-----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, CprevEPwmZt2u18wXMVfAbO7KZusTAC+nOfHBBIFfjhC+B1UmXjrCSmqHVv4OpPl jRsFBtWcAytcywSgpmhbGQ== 0001047469-03-020126.txt : 20030530 0001047469-03-020126.hdr.sgml : 20030530 20030530124224 ACCESSION NUMBER: 0001047469-03-020126 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030331 FILED AS OF DATE: 20030530 EFFECTIVENESS DATE: 20030530 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIRST AMERICAN INVESTMENT FUNDS INC CENTRAL INDEX KEY: 0000820892 IRS NUMBER: 411418224 STATE OF INCORPORATION: MD FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-05309 FILM NUMBER: 03725093 BUSINESS ADDRESS: STREET 1: 800 NICOLLET MALL STREET 2: BC-MN-H210 CITY: MINNEAPOLIS STATE: MN ZIP: 55402 BUSINESS PHONE: 6123031606 MAIL ADDRESS: STREET 1: 800 NICOLLET MALL STREET 2: BC-MN-H210 CITY: MINNEAPOLIS STATE: MN ZIP: 55402 FORMER COMPANY: FORMER CONFORMED NAME: SECURAL MUTUAL FUNDS INC DATE OF NAME CHANGE: 19910627 N-CSR 1 a2109393zn-csr.txt N-CSR ----------------------------- OMB APPROVAL ----------------------------- OMB Number: 3235-0570 Expires: November 30, 2005 Estimated average burden hours per response....... 5.0 ----------------------------- UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-05309 --------------------------------------------- First American Investment Funds, Inc. - ------------------------------------------------------------------------------- (Exact name of registrant as specified in charter) 800 Nicollet Mall Minneapolis, MN 55402 - ------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) Robert H. Nelson 800 Nicollet Mall Minneapolis, MN 55402 - ------------------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: 800-677-3863 ---------------------------- Date of fiscal year end: September 30, 2003 -------------------------- Date of reporting period: March 31, 2003 ------------------------- Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. Section 3507. Item 1. Report to Shareholders [FIRST AMERICAN FUNDS(TM) LOGO] 2003 SEMIANNUAL REPORT INDEX FUNDS OUR STRENGTH WE ARE A PERFORMANCE-DRIVEN, INDEPENDENT-STYLE FIRM, BACKED BY THE RESOURCES AND STABILITY OF A LEADING FINANCIAL ORGANIZATION. OUR GOAL SUPERIOR LONG-TERM PERFORMANCE. OUR PLEDGE WE TAILOR OUR APPROACH TO YOUR INVESTMENT NEEDS AND MEASURE OUR PERFORMANCE AGAINST YOUR GOALS. [GRAPHIC] FIRST AMERICAN FUNDS ON THE COVER OUR CORPORATE CONSTITUTION THIS STATEMENT IS DESIGNED TO CAPTURE THE CHARACTER AND AMBITION OF OUR FIRM. WE ARE FOUNDED ON STRENGTH, FOCUSED ON OUR GOAL, AND COMMITTED TO OUR PLEDGE. OUR IMAGE-GEORGE WASHINGTON HIS RICH LEGACY AS PATRIOT AND LEADER IS WIDELY RECOGNIZED AS EMBODYING THE SOUND JUDGMENT, RELIABILITY, AND STRATEGIC VISION THAT ARE CENTRAL TO OUR BRAND. FASHIONED IN A STYLE REMINISCENT OF AN 18TH-CENTURY ENGRAVING, THE ILLUSTRATION CONVEYS THE SYMBOLIC STRENGTH AND VITALITY OF WASHINGTON, WHICH ARE ATTRIBUTES THAT WE VALUE AT FIRST AMERICAN FUNDS. MUTUAL FUND INVESTING INVOLVES RISK; PRINCIPAL LOSS IS POSSIBLE. NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE [SIDENOTE] OUR FUND FAMILY - HIGHER RISK AND RETURN POTENTIAL SECTOR FUNDS INTERNATIONAL FUND SMALL CAP FUNDS MID CAP FUNDS LARGE CAP FUNDS GROWTH & INCOME FUNDS - INDEX FUNDS - EQUITY INDEX - MID CAP INDEX - SMALL CAP INDEX ASSET ALLOCATION FUNDS BOND FUNDS TAX FREE BOND FUNDS MONEY MARKET FUNDS - LOWER RISK AND RETURN POTENTIAL FUND CATEGORIES ARE PRESENTED ACCORDING TO RISK AND RETURN POTENTIAL. FUNDS WITHIN EACH CATEGORY ARE LISTED IN ALPHABETICAL ORDER. FIRST AMERICAN FUNDS ONLINE @ firstamericanfunds.com Visit the First American Funds website for useful information on each of our funds, including fund prices, performance, fund management bios, dividends, and downloadable fact sheets. You'll also find college and retirement planning tools and general investor education. [GRAPHIC] ONLINE FEATURES AND FUNCTIONALITY INCLUDE: - - The ability to deepen your understanding of the fund family by learning about the full range of investment choices available to you through First American Funds - - The ability to educate yourself through market and investment strategy commentaries We stand behind our commitment to serve you with excellence. For more information, call First American Funds Investor Services at 800.677.FUND or visit firstamericanfunds.com. [SIDENOTE] TABLE OF CONTENTS Schedule of Investments 2 Statements of Assets and Liabilities 32 Statements of Operations 33 Statements of Changes in Net Assets 34 Financial Highlights 36 Notes to Financial Statements 40 1 SCHEDULE OF INVESTMENTS MARCH 31, 2003 (UNAUDITED)
EQUITY INDEX FUND DESCRIPTION SHARES VALUE (000) - -------------------------------------------------------------------------------- COMMON STOCKS - 97.2% CONSUMER DISCRETIONARY - 13.3% American Greetings, Cl A* 13,500 $ 177 AOL Time Warner* 916,300 9,951 AutoNation* 63,170 805 Autozone* (A) 20,966 1,441 Bed Bath & Beyond* 60,276 2,082 Best Buy* (A) 65,951 1,779 Big Lots* 23,808 268 Black & Decker 16,275 567 Brunswick 18,482 351 Carnival (A) 120,313 2,901 Centex (A) 12,650 688 Circuit City Stores 43,155 224 Clear Channel Communications* 125,602 4,260 Comcast, Cl A* (A) 473,103 13,526 Cooper Tire & Rubber 12,899 157 Costco Wholesale* (A) 92,059 2,765 Dana 30,456 215 Darden Restaurants 35,039 625 Delphi Automotive Systems 112,793 770 Dillards, Cl A (A) 17,102 221 Dollar General 68,320 834 Dow Jones & Company (A) 16,792 595 Eastman Kodak (A) 59,808 1,770 eBay* (A) 63,284 5,397 Family Dollar Stores 34,937 1,079 Federated Department Stores* (A) 39,618 1,110 Ford Motor (A) 376,166 2,829 Fortune Brands 30,596 1,312 Gannett (A) 54,786 3,859 Gap (A) 181,181 2,625 General Motors (A) 114,879 3,862 Goodyear Tire & Rubber* (A) 35,413 183 Harley-Davidson (A) 62,036 2,463 Harrah's Entertainment* 22,916 818 Hasbro (A) 35,497 493 Hilton Hotels 77,138 896 Home Depot (A) 476,740 11,613 International Game Technology* (A) 17,504 1,434 Interpublic Group of Companies (A) 79,051 735 J.C. Penney (A) 55,002 1,080 Johnson Controls (A) 17,857 1,294 Jones Apparel Group* (A) 26,415 725 KB HOME (A) 9,902 450 Knight-Ridder (A) 16,636 973 Kohl's* (A) 69,112 3,910 Leggett & Platt 37,997 695 Limited 107,232 1,380 Liz Claiborne 21,904 677 Lowe's (A) 160,079 6,534 Marriott International, Cl A (A) 47,928 1,525 Mattel (A) 89,625 2,017 May Department Stores (A) 58,217 1,158 Maytag 15,997 304 McDonald's 257,051 3,717 McGraw-Hill (A) 39,728 2,208 Meredith 10,017 382 New York Times, Cl A 31,023 1,339 Newell Rubbermaid (A) 54,798 $ 1,554 Nike, Cl B (A) 54,210 2,787 Nordstrom 27,758 450 Office Depot* 63,254 748 Omnicom Group (A) 38,549 2,088 Pulte 12,627 633 RadioShack (A) 34,527 770 Reebok International* 12,293 404 Sears Roebuck and Company (A) 64,834 1,566 Sherwin Williams 30,722 812 Snap-On Tools (A) 11,800 292 Stanley Works 18,097 434 Staples* (A) 97,021 1,778 Starbucks* (A) 79,454 2,047 Starwood Hotels & Resorts Worldwide 40,939 974 Target (A) 186,279 5,451 Tiffany & Company (A) 29,754 744 TJX 107,694 1,895 TMP Worldwide* 22,790 245 Toys ORO Us* (A) 43,551 365 Tribune (A) 62,473 2,812 Tupperware 11,960 165 Univision Communications, Cl A* (A) 46,959 1,151 V.F 22,274 838 Viacom, Cl B* 360,988 13,183 Visteon 25,007 149 Wal-Mart Stores (A) 900,554 46,856 Walt Disney (A) 415,096 7,065 Wendy's International 23,657 651 Whirlpool 13,775 675 Yum! Brands* 59,692 1,452 ----------- 219,082 ----------- CONSUMER STAPLES - 8.8% Alberto-Culver (A) 11,971 590 Albertson's (A) 77,722 1,465 Altria Group 423,466 12,687 Anheuser-Busch (A) 175,449 8,178 Archer-Daniels-Midland (A) 132,343 1,429 Avon Products (A) 48,235 2,752 Campbell Soup (A) 84,119 1,767 Clorox (A) 45,105 2,083 Coca-Cola 504,557 20,424 Coca-Cola Enterprises 90,767 1,696 Colgate-Palmolive (A) 110,330 6,006 ConAgra Foods 108,473 2,178 Coors Adolph 7,436 361 CVS (A) 80,542 1,921 General Mills (A) 74,317 3,385 Gillette (A) 213,416 6,603 H.J. Heinz (A) 70,913 2,071 Hershey Foods (A) 27,498 1,723 Kellogg (A) 82,460 2,527 Kimberly-Clark 105,430 4,793 Kroger* 156,178 2,054 McCormick 28,680 692 Pepsi Bottling 57,493 1,031 PepsiCo (A) 354,016 14,161 Procter & Gamble (A) 262,443 23,371 R J Reynolds Tobacco Holdings 17,650 569 Safeway* (A) 92,787 1,756
The accompanying notes are an integral part of the financial statements. 2
DESCRIPTION SHARES VALUE (000) - ------------------------------------------------------------------------------- Sara Lee (A) 160,434 $ 3,000 SUPERVALU 27,403 425 Sysco (A) 133,997 3,409 UST (A) 33,212 917 Walgreen (A) 207,013 6,103 Winn-Dixie Stores 28,863 382 Wrigley, William Jr. (A) 43,192 2,440 ----------- 144,949 ----------- ENERGY - 6.0% Amerada Hess (A) 18,286 809 Anadarko Petroleum (A) 50,216 2,285 Apache 32,767 2,023 Ashland 13,989 415 Baker Hughes (A) 69,062 2,067 BJ Services* (A) 32,343 1,112 Burlington Resources (A) 41,265 1,969 ChevronTexaco (A) 213,915 13,830 Conoco, Cl B 136,713 7,328 Devon Energy 32,111 1,548 EOG Resources 23,681 937 Exxon Mobil (A) 1,373,250 47,995 Halliburton (A) 89,455 1,854 Kerr-McGee 20,271 823 Marathon Oil 63,984 1,534 Nabors Industries* (A) 29,664 1,183 Noble* 27,437 862 Occidental Petroleum (A) 76,134 2,281 Rowan* (A) 19,173 377 Schlumberger 119,345 4,536 Sunoco 15,646 572 Transocean Sedco Forex 65,439 1,338 Unocal 52,094 1,371 ----------- 99,049 ----------- FINANCIALS - 19.5% ACE 53,843 1,559 AFLAC 105,810 3,391 Allstate 144,092 4,780 Ambac Financial Group (A) 21,722 1,097 American Express 269,410 8,952 American International Group (A) 534,713 26,442 AmSouth Bancorp 71,786 1,427 Aon (A) 63,501 1,313 Apartment Investment & Management (REIT) 18,920 690 Bank of America 307,955 20,584 Bank of New York (A) 157,080 3,220 Bank One (A) 238,609 8,261 BB&T (A) 94,728 2,977 Bear Stearns (A) 20,645 1,354 Capital One Financial (A) 45,483 1,365 Charles Schwab (A) 275,424 1,989 Charter One Financial 46,319 1,281 Chubb 35,062 1,554 Cincinnati Financial 32,443 1,138 Citigroup 1,053,748 36,302 Comerica 35,815 1,357 Equity Office Properties Trust (REIT) 80,847 2,058 Equity Residential Properties Trust (REIT) (A) 55,516 1,336 Fannie Mae 203,956 13,329 Federal Home Loan Mortgage 142,442 $ 7,564 Fifth Third Bancorp 118,286 5,931 First Tennessee National (A) 24,344 967 FleetBoston Financial 215,147 5,138 Franklin Resources 52,765 1,736 Golden West Financial 36,649 2,636 Goldman Sachs Group (A) 96,744 6,586 H & R Block (A) 36,501 1,558 Hartford Financial Services Group (A) 52,357 1,848 Huntington Bancshares (A) 47,332 880 J P Morgan Chase (A) 409,252 9,703 Janus Capital Group 45,601 519 Jefferson-Pilot (A) 28,591 1,100 John Hancock Financial Services 59,055 1,641 KeyCorp 85,826 1,936 Lehman Brothers Holdings (A) 49,716 2,871 Lincoln National 36,295 1,016 Loew's 38,013 1,514 Marsh & McLennan 110,084 4,693 Marshall & Ilsley 44,107 1,127 MBIA (A) 29,746 1,149 MBNA 261,897 3,942 Mellon Financial 88,332 1,878 Merrill Lynch & Company (A) 177,195 6,273 Metlife (A) 143,548 3,787 MGIC Investment (A) 20,595 809 Moody's (A) 30,975 1,432 Morgan Stanley (A) 222,055 8,516 National City 123,590 3,442 North Fork Bancorp (A) 33,105 975 Northern Trust (A) 45,286 1,379 Plum Creek Timber 37,336 806 PNC Financial Services (A) 58,212 2,467 Principal Financial Group (A) 68,630 1,863 Progressive (A) 44,639 2,648 Providian Financial* 59,249 389 Prudential Financial (A) 116,045 3,394 Regions Financial (A) 46,657 1,512 SAFECO (A) 27,915 976 Simon Property Group (REIT) (A) 36,214 1,298 SLM (A) 31,014 3,440 SouthTrust 70,061 1,789 St. Paul Companies (A) 46,421 1,476 State Street (A) 68,084 2,153 SunTrust Banks (A) 55,975 2,947 Synovus Financial (A) 62,439 1,117 T. Rowe Price Group 25,071 680 Torchmark 24,280 869 Travelers Property Casualty, Cl B 206,229 2,910 U.S. Bancorp (A) 386,919 7,344 Union Planters 40,018 1,052 UnumProvident (A) 49,506 485 Wachovia 274,762 9,361 Washington Mutual (A) 194,052 6,844 Wells Fargo 346,802 15,603 XL Capital Limited, Cl A 27,454 1,943 Zions Bancorporation 18,364 786 ----------- 319,943 -----------
3
DESCRIPTION SHARES VALUE (000) - ------------------------------------------------------------------------------- HEALTH CARE - 15.1% Abbott Laboratories 320,469 $ 12,053 Aetna 30,855 1,521 Allergan (A) 26,527 1,809 AmerisourceBergen (A) 22,594 1,186 Amgen* (A) 263,826 15,183 Anthem* 28,989 1,921 Applera - Applied Biosystems Group (A) 42,938 680 Bard C.R 10,444 659 Bausch & Lomb (A) 10,893 358 Baxter International (A) 121,616 2,267 Becton, Dickinson & Company (A) 51,858 1,786 Biogen* 30,560 916 Biomet (A) 53,077 1,627 Boston Scientific* (A) 83,597 3,407 Bristol-Myers Squibb 391,249 8,267 Cardinal Health (A) 92,684 5,280 Chiron* (A) 38,196 1,432 Cigna (A) 28,612 1,308 Eli Lilly 229,804 13,133 Forest Laboratories, Cl A* (A) 74,408 4,016 Genzyme* (A) 43,979 1,603 Guidant* (A) 62,898 2,277 HCA 105,076 4,346 Health Management Associates, Cl (A) 48,921 930 Humana* 33,258 319 Johnson & Johnson (A) 608,915 35,238 King Pharmaceuticals* (A) 49,349 589 Manor Care* (A) 19,258 370 McKesson HBOC (A) 59,642 1,487 MedImmune* (A) 51,558 1,693 Medtronic (A) 247,685 11,176 Merck 460,301 25,215 Pfizer (A) 1,263,128 39,359 Pharmacia 261,641 11,329 Quest Diagnostics* (A) 21,560 1,287 Quintiles Transnational* 23,778 289 Schering-Plough 300,631 5,360 St. Jude Medical* (A) 36,399 1,774 Stryker (A) 39,987 2,745 Tenet Healthcare* (A) 98,508 1,645 UnitedHealth Group (A) 62,409 5,721 Watson Pharmaceuticals* (A) 21,920 631 Wellpoint Health Networks* 30,494 2,340 Wyeth (A) 271,730 10,277 Zimmer Holdings* (A) 39,976 1,944 ----------- 248,753 ----------- INDUSTRIALS - 10.4% 3M (A) 79,982 10,400 Allied Waste Industries* 39,825 318 American Power Conversion* 40,201 572 American Standard* 14,854 1,022 Apollo Group, Cl A* (A) 35,731 1,783 Avery Dennison 22,175 1,301 Boeing (A) 169,571 4,249 Burlington Northern Santa Fe 77,598 1,932 Caterpillar (A) 70,551 3,471 Cendant* (A) 211,155 2,682 Cintas Group (A) 34,906 1,148 Concord EFS* 104,285 $ 980 Convergys* (A) 35,570 470 Cooper Industries 19,109 682 Crane 12,022 209 CSX (A) 45,884 1,309 Cummins Engine 8,380 206 Danaher (A) 31,240 2,054 Deere & Company 49,039 1,925 Delta Air Lines (A) 24,329 217 Donnelley RR & Sons 22,891 419 Dover (A) 41,476 1,005 Eaton (A) 14,452 1,011 Emerson Electric (A) 86,281 3,913 Equifax 29,157 583 FedEx 61,173 3,369 Fluor (A) 16,465 555 General Dynamics 41,186 2,268 General Electric (A) 2,039,781 52,014 Genuine Parts (A) 33,408 1,019 Goodrich 24,085 339 Grainger, W.W 18,742 804 Honeywell International 175,376 3,746 Illinois Tool Works 63,018 3,664 IMS Health (A) 56,743 886 Ingersoll-Rand, Cl A 34,698 1,339 ITT Industries 17,287 923 Lockheed Martin 92,123 4,380 Masco (A) 100,856 1,878 McDermott International* 13,070 38 Molex 39,310 844 Navistar International* 13,988 344 Norfolk Southern 79,748 1,480 Northrop Grumman 36,769 3,155 Paccar (A) 23,404 1,177 Pall (A) 25,205 504 Parker-Hannifin (A) 24,216 938 Paychex (A) 77,138 2,119 Pitney Bowes (A) 46,637 1,489 Power-One* (A) 16,380 72 Raytheon (A) 83,198 2,360 Robert Half International* 35,520 473 Rockwell Automation (A) 38,056 788 Rockwell Collins 36,949 679 Ryder System 12,811 263 Sabre Group Holdings, Cl A* (A) 29,251 465 Southwest Airlines (A) 158,786 2,280 Textron 27,872 765 Thomas & Betts* 11,773 167 Tyco International (A) 409,163 5,262 Union Pacific (A) 52,028 2,862 United Parcel Service, Cl B (A) 230,368 13,131 United Technologies 96,421 5,571 Waste Management (A) 122,934 2,604 Worthington Industries 17,319 207 ----------- 171,082 ----------- INFORMATION TECHNOLOGY - 15.0% ADC Telecommunications* 164,337 339 Adobe Systems (A) 47,728 1,471 Advanced Micro Devices* (A) 69,376 429
The accompanying notes are an integral part of the financial statements. 4
DESCRIPTION SHARES VALUE (000) - ------------------------------------------------------------------------------- Agilent Technologies* (A) 95,731 $ 1,259 Altera* (A) 78,413 1,062 Analog Devices* (A) 74,665 2,053 Andrew* (A) 20,155 111 Apple Computer* (A) 72,488 1,025 Applied Materials* (A) 338,280 4,256 Applied Micro Circuits* 57,392 187 Autodesk (A) 22,781 348 Automatic Data Processing 122,906 3,784 Avaya* 67,528 138 BMC Software* 46,642 704 Broadcom, Cl A* (A) 56,547 698 Ciena* 88,859 388 Cisco Systems* (A) 1,459,364 18,943 Citrix Systems* (A) 35,052 461 Computer Associates International (A) 116,638 1,593 Computer Sciences* (A) 38,374 1,249 Compuware* 76,336 259 Comverse Technology* 38,479 435 Corning (A) 245,713 1,435 Dell Computer* (A) 525,726 14,358 Deluxe 12,649 508 Electronic Arts* (A) 28,543 1,674 Electronic Data Systems (A) 97,651 1,719 EMC* 450,916 3,260 First Data (A) 154,177 5,706 Fiserv* (A) 39,226 1,235 Gateway* 61,341 145 Hewlett-Packard (A) 625,685 9,729 IBM (A) 346,439 27,171 Intel (A) 1,358,000 22,108 Intuit* (A) 42,166 1,569 Jabil Circuit* (A) 40,624 711 JDS Uniphase* 290,119 827 KLA-Tencor* (A) 38,985 1,401 Lexmark International Group, Cl A* 25,817 1,728 Linear Technology 64,127 1,980 LSI Logic* 75,108 339 Lucent Technologies* (A) 801,713 1,179 Maxim Integrated Products 64,705 2,337 Mercury Interactive* (A) 17,313 514 Micron Technology* (A) 122,210 995 Microsoft (A) 2,193,590 53,107 Millipore (A) 9,921 324 Motorola (A) 471,658 3,896 National Semiconductor* (A) 37,244 635 NCR* (A) 19,709 361 Network Appliance* (A) 69,559 778 Novell* 73,609 158 Novellus Systems* (A) 30,384 829 NVIDIA* (A) 32,313 415 Oracle Systems* (A) 1,081,821 11,737 Parametric Technology* 49,999 108 PeopleSoft* (A) 64,160 982 PerkinElmer 25,898 230 PMC-Sierra* (A) 33,821 201 QLogic* (A) 19,233 714 QUALCOMM (A) 161,705 5,831 Sanmina* 106,692 431 Scientific-Atlanta (A) 31,339 431 Seagate Escrow Security 48,686 $ -- Siebel Systems* (A) 99,325 796 Solectron* (A) 169,363 511 Sun Microsystems* 654,894 2,135 SunGard Data Systems* 58,043 1,236 Symantec* 30,400 1,191 Symbol Technologies (A) 47,263 407 Tektronix* 17,820 306 Tellabs* (A) 84,456 489 Teradyne* (A) 37,532 437 Texas Instruments 354,829 5,809 Thermo Electron* 33,515 607 Unisys (A) 65,537 607 VERITAS Software* (A) 84,375 1,483 Waters* (A) 26,469 560 Xerox* (A) 150,721 1,311 Xilinx* 69,166 1,619 Yahoo!* (A) 123,889 2,976 ----------- 247,468 ----------- MATERIALS - 2.7% Air Products and Chemicals 46,576 1,930 Alcoa (A) 172,569 3,344 Allegheny Technologies 14,676 43 Ball (A) 11,474 639 Bemis 10,154 427 Boise Cascade 11,775 257 Brown-Forman, Cl B 13,813 1,062 Dow Chemical 186,756 5,156 E.I. du pont de Nemours 203,895 7,923 Eastman Chemical 15,846 459 Ecolab 26,678 1,316 Engelhard 26,193 561 Freeport-McMoran Copper & Gold, Cl B* (A) 29,264 499 Georgia-Pacific (A) 51,258 712 Great Lakes Chemical 10,139 225 Hercules* 22,388 195 International Flavors & Fragrances 19,339 601 International Paper (A) 96,154 3,250 Louisiana Pacific* (A) 21,125 168 MeadWestvaco 40,400 920 Monsanto (A) 53,583 879 Newmont Mining (A) 75,803 1,982 Nucor (A) 15,465 590 Pactiv* 32,479 659 Phelps Dodge* (A) 17,961 583 PPG Industries (A) 33,852 1,526 Praxair (A) 33,153 1,868 Rohm & Haas 45,323 1,350 Sealed Air* (A) 17,209 691 Sigma-Aldrich (A) 14,694 654 Temple-Inland (A) 10,852 406 USX-U.S. Steel Group 20,664 203 Vulcan Materials (A) 20,809 629 Weyerhaeuser (A) 44,220 2,115 ----------- 43,822 ----------- TELECOMMUNICATION SERVICES - 3.6% ALLTEL 63,751 2,853 AT&T (A) 157,917 2,558 AT&T Wireless Services* (A) 555,305 3,665
5
PAR (000)/ DESCRIPTION SHARES VALUE (000) - ------------------------------------------------------------------------------- BellSouth 381,473 $ 8,267 CenturyTel (A) 29,232 807 Citizens Communications* (A) 57,851 577 Nextel Communications, Cl A* (A) 198,022 2,652 Qwest Communications International* (A) 347,518 1,213 SBC Communications 680,576 13,652 Sprint (A) 183,367 2,155 Sprint PCS Group* (A) 204,795 893 Verizon Communications 560,785 19,824 ----------- 59,116 ----------- UTILITIES - 2.8% AES* 111,474 404 Allegheny Energy* (A) 25,760 160 Ameren 27,339 1,068 American Electric Power (A) 79,705 1,821 Calpine* (A) 77,483 256 Centerpoint Energy 62,383 440 Cinergy (A) 34,004 1,144 CMS Energy* 29,539 130 Consolidated Edison 43,791 1,685 Constellation Energy 33,770 936 Dominion Resources (A) 62,970 3,487 DTE Energy (A) 34,330 1,327 Duke Energy (A) 182,760 2,657 Dynegy* 76,126 199 Edison International* (A) 66,787 914 El Paso (A) 122,777 743 Entergy (A) 45,509 2,191 Exelon 66,209 3,338 FirstEnergy (A) 61,006 1,922 FPL Group (A) 37,414 2,205 KeySpan 32,067 1,034 Kinder Morgan (A) 24,991 1,125 Mirant* (A) 82,792 132 NICOR 9,018 246 NiSource (A) 51,007 928 People's Energy 7,160 256 PG&E* (A) 83,544 1,124 Pinnacle West Capital 18,533 616 PPL 33,711 1,200 Progress Energy (A) 48,620 1,903 Progress Energy-CVO 8,576 1 Public Service Enterprises (A) 45,592 1,673 Sempra Energy 42,245 1,054 Southern (A) 144,112 4,099 TECO Energy (A) 36,002 383 TXU (A) 66,032 1,179 Williams (A) 105,912 485 Xcel Energy (A) 80,530 1,032 ----------- 45,497 ----------- TOTAL COMMON STOCKS 1,598,761 ----------- U.S. TREASURY OBLIGATION - 0.4% U.S. Treasury Bill 1.290%, 6/05/03 (B) $ 6,300 6,287 ----------- TOTAL U.S. TREASURY OBLIGATION (Cost $6,287) 6,287 RELATED PARTY MONEY MARKET FUND - 2.3% First American Prime Obligations Fund, ClY (C) 38,376,265 $ 38,376 ----------- TOTAL RELATED PARTY MONEY MARKET FUND (Cost $38,376) 38,376 ----------- INVESTMENTS PURCHASED WITH CASH PROCEEDS FROM SECURITIES LENDING - 51.3% COMMERCIAL PAPER - 7.4% CS First Boston 1.638%, 12/01/03 $ 14,782 14,782 Danske Bank 1.508%, 12/22/03 14,782 14,782 Goldman Sachs 1.518%, 08/28/03 19,216 19,216 Morgan Stanley 1.518%, 06/17/03 7,391 7,391 1.518%, 07/08/03 5,321 5,321 1.518%, 09/22/03 7,391 7,391 Orchard Park 1.475%, 01/06/04 14,782 14,782 UBS Financial 1.390%, 04/01/03 36,949 36,949 ----------- TOTAL COMMERCIAL PAPER 120,614 ----------- CORPORATE OBLIGATIONS - 5.6% CS First Boston 1.760%, 04/11/03 14,782 14,782 Deutsche Bank 1.470%, 04/11/03 7,391 7,391 1.580%, 12/11/03 5,913 5,913 General Electric Capital Corporation 1.355%, 07/09/07 7,391 7,391 Merrill Lynch 1.538%, 05/05/03 12,564 12,564 Monet Trust 1.360%, 12/28/03 14,782 14,782 SMM Trust 2002-M 1.450%, 09/23/03 14,782 14,782 URI Trust 1.460%, 09/18/03 14,782 14,782 ----------- TOTAL CORPORATE OBLIGATIONS 92,387 ----------- MONEY MARKET FUNDS - 4.8% AIM Liquid Assets Portfolio 25,129,154 25,129 Dreyfus Cash Manage Plus Fund 1,478,185 1,478 Evergreen Institutional Money Market Fund 5,173,649 5,174 HSBC Investor Money Market Fund - Cl I 4,434,557 4,435 Merrill Lynch Premier Institutional Fund 28,630,261 28,630 Merrimac Cash Series Fund 4,434,557 4,435 One Group Institutional Prime Money Market Fund 8,869,113 8,869 Reserve Primary Fund 739,093 739 ----------- TOTAL MONEY MARKET FUNDS 78,889 ----------- OTHER SHORT-TERM INVESTMENTS - 4.6% Allied Irish Bank 1.340%, 05/09/03 14,782 14,782 1.330%, 06/02/03 7,391 7,391 Commonwealth Life 1.678%, 04/01/03 7,463 7,463 General Electric Capital Assurance 1.370%, 12/19/03 2,956 2,956 Premium Asset Trust 02-7 1.060%, 08/23/03 9,416 9,416
The accompanying notes are an integral part of the financial statements. 6
PAR (000)/ DESCRIPTION SHARES VALUE (000) - ------------------------------------------------------------------------------- Security Life Denver 1.381%, 01/13/04 $ 19,217 $ 19,217 1.490%, 03/15/04 14,782 14,782 ----------- TOTAL OTHER SHORT-TERM INVESTMENTS 76,007 ----------- REPURCHASE AGREEMENTS - 28.9% Bear Stearns 1.420%, 04/10/03 29,563 29,563 CS First Boston 1.370%, 04/01/03 29,563 29,563 1.380%, 04/01/03 4,582 4,582 1.380%, 04/01/03 36,955 36,955 Goldman Sachs 1.520%, 04/01/03 22,173 22,173 1.420%, 04/07/03 14,782 14,782 1.400%, 06/11/03 7,391 7,391 1.360%, 06/10/03 7,391 7,391 Greenwich Capital Markets 1.430%, 04/01/03 44,346 44,346 Lehman Brothers 1.560%, 04/01/03 14,782 14,782 1.640%, 04/01/03 11,086 11,086 1.640%, 04/01/03 48,041 48,041 Merrill Lynch 1.360%, 04/01/03 44,346 44,346 1.500%, 04/01/03 22,173 22,173 1.560%, 04/01/03 18,477 18,477 1.560%, 04/01/03 29,563 29,563 Morgan Stanley 1.470%, 04/01/03 22,173 22,173 1.510%, 04/01/03 45,972 45,972 Salomon Smith Barney 1.540%, 04/01/03 22,173 22,173 ----------- TOTAL REPURCHASE AGREEMENTS 475,532 ----------- TOTAL INVESTMENTS PURCHASED WITH CASH PROCEEDS FROM SECURITIES LENDING (Cost $843,429) 843,429 ----------- TOTAL INVESTMENTS - 151.2% (Cost $2,502,577) 2,486,853 ----------- OTHER ASSETS AND LIABILITIES, NET - (51.2)% (841,770) ----------- TOTAL NET ASSETS - 100.0% $ 1,645,083 -----------
*Non-income producing security (A) This security or a portion of this security is out on loan at March 31, 2003. Total loaned securities had a value of $798,805,924 at March 31, 2003. See note 2 in Notes to Financial Statements. (B) Security has been deposited as initial margin on open future contracts. Yield shown is effective yield at date of purchase. See note 7 in Notes to Financial Statements. (C) This money market fund is advised by U.S. Bancorp Asset Management, Inc., which also serves as advisor for this Fund. See note 3 in Notes to Financial Statements. Cl - Class REIT - Real Estate Investment Trust MID CAP INDEX FUND
DESCRIPTION SHARES VALUE (000) - ------------------------------------------------------------------------------- COMMON STOCKS - 93.5% CONSUMER DISCRETIONARY - 16.1% 99 Cents Only Stores* 18,536 $ 473 Abercrombie & Fitch* (A) 25,722 772 American Eagle Outfitters* 18,824 273 Applebee's International (A) 13,590 381 ArvinMeritor 18,613 260 Barnes & Noble* (A) 17,088 325 Belo 29,854 605 BJ's Wholesale Club* (A) 18,363 208 Blyth 12,454 317 Bob Evans Farms 9,268 224 Borders Group* 20,940 308 BorgWarner 7,114 340 Brinker International* (A) 25,638 782 Callaway Golf 19,268 229 CarMax* (A) 27,269 398 Catalina Marketing, Cl C* (A) 14,129 272 CBRL Group 13,981 384 CDW Computer Centers* (A) 22,200 906 Cheesecake Factory* (A) 13,260 429 Chico's FAS* (A) 21,400 428 Claire's Stores 12,927 305 Clayton Homes (A) 35,991 397 Coach* (A) 23,830 913 Copart* 25,947 199 D.R. Horton (A) 38,764 744 Dollar Tree Stores* 30,194 601 Emmis Communications, Cl A* (A) 14,154 239 Entercom Communications* (A) 12,581 553 Extended Stay America* 25,006 253 Federal Signal 11,258 160 Furniture Brands International* (A) 14,884 292 Gentex* 20,159 513 GTECH Holdings* 14,946 488 Harte-Hanks 24,073 460 Hispanic Broadcasting* 28,772 594 International Speedway, Cl A* 13,110 525 Kelly Services, Cl A 9,986 215 Krispy Kreme Doughnuts* (A) 14,867 504 Lancaster Colony 8,405 322 Lear* (A) 17,380 615 Lee Enterprises 13,069 412 Lennar (A) 17,171 919 Macrovision* 12,788 154 Mandalay Resort Group* (A) 17,448 481 Media General, Cl A 5,983 295 Michaels Stores* (A) 17,835 446 Modine Manufacturing 8,871 133 Mohawk Industries* 17,566 842 Neiman Marcus Group* 12,683 368 Outback Steakhouse (A) 20,044 709 Park Place Entertainment* (A) 79,480 567 Payless ShoeSource* 15,118 236 PETsMART* (A) 36,808 464 Pier 1 Imports 24,554 390 Pittston 14,352 199 Reader's Digest Association, Cl A* 27,538 281 Ross Stores 20,320 735
7
DESCRIPTION SHARES VALUE (000) - ------------------------------------------------------------------------------- Ruby Tuesday (A) 18,500 $ 377 Saks* 36,241 279 Scholastic* 11,237 302 Six Flags* (A) 27,104 152 Sotheby's Holdings, Cl A* 16,256 149 Superior Industries 7,324 267 Timberland, Cl A* (A) 9,857 412 Toll Brothers* 21,589 417 Unifi* 16,285 78 United Rentals* (A) 20,586 198 Washington Post, Cl B 2,374 1,617 Westwood One* 27,873 871 Williams-Sonoma* (A) 30,771 671 ----------- 30,627 ----------- CONSUMER STAPLES - 4.3% Church and Dwight 10,550 320 Constellation Brands, CI A* 21,206 481 Dean Foods* (A) 24,133 1,036 Dial 22,985 446 Dreyer's Grand Ice Cream (A) 9,233 640 Hormel Foods 36,607 776 Interstate Bakeries 11,831 125 Longs Drug Stores 10,176 153 PepsiAmericas 39,748 467 Ruddick 13,084 161 Sensient Technologies 12,536 251 Smithfield Foods* (A) 28,929 513 Smucker, JM 13,147 460 Tootsie Roll Industries 14,755 421 Tyson Foods, Cl A 92,993 721 Universal 8,174 308 Whole Foods Market* (A) 15,484 861 ----------- 8,140 ----------- ENERGY - 9.0% Cooper Cameron* (A) 14,370 711 ENSCO International 39,431 1,005 Equitable Resources 16,287 610 FMC Technologies* 17,294 332 Forest Oil* 13,874 309 Grant Prideco* (A) 31,991 386 Hanover Compressor* 18,687 121 Helmerich & Payne 13,233 339 Murphy Oil 22,440 991 National-Oilwell* (A) 22,278 499 Noble Energy 15,150 520 Ocean Energy 46,988 940 Patterson-UTI Energy* (A) 21,183 685 Peabody Energy 12,979 362 Pepco Holdings 43,178 751 Pioneer Natural Resources* (A) 31,020 779 Pogo Producing 17,198 684 Pride International* (A) 37,769 510 Smith International* (A) 26,854 946 Tidewater (A) 13,178 379 Valero Energy (A) 29,943 1,239 Varco International* 25,624 469 Weatherford International* (A) 34,410 1,300 Westar Energy 19,424 235 Western Gas Resources (A) 8,740 $ 285 Wisconsin Energy 30,719 780 XTO Energy (A) 47,009 894 ----------- 17,061 ----------- FINANCIALS - 18.2% Allmerica Financial 14,672 206 AMB Property 21,856 617 American Financial Group 18,876 375 AmeriCredit* (A) 40,915 135 Amerus Group 10,960 269 Arthur J. Gallagher 22,061 542 Associated Banc-Corp 19,717 637 Astoria Financial (A) 23,025 534 Bank of Hawaii 16,072 495 Banknorth Group 42,647 930 Brown & Brown 18,300 573 City National (A) 13,198 580 Colonial BancGroup 32,712 368 Commerce Bancorp (A) 17,852 709 Compass Bancshares 33,900 1,060 Dime Bancorp* 23,400 4 E*TRADE Group* (A) 101,548 428 Eaton Vance 18,290 489 Edwards A.G. (A) 19,931 515 Everest Re Group 13,453 769 Fidelity National Financial 25,265 863 First American 17,113 418 First Virginia Banks 18,961 744 FirstMerit 22,356 412 Greater Bay Bancorp (A) 13,621 195 GreenPoint Financial (A) 25,813 1,157 HCC Insurance Holdings (A) 16,475 421 Hibernia, Cl A 41,654 707 Horace Mann Educators (A) 11,703 154 Hospitality Properties Trust (REIT) 13,805 422 Independence Community Bank 15,126 400 IndyMac Bancorp 15,362 299 Investors Financial Services (A) 17,148 418 LaBranche (A) 15,735 289 Legg Mason (A) 17,131 835 Leucadia National 16,571 592 Liberty Property Trust (REIT) (A) 20,190 632 M & T Bank (A) 22,788 1,790 Mack-Cali Realty (REIT) 11,760 364 Mercantile Bankshares 16,945 575 MONY Group 12,716 266 National Commerce Financial 54,012 1,280 Neuberger Berman 18,452 521 New Plan Excel Realty Trust (REIT) (A) 25,818 506 New York Community Bancorp (A) 28,349 845 Ohio Casualty* 18,829 243 Old Republic International 31,885 853 PMI Group 23,874 610 Protective Life 18,161 518 Provident Financial Group (A) 14,019 298 Radian Group (A) 24,723 825 Roslyn Bancorp 21,940 394 SEI Investments 28,047 735 Silicon Valley Bancshares* (A) 10,292 187
The accompanying notes are an integral part of the financial statements. 8
DESCRIPTION SHARES VALUE (000) - ------------------------------------------------------------------------------- Sovereign Bancorp (A) 73,392 $ 1,016 Stancorp Financial Group 7,878 406 TCF Financial 19,452 779 United Dominion Realty Trust (REIT) 25,000 399 Unitrin 18,044 418 Waddell & Reed Financial 21,231 373 Webster Financial 12,633 444 Westamerica Bancorporation (A) 9,229 364 Wilmington Trust 13,429 372 ----------- 34,574 ----------- HEALTH CARE - 13.1% AdvancePCS* (A) 23,829 675 Apogent Technologies* 28,359 413 Apria Healthcare Group* 15,708 367 Barr Laboratories* (A) 17,136 976 Beckman Coulter (A) 15,373 523 Charles River Laboratories International* (A) 13,124 335 Community Health Systems* 25,210 517 Covance* (A) 16,814 389 Coventry Health Care* (A) 15,835 521 Cytec* 30,640 400 DENTSPLY International (A) 20,719 721 Edwards Lifesciences* (A) 15,881 435 Express Scripts* (A) 20,603 1,148 First Health Group* (A) 26,823 682 Gilead Sciences* (A) 52,019 2,185 Health Net* 32,744 877 Henry Schein* 11,632 525 Hillenbrand Industries 15,747 803 ICN Pharmaceuticals 18,166 162 IDEC Pharmaceuticals* (A) 40,467 1,393 IVAX* (A) 51,464 630 Lifepoint Hospitals* 10,444 262 Lincare Holdings* (A) 27,956 858 Millennium Pharmaceuticals* (A) 76,108 598 Mylan Laboratories 46,737 1,343 Omnicare 24,934 679 Oxford Health Plans* 22,184 674 PacifiCare Health Systems* 9,470 228 Patterson Dental* (A) 17,986 826 Perrigo 17,477 208 Pharmaceutical Resources* 8,670 368 Protein Design Labs* 25,798 191 Sepracor* (A) 22,255 301 SICOR* 30,964 517 STERIS* 18,653 488 Triad Hospitals* 19,754 532 Universal Health Services* 16,010 653 Varian* 7,672 219 Varian Medical Systems* 18,023 972 Vertex Pharmaceuticals* 20,201 225 VISX* 14,492 154 ----------- 24,973 ----------- INDUSTRIALS - 12.4% AGCO* (A) 22,316 359 Airborne (A) 12,911 253 Alaska Air Group* 7,661 120 Alexander & Baldwin 10,866 270 AMETEK 9,280 287 Banta 7,363 $ 217 Bisys Group* (A) 31,662 517 C. H. Robinson Worldwide 22,339 731 Career Education* (A) 12,168 595 Carlisle Companies 8,569 347 Ceridian* 39,257 549 Certegy* 17,567 443 CheckFree* (A) 20,858 469 ChoicePoint* (A) 22,430 760 CNF (A) 13,026 397 Corinthian Colleges* (A) 11,680 461 CSG Systems International* 13,641 118 DeVry* 18,502 345 Donaldson 10,814 396 DST Systems* (A) 31,613 860 Dun & Bradstreet* (A) 19,652 752 Dycom Industries* 12,663 131 Education Management* 9,945 396 EGL* 12,431 185 Energizer Holdings* 23,134 590 Expeditors International of Washington (A) 27,527 990 Fastenal (A) 20,068 565 Flowserve* 14,596 170 GATX (A) 10,229 148 Granite Construction 12,363 194 Harsco 10,714 327 HON Industries 15,590 445 Hubbell, Cl B 16,907 529 Hunt (J.B.) Transport Services* 10,384 280 IMC Global 30,401 293 Jacobs Engineering Group* (A) 14,506 610 Kennametal (A) 9,313 262 Korn Ferry International* 10,005 65 L-3 Communications Holdings* (A) 24,979 1,003 Manpower (A) 20,424 610 Miller Herman (A) 20,644 332 MPS Group* 30,615 160 Nordson 6,319 152 Overseas Shipholding Group 9,115 152 Pentair 12,583 445 Precision Castparts 13,945 333 Quanta Services* (A) 22,004 70 Republic Services* 43,305 859 Rollins 11,836 272 Sequa* 2,544 87 SPX* (A) 21,294 727 Swift Transportation* 22,123 354 Sylvan Learning Systems* 10,664 169 Tecumseh Products, Cl A 2,881 118 Teleflex 11,157 398 Trinity Industries (A) 12,138 209 Valassis Communications* 13,937 367 Viad 23,299 500 Wallace Computer Services 12,529 312 Werner Enterprises 16,858 325 York International 10,488 220 ----------- 23,600 -----------
9
DESCRIPTION SHARES VALUE (000) - ------------------------------------------------------------------------------- INFORMATION TECHNOLOGY - 10.7% 3Com* 94,794 $ 467 Activision* (A) 17,498 253 Acxiom* (A) 23,590 397 ADTRAN* (A) 9,843 353 Advanced Fiber Communications* 22,223 336 Advent Software* 8,657 105 Affiliated Computer Services, Cl A* (A) 35,055 1,551 Arrow Electronics* (A) 26,420 388 Ascential Software* 67,761 190 Atmel* 123,137 197 Avnet (A) 31,583 331 Avocent* 11,924 278 Cabot Microelectronics* (A) 6,440 270 Cadence Design Systems* (A) 71,106 711 CommScope* 15,666 118 Credence Systems* 16,115 109 Cree* (A) 19,373 359 Cypress Semiconductor* 32,734 226 Diebold 17,452 593 Fair Isaac 12,130 617 Fairchild Semiconductor International, Cl A* (A) 30,928 323 Gartner Group, Cl B* 23,020 173 Harris (A) 15,896 441 Imation* (A) 8,485 316 InFocus* 4,453 21 Integrated Device Technology* 27,397 218 International Rectifier* (A) 17,213 338 Internet Security Systems* 13,094 130 Intersil, Cl A* 36,185 563 Investment Technology Group* 12,678 177 Jack Henry & Associates 23,192 246 Keane* 18,854 154 KEMET* 22,796 178 Lam Research* (A) 33,314 380 Lattice Semiconductor* 29,699 224 Legato Systems* 32,635 167 LTX* 13,055 65 Macromedia* 16,479 199 McDATA, Cl A* (A) 30,074 258 Mentor Graphics* (A) 17,611 158 Micrel* 25,755 237 Microchip Technology (A) 53,799 1,070 National Instruments* 13,510 477 Network Associates* (A) 41,373 571 Newport* 11,299 133 Overture Services* (A) 15,672 238 Plantronics* (A) 8,954 131 Plexus* 11,175 102 Polycom* 26,311 213 Powerwave Technologies* 17,449 59 Quantum* 45,674 165 Retek* (A) 14,938 86 Reynolds & Reynolds, Cl A 17,833 452 RF Micro Devices* (A) 48,271 291 RSA Security* 15,040 107 SanDisk* (A) 18,230 307 Semtech* 19,330 293 Storage Technology* 28,369 574 Sybase* 25,019 $ 324 Synopsys* (A) 19,618 835 Tech Data* (A) 13,346 320 Titan* 21,919 163 Transaction Systems Architects, Cl A* 9,961 59 TriQuint Semiconductor* 37,224 105 Vishay Intertechnology* (A) 42,237 430 Wind River Systems* 20,930 62 ----------- 20,382 ----------- MATERIALS - 3.9% Airgas* 19,042 352 AK Steel Holdings* 28,532 93 Albemarle 11,023 269 Arch Coal 13,704 261 Bandag 5,175 161 Bowater (A) 14,615 543 Cabot Industrial 16,294 389 Carpenter Technology 5,112 52 Crompton 30,091 122 Cytec Industries* 10,913 304 Ferro 10,690 229 FMC* 9,274 145 Glatfelter 6,132 65 Longview Fibre 13,505 90 Lubrizol 13,609 409 Lyondell Chemical 39,740 556 Martin Marietta Materials 13,758 380 Minerals Technologies 5,333 203 Olin 12,195 222 Packaging Corporation of America* 29,350 529 Potlatch 7,268 141 Rayonier 7,624 336 RPM (A) 30,572 321 Solutia 29,420 46 Sonoco Products 23,557 493 Valspar 13,324 546 Wausau-Mosinee Paper 14,480 148 ----------- 7,405 ----------- TELECOMMUNICATION SERVICES - 0.5% Broadwing* 57,883 232 Price Communications* 14,429 173 Telephone & Data Systems 14,617 598 ----------- 1,003 ----------- UTILITIES - 5.3% AGL Resources 17,507 414 ALLETE 19,617 407 Alliant Energy 24,245 390 Aquila* 51,035 106 Black Hills 7,067 194 DPL 33,453 417 DQE 16,830 204 Energy East 38,342 683 Great Plains Energy 14,583 348 Hawaiian Electric Industries 9,684 395 IDACORP 6,382 146 MDU Resources Group 18,959 529 National Fuel Gas (A) 21,313 466 Northeast Utilities 38,140 531 NSTAR (A) 14,021 561
The accompanying notes are an integral part of the financial statements. 10
PAR (000)/ DESCRIPTION SHARES VALUE (000) - ------------------------------------------------------------------------------- OGE Energy 15,401 $ 277 Oneok 21,379 392 Philadelphia Suburban 14,430 317 PNM Resources 11,403 256 Puget Energy 24,517 523 Questar 21,664 641 SCANA 25,658 768 Sierra Pacific Resources* (A) 30,304 96 Vectren 17,930 386 WGL Holdings 12,852 340 WPS Resources 8,437 338 ----------- 10,125 ----------- TOTAL COMMON STOCKS 177,890 ----------- U.S. TREASURY OBLIGATION - 0.2% U.S. Treasury Bill 1.290%, 6/05/03 (B) $ 400 399 ----------- TOTAL U.S. TREASURY OBLIGATION (Cost $399) 399 ----------- RELATED PARTY MONEY MARKET FUND - 0.1% First American Prime Obligations Fund, Cl Y (C) (Cost $295) 295,322 295 ----------- TOTAL RELATED PARTY MONEY MARKET FUND 295 INVESTMENTS PURCHASED WITH CASH PROCEEDS FROM SECURITIES LENDING - 35.5% COMMERCIAL PAPER - 5.1% CS First Boston 1.638%, 12/01/03 1,184 1,184 Danske Bank 1.508%, 12/22/03 1,184 1,184 Goldman Sachs 1.518%, 08/28/03 1,538 1,538 Morgan Stanley 1.518%, 06/17/03 592 592 1.518%, 07/08/03 426 426 1.518%, 09/22/03 592 592 Orchard Park 1.475%, 01/06/04 1,183 1,183 UBS Financial 1.390%, 04/01/03 2,958 2,958 ----------- TOTAL COMMERCIAL PAPER 9,657 ----------- CORPORATE OBLIGATIONS - 3.9% CS First Boston 1.760%, 04/11/03 1,184 1,184 Deutsche Bank 1.470%, 04/11/03 592 592 1.580%, 12/11/03 473 473 General Electric Capital Corporation 1.355%, 07/09/07 592 592 Merrill Lynch 1.538%, 05/05/03 1,006 1,006 Monet Trust 1.360%, 12/28/03 1,184 1,184 SMM Trust 2002-M 1.450%, 09/23/03 1,184 1,184 URI Trust 1.460%, 09/18/03 1,184 1,184 ----------- TOTAL CORPORATE OBLIGATIONS 7,399 ----------- MONEY MARKET FUNDS - 3.3% AIM Liquid Assets Portfolio 2,011,871 $ 2,012 Dreyfus Cash Manage Plus Fund 118,345 118 Evergreen Institutional Money Market Fund 414,209 414 HSBC Investor Money Market Fund - Cl I 355,036 355 Merrill Lynch Premier Institutional Fund 2,292,174 2,292 Merrimac Cash Series Fund 355,036 355 One Group Institutional Prime Money Market Fund 710,072 710 Reserve Primary Fund 59,173 59 ----------- TOTAL MONEY MARKET FUNDS 6,315 ----------- OTHER SHORT-TERM INVESTMENTS - 3.2% Allied Irish Bank 1.340%, 05/09/03 $ 592 592 1.330%, 06/02/03 1,183 1,183 Commonwealth Life 1.678%, 04/01/03 598 598 General Electric Capital Assurance 1.370%, 12/19/03 237 237 Premium Asset Trust 02-7 1.060%, 08/23/03 754 754 Security Life Denver 1.381%, 01/13/04 1,538 1,538 1.490%, 03/15/04 1,183 1,183 ----------- TOTAL OTHER SHORT-TERM INVESTMENTS 6,085 ----------- REPURCHASE AGREEMENTS - 20.0% Bear Stearns 1.420%, 04/10/03 2,367 2,367 CS First Boston 1.370%, 04/01/03 2,367 2,367 1.380%, 04/01/03 367 367 1.380%, 04/01/03 2,959 2,959 Goldman Sachs 1.520%, 04/01/03 1,775 1,775 1.420%, 04/07/03 1,183 1,183 1.360%, 06/10/03 592 592 1.400%, 06/11/03 592 592 Greenwich Capital Markets 1.430%, 04/01/03 3,550 3,550 Lehman Brothers 1.560%, 04/01/03 1,183 1,183 1.640%, 04/01/03 887 887 1.640%, 04/01/03 3,846 3,846 Merrill Lynch 1.360%, 04/01/03 3,550 3,550 1.500%, 04/01/03 1,775 1,775 1.560%, 04/01/03 1,479 1,479 1.560%, 04/01/03 2,367 2,367
11
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------- Morgan Stanley 1.470%, 04/01/03 $ 1,775 $ 1,775 1.510%, 04/01/03 3,681 3,681 Salomon Smith Barney 1.540%, 04/01/03 1,775 1,775 ----------- TOTAL REPURCHASE AGREEMENTS 38,070 ----------- TOTAL INVESTMENTS PURCHASED WITH CASH PROCEEDS FROM SECURITIES LENDING (Cost $67,526) 67,526 ----------- TOTAL INVESTMENTS - 129.3% (Cost $293,604) 246,110 ----------- OTHER ASSETS AND LIABILITIES, NET - (29.3)% (55,769) ----------- TOTAL NET ASSETS - 100.0% $ 190,341 -----------
* Non-income producing security (A) This security or a portion of this security is out on loan at March 31, 2003. Total loaned securities had a value of $67,525,949 at March 31, 2003. See note 2 in Notes to Financial Statements. (B) Security has been deposited as intial margin on open futures contracts. Yield shown is effective yield at date of purchase. See note 7 in Notes to Financial Statements. (C) This money market fund is advised by U.S. Bancorp Asset Management, Inc., which also serves as advisor for this Fund. See note 3 in Notes to Financial Statements. Cl - Class REIT - Real Estate Investment Trust SMALL CAP INDEX FUND
DESCRIPTION SHARES VALUE (000) - ------------------------------------------------------------------------------- COMMON STOCKS - 90.9% CONSUMER DISCRETIONARY - 11.9% 1-800 Flowers* 1,845 $ 12 4Kids Entertainment* 1,369 16 A.C. Moore Arts & Crafts* 1,946 27 Aaron Rents 2,039 42 Action Performance 2,244 47 Advanced Marketing Services 2,237 25 ADVO* 2,724 90 Aeropostale* 1,803 24 AFC Enterprises* 1,896 26 Alliance Gaming* 6,739 101 Ambassadors Group* 676 8 AMC Entertainment* 4,235 37 Ameristar Casinos* 1,490 16 ANC Rental* (B) 11,900 -- AnnTaylor Stores* (A) 6,339 130 APAC Customer Service* 4,319 10 Applica* 2,333 11 Applied Industrial Technology 2,501 42 Arctic Cat 2,264 35 Arden Group, Cl A* 18 1 Argosy Gaming* 3,591 72 Asbury Automotive Group* 1,294 10 Ascent Media Group* 3,021 4 Aztar* 4,933 66 Bally Total Fitness Holding* (A) 4,835 25 Bassett Furniture 1,448 15 Beasley Broadcast Group* 839 8 Beazer Homes USA* (A) 1,798 106 Bebe Stores* 692 8 Benihana* 696 7 Blair 1,115 26 Blyth 4,655 118 Bob Evans Farms 5,040 121 Boca Resorts, Cl A* 3,564 39 Bombay Company* 5,149 28 Boyd Gaming* 4,476 57 Boyds Collection Limited* 3,382 18 Bridgford Foods 172 1 BriteSmile* 118 1 Brookstone* 1,169 19 Brown Shoe 2,706 73 Buca* 2,365 13 Buckle* 1,041 18 Building Materials Holding 2,157 29 Burlington Coat Factory 2,061 34 Bush Industries, Cl A* 1,201 2 Cache* 370 4 California Pizza Kitchen* 2,178 50 Carmike Cinemas* 322 6 Cato 2,107 40 Champion Enterprise* 7,029 13 Champps Entertainment* 1,191 10 Charlotte Russe Holding* 1,081 9 Charming Shoppes* 17,120 60 Checkers Drive-in Restaurants* 1,101 6 Cherokee* 1,034 16 Chicago Pizza & Brewery* 1,563 11
The accompanying notes are an integral part of the financial statements. 12
DESCRIPTION SHARES VALUE (000) - ------------------------------------------------------------------------------- Children's Place Retail Stores* 1,647 $ 15 Christopher & Banks* 3,385 60 Churchill Downs 867 29 CKE Restaurants* 8,935 39 Claire's Stores 6,100 144 Coachmen Industries 2,225 24 Coldwater Creek* 1,029 10 Cole National* 1,405 13 Concord Camera* 3,916 20 Cost Plus* 2,787 73 Courier 532 26 Cross Country* 4,649 53 Cross Media Marketing* (A) 1,203 -- Crown Media Holdings, Cl A* 3,925 11 CSK Auto* 4,108 37 CSS Industries 482 16 Dave & Busters* 1,766 16 Deb Shops 633 12 dELiA*s* 4,947 2 Department 56* 1,590 16 Dover Downs Gaming & Entertainment 511 5 Dover Motorsports 2,096 7 Dress Barn* 4,012 54 Dura Automotive Systems* 2,636 15 Electronics Boutique & Holdings* 1,544 26 Exult* 6,818 50 Factory 2-U Stores* 1,866 8 FAO* 2,653 1 Federal Signal 6,184 88 Finish Line, Cl A* 2,712 41 Finlay Enterprises* 967 12 Fisher Communications* 736 33 Foamex International* 4,243 5 Footstar* 2,899 24 Fossil* 2,891 50 Fred's 3,123 87 Friedman's 2,386 23 Gaiam* 648 3 Galyan's Trading* (A) 1,645 21 Gart Sports* 1,031 20 Gaylord Entertainment* 3,177 57 Genesco* 2,894 41 Goody's Family Clothing* 2,280 9 Great Atlantic & Pacific Tea* 1,477 6 Grey Global Group 87 54 Group 1 Automotive* 2,704 58 Guess?* 1,788 6 Guitar Center* 1,970 40 Gymboree* 2,990 45 Hall Kinion and Associates* 1,758 3 Hancock Fabrics 2,564 36 Handleman* 3,578 53 Haverty Furniture 2,394 26 Hibbett Sporting Goods* 1,078 27 Hollywood Entertainment* 7,611 122 Hot Topic* 4,550 106 Hovnanian Enterprises* 2,161 75 Hughes Supply 3,437 80 iDine Rewards Network* 2,449 18 IHOP 3,058 $ 69 IMPCO Technologies* 1,548 3 Information Holdings* 1,469 24 Ingles Markets, Cl A 723 7 Insight Communications* 5,950 71 Insight Enterprises* 5,909 42 InterTAN* 3,074 14 Isle of Capri Casinos* 2,089 24 J & J Snack Foods* 979 30 J. Jill Group* 2,597 30 Jack in the Box* 5,315 96 JAKKS Pacific* 3,651 38 Jo-Ann Stores, Cl A* (A) 2,061 41 Johnson Outdoors, Cl A* 597 5 Journal Register* 4,236 65 K2* 2,582 20 Kellwood 3,649 106 Kelly Services, Cl A 2,558 55 Kenneth Cole Productions* 1,248 27 Kimball International 4,877 68 Kmart* (A) 75,781 8 K-Swiss, Cl A 1,694 43 Landry's Restaurants 3,164 53 Libbey 2,139 53 Liberty 2,053 90 Linens 'N Things* 5,217 106 Lithia Motors* 1,571 19 LodgeNet Entertainment* 1,702 14 Lone Star Steakhouse & Saloon 2,443 52 Luby's* 2,947 4 M/I Schottenstein Homes 2,103 60 Macrovision* 5,829 70 Magna Entertainment* 6,375 27 Marcus 2,838 39 MarineMax* 1,132 10 Martha Stewart Living* 1,441 12 Marvel Enterprises* 2,457 34 Matthews International, Cl A 3,948 91 Maxwell Shoe* 2,084 23 MDC Holdings 2,788 107 Men's Wearhouse* (A) 4,438 66 Meritage* 1,506 50 Midas* 796 6 Midway Games* (A) 4,218 14 Modine Manufacturing 4,087 61 Monaco Coach* 3,439 36 Mossimo* 1,069 5 Mothers Work* (A) 348 8 Movado Group 1,334 25 Movie Gallery* 2,497 43 MTR Gaming Group* 3,407 23 Multimedia Games* 1,472 28 Nautica Enterprises* 3,621 35 Nautilus Group (A) 3,989 57 Netflix* 917 19 Oakley* 3,869 32 OfficeMax* 16,599 85 Oneida 2,269 24 OshKosh B' Gosh, Cl A 1,482 39
13
DESCRIPTION SHARES VALUE (000) - ------------------------------------------------------------------------------- O'Charley's* 2,520 $ 48 Overstock.com* 466 5 Oxford Industries 840 21 P. F. Chang's China Bistro* 2,324 86 Pacific Sunwear of California* 6,510 132 Palm Harbor Homes* 2,794 39 Panera Bread, Cl A* (A) 3,308 101 Papa John's International* (A) 2,053 51 ParkerVision* (A) 1,323 7 Party City* 1,057 8 Paxson Communications* 4,526 10 Payless ShoeSource* 9,147 143 PC Connection* 1,155 6 Penn National Gaming* 4,379 78 Penn Traffic* 1,488 2 Penton Media* 3,282 2 Pep Boys - Manny Moe & Jack 6,920 53 Phillips Van-Heusen 3,645 45 Pinnacle Entertainment* 3,470 17 Playboy Enterprises* (A) 2,092 18 Pomeroy Computer Resources* 1,432 10 Priceline.com* (A) 18,241 30 PriceSmart* 661 10 Prime Hospitality* 5,265 27 Private Media Group* 2,076 2 Pulitzer 1,287 56 Quaker Fabric 1,966 11 Quicksilver* 2,807 86 R.H. Donnelley* 3,951 117 Racing Champions Ertl* 1,221 19 RARE Hospitality International* 3,078 86 Regent Communication* 4,495 21 Rent-Way* 4,239 15 Restoration Hardware* 2,903 7 Rex Stores* 1,401 14 Russ Berrie and Company 1,031 33 Russell 3,496 61 Ryan's Family Steak Houses* 6,392 67 Saga Communications* 2,327 40 Salem Communications* 1,446 24 Salton* (A) 1,475 15 Sauer-Danfoss 1,515 12 School Specialty* (A) 2,301 41 Scientific Games* 6,591 36 SCP Pool* 2,585 77 Sharper Image* 1,170 21 Shoe Carnival* 1,040 16 Shopko* 3,667 43 Shuffle Master* (A) 2,569 52 Sinclair Broadcast Group, Cl A* 4,439 35 SITEL* 9,146 10 Skechers USA* 2,657 17 Skyline 941 25 Sonic* 5,244 134 Sotheby's Holdings, Cl A 6,473 59 SOURCECORP* 2,264 32 Spanish Broadcasting System* 5,592 34 Speedway Motorsports 1,949 46 Sports Authority* 4,720 33 Sports Resorts International* (A) 3,512 $ 18 Stage Stores* 2,486 53 Stamps.com* 5,052 21 Standard Motor Products 854 9 Standard Pacific (A) 5,044 129 Stanley Furniture 1,035 22 Station Casinos* (A) 4,970 105 Steak 'N Shake* 3,644 33 Stein Mart* 3,269 17 Steinway Musical Instruments* 600 9 Steven Madden* 1,528 24 Stoneridge* 1,854 18 Stride Rite 6,167 52 Sturm, Ruger & Company 1,560 14 Summit American Television* 5,079 12 Superior Industries 2,776 101 Tasty Baking 143 1 TBC* 2,739 38 The Wet Seal, Cl A* 3,683 27 Thor Industries 2,204 55 TiVo* (A) 2,842 15 Too* 4,577 76 Toro 1,780 125 Tower Automotive* 8,875 21 Tractor Supply* 1,967 65 Trans World Entertainment* 2,730 6 Triarc* 1,889 53 Tropical Sportswear International* 816 4 Tuesday Morning* 1,373 27 Tupperware 6,727 93 Tweeter Home Entertainment* 2,782 13 Ultimate Electronics* 1,581 13 Unifi* 8,019 39 United Auto Group* 2,431 29 Universal Electronics* 2,312 22 Urban Outfitters* 1,064 24 Vail Resorts* 1,171 13 ValueVision International* 2,756 28 Vans* 2,656 11 Wabtec 4,126 48 Wackenhut Corrections 1,498 15 WCI Communities* 1,708 18 Weis Markets 1,195 37 Wellman 4,590 43 WESCO International* 2,033 7 West Marine* 1,704 29 WestPoint Stevens* (A) 5,025 2 Whitehall Jewelers* 1,794 15 Wilsons The Leather Experts* 2,018 8 Winnebago Industries (A) 1,731 47 WMS Industries* 3,157 40 Wolverine World Wide 5,990 100 World Wrestling* 1,440 11 Wyndham International* 23,050 5 XM Satellite Radio Holdings* (A) 7,813 46 Yankee Candle* 3,906 67 ----------- 10,619 -----------
The accompanying notes are an integral part of the financial statements. 14
DESCRIPTION SHARES VALUE (000) - ------------------------------------------------------------------------------- CONSUMER STAPLES - 2.9% 7-Eleven* 3,671 $ 26 Alico 273 7 American Italian Pasta* (A) 2,386 103 Aurora Foods* 3,665 1 Cadiz* 5,567 1 Casey's General Stores 5,613 67 Chiquita Brands International* 5,175 57 Coca-Cola Bottling 126 6 Corn Products International 4,865 142 Del Monte Foods* 5,229 39 Delta & Pine Land 5,297 120 DIMON 7,452 43 Duane Reade* (A) 3,128 40 Elizabeth Arden* 1,917 19 Farmer Brothers 132 41 Fleming Companies (A) 6,676 3 Flowers Foods 3,184 87 Green Mountain Coffee* 544 10 Hain Celestial Group* 3,384 51 Horizon Organic Holding* 1,047 14 International Multifoods* 2,276 44 Interstate Bakeries 6,284 66 Lance 3,500 28 Longs Drug Stores 4,443 67 Mondavi Robert, Cl A* 782 16 Monterey Pasta* 2,204 7 Nash-Finch 1,724 15 National Beverage* 581 8 Natures Sunshine Product 530 5 NBTY* (A) 5,903 112 Nu Skin Enterprises 6,376 64 Pathmark Stores* 4,154 28 Peets Coffee & Tea* 1,407 23 Pilgrims Pride 2,591 21 Playtex Products* 4,177 34 Ralcorp Holdings* 4,324 113 Regis 6,237 155 Revlon* (A) 803 2 Riviana Foods 733 17 Ruddick 4,517 56 Sanderson Farms 867 17 Schweitzer-Mauduit International 2,198 49 Seaboard 48 10 Sensient Technologies 6,280 126 Smart & Final* 1,700 6 Smucker, JM 6,409 224 Standard Commercial 2,047 32 Tejon Ranch* 1,008 27 Topps* 6,019 51 United Natural Foods* (A) 2,749 70 Universal 4,136 156 Vector Group 3,575 39 Wild Oats* 3,042 28 ----------- 2,593 ----------- ENERGY - 4.2% 3TEC Energy* 2,255 34 Atwood Oceanics* 1,294 33 Berry Petroleum, Cl A 2,580 $ 39 Cabot Oil & Gas 3,997 96 Cal Dive International* (A) 4,935 89 Carbo Ceramics 932 31 Chesapeake Energy (A) 20,443 161 Comstock Resources* 3,714 38 Denbury Resources* 3,989 43 Dril-Quip* (A) 920 13 Encore Acquisition* 1,271 23 Energy Partners* 2,877 29 EnergySouth 437 12 Evergreen Resources* (A) 2,737 124 Exploration Company of Delaware* 2,536 8 Frontier Oil (A) 3,764 64 Global Industries* 9,599 45 Grey Wolf* (A) 24,113 95 Gulf Island Fabrication* 1,005 18 GulfMark Offshore* 1,934 26 Hanover Compressor* 6,956 45 Harvest Natural Resources* 6,005 29 Holly (A) 1,327 38 Horizon Offshore* 2,939 10 Hydril* 1,703 43 Input/Output* 6,518 23 Key Energy Services* (A) 16,187 163 Lone Star Technologies* 4,111 87 Lufkin Industries 309 6 Magnum Hunter Resources* 6,980 39 Magnum Hunter Resources Warrant* 1,160 -- Massey Energy 9,044 85 Maverick Tube* 5,423 101 Meridian Resource* 4,559 5 MGE Energy 1,849 49 Michael Baker* 787 7 Newpark Resources* 10,358 47 NS Group* 2,473 19 Nuevo Energy* 2,756 37 Oceaneering International* 3,316 72 Offshore Logistics* 2,686 48 Oil States International* 2,451 29 Parker Drilling* 11,198 27 Patina Oil & Gas 3,448 113 Penn Virginia 1,121 43 Petroleum Helicopters* 55 1 PetroQuest Energy* 4,389 7 Plains Exploration & Production* (A) 3,818 31 Plains Resources* 2,718 29 Prima Energy* 1,492 28 Quicksilver Resources* 1,632 39 Range Resources* 8,135 46 Remington Oil & Gas* 3,288 56 Resource America, Cl A 2,159 17 RPC 1,529 14 Seacor Smit* 2,505 88 Spinnaker Exploration* 3,364 65 St. Mary Land & Exploration 4,016 101 Stone Energy* 3,078 103 Superior Energy Services* 7,008 60 Swift Energy* 3,548 30
15
DESCRIPTION SHARES VALUE (000) - ------------------------------------------------------------------------------- Syntroleum* 2,659 $ 7 Tesoro Petroleum* (A) 9,315 69 Tetra Technologies* (A) 1,319 30 The Houston Exploration* 1,531 41 Tom Brown* 4,821 117 TransMontaigne* 2,547 11 Trico Marine Services* 3,576 9 Unit* 5,675 115 Universal Compression Holdings* 2,373 41 Veritas DGC* 4,472 30 Vintage Petroleum 7,003 67 Westar Energy 7,083 86 Western Gas Resources (A) 2,399 78 Westport Resources* 2,307 46 W-H Energy Services* 3,335 57 World Fuel Services 818 17 ----------- 3,722 ----------- FINANCIALS - 21.2% 1st Source 2,233 29 ABC Bancorp 1,248 17 Acadia Realty Trust (REIT) 1,930 15 Actrade Financial Technologies* (A) 1,449 1 Advanta, Cl B 3,188 24 Alabama National 1,404 58 Alexander's* 484 31 Alexandria Real Estate Equities 2,567 108 Alfa 5,026 58 Allegiant Bancorp 1,940 33 AMCORE Financial 3,537 77 American Capital Strategies (A) 5,427 122 American Home Mortgage Holdings 1,350 14 American Medical Security Group* 1,090 14 American National Bankshares 623 15 American Physicians Capital* 1,353 29 Ameritrade Holding* (A) 13,258 66 Amli Residential Properties Trust 1,928 41 Anchor Bancorp 3,041 67 Anthracite Capital (REIT) 6,632 76 Anworth Mortgage Asset 3,495 46 Apex Mortgage Capital 5,807 35 Argonaut Group 3,305 28 Arrow Financial 910 26 Associated Estates Realty (REIT) 2,345 13 Avatar Holdings* 615 16 Baldwin & Lyons 1,093 22 Banc 2,013 10 BancFirst 558 25 Bank Mutual 1,903 48 Bank of Granite 1,940 32 Bank of the Ozarks 692 19 BankAtlantic Bancorp 6,889 67 Banknorth Group 1,301 28 Bankunited Financial* 3,794 67 Banner 1,670 26 Bay View Capital* 9,660 53 Bedford Property Investors (REIT) 2,181 57 Berkshire Hills Bancorp 837 19 BKF Capital Group* 846 14 Boston Private Financial Holdings 2,930 44 BostonFed Bancorp 623 $ 14 Boykin Lodging (REIT) 2,486 18 Brandywine Realty Trust (REIT) 3,909 86 Brookline Bancorp 8,450 106 Bryn Mawr Bank 139 5 BSB Bancorp 1,243 27 California First National Bancorp 76 1 Camden National 1,213 31 Capital Automotive (REIT) 3,078 77 Capital City Bank Group 988 39 Capitol Bancorp 1,290 27 Capstead Mortgage 1,400 16 Cascade Bancorp 1,801 26 Cash America International 2,656 25 Cathay Bancorp 2,225 87 CB Bancshares 426 21 CBL & Associates Properties (REIT) 2,920 119 CCBT Financial 1,239 27 Central Coast Bancorp* 1,223 19 Century Bancorp, Cl A 416 11 CFS Bancorp 1,788 25 Charter Financial 619 19 Charter Mutual 5,101 90 Chateau Communities (REIT) 3,065 58 Chelsea Property Group (REIT) 4,033 150 Chemical Financial 3,415 91 Chittenden 5,433 142 Citizens* 3,261 20 Citizens First Bancorp 1,291 25 City Bank 1,147 26 City Holdings 2,435 67 Clark Bardes Holdings* 2,042 24 CNA Surety* 2,136 17 Coastal Bancorp 545 16 Coastal Financial 1,201 14 Cobiz 1,140 16 Colonial Properties Trust (REIT) 1,994 66 Columbia Bancorp 829 20 Columbia Banking System* 1,915 26 Commerce Group 3,538 121 Commercial Federal 6,534 142 Commercial Net Lease Realty (REIT) 5,280 80 Community Bank System 1,673 53 Community Banks 1,187 35 Community First Bankshares 5,116 131 Community Trust Bancorp 1,817 46 CompuCredit* 2,767 17 Connecticut Bancshares 1,618 67 Cornerstone Realty Income Trust (REIT) 6,917 48 Corporate Office Properties Trust (REIT) 3,014 45 Correctional Properties Trust (REIT) 812 17 Corrections Corporation of America* 4,044 71 Corus Bankshares 1,275 51 CPB 2,036 52 Crawford & Company 3,825 16 Credit Acceptance* 2,010 10 Crown American Realty Trust (REIT) 3,541 35 CVB Financial 4,748 92 Delphi Financial Group 1,940 76
The accompanying notes are an integral part of the financial statements. 16
DESCRIPTION SHARES VALUE (000) - ------------------------------------------------------------------------------- Developers Diversified Realty (REIT) 2,598 $ 63 Dime Community Bancshares 3,221 74 DVI* 1,946 17 East West Bancorp 3,402 105 EastGroup Properties (REIT) 2,120 54 Elan Rights* 6,919 -- EMC Insurance Group 295 6 Entertainment Properties Trust (REIT) 2,466 65 Equity Inns (REIT) 5,831 34 Equity One (REIT) (A) 5,402 83 eSPEED, Cl A* 3,242 38 Essex Property Trust (REIT) 1,657 87 Euronet Worldwide* 2,056 16 F&M Bancorp 1,525 67 F.N.B 334 9 Farmers Capital Bank 363 12 FBL Financial Group, Cl A 1,643 32 Federal Agricultural Mortgage, Cl C* 1,144 25 Federal Realty Investment Trust (REIT) 5,559 169 FelCor Lodging Trust (REIT) 7,106 44 Fidelity Bankshares 2,281 42 Fidelity National Information Solutions* 2,088 37 Financial Federal* 1,735 33 Financial Industries 1,182 17 Financial Institutions 1,120 22 First Bancorp North Carolina 1,046 26 First Bank - Puerto Rico 4,799 129 First Busey 1,116 26 First Charter 4,446 78 First Citizens Bancshares 659 62 First Commonwealth Financial 8,462 99 First Community Bancorp 1,143 33 First Community Bancshares 1,352 45 First Defiance Financial 684 13 First Essex Bancorp 1,007 31 First Federal Capital 2,476 50 First Financial 1,054 50 First Financial Bancorp 5,199 82 First Financial Bankshares 1,780 63 First Financial Holdings 2,195 54 First Indiana 1,737 27 First Merchants 2,135 49 First National 1,101 28 First Niagara Financial Group 3,471 41 First Oak Brook Bancshares 630 19 First Place Financial 1,843 28 First Republic Bank* 1,489 32 First Sentinel Bancorp 3,574 49 First South Bancorp 323 11 First State Bancorporation 852 18 FirstFed American Bancorp 1,053 29 FirstFed Financial* 2,992 90 Flagstar Bancorp 2,457 65 Flushing Financial 1,661 29 FPIC Insurance Group* 1,268 9 Franklin Financial 428 12 Fremont General 8,416 58 Friedman, Billings, Ramsey Group* (A) 13,374 121 Frontier Financial 2,351 58 Gabelli Asset Management* 926 $ 26 Gables Residential Trust (REIT) 3,462 93 GBC Bancorp of California 1,228 30 German American 1,240 22 Getty Realty (REIT) 2,127 40 Glacier Bancorp 2,513 67 Gladstone Capital 1,347 22 Glenborough Realty Trust (REIT) 1,183 18 Glimcher Realty Trust (REIT) 4,074 78 Gold Banc 4,862 39 Great American Financial Resources 1,020 15 Great Lakes (REIT) 2,118 30 Great Southern Bancorp 819 30 Hancock Holding 1,895 82 Hanmi Financial* 1,470 25 Harbor Florida Bancshares 3,067 72 Harleysville Group 4,269 107 Harleysville National 2,760 67 Hawthorne Financial* 1,100 33 Health Care (REIT) 4,819 126 Healthcare Realty Trust (REIT) 5,325 130 Heritage Property Investment Trust (REIT) 2,596 65 Hilb, Rogal & Hamilton 4,345 136 Home Properties of New York (A) 3,757 125 Horace Mann Educators (A) 5,368 70 HRPT Properties Trust (REIT) 16,011 136 Hudson River 2,197 50 Humboldt Bancorp 1,828 23 IBERIABANK 863 35 IMPAC Mortgage Holdings (REIT) 7,234 94 Independence Holdings 532 10 Independent Bank 1,736 35 Independent Bank - Michigan 2,664 54 Innkeepers USA Trust (REIT) 3,631 24 Insignia Financial Group* 2,945 32 Integra Bank 2,272 39 Interchange Financial Services 1,112 19 International Bancshares 3,243 126 Investors Real Estate Trust (REIT) 4,581 43 Irwin Financial 2,415 47 ITLA Capital* 834 28 Jefferies Group 2,784 100 Jones Lang LaSalle* 4,364 60 Kansas City Life Insurance 540 23 Keystone Property Trust (REIT) 2,135 37 Kilroy Realty 2,610 58 Knight Trading Group* 11,744 46 Koger Equity (REIT) 2,752 42 Kramont Realty Trust 2,654 40 La Quinta (REIT)* 19,826 60 Lakeland Bancorp 1,736 28 Lakeland Financial 722 18 LandAmerica Financial Group 2,672 106 Lasalle Hotel Properties (REIT) 2,424 29 Lendingtree* (A) 1,076 13 Lexington Corporate Properties Trust (REIT) 3,702 63 LNR Property 3,232 109 Local Financial* 3,572 52 LSB Bancshares 1,085 17
17
DESCRIPTION SHARES VALUE (000) - ------------------------------------------------------------------------------- LTC Properties (REIT) 2,031 $ 13 Macatawa Bank 844 18 Macerich (REIT) 4,774 151 MAF Bancorp 2,743 92 Main Street Banks 1,635 30 MainSource Financial Group 560 13 Manufactured Home Communities (REIT) 1,783 53 MASSBANK 11 -- MB Financial 1,633 58 MCG Capital 3,091 31 Merchants Bancshares 297 7 MeriStar Hospitality (REIT) 5,880 20 Metris (A) 5,247 12 MFA Mortgage Investments (REIT) 4,863 42 Mid-America Apartment Communities (REIT) 2,025 48 Mid-Atlantic Realty Trust (REIT) 2,471 45 Midland 1,336 24 Mid-State Bancshares 3,474 58 Midwest Banc Holdings 1,491 27 Mills (REIT) 3,240 101 Mission West Properties (REIT) 1,840 17 Nara Bancorp 980 12 NASB Financial 569 13 National Health Investors (REIT)* 3,337 51 National Health Realty (REIT) 140 2 National Penn Bancshares 2,178 59 National Western Life Insurance, Cl A* 433 41 Nationwide Health Properties (REIT) 6,767 87 Navigators Group* 662 17 NBC Capital 426 10 NBT Bancorp 4,315 75 NetB@nk 7,237 67 New Century Financial 2,268 71 Northwest Bancorp 1,592 26 Novastar Financial (REIT) 1,119 38 NYMAGIC* 242 5 Oceanfirst Financial 1,582 34 Ocwen Financial* 5,724 17 Odyssey Re Holdings 2,614 47 Ohio Casualty* 7,329 95 Old Second Bancorp 997 38 Omega Financial 728 25 OMEGA Healthcare Investors (REIT)* 3,078 7 Oriental Financial Group 1,976 43 Pacific Capital Bancorp 5,042 149 Pacific Northwest Bancorp 2,218 62 Pacific Union Bank* 1,767 20 Pan Pacific Retail Properties (REIT) (A) 5,311 201 Parkvale Financial 176 4 Parkway Properties (REIT) 1,125 42 Partners Trust Financial Group 1,004 17 Peapack-Gladstone Financial 868 22 PennFed Financial Services 766 20 PennRock Financial Services 1,058 30 Pennsylvania (REIT) 1,928 55 Peoples Bancorp 1,221 28 Peoples Holding Company 753 32 PFF Bancorp 1,629 52 Philadelphia Consolidated Holding* 2,426 87 Pico Holdings* 939 $ 12 PMA Capital 4,049 27 Port Financial 672 32 Post Properties (REIT) 3,976 96 Prentiss Properties Trust (REIT) 4,345 118 Presidential Life 3,095 19 Price Legacy (REIT)* 2,664 7 PrivateBancorp 892 20 Proassurance* 3,467 82 Prosperity Bancshares 1,846 31 Provident Bancorp 405 13 Provident Bankshares 3,441 79 PS Business Parks (REIT) 1,437 43 Quaker City Bancorp* 904 31 R&G Financial 2,423 53 RAIT Investment Trust (REIT) 2,528 57 Ramco-Gershenson Properties Trust (REIT) 953 21 Realty Income (REIT) 4,678 167 Redwood Trust (REIT) (A) 1,782 58 Republic Bancorp 7,548 89 Republic Bancorp, Cl A 1,265 15 Republic Bancshares 758 15 RFS Hotel Investors 4,101 40 Riggs National 2,166 31 RLI 1,900 51 Royal Bancshares of Pennsylvania, Cl A 603 12 S Y Bancorp 743 27 S&T Bancorp 3,868 99 Sandy Spring Bancorp 2,094 68 Santander Bancorp 736 10 Saul Centers (REIT) 1,903 44 Saxon Capital* 4,046 54 Seacoast Banking 1,498 29 Seacoast Financial Services 3,499 64 Second Bancorp 1,316 29 Selective Insurance Group 3,971 97 Senior Housing Properties Trust (REIT) 6,427 74 Shurgard Storage Centers 4,184 130 Simmons First National, Cl A 990 36 Sizeler Property Investors (REIT) 40 -- SL Green Realty 3,803 116 SoundView Technology Group* 10,795 14 South Financial Group 6,449 140 Southwest Bancorp 582 13 Southwest Bancorp of Texas* 4,071 122 Sovran Self Storage 1,708 49 St. Francis Capital 1,065 24 State Auto Financial 1,965 33 State Bancorp 268 5 Staten Island Bancorp 7,954 119 Sterling Bancorp 1,545 38 Sterling Bancshares 5,497 65 Sterling Financial 2,527 57 Sterling Financial* 2,203 47 Stewart Information Services* 2,948 68 Suffolk Bancorp 1,692 52 Summit Bancshares 30 1 Summit Properties (REIT) 2,944 54 Sun Bancorp 83 2
The accompanying notes are integral part of the financial statements. 18
DESCRIPTION SHARES VALUE (000) - ------------------------------------------------------------------------------- Sun Bancorp* 903 $ 13 Sun Communities 2,049 73 Superior Financial 1,082 20 Susquehanna Bancshares 4,827 100 SWS Group 1,948 27 Tanger Factory Outlet Centers (REIT) 950 29 Taubman Centers (REIT) 4,139 70 Texas Regional Bancshares, Cl A 3,500 106 The Trust Company of New Jersey 2,680 73 Thornburg Mortgage (REIT) 7,139 147 Tompkins Trustco 1,071 48 Town & Country Trust (REIT) 2,457 50 Trammell Crow* 4,243 34 Triad Guaranty* 1,232 42 TriCo Bancshares 612 15 Troy Financial 1,230 31 TrustCo Bank Corporation of New York 8,879 86 U.S. Restaurant Properties 2,822 40 UCBH Holdings 2,616 115 UICI* 5,559 53 UMB Financial 2,250 83 Umpqua Holdings 4,145 75 Union Bankshares 1,114 30 United Bankshares 4,672 129 United Community Banks 2,394 55 United Community Financial 4,512 39 United Fire & Casualty 1,061 32 United National Bancorp 2,372 56 Universal American Financial* 4,904 28 Universal Health Realty Income Trust (REIT) 1,222 32 Unizan Financial 3,175 58 Urstadt Biddle Properties, Cl A (REIT) 1,087 13 USB Holding 1,723 28 Ventas (REIT) 9,433 109 Vesta Insurance Group 4,937 11 Virginia Financial Group 986 26 W Holding 6,258 115 Walter Industries 3,874 34 Warwick Community Bancorp 598 18 Washington Real Estate Investment Trust 5,310 138 Washington Trust Bancorp 2,037 41 Waypoint Financial 5,152 89 Wellsford Real Properties* 772 11 Wesbanco 3,074 72 West Coast Bancorp 2,264 32 Westcorp 2,077 39 WFS Financial* 989 19 Willow Grove Bancorp 737 11 Winston Hotels 2,373 16 Wintrust Financial 2,118 61 World Acceptance* 1,515 14 WSFS Financial 1,136 36 Yardville National Bancorp 1,147 20 Zenith National Insurance 1,188 25 ----------- 18,825 ----------- HEALTH CARE - 11.7% 1-800 Contacts* (A) 907 $ 18 AAI Pharma* 2,409 21 Abgenix* 11,257 98 ABIOMED* 1,606 6 Adolor* 4,496 45 Advanced Neuromodulation Systems* 1,302 56 Advisory Board* 668 23 Aksys* (A) 3,668 26 ALARIS Medical* 2,047 21 Albany Molecular Research* 2,982 44 Alexion Pharmaceuticals* 2,612 32 Align Technology* (A) 4,643 28 Alkermes* (A) 7,861 71 Alliance Imaging* 2,067 6 Allos Therapeutics* 3,310 13 Alpharma, Cl A 3,794 68 American Healthways* 1,731 33 American Medical Systems* 2,810 41 American Pharmaceutical Partners* (A) 1,195 23 AMERIGROUP* 1,389 41 Ameripath* 4,059 86 Amsurg, Cl A* (A) 2,945 74 Amylin Pharmaceuticals* (A) 8,832 143 Angelica 1,230 21 Antigenetics* (A) 3,159 26 Aphton* (A) 2,689 7 Applera* 9,899 85 Applied Molecular Evolution* 2,263 6 Apria Healthcare Group* 5,880 137 Arena Pharmaceuticals* 2,810 18 Ariad Pharmaceuticals* 4,658 6 Arqule* 3,288 8 Array Biopharma* 3,273 14 Arrow International 1,047 43 Arthrocare* 3,153 39 AtheroGenics* 3,886 36 Atrix Laboratories* 2,519 35 AVANIR Pharmaceuticals* 9,103 10 Avigen* (A) 2,900 8 Bentley Pharmaceuticals* 1,544 12 Beverly Enterprises* 14,126 29 BioMarin Pharmaceutical* (A) 5,670 64 Biopure* 2,880 10 Bio-Rad Laboratories, Cl A* 2,438 87 Bio-Reference Labs* 1,140 5 BioReliance* 510 10 Biosite* (A) 1,653 63 Bio-Technology General* 8,423 23 Bone Care International* 1,556 11 Bradley Pharmaceuticals* 1,163 16 Bruker Daltronics* 1,612 5 Caliper Technologies* 3,690 13 Cantel Medical* 806 10 Cardiac Science* 8,055 18 Cardinal Health (A) 1,159 66 CardioDynamics International* 4,852 15 Cell Genesys* 4,737 35 Cell Therapeutics* 4,783 40 Centene* 726 21
19
DESCRIPTION SHARES VALUE (000) - ------------------------------------------------------------------------------- Ceres Group* 2,734 $ 5 Cerus* 1,973 17 Chattem* 1,498 23 Cholestech* 1,819 15 CIMA Labs* 1,727 37 Ciphergen Biosystems* 3,195 18 Closure Medical* 577 7 Cobalt* 1,541 22 Columbia Laboratories* 3,995 16 Conceptus* 2,424 22 CONMED* 3,888 64 Connetics* 4,415 74 Cooper (A) 4,396 131 Corixa* 6,634 45 Corvel* 624 20 Covance* (A) 8,969 207 Cryolife* (A) 2,355 16 Cubist Pharmaceuticals* 3,896 31 CuraGen* 6,171 25 Curative Health Services* 1,643 28 CV Therapeutics* (A) 3,906 70 Cyberonics* 3,134 67 D & K Healthcare Resources 1,946 20 Datascope 1,671 45 Decode Genetics* 5,226 10 Del Laboratories* 622 12 Deltagen* 1,205 -- Digene* 1,125 19 Discovery Partners International* 2,981 8 Diversa* 3,926 37 Drugstore.com* 4,112 16 Durect* 1,576 2 Dynacq International* 956 13 Embrex* 1,035 8 Endo Pharmaceuticals* 2,778 37 Endocardial Solutions* 1,858 5 Endocare* 2,788 7 Enzo Biochem* 3,322 43 Enzon* (A) 6,197 70 Eon Labs* 1,022 27 EPIX Medical* 1,987 16 eResearch Technology* (A) 1,244 33 Esperion Therapeutics* 3,302 33 Exact Sciences* 1,806 19 Exelixis* 6,501 43 First Horizon Pharmaceutical* 3,210 8 Gene Logic* 4,320 22 Genencor International* 1,774 18 Genesis Health Ventures* 4,031 60 Genta* (A) 6,149 44 Gentiva Health Services* 3,277 27 Genzyme* 5,431 6 Geron* (A) 3,860 20 Guilford Pharmaceuticals* 3,541 13 Haemonetics* 2,621 57 Hanger Orthopedic Group* 2,781 32 Harvard Bioscience* 2,383 9 Healthcare Services Group* 1,508 18 HealthExtras* 2,195 8 HealthTronics Surgical Services* 1,250 $ 10 Hologic* 2,775 24 Hooper Holmes 7,714 39 ICU Medical* 1,248 34 IDEXX Laboratories* 4,320 151 IGEN International* 2,296 81 ILEX Oncology* 4,681 43 Illumina* 3,780 9 ImClone Systems* (A) 7,376 122 Immucor* 1,511 33 ImmunoGen* 6,330 15 Immunomedics* 5,900 16 Impath* (A) 2,246 30 Impax Laboratories* 3,786 17 INAMED* 1,845 66 Incyte Genomics* 9,694 29 Indevus Pharmaceuticals* 5,448 13 Integra LifeSciences* 2,667 61 InterMune* 3,595 77 Interpore International* 2,524 20 Intuitive Surgical* 4,340 28 Invacare 3,452 109 Inverness Medical Innovations* 877 18 Isis Pharmaceuticals* (A) 6,726 24 Kendle International* 1,617 5 Kensey Nash* 953 20 Kindred Healthcare* 1,695 19 Kos Pharmaceuticals* 895 16 Kosan Biosciences* 2,648 12 K-V Pharmaceutical, Cl A* 3,284 59 Kyphon* 758 7 La Jolla Pharmaceutical* 6,100 10 LabOne* 764 15 Lannet* 858 9 Lexicon Genetics* 4,824 19 Lifecore Biomedical* 1,412 5 Ligand Pharmaceuticals* (A) 7,443 48 Luminex* 3,010 14 Martek Bioscience* 2,879 82 Matria Healthcare* 903 9 Maximus* 2,477 53 Maxygen* 4,120 30 Medarex* 10,043 32 MedCath* 1,091 6 Med-Design* (A) 1,223 4 Medical Staffing Network Holdings* 1,380 15 Medicines* 3,417 64 MedSource Technologies* 1,113 2 Mentor 5,282 90 Merit Medical Systems* 1,660 32 MGI Pharma* 3,610 46 MIM* 3,305 25 Mine Safety Appliances 779 28 Molecular Devices* 2,287 28 Myriad Genetics* 3,428 35 NABI Biopharmaceuticals* 5,571 33 NaPro BioTheraputics* 4,231 3 Nastech Pharmaceutical* 467 4 National Healthcare* 1,363 25 NDCHealth 4,646 78 Nektar Therapeutics* 7,963 50
The accompanying notes are an integral part of the financial statements. 20
DESCRIPTION SHARES VALUE (000) - ------------------------------------------------------------------------------- NeoPharm* 1,632 $ 19 Neose Technologies* 1,574 11 Neurocrine Biosciences* 4,062 170 Neurogen* 1,869 7 Noven Pharmaceuticals* 2,998 42 NPS Pharmaceuticals* 4,230 65 Ocular Sciences* 2,441 34 Odyssey Healthcare* 2,572 61 Onyx Pharmaceuticals* 2,019 17 Option Care* 1,920 16 Orasure Technologies* 4,288 25 OrthoLogic* 4,991 17 OSI Pharmaceuticals* (A) 5,228 84 Owens & Minor 4,917 86 PacifiCare Health Systems* 5,028 121 Pain Therapeutics* 442 1 PAREXEL International* 3,412 47 PDI* 1,313 10 Pediatrix Medical Group* 3,224 81 Penwest Pharmaceuticals* 1,348 22 Peregrine Pharmaceuticals* (A) 15,316 8 Perrigo 8,069 96 Per-Se Technologies* 4,335 34 Pharmaceutical Resources* 2,598 110 Pharmacopeia* 3,376 30 PolyMedica (A) 1,337 41 Possis Medical* 2,557 41 POZEN* 3,229 12 Praecis Pharmaceuticals* 7,870 30 Prime Medical Services* 1,891 14 Priority Healthcare, Cl B* 3,119 83 Progenics Pharmaceutical* 1,275 6 Protein Design Labs* 12,797 95 Province Healthcare* 6,888 61 ProxyMed Pharmacy* 532 4 PSS World Medical* 10,272 67 Q-Med* 1,075 7 Quest Diagnostics* (A) 1,003 60 Quidel* 3,831 13 Radiologix* 2,897 7 Regeneron Pharmaceutical* (A) 4,817 36 RehabCare Group* (A) 2,287 41 Res-Care* 2,867 8 ResMed* 4,385 140 Respironics* 4,475 154 Rigel Pharmaceuticals* 4,204 3 Rita Medical Systems* 1,464 6 Salix Pharmaceuticals* 2,677 18 Sangamo Biosciences* 2,903 8 Sangstat Medical* 3,805 37 Scios Nova* 6,670 294 Seattle Genetics* 2,664 6 Select Medical* 2,760 39 Sepracor* (A) 9,972 135 Sequenom* 5,668 10 Serologicals* 3,458 29 Sierra Health Services* (A) 3,900 50 Sola International* 3,133 39 Sonic Innovations* 1,483 4 Sonosite* 2,035 32 Specialty Laboratories* 916 $ 8 Stewart Enterprises, Cl A* 13,897 38 Sunrise Assisted Living* (A) 2,572 62 SuperGen* 4,638 13 SuriModics* (A) 1,918 59 Sybron Dental Specialties* 5,476 96 Tanox* 3,455 45 Techne* 5,996 124 Telik* 4,604 62 Texas Biotechnology* 6,927 9 Theragenics* 4,224 15 Therasense* (A) 3,250 22 Thoratec* 7,081 90 Transkaryotic Therapies* 4,025 24 Trimeris* (A) 2,156 89 TriPath Imaging* 3,020 13 Tripos* 1,135 6 Tularik* 5,995 30 U.S. Oncology* 9,899 70 U.S. Physical Therapy* 1,466 16 United Surgical Partners* (A) 2,391 44 United Therapeutics* (A) 2,250 39 Urologix* 1,931 4 Varian Medical Systems* 3,936 113 VCA Antech* 2,989 46 Ventana Medical Systems* 1,870 38 Viasys Healthcare* 3,753 53 Vical* 2,799 7 Vicuron Pharmaceuticals 3,078 33 Virbac* 736 4 VISX* 6,923 73 Vital Signs 735 20 Vivus* 4,736 16 West Pharmaceutical Services 1,735 34 Women First Healthcare* 2,251 1 Wright Medical Group* 2,259 40 Young Innovations* 515 11 Zoll Medical* 1,203 49 Zymogenetics* 1,188 11 ----------- 10,366 ----------- INDUSTRIALS - 14.1% 3D Systems* 961 4 A.O. Smith 2,396 64 AAON* 1,350 17 AAR 3,945 15 ABM Industries 5,431 71 ACME Communication* 1,226 8 Active Power* 4,832 5 Actuant, Cl A* 1,320 46 Acuity Brands 5,966 80 Administaff* 3,158 20 Advanced Energy Industries* 2,701 23 Aftermarket Technology* 1,310 15 Airborne (A) 6,968 137 Airtran Holdings* 9,087 61 Alamo Group 704 8 Alaska Air Group* 3,470 54 Albany International, Cl A 3,730 85 Alderwoods Group* 6,278 22
21
DESCRIPTION SHARES VALUE (000) - ------------------------------------------------------------------------------- Alexander & Baldwin 5,890 $ 146 Amerco* 1,781 7 American Superconductor* 2,952 11 American Woodmark 779 34 AMETEK 4,762 157 Apogee Enterprises 4,398 36 Arbitron* 4,233 134 Arkansas Best 3,093 79 Armor Holdings* 3,402 34 Artesyn Technologies* 4,370 14 Astec Industries* 2,714 16 AstroPower* 2,699 11 ATA Holdings* 325 1 Atlantic Coast Airline Holdings* 5,851 36 Atlas Air Worldwide Holdings* 2,895 2 Aviall* 2,684 21 Baldor Electric 4,387 94 Banta 3,614 107 Barnes Group 1,489 32 BE Aerospace* (A) 5,144 10 Belden 3,268 35 Bowne & Company 4,829 48 Brady, Cl A 2,318 66 Briggs & Stratton 2,806 109 Bright Horizons Family Solutions* 1,462 41 Butler Manufacturing 775 13 C&D Technologies 3,748 45 Capstone Turbine* 11,168 8 Carlisle Companies 4,376 177 Cascade 1,353 19 Casella Waste Systems* 2,399 20 CCC Information Services Group* 1,770 29 CDI* 1,908 44 Central Parking 2,811 28 Century Business Services* 11,356 29 Checkpoint Systems* 3,923 39 Chemed 1,502 48 Choice Hotels International* 2,933 72 Circor International 1,515 21 CLARCOR 3,171 115 Coinstar* (A) 2,856 48 Collins & Aikman* 3,789 15 Columbus McKinnon* 2,466 4 Comfort Systems USA* 5,459 12 Consolidated Graphics* 1,601 27 Corinthian Colleges* (A) 5,452 215 Cornell Companies* 2,229 19 Corporate Executive Board* (A) 5,327 190 CoStar Group* 1,875 42 Covenant Transport, Cl A* 935 16 CPI 229 3 Cubic 2,219 36 Culp* 1,076 5 CUNO* 2,252 76 Curtiss-Wright 1,425 86 Daisytek International* 2,434 5 DHB Industries* 2,048 5 DiamondCluster, Cl A* 2,924 4 Dollar Thrifty Automotive* 3,897 65 Dominion Homes* 589 $ 8 Drew Industries* 1,012 15 DRS Technologies* 2,383 60 Ducommun* 994 10 Dycom Industries* 6,895 71 EDO 2,206 40 eFunds* 6,718 46 EGL* 4,976 74 Electro Scientific Industries* 3,964 50 ElkCorp 2,793 53 Emcor Group* 2,143 103 Encore Wire* 1,914 16 Energy Conversion Devices* 2,152 18 Engineered Support Systems 1,841 72 Ennis Business Forms 2,237 25 Escalade* 521 7 ESCO Technologies* 1,726 57 Esterline Technologies* 2,994 51 ExpressJet Holdings* 4,917 40 FactSet Research Systems (A) 2,997 97 First Consulting Group* 2,831 18 Fleetwood Enterprises 5,041 20 Florida East Coast Industries, Cl A 2,825 69 Flow International* 1,755 4 Forward Air* 1,771 39 Frontier Airlines* 4,260 21 FTI Consulting* 3,136 145 FuelCell Energy* 4,927 25 Gardner Denver* 2,283 42 GenCorp 4,479 28 General Cable 4,773 18 Genesee & Wyoming, Cl A* 1,248 19 Genlyte Group* 1,739 58 Global Power Equipment* 3,385 17 Gorman-Rupp 921 18 Granite Construction 4,622 73 Greif Brothers, Cl A 1,857 33 Griffon* 3,812 49 Headwaters* 3,943 55 Heartland Express* 4,294 82 Hecla Mining* 13,931 46 HEICO 2,099 19 Heidrick & Struggles International* 2,610 30 Herley Industries* 1,719 30 Hexcel* 3,544 10 Hollinger International 8,101 64 ICT Group* 493 5 IDEX 3,578 104 II-VI* 1,461 24 Imagistics International* 2,406 45 Information Resources* 4,108 5 infoUSA* 4,276 21 Insurance Auto Auctions* 1,697 19 Integrated Electrical Services* 5,522 24 Interpool 1,267 17 Invision Technologies* 1,667 37 Ionics* 2,524 42 ITT Educational Services* 6,124 171 J.B. Hunt Transport Services* (A) 3,213 86 JLG Industries 7,249 34 John H. Harland 4,205 102
The accompanying notes are an integral part of the financial statements. 22
DESCRIPTION SHARES VALUE (000) - ------------------------------------------------------------------------------- Joy Global* 6,686 $ 72 Kadant* 1,250 20 Kaman 3,278 32 Kansas City Southern Industries* 8,368 94 Kaydon 3,962 75 Kennametal 4,580 129 Keystone Automotive Industries* 1,579 28 Kforce* 3,022 8 Kirby* 2,686 66 Knight Transportation* 3,446 68 Korn Ferry International* 6,108 40 Kroll* (A) 3,774 81 L.S. Starrett, Cl A 222 3 Labor Ready* 6,975 40 Ladish* 1,368 6 Landauer 858 31 Landstar* 2,202 127 Lawson Products 545 14 Learning Tree International* 1,504 20 Lennox International (A) 6,159 89 Lightbridge* 4,070 26 Lincoln Electric Holdings 4,579 83 Lindsay Manufacturing 944 20 Littelfuse* 2,824 51 LSI Industries 1,646 15 Lydall* 2,117 19 MagneTek* 2,829 7 Mail-Well* 4,097 8 Manitowoc 4,224 71 Manufacturers' Services* 2,164 10 Marine Products 1,425 13 MasTec* 3,299 7 McGrath Rentcorp 1,483 34 MCSi* 3,168 1 Mediacom Communications* 7,728 68 Medis Technologies* 1,554 8 MedQuist* 1,460 25 MemberWorks* 1,240 26 Mercury Computer Systems* 3,115 85 Mesa Air Group* 4,727 23 Mesaba Holdings* 1,385 8 Midwest Express Holdings* 1,782 2 Milacron 2,432 10 Mobile Mini* 1,972 32 Modtech Holdings* 1,541 11 Monro Muffler Brake* 958 20 MPS Group* 13,527 71 Mueller Industries* 3,645 91 Nacco Industries, Cl A 777 36 National Presto Industries 761 20 Navigant Consulting* 6,053 32 Navigant International* 1,742 18 NCI Building Systems* 2,647 41 NCO Group* 2,695 39 Nordson 2,704 65 Northwest Pipe* 797 10 On Assignment* 3,049 13 Orbital Sciences* 6,944 36 Oshkosh Truck 2,165 135 Overseas Shipholding Group 3,922 65 P A M Transportation Services* 549 $ 12 Paxar* 4,581 52 Pegasus Solutions* 3,578 40 Penn Engineering & Manufacturing 1,684 19 Power-One* 7,774 34 Prepaid Legal Services* (A) 1,884 33 PRG-Schultz International* 5,141 37 PRIMEDIA* 19,899 49 Princeton Review* 2,578 11 ProBusiness Services* 3,033 40 Protection One* 2,475 4 Proton Energy Systems* 3,488 9 Quanta Services* 4,621 15 Quixote 866 14 RailAmerica* 4,202 26 Rayovac* 4,618 50 Regal Beloit 3,330 51 Reliance Steel & Aluminum 3,417 52 RemedyTemp, Cl A* 821 10 Resources Connection* 2,741 58 Right Management Consultants* 2,798 36 Roadway Express 1,695 57 Robbins & Myers 1,411 19 Rollins 3,192 74 ScanSoft* (A) 7,500 34 Schawk 1,087 11 Schnitzer Steel Industries, Cl A 368 9 SCS Transportation* 2,258 24 Sequa* 897 31 Service Corporation International* (A) 42,372 118 Simpson Manufacturing* 2,092 71 Sirius Satellite Radio* 10,753 8 Spartan Motors 1,485 13 Spherion* (A) 8,482 34 SPS Technologies* 1,775 43 Standard Register 2,505 37 Standex International 1,568 30 Stericycle* (A) 4,539 171 Stewart & Stevenson Services 4,105 45 Strattec Security* 344 15 Strayer Education 1,188 65 SureBeam* (A) 9,154 32 Sylvan Learning Systems* 4,567 73 Technical Olympic USA* 971 16 Tecumseh Products, Cl A 1,871 77 Teletech Holdings* 5,618 31 Tennant 1,344 42 Tenneco Automotive* 6,239 14 Terex* 6,904 85 Tetra Technologies* 7,215 102 Thomas & Betts* 6,247 89 Thomas Industries 2,079 52 Thomas Nelson* 1,152 10 TRC* 728 10 Tredegar 3,736 45 Trex* 932 30 Trinity Industries (A) 4,569 79 Triumph Group* 2,019 45 U.S. Industries* 11,209 44 U.S. Xpress Enterprises* 862 7
23
DESCRIPTION SHARES VALUE (000) - ------------------------------------------------------------------------------- UniFirst 1,126 $ 17 United Defense Industries* 3,043 66 United Industrial 1,459 18 United Stationers* 4,325 92 Universal Forest Products 1,964 30 UNOVA* 5,956 32 URS* 3,297 38 USFreightways 3,871 98 USG* (A) 6,250 26 Valmont Industries 1,584 34 ValueClick* 9,235 28 Vicor* 2,902 17 Virco Manufacturing 916 9 Volt Information Sciences* 1,272 13 Wabash National* 3,310 21 Wallace Computer Services 5,375 134 Waste Connections* (A) 3,697 128 Water Pik Technologies* 1,902 13 Watsco 2,464 34 Watson Wyatt & Company Holdings* 2,892 58 WD-40 Company 2,045 51 Werner Enterprises 5,551 107 William Lyon Homes* 1,073 27 Wilson Greatbatch Technologies* 3,017 84 Woodward Governor 1,277 45 Worthington Industries 9,049 108 Yellow* 4,178 101 ----------- 12,548 ----------- INFORMATION TECHNOLOGY - 16.0% Acacia Technologies* 3,151 4 Acclaim Entertainment* 11,182 4 Actel* 3,033 52 Actuate* 7,089 10 ADE* 1,416 8 ADTRAN* (A) 2,920 105 Advanced Digital Information* 8,974 62 Advanced Power Technology* 729 2 Aeroflex* 8,657 49 Agile Software* 5,443 35 Akamai Technologies* 15,629 22 Allen Telecom* 3,963 39 Alliance Semiconductor* 3,218 10 Alloy* 4,498 23 Allscripts Healthcare Solutions* 3,610 10 Altiris* 813 10 American Management Systems* 5,649 68 ANADIGICS* 4,649 10 Analogic 737 34 Anaren Microwave* 3,240 28 Anixter International* (A) 4,116 93 Answerthink* 6,751 15 ANSYS* 2,127 51 Anteon International* 2,158 48 Applied Films* 1,589 26 aQuantive* 5,003 22 Ariba* (A) 38,095 107 Arris Group* (A) 9,943 37 Artisan Components* 2,141 35 Ascential Software* 34,776 97 AsiaInfo Holdings* 4,695 $ 19 Aspect Communication* 8,249 25 Aspen Technology* (A) 5,733 14 Asyst Technologies* 5,508 30 ATMI* 3,906 75 Audiovox* 2,345 17 August Technology* 1,058 4 Avanex* (A) 8,436 7 Avid Technology* 3,587 79 Avocent* 5,683 133 Axcelis Technologies* 14,114 67 AXT* 2,934 2 BARRA* (A) 2,154 64 BEI Technologies 1,598 15 Bel Fuse 1,015 20 Bell Microproducts* 2,503 13 Benchmark Electronics* 3,280 93 Black Box (A) 2,735 81 Borland Software* 8,739 80 Brooks Automation* (A) 4,874 47 Bruker AXS* 1,460 2 Cable Design Technologies* 6,397 43 Cabot Microelectronics* (A) 3,261 137 Caci International, Cl A* 4,101 137 Caminus* 1,566 14 Carreker* 3,061 6 Catapult Communications* 772 5 C-COR.net* 4,911 16 Centillium Communications* 4,000 16 Cepheid* 3,787 16 Charles River Associates* 1,023 17 ChipPAC, Cl A* 8,546 31 Chordiant Software* 5,996 7 CIBER* 8,029 38 Cirrus Logic* 10,462 21 ClearOne Communications* (B) 1,090 -- CNET Networks* 17,888 45 Cognex* 4,842 103 Cognizant Technology Solutions* 1,179 79 Coherent* 4,160 78 Cohu 2,981 44 CombiMatrix* 1,758 3 CommScope* 7,432 56 Compucom Systems* 3,288 12 Computer Horizons* 4,469 14 Computer Network Technology* (A) 3,663 25 Computer Programs & Systems* 433 11 Concord Communications* 2,289 20 Concurrent Computer* 9,262 20 Covansys* 2,971 7 Cray* 6,638 44 Credence Systems* 8,727 59 Cree* (A) 10,496 194 CTS 4,301 26 Daktronics* 2,175 34 Datastream Systems* 2,267 15 DDI* 6,979 1 Dendrite International* 4,460 38 Digimarc* 1,282 15 Digital Insight* 4,066 57
The accompanying notes are an integral part of the financial statements. 24
DESCRIPTION SHARES VALUE (000) - ------------------------------------------------------------------------------- Digital River* 3,863 $ 53 Digitas* 1,264 4 Dionex* 2,230 74 Docucorp International* 1,286 4 Documentum* 5,700 75 DoubleClick* 17,101 133 Drexler Technology* 1,125 16 DSP Group* 3,894 71 DuPont Photomasks* 1,725 35 Dynamics Research* 1,020 13 E.piphany* 9,032 36 EarthLink* 18,022 104 Echelon* 3,605 38 Eclipsys* 4,979 40 Electro Rent* 2,019 19 Electroglas* 3,236 3 Electronics for Imaging* 7,366 130 Embarcadero Technologies* 1,359 9 Emcore* 3,510 6 EMS Technologies* 1,507 21 Entegris* 6,610 66 Enterasys Networks* 23,283 43 Entrust* 6,911 17 EPIQ Systems* 1,426 27 ESS Technology* 4,371 26 eUniverse* 2,194 11 Exar* 5,635 72 Excel Technologies* 1,265 26 Extreme Networks* 14,847 64 F5 Networks* 3,198 40 FalconStor Software* (A) 4,910 19 FEI* 3,477 55 Filenet* 4,797 50 Finisar* (A) 19,176 15 FLIR Systems* 2,155 102 Forrester Research* 2,105 30 Foundry Networks* 12,406 100 Franklin Electric 709 33 FreeMarkets* 5,655 31 FSI International* 4,244 10 Gartner, Cl A* 11,925 83 General Binding* 709 6 Genesis Microchip* (A) 4,405 55 Global Imaging Systems* 1,177 22 GlobespanVirata* 15,946 72 GSI Commerce* 3,124 5 Handspring* (A) 5,913 4 Harmonic* 8,585 29 Harris Interactive* 5,461 30 Helix Technology 3,763 32 Homestore* 11,473 6 Hutchinson Technology* 3,334 82 Hypercom* 4,874 18 Hyperion Solutions* (A) 4,799 116 Identix* 12,092 54 IDX Systems* 2,434 38 iGATE* 3,462 10 I-many* 6,345 5 Imation* (A) 4,805 179 Inet Technologies* 2,123 13 InFocus* 4,334 $ 21 Infogrames* 807 1 Informatica* 8,255 53 Inforte* 902 5 Inrange Technologies, Cl B* 1,395 3 Insituform Technologies, Cl A* 3,270 44 Integral Systems* 1,333 28 Integrated Defense Technologies* 1,075 15 Integrated Silicon Solution* 3,858 9 InterCept* 2,255 9 InterDigital Communications* 8,059 182 Intergraph* 6,739 117 Interland* 17,767 12 Intermagnetics General* 2,126 38 Internet Security Systems* 5,489 55 Inter-Tel 2,610 39 Interwoven* 15,286 28 Iomega* 6,407 71 Itron* 3,023 51 ITXC* 2,881 4 IXIA* 3,097 15 IXYS* 1,750 9 JDA Software* 4,037 41 Keane* 8,001 65 Keithley Instruments 805 9 Keynote Systems* 3,464 32 Kopin* 10,001 50 Kronos* 2,666 93 Kulicke & Soffa* 7,100 34 Lattice Semiconductor* 12,297 93 Lawson Software* 2,028 9 LeCroy* 1,124 11 Legato Systems* 12,556 64 Lexar Media* 4,692 15 Liberate Technologies* 15,407 32 Lifeline Systems* 576 12 LookSmart* 9,857 27 LTX* 6,569 33 Magma Design Automation* 2,668 21 Manhattan Associates* 2,797 49 ManTech International* 1,121 17 Manugistics Group* (A) 8,562 20 MAPICS* 1,921 13 MapInfo* 2,181 8 MatrixOne* 6,766 23 Mattson Technology* 3,243 6 Maxtor* 28,724 162 McDATA, Cl A* (A) 9,122 78 MEMC Electronic Materials* 8,151 92 Mentor Graphics* 9,427 84 Merix* 1,929 8 MetaSolv* 4,257 6 Methode Electronics, Cl A 4,922 40 Micro Systems* 2,393 56 MicroAge* 3,579 -- Micromuse* (A) 10,769 56 Microsemi* 4,162 46 Microtune* 5,850 12 MIPS Technologies, Cl A* 5,137 9 Monolithic System Technology* (A) 2,833 20
25
DESCRIPTION SHARES VALUE (000) - ------------------------------------------------------------------------------- Moog, Cl A* 2,174 $ 67 MRO Software* 2,537 17 MRV Communications* 13,065 15 MSC.Software* 3,669 28 MTS Systems 3,031 33 Mykrolis* 5,717 48 Nanometrics* 1,179 5 Nassda* 779 5 Neoforma* 1,222 15 Net2Phone* 2,454 8 Netegrity* 4,317 16 NetIQ* 5,333 60 NetRatings* 1,412 9 Netro* 3,497 9 NetScout Systems* 2,830 8 NetScreen Technologies* 1,340 22 Network Plus* 1,155 -- New England Business Service 1,671 43 New Focus* 9,602 30 Newport* 5,466 65 Next Level Communications* 2,169 3 NIC* 3,737 7 Novadigm* 2,263 4 Novell* 52,290 112 Nu Horizons Electronics* 2,001 10 Nuance Communications* 4,355 9 Nyfix* 3,603 13 Oak Technology* 8,738 31 Omnicell* 1,867 6 OmniVision Technologies* (A) 2,856 59 ON Semiconductor* 4,257 5 ONYX Software* 6,822 6 Openwave System* 25,087 36 Oplink Communications* 16,544 16 OPNET Technologies* 1,528 8 Optical Communication Products* 2,060 2 OSI Systems* 969 15 Overland Storage* 1,089 16 Overture Services* 7,355 112 Packeteer* 3,248 32 Palm* 4,173 42 Paradyne Networks* 4,057 5 Parametric Technology* 37,611 82 Park Electrochemical 2,483 38 PC-tel* 2,887 26 PDF Solutions* 1,720 11 PEC Solutions* 1,204 14 Pegasystems* 1,084 4 Pericom Semiconductor* 2,840 22 Phoenix Technology* 3,731 16 Photon Dynamics* 2,454 40 Photronics* 4,001 48 Pinnacle Systems* 8,470 88 Pioneer Standard Electronics 4,323 36 Pixelworks* (A) 5,304 29 Planar Systems* 1,960 23 Plantronics* (A) 5,445 80 Plato Learning* 2,642 12 Plexus* 6,043 55 Plug Power* (A) 2,649 $ 13 PLX Technology* 2,194 5 Portal Software* 18,530 13 Powell Industries* 1,012 14 Power Integrations* 3,632 75 Powerwave Technologies* 9,437 32 PracticeWorks* 2,250 23 Presstek* 4,417 20 Progress Software* 4,519 81 ProQuest* (A) 2,419 50 Proxim, Cl A* (A) 17,181 10 QRS* 1,964 10 QuadraMed* 3,918 5 Quantum* 18,699 68 Quest Software* 5,351 48 Quovadx* 3,217 6 Radiant Systems* 2,477 18 RadiSys* 2,448 16 Rainbow Technologies* 3,691 35 Rambus* (A) 12,040 159 Read-Rite* 1,247 1 Red Hat* 16,322 89 Register.com* 4,609 25 REMEC* 7,228 35 Renaissance Learning* (A) 1,469 26 Research Frontiers* 1,297 9 Retek* (A) 7,527 43 Richardson Electronics 732 6 Riverstone Networks* 17,481 24 Rogers* 2,279 68 Roper Industries 3,954 114 Roxio* 2,769 17 RSA Security* 6,503 46 Rudolph Technologies* (A) 1,326 19 S1* 10,211 52 Safeguard Scientifics* 17,228 24 Sanchez Computer Associates* 2,100 9 SanDisk* (A) 8,727 147 Sapient* 11,717 18 SBS Technologies* 1,328 10 ScanSource* 1,144 21 SCM Microsystems* 1,383 3 SeaChange International* 3,195 23 Secure Computing* 4,226 16 SeeBeyond Technologies* 7,531 15 Semitool* 2,503 10 SERENA Software* (A) 2,505 40 Silicon Graphics* (A) 27,319 42 Silicon Image* 8,357 33 Silicon Laboratories* (A) 3,786 99 Silicon Storage Technology* 11,159 26 Siliconix* 843 20 SimpleTech* 1,213 3 SIPEX* 3,675 14 SkillSoft* 4,686 12 Skyworks Solutions* (A) 19,468 121 Somera Communications* 4,890 5 SonicWALL* 7,365 27 SpectraLink* 2,409 18 SpeechWorks International* 3,392 8 SPSS* 1,713 19
The accompanying notes are an intergral part of the financial statements. 26
DESCRIPTION SHARES VALUE (000) - ------------------------------------------------------------------------------- SRA International, Cl A* 736 $ 17 SS&C Technologies* 1,170 14 Standard Microsystems* 2,084 32 StarTek* 1,498 34 StorageNetworks* 9,520 9 Suntron* 207 1 Supertex* 1,477 20 Sykes Enterprises* 3,758 15 Synaptics* 554 4 Synplicity* 1,560 5 Syntel* 902 17 Sypris Solutions 736 6 Systems & Computer Technologies* 4,464 34 Take-Two Interactive Software* (A) 5,446 122 TALX 1,772 23 Technitrol* 5,779 85 Tekelec* (A) 6,693 58 Teledyne Technologies* 4,371 55 Terayon Communications* 9,375 16 Therma-Wave* 3,723 2 THQ* (A) 5,671 74 Three Five Systems* 3,153 16 TIBCO Software* 11,562 49 Tier Technologies* 2,081 21 Tollgrade Communications* 1,838 26 Transaction Systems Architects, Cl A* 4,584 27 Transmeta* 16,194 16 Trikon Technologies* 1,374 5 Trimble Navigation* 3,633 69 TriQuint Semiconductor* 18,953 53 TriZetto Group* (A) 4,786 20 TTM Technologies* 2,346 8 Turnstone Systems* 5,103 14 Tyler Technologies* 4,645 16 Ulticom* 1,454 9 Ultratech Stepper* 3,256 39 United Online* 2,997 52 Universal Display* 2,752 23 Varian Semiconductor Equipment Associates* (A) 4,418 90 Vastera* 4,611 18 Veeco Instruments* (A) 3,643 56 Verint Systems* 699 12 Verity* 3,189 44 Vialta* 133 -- Viasat* 2,767 31 Viewpoint* 5,902 3 Vignette* 33,877 51 Virage Logic* 1,791 11 Vitalworks* 5,462 21 Vitesse Semiconductor* 28,955 62 Vitria Technology* 12,120 8 WatchGuard Technologies* 4,012 24 WebEx Communications* (A) 3,336 34 webMethods* 6,498 59 Websense* 3,035 45 Western Digital* (A) 27,705 251 White Electronic Designs* 2,757 19 Wind River Systems* 9,836 29 Witness Systems* 2,259 7 Woodhead Industries 1,609 19 Xicor* 2,956 $ 12 X-Rite 1,509 13 Zomax* 4,805 14 Zoran* (A) 3,889 50 Zygo* (A) 2,241 13 ----------- 14,178 ----------- MATERIALS - 4.1% A. Schulman 4,241 62 AEP Industries* 589 5 Airgas* 8,307 154 AMCOL International 2,862 16 Ameron International 512 31 Arch Chemicals 2,891 54 Arch Coal (A) 6,049 115 Bandag 1,502 48 Brush Engineered Metals* 2,208 11 Buckeye Technologies* 3,984 19 Calgon Carbon 5,084 25 Cambrex 2,907 70 Caraustar Industries* 3,801 26 Carpenter Technology 2,767 28 Centex Construction Products 922 33 Central Garden & Pet* 2,083 45 Century Aluminum 1,852 12 Chesapeake 2,021 34 Cleveland Cliffs* 854 16 Commercial Metals 3,480 49 Crompton 16,366 66 Crown Holdings* (A) 22,976 129 Cytec Industries* 5,712 159 Deltic Timber 1,426 34 Earthshell* 9,889 5 Ferro 4,676 100 Florida Rock 2,840 96 FMC* 4,312 68 Fuller H.B 3,590 83 G & K Services, Cl A 2,812 67 Georgia Gulf 3,959 80 Gibraltar Steel 1,272 24 Glatfelter 863 9 GrafTech International* 8,190 23 Graphic Packaging International* 3,261 18 Great Lakes Chemical 5,393 120 IMCO Recycling* 1,713 11 Interface, Cl A* 7,551 25 Intermet 3,537 13 Jarden* 1,655 43 Liquidmetal Technologies* 787 4 Longview Fibre* 7,369 49 Louisiana Pacific* 15,076 120 MacDermid 3,738 76 Material Sciences* 1,289 13 Millennium Chemicals 9,070 106 Minerals Technologies 2,950 112 Myers Industries 2,666 25 NL Industries 1,197 19 NN 1,221 11 Octel* 1,719 25 Olin 6,650 121
27
DESCRIPTION SHARES VALUE (000) - ------------------------------------------------------------------------------- Omnova Solutions* 5,711 $ 17 Oregon Steel Mills* 4,048 10 Penford 1,104 13 PolyOne 11,344 44 Pope & Talbot (A) 2,248 28 Potlatch 4,090 79 Quaker Chemicals 548 11 Quanex 2,360 75 Raytech* 5,990 35 Roanoke Electric Steel 1,192 10 Rock-Tenn, Cl A 1,619 21 Royal Gold 2,017 29 RTI International Metals* 3,043 30 Ryerson Tull 2,018 13 Seminis, Cl A* 2,338 7 Silgan Holdings* 1,685 37 Solutia 15,111 23 Southern Peru Copper 2,096 31 Spartech 2,124 41 Steel Dynamics* 4,599 54 Stephan 834 19 Stillwater Mining* 6,219 16 Symyx Technologies* 3,304 50 Terra Industries* 5,943 8 Texas Industries 3,029 58 U.S. Concrete* 3,546 15 USEC 9,942 55 Valhi 3,326 37 W R Grace & Company* 9,443 14 Watts Industries, Cl A 2,283 36 Wausau-Mosinee Paper 5,220 53 ----------- 3,676 ----------- TELECOMMUNICATION SERVICES - 1.5% Aether Systems* 4,715 15 AirGate PCS* 3,525 1 Alamosa Holdings* 10,629 4 Alaska Communications Systems Holdings* 859 2 Allegiance Telecom* (A) 17,663 5 American Tower, Cl A* 23,293 129 AT Road* 3,019 20 Boston Communications Group* 1,324 21 Broadwing* 27,612 110 Centennial Communications, Cl A* 1,124 2 Commonwealth Telephone Enterprises* (A) 1,568 61 Crown Castle International* (A) 29,497 162 CT Communications 2,265 22 Focal Communications Warrants* (B) 1,496 -- General Communication* 5,965 35 Golden Telecom* 2,023 30 Gray Television, Cl A 1,283 14 HickoryTech 2,027 18 Infonet Services, Cl B* 9,949 13 Intrado* 2,339 18 J2 Global Communications* (A) 882 25 Metro One Telecommunications* 2,671 13 Neon Communications* (B) 34,093 -- Nextel Partners, Cl A* 8,962 45 North Pittsburgh 2,126 29 Price Communications* 6,328 76 PTEK Holdings* 6,805 $ 25 Raindance Communications* 6,233 10 RCN* (A) 8,746 6 Redback Networks* (A) 21,753 13 RMH Teleservices* 1,857 12 Shenandoah Telecommunications 253 7 Sonus Networks* 26,072 59 Stratex Networks* 11,885 25 SureWest Communications 1,915 52 Sycamore Networks* 22,926 70 Talk America Holdings* 3,628 26 Tellium* 3,156 2 Time Warner Telecom, Cl A* 6,660 22 Touch America Holdings* 15,332 1 Triton PCS Holdings, Cl A* 2,801 6 U.S. Unwired* 5,441 2 UbiquiTel* 9,172 3 Western Wireless, Cl A* (A) 7,690 43 Wireless Facilities* 3,404 20 Young Broadcasting, Cl A* 2,378 29 ----------- 1,303 ----------- UTILITIES - 3.3% AGL Resources 8,003 189 American States Water 2,120 51 Atmos Energy 5,166 110 Avista 6,444 68 Black Hills 3,409 94 California Water Service 1,695 44 Cascade Natural Gas 1,485 29 Central Vermont Public Service 943 16 CH Energy Group 1,991 83 CLECO (A) 5,052 63 Connecticut Water Services 1,104 29 DQE 9,428 115 El Paso Electric* 6,752 73 Empire District Electric 2,092 37 Energen 4,954 159 Laclede Group 1,898 44 Middlesex Water 461 10 New Jersey Resources 3,747 122 Northwestern* 3,588 8 Northwestern Natural Gas 3,360 84 NUI 2,275 33 Oneok 7,723 142 Otter Tail 3,075 80 Piedmont Natural Gas 3,906 139 PNM Resources 4,651 105 Semco Energy 2,792 10 Sierra Pacific Resources* (A) 14,727 47 SJW 83 6 South Jersey Industries 1,635 52 Southern Union* 5,849 71 Southwest Gas 4,739 96 Southwest Water 1,442 18 Southwestern Energy* 4,002 52 UGI 3,950 181 UIL Holdings 1,339 46 Unisource Energy Holding 4,128 71 WGL Holdings 6,311 167
The accompanying notes are an integral part of the financial statements. 28
DESCRIPTION SHARES VALUE (000) - ------------------------------------------------------------------------------- WPS Resources 4,019 $ 161 ----------- 2,905 ----------- TOTAL COMMON STOCKS (Cost $103,936) 80,735 ----------- U.S. TREASURY OBLIGATION - 0.7% U.S. Treasury Bill 1.290%, 06/05/03 (C) $ 700 699 ----------- TOTAL U.S. TREASURY OBLIGATION (Cost $699) 699 ----------- RELATED PARTY MONEY MARKET FUND - 8.5% First American Prime Obligations Fund, Cl Y (D) 7,511,225 7,511 ----------- TOTAL RELATED PARTY MONEY MARKET FUND (Cost $7,511) 7,511 ----------- INVESTMENTS PURCHASED WITH CASH PROCEEDS FROM SECURITIES LENDING - 11.6% COMMERCIAL PAPER - 1.7% CS First Boston 1.638%, 12/01/03 181 181 Danske Bank 1.508%, 12/22/03 181 181 Goldman Sachs 1.518%, 08/28/03 235 235 Morgan Stanley 1.518%, 06/17/03 90 90 1.518%, 07/08/03 65 65 1.518%, 09/22/03 90 90 Orchard Park 1.475%, 01/06/04 181 181 UBS Financial 1.390%, 04/01/03 451 451 ----------- TOTAL COMMERCIAL PAPER 1,474 ----------- CORPORATE OBLIGATIONS - 1.3% CS First Boston 1.760%, 04/11/03 181 181 Deutsche Bank 1.470%, 04/11/03 90 90 1.580%, 12/11/03 72 72 General Electric Capital Corporation 1.355%, 07/09/07 90 90 Merrill Lynch 1.538%, 05/05/03 153 153 Monet Trust 1.360%, 12/28/03 181 181 SMM Trust 2002-M 1.450%, 09/23/03 181 181 URI Trust 1.460%, 09/18/03 181 181 ----------- TOTAL CORPORATE OBLIGATIONS 1,129 ----------- MONEY MARKET FUNDS - 1.1% AIM Liquid Assets Portfolio 306,996 307 Dreyfus Cash Manage Plus Fund 18,059 18 Evergreen Institutional Money Market Fund 63,205 63 HSBC Investor Money Market Fund - Cl I 54,176 54 Merrill Lynch Premier Institutional Fund 349,768 350 Merrimac Cash Series Fund 54,176 54 One Group Institutional Prime Money Market Fund 108,352 108 Reserve Primary Fund 9,029 9 ----------- TOTAL MONEY MARKET FUNDS 963 ----------- OTHER SHORT-TERM INVESTMENTS - 1.0% Allied Irish Bank 1.340%, 05/09/03 $ 90 $ 90 1.330%, 06/02/03 181 181 Commonwealth Life 1.678%, 04/01/03 91 91 General Electric Capital Assurance 1.370%, 12/19/03 36 36 Premium Asset Trust 02-7 1.060%, 08/23/03 115 115 Security Life Denver 1.381%, 01/13/04 235 235 1.490%, 03/15/04 181 181 ----------- TOTAL OTHER SHORT-TERM INVESTMENTS 929 ----------- REPURCHASE AGREEMENTS - 6.5% Bear Stearns 1.420%, 04/10/03 361 361 CS First Boston 1.370%, 04/01/03 361 361 1.380%, 04/01/03 56 56 1.380%, 04/01/03 451 451 Goldman Sachs 1.520%, 04/01/03 271 271 1.420%, 04/07/03 181 181 1.360%, 06/10/03 90 90 1.400%, 06/11/03 90 90 Greenwich Capital Markets 1.430%, 04/01/03 542 542 Lehman Brothers 1.560%, 04/01/03 181 181 1.640%, 04/01/03 135 135 1.640%, 04/01/03 586 586 Merrill Lynch 1.360%, 04/01/03 542 542 1.500%, 04/01/03 271 271 1.560%, 04/01/03 226 226 1.560%, 04/01/03 361 361 Morgan Stanley 1.470%, 04/01/03 271 271 1.510%, 04/01/03 562 562 Salomon Smith Barney 1.540%, 04/01/03 271 271 ----------- TOTAL REPURCHASE AGREEMENTS 5,809 ----------- TOTAL INVESTMENTS PURCHASED WITH CASH PROCEEDS FROM SECURITIES LENDING (Cost $10,304) 10,304 ----------- TOTAL INVESTMENTS - 111.7% (Cost $122,450) 99,249 ----------- OTHER ASSETS AND LIABILITIES, NET - (11.7)% (10,425) ----------- TOTAL NET ASSETS - 100.0% $ 88,824 -----------
29 *Non-income producing security (A) This security or a portion of this security is out on loan at March 31, 2003. Total loaned securities had a value of $9,398,310 at March 31, 2003. See note 2 in Notes to Financial Statements. (B) Security is fair valued. As of March 31, 2003, the value of these investment is $0, or 0.0% of total net assets. See note 2 in Notes to Financial Statements. (C) Security has been deposited as initial margin on open futures contracts. Yield shown is effective yield at date of purchase. See note 7 in Notes to Financial Statements. (D) This money market fund is advised by U.S. Bancorp Asset Management, Inc., which also serves as advisor for this Fund. See note 3 in Notes to Financial Statements. Cl - Class REIT - Real Estate Investment Trust The accompanying notes are an integral part of the financial statements. 30 (This page has been left blank intentionally.) STATEMENTS OF ASSETS AND LIABILITIES March 31, 2003 (unaudited), in thousands, except per share data
EQUITY MID CAP SMALL CAP INDEX FUND INDEX FUND INDEX FUND - ---------------------------------------------------------------------------------------------------------------------------- ASSETS: Investments in securities, at value* + $2,486,853 $246,110 $ 99,249 Cash 60 -- 1 Dividends and interest receivable 2,269 137 108 Receivable for investment securities sold 2,750 13,329 -- Capital shares sold 1,678 109 61 Prepaid expenses and other assets 97 32 15 - ---------------------------------------------------------------------------------------------------------------------------- TOTAL ASSETS 2,493,707 259,717 99,434 - ---------------------------------------------------------------------------------------------------------------------------- LIABILITIES: Payable for investment securities purchased 1,224 1,161 -- Payable upon return of securities loaned 843,429 67,526 10,304 Capital shares redeemed 2,726 584 176 Variation margin payable 707 9 72 Payable for advisory, co-administration, and custodian fees 420 72 35 Distribution and shareholder servicing fees 117 4 2 Accrued expenses and other liabilities 1 20 21 - ---------------------------------------------------------------------------------------------------------------------------- TOTAL LIABILITIES 848,624 69,376 10,610 - ---------------------------------------------------------------------------------------------------------------------------- NET ASSETS $1,645,083 $190,341 $ 88,824 - ---------------------------------------------------------------------------------------------------------------------------- COMPOSITION OF NET ASSETS: Portfolio capital $1,711,324 $236,716 $114,674 Undistributed net investment income 250 24 61 Accumulated net realized gain (loss) (50,124) 1,101 (2,700) Unrealized depreciation of investments (15,724) (47,494) (23,201) Unrealized depreciation of futures contracts (643) (6) (10) - ---------------------------------------------------------------------------------------------------------------------------- NET ASSETS $1,645,083 $190,341 $ 88,824 - ---------------------------------------------------------------------------------------------------------------------------- *Investments in securities, at cost $2,502,577 $293,604 $122,450 + Including securities loaned $ 798,806 $ 67,526 $ 9,398 CLASS A: Net assets $ 137,573 $ 3,775 $ 2,206 Shares issued and outstanding ($0.0001 par value-- 2 billion authorized) 8,638 453 257 Net asset value and redemption price per share $ 15.93 $ 8.33 $ 8.59 Maximum offering price per share (1) $ 16.86 $ 8.81 $ 9.09 CLASS B: Net assets $ 63,998 $ 1,610 $ 512 Shares issued and outstanding ($0.0001 par value-- 2 billion authorized) 4,065 195 60 Net asset value, offering price, and redemption price per share (2) $ 15.74 $ 8.25 $ 8.50 CLASS C: Net assets $ 27,520 $ 1,107 $ 693 Shares issued and outstanding ($0.0001 par value-- 2 billion authorized) 1,738 134 81 Net asset value and redemption price per share (2) $ 15.83 $ 8.28 $ 8.57 Maximum offering price per share (3) $ 15.99 $ 8.36 $ 8.66 CLASS S: Net assets $ 42,078 $ 3,241 $ 1,837 Shares issued and outstanding ($0.0001 par value-- 2 billion authorized) 2,643 389 215 Net asset value, offering price, and redemption price per share $ 15.92 $ 8.33 $ 8.54 CLASS Y: Net assets $1,373,914 $180,608 $ 83,576 Shares issued and outstanding ($0.0001 par value-- 2 billion authorized) 86,321 21,673 9,701 Net asset value, offering price, and redemption price per share $ 15.92 $ 8.33 $ 8.61
(1)The offering price is calculated by dividing the net asset value by 1 minus the maximum sales charge of 5.50%. (2)Class B and C have a contigent deferred sales charge. For a description of this sales charge, see notes 1 and 3 in Notes to Financial Statements. (3)The offering price is calculated by dividing the net asset value by 1 minus the maximum sales charge of 1.00%. The accompanying notes are an integral part of the financial statements. 32 STATEMENTS OF OPERATIONS For the six months ended March 31, 2003 (unaudited), in thousands
EQUITY MID CAP SMALL CAP INDEX FUND INDEX FUND INDEX FUND - ---------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Interest $ 371 $ 57 $ 58 Dividends 14,835 1,263 643 Securities lending 261 28 15 Other 37 - --------------------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT INCOME 15,504 1,348 716 - --------------------------------------------------------------------------------------------------------------------------- EXPENSES: Investment advisory fees 2,033 269 193 Co-administration fees and expenses (including per account transfer agency fees) 2,259 316 177 Custodian fees 81 11 5 Directors' fees 11 2 1 Registration fees 2 16 17 Professional fees 20 3 1 Other 44 23 22 Printing 29 4 2 Distribution and shareholder servicing fees - Class A 181 5 3 Distribution and shareholder servicing fees - Class B 344 8 2 Distribution and shareholder servicing fees - Class C 140 5 3 Shareholder servicing fees - Class S 58 4 10 - --------------------------------------------------------------------------------------------------------------------------- TOTAL EXPENSES 5,202 666 436 - --------------------------------------------------------------------------------------------------------------------------- Less: Waiver of expenses (1,470) (106) (90) - --------------------------------------------------------------------------------------------------------------------------- TOTAL NET EXPENSES 3,732 560 346 - --------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME - NET 11,772 788 370 - ---------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS AND FUTURES CONTRACTS - NET: Net realized gain (loss) on investments (2,719) 2,793 (955) Net realized loss on in-kind distributions -- -- (654) Net realized loss on futures contracts (1,689) (794) (453) Net change in unrealized appreciation or depreciation of investments 49,406 (1,764) 2,351 Net change in unrealized appreciation or depreciation of future contracts 1,653 475 314 - ---------------------------------------------------------------------------------------------------------------------------- NET GAIN ON INVESTMENTS 46,651 710 603 - ---------------------------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $58,423 $1,498 $ 973 - ----------------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 33 STATEMENTS OF CHANGES IN NET ASSETS in thousands
EQUITY MID CAP INDEX FUND INDEX FUND - -------------------------------------------------------------------------------------------------------------------------- 10/1/02 10/1/01 10/1/02 10/1/01 TO TO TO TO 3/31/03 9/30/02 3/31/03 9/30/02 - --------------------------------------------------------------------------------------------------------------------------- (unaudited) (unaudited) OPERATIONS: Investment income - net $ 11,772 $ 20,971 $ 788 $ 1,425 Net realized gain (loss) on investments (2,719) (17,129) 2,793 5,952 Net realized gain (loss) on in-kind distributions 88,012 -- 1,965 Net realized gain (loss) on futures contracts (1,689) 3,192 (794) (247) Net change in unrealized appreciation or depreciation of investments 49,406 (480,909) (1,764) (25,621) Net change in unrealized appreciation or depreciation of futures contracts 1,653 (3,348) 475 (473) - --------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 58,423 (389,211) 1,498 (16,999) - --------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Investment income - net: Class A (931) (1,724) (10) (15) Class B (201) (183) -- -- Class C (90) (56) -- -- Class S (305) (434) (9) (16) Class Y (10,422) (18,598) (762) (1,389) Net realized gain on investments: Class A -- -- (97) (123) Class B -- -- (40) (49) Class C -- -- (26) (1) Class S -- -- (95) (150) Class Y -- -- (5,505) (7,356) - --------------------------------------------------------------------------------------------------------------------------- Total distributions (11,949) (20,995) (6,544) (9,099) =========================================================================================================================== CAPITAL SHARE TRANSACTIONS (1): Class A: Proceeds from sales 12,145 35,313 1,062 2,725 Reinvestment of distributions 887 1,650 106 136 Payments for redemptions (20,261) (47,666) (887) (1,767) - --------------------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets from Class A transactions (7,229) (10,703) 281 1,094 - --------------------------------------------------------------------------------------------------------------------------- Class B: Proceeds from sales 2,408 9,748 224 712 Reinvestment of distributions 196 178 40 48 Payments for redemptions (8,202) (19,649) (87) (328) - --------------------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets from Class B transactions (5,598) (9,723) 177 432 - --------------------------------------------------------------------------------------------------------------------------- Class C: Proceeds from sales 10,512 6,194 356 1,044 Reinvestment of distributions 88 54 25 1 Payments for redemptions (5,224) (7,962) (36) (52) - --------------------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets from Class C transactions 5,376 (1,714) 345 993 - --------------------------------------------------------------------------------------------------------------------------- Class S: Proceeds from sales 18,245 33,391 610 2,554 Reinvestment of distributions 293 419 89 123 Payments for redemptions (21,206) (16,746) (762) (3,369) - --------------------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets from Class S transactions (2,668) 17,064 (63) (692) - --------------------------------------------------------------------------------------------------------------------------- Class Y: Proceeds from sales 429,993 608,090 53,864 104,570 Reinvestment of distributions 7,768 14,444 4,701 6,651 Payments for redemptions (235,129) (720,539) (71,707) (64,557) - --------------------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets from Class Y transactions 202,632 (98,005) (13,142) 46,664 - --------------------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets from capital share transactions 192,513 (103,081) (12,402) 48,491 - --------------------------------------------------------------------------------------------------------------------------- Total increase (decrease) in net assets 238,987 (513,287) (17,448) 22,393 NET ASSETS AT BEGINNING OF PERIOD 1,406,096 1,919,383 207,789 185,396 =========================================================================================================================== NET ASSETS AT END OF PERIOD $1,645,083 $1,406,096 $190,341 $207,789 =========================================================================================================================== UNDISTRIBUTED NET INVESTMENT INCOME AT END OF PERIOD $ 250 $ 427 $ 24 $ 17 ===========================================================================================================================
(1)See note 5 in Notes to Financial Statements for additional information. The accompanying notes are an integral part of the financial statements. 34
SMALL CAP INDEX FUND - ------------------------------------------------------------------------------------------------ 10/1/02 10/1/01 TO TO 3/31/03 9/30/02 - ------------------------------------------------------------------------------------------------ (unaudited) OPERATIONS: Investment income - net $ 370 $ 769 Net realized gain (loss) on investments (955) 2,012 Net realized gain (loss) on in-kind distributions (654) 503 Net realized gain (loss) on futures contracts (453) (524) Net change in unrealized appreciation or depreciation of investments 2,351 (26,213) Net change in unrealized appreciation or depreciation of futures contract 314 (324) - ------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations 973 (23,777) - ------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Investment income - net: Class A (6) (8) Class B -- -- Class C -- -- Class S (29) (68) Class Y (327) (641) Net realized gain on investments: -- -- Class A -- -- Class B -- -- Class C -- -- Class S -- -- Class Y -- -- - ------------------------------------------------------------------------------------------------ Total distributions (362) (717) ================================================================================================ CAPITAL SHARE TRANSACTIONS (1): Class A: Proceeds from sales 711 4,956 Reinvestment of distributions 6 8 Payments for redemptions (417) (2,719) - ------------------------------------------------------------------------------------------------ Increase (decrease) in net assets from Class A transactions 300 2,245 - ------------------------------------------------------------------------------------------------ Class B: Proceeds from sales 155 474 Reinvestment of distributions -- -- Payments for redemptions (58) (34) - ------------------------------------------------------------------------------------------------ Increase (decrease) in net assets from Class B transactions 97 440 - ------------------------------------------------------------------------------------------------ Class C: Proceeds from sales 287 592 Reinvestment of distributions -- -- Payments for redemptions (34) (16) - ------------------------------------------------------------------------------------------------ Increase (decrease) in net assets from Class C transactions 253 576 - ------------------------------------------------------------------------------------------------ Class S: Proceeds from sales 1,030 4,483 Reinvestment of distributions 29 67 Payments for redemptions (13,433) (2,761) - ------------------------------------------------------------------------------------------------ Increase (decrease) in net assets from Class S transactions (12,374) 1,789 - ------------------------------------------------------------------------------------------------ Class Y: Proceeds from sales 26,482 116,156 Reinvestment of distributions 189 402 Payments for redemptions (37,838) (54,512) - ------------------------------------------------------------------------------------------------ Increase (decrease) in net assets from Class Y transactions (11,167) 62,046 - ------------------------------------------------------------------------------------------------ Increase (decrease) in net assets from capital share transactions (22,891) 67,096 - ------------------------------------------------------------------------------------------------ Total increase (decrease) in net assets (22,280) 42,602 NET ASSETS AT BEGINNING OF PERIOD 111,104 68,502 ================================================================================================ NET ASSETS AT END OF PERIOD $ 88,824 $111,104 ================================================================================================ UNDISTRIBUTED NET INVESTMENT INCOME AT END OF PERIOD $ 61 $ 53 ================================================================================================
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 (LOSS) INVESTMENTS INCOME CAPITAL GAINS - ------------------------------------------------------------------------------------------------------------------------- EQUITY INDEX FUND Class A 2003 (1) (2) $15.31 $0.11 $0.62 $(0.11) $ -- 2002 (1) 19.50 0.18 (4.19) (0.18) -- 2001 (1) 27.75 0.18 (7.43) (0.17) (0.83) 2000 25.52 0.17 2.91 (0.17) (0.68) 1999 20.61 0.21 5.36 (0.22) (0.44) 1998 20.76 0.24 1.39 (0.24) (1.54) Class B 2003 (1) (2) $15.13 $0.04 $0.62 $(0.05) $ -- 2002 (1) 19.29 0.03 (4.15) (0.04) -- 2001 (1) 27.49 -- (7.35) (0.02) (0.83) 2000 25.34 -- 2.84 (0.01) (0.68) 1999 20.49 0.05 5.30 (0.06) (0.44) 1998 20.67 0.09 1.36 (0.09) (1.54) Class C 2003 (1) (2) $15.23 $0.05 $0.60 $(0.05) $ -- 2002 (1) 19.41 0.03 (4.17) (0.04) -- 2001 (1) 27.66 -- (7.40) (0.02) (0.83) 2000 25.48 -- 2.88 (0.02) (0.68) 1999 (3) 25.35 0.06 0.13 (0.06) -- Class S 2003 (1) (2) $15.30 $0.11 $0.62 $(0.11) $ -- 2002 (1) 19.50 0.18 (4.20) (0.18) -- 2001 (1) (4) 18.80 -- 0.70 -- -- Class Y 2003 (1) (2) $15.30 $0.13 $0.62 $(0.13) $ -- 2002 (1) 19.49 0.23 (4.19) (0.23) -- 2001 (1) 27.74 0.23 (7.42) (0.23) (0.83) 2000 25.51 0.23 2.91 (0.23) (0.68) 1999 20.60 0.28 5.35 (0.28) (0.44) 1998 20.74 0.29 1.40 (0.29) (1.54) - --------------------------------------------------------------------------------------------------------------------------- MID CAP INDEX FUND (5) Class A 2003 (2) $ 8.51 $0.02 $0.05 $(0.02) $(0.23) 2002 (1) 9.38 0.04 (0.49) (0.04) (0.38) 2001 (1) (6) 12.56 0.05 (2.11) (0.05) (1.07) 2000 (7) 10.00 0.04 2.56 (0.04) -- Class B 2003 (2) $ 8.44 $(0.01) $0.05 $ -- $(0.23) 2002 (1) 9.33 (0.03) (0.48) -- (0.38) 2001 (1) (6) 12.52 -- (2.12) -- (1.07) 2000 (7) 10.00 (0.01) 2.56 (0.03) -- Class C 2003 (2) $ 8.47 $(0.01) $0.05 $ -- $(0.23) 2002 (1) 9.38 (0.02) (0.51) -- (0.38) 2001 (1) (4) 9.07 -- 0.31 -- -- Class S 2003 (2) $ 8.50 $0.02 $0.06 $(0.02) $(0.23) 2002 (1) 9.38 0.04 (0.50) (0.04) (0.38) 2001 (1) (8) 11.07 0.04 (1.67) (0.06) -- Class Y 2003 (2) $ 8.51 $0.03 $0.05 $(0.03) $(0.23) 2002 (1) 9.38 0.06 (0.49) (0.06) (0.38) 2001 (1) (6) 12.55 0.08 (2.11) (0.07) (1.07) 2000 (7) 10.00 0.08 2.55 (0.08) -- - ---------------------------------------------------------------------------------------------------------------------------
(1) Per share data calculated using average shares outstanding method. (2) For the six months ended March 31, 2003 (unaudited). All ratios for the period have been annualized, except total return and portfolio turnover. (3) Class of shares has been offered since February 1, 1999. All ratios for the period have been annualized, except total return and portfolio turnover. (4) Class of shares has been offered since September 24, 2001. All ratios for the period have been annualized, except total return and portfolio turnover. (5) The financial highlights for the Mid Cap Index Fund as set forth herein include the historical financial highlights of the Firstar Mid Cap Index Fund. The assets of the Firstar Fund were acquired by the First American Mid Cap Index Fund on September 24, 2001. In connection with such acquisition, (i) Class A shares of the Firstar Mid Cap Index Fund were exchanged for Class A shares of the First American Mid Cap Index Fund, (ii) Firstar Class B shares were exchanged for Class B shares of the First American Fund, (iii) Firstar Class Y shares were exchanged for Class S shares of the First American Fund, and (iv) Firstar Institutional Class shares were exchanged for Class Y shares of the First American Fund. The accompanying notes are an integral part of the financial statements. 36
RATIO OF RATIO OF NET RATIO OF NET EXPENSES TO INVESTMENT NET ASSET RATIO INVESTMENT AVERAGE INCOME (LOSS) VALUE NET ASSET EXPENSES TO INCOME (LOSS) NET ASSETS TO AVERAGE NET PORTFOLIO END OF TOTAL END OF AVERAGE TO AVERAGE (EXCLUDING ASSETS (EXCLUDING TURNOVER PERIOD RETURN (9) PERIOD (OOO) NET ASSETS NET ASSETS WAIVERS) WAIVERS) RATE - ------------------------------------------------------------------------------------------------------------------------------------ EQUITY INDEX FUND Class A 2003 (1) (2) $15.93 4.78% $ 137,573 0.62% 1.28% 0.80% 1.10% 1% 2002 (1) 15.31 (20.75) 139,007 0.62 0.91 0.80 0.73 8 2001 (1) 19.50 (26.95) 188,410 0.60 0.74 1.14 0.20 6 2000 27.75 12.11 134,180 0.60 0.62 1.14 0.08 16 1999 25.52 27.30 110,439 0.60 0.85 1.14 0.31 7 1998 20.61 8.50 46,010 0.60 1.11 1.13 0.58 14 Class B 2003 (1) (2) $15.74 4.34% $ 63,998 1.37% 0.53% 1.55% 0.35% 1% 2002 (1) 15.13 (21.40) 66,835 1.37 0.16 1.55 (0.02) 8 2001 (1) 19.29 (27.49) 95,586 1.35 (0.01) 1.89 (0.55) 6 2000 27.49 11.25 121,092 1.35 (0.13) 1.89 (0.67) 16 1999 25.34 26.38 99,054 1.35 0.10 1.89 (0.44) 7 1998 20.49 7.66 44,122 1.35 0.37 1.88 (0.16) 14 Class C 2003 (1) (2) $15.83 4.25% $ 27,520 1.37% 0.53% 1.55% 0.35% 1% 2002 (1) 15.23 (21.38) 21,637 1.37 0.16 1.55 (0.02) 8 2001 (1) 19.41 (27.51) 29,560 1.35 (0.01) 1.89 (0.55) 6 2000 27.66 11.32 34,811 1.35 (0.13) 1.89 (0.67) 16 1999 (3) 25.48 0.76 16,861 1.35 0.07 1.89 (0.47) 7 Class S 2003 (1) (2) $15.92 4.72% $ 42,078 0.62% 1.28% 0.80% 1.10% 1% 2002 (1) 15.30 (20.79) 42,964 0.62 0.93 0.80 0.75 8 2001 (1) (4) 19.50 3.72 38,220 0.72 0.89 1.20 0.41 6 Class Y 2003 (1) (2) $15.92 4.84% $1,373,914 0.37% 1.54% 0.55% 1.36% 1% 2002 (1) 15.30 (20.56) 1,135,653 0.37 1.16 0.55 0.98 8 2001 (1) 19.49 (26.78) 1,567,607 0.35 0.99 0.89 0.45 6 2000 27.74 12.38 1,400,086 0.35 0.87 0.89 0.33 16 1999 25.51 27.61 1,206,072 0.35 1.11 0.89 0.57 7 1998 20.60 8.82 996,528 0.35 1.36 0.88 0.83 14 - ------------------------------------------------------------------------------------------------------------------------------------ MID CAP INDEX FUND (5) Class A 2003 (2) $ 8.33 0.65% $ 3,775 0.75% 0.50% 0.85% 0.40% 10% 2002 (1) 8.51 (5.45) 3,581 0.75 0.37 0.83 0.29 19 2001 (1) (6) 9.38 (17.60) 2,972 0.75 0.51 0.80 0.46 43 2000 (7) 12.56 26.48 1,918 0.75 0.75 0.90 0.60 45 Class B 2003 (2) $ 8.25 0.31% $ 1,610 1.50% (0.25)% 1.60% (0.35)% 10% 2002 (1) 8.44 (6.07) 1,475 1.50 (0.37) 1.58 (0.45) 19 2001 (1) (6) 9.33 (18.15) 1,265 1.50 (0.24) 1.54 (0.28) 43 2000 (7) 12.52 25.65 905 1.50 0.00 1.65 (0.15) 45 Class C 2003 (2) $ 8.28 0.31% $ 1,107 1.50% (0.25)% 1.60% (0.35)% 10% 2002 (1) 8.47 (6.22) 795 1.50 (0.37) 1.58 (0.45) 19 2001 (1) (4) 9.38 3.42 -- 0.00 0.00 0.00 0.00 43 Class S 2003 (2) $ 8.33 0.77% $ 3,241 0.75% 0.50% 0.85% 0.40% 10% 2002 (1) 8.50 (5.56) 3,393 0.75 0.37 0.83 0.29 19 2001 (1) (8) 9.38 (14.77) 4,301 0.75 0.47 0.80 0.42 43 Class Y 2003 (2) $ 8.33 0.76% $ 180,608 0.50% 0.75% 0.60% 0.65% 10% 2002 (1) 8.51 (5.23) 198,545 0.50 0.63 0.58 0.55 19 2001 (1) (6) 9.38 (17.34) 176,857 0.50 0.75 0.53 0.72 43 2000 (7) 12.55 26.62 125,881 0.50 1.00 0.65 0.85 45 - ------------------------------------------------------------------------------------------------------------------------------------
(6) Effective in 2001, the Fund's fiscal year end was changed from October 31 to September 30. (7) Commenced operations on November 4, 1999. All ratios for the period have been annualized, except total return and portfolio turnover. (8) Class of shares has been offered since November 27, 2000. All ratios for the period have been annualized, except total return and portfolio turnover. (9) Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived. 37
REALIZED AND NET ASSET UNREALIZED DIVIDENDS VALUE NET GAINS OR FROM NET DISTRIBUTIONS BEGINNING INVESTMENT (LOSSES) ON INVESTMENT FROM OF PERIOD INCOME (LOSS) INVESTMENTS INCOME CAPITAL GAINS - --------------------------------------------------------------------------------------------------------------------------- SMALL CAP INDEX FUND (1) Class A 2003 (2) $ 8.55 $ 0.03 $0.04 $(0.03) $ -- 2002 (3) 9.68 0.05 (1.13) (0.05) -- 2001 (3) (4) 12.23 (0.01) (1.49) -- (1.05) 2000 (5) 10.18 (0.01) 2.20 -- (0.14) 1999 (6) 10.00 -- 0.19 (0.01) -- Class B 2003 (2) $ 8.47 $ -- $0.04 $(0.01) $ -- 2002 9.63 (0.03) (1.13) -- -- 2001 (7) 10.97 (0.01) (1.33) -- -- Class C 2003 (2) $ 8.54 $(0.01) $0.05 $(0.01) $ -- 2002 (3) 9.68 (0.03) (1.11) -- -- 2001 (3) (8) 9.49 -- 0.19 -- -- Class S 2003 (2) $ 8.52 $ 0.01 $0.04 $(0.03) $ -- 2002 (3) 9.64 0.05 (1.12) (0.05) -- 2001 (3) (4) 12.19 (0.01) (1.49) -- (1.05) 2000 (5) 10.17 (0.01) 2.18 (0.01) (0.14) 1999 (6) 10.00 -- 0.17 -- -- Class Y 2003 (2) $ 8.57 $ 0.03 $0.04 $(0.03) $ -- 2002 (3) 9.70 0.07 (1.13) (0.07) -- 2001 (3) (4) 12.24 0.02 (1.50) (0.01) (1.05) 2000 (5) 10.19 0.02 2.19 (0.02) (0.14) 1999 (6) 10.00 0.01 0.19 (0.01) -- - ---------------------------------------------------------------------------------------------------------------------------
(1) The financial highlights for the Small Cap Index Fund as set forth herein include the historical financial highlights of the Firstar Small Cap Index Fund. The assets of the Firstar Fund were acquired by the First American Small Cap Index Fund on September 24, 2001. In connection with such acquisition, (i) Class A shares of the Firstar Small Cap Index Fund were exchanged for Class A shares of the First American Fund, (ii) Firstar Class B shares were exchanged for Class B shares of the First American Fund, (iii) Firstar Class Y shares were exchanged for Class S shares of the First American Fund, and (iv) Firstar Institutional Class shares were exchanged for Class Y shares of the First American Fund. (2) For the six months ended March 31, 2003 (unaudited). All ratios for the period have been annualized, except total return and portfolio turnover. (3) Per share data calculated using average shares outstanding method. (4) Effective in 2001, the Fund's fiscal year end was changed from October 31 to September 30. (5) Effective in 2000, the Fund's fiscal year end was changed from November 30 to October 31. (6) Commenced operations on December 30, 1998. All ratios for the period have been annualized, except total return and portfolio turnover. (7) Class of shares has been offered since December 11, 2000. All ratios for the period have been annualized, except total return and portfolio turnover. (8) Class of shares has been offered since September 24, 2001. All ratios for the period have been annualized, except total return and portfolio turnover. (9) Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived. The accompanying notes are an integral part of the financial statements. 38
RATIO OF RATIO OF NET RATIO OF NET EXPENSES TO INVESTMENT NET ASSET RATIO OF INVESTMENT AVERAGE INCOME (LOSS) VALUE NET ASSETS EXPENSES TO INCOME (LOSS) NET ASSETS TO AVERAGE NET PORTFOLIO END OF TOTAL END OF AVERAGE TO AVERAGE (EXCLUDING ASSETS (EXCLUDING TURNOVER PERIOD RETURN (9) PERIOD (OOO) NET ASSETS NET ASSETS WAIVERS) WAIVERS) RATE - ------------------------------------------------------------------------------------------------------------------------------------ SMALL CAP INDEX FUND (1) Class A 2003 (2) $ 8.59 0.74% $ 2,206 0.93% 0.57% 1.12% 0.38% 4% 2002 (3) 8.55 (11.28) 1,908 0.93 0.46 1.09 0.30 49 2001 (3) (4) 9.68 (12.76) 341 0.91 (0.07) 0.94 (0.10) 102 2000 (5) 12.23 21.81 177 0.99 (0.11) 1.09 (0.21) 32 1999 (6) 10.18 1.86 134 1.00 (0.15) 1.14 (0.29) 35 Class B 2003 (2) $ 8.50 0.43% $ 512 1.68% (0.18)% 1.87% (0.37)% 4% 2002 8.47 (12.03) 424 1.68 (0.29) 1.84 (0.45) 49 2001 (7) 9.63 (12.11) 107 1.65 (0.84) 1.69 (0.88) 102 Class C 2003 (2) $ 8.57 0.43% $ 693 1.68% (0.17)% 1.87% (0.36)% 4% 2002 (3) 8.54 (11.72) 447 1.68 (0.26) 1.84 (0.42) 49 2001 (3) (8) 9.68 2.11 -- 0.00 0.00 0.00 0.00 102 Class S 2003 (2) $ 8.54 0.51% $ 1,837 0.93% 0.59% 1.12% 0.40% 4% 2002 (3) 8.52 (11.26) 13,576 0.93 0.42 1.09 0.26 49 2001 (3) (4) 9.64 (12.82) 13,886 0.88 (0.05) 0.91 (0.08) 102 2000 (5) 12.19 21.54 18,057 0.99 (0.11) 1.09 (0.21) 32 1999 (6) 10.17 1.74 14,955 0.92 (0.06) 1.12 (0.26) 35 Class Y 2003 (2) $ 8.61 0.85% $83,576 0.68% 0.80% 0.87% 0.61% 4% 2002 (3) 8.57 (11.09) 94,749 0.68 0.68 0.84 0.52 49 2001 (3) (4) 9.70 (12.56) 54,169 0.66 0.19 0.68 0.17 102 2000 (5) 12.24 21.93 60,771 0.69 0.19 1.09 (0.21) 32 1999 (6) 10.19 2.01 45,331 0.68 0.18 1.13 (0.27) 35 - ----------------------------------------------------------------------------------------------------------------------------------
39 NOTES TO FINANCIAL STATEMENTS March 31, 2003 (unaudited) 1 > ORGANIZATION The First American Equity Index Fund, Mid Cap Index Fund, and Small Cap Index Fund (each a "Fund" and collectively, the "Funds") are mutual funds offered by First American Investment Funds, Inc. ("FAIF"), which is a member of the First American Family of Funds. FAIF currently offers 37 funds, including the Funds. 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 Funds' board of directors to create additional funds in the future. The Funds offer Class A, Class B, Class C, Class S, and Class Y shares. Class A shares are sold with a front-end sales charge. 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, are subject to a contingent deferred sales charge for 18 months, and will not convert to Class A shares. Class S shares have no sales charge and are offered through banks and other financial institutions. Class Y shares have no sales charge and are offered only to qualifying institutional investors. The Funds' prospectuses provide descriptions of each Fund's investment objectives, policies, and strategies. All classes of shares 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. 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 independent pricing services that have been approved by the Funds' 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 60 days to maturity are valued by an independent pricing service. The pricing service may employ methodologies that utilize actual market transactions, broker-dealer supplied valuations, or other formula-driven valuation techniques. These techniques generally consider such factors as yields or prices of bonds of comparable quality, type of issue, coupon, maturity, ratings, and general market conditions. Securities for which prices are not available from an independent pricing service but where an active market exists are valued using market quotations obtained from one or more dealers that make markets in the securities or from a widely used quotation system. When market quotations are not readily available, securities are valued at fair value as determined in good faith by procedures established and approved by the Funds' board of directors. As of March 31, 2003, the Small Cap Index Fund had fair valued securities with a total value of $0. Debt obligations with 60 days or less remaining until maturity may be valued at their amortized cost. Foreign securities are valued at the closing prices on the principal exchange 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. DISTRIBUTIONS TO SHAREHOLDERS - Distributions from net investment income are declared and paid monthly. Any net realized capital gains on sales of a Fund's securities are distributed to shareholders at least annually. 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 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 from wash sales and the tax recognition of mark to market gains (losses) on open futures contracts. 40 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. The character of the distributions paid during the fiscal year ended September 30, 2002 and the six months ended March 31, 2003 (estimated) were as follows:
2003 - -------------------------------------------------------------------------- ORDINARY LONG TERM RETURN FUND INCOME (000) GAIN (000) OF CAPITAL TOTAL (000) - -------------------------------------------------------------------------- Equity Index $11,949 $ -- $-- $11,949 Mid Cap Index 782 5,212 -- 5,994 Small Cap Index 363 -- -- 363 - --------------------------------------------------------------------------
2002 - -------------------------------------------------------------------------- ORDINARY LONG TERM RETURN FUND INCOME (000) GAIN (000) OF CAPITAL TOTAL (000) - -------------------------------------------------------------------------- Equity Index $20,995 $-- $-- $20,995 Mid Cap Index 1,421 7,678 -- 9,099 Small Cap Index 717 -- -- 717 - --------------------------------------------------------------------------
As of September 30, 2002, the Funds' most recently completed fiscal year end, the components of accumulated earnings (deficit) on a tax basis were:
EQUITY MID CAP SMALL CAP INDEX (000) INDEX (000) INDEX (000) - ---------------------------------------------------------------------------- Undistributed Ordinary Income $ 426 $ 17 $ 43 Undistributed Long Term Capital Gains -- 5,114 -- ---------- --------- --------- Accumulated Earnings 426 5,131 43 Accumulated Capital and Post-October Losses (33,817) -- (690) Unrealized Depreciation (79,324) (46,460) (25,814) ---------- --------- --------- Total Accumulated Earnings (Deficit) $(112,715) $(41,329) $(26,461) - ----------------------------------------------------------------------------
The difference between book and tax basis unrealized depreciation is primarily due to the tax deferral of losses on wash sales and the amount of gain (loss) recognized for tax purposes due to mark to market adjustments on open futures contracts. 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 differences in character or timing are permanent, adjustments are made to the appropriate equity accounts in the period that the difference arises. As of September 30, 2002, the Funds' most recently completed fiscal year end, the following Funds have capital loss carryforwards:
FUND AMOUNT (000) EXPIRATION DATE ------------------------------------------------------------------------- Equity Index $16,649 2008-2010 Small Cap Index 690 2009 --------------------------------------------------------------------------
The Equity Index Fund incurred a loss of $17,168,058 for tax purposes for the period from November 1, 2001 to September 30, 2002. As permitted by tax regulations, the Fund intends to elect to defer and treat these losses as arising in the fiscal year ending September 30, 2003. 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 the 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. FUTURES TRANSACTIONS - In order to gain exposure to or protect against changes in the market, certain Funds may enter into S&P and Russell Index futures contracts and other stock futures contracts. 41 Upon entering into a futures contract, the Fund is required to deposit cash or pledge U.S. government securities in an amount equal to 5% percent of the purchase price indicated in the futures contract (initial margin). Subsequent payments, which are dependent on the daily fluctuations in the value of the underlying security or securities, are made or received by the Fund each day (daily variation margin) and are recorded as unrealized gains (losses) until the contract is closed. When the contract is closed, the Fund records a realized gain (loss) equal to the difference between the proceeds from (or cost of) the closing transaction and the Fund's basis in the contract. 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, U.S. government securities, or other high-grade debt obligations equal to at least 100% of the value of securities loaned. The collateral is then "marked-to-market" daily until the securities are returned. USBAM serves as the securities lending agent of the Funds in transactions involving the lending of portfolio securities on behalf of the Funds. For these services, USBAM received $216,609, $23,561, $11,179 in securities lending fees for the six months ended March 31, 2003, from the Equity Index Fund, Mid Cap Index Fund, and Small Cap Index Fund, respectively. EXPENSES - Expenses that are directly related to one of the Funds are charged directly to that Fund. Other operating expenses are generally allocated to the Funds on the basis of relative net assets of all funds within the First American Fund complex. Class specific expenses 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. HISTORICAL FINANCIAL STATEMENT INFORMATION - The financial information presented for the Small Cap Index Fund and the Mid Cap Index Fund, prior to September 24, 2001, is that of Firstar Small Cap Index Fund and Firstar Mid Cap Index Fund, respectively. USE OF ESTIMATES IN 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 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. ("USBAM"), manages each Fund's assets and furnishes related office facilities, equipment, research, and personnel. The Agreement requires each Fund to pay USBAM a monthly fee based upon average daily net assets. The fee for the Equity Index Fund and Mid Cap Index Fund is equal to an annual rate of 0.25% of the average daily net assets. The fee for the Small Cap Index Fund is equal to an annual rate of 0.40% of average daily net assets. USBAM voluntarily waived fees during the six month period ending March 31, 2003, so that the total fund operating expenses did not exceed expense limitations described in the Funds' prospectuses. The Funds may invest in the money market funds that are series of 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, USBAM reimburses each FAIF Fund an amount equal to the investment advisory fee paid by FAF to USBAM related to such investments. CO-ADMINISTRATION FEES - USBAM and U.S. Bancorp Fund Services, LLC ("USBFS") (collectively the "Administrators"), serve as co-administrators pursuant to a co-administration agreement between the Administrators and the Funds. USBAM is a subsidiary of U.S. Bank National Association ("U.S. Bank"). Both U.S. Bank and USBFS are direct subsidiaries of U.S. Bancorp. Under the co-administration agreement, the Administrators are compensated to provide or compensate other entities to provide services to the Funds. These services include various legal, oversight and administrative services, accounting services, transfer agency and dividend disbursing services, and shareholder services. The Funds pay the Administrators at an annual rate, calculated daily and paid monthly based on the average daily net assets of all open-end mutual funds in the First American Family of Funds, equal to each Fund's pro rata share of an amount equal to 0.25% of the aggregate average daily net assets up to $8 billion, 0.235% on the next $17 billion of aggregate average daily assets, 0.22% on the next $25 billion of 42 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 and additional per account fees for transfer agent services. For the six months ended March 31, 2003, administration and transfer agent fees paid to USBAM and USBFS for the Funds included in this semiannual report were as follows:
FUND AMOUNT (000) ----------------------------------------------------------------------- Equity Index Fund $2,228 Mid Cap Index Fund 295 Small Cap Index Fund 132 -----------------------------------------------------------------------
CUSTODIAN FEES - Through a separate contractual agreement, U.S. Bank serves as the Funds' 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. DISTRIBUTION AND SHAREHOLDER SERVICING FEES - Quasar Distributors, LLC ("Quasar"), a subsidiary of U.S. Bancorp, served as distributor for the Funds for the six months ended March 31, 2003. Under the respective distribution agreements, the Funds paid Quasar a monthly distribution and/or shareholder servicing fee equal to a 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, distribution activities, and shareholder servicing activities. FAIF has adopted and entered into a shareholder service plan and agreement with Quasar with respect to the Class S shares. 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. No distribution and shareholder servicing fees are paid by Class Y shares. Under these distribution and shareholder servicing agreements, the following amounts were retained by Quasar or paid to affiliates of USBAM for the six months ended March 31, 2003:
FUND AMOUNT (000) ------------------------------------------------------------------------ Equity Index Fund $342 Mid Cap Index Fund 15 Small Cap Index Fund 15 ------------------------------------------------------------------------
OTHER FEES - In addition to the investment advisory fees, custodian fees, distribution and shareholder servicing fees, and co-administration fees, each Fund is responsible for paying most other operating expenses including fees and expenses of outside directors, registration fees, printing shareholder reports, legal, auditing, insurance, and other miscellaneous expenses. For the six months ended March 31, 2003, legal fees and expenses were paid to a law firm of which the Secretary and two Assistant Secretaries of the Funds are partners. SALES CHARGES - A contingent deferred sales charge ("CDSC") is imposed on redemptions made in the Class B shares. The CDSC varies depending on the number of years from time of payment for the purchase of Class B shares until the redemption of such shares.
CDSC AS A PERCENTAGE OF DOLLAR YEAR SINCE PURCHASE AMOUNT SUBJECT TO CHARGE ------------------------------------------------------------------------ First 5.00% Second 5.00% Third 4.00% Fourth 3.00% Fifth 2.00% Sixth 1.00% Seventh -- Eighth -- ------------------------------------------------------------------------
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 18 months. The CDSC for Class B shares and Class C shares is imposed on the value of the purchased shares or the value at the time of redemption, whichever is less. 43 For the six months ended March 31, 2003, sales charges paid to affiliates of USBAM for distributing the Funds' shares were as follows:
FUND AMOUNT (000) ------------------------------------------------------------------------ Equity Index Fund $135 Mid Cap Index Fund 11 Small Cap Index Fund 8 ------------------------------------------------------------------------
4 > INVESTMENT IN AFFILIATE As disclosed in the Schedule of Investments, Equity Index Fund owns common stock issued by U.S. Bancorp. For the six months ended March 31, 2003, the Equity Index Fund recorded no realized gains from sales of U.S. Bancorp common stock and $154,768 of income from U.S. Bancorp common stock. 5 > CAPITAL SHARE TRANSACTIONS FAIF has 420 billion shares of $0.0001 par value capital stock authorized. Capital share transactions for the Funds were as follows:
EQUITY MID CAP SMALL CAP INDEX FUND (000) INDEX FUND (000) INDEX FUND (000) - ------------------------------------------------------------------------------------------------------------------------------------ 10/01/02 10/01/01 10/01/02 10/01/01 10/01/02 10/01/01 TO TO TO TO TO TO 03/31/03 09/30/02 03/31/03 09/30/02 03/31/03 09/30/02 - ------------------------------------------------------------------------------------------------------------------------------------ (UNAUDITED) (UNAUDITED) (UNAUDITED) Class A: Shares issued 742 1,767 123 261 80 426 Shares issued in lieu of cash distributions 54 85 12 14 1 1 Shares redeemed (1,240) (2,430) (103) (171) (47) (239) - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL CLASS A TRANSACTIONS (444) (578) 32 104 34 188 - ------------------------------------------------------------------------------------------------------------------------------------ Class B: Shares issued 147 488 26 67 17 42 Shares issued in lieu of cash distributions 12 11 4 5 Shares redeemed (510) (1,038) (10) (33) (7) (3) - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL CLASS B TRANSACTIONS (351) (539) 20 39 10 39 ==================================================================================================================================== Class C: Shares issued 632 310 41 99 33 54 Shares issued in lieu of cash distributions 5 3 3 -- -- -- Shares redeemed (320) (415) (4) (5) (4) (2) - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL CLASS C TRANSACTIONS 317 (102) 40 94 29 52 ==================================================================================================================================== Class S: Shares issued 1,108 1,684 71 258 114 408 Shares issued in lieu of cash distributions 18 22 10 12 3 6 Shares redeemed (1,291) (859) (91) (330) (1,496) (260) - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL CLASS S TRANSACTIONS (165) 847 (10) (60) (1,379) 154 ==================================================================================================================================== Class Y: Shares issued 25,915 30,730 6,184 10,260 2,955 10,511 Shares issued in lieu of cash distributions 469 747 522 666 21 38 Shares redeemed (14,305) (37,657) (8,364) (6,449) (4,335) (5,075) - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL CLASS Y TRANSACTIONS 12,079 (6,180) (1,658) 4,477 (1,359) 5,474 ==================================================================================================================================== NET INCREASE (DECREASE) IN CAPITAL SHARES 11,436 (6,552) (1,576) 4,654 (2,665) 5,907 ====================================================================================================================================
44 6 > INVESTMENT SECURITY TRANSACTIONS During the six months ended March 31, 2003, purchases of securities and proceeds from sales of securities, other than temporary investments in short-term securities, were as follows:
FUND PURCHASES (000) SALES (000) ------------------------------------------------------------------------ Equity Index $184,440 $ 8,420 Mid Cap Index 19,785 44,086 Small Cap Index 3,901 28,633 ------------------------------------------------------------------------
The aggregate gross unrealized appreciation and depreciation of securities held by the Funds and the total cost of securities for federal income tax purposes at March 31, 2003, are as follows:
AGGREGATE AGGREGATE FEDERAL GROSS GROSS INCOME FUND APPRECIATION DEPRECIATION NET TAX COST (000) (000) (000) (000) --------------------------------------------------------------------------- Equity Index $411,617 $(442,179) $(30,562) $2,517,415 Mid Cap Index 21,237 (68,667) (47,430) 293,540 Small Cap Index 7,346 (30,817) (23,471) 122,720 ---------------------------------------------------------------------------
7 > FUTURES CONTRACTS The Funds' investment in S&P Index futures contracts is designed to maintain sufficient liquidity to meet redemption requests and to increase the level of Fund assets devoted to replicating the composition of the S&P and Russell Indices while reducing transaction costs. Risks of entering into futures contracts, in general, include the possibility that there will not be a perfect price correlation between the futures contracts and the underlying securities. Second, it is possible that a lack of liquidity for futures contracts could exist in the secondary market, resulting in an inability to close a futures position prior to its maturity date. Third, the purchase of a futures contract involves the risk that a fund could lose more than the original margin deposit required to initiate a futures transaction. Unrealized gains (losses) on outstanding positions in futures contracts held at the close of the year will be recognized as capital gains (losses) for federal income tax purposes. As of March 31, 2003, futures contracts for the Equity Index Fund, Mid Cap Index Fund, and Small Cap Index Fund, were as follows:
MARKET VALUE UNREALIZED NUMBER OF COVERED BY SETTLEMENT GAIN (LOSS) FUND CONTRACTS CONTRACTS (000) MONTH (000) ------------------------------------------------------------------------------ Equity Index S&P 500 Index 178 $37,692 June - 03 $(643) Mid Cap Index S&P MidCap 400 Index 38 6,925 June - 03 (10) Small Cap Index Russell 2000 Index 4 819 June - 03 (6) ------------------------------------------------------------------------------
45 Board of Directors First American Investment Funds, Inc. ROGER GIBSON Director of First American Investment Funds, Inc. Vice President, Cargo-United Airlines LEONARD KEDROWSKI Director of First American Investment Funds, Inc. Owner and President of Executive and Management Consulting, Inc. JOHN MURPHY JR. Director of First American Investment Funds, Inc. Retired; former 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 Chairperson 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 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. This material must be preceded or accompanied by a current prospectus, which contains more complete information about First American Funds, including risks, fees, and expenses. Please contact your investment professional, call First American Funds Investor Services at 800.677.FUND, or visit firstamericanfunds.com for additional information about First American Funds. 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 U.S. BANCORP ASSET MANAGEMENT, INC. 800 Nicollet Mall Minneapolis, Minnesota 55402 CO-ADMINISTRATORS U.S. BANCORP ASSET MANAGEMENT, INC. 800 Nicollet Mall Minneapolis, Minnesota 55402 U.S. BANCORP FUND SERVICES, LLC 615 East Michigan Street Milwaukee, Wisconsin 53202 CUSTODIAN U.S. BANK NATIONAL ASSOCIATION 180 East Fifth Street St. Paul, Minnesota 55101 DISTRIBUTOR QUASAR DISTRIBUTORS, LLC 615 East Michigan Street, 2nd floor Milwaukee, Wisconsin 53202 INDEPENDENT AUDITORS ERNST & YOUNG LLP 220 South Sixth Street Suite 1400 Minneapolis, Minnesota 55402 COUNSEL DORSEY & WHITNEY LLP 50 South Sixth Street Suite 1500 Minneapolis, Minnesota 55402 FIRST AMERICAN FUNDS P.O. Box 1330 Minneapolis, MN 55440-1330 In an attempt to reduce shareholder costs and help eliminate duplication, First American Funds will try to limit their mailing to one report for each address that lists one or more shareholders with the same last name. If you would like additional copies, please call First American Funds Investor Services at 800.677.FUND. Visit us at firstamericanfunds.com. 2055-03 5/2003 SAR-INDEX Item 2 - Did registrant adopt a code of ethics, as of the end of the period covered by this report, that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party? If not, why not? Briefly describe any amendments or waivers that occurred during the period. State here if code of ethics/amendments/waivers are on website and give website address-. State here if fund will send code of ethics to shareholders without charge upon request--N/A (not answered until July 15, 2003 and only annually for funds) Item 3 - Did the registrant's board of directors determine that the registrant either: (i) has at least one audit committee financial expert serving on its audit committee; or (ii) does not have an audit committee financial expert serving on its audit committee? If yes, disclose name of financial expert and whether he/she is "independent," (fund may, but is not required, to disclose name/independence of more than one financial expert) If no, explain why not. - N/A (not answered until July 15, 2003 and only annually for funds) Item 4 - Disclose annually only (not answered until December 15, 2003) (a) Audit Fees - Disclose aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant's annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years. N/A. (b) Audit-Related Fees - Disclose aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant's financial statements and are not reported under paragraph (a) of this Item. Registrants shall describe the nature of the services comprising the fees disclosed under this category. N/A. (c) Tax Fees - Disclose aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning. Registrants shall describe the nature of the services comprising the fees disclosed under this category. N/A. (d) All Other Fees - Disclose aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item. Registrants shall describe the nature of the services comprising the fees disclosed under this category. N/A. (e)(1) Disclose the audit committee's pre-approval policies and procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X. N/A. (e)(2) Disclose the percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X. N/A. (f) If greater than 50%, disclose the percentage of hours expended on the principal accountant's engagement to audit the registrant's financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant's full-time, permanent employees. N/A. (g) Disclose the aggregate non-audit fees billed by the registrant's accountant for services rendered to the registrant, and rendered to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant. N/A. (h) Disclose whether the registrant's audit committee has considered whether the provision of non-audit services that were rendered to the registrant's investment adviser (not including any subadviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant's independence. N/A. Items 5-6 - Reserved Item 7 - For closed - end funds that contain voting securities in their portfolio, describe the policies and procedures that it uses to determine how to vote proxies relating to those portfolio securities. N/A. Item 8 -- Reserved Item 9(a)- Disclose the conclusions of the registrant's principal executive officer or officers and principal financial officer or officers, or persons performing similar functions, about the effectiveness of the registrant's disclosure controls and procedures (as defined in Rule 30a-2(c) under the Act (17 CFR 270.30a-2(c))) based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph. N/A. Item 9(b)-- Disclose whether or not there were significant changes in the registrant's internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. N/A Item 10 - Exhibits 10(a) - Attach code of ethics or amendments/waivers, unless code of ethics or amendments/waivers is on website or offered to shareholders upon request without charge. N/A. 10(b) - Attach certifications (4 in total pursuant to Sections 302 and 906 for CEO/CFO). Attached hereto. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. First American Investment Funds, Inc. By /S/ THOMAS S. SCHREIER, JR. ---------------------------- Thomas S. Schreier, Jr. President Date: May ____, 2003 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By /S/ THOMAS S. SCHREIER, JR. ---------------------------- Thomas S. Schreier, Jr. President Date: May ____, 2003 By /S/ ROBERT H. NELSON --------------------- Robert H. Nelson Treasurer Date: May ____, 2003 EX-99.CERT 3 a2109393zex-99_cert.txt EXHIBIT 99.CERT EX-99.CERT CERTIFICATIONS PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 I, Thomas S. Schreier, Jr., certify that: 1. I have reviewed this report on Form N-CSR of First American Investment Funds, Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; Date: May ___, 2003 /S/ THOMAS S. SCHREIER, JR. - -------------------------------- Thomas S. Schreier, Jr. President ************************* I, Robert H. Nelson, certify that: 1. I have reviewed this report on Form N-CSR of First American Investment Funds, Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; Date: May ___, 2003 /S/ ROBERT H. NELSON. Robert H. Nelson Treasurer EX-99.1 CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 Pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. section 1350), the undersigned officers of First American Investment Funds, Inc. (the "Fund") do hereby certify that: 1. The N-CSR of the Fund (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of the operations of the Fund. By /S/ THOMAS S. SCHREIER, JR. ---------------------------- Thomas S. Schreier, Jr. President Date: May ____, 2003 By /S/ ROBERT H. NELSON --------------------- Robert H. Nelson Treasurer Date: May ____, 2003 A signed original of this written statement required by section 906 has been provided to the Fund and will be retained by the Fund and furnished to the Securities and Exchange Commission or its staff upon request -----END PRIVACY-ENHANCED MESSAGE-----