-----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, FdWJFJO9r3Ggx1BikZZf6OC7/5lHYHvOMBQogNHTDKF8AP76vqnraOMsRPL2OFSc gHwg76ZooDh8Hb528Fs5bw== 0001047469-03-039765.txt : 20031209 0001047469-03-039765.hdr.sgml : 20031209 20031208184028 ACCESSION NUMBER: 0001047469-03-039765 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20030930 FILED AS OF DATE: 20031209 EFFECTIVENESS DATE: 20031209 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: 031043317 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 a2122864zn-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) Jonathan P. Lillemoen 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: September 30, 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 CONFIDENTIAL DRAFT 11/13/2003 [GRAPHIC] [PHOTO OF GEORGE WASHINGTON] [FIRST AMERICAN FUNDS(SM) LOGO] 2003 ANNUAL REPORT INDEX FUNDS "NOTHING BUT HARMONY, HONESTY, INDUSTRY, AND FRUGALITY ARE NECESSARY TO MAKE US A GREAT AND HAPPY PEOPLE." GEORGE WASHINGTON JANUARY 29, 1789 [GRAPHIC] FIRST AMERICAN FUNDS OUR IMAGE-GEORGE WASHINGTON HIS RICH LEGACY AS PATRIOT AND LEADER IS WIDELY RECOGNIZED AS EMBODYING THE SOUND JUDGMENT, RELIABILITY, AND STRATEGIC VISION THAT ARE CENTRAL TO OUR BRAND. FASHIONED IN A STYLE REMINISCENT OF AN 18TH CENTURY ENGRAVING, THE ILLUSTRATION CONVEYS THE SYMBOLIC STRENGTH AND VITALITY OF WASHINGTON, WHICH ARE ATTRIBUTES THAT WE VALUE AT FIRST AMERICAN FUNDS. TABLE OF CONTENTS Message to Shareholders 1 Report of Independent Auditors 9 Schedule of Investments 10 Statements of Assets and Liabilities 42 Statements of Operations 43 page numbers not final Statements of Changes in Net Assets 44 Financial Highlights 46 Notes to Financial Statements 48 Notice to Shareholders 54
MUTUAL FUND INVESTING INVOLVES RISK; PRINCIPAL LOSS IS POSSIBLE. NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE MESSAGE TO SHAREHOLDERS November 14, 2003 DEAR SHAREHOLDERS: We invite you to take a few minutes to review the results of the fiscal year ended September 30, 2003. This report includes comparative performance graphs and tables, portfolio commentaries, complete listings of portfolio holdings, and additional fund information. We hope you will find this helpful in monitoring your investment portfolio. Also, through our website firstamericanfunds.com, we provide quarterly performance fact sheets on all First American funds, the economic outlook as viewed by our senior investment officers, and other information about fund investments and portfolio strategies. Please contact your financial professional if you have questions about First American Funds or contact First American Investor Services at 800.677.FUND. We appreciate your investment with First American Funds and look forward to serving your financial needs in the future. Sincerely, /s/ Virginia L. Stringer /s/ Thomas S. Schreier Jr. VIRGINIA L. STRINGER THOMAS S. SCHREIER, Jr. CHAIRPERSON OF THE BOARD PRESIDENT FIRST AMERICAN INVESTMENT FUNDS, INC. FIRST AMERICAN INVESTMENT FUNDS, INC. 1 EQUITY INDEX FUND Investment Objective: TO PROVIDE INVESTMENT RESULTS THAT CORRESPOND TO THE PERFORMANCE OF THE STANDARD & POOR'S 500 COMPOSITE INDEX (S&P 500 COMPOSITE INDEX) First American Equity Index Fund Class Y shares returned 23.89% for the fiscal year (Class A shares returned 23.58% at net asset value for the same period). By comparison, the Fund's benchmark, the S&P 500 Composite Index*, returned 24.40%. The Fund tracks the S&P 500 Composite Index, which is comprised of 500 companies with market values generally greater than $6 billion. The S&P 500 Composite Index is market value-weighted (shares outstanding times stock price); each company's influence on index performance is directly proportional to its market value. Because the Fund attempts to replicate the composition of the S&P 500 Composite Index, and because additions to and deletions from the index were relatively few, resulting in fairly low transaction costs, Fund performance was similar to that of the index. When comparing index performance to Fund performance, please note that unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. This is the primary reason that the Fund's performance is lower than the index. There was a resurgence of investor optimism in equity investments in the past 12 months. Stocks that were perceived to be the best opportunities for growth, especially the information technology sector, rebounded. Standard &Poor's classifies approximately 16% of the index names as information technology stocks, and these firms outperformed relative to other sectors during the past 12 months. In contrast, defensive sectors such as consumer staples and healthcare sectors gained less in value. The other sectors did not have a significant impact on total returns because they either performed very much like the average or they were such a small weighting that any performance difference did not affect the overall portfolio. 2 ANNUALIZED PERFORMANCE(1) as of September 30, 2003
SINCE INCEPTION(4) --------------------------------------------------- 1 YEAR 5 YEARS 10 YEARS 2/4/1994 8/15/1994 2/1/1999 9/24/2001 Class A NAV 23.58% 0.42% 9.44% -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ Class A POP 16.86% -0.71% 8.81% -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ Class B NAV 22.72% -0.33% -- -- 9.24% -- -- - ------------------------------------------------------------------------------------------------------------------------------ Class B POP 17.72% -0.70% -- -- 9.24% -- -- - ------------------------------------------------------------------------------------------------------------------------------ Class C NAV 22.65% -- -- -- -- -5.08% -- - ------------------------------------------------------------------------------------------------------------------------------ Class C POP 20.46% -- -- -- -- -5.29% -- - ------------------------------------------------------------------------------------------------------------------------------ Class S 23.66% -- -- -- -- -- 0.79% - ------------------------------------------------------------------------------------------------------------------------------ Class Y 23.89% 0.66% -- 9.69% -- -- -- - ------------------------------------------------------------------------------------------------------------------------------ S&P 500 Composite Index(3) 24.40% 1.00% 10.05% 10.18% 10.37% -3.88% -0.55% - ------------------------------------------------------------------------------------------------------------------------------
VALUE OF A $10,000 INVESTMENT(1),(2) as of September 30, 2003
CLASS A CLASS Y First American Equity Index Fund, Class A NAV $24,636 First American Equity Index Fund, Class A POP $23,275 First American Equity Index Fund, Class Y $24,967 S&P 500 Composite Index(3) $26,052 $25,785
[CHART] Class A 10000.00 9451.80 10000.00 10330.00 9759.00 10368.00 13315.00 12579.00 13452.00 15945.00 15064.00 16187.00 22239.00 21010.00 22735.00 24130.00 22796.00 24792.00 30718.00 29020.00 31685.00 34436.00 32533.00 35894.00 25155.00 23765.00 26339.00 19923.00 18822.00 20943.00 24636.00 23275.00 26052.00
[CHART] Class Y 10000.00 10000.00 10018.10 10037.00 12940.00 13022.00 15524.90 15670.00 21711.50 22008.00 23626.10 23999.00 30148.80 30672.00 33882.30 34746.00 24809.80 25496.00 19709.60 20273.00 24967.00 25785.00
* Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. (1) Past performance does not guarantee future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. The principal value of an investment and investment return will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance reflects voluntary fee waivers in effect. In the absence of such fee waivers, total returns would be reduced. Index is for illustrative purposes only and is not available for investment. Total returns at net asset value ("NAV") reflect performance over the time period indicated without including the Fund's maximum sales charge and assume reinvestment of all distributions at NAV. Total returns at public offering price ("POP") reflect performance over the time period indicated including maximum sales charges of 5.50% for Class A shares, 1.00% for Class C shares, and the maximum contingent deferred sales charge ("CDSC") for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares and 1.00% for Class C shares. Total returns assume reinvestment of all dividends at NAV. (2) Performance for Class B, Class C, and Class S shares is not presented. Performance for Class B and Class C is lower due to higher expenses. Performance for Class S is substantially similar to Class A share NAV performance due to similar expenses. (3) An unmanaged index of large-capitalization stocks. (4) The performance since inception for the index is calculated from the month end following the inception of the class. 3 MID CAP INDEX FUND Investment Objective: TO PROVIDE INVESTMENT RESULTS THAT CORRESPOND TO THE PERFORMANCE OF THE STANDARD & POOR'S MIDCAP 400 COMPOSITE INDEX (S&P MIDCAP 400 INDEX) First American Mid Cap Index Fund Class Y shares returned 25.86% for the fiscal year (Class A shares returned 25.45% at net asset value for the same period). By comparison, the Fund's benchmark, the S&P MidCap 400 Index*, returned 26.81%. This Fund tracks the S&P MidCap 400 Index, which is comprised of 400 firms with market values of approximately $1 billion to $6 billion. Because the Fund attempts to replicate the composition of the S&P MidCap 400 Index, and because additions to and deletions from the index were relatively few, resulting in fairly low transaction costs, Fund performance was similar to that of the index. When comparing index performance to Fund performance, please note that unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. This is the primary reason that the Fund's performance is lower than the index. Midsized firms' stocks generally performed better than larger firms' stocks. We interpret this as investors perceiving that the greater flexibility of the midsized firms would allow them to grow and compete more effectively. Standard &Poor's classifies approximately 15% of the mid-cap index names as information technology stocks, and these firms outperformed relative to other sectors during the past 12 months. Other sectors had returns closely in line with the average sector or were such a small weight that they did not have a significant impact on total returns. 4 ANNUALIZED PERFORMANCE(1) as of September 30, 2003
SINCE INCEPTION(4) ----------------------------------------------- 1 YEAR 11/4/1999 11/27/2000 9/24/2001 Class A NAV 25.45% 5.58% -- -- - ------------------------------------------------------------------------------------------------------------------------------ Class A POP 18.49% 4.06% -- -- - ------------------------------------------------------------------------------------------------------------------------------ Class B NAV 24.63% 4.87% -- -- - ------------------------------------------------------------------------------------------------------------------------------ Class B POP 19.63% 4.19% -- -- - ------------------------------------------------------------------------------------------------------------------------------ Class C NAV 24.55% -- -- 9.82% - ------------------------------------------------------------------------------------------------------------------------------ Class C POP 22.25% -- -- 9.28% - ------------------------------------------------------------------------------------------------------------------------------ Class S 25.60% -- 0.38% -- - ------------------------------------------------------------------------------------------------------------------------------ Class Y 25.86% 5.84% -- -- - ------------------------------------------------------------------------------------------------------------------------------ S&P MidCap 400 Index(3) 26.81% 6.38% 3.29% 9.93% - ------------------------------------------------------------------------------------------------------------------------------
VALUE OF A $10,000 INVESTMENT(1),(2) as of September 30, 2003
CLASS A CLASS Y First American Mid Cap Index Fund, Class A NAV $12,362 First American Mid Cap Index Fund, Class A POP $11,684 First American Mid Cap Index Fund, Class Y $12,485 S&P Mid Cap 400 Index(3) $12,674 $12,674
[CHART] Class A 10000.00 9451.80 10000.00 12648.00 11954.60 12508.30 10421.60 9850.27 10487.20 9853.78 9313.60 9994.95 12362.00 11684.00 12674.00
[CHART] Class Y 10000.00 10000.00 12662.30 12508.30 10466.60 10487.20 9919.55 9994.95 12485.00 12674.00
* Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. (1) Past performance does not guarantee future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. The principal value of an investment and investment return will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance reflects voluntary fee waivers in effect. In the absence of such fee waivers, total returns would be reduced. Index is for illustrative purposes only and is not available for investment. Stocks of mid-capitalization companies may be slightly less volatile than those of small-capitalization companies, but they still involve substantial risk and may be subject to more abrupt or erratic price fluctuations than large-capitalization companies. Total returns at net asset value ("NAV") reflect performance over the time period indicated without including the Fund's maximum sales charge and assume reinvestment of all distributions at NAV. Total returns at public offering price ("POP") reflect performance over the time period indicated including maximum sales charges of 5.50% for Class A shares, 1.00% for Class C shares, and the maximum contingent deferred sales charge ("CDSC") for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares and 1.00% for Class C shares. Total returns assume reinvestment of all dividends at NAV. On September 24, 2001, the Mid Cap Index Fund became the successor by merger to the Firstar MidCap Index Fund, a series of Firstar Funds, Inc. Prior to the merger, the First American Fund had no assets or liabilities. Performance presented prior to September 24, 2001, represents that of the Firstar MidCap Index Fund. (2) Performance for Class B, Class C, and Class S shares is not presented. Performance for Class B and Class C is lower due to higher expenses. Performance for Class S is substantially similar to Class A share NAV performance due to similar expenses. (3) An unmanaged, capitalization-weighted index that represents the aggregate market value of the common equity of 400 companies chosen by Standard & Poor's with a median capitalization of approximately $700 million to measure the performance of the mid-range sector of the U.S. stock market. (4) The performance since inception for the index is calculated from the month end following the inception of the class. 5 SMALL CAP INDEX FUND Investment Objective: TO PROVIDE INVESTMENT RESULTS THAT CORRESPOND TO THE PERFORMANCE OF THE RUSSELL 2000 INDEX First American Small Cap Index Fund Class Y shares returned 35.23% for the fiscal year (Class A shares returned 34.77% at net asset value for the same period). By comparison, the Fund's benchmark, the Russell 2000 Index* returned 36.50%. The Fund generally holds positions very similar to those in the Russell 2000 Index. Like the index, which rebalances its holdings once a year, the Fund also rebalances its stocks during the same period to reflect the changes. Because the shift in names can cause 25% to 35% turnover in the index holdings, the Fund generally looks for opportunities to complete the rebalance with minimal extra expense and tax realization so that there will be minor impact on our ability to achieve Russell 2000 Index-like returns. When comparing index performance to Fund performance, please note that unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. This is the primary reason that the Fund's performance is lower than the index. Small firms, as ranked by market capitalizations of $50 million to $2 billion, significantly outperformed larger companies during the fiscal year ended September 30, 2003. We believe that during the prior 12 months, investors perceived that smaller companies, and especially technology firms among them, represented increasingly better opportunities to regain wealth at the conclusion of a bear market. During the period, the Fund had approximately 18% of its weight in the information technology sector, which rebounded during the past 12 months. Likewise, healthcare firms, at about 12% of the Fund, contributed above-average gains, while the positive performance in telecommunication stocks had only slight impact on the portfolio, since most telecommunication stocks are those of large-cap firms. Small-cap financial firms were relatively weak performers. However, in this strong period, they still contributed positively. 6 ANNUALIZED PERFORMANCE(1) as of September 30, 2003
SINCE INCEPTION(4) ------------------------------------- 1 YEAR 12/30/1998 12/11/2000 9/24/2001 Class A NAV 34.77% 5.56% -- -- - ------------------------------------------------------------------------------------------------------------------------------ Class A POP 27.33% 4.31% -- -- - ------------------------------------------------------------------------------------------------------------------------------ Class B NAV 33.87% -- 1.20% -- - ------------------------------------------------------------------------------------------------------------------------------ Class B POP 28.87% -- -0.22% -- - ------------------------------------------------------------------------------------------------------------------------------ Class C NAV 33.94% -- -- 9.74% - ------------------------------------------------------------------------------------------------------------------------------ Class C POP 31.56% -- -- 9.17% - ------------------------------------------------------------------------------------------------------------------------------ Class S 34.54% 5.44% -- -- - ------------------------------------------------------------------------------------------------------------------------------ Class Y 35.23% 5.79% -- -- - ------------------------------------------------------------------------------------------------------------------------------ Russell 2000 Index(3) 36.50% 4.49% 1.71% 11.27% - ------------------------------------------------------------------------------------------------------------------------------
VALUE OF A $10,000 INVESTMENT(1),(2) as of September 30, 2003
CLASS A CLASS Y First American Small Cap Index Fund, Class A NAV $12,930 First American Small Cap Index Fund, Class A POP $12,221 First American Small Cap Index Fund, Class Y $13,065 Russell 2000 Index(3) $11,822 $11,822
[CHART] Class A 10000.00 9451.80 10000.00 10186.10 9627.66 11021.00 12408.10 11727.90 12065.00 10825.10 10231.70 9816.00 9594.07 9068.12 8783.00 12930.00 12221.00 11822.00
[CHART] Class Y 10000.00 10000.00 10200.90 11021.00 12438.70 12065.00 10876.40 9816.00 9660.65 8783.00 13065.00 11822.00
* Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. (1) Past performance does not guarantee future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. The principal value of an investment and an investment return will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance reflects voluntary fee waivers in effect. In the absence of such fee waivers, total returns would be reduced. Indexes are for illustrative purposes only and are not available for investment. Stocks of small-capitalization companies involve substantial risk. These stocks historically have experienced greater price volatility than stocks of larger companies, and they may be expected to do so in the future. Total returns at net asset value ("NAV") reflect performance over the time period indicated without including the Fund's maximum sales charge and assume reinvestment of all distributions at NAV. Total returns at public offering price ("POP") reflect performance over the time period indicated including maximum sales charges of 5.50% for Class A shares, 1.00% for Class C shares, and the maximum contingent deferred sales charge ("CDSC") for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares and 1.00% for Class C shares. Total returns assume reinvestment of all dividends at NAV. On September 24, 2001, the Small Cap Index Fund became the successor by merger to the Firstar Small Cap Index Fund, a series of Firstar Funds, Inc. Prior to the merger, the First American Fund had no assets or liabilities. Performance presented prior to September 24, 2001, represents that of the Firstar Small Cap Index Fund. The Firstar Small Cap Index Fund was organized on December 11, 2000, and, prior to that, was a separate series of Mercantile Mutual Funds, Inc. (2) Performance for Class B, Class C, and Class S shares is not presented. Performance for Class B and Class C is lower due to higher expenses. Performance for Class S is substantially similar to Class A share NAV performance due to similar expenses. (3) An unmanaged index that measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represents approximately 81% of the total market capitalization of the Russell 3000 Index. The Russell 3000 Index measures the performance of the 3,000 largest U.S. companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market. (4) The performance since inception for the index is calculated from the month end following the inception of the class. 7 REPORT OF INDEPENDENT AUDITORS To the Shareholders and Board of Directors First American Investment Funds, Inc. We have audited the accompanying statements of assets and liabilities, including the schedules of investments of the Equity Index, Mid Cap Index, and Small Cap Index Funds (certain funds constituting First American Investment Funds, Inc.) (the "Funds") as of September 30, 2003, the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated therein, except as noted below. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The financial highlights of the Small Cap Index and Mid Cap Index Funds for the periods presented through October 31, 2000, were audited by other auditors whose reports dated December 29, 2000 and January 21, 2000, expressed unqualified opinions on those financial highlights. We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights. Our procedures included confirmation of securities owned as of September 30, 2003, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights audited by us as referred to above, present fairly, in all material respects, the financial position of the funds listed above of the First American Investment Funds, Inc. at September 30, 2003, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended and their financial highlights for each of the periods indicated herein in conformity with accounting principles generally accepted in the United States. /s/ Ernst & Young LLP Minneapolis, Minnesota November 7, 2003 9 SCHEDULE OF INVESTMENTS September 30, 2003 EQUITY INDEX FUND
DESCRIPTION SHARES VALUE (000) - ---------------------------------------------------------------------------------- COMMON STOCKS - 96.6% CONSUMER DISCRETIONARY - 13.3% American Greetings, Cl A* 14,470 $ 281 AutoNation* 63,170 1,108 Autozone* 19,624 1,757 Bed Bath & Beyond* 64,843 2,476 Best Buy* 70,713 3,360 Big Lots* 25,598 405 Black & Decker 17,039 691 Brunswick 19,853 510 Carnival 138,083 4,542 Centex 13,542 1,055 Circuit City Stores 45,805 437 Clear Channel Communications 132,455 5,073 Comcast, Cl A* 493,575 15,242 Cooper Tire & Rubber 15,289 243 Costco Wholesale* 100,250 3,116 Dana 32,596 503 Darden Restaurants 36,139 687 Delphi Automotive Systems 122,883 1,112 Dillards, Cl A 18,202 254 Dollar General 73,155 1,463 Dow Jones & Company 17,862 846 Eastman Kodak 62,841 1,316 eBay* 140,828 7,536 Family Dollar Stores 36,938 1,473 Federated Department Stores 40,655 1,703 Ford Motor 401,796 4,327 Fortune Brands 31,855 1,808 Gannett 58,584 4,544 Gap 194,711 3,333 General Motors 122,980 5,034 Goodyear Tire & Rubber* 38,453 253 Harley-Davidson 66,382 3,200 Harrah's Entertainment 23,552 992 Hasbro 38,097 712 Hilton Hotels 80,898 1,312 Home Depot 504,076 16,055 International Game Technology 75,680 2,130 Interpublic Group of Companies* 85,841 1,212 J.C. Penney 59,552 1,273 Johnson Controls 19,283 1,824 Jones Apparel Group 27,759 831 KB HOME 10,313 615 Knight-Ridder 17,633 1,176 Kohl's* 74,453 3,983 Leggett & Platt 42,197 913 Limited 114,362 1,725 Liz Claiborne 23,054 785 Lowe's 171,841 8,919 Marriott International, Cl A 48,881 2,103 Mattel 96,275 1,825 May Department Stores 61,940 1,526 Maytag 17,062 426 McDonald's 279,068 6,569 McGraw-Hill 41,936 2,605 Meredith 10,017 462 New York Times, Cl A 32,775 1,424 Newell Rubbermaid 60,178 $ 1,304 Nike, Cl B 57,839 3,518 Nordstrom 28,678 711 Office Depot* 67,954 955 Omnicom Group 41,681 2,995 Pulte 14,935 1,016 RadioShack 36,313 1,032 Reebok International 12,723 425 Sears Roebuck and Company 66,466 2,907 Sherwin Williams 32,012 941 Snap-On Tools 12,798 354 Stanley Works 18,659 551 Staples* 107,521 2,554 Starbucks* 85,776 2,470 Starwood Hotels & Resorts Worldwide 43,080 1,499 Target 195,545 7,358 Tiffany & Company 31,841 1,189 Time Warner* 989,758 14,955 TJX 111,964 2,174 Toys 'R' Us* 46,791 563 Tribune 68,801 3,158 Tupperware 12,530 168 Univision Communications, Cl A* 70,413 2,248 V.F. 23,558 917 Viacom, Cl B 384,958 14,744 Visteon 25,007 165 Wal-Mart Stores 952,967 53,223 Walt Disney 443,863 8,953 Wendy's International 24,887 804 Whirlpool 15,098 1,023 Yum! Brands* 63,964 1,895 ------------- 277,854 ------------- CONSUMER STAPLES - 8.3% Alberto-Culver, Cl B 12,891 758 Albertson's 80,472 1,655 Altria Group 445,121 19,496 Anheuser-Busch 179,140 8,839 Archer-Daniels-Midland 141,423 1,854 Avon Products 51,803 3,344 Campbell Soup 90,034 2,386 Clorox 47,533 2,180 Coca-Cola 539,051 23,158 Coca-Cola Enterprises 99,237 1,891 Colgate-Palmolive 118,002 6,595 ConAgra Foods 117,773 2,501 Coors Adolph 7,976 429 CVS 86,565 2,689 General Mills 79,795 3,756 Gillette 223,750 7,156 H.J. Heinz 77,130 2,644 Hershey Foods 28,647 2,082 Kellogg 88,972 2,967 Kimberly-Clark 111,117 5,703 Kroger* 164,798 2,945 McCormick 30,590 839 Pepsi Bottling 58,873 1,212 PepsiCo 378,470 17,345
The accompanying notes are an integral part of the financial statements. 10
DESCRIPTION SHARES VALUE (000) - ---------------------------------------------------------------------------------- Procter & Gamble 281,084 $ 26,090 R J Reynolds Tobacco Holdings 18,934 749 Safeway* 96,805 2,221 Sara Lee 170,444 3,129 SUPERVALU 29,361 701 Sysco 142,480 4,661 UST 35,826 1,260 Walgreen 224,782 6,887 Winn-Dixie Stores 30,883 298 Wrigley, William Jr. 49,363 2,730 ------------- 173,150 ------------- ENERGY - 5.5% Amerada Hess 19,730 988 Anadarko Petroleum 54,724 2,285 Apache 35,484 2,460 Ashland 14,969 492 Baker Hughes 73,406 2,172 BJ Services* 34,713 1,186 Burlington Resources 44,022 2,122 ChevronTexaco 234,407 16,748 Conoco, Cl B 149,124 8,165 Devon Energy 50,861 2,451 EOG Resources 25,201 1,052 Exxon Mobil 1,448,392 53,011 Halliburton 96,045 2,329 Kerr-McGee 21,656 967 Marathon Oil 68,024 1,939 Nabors Industries* 32,120 1,197 Noble* 29,313 996 Occidental Petroleum 83,514 2,942 Rowan* 20,583 506 Schlumberger 127,764 6,184 Sunoco 16,876 679 Transocean Sedco Forex* 70,162 1,403 Unocal 56,664 1,786 ------------- 114,060 ------------- FINANCIALS - 20.1% ACE 61,030 2,019 AFLAC 112,737 3,641 Allstate 154,347 5,638 Ambac Financial Group 23,409 1,498 American Express 278,467 12,548 American International Group 572,190 33,015 AmSouth Bancorp 76,916 1,632 Aon 68,617 1,431 Apartment Investment & Management (REIT) 19,128 753 Bank of America 327,808 25,582 Bank of New York 168,939 4,918 Bank One 247,910 9,582 BB&T 119,746 4,300 Bear Stearns 21,871 1,636 Capital One Financial 49,843 2,843 Charles Schwab 297,044 3,538 Charter One Financial 49,499 1,515 Chubb 41,118 2,668 Cincinnati Financial 35,181 1,406 Citigroup 1,129,704 51,413 Comerica 38,440 $ 1,791 Countrywide Credit Industries 29,825 2,335 Equity Office Properties Trust (REIT) 81,407 2,241 Equity Residential Properties Trust (REIT) 59,846 1,752 Fannie Mae 213,582 14,993 Federal Home Loan Mortgage 152,587 7,988 Federated Investors, Cl B 23,820 660 Fifth Third Bancorp 124,965 6,932 First Tennessee National 27,595 1,172 FleetBoston Financial 227,463 6,858 Franklin Resources 55,045 2,434 Golden West Financial 34,622 3,099 Goldman Sachs Group 103,970 8,723 H & R Block 39,403 1,700 Hartford Financial Services Group 61,939 3,260 Huntington Bancshares 50,162 993 J. P. Morgan Chase 446,670 15,334 Janus Capital Group 52,481 733 Jefferson-Pilot 31,093 1,380 John Hancock Financial Services 63,425 2,144 KeyCorp 90,776 2,321 Lehman Brothers Holdings 53,057 3,665 Lincoln National 38,985 1,379 Loew's 40,676 1,642 Marsh & McLennan 116,762 5,559 Marshall & Ilsley 49,857 1,571 MBIA 31,789 1,747 MBNA 280,223 6,389 Mellon Financial 94,446 2,847 Merrill Lynch 205,076 10,978 Metlife 166,713 4,676 MGIC Investment 21,598 1,125 Moody's 31,649 1,740 Morgan Stanley 238,553 12,037 National City 134,700 3,968 North Fork Bancorp 33,105 1,150 Northern Trust 48,426 2,055 Plum Creek Timber 38,606 982 PNC Financial Services 61,431 2,923 Principal Financial Group 70,990 2,200 Progressive 47,650 3,293 Prologis 39,350 1,190 Providian Financial* 63,639 750 Prudential Financial 119,690 4,472 Regions Financial 48,837 1,673 SAFECO 30,375 1,071 Simon Property Group (REIT) 40,150 1,750 SLM 97,100 3,783 SouthTrust 74,031 2,176 St. Paul Companies 49,966 1,850 State Street 73,005 3,285 SunTrust Banks 61,734 3,727 Synovus Financial 66,109 1,652 T. Rowe Price Group 27,086 1,118 Torchmark 25,047 1,018 Travelers Property Casualty, Cl B 220,859 3,507 U.S. Bancorp (d) 412,184 9,888 Union Planters 42,628 1,349
11
DESCRIPTION SHARES VALUE (000) - ---------------------------------------------------------------------------------- UnumProvident 70,687 $ 1,044 Wachovia 288,820 11,896 Washington Mutual 202,496 7,972 Wells Fargo 368,358 18,970 XL Capital Limited, Cl A 29,959 2,320 Zions Bancorporation 19,680 1,099 ------------- 419,905 ------------- HEALTH CARE - 13.2% Abbott Laboratories 342,708 14,582 Aetna 33,747 2,060 Allergan 28,636 2,255 AmerisourceBergen 24,544 1,327 Amgen* 283,103 18,280 Anthem* 30,406 2,169 Applera - Applied Biosystems Group 45,828 1,022 Bard C.R. 10,610 753 Bausch & Lomb 11,422 504 Baxter International 128,723 3,741 Becton, Dickinson & Company 55,693 2,012 Biogen* 32,785 1,253 Biomet 55,397 1,862 Boston Scientific* 90,282 5,760 Bristol-Myers Squibb 418,774 10,746 Cardinal Health 97,913 5,717 Chiron* 40,860 2,112 Cigna 30,758 1,373 Eli Lilly 246,204 14,625 Express Scripts* 16,900 1,033 Forest Laboratories, Cl A* 80,043 4,118 Genzyme* 48,707 2,253 Guidant 66,414 3,111 HCA 109,841 4,049 Health Management Associates, Cl A 52,601 1,147 Humana* 35,458 640 Johnson & Johnson 650,959 32,235 King Pharmaceuticals* 52,869 801 Manor Care 19,538 586 McKesson HBOC 63,708 2,121 Medco Health Solutions* 59,313 1,538 MedImmune* 54,798 1,809 Medtronic 264,868 12,428 Merck 491,033 24,856 Pfizer 1,707,705 51,880 Quest Diagnostics* 23,068 1,399 Schering-Plough 322,233 4,911 St. Jude Medical* 37,674 2,026 Stryker 43,679 3,289 Tenet Healthcare* 101,728 1,473 UnitedHealth Group 130,764 6,580 Watson Pharmaceuticals* 23,627 985 Wellpoint Health Networks* 32,195 2,482 Wyeth 291,972 13,460 Zimmer Holdings* 49,776 2,743 ------------- 276,106 ------------- INDUSTRIALS - 10.8% 3M 167,790 11,589 Allied Waste Industries* 44,885 485 American Power Conversion 43,261 $ 741 American Standard* 15,849 1,335 Apollo Group, Cl A* 38,543 2,545 Automatic Data Processing 131,161 4,702 Avery Dennison 24,225 1,224 Boeing 184,455 6,332 Burlington Northern Santa Fe 80,008 2,310 Caterpillar 75,677 5,210 Cendant* 222,348 4,156 Cintas Group 37,386 1,377 Concord EFS* 106,763 1,459 Convergys* 35,570 652 Cooper Industries 20,190 970 Crane 12,732 298 CSX 46,924 1,373 Cummins Engine 9,100 404 Danaher 33,596 2,481 Deere & Company 52,505 2,799 Delta Air Lines 27,053 360 Donnelley RR & Sons 24,331 605 Dover 44,432 1,572 Eaton 16,473 1,460 Emerson Electric 92,341 4,862 Equifax 30,777 685 FedEx 65,471 4,218 Fluor 17,911 669 General Dynamics 43,253 3,376 General Electric 2,197,371 65,504 Genuine Parts 36,138 1,156 Goodrich 25,785 625 Grainger, W.W. 19,973 950 Honeywell International 188,632 4,970 Illinois Tool Works 67,523 4,474 IMS Health 56,743 1,197 Ingersoll-Rand, Cl A 37,574 2,008 ITT Industries 20,256 1,212 Lockheed Martin 98,883 4,563 Masco 103,086 2,524 Molex 41,916 1,198 Monster Worldwide* 24,625 620 Navistar International* 14,992 559 Norfolk Southern 85,578 1,583 Northrop Grumman 38,182 3,292 Paccar 25,568 1,910 Pall 27,225 611 Parker Hannifin 25,913 1,158 Paychex 82,635 2,804 Pitney Bowes 48,177 1,846 Power-One* 18,220 187 Raytheon 90,231 2,526 Robert Half International* 37,380 729 Rockwell Automation 40,536 1,064 Rockwell Collins 39,329 993 Ryder System 13,911 408 Sabre Group Holdings, Cl A 31,490 677 Southwest Airlines 171,716 3,039 Textron 29,726 1,173 Thomas & Betts* 12,823 203
The accompanying notes are an integral part of the financial statements. 12
DESCRIPTION SHARES VALUE (000) - ---------------------------------------------------------------------------------- Tyco International 438,075 $ 8,950 Union Pacific 54,066 3,145 United Parcel Service, Cl B 243,681 15,547 United Technologies 102,823 7,946 Waste Management 124,050 3,246 Worthington Industries 17,319 218 ------------- 225,064 ------------- INFORMATION TECHNOLOGY - 16.5% ADC Telecommunications* 176,367 411 Adobe Systems 51,157 2,008 Advanced Micro Devices* 76,096 845 Agilent Technologies* 103,367 2,285 Altera* 83,872 1,585 Analog Devices* 80,123 3,046 Andrew* 33,675 414 Apple Computer* 78,497 1,619 Applied Materials* 363,508 6,594 Applied Micro Circuits* 63,212 308 Autodesk 22,781 388 Avaya* 91,388 996 BMC Software* 50,094 698 Broadcom, Cl A* 65,050 1,732 Ciena* 103,319 611 Cisco Systems* 1,539,379 30,079 Citrix Systems* 35,543 785 Computer Associates International 126,712 3,308 Computer Sciences* 41,041 1,542 Compuware* 83,936 450 Comverse Technology* 41,299 618 Corning* 276,863 2,608 Dell* 563,360 18,811 Deluxe 12,649 508 Electronic Arts* 32,289 2,978 Electronic Data Systems 105,188 2,125 EMC* 472,210 5,964 First Data 162,351 6,488 Fiserv* 42,456 1,538 Gateway* 64,821 367 Hewlett-Packard 669,604 12,964 IBM 379,469 33,518 Intel 1,427,800 39,279 Intuit* 45,013 2,171 Jabil Circuit* 43,617 1,136 JDS Uniphase* 313,669 1,129 KLA-Tencor* 41,664 2,142 Lexmark International Group, Cl A* 26,585 1,675 Linear Technology 67,199 2,406 LSI Logic* 83,068 747 Lucent Technologies* 912,513 1,971 Maxim Integrated Products 69,708 2,753 Mercury Interactive* 18,052 820 Micron Technology* 133,761 1,795 Microsoft 2,371,762 65,911 Millipore* 10,677 492 Motorola 510,418 6,110 National Semiconductor* 40,309 1,302 NCR* 20,738 657 Network Appliance* 74,985 1,539 Novell* 81,449 $ 434 Novellus Systems* 33,200 1,120 NVIDIA* 34,891 555 Oracle Systems* 1,147,889 12,879 Parametric Technology* 49,999 156 PeopleSoft* 79,845 1,452 PerkinElmer 27,078 415 PMC-Sierra* 37,381 493 QLogic* 20,673 972 QUALCOMM 174,077 7,249 Sanmina* 111,882 1,085 Scientific-Atlanta 32,675 1,018 Siebel Systems* 108,355 1,053 Solectron* 181,993 1,065 Sun Microsystems* 708,334 2,345 SunGard Data Systems* 62,591 1,647 Symantec* 31,162 1,964 Symbol Technologies 47,263 565 Tektronix 18,610 461 Tellabs* 90,556 615 Teradyne* 41,386 770 Texas Instruments 379,700 8,657 Thermo Electron* 35,595 772 Unisys* 70,377 952 VERITAS Software* 93,372 2,932 Waters* 26,609 730 Xerox* 173,441 1,779 Xilinx* 74,761 2,131 Yahoo!* 134,223 4,749 ------------- 343,241 ------------- MATERIALS - 2.7% Air Products and Chemicals 49,846 2,248 Alcoa 185,564 4,854 Allegheny Technologies 14,676 96 Ball 12,316 665 Bemis 11,405 505 Boise Cascade 12,515 345 Brown-Forman, Cl B 14,268 1,129 Dow Chemical 201,430 6,555 E.I. du pont de Nemours 218,519 8,743 Eastman Chemical 16,717 560 Ecolab 56,966 1,438 Engelhard 27,473 760 Freeport-McMoran Copper & Gold, Cl B 36,931 1,222 Georgia-Pacific 55,646 1,349 Great Lakes Chemical 10,789 217 Hercules* 24,318 276 International Flavors & Fragrances 20,659 683 International Paper 105,170 4,104 Louisiana Pacific* 22,945 316 MeadWestvaco 43,950 1,121 Monsanto 57,433 1,375 Newmont Mining 88,363 3,454 Nucor 17,150 787 Pactiv* 34,539 700 Phelps Dodge* 19,526 914 PPG Industries 36,437 1,903 Praxair 35,740 2,214
13
DESCRIPTION SHARES VALUE (000) - ---------------------------------------------------------------------------------- Rohm & Haas 48,773 $ 1,631 Sealed Air* 18,616 879 Sigma-Aldrich 15,523 806 Temple-Inland 11,879 577 USX-U.S. Steel Group 22,654 416 Vulcan Materials 22,282 889 Weyerhaeuser 48,068 2,810 ------------- 56,541 ------------- TELECOMMUNICATION SERVICES - 3.3% ALLTEL 65,652 3,042 AT&T 172,842 3,725 AT&T Wireless Services* 591,815 4,841 BellSouth 405,174 9,595 CenturyTel 31,563 1,070 Citizens Communications* 62,361 699 Nextel Communications, Cl A* 227,113 4,472 Qwest Communications International* 371,828 1,264 SBC Communications 728,936 16,219 Sprint 198,084 2,991 Sprint PCS Group* 226,885 1,300 Verizon Communications 604,517 19,611 ------------- 68,829 ------------- UTILITIES - 2.9% AES* 135,924 1,009 Allegheny Energy* 27,570 252 Ameren 34,613 1,485 American Electric Power 86,631 2,599 Calpine* 84,013 411 Centerpoint Energy 67,063 615 Cinergy 37,804 1,387 CMS Energy* 31,599 233 Consolidated Edison 49,335 2,011 Constellation Energy 36,608 1,310 Dominion Resources 70,923 4,390 DTE Energy 36,900 1,361 Duke Energy 198,357 3,533 Dynegy* 82,166 296 Edison International* 71,457 1,365 El Paso 131,707 961 Entergy 49,993 2,707 Exelon 71,467 4,538 FirstEnergy 71,418 2,278 FPL Group 39,890 2,521 KeySpan 34,766 1,220 Kinder Morgan 27,036 1,460 NICOR 10,118 356 NiSource 57,637 1,152 People's Energy 7,880 326 PG&E* 90,374 2,160 Pinnacle West 20,022 711 PPL 38,754 1,587 Progress Energy 51,701 2,299 Progress Energy-CVO (C) 8,576 1 Public Service Enterprises 49,651 2,085 Sempra Energy 45,775 1,344 Southern 159,782 4,685 TECO Energy 41,162 569 TXU 70,622 1,664 DESCRIPTION SHARES/PAR (000) VALUE (000) - ---------------------------------------------------------------------------------- Williams 113,602 $ 1,070 Xcel Energy 82,070 1,270 ------------- 59,221 ------------- TOTAL COMMON STOCKS (Cost $1,751,680) 2,013,971 ------------- SHORT-TERM INVESTMENTS - 3.9% U.S. TREASURY OBLIGATION - 0.5% United States Treasury Bill (b) 0.970%, 03/11/04 $ 10,800 10,753 ------------- TOTAL U.S. TREASURY OBLIGATION 10,753 ------------- RELATED PARTY MONEY MARKET FUND - 3.4% First American Prime Obligations Fund, Cl Z (a)(d) 71,467,566 71,468 ------------- TOTAL RELATED PARTY MONEY MARKET FUND 71,468 ------------- TOTAL SHORT-TERM INVESTMENTS (Cost $82,220) 82,221 ------------- INVESTMENTS PURCHASED WITH PROCEEDS FROM SECURITIES LENDING - 35.2% COMMERCIAL PAPER - 3.7% Bluegrass 1.190%, 05/18/04 2,843 2,843 CS First Boston 1.415%, 10/01/03 11,371 11,371 Danske Bank 1.508%, 12/22/03 11,371 11,371 Independent IV 1.216%, 04/15/04 7,392 7,392 K2 USA 1.020%, 12/01/03 5,675 5,675 Leafs 1.339%, 04/20/04 7,846 7,846 Mitten Mortgage 1.130%, 10/08/03 7,958 7,958 Mortgage Interest Network 1.110%, 10/15/03 2,842 2,842 1.130%, 12/02/03 5,675 5,675 Orchard Park 1.245%, 04/06/04 1,137 1,137 1.220%, 07/06/04 12,616 12,616 ------------- TOTAL COMMERCIAL PAPER 76,726 ------------- CORPORATE OBLIGATIONS - 8.0% Allstate Life Global 1.092%, 08/16/04 11,371 11,371 Bank of Scotland 1.100%, 03/05/04 5,686 5,686 Castle Hill III 1.176%, 09/16/04 3,412 3,412 Deutsche Bank 1.430%, 12/31/03 4,549 4,549 1.340%, 03/22/04 5,686 5,686 General Electric Capital Corporation 1.150%, 07/09/07 5,687 5,687 Halogen Fund 1.150%, 10/03/03 23,651 23,651 Lloyd's Bank 1.100%, 03/05/04 11,371 11,371 Metlife Global Funding 1.130%, 09/15/04 6,821 6,821 1.147%, 04/28/08 4,776 4,776
The accompanying notes are an integral part of the financial statements. 14
DESCRIPTION SHARES/PAR (000) VALUE (000) - ---------------------------------------------------------------------------------- Monet Trust 1.210%, 12/28/03 $ 11,371 $ 11,371 Residential Mortgage Securities 1.140%, 09/11/04 8,529 8,529 Sigma Finance 1.268%, 08/09/04 11,370 11,370 SMM Trust 2002-M 1.140%, 09/23/04 19,047 19,047 Svenska Handlsbankn 1.100%, 03/03/04 11,371 11,371 1.100%, 03/15/04 2,047 2,047 Wells Fargo Bank 1.050%, 10/17/03 11,371 11,371 1.060%, 10/31/03 7,960 7,960 ------------- TOTAL CORPORATE OBLIGATIONS 166,076 ------------- MONEY MARKET FUNDS - 0.1% AIM Short Term Liquid Asset Portfolio 454,857 455 Merrill Lynch Premier Institutional Fund 1,490,055 1,490 ------------- TOTAL MONEY MARKET FUNDS 1,945 ------------- OTHER SHORT-TERM INVESTMENTS - 3.0% Commonwealth Life 1.430%, 11/01/03 5,741 5,741 General Electric Capital Assurance 1.370%, 12/19/03 2,274 2,274 Liquid Funding 1.130%, 8/23/04 5,684 5,684 1.130%, 9/14/04 5,685 5,685 Premium Asset Trust 02-7 0.110%, 06/01/04 16,943 16,943 Security Life Denver 1.381%, 01/13/04 14,783 14,783 1.490%, 03/15/04 11,371 11,371 ------------- TOTAL OTHER SHORT-TERM INVESTMENTS 62,481 ------------- REPURCHASE AGREEMENTS - 20.4% Bear Stearns 1.240%, dated 9/30/03, matures 10/1/03, repurchase price $22,754,592 (collateralized by Various Securities: Total Market Value $23,208,132) 22,743 22,743 CS First Boston 1.140%, dated 9/30/03, matures 10/1/03, repurchase price $28,429,452 (collateralized by U.S. Government Securities: Total Market Value $28,997,390) 28,429 28,429 CS First Boston 1.140%, dated 9/30/03, matures 10/1/03, repurchase price $3,525,252 (collateralized by U.S. Government Securities: Total Market Value $3,595,689) 3,525 3,525 CS First Boston 1.248%, dated 9/30/03, matures 10/1/03, repurchase price $9,097,452 (collateralized by Collateralized Mortgage Obligation: Total Market Value $9,552,283) 9,097 9,097 Deutsche Bank 1.080%, dated 9/30/03, matures 10/1/03, repurchase price $5,685,881 (collateralized by U.S. Government Securities: Total Market Value $5,799,425) 5,686 5,686 DESCRIPTION PAR (000) VALUE (000) - ---------------------------------------------------------------------------------- Deutsche Bank 1.080%, dated 9/30/03, matures 10/1/03, repurchase price $22,743,524 (collateralized by U.S. Government Securities: Total Market Value $23,197,698) $ 22,743 $ 22,743 Deutsche Bank 1.248%, dated 9/30/03, matures 10/1/03, repurchase price $45,487,259 (collateralized by Corporate Securities: Total Market Value $47,759,967) 45,486 45,486 Goldman Sachs 1.268%, dated 9/30/03, matures 10/1/03, repurchase price $17,057,732 (collateralized by Corporate Securities: Total Market Value $17,906,293) 17,057 17,057 Goldman Sachs 1.330%, dated 9/30/03, matures 10/1/03, repurchase price $11,371,841 (collateralized by Various Securities: Total Market Value $11,723,139) 11,371 11,371 Goldman Sachs 1.380%, dated 9/30/03, matures 10/1/03, repurchase price $5,685,928 (collateralized by Various Securities: Total Market Value $5,801,843) 5,686 5,686 Lehman Brothers 1.120%, dated 9/30/03, matures 10/1/03, repurchase price $31,272,380 (collateralized by U.S. Government Securities: Total Market Value $31,896,925) 31,271 31,271 Lehman Brothers 1.130%, dated 9/30/03, matures 10/1/03, repurchase price $11,371,778 (collateralized by U.S. Government Securities: Total Market Value $11,599,263) 11,371 11,371 Lehman Brothers 1.388%, dated 9/30/03, matures 10/1/03, repurchase price $22,743,718 (collateralized by Various Securities: Total Market Value $23,046,079) 22,743 22,743 Lehman Brothers 1.150%, dated 9/30/03, matures 10/1/03, repurchase price $6,481,917 (collateralized by Mortgage Obligations: Total Market Value $6,857,728) 6,482 6,482 Merrill Lynch 1.110%, dated 9/30/03, matures 10/1/03, repurchase price $34,115,313 (collateralized by U.S. Government Securities: Total Market Value $34,797,016) 34,114 34,114 Merrill Lynch 1.110%, dated 9/30/03, matures 10/1/03, repurchase price $1,026,666 (collateralized by U.S. Government Securities: Total Market Value $1,047,565.75) 1,027 1,027
15
DESCRIPTION PAR (000) VALUE (000) - ---------------------------------------------------------------------------------- Merrill Lynch 1.110%, dated 9/30/03, matures 10/1/03, repurchase price $2,842,943 (collateralized by U.S. Government Securities: Total Market Value $2,899,876.25) $ 2,843 $ 2,843 Merrill Lynch 1.110%, dated 9/30/03, matures 10/1/03, repurchase price $6,823,063 (collateralized by U.S. Government Securities: Total Market Value $6,959,649.68) 6,823 6,823 Merrill Lynch 1.110%, dated 9/30/03, matures 10/1/03, repurchase price $22,743,542.58 (collateralized by U.S. Government Securities: Total Market Value $23,198,017) 22,743 22,743 Merrill Lynch 1.110%, dated 9/30/03, matures 10/1/03, repurchase price $28,429,428 (collateralized by U.S. Government Securities: Total Market Value $28,997,404) 28,429 28,429 Merrill Lynch 1.130%, dated 9/30/03, matures 10/1/03, repurchase price $22,743,555 (collateralized by Asset-Backed and U.S. Government Securities: Total Market Value $23,198,476) 22,743 22,743 Merrill Lynch 1.308%, dated 9/30/03, matures 10/1/03, repurchase price $22,743,667 (collateralized by Corporate Securities: Total Market Value $23,880,029) 22,743 22,743 Morgan Stanley 1.258%, dated 9/30/03, matures 10/1/03, repurchase price $6,027,063 (collateralized by Asset-Backed Securities: Total Market Value $6,328,196) 6,027 6,027 Morgan Stanley 1.258%, dated 9/30/03, matures 10/1/03, repurchase price $35,366,354 (collateralized by Mortgage Obligations and Asset-Backed Securities: Total Market Value $37,141,522) 35,365 35,365 ------------- TOTAL REPURCHASE AGREEMENTS 426,547 ------------- TOTAL INVESTMENTS PURCHASED WITH PROCEEDS FROM SECURITIES LENDING (Cost $733,775) 733,775 ------------- TOTAL INVESTMENTS - 135.7% (Cost $2,567,676) 2,829,967 ------------- OTHER ASSETS AND LIABILITIES, NET - (35.7)% (743,969) ------------- TOTAL NET ASSETS - 100.0% $ 2,085,998 -------------
* Non-income producing security (a) 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. (b) 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. (c) Security is fair valued. As of September 30, 2003, the market value of this investment is $1,372 or 0.00% of total net assets. See note 2 in Notes to Financial Statements. (d) Investments in affiliated securities. As of September 30, 2003, the market value of these investments is $81,355,860 or 3.90% of total net assets. See note 4 in Notes to Financial Statements. Cl - Class REIT - Real Estate Investment Trust The accompanying notes are an integral part of the financial statements. 16 MID CAP INDEX FUND
DESCRIPTION SHARES VALUE (000) - ---------------------------------------------------------------------------------- COMMON STOCKS - 96.8% CONSUMER DISCRETIONARY - 16.6% 99 Cents Only Stores* 20,446 $ 661 Abercrombie & Fitch* 28,002 776 American Eagle Outfitters* 20,384 303 Applebee's International 15,910 501 ArvinMeritor 19,643 350 Barnes & Noble* 18,548 471 Belo, Cl A 32,574 790 BJ's Wholesale Club* 19,883 385 Blyth 14,934 403 Bob Evans Farms 9,938 265 Borders Group* 20,940 396 BorgWarner 7,744 525 Brinker International* 27,848 929 Callaway Golf 19,268 275 CarMax* 29,669 969 Catalina Marketing, Cl C* 15,319 233 CBRL Group 13,981 496 Cheesecake Factory* 14,840 537 Chico's FAS* 24,780 759 Claire's Stores 14,017 469 Coach* 26,050 1,422 D.R. Horton 44,584 1,458 Dollar Tree Stores* 32,794 1,099 Emmis Communications, Cl A* 15,594 315 Entercom Communications* 14,531 651 Extended Stay America* 27,446 410 Federal Signal 13,238 197 Furniture Brands International* 15,984 385 Gentex 21,909 763 GTECH Holdings 15,076 646 Harte-Hanks 25,453 469 Hovnanian Enterprises, Cl A* 8,590 553 International Speedway, Cl A 14,540 638 Kelly Services, Cl A 10,206 255 Krispy Kreme Doughnuts* 16,697 643 Lancaster Colony 9,095 362 Lear* 19,260 1,014 Lee Enterprises 13,159 509 Lennar 21,121 1,643 Macrovision* 13,978 258 Mandalay Resort Group 18,058 715 Media General, Cl A 6,713 410 Michaels Stores 19,105 779 Modine Manufacturing 9,801 233 Mohawk Industries* 19,026 1,357 Neiman Marcus Group* 13,593 567 O'Reilly Automotive* 15,470 569 Outback Steakhouse 21,484 814 Park Place Entertainment* 86,600 780 Payless ShoeSource* 19,518 253 PETsMART 40,578 921 Pier 1 Imports 24,554 472 Reader's Digest Association, Cl A 34,218 479 Rent-A-Center* 23,540 760 Ross Stores 21,960 1,018 Ruby Tuesday 18,500 446 Saks* 40,651 $ 469 Scholastic* 11,237 324 Six Flags* 27,104 143 Sotheby's Holdings, Cl A* 16,836 182 Superior Industries 7,644 310 Timberland, Cl A* 10,207 435 Toll Brothers* 22,669 690 Unifi* 16,285 78 United Rentals* 22,066 355 Univision Communications, Cl A* 26,564 848 Washington Post, Cl B 2,554 1,698 Westwood One* 29,013 876 Williams-Sonoma* 33,351 900 ------------- 42,064 ------------- CONSUMER STAPLES - 3.9% Church and Dwight 11,370 398 Constellation Brands, CI A* 28,356 865 Dean Foods* 44,389 1,377 Dial 26,095 562 Hormel Foods 38,257 879 Interstate Bakeries 12,851 193 JM Smucker 14,327 604 Longs Drug Stores 10,176 205 PepsiAmericas 41,318 599 Ruddick 13,084 203 Sensient Technologies 13,446 282 Smithfield Foods* 31,289 601 Tootsie Roll Industries 14,754 457 Tyson Foods, Cl A 100,503 1,420 Universal 8,004 337 Whole Foods Market* 17,044 940 ------------- 9,922 ------------- ENERGY - 7.4% Cooper Cameron* 15,710 726 Cross Timbers Realty 371 8 ENSCO International 42,971 1,152 Equitable Resources 17,077 702 FMC Technologies* 18,914 405 Forest Oil* 13,874 332 Grant Prideco* 34,821 355 Hanover Compressor* 20,887 207 Helmerich & Payne 13,233 346 Murphy Oil 24,600 1,445 National-Oilwell* 24,358 442 Noble Energy 18,030 691 Patterson-UTI Energy* 23,203 628 Peabody Energy 15,339 481 Pepco Holdings 49,008 847 Pioneer Natural Resources* 33,790 860 Pogo Producing 20,368 922 Pride International* 38,749 657 Smith International* 28,704 1,033 Tidewater 16,548 468 Valero Energy 32,453 1,242 Varco International* 27,944 473 Weatherford International* 37,650 1,422 Westar Energy 19,784 365
17
DESCRIPTION SHARES VALUE (000) - ---------------------------------------------------------------------------------- Western Gas Resources 9,520 $ 362 Wisconsin Energy 33,589 1,027 XTO Energy 52,689 1,106 ------------- 18,704 ------------- FINANCIALS - 19.1% Allmerica Financial* 15,212 362 AMB Property 23,426 722 American Financial Group 19,976 434 AmeriCredit* 44,815 462 Amerus Group 11,210 381 Arthur J. Gallagher 25,241 714 Associated Banc-Corp 21,097 797 Astoria Financial 23,025 711 Bank of Hawaii 16,072 540 Banknorth Group 46,227 1,305 Brown & Brown 19,610 604 City National 13,908 709 Colonial BancGroup 35,652 515 Commerce Bancorp 21,482 1,029 Compass Bancshares 35,960 1,243 Cullen/Frost Bankers 14,760 550 Dime Bancorp* 23,400 4 E*TRADE Group* 103,898 962 Eaton Vance 19,830 664 Edwards A.G 21,921 842 Everest Re Group 15,903 1,195 Fidelity National Financial 38,618 1,161 First American 22,253 554 FirstMerit 24,226 599 Greater Bay Bancorp 14,921 310 GreenPoint Financial 39,379 1,176 HCC Insurance Holdings 18,265 531 Hibernia, Cl A 44,754 907 Horace Mann Educators 11,703 170 Hospitality Properties Trust (REIT) 16,655 584 Independence Community Bank 15,676 548 IndyMac Bancorp 17,212 399 Investors Financial Services 18,678 586 LaBranche 17,075 249 Legg Mason 18,561 1,340 Leucadia National 16,571 627 Liberty Property Trust (REIT) 22,730 841 M & T Bank 32,468 2,834 Mack-Cali Realty (REIT) 15,770 618 Mercantile Bankshares 22,785 911 MONY Group 12,716 414 National Commerce Financial 58,662 1,460 Neuberger Berman 20,082 841 New Plan Excel Realty Trust (REIT) 25,818 602 New York Community Bancorp 39,688 1,251 Ohio Casualty* 18,829 273 Old Republic International 33,945 1,123 PMI Group 25,484 860 Protective Life 19,761 590 Provident Financial Group 17,609 492 Radian Group 26,833 1,191 Roslyn Bancorp 21,940 515 SEI Investments 30,087 978 Silicon Valley Bancshares* 10,612 $ 293 Sovereign Bancorp 83,772 1,554 Stancorp Financial Group 8,348 480 TCF Financial 20,502 983 United Dominion Realty Trust (REIT) 34,430 630 Unitrin 18,044 550 W.R. Berkley 23,845 817 Waddell & Reed Financial 22,471 530 Washington Federal 19,990 504 Webster Financial 15,063 601 Westamerica Bancorporation 9,229 410 Wilmington Trust 17,969 553 ------------- 48,185 ------------- HEALTH CARE - 12.9% AdvancePCS* 26,389 1,203 Apogent Technologies* 28,359 592 Apria Healthcare Group* 15,708 430 Barr Laboratories* 19,156 1,307 Beckman Coulter 17,483 796 Charles River Laboratories International* 14,104 433 Community Health Systems* 28,510 619 Covance* 17,654 395 Coventry Health Care* 17,175 906 Cytyc* 31,450 473 DENTSPLY International 22,199 995 Edwards Lifesciences* 16,801 455 First Health Group* 27,203 711 Gilead Sciences* 57,739 3,229 Health Net* 33,324 1,055 Henry Schein* 12,472 707 Hillenbrand Industries 16,897 953 ICN Pharmaceuticals 22,946 394 IDEC Pharmaceuticals* 44,577 1,478 IVAX* 56,114 1,100 Lifepoint Hospitals* 11,124 268 Lincare Holdings* 28,636 1,049 Millennium Pharmaceuticals* 85,658 1,318 Mylan Laboratories 50,257 1,942 Omnicare 29,064 1,048 Oxford Health Plans* 23,794 983 PacifiCare Health Systems* 10,770 526 Patterson Dental* 19,546 1,125 Perrigo 17,877 228 Pharmaceutical Resources* 9,700 662 Protein Design Labs* 26,858 372 Sepracor* 24,295 669 SICOR* 34,114 658 STERIS* 19,873 457 Triad Hospitals* 23,654 716 Universal Health Services* 16,610 821 Varian Medical Systems* 19,583 1,126 Vertex Pharmaceuticals* 22,081 272 VISX* 14,492 276 ------------- 32,747 ------------- INDUSTRIALS - 13.4% ABX Air* 13,251 33 AGCO* 23,086 396
The accompanying notes are an integral part of the financial statements. 18
DESCRIPTION SHARES VALUE (000) - ---------------------------------------------------------------------------------- Alaska Air Group* 7,651 $ 213 Alexander & Baldwin 10,866 305 AMETEK 9,490 407 Banta 7,363 265 Bisys Group* 34,362 452 Brinks 15,562 270 C. H. Robinson Worldwide 24,159 899 Career Education* 28,436 1,288 Carlisle Companies 11,109 485 Ceridian* 42,487 791 Certegy 18,987 610 CheckFree* 22,718 454 ChoicePoint* 24,530 822 CNF 14,226 456 Copart* 28,157 304 Corinthian Colleges* 12,560 718 CSG Systems International* 15,001 222 DeVry* 20,172 477 Donaldson 12,224 659 DST Systems* 33,173 1,247 Dun & Bradstreet* 21,172 879 Dycom Industries* 13,733 280 Education Management* 10,225 590 EGL* 13,541 246 Energizer Holdings* 24,244 891 Expeditors International of Washington 30,017 1,033 Fastenal 20,748 784 Flowserve* 15,846 322 GATX 13,419 284 Graco 13,130 493 Granite Construction 12,363 231 Harsco 10,714 412 HON Industries 16,600 614 Hubbell, Cl B 18,447 673 IMC Global 33,021 212 J.B. Hunt Transport Services* 22,698 591 Jacobs Engineering Group* 15,906 717 Jetblue Airways* 19,160 1,168 Kennametal 10,153 380 Korn Ferry International* 15,715 130 L-3 Communications Holdings* 27,639 1,195 Manpower 22,294 827 Miller Herman 20,894 476 MPS Group* 30,615 276 Nordson 9,219 239 Overseas Shipholding Group 9,115 236 Pentair 14,153 564 Precision Castparts 14,135 496 Quanta Services* 33,444 277 Republic Services 45,485 1,030 Rollins 12,936 231 Sequa* 2,804 120 SPX* 21,964 995 Stericycle* 12,030 567 Swift Transportation* 23,923 543 Sylvan Learning Systems* 12,364 337 Tecumseh Products, Cl A 3,921 146 Teleflex 11,347 493 Trinity Industries 13,208 341 Valassis Communications* 14,917 $ 394 Viad 25,339 605 Werner Enterprises 18,328 420 York International 11,398 394 ------------- 33,905 ------------- INFORMATION TECHNOLOGY - 13.9% 3Com* 105,614 623 Activision* 27,137 324 Acxiom* 24,480 386 ADTRAN* 11,073 677 Advanced Fiber Communications* 24,573 515 Advent Software* 8,657 139 Affiliated Computer Services, Cl A* 38,105 1,855 Arrow Electronics* 28,910 532 Ascential Software* 16,940 314 Atmel* 134,447 539 Avnet* 34,273 566 Avocent* 13,294 403 C D W 23,690 1,368 Cabot Microelectronics* 7,050 393 Cadence Design Systems* 77,856 1,043 CommScope* 15,666 189 Credence Systems* 18,095 208 Cree* 21,023 389 Cypress Semiconductor* 34,454 609 Diebold 19,202 973 Fair Isaac 13,820 815 Fairchild Semiconductor International, Cl A* 33,648 558 Gartner Group, Cl B* 23,020 251 Harris 18,696 669 Imation 10,185 333 Integrated Circuit Systems* 19,960 600 Integrated Device Technology* 29,857 371 International Rectifier* 18,403 689 Internet Security Systems* 14,264 178 Intersil, Cl A 39,635 943 Investment Technology Group* 13,558 260 Jack Henry & Associates 25,202 438 Keane* 18,854 241 KEMET* 24,776 316 Lam Research* 36,364 805 Lattice Semiconductor* 32,259 229 Legato Systems* 33,775 379 LTX* 14,205 160 Macromedia* 17,949 444 McDATA, Cl A* 32,834 393 Mentor Graphics* 19,741 346 Micrel* 26,485 323 Microchip Technology 58,759 1,407 National Instruments 14,080 567 Network Associates* 46,003 633 Newport* 11,299 159 Overture Services* 18,382 487 Plantronics* 11,934 285 Plexus* 11,175 174 Polycom* 28,351 471 Powerwave Technologies* 17,449 116 Quantum* 50,764 156 Retek* 15,468 104
19
DESCRIPTION SHARES VALUE (000) - ---------------------------------------------------------------------------------- Reynolds & Reynolds, Cl A 19,513 $ 538 RF Micro Devices* 52,861 491 RSA Security* 16,020 229 SanDisk* 20,020 1,276 Semtech* 21,040 388 Silicon Laboratories* 14,130 635 Storage Technology* 31,419 758 Sybase* 27,179 462 Synopsys* 44,536 1,370 Tech Data* 15,496 478 Titan* 23,029 480 Transaction Systems Architects, Cl A* 10,221 170 TriQuint Semiconductor* 38,474 215 Varian* 9,262 290 Vishay Intertechnology* 45,787 802 Wind River Systems* 26,370 150 ------------- 35,077 ------------- MATERIALS - 3.6% Airgas 21,042 375 Albemarle 11,823 325 Arch Coal 13,704 304 Bandag 5,065 171 Bowater 15,885 668 Cabot 17,694 504 Carpenter Technology 5,162 111 Crompton 31,891 185 Cytec Industries* 11,193 409 Ferro 11,690 250 FMC* 10,124 255 Glatfelter 11,952 141 Longview Fibre* 13,505 132 Lubrizol 14,269 463 Lyondell Chemical 46,420 593 Martin Marietta Materials 14,028 511 Minerals Technologies 5,773 294 Olin 15,885 251 Packaging Corporation of America* 29,900 581 Potlatch 8,228 245 Rayonier 11,896 483 RPM 33,152 433 Sonoco Products 26,437 580 Valspar 14,474 675 Wausau-Mosinee Paper 14,480 177 ------------- 9,116 ------------- TELECOMMUNICATION SERVICES - 0.6% Cincinnati Bell* 70,023 356 Price Communications* 15,549 193 Telephone & Data Systems 15,567 880 ------------- 1,429 ------------- UTILITIES - 5.4% AGL Resources 18,277 515 ALLETE 23,547 645 Alliant Energy 31,655 696 Aquila* 55,955 189 Black Hills 8,767 271 DPL 36,273 622 Duquesne Light Holdings 21,520 332 DESCRIPTION SHARES/PAR (000) VALUE (000) - ---------------------------------------------------------------------------------- Energy East 41,812 $ 938 Great Plains Energy 18,923 574 Hawaiian Electric Industries 9,684 422 IDACORP 10,442 266 MDU Resources Group 21,649 731 National Fuel Gas 23,323 533 Northeast Utilities 38,140 683 NSTAR 14,191 674 OGE Energy 21,421 484 Oneok 21,379 431 Philadelphia Suburban 21,380 515 PNM Resources 11,403 320 Puget Energy 26,967 605 Questar 23,764 732 SCANA 31,808 1,089 Sierra Pacific Resources* 33,604 163 Vectren 21,400 505 WGL Holdings 13,942 385 WPS Resources 9,317 384 ------------- 13,704 ------------- TOTAL COMMON STOCKS (Cost $248,929) 244,853 ------------- SHORT-TERM INVESTMENTS - 4.2% U.S. TREASURY OBLIGATION - 0.4% United States Treasury Bill (b) 0.970%, 03/11/04 $ 1,000 995 ------------- TOTAL U.S. TREASURY OBLIGATION 995 ------------- RELATED PARTY MONEY MARKET FUND - 3.8% First American Prime Obligations Fund, Cl Z (a) 9,530,707 9,531 ------------- TOTAL RELATED PARTY MONEY MARKET FUND 9,531 ------------- TOTAL SHORT-TERM INVESTMENTS (Cost $10,526) 10,526 ------------- INVESTMENTS PURCHASED WITH PROCEEDS FROM SECURITIES LENDING - 34.9% COMMERCIAL PAPER - 3.6% Bluegrass 1.190%, 05/18/04 342 342 CS First Boston 1.415%, 10/01/03 1,369 1,369 Danske Bank 1.508%, 12/22/03 1,369 1,369 Independent IV 1.216%, 04/15/04 890 890 K2 USA 1.020%, 12/01/03 683 683 Leafs 1.339%, 04/20/04 945 945 Mitten Mortgage 1.130%, 10/08/03 958 958 Mortgage Interest Network 1.110%, 10/15/03 342 342 1.130%, 12/02/03 683 683 Orchard Park 1.245%, 04/06/04 137 137 1.220%, 07/06/04 1,519 1,519 ------------- TOTAL COMMERCIAL PAPER 9,237 -------------
The accompanying notes are an integral part of the financial statements. 20
DESCRIPTION SHARES/PAR (000) VALUE (000) - ---------------------------------------------------------------------------------- CORPORATE OBLIGATIONS - 7.9% Allstate Life Global 1.092%, 08/16/04 $ 1,369 $ 1,369 Bank of Scotland 1.100%, 03/05/04 685 685 Castle Hill III 1.176%, 09/16/04 411 411 Deutsche Bank 1.430%, 12/31/03 548 548 1.340%, 03/22/04 685 685 General Electric Capital Corporation 1.150%, 07/09/07 685 685 Halogen Fund 1.150%, 10/03/03 2,848 2,848 Lloyd's Bank 1.100%, 03/05/04 1,369 1,369 Metlife Global Funding 1.130%, 09/15/04 821 821 1.147%, 04/28/08 575 575 Monet Trust 1.210%, 12/28/03 1,369 1,369 Residential Mortgage Securities 1.140%, 09/11/04 1,027 1,027 Sigma Finance 1.268%, 08/09/04 1,369 1,369 SMM Trust 2002-M 1.140%, 09/23/04 2,294 2,294 Svenska Handlsbankn 1.100%, 03/03/04 1,369 1,369 1.100%, 03/15/04 246 246 Wells Fargo Bank 1.050%, 10/17/03 1,369 1,369 1.060%, 10/31/03 959 959 ------------- TOTAL CORPORATE OBLIGATIONS 19,998 ------------- MONEY MARKET FUNDS - 0.1% AIM Short Term Liquid Asset Portfolio 54,776 55 Merrill Lynch Premier Institutional Fund 179,439 180 ------------- TOTAL MONEY MARKET FUNDS 235 ------------- OTHER SHORT-TERM INVESTMENTS - 3.0% Commonwealth Life 1.430%, 11/01/03 691 691 General Electric Capital Assurance 1.370%, 12/19/03 274 274 Liquid Funding 1.130%, 8/23/04 684 684 1.130%, 9/14/04 685 685 Premium Asset Trust 02-7 0.110%, 06/01/04 2,040 2,040 Security Life Denver 1.381%, 01/13/04 1,780 1,780 1.490%, 03/15/04 1,369 1,369 ------------- TOTAL OTHER SHORT-TERM INVESTMENTS 7,523 ------------- REPURCHASE AGREEMENTS - 20.3% Bear Stearns 1.240%, dated 9/30/03, matures 10/1/03, repurchase price $2,740,208 (collateralized by Various Securities: Total Market Value $2,794,825) 2,739 2,739 DESCRIPTION PAR (000) VALUE (000) - ---------------------------------------------------------------------------------- CS First Boston 1.140%, dated 9/30/03, matures 10/1/03, repurchase price $3,423,600 (collateralized by U.S. Government Securities: Total Market Value $3,491,993) $ 3,424 $ 3,424 CS First Boston 1.140%, dated 9/30/03, matures 10/1/03, repurchase price $424,526 (collateralized by U.S. Government Securities: Total Market Value $433,009) 425 425 CS First Boston 1.248%, dated 9/30/03, matures 10/1/03, repurchase price $1,095,555 (collateralized by Collateralized Mortgage Obligation: Total Market Value $1,150,328) 1,096 1,096 Deutsche Bank 1.080%, dated 9/30/03, matures 10/1/03, repurchase price $684,719 (collateralized by U.S. Government Securities: Total Market Value $698,392) 685 685 Deutsche Bank 1.080%, dated 9/30/03, matures 10/1/03, repurchase price $2,738,875 (collateralized by U.S. Government Securities: Total Market Value $2,793,569) 2,739 2,739 Deutsche Bank 1.248%, dated 9/30/03, matures 10/1/03, repurchase price $5,477,776 (collateralized by Corporate Securities: Total Market Value $5,751,465) 5,478 5,478 Goldman Sachs 1.268%, dated 9/30/03, matures 10/1/03, repurchase price $2,054,167 (collateralized by Corporate Securities: Total Market Value $2,156,355) 2,054 2,054 Goldman Sachs 1.330%, dated 9/30/03, matures 10/1/03, repurchase price $1,369,477 (collateralized by Various Securities: Total Market Value $1,411,752) 1,369 1,369 Goldman Sachs 1.380%, dated 9/30/03, matures 10/1/03, repurchase price $684,724 (collateralized by Various Securities: Total Market Value $698,684) 685 685 Lehman Brothers 1.120%, dated 9/30/03, matures 10/1/03, repurchase price $3,765,957 (collateralized by U.S. Government Securities: Total Market Value $3,841,168) 3,766 3,766 Lehman Brothers 1.130%, dated 9/30/03, matures 10/1/03, repurchase price $1,369,439 (collateralized by U.S. Government Securities: Total Market Value $1,396,834) 1,369 1,369 Lehman Brothers 1.388%, dated 9/30/03, matures 10/1/03, repurchase price $2,738,899 (collateralized by Various Securities: Total Market Value $2,775,310) 2,739 2,739
21
DESCRIPTION PAR (000) VALUE (000) - ---------------------------------------------------------------------------------- Lehman Brothers 1.150%, dated 9/30/03, matures 10/1/03, repurchase price $780,581 (collateralized by Mortgage Obligations: Total Market Value $825,838) $ 781 $ 781 Merrill Lynch 1.110%, dated 9/30/03, matures 10/1/03, repurchase price $4,108,316 (collateralized by U.S. Government Securities: Total Market Value $4,190,410) 4,108 4,108 Merrill Lynch 1.110%, dated 9/30/03, matures 10/1/03, repurchase price $123,636 (collateralized by U.S. Government Securities: Total Market Value $126,152) 124 124 Merrill Lynch 1.110%, dated 9/30/03, matures 10/1/03, repurchase price $342,360 (collateralized by U.S. Government Securities: Total Market Value $349,216) 342 342 Merrill Lynch 1.110%, dated 9/30/03, matures 10/1/03, repurchase price $821,663 (collateralized by U.S. Government Securities: Total Market Value $838,112) 822 822 Merrill Lynch 1.110%, dated 9/30/03, matures 10/1/03, repurchase price $2,738,877 (collateralized by U.S. Government Securities: Total Market Value $2,793,607) 2,739 2,739 Merrill Lynch 1.110%, dated 9/30/03, matures 10/1/03, repurchase price $3,423,597 (collateralized by U.S. Government Securities: Total Market Value $3,491,995) 3,424 3,424 Merrill Lynch 1.130%, dated 9/30/03, matures 10/1/03, repurchase price $2,738,878 (collateralized by Asset-Backed and U.S. Government Securities: Total Market Value $2,793,663) 2,739 2,739 Merrill Lynch 1.308%, dated 9/30/03, matures 10/1/03, repurchase price $2,738,892 (collateralized by Corporate Securities: Total Market Value $2,875,738) 2,739 2,739 Morgan Stanley 1.258%, dated 9/30/03, matures 10/1/03, repurchase price $725,805 (collateralized by Asset-Backed Securities: Total Market Value $762,069) 726 726 Morgan Stanley 1.258%, dated 9/30/03, matures 10/1/03, repurchase price $4,258,972 (collateralized by Mortgage Obligations and Asset-Backed Securities: Total Market Value $4,472,745) $ 4,259 $ 4,259 ------------- TOTAL REPURCHASE AGREEMENTS 51,371 ------------- TOTAL INVESTMENTS PURCHASED WITH PROCEEDS FROM SECURITIES LENDING (Cost $88,364) 88,364 ------------- TOTAL INVESTMENTS - 135.9% (Cost $347,819) $ 343,743 ------------- OTHER ASSETS AND LIABILITIES, NET - (35.9)% (90,928) ------------- TOTAL NET ASSETS - 100.0% $ 252,815 -------------
* Non-income producing security (a) 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. (b) 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. Cl - Class REIT - Real Estate Investment Trust The accompanying notes are an integral part of the financial statements. 22 SMALL CAP INDEX FUND
DESCRIPTION SHARES VALUE (000) - ---------------------------------------------------------------------------------- COMMON STOCKS - 93.9% CONSUMER DISCRETIONARY - 14.0% 1-800 Flowers* 2,935 $ 22 4Kids Entertainment* 1,796 38 A.C. Moore Arts & Crafts* 1,866 42 Aaron Rents 4,529 95 Action Performance 2,276 56 Advanced Marketing Services 2,284 23 ADVO* 3,122 130 Aeropostale* 2,991 81 AFC Enterprises* 2,107 34 Alliance Gaming* 7,745 157 Ambassadors Group* 676 12 AMC Entertainment* 4,780 64 American Eagle Outfitters* 8,192 122 American Greetings, Cl A* 9,665 188 America's Car-Mart* 672 20 Ameristar Casinos* 1,715 43 ANC Rental* (c) 11,900 -- AnnTaylor Stores* 6,993 225 APAC Customer Service* 4,771 12 Applica* 3,249 20 Applied Industrial Technology 2,377 47 Arctic Cat 2,234 43 Arden Group, Cl A 156 10 Argosy Gaming* 4,123 101 Asbury Automotive Group* 2,030 34 Aztar* 4,410 78 Bally Total Fitness Holding* 4,406 38 Bassett Furniture 1,542 21 Beasley Broadcast Group* 508 7 Beazer Homes USA* 2,064 174 Bebe Stores* 727 20 Big 5 Sporting Goods* 2,729 42 Blair 1,039 22 Blue Rhino* 1,723 19 Bob Evans Farms 5,272 141 Boca Resorts, Cl A* 3,754 49 Bombay Company* 4,971 49 Boyd Gaming 4,868 74 Boyds Collection Limited* 3,051 14 Brookfield Homes 2,547 47 Brookstone* 1,882 37 Brown Shoe 2,623 83 Buckle 1,178 23 Building Materials Holding 2,031 27 Burlington Coat Factory 2,760 52 California Pizza Kitchen* 2,541 44 Callaway Golf 10,315 147 Carmike Cinemas* 202 5 Casual Male Retail Group* 4,682 35 Catalina Marketing, Cl C* 5,670 86 Cato, Cl A 2,618 53 CEC Entertainment* 3,564 140 Champion Enterprise* 9,290 59 Charlotte Russe Holding* 1,758 18 Charming Shoppes* 17,809 102 Charter Communications, Cl A* 40,654 167 Cherokee* 1,014 21 Chicago Pizza & Brewery* 1,680 $ 20 Children's Place Retail Stores* 1,858 32 Christopher & Banks 5,517 132 Churchill Downs 867 33 CKE Restaurants* 9,042 58 Coachmen Industries 2,114 25 Coldwater Creek* 1,872 18 Cole National* 1,765 22 Concord Camera* 3,783 40 Cooper Tire & Rubber 10,256 163 Cost Plus* 3,356 124 Courier 602 31 Cross Media Marketing* (c) 1,203 -- Crown Media Holdings, Cl A* 1,798 15 CSK Auto* 5,747 89 CSS Industries 723 19 Cumulus Media, Cl A* 6,745 115 Dave & Busters* 1,710 18 Deb Shops 449 8 Department 56* 2,067 26 Dicks Sporting Goods* 1,981 74 Digital Generation Systems* 4,560 10 Dillards, Cl A 9,648 135 Dover Downs Gaming & Entertainment 1,109 9 Dover Motorsports 2,291 9 Dress Barn* 2,874 39 Dura Automotive Systems* 2,554 24 Electronics Boutique & Holdings* 1,967 56 Emerson Radio* 2,827 11 Emmis Communications, Cl A* 6,958 140 Extended Stay America* 11,182 167 Exult* 4,933 40 Federal Signal 7,526 112 Finish Line, Cl A* 2,595 68 Finlay Enterprises* 1,018 15 Fisher Communications* 697 33 Footstar* 2,834 19 Fossil* 3,787 92 Fred's 6,056 200 Friedman's 3,512 49 FTD, Cl A* 498 11 Galyan's Trading* 1,086 11 GameStop* 3,119 50 Gaylord Entertainment* 1,849 45 Genesco* 3,217 52 Goodyear Tire & Rubber* 23,643 155 Goody's Family Clothing 2,852 28 Gray Television 5,961 70 Great Atlantic & Pacific Tea* 2,188 18 Grey Global Group 140 107 Group 1 Automotive* 2,562 88 Guess?* 1,303 12 Guitar Center* 1,997 64 Gymboree* 4,347 61 Hampshire Group* 320 10 Hancock Fabrics 2,181 34 Handleman 3,523 59 Haverty Furniture 2,337 43 Hibbett Sporting Goods* 1,609 38
23
DESCRIPTION SHARES VALUE (000) - ---------------------------------------------------------------------------------- Hollywood Entertainment* 8,331 $ 142 Hooker Furniture 558 20 Hot Topic* 7,386 166 Hughes Supply 3,680 119 iDine Rewards Network* 3,314 54 IHOP 3,029 100 Information Holdings* 2,003 40 Ingles Markets, Cl A 954 9 Insight Communications* 7,495 71 Insight Enterprises* 7,787 119 InterActiveCorp* 1,539 51 InterTAN* 3,039 28 Isle of Capri Casinos* 2,445 48 J & J Snack Foods* 1,394 49 J. Jill Group* 2,543 29 Jack in the Box* 5,201 93 JAKKS Pacific* 3,637 44 Jo-Ann Stores, Cl A* 2,241 63 JOS A Bank Clothiers* 680 30 Journal Register* 5,704 107 K2* 3,685 55 Kellwood 4,119 138 Kelly Services, Cl A 2,526 63 Kenneth Cole Productions 885 23 Kimball International 3,282 48 Kirkland's* 1,681 27 K-Swiss, Cl A 1,781 64 Landry's Restaurants 3,338 69 Libbey 1,748 49 Liberty 2,548 107 Lin TV, Cl A* 4,037 86 Linens `N Things* 6,919 165 Lithia Motors 2,085 42 LodgeNet Entertainment* 1,602 25 Lone Star Steakhouse & Saloon 2,234 47 M/I Schottenstein Homes 1,521 60 Macrovision* 6,430 119 Magna Entertainment* 6,098 25 Marcus 2,928 45 MarineMax* 1,277 19 Martha Stewart Living* 1,946 18 Matthews International, Cl A 4,293 113 Maxwell Shoe* 2,140 31 Men's Wearhouse* 5,447 140 Meritage* 1,730 82 Mestek* 292 5 Midas* 2,172 29 Midway Games* 3,849 11 Modine Manufacturing 3,458 82 Monaco Coach* 4,439 73 Mothers Work* 639 19 Movado Group 1,104 24 Movie Gallery* 3,795 75 MTR Gaming Group* 3,564 31 Multimedia Games* 1,567 57 Nautilus Group 4,215 53 Netflix* 1,568 53 Noland 66 2 Oakley* 3,669 37 OfficeMax* 19,485 $ 183 Oneida* 2,302 7 OshKosh B' Gosh, Cl A 1,191 31 O'Charley's* 3,111 46 Overstock.com* 1,304 19 Oxford Industries 878 56 P. F. Chang's China Bistro* 3,971 180 Pacific Sunwear of California* 11,077 229 Palm Harbor Homes* 3,374 58 Panera Bread, Cl A* 4,364 179 Papa John's International* 1,742 43 Party City* 1,578 20 Paxson Communications* 4,526 22 Payless ShoeSource* 10,658 138 PC Connection* 1,112 10 Penn National Gaming* 4,989 106 Pep Boys - Manny Moe & Jack 7,530 115 Perry Ellis International* 1,115 32 Petco Animal Supplies* 6,117 191 Phillips Van-Heusen 3,835 58 Pinnacle Entertainment* 3,470 24 Playboy Enterprises* 2,204 32 Pomeroy Computer Resources* 1,501 19 Priceline.com* 3,236 94 Prime Hospitality* 5,450 47 Pulitzer 726 38 Quicksilver* 8,640 138 R.H. Donnelley* 3,110 126 RARE Hospitality International* 4,509 112 RC2* 1,981 38 Reading International, Cl A* 2,387 14 Red Robin Gourmet Burgers* 1,376 35 Regent Communication* 5,303 32 Rent-Way* 3,506 19 Restoration Hardware* 3,043 18 Rex Stores* 1,143 15 Russ Berrie and Company 1,409 47 Russell 4,005 65 Ryan's Family Steak Houses* 6,542 84 Saga Communications* 1,984 38 Salem Communications* 1,320 26 Sauer-Danfoss 1,500 21 School Specialty* 2,557 72 Scientific Games* 7,728 88 SCP Pool* 4,877 136 Select Comfort* 3,078 82 Sharper Image* 1,380 32 Shoe Carnival* 1,118 16 Shopko* 4,296 64 Shuffle Master* 2,463 67 Sinclair Broadcast Group, Cl A* 5,788 59 Six Flags* 14,524 76 Skechers USA* 2,962 22 Skyline 914 29 Sonic* 5,912 149 Sonic Automotive, Cl A 4,275 103 Sonic Solutions* 2,180 30 Sotheby's Holdings, Cl A* 6,592 71 Source Interlink Companies* 1,931 18
The accompanying notes are an integral part of the financial statements. 24
DESCRIPTION SHARES VALUE (000) - ---------------------------------------------------------------------------------- SOURCECORP* 2,252 $ 52 Spanish Broadcasting System* 4,828 41 Speedway Motorsports 2,208 65 Sports Authority* 6,514 205 Sports Resorts International* 367 2 Stage Stores* 2,168 55 Stamps.com* 5,577 32 Standard Motor Products 578 6 Standard Pacific 5,046 191 Stanley Furniture 867 26 Steak 'N Shake* 3,538 53 Stein Mart* 3,120 17 Steinway Musical Instruments* 654 12 Steven Madden* 1,569 30 Stoneridge* 1,949 29 Stride Rite 5,603 61 Sturm, Ruger & Company 3,331 34 Summit American Television* 5,596 16 Superior Industries 3,504 142 Systemax* 2,620 17 TBC* 3,277 82 The Wet Seal, Cl A* 3,298 33 Thor Industries 2,804 151 TiVo* 4,950 37 Too* 5,351 79 Toro 3,704 167 Tower Automotive* 11,054 50 Tractor Supply* 4,568 150 Trans World Entertainment* 2,215 13 Triarc 1,831 18 Triarc, Cl A 3,662 38 Tuesday Morning* 2,019 56 Tupperware 8,153 109 Tweeter Home Entertainment* 3,077 24 Ultimate Electronics* 1,722 16 Unifi* 8,229 40 United Auto Group* 2,970 68 Universal Electronics* 2,241 26 Urban Outfitters* 3,720 97 Vail Resorts* 2,893 41 Value Line 210 10 ValueVision International* 2,500 40 Vans* 2,807 31 Visteon 20,502 135 Wabtec 4,546 72 Wackenhut Corrections* 1,372 23 Warnaco Group, Cl A* 6,289 98 WCI Communities* 2,495 41 Weis Markets 1,461 50 Wellman 4,717 35 WESCO International* 3,003 16 West Marine* 1,758 33 Weyco Group 267 13 Whitehall Jewelers* 1,711 19 Wilsons The Leather Experts* 2,613 21 Winnebago Industries 1,841 82 WMS Industries* 3,357 76 Wolverine World Wide 6,254 121 World Wrestling 1,675 17 Yankee Candle* 4,882 $ 124 Zales* 5,032 223 ------------- 17,932 ------------- CONSUMER STAPLES - 2.5% 7-Eleven* 3,627 50 Alico 1,113 31 American Italian Pasta* 2,294 89 BJ's Wholesale Club* 10,864 210 Casey's General Stores 6,709 94 Central European Distributors* 998 27 Chiquita Brands International* 5,305 94 Chronimed* 1,943 18 Coca-Cola Bottling 564 28 Corn Products International 5,431 173 Delta & Pine Land 5,667 130 DIMON 8,067 56 Duane Reade* 3,193 51 Elizabeth Arden* 1,819 30 Farmer Brothers 145 46 Flowers Foods 4,779 109 Green Mountain Coffee* 563 11 Hain Celestial Group* 3,443 62 Horizon Organic Holding* 970 23 Inter Parfums 601 6 International Multifoods* 3,401 79 Interstate Bakeries 6,896 103 John B. Sanfilippo & Son* 868 18 Lance 3,618 36 Longs Drug Stores 4,398 89 M & F Worldwide* 1,655 16 Maui Land & Pineapple* 432 11 Mondavi Robert, Cl A* 852 26 Nash-Finch 1,765 27 National Beverage* 1,720 26 Natures Sunshine Product 1,018 8 NBTY* 8,076 189 Nu Skin Enterprises 4,993 64 Omega Protein* 982 6 Pantry* 960 12 Pathmark Stores* 4,161 29 Peets Coffee & Tea* 1,924 38 Pilgrims Pride 2,502 31 Playtex Products* 4,600 27 Ralcorp Holdings* 4,472 124 Revlon* 4,927 13 Riviana Foods 893 25 Ruddick 4,879 76 Sanderson Farms 848 27 Schweitzer-Mauduit International 2,244 57 Seaboard 48 10 Sensient Technologies 5,986 126 Smart & Final* 1,915 12 Standard Commercial 2,515 46 Star Scientific* 4,547 8 Tejon Ranch* 1,677 56 Topps 4,983 49 United Natural Foods* 2,967 98 Universal 3,864 163 Usana Health Sciences* 664 32
25
DESCRIPTION SHARES VALUE (000) - ---------------------------------------------------------------------------------- Vector Group 3,648 $ 53 Wild Oats* 3,809 42 ------------- 3,190 ------------- ENERGY - 3.6% Atwood Oceanics* 1,201 29 Berry Petroleum, Cl A 2,305 42 Cabot Oil & Gas 3,811 99 Cal Dive International* 5,498 107 Carbo Ceramics 1,449 52 Cimarex Energy* 6,357 125 Clayton Williams Energy* 614 12 Comstock Resources* 4,563 61 Denbury Resources* 5,307 66 Dril-Quip* 973 16 Encore Acquisition* 1,377 30 Energy Partners* 3,330 37 EnergySouth 506 16 Evergreen Resources* 5,902 159 Forest Oil* 6,320 151 Frontier Oil 4,102 60 Global Industries* 10,523 48 Grey Wolf* 29,983 104 Gulf Island Fabrication* 1,106 17 GulfMark Offshore* 2,007 28 Hanover Compressor* 8,133 81 Harvest Natural Resources* 5,656 35 Holly 975 24 Horizon Offshore* 4,177 17 Hydril* 2,162 44 Input/Output* 6,598 26 KCS Energy* 5,473 37 Lone Star Technologies* 3,954 53 Lufkin Industries 798 19 Magnum Hunter Resources* 12,188 97 Magnum Hunter Resources Warrant* 1,160 -- Maritrans 944 14 Massey Energy 9,635 128 Matrix Service* 1,312 23 Maverick Tube* 6,566 102 McMoRan Exploration* 1,794 19 Meridian Resource* 5,510 24 MGE Energy 2,347 71 Newpark Resources* 11,388 49 North Coast Energy* 465 6 NS Group* 2,157 14 Nuevo Energy* 2,797 51 Oceaneering International* 3,324 78 Offshore Logistics* 2,752 56 Oil States International* 3,751 48 Parker Drilling* 12,825 30 Patina Oil & Gas 4,567 166 Penn Virginia 1,057 47 Petrocorp* 2,005 27 Petroleum Developement* 2,555 31 Petroleum Helicopters* 551 16 Plains Exploration & Production* 7,293 91 Plains Resources* 3,144 39 Prima Energy* 1,405 35 Quicksilver Resources* 2,177 53 Range Resources* 9,953 $ 68 Remington Oil & Gas* 3,277 59 Resource America, Cl A 2,287 27 RPC 1,398 14 Seabulk International* 1,912 14 Seacor Smit* 2,589 94 Spinnaker Exploration* 3,799 91 St. Mary Land & Exploration 4,298 109 Stone Energy* 3,472 122 Superior Energy Services* 7,107 70 Swift Energy* 4,085 58 Tesoro Petroleum* 8,547 72 Tetra Technologies* 3,067 63 The Houston Exploration* 2,096 74 Tom Brown* 4,785 123 TransMontaigne* 2,708 16 Unit* 5,580 105 Universal Compression Holdings* 2,605 56 Veritas DGC* 4,548 36 Vintage Petroleum 7,611 83 Westar Energy 9,895 183 W-H Energy Services* 3,296 59 World Fuel Services 1,467 41 ------------- 4,547 ------------- FINANCIALS - 20.4% 1st Source 1,868 36 21st Century Insurance Group 3,474 48 ABC Bancorp 1,370 21 Acadia Realty Trust (REIT) 2,272 25 Accredited Home Lenders Holdings* 1,525 33 Advanta, Cl B 3,058 33 Affiliated Managers Group* 3,082 194 Alabama National 1,448 69 Alexander's (REIT)* 547 58 Alexandria Real Estate Equities 2,824 136 Alfa 5,026 63 Allegiant Bancorp 2,100 42 Allmerica Financial* 8,345 199 AMCORE Financial 3,671 92 American Home Mortgage Holdings 1,688 30 American Land Lease (REIT) 708 13 American Medical Security Group* 1,806 37 American Mortgage Acceptance (REIT) 1,260 21 American National Bankshares 557 14 American Physicians Capital* 1,353 38 American Realty Investors* 345 3 AmericanWest Bancorp* 1,462 27 Amerus Group, Cl A 5,999 204 Amli Residential Properties Trust (REIT) 1,989 52 Anchor Bancorp 3,238 76 Anthracite Capital (REIT) 7,423 72 Anworth Mortgage Asset (REIT) 4,692 67 Apex Mortgage Capital (REIT)* 4,790 26 Argonaut Group* 4,016 52 Arrow Financial 1,266 33 Associated Estates Realty (REIT) 2,443 16 Avatar Holdings* 850 27 Baldwin & Lyons 1,190 28 BancFirst 558 30
The accompanying notes are an integral part of the financial statements. 26
DESCRIPTION SHARES VALUE (000) - ---------------------------------------------------------------------------------- BancTrust Financial Group 947 $ 14 Bank Mutual 1,574 67 Bank of Granite 1,889 35 Bank of the Ozarks 757 34 BankAtlantic Bancorp 7,836 112 Bankunited Financial* 4,598 97 Banner 1,617 33 Bay View Capital* 9,915 60 Bedford Property Investors (REIT) 2,011 52 Berkshire Hills Bancorp 794 27 Boston Private Financial Holdings 3,815 90 Boykin Lodging (REIT) 2,578 21 Brandywine Realty Trust (REIT) 3,707 95 Brookline Bancorp 8,642 127 BRT Realty Trust (REIT) 82 2 Bryn Mawr Bank 457 19 BSB Bancorp 1,153 32 C & F Financial 513 23 Camco Financial 1,149 20 Camden National 1,238 37 Capital Automotive (REIT) 3,796 116 Capital City Bank Group 1,324 51 Capital Corporation of the West* 772 25 Capitol Bancorp 1,381 37 Capstead Mortgage (REIT) 1,692 21 Cascade Bancorp 1,948 33 Cash America International 3,673 60 Cathay Bancorp 2,359 104 Cavalry Bancorp 725 12 CB Bancshares 633 39 CCBT Financial 1,333 33 Center Bancorp 1,115 18 Center Financial 711 14 Central Coast Bancorp* 1,267 21 Central Pacific Financial 2,237 55 Century Bancorp, Cl A 474 16 CFS Bancorp 1,452 20 Charter Financial 495 15 Charter Mutual 4,967 91 Chateau Communities (REIT) 3,158 94 Chemical Financial 3,535 109 Chittenden 5,253 156 Citizens* 4,313 35 Citizens Banking 6,791 179 Citizens First Bancorp 1,384 29 Citizens South Banking 1,269 19 City Bank 1,248 40 City Holdings 2,530 84 Clark* 2,445 33 CNA Surety* 2,546 26 CNB Financial 529 22 Coastal Bancorp 722 23 Coastal Financial 1,797 25 Cobiz 2,497 40 Colonial Properties Trust (REIT) 2,294 83 Columbia Bancorp 829 22 Columbia Bancorp - Oregon 1,121 16 Columbia Banking System 1,976 35 Commerce Group 3,630 138 Commercial Bankshares 462 $ 14 Commercial Capital Bancorp* 1,367 21 Commercial Federal 6,947 169 Commercial Net Lease Realty (REIT) 5,326 91 Community Bank Northern Virginia 650 11 Community Bank System 1,730 76 Community Banks 1,269 42 Community First Bankshares 5,707 151 Community Trust Bancorp 1,881 55 CompuCredit* 2,112 37 Connecticut Bancshares 1,741 89 Cornerstone Realty Income Trust (REIT) 7,886 64 Corporate Office Properties Trust (REIT) 4,609 85 Correctional Properties Trust (REIT) 1,624 41 Corrections Corporation of America* 5,491 135 Corus Bankshares 1,153 62 Crawford & Company 1,583 11 Credit Acceptance* 2,010 23 Criimi Mae (REIT)* 1,849 19 Crown American Realty Trust (REIT) 3,794 45 CVB Financial 4,922 94 Delphi Financial Group 2,494 116 Dime Community Bancshares 3,143 72 Donegal Group, Cl A 520 8 DVI* 2,090 -- East West Bancorp 3,404 146 Eastern Virginia Bankshares 697 19 EastGroup Properties (REIT) 2,281 63 E-Loan* 6,608 24 EMC Insurance Group 288 5 Enstar Group* 512 20 Entertainment Properties Trust (REIT) 2,634 79 Equity Inns (REIT) 6,372 48 Equity One (REIT) 4,028 68 ESB Financial 1,268 18 eSPEED, Cl A* 3,479 79 Essex Property Trust (REIT) 2,405 151 Euronet Worldwide* 2,529 31 EverTrust Financial Group 588 17 Exchange National Bancshares 624 22 F.N.B. - North Carolina 749 19 F.N.B. - Virginia 837 23 Farmers Capital Bank 815 27 FBL Financial Group, Cl A 1,802 44 Federal Agricultural Mortgage, Cl C* 1,236 33 FelCor Lodging Trust (REIT)* 8,895 92 FFLC Bancorp 633 18 Fidelity Bankshares 2,058 54 Fidelity National Information Solutions* 1,878 47 Financial Federal* 2,234 68 Financial Industries 1,182 17 Financial Institutions 1,325 29 First Albany Companies 1,109 14 First Bancorp North Carolina 1,171 33 First Busey 1,233 32 First Charter 4,565 89 First Citizens Bancorp 559 15 First Citizens Bancshares, Cl A 895 95 First Commonwealth Financial 8,709 115
27
DESCRIPTION SHARES VALUE (000) - ---------------------------------------------------------------------------------- First Community Bancorp 1,915 $ 64 First Community Bancshares 1,470 52 First Defiance Financial 770 18 First Essex Bancorp 1,035 53 First Federal Capital 2,677 55 First Financial 1,054 64 First Financial - Kentucky 469 14 First Financial Bancorp 4,624 68 First Financial Bankshares 1,990 74 First Financial Holdings 2,007 61 First Indiana 1,831 34 First Industrial Realty Trust (REIT) 6,154 197 First M & F 491 18 First Merchants 2,760 71 First National 1,159 31 First Niagara Financial Group 11,097 168 First Oak Brook Bancshares 992 25 First of Long Island 530 20 First Place Financial 1,874 33 First Republic Bank 1,716 53 First Sentinel Bancorp 3,465 62 First South Bancorp 405 13 First State Bancorporation 1,164 34 First United 864 19 Firstbank - Michigan 789 25 FirstFed American Bancorp 2,434 54 FirstFed Financial* 3,303 130 Flag Financial 1,008 13 Flagstar Bancorp 4,324 99 FloridaFirst Bancorp 820 22 Flushing Financial 1,596 33 FMS Financial 636 11 Foothill Independant Bancorp 587 12 Franklin Financial 534 17 Fremont General 9,554 121 Frontier Financial 2,319 69 G B & T Bancshares 692 15 GA Financial 593 16 Gabelli Asset Management* 963 34 Gables Residential Trust (REIT) 3,719 120 GATX 6,257 132 GBC Bancorp of California 1,148 44 German American 1,317 23 Getty Realty (REIT) 2,449 60 Glacier Bancorp 2,639 72 Gladstone Capital 1,372 27 Glenborough Realty Trust (REIT) 2,364 45 Glimcher Realty Trust (REIT) 4,582 97 Gold Banc 7,096 86 Great American Financial Resources 1,128 16 Great Lakes (REIT) 2,201 35 Great Southern Bancorp 893 35 Greater Bay Bancorp 8,148 169 Greater Community Bancorp 709 11 Greene County Bancshares 906 22 Hancock Holding 1,944 96 Hanmi Financial 1,470 29 Harbor Florida Bancshares 3,204 85 Harleysville Group 4,458 104 Harleysville National 3,620 $ 85 Hawthorne Financial* 1,347 54 Health Care (REIT) 5,844 180 Heartland Financial USA 980 27 Heritage Commerce* 1,782 19 Heritage Financial 844 18 Heritage Property Investment Trust (REIT) 2,464 71 Highwoods Properties (REIT) 8,392 200 Hilb, Rogal & Hamilton 4,442 138 Home Properties of New York (REIT) 4,086 160 Horace Mann Educators 5,927 86 Horizon Financial 1,550 25 Hudson River 2,248 72 Humboldt Bancorp 1,974 31 IBERIABANK 1,030 54 IBT Bancorp 356 18 IMPAC Mortgage Holdings (REIT) 7,917 128 Independence Holdings 515 11 Independent Bank 1,867 48 Independent Bank - Michigan 2,661 78 Infinity Property & Casualty 1,829 51 Innkeepers USA Trust (REIT) 6,271 55 Integra Bank 2,332 45 Interchange Financial Services 1,596 33 Investment Technology Group* 7,405 142 Investors Real Estate Trust (REIT) 5,696 56 Irwin Financial 2,465 60 ITLA Capital* 688 29 Jones Lang LaSalle* 4,592 85 Kansas City Life Insurance 538 25 Keystone Property Trust (REIT) 2,680 54 Kilroy Realty (REIT) 3,551 101 Klamath First Bancorp 864 19 Knight Trading Group* 11,381 130 Koger Equity (REIT) 2,710 51 Kramont Realty Trust (REIT) 3,329 56 L N B Bancorp 730 15 La Quinta (REIT)* 24,062 150 Lakeland Bancorp 1,823 29 Lakeland Financial 722 24 LandAmerica Financial Group 2,908 133 Lasalle Hotel Properties (REIT) 4,268 74 Lexington Corporate Properties Trust (REIT) 4,689 90 Local Financial* 3,033 54 LSB Bancshares 1,229 23 LTC Properties (REIT) 2,108 24 Macatawa Bank 1,313 30 MAF Bancorp 3,361 128 Main Street Banks 2,091 52 MainSource Financial Group 851 22 Manufactured Home Communities (REIT) 2,096 82 MASSBANK 473 17 MB Financial 1,755 78 MBT Financial 2,488 39 MCG Capital 3,451 54 Medallion Financial 2,066 13 Mercantile Bank 732 24 Merchants Bancshares 630 18 MeriStar Hospitality (REIT)* 6,851 49
The accompanying notes are an integral part of the financial statements. 28
DESCRIPTION SHARES VALUE (000) - ---------------------------------------------------------------------------------- Metris* 4,380 $ 18 MFA Mortgage Investments (REIT) 7,188 68 Mid-America Apartment Communities (REIT) 2,163 65 Mid-Atlantic Realty Trust (REIT) 2,803 59 Midland 1,152 25 Mid-State Bancshares 3,562 79 Midwest Banc Holdings 1,709 38 Mission West Properties (REIT) 2,288 28 MutualFirst Financial 619 16 Nara Bancorp 1,449 25 NASB Financial 540 18 National Bankshares - Virginia 428 19 National Health Investors (REIT) 3,261 59 National Health Realty (REIT) 970 15 National Penn Bancshares 3,194 88 National Western Life Insurance, Cl A* 351 48 Nationwide Health Properties (REIT) 8,779 154 Navigators Group* 662 22 NBC Capital 889 22 NBT Bancorp 4,875 99 NetB@nk 8,411 105 New Century Financial 4,440 126 Newcastle Investment (REIT) 3,889 89 Newtek Business Services* 1,217 6 Northern States Financial 200 6 Northwest Bancorp 1,609 30 Novastar Financial (REIT) 1,471 85 NYMAGIC 1,010 23 Oak Hill Financial 429 12 Oceanfirst Financial 943 24 Ocwen Financial* 5,780 26 Ohio Casualty* 8,702 126 Old Point Financial 349 11 Old Second Bancorp 1,113 48 Omega Financial 1,135 37 OMEGA Healthcare Investors (REIT) 2,966 23 Oneida Financial 231 5 Oriental Financial Group 2,063 50 Orleans Homebuilders* 516 6 PAB Bankshares 1,093 15 Pacific Capital Bancorp 5,142 157 Pacific Northwest Bancorp 2,498 89 Pacific Union Bank 760 14 Parkvale Financial 660 17 Parkway Properties (REIT) 1,431 63 Partners Trust Financial Group 1,072 24 Patriot Bank - Pennsylvania 1,062 20 Peapack-Gladstone Financial 1,051 33 Penn-America Group 1,362 20 PennFed Financial Services 691 20 PennRock Financial Services 1,163 33 Penns Woods Bancorp 423 18 Pennsylvania (REIT) 2,192 73 Peoples Bancorp 1,601 43 Peoples Holding Company 838 38 PFF Bancorp 2,030 65 Philadelphia Consolidated Holding* 2,867 132 Phoenix Companies 14,767 171 Pico Holdings* 1,016 13 PMA Capital 3,169 $ 40 Post Properties (REIT) 4,278 116 Prentiss Properties Trust (REIT) 4,499 139 Presidential Life 3,193 48 Price Legacy (REIT)* 7,098 25 PrivateBancorp 1,556 52 Proassurance* 4,188 108 Prosperity Bancshares 2,036 43 Provident Bancorp 526 22 Provident Bankshares 3,486 98 Provident Financial Holdings 555 17 Provident Financial Services 7,086 136 PS Business Parks (REIT) 1,979 75 Quaker City Bancorp 874 35 R&G Financial 2,704 79 RAIT Investment Trust (REIT) 3,097 71 Ramco-Gershenson Properties Trust (REIT) 1,666 42 Reckson Associates Realty (REIT) 7,617 176 Redwood Trust (REIT) 2,072 88 Republic Bancorp 7,935 106 Republic Bancorp, Cl A 1,295 25 Republic Bancshares 1,195 34 Resources Bankshares 697 20 Riggs National 2,508 40 RLI 2,763 91 Royal Bancshares of Pennsylvania, Cl A 670 18 S Y Bancorp 1,486 28 S&T Bancorp 3,862 110 Safety Insurance Group 1,559 24 Sanders Morris Harris Group 1,540 14 Sandy Spring Bancorp 2,182 71 Santander Bancorp 426 8 Saul Centers (REIT) 2,841 75 Saxon Capital* 4,210 72 Seacoast Banking 1,712 30 Seacoast Financial Services 4,155 86 Second Bancorp 1,280 35 Security Bank 568 17 Selective Insurance Group 4,087 122 Senior Housing Properties Trust (REIT) 7,126 103 Shore Bancshares 825 28 Sierra Bancorp 814 13 Silicon Valley Bancshares* 4,905 136 Simmons First National, Cl A 2,189 52 Sizeler Property Investors (REIT) 1,810 19 SL Green Realty 4,120 149 Sound Federal Bancorp 2,087 31 Soundview Technology Group* 2,487 24 South Financial Group 7,321 182 Southern Financial Bancorp 833 33 Southside Bancshares 1,421 23 Southwest Bancorp 1,554 26 Southwest Bancorp of Texas 4,434 162 Sovran Self Storage (REIT) 1,871 62 St. Francis Capital 1,130 33 State Auto Financial 1,998 50 State Bancorp 1,553 31 State Financial Services, Cl A 802 20 Staten Island Bancorp 8,322 162
29
DESCRIPTION SHARES VALUE (000) - ---------------------------------------------------------------------------------- Sterling Bancorp 1,997 $ 54 Sterling Bancshares 5,854 70 Sterling Financial 2,608 66 Sterling Financial* 2,534 71 Stewart Information Services* 3,210 91 Suffolk Bancorp 1,616 54 Summit Bancshares 740 20 Summit Properties (REIT) 3,545 81 Sun Bancorp 748 14 Sun Bancorp* 1,103 24 Sun Communities (REIT) 1,978 78 Susquehanna Bancshares 5,810 149 SWS Group 2,191 43 Tanger Factory Outlet Centers (REIT) 980 36 Taragon Realty Investors* 997 15 Taubman Centers (REIT) 6,737 132 Taylor Capital Group 496 11 Texas Regional Bancshares, Cl A 3,555 120 The Trust Company of New Jersey 2,742 88 TierOne* 3,341 70 Tompkins Trustco 1,202 55 Town & Country Trust (REIT) 2,370 56 Trammell Crow* 4,854 60 Transcontinental Realty Investors (REIT)* 1,258 15 Triad Guaranty* 1,199 59 TriCo Bancshares 820 23 Troy Financial 987 35 TrustCo Bank Corporation of New York 11,687 144 U.S. Restaurant Properties (REIT) 2,822 46 UCBH Holdings 5,867 177 UICI* 5,803 73 UMB Financial 2,569 121 Umpqua Holdings 5,431 103 Union Bankshares 1,158 35 United Community Banks 3,701 102 United Community Financial 4,593 45 United Fire & Casualty 1,104 40 United Mobile Homes (REIT) 740 11 United National Bancorp 2,891 96 United Panam Financial* 624 11 United Security Bancshares 960 24 United Security Bancshares - California 518 13 Universal American Financial* 4,033 36 Universal Health Realty Income Trust (REIT) 1,718 47 Unizan Financial 3,348 67 Urstadt Biddle Properties, Cl A (REIT) 3,314 45 USB Holding 2,016 35 USI Holdings* 3,439 45 Ventas (REIT) 11,068 189 Virginia Commerce Bancorp* 765 17 Virginia Financial Group 1,089 33 W Holding 6,717 120 Walter Industries 4,820 52 Warwick Community Bancorp 440 12 Washington Real Estate Investment Trust (REIT) 5,397 157 Washington Trust Bancorp 2,053 49 Wayne Bancorp 946 27 Waypoint Financial 4,925 99 Wesbanco 2,716 64 West Bancorporation 2,447 $ 42 West Coast Bancorp 2,377 46 Westcorp 2,610 91 Western Sierra Bancorp* 548 20 Westfield Financial 750 17 WFS Financial* 1,926 71 Willow Grove Bancorp 1,663 27 Winston Hotels (REIT) 2,650 24 Wintrust Financial 2,705 102 World Acceptance* 2,314 31 WSFS Financial 1,431 60 Yadkin Valley Bank & Trust 1,134 20 Yardville National Bancorp 1,454 30 Zenith National Insurance 1,324 37 ------------- 26,062 ------------- HEALTH CARE - 12.5% 1-800 Contacts* 848 17 AAI Pharma* 2,067 35 Abgenix* 13,787 200 Able Laboratories* 1,947 36 Accredo Health* 7,489 210 Aclara Biosciences* 3,602 14 Adolor* 4,951 91 Advanced Medical Optics* 4,285 77 Advanced Neuromodulation Systems* 2,849 114 Advisory Board* 1,448 66 Aksys* 4,134 41 ALARIS Medical* 2,223 37 Albany Molecular Research* 3,885 58 Alexion Pharmaceuticals* 2,422 40 Align Technology* 6,937 87 Alkermes* 7,328 101 Alliance Imaging* 2,154 7 Alpharma, Cl A 6,073 113 Alteon* 5,189 10 American Healthways* 2,056 86 American Medical Systems* 3,123 68 AMERIGROUP* 3,235 144 AMN Healthcare Services* 2,675 43 Amsurg, Cl A* 2,699 89 Angelica 1,309 25 Antigenetics* 2,996 37 Aphton* 3,178 18 Applera* 11,299 132 Arena Pharmaceuticals* 2,896 21 Ariad Pharmaceuticals* 5,434 33 Arrow International 3,346 77 Arthrocare* 2,707 48 Aspect Medical Systems* 1,387 14 AtheroGenics* 5,710 96 Atrix Laboratories* 3,037 63 Avant Immunotherapeutics* 9,572 23 AVI BioPharma* 3,231 17 Bentley Pharmaceuticals* 1,865 30 Beverly Enterprises* 15,564 92 Biolase Technology* 2,783 32 BioMarin Pharmaceutical* 9,944 76 Biopure* 6,167 40 BioReliance* 759 19
The accompanying notes are an integral part of the financial statements. 30
DESCRIPTION SHARES VALUE (000) - ---------------------------------------------------------------------------------- Biosite* 1,638 $ 46 Bone Care International* 1,367 17 Bradley Pharmaceuticals* 1,179 32 Bruker Biosciences* 3,420 15 Candela* 1,174 15 Cantel Medical* 971 13 Cardiac Science* 7,749 32 CardioDynamics International* 5,061 23 Cell Genesys* 5,387 68 Cell Therapeutics* 4,886 56 Centene* 2,301 70 Cerner* 4,439 137 Cerus* 2,153 10 Chattem* 2,133 30 Cholestech* 2,034 15 CIMA Labs* 2,121 59 Ciphergen Biosystems* 3,174 39 Closure Medical* 959 23 Collagenex Pharmaceuticals* 1,012 11 Columbia Laboratories* 5,157 62 Conceptus* 2,562 34 CONMED* 4,536 94 Connetics* 4,380 79 Cooper 4,852 198 Corixa* 6,313 50 Corvel* 926 33 Covance* 9,635 216 Cross Country Healthcare* 3,743 53 Cryolife* 2,430 15 CTI Molecular Imaging* 3,664 54 Cubist Pharmaceuticals* 5,233 56 CuraGen* 6,684 34 Curative Health Services* 1,604 29 CV Therapeutics* 4,439 98 Cyberonics* 3,119 96 Cytyc* 17,585 264 D & K Healthcare Resources 1,839 26 Dade Behring Holdings* 6,284 178 Datascope 1,516 47 Decode Genetics* 7,110 33 Del Laboratories* 622 18 Dendreon* 1,093 10 Diagnostic Products 3,048 111 Digene* 2,112 86 Discovery Laboratories* 4,179 30 Diversa* 3,017 23 DJ Orthopedics* 1,042 15 Dov Pharmaceutical* 1,456 26 Drugstore.com* 4,680 36 Durect* 4,104 14 Dynacq International* 965 17 Encysive Pharmaceuticals* 6,546 41 Enzo Biochem* 3,517 69 Enzon* 6,817 79 EPIX Medical* 1,987 34 eResearch Technology* 2,806 98 Esperion Therapeutics* 4,400 85 Exact Sciences* 2,275 31 Exactech* 885 14 Exelixis* 8,869 $ 63 First Horizon Pharmaceutical* 2,990 19 Gene Logic* 4,592 22 Genencor International* 1,369 21 Genesis Health Ventures* 3,781 92 Gen-Probe* 3,733 202 Genta* 7,368 93 Gentiva Health Services* 3,713 43 Geron* 4,374 60 GTC Biotherapeutics* 3,696 11 Guilford Pharmaceuticals* 3,461 21 Haemonetics* 2,371 56 Hanger Orthopedic Group* 3,305 51 Healthcare Services Group 1,467 24 HealthExtras* 2,289 20 Hi-Tech Pharmaceutical* 660 15 Hollis-Eden Pharmaceuticals* 949 23 Hologic* 2,913 40 Hooper Holmes 10,523 70 ICU Medical* 1,561 42 IGEN International* 2,814 163 ILEX Oncology* 5,130 85 Immucor* 2,005 54 ImmunoGen* 6,407 29 Immunomedics* 7,336 54 IMPAC Medical Systems* 937 17 Impath* 2,433 4 Impax Laboratories* 4,055 51 INAMED* 2,787 205 Incyte Genomics* 12,905 59 Indevus Pharmaceuticals* 5,552 30 Inspire Pharmaceuticals* 4,919 85 Integra LifeSciences* 2,788 79 InterMune* 3,927 75 Interpore International* 2,648 41 Intuitive Surgical* 3,553 59 Invacare 4,119 155 Inveresk Research Group* 4,384 87 Inverness Medical Innovations* 1,500 38 Isis Pharmaceuticals* 6,966 45 I-Stat* 2,352 31 Kensey Nash* 1,108 26 Kindred Healthcare* 1,798 67 Kos Pharmaceuticals* 1,702 59 Kosan Biosciences* 2,720 22 K-V Pharmaceutical, Cl A* 5,048 114 Kyphon* 2,700 53 La Jolla Pharmaceutical* 6,293 25 LabOne* 1,178 27 Lannet* 876 15 Laserscope* 1,971 23 Lexicon Genetics* 4,898 25 Lifepoint Hospitals* 5,879 141 Ligand Pharmaceuticals* 8,943 115 Luminex* 3,295 22 Martek Bioscience* 3,553 187 Matria Healthcare* 1,400 24 Maximus* 2,337 81 Maxygen* 4,375 45
31
DESCRIPTION SHARES VALUE (000) - ---------------------------------------------------------------------------------- Medarex* 11,554 $ 69 Medical Action Industries* 1,087 14 Medical Staffing Network Holdings* 1,807 14 Medicines* 6,544 170 Mentor 5,512 126 Meridian Bioscience 1,515 15 Merit Medical Systems* 2,445 54 MGI Pharma* 3,977 156 Micro Therapeutics* 1,381 7 MIM* 3,404 26 Mine Safety Appliances 992 54 Molecular Devices* 2,110 37 Myriad Genetics* 4,853 55 NABI Biopharmaceuticals* 6,991 59 National Healthcare* 1,033 15 NDCHealth 5,468 115 Nektar Therapeutics* 7,358 94 NeoPharm* 2,052 31 Neose Technologies* 2,153 20 Noven Pharmaceuticals* 3,048 35 Novoste* 2,389 11 NPS Pharmaceuticals* 4,612 128 Nuvelo* 6,449 17 Ocular Sciences* 2,748 61 Odyssey Healthcare* 5,015 150 Onyx Pharmaceuticals* 3,737 81 Option Care* 2,000 24 Orasure Technologies* 5,354 51 Orthodontic Centers of America* 7,426 59 OrthoLogic* 4,968 27 OSI Pharmaceuticals* 6,072 197 Osteotech* 2,266 19 Owens & Minor 4,938 119 Pain Therapeutics* 2,667 16 Palatin Technologies* 6,217 30 PAREXEL International* 3,791 58 PDI* 1,080 26 Pediatrix Medical Group* 3,697 170 Penwest Pharmaceuticals* 2,063 44 Peregrine Pharmaceuticals* 17,662 38 Perrigo 9,583 122 Per-Se Technologies* 4,143 66 Pharmacopeia* 3,608 46 PolyMedica 2,666 71 Possis Medical* 2,379 37 POZEN* 3,542 63 Praecis Pharmaceuticals* 6,945 47 Priority Healthcare, Cl B* 5,138 106 Progenics Pharmaceutical* 1,275 22 Province Healthcare* 7,192 93 PSS World Medical* 10,641 94 Quidel* 4,142 28 Regeneration Technologies* 3,523 32 Regeneron Pharmaceutical* 5,370 95 RehabCare Group* 2,495 43 Repligen* 4,684 25 Retractable Technologies* 959 6 Salix Pharmaceuticals* 2,677 52 Savient Pharmaceuticals* 10,988 55 SciClone Pharmaceuticals* 5,888 $ 47 Seattle Genetics* 3,297 20 Select Medical* 3,620 104 Serologicals* 3,350 44 SFBC International* 846 24 Sierra Health Services* 3,656 75 Sirna Therapeutics* 1,701 10 Sola International* 3,398 54 Sonosite* 2,166 43 Specialty Laboratories* 1,091 14 Staar Surgical* 2,533 27 Stewart Enterprises, Cl A* 17,384 66 Sunrise Assisted Living* 2,600 68 SuperGen* 4,560 34 SuriModics* 2,067 55 Sybron Dental Specialties* 5,989 150 Synovis Life Technologies* 1,286 31 Tanox* 3,742 75 Techne* 6,393 203 Telik* 5,038 101 Theragenics* 4,536 26 Therasense* 3,609 45 Third Wave Technologies* 3,735 12 Thoratec* 7,484 127 Transkaryotic Therapies* 4,618 48 Trimeris* 2,134 54 TriPath Imaging* 3,394 30 Tularik* 6,887 68 U.S. Oncology* 10,771 79 U.S. Physical Therapy* 1,884 23 United Surgical Partners* 2,682 76 United Therapeutics* 2,674 60 VCA Antech* 5,361 126 Ventana Medical Systems* 1,843 74 Vertex Pharmaceuticals* 12,035 148 Viasys Healthcare* 4,678 94 Vicuron Pharmaceuticals* 6,412 113 Virbac* 1,009 7 VistaCare, Cl A* 1,702 53 VISX* 6,375 121 Vital Images* 1,376 26 Vital Signs 831 24 Vivus* 5,904 21 Wellpoint Health Networks* 320 25 West Pharmaceutical Services 1,551 49 Wright Medical Group* 2,311 58 Young Innovations 550 18 Zoll Medical* 1,269 41 Zymogenetics* 1,817 27 ------------- 15,992 ------------- INDUSTRIALS - 13.5% A. S. V.* 1,062 20 A.O. Smith 2,564 72 AAON* 1,399 23 AAR* 4,977 40 ABM Industries 5,567 79 ABX Air* 7,169 18 Aceto 1,395 20 ACME Communication* 1,112 8
The accompanying notes are an integral part of the financial statements. 32
DESCRIPTION SHARES VALUE (000) - ---------------------------------------------------------------------------------- Actuant, Cl A* 1,637 $ 92 Acuity Brands 6,516 118 Administaff* 2,897 26 Advanced Energy Industries* 2,636 50 Aftermarket Technology* 2,253 26 Airtran Holdings* 10,350 173 Alamo Group 850 12 Alaska Air Group* 3,595 100 Albany International, Cl A 4,167 129 Alderwoods Group* 5,711 44 Alexander & Baldwin 6,489 182 Ambassadors International 822 10 America West Holdings, Cl B* 4,618 45 American Woodmark 862 39 Ampco-Pittsburgh 730 9 AMR* 24,527 281 Apogee Enterprises 3,492 36 Applied Signal Technology 1,306 26 Arbitron* 4,670 165 Arkansas Best 3,216 88 Armor Holdings* 3,013 50 Artesyn Technologies* 4,786 36 Astec Industries* 2,361 24 Atlantic Coast Airline Holdings* 6,150 52 Aviall* 2,925 36 Baldor Electric 4,487 95 Banta 3,542 128 Barnes Group 1,804 47 Belden 3,535 62 BHA Group Holdings 507 12 Blount International* 906 4 Bowne & Company 4,972 74 Brady, Cl A 2,665 85 Briggs & Stratton 3,392 199 Bright Horizons Family Solutions* 2,255 90 Brinks 8,514 148 C&D Technologies 3,246 61 Career Education* 396 18 Cascade 2,036 45 Casella Waste Systems* 1,879 23 CCC Information Services Group* 1,876 31 CDI 1,807 49 Central Parking 2,679 33 Century Business Services* 12,561 53 Ceradyne* 1,299 34 Checkpoint Systems* 4,881 77 Choice Hotels International* 3,032 88 Circor International 1,884 36 CLARCOR 3,907 152 Clean Harbors* 1,188 5 Coinstar* 3,218 43 Collins & Aikman* 4,832 16 Consolidated Graphics* 1,647 42 Consolidated Tomoka Land 873 25 Continental Airlines, Cl B* 10,311 171 Copart* 10,662 115 Cornell Companies* 1,822 30 CoStar Group* 1,966 51 Covenant Transport, Cl A* 1,163 21 CPI 1,275 $ 23 Cubic 2,350 59 CUNO* 2,206 86 Curtiss-Wright 1,243 88 Darling International* 8,740 23 DHB Industries* 3,137 14 Dollar Thrifty Automotive* 4,125 94 Dominion Homes* 700 18 Drew Industries* 1,050 19 DRS Technologies* 3,477 84 Ducommun* 1,035 17 Duratek* 1,020 9 Dycom Industries* 7,513 153 EDO 2,371 48 eFunds* 7,333 91 EGL* 5,749 105 Electro Scientific Industries* 4,120 87 ElkCorp 2,892 68 Emcor Group* 2,018 86 Encore Wire* 1,553 21 Energy Conversion Devices* 2,579 27 Engineered Support Systems 1,756 106 Ennis Business Forms 2,561 34 ENPRO Industries* 3,026 29 ESCO Technologies* 1,801 82 Esterline Technologies* 3,158 61 ExpressJet Holdings* 4,446 61 Fairchild, Cl A* 1,816 9 First Consulting Group* 2,894 14 Fleetwood Enterprises* 5,638 52 Florida East Coast Industries, Cl A 2,169 62 Flowserve* 7,980 162 Forward Air* 1,676 46 Frontier Airlines* 4,649 77 FTI Consulting* 6,465 112 FuelCell Energy* 5,330 62 Gardner Denver* 2,468 52 GenCorp 4,878 44 General Cable* 5,339 42 Genesee & Wyoming, Cl A* 1,784 42 Genlyte Group* 1,851 82 GEVITY HR 2,092 31 Global Power Equipment* 3,965 21 Gorman-Rupp 993 22 Granite Construction 5,025 94 Greenbrier Companies* 657 9 Greif Brothers, Cl A 2,080 54 Griffon* 5,179 93 Gundle Environmental Systems* 950 15 Headwaters* 3,845 62 Heartland Express 4,558 109 Hecla Mining* 19,025 100 HEICO 2,002 27 Heidrick & Struggles International* 2,410 41 Herley Industries* 1,650 29 Hexcel* 4,994 29 Hollinger International 6,206 77 Hudson Highland Group* 1,095 21 ICT Group* 885 9
33
DESCRIPTION SHARES VALUE (000) - ---------------------------------------------------------------------------------- IDEX 4,329 $ 158 II-VI* 1,649 33 Imagistics International* 2,311 67 infoUSA* 4,370 33 Insurance Auto Auctions* 1,415 16 Integrated Electrical Services* 5,224 36 Interpool 1,150 18 Invision Technologies* 2,542 62 Ionics* 2,689 66 Jacuzzi Brands* 13,529 84 JLG Industries 7,960 92 John H. Harland 4,115 109 Joy Global* 7,504 118 Kadant* 1,773 34 Kaman 3,432 44 Kansas City Southern Industries* 9,670 107 Kaydon 4,153 99 Kennametal 5,220 195 Keystone Automotive Industries* 1,743 38 Kirby* 2,810 81 Knight Transportation* 3,808 95 Korn Ferry International* 6,026 50 Kroll* 5,660 105 KVH Industries* 1,434 36 Labor Ready* 7,472 75 Landauer 1,252 44 Landstar* 2,310 141 Lawson Products 650 17 Learning Tree International* 1,455 24 Lennox International 6,616 97 Lightbridge* 4,142 39 Lincoln Electric Holdings 4,784 106 Lindsay Manufacturing 1,745 35 Littelfuse* 2,896 67 LSI Industries 2,232 31 Lydall* 2,310 28 Mail-Well* 5,231 18 Mair Holdings* 1,344 9 Manitowoc 4,664 101 Manufacturers' Services* 2,385 12 Marine Products 1,260 19 MasTec* 2,917 28 McGrath Rentcorp 1,189 33 Mediacom Communications* 7,408 50 Medis Technologies* 1,807 18 MedQuist* 1,510 29 MemberWorks* 1,142 36 Mercury Computer Systems* 3,161 67 Mesa Air Group* 3,902 43 Milacron 5,260 12 Mobile Mini* 2,150 41 Modtech Holdings* 1,376 11 Monro Muffler Brake* 1,022 30 MPS Group* 14,790 133 MTC Technologies* 874 20 Mueller Industries* 5,081 129 Nacco Industries, Cl A 735 53 National Presto Industries 673 23 Navigant Consulting* 6,558 81 Navigant International* 1,987 $ 28 NCI Building Systems* 3,005 60 NCO Group* 2,687 63 Nordson 3,811 99 Northwest Airlines* 9,154 89 Old Dominion Freight Lines* 2,117 62 Orbital Sciences* 7,224 67 Oshkosh Truck 4,746 188 Overseas Shipholding Group 2,365 61 P A M Transportation Services* 896 18 Pacer International* 3,450 69 Paxar* 4,109 53 Pegasus Solutions* 3,664 51 Penn Engineering & Manufacturing 1,483 23 Perini* 2,726 19 Portfolio Recovery Associates* 1,663 42 Power-One* 10,220 105 Prepaid Legal Services* 2,324 54 PRG-Schultz International* 5,780 33 PRIMEDIA* 26,281 75 Princeton Review* 2,595 17 Quanta Services* 11,481 95 Quixote 947 24 RailAmerica* 4,537 39 Raven Industries 964 24 Rayovac* 4,806 70 Regal Beloit 3,553 72 Reliance Steel & Aluminum 3,626 80 Resources Connection* 2,916 71 Right Management Consultants* 2,684 49 Roadway Express 1,810 88 Robbins & Myers 1,661 37 Rollins 2,917 52 Roto Rooter 1,517 54 ScanSoft* 13,275 56 Schawk 1,261 15 Schnitzer Steel Industries, Cl A 1,370 41 SCS Transportation* 2,191 33 Sequa* 556 24 Shaw Group* 6,342 67 Simpson Manufacturing* 2,209 90 SkyWest 8,949 155 Spherion* 9,296 65 SPS Technologies* 1,264 57 Standard Register 1,783 30 Standex International 1,639 40 Stewart & Stevenson Services 4,215 63 Strattec Security* 458 22 Strayer Education 1,667 161 SureBeam* 11,145 16 Sylvan Learning Systems* 5,207 142 Technical Olympic USA* 498 14 Tecumseh Products, Cl A 2,408 90 Teletech Holdings* 5,129 33 Tennant 1,283 47 Tenneco Automotive* 6,772 43 Terex* 6,861 127 Tetra Technologies* 7,862 157 Thomas & Betts* 6,692 106
The accompanying notes are an integral part of the financial statements. 34
DESCRIPTION SHARES VALUE (000) - ---------------------------------------------------------------------------------- Thomas Industries 1,443 $ 41 Thomas Nelson 1,348 19 TRC* 1,718 28 Tredegar 4,529 68 Trex* 1,168 36 Trinity Industries 5,515 143 Triumph Group* 2,112 63 U.S. Xpress Enterprises* 934 11 UniFirst 1,426 34 United Capital* 484 9 United Industrial 1,434 23 United Rentals* 8,966 144 United Stationers* 4,786 180 Universal Forest Products 2,516 61 UNOVA* 7,216 106 URS* 2,558 50 USF 4,238 133 USG* 5,736 99 Valence Technology* 7,683 26 Valmont Industries 2,138 42 ValueClick* 10,359 87 Vicor* 2,882 27 Volt Information Sciences* 1,272 21 Wabash National* 4,025 64 Washington Group International* 3,733 101 Waste Connections* 3,964 139 Watsco 2,859 55 Watson Wyatt & Company Holdings* 4,988 112 WD-40 Company 2,406 76 William Lyon Homes* 771 39 Wilson Greatbatch Technologies* 3,119 112 Woodward Governor 1,389 61 Yellow* 4,663 139 York International 6,224 215 ------------- 17,351 ------------- INFORMATION TECHNOLOGY - 19.3% Actel* 3,444 83 ActivCard* 5,185 43 Activision* 13,779 165 Adaptec* 16,820 127 Advanced Digital Information* 9,711 136 Advent Software* 5,018 81 Aeroflex* 8,198 73 Agile Software* 6,777 65 Agilysys 4,179 37 Akamai Technologies* 17,648 76 Alliance Semiconductor* 3,181 17 Alloy* 6,705 38 Allscripts Healthcare Solutions* 3,680 15 Altiris* 1,324 35 American Management Systems* 6,616 84 Analogic 1,139 55 Anaren Microwave* 3,408 43 Andrew* 23,166 285 Anixter International* 4,883 111 Ansoft* 1,013 10 ANSYS* 2,324 83 Anteon International* 2,790 85 Applied Films* 1,748 52 aQuantive* 6,157 $ 57 Ariba* 44,945 137 Arris Group* 7,864 45 Artisan Components* 2,455 41 Ascential Software* 9,094 169 AsiaInfo Holdings* 4,402 30 Ask Jeeves* 5,424 94 Aspect Communication* 4,684 39 Aspen Technology* 5,421 21 Asyst Technologies* 6,587 93 Atari* 1,179 5 ATMI* 4,200 106 Audiovox* 2,608 33 Autobytel* 4,132 39 Avanex* 9,057 44 Avid Technology* 4,440 235 Axcelis Technologies* 15,431 127 Bankrate* 833 12 BARRA* 2,202 83 BEI Technologies 1,631 25 Bel Fuse 1,440 38 Benchmark Electronics* 3,866 163 Black Box 2,665 106 Borland Software* 11,099 102 Brillian* 807 7 Broadvision* 3,792 19 Brooks Automation* 6,015 126 Cable Design Technologies* 6,289 50 Cabot Microelectronics* 2,882 161 Caci International, Cl A* 4,509 193 Catapult Communications* 885 11 C-COR.net* 4,818 32 Centillium Communications* 4,599 33 Cepheid* 4,245 20 Charles River Associates* 1,079 31 ChipPAC, Cl A* 7,489 44 CIBER* 7,931 60 Cirrus Logic* 10,862 60 CMGI* 57,891 90 CNET Networks* 15,842 112 Cognex 5,319 140 Coherent* 4,598 113 Cohu 3,178 62 CommScope* 7,626 92 Compucom Systems* 3,474 15 Computer Horizons* 4,631 17 Computer Network Technology* 4,031 35 Computer Programs & Systems 899 16 Comtech Telecommunications* 1,737 42 Concord Communications* 2,408 32 Concur Technologies* 3,388 40 Concurrent Computer* 9,277 35 Conexant Systems* 42,002 238 Convera* 1,653 7 Corvis* 47,968 61 Cray* 10,248 113 Credence Systems* 9,901 114 CSG Systems International* 8,204 121 CTS 5,054 62
35
DESCRIPTION SHARES VALUE (000) - ---------------------------------------------------------------------------------- CyberGuard* 1,596 $ 15 Cymer* 5,417 223 Daktronics* 2,176 35 Datastream Systems* 2,655 21 Dendrite International* 4,654 71 Digimarc* 1,408 21 Digital Insight* 4,554 91 Digital River* 4,269 117 DigitalThink* 5,206 13 Digitas* 2,389 17 Diodes* 664 14 Dionex* 2,614 103 Ditech Communications* 3,950 35 Documentum* 6,900 147 Dot Hill Systems* 4,181 58 Drexler Technology* 1,183 17 DSP Group* 4,300 107 DuPont Photomasks* 1,797 41 E.piphany* 8,233 41 EarthLink* 18,482 152 Echelon* 4,244 51 Eclipsys* 5,451 87 eCollege.com* 1,804 36 Electro Rent* 2,655 33 Electronics for Imaging* 7,277 170 Embarcadero Technologies* 2,192 22 EMS Technologies* 1,599 27 Entegris* 8,279 94 Enterasys Networks* 31,859 127 Entrust* 7,399 36 Epicor Software* 5,928 53 EPIQ Systems* 1,941 33 ESS Technology* 4,512 49 eUniverse* (c) 2,194 5 Exar* 6,277 89 Excel Technologies* 1,345 34 Extreme Networks* 15,129 95 F5 Networks* 3,486 67 FalconStor Software* 5,023 31 Fargo Electronics* 1,594 20 FEI* 3,836 90 Filenet* 5,329 107 FindWhat.com* 1,641 28 Finisar* 21,614 49 FLIR Systems* 5,171 132 Forrester Research* 2,105 30 Franklin Electric 1,331 74 FreeMarkets* 5,474 43 Gartner, Cl A* 12,252 135 Gateway* 34,000 192 General Binding* 831 9 Genesis Microchip* 4,892 55 Gerber Scientific* 3,188 23 Global Imaging Systems* 2,132 52 GlobespanVirata* 16,554 120 Group 1 Software* 1,404 25 GSI Commerce* 2,280 23 Handspring* 8,222 9 Harmonic* 8,940 56 Harris Interactive* 6,280 $ 44 Helix Technology 4,093 67 Homestore* 15,543 43 Hutchinson Technology* 3,589 119 Hypercom* 3,821 21 Hyperion Solutions* 5,714 165 Identix* 14,954 78 IDX Systems* 2,623 61 iGATE* 3,224 19 Inet Technologies* 1,919 25 InFocus* 5,479 27 Informatica* 11,048 82 InfoSpace* 4,040 82 Innovex* 2,350 23 Insituform Technologies, Cl A* 3,558 63 Integral Systems* 1,467 27 Integrated Defense Technologies* 1,467 25 Integrated Silicon Solution* 4,236 42 InteliData Technologies* 7,247 17 InterCept* 2,743 37 Intergraph* 7,225 168 Interland* 4,016 31 Intermagnetics General* 2,434 54 Internet Security Systems* 5,829 73 Inter-Tel 2,750 68 InterVoice* 5,047 45 Interwoven* 15,224 40 Iomega* 8,052 90 iPayment* 785 18 Itron* 3,013 60 IXIA* 3,515 38 IXYS* 2,704 25 JDA Software* 4,475 67 JNI* 3,477 24 Kana Software* 3,560 14 Keane* 8,098 103 Keithley Instruments 1,819 26 KEMET* 13,524 172 Keynote Systems* 2,858 33 KFX* 3,716 19 Komag* 3,529 62 Kopin* 10,887 75 Kronos* 3,108 164 Kulicke & Soffa* 8,555 93 Lattice Semiconductor* 15,863 113 Lawson Software* 6,262 44 Legato Systems* 13,554 152 Lexar Media* 8,364 143 Lifeline Systems* 721 23 Lionbridge Technologies* 3,337 25 LookSmart* 11,968 38 LTX* 7,774 88 Magma Design Automation* 3,283 64 Manhattan Associates* 3,414 88 ManTech International* 2,026 50 Manugistics Group* 11,131 61 MAPICS* 2,638 26 MarketWatch.com* 910 8 MatrixOne* 6,356 31
The accompanying notes are an integral part of the financial statements. 36
DESCRIPTION SHARES VALUE (000) - ---------------------------------------------------------------------------------- Mattson Technology* 4,211 $ 38 Mentor Graphics* 10,575 185 Methode Electronics, Cl A 4,928 58 Metrologic Instruments* 424 15 Micrel* 8,779 107 Micro Systems* 2,435 83 MicroAge* (c) 3,579 -- Micromuse* 8,580 70 Microsemi* 4,543 69 MicroStrategy* 1,488 68 Mindspeed Technologies* 16,755 90 MKS Instruments* 4,099 89 Mobius Management Systems* 1,151 9 Monolithic System Technology* 3,327 28 Moog, Cl A* 2,837 111 MRO Software* 2,835 39 MRV Communications* 16,360 46 MSC.Software* 3,700 27 MTS Systems 3,118 47 Mykrolis* 5,201 63 Nassda* 2,100 17 National Processing* 1,088 21 Neoforma* 1,222 17 Neoware Systems* 2,077 35 Net2Phone* 3,825 24 Netegrity* 4,868 49 NetIQ* 8,368 100 NetRatings* 1,589 15 NetScout Systems* 2,987 15 Network Equip Technologies* 3,400 31 Network Plus* (c) 1,155 -- New England Business Service 1,577 42 New Focus* 8,455 38 Newport* 6,069 86 NIC* 4,609 22 Nuance Communications* 870 5 Nyfix* 3,869 22 Omnicell* 2,129 35 OmniVision Technologies* 3,226 136 ON Semiconductor* 4,525 19 Openwave System* 28,339 120 Oplink Communications* 21,201 54 OPNET Technologies* 1,705 21 Opsware* 7,499 55 Optical Communication Products* 2,480 6 OSI Systems* 1,943 34 Overland Storage* 1,161 17 Overture Services* 9,992 265 Packeteer* 4,130 50 Palm* 4,560 89 Parametric Technology* 33,552 105 Park Electrochemical 2,704 62 ParthusCeva* 2,169 19 PC-tel* 2,904 31 PDF Solutions* 2,258 25 PEC Solutions* 1,346 20 Pegasus Communications* 464 7 Pegasystems* 1,524 11 Pemstar* 3,822 14 Pericom Semiconductor* 3,162 $ 32 Perot Systems, Cl A* 11,492 115 Photon Dynamics* 2,508 73 Photronics* 4,476 95 Pinnacle Systems* 9,038 76 Pixelworks* 5,366 46 Planar Systems* 2,071 44 Plantronics* 6,287 150 Plexus* 6,284 98 Plug Power* 3,647 19 Portal Software* 4,388 64 Powell Industries* 1,047 18 Power Integrations* 4,031 134 Powerwave Technologies* 10,350 69 PracticeWorks* 2,791 60 Presstek* 4,800 35 Progress Software* 3,863 83 ProQuest* 3,727 98 Proxim, Cl A* 17,978 27 Pumatech* 5,481 26 QAD* 1,624 18 Quality Systems* 499 20 Quantum* 22,154 68 Quest Software* 6,161 75 Radiant Systems* 2,583 16 RadiSys* 2,656 48 Rainbow Technologies* 3,639 33 Register.com* 4,829 22 REMEC* 8,959 91 Renaissance Learning* 1,153 27 Research Frontiers* 1,517 17 Retek* 8,441 57 RF Micro Devices* 26,957 250 Richardson Electronics 830 9 Riverstone Networks* 19,319 19 Rofin-Sinar Technologies* 1,895 40 Rogers* 2,356 73 Roper Industries 4,294 187 Roxio* 4,316 37 RSA Security* 7,476 107 Rudolph Technologies* 1,722 33 S1* 10,255 52 Safeguard Scientifics* 18,714 64 SAFENET* 1,671 60 SAFLINK* 3,888 18 Sanchez Computer Associates* 2,178 8 Sapient* 11,436 41 SBS Technologies* 1,934 21 ScanSource* 1,580 58 SeaChange International* 3,515 44 Secure Computing* 5,016 59 SeeBeyond Technologies* 7,094 18 Semitool* 2,503 20 Semtech* 9,210 170 SERENA Software* 3,566 66 Sigma Designs* 2,496 21 Silicon Graphics* 30,664 29 Silicon Image* 10,880 49 Silicon Storage Technology* 13,484 118
37
DESCRIPTION SHARES VALUE (000) - ---------------------------------------------------------------------------------- Siliconix* 886 $ 45 SimpleTech* 1,200 9 SIPEX* 3,755 29 Skyworks Solutions* 21,748 198 SM & A* 1,905 22 Sohu.com* 2,647 82 SonicWALL* 7,619 44 SpectraLink* 2,409 45 SPSS* 1,887 32 SRA International, Cl A* 1,328 50 SS&C Technologies 1,123 22 Standard Microsystems* 1,802 49 StarTek 1,615 52 Stellent* 2,731 21 StorageNetworks* 15,089 25 Stratasys* 681 29 Superconductor Technologies* 7,709 30 Supertex* 1,332 24 Supportsoft* 3,657 41 Sybase* 13,670 233 Sykes Enterprises* 3,629 24 Symmetricom* 5,681 36 Synaptics* 2,402 26 Synplicity* 1,941 11 Syntel 974 22 Sypris Solutions 788 11 Systems & Computer Technologies* 4,977 52 Take-Two Interactive Software* 6,057 207 TALX 2,009 49 Technitrol* 6,304 116 Tekelec* 7,983 125 Teledyne Technologies* 5,900 86 Terayon Communications* 10,259 59 TheStreet.com* 1,922 9 THQ* 5,965 98 Three Five Systems* 3,229 18 TIBCO Software* 13,163 70 Tier Technologies* 2,177 19 Titan* 12,456 260 Tollgrade Communications* 2,004 32 Tradestation Group* 2,571 19 Transaction Systems Architects, Cl A* 5,781 96 Transmeta* 17,487 49 Trimble Navigation* 4,965 115 TriQuint Semiconductor* 22,732 127 TriZetto Group* 4,582 31 TTM Technologies* 2,948 42 Turnstone Systems* 4,809 14 Tyler Technologies* 6,162 44 Ulticom* 1,700 18 Ultratech Stepper* 3,155 89 United Online* 4,465 155 Universal Display* 2,221 23 Varian* 4,591 144 Varian Semiconductor Equipment Associates* 4,461 167 Vastera* 4,142 21 Veeco Instruments* 3,577 71 Verint Systems* 1,376 29 Verity* 3,098 40 Verso Technologies* 14,070 $ 53 Vialta* 133 -- Viasat* 3,074 55 Vignette* 35,719 82 Virage Logic* 1,929 15 Vitalworks* 5,827 31 Vitesse Semiconductor* 32,245 206 Vitria Technology* 2,711 14 WatchGuard Technologies* 5,069 27 WebEx Communications* 3,774 72 webMethods* 7,166 57 Websense* 3,087 66 Westell Technologies, Cl A* 6,942 52 White Electronic Designs* 3,203 34 Wind River Systems* 11,878 68 Woodhead Industries 1,515 23 Xicor* 3,904 36 X-Rite 2,964 34 Zoran* 6,356 124 Zygo* 2,414 40 ------------- 24,676 ------------- MATERIALS - 4.0% A. Schulman 4,488 71 AK Steel Holdings* 14,325 29 Albemarle 5,004 137 Allegheny Technologies 12,695 83 AMCOL International 2,750 34 Ameron International 1,043 34 Arch Chemicals 3,016 63 Arch Coal 7,232 161 Bandag 1,504 51 Brush Engineered Metals* 2,001 21 Buckeye Technologies* 4,439 40 Calgon Carbon 5,219 29 Cambrex 2,855 65 Caraustar Industries* 5,756 50 Carpenter Technology 3,135 67 Centex Construction Products 973 43 Central Garden & Pet* 2,366 62 Century Aluminum* 1,942 21 Chesapeake 2,223 50 Cleveland Cliffs* 1,334 34 Coeur D'Alene Mines* 32,267 100 Commercial Metals 3,939 72 Crompton 17,942 104 Crown Holdings* 25,858 175 Deltic Timber 1,479 43 Ethyl* 2,401 30 Ferro 5,250 112 FMC* 5,524 139 Fuller, H.B 4,202 102 G & K Services, Cl A 2,681 94 Georgia Gulf 4,370 102 Gibraltar Steel 1,433 32 Glatfelter 4,290 51 GrafTech International* 8,600 69 Graphic Packaging* 3,706 19 Great Lakes Chemical 5,435 109 Hercules* 15,544 176
The accompanying notes are an integral part of the financial statements. 38
DESCRIPTION SHARES VALUE (000) - ---------------------------------------------------------------------------------- IMC Global 16,996 $ 109 Interface, Cl A* 7,028 38 Jarden* 2,159 82 Liquidmetal Technologies* 2,592 8 Longview Fibre* 8,006 78 Louisiana Pacific* 16,407 226 MacDermid 4,244 112 Material Sciences* 1,105 11 Millennium Chemicals* 9,955 95 Minerals Technologies 2,565 131 Myers Industries 3,045 30 NL Industries 1,059 17 NN 1,535 20 Octel 1,632 28 Olin 8,435 133 OM Group* 4,190 61 Omnova Solutions* 5,235 18 PolyOne* 16,839 66 Pope & Talbot 2,382 36 Potlatch 3,947 117 Quaker Chemicals 1,148 27 Quanex 2,465 83 Raytech* 1,271 4 Rock-Tenn, Cl A 3,777 55 Royal Gold 2,686 49 RTI International Metals* 2,855 30 Ryerson Tull 3,402 27 Seminis, Cl A 2,523 10 Silgan Holdings* 1,718 55 Solutia 16,608 66 Spartech 3,410 73 Steel Dynamics* 5,554 84 Stephan 760 17 Stillwater Mining* 6,504 41 Symyx Technologies* 3,636 78 Texas Industries 3,229 79 USEC 9,931 65 Valhi 4,013 45 W R Grace & Company* 9,689 30 Watts Industries, Cl A 1,625 29 Wausau-Mosinee Paper 5,533 68 Westmoreland Coal* 988 14 ------------- 5,119 ------------- TELECOMMUNICATION SERVICES - 1.7% Aether Systems* 5,169 24 AT Road* 4,075 55 Boston Communications Group* 2,511 25 Centennial Communications, Cl A* 1,416 7 Cincinnati Bell* 27,241 139 Commonwealth Telephone Enterprises* 3,395 136 CT Communications 2,620 30 D & E Communications 1,887 27 Dobson Communications, Cl A* 2,939 24 General Communication* 8,132 68 Golden Telecom* 1,965 54 HickoryTech 1,764 20 Hungarian Telephone & Cable* 527 5 Infonet Services, Cl B* 10,573 22 Intrado* 2,139 49 J2 Global Communications* 2,610 $ 99 McLeodUSA, Cl A* 9,026 13 Metro One Telecommunications* 2,981 10 Neon Communications* (c) 34,093 -- NII Holdings, Class B* 1,901 113 North Pittsburgh 2,169 37 Price Communications* 6,107 76 Primus Telecommunications Group* 8,644 58 PTEK Holdings* 6,461 53 Raindance Communications* 7,069 20 RCN* 11,086 20 Redback Networks* 23,943 15 SBA Communications* 6,587 21 Shenandoah Telecommunications 442 17 Sonus Networks* 31,083 215 Stratex Networks* 15,238 59 SureWest Communications 2,166 72 Sycamore Networks* 25,883 127 Talk America Holdings* 4,101 47 Tellium* 14,637 21 Time Warner Telecom, Cl A* 7,363 68 Triton PCS Holdings, Cl A* 3,237 14 Warwick Valley Telephone 253 20 Western Wireless, Cl A* 8,253 154 Wiltel Communications Group* 4,122 66 Wireless Facilities* 3,973 47 Young Broadcasting, Cl A* 1,924 38 ------------- 2,185 ------------- UTILITIES - 2.4% Allegheny Energy* 19,853 181 American States Water 2,224 52 Aquila* 28,842 97 Atmos Energy 7,823 187 Avista 7,205 112 Black Hills 5,028 155 California Water Service 2,022 52 Cascade Natural Gas 1,416 28 Central Vermont Public Service 1,855 41 CH Energy Group 1,842 81 Chesapeake Utilities 526 12 CLECO 6,935 113 CMS Energy* 21,272 157 Connecticut Water Services 1,083 29 El Paso Electric* 7,326 85 Empire District Electric 3,559 78 Energen 5,193 188 IDACORP 4,777 122 Laclede Group 2,601 70 Middlesex Water 1,032 25 New Jersey Resources 3,868 139 Northwestern Natural Gas 3,481 101 NUI 2,358 35 Otter Tail 4,026 105 PNM Resources 5,852 164 Semco Energy 3,005 14 Sierra Pacific Resources* 20,187 98 SJW 276 23 South Jersey Industries 1,746 66 Southern Union* 8,633 147
39
DESCRIPTION SHARES/PAR (000) VALUE (000) - ---------------------------------------------------------------------------------- Southwest Gas 4,545 $ 103 Southwest Water 2,373 33 Southwestern Energy* 5,540 100 UIL Holdings 1,642 57 Unisource Energy Holding 4,233 81 ------------- 3,131 ------------- TOTAL COMMON STOCKS (Cost $115,383) 120,185 ------------- SHORT-TERM INVESTMENTS - 6.3% U.S. TREASURY OBLIGATION - 0.5% United States Treasury Bill (b) 0.990%, 03/11/04 $ 700 697 ------------- TOTAL U.S. TREASURY OBLIGATION 697 ------------- RELATED PARTY MONEY MARKET FUND - 5.8% First American Prime Obligations Fund, Cl Z (a) 7,477,487 7,478 ------------- TOTAL RELATED PARTY MONEY MARKET FUND 7,478 ------------- TOTAL SHORT-TERM INVESTMENTS (Cost $8,175) 8,175 ------------- INVESTMENTS PURCHASED WITH PROCEEDS FROM SECURITIES LENDING - 12.4% COMMERCIAL PAPER - 1.3% Bluegrass 1.190%, 05/18/04 61 61 CS First Boston 1.415%, 10/01/03 244 244 Danske Bank 1.508%, 12/22/03 244 244 Independent IV 1.216%, 04/15/04 159 159 K2 USA 1.020%, 12/01/03 122 122 Leafs 1.339%, 04/20/04 169 169 Mitten Mortgage 1.130%, 10/08/03 171 171 Mortgage Interest Network 1.110%, 10/15/03 61 61 1.130%, 12/02/03 122 122 Orchard Park 1.245%, 04/06/04 24 24 1.220%, 07/06/04 271 271 ------------- TOTAL COMMERCIAL PAPER 1,648 ------------- CORPORATE OBLIGATIONS - 2.8% Allstate Life Global 1.092%, 08/16/04 244 244 Bank of Scotland 1.100%, 03/05/04 122 122 Castle Hill III 1.176%, 09/16/04 73 73 Deutsche Bank 1.430%, 12/31/03 98 98 1.340%, 03/22/04 122 122 General Electric Capital Corporation 1.150%, 07/09/07 122 122 Halogen Fund 1.150%, 10/03/03 508 508 Lloyd's Bank 1.100%, 03/05/04 244 244 Metlife Global Funding 1.130%, 09/15/04 $ 147 $ 147 1.147%, 04/28/08 103 103 Monet Trust 1.210%, 12/28/03 244 244 Residential Mortgage Securities 1.140%, 09/11/04 183 183 Sigma Finance 1.268%, 08/09/04 244 244 SMM Trust 2002-M 1.140%, 09/23/04 409 409 Svenska Handlsbankn 1.100%, 03/03/04 244 244 1.100%, 03/15/04 44 44 Wells Fargo Bank 1.050%, 10/17/03 244 244 1.060%, 10/31/03 171 171 ------------- TOTAL CORPORATE OBLIGATIONS 3,566 ------------- MONEY MARKET FUNDS - 0.0% AIM Short Term Liquid Asset Portfolio 9,772 10 Merrill Lynch Premier Institutional Fund 32,012 32 ------------- TOTAL MONEY MARKET FUNDS 42 ------------- OTHER SHORT-TERM INVESTMENTS - 1.1% Commonwealth Life 1.430%, 11/01/03 123 123 General Electric Capital Assurance 1.370%, 12/19/03 49 49 Liquid Funding 1.130%, 8/23/04 122 122 1.130%, 9/14/04 122 122 Premium Asset Trust 02-7 0.110%, 06/01/04 364 364 Security Life Denver 1.381%, 01/13/04 318 318 1.490%, 03/15/04 244 244 ------------- TOTAL OTHER SHORT-TERM INVESTMENTS 1,342 ------------- REPURCHASE AGREEMENTS - 7.2% Bear Stearns 1.240%, dated 9/30/03, matures 10/1/03, repurchase price $488,847 (collateralized by Various Securities: Total Market Value $498,591) 489 489 CS First Boston 1.140%, dated 9/30/03, matures 10/1/03, repurchase price $610,764 (collateralized by U.S. Government Securities: Total Market Value $622,965) 611 611 CS First Boston 1.140%, dated 9/30/03, matures 10/1/03, repurchase price $75,735 (collateralized by U.S. Government Securities: Total Market Value $77,248) 76 76 CS First Boston 1.248%, dated 9/30/03, matures 10/1/03, repurchase price $195,445 (collateralized by Collateralized Mortgage Obligation: Total Market Value $205,216) 196 196 Deutsche Bank 1.080%, dated 9/30/03, matures 10/1/03, repurchase price $122,153 (collateralized by U.S. Government Securities: Total Market Value $124,592) 122 122
The accompanying notes are an integral part of the financial statements. 40
DESCRIPTION PAR (000) VALUE (000) - ---------------------------------------------------------------------------------- Deutsche Bank 1.080%, dated 9/30/03, matures 10/1/03, repurchase price $488,610 (collateralized by U.S. Government Securities: Total Market Value $498,367) $ 489 $ 489 Deutsche Bank 1.248%, dated 9/30/03, matures 10/1/03, repurchase price $977,225 (collateralized by Corporate Securities: Total Market Value $1,026,050) 977 977 Goldman Sachs 1.268%, dated 9/30/03, matures 10/1/03, repurchase price $366,459 (collateralized by Corporate Securities: Total Market Value $384,689) 366 366 Goldman Sachs 1.330%, dated 9/30/03, matures 10/1/03, repurchase price $244,307 (collateralized by Various Securities: Total Market Value $251,854) 244 244 Goldman Sachs 1.380%, dated 9/30/03, matures 10/1/03, repurchase price $122,153 (collateralized by Various Securities: Total Market Value $124,644) 122 122 Lehman Brothers 1.120%, dated 9/30/03, matures 10/1/03, repurchase price $671,840 (collateralized by U.S. Government Securities: Total Market Value $685,257) 672 672 Lehman Brothers 1.130%, dated 9/30/03, matures 10/1/03, repurchase price $244,305 (collateralized by U.S. Government Securities: Total Market Value $249,193) 244 244 Lehman Brothers 1.388%, dated 9/30/03, matures 10/1/03, repurchase price $488,595 (collateralized by Various Securities: Total Market Value $495,110) 489 489 Lehman Brothers 1.150%, dated 9/30/03, matures 10/1/03, repurchase price $139,254 (collateralized by Mortgage Obligations: Total Market Value $147,328) 139 139 Merrill Lynch 1.110%, dated 9/30/03, matures 10/1/03, repurchase price $732,916 (collateralized by U.S. Government Securities: Total Market Value $747,561) 733 733 Merrill Lynch 1.110%, dated 9/30/03, matures 10/1/03, repurchase price $22,056 (collateralized by U.S. Government Securities: Total Market Value $22,505) 22 22 Merrill Lynch 1.110%, dated 9/30/03, matures 10/1/03, repurchase price $61,076 (collateralized by U.S. Government Securities: Total Market Value $62,299) 61 61 Merrill Lynch 1.110%, dated 9/30/03, matures 10/1/03, repurchase price $146,583 (collateralized by U.S. Government Securities: Total Market Value $149,517) 147 147 Merrill Lynch 1.110%, dated 9/30/03, matures 10/1/03, repurchase price $488,610 (collateralized by U.S. Government Securities: Total Market Value $498,374) $ 489 $ 489 Merrill Lynch 1.110%, dated 9/30/03, matures 10/1/03, repurchase price $610,763 (collateralized by U.S. Government Securities: Total Market Value $622,965) 611 611 Merrill Lynch 1.130%, dated 9/30/03, matures 10/1/03, repurchase price $488,611 (collateralized by Asset-Backed and U.S. Government Securities: Total Market Value $498,384) 489 489 Merrill Lynch 1.308%, dated 9/30/03, matures 10/1/03, repurchase price $488,613 (collateralized by Corporate Securities: Total Market Value $513,026) 489 489 Morgan Stanley 1.258%, dated 9/30/03, matures 10/1/03, repurchase price $129,482 (collateralized by Asset-Backed Securities: Total Market Value $135,952) 129 129 Morgan Stanley 1.258%, dated 9/30/03, matures 10/1/03, repurchase price $759,792 (collateralized by Mortgage Obligations and Asset-Backed Securities: Total Market Value $797,929) 760 760 ------------- TOTAL REPURCHASE AGREEMENTS 9,166 ------------- TOTAL INVESTMENTS PURCHASED WITH PROCEEDS FROM SECURITIES LENDING (Cost $15,764) 15,764 ------------- TOTAL INVESTMENTS - 112.6% (Cost $139,322) 144,124 ------------- OTHER ASSETS AND LIABILITIES, NET - (12.6)% (16,071) ------------- TOTAL NET ASSETS - 100.0% $ 128,053 -------------
* Non-income producing security (a) 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. (b) 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. (c) Security is fair valued. As of September 30, 2003, the market value of these investments is $4,671 or 0.00% of total net assets. See note 2 in Notes to Financial Statements. Cl - Class REIT - Real Estate Investment Trust 41 STATEMENTS OF ASSETS AND LIABILITIES September 30, 2003, in thousands, except for per share data
EQUITY MID CAP SMALL CAP INDEX FUND INDEX FUND INDEX FUND - ---------------------------------------------------------------------------------------------------------------------- ASSETS: Investments in unaffiliated securities, at value*+ $ 2,748,611 $ 334,212 $ 136,646 Investments in affiliated securities, at value** 81,356 9,531 7,478 Cash 14 -- -- Dividends and interest receivable 2,427 147 111 Capital shares sold 2,348 263 96 Prepaid expenses and other assets 70 12 11 - ---------------------------------------------------------------------------------------------------------------------- TOTAL ASSETS 2,834,826 344,165 144,342 ====================================================================================================================== LIABILITIES: Payable upon return of securities loaned 733,775 88,364 15,764 Capital shares redeemed 13,609 2,793 350 Variation margin payable 773 75 80 Payable for advisory, co-administration, and custodian fees 500 72 49 Distribution and shareholder servicing fees 131 5 3 Accrued expenses and other liabilities 40 41 43 - ---------------------------------------------------------------------------------------------------------------------- TOTAL LIABILITIES 748,828 91,350 16,289 - ---------------------------------------------------------------------------------------------------------------------- NET ASSETS $ 2,085,998 $ 252,815 $ 128,053 ====================================================================================================================== COMPOSITION OF NET ASSETS: Portfolio capital $ 1,863,513 $ 253,010 $ 122,876 Undistributed net investment income 601 21 67 Accumulated net realized gain (loss) (39,155) 3,991 525 Unrealized appreciation (depreciation) of investments 262,291 (4,076) 4,802 Unrealized depreciation of futures contracts (1,252) (131) (217) - ---------------------------------------------------------------------------------------------------------------------- NET ASSETS $ 2,085,998 $ 252,815 $ 128,053 ====================================================================================================================== * Investments in unaffiliated securities, at cost $ 2,487,040 $ 338,288 $ 131,844 **Investments in affiliated securities, at cost $ 80,636 $ 9,531 $ 7,478 + Including securities loaned, at value $ 695,659 $ 84,147 $ 14,763 CLASS A: Net assets $ 158,324 $ 5,332 $ 3,480 Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 8,466 514 303 Net asset value, and redemption price per share $ 18.70 $ 10.36 $ 11.47 Maximum offering price per share (1) $ 19.79 $ 10.96 $ 12.14 CLASS B: Net assets $ 71,624 $ 2,419 $ 993 Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 3,875 236 88 Net asset value, offering price, and redemption price per share (2) $ 18.48 $ 10.25 $ 11.33 CLASS C: Net assets $ 31,330 $ 1,756 $ 1,268 Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 1,685 171 111 Net asset value, and redemption price per share (2) $ 18.59 $ 10.28 $ 11.43 Maximum offering price per share (3) $ 18.78 $ 10.38 $ 11.55 CLASS S: Net assets $ 52,925 $ 4,134 $ 3,210 Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 2,831 399 281 Net asset value, offering price, and redemption price per share $ 18.70 $ 10.36 $ 11.41 CLASS Y: Net assets $ 1,771,795 $ 239,174 $ 119,102 Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 94,787 23,060 10,348 Net asset value, offering price, and redemption price per share $ 18.69 $ 10.37 $ 11.51
(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 contingent 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. 42 STATEMENTS OF OPERATIONS For the fiscal year ended September 30, 2003, in thousands
EQUITY MID CAP SMALL CAP INDEX FUND INDEX FUND INDEX FUND - ---------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Interest from unaffiliated securities $ 77 $ 12 $ 10 Interest from affiliated securities 810 107 84 Dividends 30,840 2,489 1,301 Securities lending 507 56 30 Other income 659 -- -- - ---------------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT INCOME 32,893 2,664 1,425 ====================================================================================================================== EXPENSES: Investment advisory fees 4,478 551 419 Co-administration fees and expenses (including per account transfer agency fees) 4,902 621 338 Custodian fees 179 22 10 Directors' fees 30 4 2 Registration fees 14 29 20 Professional fees 64 8 4 Printing 68 9 4 Other 150 60 52 Distribution and shareholder servicing fees - Class A 376 10 6 Distribution and shareholder servicing fees - Class B 702 18 6 Distribution and shareholder servicing fees - Class C 296 12 8 Shareholder servicing fees - Class S 120 10 13 - ---------------------------------------------------------------------------------------------------------------------- TOTAL EXPENSES 11,379 1,354 882 ====================================================================================================================== Less: Fee waivers (3,258) (200) (136) - ---------------------------------------------------------------------------------------------------------------------- TOTAL NET EXPENSES 8,121 1,154 746 ====================================================================================================================== INVESTMENT INCOME - NET 24,772 1,510 679 ====================================================================================================================== REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FUTURES CONTRACTS - NET: Net realized gain (loss) on investments (3,233) 3,462 (183) Net realized loss on in-kind distribution (663) -- -- Net realized gain on futures contracts 9,771 1,434 702 Net change in unrealized appreciation or depreciation of investments 327,421 41,654 30,354 Net change in unrealized appreciation or depreciation of future contracts 1,044 350 107 - ---------------------------------------------------------------------------------------------------------------------- NET GAIN ON INVESTMENTS 334,340 46,900 30,980 ====================================================================================================================== NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 359,112 $ 48,410 $ 31,659 ======================================================================================================================
The accompanying notes are an integral part of the financial statements. 43 STATEMENTS OF CHANGES IN NET ASSETS in thousands
EQUITY MID CAP SMALL CAP INDEX FUND INDEX FUND INDEX FUND - ------------------------------------------------------------------------------------------------------------------------------ 10/1/02 10/1/01 10/1/02 10/1/01 10/1/02 10/1/01 TO TO TO TO TO TO 9/30/03 9/30/02 9/30/03 9/30/02 9/30/03 9/30/02 - ------------------------------------------------------------------------------------------------------------------------------ OPERATIONS: Investment income - net $ 24,772 $ 20,971 $ 1,510 $ 1,425 $ 679 $ 769 Net realized gain (loss) on investments (3,233) (17,129) 3,462 5,952 (183) 2,012 Net realized gain (loss) on in-kind distributions (663) 88,012 -- 1,965 -- 503 Net realized gain (loss) on futures contracts 9,771 3,192 1,471 (247) 702 (524) Net change in unrealized appreciation or depreciation of investments 327,421 (480,909) 41,654 (25,621) 30,354 (26,213) Net change in unrealized appreciation or depreciation of futures contracts 1,044 (3,348) 313 (473) 107 (324) - ------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations 359,112 (389,211) 48,410 (16,999) 31,659 (23,777) - ------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Investment income - net: Class A (1,752) (1,724) (20) (15) (11) (8) Class B (330) (183) (1) -- -- -- Class C (145) (56) (1) -- (1) -- Class S (570) (434) (18) (16) (33) (68) Class Y (21,115) (18,598) (1,472) (1,389) (639) (641) Net realized gain on investments: Class A -- -- (97) (123) -- -- Class B -- -- (41) (49) -- -- Class C -- -- (26) (1) -- -- Class S -- -- (95) (150) -- -- Class Y -- -- (5,505) (7,356) -- -- - ------------------------------------------------------------------------------------------------------------------------------ Total distributions (23,912) (20,995) (7,276) (9,099) (684) (717) ============================================================================================================================== CAPITAL SHARE TRANSACTIONS (1): Class A: Proceeds from sales 25,928 35,313 1,994 2,725 1,423 4,956 Reinvestment of distributions 1,673 1,650 116 136 11 8 Payments for redemptions (37,906) (47,666) (1,218) (1,767) (639) (2,719) - ------------------------------------------------------------------------------------------------------------------------------ Increase (decrease) in net assets from Class A transactions (10,305) (10,703) 892 1,094 795 2,245 - ------------------------------------------------------------------------------------------------------------------------------ Class B: Proceeds from sales 5,525 9,748 731 712 513 474 Reinvestment of distributions 321 178 41 48 -- -- Payments for redemptions (14,832) (19,649) (201) (328) (131) (34) - ------------------------------------------------------------------------------------------------------------------------------ Increase (decrease) in net assets from Class B transactions (8,986) (9,723) 571 432 382 440 - ------------------------------------------------------------------------------------------------------------------------------ Class C: Proceeds from sales 13,645 6,194 843 1,044 744 592 Reinvestment of distributions 142 54 25 1 1 -- Payments for redemptions (9,354) (7,962) (162) (52) (151) (16) - ------------------------------------------------------------------------------------------------------------------------------ Increase (decrease) in net assets from Class C transactions 4,433 (1,714) 706 993 594 576 - ------------------------------------------------------------------------------------------------------------------------------ Class S: Proceeds from sales 27,976 33,391 1,734 2,554 1,887 4,483 Reinvestment of distributions 549 419 97 123 33 67 Payments for redemptions (27,845) (16,746) (1,930) (3,369) (13,558) (2,761) - ------------------------------------------------------------------------------------------------------------------------------ Increase (decrease) in net assets from Class S transactions 680 17,064 (99) (692) (11,638) 1,789 - ------------------------------------------------------------------------------------------------------------------------------ Class Y: Proceeds from sales 890,946 608,090 114,594 104,570 51,061 116,156 Reinvestment of distributions 15,659 14,444 5,064 6,651 372 402 Payments for redemptions (547,725) (720,539) (117,836) (64,557) (55,592) (54,512) - ------------------------------------------------------------------------------------------------------------------------------ Increase (decrease) in net assets from Class Y transactions 358,880 (98,005) 1,822 46,664 (4,159) 62,046 - ------------------------------------------------------------------------------------------------------------------------------ Increase (decrease) in net assets from capital share transactions 344,702 (103,081) 3,892 48,491 (14,026) 67,096 - ------------------------------------------------------------------------------------------------------------------------------ Total increase (decrease) in net assets 679,902 (513,287) 45,026 22,393 16,949 42,602 NET ASSETS AT BEGINNING OF PERIOD 1,406,096 1,919,383 207,789 185,396 111,104 68,502 ============================================================================================================================== NET ASSETS AT END OF PERIOD $ 2,085,998 $ 1,406,096 $ 252,815 $ 207,789 $ 128,053 $ 111,104 ============================================================================================================================== UNDISTRIBUTED NET INVESTMENT INCOME AT END OF PERIOD $ 601 $ 427 $ 21 $ 17 $ 67 $ 53 ==============================================================================================================================
(1) See note 5 in Notes to Financial Statements for additional information. The accompanying notes are an integral part of the financial statements. 44 (This page has been left blank intentionally.) Financial Highlights For a share outstanding throughout the periods ended September 30, unless otherwise indicated.
REALIZED AND NET ASSET UNREALIZED DIVIDENDS VALUE NET GAINS FROM NET DISTRIBUTIONS BEGINNING INVESTMENT (LOSSES) ON INVESTMENT FROM NET OF PERIOD INCOME (LOSS) INVESTMENTS INCOME REALIZED GAINS - ---------------------------------------------------------------------------------------------------------------------- EQUITY INDEX FUND Class A 2003 (1) $ 15.31 $ 0.21 $ 3.38 $ (0.20) $ -- 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) Class B 2003 (1) $ 15.13 $ 0.08 $ 3.35 $ (0.08) $ -- 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) Class C 2003 (1) $ 15.23 $ 0.08 $ 3.36 $ (0.08) $ -- 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 (2) 25.35 0.06 0.13 (0.06) -- Class S (1) 2003 $ 15.30 $ 0.21 $ 3.39 $ (0.20) $ -- 2002 19.50 0.18 (4.20) (0.18) -- 2001 (3) 18.80 -- 0.70 -- -- Class Y 2003 (1) $ 15.30 $ 0.25 $ 3.38 $ (0.24) $ -- 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) - ---------------------------------------------------------------------------------------------------------------------- MID CAP INDEX FUND (4) Class A 2003 (1) $ 8.51 $ 0.04 $ 2.08 $ (0.04) $ (0.23) 2002 (1) 9.38 0.04 (0.49) (0.04) (0.38) 2001 (1) (5) 12.56 0.05 (2.11) (0.05) (1.07) 2000 (6) (7) 10.00 0.04 2.56 (0.04) -- Class B 2003 (1) $ 8.44 $ (0.03) $ 2.07 $ -- $ (0.23) 2002 (1) 9.33 (0.03) (0.48) -- (0.38) 2001 (1) (5) 12.52 -- (2.12) -- (1.07) 2000 (6) (7) 10.00 (0.01) 2.56 (0.03) -- Class C (1) 2003 $ 8.47 $ (0.03) $ 2.07 $ -- $ (0.23) 2002 9.38 (0.02) (0.51) -- (0.38) 2001 (3) 9.07 -- 0.31 -- -- Class S (1) 2003 $ 8.50 $ 0.04 $ 2.09 $ (0.04) $ (0.23) 2002 9.38 0.04 (0.50) (0.04) (0.38) 2001 (8) 11.07 0.04 (1.67) (0.06) -- Class Y 2003 (1) $ 8.51 $ 0.06 $ 2.09 $ (0.06) $ (0.23) 2002 (1) 9.38 0.06 (0.49) (0.06) (0.38) 2001 (1) (5) 12.55 0.08 (2.11) (0.07) (1.07) 2000 (6) (7) 10.00 0.08 2.55 (0.08) -- - ---------------------------------------------------------------------------------------------------------------------- SMALL CAP INDEX FUND (9) Class A 2003 (1) $ 8.55 $ 0.04 $ 2.92 $ (0.04) $ -- 2002 (1) 9.68 0.05 (1.13) (0.05) -- 2001 (1) (5) 12.23 (0.01) (1.49) -- (1.05) 2000 (10) 10.18 (0.01) 2.20 -- (0.14) 1999 (11) (12) 10.00 -- 0.19 (0.01) -- Class B (1) 2003 $ 8.47 $ (0.03) $ 2.90 $ (0.01) $ -- 2002 9.63 (0.03) (1.13) -- -- 2001 (13) 10.97 (0.01) (1.33) -- -- Class C (1) 2003 $ 8.54 $ (0.03) $ 2.93 $ (0.01) $ -- 2002 9.68 (0.03) (1.11) -- -- 2001 (3) 9.49 -- 0.19 -- -- Class S 2003 (1) $ 8.52 $ 0.05 $ 2.88 $ (0.04) $ -- 2002 (1) 9.64 0.05 (1.12) (0.05) -- 2001 (1) (5) 12.19 (0.01) (1.49) -- (1.05) 2000 (10) 10.17 (0.01) 2.18 (0.01) (0.14) 1999 (11) (12) 10.00 -- 0.17 -- -- Class Y 2003 (1) $ 8.57 $ 0.07 $ 2.94 $ (0.07) $ -- 2002 (1) 9.70 0.07 (1.13) (0.07) -- 2001 (1) (5) 12.24 0.02 (1.50) (0.01) (1.05) 2000 (10) 10.19 0.02 2.19 (0.02) (0.14) 1999 (11) (12) 10.00 0.01 0.19 (0.01) --
(1) Per share data calculated using average shares outstanding method. (2) Class of shares have been offered since February 1, 1999. All ratios for the period have been annualized, except total return and portfolio turnover. (3) Class of shares have been offered since September 24, 2001. All ratios for the period have been annualized, except total return and portfolio turnover. (4) 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. (5) For the period November 1, 2000 to September 30, 2001. Effective in 2001, the Fund's fiscal year end changed from October 31 to September 30. All ratios for the period have been annualized, except total return and portfolio turnover. (6) Commenced operations on November 4, 1999. All ratios for the period have been annualized, except total return and portfolio turnover. (7) For the fiscal period ended October 31. The accompanying notes are an integral part of the financial statements. 46
RATIO OF NET NET ASSET RATIO OF INVESTMENT VALUE NET ASSETS EXPENSES TO INCOME (LOSS) END OF TOTAL END OF AVERAGE TO AVERAGE PERIOD RETURN (14) PERIOD (000) NET ASSETS NET ASSETS - ----------------------------------------------------------------------------------------------------------------------- EQUITY INDEX FUND Class A 2003 (1) $ 18.70 23.58% $ 158,324 0.62% 1.22% 2002 (1) 15.31 (20.75) 139,007 0.62 0.91 2001 (1) 19.50 (26.95) 188,410 0.60 0.74 2000 27.75 12.11 134,180 0.60 0.62 1999 25.52 27.30 110,439 0.60 0.85 Class B 2003 (1) $ 18.48 22.72% $ 71,624 1.37% 0.47% 2002 (1) 15.13 (21.40) 66,835 1.37 0.16 2001 (1) 19.29 (27.49) 95,586 1.35 (0.01) 2000 27.49 11.25 121,092 1.35 (0.13) 1999 25.34 26.38 99,054 1.35 0.10 Class C 2003 (1) $ 18.59 22.65% $ 31,330 1.37% 0.47% 2002 (1) 15.23 (21.38) 21,637 1.37 0.16 2001 (1) 19.41 (27.51) 29,560 1.35 (0.01) 2000 27.66 11.32 34,811 1.35 (0.13) 1999 (2) 25.48 0.76 16,861 1.35 0.07 Class S (1) 2003 $ 18.70 23.66% $ 52,925 0.62% 1.22% 2002 15.30 (20.79) 42,964 0.62 0.93 2001 (3) 19.50 3.72 38,220 0.72 0.89 Class Y 2003 (1) $ 18.69 23.89% $ 1,771,795 0.37% 1.46% 2002 (1) 15.30 (20.56) 1,135,653 0.37 1.16 2001 (1) 19.49 (26.78) 1,567,607 0.35 0.99 2000 27.74 12.38 1,400,086 0.35 0.87 1999 25.51 27.61 1,206,072 0.35 1.11 - ----------------------------------------------------------------------------------------------------------------------- MID CAP INDEX FUND (4) Class A 2003 (1) $ 10.36 25.45% $ 5,332 0.75% 0.45% 2002 (1) 8.51 (5.45) 3,581 0.75 0.37 2001 (1) (5) 9.38 (17.60) 2,972 0.75 0.51 2000 (6) (7) 12.56 26.48 1,918 0.75 0.75 Class B 2003 (1) $ 10.25 24.63% $ 2,419 1.50% (0.30)% 2002 (1) 8.44 (6.07) 1,475 1.50 (0.37) 2001 (1) (5) 9.33 (18.15) 1,265 1.50 (0.24) 2000 (6) (7) 12.52 25.65 905 1.50 -- Class C (1) 2003 $ 10.28 24.55% $ 1,756 1.50% (0.30)% 2002 8.47 (6.22) 795 1.50 (0.37) 2001 (3) 9.38 3.42 -- -- -- Class S (1) 2003 $ 10.36 25.60% $ 4,134 0.75% 0.46% 2002 8.50 (5.56) 3,393 0.75 0.37 2001 (8) 9.38 (14.77) 4,301 0.75 0.47 Class Y 2003 (1) $ 10.37 25.86% $ 239,174 0.50% 0.71% 2002 (1) 8.51 (5.23) 198,545 0.50 0.63 2001 (1) (5) 9.38 (17.34) 176,857 0.50 0.75 2000 (6) (7) 12.55 26.62 125,881 0.50 1.00 - ----------------------------------------------------------------------------------------------------------------------- SMALL CAP INDEX FUND (9) Class A 2003 (1) $ 11.47 34.77% $ 3,480 0.93% 0.42% 2002 (1) 8.55 (11.28) 1,908 0.93 0.46 2001 (1) (5) 9.68 (12.76) 341 0.91 (0.07) 2000 (10) 12.23 21.81 177 0.99 (0.11) 1999 (11) (12) 10.18 1.86 134 1.00 (0.15) Class B (1) 2003 $ 11.33 33.87% $ 993 1.68% (0.33)% 2002 8.47 (12.03) 424 1.68 (0.29) 2001 (13) 9.63 (12.11) 107 1.65 (0.84) Class C (1) 2003 $ 11.43 33.94% $ 1,268 1.68% (0.33)% 2002 8.54 (11.72) 447 1.68 (0.26) 2001 (3) 9.68 2.11 -- -- -- Class S 2003 (1) $ 11.41 34.54% $ 3,210 0.93% 0.52% 2002 (1) 8.52 (11.26) 13,576 0.93 0.42 2001 (1) (5) 9.64 (12.82) 13,886 0.88 (0.05) 2000 (10) 12.19 21.54 18,057 0.99 (0.11) 1999 (11) (12) 10.17 1.74 14,955 0.92 (0.06) Class Y 2003 (1) $ 11.51 35.23% $ 119,102 0.68% 0.68% 2002 (1) 8.57 (11.09) 94,749 0.68 0.68 2001 (1) (5) 9.70 (12.56) 54,169 0.66 0.19 2000 (10) 12.24 21.93 60,771 0.69 0.19 1999 (11) (12) 10.19 2.01 45,331 0.68 0.18 RATIO OF RATIO OF NET EXPENSES TO INVESTMENT AVERAGE INCOME (LOSS) NET ASSETS TO AVERAGE NET PORTFOLIO (EXCLUDING ASSETS (EXCLUD- TURNOVER WAIVERS) ING WAIVERS) RATE - ---------------------------------------------------------------------------------- EQUITY INDEX FUND Class A 2003 (1) 0.80% 1.04% 1% 2002 (1) 0.80 0.73 8 2001 (1) 1.14 0.20 6 2000 1.14 0.08 16 1999 1.14 0.31 7 Class B 2003 (1) 1.55% 0.29% 1% 2002 (1) 1.55 (0.02) 8 2001 (1) 1.89 (0.55) 6 2000 1.89 (0.67) 16 1999 1.89 (0.44) 7 Class C 2003 (1) 1.55% 0.29% 1% 2002 (1) 1.55 (0.02) 8 2001 (1) 1.89 (0.55) 6 2000 1.89 (0.67) 16 1999 (2) 1.89 (0.47) 7 Class S (1) 2003 0.80% 1.04% 1% 2002 0.80 0.75 8 2001 (3) 1.20 0.41 6 Class Y 2003 (1) 0.55% 1.28% 1% 2002 (1) 0.55 0.98 8 2001 (1) 0.89 0.45 6 2000 0.89 0.33 16 1999 0.89 0.57 7 - ---------------------------------------------------------------------------------- MID CAP INDEX FUND (4) Class A 2003 (1) 0.84% 0.36% 23% 2002 (1) 0.83 0.29 19 2001 (1) (5) 0.80 0.46 43 2000 (6) (7) 0.90 0.60 45 Class B 2003 (1) 1.59% (0.39)% 23% 2002 (1) 1.58 (0.45) 19 2001 (1) (5) 1.54 (0.28) 43 2000 (6) (7) 1.65 (0.15) 45 Class C (1) 2003 1.59% (0.39)% 23% 2002 1.58 (0.45) 19 2001 (3) -- -- 43 Class S (1) 2003 0.84% 0.37% 23% 2002 0.83 0.29 19 2001 (8) 0.80 0.42 43 Class Y 2003 (1) 0.59% 0.62% 23% 2002 (1) 0.58 0.55 19 2001 (1) (5) 0.53 0.72 43 2000 (6) (7) 0.65 0.85 45 - ---------------------------------------------------------------------------------- SMALL CAP INDEX FUND (9) Class A 2003 (1) 1.05% 0.30% 41% 2002 (1) 1.09 0.30 49 2001 (1) (5) 0.94 (0.10) 102 2000 (10) 1.09 (0.21) 32 1999 (11) (12) 1.14 (0.29) 35 Class B (1) 2003 1.80% (0.45)% 41% 2002 1.84 (0.45) 49 2001 (13) 1.69 (0.88) 102 Class C (1) 2003 1.80% (0.45)% 41% 2002 1.84 (0.42) 49 2001 (3) -- -- 102 Class S 2003 (1) 1.05% 0.40% 41% 2002 (1) 1.09 0.26 49 2001 (1) (5) 0.91 (0.08) 102 2000 (10) 1.09 (0.21) 32 1999 (11) (12) 1.12 (0.26) 35 Class Y 2003 (1) 0.80% 0.56% 41% 2002 (1) 0.84 0.52 49 2001 (1) (5) 0.68 0.17 102 2000 (10) 1.09 (0.21) 32 1999 (11) (12) 1.13 (0.27) 35
(8) Class of shares have been offered since November 27, 2000. All ratios for the period have been annualized, except total return and portfolio turnover. (9) 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. (10) For the period December 1, 1999 to October 31, 2000. Effective in 2001, the Fund's fiscal year end changed from November 30 to October 31. All ratios for the period have been annualized, except total return and portfolio turnover. (11) Commenced operations on December 30, 1998. All ratios for the period have been annualized, except total return and portfolio turnover. (12) For the fiscal period ended November 30. (13) Class of shares have been offered since December 11, 2000. All ratios for the period have been annualized, except total return and portfolio turnover. (14) Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived. 47 NOTES TO FINANCIAL STATEMENTS September 30, 2003 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 and Class Y shares have no sales charge and are offered only to qualifying institutional investors and certain other qualifying accounts. The Funds' prospectuses provide descriptions of each Fund's investment objective, 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 VALUATIONS - 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. For securities traded on the Nasdaq national market system, the Funds utilize the Nasdaq Official Closing Price which compares the last trade to the bid/ask range of a security. If the last trade falls within the bid/ask range, then that price will be the closing price. If the last trade is outside the bid/ask range, and falls above the ask, the ask will be the closing price. If the last price is below the bid, the bid will be the closing price. Other equity securities traded in the over-the-counter market and listed equity securities for which no sale was reported on that date are stated at the last quoted bid price. Debt obligations exceeding 60 days to maturity are valued by an independent pricing service. The pricing service may employ methodologies that utilize actual market transactions, broker-dealer supplied valuations, or other formula-driven valuation techniques. These techniques generally consider such factors as yields or prices of bonds of comparable quality, type of issue, coupon, maturity, ratings, and general market conditions. Securities for which prices are not available from an independent pricing service, but where an active market exists, are valued using market quotations obtained from one or more dealers that make markets in the securities or from a widely-used quotation system. When market quotations are not readily available, securities are valued at fair value as determined in good faith by procedures established and approved by the Funds' board of directors. If events occur that materially affect the value of securities (including non-U.S. securities) between the close of trading in those securities and the close of regular trading on the New York Stock Exchange, the securities will be valued at fair value. As of September 30, 2003, the Equity Index Fund and Small Cap Index Fund had fair valued securities with a total market value of $1,372 and $4,671 respectively, or 0.0% of total net assets for both funds, respectively. Mid Cap Index Fund had no fair valued securities. Debt obligations with 60 days or less remaining until maturity may be valued at their amortized cost, which approximates market value. 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. As of September 30, 2003, the Funds had no investments in foreign securities. 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 - Each Fund is treated as a separate taxable entity. Each Fund intends to continue to qualify as a regulated investment company as provided in Subchapter M of the Internal Revenue Code, as amended, and to distribute all taxable income, if any, to its shareholders. Accordingly, no provision for federal income taxes is required. 48 Net investment income and net realized gains (losses) may differ for financial statement and tax purposes because of temporary or permanent book/tax differences. These differences are primarily due to losses deferred from wash sales and the tax recognition of mark to market gains (losses) on open futures contracts. To the extent these differences are permanent, reclassifications are made to the appropriate equity accounts in the period that the difference arises. On the Statements of Assets and Liabilities the following reclassifications were made (000):
ACCUMULATED UNDISTRIBUTED NET REALIZED NET INVESTMENT PORTFOLIO FUND GAIN (LOSS) INCOME CAPITAL ------------------------------------------------------------------- Equity Index $ 686 $ (686) $ -- Mid Cap Index (6) 6 -- Small Cap Index 644 19 (663)
The characterization of distributions made during the year from net investment income or net realized gains may differ from its ultimate characterization for federal income tax purposes. In addition, due to the timing of dividend distributions, the fiscal year in which the amounts are distributed may differ from the year that the income or realized gains (losses) are recorded by the Fund. The distributions paid during the fiscal years ended September 30, 2003 and 2002, were characterized as follows (000):
2003 ORDINARY LONG TERM FUND INCOME GAIN TOTAL -------------------------------------------------------------------- Equity Index $ 23,912 $ -- $ 23,912 Mid Cap Index 1,700 5,576 7,276 Small Cap Index 576 108 684
2002 ORDINARY LONG TERM FUND INCOME GAIN TOTAL -------------------------------------------------------------------- Equity Index $ 20,995 $ -- $ 20,995 Mid Cap Index 1,421 7,678 9,099 Small Cap Index 717 -- 717
As of September 30, 2003, the components of accumulated earnings (deficit) on a tax basis were (000):
EQUITY MID CAP SMALL CAP INDEX INDEX INDEX -------------------------------------------------------------------- Undistributed Ordinary Income $ 592 $ 478 $ -- Undistributed Long Term Capital Gains -- 4,076 451 ----------------------------------------- Accumulated Earnings 592 4,554 451 Accumulated Capital and Post-October Losses (27,551) -- -- Unrealized Appreciation (Depreciation) 249,444 (4,749) 4,726 ----------------------------------------- Total Accumulated Earnings (Deficit) $ 222,485 $ (195) $ 5,177
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. As of September 30, 2003, the following Fund had a capital loss carryforward (000):
FUND AMOUNT EXPIRATION DATE ------------------------------------------------------------------- Equity Index $ 27,551 2008-2011
SECURITY TRANSACTIONS AND INVESTMENT INCOME - The Funds record security transactions on the trade date of the security purchase or sale. Dividend income is recorded on the ex-dividend date. Interest income, including amortization of bond premium and discount, is recorded on an accrual basis. Security gains and losses are determined on the basis of identified cost, which is the same basis used for federal income tax purposes. Each Fund reserves the right to pay part or all of the proceeds from a redemption request in a proportionate share of readily marketable securities in the Fund instead of cash. The resulting gain/loss is calculated as the difference between the fair value and the underlying cost of the security on the transaction date. FUTURES TRANSACTIONS - In order to gain exposure to or protect against changes in the market, the Funds may enter into S&P and Russell Index futures contracts and other stock index futures contracts. 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% 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 - In order to generate additional income, each Fund may lend securities representing up to one-third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks, or other institutional borrowers of securities. Each Fund's policy is to maintain collateral in the form of cash, U.S. government securities, or other high-grade debt obligations 49 equal to at least 100% of the value of securities loaned. The collateral is then " marked-to-market" daily until the securities are returned. As with other extensions of credit, there may be risks of delay in recovery of the securities or even loss of rights in the collateral should the borrower of the security fail financially. U.S. Bancorp Asset Management, Inc. ("USBAM") serves as the securities lending agent for the Funds in transactions involving the lending of portfolio securities on behalf of the Funds. For these services, USBAM received $416,323, $46,121 and $24,246 in securities lending fees for the fiscal year ended September 30, 2003, from the Equity Index, Mid Cap Index, and Small Cap Index Fund, respectively. OTHER INCOME - Income from settlement proceeds related to specific portfolio securities is recorded as an adjustment to realized or unrealized gains or losses. Income from settlement proceeds related to securities that are no longer included in the portfolio is recorded in other income. For the year ended September 30, 2003, the Equity Index Fund recorded $659,139 in other income for settlement proceeds related to securities no longer included in the portfolio. INTERFUND LENDING PROGRAM - Pursuant to an exemptive order issued by the Securities and Exchange Commission, the Funds, along with other registered investment companies in the First American Family of Funds, may participate in an interfund lending program. This program provides an alternative credit facility allowing the Funds to borrow from, or lend money to, other participating funds. The Funds did not have any interfund lending transactions during the fiscal year ended September 30, 2003. EXPENSES - Expenses that are directly related to one of the Funds are charged directly to that Fund. Other operating expenses are generally allocated to the Funds on the basis of relative net assets of all funds within the First American Fund complex. Class specific expenses, such as 12b-1 fees, are borne by that class. Income, other expenses, and realized and unrealized gains and losses of a Fund are allocated to each respective class in proportion to the relative net assets of each class. 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 ADVISOR FEES - Pursuant to an investment advisory agreement (the "Agreement"), USBAM manages each Fund's assets and furnishes related office facilities, equipment, research, and personnel. The Agreement requires each Fund to pay USBAM a monthly fee based upon average daily net assets. The fee for the Equity Index Fund and Mid Cap Index Fund is equal to an annual rate of 0.25% of each Fund's average daily net assets. The fee for the Small Cap Index Fund is equal to an annual rate of 0.40% of its average daily net assets. USBAM voluntarily waived fees during the most recently completed fiscal year so that the total fund operating expenses did not exceed expense limitations described in the Funds' prospectus. 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 investments are identical to those of investments by non-related entities except that, to avoid duplicative investment advisory fees, USBAM reimburses each Fund an amount equal to the investment advisory fee paid by FAF to USBAM related to such investments. For financial statement purposes, these reimbursements are recorded as investment income. 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% of the next $17 billion of the aggregate average daily assets, 0.22% of the next $25 billion of the aggregate average 50 daily net assets, and 0.20% of the aggregate average daily net assets in excess of $50 billion. The Funds, along with all other open-end mutual funds in the First American Family of Funds, pay transfer agent fees of $18,500 per share class. These fees are allocated to each Fund based upon the Fund's pro rata share of aggregate average daily net assets of the Funds that comprise FAIF. Each Fund also pays additional per account fees for transfer agent services. For the fiscal year ended September 30, 2003, administration fees paid to USBAM and USBFS by the Funds included in this annual report were as follows (000):
FUND AMOUNT ------------------------------------------------------------- Equity Index Fund $ 4,841 Mid Cap Index Fund 596 Small Cap Index Fund 283
CUSTODIAN FEES - U.S. Bank serves as the Funds' custodian pursuant to a custodian agreement with FAIF. The fee for each Fund is equal to an annual rate of 0.01% of average daily net assets. All fees are computed daily and paid monthly. DISTRIBUTION AND SHAREHOLDER SERVICING FEES - Quasar Distributors, LLC (" Quasar" ), a subsidiary of U.S. Bancorp, serves as distributor of the Funds pursuant to a distribution agreement with FAIF. Under the distribution agreement, each of the Funds pays Quasar a monthly distribution and/or shareholder servicing fee equal to an annual rate of 0.25% of each Fund's average daily net assets of the Class A shares, 1.00% of the Class B shares and 1.00% of the Class C shares. These fees 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 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 or 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 fiscal year ended September 30, 2003 (000):
FUND AMOUNT ------------------------------------------------------------- Equity Index Fund $ 724 Mid Cap Index Fund 32 Small Cap Index Fund 26
OTHER FEES - In addition to the investment advisory fees, custodian fees, distribution and shareholder servicing fees, and co-administration fees, each Fund is responsible for paying most other operating expenses including fees and expenses of outside directors, registration fees, printing of shareholder reports, legal, auditing, insurance, and other miscellaneous expenses. For the fiscal year ended September 30, 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. Class B shares automatically convert to Class A shares after eight years.
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 --
A CDSC of 1.00% is imposed on redemptions made in Class C shares for the first eighteen months. The CDSC for Class B shares and Class C shares is imposed on the value of the purchased shares or the value at the time of redemption, whichever is less. For the fiscal year ended September 30, 2003, sales charges retained by affiliates of USBAM for distributing the Funds' shares were as follows (000):
FUND AMOUNT ------------------------------------------------------------- Equity Index Fund $ 510 Mid Cap Index Fund 54 Small Cap Index Fund 39
4 > INVESTMENT IN COMMON STOCK OF AFFILIATE As disclosed in the Schedule of Investments, Equity Index Fund owns common stock issued by U.S. Bancorp. For the fiscal year ended September 30, 2003, the Equity Index Fund recorded no realized gains or losses from sales of U.S. Bancorp common stock and $319,975 of income from U.S. Bancorp common stock. 51 NOTES TO Financial STATEMENTS September 30, 2003 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 (000):
EQUITY MID CAP SMALL CAP INDEX FUND INDEX FUND INDEX FUND - -------------------------------------------------------------------------------------------------------------------------------- 10/1/02 10/1/01 10/1/02 10/1/01 10/1/02 10/1/01 TO TO TO TO TO TO 9/30/03 9/30/02 9/30/03 9/30/02 9/30/03 9/30/02 - -------------------------------------------------------------------------------------------------------------------------------- Class A: Shares issued 1,495 1,767 217 261 147 426 Shares issued in lieu of cash distributions 97 85 13 14 1 1 Shares redeemed (2,208) (2,430) (137) (171) (68) (239) - -------------------------------------------------------------------------------------------------------------------------------- TOTAL CLASS A TRANSACTIONS (616) (578) 93 104 80 188 ================================================================================================================================ Class B: Shares issued 321 488 79 67 52 42 Shares issued in lieu of cash distributions 19 11 4 5 -- -- Shares redeemed (881) (1,038) (22) (33) (14) (3) - -------------------------------------------------------------------------------------------------------------------------------- TOTAL CLASS B TRANSACTIONS (541) (539) 61 39 38 39 ================================================================================================================================ Class C: Shares issued 806 310 91 99 74 54 Shares issued in lieu of cash distributions 8 3 3 -- -- -- Shares redeemed (550) (415) (17) (5) (15) (2) - -------------------------------------------------------------------------------------------------------------------------------- TOTAL CLASS C TRANSACTIONS 264 (102) 77 94 59 52 ================================================================================================================================ Class S: Shares issued 1,647 1,684 196 258 192 408 Shares issued in lieu of cash distributions 32 22 10 12 3 6 Shares redeemed (1,656) (859) (206) (330) (1,508) (260) - -------------------------------------------------------------------------------------------------------------------------------- TOTAL CLASS S TRANSACTIONS 23 847 -- (60) (1,313) 154 ================================================================================================================================ Class Y: Shares issued 50,895 30,730 12,500 10,260 5,268 10,511 Shares issued in lieu of cash distributions 904 747 560 666 39 38 Shares redeemed (31,254) (37,657) (13,331) (6,449) (6,019) (5,075) - -------------------------------------------------------------------------------------------------------------------------------- TOTAL CLASS Y TRANSACTIONS 20,545 (6,180) (271) 4,477 (712) 5,474 ================================================================================================================================ NET INCREASE (DECREASE) IN CAPITAL SHARES 19,675 (6,552) (40) 4,654 (1,848) 5,907 ================================================================================================================================
52 6 > INVESTMENT SECURITY TRANSACTIONS During the fiscal year ended September 30, 2003, purchases of securities and proceeds from sales of securities, other than temporary investments in short-term securities, were as follows (000):
FUND PURCHASES SALES --------------------------------------------------------------------------- Equity Index $ 326,609 $ 12,215 Mid Cap Index 48,059 49,484 Small Cap Index 40,129 54,754
The aggregate gross unrealized appreciation and depreciation of securities held by the Funds and the total cost of securities (including cost of securities purchased with proceeds from securities lending) for federal income tax purposes at September 30, 2003, were as follows (000):
AGGREGATE AGGREGATE FEDERAL GROSS GROSS INCOME FUND APPRECIATION DEPRECIATION NET TAX COST --------------------------------------------------------------------------------------------------------------------- Equity Index $ 576,590 $ (327,146) $ 249,444 $ 2,580,523 Mid Cap Index 40,456 (45,205) (4,749) 348,492 Small Cap Index 19,640 (14,914) 4,726 139,398
7 > FUTURES CONTRACTS The Funds' investment in stock 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 September 30, 2003, futures contracts for the Equity Index Fund, Mid Cap Index Fund, and Small Cap Index Fund were as follows (000):
MARKET VALUE NAME OF NUMBER OF COVERED BY SETTLEMENT UNREALIZED FUND CONTRACT CONTRACTS CONTRACTS MONTH LOSS ---------------------------------------------------------------------------------------------------------------------------- Equity Index S&P 500 Index 258 $ 64,119 Dec-03 $ (1,252) Mid Cap Index S&P MidCap 400 Index 27 6,890 Dec-03 (131) Small Cap Index Russell 2000 Index 30 7,318 Dec-03 (217)
53 NOTICE TO SHAREHOLDERS September 30, 2003 (unaudited) TAX NOTICE THE INFORMATION SET FORTH BELOW IS FOR EACH FUND'S FISCAL YEAR AS REQUIRED BY FEDERAL LAWS. MOST SHAREHOLDERS, HOWEVER, MUST REPORT DISTRIBUTIONS ON A CALENDAR YEAR BASIS FOR INCOME TAX PURPOSES, THAT MAY INCLUDE DISTRIBUTIONS FOR PORTIONS OF TWO FISCAL YEARS OF A FUND. ACCORDINGLY, THE INFORMATION NEEDED FOR INCOME TAX PURPOSES WILL BE SENT IN EARLY 2004 ON FORM 1099. PLEASE CONSULT YOUR TAX ADVISOR FOR PROPER TREATMENT OF THIS INFORMATION. Dear First American Fund Shareholders: For the fiscal year ended September 30, 2003, each Fund has designated long-term capital gain dividends, dividends qualifying for the corporate received deduction, and qualified dividend income with regard to distributions paid during the year as follows:
LONG TERM ORDINARY CORPORATE CAPITAL GAINS INCOME TOTAL DIVIDENDS QUALIFIED DISTRIBUTIONS DISTRIBUTIONS DISTRIBUTIONS RECEIVED DIVIDEND FUND (TAX BASIS) (a) (TAX BASIS) (b) (TAX BASIS) DEDUCTION (c) INCOME (d) -------------------------------------------------------------------------------------------------------------- Equity Index --% 100% 100% 100% 76% Mid Cap Index 77 23 100 100 80 Small Cap Index 16 84 100 100 100
(a) and (b) are based on a percentage of the Fund's total distributions. (c) is based on a percentage of ordinary income distributions of the Fund. (d) For the fiscal year ended September 30, 2003 certain dividends paid by the funds may be subject to a maximum tax rate of 15%, as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The Funds intend to designate up to the maximum amount of $18,240,208; $1,351,613; and $661,306 for the Equity Index, Mid Cap, and Small Cap Funds, respectively. Complete information will be computed and reported in conjunction with your 2003 Form 1099-DIV. As of September 30, 2003, the calendar year to date percentages for each of the Funds was 100%. HOW TO OBTAIN A COPY OF THE FUNDS' PROXY VOTING POLICIES A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available (1) without charge upon request by calling 800.677.FUND; (2) at firstamericanfunds.com; and (3) on the U.S. Securities and Exchange Commission's website at sec.gov. 54 Directors and Officers of the Funds Independent Directors
OTHER POSITION(S) TERM OF OFFICE NUMBER OF PORTFOLIOS DIRECTORSHIPS NAME, ADDRESS, AND HELD AND LENGTH OF PRINCIPAL OCCUPATION(S) IN FUND COMPLEX HELD BY YEAR OF BIRTH WITH FUND TIME SERVED DURING PAST 5 YEARS OVERSEEN BY DIRECTOR DIRECTOR + - -------------------------------------------------------------------------------------------------------------------------------- Benjamin R. Field III, Director Term expiring Senior Financial First American Funds None 800 Nicollet Mall, earlier of death, Advisor, Bemis Complex: twelve Minneapolis, MN resignation, Company, Inc. since registered 55402 (1939) removal, 2002; Senior Vice investment disqualification, or President, Chief companies, including successor duly Financial Officer sixty one portfolios elected and and Treasurer, qualified. Director Bemis, through 2002 of FAIF, since September 2003 Mickey P. Foret, Director Term expiring Consultant to First American Funds ADC 800 Nicollet Mall, earlier of death, Northwest Airlines, Complex: twelve Telecommunications, Minneapolis, MN resignation, Inc. since 2002; registered Inc., 55402 (1946) removal, Executive Vice investment URS Corporation, disqualification, or President and Chief companies, including Champion successor duly Financial Officer, sixty one portfolios Airlines, Inc. elected and Northwest Airlines, qualified. Director through 2002 of FAIF since September 2003 Roger A. Gibson, Director Term expiring Vice President, First American Funds None 800 Nicollet Mall, earlier of death, Cargo - United Complex: twelve Minneapolis, MN resignation, Airlines, since July registered 55402 (1946) removal, 2001; Vice investment disqualification, or President, North companies, including successor duly America-Mountain sixty one portfolios elected and Region, United qualified. Director Airlines, prior to of FAIF since July 2001 October 1997 Victoria J. Herget, Director Term expiring Investment First American Funds None 800 Nicollet Mall, earlier of death, consultant and Complex: twelve Minneapolis, MN resignation, non-profit board registered 55402 (1952) removal, member since 2001; investment disqualification, or Managing Director of companies, including successor duly Zurich Scudder sixty one portfolios elected and Investments through qualified. Director 2001 of FAIF since September 2003 Leonard W. Kedrowski, Director Term expiring Owner, Executive and First American Funds None 800 Nicollet Mall, earlier of death, Management Complex: twelve Minneapolis, MN resignation, Consulting, Inc., a registered 55402 (1941) removal, management investment disqualification, or consulting firm; companies, including successor duly former Chief sixty one portfolios elected and Executive Officer, qualified. Director Creative Promotions of FAIF since International, LLC, November 1993 a promotional award programs and products company, through October 2003; Board member, GC McGuiggan Corporation (DBA Smyth Companies), a label printer; Advisory Board member, Designer Doors, manufacturer of designer doors, through 2002; acted as CEO of Graphics Unlimited Director through 1998 Richard K. Riederer, Director Term expiring Retired; Director, First American Funds None 800 Nicollet Mall, earlier of death, President and Chief Complex: twelve Minneapolis, MN resignation, Executive Officer, registered 55402 (1944) removal, Weirton Steel investment disqualification, or through 2001 companies, including successor duly sixty one portfolios elected and qualified. Director of FAIF since August 2001
55
OTHER POSITION(S) TERM OF OFFICE NUMBER OF PORTFOLIOS DIRECTORSHIPS NAME, ADDRESS, AND HELD AND LENGTH OF PRINCIPAL OCCUPATION(S) IN FUND COMPLEX HELD BY YEAR OF BIRTH WITH FUND TIME SERVED DURING PAST 5 YEARS OVERSEEN BY DIRECTOR DIRECTOR + - -------------------------------------------------------------------------------------------------------------------------------- Joseph D. Strauss, Director Term expiring Owner and President, First American Funds None 800 Nicollet Mall, earlier of death, Excensus TM LLC, a Complex: twelve Minneapolis, MN resignation, consulting firm, registered 55402 (1940) removal, since 2001; Owner investment disqualification, or and President, companies, including successor duly Strauss Management sixty one portfolios elected and Company, a Minnesota qualified. Director holding company for of FAIF since April various 1991 organizational management business ventures; Owner, Chairman and Chief Executive Officer, Community Resource Partnerships, Inc., a strategic planning, operations management, government relations, transportation planning and public relations organization; attorney at law Virginia L. Stringer, Chair; Chair Term three Owner and President, First American Funds None 800 Nicollet Mall, Director years. Directors Strategic Management Complex: twelve Minneapolis, MN Term expiring Resources, Inc., a registered 55402 (1944) earlier of death, management investment resignation, consulting firm; companies, including removal, Executive Consultant sixty one portfolios disqualification, or for State Farm successor duly Insurance Company elected and qualified. Chair of FAIF's Board since September 1997; Director of FAIF since August 1987 James M. Wade, Director Term expiring Owner and President, First American Funds None 800 Nicollet Mall, earlier of death, Jim Wade Homes, a Complex: twelve Minneapolis, MN resignation, homebuilding registered 55402 (1943) removal, company, since 1999 investment disqualification, or companies, including successor duly sixty one portfolios elected and qualified. Director of FAIF since August 2001
+ Includes only directorships in a company with a class of securities registered pursuant to Section 12 of the Securities Exchange Act or subject to the requirements of Section 15(d) of the Securities Exchange Act, or any company registered as an investment company under the Investment Company Act. The Statement of Additional Information (SAI) includes additional information about fund directors and is available upon request without charge by calling 800-677-FUND or writing to First American Funds, P.O. Box 1330, Minneapolis, Minnesota, 55440-1330. 56 Officers
POSITION(S) TERM OF OFFICE NAME, ADDRESS, AND HELD AND LENGTH OF YEAR OF BIRTH WITH FUND TIME SERVED PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS - -------------------------------------------------------------------------------------------------------------------------------- Thomas S. Schreier, Jr., President Re-elected by the Chief Executive Officer of U.S. Bancorp U.S. Bancorp Asset Board annually; Asset Management, Inc. since May 2001; Management, Inc., President of FAIF Chief Executive Officer of First American 800 Nicollet Mall, since February 2001 Asset Management from December 2000 through Minneapolis, MN May 2001 and of Firstar Investment & 55402 (1962) * Research Management Company from February 2001 through May 2001; Senior Managing Director and Head of Equity Research of U.S. Bancorp Piper Jaffray from October 1998 through December 2000; prior to October 1998, Senior Airline Equity Analyst and a Director in the Equity Research Department, Credit Suisse First Boston Mark S. Jordahl, Vice Re-elected by the Chief Investment Officer of U.S. Bancorp U.S. Bancorp Asset President- Board annually; Vice Asset Management, Inc. since September Management, Inc. Investments President - 2001; President and Chief Investment 800 Nicollet Mall, Investments of FAIF Officer, ING Investment Management - Minneapolis, MN since September 2001 Americas, September 2000 to June 2001; 55402 (1960) * Senior Vice President and Chief Investment Officer, ReliaStar Financial Corp., January 1998 to September 2000 Jeffery M. Wilson, Vice Re-elected by the Senior Vice President of U.S. Bancorp Asset U.S. Bancorp Asset President- Board annually; Vice Management since May 2001; prior thereto, Management, Inc. Administration President - Senior Vice President of First American 800 Nicollet Mall, Administration of Asset Management Minneapolis, MN FAIF since March 55402 (1956) * 2000 Robert H. Nelson, Treasurer Re-elected by the Senior Vice President of U.S. Bancorp Asset U.S. Bancorp Asset Board annually; Management since May 2001; prior thereto, Management, Inc. Treasurer of FAIF Senior Vice President of First American 800 Nicollet Mall, since March 2000 Asset Management since 1998 and of Firstar Minneapolis, MN Investment & Research Management Company 55402 (1963) * since February 2001; Senior Vice President of Piper Capital Management Inc. through 1998 James D. Alt, Secretary Re-elected by the Partner, Dorsey & Whitney LLP, a 50 South Sixth Street, Board annually; Minneapolis-based law firm Suite 1500, Assistant Secretary Minneapolis, MN of FAIF from 55402 (1951) September 1998 through June 2002. Secretary of FAIF since June 2002 Michael J. Radmer, Assistant Re-elected by the Partner, Dorsey & Whitney LLP, a 50 South Sixth Street, Secretary Board annually; Minneapolis- based law firm Suite 1500, Assistant Secretary Minneapolis, MN of FAIF since March 55402 (1945) 2000; Secretary of FAIF from September 1999 through March 2000 Kathleen L. Prudhomme, Assistant Re-elected by the Partner, Dorsey & Whitney LLP, a 50 South Sixth Street, Secretary Board annually; Minneapolis- based law firm Suite 1500, Assistant Secretary 03 Minneapolis, MN of FAIF since 55402 (1953) September 1998 James R. Arnold, Assistant Re-elected by the Vice President, U.S. Bancorp Fund Services, 615 E. Michigan Street, Secretary Board annually; LLC since March 2002; Senior Administration Milwaukee, WI Assistant Secretary Services Manager, UMB Fund Services, Inc. 53202 (1957) * of FAIF since June through March 2002 2003 Richard J. Ertel, Assistant Re-elected by the Disclosure Counsel, U.S. Bancorp Asset U.S. Bancorp Asset Secretary Board annually; Management, Inc. since May 2003; Associate Management, Inc. Assistant Secretary Counsel, Hartford Life and Accident 800 Nicollet Mall, of FAIF since June Insurance Company from April 2001 through Minneapolis, MN 2003 May 2003; Attorney and Law Clerk, Fortis 55402 (1967)* Financial Group, through March 2001 Douglas G. Hess, Assistant Re-elected by the Vice President, U.S. Bancorp Fund Services, 615 E. Michigan Street, Secretary Board annually; LLC since November 2002; prior thereto, Milwaukee, WI Assistant Secretary Assistant Vice President, Fund Compliance 53202 (1967) * of FAIF since Administrator, U.S. Bancorp Fund Services, September 2001 LLC
* Messrs. Schreier, Jordahl, Wilson, Nelson, and Ertel are each officers of U.S. Bancorp Asset Management, Inc., which serves as investment advisor and co-administrator for FAIF. Messrs. Hess and Arnold are officers of U.S. Bancorp Fund Services, LLC, which is a subsidiary of U.S. Bancorp and which serves as co-administrator for FAIF. 57 Board of Directors First American Investment Funds, Inc. Virginia Stringer Chairperson of First American Investment Funds, Inc. Owner and President of Strategic Management Resources, Inc. Benjamin Field III Director of First American Investment Funds, Inc. Senior Financial Advisor to, and formerly Senior Vice President, Chief Financial Officer, and Treasurer of, Bemis Company, Inc. Mickey Foret Director of First American Investment Funds, Inc. Consultant to, and formerly Executive Vice President and Chief Financial Officer of, Northwest Airlines, Inc. Roger Gibson Director of First American Investment Funds, Inc. Vice President, Cargo-United Airlines Victoria Herget Director of First American Investment Funds, Inc. Investment Consultant; former Managing Director of Zurich Scudder Investments Leonard Kedrowski Director of First American Investment Funds, Inc. Owner and President of Executive and Management Consulting, Inc. Richard Riederer Director of First American Investment Funds, Inc. Retired; former President and Chief Executive Officer of Weirton Steel Joseph Strauss Director of First American Investment Funds, Inc. Former Chairman of First American Investment Funds, Inc. Owner and President of Strauss Management Company James Wade Director of First American Investment Funds, Inc. Owner and President of Jim Wade Homes FIRST AMERICAN INVESTMENT FUNDS' BOARD OF DIRECTORS IS COMPRISED ENTIRELY OF INDEPENDENT DIRECTORS. [FIRST AMERICAN FUNDS(SM) LOGO] DIRECT FUND CORRESPONDENCE TO: FIRST AMERICAN FUNDS P.O. Box 1330 Minneapolis, MN 55440-1330 This report and the financial statements contained herein are 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. The views expressed in this report reflect those of the portfolio managers only through the period ended September 30, 2003. The portfolio managers' views are subject to change at any time based upon market or other conditions. Please refer to the prospectus, which contains more complete information on First American Funds, including risks, fees, and expenses. Please read it carefully before investing or sending money. This report must be preceded or accompanied by a current prospectus. 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 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 Bulk Rate P.O. Box 1330 U.S. Postage Minneapolis, MN 55440-1330 PAID Mpls, MN In an attempt to reduce shareholder costs and help Permit No. 26388 eliminate duplication, First American Funds will try to limit their mailing to one report for each USPS Mailer 881 address that lists one or more shareholders with Approved Poly the same last name. If you would like additional copies, please call First American Investor Services at 800.677.FUND or visit firstamericanfunds.com. 0214-03 11/2003 AR-INDEX ITEM 2--CODE OF ETHICS RESPONSE: The registrant has adopted a code of ethics (designated as the "Code of Ethical Conduct") that applies to its principal executive officer and principal financial officer. The registrant undertakes to furnish a copy of such Code of Ethical Conduct to any person upon request, without charge, by calling 1-800-677-3863. ITEM 3--AUDIT COMMITTEE FINANCIAL EXPERT RESPONSE: The registrant's Board of Directors has determined that Leonard Kedrowski, Benjamin Field, and Mickey Foret, members of the registrant's Audit Committee, are each an "audit committee financial expert" and are "independent," as these terms are defined in this Item. This designation will not increase the designees' duties, obligations or liability as compared to their duties, obligations and liability as members of the Audit Committee and of the Board of Directors. ITEM 4--PRINCIPAL ACCOUNTANT FEES AND SERVICES RESPONSE: Not required for annual reports filed for periods ending before December 15, 2003. ITEM 5--AUDIT COMMITTEE OF LISTED REGISTRANTS RESPONSE: Not applicable to the registrant. ITEM 6 - Reserved. ITEM 7--DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES RESPONSE: Not applicable to the registrant. ITEM 8 - Reserved. ITEM 9--CONTROLS AND PROCEDURES (a) RESPONSE: The registrant's Principal Executive Officer and Principal Financial Officer have evaluated the registrant's disclosure controls and procedures within 90 days of the date of this filing and have concluded that the registrant's disclosure controls and procedures were effective, as of that date, in ensuring that information required to be disclosed by the registrant in this Form N-CSR was recorded, processed, summarized and reported timely. Notwithstanding this conclusion, the registrant's Principal Executive Officer and Principal Financial Officer seek continuous improvements to the registrant's disclosure controls and procedures. (b) RESPONSE: There were no changes in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 10 - EXHIBITS 10(a) - Code of Ethical Conduct RESPONSE: Attached hereto. 10(b) - Attach certifications (4 in total pursuant to Sections 302 and 906 for PEO/PFO). RESPONSE: Attached hereto. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. First American Investment Funds, Inc. By /s/ Thomas S. Schreier, Jr. --------------------------- Thomas S. Schreier, Jr. President Date: December 8, 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: December 8, 2003 By /s/ Jonathan P. Lillemoen --------------------------- Jonathan P. Lillemoen Director, USBAM Fund Treasury Date: December 8, 2003 EX-99.CODEETH 3 a2122864zex-99_codeeth.txt EXHIBIT 99.CODE ETH EX-99.CODE ETH CODE OF ETHICAL CONDUCT OF FIRST AMERICAN FUNDS, INC. FIRST AMERICAN INVESTMENT FUNDS, INC. FIRST AMERICAN STRATEGY FUNDS, INC. FIRST AMERICAN INSURANCE PORTFOLIOS, INC. AMERICAN MUNICIPAL INCOME PORTFOLIO INC. MINNESOTA MUNICIPAL INCOME PORTFOLIO INC. FIRST AMERICAN MINNESOTA MUNICIPAL INCOME FUND II, INC. AMERICAN INCOME FUND, INC. AMERICAN STRATEGIC INCOME PORTFOLIO INC. AMERICAN STRATEGIC INCOME PORTFOLIO INC. II AMERICAN STRATEGIC INCOME PORTFOLIO INC. III AMERICAN SELECT PORTFOLIO INC. I. COVERED OFFICERS/PURPOSE OF THE CODE The First American Funds' Code of Ethical Conduct (this "Code") for the investment companies within the complex (collectively, "Funds" and each, "Company") applies to each such Company's officers (the "Covered Officers", a list of which is set forth in Exhibit A) for the purpose of promoting: - honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships; - full, fair, accurate, timely and understandable disclosure in reports and documents that a registrant files with, or submits to, the SEC and in other public communications made by a Company; - compliance with applicable laws and governmental rules and regulations; - the prompt internal reporting of violations of the Code to an appropriate person or persons identified in the Code; and - accountability for adherence to the Code. Each Covered Officer should adhere to a high standard of business ethics and should be sensitive to situations that may give rise to actual as well as apparent conflicts of interest. The Code also applies to each Covered Officer's immediate family members as long as they are living in the same household. Therefore, for purposes of interpretation, each obligation, requirement or prohibition that applies to a Covered Officer also applies to such Covered Officer's family members. Currently, all Covered Officers are employees of affiliated Company service providers- the Funds' investment advisor and co-administrator, U.S. Bancorp Asset Management, Inc. ("USBAM"), and the Funds' other co-administrator, U.S. Bancorp Fund Services ("USBFS"). The phrase "Covered Officers" does not include partners of Dorsey & Whitney, the Funds' outside counsel. II. COVERED OFFICERS SHOULD HANDLE ETHICALLY ACTUAL AND APPARENT CONFLICTS OF INTEREST OVERVIEW. A "conflict of interest" occurs when a Covered Officer's private interest interferes with the interests of, or his service to, a Company. For example, a conflict of interest would arise if a Covered Officer, or a member of his family, receives improper personal benefits as a result of his position in the Company. Certain conflicts of interest covered by this Code arise out of the relationships between Covered Officers and a Company and already are subject to conflict of interest provisions in the Investment Company Act of 1940 ("Investment Company Act") and the Investment Advisers Act of 1940 ("Investment Advisers Act"). For example, Covered Officers may not individually engage in certain transactions (such as the purchase or sale of securities or other property) with the Company because of their status as "affiliated persons" of a Company. The Company's and USBAM's compliance programs and procedures are designed to prevent, or identify and correct, violations of these provisions. THIS CODE DOES NOT, AND IS NOT INTENDED TO, REPEAT OR REPLACE THESE PROGRAMS AND PROCEDURES AND SUCH CONFLICTS FALL OUTSIDE OF THE PARAMETERS OF THIS CODE. Although typically not presenting an opportunity for improper personal benefit, conflicts arise from, or as a result of, the contractual relationship between a Company and USBAM/USBFS of which the Covered Officers are also officers or employees. As a result, this Code recognizes that the Covered Officers will, in the normal course of their duties (whether formally for a Company or for the adviser/administrator, or for all), be involved in establishing policies and implementing decisions which will have different effects on the adviser/administrator and the Company. The participation of the Covered Officers in such activities is inherent in the contractual relationship between the Company and the adviser/administrator and is consistent with the performance by the Covered Officers of their duties as officers of a Company. Thus, if performed in conformity with the provisions of the Investment Company Act and the Investment Advisers Act, such activities will be deemed to have been handled ethically. In addition, it is recognized by the Funds' Board of Directors that the Covered Officers may also be officers or employees of one or more other investment companies covered by this or other Codes. Other conflicts of interest are covered by the Code, even if such conflicts of interest are not subject to provisions in the Investment Company Act and the Investment Advisers Act. The following list provides examples of conflicts of interest under the Code, but Covered Officers should keep in mind that these examples are not exhaustive. THE OVERARCHING PRINCIPLE IS THAT THE PERSONAL INTEREST OF A COVERED OFFICER SHOULD NOT BE PLACED IMPROPERLY BEFORE THE INTEREST OF A COMPANY. Each Covered Officer must: - not use his personal influence or personal relationships improperly to influence investment decisions or financial reporting by a Company whereby the Covered Officer would benefit personally; - not cause a Company to take action, or fail to take action, for the individual personal benefit of the Covered Officer rather than the benefit of such Company; - not intentionally or recklessly take or direct any action or failure to act that results in any SEC filing or other public Company communication being materially misleading, while personally benefiting such Covered Officer; and, - not request cash or gifts, including any entertainment or similar benefit, from any firm or party, with which a Company has current or prospective business dealings, including Company directors, Fund affiliates and service providers. There are some conflicts of interest situations that should always be reviewed with the adviser's General Counsel. These include, but are not limited to: - the receipt of cash or GIFTS IN EXCESS OF $100 from any one firm or party, including Company directors, Fund affiliates and service providers, with which a Company has current or prospective business dealings; - the receipt of any ENTERTAINMENT OR SIMILAR BENEFIT from any firm or party, including Company directors, Fund affiliates and service providers, with which a Company has current or prospective business dealings unless such entertainment is reasonable in cost, appropriate as to time and place, includes a representative of the firm or party, and not so frequent as to raise any question of impropriety; - any ownership interest in, or any consulting or employment relationship with, any Company service providers, other than its investment adviser, principal underwriter, administrator or any affiliated person thereof; and - a direct or indirect financial interest in commissions, transactions charges or spreads paid by a Company for effecting portfolio transactions or for selling or redeeming shares other than an interest arising from the Covered Officer's employment, such as compensation or equity ownership. In all instances, Covered Officers are expected to use reason, judgement and common sense to avoid any question or appearance of impropriety. Covered Officers should seek the assistance of the adviser's General Counsel in case of questions. III. DISCLOSURE AND COMPLIANCE - Each Covered Officer must familiarize himself with the disclosure requirements generally applicable to a Company; - each Covered Officer should not knowingly misrepresent, or cause others to misrepresent, facts about a Company to others, whether within or outside a Company, including to a Company's directors and auditors, and to governmental regulators and self-regulatory organizations; - each Covered Officer should, to the extent appropriate within his area of responsibility, consult with other officers and employees of the Funds and the adviser with the goal of promoting full, fair, accurate, timely and understandable disclosure in the reports and documents the Funds file with, or submit to, the SEC and in other public communications made by the Funds; and - it is the responsibility of each Covered Officer to promote compliance with the standards and restrictions imposed by applicable laws, rules and regulations. IV. REPORTING AND ACCOUNTABILITY Each Covered Officer must: - upon adoption of the Code or upon being made subject to the Code, affirm in writing to the Funds' Board that such Covered Officer has received, read, and understands the Code; - annually affirm in writing to the Funds' Board that such Covered Officer has complied with the requirements of the Code; - annually report in writing to USBAM's Compliance Department all affiliations that might give rise to a conflict of interest with respect to such person's status as a Covered Officer; - quarterly report to USBAM's Compliance Department the following: - all cash and gifts with a value in excess of $100 received from any firm or party that has current or prospective business dealings with a Company; - all receipt of any entertainment or similar benefit from any firm or party, including Company directors, Fund affiliates and service providers, with which a Company has current or prospective business dealings; - not retaliate against any Fund affiliate employee, service provider employee or Covered Officer for reports of potential violations that are made in good faith; and - notify USBAM's General Counsel promptly if he knows of any violation of this Code. Failure to do so is itself a violation of this Code. USBAM's General Counsel is responsible for applying this Code to specific situations in which questions are presented under it and has the authority to interpret this Code in any particular situation. In doing so, such General Counsel is authorized and encouraged to consult with Company counsel and counsel to the Company's independent directors. However, approvals, interpretations, or waivers sought by a Company's President will be considered by such Company's Qualified Legal Compliance Committee (the "Committee"). The Funds will follow these procedures in investigating and enforcing this Code: - the General Counsel will take all appropriate action to investigate any violations and potential violations reported to it; - if, after such investigation, the General Counsel reasonably believes that no violation has occurred, the General Counsel is not required to take any further action and such conclusion will be documented and reported to the Committee at its next regularly scheduled meeting; - any matter the General Counsel believes is a violation will be reported in writing to the Committee; - if the Committee concurs that a violation has occurred, it will inform and make a recommendation to the Board, which will consider appropriate action, which may include review of, and appropriate modifications to, applicable policies and procedures; notification of the appropriate supervisory executives of either the investment adviser, the applicable service provider, or any applicable parent company thereof; or a recommendation to dismiss the Covered Officer; - the Committee will be responsible for granting waivers (defined as a material departure from a provision of this Code), as appropriate; and - any changes to or waivers of this Code will, to the extent required, be disclosed as provided by SEC rules. V. OTHER POLICIES AND PROCEDURES This Code shall be the sole code of ethics adopted by the Funds for purposes of Section 406 of the Sarbanes-Oxley Act and the rules and forms applicable to registered investment companies thereunder. USBAM's code of ethics under Rule 17j-1 under the Investment Company Act, USBAM's more detailed operational and regulatory compliance policies and procedures, and U.S. Bancorp's Code of Ethics are separate requirements applying to the Covered Officers and others, and are not specifically a part of this Code. VI. AMENDMENTS Any amendments to this Code, other than amendments to Exhibit A, must be approved or ratified by a majority vote of the Company's board, including a majority of independent directors. VII. CONFIDENTIALITY All reports and records prepared or maintained pursuant to this Code will be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the Company Board, Company counsel, counsel to the independent directors, USBAM's Compliance Department, and the appropriate senior managers of USBAM and its affiliates. VIII. INTERNAL USE The Code is intended solely for the internal use by the Funds and does not constitute an admission, by or on behalf of any Company, as to any fact, circumstance, or legal conclusion. Date: 2003 EX-99.CERT 4 a2122864zex-99_cert.txt EXHBIT 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; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and c) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officers and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: December 8, 2003 /s/ Thomas S. Schreier, Jr. - --------------------------------- Thomas S. Schreier, Jr. President I, Jonathan P. Lillemoen, 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; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and c) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officers and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: December 8, 2003 /s/ Jonathan P. Lillemoen - ----------------------------- Jonathan P. Lillemoen Director, USBAM Fund Treasury EX-99.906CERT 5 a2122864zex-99_906cert.txt EXHIBIT 99.906CERT EX-99.906CERT CERTIFICATIONS 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 "Funds") do hereby certify, to the best of each such officer's knowledge, 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: December 8, 2003 By /s/ Jonathan P. Lillemoen ----------------------------- Jonathan P. Lillemoen Director, USBAM Fund Treasury Date: December 8, 2003 -----END PRIVACY-ENHANCED MESSAGE-----