-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, DTljKKQhV7f4B1+2Gcoq6equvggrmJDnYzvzskYcpoNZKj37MW8ORCR0D4rOrGCb hAhaYmBAy5lPDRJbq4ufDw== 0000897101-02-000418.txt : 20020530 0000897101-02-000418.hdr.sgml : 20020530 20020530164051 ACCESSION NUMBER: 0000897101-02-000418 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20020415 FILED AS OF DATE: 20020530 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIRST AMERICAN INVESTMENT FUNDS INC CENTRAL INDEX KEY: 0000820892 STATE OF INCORPORATION: MD FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-05309 FILM NUMBER: 02666501 BUSINESS ADDRESS: STREET 1: PO BOX 1330 CITY: MINNEAPOLIS STATE: MN ZIP: 55440-1330 BUSINESS PHONE: 6129730384 MAIL ADDRESS: STREET 1: 601 SECOND AVENUE SOUTH CITY: MINNEAPOLIS STATE: MN ZIP: 55402 FORMER COMPANY: FORMER CONFORMED NAME: SECURAL MUTUAL FUNDS INC DATE OF NAME CHANGE: 19910627 N-30D 1 faif022476_n30d.txt FIRST AMERICAN INVESTMENT FUNDS, INC. FORM N-30D [LOGO] FIRST AMERICAN FUNDS(TM) | 2002 | SEMIANNUAL | REPORT | | BOND FUNDS "Integrity and firmness is all I can promise; these, be the voyage long or short, never shall forsake me." _George Washington FIRST AMERICAN FUNDS WE BELIEVE INVESTMENT SUCCESS IS DEVELOPED OVER A LIFETIME. THE APPROACH MUST BE STRATEGIC AND GOAL-ORIENTED. THE PORTFOLIO MUST HAVE DEPTH AND BREADTH. AND THE INDIVIDUAL INVESTMENTS SHOULD DELIVER ABOVE-MARKET PERFORMANCE OVER A SUSTAINED PERIOD OF TIME. FIRST AMERICAN FUNDS IS A COMPLETE RESOURCE FOR YOUR INVESTMENTS. WE HAVE A WIDE ARRAY OF OPTIONS--MORE THAN 50 MUTUAL FUNDS THAT CROSS ALL ASSET CLASSES. TO FIND OUT HOW FIRST AMERICAN FUNDS CAN HELP YOU MEET YOUR GOALS, CONTACT YOUR INVESTMENT PROFESSIONAL. OUR FUND FAMILY * HIGHER RISK AND RETURN POTENTIAL | | SECTOR FUNDS | INTERNATIONAL FUNDS | SMALL CAP FUNDS | MID CAP FUNDS | LARGE CAP FUNDS | INDEX FUNDS | GROWTH & INCOME FUNDS | ASSET ALLOCATION FUNDS >| Income Funds | o Bond IMMDEX(TM)Fund | o Corporate Bond Fund | o Fixed Income Fund | o High Yield Bond Fund | o Intermediate Term Bond Fund | o Short Term Bond Fund | o Strategic Income Fund | o U.S. Government Securities Fund | | TAX FREE INCOME FUNDS | MONEY MARKET FUNDS | * LOWER RISK AND RETURN POTENTIAL TABLE OF CONTENTS Message to Shareholders 1 Schedule of Investments 2 Statements of Assets and Liabilities 28 Statements of Operations 30 Statements of Changes in Net Assets 32 Financial Highlights 34 Notes to Financial Statements 42 Our merger created an opportunity for First American Funds to put on a new face--which is exactly what we did. The new logo had to reflect our comprehensive suite of First American Funds and our commitment to providing unparalleled, dedicated client service. WE CHOSE 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. MUTUAL FUND INVESTING INVOLVES RISK; PRINCIPAL LOSS IS POSSIBLE - -------------------------------------------------------------------------------- NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE - -------------------------------------------------------------------------------- MESSAGE TO SHAREHOLDERS April 15, 2002 DEAR SHAREHOLDERS: On behalf of the board of directors and the entire staff of U.S. Bancorp Asset Management, Inc., thank you for your continued trust as we manage your investments. This company has grown to be a leading investment manager, as evidenced by the increasing prominence of the First American Funds family. To best serve our shareholders, we have strengthened our portfolio management team by aligning the resources they need to deliver careful investment selection and help attain our goal of superior long-term performance. We have also strengthened our ties with our partners, the financial professionals who serve your investment needs. Your continued support is our most valuable asset, and we take very seriously our commitment to providing you with a rewarding investment experience. RECOVERY AND RENEWAL The past six months marked a period of recovery and renewal for Americans. At the beginning of October, most of us were still reeling from the tragic events of September 11. The nation was in a state of high alert, and preparations were underway for a response in Afghanistan. The U.S. economy was in the midst of what would turn out to be a mild recession. If there were ever a time for financial markets to struggle due to the uncertainty of what lies ahead, this certainly was the time. But any sense of pessimism and fear quickly evolved into one of firm resolve. Americans appeared determined to do whatever was necessary to get back on track. On the back of strong fiscal and monetary policy, we saw the U.S. economy begin to quickly recover. This helped propel the equity markets to a solid rebound during the last three months of 2001. This situation changed a bit as we moved into 2002, with stocks struggling in the early weeks of the new year. In particular, there were growing concerns related to the Enron scandal. The fallout from this troubled company was felt by other firms, and the net result was a short-term negative impact on the stock market. Toward the end of February and into March, the situation stabilized a bit, and stocks managed to recover some lost ground. Still, the markets remained quite volatile, and growing tensions in the Middle East certainly contributed to this. The bond market also underwent a transformation during the six-month period. In the initial weeks after September 11, interest rates continued to decline, boosting bond values. The situation changed in November, and rates on longer-term bonds began to rise, even though the Federal Reserve continued to cut short-term interest rates in an effort to bolster the economy. Fixed-income markets stabilized again in January and February, but in March, as more positive economic news was delivered, rates climbed higher once again. As the period came to an end, it appeared that the U.S. economy was getting back on track, although the recovery was not dramatic (consistent with a rather mild recession). Positive economic news, combined with a continued environment of modest inflation, was seen as welcome news to most investors. MONITORING YOUR PORTFOLIO You can find more details about the specific performance of your individual fund holdings within the pages of this report, related to the first six months of the fiscal year (October 1, 2001, through March 31, 2002). Please take a few moments to review this information at your convenience. Most importantly, be sure your portfolio continues to meet your investment objectives. In today's volatile and often uncertain market environment, it is easy to lose track of your long-term goals in the fog of short-term market swings. More than ever, a well-diversified portfolio suited to your investment objectives and risk tolerance is critical to your long-term success. I encourage you to talk to your financial professional if you feel it is an appropriate time to review your existing holdings and the progress you are making toward reaching your goals. Thank you again for placing your trust in the First American family of funds. We look forward to helping you make your investment goals a reality. Sincerely, /s/ Virginia L. Stringer /s/ Tom S. Schreier VIRGINIA L. STRINGER TOM S. SCHREIER CHAIRPERSON OF THE BOARD PRESIDENT FIRST AMERICAN INVESTMENT FUNDS, INC. FIRST AMERICAN INVESTMENT FUNDS, INC. /s/ Mark Jordahl MARK JORDAHL CHIEF INVESTMENT OFFICER U.S. BANCORP ASSET MANAGEMENT, INC. FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2002 1) SCHEDULE OF Investments March 31, 2002 (unaudited) BOND IMMDEX(TM) FUND DESCRIPTION PAR (000) VALUE (000) - -------------------------------------------- ------------ -------------- CORPORATE BONDS - 45.9% CONSUMER GOODS - 1.1% Cendant 7.750%, 12/01/03 $ 4,500 $ 4,619 Pepsico 4.500%, 09/15/04 1,500 1,515 Tenneco 7.950%, 12/15/25 2,150 2,206 ------- 8,340 ------- ENERGY - 1.2% Burlington Resources 7.400%, 12/01/31 1,500 1,479 Dynegy 7.450%, 07/15/06 2,600 2,561 Sunoco, Callable 06/01/06 @ 100 9.375%, 06/01/16 2,802 2,983 Williams 7.625%, 07/15/19 2,675 2,427 ------- 9,450 ------- FINANCE - 21.0% Aetna Services 6.750%, 09/15/13 1,800 1,834 Associated P&C Holdings 6.750%, 07/15/03 4,895 5,026 Banco Santander 6.500%, 11/01/05 4,925 4,983 Bank of America 10.000%, 02/01/03 3,539 3,739 Bank of Boston 6.375%, 04/15/08 2,500 2,467 Centel Capital 9.000%, 10/15/19 1,750 1,717 Dresdner Bank 7.250%, 09/15/15 3,500 3,604 First National Bank of Chicago 8.080%, 01/05/18 1,500 1,548 First National Bank of Omaha 7.320%, 12/01/10 3,100 3,008 First Union 8.125%, 06/24/02 3,000 3,038 Ford Motor Credit 7.250%, 10/25/11 5,000 4,815 General Electric Capital 6.875%, 11/15/10 5,000 5,166 General Motors Acceptance 8.750%, 07/15/05 3,000 3,208 Goldman Sachs 6.250%, 02/01/03 10,000 10,263 6.600%, 01/15/12 5,000 4,934 Heller Financial 8.000%, 06/15/05 1,285 1,381 Household Finance 8.000%, 07/15/10 3,000 3,139 Household Netherlands BV 6.200%, 12/01/03 10,000 10,199 Lehman Brothers Holdings 8.750%, 05/15/02 1,500 1,511 11.625%, 05/15/05 2,620 3,079 7.500%, 09/01/06 5,000 5,271 Merrill Lynch 5.880%, 01/15/04 5,000 5,124 BOND IMMDEX(TM) FUND (CONTINUED) DESCRIPTION PAR (000) VALUE (000) - -------------------------------------------- ------------ -------------- Morgan Stanley Dean Witter 6.100%, 04/15/06 $ 2,725 $ 2,772 6.750%, 04/15/11 8,000 8,077 NCNB 10.200%, 07/15/15 5,155 6,454 National Bank of Hungary 8.875%, 11/01/13 2,490 2,870 National Westminster Bancorp 9.375%, 11/15/03 1,000 1,079 Newcourt Credit Group, Series B 6.875%, 02/16/05 3,490 3,385 Paine Webber 6.450%, 12/01/03 2,500 2,606 6.730%, 01/20/04 2,450 2,560 8.875%, 03/15/05 1,540 1,676 Principal Financial 8.200%, 08/15/09 7,000 7,553 Salomon Smith Barney Holdings 6.750%, 02/15/03 2,100 2,165 7.000%, 06/15/03 3,450 3,589 6.250%, 06/15/05 5,000 5,171 Sanwa Bank 8.350%, 07/15/09 2,500 2,407 Unitedhealth Group 6.600%, 12/01/03 10,000 10,351 Verizon Global Funding 7.250%, 12/01/10 7,000 7,177 Western National 7.125%, 02/15/04 2,456 2,565 --------- 161,511 --------- MANUFACTURING - 5.6% DaimlerChrysler 7.200%, 09/01/09 5,000 5,032 Delphi Auto Systems 6.550%, 06/15/06 3,500 3,515 Ford Motor 9.215%, 09/15/21 2,934 3,124 Ford Motor, Callable 11/15/02 @ 104.15 8.875%, 11/15/22 1,000 986 General Motors 6.750%, 05/01/28 5,000 4,340 Georgia Pacific 9.500%, 12/01/11 1,011 1,063 Georgia Pacific, Callable 05/28/02 @ 104.70 9.875%, 11/01/21 4,605 4,529 IBM 6.500%, 01/15/28 5,000 4,744 Toll Road Investors 0.000%, 02/15/04 (A) (E) 5,800 5,265 0.000%, 02/15/05 (A) (E) 1,000 849 TRW 6.625%, 06/01/04 3,360 3,368 7.625%, 03/15/06 2,000 2,047 Tyco International 6.750%, 02/15/11 2,000 1,790 Visteon 8.250%, 08/01/10 2,500 2,536 -------- 43,188 -------- The accompanying notes are an integral part of the financial statements. (2 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2002 BOND IMMDEX(TM) FUND (CONTINUED) DESCRIPTION PAR (000) VALUE (000) - -------------------------------------------- ------------ -------------- REAL ESTATE - 0.4% Security Capital Group 7.750%, 11/15/03 $ 2,850 $ 2,995 -------- SERVICES - 5.4% American Home Products 6.700%, 03/15/11 5,250 5,350 Bristol-Myers Squibb 5.750%, 10/01/11 5,000 4,811 British Sky Broadcasting 6.875%, 02/23/09 2,500 2,358 Continental Cablevision, Callable 08/01/05 @ 104.75 9.500%, 08/01/13 8,200 9,062 Duty Free International 7.000%, 01/15/04 (D) 6,450 2,580 Hertz 7.625%, 08/15/07 2,500 2,441 J.C. Penney, Callable 06/15/02 @ 104.12 9.750%, 06/15/21 3,000 2,850 Time Warner 9.125%, 01/15/13 2,200 2,505 U.S. West Communications 7.200%, 11/01/04 4,900 4,798 7.250%, 09/15/25 5,000 3,867 U.S. West Communications, Callable 05/28/02 @ 105.92 8.875%, 06/01/31 1,000 900 -------- 41,522 -------- TRANSPORTATION - 3.0% Air 2 US 8.627%, 10/01/20 5,000 4,085 10.127%, 10/01/20 1,000 758 America West Airlines 8.540%, 01/02/05 (A) 1,779 1,559 7.930%, 01/02/19 (A) 2,758 2,914 American Airlines 10.210%, 01/01/10 1,500 1,477 Continental Airlines, Series 974C 6.800%, 07/02/07 2,141 2,025 CSX 5.850%, 12/01/03 3,000 3,062 Federal Express 9.650%, 06/15/12 4,400 5,237 Stagecoach Holdings 8.625%, 11/15/09 2,500 2,300 -------- 23,417 -------- UTILITIES - 5.3% AT&T 6.500%, 03/15/29 2,000 1,657 British Telecom 8.375%, 12/15/10 2,000 2,169 Conectiv 6.730%, 06/01/06 3,760 3,836 Deutsche Telecom 7.750%, 06/15/05 500 520 8.250%, 06/15/30 3,000 3,111 France Telecom 8.250%, 03/01/11 (B) 4,000 4,073 8.500%, 03/01/31 (B) 2,000 2,114 GTE North, Callable 07/01/02 @ 104 9.600%, 01/01/21 1,100 1,136 BOND IMMDEX(TM) FUND (CONTINUED) DESCRIPTION PAR (000) VALUE (000) - -------------------------------------------- ------------ -------------- Metronet Communications, Callable 11/01/03 @ 105.31 10.625%, 11/01/08 $ 1,000 $ 190 Old Dominion Electric Co-op First Mortgage, Callable 12/01/02 @ 108.76 8.760%, 12/01/22 6,850 7,283 PSI Energy 7.850%, 10/15/07 3,100 3,197 Sprint Capital 5.700%, 11/15/03 5,250 5,062 Utilicorp United 7.625%, 11/15/09 3,000 2,862 Worldcom 6.500%, 05/15/04 2,000 1,833 7.375%, 01/15/06 2,000 1,762 --------- 40,805 --------- YANKEE - 2.9% Ford Capital BV 9.875%, 05/15/02 560 564 9.500%, 06/01/10 1,400 1,516 Hydro-Quebec 11.750%, 02/01/12 3,500 4,870 Hydro-Quebec, Callable 01/15/03 @ 100 9.750%, 01/15/18 750 779 Korea Electric Power, Putable 08/01/04 @ 100 6.750%, 08/01/27 1,400 1,434 Newfoundland (Province of) Canada 10.000%, 12/01/20 1,975 2,672 Norsk Hydro 9.000%, 04/15/12 2,900 3,369 Sweden (Kingdom of) 11.125%, 06/01/15 1,100 1,535 Wharf Capital International 8.875%, 11/01/04 2,700 2,932 7.625%, 03/13/07 2,675 2,797 --------- 22,468 --------- TOTAL CORPORATE BONDS 353,696 --------- U.S. GOVERNMENT & AGENCY SECURITIES - 42.0% U.S. AGENCY DEBENTURES - 13.7% FHLB 5.785%, 02/09/05 6,000 6,199 6.365%, 11/05/07 1,500 1,563 5.750%, 05/15/08 7,500 7,557 6.625%, 11/15/10 3,000 3,124 FHLMC 5.950%, 01/19/06 15,000 15,507 6.625%, 09/15/09 7,500 7,842 7.000%, 03/15/10 5,000 5,349 FNMA 6.500%, 08/15/04 5,000 5,254 5.250%, 06/15/06 5,000 5,029 7.125%, 03/15/07 20,000 21,544 6.210%, 11/07/07 2,090 2,163 5.250%, 01/15/09 6,300 6,129 7.250%, 01/15/10 2,600 2,819 5.000%, 11/17/11 16,200 14,868 --------- 104,947 --------- U.S. TREASURIES - 28.3% U.S. Treasury Bonds 9.875%, 11/15/15 16,050 22,040 9.250%, 02/15/16 56,680 74,554 8.000%, 11/15/21 61,873 75,756 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2002 3) SCHEDULE OF Investments March 31, 2002 (unaudited) BOND IMMDEX(TM) FUND (CONTINUED) DESCRIPTION PAR (000) VALUE (000) - -------------------------------------------- ------------ -------------- U.S. Treasury Notes 7.250%, 08/15/04 $ 11,300 $ 12,138 6.625%, 05/15/07 8,825 9,470 6.000%, 08/15/09 8,000 8,325 5.000%, 02/15/11 1,650 1,599 5.000%, 02/15/11 14,000 13,568 --------- 217,450 --------- TOTAL U.S. GOVERNMENT & AGENCY SECURITIES 322,397 --------- U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES - 4.0% FIXED RATE - 4.0% FHLMC Gold Pool 6.500%, 02/01/31, #C47895 1,387 1,383 6.500%, 05/01/31, #C51020 11,723 11,671 FHLMC Pool 7.500%, 04/01/07, #140151 27 28 FNMA Pool 7.750%, 06/01/08, #001464 47 48 6.500%, 08/01/29, #252645 96 96 6.500%, 05/01/30, #535300 9,748 9,732 GNMA Pool 6.000%, 03/15/31, #541302 3,398 3,300 6.000%, 03/15/31, #554675 4,923 4,792 --------- TOTAL U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES 31,050 --------- ASSET-BACKED SECURITIES - 2.1% CREDIT CARDS - 0.8% Chemical Master Credit Card Trust Series 1995-3, Class A 6.230%, 04/15/05 1,520 1,543 Citibank Credit Card Master Trust Series 1997-6, Class A 0.000%, 08/15/06 (E) 5,000 4,509 --------- 6,052 --------- HOME EQUITY - 1.3% Amresco Residential Security Mortgage Series 1997-3, Class A9 6.960%, 03/25/27 4,013 4,112 Contimortgage Home Equity Loan Trust Series 1998-1, Class A6 6.580%, 12/15/18 1,050 1,077 Series 1997-3, Class A8 7.580%, 08/15/28 3,000 3,125 Delta Home Equity Loan Trust Series 1997-3, Class A6F 6.860%, 10/25/28 1,407 1,458 --------- 9,772 --------- TOTAL ASSET-BACKED SECURITIES 15,824 --------- CMO - U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES - 1.6% FIXED RATE - 1.2% FDIC REMIC Trust Series 1996-C1, Class 1A 6.750%, 05/25/26 1,802 1,836 FHLMC Series 6, Class C 9.050%, 06/15/19 178 190 Series 1022, Class J 6.000%, 12/15/20 268 273 Series 162, Class F 7.000%, 05/15/21 802 826 Series 188, Class H 7.000%, 09/15/21 599 618 Series 1201, Class E 7.400%, 12/15/21 205 210 BOND IMMDEX(TM) FUND (CONTINUED) DESCRIPTION PAR (000) VALUE (000) - -------------------------------------------- ------------ -------------- Series 1790, Class A 7.000%, 04/15/22 $ 674 $ 695 FNMA Series 1988-24, Class G 7.000%, 10/25/18 356 365 Series 1989-44, Class H 9.000%, 07/25/19 313 336 Series 1989-90, Class E 8.700%, 12/25/19 70 73 Series 1990-30, Class E 6.500%, 03/25/20 327 330 Series 1990-61, Class H 7.000%, 06/25/20 309 317 Series 1990-72, Class B 9.000%, 07/25/20 196 211 Series 1990-102, Class J 6.500%, 08/25/20 265 267 Series 1990-105, Class J 6.500%, 09/25/20 1,171 1,193 Series 1990-106, Class J 8.500%, 09/25/20 205 215 Series 1991-56, Class M 6.750%, 06/25/21 1,035 1,052 Series 1992-120, Class C 6.500%, 07/25/22 435 439 --------- 9,446 --------- Z-BONDS (C) - 0.4% FHLMC Series 1118, Class Z 8.250%, 07/15/21 584 618 FNMA Series 1991-134, Class Z 7.000%, 10/25/21 2,023 2,053 --------- 2,671 --------- TOTAL CMO - U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES 12,117 --------- RELATED PARTY MONEY MARKET FUND - 2.9% First American Prime Obligations Fund (F) 21,884,273 21,884 --------- TOTAL RELATED PARTY MONEY MARKET FUND 21,884 --------- TOTAL INVESTMENTS - 98.5% (Cost $748,419) 756,968 --------- OTHER ASSETS AND LIABILITIES, NET - 1.5% 11,668 --------- TOTAL NET ASSETS - 100.0% $ 768,636 --------- (A) Security sold within the terms of a private placement memorandum, exempt from registration under section 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other "qualified institutional investors." These securities have been determined to be liquid under the guidelines established by the Board of Directors. (B) Delayed Interest (Step-Bonds) - Represents securities that remain zero-coupon securities until a predetermined date at which time the stated coupon rate becomes effective and interest becomes payable at regular intervals. The interest rates disclosed represent current yields at March 31, 2002, based upon the estimated timing and amount of future interest and principal payments. (C) Z-Bonds - Represents securities that pay no interest or principal during their accrual periods, but accrue additional principal at specified rates. Interest rate disclosed represents current yield based upon the cost basis and estimated future cash flows. (D) Securities considered illiquid or restricted. See also the notes to the financial statements. (E) Principal only. (F) This money market fund is advised by U.S. Bancorp Asset Management, Inc., which also serves as advisor for this Fund. See also the notes to the financial statements. CMO - Collateralized Mortgage Obligation FDIC - Federal Deposit Insurance Corporation FHLB - Federal Home Loan Bank FHLMC - Federal Home Loan Mortgage Corporation FNMA - Federal National Mortgage Association GNMA - Government National Mortgage Association REMIC - Real Estate Mortgage Investment Conduit The accompanying notes are an integral part of the financial statements. (4 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2002 CORPORATE BOND FUND DESCRIPTION PAR (000) VALUE (000) - -------------------------------------------- ------------ -------------- CORPORATE BONDS - 84.1% CONSUMER GOODS - 2.6% Cendant 6.875%, 08/15/06 $ 3,000 $ 2,933 Tyson Foods 8.250%, 10/01/11 3,000 3,181 -------- 6,114 -------- ENERGY - 4.7% Burlington Resources 5.600%, 12/01/06 (A) (C) 2,950 2,877 Devon Financing 6.875%, 09/30/11 (C) 2,950 2,880 El Paso Energy 7.800%, 08/01/31 3,000 2,910 Pemex Project 9.125%, 10/13/10 1,500 1,613 Williams 7.750%, 06/15/31 1,000 901 -------- 11,181 -------- FINANCE - 29.4% Abbey National Capital Trust, Callable 06/30/30 @ 100 8.963%, 12/29/49 2,950 3,326 Allstate 5.375%, 12/01/06 3,000 2,973 Amerco 8.800%, 02/04/05 1,000 1,003 Bank One 7.125%, 05/15/07 2,500 2,643 Bear Stearns 7.800%, 08/15/07 1,950 2,057 Capital One Bank 6.700%, 05/15/08 1,500 1,414 Countrywide Home Loan 5.500%, 08/01/06 2,000 1,963 Credit Suisse First Boston 5.875%, 08/01/06 3,000 3,027 ERAC USA Finance 7.350%, 06/15/08 (A) 3,000 3,032 First Union Institution Capital I, Callable 12/01/06 @ 104.02 8.040%, 12/01/26 2,000 1,983 GATX Capital 8.250%, 09/01/03 1,500 1,486 General Electric Capital 6.500%, 12/10/07 2,500 2,567 Golden State Holdings 7.125%, 08/01/05 1,225 1,214 Goldman Sachs 6.600%, 01/15/12 2,950 2,911 Household Finance 7.875%, 03/01/07 3,000 3,141 ING Capital Funding Trust III, Callable 12/31/10 @ 100 8.439%, 12/31/10 3,000 3,266 International Lease Finance 5.750%, 10/15/06 3,000 2,950 Lehman Brothers Holdings 7.875%, 08/15/10 2,000 2,123 CORPORATE BOND FUND (CONTINUED) DESCRIPTION PAR (000) VALUE (000) - -------------------------------------------- ------------ -------------- MBNA America Bank 7.750%, 09/15/05 $ 3,000 $ 3,161 National Rural Utilities 7.250%, 03/01/12 1,950 1,946 NB Capital Trust IV, Callable 04/15/17 @ 103.85 8.250%, 04/15/27 2,100 2,118 Newcourt Credit Group, Series B 6.875%, 02/16/05 2,950 2,862 Ohio National Life Insurance 8.875%, 07/15/04 (A) 2,000 2,175 Royal Bank of Scotland, Callable 09/30/31 @ 100 7.648%, 09/30/31 (B) 3,000 3,054 Socgen Real Estate, Callable 09/30/07 @ 100 7.640%, 12/29/49 (A) 2,950 3,012 Sovereign Bancorp 10.500%, 11/15/06 1,000 1,079 Washington Mutual Finance 6.250%, 05/15/06 2,475 2,499 Wells Fargo, Callable 12/15/06 @ 103.98 7.960%, 12/15/26 2,000 2,020 Zurich Capital Trust, Callable 06/01/07 @ 104.19 8.376%, 06/01/37 2,950 2,897 -------- 69,902 -------- MANUFACTURING - 11.5% Abitibi-Consolidated 6.950%, 12/15/06 3,000 2,961 Centex 7.500%, 01/15/12 1,950 1,918 Daimler Chrysler 6.400%, 05/15/06 2,950 2,950 Ford Motor 7.450%, 07/16/31 2,950 2,673 GMAC 6.125%, 09/15/06 3,000 2,967 Harman International Industries 7.125%, 02/15/07 (A) (C) 1,950 1,899 Lockheed Martin, Callable 03/15/03 @ 103.74 7.875%, 03/15/23 2,000 2,032 Mohawk Industries 7.200%, 04/15/12 (A) 1,000 1,004 Motorola 6.750%, 02/01/06 2,000 1,980 Nortel Networks 6.125%, 02/15/06 1,000 745 Phelps Dodge 8.750%, 06/01/11 1,500 1,454 Raytheon 6.300%, 03/15/05 1,950 1,966 Tyco International 6.125%, 01/15/09 975 863 Weyerhaeuser 6.125%, 03/15/07 (A) (C) 1,950 1,935 -------- 27,347 -------- FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2002 5) SCHEDULE OF Investments March 31, 2002 (unaudited) CORPORATE BOND FUND (CONTINUED) DESCRIPTION PAR (000) VALUE (000) - -------------------------------------------- ------------ -------------- REAL ESTATE - 5.5% Avalon Bay Communities 6.800%, 07/15/06 $ 2,000 $ 2,048 CarrAmerica Realty 7.125%, 01/15/12 1,950 1,935 Highwoods Forsyth 7.190%, 06/15/04 2,000 2,044 Mack-Cali Realty 7.250%, 03/15/09 2,000 2,008 Post Apartment Homes 7.300%, 04/01/04 1,000 1,038 Prologis Trust 7.050%, 07/15/06 2,000 2,039 Simon Property Group 7.750%, 01/20/11 (A) 1,950 1,995 -------- 13,107 -------- SERVICES - 14.8% AOL Time Warner 7.625%, 04/15/31 2,950 2,942 Aramark Services 6.750%, 08/01/04 2,000 1,965 Autonation 9.000%, 08/01/08 1,000 1,055 British Sky Broadcasting 8.200%, 07/15/09 1,000 1,013 Charter Communications Holdings 9.625%, 11/15/09 1,000 955 Cox Communications 7.750%, 11/01/10 975 987 Delhaize America 8.125%, 04/15/11 3,000 3,172 Federated Department Stores 6.625%, 04/01/11 1,950 1,921 HCA Columbia Healthcare 8.750%, 09/01/10 1,000 1,093 Lenfest Communications 8.375%, 11/01/05 1,950 2,084 McKesson 7.750%, 02/01/12 1,950 1,976 MGM Mirage 8.375%, 02/01/11 1,000 1,025 News America 6.625%, 01/09/08 3,000 2,961 Park Place Entertainment 7.875%, 12/15/05 1,000 1,005 Royal Caribbean Cruises 8.250%, 04/01/05 1,000 975 Safeway 8.570%, 04/01/03 3,000 3,142 Sbarro, Callable 09/15/04 @ 105.50 11.000%, 09/15/09 1,000 1,030 Service Corporate International 6.000%, 12/15/05 1,000 920 Tricon Global Restaurant 7.650%, 05/15/08 1,000 1,015 Walt Disney 6.375%, 03/01/12 1,950 1,900 Waste Management 6.500%, 11/15/08 2,000 1,915 -------- 35,051 -------- CORPORATE BOND FUND (CONTINUED) DESCRIPTION PAR (000) VALUE (000) - -------------------------------------------- ------------ -------------- TRANSPORTATION - 5.0% American Airlines 6.817%, 05/23/11 (A) $ 4,000 $ 3,828 Canadian Pacific Railway 7.125%, 10/15/31 3,000 3,003 Delta Air Lines 6.711%, 09/18/11 3,500 3,492 United Air Lines, Series 2000-1, Class B 8.030%, 07/01/11 1,882 1,586 --------- 11,909 --------- UTILITIES - 10.6% AES 9.375%, 09/15/10 1,000 785 AT&T 8.000%, 11/15/31 (A) 2,950 2,863 Calpine 8.500%, 02/15/11 1,000 795 Cingular Wireless 6.500%, 12/15/11 (A) 2,350 2,267 CMS Energy 7.625%, 11/15/04 1,000 1,005 Global Crossing Holdings, Callable 11/01/04 @ 104.75 9.500%, 11/15/09 1,000 23 Limestone Electron Trust 8.625%, 03/15/03 (A) 1,000 1,014 NRG Northeast Generating 8.842%, 06/15/15 (A) 1,000 1,013 PG&E National Energy 10.375%, 05/16/11 (A) 1,500 1,538 Qwest Capital Funding 7.750%, 08/15/06 (A) 1,950 1,697 Sempra Energy 7.950%, 03/01/10 3,000 3,055 Sprint Capital 6.000%, 01/15/07 3,000 2,729 Telus 8.000%, 06/01/11 2,950 3,025 Western Resources 6.250%, 08/15/03 1,000 960 Worldcom 8.250%, 05/15/31 2,950 2,401 --------- 25,170 --------- TOTAL CORPORATE BONDS 199,781 --------- U.S. GOVERNMENT & AGENCY SECURITIES - 5.2% U.S. AGENCY DEBENTURES - 4.1% FFCB 3.875%, 12/15/04 3,170 3,097 FHLMC 6.750%, 03/15/31 3,500 3,578 FNMA 5.500%, 05/02/06 3,000 3,047 --------- 9,722 --------- U.S. TREASURIES - 1.1% U.S. Treasury Note 6.500%, 10/15/06 2,500 2,664 --------- TOTAL U.S. GOVERNMENT & AGENCY SECURITIES 12,386 --------- The accompanying notes are an integral part of the financial statements. (6 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2002 CORPORATE BOND FUND (CONTINUED) DESCRIPTION PAR (000) VALUE (000) - -------------------------------------------- ------------ -------------- ASSET-BACKED SECURITIES - 2.5% HOME EQUITY - 1.2% Green Tree Home Improvement Loan Trust Series 1997-A, Class HEM2 7.900%, 03/15/28 $ 1,300 $ 1,358 GRMT Mortgage Loan Trust Series 2001-1A, Class M1 7.772%, 07/20/31 1,500 1,517 ------- 2,875 ------- MANUFACTURED HOUSING - 0.5% Green Tree Financial Series 1996-8, Class A7 8.050%, 10/15/27 998 1,055 ------- OTHER - 0.8% Aircraft Finance Trust Series 1999-1A, Class C 8.000%, 05/15/24 (A) (C) 1,000 910 Juniper Series 2000-1, Class A3 8.220%, 04/15/12 (C) 1,000 1,025 ------- 1,935 ------- TOTAL ASSET-BACKED SECURITIES 5,865 ------- CMO - PRIVATE MORTGAGE-BACKED SECURITIES - 2.4% FIXED RATE - 1.8% Impac Secured Assets CMN Owner Trust Series 2000-5, Class A2 6.730%, 08/25/26 (C) 1,691 1,708 Norwest Asset Securities Series 1998-16, Class A1 6.500%, 06/25/13 2,624 2,664 ------- 4,372 ------- Z-BOND (D) - 0.6% GE Capital Mortgage Services Series 1994-6, Class A9 6.500%, 09/25/22 1,348 1,365 ------- TOTAL CMO - PRIVATE MORTGAGE-BACKED SECURITIES 5,737 ------- U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES - 1.7% FIXED RATE - 1.7% FNMA Pool 6.060%, 03/01/12, #384931 4,000 4,071 ------- TOTAL U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES 4,071 ------- CORPORATE BOND FUND (CONCLUDED) DESCRIPTION PAR (000)/SHARES VALUE (000) - ----------------------------------------------- ---------------- ----------- CMO - U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES - 1.0% FIXED RATE - 1.0% FHLMC Series 1378, Class H 10.000%, 01/15/21 $ 909 $ 929 GNMA Series 1996-20, Class C 7.500%, 05/16/23 1,314 1,323 ----------- TOTAL CMO - U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES 2,252 ----------- RELATED PARTY MONEY MARKET FUND - 3.0% First American Prime Obligations Fund (E) 7,042,111 7,042 ----------- TOTAL RELATED PARTY MONEY MARKET FUND 7,042 ----------- TOTAL INVESTMENTS - 99.9% (Cost $241,234) 237,134 ----------- OTHER ASSETS AND LIABILITIES, NET - 0.1% 247 ----------- TOTAL NET ASSETS - 100.0% $ 237,381 ----------- (A) Security sold within the terms of a private placement memorandum, exempt from registration under section 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other "qualified institutional investors." These securities have been determined to be liquid under the guidelines established by the Board of Directors. (B) Variable Rate Security - The rate shown is the rate in effect as of March 31, 2002. (C) Securities considered illiquid or restricted. See also the notes to the financial statements. (D) Z-Bonds - Represents securities that pay no interest or principal during their accrual periods, but accrue additional principal at specified rates. Interest rate disclosed represents current yield based upon the cost basis and estimated future cash flows. (E) This money market fund is advised by U.S. Bancorp Asset Management, Inc., which also serves as advisor for this Fund. See also the notes to the financial statements. CMO - Collateralized Mortgage Obligation FFCB - Federal Farm Credit Bank FHLMC - Federal Home Loan Mortgage Corporation FNMA - Federal National Mortgage Association GNMA - Government National Mortgage Association FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2002 7) SCHEDULE OF Investments March 31, 2002 (unaudited) FIXED INCOME FUND DESCRIPTION PAR (000) VALUE (000) - -------------------------------------------- ------------ -------------- CORPORATE BONDS - 40.6% CONSUMER GOODS - 0.7% Conagra Foods 6.750%, 09/15/11 $10,000 $ 10,044 --------- ENERGY - 2.2% Consolidated Natural Gas 7.250%, 10/01/04 20,000 20,874 Dynegy 6.875%, 07/15/02 10,000 9,950 --------- 30,824 --------- FINANCE - 19.8% ABN AMRO 7.550%, 06/28/06 10,000 10,676 Bank of America 7.125%, 09/15/06 10,000 10,659 Bear Stearns 5.700%, 01/15/07 10,000 9,804 Cigna 7.400%, 01/15/03 10,726 11,009 Countrywide Home Loan 5.500%, 08/01/06 13,000 12,761 Credit Suisse First Boston 5.875%, 08/01/06 9,700 9,787 ERAC USA Finance 7.350%, 06/15/08 (A) 10,300 10,410 GE Global Insurance 7.750%, 06/15/30 15,000 16,031 Goldman Sachs 6.650%, 05/15/09 10,000 10,091 Household Finance 7.200%, 07/15/06 21,000 21,393 International Lease Finance 5.750%, 10/15/06 5,000 4,917 5.750%, 02/15/07 4,940 4,842 Key Bank 7.000%, 02/01/11 10,000 10,126 Lehman Brothers Holdings 7.875%, 08/15/10 15,000 15,920 MBNA America Bank 6.875%, 07/15/04 15,000 15,424 Merrill Lynch, Series B 6.150%, 01/26/06 10,825 11,024 Money Store 7.300%, 12/01/02 31,795 32,567 Morgan Stanley Dean Witter 5.800%, 04/01/07 7,875 7,838 National Rural Utilities 7.250%, 03/01/12 10,000 9,981 Newcourt Credit Group, Series B 6.875%, 02/16/05 20,000 19,400 Norwest 6.550%, 12/01/06 10,000 10,419 Salomon Smith Barney Holdings 5.875%, 03/15/06 10,000 10,104 --------- 275,183 --------- MANUFACTURING - 6.5% Boeing 7.250%, 06/15/25 15,000 15,240 Ford Motor 7.450%, 07/16/31 15,000 13,592 FIXED INCOME FUND (CONTINUED) DESCRIPTION PAR (000) VALUE (000) - -------------------------------------------- ------------ -------------- Ford Motor Credit 5.800%, 01/12/09 $ 4,000 $ 3,611 General Motors 8.875%, 05/15/03 2,000 2,094 General Motors Acceptance 6.750%, 01/15/06 7,000 7,091 6.150%, 04/05/07 15,000 14,694 Honeywell International 7.000%, 03/15/07 5,000 5,223 IBM 4.875%, 10/01/06 12,500 12,219 Mohawk Industries 7.200%, 04/15/12 (A) 1,000 1,004 Motorola 6.750%, 02/01/06 13,000 12,870 Raytheon 6.450%, 08/15/02 2,595 2,628 Rockwell International 6.750%, 09/15/02 500 509 -------- 90,775 -------- REAL ESTATE - 1.6% Eop Operating 7.750%, 11/15/07 11,325 11,887 Simon Property Group 7.750%, 01/20/11 (A) 10,000 10,231 -------- 22,118 -------- SERVICES - 1.7% AOL Time Warner 7.625%, 04/15/31 10,000 9,974 Comcast Cable Communications 7.125%, 06/15/13 10,000 9,899 Walt Disney 6.375%, 03/01/12 3,500 3,409 -------- 23,282 -------- TRANSPORTATION - 2.2% Burlington Northern Santa Fe 6.375%, 12/15/05 11,825 12,086 Continental Airlines, Series 99-2 7.056%, 09/15/09 11,500 11,176 Northwest Airlines, Series 991A 6.810%, 02/01/20 9,140 8,025 -------- 31,287 -------- UTILITIES - 4.9% Alltel 6.750%, 09/15/05 10,000 10,108 AT&T 5.625%, 03/15/04 1,000 997 6.500%, 11/15/06 7,000 6,870 Nortel Networks 6.875%, 10/01/02 1,000 985 Ohio Valley Electric 5.940%, 02/12/06 (A) (E) 8,000 7,913 Verizon, Series B 7.375%, 04/01/32 10,000 9,950 Worldcom 7.875%, 05/15/03 8,000 7,844 7.500%, 05/15/11 10,000 8,313 XCEL Energy 7.000%, 12/01/10 15,000 14,614 -------- 67,594 -------- The accompanying notes are an integral part of the financial statements. (8 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2002 FIXED INCOME FUND (CONTINUED) DESCRIPTION PAR (000) VALUE (000) - -------------------------------------------- ------------ -------------- YANKEE - 1.0% Quebec Province 7.000%, 01/30/07 $ 3,000 $ 3,174 7.500%, 09/15/29 10,000 10,855 --------- 14,029 --------- TOTAL CORPORATE BONDS 565,136 --------- U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES - 18.4% ADJUSTABLE RATE (B) - 0.0% GNMA Pool 7.750%, 08/20/23, #8259 11 11 --------- FIXED RATE - 18.4% FHLMC Gold Pool 6.500%, 04/01/29, #C00742 11,733 11,726 6.500%, 01/01/30, #C55738 10,030 10,024 FHLMC TBA 6.000%, 03/01/17 (C) 25,000 24,936 FNMA Pool 6.255%, 09/01/13, #360500 6,500 6,432 5.500%, 02/01/14, #440780 20,763 20,464 7.000%, 02/01/15, #535206 6,041 6,265 7.000%, 08/01/16, #591038 15,283 15,817 7.000%, 04/01/26, #340798 5,468 5,608 7.000%, 05/01/26, #250551 5,305 5,441 6.000%, 12/01/28, #456276 11,609 11,319 6.000%, 05/01/29, #323715 16,441 16,030 6.500%, 07/01/29, #252570 12,984 12,964 6.000%, 03/01/31, #575664 30,330 29,420 6.000%, 04/01/31, #535822 13,873 13,457 6.000%, 05/01/31, #511797 11,050 10,719 FNMA TBA 6.500%, 06/01/15 (C) 23,500 23,882 6.500%, 06/01/30 (C) 10,000 9,944 GNMA Pool 6.500%, 06/15/26, #423801 3,039 3,049 7.000%, 04/15/29, #506639 3,330 3,399 7.500%, 11/15/30, #537699 14,796 15,383 --------- 256,279 --------- TOTAL U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES 256,290 --------- U.S. GOVERNMENT & AGENCY SECURITIES - 16.6% U.S. AGENCY DEBENTURES - 6.1% FHLB 6.090%, 06/02/06 12,000 12,438 FHLMC 5.250%, 01/15/06 3,000 3,029 5.750%, 04/15/08 22,600 22,788 6.000%, 06/15/11 13,500 13,454 FNMA 6.625%, 09/15/09 3,000 3,137 6.250%, 02/01/11 10,000 10,095 6.625%, 11/15/30 20,000 20,120 --------- 85,061 --------- FIXED INCOME FUND (CONTINUED) DESCRIPTION PAR (000) VALUE (000) - -------------------------------------------- ------------ -------------- U.S. TREASURIES - 10.5% U.S. Treasury Bonds 11.250%, 02/15/15 $ 11,000 $ 16,391 7.500%, 11/15/16 1,250 1,436 8.750%, 05/15/17 1,500 1,914 8.875%, 08/15/17 2,865 3,696 8.875%, 02/15/19 3,150 4,102 8.750%, 08/15/20 4,183 5,432 8.000%, 11/15/21 1,050 1,286 7.125%, 02/15/23 3,000 3,379 6.250%, 08/15/23 20,000 20,481 6.875%, 08/15/25 25,000 27,575 U.S. Treasury Notes 7.250%, 05/15/04 7,000 7,490 5.875%, 11/15/04 1,600 1,670 6.500%, 08/15/05 2,750 2,925 U.S. Treasury Notes (TIPS) 3.500%, 01/15/11 24,648 24,981 3.875%, 04/15/29 21,544 22,879 --------- 145,637 --------- TOTAL U.S. GOVERNMENT & AGENCY SECURITIES 230,698 --------- ASSET-BACKED SECURITIES - 9.2% AUTOMOBILES - 2.4% Capital One Auto Finance Trust Series 2001-A, Class A4 5.400%, 05/15/08 10,000 10,194 Daimler Chrysler Auto Trust Series 2000-C, Class A3 6.820%, 09/06/04 10,000 10,249 World Omni Auto Receivables Trust Series 2001-B, Class A4 4.490%, 08/20/08 13,000 12,877 --------- 33,320 --------- COMMERCIAL - 5.0% Asset Securitization Series 1996-MD6, Class A1B 6.880%, 11/13/29 18,600 19,323 Bank of America - First Union NB Commercial Mortgage Series 2001-3, Class A1 4.890%, 04/11/37 9,852 9,388 FNMA REMIC Series 1998-M1, Class A2 6.250%, 01/25/08 7,500 7,613 J.P. Morgan Commercial Mortgage Finance, Series 1995-C1, Class B 7.774%, 07/25/10 (B) 3,734 3,814 Merrill Lynch Mortgage Investors Series 1993-C, Class A4 2.875%, 03/15/18 (B) 4,843 4,876 Series 1995-C3, Class A3 6.540%, 12/26/25 (B) 13,493 14,020 Morgan Stanley Capital Investments Series 1999-FNV1, Class A1 6.120%, 03/15/31 9,525 9,740 --------- 68,774 --------- FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2002 9) SCHEDULE OF Investments March 31, 2002 (unaudited) FIXED INCOME FUND (CONTINUED) DESCRIPTION PAR (000) VALUE (000) - -------------------------------------------- ------------ -------------- CREDIT CARDS - 1.3% Sears Credit Account Master Trust Series 1999-2, Series A 6.350%, 02/16/07 $ 18,333 $ 18,675 --------- MANUFACTURED HOUSING - 0.5% Green Tree Financial Series 1993-4, Class A4 6.600%, 01/15/19 6,718 6,877 --------- TOTAL ASSET-BACKED SECURITIES 127,646 ---------- CMO - PRIVATE MORTGAGE-BACKED SECURITIES - 5.6% FIXED RATE - 3.6% GE Capital Mortgage Services Series 1994-17, Class A6 7.000%, 05/25/24 7,000 7,216 Series 1994-17, Class A7 7.000%, 05/25/24 5,179 5,194 Washington Mutual Series 1999-WM2, Class 2A 7.000%, 11/19/14 5,980 6,164 Series 2001-AR6, Class A5 5.603%, 01/26/32 16,500 16,320 Series 2002-AR4, Class A7 5.598%, 04/25/32 15,000 14,841 ---------- 49,735 ---------- Z-BONDS (D) - 2.0% GE Capital Mortgage Services Series 1994-6, Class A9 6.500%, 09/25/22 11,683 11,827 Vendee Mortgage Trust Series 1996-1, Class Z 6.750%, 02/15/26 15,813 16,047 ---------- 27,874 ---------- TOTAL CMO - PRIVATE MORTGAGE-BACKED SECURITIES 77,609 ---------- CMO - U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES - 4.1% FIXED RATE - 2.3% FHLMC Series 1723, Class PJ 7.000%, 02/15/24 7,133 7,141 Series 1699, Class TD 6.000%, 03/15/24 10,000 9,949 FNMA Series 1991-1, Class PG 6.500%, 04/25/28 15,343 15,090 ---------- 32,180 ---------- Z-BONDS (D) - 1.8% FHLMC Series 1677, Class Z 7.645%, 07/15/23 5,490 5,787 Series 1665, Class KZ 6.500%, 01/15/24 9,822 9,531 FNMA Series 1996-35, Class Z 7.000%, 07/25/26 8,911 8,941 ---------- 24,259 ---------- TOTAL CMO - U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES 56,439 ---------- FIXED INCOME FUND (CONCLUDED) DESCRIPTION SHARES VALUE (000) - -------------------------------------------- ------------ -------------- RELATED PARTY MONEY MARKET FUND - 7.8% First American Prime Obligations Fund (F) 107,942,979 $ 107,943 ----------- TOTAL RELATED PARTY MONEY MARKET FUND 107,943 ----------- TOTAL INVESTMENTS - 102.3% (Cost $1,411,820) 1,421,761 ----------- OTHER ASSETS AND LIABILITIES, NET - (2.3)% (31,672) ----------- TOTAL NET ASSETS - 100.0% $ 1,390,089 ----------- (A) Security sold within the terms of a private placement memorandum, exempt from registration under section 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other "qualified institutional investors." These securities have been determined to be liquid under the guidelines established by the Board of Directors. (B) Variable Rate Security - The rate shown is the rate in effect as of March 31, 2002. (C) On March 31, 2002, the total cost of investments purchased on a when-issued basis was $59,062,405. (D) Z-Bonds - Represents securities that pay no interest or principal during their accrual periods, but accrue additional principal at specified rates. Interest rate disclosed represents current yield based upon the cost basis and estimated future cash flows. (E) Securities considered illiquid or restricted. See also the notes to the financial statements. (F) This money market fund is advised by U.S. Bancorp Asset Management, Inc., which also serves as advisor for this Fund. See also the notes to the financial statements. CMO - Collateralized Mortgage Obligation FHLB - Federal Home Loan Bank FHLMC - Federal Home Loan Mortgage Corporation FNMA - Federal National Mortgage Association GNMA - Government National Mortgage Association TBA - To Be Announced TIPS - Treasury Inflation Protection Security The accompanying notes are an integral part of the financial statements. (10 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2002 HIGH YIELD BOND FUND DESCRIPTION PAR (000) VALUE (000) - -------------------------------------------- ------------ -------------- HIGH YIELD CORPORATE BONDS - 88.0% CONSUMER GOODS - 5.5% Constellation Brands, Series B, Callable 01/15/07 @ 104.06 8.125%, 01/15/12 $ 250 $ 255 Fleming Companies, Series B, Callable 07/31/02 @ 105.31 10.625%, 07/31/07 1,000 1,017 Ingles Markets, Callable 12/01/06 @ 104.44 8.875%, 12/01/11 (A) 500 501 Playtex Family Products, Callable 06/01/06 @ 104.69 9.375%, 06/01/11 500 530 Simmons, Callable 03/15/04 @ 105.12 10.250%, 03/15/09 500 527 ------- 2,830 ------- ENERGY - 5.9% Parker Drilling, Series D, Callable 05/20/02 @ 104.87 9.750%, 11/15/06 1,000 1,027 Swift Energy, Callable 08/01/04 @ 105.12 10.250%, 08/01/09 1,000 1,035 Tesoro Petroleum, Series B, Callable 11/01/05 @ 104.81 9.625%, 11/01/08 1,000 1,010 ------- 3,072 ------- FINANCE - 3.4% Finova Group 7.500%, 11/15/09 500 180 Golden State Holdings 7.125%, 08/01/05 500 496 Sovereign Bancorp 10.500%, 11/15/06 1,000 1,079 ------- 1,755 ------- MANUFACTURING - 11.7% AK Steel, Callable 05/20/02 @ 104.56 9.125%, 12/15/06 1,000 1,042 Applied Extrusion Technologies, Series B, Callable 07/01/06 @ 105.37 10.750%, 07/01/11 500 527 Avaya, Callable 04/01/06 @ 105.56 11.125%, 04/01/09 500 490 B E Aerospace, Callable 11/01/03 @ 104.75 9.500%, 11/01/08 500 470 Lear, Series B 8.110%, 05/15/09 500 515 Lyondell Chemical, Callable 05/01/04 @ 105.44 10.875%, 05/01/09 500 480 Owens-Brockway Glass Container, Callable 02/15/06 @ 104.44 8.875%, 02/15/09 (A) (B) 1,000 1,012 Schuler Homes, Callable 07/15/05 @ 104.69 9.375%, 07/15/09 (A) 1,000 1,045 Sequa 9.000%, 08/01/09 500 500 ------- 6,081 ------- HIGH YIELD BOND FUND (CONTINUED) DESCRIPTION PAR (000) VALUE (000) - -------------------------------------------- ------------ -------------- REAL ESTATE - 1.0% Meristar Hospitality 9.125%, 01/15/11 (A) (B) $ 500 $ 508 ------- SERVICES - 46.4% Adelphia Communications, Series B 9.875%, 03/01/07 1,000 920 Allied Waste North America, Series B, Callable 08/01/04 @ 105 10.000%, 08/01/09 1,000 1,012 Autonation 9.000%, 08/01/08 500 527 Bally Total Fitness Holdings, Series D, Callable 10/15/02 @ 104.94 9.875%, 10/15/07 500 500 Charter Communications Holdings, Callable 01/15/05 @ 105.87 11.750%, 01/15/10 (C) 1,500 1,027 Corus Entertainment, Callable 03/01/07 @ 104.28 8.750%, 03/01/12 (A) (B) 500 515 Coventry Health Care, Callable 02/15/07 @ 104.06 8.125%, 02/15/12 (A) (B) 750 756 CSC Holdings, Series B 7.625%, 04/01/11 1,000 962 Dominos, Series B, Callable 01/15/04 @ 105.19 10.375%, 01/15/09 500 542 Echostar DBS, Callable 01/15/06 @ 104.56 9.125%, 01/15/09 (A) (B) 1,000 1,025 Fisher Scientific International, Callable 02/01/03 @ 104.50 9.000%, 02/01/08 1,000 1,035 Hanger Orthopedic, Callable 02/15/06 @ 105.19 10.375%, 02/15/09 (A) (B) 350 367 HCA Columbia Healthcare 8.750%, 09/01/10 1,000 1,093 Healthsouth, Callable 10/01/04 @ 105.37 10.750%, 10/01/08 1,000 1,095 IASIS Healthcare, Callable 10/15/04 @ 106.50 13.000%, 10/15/09 500 495 Isle of Capri Casinos, Callable 04/15/04 @ 104.38 8.750%, 04/15/09 1,000 1,005 ITT 6.750%, 11/15/05 1,000 990 Mandalay Resort, Series B 10.250%, 08/01/07 500 541 MGM Mirage 8.375%, 02/01/11 500 513 Park Place Entertainment 8.875%, 09/15/08 500 518 Paxson Communications, Callable 01/15/06 @ 106.12 12.250%, 01/15/09 (A) (B) 750 544 Penn National Gaming, Callable 03/15/06 @ 104.44 8.875%, 03/15/10 500 498 Resort International Hotel & Casino, Callable 03/15/07 @ 106 11.500%, 03/15/09 (A) 750 709 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2002 11) SCHEDULE OF Investments March 31, 2002 (unaudited) HIGH YIELD BOND FUND (CONTINUED) DESCRIPTION PAR (000) VALUE (000) - -------------------------------------------- ------------ -------------- Rite Aid 7.125%, 01/15/07 $ 1,000 $ 720 Rotech Healthcare, Callable 04/01/07 @ 104.75 9.500%, 04/01/12 (A) 750 769 Royal Caribbean Cruises 8.250%, 04/01/05 1,000 975 Sbarro, Callable 09/15/04 @ 105.50 11.000%, 09/15/09 1,000 1,030 Service Corporate International 6.000%, 12/15/05 1,000 920 Six Flags, Callable 02/01/06 @ 104.44 8.875%, 02/01/10 (A) (B) 500 508 Time Warner Telecom LLC, Callable 07/15/03 @ 104.87 9.750%, 07/15/08 500 335 Tricon Global Restaurant 8.875%, 04/15/11 1,000 1,070 United Rentals, Series B, Callable 04/15/05 @ 105.37 10.750%, 04/15/08 500 546 -------- 24,062 -------- TRANSPORTATION - 2.7% Continental Airlines, Series 01-1 7.033%, 06/15/11 985 892 Northwest Airlines 9.875%, 03/15/07 500 491 -------- 1,383 -------- UTILITIES - 10.4% AES 9.375%, 09/15/10 500 393 Allegiance Telecom, Callable 05/15/03 @ 106.44 12.875%, 05/15/08 500 210 Calpine 8.500%, 02/15/11 500 398 CMS Energy 8.500%, 04/15/11 1,000 1,035 Crown Castle, Callable 08/01/05 @ 105.37 10.750%, 08/01/11 1,000 895 Mission Energy Holdings 13.500%, 07/15/08 500 545 Panamsat, Callable 02/01/07 @ 104.25 8.500%, 02/01/12 (A) (B) 1,000 990 Triton PCS, Callable 11/15/06 @ 104.38 8.750%, 11/15/11 1,000 940 -------- 5,406 -------- HIGH YIELD BOND FUND (CONCLUDED) DESCRIPTION PAR (000)/SHARES VALUE (000) - ---------------------------------------- ---------------- -------------- YANKEE - 1.0% Biovail, Callable 04/01/06 @ 103.94 7.875%, 04/01/10 $ 500 $ 494 -------- TOTAL HIGH YIELD CORPORATE BONDS 45,591 -------- CORPORATE BONDS - 3.6% MANUFACTURING - 3.6% Nortel Networks 6.125%, 02/15/06 500 373 Phelps Dodge 8.750%, 06/01/11 500 485 Pulte Homes 7.875%, 08/01/11 1,000 1,002 -------- TOTAL CORPORATE BONDS 1,860 -------- MUTUAL FUNDS - 3.8% OPEN END FUNDS - 3.8% Goldman Sachs High Yield Fund 135 1,002 Northeast Investors Trust 125 960 -------- TOTAL MUTUAL FUNDS 1,962 -------- U.S. GOVERNMENT & AGENCY SECURITIES - 2.0% U.S. TREASURY SECURITIES - 2.0% U.S. Treasury Notes 5.750%, 11/15/05 500 520 5.500%, 05/15/09 500 506 -------- TOTAL U.S. GOVERNMENT & AGENCY SECURITIES 1,026 -------- RELATED PARTY MONEY MARKET FUND - 0.4% First American Prime Obligations Fund (D) 232,630 233 -------- TOTAL RELATED PARTY MONEY MARKET FUND 233 -------- TOTAL INVESTMENTS - 97.8% (Cost $51,253) 50,672 -------- OTHER ASSETS AND LIABILITIES, NET - 2.2% 1,163 -------- TOTAL NET ASSETS - 100.0% $ 51,835 -------- (A) Security sold within the terms of a private placement memorandum, exempt from registration under section 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other "qualified institutional investors." These securities have been determined to be liquid under the guidelines established by the Board of Directors. (B) Securities considered illiquid or restricted. See also the notes to the financial statements. (C) Delayed Interest (Step-Bonds) - Represents securities that remain zero-coupon securities until a predetermined date at which time the stated coupon rate becomes effective and interest becomes payable at regular intervals. The interest rates disclosed represent current yields at March 31, 2002, based upon the estimated timing and amount of future interest and principal payments. (D) This money market fund is advised by U.S. Bancorp Asset Management, Inc., which also serves as advisor for this Fund. See also the notes to the financial statements. The accompanying notes are an integral part of the financial statements. (12 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2002 INTERMEDIATE TERM BOND FUND DESCRIPTION PAR (000) VALUE (000) - -------------------------------------------- ------------ -------------- U.S. GOVERNMENT & AGENCY SECURITIES - 44.4% U.S. AGENCY DEBENTURES - 17.5% FFCB 4.250%, 07/01/03 $ 10,000 $ 10,116 6.100%, 11/04/04 6,350 6,612 5.750%, 09/01/05 5,000 5,141 5.930%, 06/10/08 3,000 3,046 5.870%, 09/02/08 3,000 3,025 5.240%, 10/01/08 5,000 4,874 FHLB 4.500%, 07/07/03 10,000 10,149 6.250%, 08/13/04 3,000 3,135 6.060%, 05/24/06 5,000 5,183 6.090%, 06/02/06 4,000 4,146 6.375%, 08/15/06 6,000 6,283 5.795%, 06/19/08 5,500 5,546 5.890%, 06/30/08 3,000 3,040 5.540%, 01/08/09 4,500 4,451 7.375%, 02/12/10 3,000 3,277 FHLMC 5.750%, 07/15/03 10,000 10,307 6.875%, 01/15/05 8,000 8,496 5.950%, 01/19/06 6,000 6,203 6.000%, 06/15/11 4,000 3,986 5.500%, 09/15/11 14,000 13,454 FNMA 6.250%, 11/15/02 5,000 5,120 4.750%, 11/14/03 15,000 15,257 5.125%, 02/13/04 5,000 5,112 6.400%, 09/27/05 6,000 6,296 6.000%, 12/15/05 375 389 TVA 6.000%, 09/24/02 5,000 5,092 6.375%, 06/15/05 8,000 8,324 --------- 166,060 --------- U.S. TREASURIES - 26.9% U.S. Treasury Bonds 11.625%, 11/15/02 5,000 5,285 13.750%, 08/15/04 8,000 9,760 9.875%, 11/15/15 23,000 31,583 U.S. Treasury Bond (STRIPS) 11.625%, 11/15/04 74,900 67,086 U.S. Treasury Notes 5.500%, 03/31/03 14,000 14,388 5.500%, 05/31/03 5,000 5,148 7.250%, 05/15/04 5,000 5,350 5.500%, 05/15/09 2,500 2,532 11.250%, 02/15/15 57,250 85,310 5.500%, 08/15/28 31,000 28,894 --------- 255,336 --------- TOTAL U.S. GOVERNMENT & AGENCY SECURITIES 421,396 --------- INTERMEDIATE TERM BOND FUND (CONTINUED) DESCRIPTION PAR (000) VALUE (000) - -------------------------------------------- ------------ -------------- CORPORATE BONDS - 34.2% CONSUMER GOODS - 0.8% Brown-Forman 7.380%, 05/10/05 $ 1,000 $ 1,067 Campbell Soup 6.900%, 10/15/06 1,000 1,046 Cendant 7.750%, 12/01/03 1,880 1,930 Coca-Cola Enterprises 6.700%, 10/15/36 2,000 2,076 General Mills 8.900%, 03/15/06 1,000 1,113 Proctor & Gamble 8.000%, 11/15/03 50 53 -------- 7,285 -------- ENERGY - 2.2% Conoco 5.900%, 04/15/04 6,500 6,674 Dynegy 6.875%, 07/15/02 7,100 7,064 El Paso Energy 6.750%, 05/15/09 5,000 4,840 Texaco Capital 7.090%, 02/01/07 1,000 1,037 Union Texas Petroleum 8.500%, 04/15/07 1,000 1,119 -------- 20,734 -------- FINANCE - 17.2% ABN AMRO 7.250%, 05/31/05 1,600 1,693 7.550%, 06/28/06 5,000 5,338 Aetna Services 6.750%, 09/15/13 1,375 1,401 Amsouth Bancorp 7.750%, 05/15/04 1,500 1,590 Associated P&C Holdings 6.750%, 07/15/03 1,500 1,540 Associates 6.875%, 02/01/03 50 52 7.230%, 05/17/06 1,000 1,055 Banco Santander 6.500%, 11/01/05 3,450 3,491 Bank of America 10.000%, 02/01/03 2,000 2,113 7.125%, 09/15/06 5,000 5,330 Bank of Boston 6.375%, 04/15/08 1,450 1,431 Bank of Oklahoma 7.125%, 08/15/07 1,300 1,315 Bank One 6.625%, 04/15/03 50 51 Bankers Trust 8.125%, 05/15/02 6,000 6,043 7.250%, 01/15/03 500 516 Bear Stearns 6.250%, 07/15/05 150 152 6.875%, 10/01/05 5,000 5,175 Boatmens 8.625%, 11/15/03 400 429 Chase Manhattan 7.125%, 03/01/05 500 516 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2002 13) SCHEDULE OF Investments March 31, 2002 (unaudited) INTERMEDIATE TERM BOND FUND (CONTINUED) DESCRIPTION PAR (000) VALUE (000) - -------------------------------------------- ------------ -------------- Cigna 7.400%, 01/15/03 $ 3,075 $ 3,156 Credit Suisse First Boston 5.875%, 08/01/06 3,500 3,531 Donaldson, Lufkin & Jenrette 5.875%, 04/01/02 3,000 3,000 Dresdner Bank 7.250%, 09/15/15 650 669 Exxon Capital 6.625%, 08/15/02 100 102 First Chicago 7.625%, 01/15/03 5,000 5,148 GE Capital Mortgage Service 8.750%, 05/21/07 5,000 5,640 Goldman Sachs 6.250%, 02/01/03 5,000 5,132 Heller Financial 6.375%, 03/15/06 7,000 7,221 Household Finance 6.500%, 01/24/06 5,000 4,998 International Lease Finance 5.700%, 11/03/03 2,000 2,023 John Deere Capital 5.520%, 04/30/04 3,000 3,037 Key Bank 7.000%, 02/01/11 4,000 4,050 Lehman Brothers Holdings 8.750%, 05/15/02 800 806 11.625%, 05/15/05 2,450 2,879 Lehman Brothers Holdings, Putable 08/01/03 @ 100 7.500%, 08/01/26 5,025 5,192 Merrill Lynch 5.750%, 11/04/02 7,000 7,139 8.000%, 06/01/07 500 546 Midland Bank 6.950%, 03/15/11 4,225 4,271 Morgan Stanley Dean Witter 5.800%, 04/01/07 2,000 1,990 National Bank of Hungary 8.875%, 11/01/13 1,350 1,556 National Rural Utilities 6.650%, 10/01/05 100 102 National Westminster Bank 9.375%, 11/15/03 1,700 1,835 Nationsbank 7.750%, 08/15/04 500 536 6.875%, 02/15/05 600 625 NCNB 10.200%, 07/15/15 2,380 2,980 Newcourt Credit Group Series A 7.125%, 12/17/03 1,785 1,785 Series B 6.875%, 02/16/05 6,800 6,596 Norwest Financial 6.125%, 08/01/03 50 52 Paine Webber 7.115%, 01/27/04 3,000 3,152 8.875%, 03/15/05 500 544 Principal Financial 8.200%, 08/15/09 4,500 4,855 INTERMEDIATE TERM BOND FUND (CONTINUED) DESCRIPTION PAR (000) VALUE (000) - -------------------------------------------- ------------ -------------- Safeco 7.875%, 04/01/05 $ 1,000 $ 1,022 Salomon Smith Barney Holdings 6.750%, 02/15/03 1,100 1,134 5.875%, 03/15/06 3,500 3,536 Sanwa Bank 7.400%, 06/15/11 2,000 1,745 St. Paul Companies 7.490%, 11/06/02 25 26 7.500%, 12/20/02 50 51 Standard Federal Bancorp 7.750%, 07/17/06 2,155 2,307 Suntrust Banks 6.125%, 02/15/04 3,000 3,111 Synovus Financial 6.125%, 10/15/03 3,000 3,101 Unitedhealth Group 6.600%, 12/01/03 5,000 5,175 Wells Fargo 8.375%, 05/15/02 300 302 9.125%, 02/01/04 3,000 3,267 Westdeutsche Landesbank 6.750%, 06/15/05 3,000 3,129 Wharf Capital International 8.875%, 11/01/04 800 869 --------- 163,154 --------- MANUFACTURING - 5.3% Applied Materials 7.000%, 09/06/05 1,000 1,036 Computer Associates 6.250%, 04/15/03 275 260 DaimlerChrysler 7.750%, 05/27/03 3,000 3,100 Dupont 8.125%, 03/15/04 1,000 1,069 Electronic Data Systems 7.125%, 10/15/09 5,000 5,185 Ford Motor Credit 7.500%, 01/15/03 800 813 6.125%, 03/20/04 5,000 4,977 7.600%, 08/01/05 5,000 5,088 General Motors Acceptance 5.750%, 11/10/03 1,000 1,007 6.150%, 04/05/07 6,500 6,367 Honeywell International 7.000%, 03/15/07 6,250 6,529 Lubrizol 5.875%, 12/01/08 1,000 942 McDonnell Douglas 6.875%, 11/01/06 5,000 5,093 Praxair 6.900%, 11/01/06 1,000 1,044 Raytheon 6.150%, 11/01/08 1,000 960 Toll Road Investors 0.000%, 02/15/04 (A) (D) 4,800 4,358 Tyco International 4.950%, 08/01/03 3,000 2,857 --------- 50,685 --------- The accompanying notes are an integral part of the financial statements. (14 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2002 INTERMEDIATE TERM BOND FUND (CONTINUED) DESCRIPTION PAR (000) VALUE (000) - -------------------------------------------- ------------ -------------- REAL ESTATE - 0.5% Eop Operating 7.000%, 07/15/11 $ 3,000 $ 2,976 Security Capital Group 7.750%, 11/15/03 1,700 1,786 -------- 4,762 -------- SERVICES - 2.6% Bristol-Myers Squibb 4.750%, 10/01/06 1,725 1,684 Continental Cablevision, Callable 08/01/05 @ 104.75 9.500%, 08/01/13 4,525 5,001 Dayton Hudson 5.875%, 11/01/08 5,000 4,981 Hertz 6.300%, 11/15/06 4,000 4,029 Sears Roebuck 6.540%, 02/20/03 2,000 2,043 Wal-Mart Stores 6.500%, 06/01/03 100 104 3.250%, 09/29/03 5,000 4,978 7.500%, 05/15/04 600 640 Walt Disney 6.750%, 03/30/06 1,000 1,030 -------- 24,490 -------- TRANSPORTATION - 0.9% Air 2 US 10.127%, 10/01/20 1,000 758 America West Airlines 8.540%, 01/02/06 1,347 1,181 Continental Airlines, Series 974C 6.800%, 07/02/07 1,213 1,147 Federal Express 7.890%, 09/23/08 647 691 9.650%, 06/15/12 1,500 1,785 Northwest Airlines 8.130%, 02/01/14 768 682 United Airlines 7.270%, 01/30/13 2,840 2,337 -------- 8,581 -------- UTILITIES - 3.7% AT&T 6.750%, 04/01/04 1,150 1,169 7.000%, 05/15/05 100 100 British Telecom 8.375%, 12/15/10 1,000 1,084 Conectiv 6.730%, 06/01/06 3,000 3,060 FPL Group Capital 7.625%, 09/15/06 1,500 1,598 France Telecom 8.250%, 03/01/11 1,000 1,018 GTE California 6.700%, 09/01/09 1,000 1,008 Metronet Communications, Callable 06/15/03 @ 104.98 9.950%, 06/15/08 2,000 320 Callable 11/01/03 @ 105.31 10.625%, 11/01/08 2,000 380 Oneok 7.750%, 08/15/06 1,100 1,155 INTERMEDIATE TERM BOND FUND (CONTINUED) DESCRIPTION PAR (000) VALUE (000) - -------------------------------------------- ------------ -------------- Pacific Bell 7.250%, 07/01/02 $ 1,065 $ 1,077 PG&E 6.250%, 08/01/03 50 50 PSI Energy 7.850%, 10/15/07 1,600 1,650 Qwest Capital Funding 7.000%, 08/03/09 2,000 1,634 Southwestern Bell 6.560%, 11/15/05 1,000 1,035 Sprint Capital 5.700%, 11/15/03 5,000 4,821 Vodafone Group 7.625%, 02/15/05 (A) 3,500 3,717 Worldcom 7.875%, 05/15/03 3,500 3,432 6.250%, 08/15/03 1,000 956 6.500%, 05/15/04 1,190 1,091 XCEL Energy 7.000%, 12/01/10 5,000 4,871 --------- 35,226 --------- YANKEE - 1.0% Corp Andina De Fomento 7.750%, 03/01/04 750 792 Ford Capital BV 9.875%, 05/15/02 175 176 Hydro-Quebec 11.750%, 02/01/12 2,250 3,131 Korea Electric Power 8.000%, 07/01/02 3,000 3,030 Norsk Hydro 9.000%, 04/15/12 1,350 1,568 Pohang Iron & Steel 7.125%, 07/15/04 875 913 --------- 9,610 --------- TOTAL CORPORATE BONDS 324,527 --------- ASSET-BACKED SECURITIES - 6.0% AUTOMOBILES - 0.8% Capital One Auto Finance Trust Series 2001-A, Class A4 5.400%, 05/15/08 5,000 5,097 Honda Auto Lease Trust Series 1999-A, Class A5 6.650%, 07/15/05 2,050 2,079 --------- 7,176 --------- COMMERCIAL - 0.5% Morgan Stanley Capital Investments Series 1999-FNV1, Class A1 6.120%, 03/15/31 4,665 4,771 --------- CREDIT CARDS - 1.1% Chemical Master Credit Card Trust Series 1995-3, Class A 6.230%, 04/15/05 633 642 Citibank Credit Card Master Trust Series 1997-6, Class A 0.000%, 08/15/06 (D) 1,875 1,691 MBNA Master Credit Card Trust Series 1998-D, Class A 5.800%, 12/15/05 3,000 3,093 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2002 15) SCHEDULE OF Investments March 31, 2002 (unaudited) INTERMEDIATE TERM BOND FUND (CONTINUED) DESCRIPTION PAR (000) VALUE (000) - -------------------------------------------- ------------ -------------- Sears Credit Account Master Trust Series 2000-1, Series A 7.250%, 11/15/07 $ 5,000 $ 5,223 -------- 10,649 -------- HOME EQUITY - 2.7% Advanta Home Equity Loan Trust Series 1993-1, Class A1 5.950%, 03/25/09 313 315 Series 1998-1, Class A2 5.950%, 05/25/09 420 414 Advanta Mortgage Loan Trust Series 1997-1, Class A5 7.350%, 05/25/27 867 895 AFC Home Equity Loan Trust Series 1993-4, Class 1A 5.800%, 02/26/24 970 969 Series 1996-4, Class 1A7 6.860%, 03/25/27 1,722 1,782 Amresco Residential Security Mortgage Series 1997-3, Class A9 6.960%, 03/25/27 2,444 2,505 Contimortgage Home Equity Loan Trust Series 1997-5, Class A5 6.630%, 12/15/20 2,950 3,026 Series 1997-2, Class A9 7.090%, 04/15/28 757 778 Series 1997-3, Class A9 7.120%, 08/15/28 2,389 2,463 Delta Funding Home Equity Loan Trust Series 1997-4, Class A5F 6.670%, 01/25/28 1,538 1,585 EQCC Home Equity Loan Trust Series 1994-1, Class A 5.800%, 03/15/09 527 527 Series 1996-1, Class A4 6.560%, 03/15/23 1,604 1,638 Series 1997-1, Class A7 7.120%, 05/15/28 1,542 1,602 Mellon Residential Funding Series 2001-HEIL1, Class A3 5.945%, 02/25/11 5,000 5,099 Prudential Securities Financial Series 1993-8, Class A 5.775%, 11/15/14 766 778 Series 1994-5, Class A1 5.660%, 05/25/24 784 788 Residential Asset Securities Series 1998-KS1, Class AI9 6.440%, 03/25/28 832 849 -------- 26,013 -------- MANUFACTURED HOUSING - 0.9% Green Tree Financial Series 1994-4, Class A4 7.950%, 07/15/19 230 234 Series 1996-9, Class A5 7.200%, 01/15/28 3,174 3,271 Green Tree Home Improvement Loan Trust Series 1997-E, Class HEA6 6.620%, 01/15/29 4,957 5,108 -------- 8,613 -------- TOTAL ASSET-BACKED SECURITIES 57,222 -------- INTERMEDIATE TERM BOND FUND (CONTINUED) DESCRIPTION PAR (000) VALUE (000) - -------------------------------------------- ------------ -------------- U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES - 5.8% FIXED RATE - 5.8% FHLMC Gold Pool 5.500%, 09/01/06, #G40394 $ 5,283 $ 5,288 5.500%, 03/01/16, #E00960 9,043 8,837 6.000%, 04/01/29, #C00748 3,860 3,766 6.000%, 03/01/31, #C48827 4,549 4,416 FNMA Pool 6.000%, 07/01/06, #252632 2,238 2,270 6.000%, 08/01/08, #050776 626 635 5.500%, 02/01/14, #440780 6,064 5,977 6.000%, 02/01/16, #535791 8,301 8,281 5.500%, 04/01/16, #572856 4,525 4,418 10.000%, 11/01/18, #050145 419 468 9.000%, 12/01/20, #303753 515 547 9.500%, 06/01/21, #341727 296 327 6.000%, 05/01/29, #323715 3,919 3,821 6.000%, 03/01/31, #570874 4,779 4,635 GNMA Pool 9.000%, 08/15/21, #312046 798 868 9.000%, 05/20/25, #002007 192 206 8.500%, 07/20/25, #002038 363 386 -------- TOTAL U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES 55,146 -------- CMO - U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES - 4.6% FIXED RATE - 4.6% FHLMC Series 1902, Class C 7.000%, 05/15/03 682 695 Series 1551, Class E 6.500%, 09/15/07 68 69 Series 1606, Class H 6.000%, 11/15/08 5,085 5,174 Series 2389, Class VA 6.000%, 02/15/11 4,896 4,948 Series 2358, Class PA 6.000%, 06/15/11 5,000 5,114 Series 1167, Class E 7.500%, 11/15/21 203 210 Series 1286, Class A 6.000%, 05/15/22 612 617 Series 1633, Class PK 6.000%, 09/15/22 5,000 5,121 Series 2166, Class AC 6.500%, 03/15/26 5,020 5,090 FNMA Series 1996-57, Class E 7.000%, 06/25/03 615 626 Series 1993-83, Class VD 6.500%, 07/25/04 4,539 4,653 Series 1993-55, Class J 6.500%, 11/25/07 984 1,014 Series 1990-89, Class K 6.500%, 07/25/20 117 117 Series 1996-10, Class C 6.500%, 12/25/23 4,712 4,795 GNMA Series 2001-62, Class VK 6.500%, 01/16/11 4,898 5,015 -------- TOTAL CMO - U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES 43,258 -------- The accompanying notes are an integral part of the financial statements. (16 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2002 INTERMEDIATE TERM BOND FUND (CONCLUDED) DESCRIPTION PAR(000)/SHARES VALUE (000) - -------------------------------------------- --------------- ----------- CMO - PRIVATE MORTGAGE-BACKED SECURITIES - 2.4% FIXED RATE - 2.1% HSBC Mortgage Loan Trust Series 2000-HSB1, Class A3, Callable 07/15/04 @ 100 7.110%, 12/16/30 $ 3,107 $ 3,168 Impac Secured Assets CMN Owner Trust Series 2000-5, Class A2 6.730%, 08/25/26 (C) 3,382 3,416 MDC Asset Investors Trust Series VIII, Class 8 7.750%, 09/25/17 263 265 Northwest Asset Securities Series 1999-15, Class A1 6.250%, 06/25/14 4,832 4,880 Salomon Brothers Mortgage Securities Series 1986-1, Class A 6.000%, 12/25/11 479 481 Washington Mutual Series 1999-WM2, Class 2A 7.000%, 11/19/14 3,039 3,133 Series 2001-AR6, Class A2 3.320%, 01/26/32 4,624 4,612 Westam Mortgage Financial Series 11, Class A 6.360%, 08/26/20 332 335 --------- 20,290 --------- Z-BOND (B) - 0.3% GE Capital Mortgage Services Series 1994-6, Class A9 6.500%, 09/25/22 2,996 3,033 --------- TOTAL CMO - PRIVATE MORTGAGE-BACKED SECURITIES 23,323 --------- RELATED PARTY MONEY MARKET FUND - 2.3% First American Prime Obligations Fund (E) 21,451,628 21,452 --------- TOTAL RELATED PARTY MONEY MARKET FUND 21,452 --------- TOTAL INVESTMENTS - 99.7% (Cost $937,990) 946,324 --------- OTHER ASSETS AND LIABILITIES, NET - 0.3% 3,194 --------- TOTAL NET ASSETS - 100.0% $ 949,518 --------- (A) Security sold within the terms of a private placement memorandum, exempt from registration under section 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other "qualified institutional investors." These securities have been determined to be liquid under the guidelines established by the Board of Directors. (B) Z-Bonds - Represents securities that pay no interest or principal during their accrual periods, but accrue additional principal at specified rates. Interest rate disclosed represents current yield based upon the cost basis and estimated future cash flows. (C) Securities considered illiquid or restricted. See also the notes to the financial statements. (D) Principal only. (E) This money market fund is advised by U.S. Bancorp Asset Management, Inc., which also serves as advisor for this Fund. See also the notes to the financial statements. CMO - Collateralized Mortgage Obligation FFCB - Federal Farm Credit Bank FHLB - Federal Home Loan Bank FHLMC - Federal Home Loan Mortgage Corporation FNMA - Federal National Mortgage Association GNMA - Government National Mortgage Association STRIPS - Separate Trading of Registered Interest and Principal of Securities TVA - Tennessee Valley Authority SHORT TERM BOND FUND DESCRIPTION PAR (000) VALUE (000) - -------------------------------------------- ------------ -------------- ASSET-BACKED SECURITIES - 30.7% AUTOMOBILES - 6.1% Auto Bond Receivables Trust Series 1993-I, Class A 6.125%, 11/15/21 (A) (B) (C) $ 106 $ -- Capital Auto Receivables Asset Trust Series 2001-2, Class A3 4.600%, 09/15/05 1,500 1,522 Capital One Auto Finance Trust Series 2001-A, Class A4 5.400%, 05/15/08 3,000 3,058 Chase Manhattan Auto Owner Trust Series 2001-A, Class A3 4.550%, 08/15/05 2,000 2,026 Daimler Chrysler Auto Trust Series 2000-E, Class A3 6.110%, 11/08/04 6,500 6,704 Series 2000-D, Class A3 6.660%, 01/08/05 4,000 4,119 Ford Credit Auto Owner Trust Series 2000-G, Class A4 6.620%, 07/15/04 2,000 2,058 Series 2001-B, Class A5 5.360%, 06/15/05 3,000 3,067 Honda Auto Lease Trust Series 1999-A, Class A5 6.650%, 07/15/05 2,391 2,425 Household Automotive Trust Series 2001-2, Class A3 4.830%, 03/17/06 3,000 3,050 WFS Financial Owner Trust Series 1999-A ,Class A4 5.700%, 11/20/03 1,218 1,233 -------- 29,262 -------- CREDIT CARDS - 10.4% Capital One Master Trust Series 1998-4, Class A 5.430%, 01/15/07 5,000 5,124 Series 2001-7A, Class A 3.850%, 08/15/07 5,000 4,916 Citibank Credit Card Issuance Trust Series 2001-A8, Class A8 4.100%, 12/07/06 3,700 3,653 Dayton Hudson Credit Card Master Trust Series 1998-1, Class A 5.900%, 05/25/06 3,570 3,674 Discover Card Master Trust Series 2000-9, Class A 6.350%, 01/15/06 2,000 2,073 Series 1993-3, Class A 6.200%, 05/16/06 2,200 2,283 Series 2001-5, Class A 5.300%, 11/15/06 4,980 5,086 Series 1999-6, Class A 6.850%, 07/15/07 5,000 5,262 Household Private Label Credit Card Trust Series 2001-2, Class A 4.950%, 06/16/08 2,000 2,020 MBNA Master Credit Card Trust Series 1997-I, Class A 6.550%, 01/15/07 3,500 3,666 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2002 17) SCHEDULE OF Investments March 31, 2002 (unaudited) SHORT TERM BOND FUND (CONTINUED) DESCRIPTION PAR (000) VALUE (000) - -------------------------------------------- ------------ -------------- Series 1999-M, Class A 6.600%, 04/16/07 $ 2,000 $ 2,091 Sears Credit Account Master Trust Series 1999-2, Class A 6.350%, 02/16/07 2,842 2,895 Series 1999-3, Class A 6.450%, 11/17/09 2,000 2,084 Travelers Bank Credit Card Master Trust Series 1998-1, Class A 6.000%, 01/18/05 5,000 5,138 -------- 49,965 -------- EQUIPMENT LEASES - 1.4% CIT Equipment Collateral Series 2001-1, Class A3 5.230%, 10/20/04 2,000 2,038 Series 2001-A, Class A4 4.840%, 09/20/12 2,500 2,494 First Sierra Receivables Series 2000-2, Class A3 7.490%, 12/18/03 2,237 2,283 -------- 6,815 -------- HOME EQUITY - 9.9% Advanta Home Equity Loan Trust Series 1992-3, Class A1 6.050%, 09/25/08 403 406 Series 1993-2, Class A2 6.150%, 10/25/09 593 593 Series 1993-4, Class A1 5.500%, 03/25/10 656 659 Series 1998-2, Class A12 6.330%, 08/25/19 4,000 4,068 AFC Home Equity Loan Trust Series 1993-1, Class A 5.900%, 05/20/08 676 677 Series 1993-4, Class 1A 5.800%, 02/26/24 667 666 Series 1994-1, Class 1A 6.400%, 05/25/24 629 625 Series 1997-2, Class 1A5 6.970%, 06/25/27 1,551 1,610 Bank One Home Equity Trust Series 1999-2, Class A3 6.940%, 06/25/29 3,745 3,820 Chase Funding Series 1998-1, Class IA4 6.340%, 04/25/25 5,000 5,113 Contimortgage Home Equity Loan Trust Series 1998-2, Class A7 6.570%, 03/15/23 2,000 2,054 Equivantage Home Equity Loan Trust Series 1996-1, Class A 6.550%, 10/25/25 1,141 1,172 Series 1996-4, Class A 6.750%, 01/25/28 2,540 2,608 FHLMC Series T-22, Class A3 6.810%, 12/25/21 4,375 4,451 GE Capital Mortgage Services Series 1996-HE1, Class A4 7.300%, 02/25/25 1,149 1,168 SHORT TERM BOND FUND (CONTINUED) DESCRIPTION PAR (000) VALUE (000) - -------------------------------------------- ------------ -------------- Series 1998-9, Class A2 6.500%, 05/25/28 $ 2,000 $ 2,037 GE Home Equity Loan Trust Series 1991-1, Class B 8.700%, 09/15/11 808 809 Money Store Home Equity Trust Series 1993-B, Class A2 6.975%, 07/15/08 359 373 Series 1993-B, Class A3 6.100%, 05/15/22 754 770 Series 1994-A, Class A4 6.275%, 12/15/22 1,503 1,539 Series 1996-C, Class A6 7.690%, 05/15/24 4,205 4,316 Series 1996-D, Class A7 7.110%, 04/15/25 4,348 4,447 Series 1994-1, Class A4 6.900%, 07/15/38 795 816 Prudential Securities Financial Series 1994-5, Class A1 5.660%, 05/25/24 641 645 Residential Asset Securities Series 2000-KS1, Class AI2 7.700%, 05/25/21 1,318 1,322 Series 2000-R33, Class AI2 7.540%, 09/25/30 775 778 UCFC Home Equity Loan Series 1996-C1, Class A4 7.475%, 03/15/20 66 67 --------- 47,609 --------- MANUFACTURED HOUSING - 1.3% BankAmerica Manufactured Housing Contract Series 1997-2, Class A6 6.470%, 04/10/15 2,585 2,643 Oakwood Mortgage Investors Series 1999-A, Class A2 5.890%, 04/15/29 3,181 3,248 --------- 5,891 --------- RECREATIONAL VEHICLES - 1.6% Distribution Financial Services RV Trust Series 1999-3, Class A4 6.650%, 03/15/11 2,600 2,653 Series 2001-1, Class A3 4.740%, 05/15/13 5,000 4,972 --------- 7,625 --------- TOTAL ASSET-BACKED SECURITIES 147,167 --------- CORPORATE BONDS - 27.8% CONSUMER GOODS - 2.3% Colgate-Palmolive 5.340%, 03/27/06 2,950 2,931 Conagra Foods 7.500%, 09/15/05 3,660 3,871 Unilever Capital 6.750%, 11/01/03 4,000 4,188 --------- 10,990 --------- FINANCE - 17.3% American General Finance 5.750%, 11/01/03 2,887 2,958 Associates 5.800%, 04/20/04 4,998 5,132 The accompanying notes are an integral part of the financial statements. (18 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2002 SHORT TERM BOND FUND (CONTINUED) DESCRIPTION PAR (000) VALUE (000) - -------------------------------------------- ------------ -------------- Bayerische Landesbank 4.125%, 01/14/05 $ 5,000 $ 4,927 Countrywide Funding, Series D 6.875%, 09/15/05 1,500 1,541 Countrywide Home Loan, Series F 6.510%, 02/11/05 1,500 1,545 Countrywide Home Loan, Series J 5.250%, 06/15/04 2,000 2,018 Credit Suisse First Boston 7.750%, 05/15/06 2,050 2,192 ERAC USA Finance 6.375%, 05/15/03 (A) 3,000 3,057 First Chicago 6.875%, 06/15/03 3,000 3,107 Fleetboston Financial 6.875%, 03/01/03 950 981 7.125%, 04/15/06 2,425 2,531 Goldman Sachs 6.625%, 12/01/04 1,500 1,565 Heller Financial 6.000%, 03/19/04 4,000 4,122 Key Bank 7.250%, 06/01/05 4,000 4,208 Lehman Brothers Holdings, Series E 7.125%, 09/15/03 5,370 5,628 Lehman Brothers Holdings, Series F 7.500%, 09/01/06 3,000 3,163 Marsh & McLennan 6.625%, 06/15/04 4,132 4,314 MBNA America Bank 6.875%, 07/15/04 4,000 4,113 Mellon Funding 5.750%, 11/15/03 5,000 5,145 7.500%, 06/15/05 2,100 2,257 Money Store 7.300%, 12/01/02 1,350 1,383 Morgan Stanley Dean Witter 7.750%, 06/15/05 2,500 2,682 Nationsbank, Series B 6.200%, 08/15/03 2,775 2,850 Norwest Financial 6.125%, 08/01/03 5,000 5,171 Paine Webber 6.450%, 12/01/03 1,025 1,069 Reliastar Financial 6.625%, 09/15/03 3,000 3,122 Society 7.250%, 06/01/05 2,000 2,077 -------- 82,858 -------- MANUFACTURING - 1.7% General Motors Acceptance 7.500%, 07/15/05 5,000 5,195 IBM 4.875%, 10/01/06 3,000 2,932 -------- 8,127 -------- SERVICES - 3.2% Abbott Laboratories 5.125%, 07/01/04 4,000 4,062 Target 7.500%, 02/15/05 5,850 6,258 SHORT TERM BOND FUND (CONTINUED) DESCRIPTION PAR (000) VALUE (000) - -------------------------------------------- ------------ -------------- Wal-Mart Stores 3.250%, 09/29/03 $ 5,000 $ 4,971 --------- 15,291 --------- UTILITY - 0.6% Sprint Capital (FON) 7.625%, 06/10/02 3,000 3,014 --------- YANKEE - 2.7% Diageo Capital 6.125%, 08/15/05 6,090 6,191 Ford Capital BV 9.875%, 05/15/02 1,450 1,461 Ontario, Province of Canada 7.625%, 06/22/04 5,000 5,365 --------- 13,017 --------- TOTAL CORPORATE BONDS 133,297 --------- U.S. GOVERNMENT & AGENCY SECURITIES - 19.1% U.S. AGENCY DEBENTURES - 16.8% FHLB 5.375%, 01/05/04 5,725 5,875 5.250%, 02/13/04 7,000 7,171 4.875%, 04/16/04 10,000 10,178 4.875%, 05/14/04 2,000 2,034 4.000%, 02/15/05 5,000 4,929 5.375%, 02/15/06 5,000 5,065 5.375%, 05/15/06 3,000 3,033 FHLMC 7.000%, 07/15/05 3,500 3,740 5.500%, 07/15/06 3,000 3,042 FNMA 4.750%, 03/15/04 5,000 5,079 6.500%, 08/15/04 6,000 6,305 7.000%, 07/15/05 13,375 14,293 4.375%, 10/15/06 5,000 4,827 SLMA 5.000%, 06/30/04 5,000 5,099 --------- 80,670 --------- U.S. TREASURIES - 2.3% U.S. Treasury Notes 7.250%, 05/15/04 9,300 9,951 6.500%, 10/15/06 1,000 1,066 --------- 11,017 --------- TOTAL U.S. GOVERNMENT & AGENCY SECURITIES 91,687 --------- U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES - 10.9% ADJUSTABLE RATE (B) - 5.4% FHLMC Pool 6.952%, 01/01/29, #846946 2,650 2,745 7.634%, 04/01/30, #972055 3,107 3,224 6.090%, 05/01/30, #847014 2,669 2,701 FNMA Pool 6.465%, 06/01/04, #375610 4,763 4,902 5.660%, 02/01/28, #415285 1,942 1,992 GNMA Pool 6.750%, 08/20/21, #8824 1,438 1,485 6.750%, 07/20/22, #8006 1,628 1,683 6.750%, 09/20/25, #8699 1,114 1,152 6.375%, 04/20/26, #8847 998 1,027 6.750%, 08/20/27, #80106 412 425 6.375%, 01/20/28, #80154 557 567 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2002 19) SCHEDULE OF Investments March 31, 2002 (unaudited) SHORT TERM BOND FUND (CONTINUED) DESCRIPTION PAR (000) VALUE (000) - -------------------------------------------- ------------ -------------- 4.500%, 11/20/30, #80469 $ 2,112 $ 2,129 5.500%, 04/20/31, #80507 1,963 1,995 -------- 26,027 -------- FIXED RATE - 5.5% FHLMC 7.750%, 07/01/09 33 35 FHLMC Gold Pool 5.500%, 10/01/06, #M90680 2,633 2,661 FNMA Pool 6.500%, 12/01/03, #535694 1,407 1,416 6.775%, 06/01/31, #625338 4,868 5,138 GNMA Pool 9.000%, 05/15/16, #158777 289 316 9.000%, 04/15/21, #780398 642 708 10.000%, 02/15/25, #780081 483 545 5.250%, 05/20/29, #80283 3,087 3,124 5.250%, 06/20/29, #80291 5,595 5,662 4.500%, 08/20/31, #80535 4,752 4,786 5.500%, 02/20/32, #80580 1,996 2,041 -------- 26,432 -------- TOTAL U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES 52,459 -------- CMO - U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES - 6.1% FIXED RATE - 5.3% FHLMC Series 2043, Class VB 6.000%, 04/15/05 1,528 1,565 Series 2344, Class QP 5.250%, 12/15/05 3,000 3,051 Series 2420, Class MQ 4.500%, 12/15/07 9,600 9,488 Series 2114, Class PC 6.000%, 08/15/16 5,000 5,125 Series 1022, Class J 6.000%, 12/15/20 Series 1759, Class E 265 269 8.250%, 08/15/23 549 569 FNMA Series 1991-63, Class G 6.950%, 05/25/06 121 123 Series 1996-W4, Class A4 6.743%, 12/25/11 2,450 2,484 Series 1993-163, Class PK 6.250%, 10/25/21 2,000 2,038 Series 1992-150, Class MA 5.500%, 09/25/22 907 901 -------- 25,613 -------- Z-BOND (D) - 0.8% FHLMC Series 1541, Class Z 6.750%, 11/15/21 3,584 3,675 -------- TOTAL CMO - U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES 29,288 -------- CMO - PRIVATE MORTGAGE-BACKED SECURITIES - 3.1% ADJUSTABLE RATE (B) - 1.2% Merrill Lynch Mortgage Investors Series 1993-C, Class A4 2.875%, 03/15/18 3,915 3,941 SHORT TERM BOND FUND (CONCLUDED) DESCRIPTION PAR(000)/SHARES VALUE (000) - -------------------------------------------- --------------- ----------- Patten Series 1995-1A 3.225%, 09/01/13 (C) $ 95 $ 83 Sears Mortgage Securities Series 1993-11, Class T5 6.998%, 07/25/23 1,788 1,825 --------- 5,849 --------- FIXED RATE - 1.9% ABN AMRO Mortgage Series 1994-4, Class IA2 6.500%, 06/25/29 4,979 5,054 Countrywide Mortgage Backed Securities Series 1993-B, Class A4 6.750%, 11/25/23 (B) 24 24 First Boston Mortgage Series 1993-M1, Class 1A 6.750%, 09/25/06 1,265 1,295 PNC Mortgage Securities Series 1998-2, Class 5A5 6.625%, 03/25/28 2,000 2,029 Series 1999-5, Class 1A1 6.150%, 07/25/29 582 585 --------- 8,987 --------- TOTAL CMO - PRIVATE MORTGAGE-BACKED SECURITIES 14,836 --------- MUNICIPAL BOND - 0.0% Florida Housing Financial Agency 8.625%, 08/01/02 50 51 --------- TOTAL MUNICIPAL BOND 51 --------- COMMERCIAL PAPER - 0.2% FINANCE - 0.2% Eksportfinans ASA 1.920%, 06/20/02 900 896 --------- TOTAL COMMERCIAL PAPER 896 --------- RELATED PARTY MONEY MARKET FUND - 2.7% First American Prime Obligations Fund (E) 13,107,963 13,108 --------- TOTAL RELATED PARTY MONEY MARKET FUND 13,108 --------- TOTAL INVESTMENTS - 100.6% (Cost $481,773) 482,789 --------- OTHER ASSETS AND LIABILITIES, NET - (0.6)% (2,831) --------- TOTAL NET ASSETS - 100.0% $ 479,958 --------- (A) Security sold within the terms of a private placement memorandum, exempt from registration under section 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other "qualified institutional investors." These securities have been determined to be liquid under the guidelines established by the Board of Directors. (B) Variable Rate Security - The rate shown is the rate in effect as of March 31, 2002. (C) Securities considered illiquid or restricted. See also the notes to financial statements. (D) Z-Bonds - Represents securities that pay no interest or principal during their accrual periods, but accrue additional principal at specified rates. Interest rate disclosed represents current yield based upon the cost basis and estimated future cash flows. (E) This money market fund is advised by U.S. Bancorp Asset Management, Inc., which also serves as advisor for this Fund. See also the notes to the financial statements. CMO - Collateralized Mortgage Obligation FHLB - Federal Home Loan Bank FHLMC - Federal Home Loan Mortgage Corporation FNMA - Federal National Mortgage Association GNMA - Government National Mortgage Association SLMA - Student Loan Marketing Association The accompanying notes are an integral part of the financial statements. (20 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2002 STRATEGIC INCOME FUND DESCRIPTION PAR(000)(J) VALUE (000) - -------------------------------------------- --------------- ----------- HIGH YIELD CORPORATE BONDS - 40.9% CONSUMER GOODS - 2.2% Agrilink Foods, Callable 11/01/03 @ 105.938 11.875%, 11/01/08 $ 500 $ 522 Canandaigua Brands, Callable 03/01/04 @ 104.250 8.500%, 03/01/09 500 512 Fleming, Series B, Callable 07/31/02 @ 105.310 10.625%, 07/31/07 1,000 1,017 Ingles Markets, Callable 12/01/06 @ 104.440 8.875%, 12/01/11 (A) (B) 500 501 Playtex Family Products, Callable 06/01/06 @ 104.688 9.375%, 06/01/11 500 530 Sealy Mattress, Series B, Callable 12/15/02 @ 105.437 10.875%, 12/15/07 (C) 500 489 Simmons, Callable 03/15/04 @ 105.125 10.250%, 03/15/09 500 527 ------- 4,098 ------- ENERGY - 4.0% Ocean Energy, Series B, Callable 07/15/02 @ 104.438 8.875%, 07/15/07 1,000 1,047 Parker Drilling, Series D, Callable 05/28/02 @ 104.870 9.750%, 11/15/06 1,000 1,027 Petrobas International 9.750%, 07/06/11 850 875 Petroplus Funding, Callable 10/15/05 @ 105.250 10.500%, 10/15/10 (A) (B) (D) EU 2,750 2,483 Pogo Producing, Series B, Callable 05/15/02 @ 104.375 8.750%, 05/15/07 500 516 Swift Energy, Callable 08/01/04 @ 105.120 10.250%, 08/01/09 1,000 1,035 Vintage Petroleum, Callable 05/24/02 @ 104.310 8.625%, 02/01/09 500 475 ------- 7,458 ------- FINANCE - 4.0% Bluewater Finance, Callable 02/15/08 @ 105.120 10.250%, 02/15/12 (A) (B) 1,300 1,352 Cellco Finance, Callable 08/01/02 @ 107.500 15.000%, 08/01/05 (D) 900 855 Finova Group 7.500%, 11/15/09 1,000 360 Golden State Holdings 7.125%, 08/01/05 1,000 991 Sovereign Bancorp 10.500%, 11/15/06 1,000 1,079 United Rentals, Series B, Callable 01/15/04 @ 104.625 9.250%, 01/15/09 1,000 1,015 STRATEGIC INCOME FUND (CONTINUED) DESCRIPTION PAR(000)(J) VALUE (000) - -------------------------------------------- --------------- ----------- Yell Finance BV, Callable 08/01/06 @ 105.370 10.750%, 08/01/11 $ 1,000 $ 1,090 Callable 08/01/06 @ 106.750 13.500%, 08/01/11 (C) 1,000 670 ------- 7,412 ------- MANUFACTURING - 5.2% Aftermarket Technology, Callable 04/08/02 @ 102.000 12.000%, 08/01/04 (A) 412 420 AK Steel, Callable 05/24/02 @ 104.560 9.125%, 12/15/06 1,000 1,042 American Standard 7.375%, 02/01/08 1,000 1,010 Applied Extrusion Technologies, Series B, Callable 07/01/06 @ 105.370 10.750%, 07/01/11 (A) 500 527 Buckeye Technologies, Callable 09/15/02 @ 103.080 9.250%, 09/15/08 1,000 850 Collins & Aikman Products, Callable 05/24/02 @ 105.750 11.500%, 04/15/06 425 392 Diamond Brands Operating, Callable 04/15/03 @ 105.063 10.125%, 04/15/08 (B) (E) 50 -- Glenoit, Callable 04/15/02 @ 105.500 11.000%, 04/15/07 (B) (E) 100 -- Lear, Series B 8.110%, 05/15/09 1,000 1,030 Lyondell Chemical, Callable 05/01/04 @ 105.440 10.875%, 05/01/09 1,000 960 Owens-Brockway Glass Container, Callable 02/15/06 @ 104.440 8.875%, 02/15/09 (A) 1,000 1,012 Polymer Group, Series B, Callable 03/01/03 @ 104.375 8.750%, 03/01/08 (E) 500 150 Schuler Homes, Callable 07/15/05 @ 104.69 9.375%, 07/15/09 1,000 1,045 Sequa 9.000%, 08/01/09 1,000 1,000 Telecommunications Techniques, Callable 05/15/03 @ 104.875 9.750%, 05/15/08 725 196 ------- 9,634 ------- REAL ESTATE - 0.3% Meristar Hospitality 9.125%, 01/15/11 (A) (B) 500 508 ------- SERVICES - 15.1% Acme Television, Series B, Callable 05/24/02 @ 105.440 10.875%, 09/30/04 (C) 500 507 Adelphia Communications, Series B 9.875%, 03/01/07 1,000 920 Allied Waste North America, Series B, Callable 08/01/04 @ 105.000 10.000%, 08/01/09 1,000 1,012 Autonation 9.000%, 08/01/08 1,000 1,055 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2002 21) SCHEDULE OF Investments March 31, 2002 (unaudited) STRATEGIC INCOME FUND (CONTINUED) DESCRIPTION PAR(000)(J) VALUE (000) - -------------------------------------------- --------------- ----------- Charter Communications Holdings, Callable 01/15/05 @ 105.875 11.750%, 01/15/10 (C) $ 2,000 $ 1,370 Crown Castle International, Callable 05/15/04 @ 105.187 10.375%, 05/15/11 (C) 625 369 Callable 08/01/04 @ 105.625 11.250%, 08/01/11 (C) 700 416 CSC Holdings, Series B 7.625%, 04/01/11 500 481 Callable 02/15/03 @ 104.800 9.875%, 02/15/13 750 787 Dominos, Series B, Callable 01/15/04 @ 105.188 10.375%, 01/15/09 600 651 Echostar DBS, Callable 01/15/06 @ 104.560 9.125%, 01/15/09 (A) (B) 1,000 1,025 Fisher Scientific International, Callable 02/01/03 @ 104.500 9.000%, 02/01/08 450 466 Callable 02/01/03 @ 104.500 9.000%, 02/01/08 550 569 Florida Panthers Holdings, Callable 04/15/04 @ 104.938 9.875%, 04/15/09 1,000 1,065 Fox Sports Networks, Callable 08/15/02 @ 104.875 9.750%, 08/15/07 (C) 575 587 Grupo Elektra SA, Callable 04/01/04 @ 106.000 12.000%, 04/01/08 (D) 2,500 2,600 Healthsouth, Callable 10/01/04 @ 105.375 10.750%, 10/01/08 (A) 500 548 HMH Properties, Series B, Callable 08/01/03 @ 103.990 7.875%, 08/01/08 1,025 1,015 Hollinger International Publishing, Callable 05/24/02 @ 103.090 9.250%, 02/01/06 (H) 700 718 Isle of Capri Casinos, Callable 04/15/04 @ 104.375 8.750%, 04/15/09 1,000 1,005 Lamar Media, Callable 09/15/02 @ 104.313 8.625%, 09/15/07 500 523 Mandalay Resort Group, Series B 10.250%, 08/01/07 1,000 1,083 Mohegan Tribal Gaming 8.125%, 01/01/06 1,000 1,025 NTL, Series B, Callable 04/01/03 @ 104.875 9.750%, 04/01/08 (C) 1,475 487 Pegasus Communications, Series B, Callable 12/01/02 @ 104.875 9.750%, 12/01/06 300 225 Penn National Gaming, Callable 03/15/06 @ 104.440 8.875%, 03/15/10 500 498 Premier Parks, Callable 04/01/03 @ 105.000 10.000%, 04/01/08 (C) 1,500 1,431 STRATEGIC INCOME FUND (CONTINUED) DESCRIPTION PAR(000)(J) VALUE (000) - -------------------------------------------- --------------- ----------- Resorts International, Callable 03/15/07 @ 106.000 11.500%, 03/15/09 (A) $ 750 $ 709 Sbarro, Callable 09/15/04 @ 105.500 11.000%, 09/15/09 1,000 1,030 Service Corporate International 6.000%, 12/15/05 1,000 920 Sinclair Broadcast Group, Callable 12/15/02 @ 104.375 8.750%, 12/15/07 (H) 1,000 1,028 Telewest Communications, Callable 05/28/02 @ 100.000 11.000%, 10/01/07 (C) 575 290 Triad Hospital Holdings, Series B, Callable 05/15/04 @ 105.500 11.000%, 05/15/09 500 555 Tricon Global Restaurant 7.650%, 05/15/08 1,000 1,015 -------- 27,985 -------- TRANSPORTATION - 1.4% CHC Helicopter, Callable 07/15/04 @ 105.875 11.750%, 07/15/07 EU 2,000 1,893 Stena, Callable 05/29/02 @ 103.940 10.500%, 12/15/05 150 152 Callable 06/15/02 @ 104.375 8.750%, 06/15/07 525 504 -------- 2,549 -------- UTILITIES - 7.6% AES 9.375%, 09/15/10 1,000 785 Allegiance Telecom, Series B, Callable 02/15/03 @ 105.875 11.750%, 02/15/08 (C) 1,000 300 Calpine 7.625%, 04/15/06 1,000 800 CMS Energy 7.500%, 01/15/09 1,000 1,003 Grupo Iusacell SA de CV 14.250%, 12/01/06 1,500 1,545 Innova S de R.L., Callable 04/01/02 @ 106.438 12.875%, 04/01/07 (D) 2,100 1,911 Jazztel, Callable 04/01/04 @ 107.000 14.000%, 04/01/09 EU 2,000 419 Millicom International Cellular, Callable 06/01/02 @ 104.500 13.500%, 06/01/06 (C) 625 356 Mobile Telesystems 10.950%, 12/21/04 (A) 1,000 1,020 Netia Holdings, Series B, Callable 11/01/02 @ 105.625 11.250%, 11/01/07 (E) 2,600 364 Nextel International, Callable 04/15/03 @ 106.063 12.125%, 04/15/08 (C) 75 4 The accompanying notes are an integral part of the financial statements. (22 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2002 STRATEGIC INCOME FUND (CONTINUED) DESCRIPTION PAR(000)(J) VALUE (000) - -------------------------------------------- --------------- ----------- Partner Communications, Series DTC, Callable 08/15/05 @ 106.500 13.000%, 08/15/10 $ 2,100 $ 2,121 PG&E National Energy Group 10.375%, 05/16/11 (A) 500 513 Satelites Mexicanos, Series B, Callable 05/24/02 @ 105.063 10.125%, 11/01/04 (D) 2,500 1,413 Viatel, Callable 04/15/03 @ 105.625 11.250%, 04/15/08 75 -- Voicestream Wireless, Callable 11/15/04 @ 105.938 10.875%, 11/15/09 (C) 650 540 Western Resources 6.250%, 08/15/03 1,000 960 -------- 14,054 -------- YANKEE - 1.1% TV Azteca SA de CV, Series B, Callable 05/29/02 @ 105.250 10.500%, 02/15/07 1,300 1,320 Vicap SA de CV, Callable 05/29/02 @ 105.690 11.375%, 05/15/07 700 651 -------- 1,971 -------- TOTAL HIGH YIELD CORPORATE BONDS 75,669 -------- FOREIGN GOVERNMENT BONDS - 18.4% BRAZIL - 7.3% Republic of Brazil (D) 11.500%, 03/12/08 3,500 3,500 8.000%, 04/15/14 5,541 4,544 12.250%, 03/06/30 2,850 2,661 Callable 08/17/15 @ 100.000 11.000%, 08/17/40 3,284 2,709 -------- 13,414 -------- BULGARIA - 0.5% Bulgaria Government, Callable 07/29/02 @ 100.000 6.313%, 07/28/11 (B) (D) 995 870 -------- COLOMBIA - 1.1% Republic of Colombia 11.750%, 02/25/20 (D) 2,100 2,100 -------- ECUADOR - 1.3% Republic of Ecuador, Callable 05/15/02 @ 100.000 12.000%, 11/15/12 (D) 3,000 2,401 -------- PERU - 1.0% Republic of Peru 9.125%, 02/21/12 (A) (B) (D) 1,887 1,861 -------- PHILIPPINES - 1.5% Republic of Philippines 8.375%, 03/12/09 (D) 2,750 2,696 -------- RUSSIA - 5.0% Russian Federation (D) 8.250%, 03/31/10 3,200 3,040 12.750%, 06/24/28 5,350 6,273 -------- 9,313 -------- STRATEGIC INCOME FUND (CONTINUED) DESCRIPTION PAR(000)(J) VALUE (000) - -------------------------------------------- --------------- ----------- VENEZUELA - 0.7% Republic of Venezuela 9.250%, 09/15/27 (D) $ 2,000 $ 1,377 -------- TOTAL FOREIGN GOVERNMENT BONDS 34,032 -------- U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES - 10.5% FIXED RATE - 10.5% FHLMC Gold Pool 7.500%, 08/01/11, #E65045 354 373 5.500%, 04/01/13, #E69977 801 793 7.500%, 11/01/28, #C18204 683 709 FHLMC TBA 6.000%, 03/01/17 (F) 2,000 1,995 FNMA Pool 6.500%, 02/01/04, #367977 380 384 6.695%, 08/01/05, #109031 1,944 2,028 5.950%, 04/01/07, #381517 1,500 1,520 8.000%, 03/01/08, #326580 286 300 5.805%, 10/01/08, #380781 1,172 1,168 5.850%, 10/01/08, #380791 958 957 6.095%, 12/01/08, #380859 963 972 6.000%, 03/01/11, #329569 356 359 7.000%, 03/01/12, #313386 730 759 6.000%, 12/01/13, #535256 1,387 1,392 7.000%, 11/01/14, #535006 1,111 1,151 6.000%, 03/01/26, #339839 525 514 6.500%, 02/01/29, #252334 1,144 1,132 7.000%, 04/01/29, #323681 1,213 1,240 6.000%, 05/01/29, #323702 1,268 1,237 7.500%, 02/01/30, #535143 453 470 GNMA Pool 9.000%, 06/15/16, #160376 28 31 -------- TOTAL U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES 19,484 -------- CORPORATE BONDS - 6.1% ENERGY - 0.3% Conoco Funding 6.350%, 10/15/11 500 496 -------- FINANCE - 2.4% Capital One Bank 6.700%, 05/15/08 750 707 GATX Capital 8.250%, 09/01/03 750 743 International Lease Finance 5.750%, 02/15/07 500 490 Lehman Brothers Holdings 7.375%, 05/15/04 1,000 1,051 MBNA America Bank 7.750%, 09/15/05 1,000 1,054 Newcourt Credit Group, Series B 6.875%, 02/16/05 500 485 -------- 4,530 -------- MANUFACTURING - 0.9% Boeing 8.100%, 11/15/06 500 543 Ford Motor Credit 5.800%, 01/12/09 500 451 Motorola 6.750%, 02/01/06 750 742 -------- 1,736 -------- FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2002 23) SCHEDULE OF Investments March 31, 2002 (unaudited) STRATEGIC INCOME FUND (CONTINUED) DESCRIPTION PAR(000)(J) VALUE (000) - -------------------------------------------- --------------- ----------- SERVICES - 1.1% Comcast Cable Communications 7.125%, 06/15/13 $ 500 $ 495 Lowe's 8.250%, 06/01/10 750 837 Royal Caribbean Cruises 8.125%, 07/28/04 750 743 -------- 2,075 -------- TRANSPORTATION - 0.9% Continental Airlines, Series 99-2 7.056%, 09/15/09 1,000 972 Northwest Airlines, Series 991A 6.810%, 02/01/20 686 602 -------- 1,574 -------- UTILITY - 0.5% Sprint Capital 5.700%, 11/15/03 1,000 964 -------- TOTAL CORPORATE BONDS 11,375 -------- ASSET-BACKED SECURITIES - 4.5% AUTOMOBILES - 1.1% Capital One Auto Finance Trust Series 2001-A, Class A4 5.400%, 05/15/08 1,000 1,019 GMAC Commercial Mortgage Securities Series 1998-C2, Class A2 6.420%, 08/15/08 1,000 1,021 -------- 2,040 -------- COMMERCIAL - 0.6% Morgan Stanley Capital Investments Series 1999-RMI, Class A2 6.710%, 12/15/31 1,000 1,034 -------- CREDIT CARDS - 0.6% MBNA Master Credit Card Trust Series 1999-G, Class A 6.350%, 12/15/06 1,000 1,042 -------- HOME EQUITY - 1.4% Advanta Mortgage Loan Trust Series 1998-2, Class A12 6.330%, 08/25/19 1,000 1,017 Mellon Residential Funding Series 2001-HEIL, Class A3 5.945%, 02/25/11 (B) 1,000 1,020 Money Store Home Equity Trust Series 1994-A, Class A4, Callable 02/15/04 @ 100 6.275%, 12/15/22 547 560 -------- 2,597 -------- MANUFACTURED HOUSING - 0.3% Green Tree Financial Series 1998-1, Class A1 6.040%, 11/01/29 621 633 -------- OTHER - 0.5% Aircraft Finance Trust Series 1999-1A, Class C, Callable 07/15/16 @ 100 8.000%, 05/15/24 (A) (B) 1,000 910 -------- TOTAL ASSET-BACKED SECURITIES 8,256 -------- STRATEGIC INCOME FUND (CONTINUED) DESCRIPTION PAR(000)(J) VALUE (000) - -------------------------------------------- --------------- ----------- U.S. GOVERNMENT & AGENCY SECURITIES - 4.3% U.S. AGENCY DEBENTURES - 1.9% FHLMC 4.875%, 03/15/07 $ 500 $ 490 FNMA 7.000%, 07/15/05 1,000 1,069 6.250%, 05/15/29 2,000 1,916 ------- 3,475 ------- U.S. TREASURIES - 2.4% U.S. Treasury Bonds 7.500%, 11/15/16 250 287 8.500%, 02/15/20 1,000 1,269 7.250%, 08/15/22 1,500 1,710 6.250%, 08/15/23 1,000 1,024 5.250%, 11/15/28 250 225 ------- 4,515 ------- TOTAL U.S. GOVERNMENT & AGENCY SECURITIES 7,990 ------- CMO - U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES - 2.5% ADJUSTABLE RATE (G) - 0.4% FNMA Series 1993-22, Class FD 2.406%, 11/25/13 751 747 ------- FIXED RATE - 2.1% FNMA Series 1999-11, Class C 5.500%, 10/25/12 2,000 1,859 Series G93-1, Class H 6.700%, 02/25/21 80 80 Series 1993-50, Class PY 5.500%, 10/25/22 2,000 1,901 ------- 3,840 ------- TOTAL CMO - U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES 4,587 ------- CMO - PRIVATE MORTGAGE-BACKED SECURITIES - 2.1% ADJUSTABLE RATE (G) - 0.0% Countrywide Mortgage Backed Securities Series 1993-B, Class A4 6.750%, 11/25/23 24 24 ------- FIXED RATE - 1.6% HSBC Mortgage Loan Trust Series 2000-HSB1, Class A3, Callable 07/15/04 @ 100 7.110%, 12/16/30 518 528 Washington Mutual Series 2001-AR6, Class A5 5.603%, 01/26/32 1,000 989 Series 2002-AR4, Class A7 5.598%, 04/25/32 1,000 989 Wells Fargo Mortgage Backed Securities Series 2000-1, Class 2A1, Callable 07/25/12 @ 100 7.000%, 05/25/30 356 363 ------- 2,869 ------- Z-BOND (I) - 0.5% GE Capital Mortgage Services Series 1994-6, Class A9 6.500%, 09/25/22 999 1,011 ------- TOTAL CMO - PRIVATE MORTGAGE-BACKED SECURITIES 3,904 ------- The accompanying notes are an integral part of the financial statements. (24 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2002 STRATEGIC INCOME FUND (CONCLUDED) DESCRIPTION PAR(000)(J)/SHARES VALUE (000) - ----------------------------------------- ------------------ ----------- PREFERRED STOCKS - 0.3% UNITED STATES - 0.3% Nebco Evans Holdings PIK (H) $ 300 $ -- Nextel Communications PIK, Series D (H) 76 31 Pegasus Communications PIK, Series A (B) (H) 172,129 95 Primedia, Series D (H) 3,000 153 Primedia, Series F (H) 2,350 118 Primedia, Series H (H) 2,150 97 Sinclair Capital 750 79 ------------ TOTAL PREFERRED STOCKS 573 ------------ WARRANTS - 0.0% CANADA - 0.0% AT&T Canada, Expires 08/15/07 (H) 100 9 ------------ UNITED STATES - 0.0% Electronic Retailing Systems International, Expires 02/01/04 (H) 75 -- Enitel, Expires 04/03/05 (H) 1,000 -- Sterling Chemical Holdings, Expires 08/15/08 (H) 100 -- UIH Australia Pacific, Expires 05/15/06 (A) (H) 150 -- ------------ -- ------------ TOTAL WARRANTS 9 ------------ RELATED PARTY MONEY MARKET FUND - 2.5% First American Prime Obligations Fund (K) 4 ,552,667 4,553 ------------ TOTAL RELATED PARTY MONEY MARKET FUND 4,553 ------------ TOTAL INVESTMENTS - 92.1% (Cost $173,714) 170,432 ------------ OTHER ASSETS AND LIABILITIES, NET - 7.9% 14,682 ------------ TOTAL NET ASSETS - 100.0% $ 185,114 ------------ (A) Security sold within the terms of a private placement memorandum, exempt from registration under section 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other "qualified institutional investors." These securities have been determined to be liquid under the guidelines established by the Board of Directors. (B) Securities considered illiquid or restricted. See also the notes to the financial statements. (C) Delayed Interest (Step-Bonds) - Represents securities that remain zero-coupon securities until a predetermined date at which time the stated coupon rate becomes effective and interest becomes payable at regular intervals. The interest rates disclosed represent current yields at March 31, 2002, based upon the estimated timing and amount of future interest and principal payments. (D) Represents a foreign high yield (non-investment grade) bond. On March 31, 2002, the total market value of these investments was $43,293,710 or 23.4% of net assets. (E) Security currently in default. (F) On March 31, 2002, the total cost of investments purchased on a when-issued basis was $2,001,719. (G) Variable Rate Security - The rate shown is the rate in effect as of March 31, 2002. (H) Non-income producing security. (I) Z-Bonds - Represents securities that pay no interest or principal during their accrual periods, but accrue additional principal at specified rates. Interest rate disclosed represents current yield based upon the cost basis and estimated future cash flows. (J) In U.S. dollars unless otherwise indicated. (K) This money market fund is advised by U.S. Bancorp Asset Management, Inc., which also serves as advisor for this Fund. See also the notes to the financial statements. CMO - Collateralized Mortgage Obligation EU - Euro FHLMC - Federal Home Loan Mortgage Corporation FNMA - Federal National Mortgage Association GNMA - Government National Mortgage Association PIK - Payment-in-kind interest is generally paid by issuing additional par of the security rather than paying cash. U.S. GOVERNMENT SECURITIES BOND FUND DESCRIPTION PAR(000) VALUE (000) - -------------------------------------------- --------------- ----------- U.S. GOVERNMENT AGENCY PASS THRU MORTGAGE-BACKED SECURITIES - 66.1% ADJUSTABLE RATE (A) - 2.5% FNMA Pool 6.427%, 08/01/27, #545271 $ 4,856 $ 5,030 ------- FIXED RATE - 63.6% FHLMC Gold Pool 8.500%, 03/01/06, #E00022 50 52 7.500%, 04/01/08, #E45929 82 87 7.000%, 11/01/11, #E65619 139 145 7.500%, 09/01/12, #G10735 1,209 1,273 5.500%, 12/01/12, #E68353 2,818 2,788 5.500%, 05/01/13, #G10814 1,240 1,226 6.000%, 10/01/13, #E72802 3,468 3,488 5.500%, 01/01/14, #E00617 5,053 4,985 7.000%, 09/01/14, #E00746 1,704 1,768 6.500%, 01/01/30, #C55738 12,714 12,706 7.500%, 01/01/30, #C35768 1,443 1,498 6.000%, 03/01/31, #C48827 3,641 3,534 6.500%, 11/01/31, #C60526 5,210 5,187 6.000%, 12/01/31, #C61102 1,593 1,545 FHLMC Pool 9.500%, 09/01/04, #380053 2 2 7.000%, 07/01/11, #31335K 261 272 FNMA Pool 6.066%, 08/01/11, #384007 3,947 4,035 7.000%, 11/01/11, #250738 116 121 7.000%, 11/01/11, #349630 123 128 7.000%, 11/01/11, #351122 81 84 6.000%, 04/01/13, #425550 1,769 1,778 6.500%, 08/01/13, #251901 1,338 1,367 6.000%, 11/01/13, #556195 3,385 3,412 6.000%, 12/01/13, #449173 3,380 3,392 6.000%, 02/01/14, #432444 3,864 3,878 7.000%, 07/01/14, #252637 1,736 1,800 7.000%, 10/01/14, #252799 1,123 1,165 8.000%, 07/01/24, #190264 298 318 6.500%, 10/01/27, #400141 526 527 6.000%, 05/01/31, #511797 4,084 3,961 7.500%, 09/01/31, #602427 3,186 3,301 6.500%, 10/01/31, #603674 4,875 4,849 6.500%, 01/01/32, #622707 4,968 4,941 7.000%, 03/01/32, #635970 5,000 5,095 FNMA TBA 6.000%, 06/01/30 (B) 5,000 4,841 6.500%, 06/01/30 (B) 375 373 GNMA Pool 8.000%, 01/15/07, #315126 33 34 9.000%, 07/15/09, #390782 88 95 9.000%, 11/15/09, #359559 99 106 8.000%, 10/15/10, #414750 206 218 6.500%, 07/15/13, #462638 2,412 2,475 8.500%, 05/15/17, #219152 47 51 8.500%, 06/15/21, #307921 48 52 7.500%, 12/15/22, #347332 502 526 8.000%, 05/15/23, #352469 106 113 9.500%, 02/15/25, #365292 177 190 9.500%, 02/15/25, #392967 2 2 9.500%, 02/15/25, #401796 18 19 9.500%, 03/15/25, #407257 67 72 9.500%, 04/15/25, #386741 49 53 7.000%, 09/15/27, #455304 186 190 6.500%, 07/15/28, #780825 6,761 6,792 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2002 25) SCHEDULE OF Investments March 31, 2002 (unaudited) U.S. GOVERNMENT SECURITIES BOND FUND (CONTINUED) DESCRIPTION PAR (000) VALUE (000) - -------------------------------------------- ------------ -------------- 6.000%, 02/15/29, #458035 $ 2,142 $ 2,088 6.000%, 03/15/29, #466453 1,044 1,017 7.000%, 11/15/29, #781113 4,528 4,635 7.000%, 07/15/31, #781324 5,687 5,817 6.500%, 08/20/31, #3120 4,721 4,699 7.000%, 10/15/31, #564917 3,879 3,954 7.500%, 12/15/31, #570134 2,683 2,789 GNMA TBA 6.500%, 02/15/32, #569621 (B) 4,996 4,979 --------- 130,888 --------- TOTAL U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES 135,918 --------- CMO - U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES - 16.6% FIXED RATE - 16.6% FHLMC REMIC Series T-10, Class A3 6.540%, 01/25/17 2,500 2,566 Series 2370, Class BQ 6.000%, 02/15/26 5,000 5,006 Series 2000, Class B 6.500%, 03/15/26 2,000 2,003 Series 2382, Class DA 5.500%, 10/15/30 3,916 3,763 FNMA REMIC Series 1996-21, Class PK 6.000%, 02/25/11 5,000 5,000 Series 1993-210, Class PL 6.500%, 04/25/23 4,250 4,263 Series 2002-W1, Class 2A 7.500%, 02/25/42 5,250 5,523 GNMA REMIC Series 1999-22, Class BD 7.000%, 05/21/25 4,000 4,127 Series 2001-61, Class ED 6.000%, 12/16/31 2,000 1,844 --------- TOTAL CMO - U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES 34,095 --------- ASSET-BACKED SECURITIES - 9.6% AUTOMOBILES - 2.4% WFS Financial Owner Trust Series 2002-1, Class A3B 2.130%, 12/20/06 (A) 5,000 5,010 --------- COMMERCIAL - 2.5% Salomon Brothers Mortgage Securities VII Series 2001-C1, Class A3 6.428%, 12/18/35 5,000 5,023 --------- HOME EQUITY - 2.3% Corestates Home Equity Trust Series 1994-1, Class A 6.650%, 05/15/09 1,588 1,619 First Plus Home Loan Trust Series 1998-3, Class A7 6.950%, 10/10/22 3,000 3,114 --------- 4,733 --------- U.S. GOVERNMENT SECURITIES BOND FUND (CONCLUDED) DESCRIPTION PAR (000) VALUE (000) - -------------------------------------------- ------------ -------------- MANUFACTURED HOUSING - 2.4% Oakwood Mortgage Investors Series 1999-A, Class A2 5.890%, 04/15/29 $ 1,614 $ 1,648 Vanderbilt Mortgage Finance Series 1999-B, Class 1A4 6.545%, 04/07/18 3,250 3,364 --------- 5,012 --------- TOTAL ASSET-BACKED SECURITIES 19,778 --------- U.S. GOVERNMENT & AGENCY SECURITIES - 1.5% U.S. AGENCY DEBENTURES - 1.5% FNMA 5.410%, 12/15/03 3,000 3,083 --------- TOTAL U.S. GOVERNMENT & AGENCY SECURITIES 3,083 --------- CMO - PRIVATE MORTGAGE-BACKED SECURITIES - 1.4% FIXED RATE - 1.4% Washington Mutual Series 2001-AR4, Class A4 4.654%, 12/25/31 3,000 2,971 --------- TOTAL CMO - PRIVATE MORTGAGE-BACKED SECURITIES 2,971 --------- COMMERCIAL PAPER - 7.3% FINANCE - 7.3% Asset Securitization Cooperative 1.800%, 04/11/02 5,000 4,998 Enterprise Funding 1.800%, 04/09/02 4,999 4,997 Receivables Capital 1.810%, 04/04/02 5,000 4,999 --------- TOTAL COMMERCIAL PAPER 14,994 --------- TOTAL INVESTMENTS - 102.5% (Cost $210,723) 210,839 --------- OTHER ASSETS AND LIABILITIES, NET - (2.5)% (5,123) --------- TOTAL NET ASSETS - 100.0% $ 205,716 --------- (A) Variable Rate Security - The rate shown is the rate in effect as of March 31, 2002. (B) On March 31, 2002, the total cost of investments purchased on a when-issued basis was $10,222,856. CMO - Collateralized Mortgage Obligation FHLMC - Federal Home Loan Mortgage Corporation FNMA - Federal National Mortgage Association GNMA - Government National Mortgage Association REMIC - Real Estate Mortgage Investment Conduit The accompanying notes are an integral part of the financial statements. (26 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2002 (This page has been left blank intentionally.) 27) STATEMENTS OF Assets and Liabilities March 31, 2002 (unaudited), in thousands
BOND IMMDEX(TM) FUND ---------------- ASSETS: Investments in securities, at cost $ 748,419 ================================================================================ =========== Investments in securities, at value $ 756,968 Cash -- Collateral for securities loaned, at value 356,148 Dividends and interest receivable 12,110 Capital shares sold 859 Receivable for investment securities sold -- Other assets 36 - -------------------------------------------------------------------------------- ----------- TOTAL ASSETS 1,126,121 ================================================================================ =========== LIABILITIES: Bank overdraft -- Capital shares redeemed 985 Payable upon return of securities loaned 356,148 Payable for investment securities purchased -- Payable for distribution and shareholder servicing fees 47 Payable to affiliates 305 - -------------------------------------------------------------------------------- ----------- TOTAL LIABILITIES 357,485 ================================================================================ =========== NET ASSETS $ 768,636 ================================================================================ =========== COMPOSITION OF NET ASSETS: Portfolio capital $ 765,477 Undistributed (distributions in excess of) net investment income (241) Accumulated net realized gain (loss) on investments (5,149) Net unrealized appreciation (depreciation) of investments 8,549 Net unrealized depreciation on translation of assets and liabilities in foreign currency -- - -------------------------------------------------------------------------------- ----------- NET ASSETS $ 768,636 ================================================================================ =========== CLASS A: Net assets $ 83,569 Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 3,031 Net asset value and redemption price per share $ 27.57 Maximum offering price per share (1) $ 28.79 CLASS B: Net assets $ 11,348 Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 412 Net asset value and offering price per share (2) $ 27.55 CLASS C: Net assets $ 585 Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 21 Net asset value (2) $ 27.54 Maximum offering price per share (1) $ 27.82 CLASS S: Net assets $ 15,431 Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 560 Net asset value, offering price, and redemption price per share $ 27.58 CLASS Y: Net assets $ 657,703 Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 23,837 Net asset value, offering price, and redemption price per share $ 27.59 ================================================================================ ===========
[WIDE TABLE CONTINUED FROM ABOVE]
CORPORATE BOND FIXED INCOME HIGH YIELD BOND FUND FUND FUND ---------------- -------------- ----------------- ASSETS: Investments in securities, at cost $ 241,234 $1,411,820 $51,253 ================================================================================ ========= ========== ======= Investments in securities, at value $ 237,134 $1,421,761 $50,672 Cash -- 14,993 154 Collateral for securities loaned, at value 20,671 411,153 -- Dividends and interest receivable 4,257 14,918 1,110 Capital shares sold 164 1,140 -- Receivable for investment securities sold -- 7,514 -- Other assets 36 251 45 - -------------------------------------------------------------------------------- --------- ---------- ------- TOTAL ASSETS 262,262 1,871,730 51,981 ================================================================================ ========= ========== ======= LIABILITIES: Bank overdraft 33 -- -- Capital shares redeemed 430 1,612 75 Payable upon return of securities loaned 20,671 411,153 -- Payable for investment securities purchased 3,565 67,911 -- Payable for distribution and shareholder servicing fees -- 26 14 Payable to affiliates 182 939 57 - -------------------------------------------------------------------------------- --------- ---------- ------- TOTAL LIABILITIES 24,881 481,641 146 ================================================================================ ========= ========== ======= NET ASSETS $ 237,381 $1,390,089 $51,835 ================================================================================ ========= ========== ======= COMPOSITION OF NET ASSETS: Portfolio capital $ 271,854 $1,419,736 $54,826 Undistributed (distributions in excess of) net investment income 11 (141) (511) Accumulated net realized gain (loss) on investments (30,384) (39,447) (1,899) Net unrealized appreciation (depreciation) of investments (4,100) 9,941 (581) Net unrealized depreciation on translation of assets and liabilities in foreign currency -- -- -- - -------------------------------------------------------------------------------- --------- ---------- ------- NET ASSETS $ 237,381 $1,390,089 $51,835 ================================================================================ ========= ========== ======= CLASS A: Net assets $ 9,606 $ 113,429 $34,543 Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 995 10,335 3,840 Net asset value and redemption price per share $ 9.66 $ 10.98 $ 9.00 Maximum offering price per share (1) $ 10.09 $ 11.47 $ 9.40 CLASS B: Net assets $ 21,352 $ 15,329 $ 388 Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 2,219 1,406 43 Net asset value and offering price per share (2) $ 9.62 $ 10.90 $ 9.01 CLASS C: Net assets $ 5,058 $ 9,723 $ 6,147 Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 526 889 683 Net asset value (2) $ 9.61 $ 10.94 $ 9.00 Maximum offering price per share (1) $ 9.71 $ 11.05 $ 9.09 CLASS S: Net assets $ 3,868 $ 31,624 $ 1 Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 401 2,882 --(3) Net asset value, offering price, and redemption price per share $ 9.65 $ 10.97 $ 8.99 CLASS Y: Net assets $ 197,497 $1,219,984 $10,756 Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 20,463 111,173 1,194 Net asset value, offering price, and redemption price per share $ 9.65 $ 10.97 $ 9.01 ================================================================================ ========= ========== =======
(1) The offering price is calculated by dividing the net asset value by 1 minus the maximum sales charge. For a description of front-end sales charges, see the notes to the financial statements. (2) Class B and C have a contingent deferred sales charge. For a description of a possible redemption charge, see the notes to the financial statements. (3) Less than 500 shares. The accompanying notes are an integral part of the financial statements. (28 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2002 INTERMEDIATE TERM SHORT TERM STRATEGIC INCOME U.S. GOVERNMENT BOND FUND BOND FUND FUND SECURITIES FUND ------------------ ------------ ------------------ ----------------- $ 937,990 $481,773 $173,714 $ 210,723 ========== ======== ======== ========= $ 946,324 $482,789 $170,432 $ 210,839 190 883 13,355 4,085 419,153 108,776 -- -- 11,709 4,536 3,420 1,039 2,218 1,561 142 136 2,889 53 -- 4,989 55 33 38 63 ---------- -------- -------- --------- 1,382,538 598,631 187,387 221,151 ========== ======== ======== ========= -- -- -- -- 1,134 979 83 37 419,153 108,776 -- -- 12,254 8,628 2,002 15,238 -- 18 9 10 479 272 179 150 ---------- -------- -------- --------- 433,020 118,673 2,273 15,435 ========== ======== ======== ========= $ 949,518 $479,958 $185,114 $ 205,716 ========== ======== ======== ========= $ 962,820 $486,915 $223,591 $ 205,122 332 (350) (156) 1 (21,968) (7,622) (35,019) 477 8,334 1,015 (3,282) 116 -- -- (20) -- ---------- -------- -------- --------- $ 949,518 $479,958 $185,114 $ 205,716 ========== ======== ======== ========= $ 61,120 $136,962 $ 18,927 $ 9,804 6,163 13,681 2,191 911 $ 9.92 $ 10.01 $ 8.64 $ 10.76 $ 10.15 $ 9.02 $ 9.02 $ 11.24 -- -- $ 3,701 $ 2,909 -- -- 430 270 -- -- $ 8.60 $ 10.77 -- -- $ 5,638 $ 824 -- -- 655 77 -- -- $ 8.61 $ 10.73 -- -- $ 8.70 $ 10.84 $ 2,699 $ 1,054 $ 1 $ 22,137 272 105 --(3) 2,065 $ 9.92 $ 10.01 $ 8.71 $ 10.72 $ 885,699 $341,942 $156,847 $ 170,042 89,544 34,142 18,151 15,804 $ 9.89 $ 10.02 $ 8.64 $ 10.76 ========== ======== ======== ========= FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2002 29) STATEMENTS OF Operations For the six months ended March 31, 2002 (unaudited), in thousands BOND IMMDEX(TM) FUND ---------------- INVESTMENT INCOME: Interest $ 23,554 Dividends -- Less: foreign taxes withheld -- Securities lending 179 Other income -- - ----------------------------------------------------------------- --------- TOTAL INVESTMENT INCOME 23,733 ================================================================= ========= EXPENSES: Investment advisory fees 1,150 Administrator and fund accounting fees 891 Distribution and shareholder servicing fees - Class A 107 Distribution and shareholder servicing fees - Class B 49 Distribution and shareholder servicing fees - Class C 2 Transfer agent fees and expenses 98 Custodian fees 44 Registration fees 23 Shareholder servicing fees - Class S 17 Printing 16 Professional fees 7 Directors' fees 1 Miscellaneous fees 5 - ----------------------------------------------------------------- --------- TOTAL EXPENSES 2,410 ================================================================= ========= Less: Waiver of expenses (396) - ----------------------------------------------------------------- --------- TOTAL NET EXPENSES 2,014 ================================================================= ========= INVESTMENT INCOME - NET 21,719 ================================================================= ========= REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS - NET: Net realized gain (loss) on investments (4,894) Net realized loss on forward foreign currency contracts and foreign currency transactions -- Net change in unrealized appreciation or depreciation of investments (34,763) Net change in unrealized appreciation or depreciation of forward foreign currency contracts, foreign currency and translation of other assets and liabilities denominated in foreign currency -- - ----------------------------------------------------------------- --------- NET GAIN (LOSS) ON INVESTMENTS (39,657) ================================================================= ========= NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ (17,938) ================================================================= ========= [WIDE TABLE CONTINUED FROM ABOVE]
CORPORATE BOND FIXED INCOME HIGH YIELD BOND FUND FUND FUND ---------------- -------------- ----------------- INVESTMENT INCOME: Interest $ 8,027 $ 43,015 $ 1,881 Dividends -- -- 29 Less: foreign taxes withheld -- -- -- Securities lending 12 246 -- Other income -- 549 -- - ----------------------------------------------------------------- -------- --------- --------- TOTAL INVESTMENT INCOME 8,039 43,810 1,910 ================================================================= ======== ========= ========= EXPENSES: Investment advisory fees 820 3,677 162 Administrator and fund accounting fees 276 1,697 57 Distribution and shareholder servicing fees - Class A 13 146 39 Distribution and shareholder servicing fees - Class B 110 76 1 Distribution and shareholder servicing fees - Class C 25 45 25 Transfer agent fees and expenses 62 196 43 Custodian fees 12 74 2 Registration fees 11 40 10 Shareholder servicing fees - Class S 5 41 -- Printing 5 25 1 Professional fees 3 19 1 Directors' fees 1 4 -- Miscellaneous fees 2 15 -- - ----------------------------------------------------------------- -------- --------- --------- TOTAL EXPENSES 1,345 6,055 341 ================================================================= ======== ========= ========= Less: Waiver of expenses (313) (599) (55) - ----------------------------------------------------------------- -------- --------- --------- TOTAL NET EXPENSES 1,032 5,456 286 ================================================================= ======== ========= ========= INVESTMENT INCOME - NET 7,007 38,354 1,624 ================================================================= ======== ========= ========= REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS - NET: Net realized gain (loss) on investments (2,242) 8,859 (1,869) Net realized loss on forward foreign currency contracts and foreign currency transactions -- -- -- Net change in unrealized appreciation or depreciation of investments (5,955) (59,684) 199 Net change in unrealized appreciation or depreciation of forward foreign currency contracts, foreign currency and translation of other assets and liabilities denominated in foreign currency -- -- -- - ----------------------------------------------------------------- -------- --------- --------- NET GAIN (LOSS) ON INVESTMENTS (8,197) (50,825) (1,670) ================================================================= ======== ========= ========= NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ (1,190) $ (12,471) $ (46) ================================================================= ======== ========= =========
The accompanying notes are an integral part of the financial statements. (30 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2002 INTERMEDIATE TERM SHORT TERM BOND STRATEGIC INCOME U.S. GOVERNMENT BOND FUND FUND FUND SECURITIES FUND - ------------------ ----------------- ------------------ ----------------- $ 27,565 $ 11,244 $ 8,670 $ 5,819 -- -- 40 -- -- -- (5) -- 201 73 -- -- -- -- 50 -- --------- --------- ------- -------- 27,766 11,317 8,755 5,819 ========= ========= ======= ======== 2,366 1,086 635 520 1,095 505 212 249 78 168 24 11 -- -- 15 13 -- -- 24 2 67 91 58 58 47 22 9 10 29 16 7 10 3 1 -- 27 26 -- 4 3 8 4 3 3 2 1 -- 1 6 1 2 -- --------- --------- ------- -------- 3,727 1,895 993 907 ========= ========= ======= ======== (835) (508) (68) (127) --------- --------- ------- -------- 2,892 1,387 925 780 ========= ========= ======= ======== 24,874 9,930 7,830 5,039 ========= ========= ======= ======== (1,286) 758 (7,059) 5,528 -- -- (14) -- (30,648) (11,450) 12,915 (9,535) -- -- (32) -- --------- --------- ------- -------- (31,934) (10,692) 5,810 (4,007) ========= ========= ======= ======== $ (7,060) $ (762) $13,640 $ 1,032 ========= ========= ======= ======== FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2002 31) STATEMENTS OF Changes IN Net Assets in thousands
BOND IMMDEX(TM) FUND --------------------------------------------- 10/1/01 11/1/00 11/1/99 to to to 3/31/02 9/30/01 10/31/00 - --------------------------------------------------------------------------- -------------- ------------ ------------ (unaudited) OPERATIONS: Net investment income - net $ 21,719 $ 37,100 $ 34,423 Net realized gain (loss) on investments (4,894) 1,370 2,419 Net realized gain (loss) on forward foreign currency contracts and foreign currency transactions -- -- -- Net change in unrealized appreciation or depreciation of investments (34,763) 38,145 148 Net change in unrealized appreciation or depreciation of forward foreign currency contracts, foreign currency, and translation of other assets and liabilities denominated in foreign currency -- -- -- - --------------------------------------------------------------------------- -------------- ------------ ------------ Net increase (decrease) in net assets resulting from operations (17,938) 76,615 36,990 - --------------------------------------------------------------------------- -------------- ------------ ------------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income - net: Class A (2,515) (4,367) (5,390) Class B (257) (232) (135) Class C (9) -- -- Class S (396) (154) -- Class Y (20,091) (31,349) (28,861) Net realized gain on investments: Class A (185) (328) -- Class B (20) (11) -- Class C -- -- -- Class S (26) -- -- Class Y (1,375) (1,937) -- - --------------------------------------------------------------------------- ---------------- ------------ ------------ Total distributions (24,874) (38,378) (34,386) - --------------------------------------------------------------------------- ---------------- ------------ ------------ CAPITAL SHARE TRANSACTIONS (2): Class A: Proceeds from sales 7,787 23,583 8,490 Reinvestment of distributions 2,133 3,585 4,433 Payments for redemptions (9,365) (26,444) (26,710) Shares issued in connection with the acquisition of Fund net assets -- -- -- - --------------------------------------------------------------------------- ---------------- ------------ ------------ Increase (decrease) in net assets from Class A transactions 555 724 (13,787) - --------------------------------------------------------------------------- ---------------- ------------ ------------ Class B: Proceeds from sales 4,003 5,681 1,718 Reinvestment of distributions 228 201 114 Payments for redemptions (821) (341) (1,051) Shares issued in connection with the acquisition of Fund net assets -- -- -- - --------------------------------------------------------------------------- ---------------- ------------ ------------ Increase (decrease) in net assets from Class B transactions 3,410 5,541 781 - --------------------------------------------------------------------------- ---------------- ------------ ------------ Class C: Proceeds from sales 571 46 -- Reinvestment of distributions 9 -- -- Payments for redemptions (18) -- -- - --------------------------------------------------------------------------- ---------------- ------------ ------------ Increase in net assets from Class C transactions 562 46 -- - --------------------------------------------------------------------------- ---------------- ------------ ------------ Class S: Proceeds from sales 8,114 11,078 -- Reinvestment of distributions 351 137 -- Payments for redemptions (2,598) (1,083) -- Shares issued in connection with the acquisition of Fund net assets -- -- -- - --------------------------------------------------------------------------- ---------------- ------------ ------------ Increase (decrease) in net assets from Class S transactions 5,867 10,132 -- - --------------------------------------------------------------------------- ---------------- ------------ ------------ Class Y (3): Proceeds from sales 166,747 254,487 188,018 Reinvestment of distributions 12,016 18,990 19,999 Payments for redemptions (129,499) (138,642) (154,741) Shares issued in connection with the acquisition of Fund net assets -- -- -- - --------------------------------------------------------------------------- ---------------- ------------ ------------ Increase (decrease) in net assets from Class Y transactions 49,264 134,835 53,276 - --------------------------------------------------------------------------- ---------------- ------------ ------------ Increase (decrease) in net assets from capital share transactions 59,658 151,278 40,270 - --------------------------------------------------------------------------- ---------------- ------------ ------------ Total increase (decrease) in net assets 16,846 189,515 42,874 NET ASSETS AT BEGINNING OF PERIOD 751,790 562,275 519,401 =========================================================================== ================ ============ ============ NET ASSETS AT END OF PERIOD $ 768,636 $ 751,790 $ 562,275 =========================================================================== ================ ============ ============ UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME AT END OF PERIOD $ (241) $ 1,308 $ 413 =========================================================================== ================ ============ ============
[WIDE TABLE CONTINUED FROM ABOVE]
CORPORATE BOND FUND ----------------------------- 10/1/01 10/1/00 to to 3/31/02 9/30/01 - --------------------------------------------------------------------------- -------------- ----------- (unaudited) OPERATIONS: Net investment income - net $ 7,007 $ 7,283 Net realized gain (loss) on investments (2,242) 3,358 Net realized gain (loss) on forward foreign currency contracts and foreign currency transactions -- -- Net change in unrealized appreciation or depreciation of investments (5,955) 1,601 Net change in unrealized appreciation or depreciation of forward foreign currency contracts, foreign currency, and translation of other assets and liabilities denominated in foreign currency -- -- - --------------------------------------------------------------------------- -------------- ----------- Net increase (decrease) in net assets resulting from operations (1,190) 12,242 - --------------------------------------------------------------------------- -------------- ----------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income - net: Class A (306) (125) Class B (583) (49) Class C (136) (137) Class S (120) -- Class Y (6,077) (6,828) Net realized gain on investments: Class A (6) (114) Class B (13) (44) Class C (3) (162) Class S (2) -- Class Y (114) (3,110) - --------------------------------------------------------------------------- ---------------- ----------- Total distributions (7,360) (10,569) - --------------------------------------------------------------------------- ---------------- ----------- CAPITAL SHARE TRANSACTIONS (2): Class A: Proceeds from sales 1,522 3,580 Reinvestment of distributions 230 203 Payments for redemptions (1,596) (881) Shares issued in connection with the acquisition of Fund net assets -- 6,191 - --------------------------------------------------------------------------- ---------------- ----------- Increase (decrease) in net assets from Class A transactions 156 9,093 - --------------------------------------------------------------------------- ---------------- ----------- Class B: Proceeds from sales 969 1,384 Reinvestment of distributions 400 85 Payments for redemptions (1,836) (189) Shares issued in connection with the acquisition of Fund net assets -- 21,085 - --------------------------------------------------------------------------- ---------------- ----------- Increase (decrease) in net assets from Class B transactions (467) 22,365 - --------------------------------------------------------------------------- ---------------- ----------- Class C: Proceeds from sales 1,071 5,864 Reinvestment of distributions 130 292 Payments for redemptions (1,157) (922) - --------------------------------------------------------------------------- ---------------- ----------- Increase in net assets from Class C transactions 44 5,234 - --------------------------------------------------------------------------- ---------------- ----------- Class S: Proceeds from sales 1,959 1,220 Reinvestment of distributions 118 -- Payments for redemptions (1,305) (3) Shares issued in connection with the acquisition of Fund net assets -- 1,997 - --------------------------------------------------------------------------- ---------------- ------------ Increase (decrease) in net assets from Class S transactions 772 3,214 - --------------------------------------------------------------------------- ---------------- ------------ Class Y (3): Proceeds from sales 38,145 54,358 Reinvestment of distributions 645 1,307 Payments for redemptions (19,630) (59,758) Shares issued in connection with the acquisition of Fund net assets -- 97,773 - --------------------------------------------------------------------------- ---------------- ------------ Increase (decrease) in net assets from Class Y transactions 19,160 93,680 - --------------------------------------------------------------------------- ---------------- ------------ Increase (decrease) in net assets from capital share transactions 19,665 133,586 - --------------------------------------------------------------------------- ---------------- ------------ Total increase (decrease) in net assets 11,115 135,259 NET ASSETS AT BEGINNING OF PERIOD 226,266 91,007 =========================================================================== ================ ============ NET ASSETS AT END OF PERIOD $ 237,381 $226,266 =========================================================================== ================ ============ UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME AT END OF PERIOD $ 11 $ 226 =========================================================================== ================ ============
[WIDE TABLE CONTINUED FROM ABOVE]
FIXED INCOME FUND ------------------------------ 10/1/01 10/1/00 to to 3/31/02 9/30/01 - --------------------------------------------------------------------------- -------------- ------------ (unaudited) OPERATIONS: Net investment income - net $ 38,354 $ 77,362 Net realized gain (loss) on investments 8,859 16,716 Net realized gain (loss) on forward foreign currency contracts and foreign currency transactions -- -- Net change in unrealized appreciation or depreciation of investments (59,684) 70,958 Net change in unrealized appreciation or depreciation of forward foreign currency contracts, foreign currency, and translation of other assets and liabilities denominated in foreign currency -- -- - --------------------------------------------------------------------------- -------------- ------------ Net increase (decrease) in net assets resulting from operations (12,471) 165,036 - --------------------------------------------------------------------------- -------------- ------------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income - net: Class A (2,980) (6,267) Class B (333) (614) Class C (201) (133) Class S (842) -- Class Y (34,583) (70,917) Net realized gain on investments: Class A -- -- Class B -- -- Class C -- -- Class S -- -- Class Y -- -- - --------------------------------------------------------------------------- -------------- ------------ Total distributions (38,939) (77,931) - --------------------------------------------------------------------------- -------------- ------------ CAPITAL SHARE TRANSACTIONS (2): Class A: Proceeds from sales 23,920 55,451 Reinvestment of distributions 2,115 4,403 Payments for redemptions (27,563) (62,537) Shares issued in connection with the acquisition of Fund net assets -- 4,428 - --------------------------------------------------------------------------- -------------- ------------ Increase (decrease) in net assets from Class A transactions (1,528) 1,745 - --------------------------------------------------------------------------- -------------- ------------ Class B: Proceeds from sales 2,247 4,411 Reinvestment of distributions 298 560 Payments for redemptions (1,744) (2,941) Shares issued in connection with the acquisition of Fund net assets -- 747 - --------------------------------------------------------------------------- -------------- ------------ Increase (decrease) in net assets from Class B transactions 801 2,777 - --------------------------------------------------------------------------- -------------- ------------ Class C: Proceeds from sales 4,125 6,606 Reinvestment of distributions 196 128 Payments for redemptions (1,408) (327) - --------------------------------------------------------------------------- -------------- ------------ Increase in net assets from Class C transactions 2,913 6,407 - --------------------------------------------------------------------------- -------------- ------------ Class S: Proceeds from sales 5,535 25 Reinvestment of distributions 837 -- Payments for redemptions (8,644) (1,017) Shares issued in connection with the acquisition of Fund net assets -- 35,747 - --------------------------------------------------------------------------- -------------- ------------ Increase (decrease) in net assets from Class S transactions (2,272) 34,755 - --------------------------------------------------------------------------- -------------- ------------ Class Y (3): Proceeds from sales 125,422 260,210 Reinvestment of distributions 10,163 22,061 Payments for redemptions (239,159) (532,835) Shares issued in connection with the acquisition of Fund net assets -- 240,387 - --------------------------------------------------------------------------- -------------- ------------ Increase (decrease) in net assets from Class Y transactions (103,574) (10,177) - --------------------------------------------------------------------------- -------------- ------------ Increase (decrease) in net assets from capital share transactions (103,660) 35,507 - --------------------------------------------------------------------------- -------------- ------------ Total increase (decrease) in net assets (155,070) 122,612 NET ASSETS AT BEGINNING OF PERIOD 1,545,159 1,422,547 =========================================================================== ============== ============ NET ASSETS AT END OF PERIOD $ 1,390,089 $1,545,159 =========================================================================== ============== ============ UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME AT END OF PERIOD $ (141) $ 444 =========================================================================== ============== ============
(1) Commencement of operations. (2) See note 4 in Notes to Financial Statements for additional information. (3) On September 24, 2001, the Institutional Class of Bond IMMDEX(TM) Fund and U.S. Government Securities Fund were redesignated as Class Y. The accompanying notes are an integral part of the financial statements. (32 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2002
HIGH YIELD INTERMEDIATE TERM BOND FUND BOND FUND ------------------------------------ ----------------------------------------- 10/1/01 8/30/01(1) 10/1/01 11/1/00 11/1/99 to to to to to 3/31/02 9/30/01 3/31/02 9/30/01 10/31/00 -------------- -------------- -------------- ------------ ---------- (unaudited) (unaudited) $ 1,624 $ 55 $ 24,874 $ 27,316 $ 24,486 (1,869) (30) (1,286) 2,860 26 -- -- -- -- -- 199 (780) (30,648) 26,021 1,534 -- -- -- -- -- -------------- -------------- -------------- ------------ ---------- (46) (755) (7,060) 56,197 26,046 -------------- -------------- -------------- ------------ ---------- (1,484) -- (1,624) (1,521) (1,806) (8) -- -- (16) (15) (207) (11) -- -- -- -- -- (55) (13) -- (439) (40) (23,613) (25,016) (22,569) -- -- -- (59) -- -- -- -- -- -- -- -- -- -- -- -- -- -- (1) -- -- -- -- (963) -- ---------------- -------------- -------------- ------------- ---------- (2,138) (51) (25,292) (27,589) (24,390) ---------------- -------------- -------------- ------------- ---------- 53,657 164 17,541 13,049 2,820 1,388 -- 1,181 1,044 1,235 (18,994) -- (16,711) (12,241) (10,422) -- -- -- 30,157 -- ---------------- -------------- -------------- ------------- ---------- 36,051 164 2,011 32,009 (6,367) ---------------- -------------- -------------- ------------- ---------- 366 41 -- 513 160 7 -- -- 14 14 (18) -- -- (834) (86) -- -- -- -- -- ---------------- -------------- -------------- ------------- ---------- 355 41 -- (307) 88 ---------------- -------------- -------------- ------------- ---------- 2,892 4,742 -- -- -- 207 11 -- -- -- (518) (812) -- -- -- ---------------- -------------- -------------- ------------- ---------- 2,581 3,941 -- -- -- ---------------- -------------- -------------- ------------- ---------- 1 -- 2,176 936 -- -- -- 34 4 -- -- -- (156) (268) -- -- -- -- 40 -- ---------------- -------------- -------------- ------------- ---------- 1 -- 2,054 712 -- ---------------- -------------- -------------- ------------- ---------- 2,497 8,879 134,698 174,027 207,558 397 39 7,922 9,421 10,534 (121) -- (105,459) (125,820) (95,065) -- -- -- 385,558 -- ---------------- -------------- -------------- ------------- ---------- 2,773 8,918 37,161 443,186 123,027 ---------------- -------------- -------------- ------------- ---------- 41,761 13,064 41,226 475,600 116,748 ---------------- -------------- -------------- ------------- ---------- 39,577 12,258 8,874 504,208 118,404 12,258 -- 940,644 436,436 318,032 ================ ============== ============== ============= ========== $ 51,835 $ 12,258 $ 949,518 $ 940,644 $ 436,436 ================ ============== ============== ============= ========== $ (511) $ 3 $ 332 $ 678 $ 316 ================ ============== ============== ============= ==========
[WIDE TABLE CONTINUED FROM ABOVE]
SHORT TERM STRATEGIC INCOME U.S. GOVERNMENT BOND FUND FUND SECURITIES FUND ---------------------------- ----------------------------- ------------------------------------------ 10/1/01 10/1/00 10/1/01 10/1/00 10/1/01 11/1/00 12/1/99 to to to to to to to 3/31/02 9/30/01 3/31/02 9/30/01 3/31/02 9/30/01 10/31/00 -------------- ---------- -------------- ------------ -------------- ---------- ----------- (unaudited) (unaudited) (unaudited) $ 9,930 $ 11,024 $ 7,830 $ 20,109 $ 5,039 $ 10,086 $ 3,390 758 2,094 (7,059) (6,944) 5,528 955 (680) -- -- (14) (864) -- -- -- (11,450) 5,010 12,915 (4,637) (9,535) 10,717 1,015 -- -- (32) 27 -- -- -- -------------- ---------- -------------- ------------ -------------- ---------- ----------- (762) 18,128 13,640 7,691 1,032 21,758 3,725 -------------- ---------- -------------- ------------ -------------- ---------- ----------- (3,166) (5,226) (834) (1,700) (233) (280) (192) -- -- (122) (134) (60) (60) (8) -- -- (195) (159) (9) -- -- (17) -- -- -- (592) (403) (334) (7,330) (6,095) (6,884) (16,584) (4,938) (8,980) (2,856) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -------------- ---------- -------------- ------------ ---------------- ---------- ------------ (10,513) (11,321) (8,035) (18,577) (5,832) (9,723) (3,390) -------------- ---------- -------------- ------------ ---------------- ---------- ------------ 20,780 17,897 1,012 7,346 2,638 2,445 49 2,293 3,209 487 1,002 195 212 168 (15,852) (22,302) (2,182) (9,827) (576) (1,514) (1,219) -- 50,335 -- -- -- 3,253 -- -------------- ---------- -------------- ------------ ---------------- ---------- ------------ 7,221 49,139 (683) (1,479) 2,257 4,396 (1,002) -------------- ---------- -------------- ------------ ---------------- ---------- ------------ -- -- 1,230 1,831 1,152 622 8 -- -- 65 96 53 53 8 -- -- (101) (766) (276) (243) (158) -- -- -- -- -- 1,089 -- -------------- ---------- -------------- ------------ ---------------- ---------- ------------ -- -- 1,194 1,161 929 1,521 (142) -------------- ---------- -------------- ------------ ---------------- ---------- ------------ -- -- 1,366 3,737 724 105 -- -- -- 164 148 9 -- -- -- -- (267) (669) (4) -- -- -------------- ---------- -------------- ------------ ----------------- ---------- ------------ -- -- 1,263 3,216 729 105 -- -------------- ---------- -------------- ------------ ---------------- ---------- ------------ 724 42 123 -- 7,077 16,077 2,581 9 -- -- -- 591 403 370 (24) -- (122) -- (4,133) (3,041) (6,384) -- 318 -- -- -- -- -- -------------- ---------- -------------- ------------ ---------------- ---------- ------------ 709 360 1 -- 3,535 13,439 (3,433) -------------- ---------- -------------- ------------ ---------------- ---------- ------------ 127,107 32,174 18,370 45,150 13,292 26,544 18,386 2,932 2,005 1,402 3,722 810 1,868 286 (57,519) (32,407) (22,865) (122,166) (23,906) (56,078) (37,574) -- 179,621 -- -- -- 146,216 -- -------------- ---------- -------------- ------------ ---------------- ---------- ------------ 72,520 181,393 (3,093) (73,294) (9,804) 118,550 (18,902) -------------- ---------- -------------- ------------ ---------------- ---------- ------------ 80,450 230,892 (1,318) (70,396) (2,354) 138,011 (23,479) -------------- ---------- -------------- ------------ ---------------- ---------- ------------ 69,175 237,699 4,287 (81,282) (7,154) 150,046 (23,144) 410,783 173,084 180,827 262,109 212,870 62,824 85,968 ============== ========== ============== ============ ================ ========== ============ $ 479,958 $ 410,783 $ 185,114 $ 180,827 $ 205,716 $ 212,870 $ 62,824 ============== ========== ============== ============ ================ ========== ============ $ (350) $ 233 $ (156) $ 60 $ 1 $ 794 $ 409 ============== ========== ============== ============ ================ ========== ============
FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2002 33) Financial Highlights For a share outstanding, throughout the periods ended September 30, unless otherwise indicated.
REALIZED AND NET ASSET UNREALIZED DIVIDENDS VALUE NET GAINS OR FROM NET DISTRIBUTIONS BEGINNING INVESTMENT (LOSSES) ON INVESTMENT FROM OF PERIOD INCOME INVESTMENTS INCOME CAPITAL GAINS ----------- ------------ ------------- ------------ -------------- BOND IMMDEX(TM) FUND (2) Class A 2002 (8) $ 29.15 $ 0.78 $ (1.46) $ (0.84) $ (0.06) 2001 (6) (7) 27.49 1.51 1.73 (1.47) (0.11) 2000 (6) 27.36 1.71 0.13 (1.71) -- 1999 (6) 29.01 1.64 (1.66) (1.63) -- 1998 28.16 1.64 0.85 (1.64) -- 1997 (6) 27.54 1.66 0.64 (1.68) -- Class B 2002 (8) $ 29.13 $ 0.68 $ (1.46) $ (0.74) $ (0.06) 2001 (6) (7) 27.49 1.32 1.72 (1.29) (0.11) 2000 27.36 1.53 0.13 (1.53) -- 1999 (3) (6) 28.34 0.92 (0.91) (0.99) -- Class C 2002 (8) $ 29.15 $ 0.68 $ (1.46) $ (0.77) $ (0.06) 2001 (5) (6) 28.94 0.07 0.14 -- -- Class S 2002 (8) $ 29.15 $ 0.79 $ (1.46) $ (0.84) $ (0.06) 2001 (4) (6) 27.88 1.31 1.29 (1.33) -- Class Y 2002 (8) $ 29.17 $ 0.81 $ (1.46) $ (0.87) $ (0.06) 2001 (6) (7) 27.51 1.58 1.72 (1.53) (0.11) 2000 27.37 1.94 0.13 (1.93) -- 1999 29.02 1.70 (1.65) (1.70) -- 1998 28.16 1.72 0.85 (1.71) -- 1997 27.55 1.75 0.61 (1.75) -- - -------- -------- ------- ------- ------- ------- CORPORATE BOND FUND Class A 2002 (8) $ 10.01 $ 0.29 $ (0.33) $ (0.30) $ (0.01) 2001 (6) 10.03 0.72 0.35 (0.73) (0.36) 2000 (9) 10.00 0.48 0.02 (0.47) -- Class B 2002 (8) $ 9.98 $ 0.25 $ (0.34) $ (0.26) $ (0.01) 2001 (6) 10.02 0.66 0.32 (0.66) (0.36) 2000 (9) 10.00 0.45 0.01 (0.44) -- Class C 2002 (8) $ 9.97 $ 0.25 $ (0.34) $ (0.26) $ (0.01) 2001 (6) 10.01 0.63 0.35 (0.66) (0.36) 2000 (9) 10.00 0.45 (0.01) (0.43) -- Class S 2002 (8) $ 10.01 $ 0.29 $ (0.34) $ (0.30) $ (0.01) 2001 (5) (6) 9.93 0.01 0.07 -- -- Class Y (5) 2002 (8) $ 10.00 $ 0.30 $ (0.33) $ (0.31) $ (0.01) 2001 (6) 10.03 0.75 0.33 (0.75) (0.36) 2000 (9) 10.00 0.49 0.02 (0.48) -- - -------- -------- ------- ------- ------- -------
(1) Total returns do not reflect sales charges. Total return would have been lower had certain expenses not been waived. (2) The financial highlights for the Bond IMMDEX(TM) Fund as set forth herein include the historical financial highlights of the Firstar Bond IMMDEX(TM) Fund Class A shares, Class B shares, Class Y shares, and Class I shares. The assets of the Firstar Bond IMMDEX(TM) Fund were acquired by Bond IMMDEX(TM) Fund on September 24, 2001. In connection with such acquisition, Class A shares, Class B shares, Class Y shares and Class I shares of the Firstar Bond IMMDEX(TM) Fund were exchanged for Class A shares, Class B shares, Class S shares, and Class Y shares of Bond IMMDEX(TM) Fund, respectively. (3) Class of shares have been offered since March 1, 1999. All ratios for the period have been annualized, except total return and portfolio turnover. (4) Class of shares have been offered since December 11, 2000. All ratios for the period have been annualized, except total return and portfolio turnover. (5) Class of shares have been offered since September 24, 2001. All ratios for the period have been annualized, except total return and portfolio turnover. (6) Per share data calculated using average shares outstanding method. (7) Effective in 2001, the Fund's fiscal year end was changed to September 30 from October 31. (8) For the six months ended March 31, 2002 (unaudited). All ratios for the period have been annualized, except total return and portfolio turnover. (9) Commenced operations on February 1, 2000. All ratios for the period have been annualized, except total return and portfolio turnover. The accompanying notes are an integral part of the financial statements. (34 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2002
RATIO OF NET RATIO OF INVESTMENT RATIO OF NET EXPENSES TO INCOME TO NET ASSET RATIO OF INVESTMENT AVERAGE AVERAGE VALUE NET ASSETS EXPENSES TO INCOME TO NET ASSETS NET ASSETS PORTFOLIO END OF TOTAL END OF AVERAGE AVERAGE (EXCLUDING (EXCLUDING TURNOVER PERIOD RETURN (1) PERIOD (000) NET ASSETS NET ASSETS WAIVERS) WAIVERS) RATE ----------- ------------ -------------- ------------- -------------- ------------- ------------- ---------- $ 27.57 (2.39)% $ 83,569 0.73% 5.46% 0.83% 5.36% 12% 29.15 12.09 87,775 0.73 5.82 0.76 5.79 16 27.49 6.99 82,131 0.74 6.30 0.74 6.30 25 27.36 (0.05) 95,635 0.72 5.80 0.74 5.78 57 29.01 9.11 95,301 0.67 5.77 0.74 5.70 20 28.16 8.68 64,144 0.67 6.08 0.74 6.01 35 $ 27.55 (2.73)% $ 11,348 1.48% 4.72% 1.58% 4.62% 12% 29.13 11.32 8,505 1.48 5.02 1.52 4.98 16 27.49 6.22 2,689 1.49 5.55 1.49 5.55 25 27.36 0.04 1,869 1.49 5.06 1.49 5.06 57 $ 27.54 (2.71)% $ 585 1.48% 4.76% 1.58% 4.66% 12% 29.15 0.69 46,666 0.41 5.06 0.48 4.99 16 $ 27.58 (2.35)% $ 15,431 0.73% 5.47% 0.83% 5.37% 12% 29.15 9.56 10,330 0.73 5.64 0.79 5.58 16 $ 27.59 (2.26)% $657,703 0.48% 5.71% 0.58% 5.61% 12% 29.17 12.33 645,134 0.48 6.06 0.51 6.03 16 27.51 7.29 477,455 0.49 6.55 0.49 6.55 25 27.37 0.20 421,897 0.47 6.05 0.48 6.04 57 29.02 9.41 471,425 0.42 6.02 0.49 5.95 20 28.16 8.90 408,018 0.42 6.33 0.49 6.26 35 -------- ----- -------- ---- ---- ---- ---- -- $ 9.66 (0.48)% $ 9,606 1.00% 5.86% 1.27% 5.59% 65% 10.01 10.94 9,820 0.75 6.95 1.20 6.50 187 10.03 5.17 771 0.72 7.52 1.24 7.00 124 $ 9.62 (0.96)% $ 21,352 1.75% 5.10% 2.02% 4.83% 65% 9.98 10.06 22,608 1.65 6.45 2.11 5.99 187 10.02 4.70 103 1.48 6.86 1.99 6.35 124 $ 9.61 (0.96)% $ 5,058 1.75% 5.11% 2.02% 4.84% 65% 9.97 10.10 5,209 1.50 6.07 1.94 5.63 187 10.01 4.54 143 1.48 6.79 1.99 6.28 124 $ 9.65 (0.58)% $ 3,868 1.00% 5.86% 1.27% 5.59% 65% 10.01 0.81 3,237 0.89 7.60 1.36 7.13 187 $ 9.65 (0.36)% $197,497 0.75% 6.12% 1.02% 5.85% 65% 10.00 11.09 185,392 0.51 7.26 0.95 6.82 187 10.03 5.32 89,990 0.48 7.75 0.99 7.24 124 -------- ----- -------- ---- ---- ---- ---- ---
FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2002 35) Financial Highlights For a share outstanding, throughout the periods ended September 30, unless otherwise indicated.
REALIZED AND NET ASSET UNREALIZED DIVIDENDS VALUE NET GAINS OR FROM NET DISTRIBUTIONS BEGINNING INVESTMENT (LOSSES) ON INVESTMENT FROM OF PERIOD INCOME INVESTMENTS INCOME CAPITAL GAINS ----------- ------------ ------------- ------------ -------------- FIXED INCOME FUND Class A 2002 (5) $ 11.37 $ 0.28 $ (0.38) $ (0.29) $ -- 2001 (4) 10.69 0.61 0.69 (0.62) -- 2000 10.65 0.61 0.04 (0.61) -- 1999 11.69 0.59 (0.89) (0.59) (0.15) 1998 10.97 0.57 0.73 (0.57) (0.01) 1997 10.77 0.59 0.27 (0.59) (0.07) Class B 2002 (5) $ 11.29 $ 0.24 $ (0.39) $ (0.24) $ -- 2001 (4) 10.63 0.52 0.68 (0.54) -- 2000 10.58 0.53 0.05 (0.53) -- 1999 11.63 0.51 (0.90) (0.51) (0.15) 1998 10.91 0.49 0.73 (0.49) (0.01) 1997 10.72 0.51 0.26 (0.51) (0.07) Class C 2002 (5) $ 11.34 $ 0.24 $ (0.40) $ (0.24) $ -- 2001 (4) 10.66 0.52 0.70 (0.54) -- 2000 10.64 0.52 0.04 (0.54) -- 1999 (3) 11.33 0.38 (0.69) (0.38) -- Class S 2002 (5) $ 11.37 $ 0.28 $ (0.40) $ (0.28) $ -- 2001 (2) (4) 11.28 0.01 0.08 -- -- Class Y 2002 (5) $ 11.37 $ 0.29 $ (0.39) $ (0.30) $ -- 2001 (4) 10.69 0.63 0.70 (0.65) -- 2000 10.65 0.63 0.04 (0.63) -- 1999 11.69 0.61 (0.89) (0.61) (0.15) 1998 10.96 0.60 0.74 (0.60) (0.01) 1997 10.76 0.62 0.27 (0.62) (0.07) - -------- -------- ------- ------- ------- ------- HIGH YIELD BOND FUND Class A 2002 (5) $ 9.30 $ 0.31 $ (0.19) $ (0.42) $ -- 2001 (4) (6) 10.00 0.02 (0.68) (0.04) -- Class B 2002 (5) $ 9.31 $ 0.36 $ (0.27) $ (0.39) $ -- 2001 (4) (6) 10.00 0.02 (0.67) (0.04) -- Class C 2002 (5) $ 9.31 $ 0.31 $ (0.24) $ (0.38) $ -- 2001 (4) (6) 10.00 0.05 (0.70) (0.04) -- Class S 2002 (5) $ 9.30 $ 0.35 $ (0.24) $ (0.42) $ -- 2001 (2) (4) 9.48 0.01 (0.19) -- -- Class Y 2002 (5) $ 9.31 $ 0.35 $ (0.22) $ (0.43) $ -- 2001 (4) (6) 10.00 0.05 (0.70) (0.04) -- - --------------------- -------- ------- ------- ------- -------
(1)Total returns do not reflect sales charges. Total return would have been lower had certain expenses not been waived. (2)Class of shares have been offered since September 24, 2001. All ratios for the period have been annualized, except total return and portfolio turnover. (3)Class of shares have been offered since February 1, 1999. All ratios for the period have been annualized, except total return and portfolio turnover. (4)Per share data calculated using average shares outstanding method. (5)For the six months ended March 31, 2002 (unaudited). All ratios for the period have been annualized, except total return and portfolio turnover. (6)Commenced operations on August 30, 2001. All ratios for the period have been annualized, except total return and portfolio turnover. The accompanying notes are an integral part of the financial statements. (36 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2002
RATIO OF NET RATIO OF INVESTMENT RATIO OF NET EXPENSES TO INCOME TO NET ASSET RATIO OF INVESTMENT AVERAGE AVERAGE VALUE NET ASSETS EXPENSES TO INCOME TO NET ASSETS NET ASSETS PORTFOLIO END OF TOTAL END OF AVERAGE AVERAGE (EXCLUDING (EXCLUDING TURNOVER PERIOD RETURN (1) PERIOD (000) NET ASSETS NET ASSETS WAIVERS) WAIVERS) RATE ----------- ------------ -------------- ------------- -------------- ------------- ------------- ---------- $ 10.98 (0.94)% $ 113,429 0.95% 5.01% 1.03% 4.93% 51% 11.37 12.50 119,067 0.95 5.50 1.13 5.32 81 10.69 6.33 110,490 0.95 5.76 1.14 5.57 54 10.65 (2.67) 137,133 0.95 5.29 1.14 5.10 90 11.69 12.29 205,237 0.95 5.10 1.11 4.94 147 10.97 8.26 8,535 0.95 5.44 1.13 5.26 130 $ 10.90 (1.32)% $ 15,329 1.70% 4.26% 1.78% 4.18% 51% 11.29 11.59 15,071 1.70 4.75 1.88 4.57 81 10.63 5.70 11,550 1.70 5.02 1.89 4.83 54 10.58 (3.48) 14,639 1.70 4.53 1.89 4.34 90 11.63 11.54 17,242 1.70 4.35 1.86 4.19 147 10.91 7.40 15,253 1.70 4.68 1.88 4.50 130 $ 10.94 (1.39)% $ 9,723 1.70% 4.27% 1.78% 4.19% 51% 11.34 11.68 7,148 1.70 4.65 1.88 4.47 81 10.66 5.50 566 1.70 5.02 1.89 4.83 54 10.64 (2.75) 719 1.35 5.09 1.89 4.55 90 $ 10.97 (1.03)% $ 31,624 0.95% 5.01% 1.03% 4.93% 51% 11.37 0.80 35,062 1.58 6.36 1.76 6.18 81 $ 10.97 (0.91)% $1,219,984 0.70% 5.26% 0.78% 5.18% 51% 11.37 12.76 1,368,812 0.70 5.76 0.88 5.58 81 10.69 6.59 1,299,941 0.70 6.03 0.89 5.84 54 10.65 (2.44) 1,239,900 0.70 5.57 0.89 5.38 90 11.69 12.66 1,210,661 0.70 5.35 0.86 5.19 147 10.96 8.54 705,719 0.70 5.71 0.88 5.53 130 -------- ----- ---------- ---- ---- ---- ---- --- $ 9.00 1.27% $ 34,543 1.20% 7.02% 1.42% 6.80% 56% 9.30 (6.55) 161 1.10 6.53 1.33 6.30 53 $ 9.01 0.96% $ 388 1.95% 6.76% 2.25% 6.46% 56% 9.31 (6.47) 40 1.77 6.02 2.02 5.77 53 $ 9.00 0.78% $ 6,147 1.95% 6.29% 2.22% 6.02% 56% 9.31 (6.50) 3,749 1.94 5.53 2.21 5.26 53 $ 8.99 1.13% $ 1 1.20% 6.87% 1.41% 6.66% 56% 9.30 (1.90) -- 0.00 1.23 0.00 1.23 53 $ 9.01 1.37% $ 10,756 0.95% 7.26% 1.22% 6.99% 56% 9.31 (6.47) 8,308 0.96 6.06 1.23 5.79 53 -------- ----- ---------- ---- ---- ---- ---- ---
FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2002 37) Financial Highlights For a share outstanding, throughout the periods ended September 30, unless otherwise indicated.
REALIZED AND NET ASSET UNREALIZED DIVIDENDS VALUE NET GAINS OR FROM NET DISTRIBUTIONS BEGINNING INVESTMENT (LOSSES) ON INVESTMENT FROM OF PERIOD INCOME INVESTMENTS INCOME CAPITAL GAINS ----------- ------------ ------------- ------------ -------------- INTERMEDIATE TERM BOND FUND (3) Class A 2002 (8) $ 10.26 $ 0.26 $ (0.34) $ (0.26) $ -- 2001 (6) (7) 9.70 0.54 0.55 (0.51) (0.02) 2000 9.68 0.58 0.02 (0.58) -- 1999 10.07 0.54 (0.38) (0.54) (0.01) 1998 9.88 0.55 0.19 (0.55) -- 1997 9.77 0.56 0.11 (0.56) -- Class S 2002 (8) $ 10.26 $ 0.26 $ (0.34) $ (0.26) $ -- 2001 (5) (7) 9.78 0.48 0.53 (0.51) (0.02) Class Y 2002 (8) $ 10.23 $ 0.27 $ (0.34) $ (0.27) $ -- 2001 (6) (7) 9.68 0.56 0.54 (0.53) (0.02) 2000 9.66 0.60 0.02 (0.60) -- 1999 10.04 0.56 (0.37) (0.56) (0.01) 1998 9.86 0.56 0.18 (0.56) -- 1997 9.74 0.57 0.12 (0.57) -- - -------- -------- ------- ------- ------- ------- SHORT TERM BOND FUND (2) Class A 2002 (8) $ 10.27 $ 0.23 $ (0.25) $ (0.24) $ -- 2001 (7) 9.91 0.61 0.40 (0.65) -- 2000 9.86 0.58 0.02 (0.55) -- 1999 10.04 0.52 (0.18) (0.52) -- 1998 9.94 0.53 0.10 (0.53) -- 1997 9.91 0.56 0.03 (0.56) -- Class S 2002 (8) $ 10.27 $ 0.22 $ (0.24) $ (0.24) $ -- 2001 (4) (7) 10.25 0.01 0.01 -- -- Class Y 2002 (8) $ 10.27 $ 0.23 $ (0.23) $ (0.25) $ -- 2001 (7) 9.91 0.63 0.39 (0.66) -- 2000 9.87 0.59 0.01 (0.56) -- 1999 10.04 0.52 (0.17) (0.52) -- 1998 9.94 0.53 0.10 (0.53) -- 1997 9.91 0.56 0.03 (0.56) -- - -------- -------- ------- ------- ------- -------
(1)Total returns do not reflect sales charges. Total return would have been lower had certain expenses not been waived. (2)Effective September 24, 2001, the name of the Limited Term Income Fund was changed to Short Term Bond Fund. (3)The financial highlights for the Intermediate Term Bond Fund as set forth herein include the historical financial highlights of the Firstar Intermediate Bond Fund Class A shares, Class Y shares, and Class I shares. The assets of the Firstar Intermediate Bond Fund were acquired by Intermediate Term Bond Fund on September 24, 2001. In connection with such acquisition, Class A shares, Class Y shares, and Class I shares of the Firstar Intermediate Bond Fund were exchanged for Class A shares, Class S shares, and Class Y shares of Intermediate Term Bond Fund, respectively. Historical per-share amounts have been adjusted to reflect the conversion ratios utilized for the merger of the Intermediate Term Bond Fund and the Firstar Intermediate Bond Fund. (4)Class of shares have been offered since September 24, 2001. All ratios for the period have been annualized, except total return and portfolio turnover. (5)Class of shares have been offered since November 27, 2000. All ratios for the period have been annualized, except total return and portfolio turnover. (6)Effective in 2001, the Fund's fiscal year end was changed to September 30 from October 31. (7)Per share data calculated using average shares outstanding method. (8)For the six months ended March 31, 2002 (unaudited). All ratios for the period have been annualized, except total return and portfolio turnover. The accompanying notes are an integral part of the financial statements. (38 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2002
RATIO OF NET RATIO OF INVESTMENT RATIO OF NET EXPENSES TO INCOME TO NET ASSET RATIO OF INVESTMENT AVERAGE AVERAGE VALUE NET ASSETS EXPENSES TO INCOME TO NET ASSETS NET ASSETS PORTFOLIO END OF TOTAL END OF AVERAGE AVERAGE (EXCLUDING (EXCLUDING TURNOVER PERIOD RETURN (1) PERIOD (000) NET ASSETS NET ASSETS WAIVERS) WAIVERS) RATE ----------- ------------ -------------- ------------- -------------- ------------- ------------- ---------- $ 9.92 (0.78)% $ 61,120 0.75% 5.12% 0.92% 4.95% 9% 10.26 11.46 61,225 0.85 5.62 0.96 5.51 30 9.70 6.41 27,431 0.82 6.08 0.95 5.95 18 9.68 1.66 33,779 0.81 5.47 0.95 5.33 64 10.07 7.57 29,550 0.75 5.50 0.96 5.29 27 9.88 7.09 20,691 0.75 5.71 0.98 5.48 41 $ 9.92 (0.77)% $ 2,699 0.75% 5.19% 0.92% 5.02% 9% 10.26 10.58 724 0.84 5.41 0.95 5.30 30 $ 9.89 (0.70)% $885,699 0.60% 5.27% 0.77% 5.10% 9% 10.23 11.61 878,695 0.60 5.83 0.70 5.73 30 9.68 6.67 408,708 0.57 6.33 0.70 6.20 18 9.66 1.91 284,047 0.56 5.71 0.70 5.57 64 10.04 7.83 291,289 0.50 5.75 0.71 5.54 27 9.86 7.36 254,521 0.50 5.96 0.73 5.73 41 ------- ----- -------- ---- ---- ---- ---- -- $ 10.01 (0.67)% $136,962 0.75% 4.47% 0.95% 4.27% 42% 10.27 10.48 133,177 0.60 6.04 1.15 5.49 69 9.91 6.30 80,992 0.60 6.12 1.13 5.59 95 9.86 3.43 5,318 0.60 5.16 1.12 4.64 65 10.04 6.55 5,036 0.60 5.33 1.12 4.81 112 9.94 6.09 7,152 0.60 5.61 1.15 5.06 147 $ 10.01 (0.20)% $ 1,054 0.75% 4.46% 0.95% 4.26% 42% 10.27 0.20 362 1.20 6.37 1.80 5.77 69 $ 10.02 (0.04)% $341,942 0.60% 4.61% 0.80% 4.41% 42% 10.27 10.64 277,244 0.46 6.24 1.02 5.68 69 9.91 6.29 92,092 0.51 5.94 0.98 5.47 95 9.87 3.53 119,522 0.60 5.15 0.87 4.88 65 10.04 6.55 173,136 0.60 5.33 0.87 5.06 112 9.94 6.09 184,368 0.60 5.60 0.90 5.30 147 ------- ----- -------- ---- ---- ---- ---- ---
FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2002 39) Financial Highlights For a share outstanding, throughout the periods ended September 30, unless otherwise indicated.
REALIZED AND NET ASSET UNREALIZED DIVIDENDS VALUE NET GAINS OR FROM NET BEGINNING INVESTMENT (LOSSES) ON INVESTMENT OF PERIOD INCOME INVESTMENTS INCOME ----------- ------------ ------------- ----------- STRATEGIC INCOME FUND Class A 2002 (4) (7) $ 8.37 $ 0.36 $ 0.28 $ (0.37) 2001 (4) 8.91 0.76 (0.59) (0.71) 2000 (4) 9.09 0.64 (0.15) (0.67) 1999 (4) 9.27 0.78 (0.25) (0.71) 1998 (5) 10.00 0.13 (0.75) (0.11) Class B 2002 (4) (7) $ 8.35 $ 0.33 $ 0.26 $ (0.34) 2001 (4) 8.89 0.69 (0.58) (0.65) 2000 (4) 9.07 0.56 (0.14) (0.60) 1999 (4) 9.27 0.71 (0.26) (0.65) 1998 (5) 10.00 0.09 (0.71) (0.11) Class C 2002 (4) (7) $ 8.35 $ 0.33 $ 0.27 $ (0.34) 2001 (4) 8.90 0.69 (0.59) (0.65) 2000 (4) 9.08 0.59 (0.14) (0.63) 1999 (4) (6) 9.57 0.45 (0.47) (0.47) Class S 2002 (4) (7) $ 8.38 $ 0.33 $ 0.31 $ (0.31) 2001 (3) (4) 8.40 -- (0.02) -- Class Y 2002 (4) (7) $ 8.38 $ 0.37 $ 0.27 $ (0.38) 2001 (4) 8.92 0.79 (0.59) (0.74) 2000 (4) 9.09 0.66 (0.14) (0.69) 1999 (4) 9.27 0.80 (0.25) (0.73) 1998 (5) 10.00 0.14 (0.75) (0.12) - -------- ------- ------- ------- ------- U.S. GOVERNMENT SECURITIES FUND (2) Class A 2002 (7) $ 11.01 $ 0.25 $ (0.21) $ (0.29) 2001 (4) (8) 10.44 0.51 0.60 (0.54) 2000 (9) 10.34 0.53 0.08 (0.51) 1999 10.74 0.54 (0.40) (0.54) 1998 10.62 0.57 0.12 (0.57) 1997 10.67 0.60 (0.07) (0.58) Class B 2002 (7) $ 11.03 $ 0.21 $ (0.21) $ (0.26) 2001 (4) (8) 10.45 0.43 0.62 (0.47) 2000 (9) 10.36 0.45 0.08 (0.44) 1999 10.74 0.47 (0.38) (0.47) 1998 10.61 0.50 0.13 (0.50) 1997 10.66 0.51 (0.05) (0.51) Class C 2002 (7) $ 11.00 $ 0.23 $ (0.23) $ (0.27) 2001 (3) (4) 10.98 0.05 (0.03) -- Class S 2002 (7) $ 10.97 $ 0.24 $ (0.20) $ (0.29) 2001 (4) (8) 10.40 0.62 0.49 (0.54) 2000 (9) 10.31 0.53 0.07 (0.51) 1999 10.70 0.53 (0.38) (0.54) 1998 10.58 0.57 0.12 (0.57) 1997 10.64 0.56 (0.04) (0.58) Class Y 2002 (7) $ 11.01 $ 0.27 $ (0.21) $ (0.31) 2001 (4) (8) 10.44 0.53 0.60 (0.56) 2000 (9) 10.34 0.55 0.08 (0.53) 1999 10.74 0.58 (0.41) (0.57) 1998 10.62 0.60 0.12 (0.60) 1997 10.67 0.61 (0.05) (0.61) - -------- ------- ------- ------- -------
(1)Total returns do not reflect sales charges. Total return would have been lower had certain expenses not been waived. (2)The financial highlights for the U.S. Government Securities Fund as set forth herein include the historical financial highlights of the Firstar U.S. Government Securities Fund Class A shares, Class B shares, Class Y shares, and Class I shares. The assets of the Firstar U.S. Government Securities Fund were acquired by U.S. Government Securities Fund on September 24, 2001. In connection with such acquisition, Class A shares, Class B shares, Class Y shares, and Class I shares of the Firstar U.S. Government Securities Fund were exchanged for Class A shares, Class B shares, Class S shares, and Class Y shares of U.S. Government Securities Fund, respectively. (3)Class of shares have been offered since September 24, 2001. All ratios for the period have been annualized, except total return and portfolio turnover. (4)Per share data calculated using average shares outstanding method. (5)Commenced operations on July 24, 1998. All ratios for the period have been annualized, except total return and portfolio turnover. (6)Class of shares have been offered since February 1, 1999. All ratios for the period have been annualized, except total return and portfolio turnover. (7)For the six months ended March 31, 2002 (unaudited). All ratios for the period have been annualized, except total return and portfolio turnover. (8)Effective in 2001, the Fund's fiscal year end was changed to September 30 from October 31. (9)Effective in 2000, the Fund's fiscal year end was changed to October 31 from November 30. The accompanying notes are an integral part of the financial statements. (40 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2002
RATIO OF NET RATIO OF INVESTMENT RATIO OF NET EXPENSES TO INCOME TO NET ASSET RATIO OF INVESTMENT AVERAGE AVERAGE VALUE NET ASSETS EXPENSES TO INCOME TO NET ASSETS NET ASSETS PORTFOLIO END OF TOTAL END OF AVERAGE AVERAGE (EXCLUDING (EXCLUDING TURNOVER PERIOD RETURN (1) PERIOD (000) NET ASSETS NET ASSETS WAIVERS) WAIVERS) RATE ----------- ------------ -------------- ------------- -------------- ------------- ------------- ---------- $ 8.64 7.65% $ 18,927 1.20% 8.45% 1.28% 8.37% 28% 8.37 1.99 19,014 1.15 8.62 1.17 8.60 80 8.91 5.56 21,737 1.15 7.08 1.17 7.06 90 9.09 5.73 27,768 1.15 8.30 1.21 8.24 40 9.27 (6.17) 40,270 1.15 8.19 1.30 8.04 61 $ 8.60 7.18% $ 3,701 1.95% 7.64% 2.02% 7.57% 28% 8.35 1.17 2,426 1.90 7.88 1.91 7.87 80 8.89 4.83 1,401 1.90 6.20 1.91 6.19 90 9.07 4.90 788 1.90 7.56 1.96 7.50 40 9.27 (6.19) 114 1.90 7.44 2.05 7.29 61 $ 8.61 7.29% $ 5,638 1.95% 7.66% 2.02% 7.59% 28% 8.35 1.04 4,240 1.91 7.89 1.92 7.88 80 8.90 5.16 1,241 1.65 6.46 1.73 6.38 90 9.08 (0.28) 1,058 1.55 7.34 1.90 6.99 40 $ 8.71 7.68% $ 1 1.20% 7.87% 1.26% 7.81% 28% 8.38 (0.24) -- 0.00 0.00 0.00 0.00 80 $ 8.64 7.79% $156,847 0.95% 8.71% 1.03% 8.63% 28% 8.38 2.12 155,146 0.90 8.89 0.92 8.87 80 8.92 5.94 237,730 0.90 7.26 0.91 7.25 90 9.09 5.96 184,666 0.90 8.56 0.93 8.53 40 9.27 (6.13) 54,491 0.90 8.44 1.05 8.29 61 ------- ----- -------- ---- ---- ---- ---- -- $ 10.76 0.40% $ 9,804 0.95% 4.67% 1.07% 4.55% 121% 11.01 10.88 7,751 1.04 5.15 1.19 5.00 22 10.44 6.05 3,644 1.04 5.36 1.15 5.25 23 10.34 1.37 4,620 0.98 5.15 1.09 5.04 26 10.74 6.66 4,664 0.97 5.35 1.07 5.25 55 10.62 5.20 5,181 0.97 5.56 1.07 5.46 100 $ 10.77 (0.04)% $ 2,909 1.70% 3.90% 1.82% 3.78% 121% 11.03 10.25 2,039 1.71 4.37 1.86 4.22 22 10.45 5.27 139 1.74 4.66 1.85 4.55 23 10.36 0.86 282 1.68 4.47 1.79 4.36 26 10.74 6.02 149 1.67 4.67 1.77 4.57 55 10.61 4.47 466 1.67 4.84 1.77 4.74 100 $ 10.73 (0.03)% $ 824 1.70% 3.91% 1.83% 3.78% 121% 11.00 0.18 105 0.82 5.26 1.12 4.96 22 $ 10.72 0.41% $ 22,137 0.95% 4.65% 1.07% 4.53% 121% 10.97 10.94 19,092 0.97 6.52 1.15 6.34 22 10.40 5.96 5,145 1.04 5.36 1.15 5.25 23 10.31 1.45 8,584 0.98 5.17 1.09 5.06 26 10.70 6.67 6,140 0.97 5.34 1.07 5.24 55 10.58 5.10 7,049 0.97 5.52 1.07 5.42 100 $ 10.76 0.53% $170,042 0.70% 4.90% 0.82% 4.78% 121% 11.01 11.14 183,883 0.71 5.37 0.85 5.23 22 10.44 6.34 53,896 0.74 5.66 1.15 5.25 23 10.34 1.67 72,483 0.68 5.45 1.09 5.04 26 10.74 6.98 93,683 0.67 5.64 1.07 5.24 55 10.62 5.51 72,753 0.67 5.84 1.07 5.44 100 ------- ----- -------- ---- ---- ---- ---- ---
FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2002 41) NOTES TO Financial STATEMENTS March 31, 2002 (unaudited) 1 > ORGANIZATION The First American Bond IMMDEX(TM) Fund, Corporate Bond Fund, Fixed Income Fund, High Yield Bond Fund, Intermediate Term Bond Fund, Short Term Bond Fund, Strategic Income Fund, and U.S. Government Securities Fund (each a "Fund" and collectively, the "Funds") are mutual funds offered by First American Investment Funds, Inc. ("FAIF"), which is a member of First American Family of Funds. FAIF currently offers 44 funds, including the Funds included in this report. FAIF is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. FAIF's articles of incorporation permit the Board of Directors to create additional funds in the future. FAIF offers Class A, Class B, Class C, Class S, and Class Y shares. Class A shares of Intermediate Term Bond Fund and Short Term Bond Fund are sold with a front-end sales charge of 2.25%. Class A shares of Bond IMMDEX(TM) Fund, Corporate Bond Fund, Fixed Income Fund, High Yield Bond Fund, Strategic Income Fund, and U.S. Government Securities Fund are sold with a front-end sales charge of 4.25%. Class B shares are subject to a contingent deferred sales charge for six years and automatically convert to Class A shares after eight years. Class C shares are sold with a front-end sales charge of 1.00% and are subject to a contingent deferred sales charge for 18 months. Class S and Class Y shares have no sales charge and are offered only to qualifying institutional investors. Class B and Class C shares are not offered by the Intermediate Term Bond Fund or Short Term Bond Fund. The Funds' prospectuses provide descriptions of each Fund's investment objectives, policies and strategies. All classes of shares in 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 - Security valuations for the Funds' investments are furnished by one or more independent pricing services that have been approved by the Board of Directors. Investments in equity securities that are traded on a national securities exchange (or reported on the NASDAQ national market system) are stated at the last quoted sales price if readily available for such securities on each business day. Other equity securities traded in the over-the-counter market and listed equity securities for which no sale was reported on that date are stated at the last quoted bid price. Debt obligations exceeding sixty days to maturity are valued by an independent pricing service. The pricing service may employ methodologies that utilize actual market transactions, broker-dealer supplied valuations, or other formula driven valuation techniques. These techniques generally consider such factors as yields or prices of bonds of comparable quality, type of issue, coupon, maturity, ratings and general market conditions. Securities for which prices are not available from an independent pricing service but where an active market exists are valued using market quotations obtained from one or more dealers that make markets in the securities or from a widely-used quotation system. When market quotations are not readily available, securities are valued at fair value as determined in good faith by procedures established and approved by the Board of Directors. Debt obligations with sixty days or less remaining until maturity may be valued at their amortized cost. Foreign securities are valued at the closing prices on the principal exchanges on which they trade. The prices for foreign securities are reported in local currency and converted to U.S. dollars using currency exchange rates. Exchange rates are provided daily by recognized independent pricing agents. Investments in open-end mutual funds are valued at the respective net asset value of each underlying Fund, determined at the close of the New York Stock Exchange (generally 3:00 p.m. central time) on the valuation date. SECURITY TRANSACTIONS AND INVESTMENT INCOME - The Funds record security transactions on the trade date of the security purchase or sale. Dividend income is recorded on the ex-dividend date. Interest income, including amortization of bond premium and discount, is recorded on an accrual basis. Security gains and losses are determined on the basis of identified cost, which is the same basis used for Federal income tax purposes. DISTRIBUTIONS TO SHAREHOLDERS - Distributions from net investment income are declared and paid on a monthly basis. Any net realized capital gains on sales of securities for a Fund are distributed to shareholders at least annually. EXPENSES - Expenses that are directly related to one of the Funds are charged directly to that Fund. Other operating expenses are allocated to the Funds on the basis of relative (42 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2002 net assets. 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 - It is each Fund's intention to continue to qualify as a regulated investment company and distribute all of its taxable income. Accordingly, no provision for Federal income taxes is required. Net investment income and net realized gains (losses) may differ for financial statement and tax purposes because of temporary or permanent book/tax differences. These differences are primarily due to losses deferred due to wash sales and foreign currency gains (losses). 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 difference arises. For Federal income tax purposes, required distributions related to realized gains from security transactions are computed as of September 30 and October 31. As of September 30, 2001, the following Funds had capital loss carryforwards (CLC) (000): POST CLC OCTOBER AMOUNT EXPIRATION DATE --------------------------------------------------------------------------- Corporate Bond Fund $ 4 $28,131 2005-2007 Fixed Income Fund* -- 48,075 2002-2008 High Yield Bond Fund -- 30 2009 Intermediate Term Bond Fund* 1,259 17,585 2002-2008 Short Term Bond Fund* -- 8,335 2002-2008 Strategic Income Fund* 6,185 21,721 2002-2009 U.S. Government Securities Fund -- 5,047 2003-2007 --------------------------------------------------------------------------- *In accordance with Section 382 of the Internal Revenue Code, utilization of the capital loss carryover is limited in the Fixed Income Fund, Intermediate Term Bond Fund, Short Term Bond Fund and Strategic Income Fund to $20,311,000, $2,720,000, $14,032,288 and $6,352,310, respectively per year. FOREIGN CURRENCY TRANSLATION - The books and records of the Strategic Income Fund are maintained in U.S. dollars on the following bases: o market value of investment securities, assets, and liabilities at the current rate of exchange; and o purchases and sales of investment securities, income, and expenses at the relevant rates of exchange prevailing on the respective dates of such transactions. The Strategic Income Fund does not isolate the portion of gains and losses on investments in equity securities that is due to changes in the foreign exchange rates from that which is due to changes in market prices of equity securities. The Strategic Income Fund does isolate the effect of fluctuations in foreign currency rates when determining the gain or loss upon sale or maturity of foreign currency denominated debt obligations pursuant to the Federal income tax regulations. Such amounts are categorized as foreign currency gain or loss for both financial reporting and income tax reporting purposes. The Strategic Income Fund reports certain foreign currency related transactions as components of realized gains for financial reporting purposes, whereas such components are treated as ordinary income for Federal income tax purposes. SECURITIES LENDING - Each Fund may lend up to one-third of the value of its total assets to broker-dealers, banks, or other institutional borrowers of securities in order to earn additional income. Each Fund's policy is to maintain collateral in the form of cash, United States 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. SECURITIES PURCHASED ON A WHEN-ISSUED BASIS - Delivery and payment for securities that have been purchased by a Fund on a forward commitment or when-issued basis can take place up to a month or more after the transaction date. During this period, such securities are subject to market fluctuations and the portfolio maintains, in a segregated account with its custodian, assets with a market value equal to or greater than the amount of its purchase commitments. The purchase of securities on a when-issued or forward commitment basis may increase the volatility of the Fund's net asset value if the Fund makes such purchases while remaining substantially fully invested. At March 31, 2002, Fixed Income Fund, Strategic Income Fund, and U.S. Government Securities Fund had outstanding when-issued commitments with a value of $59,062,405, $2,001,719, and $10,222,856, respectively. In connection with the ability to purchase securities on a when-issued basis, the Fixed Income Fund, Intermediate Term Bond Fund, and Strategic Income Fund may enter into dollar rolls in which the Fund sells securities purchased on a forward commitment basis and simultaneously contracts with a counterparty to repurchase similar (same type, coupon, and maturity) but not identical securities on a specified future date. Dollar rolls are considered a FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2002 43) NOTES TO Financial STATEMENTS March 31, 2002 (unaudited) form of leverage. As an inducement to "roll over" its purchase commitments, the Fund receives negotiated fees. For the six months ended March 31, 2002, the fees earned by each Fund are as follows (000): FEE INCOME EARNED ------------------------------------------------- Fixed Income Fund $549 Strategic Income Fund 50 ------------------------------------------------- ILLIQUID OR RESTRICTED SECURITIES - As of March 31, 2002, investments in securities in the Bond IMMDEX(TM) Fund, Corporate Bond Fund, Fixed Income Fund, High Yield Bond Fund, Intermediate Term Bond Fund, Short Term Bond Fund, and Strategic Income Fund included issues that are illiquid or restricted. Restricted securities are often purchased in private placement transactions, are not registered under the Securities Act of 1933, may have contractual restrictions on resale, and are valued under methods approved by the Board of Directors as reflecting fair value. A security may also be considered illiquid if it lacks a readily available market or if its valuation has not changed for a certain period of time. The Fund intends to invest no more than 15% of its net assets (determined at the time of purchase and reviewed periodically) in illiquid securities. Certain restricted securities, eligible for resale to qualified institutional investors, are not subject to that limitation. At March 31, 2002, the aggregate value of illiquid or restricted securities subject to this limitation in the Bond IMMDEX(TM) Fund, Corporate Bond Fund, Fixed Income Fund, High Yield Bond Fund, Intermediate Term Bond Fund, Short Term Bond Fund, and Strategic Income Fund was $2,580,000, $13,233,784, $7,912,560, $6,224,360, $3,415,961, $82,974 and $11,637,987, respectively. This represents 0.3%, 5.6%, 0.6%, 12.0%, 0.4%, 0.0%, and 6.3%, of the Bond IMMDEX(TM) Fund, Corporate Bond Fund, Fixed Income Fund, High Yield Bond Fund, Intermediate Term Bond Fund, Short Term Bond Fund, and Strategic Income Fund's net assets, respectively. Information concerning restricted securities is as follows: BOND IMMDEX(TM) FUND DATES SECURITY PAR ACQUIRED COST BASIS ------------------------------------------------------------------- Duty Free International $6,450,000 7/99 $6,422,846 ------------------------------------------------------------------- CORPORATE BOND FUND DATES SECURITY PAR ACQUIRED COST BASIS ------------------------------------------------------------------ Aircraft Finance Trust $ 1,000,000 2/00 $ 919,991 Burlington Resources 2,950,000 1/02 2,923,745 Devon Financing 2,950,000 12/01 2,846,260 Harman International 1,950,000 2/02 1,934,673 Impac Secured Assets CMN Owner Trust 1,691,000 11/01 1,695,676 Juniper 1,000,000 11/01 1,000,000 Weyerhauser 1,950,000 11/01 1,954,587 ------------------------------------------------------------------ FIXED INCOME FUND DATES SECURITY PAR ACQUIRED COST BASIS ------------------------------------------------------------------- Ohio Valley Electric $8,000,000 12/01 $8,000,000 ------------------------------------------------------------------- HIGH YIELD BOND FUND DATES SECURITY PAR ACQUIRED COST BASIS ------------------------------------------------------------------------ Corus Entertainment $ 500,000 2/02 $ 495,930 Coventry Health Care 750,000 1/02 750,000 Echostar DBS 1,000,000 12/01 1,004,779 Hanger Orthopedic 350,000 2/02 355,553 Meristar Hospitality 500,000 1/02 490,625 Owens-Brockway Glass Container 1,000,000 1/02 1,000,000 Panamsat 1,000,000 1/02 1,000,000 Paxson Communications 750,000 1/02 478,129 Six Flags 500,000 2/02 500,000 ------------------------------------------------------------------------ INTERMEDIATE TERM BOND FUND DATES SECURITY PAR ACQUIRED COST BASIS ---------------------------------------------------------------------- Impac Secured Assets CMN Owner Trust $3,382,139 2/01 $3,391,342 ---------------------------------------------------------------------- SHORT TERM BOND FUND DATES SECURITY PAR ACQUIRED COST BASIS ----------------------------- ----------- ------------- ----------- Auto Bond Receivables Trust $106,397 11/98-11/00 $106,396 Patten 94,828 7/95-9/00 94,129 ------------------------------------------------------------------------- STRATEGIC INCOME FUND DATES SECURITY PAR ACQUIRED COST BASIS --------------------------------------------------------------------------- Aircraft Finance Trust $1,000,000 2/00 $ 924,777 Bluewater Finance 1,300,000 2/02 1,280,110 Bulgaria Government 994,700 6/01 790,462 Diamond Brands Operating 50,000 4/98 50,000 Echostar DBS 1,000,000 12/01 1,004,779 Glenoit 100,000 3/97-8/97 101,991 Ingles Markets 500,000 2/02 500,000 Mellon Residential Funding 1,000,000 5/01 1,000,000 Meristar Hospitality 500,000 1/02 490,625 Owens-Brockway Glass Container 1,000,000 1/02 1,000,000 Pegasus Communications PFD 172,129 10/97 110,500 Petroplus Funding 2,750,000 10/00-2/01 2,454,220 Republic of Peru 1,887,000 2/02 1,844,203 --------------------------------------------------------------------------- (44 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2002 HISTORICAL FINANCIAL STATEMENT INFORMATION - The financial information presented for Bond IMMDEX(TM) Fund, Intermediate Term Bond Fund, and U.S. Government Securities Fund, prior to September 24, 2001, is that of Firstar Bond IMMDEX(TM) Fund, Firstar Intermediate Bond Fund, and Firstar U.S. Government Securities Fund, respectively. 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"), U.S. Bancorp Asset Management, Inc., formerly known as U.S. Bancorp Piper Jaffray Asset Management, Inc. (the "Advisor") manages each Fund's assets and furnishes related office facilities, equipment, research and personnel. The Agreement requires each Fund to pay the Advisor a monthly fee based upon average daily net assets. The fee for each Fund is equal to an annual rate as presented below applied to the Fund's average daily net assets. --------------------------------------------- Bond IMMDEX(TM) Fund 0.30% Corporate Bond Fund 0.70 Fixed Income Fund 0.50 High Yield Bond Fund 0.70 Intermediate Term Bond Fund 0.50 Short Term Bond Fund 0.50 Strategic Income Fund 0.70 U.S. Government Securities Fund 0.50 --------------------------------------------- The Advisor contractually waived fees during the current fiscal year so that total fund operating expenses did not exceed expense limitations described in the Funds' prospectuses. The Funds may invest in First American Funds, Inc. ("FAF"), subject to certain limitations. The terms of such transactions are identical to those of non-related entities except that, to avoid duplicative investment advisory fees, the Advisor reimburses each FAIF Fund an amount equal to the investment advisory fee earned by FAF related to such investments. SUB-ADVISOR FEES - Federated Global Research Corp., a subsidiary of Federated Investors, Inc. ("Federated") serves as sub-advisor to the Strategic Income Fund under an agreement with the Advisor (the "Sub-Advisory Agreement"). For its services under the Sub-Advisory Agreement, Federated is paid a monthly fee by the Advisor calculated on an annual basis equal to 0.20% of the first $25 million of the Fund's average daily net assets, 0.165% of the Fund's average daily net assets in excess of $25 million up to $50 million, 0.13% of the Fund's average daily net assets in excess of $50 million up to $100 million and 0.105% of the Fund's average daily net assets in excess of $100 million. ADMINISTRATION FEES - U.S. Bancorp Asset Management, Inc. ("USBAM"), and U.S. Bancorp Fund Services, LLC, formerly known as Firstar Mutual Fund Services, LLC ("USBFS"), (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") and USBFS is a subsidiary 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 0.25% of the aggregate average daily net assets up to $8 billion, 0.235% on the next $17 billion of aggregate average daily net assets, 0.22% on the next $25 billion of aggregate average daily net assets, and 0.20% of the aggregate average daily net assets of all open-end mutual funds in the First American Family of Funds in excess of $50 billion. In addition, the Funds pay the Administrators annual fees of $18,500 per class for transfer agent services. For the six months ended March 31, 2002, administration fees paid to USBAM and USBFS for the Funds included in this semiannual report were as follows (000): FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2002 45) NOTES TO Financial STATEMENTS March 31, 2002 (unaudited) USBAM USBFS --------------------------------------------------- Bond IMMDEX(TM) Fund $ 674 $153 Corporate Bond Fund 206 47 Fixed Income Fund 1,292 294 High Yield Bond Fund 41 9 Intermediate Term Bond Fund 832 189 Short Term Bond Fund 382 87 Strategic Income Fund 160 36 U.S. Government Securities Fund 183 42 --------------------------------------------------- CUSTODIAN FEES - Through a separate contractual agreement, U.S. Bank serves as the Funds' custodian (the "Custodian"). The fee for each Fund is equal to an annual rate of 0.01% of average daily net assets, which is computed daily and paid monthly. The Custodian is also reimbursed for any out-of-pocket expenses incurred while providing services to the Funds. DISTRIBUTION AND SHAREHOLDER SERVICING FEES - Quasar Distributors, LLC ("Quasar"), a subsidiary of U.S. Bancorp, served as the distributor of the Funds for the six months ended March 31, 2002. Under the distribution plan, each of the Funds pay 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 shares, 1.00% of the Class B shares, and 1.00% of the Class C shares, which may be used by Quasar to provide compensation for sales support and distribution activities. FAIF has also adopted and entered into a shareholder service plan and agreement with Quasar. Each Fund pays to Quasar a monthly shareholder servicing fee equal to an annual rate of 0.25% of each Fund's average daily net assets of the Class S shares. The Distributor is currently waiving fees equal to 0.10% of average daily net assets for Class A and Class S shares in the Intermediate Term Bond Fund and Short Term Bond Fund. No distribution fees are paid by Class Y shares. Under these agreements, Quasar paid the following amounts to affiliates of U.S. Bank for the six months ended March 31, 2002 (000): U.S. BANCORP U.S. BANK U.S. BANK PIPER JAFFRAY TRUST --------------------------------------------------------------------------- Bond IMMDEX(TM) Fund $103 $ 6 $16 Corporate Bond Fund 39 6 5 Fixed Income Fund 68 68 25 High Yield Bond Fund 3 39 -- Intermediate Term Bond Fund 20 14 5 Short Term Bond Fund 52 16 1 Strategic Income Fund 5 12 -- U.S. Government Securities Fund 17 1 23 --------------------------------------------------------------------------- TRANSFER AGENT FEES - USBFS is the transfer agent and dividend disbursement agent of FAIF, pursuant to the Co-Administration Agreement. Transfer agent fees of $7,388,661 in aggregate were paid to the Administrators for the six months ended March 31, 2002, for the First American Family of Funds. For the six months ended March 31, 2002, transfer agent fees paid to the Administrators for the Funds included in this semiannual report were as follows (000): ADMINISTRATORS --------------------------------------------------- Bond IMMDEX(TM) Fund $ 90 Corporate Bond Fund 69 Fixed Income Fund 158 High Yield Bond Fund 66 Intermediate Term Bond Fund 54 Short Term Bond Fund 105 Strategic Income Fund 76 U.S. Government Securities Fund 57 --------------------------------------------------- OTHER FEES - In addition to the investment advisory fees, custodian fees, distribution and shareholder servicing fees, fund accounting fees, administrator fees and transfer agent fees, each Fund is responsible for paying most other operating expenses including organization costs, 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, 2002, legal fees and expenses were paid to a law firm of which the Assistant Secretaries of the Funds are partners. SALES CHARGES - Class B shares are subject to a contingent deferred sales charge ("CDSC") imposed on redemptions made in Class B shares for the first six years. 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. 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 0.00% Eighth 0.00% --------------------------------------------------------- (46 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2002 Class B shares will automatically convert to Class A shares eight years after the first day of the month shares are purchased. A CDSC of 1.00% is imposed on redemptions made in Class C shares for the first eighteen months. The CDSC for Class B 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, 2002, sales charges for distributing the First American Family of Funds' shares were paid to Quasar. FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2002 47) NOTES TO Financial STATEMENTS March 31, 2002 (unaudited) 4 > CAPITAL SHARE TRANSACTIONS Capital share transactions for the Funds were as follows (000):
BOND IMMDEX(TM) CORPORATE FUND BOND FUND -------------------------------------- --------------------------- 10/1/01 11/1/00 11/1/99 10/1/01 10/1/00 to to to to to 3/31/02 9/30/01 10/31/00 3/31/02 9/30/01 --------------- ----------- ---------- --------------- ----------- (unaudited) (unaudited) Class A: Shares issued 273 827 308 153 346 Shares issued in lieu of cash distributions 75 127 163 23 20 Shares redeemed (329) (930) (979) (162) (85) Shares issued in connection with the acquisition of Fund net assets -- -- -- -- 623 - ----------------------------------------------------- ---------- ---- ---- ---------- --- TOTAL CLASS A TRANSACTIONS 19 24 (508) 14 904 ===================================================== ========== ==== ==== ========== === Class B: Shares issued 141 199 64 98 135 Shares issued in lieu of cash distributions 8 7 4 41 8 Shares redeemed (29) (12) (38) (186) (18) Shares issued in connection with the acquisition of Fund net assets -- -- -- -- 2,131 - ----------------------------------------------------- ---------- ---- ---- ---------- ----- TOTAL CLASS B TRANSACTIONS 120 194 30 (47) 2,256 ===================================================== ========== ==== ==== ========== ===== Class C: Shares issued 20 2 -- 109 568 Shares issued in lieu of cash distributions -- -- -- 14 29 Shares redeemed (1) -- -- (119) (89) - ----------------------------------------------------- ----------- ---- ---- ---------- ----- TOTAL CLASS C TRANSACTIONS 19 2 -- 4 508 ===================================================== ========== ==== ==== ========== ===== Class S: Shares issued 283 387 -- 199 123 Shares issued in lieu of cash distributions 12 5 -- 12 -- Shares redeemed (89) (38) -- (133) -- Shares issued in connection with the acquisition of Fund net assets -- -- -- -- 201 - ----------------------------------------------------- ---------- ---- ---- ---------- ----- TOTAL CLASS S TRANSACTIONS 206 354 -- 78 324 ===================================================== ========== ==== ==== ========== ===== Class Y: Shares issued 5,858 8,955 6,901 3,853 5,333 Shares issued in lieu of cash distributions 423 671 736 65 130 Shares redeemed (4,563) (4,864) (5,692) (1,987) (5,766) Shares issued in connection with the acquisition of Fund net assets -- -- -- -- 9,859 - ----------------------------------------------------- ---------- ------ ------ ---------- ------ TOTAL CLASS Y TRANSACTIONS 1,718 4,762 1,945 1,931 9,556 ===================================================== ========== ====== ====== ========== ====== NET INCREASE (DECREASE) IN CAPITAL SHARES 2,082 5,336 1,467 1,980 13,548 ===================================================== ========== ====== ====== ========== ======
[WIDE TABLE CONTINUED FROM ABOVE]
FIXED INCOME HIGH YIELD FUND BOND FUND --------------------------- ---------------------------- 10/1/01 10/1/00 10/1/01 8/30/01 (1) to to to to 3/31/02 9/30/01 3/31/02 9/30/01 --------------- ----------- --------------- ------------ (unaudited) (unaudited) Class A: Shares issued 2,122 5,029 5,746 17 Shares issued in lieu of cash distributions 189 400 153 -- Shares redeemed (2,452) (5,682) (2,076) -- Shares issued in connection with the acquisition of Fund net assets -- 393 -- -- - ----------------------------------------------------- ---------- ------ ---------- -- TOTAL CLASS A TRANSACTIONS (141) 140 3,823 17 ===================================================== ========== ====== ========== == Class B: Shares issued 201 399 40 4 Shares issued in lieu of cash distributions 27 51 1 -- Shares redeemed (156) (269) (2) -- Shares issued in connection with the acquisition of Fund net assets -- 67 -- -- - ----------------------------------------------------- ---------- ------ ---------- -- TOTAL CLASS B TRANSACTIONS 72 248 39 4 ===================================================== ========== ====== ========== == Class C: Shares issued 367 596 314 486 Shares issued in lieu of cash distributions 17 11 23 1 Shares redeemed (126) (30) (57) (84) - ----------------------------------------------------- ---------- ------ ---------- --- TOTAL CLASS C TRANSACTIONS 258 577 280 403 ===================================================== ========== ====== ========== === Class S: Shares issued 493 2 -- -- Shares issued in lieu of cash distributions 74 -- -- -- Shares redeemed (770) (90) -- -- Shares issued in connection with the acquisition of Fund net assets -- 3,173 -- -- - ----------------------------------------------------- ---------- ------ ---------- --- TOTAL CLASS S TRANSACTIONS (203) 3,085 -- -- ===================================================== ========== ====== ========== === Class Y: Shares issued 11,161 23,592 272 888 Shares issued in lieu of cash distributions 908 2,004 43 4 Shares redeemed (21,331) (48,136) (13) -- Shares issued in connection with the acquisition of Fund net assets -- 21,336 -- -- - ----------------------------------------------------- ---------- ------- ---------- --- TOTAL CLASS Y TRANSACTIONS (9,262) (1,204) 302 892 ===================================================== ========== ======= ========== === NET INCREASE (DECREASE) IN CAPITAL SHARES (9,276) 2,846 4,444 1,316 ===================================================== ========== ======= ========== =====
(1) Commencement of operations. (48 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2002
INTERMEDIATE TERM SHORT TERM BOND FUND BOND FUND -------------------------------------- --------------------------- 10/1/01 11/1/00 11/1/99 10/1/01 10/1/00 to to to to to 3/31/02 9/30/01 10/31/00 3/31/02 9/30/01 --------------- ----------- ---------- --------------- ----------- (unaudited) (unaudited) Class A: Shares issued 1,723 1,246 281 2,049 1,772 Shares issued in lieu of cash distributions 117 100 123 226 319 Shares redeemed (1,646) (1,172) (1,040) (1,564) (2,205) Shares issued in connection with the acquisition of Fund net assets -- 3,083 -- -- 4,912 - ----------------------------------------------------- ---------- ------ ------ ---------- ------ TOTAL CLASS A TRANSACTIONS 194 3,257 (636) 711 4,798 ===================================================== ========== ====== ====== ========== ====== Class B: Shares issued -- 49 16 -- -- Shares issued in lieu of cash distributions -- 2 1 -- -- Shares redeemed -- (80) (9) -- -- Shares issued in connection with the acquisition of Fund net assets -- -- -- -- -- - ----------------------------------------------------- ---------- ------ ------ ---------- ------ TOTAL CLASS B TRANSACTIONS -- (29) 8 -- -- ===================================================== ========== ====== ====== ========== ====== Class C: Shares issued -- -- -- -- -- Shares issued in lieu of cash distributions -- -- -- -- Shares redeemed -- -- -- -- -- - ----------------------------------------------------- ---------- ------ ------ ---------- ------ TOTAL CLASS C TRANSACTIONS -- -- -- -- -- ===================================================== ========== ====== ====== ========== ====== Class S: Shares issued 214 95 -- 71 4 Shares issued in lieu of cash distributions 3 -- -- 1 -- Shares redeemed (16) (25) -- (2) -- Shares issued in connection with the acquisition of Fund net assets -- -- -- -- 31 - ----------------------------------------------------- ---------- ------ ------ ---------- ------ TOTAL CLASS S TRANSACTIONS 201 70 -- 70 35 ===================================================== ========== ====== ====== ========== ====== Class Y: Shares issued 13,317 16,636 20,711 12,538 3,179 Shares issued in lieu of cash distributions 787 901 1,053 290 199 Shares redeemed (10,425) (12,060) (9,506) (5,675) (3,209) Shares issued in connection with the acquisition of Fund net assets -- 39,995 -- -- 17,529 - ----------------------------------------------------- ---------- ------- ------ ---------- ------ TOTAL CLASS Y TRANSACTIONS 3,679 45,472 12,258 7,153 17,698 ===================================================== ========== ======= ====== ========== ====== NET INCREASE (DECREASE) IN CAPITAL SHARES 4,074 48,770 11,630 7,934 22,531 ===================================================== ========== ======= ====== ========== ======
[WIDE TABLE CONTINUED FROM ABOVE]
STRATEGIC U.S. GOVERNMENT INCOME FUND SECURITIES FUND --------------------------- --------------------------------------- 10/1/01 10/1/00 10/1/01 11/1/00 12/1/99 to to to to to 3/31/02 9/30/01 3/31/02 9/30/01 10/31/00 --------------- ----------- --------------- ----------- ----------- (unaudited) (unaudited) Class A: Shares issued 118 839 242 225 5 Shares issued in lieu of cash distributions 57 114 18 20 16 Shares redeemed (254) (1,121) (53) (141) (119) Shares issued in connection with the acquisition of Fund net assets -- -- -- 251 -- - ----------------------------------------------------- ---------- ------ ---------- ---- ---- TOTAL CLASS A TRANSACTIONS (79) (168) 207 355 (98) ===================================================== ========== ====== ========== ==== ==== Class B: Shares issued 143 209 105 58 1 Shares issued in lieu of cash distributions 8 11 5 5 1 Shares redeemed (12) (87) (25) (23) (16) Shares issued in connection with the acquisition of Fund net assets -- -- -- 132 -- - ----------------------------------------------------- ---------- ------ ---------- ---- ---- TOTAL CLASS B TRANSACTIONS 139 133 85 172 (14) ===================================================== ========== ====== ========== ==== ==== Class C: Shares issued 159 428 67 10 -- Shares issued in lieu of cash distributions 19 17 1 -- -- Shares redeemed (31) (76) (1) -- -- - ----------------------------------------------------- ---------- ------ ----------- ---- ---- TOTAL CLASS C TRANSACTIONS 147 369 67 10 -- ===================================================== ========== ====== ========== ==== ==== Class S: Shares issued 15 -- 649 1,492 253 Shares issued in lieu of cash distributions -- -- 55 38 36 Shares redeemed (15) -- (379) (284) (627) Shares issued in connection with the acquisition of Fund net assets -- -- -- -- -- - ----------------------------------------------------- ---------- ------ ---------- ----- ---- TOTAL CLASS S TRANSACTIONS -- -- 325 1,246 (338) ===================================================== ========== ====== ========== ===== ==== Class Y: Shares issued 2,137 5,129 1,218 2,479 1,790 Shares issued in lieu of cash distributions 163 424 74 174 28 Shares redeemed (2,665) (13,690) (2,190) (5,212) (3,662) Shares issued in connection with the acquisition of Fund net assets -- -- -- 14,096 -- - ----------------------------------------------------- ---------- ------- ---------- ------ ------ TOTAL CLASS Y TRANSACTIONS (365) (8,137) (898) 11,537 (1,844) ===================================================== ========== ======= ========== ====== ====== NET INCREASE (DECREASE) IN CAPITAL SHARES (158) (7,803) (214) 13,320 (2,294) ===================================================== ========== ======= ========== ====== ======
FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2002 49) NOTES TO Financial STATEMENTS March 31, 2002 (unaudited) 5 > INVESTMENT SECURITY TRANSACTIONS During the six months ended March 31, 2002, purchases of securities and proceeds from sales of securities, other than temporary investments in short-term securities, were as follows (000): U.S. GOVERNMENT OTHER INVESTMENT SECURITIES SECURITIES --------------------------------------------------------------------------- PURCHASES SALES PURCHASES SALES --------------------------------------------------------------------------- Bond IMMDEX(TM) Fund $ 83,458 $ 45,213 $ 63,358 $ 44,239 Corporate Bond Fund 41,770 41,381 126,868 105,306 Fixed Income Fund 419,284 565,645 145,310 140,128 High Yield Bond Fund 6,631 9,721 56,100 12,864 Intermediate Term Bond Fund 84,021 35,158 43,858 51,316 Short Term Bond Fund 114,116 91,919 143,217 87,563 Strategic Income Fund 3,431 8,068 44,713 55,902 U.S. Government Securities Fund 213,333 236,642 21,145 4,335 -------------------------------------------------------------------------- At March 31, 2002, the total cost of securities for Federal income tax purposes was not materially different from amounts reported for financial reporting purposes. The aggregate gross unrealized appreciation and depreciation for securities held by the Funds at March 31, 2002, is as follows (000): AGGREGATE GROSS AGGREGATE GROSS APPRECIATION (DEPRECIATION) NET -------------------------------------------------------------------------- Bond IMMDEX(TM) Fund $25,607 $ (17,177) $ 8,430 Corporate Bond Fund 2,199 (6,306) (4,107) Fixed Income Fund 26,008 (16,164) 9,844 High Yield Bond Fund 910 (1,491) (581) Intermediate Term Bond Fund 20,571 (12,237) 8,334 Short Term Bond Fund 4,196 (3,226) 970 Strategic Income Fund 6,804 (10,126) (3,322) U.S. Government Securities Fund 1,964 (1,848) 116 -------------------------------------------------------------------------- 6 > SECURITIES LENDING TRANSACTIONS In order to generate additional income, certain Funds may lend portfolio securities representing up to one-third of the value of total assets (which includes collateral received for securities on loan) to broker dealers, banks, or other institutional borrowers of securities. 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. The market value of the securities on loan at March 31, 2002, the collateral held at March 31, 2002, with respect to such loans, and income generated during the six months ended March 31, 2002, from the program were as follows (000): MARKET VALUE OF INCOME RECEIVED FUND LOANED SECURITIES FROM SECURITIES LENDING --------------------------------------------------------------------------- Bond IMMDEX(TM) Fund $349,395 $179 Corporate Bond Fund 20,126 12 Fixed Income Fund 411,397 246 Intermediate Term Bond Fund 410,332 201 Short Term Bond Fund 106,327 73 --------------------------------------------------------------------------- MARKET VALUE OF COLLATERAL PURCHASED WITH CASH RECEIVED --------------------------------------------------------------------------- OTHER FIXED REPURCHASE MONEY MARKET INCOME FUND AGREEMENTS INSTRUMENTS SECURITIES TOTAL --------------------------------------------------------------------------- Bond IMMDEX(TM) Fund $175,588 $36,091 $144,469 $356,148 Corporate Bond Fund 10,191 2,095 8,385 20,671 Fixed Income Fund 202,707 41,665 166,782 411,153 Intermediate Term Bond Fund 206,651 42,475 170,027 419,153 Short Term Bond Fund 53,629 11,023 44,124 108,776 --------------------------------------------------------------------------- (50 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2002 Effective January 1, 2002, USBAM began serving as the securities lending agent for the Funds. Prior to that date, U.S. Bank served as the securities lending agent for the Funds. The securities lending agent acts as the securities lending agent in transactions involving the lending of portfolio securities on behalf of the Funds. For these services, USBAM/U.S. Bank received $1,543,087 in aggregate securities lending fees for the six months ended March 31, 2002, for the First American Family of Funds. For the six months ended March 31, 2002, securities lending fees for the Funds included in this semi-annual report were as follows (000): ------------------------------------- Bond IMMDEX(TM) Fund $114 Corporate Bond Fund 8 Fixed Income Fund 145 Intermediate Term Bond Fund 130 Short Term Bond Fund 35 ------------------------------------- 7 > CONCENTRATION OF RISKS The Strategic Income Fund is subject to special risks associated with investing in foreign securities and to a decline in net asset value resulting from changes in exchange rates between the United States dollar and foreign currencies. The Strategic Income Fund is also subject to risks associated with investing in securities issued by issuers in emerging market countries. Because of the special risks associated with foreign investing, the Strategic Income Fund may be subject to greater volatility than most mutual funds which invest primarily in domestic securities. Strategic Income Fund and the High Yield Bond Fund invest in lower-rated (i.e., rated Ba or lower by Moody's or BB or lower by Standard & Poor's) corporate and foreign debt obligations, which are commonly referred to as "junk bonds". Lower-rated securities will usually offer higher yields than higher-rated securities. However, there is more risk associated with these investments. These lower-rated bonds may be more susceptible to real or perceived adverse economic conditions than investment grade bonds. Lower-rated securities tend to have more price volatility and carry more risk to principal than higher-rated securities. The rating of long-term securities as a percentage of total value of investments at March 31, 2002, is as follows: STANDARD & POOR'S/ STRATEGIC HIGH YIELD MOODY'S RATINGS INCOME FUND BOND FUND ------------------------------------------------- AAA/Aaa 33% 3% AA/Aa 1 -- A/A 3 -- BBB/Baa 3 10 BB/Ba 26 33 B/B 31 53 CCC/Caa 2 1 NR 1 -- ------------------------------------------------- 100% 100% Securities rated by only one agency are shown in that category. Securities rated by both agencies are shown with their highest rating. FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2002 51) NOTES TO Financial STATEMENTS March 31, 2002 (unaudited) 8 > FUND MERGERS On August 31, 2001, shareholders of FAIF approved the Agreement and Plan of Reorganization recommended by the Board of Directors, providing for the acquisition of Firstar Funds, Inc. On September 24, 2001, certain portfolios of FAIF, including newly formed shell portfolios (which were organized solely to acquire the assets and continue business of certain portfolios of the Firstar Funds) merged with certain portfolios of the Firstar Funds. The following table illustrates the specifics of the mergers of certain Funds included in this semiannual report (000):
ACQUIRED FUND ACQUIRING FUND -------------------------------------------------------------------------------------------------- Firstar Short Term Bond Fund First American Short Term Bond Fund (1) Class A Class A Class Y Class S Institutional Class Class Y Firstar Intermediate Bond Fund (1) First American Intermediate Term Bond Fund Class A Class A Institutional Class Class Y Firstar Aggregate Bond Fund First American Fixed Income Fund (1) Class A Class A Class B Class B Class Y Class S Institutional Class Class Y Firstar Bond IMMDEX(TM) Fund (1) First American Bond IMMDEX(TM) Fund (2) Class A Class A Class B Class B Class Y Class S Institutional Class Class Y Firstar U.S. Government Securities Fund (1) First American U.S. Government Securities Fund (2) Class A Class A Class B Class B Class Y Class S Institutional Class Class Y Firstar Strategic Income Fund First American Corporate Bond Fund (1) Class A Class A Class B Class B Class C Class C Institutional Class Class Y --------------------------------------------------------------------------------------------------
[WIDE TABLE CONTINUED FROM ABOVE]
ACQUIRED SHARES ISSUED TO FUND'S NET SHAREHOLDERS OF ACQUIRING FUND COMBINED TAX STATUS ACQUIRED FUND ASSETS ACQUIRED FUND NET ASSETS NET ASSETS OF TRANSFER ------------------------------------------------------------------------------------------------------------------------------ Firstar Short Term Bond Fund $ 230,274 (3) $ 181,426 $ 411,700 Non-taxable Class A 4,912 Class Y 31 Institutional Class 17,529 Firstar Intermediate Bond Fund (1) $ 381,127 (4) $ 553,802 $ 934,929 Non-taxable Class A 3,042 Institutional Class 36,748 Firstar Aggregate Bond Fund $ 281,309 (5) $1,256,927 $1,538,236 Non-taxable Class A 393 Class B 67 Class Y 3,173 Institutional Class 21,336 Firstar Bond IMMDEX(TM) Fund (1) $ 752,066 $ -- $ 752,066 Non-taxable Class A 2,993 Class B 285 Class Y 322 Institutional Class 23,377 Firstar U.S. Government Securities Fund (1) $ 212,343 $ -- $ 212,343 Non-taxable Class A 703 Class B 174 Class Y 1,476 Institutional Class 17,019 Firstar Strategic Income Fund $ 127,046 (6) $ 95,071 $ 222,117 Non-taxable Class A 3,380 Class B 1,293 Class C 4,893 Institutional Class 85,505 ------------------------------------------------------------------------------------------------------------------------------
(1) Accounting survivor (2) Shell portfolio (3) Includes capital loss carryovers and unrealized appreciation in the amount of $3,259 and $7,180, respectively. (4) Includes capital loss carryovers and unrealized appreciation in the amount of $18,090 and $14,167, respectively. (5) Includes capital loss carryovers and unrealized appreciation in the amount of $3,378 and $9,475, respectively. (6) Includes capital loss carryover and unrealized depreciation in the amount of $28,214 and $68, respectively. On November 27, 2000, the Class A and Class B shares of the Firstar Stellar U.S. Government Income Fund and the Class A, Class B, Class Y and Institutional Class shares of the Mercantile U.S. Government Securities Portfolio were merged into a Firstar U.S. Government Securities Fund shell portfolio. The value of assets transferred at the time of the tax-free merger was $150,558 for the Firstar Stellar U.S. Government Income Fund and $62,369 for the Mercantile U.S. Government Securities Portfolio. Shares issued to shareholders of the Firstar Stellar U.S. Government Income Fund were 14,341 and 132 shares for Class A and Class B, respectively. Net assets at the time of the merger for Firstar Stellar U.S. Government Income Fund included capital loss carryovers and unrealized depreciation of $4,134 and $370, respectively. On November 27, 2000, the Class A, Institutional Class and Trust Class shares of the Mercantile Intermediate Corporate Bond Portfolio were merged into Class A, Class Y and Class I shares of the Firstar Intermediate Bond Market Fund, respectively. The value of assets transferred at the time of the tax-free merger was $33,573 for the Mercantile Intermediate Corporate Bond Portfolio. Shares issued to shareholders of the Mercantile Intermediate Corporate Bond Portfolio were 41, 4, and 3,248 shares for Class A, Class Y and Class I, respectively. (52 FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2002 BOARD OF DIRECTORS First American Investment Funds, Inc. ROBERT DAYTON Director of First American Investment Funds, Inc. Retired; former Chief Executive Officer of Okabena Company ROGER GIBSON Director of First American Investment Funds, Inc. Vice President of North America-Mountain Region for United Airlines ANDREW HUNTER III Director of First American Investment Funds, Inc. Chairman of Hunter, Keith Industries, Inc. LEONARD KEDROWSKI Director of First American Investment Funds, Inc. Owner and President of Executive Management Consulting, Inc. JOHN MURPHY JR. Director of First American Investment Funds, Inc. Executive Vice President of U.S. Bancorp RICHARD RIEDERER Director of First American Investment Funds, Inc. Retired; former President and Chief Executive Officer of Weirton Steel JOSEPH STRAUSS Director of First American Investment Funds, Inc. Former Chairman of First American Investment Funds, Inc. Owner and President of Strauss Management Company VIRGINIA STRINGER Chairperson of First American Investment Funds, Inc. Owner and President of Strategic Management Resources, Inc. JAMES WADE Director of First American Investment Funds, Inc. Owner and President of Jim Wade Homes [LOGO] FIRST AMERICAN FUNDS(TM) DIRECT FUND CORRESPONDENCE TO: FIRST AMERICAN FUNDS P.O. Box 1330 Minneapolis, MN 55440-1330 This report and the financial statements contained herein are submitted for the general information of the shareholders of the corporation and are not intended to be a forecast of future events, a guarantee of future results, nor investment advice. Further, there is no assurance that certain securities will remain in or out of each fund's portfolio. For a prospectus or fund profile containing more information on First American Funds, including investment policies, fees, and expenses, please contact your investment professional, call First American Funds Investor Services at 800.677.FUND, or visit us on the web at firstamericanfunds.com. Please read the prospectus or profile carefully before you invest or send money. Past performance does not guarantee future results. The principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. INVESTMENT ADVISOR AND ADMINISTRATOR U.S. BANCORP ASSET MANAGEMENT, INC., A SUBSIDIARY OF U.S. BANK NATIONAL ASSOCIATION 800 Nicollet Mall Minneapolis, Minnesota 55402 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, WI 53202 INDEPENDENT AUDITORS ERNST & YOUNG LLP 1400 Pillsbury Center 200 South Sixth Street Minneapolis, Minnesota 55402 COUNSEL DORSEY & WHITNEY LLP 50 South Sixth Street Minneapolis, Minnesota 55402 - -------------------------------------------------------------------------------- Bulk Rate FIRST AMERICAN FUNDS U.S. Postage P.O. Box 1330 PAID Minneapolis, MN 55440-1330 Mpls, MN Permit No. 26388 In an attempt to reduce shareholder costs and help eliminate duplication, the 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 Funds Investor Services at 800.677.FUND. 2100-02 5/2002 BONDSAR -----END PRIVACY-ENHANCED MESSAGE-----