504 -- -- Payments for redemptions (1,011,611) (2,342,910) (11,263,209) (19,571,299) -- -- ----------------------------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets from Class Y transactions (8,663) 296,494 (344,968) 573,777 -- -- ----------------------------------------------------------------------------------------------------------------------------------- Class Z: Proceeds from sales 311,533 -- 335,662 -- -- -- Reinvestment of distributions 34 -- -- -- -- -- Payments for redemptions (208,328) -- (242,057) -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets from Class Z transactions 103,239 -- 93,605 -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- Piper Jaffray: Proceeds from sales 166,407 430,912 141,450 1,329,721 -- -- Reinvestment of distributions 355 2,073 58 318 -- -- Payments for redemptions (169,873) (490,240) (311,155) (1,081,952) -- -- ----------------------------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets from Piper Jaffray transactions (3,111) (57,255) (169,647) 248,087 -- -- ----------------------------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets from capital share transactions 49,242 154,244 (930,186) 1,092,576 (145,498) (839,421) ----------------------------------------------------------------------------------------------------------------------------------- Total increase (decrease) in net assets 49,170 154,339 (930,186) 1,092,578 (145,506) (839,421) NET ASSETS AT BEGINNING OF PERIOD 1,372,274 1,217,935 11,123,345 10,030,767 1,955,352 2,794,773 =================================================================================================================================== NET ASSETS AT END OF PERIOD $ 1,421,444 $ 1,372,274 $ 10,193,159 $ 11,123,345 $ 1,809,846 $ 1,955,352 =================================================================================================================================== UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME (LOSS) AT END OF PERIOD $ (4) $ (4) $ (5) $ (5) $ (8) $ -- ===================================================================================================================================
15 FINANCIAL HIGHLIGHTS For a share outstanding throughout the periods ended September 30, unless otherwise indicated.
NET ASSET DIVIDENDS NET ASSET VALUE NET FROM NET VALUE NET ASSETS BEGINNING INVESTMENT INVESTMENT END OF TOTAL END OF OF PERIOD INCOME INCOME PERIOD RETURN (6) PERIOD (000) ----------------------------------------------------------------------------------------------------------------------------- GOVERNMENT OBLIGATIONS FUND Class A 2004 (1) (2) $ 1.00 $ 0.002 $ (0.002) $ 1.00 0.18% $ 145,734 2003 1.00 0.006 (0.006) 1.00 0.52 60,206 2002 1.00 0.014 (0.014) 1.00 1.41 101,513 2001(3) 1.00 0.001 (0.001) 1.00 0.05 96,036 Class D 2004 (1) $ 1.00 $ 0.003 $ (0.003) $ 1.00 0.25% $ 833,587 2003 1.00 0.008 (0.008) 1.00 0.78 902,940 2002 1.00 0.015 (0.015) 1.00 1.56 428,307 2001 1.00 0.046 (0.046) 1.00 4.68 609,315 2000 1.00 0.055 (0.055) 1.00 5.59 472,078 1999 1.00 0.044 (0.044) 1.00 4.52 439,287 Class Y 2004 (1) $ 1.00 $ 0.003 $ (0.003) $ 1.00 0.33% $ 2,000,084 2003 1.00 0.009 (0.009) 1.00 0.93 1,550,445 2002 1.00 0.017 (0.017) 1.00 1.71 1,562,880 2001 1.00 0.047 (0.047) 1.00 4.84 1,041,700 2000 1.00 0.056 (0.056) 1.00 5.75 937,230 1999 1.00 0.046 (0.046) 1.00 4.67 938,897 Class Z 2004 (1) (4) $ 1.00 $ 0.003 $ (0.003) $ 1.00 0.30% $ 38,599 Piper Jaffray 2004 (1) (5) $ 1.00 $ 0.002 $ (0.002) $ 1.00 0.17% $ 341,616 2003 1.00 0.006 (0.006) 1.00 0.65 467,541 2002 1.00 0.014 (0.014) 1.00 1.41 528,343 2001 1.00 0.044 (0.044) 1.00 4.53 490,164 2000 1.00 0.053 (0.053) 1.00 5.43 470,587 1999 1.00 0.043 (0.043) 1.00 4.36 435,227
(1) For the six months ended March 31, 2004 (unaudited). All ratios for the period have been annualized, except total return. (2) On December 1, 2003, existing Class S shares of the fund were designated as Class A shares. (3) Commenced operations on September 24, 2001. All ratios for the period have been annualized, except total return. (4) Class Z shares have been offered since December 1, 2003. All ratios for the period have been annualized, except total return. (5) On December 1, 2003, existing Class A shares of the fund were designated as Piper Jaffray shares. (6) Total return would have been lower had certain expenses not been waived. The accompanying notes are an integral part of the financial statements. 16
RATIO OF RATIO OF NET RATIO OF NET EXPENSES TO INVESTMENT RATIO OF INVESTMENT AVERAGE INCOME EXPENSES TO INCOME NET ASSETS TO AVERAGE NET AVERAGE TO AVERAGE (EXCLUDING ASSETS (EXCLUDING NET ASSETS NET ASSETS WAIVERS) WAIVERS) -------------------------------------------------------------------------------------------------------------- GOVERNMENT OBLIGATIONS FUND Class A 2004 (1) (2) 0.75% 0.35% 0.80% 0.30% 2003 0.75 0.67 0.81 0.61 2002 0.75 1.42 0.81 1.36 2001 (3) 0.70 2.66 0.80 2.56 Class D 2004 (1) 0.60% 0.51% 0.65% 0.46% 2003 0.60 0.73 0.65 0.68 2002 0.60 1.57 0.66 1.51 2001 0.60 4.51 0.66 4.45 2000 0.60 5.47 0.66 5.41 1999 0.60 4.44 0.67 4.37 Class Y 2004 (1) 0.45% 0.65% 0.50% 0.60% 2003 0.45 0.93 0.51 0.87 2002 0.45 1.68 0.51 1.62 2001 0.45 4.75 0.51 4.69 2000 0.45 5.59 0.51 5.53 1999 0.45 4.57 0.52 4.50 Class Z 2004 (1) (4) 0.20% 0.90% 0.25% 0.85% Piper Jaffray 2004 (1) (5) 0.76% 0.34% 0.81% 0.29% 2003 0.73 0.65 0.78 0.60 2002 0.75 1.39 0.81 1.33 2001 0.75 4.41 0.81 4.35 2000 0.76 5.29 0.82 5.23 1999 0.75 4.28 0.82 4.21
17
NET ASSET DIVIDENDS NET ASSET VALUE NET FROM NET VALUE NET ASSETS BEGINNING INVESTMENT INVESTMENT END OF TOTAL END OF OF PERIOD INCOME INCOME PERIOD RETURN (7) PERIOD (000) ----------------------------------------------------------------------------------------------------------------------------- PRIME OBLIGATIONS FUND Class A 2004 (1) (2) $ 1.00 $ 0.002 $ (0.002) $ 1.00 0.19% $ 1,091,193 2003 1.00 0.007 (0.007) 1.00 0.67 120,863 2002 1.00 0.014 (0.014) 1.00 1.46 34,147 2001 (3) 1.00 -- -- 1.00 0.04 -- Class B 2004 (1) $ 1.00 $ -- $ -- $ 1.00 0.02% $ 6,974 2003 1.00 0.001 (0.001) 1.00 0.04 8,079 2002 1.00 0.007 (0.007) 1.00 0.75 10,350 2001 1.00 0.038 (0.038) 1.00 3.92 7,393 2000 1.00 0.047 (0.047) 1.00 4.85 4,009 1999 1.00 0.038 (0.038) 1.00 3.85 4,007 Class C 2004 (1) $ 1.00 $ -- $ -- $ 1.00 0.02% $ 6,477 2003 1.00 0.001 (0.001) 1.00 0.14 6,736 2002 1.00 0.007 (0.007) 1.00 0.75 2,958 2001 1.00 0.038 (0.038) 1.00 3.90 2,163 2000 1.00 0.047 (0.047) 1.00 4.85 371 1999 (4) 1.00 0.024 (0.024) 1.00 2.47 341 Class D 2004 (1) $ 1.00 $ 0.003 $ (0.003) $ 1.00 0.26% $ 770,196 2003 1.00 0.008 (0.008) 1.00 0.82 632,464 2002 1.00 0.016 (0.016) 1.00 1.61 623,431 2001 1.00 0.047 (0.047) 1.00 4.81 738,871 2000 1.00 0.056 (0.056) 1.00 5.74 515,806 1999 1.00 0.046 (0.046) 1.00 4.73 426,004 Class I 2004 (1) $ 1.00 $ 0.004 $ (0.004) $ 1.00 0.38% $ 1,495,426 2003 1.00 0.010 (0.010) 1.00 1.05 1,631,687 2002 1.00 0.018 (0.018) 1.00 1.84 2,578,732 2001 (3) 1.00 0.001 (0.001) 1.00 0.06 2,932,264 Class Y 2004 (1) $ 1.00 $ 0.003 $ (0.003) $ 1.00 0.34% $ 5,939,133 2003 1.00 0.010 (0.010) 1.00 0.97 6,830,595 2002 1.00 0.017 (0.017) 1.00 1.76 8,666,782 2001 1.00 0.048 (0.048) 1.00 4.96 7,577,143 2000 1.00 0.057 (0.057) 1.00 5.90 6,431,029 1999 1.00 0.048 (0.048) 1.00 4.89 6,228,207 Class Z 2004 (1) $ 1.00 $ 0.005 $ (0.005) $ 1.00 0.48% $ 3,057,189 2003 (5) 1.00 0.002 (0.002) 1.00 0.16 3,228,365 Piper Class 2004 (1) (6) $ 1.00 $ 0.002 $ (0.002) $ 1.00 0.16% $ 3,395,018 2003 1.00 0.006 (0.006) 1.00 0.63 4,632,371 2002 1.00 0.014 (0.014) 1.00 1.43 5,728,745 2001 1.00 0.045 (0.045) 1.00 4.61 5,784,153 2000 1.00 0.054 (0.054) 1.00 5.52 4,614,094 1999 1.00 0.044 (0.044) 1.00 4.51 4,170,881
(1) For the six months ended March 31, 2004 (unaudited). All ratios for the period have been annualized, except total return. (2) On December 1, 2003, existing Class S shares of the fund were designated as Class A shares. (3) Class A and Class I shares have been offered since September 24, 2001. All ratios for the period have been annualized, except total return. (4) Class C shares have been offered since February 1, 1999. All ratios for the period have been annualized, except total return. (5) Class Z shares have been offered since August 1, 2003. All ratios for the period have been annualized, except total return. (6) On December 1, 2003, existing Class A shares of the fund were designated as Piper Jaffray shares. (7) Total return would have been lower had certain expenses not been waived. The accompanying notes are an integral part of the financial statements. 18
RATIO OF RATIO OF NET RATIO OF NET EXPENSES TO INVESTMENT RATIO OF INVESTMENT AVERAGE INCOME EXPENSES TO INCOME NET ASSETS TO AVERAGE NET AVERAGE TO AVERAGE (EXCLUDING ASSETS (EXCLUDING NET ASSETS NET ASSETS WAIVERS) WAIVERS) -------------------------------------------------------------------------------------------------------------- PRIME OBLIGATIONS FUND Class A 2004 (1) (2) 0.78% 0.38% 0.80% 0.36% 2003 0.78 0.59 0.80 0.57 2002 0.78 1.31 0.81 1.28 2001 (3) -- -- -- -- Class B 2004 (1) 1.11% 0.05% 1.13% 0.03% 2003 1.36 0.10 1.38 0.08 2002 1.48 0.73 1.51 0.70 2001 1.48 3.74 1.51 3.71 2000 1.47 4.72 1.51 4.68 1999 1.45 3.78 1.51 3.72 Class C 2004 (1) 1.11% 0.05% 1.13% 0.03% 2003 1.33 0.07 1.35 0.05 2002 1.48 0.71 1.51 0.68 2001 1.49 3.66 1.51 3.64 2000 1.46 4.63 1.51 4.58 1999 (4) 1.45 3.75 1.51 3.69 Class D 2004 (1) 0.63% 0.53% 0.65% 0.51% 2003 0.63 0.80 0.65 0.78 2002 0.63 1.61 0.66 1.58 2001 0.63 4.55 0.65 4.53 2000 0.62 5.62 0.66 5.58 1999 0.60 4.62 0.66 4.56 Class I 2004 (1) 0.40% 0.76% 0.42% 0.74% 2003 0.40 1.07 0.42 1.05 2002 0.40 1.85 0.43 1.82 2001 (3) 0.48 3.00 0.54 2.94 Class Y 2004 (1) 0.48% 0.68% 0.50% 0.66% 2003 0.48 0.98 0.50 0.96 2002 0.48 1.73 0.51 1.70 2001 0.48 4.78 0.50 4.76 2000 0.47 5.75 0.51 5.71 1999 0.45 4.78 0.51 4.72 Class Z 2004 (1) 0.20% 0.96% 0.22% 0.94% 2003 (5) 0.20 0.97 0.22 0.95 Piper Class 2004 (1) (6) 0.83% 0.33% 0.85% 0.31% 2003 0.81 0.64 0.83 0.62 2002 0.81 1.42 0.84 1.39 2001 0.83 4.46 0.85 4.44 2000 0.82 5.40 0.86 5.36 1999 0.80 4.42 0.87 4.35
19
NET ASSET DIVIDENDS NET ASSET VALUE NET FROM NET VALUE NET ASSETS BEGINNING INVESTMENT INVESTMENT END OF TOTAL END OF OF PERIOD INCOME INCOME PERIOD RETURN (7) PERIOD (000) ----------------------------------------------------------------------------------------------------------------------------- TAX FREE OBLIGATIONS FUND (1) Class A 2004 (2) (3) $ 1.00 $ 0.001 $ (0.001) $ 1.00 0.15% $ 173,957 2003 1.00 0.005 (0.005) 1.00 0.45 123,272 2002 1.00 0.008 (0.008) 1.00 0.85 206,647 2001 (4) 1.00 -- -- 1.00 0.02 402,813 Class D 2004 (2) $ 1.00 $ 0.002 $ (0.002) $ 1.00 0.22% $ 20,039 2003 1.00 0.006 (0.006) 1.00 0.60 19,343 2002 1.00 0.010 (0.010) 1.00 1.01 20,952 2001 1.00 0.028 (0.028) 1.00 2.86 32,615 2000 1.00 0.034 (0.034) 1.00 3.43 24,112 1999 1.00 0.026 (0.026) 1.00 2.66 33,464 Class Y 2004 (2) $ 1.00 $ 0.003 $ (0.003) $ 1.00 0.30% $ 871,974 2003 1.00 0.008 (0.008) 1.00 0.76 880,685 2002 1.00 0.011 (0.011) 1.00 1.16 584,132 2001 1.00 0.029 (0.029) 1.00 3.02 443,276 2000 1.00 0.035 (0.035) 1.00 3.59 375,891 1999 1.00 0.028 (0.028) 1.00 2.82 338,490 Class Z 2004 (2) (5) $ 1.00 $ 0.003 $ (0.003) $ 1.00 0.28% $ 103,239 Piper Jaffray 2004 (2) (6) $ 1.00 $ 0.001 $ (0.001) $ 1.00 0.15% $ 252,235 2003 1.00 0.005 (0.005) 1.00 0.48 348,974 2002 1.00 0.008 (0.008) 1.00 0.85 406,204 2001 1.00 0.027 (0.027) 1.00 2.72 497,631 2000 1.00 0.032 (0.032) 1.00 3.28 286,449 1999 1.00 0.025 (0.025) 1.00 2.51 268,626 TREASURY OBLIGATIONS FUND Class A 2004 (2) (3) $ 1.00 $ 0.001 $ (0.001) $ 1.00 0.15% $ 1,247,781 2003 1.00 0.006 (0.006) 1.00 0.56 1,354,195 2002 1.00 0.013 (0.013) 1.00 1.34 1,648,326 2001 (4) 1.00 0.001 (0.001) 1.00 0.05 2,035,433 Class D 2004 (2) $ 1.00 $ 0.002 $ (0.002) $ 1.00 0.22% $ 5,586,245 2003 1.00 0.007 (0.007) 1.00 0.71 5,720,129 2002 1.00 0.015 (0.015) 1.00 1.49 5,155,284 2001 1.00 0.045 (0.045) 1.00 4.54 3,996,702 2000 1.00 0.052 (0.052) 1.00 5.37 3,252,551 1999 1.00 0.043 (0.043) 1.00 4.41 3,852,189 Class Y 2004 (2) $ 1.00 $ 0.003 $ (0.003) $ 1.00 0.30% $ 3,225,426 2003 1.00 0.009 (0.009) 1.00 0.86 3,570,394 2002 1.00 0.016 (0.016) 1.00 1.64 2,996,616 2001 1.00 0.046 (0.046) 1.00 4.70 2,929,764 2000 1.00 0.054 (0.054) 1.00 5.53 2,065,655 1999 1.00 0.045 (0.045) 1.00 4.57 2,620,803 Class Z 2004 (2) (5) $ 1.00 $ 0.003 $ (0.003) $ 1.00 0.28% $ 93,606 Piper Jaffray 2004 (2) (6) $ 1.00 $ 0.001 $ (0.001) $ 1.00 0.15% $ 40,101 2003 1.00 0.006 (0.006) 1.00 0.61 478,627 2002 1.00 0.013 (0.013) 1.00 1.34 230,541 2001 1.00 0.043 (0.043) 1.00 4.44 132,245 2000 1.00 0.052 (0.052) 1.00 5.27 30,506 1999 1.00 0.042 (0.042) 1.00 4.31 23,496
(1) The financial highlights for the Tax Free Obligations Fund as set forth herein include the historical financial highlights of the Qualivest Tax-Free Money Market Fund Class A and Y shares. The assets of the Qualivest Tax-Free Money Market Fund were acquired by the Tax Free Obligations Fund on November 25, 1997. In connection with such acquisition, (i) Class A shares of the Qualivest Tax-Free Money Market Fund were exchanged for Class A shares of the Tax Free Obligations Fund; and (ii) Class Y and Class Q shares of the Qualivest Tax-Free Money Market Fund were exchanged for Class Y shares of the Tax Free Obligations Fund. (2) For the six months ended March 31, 2004 (unaudited). All ratios for the period have been annualized, except total return. (3) On December 1, 2003, existing Class S shares of the fund were designated as Class A shares. (4) Class A shares have been offered since September 24, 2001. All ratios for the period have been annualized, except total return. (5) Class Z shares have been offered since December 1, 2003. All ratios for the period have been annualized, except total return. (6) On December 1, 2003, existing Class A shares of the fund were designated as Piper Jaffray shares. (7) Total return would have been lower had certain expenses not been waived. The accompanying notes are an integral part of the financial statements. 20
RATIO OF RATIO OF NET RATIO OF NET EXPENSES TO INVESTMENT RATIO OF INVESTMENT AVERAGE INCOME EXPENSES TO INCOME NET ASSETS TO AVERAGE NET AVERAGE TO AVERAGE (EXCLUDING ASSETS (EXCLUDING NET ASSETS NET ASSETS WAIVERS) WAIVERS) -------------------------------------------------------------------------------------------------------------- TAX FREE OBLIGATIONS FUND (1) Class A 2004 (2) (3) 0.75% 0.28% 0.81% 0.22% 2003 0.75 0.48 0.81 0.42 2002 0.75 0.88 0.81 0.82 2001 (4) 0.70 1.67 0.76 1.61 Class D 2004 (2) 0.60% 0.43% 0.66% 0.37% 2003 0.60 0.59 0.65 0.54 2002 0.60 1.03 0.66 0.97 2001 0.60 2.84 0.66 2.78 2000 0.60 3.36 0.66 3.30 1999 0.60 2.62 0.67 2.55 Class Y 2004 (2) 0.45% 0.58% 0.51% 0.52% 2003 0.45 0.72 0.50 0.67 2002 0.45 1.14 0.51 1.08 2001 0.45 2.93 0.51 2.87 2000 0.45 3.53 0.51 3.47 1999 0.45 2.75 0.52 2.68 Class Z 2004 (2) (5) 0.20% 0.81% 0.26% 0.75% Piper Jaffray 2004 (2) (6) 0.75% 0.28% 0.81% 0.22% 2003 0.72 0.48 0.77 0.43 2002 0.75 0.85 0.81 0.79 2001 0.74 2.63 0.80 2.57 2000 0.75 3.23 0.81 3.17 1999 0.74 2.47 0.82 2.39 TREASURY OBLIGATIONS FUND Class A 2004 (2) (3) 0.75% 0.29% 0.80% 0.24% 2003 0.75 0.57 0.80 0.52 2002 0.75 1.34 0.81 1.28 2001 (4) 0.70 2.46 0.82 2.34 Class D 2004 (2) 0.60% 0.44% 0.65% 0.39% 2003 0.60 0.68 0.65 0.63 2002 0.60 1.48 0.66 1.42 2001 0.60 4.40 0.66 4.34 2000 0.60 5.23 0.66 5.17 1999 0.60 4.32 0.66 4.26 Class Y 2004 (2) 0.45% 0.59% 0.50% 0.54% 2003 0.45 0.85 0.51 0.79 2002 0.45 1.62 0.51 1.56 2001 0.45 4.48 0.51 4.42 2000 0.45 5.39 0.51 5.33 1999 0.45 4.49 0.51 4.43 Class Z 2004 (2) (5) 0.20% 0.85% 0.25% 0.80% Piper Jaffray 2004 (2) (6) 0.75% 0.29% 0.80% 0.24% 2003 0.70 0.55 0.75 0.50 2002 0.75 1.29 0.81 1.23 2001 0.70 4.00 0.76 3.94 2000 0.70 5.16 0.76 5.10 1999 0.70 4.24 0.76 4.18
21
NET ASSET DIVIDENDS NET ASSET VALUE NET FROM NET VALUE NET ASSETS BEGINNING INVESTMENT INVESTMENT END OF TOTAL END OF OF PERIOD INCOME INCOME PERIOD RETURN (6) PERIOD (000) ----------------------------------------------------------------------------------------------------------------------------- TREASURY RESERVE FUND (1) Class A 2004 (2) $ 1.00 $ 0.001 $ (0.001) $ 1.00 0.06% $ 1,809,846 2003 1.00 0.004 (0.004) 1.00 0.39 1,955,352 2002 1.00 0.011 (0.011) 1.00 1.15 2,794,773 2001 (3) 1.00 0.039 (0.039) 1.00 3.97 2,760,479 2000 (4) 1.00 0.05 (0.05) 1.00 5.04 2,284,168 1999 (5) 1.00 0.04 (0.04) 1.00 4.02 1,049,641
(1) The financial highlights for the Treasury Reserve Fund as set forth herein include the historical financial highlights of the Firstar U.S. Treasury Money Market Fund class A shares. The assets of the Firstar U.S. Treasury Money Market Fund were acquired by the Treasury Reserve Fund on September 24, 2001. In connection with such acquisition, Class A shares of the Firstar U.S. Treasury Money Market Fund were exchanged for Class A shares of the Treasury Reserve Fund. (2) For the six months ended March 31, 2004 (unaudited). All ratios for the period have been annualized, except total return and portfolio turnover. (3) For the period November 1, 2000 to September 30, 2001. Effective in 2001, the Fund's fiscal year end was changed from October 31 to September 30. All ratios for the period have been annualized, except total return. (4) For the period December 1, 1999 to October 31, 2000. Effective in 2000, the Fund's fiscal year end was changed from November 30 to October 31. All ratios for the period have been annualized, except total return. (5) For the year ended November 30, 1999. (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. 22
RATIO OF RATIO OF NET RATIO OF NET EXPENSES TO INVESTMENT RATIO OF INVESTMENT AVERAGE INCOME EXPENSES TO INCOME NET ASSETS TO AVERAGE NET AVERAGE TO AVERAGE (EXCLUDING ASSETS (EXCLUDING NET ASSETS NET ASSETS WAIVERS) WAIVERS) -------------------------------------------------------------------------------------------------------------- TREASURY RESERVE FUND (1) Class A 2004 (2) 0.94% 0.11% 1.01% 0.04% 2003 0.94 0.41 1.00 0.35 2002 0.94 1.15 1.00 1.09 2001 (3) 0.94 3.92 0.95 3.91 2000 (4) 0.99 4.98 1.09 4.88 1999 (5) 0.92 3.98 1.08 3.82
23 NOTES TO FINANCIAL STATEMENTS March 31, 2004 (unaudited) 1> ORGANIZATION The First American Government Obligations Fund, Prime Obligations Fund, Tax Free Obligations Fund, Treasury Obligations Fund, and Treasury Reserve Fund (each a "Fund" and collectively, the "Funds") are mutual funds offered by First American Funds, Inc. ("FAF"), which is a member of the First American Family of Funds. FAF is registered under the Investment Company Act of 1940, as amended, as an open-end investment management company. FAF's articles of incorporation permit the board of directors to create additional funds in the future. FAF offers Class A, Class B, Class C, Class D, Class I, Class Y, Class Z, and Piper Jaffray shares. Prior to December 1, 2003, Class A shares were named Class S shares and Piper Jaffray shares were named Class A shares. Class A shares are not subject to sales charges. Class B and Class C shares of the Prime Obligations Fund are only available pursuant to an exchange for Class B and Class C shares, respectively, of another fund in the First American Family of Funds. Class B shares may be subject to a contingent deferred sales charge for six years and automatically convert to Class A shares after eight years. Class C shares may be subject to a contingent deferred sales charge for 18 months. Class D, Class I, Class Y, Class Z, and Piper Jaffray shares are offered only to qualifying institutional investors. Treasury Reserve Fund offers only a single class of shares, which are not subject to sales charges. Class B, Class C, and Class I shares are not offered by the Government Obligations Fund, Tax Free Obligations Fund, Treasury Obligations Fund, or Treasury Reserve Fund. The Funds' prospectuses provide descriptions of each Fund's investment objectives, policies and strategies. All classes of shares of a Fund have identical voting, dividend, liquidation and other rights, and the same terms and conditions, except that the level of distribution and shareholder servicing fees charged may differ among classes and 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 VALUATION - Investment securities held are stated at amortized cost, which approximates market value. Under the amortized cost method, any discount or premium is amortized ratably to the expected maturity of the security and is included in interest income. In accordance with Rule 2a-7 of the Securities and Exchange Act of 1940, the market value of the securities held in the Funds are determined weekly using prices supplied by the Funds' pricing services. This value is then compared to the securities' amortized cost. Securities whose market price varies by more than 0.5% are identified and validated with the pricing agent. If the difference between the aggregate market price and aggregate amortized cost of all securities held by a Fund exceeds 50% of the allowable 0.5% threshold, the administrators will notify the Funds' board of directors. The board of directors will be kept apprised of the situation until the difference is less than 50% of the allowable 0.5% threshold. During the period no such notification was required. SECURITY TRANSACTIONS AND INVESTMENT INCOME - The Funds record security transactions on the trade date of the security purchase or sale. Interest income, including amortization of bond premium and discount, is recorded on an accrual basis. DISTRIBUTIONS TO SHAREHOLDERS - Distributions from net investment income are declared on a daily basis and are payable on the first business day of the following month. EXPENSES - Expenses that are directly related to one of the Funds are charged directly to that Fund. Other operating expenses are generally allocated to the Funds on the basis of relative net assets of all Funds within the First American Fund complex. Class specific expenses, such as 12b-1 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. 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. The character of distributions made during the year from net investment income or net realized gains may differ from its ultimate characterization for federal income tax purposes. In addition, due to the timing of dividend distributions, the fiscal year in which the amounts are distributed may differ from the year that the income or realized gains (losses) were recorded by the Fund. To the extent these differences are permanent, adjustments are made to the appropriate equity accounts in the period that the differences arise. 24 The character of the distributions paid and declared for the six months ended March 31, 2004 (estimated) and the fiscal year ended September 30, 2003, were as follows (000):
2004 -------------------------------------------------------------------------------------------- ORDINARY TAX-EXEMPT FUND INCOME INCOME TOTAL -------------------------------------------------------------------------------------------- Government Obligations Fund $ 8,479 $ -- $ 8,479 Prime Obligations Fund 51,863 -- 51,863 Tax Free Obligations Fund -- 3,719 3,719 Treasury Obligations Fund 25,632 -- 25,632 Treasury Reserve Fund 1,141 -- 1,141
2003 -------------------------------------------------------------------------------------------- ORDINARY TAX-EXEMPT FUND INCOME INCOME TOTAL -------------------------------------------------------------------------------------------- Government Obligations Fund $ 25,266 $ -- $ 25,266 Prime Obligations Fund 150,494 -- 150,494 Tax Free Obligations Fund -- 8,966 8,966 Treasury Obligations Fund 78,089 -- 78,089 Treasury Reserve Fund 10,163 -- 10,163
As of September 30, 2003, the Funds' most recently completed fiscal year end, the components of accumulated earnings on a tax-basis were:
GOVERNMENT PRIME TAX FREE OBLIGATIONS OBLIGATIONS OBLIGATIONS -------------------------------------------------------------------------------------------- Undistributed ordinary income $ 1,356 $ 8,943 $ 20 Undistributed tax exempt income -- -- 507 Undistributed long term capital gains -- -- 66 --------------------------------------- Accumulated earnings 1,356 8,943 593 Accumulated capital and post-October losses (12) -- -- -------------------------------------------------------------------------------------------- Total accumulated earnings $ 1,344 $ 8,943 $ 593 -------------------------------------------------------------------------------------------- TREASURY TREASURY OBLIGATIONS RESERVE -------------------------------------------------------------------------------------------- Undistributed ordinary income $ 4,402 $ 235 Undistributed tax exempt income -- -- Undistributed long term capital gains -- -- ------------------------- Accumulated earnings 4,402 235 Accumulated capital and post-October losses (62) -- -------------------------------------------------------------------------------------------- Total accumulated earnings $ 4,340 $ 235 --------------------------------------------------------------------------------------------
The differences between book-basis and tax-basis undistributed/accumulated income, gains and losses is primarily due to distributions declared but not paid by September 30, 2003. As of September 30, 2003, the following Funds had capital loss carryforwards (000):
EXPIRATION YEAR 2006 2008 TOTAL -------------------------------------------------------------------------------------------- FUND -------------------------------------------------------------------------------------------- Government Obligations Fund $ 12 $ -- $ 12 Treasury Obligations Fund -- 62 62
REPURCHASE AGREEMENTS - Each Fund may enter into repurchase agreements with member banks of the Federal Reserve or registered broker dealers whom the Funds' investment advisor deems creditworthy under guidelines approved by the Funds' board of directors, subject to the seller's agreement to repurchase such securities at a mutually agreed upon date and price. The repurchase price generally equals the price paid by the Fund plus interest negotiated on the basis of current short-term rates. 25 Securities pledged as collateral for repurchase agreements are held by the custodian bank until the respective agreements mature. Each Fund may also invest in triparty repurchase agreements. Securities held as collateral for triparty repurchase agreements are maintained in a segregated account by the broker's custodian bank until the maturity of the repurchase agreement. Provisions of the repurchase agreements ensure that the market value of the collateral, including accrued interest thereon, is sufficient in the event of default of the counterparty. If the counterparty defaults and the value of the collateral declines or if the counterparty enters an insolvency proceeding, realization of the collateral by the Fund may be delayed or limited. 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 maintain collateral 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. The collateral is then "marked to market" daily until the securities are returned. 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. Bancorp Asset Management, Inc. ("USBAM") serves as the securities lending agent for the Funds in transactions involving the lending of portfolio securities on behalf of the Funds. USBAM acts as the securities lending agent pursuant to, and subject to compliance with conditions contained in, an SEC exemptive order. USBAM currently receives fees equal to 25% of the Funds' income from securities lending transactions. The Funds also pay an administrative fee equal to 0.025% based on the cash collateral held for the securities on loan. Fees paid to USBAM from the Government Obligations Fund for the six months ended March 31, 2004 were $24,991. INTERFUND LENDING PROGRAM - Pursuant to an exemptive order issued by the Securities and Exchange Commission, the Funds, along with other registerd 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 six months ended March 31, 2004. USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS - The preparation of financial statements, in conformity with accounting principles generally accepted in the United States, requires management to make estimates and assumptions that affect the reported amount of net assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported results of operations during the reporting period. Actual results could differ from those estimates. 3> FEES AND EXPENSES ADVISORY FEES - Pursuant to an investment advisory agreement (the "Agreement"), USBAM manages each Fund's assets and furnishes related office facilities, equipment, research and personnel. The Agreement requires each Fund to pay USBAM a monthly fee based upon average daily net assets. At March 31, 2004, the fee for the Funds is equal to an annual rate of 0.10% of the average daily net assets of each Fund. USBAM voluntarily waived fees during the current fiscal period so that the total fund operating expenses as a percentage of average daily net assets did not exceed the following amounts:
SHARE CLASS A B C D I Y Z PIPER JAFFRAY ----------------------------------------------------------------------------------------------------------------------- FUND ----------------------------------------------------------------------------------------------------------------------- Government Obligations Fund 0.75% --% --% 0.60% --% 0.45% 0.20% 0.77% Prime Obligations Fund 0.78 1.23 1.23 0.63 0.40 0.48 0.20 0.84 Tax Free Obligations Fund 0.75 -- -- 0.60 -- 0.45 0.20 0.75 Treasury Obligations Fund 0.75 -- -- 0.60 -- 0.45 0.20 0.75 Treasury Reserve Fund 0.94 -- -- -- -- -- -- --
26 CO-ADMINISTRATION FEES - USBAM, and U.S. Bancorp Fund Services, LLC, ("USBFS"), (collectively, the "Administrators"), serve as co-administrators pursuant to a co-administration agreement between the Administrators and the Funds. USBAM 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 co-administration agreement, the Administrators are compensated to provide, or compensate other entities to provide, services to the Funds. These services include various legal, oversight and administrative services, accounting services, transfer agency and dividend disbursing services, and shareholder services. The Funds pay the Administrators at an annual rate, calculated daily and paid monthly, based on the average daily net assets of all open-end mutual funds in the First American Family of Funds, equal to each Fund's pro rata share of an amount equal to 0.15% of the aggregate average daily net assets up to $8 billion, 0.135% on the next $17 billion of the aggregate average daily net assets, 0.12% on the next $25 billion of the aggregate average daily net assets, and 0.10% of the aggregate average daily net assets in excess of $50 billion. The Funds pay transfer agent fees of $18,500 per share class. These fees are allocated to each Fund based upon the Fund's pro rata share of the aggregate average daily net assets of the Funds that comprise FAF. Each Fund also pays additional per account fees for transfer agent services. For the six months ended March 31, 2004, administration and transfer agent fees paid to USBAM and USBFS for the Funds included in this annual report were as follows (000):
FUND AMOUNT ----------------------------------------------------------------------------- Government Obligations Fund $ 1,972 Prime Obligations Fund 10,915 Tax Free Obligations Fund 978 Treasury Obligations Fund 6,998 Treasury Reserve Fund 1,296
During the six months ended March 31, 2004, administration fees of $418,538 were waived on Class Z of Prime Obligations Fund. CUSTODIAN FEES - U.S. Bank serves as the Funds' custodian pursuant to a custodian agreement with FAF. The fee for each Fund is equal to an annual rate of 0.01% of average daily net assets. All fees are computed daily and paid monthly. 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 FAF. Under the distribution agreement, and pursuant to a plan adopted by each Fund under rule 12b-1 of the Investment Company Act, each of the Funds pays Quasar a monthly distribution and/or shareholder servicing fee equal to an annual rate of 0.25% of each Fund's average daily net assets of the Class A and Piper Jaffray shares, 1.00% of the Class B shares, 1.00% of the Class C shares, 0.15% of the Class D shares, and 0.50% of the Treasury Reserve Fund. These fees may be used by Quasar to provide compensation for sales support and distribution activities for each class of the Funds. In addition, for Class B shares and Class C shares, a portion of these fees may be used to provide compensation for shareholder servicing activities. No distribution and shareholder servicing fees are paid to Quasar by Class Y or Class I shares. Under these distribution and service agreements, the following amounts were retained by Quasar for the six months ended March 31, 2004 (000):
FUND AMOUNT ----------------------------------------------------------------------------- Government Obligations Fund $ 956 Prime Obligations Fund 6,235 Tax Free Obligations Fund 568 Treasury Obligations Fund 3,936 Treasury Reserve Fund 5,048
SHAREHOLDER SERVICING (NON-12b-1) FEES - Effective August 1, 2003, FAF entered into a shareholder service plan and agreement with USBAM, under which USBAM has agreed to provide FAF, or will enter into written agreements with other service providers pursuant to which the service providers will provide FAF, with non-distribution-related services to shareholders of Class A, Class D, Class I, Class Y, and Piper Jaffray shares, and Treasury Reserve Fund. Under this plan and agreement, the Funds have agreed to pay USBAM a fee at an annual rate of 0.25% of the average net asset value of the Class A, Class D, Class Y, and Piper Jaffray shares, and the Treasury Reserve Fund, and a fee at an annual rate of 0.20% of the average net asset value of the Class I shares, computed daily and paid monthly. For the six months ended March 31, 2004, 27 shareholder servicing fees paid by the Funds to USBAM were as follows (000):
FUND AMOUNT ----------------------------------------------------------------------------- Government Obligations Fund $ 329 Prime Obligations Fund 3,080 Tax Free Obligations Fund 290 Treasury Obligations Fund 1,201 Treasury Reserve Fund 2,524
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.
CONTINGENT DEFERRED SALES CHARGE AS A PERCENTAGE OF DOLLAR YEAR SINCE PURCHASE AMOUNT 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 18 months. The CDSC for Class B shares and Class C shares is imposed on the value of the purchased shares, or the value at the time of redemption, whichever is less. For the six months ended March 31, 2004, total sales charges retained by affiliates of USBAM for distributing shares of the Prime Obligations Fund were $2,370. OTHER FEES - In addition to the investment advisory fees, custodian fees, distribution and shareholder servicing fees, and co-administration fees, each Fund is responsible for paying most other operating expenses including fees and expenses of outside directors, registration fees, printing of shareholder reports, legal, auditing, insurance and other miscellaneous expenses. For the six months ended March 31, 2004, legal fees and expenses were paid to a law firm of which the Secretary and two Assistant Secretaries of the Funds are partners. 4> CONCENTRATION OF CREDIT RISK The Tax Free Obligations Fund invests in securities that include revenue bonds, tax and revenue anticipation notes, and general obligation bonds. At March 31, 2004, the percentage of portfolio investments by each revenue source was as follows:
TAX FREE OBLIGATIONS FUND ----------------------------------------------------------------------------- Revenue Bonds 87% General Obligations 13 ----- 100%
The implied credit ratings of all portfolio holdings as a percentage of total market value of investments at March 31, 2004, were as follows:
STANDARD & POOR'S/ TAX FREE MOODY'S OBLIGATIONS RATINGS: FUND ----------------------------------------------------------------------------- AAA/Aaa 31.0% AA/Aa 65.7 A/A 3.3 NR --
Securities rated by only one agency are shown in that category. Securities rated by both agencies are shown with their lowest rating. 5> 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. HOW TO OBTAIN A COPY OF THE FUNDS' PROXY VOTING POLICIES A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available (1) without charge upon request by calling 800.677. FUND; (2) at firstamericanfunds.com; and (3) on the U.S. Securities and Exchange Commission's website at sec.gov. 28 Board of Directors First American Funds, Inc. VIRGINIA STRINGER Chairperson of First American Funds, Inc. Owner and President of Strategic Management Resources, Inc. BENJAMIN FIELD III Director of First American Funds, Inc. Senior Financial Advisor to, and formerly Senior Vice President, Chief Financial Officer, and Treasurer of, Bemis Company, Inc. MICKEY FORET Director of First American Funds, Inc. Consultant to, and formerly Executive Vice President and Chief Financial Officer of, Northwest Airlines, Inc. ROGER GIBSON Director of First American Funds, Inc. Retired; former Vice President of Cargo-United Airlines VICTORIA HERGET Director of First American Funds, Inc. Investment Consultant; former Managing Director of Zurich Scudder Investments LEONARD KEDROWSKI Director of First American Funds, Inc. Owner and President of Executive and Management Consulting, Inc. RICHARD RIEDERER Director of First American Funds, Inc. Retired; former President and Chief Executive Officer of Weirton Steel JOSEPH STRAUSS Director of First American Funds, Inc. Owner and President of Strauss Management Company JAMES WADE Director of First American Funds, Inc. Owner and President of Jim Wade Homes FIRST AMERICAN FUNDS, INC.'S BOARD OF DIRECTORS IS COMPRISED ENTIRELY OF INDEPENDENT DIRECTORS. [FIRST AMERICAN FUNDS(TM) LOGO] 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. This report is for the information of shareholders of the First American 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. INVESTMENT ADVISOR U.S. BANCORP ASSET MANAGEMENT, INC. 800 Nicollet Mall Minneapolis, Minnesota 55402 CO-ADMINISTRATORS U.S. BANCORP ASSET MANAGEMENT, INC. 800 Nicollet Mall Minneapolis, Minnesota 55402 U.S. BANCORP FUND SERVICES, LLC 615 East Michigan Street Milwaukee, Wisconsin 53202 CUSTODIAN U.S. BANK NATIONAL ASSOCIATION 180 East Fifth Street St. Paul, Minnesota 55101 DISTRIBUTOR QUASAR DISTRIBUTORS, LLC 615 East Michigan Street, 2nd floor Milwaukee, Wisconsin 53202 INDEPENDENT AUDITOR 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. Visit us at firstamericanfunds.com. 0135-04 5/2004 SAR-MM ITEM 2--CODE OF ETHICS - Did registrant adopt a code of ethics, as of the end of the period covered by this report, that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party? If not, why not? Briefly describe any amendments or waivers that occurred during the period. State here if code of ethics/amendments/waivers are on website and give website address. State here if fund will send code of ethics to shareholders without charge upon request. RESPONSE: Not applicable to semi-annual report. ITEM 3--AUDIT COMMITTEE FINANCIAL EXPERT - Did the registrant's board of directors determine that the registrant either: (i) has at least one audit committee financial expert serving on its audit committee; or (ii) does not have an audit committee financial expert serving on its audit committee? If yes, disclose name of financial expert and whether he/she is "independent," (fund may, but is not required, to disclose name/independence of more than one financial expert) If no, explain why not. RESPONSE: Not applicable to semi-annual report. ITEM 4--PRINCIPAL ACCOUNTANT FEES AND SERVICES - Disclose annually only (not answered until December 15, 2003). RESPONSE: Not applicable to semi-annual report. (a) Audit Fees - Disclose aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant's annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years. (b) Audit-Related Fees - Disclose aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant's financial statements and are not reported under paragraph (a) of this Item. Registrants shall describe the nature of the services comprising the fees disclosed under this category. (c) Tax Fees - Disclose aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning. Registrants shall describe the nature of the services comprising the fees disclosed under this category. (d) All Other Fees - Disclose aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item. Registrants shall describe the nature of the services comprising the fees disclosed under this category. (e)(1) Disclose the audit committee's pre-approval policies and procedures pursuant to paragraph (c)(7) of Rule 2-01 of Regulation S-X. (e)(2) Disclose the percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X. (f) If greater than 50%, disclose the percentage of hours expended on the principal accountant's engagement to audit the registrant's financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant's full-time, permanent employees. (g) Disclose the aggregate non-audit fees billed by the registrant's accountant for services rendered to the registrant, and rendered to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant. (h) Disclose whether the registrant's audit committee has considered whether the provision of non-audit services that were rendered to the registrant's investment adviser (not including any subadviser whose role is primarily portfolio management and is subcontracted with or overseen by another 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 pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant's independence. ITEM 5--AUDIT COMMITTEE OF LISTED REGISTRANTS RESPONSE: Not applicable. ITEM 6 - Reserved. ITEM 7--DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES - For closed-end funds that contain voting securities in their portfolio, describe the policies and procedures that it uses to determine how to vote proxies relating to those portfolio securities. RESPONSE: Not applicable. ITEM 8 - Reserved. ITEM 9--CONTROLS AND PROCEDURES (a) Disclose the conclusions of the registrant's principal executive officer or officers and principal financial officer or officers, or persons performing similar functions, about the effectiveness of the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR 270.30a-3(c))) based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph. RESPONSE: The registrant's Principal Executive Officer and Principal Financial Officer have evaluated the registrant's disclosure controls and procedures within 90 days of the date of this filing and have concluded that the registrant's disclosure controls and procedures were effective, as of that date, in ensuring that information required to be disclosed by the registrant in this Form N-CSR was recorded, processed, summarized and reported timely. Notwithstanding this conclusion, the registrant's Principal Executive Officer and Principal Financial Officer seek continuous improvements to the registrant's disclosure controls and procedures. (b) Disclose any change in the registrant's internal control over financial reporting (as defined in Rule 30a-3(c) under the Act (17 CFR 270.30a-3(c))) that occurred during the registrant's last fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. RESPONSE: There were no changes in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 10 - EXHIBITS 10(a) - Attach code of ethics or amendments/waivers, unless code of ethics or amendments/waivers is on website or offered to shareholders upon request without charge. RESPONSE: Not applicable to semi-annual report. 10(b) - Attach certifications (4 in total pursuant to Sections 302 and 906 for PEO/PFO). RESPONSE: Attached hereto. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. First American Funds, Inc. By: /s/ Thomas S. Schreier, Jr. ------------------------------- Thomas S. Schreier, Jr. President Date: June 4, 2004 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ Thomas S. Schreier, Jr. ------------------------------- Thomas S. Schreier, Jr. President Date: June 4, 2004 By: /s/ Joseph M. Ulrey III ------------------------------- Joseph M. Ulrey III Treasurer Date: June 4, 2004