-----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, DaPczVvFMn8NaGp9HYuLUEKrFrIsMJ7QPJp5huvvVAJx0fZClJXSNEEpRPdk5YHa pSvsiZdfEqxueUH6PkIJ5w== 0001047469-03-039780.txt : 20031209 0001047469-03-039780.hdr.sgml : 20031209 20031208193120 ACCESSION NUMBER: 0001047469-03-039780 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: 031043365 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 a2122905zn-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 [FIRST AMERICAN FUNDS(TM) LOGO] 2003 ANNUAL REPORT TAX FREE INCOME FUNDS [GRAPHIC] "NOTHING BUT HARMONY, HONESTY, INDUSTRY, AND FRUGALITY ARE NECESSARY TO MAKE US A GREAT AND HAPPY PEOPLE." GEORGE WASHINGTON JANUARY 29, 1789 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 31 Schedule of Investments 32 Statements of Assets and Liabilities 88 Statements of Operations 90 Statements of Changes in Net Assets 92 Financial Highlights 96 Notes to Financial Statements 104 Notice to Shareholders 113
INCOME FROM TAX-EXEMPT FUNDS MAY BE SUBJECT TO STATE AND LOCAL TAXES AND A PORTION OF INCOME MAY BE SUBJECT TO THE STATE AND/OR FEDERAL ALTERNATIVE MINIMUM TAX FOR CERTAIN INVESTORS. FEDERAL INCOME TAX RULES WILL APPLY TO ANY CAPITAL GAINS DISTRIBUTIONS. 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 ARIZONA TAX FREE FUND Investment Objective: MAXIMUM CURRENT INCOME THAT IS EXEMPT FROM BOTH FEDERAL INCOME TAX AND ARIZONA STATE INCOME TAX TO THE EXTENT CONSISTENT WITH PRUDENT INVESTMENT RISK First American Arizona Tax Free Fund Class Y shares returned 3.86% for the fiscal year (Class A shares returned 3.61% at net asset value for the same period). By comparison, the Fund's benchmark, the Lehman Municipal Bond Index*, returned 3.89%. The municipal market experienced bouts of volatility over the course of the fiscal year ended September 30, 2003. Yields on the Bond Buyer 20 Index fell from a high of 5.12% in October 2002 to a low of 4.21% in mid-June before rising back to 5.18% in August. One-month total return for the broad municipal market in July was the worst in nine years, while September's rally produced the highest one-month total return in eight years. Because of this market volatility, it was important to maintain our focus on long-term strategies. Significant shifts or reversals in strategy during volatile markets can negatively impact performance. Although national municipal new issuance was up 13% through September 30 vs. 2002, Arizona supply was down 6.4%. This kept prices high, but hindered the search for attractive purchase opportunities. We typically maintained a slightly longer duration than the stated benchmark primarily to capture any additional yield benefits. This approach provides the greatest benefit during a falling interest-rate environment, which existed through mid-June. Duration is a time measure of interest-rate risk exposure that estimates how much a bond, or a bond fund's price, fluctuates with changes in interest rates. The longer the duration, the more price volatility you can expect in the fund's price per share. The Fed continued its efforts to stimulate the economy by keeping short-term borrowing costs low. This had a negative effect on cash and short-term investments as yields fell below 1.00%. As such, the Fund's decision to reduce its allocation to cash and short-term securities in favor of longer maturing, higher income-producing assets helped the Fund's performance. The significant reduction of our exposure to uninsured multifamily housing bonds in the Arizona market was beneficial to the Fund. This sector suffered as traditional renters were able to buy homes due to low interest rates, the economic downturn, and increased competition. However, our remaining exposure to multifamily housing bonds negatively impacted the performance. The Fund's overweighting in the health/hospital and general obligation sectors, as well as its commitment to high-yielding BBB and nonrated securities, was a positive contributing factor to Fund performance. 2 ANNUALIZED PERFORMANCE(1) as of September 30, 2003
SINCE INCEPTION(4) ------------------ 1 YEAR 2/1/2000 Class A NAV 3.61% 8.46% Class A POP -0.82% 7.19% Class C NAV 3.10% 8.02% Class C POP 1.05% 7.73% Class Y 3.86% 8.72% Lehman Municipal Bond Index(3) 3.89% 8.22%
[CHART] VALUE OF A $10,000 INVESTMENT(1),(2) as of September 30, 2003 [PLOT POINTS TO COME] * 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. Income from tax-exempt funds may be subject to state and local taxes and a portion of income may be subject to the federal alternative minimum tax for certain investors. Capital gains distributions, if any, will be subject to tax. 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 4.25% for Class A shares and 1.00% for Class C shares, and the maximum contingent deferred sales charge ("CDSC") for Class C shares for the relevant period. Maximum CDSC is 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV. (2) Performance for Class C shares is not presented. Performance for this class is lower due to higher expenses. (3) An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities of one year or more. (4) The performance since inception of the index for each class is calculated from the month end following the inception of the class. 3 CALIFORNIA INTERMEDIATE TAX FREE FUND Investment Objective: CURRENT INCOME THAT IS EXEMPT FROM BOTH FEDERAL INCOME TAX AND CALIFORNIA STATE INCOME TAX TO THE EXTENT CONSISTENT WITH PRESERVATION OF CAPITAL First American California Intermediate Tax Free Fund Class Y shares returned 2.83% for the fiscal year (Class A shares returned 2.58% at net asset value for the same period). By comparison, the Fund's benchmark, the Lehman 7-Year Municipal Bond Index*, returned 4.71%. Although municipal yields for maturities five years and longer finished within 0.30% of where they were a year ago, the market experienced bouts of volatility in the fiscal year ended September 30, 2003. Yields on seven-year AAA-rated bonds went from a high in October 2002 of 3.56% to a low of 2.38% in mid-June before going back up to 3.50% in early August. One-month total return for the broad municipal market in July was the worst in nine years, while September's rally produced the highest one-month total return in eight years. California was the poster child for state woes as political gridlock, budget deficits, and a gubernatorial recall election rocked the state. Financial uncertainty clouds the horizon as a new governor takes office to grapple with an ever-ballooning budget deficit. All three major credit rating agencies dropped the state of California's ratings during the fiscal year. Moody's dropped the rating to A3 from A1 with a negative outlook, Standard & Poor's dropped the rating to BBB from A, and Fitch dropped the state to A from AA. California now has the lowest credit rating of any state. Declining credit quality at the state level and heavy bond issuance (up 60% in 2003 vs. 13% nationwide) combined to dramatically increase the yield required on California bonds relative to the rest of the country. This, in turn, caused California bonds (and funds) to underperform their national counterparts. This is a major cause of the underperformance relative to the benchmark index. Due to the Fed keeping short-term interest rates low, California municipal yields for bonds with maturities of five years and shorter were close to unchanged from the beginning to the end of the Fund's fiscal year, while yields on longer bonds rose modestly. The Fund maintains relatively equal holdings across a range of maturities. This helps insulate it from volatility due to changes in yields across the maturity spectrum. The segment of the Fund situated in 12- to 15-year maturities had the highest absolute performance, while the 10-year segment of the Fund underperformed. We typically maintained a duration slightly longer than our benchmark (around 110%) primarily to capture any additional yield benefits. This approach provides the greatest benefit during a falling interest-rate environment, which existed through mid-June. Duration is a time measure of interest-rate risk exposure that estimates how much a bond, or a bond fund's price, fluctuates with changes in interest rates. The longer the duration, the more price volatility you can expect in the fund's price per share. Many of the higher-yielding sectors and holdings performed well during the year. The Fund's hospital and healthcare holdings were among the best performing sectors. General obligation and lease bonds were two sectors that underperformed relative to other sectors in the Fund. 4 ANNUALIZED PERFORMANCE(1) as of September 30, 2003
SINCE INCEPTION(3) ------------------ 1 YEAR 5 YEARS 8/8/1997 Class A NAV 2.58% 4.83% 5.37% Class A POP 0.26% 4.36% 4.98% Class Y 2.83% 4.95% 5.45% Lehman 7-Year Municipal Bond Index(2) 4.71% 5.84% 6.27%
[CHART] VALUE OF A $10,000 INVESTMENT(1) as of September 30, 2003 [PLOT POINTS TO COME] * 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. Income from tax-exempt funds may be subject to state and local taxes and a portion of income may be subject to the federal alternative minimum tax for certain investors. Capital gains distributions, if any, will be subject to tax. 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 2.25% for Class A shares. Total returns assume reinvestment of all distributions at NAV. (2) An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities of one year or more. (3) The performance since inception of the index for each class is calculated from the month end following the inception of the class. 5 CALIFORNIA TAX FREE FUND Investment Objective: MAXIMUM CURRENT INCOME THAT IS EXEMPT FROM BOTH FEDERAL INCOME TAX AND CALIFORNIA STATE INCOME TAX TO THE EXTENT CONSISTENT WITH PRUDENT INVESTMENT RISK First American California Tax Free Fund Class Y shares returned 3.11% for the fiscal year (Class A shares returned 2.85% at net asset value for the same period). By comparison, the Fund's benchmark, the Lehman Municipal Bond Index*, returned 3.89%. The municipal market experienced bouts of volatility over the course of the fiscal year ended September 30, 2003. Yields on the Bond Buyer 20 Index fell from a high of 5.12% in October 2002 to a low of 4.21% in mid-June before rising back to 5.18% in August. One-month total return for the broad municipal market in July was the worst in nine years, while September's rally produced the highest one-month total return in eight years. Because of this market volatility, it was important to maintain our focus on long-term strategies. Significant shifts or reversals in strategy during volatile markets can negatively impact performance. California was the poster child for state woes as political gridlock, budget deficits, and a gubernatorial recall election rocked the state. Financial uncertainty clouds the horizon as a new governor takes office to grapple with an ever-ballooning budget deficit. All three major credit rating agencies dropped the state of California's ratings during the fiscal year. Moody's dropped the rating to A3 from A1 with a negative outlook, Standard & Poor's dropped the rating to BBB from A, and Fitch dropped the state to A from AA. California now has the lowest credit rating of any state. California municipal bond issuance has led the nation to record issuance year-to-date. Through the fiscal year ended September 30, 2003, issuance was up 60% over same period 2002. Year-to-date, California municipalities had issued nearly $49 billion in debt, the second highest issuing state is New York with $29 billion. The budgetary concerns, the rating downgrades, and high issuance have caused the relative value of California municipal bonds compared to other states' municipal bonds to deteriorate. This, in turn, caused California bonds (and funds) to underperform their national counterparts. This is the primary cause of the Fund's underperformance relative to the the benchmark index. The Fed continued its efforts to stimulate the economy by keeping short-term borrowing costs low. This had a negative effect on cash and short-term investments as yields fell below 1.00%. As such, the Fund's decision to reduce its allocation to cash and short-term securities in favor of longer maturing, higher income-producing assets helped the Fund's performance. For most of the year the duration of the Fund was held at approximately 115% of its benchmark. Over the last quarter of the fiscal year the duration was lowered to approximately 107% of its benchmark. We typically maintain a slightly longer duration than the benchmark primarily to capture any additional yield benefits. This approach provides the greatest benefit during a falling interest-rate environment, which existed through mid-June. Duration is a time measure of interest-rate risk exposure that estimates how much a bond, or a bond fund's price, fluctuates with changes in interest rates. The longer the duration, the more price volatility you can expect in the fund's price per share. We continued to emphasize insured, premium coupon bonds in the 15- to 20-year maturity range for most of the year. However, as the bond market became more volatile, these longer duration bonds were sold and replaced with bonds in the five-year range. The Fund maintains relatively equal holdings across a range of maturities. This helps insulate it from volatility due to changes in yields across the maturity spectrum. The Fund has a high representation of general obligation debt (not solely supported by the general fund of the state) and revenue bonds and is fairly diversified across revenue sectors. 6 ANNUALIZED PERFORMANCE(1) as of September 30, 2003
SINCE INCEPTION(4) ------------------ 1 YEAR 2/1/2000 Class A NAV 2.85% 8.70% Class A POP -1.55% 7.43% Class C NAV 2.45% 8.31% Class C POP 0.43% 8.01% Class Y 3.11% 8.95% Lehman Municipal Bond Index(3) 3.89% 8.22%
[CHART] VALUE OF A $10,000 INVESTMENT(1),(2) as of September 30, 2003 [PLOT POINTS TO COME] * 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. Income from tax-exempt funds may be subject to state and local taxes and a portion of income may be subject to the federal alternative minimum tax for certain investors. Capital gains distributions, if any, will be subject to tax. 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 4.25% for Class A shares and 1.00% for Class C shares, and the maximum contingent deferred sales charge ("CDSC") for Class C shares for the relevant period. Maximum CDSC is 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV. (2) Performance for Class C shares is not presented. Performance for this class is lower due to higher expenses. (3) An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities of one year or more. (4) The performance since inception of the index for each class is calculated from the month end following the inception of the class. 7 COLORADO INTERMEDIATE TAX FREE FUND Investment Objective: CURRENT INCOME THAT IS EXEMPT FROM BOTH FEDERAL INCOME TAX AND COLORADO STATE INCOME TAX TO THE EXTENT CONSISTENT WITH PRESERVATION OF CAPITAL First American Colorado Intermediate Tax Free Fund Class Y shares returned 3.71% for the fiscal year (Class A shares returned 3.64% at net asset value for the same period). By comparison, the Fund's benchmark, the Lehman 7-Year Municipal Bond Index*, returned 4.71%. Although municipal yields for maturities five years and longer finished within 0.30% of where they were a year ago, the market experienced bouts of volatility in the fiscal year ended September 30, 2003. Yields on seven-year AAA-rated bonds went from a high in October 2002 of 3.56% to a low of 2.38% in mid-June before going back up to 3.50% in early August. One-month total return for the broad municipal market in July was the worst in nine years, while September's rally produced the highest one-month total return in eight years. Although national municipal new issuance was up 13% at fiscal year end vs. 2002, Colorado supply was down by nearly the same percentage. State revenue shortfalls and tax cuts contributed to budgetary stress, necessitating spending cuts and a reduction in reserve levels. Spikes in new issue supply created occasional buying opportunities. Due to the Fed's continued efforts to stimulate the economy by keeping short-term interest rates low, year-over-year municipal yields fell for bonds with maturities of five years and shorter, but rose slightly for bonds with maturities of seven years and longer. The Fund maintains relatively equal holdings across a range of maturities. This helps insulate it from volatility due to changes in yields across the maturity spectrum. The five- to 12-year maturity segment and 20-year segments of the Fund had the highest absolute performance. The one- to three-year maturity holdings underperformed the rest of the maturity segments held in the Fund. We typically maintained a slightly longer duration (105% to 110%) than our benchmark primarily to capture any additional yield benefits. This approach provides the greatest benefit during a falling interest-rate environment, which existed through mid-June. Duration is a time measure of interest-rate risk exposure that estimates how much a bond, or a bond fund's price, fluctuates with changes in interest rates. The longer the duration, the more price volatility you can expect in the fund's price per share. Many of the higher-yielding sectors and holdings performed well during the year. The Fund's hospital and healthcare holdings were among the best performing sectors. Newly prerefunded bonds also performed well. General obligation bonds were middle of the pack, while lease bonds were slight underperformers relative to other sectors in the Fund. 8 ANNUALIZED PERFORMANCE(1) as of September 30, 2003
SINCE INCEPTION(3) ------------------ 1 YEAR 5 YEARS 4/4/1994 Class A NAV 3.64% 4.83% 5.83% Class A POP 1.28% 4.36% 5.57% Class Y 3.71% 4.87% 5.83% Lehman 7-Year Municipal Bond Index(2) 4.71% 5.84% 6.46%
[CHART] VALUE OF A $10,000 INVESTMENT(1) as of September 30, 2003 [PLOT POINTS TO COME] * 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. Income from tax-exempt funds may be subject to state and local taxes and a portion of income may be subject to the federal alternative minimum tax for certain investors. Capital gains distributions, if any, will be subject to tax. 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 2.25% for Class A shares. Total returns assume reinvestment of all distributions at NAV. (2) An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities between six and eight years. (3) The performance since inception of the index for each class is calculated from the month end following the inception of the class. 9 COLORADO TAX FREE FUND Investment Objective: MAXIMUM CURRENT INCOME THAT IS EXEMPT FROM BOTH FEDERAL INCOME TAX AND COLORADO STATE INCOME TAX TO THE EXTENT CONSISTENT WITH PRUDENT INVESTMENT RISK First American Colorado Tax Free Fund Class Y shares returned 3.78% for the fiscal year (Class A shares returned 3.53% at net asset value for the same period). By comparison, the Fund's benchmark, the Lehman Municipal Bond Index*, returned 3.89%. The municipal market experienced bouts of volatility over the course of the fiscal year ended September 30, 2003. Yields on the Bond Buyer 20 Index fell from a high of 5.12% in October 2002 to a low of 4.21% in mid-June before rising back to 5.18% in August. One-month total return for the broad municipal market in July was the worst in nine years, while September's rally produced the highest one-month total return in eight years. Because of this market volatility, it was important to maintain our focus on long-term strategies. Significant shifts or reversals in strategy during volatile markets can negatively impact performance. Although national municipal new issuance was up 13% at fiscal year end vs. 2002, Colorado supply was down by nearly the same percentage. State revenue shortfalls and tax cuts contributed to budgetary stress, necessitating spending cuts and a reduction in reserve levels. Spikes in new issue supply created occasional buying opportunities. We typically maintain a slightly longer duration than the stated benchmark primarily to capture any additional yield benefits. This approach provides the greatest benefit during a falling interest-rate environment, which existed through mid-June. Duration is a time measure of interest-rate risk exposure that estimates how much a bond, or a bond fund's price, fluctuates with changes in interest rates. The longer the duration, the more price volatility you can expect in the fund's price per share. The Fed continued its efforts to stimulate the economy by keeping short-term borrowing costs low. This had a negative effect on cash and short-term investments as yields fell below 1.00%. As such, the Fund's decision to reduce its allocation to cash and short-term securities in favor of longer maturing, higher income-producing assets helped the Fund's performance. Many of the higher-yielding sectors and holdings performed well during the year. The Fund's overweight in the health/hospital and general obligation sectors had a positive effect on the performance as well as its commitment to BBB-rated securities. However, the Fund's overweight in the underperforming certificates of participation sector had a negative impact on performance. 10 ANNUALIZED PERFORMANCE(1) as of September 30, 2003
SINCE INCEPTION(4) ------------------ 1 YEAR 2/1/2000 Class A NAV 3.53% 8.95% Class A POP -0.89% 7.67% Class C NAV 3.23% 8.55% Class C POP 1.19% 8.26% Class Y 3.78% 9.25% Lehman Municipal Bond Index(3) 3.89% 8.22%
[CHART] VALUE OF A $10,000 INVESTMENT(1),(2) as of September 30, 2003 [PLOT POINTS TO COME] * 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. Income from tax-exempt funds may be subject to state and local taxes and a portion of income may be subject to the federal alternative minimum tax for certain investors. Capital gains distributions, if any, will be subject to tax. 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 4.25% for Class A shares and 1.00% for Class C shares, and the maximum contingent deferred sales charge ("CDSC") for Class C shares for the relevant period. Maximum CDSC is 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV. (2) Performance for Class C shares is not presented. Performance for this class is lower due to higher expenses. (3) An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities of one year or more. (4) The performance since inception of the index for each class is calculated from the month end following the inception of the class. 11 INTERMEDIATE TAX FREE FUND Investment Objective: CURRENT INCOME THAT IS EXEMPT FROM FEDERAL INCOME TAX TO THE EXTENT CONSISTENT WITH PRESERVATION OF CAPITAL First American Intermediate Tax Free Fund Class Y shares returned 3.90% for the fiscal year (Class A shares returned 3.74% at net asset value for the same period). By comparison, the Fund's benchmark, the Lehman Municipal 7-Year Bond Index*, returned 4.71%. Although municipal yields for maturities five years and longer finished within 0.30% of where they were a year ago, the market experienced bouts of volatility in the fiscal year ended September 30, 2003. Yields on seven-year AAA-rated bonds went from a high in October 2002 of 3.56% to a low of 2.38% in mid-June before going back up to 3.50% in early August. One-month total return for the broad municipal market in July was the worst in nine years, while September's rally produced the highest one-month total return in eight years. Due to the Fed's continued efforts to stimulate the economy by keeping short-term borrowing costs low, year-over-year municipal yields fell for bonds with maturities five years and shorter, but rose slightly for bonds with maturities of seven years and longer. The Fund maintains relatively equal holdings across a range of maturities. This helps insulate it from volatility due to changes in yields across the maturity spectrum. The largest segment of the Fund invested in five- to seven-year maturities had the highest absolute performance. The 10-year maturity segment, which is the next largest, underperformed the seven-year segment despite its higher yield and duration. Fifteen-year bonds outperformed 10-year bonds but underperformed the seven-year bonds. We typically maintained a duration slightly longer than the Lehman benchmark (105% to 110%) this past year primarily to capture any additional yield benefits. This approach provides the greatest benefit during a falling interest-rate environment, which existed through mid-June. Duration is a time measure of interest-rate risk exposure that estimates how much a bond, or a bond fund's price, fluctuates with changes in interest rates. The longer the duration, the more price volatility you can expect in the fund's price per share. The Fund does use BBB and nonrated securities, including hospital, healthcare, and continuing care retirement community bonds. These were among the best performing sectors and positively impacted the Fund's performance. Prerefunded and escrowed bonds had lower total returns, due mainly to their short maturity and yield. 12 ANNUALIZED PERFORMANCE(1) as of September 30, 2003
SINCE INCEPTION(3) ------------------ 1 YEAR 5 YEARS 10 YEARS 2/4/1994 Class A NAV 3.74% 4.95% 5.07% -- Class A POP 1.41% 4.48% 4.83% -- Class Y 3.90% 5.02% -- 5.09% Lehman 7-Year Municipal Bond Index(2) 4.71% 5.84% 5.88% 6.13%
[CHART] VALUE OF A $10,000 INVESTMENT(1) as of September 30, 2003 [PLOT POINTS TO COME] * 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. Income from tax-exempt funds may be subject to state and local taxes and a portion of income may be subject to the federal alternative minimum tax for certain investors. Capital gains distributions, if any, will be subject to tax. 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 2.25% for Class A. Total returns assume reinvestment of all distributions at NAV. (2) An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities between six and eight years. (3) The performance since inception of the index for each class is calculated from the month end following the inception of the class. 13 MINNESOTA INTERMEDIATE TAX FREE FUND Investment Objective: CURRENT INCOME THAT IS EXEMPT FROM BOTH FEDERAL INCOME TAX AND MINNESOTA STATE INCOME TAX TO THE EXTENT CONSISTENT WITH PRESERVATION OF CAPITAL First American Minnesota Intermediate Tax Free Fund Class Y shares returned 3.82% for the fiscal year (Class A shares returned 3.55% at net asset value for the same period). By comparison, the Fund's benchmark, the Lehman 7-Year Municipal Bond Index*, returned 4.71%. Although municipal yields for maturities five years and longer finished within 0.30% of where they were a year ago, the market experienced bouts of volatility in the fiscal year ended September 30, 2003. Yields on seven-year AAA-rated bonds went from a high in October 2002 of 3.56% to a low of 2.38% in mid-June before going back up to 3.50% in early August. One-month total return for the broad municipal market in July was the worst in nine years, while September's rally produced the highest one-month total return in eight years. Although national municipal new issuance was up 13% at fiscal year end vs. 2002, Minnesota supply was down by nearly the same percentage. This kept prices high but hindered the search for attractive purchase opportunities. The state lost one of its three AAA credit ratings in June, reflecting Moody's concern over use of one-time revenue and accounting transfers. However, we remain comfortable with Minnesota's long-term credit quality. Due to the Fed's continued efforts to stimulate the economy by keeping short-term interest rates low, year-over-year municipal yields fell for bonds with maturities of five years and shorter, but rose slightly for bonds with maturities of seven years and longer. The Fund maintains relatively equal holdings across a range of maturities. This helps insulate it from volatility due to changes in yields across the maturity spectrum. The segment of the Fund with maturities 12 years and longer had the highest absolute performance, helped by lack of long bond issuance in Minnesota. The 10-year maturity segment of the Fund underperformed the five-to seven-year segment despite its higher yield and duration. We typically maintained a duration slightly longer than our benchmark (105% to 110%) primarily to capture any additional yield benefits. This approach provides the greatest benefit during a falling interest-rate environment, which existed through mid-June. Duration is a time measure of interest-rate risk exposure that estimates how much a bond, or a bond fund's price, fluctuates with changes in interest rates. The longer the duration, the more price volatility you can expect in the fund's price per share. Many of the Fund's higher-yielding sectors and holdings performed well during the year. The Fund's healthcare and electric utility holdings were among the best performing sectors. Prerefunded and escrowed bonds had lower total returns, due mainly to their short maturity and yield. 14 ANNUALIZED PERFORMANCE(1) as of September 30, 2003
SINCE INCEPTION(3) ------------------ 1 YEAR 5 YEARS 2/25/1994 Class A NAV 3.55% 4.78% 5.08% Class A POP 1.24% 4.30% 4.83% Class Y 3.82% 4.84% 5.08% Lehman 7-Year Municipal Bond Index(2) 4.71% 5.84% 6.13%
[CHART] VALUE OF A $10,000 INVESTMENT(1) as of September 30, 2003 [PLOT POINTS TO COME] * 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. Income from tax-exempt funds may be subject to state and local taxes and a portion of income may be subject to the Minnesota state and federal alternative minimum tax for certain investors. Capital gains distributions, if any, will be subject to tax. 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 2.25% for Class A shares. Total returns assume reinvestment of all distributions at NAV. (2) An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities between six and eight years. (3) The performance since inception of the index for each class is calculated from the month end following the inception of the class. 15 MINNESOTA TAX FREE FUND Investment Objective: MAXIMUM CURRENT INCOME THAT IS EXEMPT FROM BOTH FEDERAL INCOME TAX AND MINNESOTA STATE INCOME TAX TO THE EXTENT CONSISTENT WITH PRUDENT INVESTMENT RISK First American Minnesota Tax Free Fund Class Y shares returned 4.16% for the fiscal year (Class A shares returned 3.90% at net asset value for the same period). By comparison, the Fund's benchmark, the Lehman Municipal Bond Index*, returned 3.89%. The municipal market experienced bouts of volatility over the course of the fiscal year ended September 30, 2003. Yields on the Bond Buyer 20 Index fell from a high of 5.12% in October 2002 to a low of 4.21% in mid-June before rising back to 5.18% in August. One-month total return for the broad municipal market in July was the worst in nine years, while September's rally produced the highest one-month total return in eight years. Because of this market volatility, it was important to maintain our focus on long-term strategies. Significant shifts or reversals in strategy during volatile markets can negatively impact performance. The Fed continued its efforts to stimulate the economy by keeping short-term borrowing costs low. This had a negative effect on cash and short-term investments as yields fell below 1.00%. As such, the Fund's decision to reduce its allocation to cash and short-term securities in favor of longer maturing, higher income-producing assets helped the Fund's performance. Minnesota is among the many states experiencing budget difficulties and the threat of negative credit rating actions. In fact, Moody's downgraded the state's general obligation debt from Aaa to Aa1 in June. This relatively minor downgrade has had minimal, if any, impact on the state's cost of borrowing or on the performance of the Fund. Modest adjustments to duration and portfolio structure helped the Fund's performance. Duration was reduced during July as interest rates were rising, re-extended modestly in August when it appeared that rates had peaked, and reduced again at the end of September after rates fell. Duration is a time measure of interest-rate risk exposure that estimates how much a bond, or a bond fund's price, fluctuates with changes in interest rates. The longer the duration, the more price volatility you can expect in the fund's price per share. Other factors that positively impacted performance, relative to the benchmark, included an overweight position in the hospital, general obligation, and housing sectors, an overweight position in 15-year maturities and longer, and positions in nonrated securities. Factors that negatively impacted performance, relative to the benchmark, included an overweight position in electric utilities and an underweight position in five to 10-year maturities. 16 ANNUALIZED PERFORMANCE(1) as of September 30, 2003
SINCE INCEPTION(4) ------------------ 1 YEAR 5 YEARS 10 YEARS 8/1/1997 2/1/1999 Class A NAV 3.90% 4.77% 5.46% -- -- Class A POP -0.55% 3.86% 5.00% -- -- Class C NAV 3.41% -- -- -- 4.34% Class C POP 1.44% -- -- -- 4.13% Class Y 4.16% 5.03% -- 5.62% -- Lehman Municipal Bond Index(3) 3.89% 5.67% 6.03% 6.29% 5.88%
[CHART] VALUE OF A $10,000 INVESTMENT(1),(2) as of September 30, 2003 [PLOT POINTS TO COME] * 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. Income from tax-exempt funds may be subject to state and local taxes and a portion of income may be subject to the Minnesota state and federal alternative minimum tax for certain investors. Capital gains distributions, if any, will be subject to tax. 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 4.25% for Class A shares and 1.00% for Class C shares, and the maximum contingent deferred sales charge ("CDSC") for Class C shares for the relevant period. Maximum CDSC is 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV. On July 31, 1998, the Minnesota Tax Free Fund became the successor by merger to the Piper Minnesota Tax-Exempt Fund, a series of Piper Funds Inc. Prior to the merger, the First American Fund had no assets or liabilities. Performance presented prior to July 31, 1998, represents that of the Piper Minnesota Tax-Exempt Fund. (2) Performance for Class C shares is not presented. Performance of this class is lower due to higher expenses. (3) An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities of one year or more. (4) The performance since inception of the index for each class is calculated from the month end following the inception of the class. 17 MISSOURI TAX FREE FUND Investment Objective: MAXIMUM CURRENT INCOME THAT IS EXEMPT FROM BOTH FEDERAL INCOME TAX AND MISSOURI STATE INCOME TAX TO THE EXTENT CONSISTENT WITH PRUDENT INVESTMENT RISK First American Missouri Tax Free Fund Class Y shares returned 3.71% for the fiscal year (Class A shares returned 3.45% at net asset value for the same period). By comparison, the Fund's benchmark, the Lehman Municipal Bond Index*, returned 3.89%. The municipal market experienced bouts of volatility over the course of the fiscal year ended September 30, 2003. Yields on the Bond Buyer 20 Index fell from a high of 5.12% in October 2002 to a low of 4.21% in mid-June before rising back to 5.18% in August. One-month total return for the broad municipal market in July was the worst in nine years, while September's rally produced the highest one-month total return in eight years. Because of this market volatility, it was important to maintain our focus on long-term strategies. Significant shifts or reversals in strategy during volatile markets can negatively impact performance. Missouri is facing a $1 billion deficit for fiscal year 2004, but plans to address the deficit through a combination of budget cuts and tax increases. The trading value of Missouri bonds has generally remained strong relative to the rest of the country. The state has solid reserves and a history of strong financial management. Due to the Fed's continued efforts to stimulate the economy by keeping short-term interest rates low, year-over-year municipal yields fell for bonds with maturities of five years and shorter, but rose slightly for bonds with maturities of seven years and longer. As a result, the 12- to 15-year maturity segment of the Fund had the highest absolute performance and outperformed national bonds. The 10- to 12-year segment of the Fund had a higher weighting than the five to seven-year segment, which detracted from overall performance. We typically maintained a duration slightly longer than our benchmark (around 105%) the past year primarily to capture any additional yield benefits. This approach provides the greatest benefit during a falling interest-rate environment, which existed through mid-June. Duration is a time measure of interest-rate risk exposure that estimates how much a bond, or a bond fund's price, fluctuates with changes in interest rates. The longer the duration, the more price volatility you can expect in the fund's price per share. 18 ANNUALIZED PERFORMANCE(1) as of September 30, 2003
SINCE INCEPTION(4) ------------------ 1 YEAR 5 YEARS 10 YEARS 9/24/2001 Class A NAV 3.45% 4.83% 5.10% -- Class A POP -0.92% 3.92% 4.64% -- Class C NAV 3.05% -- -- 5.33% Class C POP 1.00% -- -- 4.82% Class Y 3.71% 5.14% 5.37% -- Lehman Municipal Bond Index(3) 3.89% 5.67% 6.03% 6.38%
[CHART] VALUE OF A $10,000 INVESTMENT(1),(2) as of September 30, 2003 [PLOT POINTS TO COME] * 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. Income from tax-exempt funds may be subject to state and local taxes and a portion of income may be subject to the federal alternative minimum tax for certain investors. Capital gains distributions, if any, will be subject to tax. 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 4.25% for Class A shares and 1.00% for Class C shares, and the maximum contingent deferred sales charge ("CDSC") for Class C shares for the relevant period. Maximum CDSC is 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV. On September 24, 2001, the Missouri Tax Free Fund became the successor by merger to the Firstar Missouri Tax-Exempt Bond 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 Missouri Tax-Exempt Bond Fund. The Firstar Missouri Tax-Exempt Bond Fund was organized on December 11, 2000, and, prior to that, was a separate series of Mercantile Mutual Funds, Inc. The Mercantile fund was organized on October 2, 1995, and, prior to that, was a separate series of the ARCH Tax-Exempt Trust, which sold shares of the portfolio that were similar to the current Class Y shares of the fund, which have no distribution or shareholder servicing fees. Performance prior to October 2, 1995, reflects performance without such fees. (2) Performance for Class C shares is not presented. Performance for this class is lower due to higher expenses. (3) An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities of one year or more. (4) The performance since inception of the index for each class is calculated from the month end following the inception of the class. 19 NEBRASKA TAX FREE FUND Investment Objective: MAXIMUM CURRENT INCOME THAT IS EXEMPT FROM BOTH FEDERAL INCOME TAX AND NEBRASKA STATE INCOME TAX TO THE EXTENT CONSISTENT WITH PRUDENT INVESTMENT RISK First American Nebraska Tax Free Fund Class Y shares returned 3.82% for the fiscal year (Class A shares returned 3.57% at net asset value for the same period). By comparison, the Fund's benchmark index, the Lehman Municipal Bond Index*, returned 3.89%. The municipal market experienced bouts of volatility over the course of the fiscal year ended September 30, 2003. Yields on the Bond Buyer 20 Index fell from a high of 5.12% in October 2002 to a low of 4.21% in mid-June before rising back to 5.18% in August. One-month total return for the broad municipal market in July was the worst in nine years, while September's rally produced the highest one-month total return in eight years. Because of this market volatility, it was important to maintain our focus on long-term strategies. Significant shifts or reversals in strategy during volatile markets can negatively impact performance. Nebraska has been less impacted by the national recession than most states because the state's economy is very dependent on agriculture, which provides some economic stability during national slowdowns. The state has a history of conservative financial management and has shown a willingness to respond quickly to revenue shortfalls. While this helped municipal bonds issued within the state to perform better than many other states facing economic difficulties, it had minimal direct impact on the Fund's performance against its benchmark. We typically maintain a slightly longer duration than the stated benchmark primarily to capture any additional yield benefits. This approach provides the greatest benefit during a falling interest-rate environment, which existed through mid-June. Duration is a time measure of interest-rate risk exposure that estimates how much a bond, or a bond fund's price, fluctuates with changes in interest rates. The longer the duration, the more price volatility you can expect in the fund's price per share. The Fed continued its efforts to stimulate the economy by keeping short-term borrowing costs low. This had a negative effect on cash and short-term investments as yields fell below 1.00%. As such, the Fund's decision to reduce its allocation to cash and short-term securities in favor of longer maturing, higher income-producing assets helped the Fund's performance. Relative to the benchmark, the Fund's overweight in electric, health/hospital, and general obligation sectors, as well as its 11% commitment to nonrated securities, had a positive effect on performance. The Fund's exposure of approximately 35% of its assets to bonds with 10- to 13-year maturities had a negative impact on the Fund, since securities with these maturities underperformed the five-year, 15-year, and longer maturities. 20 ANNUALIZED PERFORMANCE(1) as of September 30, 2003
SINCE INCEPTION(4) ------------------ 1 YEAR 2/28/2001 Class A NAV 3.57% 6.62% Class A POP -0.79% 4.87% Class C NAV 3.10% 5.97% Class C POP 1.07% 5.57% Class Y 3.82% 6.84% Lehman Municipal Bond Index(3) 3.89% 6.66%
[CHART] VALUE OF A $10,000 INVESTMENT(1),(2) as of September 30, 2003 [PLOT POINTS TO COME] * 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. Income from tax-exempt funds may be subject to state and local taxes and a portion of income may be subject to the federal alternative minimum tax for certain investors. Capital gains distributions, if any, will be subject to tax. 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 4.25% for Class A shares and 1.00% for Class C shares, and the maximum contingent deferred sales charge ("CDSC") for Class C shares for the relevant period. Maximum CDSC is 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV. (2) Performance for Class C shares is not presented. Performance of this class is lower due to higher expenses. (3) An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities of one year or more. (4) The performance since inception of the index for each class is calculated from the month end following the inception of the class. 21 OHIO TAX FREE FUND Investment Objective: MAXIMUM CURRENT INCOME THAT IS EXEMPT FROM BOTH FEDERAL INCOME TAX AND OHIO STATE INCOME TAX TO THE EXTENT CONSISTENT WITH PRUDENT INVESTMENT RISK First American Ohio Tax Free Fund Class Y shares returned 3.65% for the fiscal year (Class A shares returned 3.22% at net asset value for the same period). By comparison, the Fund's benchmark, the Lehman Municipal Bond Index*, returned 3.89%. Many states raised taxes and fees for the second consecutive year to close budget deficits after cutting tax rates for seven years. Ohio had the largest increase of sales and use taxes, generating $1.4 billion by raising the sales tax rate to 6% from 5% for two years. In addition, many states have had their credit ratings reduced as the weak economy takes its toll on revenue streams. Ohio has escaped a rating reduction; however, Moody's does have a negative outlook for the state, which means a downgrade is possible. State borrowing is increasing, especially for education, as budgetary pressures continue. Ohio municipal bond issuance is up 18.1% through the fiscal year ended September 30, 2003. Despite the weak economic picture, the threat of downgrade, and the increased supply, the relative value of Ohio municipals to other state municipals has not changed significantly. For most of the fiscal year, the duration of the Fund was held between 117% and 120% of its benchmark. Over the last quarter of the fiscal year the duration was lowered to approximately 109% of its benchmark. We typically maintain a longer duration than the stated benchmark primarily to capture any additional yield benefits. This approach provides the greatest benefit during a falling interest-rate environment, which existed through mid-June. Duration is a time measure of interest-rate risk exposure that estimates how much a bond, or a bond fund's price, fluctuates with changes in interest rates. The longer the duration, the more price volatility you can expect in the fund's price per share. The Fed continued its efforts to stimulate the economy by keeping short-term borrowing costs low. This had a negative effect on cash and short-term investments as yields fell below 1.00%. As such, the Fund's decision to reduce its allocation to cash and short-term securities in favor of longer maturing, higher income-producing assets helped the Fund's performance. Because the Fund is relatively new and interest rates were relatively low, the Fund focused on buying bonds in the 20-year maturity range to maximize income. However, that segment of yield curve did not perform well over the last year, with yields virtually the same at the end of the fiscal year as at the beginning of the year. During the last quarter, as the bond market became more volatile, some longer duration bonds were sold and the money reinvested in the 10-year segment of the yield curve. We continued to emphasize insured credit (municipal bonds that are insured against default by a municipal bond insurance company), reducing credit that is solely dependent on the state's general fund or guaranteed by the state. The Fund has a high representation of general obligation debt and revenue bonds and is fairly diversified across revenue sectors. 22 ANNUALIZED PERFORMANCE(1) as of September 30, 2003
SINCE INCEPTION(4) ------------------ 1 YEAR 4/30/2002 Class A NAV 3.22% 7.55% Class A POP -1.18% 4.33% Class C NAV 1.95% 6.41% Class C POP -0.08% 4.98% Class Y 3.65% 7.86% Lehman Municipal Bond Index(3) 3.89% 7.39%
[CHART] VALUE OF A $10,000 INVESTMENT(1),(2) as of September 30, 2003 [PLOT POINTS TO COME] * 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. Short-term performance is not indicative of future performance, and an investment decision should not be made based solely on returns. 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. Income from tax-exempt funds may be subject to state and local taxes and a portion of income may be subject to the federal alternative minimum tax for certain investors. Capital gains distributions, if any, will be subject to tax. 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 4.25% for Class A shares and 1.00% for Class C shares, and the maximum contingent deferred sales charge ("CDSC") for Class C shares for the relevant period. Maximum CDSC is 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV. (2) Performance for Class C shares is not presented. Performance of this class is lower due to higher expenses. (3) An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities of one year or more. (4) The performance since inception of the index is calculated from the month end following the inception of the class. 23 OREGON INTERMEDIATE TAX FREE FUND Investment Objective: CURRENT INCOME THAT IS EXEMPT FROM BOTH FEDERAL INCOME TAX AND OREGON STATE INCOME TAX TO THE EXTENT CONSISTENT WITH PRESERVATION OF CAPITAL First American Oregon Intermediate Tax Free Fund Class Y shares returned 3.46% for the fiscal year (Class A shares returned 3.31% at net asset value for the same period). By comparison, the Fund's benchmark, the Lehman 7-Year Municipal Bond Index*, returned 4.71%. As the state's unemployment rate rose and state revenue flows dwindled, the state of Oregon battled to keep schools and state services operating at expected levels. After enduring the longest session in Oregon history, Oregon legislators passed a three-year income tax surcharge expected to raise more than $800 million in increased revenue. Signatures are being gathered to put the tax increase on a special ballot to be voted upon in February 2004. As a result of the weak economy in Oregon, all three rating agencies reduced the state's credit rating. Moody's lowered their rating from Aa2 to Aa3, Fitch dropped the state from a AA credit to A+, and Standard & Poor's lowered their rating from AA to AA-. However, all three rating agencies maintained a stable outlook for Oregon. Despite the struggling economy, the rating downgrade, and the increased supply, there has not been a significant change in the valuation of Oregon municipal bonds relative to other state municipal bonds. These relatively minor downgrades have had minimal, if any, impact on the state's cost of borrowing or on the performance of the Fund. Oregon municipal issuance was up approximately 47% for the fiscal year ended September 30, 2003, as low interest rates and budgetary pressures bring issuers to the market. The largest issues to date have been pension obligation bonds, which are taxable at the federal level. Oregon residents just approved an amendment to the state constitution allowing Oregon to issue general obligation debt for pension obligations. These obligations are expected to be taxable at the federal level and would not impact the valuation of bonds held by the Fund that are both federal and state tax exempt. The duration of the Fund was held between 106% and 108% of its benchmark throughout the year. We typically maintain a slightly longer duration than the stated benchmark primarily to capture any additional yield benefits. This approach provides the greatest benefit during a falling interest-rate environment, which existed through mid-June. Duration is a time measure of interest-rate risk exposure that estimates how much a bond, or a bond fund's price, fluctuates with changes in interest rates. The longer the duration, the more price volatility you can expect in the fund's price per share. Due to the Fed's continued efforts to stimulate the economy by keeping short-term interest rates low, year-over-year municipal yields fell for bonds with maturities of five years and shorter, but rose slightly for bonds with maturities of seven years and longer. The Fund maintains relatively equal holdings across a range of maturities. This helps insulate it from volatility due to changes in yields across the maturity spectrum. The Fund invested in intermediate premium coupon bonds since they are expected to hold value in a rising interest-rate environment, yet still perform if interest rates stay flat or decline. This segment of the curve has experienced some volatility as nontraditional buyers of municipal bonds have been more actively buying and selling bonds. These buyers can cause volatility as they move in and out of the municipal bonds based on the relationship to other fixed-income products. We continued to emphasize insured credit (municipal bonds that are insured against default by a municipal bond insurance company), avoiding credit that is solely dependent on the state's general fund or guaranteed by the state. The Fund has a high representation of general obligation debt and revenue bonds and is fairly diversified across revenue sectors. 24 ANNUALIZED PERFORMANCE(1) as of September 30, 2003
SINCE INCEPTION(3) ------------------ 1 YEAR 5 YEARS 10 YEARS 2/1/1999 Class A NAV 3.31% -- -- 4.69% Class A POP 1.00% -- -- 4.17% Class Y 3.46% 4.76% 4.82% -- Lehman 7-Year Municipal Bond Index(2) 4.71% 5.84% 5.87% 6.03%
[CHART] VALUE OF A $10,000 INVESTMENT(1) as of September 30, 2003 [PLOT POINTS TO COME] * 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. Income from tax-exempt funds may be subject to state and local taxes and a portion of income may be subject to the federal alternative minimum tax for certain investors. Capital gains distributions, if any, will be subject to tax. 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 2.25% for Class A. Total returns assume reinvestment of all distributions at NAV. Performance prior to August 8, 1997, is that of Oregon Municipal Bond Trust Fund, a predecessor common trust fund. On August 8, 1997, substantially all of the assets of Oregon Municipal Bond Trust Fund were transferred into Oregon Intermediate Tax Free Fund. The objectives, policies, and guidelines of the two funds were, in all material respects, identical. Oregon Municipal Bond Trust Fund was not registered under the Investment Company Act of 1940 and therefore was not subject to certain investment restrictions that might have adversely affected performance. (2) An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities between six and eight years. (3) The performance since inception of the index for each class is calculated from the month end following the inception of the class. 25 SHORT TAX FREE FUND Investment Objective: TO PROVIDE INVESTORS WITH CURRENT INCOME THAT IS EXEMPT FROM FEDERAL INCOME TAX, TO THE EXTENT CONSISTENT WITH THE PRESERVATION OF CAPITAL First American Short Tax Free Fund Class Y shares returned 4.66% since its inception on October 25, 2002 (Class A shares returned 4.54% at net asset value for the same period). By comparison, the Fund's benchmark, the Lehman 3-Year Municipal Bond Index*, returned 4.36%. The municipal market experienced bouts of volatility over the course of the fiscal year ended September 30, 2003. Yields on three-year AAA-rated bonds fell from a high in October 2002 of 2.42% to a low of 1.24% in mid-June before rising back to 1.92% in mid-August. One-month total return for the broad municipal market in July was the worst in nine years, while September's rally produced the highest one-month total return in eight years. Because of this market volatility, it was important to maintain our focus on long-term strategies. Significant shifts or reversals in strategy during volatile markets can negatively impact performance. Following the conversion of the Fund from its predecessor common trust fund base, its maturity was shortened from more than four years to slightly less than three years. The Fund's dividend experienced a downward trend as 20% of the Fund's assets matured during the year, and we experienced significant growth in assets during a falling interest-rate environment. The Fund is generally laddered (an investment strategy that helps to insulate a fund from yield differentiation) with roughly 50% of its assets in three- and four-year securities to capture the additional yield benefits inherent in the positive-sloping municipal yield curve. The Fund's overweight in the general obligation, electric, and health/hospital sectors and purchases of BBB-rated securities had a positive effect on performance. Factors that negatively impacted performance included its overweight in short prerefunded and escrowed-to-maturity securities. 26 PERFORMANCE(1) as of September 30, 2003
SINCE INCEPTION(3) ------------------ 10/25/2002 Class A NAV 4.54% Class A POP 2.19% Class Y 4.66% Lehman 3-Year Municipal Bond Index(2) 4.36%
[CHART] VALUE OF A $10,000 INVESTMENT(1) as of September 30, 2003 [PLOT POINTS TO COME] * 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. Income from tax-exempt funds may be subject to state and local taxes and a portion of income may be subject to the federal alternative minimum tax for certain investors. Capital gains distributions, if any, will be subject to tax. 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 2.25% for Class A shares. Total returns assume reinvestment of all distributions at NAV. (2) An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities between two and four years. (3) The performance since inception of the index is calculated from the month end following the inception of the class. Performance reflects cumulative return since the Fund has been in operation less than one year. 27 TAX FREE FUND Investment Objective: MAXIMUM CURRENT INCOME THAT IS EXEMPT FROM FEDERAL INCOME TAX TO THE EXTENT CONSISTENT WITH PRUDENT INVESTMENT RISK First American Tax Free Fund Class Y shares returned 4.31% for the fiscal year (Class A shares returned 4.06% at net asset value for the same period). By comparison, the Fund's benchmark, the Lehman Municipal Bond Index*, returned 3.89%. The municipal market experienced bouts of volatility over the course of the fiscal year ended September 30, 2003. Yields on the Bond Buyer 20 Index fell from a high of 5.12% in October 2002 to a low of 4.21% in mid-June before rising back to 5.18% in August. One-month total return for the broad municipal market in July was the worst in nine years, while September's rally produced the highest one-month total return in eight years. Because of this market volatility, it was important to maintain our focus on long-term strategies. Significant shifts or reversals in strategy during volatile markets can negatively impact performance. The Fed continued its efforts to stimulate the economy by keeping short-term borrowing costs low. This had a negative effect on cash and short-term investments as yields fell below 1.00%. As such, the Fund's decision to reduce its allocation to cash and short-term securities in favor of longer maturing, higher income-producing assets helped the Fund's performance. Modest adjustments to duration and portfolio structure helped the Fund's performance. Duration was reduced during July as interest rates were rising, re-extended modestly in August when it appeared that rates had peaked, and reduced again at the end of September after rates fell. Duration is a time measure of interest-rate risk exposure that estimates how much a bond, or a bond fund's price, fluctuates with changes in interest rates. The longer the duration, the more price volatility you can expect in the fund's price per share. Other factors that positively impacted performance included an overweight in the hospital, general obligation, and electric revenue sectors; an overweight in 10-year and longer maturities; an overweight in bonds issued in Texas, Illinois, and Washington; an underweight position in California bonds; and our positions in unrated securities. Factors that negatively impacted performance included an overweight in housing, an underweight in five-to-seven year maturities, and an underweight in Florida. 28 ANNUALIZED PERFORMANCE(1) as of September 30, 2003
SINCE INCEPTION(4) ------------------ 1 YEAR 5 YEARS 11/14/1996 9/24/2001 Class A NAV 4.06% 4.97% 5.94% -- Class A POP -0.38% 4.08% 5.28% -- Class C NAV 3.67% -- -- 5.98% Class C POP 1.61% -- -- 5.45% Class Y 4.31% 5.17% 6.16% -- Lehman Municipal Bond Index(3) 3.89% 5.67% 6.28% 6.38%
[CHART] VALUE OF A $10,000 INVESTMENT(1),(2) as of September 30, 2003 [PLOT POINTS TO COME] * 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. Income from tax-exempt funds may be subject to state and local taxes and a portion of income may be subject to the federal alternative minimum tax for certain investors. Capital gains distributions, if any, will be subject to tax. 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 4.25% for Class A shares and 1.00% for Class C shares, and the maximum contingent deferred sales charge ("CDSC") for Class C shares for the relevant period. Maximum CDSC is 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV. On September 24, 2001, the First American Tax Free Fund merged with the Firstar National Municipal Bond Fund. Performance history prior to September 24, 2001, represents that of the Firstar National Municipal Bond Fund. (2) Performance of Class C shares is not presented. Performance of this class is lower due to higher expenses. (3) An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities of one year or more. (4) The performance since inception of the index for each class is calculated from the month end following the inception of the class. 29 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 Arizona Tax Free, California Intermediate Tax Free, California Tax Free, Colorado Intermediate Tax Free, Colorado Tax Free, Intermediate Tax Free, Minnesota Intermediate Tax Free, Minnesota Tax Free, Missouri Tax Free, Nebraska Tax Free, Ohio Tax Free, Oregon Intermediate Tax Free, Short Tax Free and Tax Free Funds (certain funds constituting First American Investment Funds, Inc.) (The "Funds") as of September 30, 2003, the related statements of operations and changes in net assets 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 Missouri Tax Free and Tax Free Funds for the periods presented through October 31, 2000, were audited by other auditors whose reports dated December 29, 2000 and January 21, 2001, 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 First American Investment Funds, Inc. At September 30, 2003, the results of their operations, and the changes in their net assets 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 31 SCHEDULE OF Investments September 30, 2003 ARIZONA TAX FREE FUND
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------------ MUNICIPAL BONDS - 95.6% REVENUE BONDS - 70.3% EDUCATION - 18.4% Arizona Educational Loan Marketing, Series A-3 (AMT) (GTSL) 3.700%, 03/01/09 $ 750 $ 769 Arizona School Facilities Board, State School Improvement, Callable 07/01/12 @ 100 5.250%, 07/01/16 750 834 5.250%, 07/01/20 250 270 Arizona Student Loan Acquisition Authority, Series A, Callable 11/01/09 @ 102 (AMT) 5.900%, 05/01/24 100 106 Energy Management Services, Arizona State University Project, Main Campus, Callable 07/01/12 @ 100 (MBIA) 5.000%, 07/01/13 500 553 Gilbert Industrial Development Authority, Southwest Student Services, Callable 02/01/09 @ 102 5.850%, 02/01/19 1,300 1,264 Glendale Industrial Development Authority, Callable 05/15/11 @ 101 5.750%, 05/15/21 250 267 University of Arizona Board of Regents, Series A, Callable 12/01/09 @ 100 (FGIC) 5.800%, 06/01/24 150 166 ------------- 4,229 ------------- HEALTHCARE - 13.6% Arizona Health Facilities Authority, John C. Lincoln Health Network, Callable 12/01/12 @ 101 5.750%, 12/01/32 150 145 Johnson City, Tennessee Health & Elderly Facilities Authority, Callable 07/01/12 @ 103 7.500%, 07/01/25 100 108 Mesa Industrial Development Authority, Discovery Health Systems, Series A, Callable 01/01/10 @ 101 (MBIA) 5.750%, 01/01/25 500 543 5.625%, 01/01/29 500 533 Scottsdale Industrial Development Authority, Scottsdale Healthcare, Callable 12/01/11 @ 101 5.700%, 12/01/21 1,000 1,032 Yavapai Industrial Development Authority, Yavapai Regional Medical Center, Series A, Callable 08/01/13 @ 100 (RAAI) 5.250%, 08/01/21 375 390 Yavapai Industrial Development Authority, Yavapai Regional Medical Center, Series A, Callable 08/01/13 @ 100 6.000%, 08/01/33 100 102 Yuma Industrial Development Authority, Yuma Regional Medical Center, Callable 08/01/07 @ 102 (MBIA) 5.500%, 08/01/17 250 277 ------------- 3,130 ------------- HOUSING - 6.4% Douglas Community Housing Corporation, Rancho La Perilla, Callable 01/20/10 @ 102 (GNMA) 5.900%, 07/20/20 500 527 6.000%, 07/20/25 475 495 Maricopa County Industrial Development Authority, Avalon Apartments, Series A, Callable 04/01/10 @ 102 (RAAI) 6.100%, 04/01/13 $ 105 $ 106 6.350%, 04/01/30 200 206 Phoenix Industrial Development Authority, The Phoenix Authority, Series 1A, Callable 06/01/10 @ 102 (FHLMC) (FNMA) (GNMA) 5.875%, 06/01/16 130 134 ------------- 1,468 ------------- LEASE REVENUE - 1.5% Navajo County Municipal Property Corporation, Jail Facility (ACA) 5.625%, 07/01/09 310 349 ------------- MISCELLANEOUS - 4.2% Greater Arizona Infrastructure Development Authority, Series A, Callable 08/01/08 @ 102 (MBIA) 5.625%, 08/01/20 200 223 Greater Arizona Infrastructure Development Authority, Series A, Callable 08/01/13 @ 100 5.000%, 08/01/23 (a) 750 755 ------------- 978 ------------- TAX REVENUE - 6.3% Oro Valley, Excise Tax, Callable 07/01/10 @ 101 (AMBAC) 5.200%, 07/01/14 400 441 Phoenix Civic Improvements, Excise Tax, Callable 07/01/09 @ 101 5.750%, 07/01/16 300 344 Surprise Municipal Property Corporation, Callable 07/01/09 @ 101 (FGIC) 5.700%, 07/01/20 300 336 Tempe, Excise Tax, Series A, Callable 07/01/09 @ 100 5.625%, 07/01/20 300 334 ------------- 1,455 ------------- TRANSPORTATION - 11.8% Arizona State Transportation Highway Board, Pre-refunded 07/01/09 @ 100 5.750%, 07/01/18 (b) 200 234 Arizona State Transportation Highway Board, Series A 5.000%, 07/01/09 400 452 Mesa Street & Highway, Pre-refunded 07/01/09 @ 100 (FSA) 5.100%, 07/01/14 (b) 500 568 5.500%, 07/01/16 (b) 100 116 Phoenix Civic Improvements, Series B, Callable 07/01/12 @ 100 (AMT) (FGIC) 5.250%, 07/01/21 250 258 5.250%, 07/01/27 750 764 Tucson Street & Highway Improvements, Series 1994-E, Callable 07/01/10 @ 100 (FGIC) 5.000%, 07/01/18 300 320 ------------- 2,712 ------------- UTILITIES - 8.1% Chandler Water & Sewer Improvements, Callable 07/01/10 @ 101 (FSA) 5.800%, 07/01/17 250 288
The accompanying notes are an integral part of the financial statements. 32
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------------ Oro Valley Municipal Water Systems, Callable 07/01/08 @ 101 (MBIA) 5.550%, 07/01/17 $ 100 $ 112 Peoria Water & Sewer, Callable 07/01/09 @ 100 (FGIC) 5.000%, 07/01/13 400 453 Phoenix Civic Improvements Water System, Pre-refunded 07/01/04 @ 102 5.500%, 07/01/24 (b) 100 105 Puerto Rico Electric Power Authority, Series X, Callable 07/01/05 @ 100 5.500%, 07/01/25 100 102 Salt River Project, Agricultural Improvement & Power District, Series A, Callable 10/01/03 @ 100 5.500%, 01/01/19 15 15 Salt River Project, Agricultural Improvement & Power District, Series B, Callable 10/01/03 @ 102 5.250%, 01/01/19 5 5 Tucson Water, Series D, Callable 07/01/09 @ 100 (FGIC) 5.400%, 07/01/17 250 279 Tucson Water, Series 1994-A (MBIA) 6.250%, 07/01/16 170 210 Yavapai Industrial Development Authority, Waste Management Project, Series A-2, Mandatory Put 03/01/08 @ 100 (AMT) 4.450%, 03/01/28 300 305 ------------- 1,874 ------------- TOTAL REVENUE BONDS 16,195 ------------- GENERAL OBLIGATIONS - 22.7% Chandler Public & Recreational Improvements, Callable 07/01/10 @ 101 5.800%, 07/01/18 250 287 Maricopa County School District #11, Peoria Unit, Pre-refunded 07/01/09 @ 101 (FGIC) 5.500%, 07/01/14 (b) 100 117 5.500%, 07/01/15 (b) 120 140 Maricopa County Unified School District #41, Gilbert, Callable 07/01/12 @ 100 (FSA) 4.600%, 07/01/14 295 316 Mesa, Callable 07/01/09 @ 100 (FGIC) 5.000%, 07/01/18 250 266 Navajo County Unified School District #32, Blue Ridge (FSA) 5.000%, 07/01/12 700 782 Peoria, Callable 04/01/09 @ 100 (FGIC) 5.400%, 04/01/15 100 111 5.000%, 04/01/18 575 616 5.000%, 04/01/19 125 133 Phoenix, Callable 07/01/07 @ 102 5.250%, 07/01/20 250 268 Phoenix, Callable 07/01/10 @ 100 5.250%, 07/01/19 350 380 5.375%, 07/01/25 750 791 Pima County Unified School District #6, Marana, Series A, Callable 07/01/10 @ 101 (FGIC) 5.250%, 07/01/15 250 276 Pima County Unified School District #12, Sunnyside, Callable 07/01/09 @ 100 (FGIC) 5.300%, 07/01/13 150 167 DESCRIPTION PAR (000)/SHARES VALUE (000) - ------------------------------------------------------------------------------------------------------ Scottsdale, Pre-refunded 07/01/09 @ 100 5.500%, 07/01/22 (b) $ 250 $ 290 Tucson 5.500%, 07/01/18 250 290 ------------- TOTAL GENERAL OBLIGATIONS 5,230 ------------- CERTIFICATES OF PARTICIPATION - 2.6% El Mirage, Callable 02/01/04 @ 100 6.900%, 08/01/16 215 215 Tucson, Callable 07/01/08 @ 100 (MBIA) 5.500%, 07/01/15 200 222 University of Arizona Parking & Student Housing Authority, Callable 06/01/09 @ 100 (AMBAC) 5.750%, 06/01/19 140 158 ------------- TOTAL CERTIFICATES OF PARTICIPATION 595 ------------- TOTAL MUNICIPAL BONDS (Cost $20,299) 22,020 ------------- MONEY MARKET FUND - 1.2% Federated Arizona Municipal Money Market Fund 280,016 280 ------------- TOTAL MONEY MARKET FUND (Cost $280) 280 ------------- TOTAL INVESTMENTS - 96.8% (Cost $20,579) 22,300 ------------- OTHER ASSETS AND LIABILITIES, NET - 3.2% 729 ------------- TOTAL NET ASSETS - 100.0% $ 23,029 -------------
(a) Security purchased on a when-issued basis. On September 30, 2003, the total cost of investments purchased on a when-issued basis was $745,283. See note 2 in Notes to Financial Statements. (b) Pre-refunded issues are typically backed by U.S. Government obligations. These bonds mature at the call date and price indicated. ACA - American Capital Access AMBAC - American Municipal Bond Assurance Corporation AMT - Alternative Minimum Tax. As of September 30, 2003, the aggregate market value of securities subject to the AMT was $2,201,634, which represents 9.6% of net assets. FGIC - Financial Guaranty Insurance Corporation FHLMC - Federal Home Loan Mortgage Corporation FNMA - Federal National Mortgage Association FSA - Financial Security Assurance GNMA - Government National Mortgage Association GTSL - Guaranteed Student Loans MBIA - Municipal Bond Insurance Association RAAI - Radian Asset Assurance Inc. 33 CALIFORNIA INTERMEDIATE TAX FREE FUND
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------------ MUNICIPAL BONDS - 98.2% REVENUE BONDS - 62.8% EDUCATION - 10.0% ABAG Financial Authority, Schools of the Sacred Heart, Series A 5.800%, 06/01/08 $ 200 $ 220 Aztec Shops, California State Auxiliary Organization, San Diego State University, Callable 09/01/10 @ 101 5.400%, 09/01/11 1,035 1,107 California State Higher Educational Facilities Authority, Fresno Pacific University, Series A 5.300%, 03/01/04 255 259 5.650%, 03/01/07 380 415 5.750%, 03/01/08 400 441 California State Higher Educational Facilities Authority, Occidental College Project, Callable 10/01/07 @ 102 (MBIA) 5.300%, 10/01/10 500 565 California State Higher Educational Facilities Authority, University of La Verne & Western University of Health Sciences, Series B 6.000%, 06/01/10 495 550 California State Higher Educational Facilities Authority, University of Redlands, Series A 5.550%, 06/01/09 225 257 California State Higher Educational Facilities Authority, University of Redlands, Series A, Callable 06/01/10 @ 101 5.700%, 06/01/11 250 283 5.750%, 06/01/12 260 291 California State University Fresno Association, Auxiliary Organization Event Center, Callable 07/01/12 @ 101 6.000%, 07/01/22 500 517 ------------- 4,905 ------------- HEALTHCARE - 18.5% ABAG Financial Authority, O'Connor Woods (ACA) 5.250%, 11/01/05 500 537 ABAG Financial Authority, Odd Fellows Home of California (CMI) 4.950%, 08/15/07 500 546 ABAG Financial Authority, San Diego Hospital Association, Series C 4.000%, 03/01/08 300 307 California Health Facilities Financing Authority, Casa Colina, Callable 04/01/12 @ 100 5.500%, 04/01/13 300 316 California Health Facilities Financing Authority, Paradise Valley Estates (CMI) 4.125%, 01/01/10 500 521 4.375%, 01/01/12 540 558 California Health Facilities Financing Authority, Valleycare Medical Center, Series A, Callable 05/01/12 @ 100 (CMI) 4.625%, 05/01/13 300 312 4.800%, 05/01/14 715 747 California State Communities Development Authority, Hospital of Monterey Peninsula, Callable 08/15/08 @ 101 (MBIA) 5.250%, 08/15/09 500 567 California State Health Facilities Authority, Casa de las Campanas, Series A, Callable 08/01/08 @ 100 (CMI) 5.375%, 08/01/09 $ 250 $ 275 California Statewide Communities Development Authority, Elder Care Alliance, Series A 7.250%, 11/15/11 500 498 California Statewide Communities Development Authority, Health Facilities, Series A, Escrowed to Maturity, Callable 10/01/03 @ 102 (CMI) 5.200%, 08/01/04 (a) 200 205 California Statewide Communities Development Authority, Kaiser Permanente, Series D, Mandatory Put 03/01/07 @ 100 4.350%, 11/01/36 500 529 California Statewide Communities Development Authority, Los Angeles Orthopedic Hospital Foundation, Callable 06/01/07 @ 101 (AMBAC) 5.000%, 06/01/12 150 162 John C. Fremont Hospital District, Health Facility (CMI) 6.000%, 06/01/04 65 67 La Verne, Brethren Hillcrest Homes, Series B, Callable 02/15/13 @ 101 (ACA) 5.600%, 02/15/33 500 510 Marysville Hospital, Fremont Rideout Health Project, Series A, Callable 07/01/08 @ 103 (AMBAC) 5.000%, 01/01/10 500 559 Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities, Hospital de la Concepcion, Series A 5.500%, 11/15/09 650 735 Rancho Mirage Joint Powers Finance Authority, Eisenhower Medical Center, Series A, Callable 07/01/07 @ 102 (MBIA) 5.125%, 07/01/08 500 564 Riverside County Public Financing Authority, Air Force Village West 5.125%, 05/15/05 525 546 ------------- 9,061 ------------- HOUSING - 5.4% ABAG Financial Authority, Archstone Redwood Housing Project, Series A 5.300%, 10/01/08 500 535 California Rural Home Mortgage Finance Authority, Single Family Mortgage, Series D (AMT) (FNMA) (GNMA) 5.250%, 06/01/10 160 163 California State Housing Finance Agency, Series E (MBIA) 5.850%, 08/01/04 150 155 California Statewide Communities Development Authority, Series B, Mandatory Put 06/15/09 @ 100 5.200%, 12/01/29 500 539
The accompanying notes are an integral part of the financial statements. 34
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------------ California Statewide Communities Development Authority, Archstone Communities Trust, Mandatory Put 06/01/08 @ 100 5.300%, 06/01/29 $ 500 $ 532 California Statewide Communities Development Authority, Multifamily Housing, Citrus Gardens Apartments, Callable 07/01/12 @ 102 5.375%, 07/01/26 700 704 ------------- 2,628 ------------- LEASE REVENUE - 2.8% California State Public Works Board, California Community Colleges, Series A, Callable 12/01/09 @ 101 4.875%, 12/01/18 200 205 California State Public Works Board, Department of Corrections, Series A (AMBAC) (MLO) 6.000%, 01/01/06 545 602 California State Public Works Board, Department of Health Services, Callable 11/01/09 @ 101 (MBIA) (MLO) 5.200%, 11/01/12 500 549 ------------- 1,356 ------------- MISCELLANEOUS - 1.5% Children's Trust Fund, Puerto Rico Tobacco Settlement Issue 5.000%, 07/01/08 250 283 Golden State Tobacco Securitization, Callable 06/01/10 @ 100 5.600%, 06/01/28 450 453 ------------- 736 ------------- SANITATION DISTRICT - 1.2% Los Angeles Municipal Improvement Corporation, Sanitation Equipment, Series A (FSA) (MLO) 6.000%, 02/01/07 500 571 ------------- SCHOOL DISTRICT - 3.8% Golden West Schools Financing Authority, Series A (MBIA) 5.700%, 02/01/13 720 839 5.750%, 02/01/14 520 610 Golden West Schools Financing Authority, Series A, Zero Coupon Bond (MBIA) 5.000%, 02/01/12 (c) 535 385 ------------- 1,834 ------------- TAX REVENUE - 3.1% Long Beach Community Facilities District #5, Towne Center Special Tax, Callable 10/01/06 @ 102 6.100%, 10/01/12 165 174 Los Angeles County Public Works Financing Authority, Regional Park & Open Space District, Series A, Callable 10/01/07 @ 101 5.000%, 10/01/19 500 516 Los Angeles County Transportation Commission, Series B (FGIC) 6.000%, 07/01/04 250 259 West Covina Redevelopment Agency, Fashion Plaza Project 5.125%, 09/01/05 $ 300 $ 321 William S. Hart Joint School Financing Authority, Special Tax, Callable 09/01/05 @ 102 (FSA) 6.100%, 09/01/06 200 222 ------------- 1,492 ------------- TRANSPORTATION - 4.7% San Francisco Bay Area Transportation Financing Authority, Bridge Toll (ACA) 5.500%, 08/01/05 690 737 San Francisco City & County International Airports Commission, Second Series, Callable 05/01/04 @ 101 (AMT) (FGIC) 5.400%, 05/01/06 500 516 San Francisco City & County International Airports Commission, Second Series, Issue 25 (AMT) (FSA) 5.500%, 05/01/08 500 565 San Francisco City & County International Airports Commission, SFO Fuel, Series A (AMT) (FSA) 5.250%, 01/01/07 450 496 ------------- 2,314 ------------- UTILITIES - 11.8% California State Department of Water, Central Valley Project, Series O, Callable 12/01/05 @ 101 5.000%, 12/01/12 500 546 California State Department of Water, Central Valley Project, Series P, Pre-refunded 06/01/06 @ 101 5.300%, 12/01/07 (d) 750 836 California State Department of Water, Series A, Callable 05/01/12 @ 101 5.875%, 05/01/16 500 561 Chino Basin Regional Financing Authority, Inland Empire Utility Agency Sewer Project, Callable 11/01/09 @ 101 (MBIA) 5.200%, 11/01/11 405 451 Imperial, Wastewater Treatment Facility, Callable 10/15/11 @ 102 (FGIC) 5.000%, 10/15/20 1,000 1,050 Inland Empire Solid Waste Authority, Landfill Improvement Financing Project, Series B, Escrowed to Maturity (AMT) (FSA) 5.750%, 02/01/04 (a) 500 508 Metropolitan Water District of Southern California, Series B, Callable 07/01/06 @ 102 (MBIA) 4.875%, 07/01/10 325 357 5.000%, 07/01/14 500 541 Richmond Wastewater Systems, Callable 08/01/09 @ 102 (FGIC) 5.200%, 08/01/11 500 556 Whittier Utility Authority, Callable 06/01/13 @ 100 (MBIA) 4.400%, 06/01/17 305 313 4.500%, 06/01/18 65 67 ------------- 5,786 ------------- TOTAL REVENUE BONDS 30,683 -------------
35
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------------ GENERAL OBLIGATIONS - 27.2% Alisal Unified School District, Series C, Zero Coupon Bond (FGIC) 5.050%, 08/01/08 (c) $ 860 $ 761 California State, Callable 08/01/13 @ 100 5.000%, 02/01/17 1,000 1,048 Foothill-De Anza Community College District, Callable 08/01/10 @ 101 6.000%, 08/01/11 300 353 Fresno Unified School District, Series A (MBIA) 6.050%, 08/01/11 500 596 Jefferson Union High School District, San Mateo County, Series A (MBIA) 6.250%, 02/01/14 300 365 Lemon Grove School District, Election of 1998-B, Zero Coupon Bond (FSA) 3.329%, 11/01/20 (c) 375 167 Los Angeles, Series A, Pre-refunded 09/01/04 @ 102 (MBIA) 5.800%, 09/01/07 (d) 250 266 Montebello Unified School District, Zero Coupon Bond (MBIA) 10.398%, 08/01/21 (c) 700 287 Newhall School District, Series A, Callable 05/01/10 @ 101 (FSA) 5.500%, 05/01/11 540 617 Oxnard School District (MBIA) 5.000%, 08/01/05 600 642 Pomona School District, Series A (MBIA) 5.450%, 02/01/06 250 274 5.500%, 08/01/06 250 279 Pomona School District, Series A, Callable 08/01/11 @ 103 (MBIA) 6.150%, 08/01/15 500 587 Puerto Rico Commonwealth (MBIA) 6.250%, 07/01/08 500 591 Puerto Rico Commonwealth, Series B (FSA) 6.500%, 07/01/15 1,000 1,260 Puerto Rico Commonwealth, Series C, Mandatory Put 07/01/08 @ 100 5.000%, 07/01/18 (b) 500 550 Rio Linda Unified School District, Callable 08/01/08 @ 101 (FSA) 5.000%, 08/01/09 500 559 Roseville Joint Union High School District, Callable 08/01/11 @ 101 5.200%, 08/01/20 600 637 Rowland Unified School District, Series A, Callable 09/01/10 @ 101 (FSA) 5.250%, 09/01/25 250 260 San Juan Unified School District, Zero Coupon Bond (FSA) 5.420%, 08/01/16 (c) 390 219 San Mateo County Community College District, Series A, Zero Coupon Bond (FGIC) 5.300%, 09/01/17 (c) 760 401 San Mateo Unified High School District, Series B, Zero Coupon Bond (FGIC) 5.150%, 09/01/17 (c) 1,000 527 South Pasadena Unified School District, Series A, Callable 08/01/13 @ 100 (FGIC) 5.000%, 08/01/21 $ 300 $ 313 Vista Unified School District, Series A, Zero Coupon Bond (FSA) 5.850%, 08/01/26 (c) 1,000 296 Walnut Valley Unified School District, Series A (MBIA) 6.850%, 08/01/07 250 297 Walnut Valley Unified School District, Series A, Callable 08/01/10 @ 102 (FSA) 5.000%, 08/01/12 255 283 West Covina Unified School District, Series A (MBIA) 5.350%, 02/01/20 770 868 ------------- TOTAL GENERAL OBLIGATIONS 13,303 ------------- CERTIFICATES OF PARTICIPATION - 8.2% Bakersfield Convention Center Expansion Project, Callable 04/01/07 @ 101 (MBIA) (MLO) 5.500%, 04/01/10 250 282 Escondido Civic Center Project, Escrowed to Maturity, Callable 03/01/04 @ 100 (AMBAC) (MLO) 5.800%, 09/01/04 (a) 100 104 Grossmont Unified High School District, Callable 09/01/08 @ 102 (FSA) (MLO) 5.400%, 09/01/13 300 336 Kern County Board of Education, Series A, Callable 05/01/08 @ 102 (MBIA) (MLO) 5.200%, 05/01/12 905 999 Los Angeles Community College, Energy Retrofit Project (AMBAC) 5.000%, 08/15/09 300 342 Los Angeles County Schools, Regionalized Business Services Financing Project, Series A 5.000%, 09/01/08 200 225 Los Angeles, Sonnenblick Del Rio, West Los Angeles (AMBAC) 5.375%, 11/01/10 500 573 Oxnard Redevelopment Agency, Callable 06/21/04 @ 103 4.125%, 07/01/05 500 519 Paradise Unified School District, Measure M Project, Series A, Callable 09/01/05 @ 102 (AMBAC) (MLO) 5.250%, 09/01/07 300 328 West Covina Civic Center Project, Pre-refunded 09/01/05 @ 102 (FSA) (MLO) 5.250%, 09/01/07 (d) 250 275 ------------- TOTAL CERTIFICATES OF PARTICIPATION 3,983 ------------- TOTAL MUNICIPAL BONDS (Cost $44,269) 47,969 -------------
The accompanying notes are an integral part of the financial statements. 36
DESCRIPTION SHARES VALUE (000) - ------------------------------------------------------------------------------------------------------ MONEY MARKET FUNDS - 1.6% Federated California Municipal Cash Trust 615,269 $ 615 Provident California Money Fund 187,745 188 ------------- TOTAL MONEY MARKET FUNDS (Cost $803) 803 ------------- TOTAL INVESTMENTS - 99.8% (Cost $45,072) 48,772 ------------- OTHER ASSETS AND LIABILITIES, NET - 0.2% 90 ------------- TOTAL NET ASSETS - 100.0% $ 48,862 -------------
(a) Escrowed to Maturity issues are typically backed by U.S. Government obligations. If callable, these bonds may still be subject to call at the call date and price indicated. (b) Variable Rate Security - The rate shown is the rate in effect as of September 30, 2003. (c) The rate shown is the effective yield at the time of purchase. (d) Pre-refunded issues are typically backed by U.S. Government obligations. These bonds mature at the call date and price indicated. ABAG - Association of Bay Area Governments ACA - American Capital Access AMBAC - American Municipal Bond Assurance Corporation AMT - Alternative Minimum Tax. As of September 30, 2003, the aggregate market value of securities subject to the AMT was $2,246,978, which represents 4.6% of net assets. CMI - California Mortgage Insurance Program FGIC - Financial Guaranty Insurance Corporation FNMA - Federal National Mortgage Association FSA - Financial Security Assurance GNMA - Government National Mortgage Association MBIA - Municipal Bond Insurance Association MLO - Municipal Lease Obligation CALIFORNIA TAX FREE FUND
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------------ MUNICIPAL BONDS - 97.0% REVENUE BONDS - 63.7% BUILDING - 4.4% Sacramento City Financing Authority, Callable 06/01/10 @ 101 (MLO) 5.400%, 06/01/18 $ 455 $ 500 5.500%, 06/01/23 645 693 ------------- 1,193 ------------- EDUCATION - 14.9% ABAG Financial Authority, Schools of the Sacred Heart, Series A 5.900%, 06/01/10 200 220 Aztec Shops, California State Auxiliary Organization, San Diego State University 5.200%, 09/01/08 455 494 California State Higher Educational Facilities Authority, Fresno Pacific University, Series A 5.550%, 03/01/06 250 269 California State Higher Educational Facilities Authority, Fresno Pacific University, Series A, Callable 03/01/10 @ 101 6.750%, 03/01/19 380 427 California State Higher Educational Facilities Authority, University of La Verne & Western University of Health Sciences, Series B, Callable 06/01/10 @ 101 6.625%, 06/01/20 215 235 California State Higher Educational Facilities Authority, University of Redlands, Series A, Callable 06/01/10 @ 101 5.950%, 06/01/15 310 345 California State University Foundation, Monterey Bay, Callable 06/01/11 @ 100 (MBIA) 5.300%, 06/01/22 500 531 California State University Fresno Association, Auxiliary Organization Event Center, Callable 07/01/12 @ 101 6.000%, 07/01/22 500 517 University of California, Series K, Callable 09/01/08 @ 101 5.000%, 09/01/20 1,000 1,041 ------------- 4,079 ------------- HEALTHCARE - 6.4% ABAG Finance Authority, Lincoln Glen Manor Senior Citizens, Callable 02/15/08 @ 101 (CMI) 6.100%, 02/15/25 250 264 ABAG Financial Authority, San Diego Hospital Association, Series C 4.000%, 03/01/08 100 102 California Health Facilities Financing Authority, Casa Colina, Callable 04/01/12 @ 100 5.500%, 04/01/13 50 53 California Statewide Communities Development Authority, Elder Care Alliance, Series A 7.250%, 11/15/11 250 249 California Statewide Communities Development Authority, Kaiser Permanente, Series D, Mandatory Put 03/01/07 @ 100 4.350%, 11/01/36 250 265
37
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------------ California Statewide Communities Development Authority, Los Angeles Orthopedic Hospital Foundation, Callable 06/01/07 @ 101 (AMBAC) 5.000%, 06/01/12 $ 350 $ 379 Puerto Rico Industrial Tourist, Educational, Medical & Environmental Control Facilities, Hospital de La Concepcion, Series A 5.500%, 11/15/08 400 451 ------------- 1,763 ------------- HOUSING - 5.0% California State Department of Veterans Affairs, Series C, Callable 01/09/11 @ 101 (AMT) 5.500%, 12/01/19 700 734 California State Housing Finance Agency, Single Family Mortgage, Series B (AMT) (FNMA) (GNMA) 5.650%, 06/01/10 110 116 California Statewide Communities Development Authority, Archstone Seascape, Mandatory Put 06/01/08 @ 100 5.250%, 06/01/29 500 531 ------------- 1,381 ------------- SCHOOL DISTRICT - 3.9% Golden West Schools Financing Authority, Series A (MBIA) 5.750%, 02/01/14 250 293 5.800%, 08/01/22 320 375 5.800%, 08/01/23 345 402 ------------- 1,070 ------------- TAX REVENUE - 10.0% Grass Valley Community Redevelopment Agency, Tax Allocation, Callable 12/01/08 @ 102 6.400%, 12/01/34 400 428 Long Beach Community Facilities District #5, Towne Center Special Tax, Callable 10/01/06 @ 102 6.100%, 10/01/12 250 263 Los Angeles, Callable 03/01/10 @ 101 5.625%, 03/01/19 200 225 Los Angeles County Community Facilities District #3, Series A, Special Tax, Callable 09/01/10 @ 100 (AMBAC) 5.250%, 09/01/18 715 781 Los Angeles County Public Works Financing Authority, Regional Park & Open Space District, Series A, Callable 10/01/07 @ 101 5.000%, 10/01/19 500 516 Los Angeles County Metropolitan Transportation Authority, Series B, Callable 10/01/03 @ 102 (AMBAC) 5.250%, 07/01/23 200 205 Puerto Rico Commonwealth Highway & Transportation Authority, Series X (MBIA) 5.500%, 07/01/15 100 117 San Francisco Bay Area Transportation Authority, Callable 07/01/09 @ 101 (FGIC) 5.500%, 07/01/26 200 213 ------------- 2,748 ------------- TRANSPORTATION - 3.1% Long Beach Harbor, Callable 05/15/05 @ 102 (AMT) (MBIA) 5.375%, 05/15/20 $ 250 $ 261 Los Angeles Harbor, Series B, Callable 11/01/06 @ 101 (AMT) 5.250%, 11/01/08 300 326 San Francisco Airport Commission, SFO Fuel Company, Callable 01/01/08 @ 102 (AMT) (FSA) 5.625%, 01/01/12 250 276 ------------- 863 ------------- UTILITIES - 16.0% California State Department of Water, Series W (FSA) 5.500%, 12/01/14 450 523 California Statewide Communities Development Authority, Waste Management Project, Mandatory Put 04/01/04 @ 100 (AMT) 4.950%, 04/01/11 250 253 Compton Sewer Authority, Callable 09/01/08 @ 102 (MBIA) 5.375%, 09/01/23 1,150 1,222 Contra Costa Water Authority, Series A, Callable 10/01/12 @ 100 (FGIC) 5.000%, 10/01/20 340 356 Los Angeles Power System, Series A, Subseries A-1 (MBIA) 5.000%, 07/01/12 1,225 1,364 Los Angeles Water & Power Development Authority, Pre-refunded 02/15/05 @ 101 6.100%, 02/15/17 (a) 35 38 Los Angeles Water & Power Development Authority, Pre-refunded 02/15/05 @ 101 6.100%, 02/15/17 (a) 115 124 South Bayside Waste Management Authority, Callable 03/01/09 @ 102 (AMBAC) 5.750%, 03/01/20 150 170 South Placer Waste Water Authority, Series A, Pre-refunded 11/01/10 @ 101 (FGIC) 5.500%, 11/01/15 (a) 300 355 ------------- 4,405 ------------- TOTAL REVENUE BONDS 17,502 ------------- GENERAL OBLIGATIONS - 25.4% Acalanes Unified High School District, Zero Coupon Bond, Pre-refunded 08/01/10 @ 70.92 (FGIC) 5.560%, 08/01/16 (a) (b) 700 400 Brentwood (MBIA) 5.250%, 07/01/16 150 170 California State, Callable 10/01/10 @ 100 5.250%, 10/01/19 600 625 California State, Callable 02/01/13 @ 100 5.000%, 02/01/24 700 693 Glendora Unified School District, Series A, Callable 09/01/10 @ 101 (FSA) 5.350%, 09/01/20 340 370 Jefferson Union High School District, San Mateo County, Series A (MBIA) 6.250%, 08/01/20 460 567
The accompanying notes are an integral part of the financial statements. 38
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------------ Pleasant Valley School District, Ventura County, Series A (MBIA) 5.850%, 02/01/19 $ 250 $ 297 Pomona Unified School District, Series A (MBIA) 5.950%, 02/01/17 855 1,027 Sacramento Unified School District, Series A, Pre-refunded 07/01/09 @ 102 5.750%, 07/01/17 (a) 400 478 San Francisco City & County, Series 1, Callable 06/15/07 @ 102 (FGIC) 5.500%, 06/15/09 300 343 Vallejo City Unified School District, Series A (MBIA) 5.900%, 08/01/21 350 415 Ventura County Community College District, Series A, Callable 08/01/12 @ 101 (MBIA) 5.000%, 08/01/18 910 973 Wiseburn School District, Series A, Callable 08/01/10 @ 100 (FGIC) 5.250%, 08/01/22 600 634 ------------- TOTAL GENERAL OBLIGATIONS 6,992 ------------- CERTIFICATES OF PARTICIPATION - 7.9% Bakersfield Convention Center Expansion Project, Callable 04/01/07 @ 101 (MBIA) 5.875%, 04/01/22 250 281 Escondido, Series A, Callable 09/01/10 @ 101 (FGIC) 5.625%, 09/01/20 300 335 Lathrop, Series A, Callable 06/01/10 @ 101 (MBIA) 5.875%, 06/01/30 350 391 Los Angeles, Sonnenblick del Rio Senior Lien, Callable 11/01/10 @ 101 (AMBAC) 6.000%, 11/01/19 330 384 Orange County, Series A, Callable 07/01/06 @ 102 (MBIA) 5.875%, 07/01/19 150 168 Ridgecrest Civic Center Project, Callable 03/01/09 @ 101 6.250%, 03/01/21 250 268 West Kern County Water District, Callable 06/01/10 @ 101 5.200%, 06/01/14 320 337 ------------- TOTAL CERTIFICATES OF PARTICIPATION 2,164 ------------- TOTAL MUNICIPAL BONDS (Cost $24,654) 26,658 ------------- DESCRIPTION SHARES VALUE (000) - ------------------------------------------------------------------------------------------------------ MONEY MARKET FUNDS - 1.8% Federated California Municipal Cash Trust 324,434 $ 324 Provident California Money Fund 177,004 177 ------------- TOTAL MONEY MARKET FUNDS (Cost $501) 501 ------------- TOTAL INVESTMENTS - 98.8% (Cost $25,155) 27,159 ------------- OTHER ASSETS AND LIABILITIES, NET - 1.2% 328 ------------- TOTAL NET ASSETS - 100.0% $ 27,487 -------------
(a) Pre-refunded issues are typically backed by U.S. Government obligations. These bonds mature at the call date and price indicated. (b) The rate shown is the effective yield at the time of purchase. ABAG - Association of Bay Area Governments AMBAC - American Municipal Bond Assurance Corporation AMT - Alternative Minimum Tax. As of September 30, 2003, the aggregate market value of securities subject to the AMT was $27,487,083, which represents 7.2% of net assets. CMI - California Mortgage Insurance Program FGIC - Financial Guaranty Insurance Corporation FNMA - Federal National Mortgage Association FSA - Financial Security Assurance GNMA - Government National Mortgage Association MBIA - Municipal Bond Insurance Association MLO - Municipal Lease Obligation 39 COLORADO INTERMEDIATE TAX FREE FUND
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------------ MUNICIPAL BONDS - 97.5% REVENUE BONDS - 62.2% EDUCATION - 9.3% Aurora Community College Project (CLE) (MLO) 5.750%, 10/15/04 $ 500 $ 512 Colorado School Mines Auxiliary, Callable 12/01/12 @ 100 (AMBAC) 5.250%, 12/01/20 605 654 Colorado State Educational & Cultural Facilities Authority, Bromley East Charter School Project 6.250%, 09/15/11 600 631 Colorado State Educational & Cultural Facilities Authority, Classical Academy Charter School Project 6.375%, 12/01/11 965 1,022 Colorado State Educational & Cultural Facilities Authority, Core Knowledge Charter School, Callable 11/01/09 @ 100 6.850%, 11/01/16 440 479 Colorado State Educational & Cultural Facilities Authority, University of Colorado Foundation, Callable 07/01/12 @ 100 (AMBAC) 5.000%, 07/01/27 710 722 Colorado State Educational & Cultural Facilities Authority, University of Denver (MBIA) 4.250%, 03/01/13 2,375 2,505 ------------- 6,525 ------------- HEALTHCARE - 14.8% Colorado State Health Facilities Authority, Boulder Hospital (MBIA) 4.875%, 10/01/09 500 556 5.000%, 10/01/10 500 554 Colorado State Health Facilities Authority, Catholic Health Initiatives, Series A 5.000%, 03/01/12 500 538 Colorado State Health Facilities Authority, The Devereux Foundation, Callable 11/01/12 @ 100 (RAAI) 4.200%, 11/01/13 380 383 Colorado State Health Facilities Authority, Evangelical Lutheran Health Facilities, Callable 12/01/10 @ 102 6.900%, 12/01/25 350 381 Colorado State Health Facilities Authority, Evangelical Lutheran Health Facilities, Callable 10/01/12 @ 100 5.900%, 10/01/27 250 255 Colorado State Health Facilities Authority, National Jewish Medical & Research Center Project, Callable 01/01/08 @ 100 5.375%, 01/01/16 700 716 Colorado State Health Facilities Authority, North Colorado Medical Center Project (FSA) 5.000%, 05/15/09 1,000 1,115 Colorado State Health Facilities Authority, Parkview Medical Center 5.500%, 09/01/07 $ 250 $ 271 5.750%, 09/01/08 250 275 5.500%, 09/01/09 500 544 Colorado State Health Facilities Authority, Poudre Valley Healthcare, Callable 12/01/09 @ 101 (FSA) 5.750%, 12/01/10 1,000 1,144 Colorado State Health Facilities Authority, Steamboat Springs Health Project 4.600%, 09/15/04 405 409 Colorado State Health Facilities Authority, Steamboat Springs Health Project, Callable 09/15/08 @ 101 5.300%, 09/15/09 250 255 Colorado State Health Facilities Authority, Vail Medical Center, Callable 01/15/12 @ 100 5.750%, 01/15/22 800 820 Delta County Memorial Hospital District, Callable 09/01/13 @ 100 5.350%, 09/01/17 500 504 La Junta Hospital, Arkansas Valley Regional Medical Center Project 5.200%, 04/01/06 300 313 5.300%, 04/01/07 320 336 5.400%, 04/01/08 335 351 5.500%, 04/01/09 355 372 University of Colorado Hospital Authority, Callable 11/15/11 @ 100 5.000%, 11/15/14 300 311 ------------- 10,403 ------------- HOUSING - 0.3% Colorado State Housing Finance Authority, Multifamily Housing, Series A (FHA) 5.125%, 10/01/03 95 95 Colorado State Housing Finance Authority, Single Family Mortgages, Series B-1, Callable 06/01/05 @ 103 (AMT) 5.875%, 06/01/11 100 100 ------------- 195 ------------- MISCELLANEOUS - 5.9% Children's Trust Fund, Puerto Rico Tobacco Settlement Issue, Escrowed to Maturity 5.750%, 07/01/09 (b) 2,000 2,351 Colorado State Educational & Cultural Facilities Authority, Colorado Public Radio 4.800%, 07/01/09 250 267 4.900%, 07/01/10 265 279 Colorado State Educational & Cultural Facilities Authority, Nashville Public Radio 5.500%, 04/01/12 430 464 Colorado State Educational & Cultural Facilities Authority, National Conference of State Legislatures, Callable 06/01/11 @ 100 5.250%, 06/01/13 700 756 ------------- 4,117 -------------
The accompanying notes are an integral part of the financial statements. 40
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------------ POLLUTION CONTROL - 1.4% Moffat County, Pollution Control, Tri-State Generation Project (AMBAC) 5.500%, 11/01/05 $ 1,000 $ 1,088 ------------- RECREATIONAL FACILITY AUTHORITY - 3.3% Denver City & County, Helen G. Bonfils Foundation Project, Series B, Callable 12/01/07 @ 100 5.125%, 12/01/17 900 971 Hyland Hills Metropolitan Park & Recreational District, Series A, Callable 12/15/07 @ 101 6.100%, 12/15/09 210 229 Jefferson County, Metropolitan YMCA Project, Series A, Pre-refunded 08/01/05 @ 100 7.500%, 08/01/08 (a) 1,000 1,111 ------------- 2,311 ------------- TAX REVENUE - 8.0% Boulder County Open Space Capital Improvement Trust Fund, Callable 07/15/10 @ 100 4.750%, 07/15/12 1,000 1,078 Boulder County Sales & Use Tax (FGIC) 5.750%, 12/15/05 870 956 Boulder County Sales & Use Tax, Escrowed to Maturity (FGIC) 5.750%, 12/15/05 (b) 130 143 Douglas County Sales & Use Tax (FSA) 6.000%, 10/15/09 300 356 Larimer County Sales & Use Tax (AMBAC) 5.000%, 12/15/09 360 408 5.000%, 12/15/10 460 519 Longmont Sales & Use Tax, Callable 11/15/10 @ 100 5.500%, 11/15/15 500 563 Longmont Sales & Use Tax, Callable 11/15/10 @ 101 (AMBAC) 4.875%, 11/15/18 1,000 1,052 Westminster Sales & Use Tax, Series A, Callable 12/01/07 @ 102 (FGIC) 5.250%, 12/01/11 500 561 ------------- 5,636 ------------- TRANSPORTATION - 8.7% Colorado Department of Transportation (AMBAC) 6.000%, 06/15/10 1,000 1,182 The E-470 Public Highway Authority, Series B, Zero Coupon Bond (MBIA) 5.520%, 09/01/17 (c) 1,575 829 6.400%, 09/01/19 (c) 960 445 5.650%, 09/01/20 (c) 500 217 5.396%, 09/01/22 (c) 1,620 614 Northwest Parkway Public Highway Authority, Convertible, Zero Coupon Bond (AMBAC) 5.000%, 06/15/14 (c) 750 566 5.250%, 06/15/15 (c) 2,000 1,507 5.350%, 06/15/16 (c) 1,000 754 ------------- 6,114 ------------- UTILITIES - 10.5% Arapahoe County Water & Waste Authority 5.550%, 12/01/06 140 152 5.650%, 12/01/07 150 164 5.750%, 12/01/08 160 176 Arapahoe County Water & Waste Authority, Callable 12/01/09 @ 100 6.000%, 12/01/11 $ 185 $ 199 Boulder Water & Sewer 5.750%, 12/01/10 1,545 1,811 Broomfield Water Activity Enterprise, Callable 12/01/10 @ 101 (MBIA) 5.500%, 12/01/17 500 562 Colorado State Water Resource & Power Development Authority, Small Water Resources, Series A, Callable 11/01/10 @ 100 (FGIC) 5.700%, 11/01/15 100 114 Denver City & County Wastewater, Callable 11/01/12 @ 100 (FGIC) 5.250%, 11/01/17 1,260 1,390 Platte River Power Authority, Series DD, Callable 06/01/07 @ 102 (MBIA) 5.375%, 06/01/17 875 971 Ute Water Conservancy District (MBIA) 6.000%, 06/15/09 680 802 Westminster Water & Wastewater Utility Enterprise, Pre-refunded 12/01/04 @ 100 (AMBAC) 5.800%, 12/01/05 (a) 1,000 1,053 ------------- 7,394 ------------- TOTAL REVENUE BONDS 43,783 ------------- GENERAL OBLIGATIONS - 29.7% Adams County School District No. 12, Series A, Callable 12/15/12 @ 100 (FSA) 5.500%, 12/15/15 1,000 1,141 Arapahoe County School District #5, Cherry Creek, Callable 12/15/09 @ 100 (STAID) 5.500%, 12/15/11 1,000 1,142 Arapahoe Park & Recreation District (FGIC) 3.750%, 12/01/10 560 587 Boulder Valley School District #RE-2, Series A, Pre-refunded 12/01/04 @ 101 (STAID) 5.950%, 12/01/07 (a) 1,000 1,067 Boulder, Larimer & Weld Counties, School District #R-2, Thompson, Series A, Callable 12/15/04 @ 100 (STAID) 5.900%, 12/15/06 1,000 1,056 Boulder, Larimer & Weld Counties, St. Vrain Valley School District, Callable 12/15/13 @ 100 (MBIA) (STAID) 5.250%, 12/15/14 1,000 1,133 Douglas & Elbert Counties, School District #1, Series A, Pre-refunded 12/15/04 @ 101 (MBIA) (STAID) 6.400%, 12/15/11 (a) 1,000 1,074 Eagle, Garfield & Routt Counties, School District #50-J, Pre-refunded 12/01/04 @ 102 (FGIC) (STAID) 6.125%, 12/01/09 (a) 1,290 1,392 El Paso County School District #2, Harrison (STAID) 7.050%, 12/01/04 1,000 1,069 El Paso County School District #3, Widefield, Zero Coupon Bond (MBIA) 4.700%, 12/15/09 (c) 500 414 El Paso County School District #20, Series A (STAID) 6.100%, 12/15/05 500 553 Elbert County School District #C-1, Elizabeth 5.150%, 12/01/08 500 567 Garfield County School District #RE-2, Callable 12/01/12 @ 100 (FSA) (STAID) 5.250%, 12/01/19 1,530 1,667
41
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------------ Garfield, Pitkin & Eagle Counties School District #1, Callable 06/15/04 @ 101 (MBIA) (STAID) 6.000%, 12/15/04 $ 1,000 $ 1,044 Jefferson County School District #R-001 (MBIA) (STAID) 6.250%, 12/15/09 1,000 1,201 Jefferson County School District #R-001, Callable 12/15/07 @ 101 (STAID) 5.000%, 12/15/12 200 219 Larimer County School District #R-1, Poudre (STAID) 5.400%, 12/15/04 750 789 Parker Jordan Metropolitan District, Callable 12/01/13 @ 100 (MBIA) 5.000%, 12/01/18 580 625 Pueblo County School District #70, Pueblo Rural, Callable 12/01/12 @ 100 (FSA) (STAID) 4.000%, 12/01/13 445 460 Puerto Rico Commonwealth, Series C, Mandatory Put 07/01/08 @ 100 5.000%, 07/01/18 (d) 1,000 1,099 Summit County School District #R-1, Pre-refunded 12/01/04 @ 100 6.450%, 12/01/08 (a) 1,250 1,329 Westglenn Metropolitan District, Callable 12/01/09 @ 100 6.000%, 12/01/14 1,220 1,320 ------------- TOTAL GENERAL OBLIGATIONS 20,948 ------------- CERTIFICATES OF PARTICIPATION - 5.6% Aurora, Callable 12/01/04 @ 101 (MLO) 6.000%, 12/01/06 1,000 1,051 Colorado Springs Public Facility Authority, Old City Hall Project (FSA) (MLO) 5.000%, 12/01/10 200 225 Englewood Civic Center Project, Callable 12/01/08 @ 100 (MBIA) (MLO) 4.900%, 06/01/13 585 621 Garfield County Building (AMBAC) (MLO) 5.750%, 12/01/09 400 470 Garfield County Building, Callable 12/01/09 @ 101 (AMBAC) (MLO) 5.300%, 12/01/11 400 449 Westminster Recreational Facilities, Callable 09/01/09 @ 101 (MBIA) (MLO) 5.200%, 09/01/10 1,000 1,125 ------------- TOTAL CERTIFICATES OF PARTICIPATION 3,941 ------------- TOTAL MUNICIPAL BONDS (Cost $63,355) 68,672 ------------- DESCRIPTION SHARES VALUE (000) - ------------------------------------------------------------------------------------------------------ RELATED PARTY MONEY MARKET FUND - 0.8% First American Tax Free Obligations Fund, Cl Y (e) 540,305 $ 540 ------------- TOTAL RELATED PARTY MONEY MARKET FUND (Cost $540) 540 ------------- TOTAL INVESTMENTS - 98.3% (Cost $63,895) 69,212 ------------- OTHER ASSETS AND LIABILITIES, NET - 1.7% 1,197 ------------- TOTAL NET ASSETS - 100.0% $ 70,409 -------------
(a) Pre-refunded issues are typically backed by U.S. Government obligations. These bonds mature at the call date and price indicated. (b) Escrowed to Maturity issues are typically backed by U.S. Government obligations. If callable, these bonds may still be subject to call at the call date and price indicated. (c) The rate shown is the effective yield at the time of purchase. (d) Variable Rate Security - The rate shown is the rate in effect as of September 30, 2003. (e) 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. AMBAC - American Municipal Bond Assurance Corporation AMT - Alternative Minimum Tax. As of September 30, 2003, the aggregate market value of securities subject to the AMT was $100,291, which represents 0.1% of net assets. Cl - Class CLE - Connie Lee Insurance Company FGIC - Financial Guaranty Insurance Corporation FHA - Federal Housing Authority FSA - Financial Security Assurance MBIA - Municipal Bond Insurance Association MLO - Municipal Lease Obligation RAAI - Radian Asset Assurance Inc. STAID - State Aid Withholding The accompanying notes are an integral part of the financial statements. 42 COLORADO TAX FREE FUND
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------------ MUNICIPAL BONDS - 94.1% REVENUE BONDS - 65.7% EDUCATION - 7.2% Colorado State Board of Agriculture, Auxiliary Facility Systems, Callable 03/01/07 @ 101 (AMBAC) 5.125%, 03/01/17 $ 200 $ 216 Colorado State Educational & Cultural Facilities Authority, Ave Marie School Project, Callable 12/01/10 @ 100 (AG) 6.000%, 12/01/16 200 231 Colorado State Educational & Cultural Facilities Authority, Classical Academy Charter School Project 6.375%, 12/01/11 675 715 Colorado State Educational & Cultural Facilities Authority, Core Knowledge Charter School, Callable 11/01/09 @ 100 6.850%, 11/01/16 100 109 Colorado State Educational & Cultural Facilities Authority, University of Denver Project, Callable 03/01/11 @ 100 (AMBAC) 5.350%, 03/01/20 500 543 University of Northern Colorado, Auxiliary Facility System, Pre-refunded 06/01/07 @ 100 (MBIA) 5.600%, 06/01/24 (a) 165 187 ------------- 2,001 ------------- HEALTHCARE - 18.0% Boulder County Longmont United Hospital Project (AG) 5.250%, 12/01/09 260 291 5.300%, 12/01/10 330 367 Colorado State Health Facilities Authority, Catholic Health Initiatives, Series A 5.000%, 03/01/12 250 269 Colorado State Health Facilities Authority, Covenant Retirement Communities, Series B, Callable 12/01/12 @ 101 6.125%, 12/01/33 350 351 Colorado State Health Facilities Authority, The Devereux Foundation, Callable 11/01/12 @ 100 (RAAI) 5.000%, 11/01/22 250 253 Colorado State Health Facilities Authority, Evangelical Lutheran Health Facilities, Callable 12/01/10 @ 102 6.900%, 12/01/25 150 163 Colorado State Health Facilities Authority, National Jewish Medical & Research Center Project, Callable 01/01/08 @ 100 5.375%, 01/01/16 300 307 Colorado State Health Facilities Authority, Parkview Medical Center 5.500%, 09/01/07 500 541 5.600%, 09/01/11 300 323 Colorado State Health Facilities Authority, Portercare Adventist Project, Callable 11/15/11 @ 101 6.500%, 11/15/23 600 657 Colorado State Health Facilities Authority, Steamboat Springs Health Project, Callable 09/15/08 @ 101 5.300%, 09/15/09 $ 250 $ 255 Colorado State Health Facilities Authority, Vail Valley Medical Center, Callable 01/15/12 @ 100 5.800%, 01/15/27 500 509 Colorado State Health Facilities Authority, Vail Valley Medical Center, Series A, Callable 01/15/05 @ 101 (ACA) 6.500%, 01/15/13 250 260 Delta County Memorial Hospital District Enterprise, Callable 09/01/13 @ 100 5.350%, 09/01/17 220 222 La Junta, Arkansas Valley Regional Medical Center Project, Callable 04/01/09 @ 101 6.100%, 04/01/24 100 100 University of Colorado Hospital Authority 5.600%, 11/15/31 100 102 ------------- 4,970 ------------- HOUSING - 2.5% Colorado State Housing Finance Authority, Multifamily Project, Class I, Series B-4, Callable 10/01/10 @ 100 5.900%, 04/01/31 100 105 Colorado State Housing Finance Authority, Series E-2, Callable 08/01/10 @ 105 (AMT) 7.000%, 02/01/30 145 151 Colorado State Housing Finance Authority, Single Family Housing Program, Series A-2, Callable 10/01/09 @ 105 (AMT) 7.450%, 10/01/16 35 37 Colorado State Housing Finance Authority, Single Family Housing Program, Series B-2, Callable 04/01/10 @ 105 (AMT) 7.100%, 04/01/17 90 93 El Paso County, Series D, Zero Coupon Bond, Escrowed to Maturity (AMT) (FSA) (GNMA) 6.000%, 07/01/11 (b) (c) 400 296 ------------- 682 ------------- MISCELLANEOUS - 4.1% Colorado State Educational & Cultural Facilities Authority, Nashville Public Radio, Callable 04/01/12 @ 100 5.875%, 04/01/22 250 261 Colorado State Educational & Cultural Facilities Authority, National Conference of State Legislatures, Callable 06/01/11 @ 100 5.250%, 06/01/21 750 771 Denver City & County, Helen G. Bonfils Foundation Project, Series B, Callable 12/01/07 @ 100 5.125%, 12/01/17 100 108 ------------- 1,140 ------------- RECREATIONAL FACILITY AUTHORITY - 0.8% Hyland Hills Metropolitan Park & Recreational District, Series A, Callable 12/15/07 @ 101 6.100%, 12/15/09 200 218 -------------
43
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------------ TAX REVENUE - 7.1% Boulder County Sales & Use Tax, Series A, Callable 12/15/09 @ 101 (FGIC) 5.800%, 12/15/16 $ 495 $ 573 6.000%, 12/15/19 200 232 Douglas County Sales & Use Tax, Callable 10/15/10 @ 100 (FSA) 5.625%, 10/15/20 200 224 Highlands Ranch Metropolitan District #2, Callable 06/15/06 @ 101 (FSA) 5.000%, 06/15/16 200 215 Larimer County Sales & Use Tax, Callable 12/15/10 @ 100 (AMBAC) 5.625%, 12/15/18 100 113 Metex Metropolitan District, Series A, Callable 12/01/07 @ 101 (MBIA) 5.800%, 12/01/16 350 398 Mountain Village Metropolitan District, San Miguel County, Callable 12/01/07 @ 101 (MBIA) 5.200%, 12/01/17 200 219 ------------- 1,974 ------------- TRANSPORTATION - 10.9% Denver City & County Airport, Series E, Callable 11/15/07 @ 101 (MBIA) 5.250%, 11/15/23 500 525 The E-470 Public State Authority, Series A, Callable 09/01/07 @ 101 (MBIA) 5.000%, 09/01/16 750 809 Northwest Parkway Public Highway Authority, Convertible, Zero Coupon Bond (AMBAC) 5.000%, 06/15/14 (b) 750 566 5.160%, 06/15/15 (b) 500 377 Northwest Parkway Public Highway Authority, Convertible, Zero Coupon Bond, Callable 06/15/16 @ 100 (AMBAC) 5.700%, 06/15/21 (b) 1,000 721 ------------- 2,998 ------------- UTILITIES - 15.1% Arapahoe County Water & Wastewater (MBIA) 5.000%, 12/01/26 750 763 Boulder Water & Sewer, Callable 12/01/10 @ 100 5.700%, 12/01/19 300 340 Broomfield Water Activity Enterprise, Callable 12/01/10 @ 101 (MBIA) 5.500%, 12/01/19 400 444 Colorado State Water Reserve & Power Development Authority, Series A, Callable 11/01/12 @ 100 (FGIC) 5.000%, 11/01/22 250 259 Colorado Water Power Development Authority 5.250%, 09/01/11 300 342 Denver City & County, Wastewater, Callable 11/01/12 @ 100 (FGIC) 5.000%, 11/01/20 500 526 5.125%, 11/01/22 250 262 Fort Collins Wastewater Utility Enterprise, Callable 12/01/10 @ 100 (FSA) 5.500%, 12/01/20 300 331 Platte River Power Authority, Series DD, Callable 06/01/07 @ 102 (MBIA) 5.375%, 06/01/17 $ 500 $ 555 Pueblo County Board of Waterworks, Series A, Callable 11/01/10 @ 100 (FSA) 5.875%, 11/01/18 305 352 ------------- 4,174 ------------- TOTAL REVENUE BONDS 18,157 ------------- GENERAL OBLIGATIONS - 14.5% Adams & Arapahoe Counties Joint School District #28J, Aurora, Series C, Callable 12/01/06 @ 102 (STAID) 5.350%, 12/01/15 300 323 Adams County School District #12, Callable 12/15/07 @ 101 (FGIC) 5.400%, 12/15/16 250 288 Arapahoe County School District #5, Cherry Creek, Callable 12/15/09 @ 100 (STAID) 5.500%, 12/15/19 550 610 Boulder Open Space Acquisition, Callable 08/15/10 @ 100 5.450%, 08/15/16 350 391 Clear Creek School District #1, Pre-refunded 12/01/10 @ 100 (FSA) (STAID) 5.750%, 12/01/17 (a) 200 237 Douglas County School District #RE-1, Callable 12/15/12 @ 100 (FSA) 5.125%, 12/15/25 750 772 El Paso County School District #38, Pre-refunded 12/01/10 @ 100 (STAID) 6.375%, 12/01/18 (a) 200 245 6.000%, 12/01/24 (a) 250 300 El Paso County School District #49, Falcon, Series A, Callable 12/01/09 @ 105 (FSA) (STAID) 6.000%, 12/01/18 200 235 Morgan County School District #RE-3, Callable 12/01/09 @ 100 (AMBAC) 4.800%, 12/01/18 250 259 Pueblo County, School District #70, Pre-refunded 12/01/09 @ 100 (FGIC) (STAID) 6.000%, 12/01/18 (a) 100 120 Puerto Rico Commonwealth, Public Improvements, Callable 07/01/05 @ 101 6.000%, 07/01/29 200 218 ------------- TOTAL GENERAL OBLIGATIONS 3,998 ------------- CERTIFICATES OF PARTICIPATION - 13.9% Arapahoe County Building Finance Authority, Callable 02/15/10 @ 100 (AMBAC) 5.250%, 02/15/19 400 432 5.250%, 02/15/21 650 690 Broomfield Open Space Park & Recreation Facilities, Callable 12/01/10 @ 100 (AMBAC) 5.500%, 12/01/20 800 881 Colorado Springs Old City Hall Project, Callable 12/01/10 @ 100 (FSA) 5.500%, 12/01/17 200 225 5.500%, 12/01/20 200 221 Denver City & County, Series A, Callable 05/01/10 @ 100 (MBIA) 5.500%, 05/01/17 400 447
The accompanying notes are an integral part of the financial statements. 44
DESCRIPTION PAR (000)/SHARES VALUE (000) - ------------------------------------------------------------------------------------------------------ Eagle County, Callable 12/01/09 @ 101 (MBIA) 5.400%, 12/01/18 $ 300 $ 332 Fremont County Lease, Callable 12/15/07 @ 101 (MBIA) (MLO) 5.300%, 12/15/17 250 287 Garfield County, Callable 12/01/09 @ 101 (AMBAC) 5.750%, 12/01/19 300 340 ------------- TOTAL CERTIFICATES OF PARTICIPATION 3,855 ------------- TOTAL MUNICIPAL BONDS (Cost $23,487) 26,010 ------------- RELATED PARTY MONEY MARKET FUND - 4.0% First American Tax Free Obligations Fund, Cl Y (d) 1,118,634 1,119 ------------- TOTAL RELATED PARTY MONEY MARKET FUND (Cost $1,119) 1,119 ------------- TOTAL INVESTMENTS - 98.1% (Cost $24,606) 27,129 ------------- OTHER ASSETS AND LIABILITIES, NET - 1.9% 514 ------------- TOTAL NET ASSETS - 100.0% $ 27,643 -------------
(a) Pre-refunded issues are typically backed by U.S. Government obligations. These bonds mature at the call date and price indicated. (b) The rate shown is the effective yield at the time of purchase. (c) Escrowed to Maturity issues are typically backed by U.S. Government obligations. If callable, these bonds may still be subject to call at the call date and price indicated. (d) This money market fund is advised by U.S. Bancorp Asset Management, Inc., which also serves as advisor for this Fund. See note 3 in Notes to Financial Statements. ACA - American Capital Access AG - Asset Guaranty AMBAC - American Municipal Bond Assurance Corporation AMT - Alternative Minimum Tax. As of September 30, 2003, the aggregate market value of securities subject to the AMT was $576,135, which represents 2.1% of net assets. Cl - Class FGIC - Financial Guaranty Insurance Corporation FSA - Financial Security Assurance GNMA - Government National Mortgage Association MBIA - Municipal Bond Insurance Association MLO - Municipal Lease Obligation RAAI - Radian Asset Assurance Inc. STAID - State Aid Withholding INTERMEDIATE TAX FREE FUND
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------------ MUNICIPAL BONDS - 99.4% ALABAMA - 0.9% Alabama State Docks Department, Callable 10/01/08 @ 102 (MBIA) (RB) 5.250%, 10/01/10 $ 3,000 $ 3,375 Anniston, Regional Medical Center Board, Northeast Alabama Regional Medical Center Project, Escrowed to Maturity (RB) 8.000%, 07/01/11 (a) 1,400 1,779 West Jefferson Amusement & Public Park Authority, First Mortgage, Visionland Alabama Project, Pre-refunded 12/01/06 @ 102 (RB) 7.500%, 12/01/08 (b) 975 1,066 ------------- 6,220 ------------- ALASKA - 1.1% Alaska Energy Authority, Bradley Lake, Third Series (FSA) (RB) 6.000%, 07/01/10 2,610 3,083 Alaska State Housing Finance Corporation, Series A (MBIA) (RB) 5.350%, 06/01/06 380 382 Alaska State Housing Finance Corporation, Series A (RB) 5.900%, 12/01/04 700 733 Alaska State Housing Finance Corporation, Series A, Callable 06/01/04 @ 102 (RB) 5.400%, 12/01/23 3,000 3,040 Alaska State Housing Finance Corporation, Series A, Callable 12/01/05 @ 102 (MBIA) (RB) 5.400%, 12/01/08 1,000 1,058 ------------- 8,296 ------------- ARIZONA - 3.4% Arizona Health Facilities Authority, Pre-refunded 11/01/03 @ 102 (RB) 7.250%, 11/01/14 (b) 5,445 5,557 Arizona State Municipal Financing Program, Escrowed to Maturity (COP) (MLO) 8.750%, 08/01/07 (a) 1,500 1,883 Arizona State Municipal Financing Program, Series 15, Escrowed to Maturity (COP) 8.750%, 08/01/07 (a) 2,085 2,615 Arizona State Transportation Highway Board (RB) 8.000%, 07/01/05 5,000 5,588 Arizona Tourism & Sports Authority, Multipurpose Stadium Facility, Series A (MBIA) (RB) 4.500%, 07/01/13 1,000 1,076 Maricopa County School District #69, Paradise Valley (GO) (MBIA) 5.300%, 07/01/11 1,000 1,141 Phoenix Street & Highway User (RB) 6.500%, 07/01/09 180 183 6.250%, 07/01/11 900 913 Phoenix, Series A (GO) 5.550%, 07/01/09 1,000 1,160 Tucson Airport Authority (FSA) (RB) 5.000%, 06/01/13 2,760 3,052
45
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------------ Yavapai County Industrial Development Authority, Waste Management Project, Mandatory Put 06/01/05 @ 100 (AMT) (RB) 4.625%, 06/01/27 $ 2,000 $ 2,052 ------------- 25,220 ------------- ARKANSAS - 0.4% Pulaski County, Residential Housing Facilities Board, Escrowed to Maturity (FHA) (RB) (VA) 7.250%, 06/01/10 (a) 2,640 3,101 ------------- CALIFORNIA - 4.3% ABAG Financial Authority, Archstone Redwood Housing Project, Series A (RB) 5.300%, 10/01/08 290 310 ABC Unified School District, Series A (GO) (MBIA) 4.900%, 02/01/20 1,615 1,736 Bakersfield Convention Center Expansion Project, Callable 04/01/07 @ 101 (COP) (MBIA) (MLO) 5.400%, 04/01/09 1,000 1,127 California State Department of Water, Series A, Callable 05/01/12 @ 101 (RB) 5.875%, 05/01/16 2,000 2,243 California State, Callable 08/01/13 @ 100 (GO) 5.000%, 02/01/16 1,000 1,056 5.000%, 02/01/17 2,000 2,096 California State, Callable 11/01/11 @ 100 (GO) 5.000%, 11/01/18 5,000 5,168 California Statewide Communities Development Authority, Archstone Seascape, Mandatory Put 06/01/08 @ 100 (RB) 5.250%, 06/01/29 1,000 1,063 California Statewide Communities Development Authority, Elder Care Alliance, Series A (RB) 7.250%, 11/15/11 1,450 1,443 California Statewide Communities Development Authority, Multifamily Housing, Citrus Gardens Apartments, Callable 07/01/12 @ 102 (RB) 5.375%, 07/01/26 500 503 California Statewide Communities Development Authority, Waste Management Project, Mandatory Put 04/01/04 @ 100 (AMT) (RB) 4.950%, 04/01/11 750 758 Golden State Tobacco Securitization, Callable 06/01/10 @ 100 (GO) 5.600%, 06/01/28 2,000 2,012 Golden State Tobacco Securitization, Series B (RB) 5.000%, 06/01/12 1,000 1,073 Hacienda La Puente Unified School District, Capital Appreciation, Election 2000, Series B, Zero Coupon Bond (FSA) (GO) 4.580%, 08/01/14 (c) (d) 100 63 La Verne, Brethren Hillcrest Homes, Series B, Callable 02/15/13 @ 101 (ACA) (COP) 5.600%, 02/15/33 1,150 1,173 Mountain View Los Altos School District, Callable 05/01/07 @ 102 (GO) 6.500%, 05/01/17 2,000 2,309 Oxnard Redevelopment Agency, Callable 06/21/04 @ 103 (COP) 4.125%, 07/01/05 $ 500 $ 519 Roseville California JT High School, Callable 08/01/11 @ 101 (GO) 5.100%, 08/01/19 390 413 San Diego County, Developmental Services Foundation, Callable 09/01/12 @ 100 (COP) 5.500%, 09/01/27 2,250 2,255 San Marcos, Escrowed to Maturity, Zero Coupon Bond (COP) 4.890%, 02/15/06 (a) (c) 1,085 1,047 San Mateo Unified High School District, Series B, Zero Coupon Bond (FGIC) (GO) 5.150%, 09/01/17 (c) 1,000 527 Victor Elementary School District, Series A, Zero Coupon Bond (FGIC) (GO) 5.660%, 08/01/23 (c) 2,030 726 Woodland Financial Authority, Callable 03/01/13 @ 102 (RB) (XLCA) 4.700%, 03/01/19 815 835 4.800%, 03/01/20 855 876 ------------- 31,331 ------------- COLORADO - 5.6% Arapahoe County, Single Family, Escrowed to Maturity, Zero Coupon Bond (RB) 3.340%, 09/01/10 (a) (c) 9,320 7,376 Boulder County Open Space Capital Improvement Trust Fund, Callable 07/15/10 @ 100 (RB) 4.750%, 07/15/12 400 431 Colorado Department of Transportation (AMBAC) (RB) 6.000%, 06/15/08 3,000 3,497 Colorado State Educational & Cultural Facilities Authority, Bromley East Charter School Project, Callable 09/15/11 @ 100 (RB) 6.750%, 09/15/15 1,200 1,239 Colorado State Educational & Cultural Facilities Authority, Classical Academy Charter School Project (RB) 6.375%, 12/01/11 960 1,017 Colorado State Educational & Cultural Facilities Authority, Classical Academy Charter School Project, Callable 12/01/11 @ 100 (RB) 6.750%, 12/01/16 1,500 1,555 7.250%, 12/01/21 1,500 1,557 Colorado State Educational & Cultural Facilities Authority, Johnson & Wales University Project, Series A, Callable 04/01/13 @ 100 (RB) (XLCA) 5.000%, 04/01/28 1,000 1,011 Colorado State Educational & Cultural Facilities Authority, Pinnacle Charter School Project (RB) 5.250%, 12/01/11 1,635 1,652 Colorado State Health Facilities Authority, Catholic Health Initiatives, Series A (RB) 5.000%, 03/01/12 745 802
The accompanying notes are an integral part of the financial statements. 46
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------------ Colorado State Health Facilities Authority, Evangelical Lutheran Health Facilities, Callable 10/01/12 @ 100 (RB) 5.900%, 10/01/27 $ 250 $ 255 Colorado State Health Facilities Authority, Retirement Facilities, Escrowed to Maturity, Zero Coupon Bond (RB) 5.500%, 07/15/20 (a) (c) 10,000 4,407 Colorado State Housing Finance Authority, Series A-2, Callable 05/01/06 @ 105 (RB) 7.150%, 11/01/14 335 336 Colorado Water & Power Development Authority, Series A (RB) 5.250%, 09/01/13 2,100 2,392 El Paso County School District #2, Harrison, Callable 12/01/11 @ 100 (FGIC) (GO) (STAID) 5.500%, 12/01/16 1,280 1,444 Jefferson County School District #R-1 (GO) (MBIA) 6.500%, 12/15/11 2,000 2,461 Jefferson County School District #R-1, Callable 12/15/08 @ 101 (FGIC) (GO) (STAID) 5.250%, 12/15/11 1,000 1,123 Loveland, Escrowed to Maturity (GO) 8.875%, 11/01/05 (a) 1,065 1,156 Mesa County, Escrowed to Maturity, Zero Coupon Bond (RB) 3.539%, 12/01/11 (a) (c) 5,500 4,067 Northwest Parkway Public Highway Authority, Convertible, Zero Coupon Bond (AMBAC) (RB) 5.250%, 06/15/15 (c) 2,750 2,073 Westminster Water & Wastewater Utilities Improvement, Callable 12/01/04 @ 100 (AMBAC) (RB) 6.000%, 12/01/09 1,000 1,056 ------------- 40,907 ------------- CONNECTICUT - 0.7% Mashantucket Western Pequot Tribe, Series A, Callable 09/01/06 @ 102, Pre-refunded 09/01/07 @ 101 (RB) 6.400%, 09/01/11 (b) (e) 4,170 4,794 ------------- DELAWARE - 0.9% Delaware State Economic Development Authority, Pre-refunded 07/01/05 @ 102 (RB) 7.625%, 07/01/25 (b) 2,800 3,156 Delaware State Health Facilities Authority, Partially Pre-refunded 04/01/04 and 10/01/04 @ 100 (RB) 7.000%, 10/01/15 (b) 1,265 1,315 New Castle County, Callable 10/01/03 @ 102 (GO) 5.300%, 10/01/05 2,000 2,047 ------------- 6,518 ------------- FLORIDA - 1.7% Escambia County Health Facilities Authority, Ascension Health Credit, Series A (RB) 5.250%, 11/15/14 2,000 2,194 Florida State Municipal Loan Council, Series C, Callable 11/01/12 @ 101 (MBIA) (RB) 5.250%, 11/01/14 1,325 1,492 Greater Orlando Aviation Authority, Airport Facilities (AMT) (FGIC) (RB) 5.250%, 10/01/09 1,815 2,025 Lee County Industrial Development Authority, Shell Point Village Health Project, Series A (RB) 5.500%, 11/15/08 $ 1,000 $ 1,078 Palm Beach County Health Facilities Authority, Abbey Delray South, Life Care Retirement Community (RB) 5.250%, 10/01/13 1,400 1,418 Palm Beach County Housing Facilities, Lourdes Noreen McKeen (RAAI) (RB) 3.500%, 12/01/08 785 817 3.750%, 12/01/09 815 849 Tampa Excise Tax, Callable 10/01/03 @ 100 (RB) 6.125%, 04/01/08 2,000 2,268 ------------- 12,141 ------------- GEORGIA - 0.2% Cherokee County Water & Sewer Authority, Escrowed to Maturity, Callable 02/01/04 @ 101.50 (MBIA) (RB) 11.250%, 08/01/07 (a) 1,445 1,824 ------------- HAWAII - 1.4% Hawaii State Airport System, Series B (AMT) (FGIC) (RB) 6.250%, 07/01/06 2,000 2,233 Hawaii State Harbor System, Series A (AMT) (FSA) (RB) 5.250%, 07/01/08 2,270 2,545 Hawaii State, Series CY (FSA) (GO) 5.250%, 02/01/10 5,000 5,669 ------------- 10,447 ------------- IDAHO - 0.1% Ada & Canyon Counties, Joint School District #2, Pre-refunded 07/30/05 @ 101 (GO) 5.500%, 07/30/11 (b) 1,000 1,089 ------------- ILLINOIS - 17.6% Bolingbrook, Capital Appreciation, Escrowed to Maturity, Zero Coupon Bond (FGIC) (GO) 4.950%, 01/01/06 (a) (c) 1,000 966 Bolingbrook, Capital Appreciation, Zero Coupon Bond (GO) 4.850%, 01/01/05 (c) 1,080 1,063 Champaign County Community Unit School District #004 (GO) 8.250%, 01/01/09 1,315 1,653 Chicago Water, Zero Coupon Bond (FGIC) (RB) 6.776%, 11/01/08 (c) 5,150 4,492 5.260%, 11/01/09 (c) 6,450 5,358 Chicago, City Colleges, Zero Coupon Bond (FGIC) (GO) 5.900%, 01/01/15 (c) 10,000 6,114 Chicago, Midway Airport Project, Series C (MBIA) (RB) 5.500%, 01/01/14 1,300 1,466 Chicago, Park District, Parking Facilities Authority (ACA) (RB) 5.500%, 01/01/08 3,585 4,085 Chicago, Project & Refunding (AMBAC) (GO) 6.250%, 01/01/08 1,000 1,163 Chicago, Project & Refunding (FSA) (GO) 5.500%, 01/01/13 1,000 1,142 Chicago, Project & Refunding, Series A (FGIC) (GO) 5.250%, 01/01/11 5,000 5,641
47
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------------ Chicago, Single Family Mortgages, Series A, Callable 03/01/06 @ 103 (AMT) (FHLMC) (FNMA) (GNMA) (RB) 5.250%, 03/01/13 $ 90 $ 91 Cook County Community High School District #219, Zero Coupon Bond (FSA) (GO) 4.900%, 12/01/07 (c) 1,560 1,414 Cook County Community Unit School District #65, Evanston, Series A (FSA) (GO) 6.375%, 05/01/09 3,000 3,579 Cook County Community Unit School District #102, Zero Coupon Bond (FGIC) (GO) 5.200%, 12/01/13 (c) 2,440 1,600 Cook County Community Unit School District #401 Elmwood Park, Zero Coupon Bond (FSA) (GO) 5.800%, 12/01/11 (c) 3,625 2,672 Cook County High School District #200, Oak Park, Zero Coupon Bond (FSA) (GO) 4.900%, 12/01/06 (c) 2,265 2,135 Cook County School District #99 (FGIC) (GO) 8.500%, 12/01/04 1,000 1,084 Cook County School District #123, Oak Lawn, Capital Appreciation, Zero Coupon Bond (MBIA) (GO) 5.100%, 12/01/15 (c) 2,250 1,315 Cook County Township High School District #225, Northfield Township (GO) 5.000%, 12/01/15 (d) 1,405 1,569 Cook County, Escrowed to Maturity (MBIA) (GO) 7.250%, 11/01/07 (a) 2,000 2,265 Cook County, Series A (MBIA) (GO) 6.250%, 11/15/11 1,000 1,205 Du Page County Community High School District #94, West Chicago (FSA) (GO) 7.250%, 11/01/09 1,780 2,221 Granite Single Family Mortgage (RB) 7.750%, 10/01/11 820 1,008 Illinois Development Finance Authority, Midwestern University, Series B, Callable 05/15/11 @ 101 (RB) 5.750%, 05/15/16 350 374 Illinois State (AMBAC) (COP) (MLO) 6.000%, 07/01/06 1,000 1,119 Illinois State Development Finance Authority, Elgin School District, Zero Coupon Bond (RB) 5.210%, 01/01/18 (c) 2,750 1,401 Illinois State Development Finance Authority, Elmhurst Community School #205, Callable 01/01/11 @ 100 (FSA) (RB) 6.375%, 01/01/13 1,025 1,223 Illinois State Development Finance Authority, Waste Management Project (AMT) (RB) 5.850%, 12/01/07 1,000 1,063 Illinois State Educational Facilities Authority, Loyola University of Chicago, Series A, Escrowed to Maturity (RB) 7.000%, 07/01/07 (a) 1,000 1,161 Illinois State Educational Facilities Authority, The Art Institute of Chicago, Mandatory Put 03/01/06 @ 100 (RB) 4.700%, 03/01/30 4,500 4,774 Illinois State Health Facilities Authority (RB) 6.500%, 02/15/06 $ 1,130 $ 1,244 Illinois State Health Facilities Authority, Covenant Retirement Communities, Series A (RAAI) (RB) 3.875%, 12/01/08 1,000 1,053 4.350%, 12/01/10 1,605 1,685 Illinois State Health Facilities Authority, Evangelical, Escrowed to Maturity (RB) 6.750%, 04/15/12 (a) 1,320 1,617 Illinois State Health Facilities Authority, Mercy Hospital & Medical Center, Escrowed to Maturity, Callable 10/01/03 @ 100 (RB) 10.000%, 01/01/15 (a) 820 1,150 Illinois State Sales Tax (RB) 6.000%, 06/15/09 2,500 2,943 5.100%, 06/15/10 2,000 2,255 Illinois State, Callable 06/01/09 @ 101 (FGIC) (GO) 5.375%, 06/01/10 2,000 2,314 Illinois State, First Series, Callable 08/01/10 @ 100 (GO) 5.500%, 08/01/15 4,500 5,040 Kane County School District #129, Aurora West Side, Series A (GO) (MBIA) 6.500%, 02/01/07 1,000 1,149 Lake County Community Unit School District #50, Woodland (GO) (MBIA) 8.500%, 01/01/07 1,460 1,766 Lake County Community School District #50, Woodland, Series A, Callable 12/01/08 @ 100 (FGIC) (GO) 5.000%, 12/01/09 1,000 1,110 Lake County Community Unit School District #60, Waukegan, Series B (FSA) (GO) 6.000%, 12/01/07 2,785 3,226 7.500%, 12/01/08 3,640 4,533 Lake County School District #56, Gurnee (FGIC) (GO) 8.375%, 01/01/10 1,290 1,677 Madison & Jersey Counties Unit School District #11, Alton, Capital Appreciation, Zero Coupon Bond (FSA) (GO) 5.350%, 12/01/19 (c) 2,100 959 Metropolitan Pier & Exposition Authority, State Sales Tax, Series A, Zero Coupon Bond (FGIC) (RB) 5.000%, 06/15/09 (c) 35 30 Metropolitan Pier & Exposition Authority, State Sales Tax, Series A, Callable 06/15/06 @ 102 (AMBAC) (RB) 6.000%, 06/15/07 750 845 Metropolitan Pier & Exposition Authority, State Sales Tax, Series A, Callable 12/15/09 @ 101 (FGIC) (RB) 5.550%, 12/15/11 675 773 Metropolitan Pier & Exposition Authority, State Sales Tax, Series A, Escrowed to Maturity, Zero Coupon Bond (FGIC) (RB) 5.000%, 06/15/09 (a) (c) 1,465 1,237 Metropolitan Pier & Exposition Authority, State Sales Tax, Series A, Pre-refunded 06/15/06 @ 102 (AMBAC) (RB) 6.000%, 06/15/07 (b) 250 285
The accompanying notes are an integral part of the financial statements. 48
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------------ Metropolitan Pier & Exposition Authority, State Sales Tax, Zero Coupon Bond (FGIC) (MBIA) (RB) 5.200%, 06/15/17 (c) $ 1,000 $ 676 Morton Grove Residential Housing, Escrowed to Maturity (MBIA) (RB) 7.350%, 09/01/09 (a) (e) 5,570 6,984 Rockford School District #205 (FGIC) (GO) 5.000%, 02/01/14 500 554 Springfield Electric Revenue (MBIA) (RB) 6.000%, 03/01/06 1,050 1,162 St. Clair County, Callable 10/01/09 @ 102 (FGIC) (GO) 6.000%, 10/01/11 1,000 1,177 St. Clair County, Public Building, Series C (FGIC) (RB) 6.000%, 12/01/09 2,175 2,571 University of Illinois, Escrowed to Maturity (RB) 6.100%, 10/01/03 (a) 1,005 1,005 Will County School District #86, Zero Coupon Bond (FSA) (GO) 5.600%, 11/01/17 (c) 3,870 2,020 Will County School District #365, Zero Coupon Bond (FSA) (GO) 4.530%, 11/01/05 (c) 1,685 1,636 Winnebago & Boone Counties School District #205, Series C, Partially Escrowed to Maturity (FGIC) (GO) 6.000%, 02/01/08 (a) 5,065 5,854 Winnebago County School District #122, Harlem-Love Park, Zero Coupon Bond (FSA) (GO) 5.200%, 01/01/17 (c) 3,000 1,627 ------------- 128,573 ------------- INDIANA - 2.4% Crown Point Multi-School Building, First Mortgage (MBIA) (RB) 7.625%, 01/15/08 1,000 1,217 Evansville Vanderburgh, Public Leasing, Callable 01/15/12 @ 100 (MBIA) (RB) 5.750%, 07/15/18 1,000 1,115 Franklin Township Independent School Building Corporation (RB) 5.750%, 07/15/09 1,235 1,448 Gary Sanitation District, Special Tax District (GO) (RAAI) 3.750%, 02/01/11 1,260 1,254 Indiana State Educational Facilities Authority, St. Joseph's College Project (RB) 6.100%, 10/01/09 1,360 1,495 Indiana State Educational Facilities Authority, St. Joseph's College Project, Callable 10/01/09 @ 102 (RB) 6.600%, 10/01/14 1,410 1,513 Indiana State Housing Authority, Series B-1, Callable 07/01/05 @ 102 (RB) 6.150%, 07/01/17 700 710 Indiana Transportation Finance Authority, Escrowed to Maturity, Callable 06/01/11 @ 100 (RB) 5.750%, 06/01/12 (a) 180 210 Indiana Transportation Finance Authority, Series A (AMBAC) (RB) 5.750%, 06/01/12 $ 1,820 $ 2,127 Indiana University, Series K, Zero Coupon Bond (MBIA) (RB) 5.360%, 08/01/11 (c) 2,750 2,053 Indianapolis Industry Local Public Improvement Board, Series D (RB) 6.600%, 02/01/07 1,960 2,247 St. Joseph County Hospital, Callable 02/15/08 @ 101 (MBIA) (RB) 4.750%, 08/15/12 1,000 1,045 Zionsville Community Schools Building, First Mortgage Bonds, Callable 01/15/12 @ 100 (FGIC) (RB) (STAID) 5.750%, 07/15/15 775 879 ------------- 17,313 ------------- IOWA - 1.3% Iowa Higher Education Authority, Callable 10/01/12 @ 100 (ACA) (RB) 5.500%, 10/01/28 2,000 2,074 Iowa Higher Education Authority, Central College (RB) 5.450%, 10/01/26 1,000 1,040 Muscatine Electric, Escrowed to Maturity, Callable 01/01/04 @ 100 (RB) 9.700%, 01/01/13 (a) 2,140 2,893 Salix Pollution Control, Interstate Power Company, Mandatory Put 01/01/04 @ 100 (RB) 4.200%, 01/01/13 3,450 3,463 ------------- 9,470 ------------- KANSAS - 1.5% Butler County Public Building Authority (MBIA) (RB) 6.375%, 10/01/10 1,000 1,209 Hays Water & Sewer, Escrowed to Maturity, Callable 03/01/04 @ 100 (RB) 6.500%, 03/01/07 (a) 1,000 1,157 Johnson County Residual Housing, Escrowed to Maturity, Zero Coupon Bond, Callable 05/01/12 @ 100 (RB) 3.800%, 05/01/12 (a) (c) 7,500 5,351 Sedgwick & Shawnee Counties, Single Family Mortgages, Series A-2 (GNMA) (RB) 6.700%, 06/01/29 1,560 1,649 Sedgwick County School District #267 (AMBAC) (GO) 5.250%, 11/01/12 1,045 1,191 ------------- 10,557 ------------- KENTUCKY - 1.0% Kentucky State Economic Development Finance Authority, Scottsville Medical Center, Series A, Pre-refunded 11/01/04 @ 103 (RB) 9.000%, 11/01/24 (b) 2,215 2,459 Kentucky State Turnpike Authority, Escrowed to Maturity (RB) 7.200%, 07/01/09 (a) 1,240 1,445 Kentucky State Turnpike Authority, Escrowed to Maturity, Callable 10/01/03 @ 100 (RB) 6.000%, 07/01/11 (a) 815 934
49
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------------ Louisville Water, Escrowed to Maturity (RB) 6.000%, 11/15/07 (a) $ 1,250 $ 1,444 Louisville Water, Escrowed to Maturity, Callable 10/01/03 @ 101 (RB) 6.375%, 11/01/07 (a) 1,000 1,024 ------------- 7,306 ------------- LOUISIANA - 0.3% Louisiana Local Government Environmental Facilities, Community Development Authority, Callable 01/01/12 @ 101 (AMT) (RB) 6.650%, 01/01/25 870 902 Orleans Parish, Parishwide School District, Series A (FGIC) (GO) 7.375%, 09/01/07 1,145 1,377 ------------- 2,279 ------------- MAINE - 0.3% Maine Municipal Bond Bank, Series B (FSA) (GO) 5.750%, 11/01/10 2,000 2,349 ------------- MASSACHUSETTS - 4.0% Boston Industrial Development Financing Authority, Crosstown Center Project, Callable 09/01/12 @ 102 (AMT) (RB) 6.500%, 09/01/35 2,000 1,972 Massachusetts Bay Transportation Authority, General Transportation System Project, Series C (FGIC) (RB) 5.750%, 03/01/10 2,100 2,445 Massachusetts Bay Transportation Authority, Series A (RB) 6.250%, 03/01/12 1,875 2,258 Massachusetts State Commonwealth, Special Obligation, Series A (RB) 5.500%, 06/01/13 1,000 1,146 Massachusetts State Health & Educational Facilities Authority, Partners Healthcare System, Series A, Callable 07/01/07 @ 101 (MBIA) (RB) 5.100%, 07/01/10 3,000 3,263 Massachusetts State Port Authority (RB) 5.750%, 07/01/12 1,000 1,139 Massachusetts State Port Authority, Escrowed to Maturity, Callable 10/01/03 @ 100 (RB) 13.000%, 07/01/13 (a) 4,515 6,905 Massachusetts State, Multi-Family Housing, Escrowed to Maturity, Callable 10/01/03 @ 100 (FHA) (RB) 6.350%, 04/01/08 (a) 1,000 1,025 Massachusetts State, Series A, Callable 01/01/11 @ 100 (GO) 5.125%, 01/01/16 3,000 3,363 Massachusetts State, Series B, Pre-refunded 05/01/10 @ 100 (GO) 5.000%, 05/01/12 (b) 5,000 5,603 ------------- 29,119 ------------- MICHIGAN - 5.5% Chippewa Valley Schools, Callable 05/01/12 @ 100 (GO) (MQSBLF) 5.500%, 05/01/14 1,775 2,011 Constantine Public Schools, Callable 11/01/12 @ 100 (GO) (MQSBLF) 5.000%, 05/01/15 $ 1,050 $ 1,149 5.000%, 05/01/16 1,075 1,167 Detroit (AMT) (FSA) (GO) 5.750%, 04/01/09 1,255 1,432 Detroit Water Supply, Escrowed to Maturity, Callable 10/01/03 @ 101 (FGIC) (RB) 6.250%, 07/01/12 (a) 285 295 Gibraltar School District, Callable 11/01/12 @ 100 (GO) (MQSBLF) 5.500%, 05/01/15 1,175 1,338 Lakeshore Public Schools, Callable 05/01/11 @ 100 (GO) 5.000%, 05/01/12 1,260 1,390 Lakeview Public Schools, Callable 05/01/11 @ 100 (GO) 5.000%, 05/01/14 1,985 2,157 Lansing Community College, College Building & Site, Callable 05/01/13 @ 100 (GO) (MBIA) 5.000%, 05/01/15 1,000 1,099 Michigan State Hospital Finance Authority, Ascension Health Credit, Series B, Mandatory Put 11/15/05 @ 100 (RB) 5.200%, 11/15/33 3,000 3,237 Michigan State Hospital Finance Authority, Henry Ford Health Systems, Series A, Callable 03/01/13 @ 100 (RB) 5.500%, 03/01/15 3,500 3,744 Michigan State Hospital Finance Authority, Henry Ford Hospital, Escrowed to Maturity, Callable 10/01/03 @ 100 (RB) 9.000%, 05/01/08 (a) 4,500 5,471 Michigan State Housing Development Authority, Green Hill Project, Callable 07/15/04 @ 102 (FNMA) (RB) 5.125%, 07/15/08 1,980 2,050 Michigan State Strategic Fund, Dow-Chemical Project, Mandatory Put 06/01/06 @ 100 (RB) 3.800%, 06/01/14 (f) 2,200 2,257 Oakland University, Callable 05/15/05 @ 102 (MBIA) (RB) 5.600%, 05/15/10 1,000 1,089 Plainwell Community Schools, School Building & Site, Callable 11/01/12 @ 100 (GO) (MQSBLF) 5.500%, 05/01/15 1,000 1,139 Rochester Community School District, Series 1, Callable 05/01/10 @ 100 (FGIC) (GO) 5.375%, 05/01/11 2,000 2,255 Romulus Economic Development Corporation, Partnership Project, Escrowed to Maturity, Callable 10/01/03 @ 102 (RB) 7.000%, 11/01/15 (a) 1,300 1,662 Wayne Charter County Airport, Series A, Callable 12/01/08 @ 101 (AMT) (MBIA) (RB) 5.250%, 12/01/09 5,000 5,542 ------------- 40,484 -------------
The accompanying notes are an integral part of the financial statements. 50
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------------ MINNESOTA - 3.3% Hopkins Housing & Redevelopment Authority, Public Works & Fire Station, Series A, Callable 02/01/13 @ 100 (MBIA) (RB) 5.000%, 02/01/16 $ 1,000 $ 1,089 Minneapolis & St. Paul Metropolitan Airports Commission, Series B (AMT) (FGIC) (RB) 5.750%, 01/01/10 1,000 1,130 Minneapolis & St. Paul Metropolitan Airports Commission, Series B, Callable 01/01/08 @ 101 (AMBAC) (AMT) (RB) 5.375%, 01/01/10 3,000 3,256 Minneapolis Hospital & Rehabilitation, Escrowed to Maturity (RB) 10.000%, 06/01/13 (a) 1,035 1,418 Minnesota Agriculture & Economic Development Board, Health Care Systems, Series A, Callable 11/15/10 @ 101 (RB) 5.875%, 11/15/11 2,135 2,369 Monticello, Big Lake Community Hospital District, Health Care Facilities, Series C (RB) 5.250%, 12/01/11 1,940 1,996 Moorhead Independent School District #152, Callable 04/01/12 @ 100 (FGIC) (GO) (MSDCEP) 5.000%, 04/01/13 1,270 1,404 Robbinsdale Independent School District #281 (GO) (MSDCEP) 5.000%, 02/01/09 1,250 1,404 Robbinsdale Independent School District #281, Callable 02/01/09 @ 100 (GO) (MSDCEP) 5.250%, 02/01/12 1,435 1,620 South Washington County Independent School District #833, Series A, Callable 02/01/10 @ 100 (GO) (MSDCEP) 5.300%, 02/01/11 1,000 1,121 St. Paul Housing & Redevelopment Authority, Callable 08/01/06 @ 102.50 (AMBAC) (RB) 6.400%, 02/01/07 1,195 1,373 6.400%, 08/01/07 1,205 1,382 6.500%, 02/01/09 1,315 1,528 St. Paul Port Authority Hotel, Pre-refunded 08/01/08 @ 100 (RB) 8.050%, 08/01/21 (b) 2,335 2,935 ------------- 24,025 ------------- MISSOURI - 0.6% Missouri State Environmental Improvement & Energy Resources Authority, Amerenue Project, Series A (RB) (VRDO) 1.550%, 03/01/35 2,000 2,000 St. Louis Industrial Development Authority, Convention Center Project, Series A, Callable 12/15/10 @ 102 (AMT) (RB) 7.000%, 12/15/15 2,000 1,966 ------------- 3,966 ------------- NEBRASKA - 1.2% Buffalo County Hospital Authority #1, Good Samaritan Hospital Project, Escrowed to Maturity (RB) 6.375%, 11/01/03 (a) 30 30 Douglas County Hospital Authority #1, Immanuel Medical Center, Callable 09/01/07 @ 102 (AMBAC) (RB) 4.800%, 09/01/08 1,400 1,549 Nebraska Educational Finance Authority, Creighton University Project, Callable 01/01/06 @ 101 (AMBAC) (RB) 5.600%, 01/01/07 $ 2,500 $ 2,735 Nebraska Educational Telecommunication Commission, Leasing Project, Series 2000 (MLO) (RB) 6.000%, 02/01/06 1,275 1,402 Nebraska Investment Financial Authority, Great Plains Regional Medical Center (RAAI) (RB) 4.700%, 11/15/11 500 532 Nebraska Investment Financial Authority, Great Plains Regional Medical Center, Callable 05/15/12 @ 100 (RAAI) (RB) 4.800%, 11/15/12 500 531 4.900%, 11/15/13 600 636 Omaha Northwest Library Facilities, Callable 08/15/07 @ 102 (MLO) (RB) 5.250%, 08/15/12 975 1,087 ------------- 8,502 ------------- NEVADA - 1.5% Carson City, Carson-Tahoe Hospital Project (RB) 5.750%, 09/01/11 1,000 1,089 5.750%, 09/01/12 1,055 1,145 Clark County School District, Building & Renovation, Series B, Callable 06/15/07 @ 101 (FGIC) (GO) 5.750%, 06/15/08 1,000 1,151 Nevada State, Callable 06/01/08 @ 100 (GO) 5.250%, 06/01/11 3,000 3,351 Washoe County, Escrowed to Maturity, Callable 02/01/04 @ 100 (GO) 9.875%, 08/01/09 (a) 3,455 4,473 ------------- 11,209 ------------- NEW JERSEY - 1.2% New Jersey State Transportation Trust Fund Authority, Series A (RB) 5.500%, 06/15/08 2,000 2,280 New Jersey State Turnpike Authority, Escrowed to Maturity (RB) 6.750%, 01/01/09 (a) 820 905 New Jersey State Turnpike Authority, Series A (MBIA) (RB) 5.500%, 01/01/09 5,000 5,731 ------------- 8,916 ------------- NEW MEXICO - 1.6% Albuquerque Joint Water & Sewer Systems, Series A (RB) 5.250%, 07/01/09 2,200 2,509 Farmington, Pre-refunded 07/01/05 @ 100 (RB) 9.875%, 01/01/13 (b) 8,090 9,164 ------------- 11,673 ------------- NEW YORK - 3.3% Hempstead Town Industrial Development Agency, Callable 12/01/06 @ 102 (MBIA) (RB) 5.000%, 12/01/08 2,000 2,193 Long Island Power Authority, Series B (RB) 5.250%, 12/01/13 4,000 4,381 New York City Transitional Finance Authority, Series A, Callable 11/01/11 @ 100 (RB) 5.500%, 11/01/26 1,000 1,132
51
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------------ New York State Dormitory Authority, Mental Health Services Facilities, Callable 08/15/10 @ 100 (FSA) (RB) 5.750%, 02/15/11 $ 1,200 $ 1,383 New York State Dormitory Authority, State Personal Income Tax, Series A (FSA) (RB) 5.500%, 03/15/12 2,000 2,298 New York State Environmental Facilities, Pollution Control, Series D, Pre-refunded 11/15/04 @ 102 (RB) 6.400%, 05/15/06 (b) 530 572 New York State Environmental Facilities, Pollution Control, Series D-02, Callable 11/15/04 @ 102 (RB) 6.400%, 05/15/06 225 243 New York State Environmental Facilities, Pollution Control, Series D-02, Pre-refunded 11/15/04 @ 102 (RB) 6.400%, 05/15/06 (b) 495 535 New York, Series A, Callable 08/01/12 @ 100 (GO) 5.750%, 08/01/15 3,220 3,558 New York, Series C, Callable 03/15/12 @ 100 (GO) 5.500%, 03/15/14 3,000 3,264 New York, Series D (GO) 5.500%, 06/01/12 2,000 2,220 New York, Series G (GO) (XLCA) 5.500%, 08/01/12 2,000 2,287 ------------- 24,066 ------------- NORTH CAROLINA - 1.3% Mecklenburg County, Series A (GO) 4.000%, 02/01/13 2,000 2,083 North Carolina Capital Facilities, Finance Agency, Johnson & Wales University Project, Series A, Callable 04/01/13 @ 100 (RB) (XLCA) 5.000%, 04/01/14 1,290 1,421 North Carolina Eastern Power Agency, Series D (RB) 5.375%, 01/01/13 2,955 3,137 North Carolina Power Agency #1, Series A, Callable 01/01/13 @ 100 (FSA) (RB) 5.250%, 01/01/16 2,000 2,219 Winston-Salem, Solid Waste Management Project (RB) 4.000%, 04/01/13 965 998 ------------- 9,858 ------------- NORTH DAKOTA - 0.2% Fargo Health Systems, Meritcare Obligated Group, Series A (FSA) (RB) 5.000%, 06/01/09 715 796 North Dakota State Industrial Commission, Lignite Program, Series A (RB) 5.750%, 11/15/05 500 534 ------------- 1,330 ------------- OHIO - 1.6% Lorain County Hospital Facilities, Catholic Healthcare Partners, Series B, Callable 09/01/07 @ 102 (MBIA) (RB) 5.375%, 09/01/09 1,000 1,131 Ohio State Building Authority, Administration Building Fund Project, Series A, Callable 10/01/08 @ 101 (MLO) (RB) 5.250%, 10/01/09 3,000 3,392 Ohio State Building Authority, Adult Correctional Facilities Project, Series A (MBIA) (MLO) (RB) 5.500%, 10/01/04 $ 1,000 $ 1,044 Ohio State Water Development Authority, Escrowed to Maturity, Callable 12/01/03 @ 100 (RB) 9.375%, 12/01/10 (a) 2,625 3,212 Richland County Hospital Facilities, Series A (RB) 5.450%, 11/15/04 690 717 5.500%, 11/15/05 725 774 5.550%, 11/15/06 765 836 5.650%, 11/15/08 595 661 ------------- 11,767 ------------- OKLAHOMA - 2.9% Cherokee County Economic, Zero Coupon Bond, Escrowed to Maturity (AMBAC) (RB) 5.610%, 11/01/11 (a) (c) 3,340 2,483 Oklahoma City Industrial & Cultural Facilities, Oklahoma City Project, Callable 10/01/14 @ 101 (AMT) (RB) 5.750%, 01/01/23 1,430 1,357 Oklahoma County Housing Finance Authority, Series B, Zero Coupon Bond, Pre-refunded 03/01/06 @ 56.92 (RB) 5.740%, 07/01/12 (b) (c) 3,690 2,020 Oklahoma Housing Finance Agency, Series A-2, Callable 05/01/05 @ 100 (FNMA) (RB) 5.500%, 11/01/25 3,000 3,161 South Oklahoma City, Callable 10/01/03 @ 100, Pre-refunded 02/01/10 @ 100 (RB) 9.750%, 02/01/13 (b) 4,090 5,356 Tulsa County Home Finance Authority, Escrowed to Maturity (RB) 6.900%, 08/01/10 (a) 1,710 2,119 Tulsa County Independent School District #9 (GO) 5.750%, 06/01/04 2,000 2,063 Tulsa Educational Facilities Authority, Holland Hall School Project, Series B, Callable 12/01/08 @ 101 (RB) 4.600%, 12/01/09 1,195 1,289 Tulsa Metropolitan Utility Authority, Callable 09/01/05 @ 102 (RB) 5.600%, 09/01/06 1,000 1,096 ------------- 20,944 ------------- OREGON - 2.7% Clackamas County School District #7J, Lake Oswego, Callable 06/01/11 @ 100 (GO) 5.375%, 06/01/14 3,105 3,454 Lane County School District #19, Springfield, Pre-refunded 10/15/04 @ 101 (GO) (MBIA) 5.900%, 10/15/06 (b) 1,000 1,060 Lane County School District #52, Bethel (GO) (SBG) 5.500%, 06/15/09 1,000 1,155 Oregon State Department, Administrative Services, Series A (COP) (FSA) 5.500%, 11/01/13 1,275 1,475 Oregon State Department, Administrative Services, Series E, Callable 11/01/12 @ 100 (COP) (FSA) 5.000%, 11/01/14 2,170 2,384 Polk, Marion & Benton Counties, School District #13-J (FGIC) (GO) 5.500%, 12/01/04 1,015 1,068
The accompanying notes are an integral part of the financial statements. 52
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------------ Salem-Keizer School District #24-J, Callable 06/01/09 @ 100 (GO) (SBG) 5.250%, 06/01/12 $ 5,000 $ 5,547 Washington County Unified Sewer Agency, Series 1 (FGIC) (RB) 5.750%, 10/01/08 2,000 2,324 Washington County, Criminal Justice Facilities, Pre-refunded 12/01/04 @ 100 (GO) 5.625%, 12/01/05 (b) 900 948 ------------- 19,415 ------------- PENNSYLVANIA - 1.0% Berks County Authority, Phoebe Berks Village Income Project, Pre-refunded 05/15/06 @ 102 (RB) 7.700%, 05/15/22 (b) 1,860 2,184 Central Greene School District, Capital Appreciation, Escrowed to Maturity, Zero Coupon Bond, Callable 10/01/03 @ 63.986 (GO) (MBIA) (STAID) 4.690%, 12/01/07 (a) (c) 2,000 1,828 Montgomery County, Industrial Development Authority, PECO Energy Project, Series A, Mandatory Put 10/01/04 @ 100 (RB) 5.200%, 10/01/30 2,000 2,062 Philadelphia Hospitals Authority, Pre-refunded 07/01/05 @ 100 (RB) 9.875%, 07/01/10 (b) 1,150 1,322 ------------- 7,396 ------------- PUERTO RICO - 0.2% Puerto Rico Electric Power Authority, Series AA (MBIA) (RB) 6.000%, 07/01/06 1,000 1,123 ------------- SOUTH CAROLINA - 1.0% Lexington County Health Services District Inc., Lexington Medical Center, Callable 11/01/13 @ 100 (RB) 5.500%, 11/01/23 2,000 2,064 South Carolina Jobs Economic Development Authority, Palmetto Health Alliance, Series A (RB) 6.000%, 08/01/13 1,000 1,056 South Carolina Jobs Economic Development Authority, Palmetto Health Alliance, Series C (RB) 6.000%, 08/01/13 2,000 2,112 South Carolina State Public Service Authority, Series A (MBIA) (RB) 5.500%, 01/01/10 1,665 1,912 ------------- 7,144 ------------- SOUTH DAKOTA - 1.1% Deadwood (ACA) (COP) 5.500%, 11/01/07 800 889 5.600%, 11/01/08 845 949 South Dakota State Health & Educational Facilities Authority, Sioux Valley Hospital (RB) 5.250%, 11/01/08 900 996 South Dakota State Health & Educational Facilities Authority, Westhills Village Retirement (RB) 5.500%, 09/01/04 640 646 5.650%, 09/01/05 665 675 5.800%, 09/01/06 735 748 5.900%, 09/01/07 755 769 4.750%, 09/01/11 530 538 5.000%, 09/01/12 1,000 1,023 South Dakota State Health & Educational Facilities Authority, Westhills Village Retirement Community, Callable 09/01/12 @ 101 (RB) 5.000%, 09/01/13 $ 1,000 $ 1,024 ------------- 8,257 ------------- TENNESSEE - 1.6% Metropolitan Government Nashville & Davidson County, Escrowed to Maturity, Callable 10/01/03 @ 102 (RB) 6.400%, 04/01/11 (a) 1,030 1,254 Shelby County Health, Educational & Housing Facilities Board, Methodist Healthcare, Callable 09/01/12 @ 100 (RB) 6.000%, 09/01/16 1,500 1,641 Shelby County Health, Educational & Housing Facilities Board, St. Jude's Children's Research (RB) 5.000%, 07/01/09 500 544 Sullivan County Health, Educational & Housing Facilities, Wellmont Health Systems Project (RB) 6.250%, 09/01/11 1,465 1,634 6.250%, 09/01/12 1,085 1,206 Sullivan County Health, Educational & Housing Facilities, Wellmont Health Systems Project, Callable 09/01/12 @ 101 (RB) 6.500%, 09/01/13 2,215 2,495 Sullivan County Health, Educational & Housing Facilities, Wellmont Health Systems Project, Callable 09/01/13 @ 100 (RAAI) (RB) 5.000%, 09/01/16 3,000 3,153 ------------- 11,927 ------------- TEXAS - 10.0% Abilene Health Facilities Development, Sears Methodist Retirement, Series A (RB) 5.100%, 11/15/05 1,115 1,121 5.250%, 11/15/06 1,175 1,194 5.300%, 11/15/07 1,000 1,018 5.350%, 11/15/08 1,300 1,325 Amarillo Health Facilities, Sears Panhandle Retirement, Series B, Pre-refunded 08/15/06 @ 102 (RB) 7.750%, 08/15/18 (b) 3,000 3,589 Amarillo Independent School District (GO) (PSFG) 7.000%, 02/01/06 1,035 1,167 7.000%, 02/01/07 1,095 1,277 Austin, Callable 09/01/11 @ 100 (GO) 5.000%, 09/01/13 4,510 4,939 Bexar County, Zero Coupon Bond (GO) (MBIA) 3.780%, 06/15/06 (c) 1,000 954 Brazos River Authority, Electric Company Project, Series 1999-B, Mandatory Put 04/01/13 @ 100 (AMT) (RB) 6.750%, 09/01/34 2,000 2,166 Brazos River Authority, Electric Company Project, Series A, Mandatory Put 05/01/05 @ 100 (AMT) (RB) 3.000%, 05/01/29 (f) 1,000 1,001 Brazos River Authority, Electric Company Project, Series C, Mandatory Put 11/01/11 @ 100 (AMT) (RB) 5.750%, 05/01/36 (f) 2,000 2,078
53
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------------ Brazos River Harbor District, Dow Chemical, Series A-5, Mandatory Put 05/15/12 @ 100 (AMT) (RB) 5.700%, 05/15/33 $ 1,000 $ 1,064 Cypress-Fairbanks Independent School District, Callable 02/15/10 @ 100 (GO) (PSFG) 5.500%, 02/15/18 4,000 4,415 Frisco, Callable 02/05/11 @ 100 (FGIC) (GO) 5.000%, 02/15/18 1,125 1,191 5.000%, 02/15/19 1,675 1,760 Galveston County, Escrowed to Maturity, Callable 10/01/03 @ 100 (GO) (MBIA) 6.400%, 02/01/05 (a) 315 337 Grapevine Industrial Development, Air Cargo, Callable 01/01/12 @ 101 (AMT) (RB) 6.500%, 01/01/24 500 513 Grapevine-Colleyville Independent School District (GO) (PSFG) 8.250%, 06/15/07 1,440 1,761 Gregg County Health Facilities Development, Good Shepherd Medical Center, Series A (RB) 5.750%, 10/01/09 2,895 3,153 Houston Airport Systems (FSA) (RB) 5.250%, 07/01/11 2,735 3,089 Houston Airport Systems, Callable 07/01/12 @ 100 (FSA) (RB) 5.000%, 07/01/27 2,000 2,014 Houston Airport Systems, Escrowed to Maturity (RB) 8.200%, 07/01/05 (a) 430 465 Houston Housing Finance, Single Family Mortgages, Series A-1, Callable 12/01/06 @ 102 (RB) 8.000%, 06/01/14 70 70 Houston Water & Sewer System, Series B (AMBAC) (RB) 5.500%, 12/01/10 2,000 2,311 Irving Independent School District, Series A, Zero Coupon Bond (GO) (PSFG) 5.000%, 02/15/09 (c) 5,000 4,245 Jefferson County Health Facilities Development, Baptist Hospitals (AMBAC) (FHA) (RB) 4.400%, 08/15/09 1,000 1,078 Kaufman County, Callable 02/15/12 @ 100 (FSA) (GO) 5.000%, 02/15/17 1,000 1,069 Keller Independent School District, Callable 08/15/11 @ 100 (GO) (PSFG) 5.375%, 08/15/14 2,000 2,221 North Harris Montgomery Community College District, Callable 02/15/12 @ 100 (FGIC) (GO) 5.375%, 02/15/15 2,535 2,829 Nueces County Housing Finance, Dolphins Landing Apartments Project, Series A, Callable 07/01/10 @ 102 (RB) 6.750%, 07/01/20 1,910 1,915 Odessa Housing Finance, Escrowed to Maturity, Zero Coupon Bond, Callable 12/01/03 @ 51.337 (MBIA) (RB) 3.780%, 06/01/12 (a) (c) 1,465 1,042 Plano Independent School District, Callable 02/15/08 @ 100 (GO) (PSFG) 4.700%, 02/15/13 $ 1,000 $ 1,044 Port Houston Authority, Harris County, Series B, Callable 10/01/11 @ 100 (AMT) (FGIC) (GO) 5.500%, 10/01/12 2,405 2,676 Sam Rayburn Municipal Power Agency, Callable 10/01/03 @ 100, Partially Pre-refunded 09/01/09 @ 100 (MBIA) (RB) 6.000%, 09/01/10 (b) 1,420 1,654 San Antonio Electric & Gas, Series A, Callable 02/01/09 @ 101 (RB) 5.250%, 02/01/13 2,135 2,358 San Antonio Independent School District (GO) (PSFG) 7.000%, 08/15/07 1,000 1,185 Texas State, Callable 10/01/08 @ 100 (GO) 5.000%, 10/01/15 1,000 1,076 Texas State Public Finance Authority, Parks & Wildlife Projects, Callable 02/01/08 @ 100 (AMBAC) (RB) 6.000%, 08/01/08 1,000 1,150 Texas State Turnpike Authority, Dallas North Highway Tolls (FGIC) (RB) 6.500%, 01/01/08 2,345 2,751 Tyler Health Facilities, Mother Frances Hospital (RB) 5.250%, 07/01/12 1,000 1,040 ------------- 73,305 ------------- UTAH - 0.7% Ashley Valley Water & Sewer, Escrowed to Maturity, Callable 01/01/04 @ 102 (AMBAC) (GO) 10.900%, 01/01/10 (a) 1,500 1,995 Salt Lake County, Municipal Building Authority, Series A (MLO) (RB) 6.000%, 10/01/03 525 525 South Jordan, Sales Tax, Callable 08/15/11 @ 100 (AMBAC) (RB) 5.500%, 08/15/18 1,000 1,116 Utah State Housing Finance Agency, Single Family Mortgages (FHA) (RB) (VA) 5.650%, 07/01/06 70 75 Utah State Housing Finance Agency, Single Family Mortgages, Issue F-1, Callable 07/01/05 @ 102 (FHA) (RB) (VA) 6.300%, 01/01/18 230 240 Utah State Housing Finance Agency, Single Family Mortgages, Series III, Class R, Callable 07/01/06 @ 102 (FHA) (RB) (VA) 5.950%, 07/01/08 1,035 1,120 ------------- 5,071 ------------- VIRGINIA - 0.7% Peninsula Port Authority, Partially Pre-refunded 08/01/04 @ 102 and 08/01/08 @ 100 (RB) 7.000%, 08/01/17 (b) 2,000 2,132 Riverside Regional Jail Authority, Callable 07/01/05 @ 102 (MBIA) (RB) 5.700%, 07/01/08 905 992 Riverside Regional Jail Authority, Pre-refunded 07/01/05 @ 102 (MBIA) (RB) 5.700%, 07/01/08 (b) 1,095 1,203
The accompanying notes are an integral part of the financial statements. 54
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------------ Virginia State Peninsula Regional Jail Authority, Callable 10/01/05 @ 101 (MBIA) (RB) 5.300%, 10/01/09 $ 1,000 $ 1,092 ------------- 5,419 ------------- WASHINGTON - 4.3% Clark County School District #37, Vancouver (FSA) (GO) 5.250%, 12/01/14 1,515 1,725 Conservation & Renewable Energy Systems (RB) 5.650%, 10/01/03 700 700 Energy Northwest, Washington Wind Project, Series A, Callable 01/01/07 @ 103 (RB) 5.100%, 07/01/09 1,850 1,968 5.200%, 07/01/10 1,950 2,047 Island County School District #206, South Widbey, Partially Pre-refunded 12/01/04 @ 100 (AMBAC) (GO) 5.750%, 12/01/06 (b) 700 736 King County School District #415, Kent, Pre-refunded 06/01/04 @ 100 (AMBAC) (GO) 6.450%, 06/01/06 (b) 920 953 King County, Series B, Callable 12/01/07 @ 102 (GO) 5.850%, 12/01/13 2,035 2,397 King County, Series B, Pre-refunded 12/01/07 @ 102 (GO) 5.850%, 12/01/13 (b) 965 1,137 Pierce County School District #320, Sumner (GO) 6.000%, 12/01/06 1,000 1,054 Port Seattle Passenger Facility Charge, Series B (AMBAC) (AMT) (RB) 5.000%, 12/01/07 1,000 1,106 Snohomish County, Callable 12/01/11 @ 100 (GO) (MBIA) 5.375%, 12/01/19 5,000 5,456 Snohomish County Housing Authority, Callable 04/01/06 @ 100 (RB) 6.300%, 04/01/16 1,035 1,067 Spokane County School District #356, Central Valley, Series B, Zero Coupon Bond (FGIC) (GO) 5.030%, 12/01/14 (c) 5,690 3,530 Tacoma Electric Systems, Pre-refunded 01/01/04 @ 100 (AMBAC) (RB) 6.000%, 01/01/06 (b) 185 187 Washington State Housing Finance, Hearthstone Project, Callable 01/01/05 @ 102 (RB) 6.000%, 01/01/10 810 872 Washington State Public Power Supply System, Nuclear Project #2, Series A, Callable 07/01/06 @ 102 (AMBAC) (RB) 5.700%, 07/01/11 1,000 1,126 Washington State, Series B & AT-7 (GO) 6.250%, 06/01/10 1,000 1,193 Washington State, Series C (GO) 5.500%, 07/01/14 2,275 2,633 Washington State, Series S-5, Zero Coupon Bond (FGIC) (GO) 5.830%, 01/01/16 (c) 3,000 1,735 ------------- 31,622 ------------- WEST VIRGINIA - 0.3% Brooke Pleasants & Tyler Wetzel Counties, Single Family Mortgage, Escrowed to Maturity (RB) 7.400%, 08/15/10 (a) $ 1,675 $ 2,135 ------------- WISCONSIN - 1.7% Door County, Series A, Callable 09/01/11 @ 100 (FGIC) (GO) 5.125%, 09/01/16 1,720 1,877 Howard-Suamico School District (FSA) (GO) 6.000%, 03/01/08 1,000 1,159 Milwaukee (GO) 6.000%, 02/01/10 1,240 1,454 Wisconsin State Clean Water, Series 1, Pre-refunded 06/01/05 @ 100 (RB) 5.800%, 06/01/15 (b) 2,915 3,139 Wisconsin State Health & Educational Facilities Authority, Aurora Health Care, Series A, Callable 02/15/09 @ 101 (RB) 5.500%, 02/15/20 1,500 1,416 Wisconsin State Health & Educational Facilities Authority, Marshfield Clinic, Series B (RB) 6.250%, 02/15/09 500 553 Wisconsin State Health & Educational Facilities Authority, Marshfield Clinic, Series B, Callable 02/15/12 @ 100 (RB) 5.500%, 02/15/13 850 890 Wisconsin State Health & Educational Facilities Authority, Monroe Clinic (RB) 4.450%, 02/15/06 925 969 Wisconsin State Health & Educational Facilities Authority, Wheaton Franciscan Services (RB) 5.750%, 08/15/11 645 722 ------------- 12,179 ------------- WYOMING - 0.3% Lincoln County, Pacificorp Project, Mandatory Put 06/03/12 @ 100 (AMT) (RB) 4.125%, 11/01/25 (f) 2,250 2,192 ------------- CONVERTIBLE BONDS - 0.5% Chicago, Series A, Convertible, Zero Coupon Bond (GO) (MBIA) 3.489%, 01/01/16 (c) 2,000 1,507 Illinois Sports Facilities Authority, Convertible, Zero Coupon Bond (AMBAC) (RB) 4.750%, 06/15/13 (c) 1,405 1,111 Illinois Sports Facilities Authority, Convertible, Zero Coupon Bond, Callable 06/15/15 @ 101 (AMBAC) (RB) 5.100%, 06/15/16 (c) 1,620 1,283 ------------- 3,901 ------------- TOTAL MUNICIPAL BONDS (Cost $667,819) 726,680 -------------
55
DESCRIPTION SHARES VALUE (000) - ------------------------------------------------------------------------------------------------------ RELATED PARTY MONEY MARKET FUND - 0.1% First American Tax Free Obligations Fund, Cl Y (g) 610,826 $ 611 ------------- TOTAL RELATED PARTY MONEY MARKET FUND (Cost $611) 611 ------------- TOTAL INVESTMENTS - 99.5% (Cost $668,430) 727,291 ------------- OTHER ASSETS AND LIABILITIES, NET - 0.5% 3,934 ------------- TOTAL NET ASSETS - 100.0% $ 731,225 -------------
(a) Escrowed to Maturity issues are typically backed by U.S. Government obligations. If callable, these bonds may still be subject to call at the call date and price indicated. (b) Pre-refunded issues are typically backed by U.S. Government obligations. These bonds mature at the call date and price indicated. (c) The rate shown is the effective yield at the time of purchase. (d) Security purchased on a when-issued basis. On September 30, 2003, the total cost of investments purchased on a when-issued basis was $1,595,917. See note 2 in Notes to Financial Statements. (e) Security sold within the terms of a private placement memorandum, exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other "qualified institutional buyers." These securities have been determined to be liquid under the guidelines established by the Funds' board of directors. As of September 30, 2003, the value of these investments was $11,777,679 or 1.6% of total net assets. (f) Variable Rate Security - The rate shown is the rate in effect as of September 30, 2003. (g) 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. ABAG - Association of Bay Area Governments ACA - American Capital Access AMBAC - American Municipal Bond Assurance Corporation AMT - Alternative Minimum Tax. As of September 30, 2003, the aggregate market value of securities subject to the AMT was $41,123,190, which represents 5.6% of net assets. Cl - Class COP - Certificate of Participation FGIC - Financial Guaranty Insurance Corporation FHA - Federal Housing Authority FHLMC - Federal Home Loan Mortgage Corporation FNMA - Federal National Mortgage Association FSA - Financial Security Assurance GNMA - Government National Mortgage Association GO - General Obligation MBIA - Municipal Bond Insurance Association MLO - Municipal Lease Obligation MQSBLF - Michigan Qualified School Board Loan Fund Program MSDCEP - Minnesota School District Credit Enhancement Program PSFG - Permanent School Fund Guarantee RAAI - Radian Asset Assurance Inc. RB - Revenue Bond SBG - School Board Guaranty STAID - State Aid Withholding VA - Veterans Administration VRDO - Variable Rate Demand Obligation. Floating or variable rate obligation maturing in more than one year. The interest rate, which is based on specific, or an index of, market interest rates, is subject to change periodically and is the effective rate on September 30, 2003. This instrument may also have a demand feature which allows the recovery of principal at any time, or at specified intervals not exceeding one year, on up to 30 days' notice. Maturity date shown represents final maturity. XLCA - XL Capital Assurance Inc. The accompanying notes are an integral part of the financial statements. 56 MINNESOTA INTERMEDIATE TAX FREE FUND
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------------ MUNICIPAL BONDS - 98.7% REVENUE BONDS - 51.2% BUILDING - 0.2% Minnesota State Retirement Systems Building, Callable 06/01/10 @ 100 5.450%, 06/01/12 $ 550 $ 621 ------------- ECONOMIC DEVELOPMENT - 1.6% Minnesota State Agricultural & Economic Development Board, Small Business Development, Series B (AMT) 6.500%, 08/01/08 1,335 1,470 Minnesota State Agricultural & Economic Development Board, Small Business Development, Series B, Pre-refunded 08/01/04 @ 100 (AMT) 5.500%, 08/01/10 (a) 1,525 1,575 Minnesota State Agricultural & Economic Development Board, Small Business Development, Series C (AMT) 6.625%, 08/01/08 1,210 1,339 ------------- 4,384 ------------- EDUCATION - 4.1% Minneapolis, The Blake School Project, Callable 09/01/11 @ 100 5.000%, 09/01/12 445 478 Minnesota State Higher Education Facilities Authority, Augsburg College, Series 4 4.500%, 10/01/06 505 538 4.850%, 10/01/09 520 563 Minnesota State Higher Education Facilities Authority, Augsburg College, Series 4, Callable 10/01/09 @ 100 5.000%, 10/01/11 500 526 5.000%, 10/01/12 500 521 Minnesota State Higher Education Facilities Authority, Carleton College, Series 3-L1, Callable 05/01/06 @ 100 5.750%, 11/01/12 1,375 1,515 Minnesota State Higher Education Facilities Authority, Minneapolis College of Art and Design 5.000%, 05/01/11 250 263 Minnesota State Higher Education Facilities Authority, St. Benedict College, Callable 03/01/07 @ 100 4.875%, 03/01/08 1,000 1,061 5.100%, 03/01/11 2,885 2,970 Minnesota State Higher Education Facilities Authority, St. Catherine College, Series 5-N1, Callable 10/01/12 @ 100 5.250%, 10/01/22 1,500 1,536 Minnesota State Higher Education Facilities Authority, St. John's University, Series 5 (MBIA) 5.000%, 10/01/11 255 286 Minnesota State Higher Education Facilities Authority, St. John's University, Series 5, Callable 10/01/11 @ 100 (MBIA) 5.000%, 10/01/12 480 517 Minnesota State Higher Education Facilities Authority, University of St. Thomas, Series 4, Callable 04/01/08 @ 100 5.250%, 04/01/12 385 408 ------------- 11,182 ------------- HEALTHCARE - 11.8% Cuyuna Range Hospital District, Series A, Callable 06/01/07 @ 102 5.500%, 06/01/10 $ 435 $ 432 5.650%, 06/01/12 940 933 Duluth Economic Development Authority, The Duluth Clinic, Escrowed to Maturity, Callable 10/01/03 @ 102 (AMBAC) 6.100%, 11/01/04 (b) 250 264 Glencoe Health Care Facilities, Callable 04/01/11 @ 101 7.400%, 04/01/21 1,000 1,022 Hastings Health Care Facility, Regina Medical Center, Callable 09/15/08 @ 100 (ACA) 5.000%, 09/15/13 500 516 Minneapolis & St. Paul Housing & Redevelopment Authority, Healthspan, Series A, Callable 11/15/03 @ 102 (AMBAC) 5.000%, 11/15/13 1,000 1,024 Minneapolis Healthcare System, Allina Health System, Series A, Callable 11/15/12 @ 100 6.000%, 11/15/23 2,500 2,672 5.750%, 11/15/32 1,300 1,349 Minneapolis Healthcare System, Fairview Health Services, Series A 5.000%, 05/15/12 605 636 Minneapolis Healthcare System, Fairview Health Services, Series B (MBIA) 4.500%, 05/15/11 1,170 1,247 Minnesota Agricultural & Economic Development Board, Benedictine Health, Series A (MBIA) 5.000%, 02/15/10 3,815 4,209 Minnesota Agricultural & Economic Development Board, Evangelical Lutheran Project 5.500%, 02/01/11 280 299 5.500%, 02/01/12 200 213 Minnesota Agricultural & Economic Development Board, Evangelical Lutheran Project, Callable 02/01/12 @ 101 5.500%, 02/01/15 730 767 Minnesota Agricultural & Economic Development Board, Fairview Hospital Project, Series A, Callable 11/15/07 @ 102 (MBIA) 5.400%, 11/15/08 1,000 1,131 5.500%, 11/15/17 1,500 1,665 5.750%, 11/15/26 500 540 Monticello, Big Lake Community Hospital, Series C, Callable 12/01/12 @ 100 5.750%, 12/01/15 2,320 2,373 New Hope Housing & Health Care Facilities, Masonic Home North Ridge 5.000%, 03/01/04 330 331 5.100%, 03/01/05 550 558 5.200%, 03/01/06 645 656 5.300%, 03/01/07 685 697 New Hope Housing & Health Care Facilities, Masonic Home North Ridge, Callable 03/01/09 @ 102 5.500%, 03/01/10 500 502 Plymouth Health Facilities, Westhealth Project, Series A, Callable 06/01/04 @ 102 (FSA) 6.200%, 06/01/11 1,360 1,431 Rochester, St. Mary's Hospital, Escrowed to Maturity, Callable 10/01/03 @ 100 5.750%, 10/01/07 (b) 1,360 1,471
57
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------------ St. Cloud Health Care (FSA) 5.500%, 05/01/07 $ 500 $ 560 5.500%, 05/01/08 1,450 1,644 St. Louis Park Health Care Facilities, Callable 10/01/03 @ 102 (AMBAC) 4.600%, 07/01/05 2,545 2,602 ------------- 31,744 ------------- HOUSING - 2.9% Coon Rapids Multifamily Housing, Woodland North Apartments, Callable 12/01/03 @ 100 (FHA) 5.625%, 12/01/09 300 300 Dakota County Housing & Redevelopment Authority, Single Family Mortgages, Callable 04/01/04 @ 102 (AMT) (FNMA) 6.250%, 10/01/04 100 101 Dakota County Housing & Redevelopment Authority, Single Family Mortgages, Callable 10/01/07 @ 101.50 (AMT) (FNMA) (GNMA) 5.125%, 10/01/20 556 560 Dakota County Housing & Redevelopment Authority, South St. Paul, Series A, Callable 10/01/03 @ 100 (FHA) (GNMA) (VA) 7.250%, 03/01/06 5 5 Minneapolis Mortgage, Zero Coupon Bond, Callable 10/01/05 @ 100 7.103%, 10/01/12 (c) 2,950 1,614 Minnesota State Housing Finance Agency, Rental Housing, Series D (MBIA) 5.150%, 08/01/04 620 637 Minnesota State Housing Finance Agency, Rental Housing, Series D, Callable 02/01/05 @ 102 (MBIA) 5.450%, 08/01/07 1,950 2,048 Minnesota State Housing Finance Agency, Single Family Mortgages, Series B, Callable 07/01/09 @ 100 (AMT) 5.550%, 07/01/24 645 663 Moorhead Economic Development Authority, Eventide Senior Housing, Series B, Callable 06/01/04 @ 102 5.750%, 06/01/16 1,360 1,363 South St. Paul Housing & Redevelopment Authority, Single Family Mortgages, Callable 10/01/03 @ 102 (FNMA) 5.100%, 09/01/07 350 358 St. Louis Park Housing & Redevelopment Authority, Single Family Mortgages (GNMA) 6.500%, 10/20/03 4 4 Vadnais Heights, Single Family Mortgages 5.500%, 11/01/04 120 121 6.000%, 11/01/09 65 65 ------------- 7,839 ------------- LEASE REVENUE - 1.5% St. Paul Port Authority, Office Building, Callable 12/01/12 @ 100 (MLO) 5.000%, 12/01/19 2,415 2,568 Washington County Housing & Redevelopment Authority, Jail Facility, Callable 10/01/03 @ 100 (MBIA) (MLO) 5.400%, 02/01/08 1,580 1,586 ------------- 4,154 ------------- MISCELLANEOUS - 0.2% Childrens Trust Fund, Puerto Rico 4.000%, 05/15/12 $ 500 $ 448 ------------- POLLUTION CONTROL - 2.0% Minnesota State Public Facilities Authority, Water Pollution Control, Callable 03/01/07 @ 100 5.000%, 03/01/09 2,000 2,203 Minnesota State Public Facilities Authority, Water Pollution Control, Series A, Callable 03/01/08 @ 100 4.500%, 03/01/10 2,100 2,240 Minnesota State Public Facilities Authority, Water Pollution Control, Series A, Callable 03/01/10 @ 100 4.000%, 03/01/11 1,000 1,047 ------------- 5,490 ------------- RECREATIONAL FACILITY AUTHORITY - 1.3% St. Paul Port Authority, Hotel Facilities, Radisson Kellogg Project, Series 2 6.700%, 08/01/07 1,800 1,764 St. Paul Port Authority, Hotel Facilities, Radisson Kellogg Project, Series 2, Callable 08/01/08 @ 103 7.375%, 08/01/10 1,685 1,667 ------------- 3,431 ------------- TAX REVENUE - 3.7% Bloomington Port Authority, Mall of America Project, Series A (FSA) 4.900%, 02/01/09 1,000 1,118 Minneapolis Community Development Agency, Series G-3, Callable 12/01/11 @ 100 5.350%, 12/01/21 1,000 1,038 St. Paul Housing & Redevelopment Authority, Callable 08/01/06 @ 102.50 (AMBAC) 6.450%, 02/01/08 840 975 St. Paul Housing & Redevelopment Authority, Downtown & Seventh Place Project, Escrowed to Maturity, Callable 10/01/03 @ 101 (AMBAC) 5.200%, 09/01/04 (b) 3,000 3,030 5.350%, 09/01/07 (b) 1,500 1,515 St. Paul Port Authority, Energy Park, Tax Increment (FSA) 5.000%, 02/01/08 2,100 2,330 ------------- 10,006 ------------- TRANSPORTATION - 8.0% Minneapolis & St. Paul Metropolitan Airports Commission, Series A, Callable 01/01/13 @ 100 (MBIA) 5.000%, 01/01/20 2,200 2,311 Minneapolis & St. Paul Metropolitan Airports Commission, Series B (AMBAC) (AMT) 5.500%, 01/01/07 2,140 2,365 Minneapolis & St. Paul Metropolitan Airports Commission, Series B (AMT) (FGIC) 5.750%, 01/01/10 2,880 3,255 Minneapolis & St. Paul Metropolitan Airports Commission, Series B, Callable 01/01/08 @ 101 (AMBAC) (AMT) 5.500%, 01/01/09 2,500 2,765 Minneapolis & St. Paul Metropolitan Airports Commission, Series B, Callable 01/01/09 @ 101 (AMT) (FGIC) 5.625%, 01/01/14 1,000 1,081
The accompanying notes are an integral part of the financial statements. 58
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------------ Minneapolis & St. Paul Metropolitan Airports Commission, Series C, Callable 01/01/11 @ 100 (FGIC) 5.125%, 01/01/20 $ 3,095 $ 3,279 Minnesota Public Facilities Authority Tranportation, Callable 03/01/10 @ 100 5.000%, 03/01/12 970 1,058 Puerto Rico Commonwealth, Highway Transportation Authority, Series AA 5.000%, 07/01/07 1,500 1,653 Puerto Rico Commonwealth, Highway Transportation Authority, Series H, Mandatory Put 07/01/10 @ 100, Callable 07/01/10 @ 100 (AMBAC) 5.000%, 07/01/35 (d) 2,000 2,235 Puerto Rico Commonwealth, Highway Transportation Authority, Series X (MBIA) 5.500%, 07/01/13 1,250 1,458 ------------- 21,460 ------------- UTILITIES - 13.9% Anoka County Resource Recovery, Northern States Power 4.350%, 12/01/04 150 152 4.400%, 12/01/05 2,000 2,031 4.500%, 12/01/07 300 302 Chaska Electric, Series A 5.500%, 10/01/06 610 672 5.550%, 10/01/07 645 722 5.600%, 10/01/08 680 770 5.650%, 10/01/09 720 819 5.650%, 10/01/10 760 857 Chaska Electric, Series A, Callable 10/01/10 @ 100 5.400%, 10/01/11 805 882 5.500%, 10/01/12 845 922 Minnesota State Public Facilities Authority, Drinking Water, Series B, Callable 03/01/09 @ 100 5.125%, 03/01/19 2,000 2,152 Northern Minnesota Municipal Power Agency, Electric System (FSA) 5.500%, 01/01/07 2,000 2,240 5.500%, 01/01/08 2,090 2,378 Rochester Electric Utility, Callable 12/01/10 @ 100 5.000%, 12/01/16 1,150 1,222 Southern Minnesota Municipal Power Agency, Series A (AMBAC) 5.250%, 01/01/14 3,415 3,869 Southern Minnesota Municipal Power Agency, Series A, Callable 01/01/09 @ 101 (AMBAC) 5.000%, 01/01/11 1,270 1,393 Southern Minnesota Municipal Power Agency, Series A, Escrowed to Maturity, Callable 10/01/03 @ 102 (FGIC) 5.000%, 01/01/06 (b) 995 1,076 Southern Minnesota Municipal Power Agency, Series A, Zero Coupon Bond (MBIA) 5.257%, 01/01/20 (c) 3,500 1,666 5.275%, 01/01/21 (c) 5,000 2,236 Southern Minnesota Municipal Power Agency, Series B, Callable 01/01/04 @ 102 (MBIA) 4.850%, 01/01/07 1,875 1,930 Western Minnesota Municipal Power Agency, Series A, Callable 01/01/06 @ 102 (AMBAC) 5.500%, 01/01/11 5,000 5,542 5.500%, 01/01/13 2,000 2,214 Western Minnesota Municipal Power Agency, Series A, Callable 01/01/11 @ 100 (AMBAC) 5.500%, 01/01/12 $ 1,360 $ 1,541 ------------- 37,588 ------------- TOTAL REVENUE BONDS 138,347 ------------- GENERAL OBLIGATIONS - 44.3% Anoka County Capital Improvements, Series B 4.550%, 01/01/11 1,960 2,134 Anoka-Hennepin Independent School District #11, Callable 02/01/11 @ 100 (MSDCEP) 5.000%, 02/01/14 2,000 2,171 Anoka-Hennepin Independent School District #11, Series A (MSDCEP) 5.000%, 02/01/09 1,375 1,545 Anoka-Hennepin Independent School District #11, Series A, Callable 02/01/10 @ 100 (MSDCEP) 5.300%, 02/01/12 1,000 1,110 5.375%, 02/01/13 600 669 Anoka-Hennepin Independent School District #11, Series A, Callable 02/01/11 @ 100 (MSDCEP) 5.000%, 02/01/12 2,845 3,136 Becker Tax Increment, Series D, Callable 08/01/04 @ 100 (AMT) (MBIA) 6.000%, 08/01/07 3,955 4,069 Bloomington Independent School District #271, Series B, Callable 02/01/10 @ 100 (MSDCEP) 5.250%, 02/01/11 1,000 1,118 Burnsville Independent School District #191, Series A (MSDCEP) 5.000%, 02/01/08 300 336 Burnsville Independent School District #191, Series A, Callable 02/01/08 @ 100 (MSDCEP) 5.000%, 02/01/09 1,225 1,349 Centennial Independent School District #12, Series A, Callable 02/01/12 @ 100 (FSA) (MSDCEP) 5.000%, 02/01/14 1,040 1,139 Chaska Independent School District #112, Series A (MSDCEP) 4.800%, 02/01/10 1,120 1,244 Dakota County Capital Improvements, Series C 4.850%, 02/01/10 1,000 1,113 Duluth Independent School District #709, Callable 02/01/09 @ 100 (FSA) (MSDCEP) 5.000%, 02/01/16 635 683 Eden Prairie Water & Sewer, Series A, Zero Coupon Bond 4.459%, 12/01/06 (c) 2,090 1,977 Elk River Independent School District #728, Series A, Callable 02/01/11 @ 100 (MBIA) (MSDCEP) 5.000%, 02/01/18 1,000 1,063 Faribault Independent School District #656, Callable 06/01/08 @ 100 (MSDCEP) 4.750%, 06/01/15 1,100 1,144 Forest Lake Independent School District #831, Series A, Callable 02/01/08 @ 100 (MSDCEP) 5.000%, 02/01/09 1,115 1,228 Fridley Independent School District #14, Callable 02/01/05 @ 100 (FSA) (MSDCEP) 5.350%, 02/01/26 5,000 5,174 Hastings Independent School District #200, Series A, Callable 02/01/08 @ 100 (MSDCEP) 5.000%, 02/01/11 1,095 1,198
59
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------------ Lakeville Independent School District #194, Callable 02/01/09 @ 100 (MSDCEP) 5.000%, 02/01/16 $ 2,000 $ 2,145 Lakeville Independent School District #194, Series A, Callable 02/01/08 @ 100 (MSDCEP) 5.125%, 02/01/22 1,000 1,039 Lakeville Independent School District #194, Series A, Callable 02/01/13 @ 100 (FGIC) (MSDCEP) 5.000%, 02/01/22 2,435 2,531 Marshall Independent School District #413, Series A (FSA) (MSDCEP) 4.000%, 02/01/11 785 827 Minneapolis & St. Paul Metropolitan Council, Waste Water Treatment, Series A, Callable 03/01/11 @ 100 5.000%, 03/01/13 1,890 2,118 Minneapolis School District #1 (MSDCEP) 4.500%, 02/01/08 1,450 1,593 Minneapolis School District #1, Callable 02/01/06 @ 100 (MSDCEP) 5.000%, 02/01/07 1,025 1,102 5.000%, 02/01/07 1,000 1,075 Minneapolis, Callable 12/01/11 @ 100 5.000%, 12/01/12 3,600 4,006 Minneapolis, Series B, Callable 09/01/05 @ 100 5.050%, 03/01/06 6,000 6,425 Minnesota State, Callable 08/01/07 @ 100 4.800%, 08/01/11 2,010 2,178 4.850%, 08/01/12 4,420 4,768 Moorhead Independent School District #152 (MSDCEP) 5.000%, 04/01/12 1,220 1,361 Moorhead Independent School District #152, Callable 04/01/12 @ 100 (FGIC) (MSDCEP) 5.000%, 04/01/15 3,450 3,764 5.000%, 04/01/16 2,510 2,718 Mounds View Independent School District #621, Series A (MSDCEP) 5.250%, 02/01/10 1,230 1,398 Mounds View Independent School District #621, Series A, Callable 02/01/11 @ 100 (MSDCEP) 5.250%, 02/01/12 1,000 1,118 5.350%, 02/01/16 1,000 1,106 Mounds View Independent School District #621, Series A, Callable 02/01/12 @ 100 (MBIA) (MSDCEP) 5.000%, 02/01/18 2,340 2,494 5.000%, 02/01/19 2,565 2,715 Northfield Independent School District #659, Callable 02/01/11 @ 100 (MSDCEP) 4.600%, 02/01/13 1,100 1,179 5.000%, 02/01/15 1,295 1,402 Pequot Lakes Independent School District #186, Callable 02/01/12 @ 100 (FGIC) (MSDCEP) 5.125%, 02/01/18 500 538 Perham, Callable 05/01/11 @ 100 (AMT) 5.850%, 05/01/15 1,205 1,272 Pipestone-Jasper Independent School District #2689, Callable 03/01/09 @ 100 (FGIC) (MSDCEP) 5.400%, 03/01/13 1,095 1,228 Puerto Rico Commonwealth (MBIA) 6.000%, 07/01/14 1,605 1,954 Puerto Rico Commonwealth, Series A (XLCA) 5.500%, 07/01/17 1,000 1,162 Puerto Rico Commonwealth, Series C, Mandatory Put 07/01/08 @ 100 5.000%, 07/01/18 (d) $ 1,500 $ 1,649 Robbinsdale Independent School District #281 (MSDCEP) 5.000%, 02/01/08 1,000 1,119 Robbinsdale Independent School District #281, Callable 02/01/09 @ 100 (MBIA) (MSDCEP) 5.000%, 02/01/16 1,000 1,076 Robbinsdale Independent School District #281, Callable 02/01/12 @ 100 (FSA) (MSDCEP) 5.000%, 02/01/19 1,160 1,228 5.000%, 02/01/20 1,215 1,277 Rochester Independent School District #535, Series A, Callable 02/01/11 @ 100 (MSDCEP) 5.000%, 02/01/15 1,595 1,727 Rosemount Independent School District #196, Series A, Crossover Refunded 06/01/04 @ 100 (MSDCEP) 5.625%, 06/01/07 (e) 1,400 1,442 Sauk Rapids Independent School District #47, Series B, Zero Coupon Bond, Callable 02/01/11 @ 89.37 (FSA) (MSDCEP) 5.700%, 02/01/13 (c) 1,055 703 Sauk Rapids Independent School District #47, Series B, Zero Coupon Bond, Callable 02/01/11 @ 94.63 (FSA) 5.753%, 02/01/12 (c) 1,790 1,275 Savage, Series A (FGIC) 5.200%, 02/01/05 1,000 1,054 Savage, Series A, Callable 02/01/06 @ 100 (FGIC) 5.350%, 02/01/07 1,000 1,083 5.500%, 02/01/08 1,000 1,092 South Washington County, Independent School District #833, Series A (MSDCEP) 5.500%, 02/01/09 500 574 South Washington County, Independent School District #833, Series B, Callable 02/01/12 @ 100 (FSA) (MSDCEP) 5.000%, 02/01/15 1,030 1,122 St. Louis Park Independent School District #283, Callable 02/01/09 @ 100 (MSDCEP) 5.250%, 02/01/10 1,500 1,675 5.600%, 02/01/15 725 812 St. Michael Independent School District #885, Callable 02/01/12 @ 100 (FSA) (MSDCEP) 5.000%, 02/01/14 1,690 1,850 5.000%, 02/01/17 1,000 1,074 St. Paul, Series A, Callable 03/01/09 @ 100 5.000%, 03/01/10 1,180 1,305 St. Paul Independent School District #625, Series B (FGIC) (MSDCEP) 4.000%, 02/01/14 320 330 St. Paul Independent School District #625, Series C (FGIC) (MSDCEP) 4.000%, 02/01/14 410 424 Stillwater Independent School District #834, Callable 02/01/09 @ 100 (MSDCEP) 4.750%, 02/01/11 2,140 2,304 Washington County, Raymie Johnson Apartments, Series C, Callable 01/01/04 @ 100 (FGIC) 6.000%, 01/01/10 1,340 1,356 West St. Paul Independent School District #197, Zero Coupon Bond (MBIA) (MSDCEP) 5.896%, 02/01/05 (c) 2,000 1,967
The accompanying notes are an integral part of the financial statements. 60
DESCRIPTION PAR (000)/SHARES VALUE (000) - ------------------------------------------------------------------------------------------------------ Willmar Independent School District #347, Series A, Callable 02/01/06 @ 100 (MSDCEP) 5.150%, 02/01/09 $ 1,160 $ 1,256 ------------- TOTAL GENERAL OBLIGATIONS 119,590 ------------- CERTIFICATES OF PARTICIPATION - 3.2% Eden Prairie Housing & Redevelopment Authority, Series A, Callable 12/01/10 @ 100 (MLO) 5.000%, 12/01/11 255 283 Hennepin County (MLO) 4.650%, 11/15/08 1,000 1,113 Hennepin County, Callable 11/15/08 @ 100 (MLO) 5.375%, 11/15/09 2,280 2,578 Minneapolis Special School District #1, Series A, Pre-refunded 02/01/06 @ 100 (MBIA) (MLO) 5.900%, 02/01/11 (a) 2,150 2,377 St. Paul Independent School District #625, Series E, Callable 02/01/11 @ 100 (MBIA) (MLO) (MSDCEP) 4.200%, 02/01/15 500 513 Stearns County Housing & Redevelopment Authority, Series A, Callable 02/01/08 @ 100 (FSA) (MLO) 4.950%, 02/01/09 1,540 1,682 ------------- TOTAL CERTIFICATES OF PARTICIPATION 8,546 ------------- TOTAL MUNICIPAL BONDS (Cost $248,810) 266,483 ------------- MONEY MARKET FUND - 0.3% Federated Minnesota Municipal Cash Trust 942,512 943 ------------- TOTAL MONEY MARKET FUND (Cost $943) 943 ------------- TOTAL INVESTMENTS - 99.0% (Cost $249,753) 267,426 ------------- OTHER ASSETS AND LIABILITIES, NET - 1.0% 2,576 ------------- TOTAL NET ASSETS - 100.0% $ 270,002 -------------
(a) Pre-refunded issues are typically backed by U.S. Government obligations. These bonds mature at the call date and price indicated. (b) Escrowed to Maturity issues are typically backed by U.S. Government obligations. If callable, these bonds may still be subject to call at the call date and price indicated. (c) The rate shown is the effective yield at the time of purchase. (d) Variable Rate Security - The rate shown is the rate in effect as of September 30, 2003. (e) Crossover Refunded securities are backed by the credit of the refunding issuer. These bonds mature at the call date and price indicated. ACA - American Capital Access AMBAC - American Municipal Bond Assurance Corporation AMT - Alternative Minimum Tax. As of September 30, 2003, the aggregate market value of securities subject to the AMT was $20,514,268, which represents 7.6% of net assets. FGIC - Financial Guaranty Insurance Corporation FHA - Federal Housing Authority FNMA - Federal National Mortgage Association FSA - Financial Security Assurance GNMA - Government National Mortgage Association MBIA - Municipal Bond Insurance Association MLO - Municipal Lease Obligation MSDCEP - Minnesota School District Credit Enhancement Program VA - Veterans Administration XLCA - XL Capital Assurance Inc.
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------------ MUNICIPAL BONDS - 92.5% REVENUE BONDS - 69.1% ECONOMIC DEVELOPMENT - 1.9% Minnesota Agricultural & Economic Development Board, Small Business Development, Series B, Callable 08/01/08 @ 102 (AMT) 7.250%, 08/01/20 $ 1,000 $ 1,059 Minnesota Agricultural & Economic Development Board, Small Business Development, Series C, Callable 08/01/08 @ 102 (AMT) 7.250%, 08/01/20 1,385 1,356 Minnesota Agricultural & Economic Development Board, Small Business Development, Series D, Callable 08/01/08 @ 102 (AMT) 7.250%, 08/01/20 1,120 1,136 ------------- 3,551 ------------- EDUCATION - 8.7% Golden Valley, The Breck School, Callable 10/01/09 @ 100 5.750%, 10/01/14 1,000 1,093 Maplewood Education Facilities, Mounds Park Academy Project, Callable 10/30/03 @ 102 7.000%, 09/01/23 1,200 1,230 Minneapolis Gateway Project, Series A, Callable 12/01/07 @ 100 5.250%, 12/01/17 1,000 1,099 Minneapolis, The Blake School Project, Callable 09/01/11 @ 100 5.450%, 09/01/11 2,000 2,104 Minnesota State Higher Education Facilities Authority, Augsburg College, Series 4-F1, Callable 05/01/06 @ 102 6.250%, 05/01/23 1,500 1,570 Minnesota State Higher Education Facilities Authority, Carleton College, Callable 11/01/07 @ 100 5.400%, 11/01/15 1,500 1,652 Minnesota State Higher Education Facilities Authority, Carleton College, Series 3-L1, Callable 05/01/06 @ 100 5.750%, 11/01/12 1,050 1,157 Minnesota State Higher Education Facilities Authority, College of Art & Design, Series 5-D, Callable 05/01/10 @ 100 6.625%, 05/01/20 1,000 1,083 Minnesota State Higher Education Facilities Authority, College of St. Benedict, Series 3-W, Callable 03/01/04 @ 100 6.200%, 03/01/14 460 463 6.375%, 03/01/20 140 141 Minnesota State Higher Education Facilities Authority, College of St. Benedict, Series 3-W, Pre-refunded 03/01/04 @ 100 6.200%, 03/01/14 (a) 655 669 Minnesota State Higher Education Facilities Authority, Macalester College, Series 5-Q (VRDO) 1.100%, 03/01/33 2,785 2,785 Minnesota State Higher Education Facilities Authority, University of St. Thomas, Series 4-A1, Callable 10/01/06 @ 100 5.625%, 10/01/21 500 516
61
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------------ Minnesota State Higher Education Facilities Authority, Vermilion Community College, Callable 01/01/04 @ 100 5.750%, 01/01/13 $ 625 $ 640 ------------- 16,202 ------------- HEALTHCARE - 20.2% Bemidji Hospital Facilities, North Country Health Services, Callable 09/01/06 @ 102 5.625%, 09/01/15 1,600 1,678 Bemidji Hospital Facilities, North Country Health Services, Callable 09/01/12 @ 100 (RAAI) 5.000%, 09/01/24 500 508 Chisago Health Facilities Authority, Callable 07/01/05 @ 102 7.300%, 07/01/25 400 417 Cuyuna Range Hospital District, Series A, Callable 06/01/07 @ 102 6.000%, 06/01/29 3,000 2,853 Fergus Falls Health Care Facilities Authority, Lake Region Hospital, Long Term Care Facilities Project, Callable 12/01/05 @ 102 6.500%, 12/01/25 1,000 1,042 Fergus Falls Health Care Facilities Authority, Series A, Callable 11/01/04 @ 102 7.000%, 11/01/19 1,000 982 Glencoe Health Care Services Facilities Project, Callable 04/01/11 @ 101 7.500%, 04/01/31 1,000 1,022 Glencoe Hospital Board, Pre-refunded 08/01/04 @ 102 6.750%, 04/01/16 (a) 1,100 1,172 Golden Valley, Covenant Retirement Communities, Series A, Callable 12/01/09 @ 101 5.500%, 12/01/29 1,750 1,752 Marshall Minnesota Medical Center, OBG Weiner Memorial Medical Center Project, Series A, Callable 11/01/13 @ 100 5.250%, 11/01/16 305 316 5.850%, 11/01/23 875 900 Minneapolis & St. Paul Housing & Redevelopment Authority, Group Health Care Plan Project, Callable 10/01/03 @ 102 6.900%, 10/15/22 4,000 4,052 Minneapolis & St. Paul Housing & Redevelopment Authority, Series A, Callable 08/15/05 @ 102 (FSA) 5.600%, 08/15/12 250 271 Minneapolis Healthcare System, Allina Health System, Series A, Callable 11/15/12 @ 100 6.000%, 11/15/23 1,500 1,603 5.750%, 11/15/32 2,400 2,491 Minnesota Agricultural & Economic Development Board, Benedictine Health, Series A, Callable 02/15/10 @ 101 (MBIA) 5.250%, 02/15/15 2,000 2,175 Minnesota Agricultural & Economic Development Board, Fairview Hospital Project, Series A, Callable 11/15/07 @ 102 (MBIA) 5.500%, 11/15/11 500 565 5.500%, 11/15/17 1,000 1,110 Minnesota Agricultural & Economic Development Board, Health Care System, Series A, Callable 11/15/10 @ 101 6.375%, 11/15/29 4,000 4,309 Monticello, Big Lake Community Hospital, Series A 4.700%, 12/01/03 $ 125 $ 125 Monticello, Big Lake Community Hospital, Series A, Callable 12/01/09 @ 100 5.750%, 12/01/19 1,000 1,002 Monticello, Big Lake Community Hospital, Series C, Callable 12/01/12 @ 100 6.200%, 12/01/22 1,000 1,027 Moorhead Economic Development Authority, Series B, Callable 06/01/04 @ 102 6.000%, 06/01/29 1,900 1,887 Olmstead County, Hiawatha Homes Project, Callable 10/01/03 @ 102 6.500%, 07/01/16 170 162 St. Cloud Health Care, St. Cloud Hospital Obligation Group, Series A, Callable 05/01/10 @ 101 (FSA) 5.750%, 05/01/26 2,500 2,695 St. Paul Housing & Redevelopment Authority, Callable 05/15/09 @ 100 5.250%, 05/15/18 500 506 Waconia Minnesota Health Care Facilities, Ridgeview Medical Center Project, Series A, Callable 01/01/10 @ 100 (RAAI) 6.125%, 01/01/29 765 848 ------------- 37,470 ------------- HOUSING - 14.2% Austin Housing & Redevelopment Authority, Series A, Callable 01/01/06 @ 102 7.250%, 01/01/26 500 504 Brooklyn Center Multifamily Housing, Callable 11/20/12 @ 100 (AMT) (GNMA) 5.400%, 05/20/43 1,000 1,013 Coon Rapids Multifamily Housing, Margaret Place, Callable 11/01/07 @ 102 6.250%, 05/01/18 500 469 Coon Rapids Multifamily Housing, Woodland North Apartments, Callable 12/01/03 @ 100 (FHA) 5.625%, 12/01/09 2,635 2,637 Dakota County Community Development Agency, Multifamily Housing, Ebenezer Ridges Project, Callable 04/20/11 @ 102 (GNMA) 5.900%, 04/20/42 2,000 2,113 Dakota County Housing & Redevelopment Authority, Series A, Callable 10/01/03 @ 100 (GNMA) 8.100%, 09/01/12 5 5 Eden Prairie Multifamily Housing, Lincoln Park Project, Series A-1, Callable 12/20/10 @ 103.50 (GNMA) 6.400%, 12/20/20 990 1,059 Eden Prairie Multifamily Housing, Parkway Apartments Project, Series A, Callable 02/20/07 @ 104 5.700%, 08/20/22 1,000 1,050 Hopkins Elderly Housing, Series A, Callable 11/20/07 @ 102 (GNMA) 5.600%, 11/20/17 500 524 Hopkins Multifamily Housing, Renaissance Project, Callable 04/01/07 @ 102 6.250%, 04/01/15 500 528 Maplewood, Carefree Cottages Project, Callable 11/01/10 @ 100 (AMT) 7.200%, 11/01/32 2,000 2,100
The accompanying notes are an integral part of the financial statements. 62
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------------ Minnesota State Housing Finance Agency, Residential Housing, Series B, Callable 07/01/11 @ 100 (AMT) 5.650%, 07/01/33 $ 2,890 $ 2,988 Minnesota State Housing Finance Agency, Residential Housing, Series F, Callable 07/01/11 @ 100 (AMT) 5.400%, 07/01/30 3,210 3,274 Minnesota State Housing Finance Agency, Series A, Callable 08/01/11 @ 100 3.850%, 02/01/13 1,455 1,451 Minnesota State Housing Finance Agency, Single Family Mortgage, Series C, Callable 07/01/09 @ 100 (AMT) 6.100%, 07/01/30 875 907 Roseville Housing Facilities Authority, Pre-refunded 10/01/03 @ 102 7.125%, 10/01/13 (a) 2,000 2,040 St. Anthony Housing & Redevelopment Authority, Callable 05/20/06 @ 102 (FHA) (GNMA) 6.250%, 11/20/25 1,500 1,670 St. Louis Park, Multifamily Housing, Callable 11/01/08 @ 102 (FHA) (GNMA) 5.250%, 11/01/20 500 515 St. Louis Park, Multifamily Housing, Callable 12/01/05 @ 102 (FHA) 6.250%, 12/01/28 500 518 White Bear Lake, Lake Square Housing, Series A, Callable 02/01/07 @ 102 (FHA) 6.000%, 08/01/20 1,020 1,068 ------------- 26,433 ------------- IMPROVEMENTS - 4.2% Minnesota State Retirement Systems Building, Callable 06/01/10 @ 100 5.875%, 06/01/27 7,000 7,792 ------------- INDUSTRIAL DEVELOPMENT - 0.7% Little Canada Commercial Development, Callable 10/01/03 @ 102 (MLO) 7.100%, 04/01/13 1,340 1,346 ------------- LEASE REVENUE - 1.5% Edina Housing & Redevelopment Authority, Callable 02/01/12 @ 100 5.250%, 02/01/21 10 10 New Brighton Economic Development Authority, Public Safety Facility, Leasing Project, Series A, Callable 02/01/10 @ 100 4.900%, 02/01/15 850 884 5.000%, 02/01/16 895 930 5.100%, 02/01/17 900 937 ------------- 2,761 ------------- RECREATIONAL FACILITY AUTHORITY - 1.1% St. Paul Port Authority, Radisson Kellogg Project, Series 2, Callable 08/01/08 @ 103 7.375%, 08/01/29 2,000 2,036 ------------- TAX REVENUE - 2.2% Duluth Economic Development Authority 8.000%, 08/01/08 235 253 Minneapolis Community Development, Series A, Zero Coupon Bond (MBIA) 7.125%, 09/01/04 (b) 500 495 Minneapolis Community Development, Series G-3, Callable 12/01/11 @ 100 5.450%, 12/01/31 $ 3,250 $ 3,352 ------------- 4,100 ------------- TRANSPORTATION - 4.1% Minneapolis & St. Paul Metropolitan Airports Commission, Series A, Callable 01/01/13 @ 100 (MBIA) 5.000%, 01/01/20 2,215 2,327 Minneapolis & St. Paul Metropolitan Airports Commission, Callable 01/01/11 @ 100 (AMT) (FGIC) 5.250%, 01/01/21 2,000 2,056 Minneapolis & St. Paul Metropolitan Airports Commission, Series A, Callable 01/01/10 @ 101 (FGIC) 5.750%, 01/01/32 3,000 3,271 ------------- 7,654 ------------- UTILITIES - 10.3% Chaska Electric, Series A, Callable 10/01/10 @ 100 6.100%, 10/01/30 5,000 5,281 Southern Minnesota Municipal Power Agency, Power Supply Systems, Series A (AMBAC) 5.250%, 01/01/16 2,360 2,675 Southern Minnesota Municipal Power Agency, Series A, Zero Coupon Bond (MBIA) 6.650%, 01/01/19 (b) 4,000 2,023 6.700%, 01/01/24 (b) 5,000 1,843 5.800%, 01/01/25 (b) 2,000 697 5.600%, 01/01/26 (b) 8,000 2,637 5.151%, 01/01/27 (b) 3,000 941 Western Minnesota Municipal Power Agency, Callable 01/01/11 @ 100 (AMBAC) 5.500%, 01/01/14 1,545 1,726 5.500%, 01/01/15 550 614 Western Minnesota Municipal Power Agency, Escrowed to Maturity (MBIA) 9.750%, 01/01/16 (c) 410 639 ------------- 19,076 ------------- TOTAL REVENUE BONDS 128,421 ------------- GENERAL OBLIGATIONS - 23.1% Anoka-Hennepin Independent School District #11, Series A, Callable 02/01/10 @ 100 (MSDCEP) 5.750%, 02/01/17 1,000 1,130 Becker Independent School District #726, Series A, Callable 02/01/10 @ 100 (FSA) (MSDCEP) 6.000%, 02/01/21 1,000 1,146 Burnsville Independent School District #191, Series A, Callable 02/01/06 @ 100 (MSDCEP) 4.875%, 02/01/13 1,450 1,560 Chaska Independent School District #112, Series A, Callable 02/01/09 @ 100 (FSA) (MSDCEP) 5.700%, 02/01/18 1,000 1,129 Chaska Independent School District #112, Series B, Crossover Refunded 02/01/06 @ 100 (MSDCEP) 5.875%, 02/01/11 (d) 1,000 1,100 6.000%, 02/01/15 (d) 525 579 6.000%, 02/01/16 (d) 5,525 6,094 Columbia Heights Independent School District #13, Crossover Refunded 02/01/07 @ 100 (MSDCEP) 5.250%, 02/01/15 (d) 1,000 1,079
63
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------------ Delano Independent School District #879, Series A, Callable 02/01/11 @ 100 (FSA) (MSDCEP) 5.875%, 02/01/25 $ 1,000 $ 1,113 Hennepin County, Series A, Callable 12/01/10 @ 100 4.250%, 12/01/12 1,000 1,051 Hopkins Independent School District #270, Series B, Callable 02/01/11 @ 100 (MSDCEP) 4.125%, 02/01/12 2,200 2,301 Lakeville Independent School District #194, Series B, Zero Coupon Bond, Callable 02/01/13 @ 68.77 (FGIC) (MSDCEP) 5.420%, 02/01/20 (b) 5,530 2,438 Minneapolis Sports Arena, Callable 04/01/08 @ 100 5.100%, 04/01/13 500 549 5.100%, 10/01/13 250 276 Minneapolis Sports Arena, Series B, Callable 09/01/05 @ 100 5.200%, 03/01/13 400 429 Minnesota State 4.000%, 08/01/11 10,000 10,559 North St. Paul Independent School District #622, Series B, Callable 05/01/06 @ 100 (MSDCEP) 5.850%, 05/01/17 500 545 Northfield Independent School District #659, Callable 02/01/11 @ 100 5.000%, 02/01/16 1,015 1,095 Perham, Disposal System, Callable 05/01/11 @ 100 (AMT) 6.000%, 05/01/22 1,500 1,553 Sauk Rapids Independent School District #47, Series A, Callable 02/01/11 @ 100 (MBIA) 5.750%, 02/01/23 2,000 2,219 South Washington County Independent School District #833, Callable 06/01/05 @ 100 (MLO) 5.850%, 06/01/15 500 535 St. Louis Park Independent School District #283, Callable 02/01/09 @ 100 (MSDCEP) 5.700%, 02/01/17 2,000 2,255 Wayzata Independent School District #284, Series A, Callable 02/01/07 @ 100 5.500%, 02/01/17 2,000 2,175 ------------- TOTAL GENERAL OBLIGATIONS 42,910 ------------- CERTIFICATES OF PARTICIPATION - 0.3% South Washington County Independent School District #833, Series A, Callable 12/01/06 @ 100 (MLO) 5.250%, 12/01/14 500 517 ------------- TOTAL CERTIFICATES OF PARTICIPATION 517 ------------- TOTAL MUNICIPAL BONDS (Cost $161,565) 171,848 ------------- DESCRIPTION SHARES VALUE (000) - ------------------------------------------------------------------------------------------------------ MONEY MARKET FUND - 1.7% Federated Minnesota Municipal Cash Trust 3,184,834 $ 3,185 ------------- TOTAL MONEY MARKET FUND (Cost $3,185) 3,185 ------------- TOTAL INVESTMENTS - 94.2% (Cost $164,750) 175,033 ------------- OTHER ASSETS AND LIABILITIES, NET - 5.8% 10,692 ------------- TOTAL NET ASSETS - 100.0% $ 185,725 -------------
(a) Pre-refunded issues are typically backed by U.S. Government obligations. These bonds mature at the call date and price indicated. (b) The rate shown is the effective yield at the time of purchase. (c) Escrowed to Maturity issues are typically backed by U.S. Government obligations. If callable, these bonds may still be subject to call at the call date and price indicated. (d) Crossover Refunded securities are backed by the credit of the refunding issuer. These bonds mature at the call date and price indicated. AMBAC - American Municipal Bond Assurance Corporation AMT - Alternative Minimum Tax. As of September 30, 2003, the aggregate market value of securities subject to the AMT was $17,422,868, which represents 9.4% of net assets. FGIC - Financial Guaranty Insurance Corporation FHA - Federal Housing Authority FSA - Financial Security Assurance GNMA - Government National Mortgage Association MBIA - Municipal Bond Insurance Association MLO - Municipal Lease Obligation MSDCEP - Minnesota School District Credit Enhancement Program RAAI - Radian Asset Assurance Inc. VRDO - Variable Rate Demand Obligation. Floating or variable rate obligation maturing in more than one year. The interest rate, which is based on specific, or an index of, market interest rates, is subject to change periodically and is the effective rate on September 30, 2003. This instrument may also have a demand feature which allows the recovery of principal at any time, or at specified intervals not exceeding one year, on up to 30 days' notice. Maturity date shown represents final maturity. The accompanying notes are an integral part of the financial statements. 64 MISSOURI TAX FREE FUND
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------------ MUNICIPAL BONDS - 99.0% REVENUE BONDS - 74.6% BUILDING - 9.7% Clay County, Public Building Authority, Callable 05/15/08 @ 100 5.125%, 05/15/14 $ 3,280 $ 3,574 Missouri State Board of Public Buildings, State Office Building Special Obligation, Series A, Callable 05/01/11 @ 100 5.000%, 05/01/17 1,000 1,075 Missouri State Board of Public Buildings, State Office Building Special Obligation, Series A, Callable 05/01/11 @ 100 (MBIA) 5.000%, 05/01/23 2,000 2,055 5.000%, 05/01/24 5,130 5,244 5.125%, 05/01/26 5,000 5,141 Puerto Rico Public Buildings Authority, Public Education and Health Facilities, Series B, Callable 07/01/07 @ 101.50 (AMBAC) (COMGTY) 5.000%, 07/01/27 1,000 1,018 Puerto Rico Public Buildings Authority, Public Education and Health Facilities, Series M, Pre-refunded 07/01/05 @ 100 (COMGTY) 5.500%, 07/01/21 (a) 825 887 ------------- 18,994 ------------- EDUCATION - 11.0% Kansas City School District Building, Capital Improvement Project, Callable 02/01/04 @ 102 (FGIC) 5.000%, 02/01/14 2,230 2,305 Kansas City School District Building, Elementary Improvement Project, Series D, Callable 02/01/04 @ 102 (FGIC) 5.000%, 02/01/14 1,000 1,034 Missouri State Health & Educational Facilities Authority, University of Missouri-Columbia Arena Project, Callable 11/01/11 @ 100 5.000%, 11/01/19 2,540 2,684 Missouri State Health & Educational Facilities Authority, Washington University, Series A, Callable 02/15/13 @ 100 5.000%, 02/15/33 1,000 1,016 Missouri State Health & Educational Facilities Authority, Washington University, Series A, Callable 06/15/11 @ 100 5.125%, 06/15/41 2,150 2,191 Missouri Western State College, Callable 10/01/03 @ 102 (MBIA) 5.400%, 10/01/16 1,000 1,023 University of Missouri, Callable 11/01/03 @ 101 5.500%, 11/01/23 2,000 2,025 University of Missouri, Pre-refunded 11/01/07 @ 101 5.500%, 11/01/21 (a) 3,000 3,459 5.800%, 11/01/27 (a) 5,000 5,824 ------------- 21,561 ------------- HEALTHCARE - 16.6% Cape Girardeau County Authority, Southeast Missouri Hospital Association, Callable 06/01/12 @ 100 5.625%, 06/01/22 1,500 1,548 Missouri State Health & Educational Facilities Authority, Barnes-Jewish Inc., Series A 4.750%, 05/15/05 100 105 Missouri State Health & Educational Facilities Authority, BJC Health Systems, Callable 05/15/08 @ 101 5.000%, 05/15/28 $ 3,105 $ 3,091 Missouri State Health & Educational Facilities Authority, BJC Health Systems, Series A, Callable 05/15/04 @ 102, Escrowed to Maturity 6.200%, 05/15/07 (b) 235 247 Missouri State Health & Educational Facilities Authority, BJC Health Systems, Series A, Escrowed to Maturity 6.750%, 05/15/12 (b) 3,310 4,111 Missouri State Health & Educational Facilities Authority, Freeman Hospital Project, Series A, Callable 02/15/04 @ 102 (FSA) 5.375%, 02/15/14 1,000 1,034 Missouri State Health & Educational Facilities Authority, SSM Health Care System, Series A, Callable 06/01/08 @ 101 (MBIA) 5.000%, 06/01/09 1,000 1,108 5.000%, 06/01/12 2,000 2,137 5.000%, 06/01/18 3,895 4,054 Missouri State Health & Educational Facilities Authority, St. Luke's Health System, Callable 11/15/03 @ 102 (MBIA) 5.100%, 11/15/13 2,000 2,043 North Kansas City Hospital, Callable 11/15/08 @ 101 (AMBAC) 5.000%, 11/15/13 700 747 5.000%, 11/15/28 2,000 2,025 North Kansas City Hospital, Series A, Callable 11/15/13 @ 100 (FSA) 5.000%, 11/15/21 250 260 5.000%, 11/15/22 200 207 St. Louis County Industrial Development Authority, Ranken-Jordan Project, Series A, Callable 11/15/13 @ 100 6.625%, 11/15/35 500 496 University Health Facilities, University of Missouri Health System, Series A, Callable 11/01/06 @ 102 (AMBAC) 5.600%, 11/01/26 5,000 5,304 University Health Facilities, University of Missouri Health System, Series A, Callable 11/01/08 @ 100 (AMBAC) 5.000%, 11/01/09 1,000 1,104 University of Missouri Health Systems, Series A, Callable 11/01/08 @ 100 (AMBAC) 5.125%, 11/01/28 3,000 3,025 ------------- 32,646 ------------- HOUSING - 0.9% Missouri State Community Development Agency, Callable 10/01/03 @ 100 (FHA) 6.100%, 01/01/04 115 115 6.100%, 07/01/04 115 115 6.200%, 01/01/05 60 60 University City Industrial Development Authority, Multifamily Housing, Series A, Callable 12/20/05 @ 102 5.950%, 12/20/25 1,400 1,444 ------------- 1,734 -------------
65
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------------ INDUSTRIAL DEVELOPMENT - 0.5% Sugar Creek, Lafarge North America, Series A, Callable 06/01/13 @ 101 (AMT) 5.650%, 06/01/37 $ 1,000 $ 973 ------------- LEASE REVENUE - 1.5% Boone County, Callable 08/01/12 @ 100 5.050%, 08/01/20 1,200 1,223 Missouri State Financial Board Infrastructure Facilities, Series A, Callable 12/01/12 @ 100 5.000%, 12/01/17 1,000 1,027 5.375%, 12/01/22 750 766 ------------- 3,016 ------------- POLLUTION CONTROL - 16.2% Missouri State Environmental Improvement & Energy Resources Authority, Water Pollution Control, Associated Electric Co-Op, Thomas Hill, Callable 12/01/06 @ 101 5.250%, 12/01/09 1,000 1,120 Missouri State Environmental Improvement & Energy Resources Authority, Water Pollution Control, Drinking Water, Callable 01/01/07 @ 101 5.000%, 01/01/08 500 550 Missouri State Environmental Improvement & Energy Resources Authority, Water Pollution Control, Series A, Drinking Water, Callable 07/01/08 @ 101 5.000%, 01/01/19 2,200 2,315 Missouri State Environmental Improvement & Energy Resources Authority, Water Pollution Control, Series B, Drinking Water, Callable 01/01/09 @ 101 5.250%, 01/01/15 2,180 2,406 Missouri State Environmental Improvement & Energy Resources Authority, Water Pollution Control, Series B, Drinking Water, Callable 01/01/13 @ 100 5.500%, 07/01/14 2,000 2,292 5.500%, 07/01/18 1,400 1,578 Missouri State Environmental Improvement & Energy Resources Authority, Water Pollution Control, Series D, Drinking Water, Pre-refunded 01/01/06 @ 101 5.875%, 01/01/15 (a) 725 805 Missouri State Environmental Improvement & Energy Resources Authority, Water Pollution Control, Series E, Drinking Water, Pre-refunded 07/01/06 @ 101 5.625%, 07/01/16 (a) 915 1,028 Missouri State Environmental Improvement & Energy Resources Authority, Water Pollution Control, Series A, State Revolving Fund Program, Callable 07/01/10 @ 100 5.500%, 07/01/16 2,495 2,796 Missouri State Environmental Improvement & Energy Resources Authority, Water Pollution Control, Series B, State Revolving Fund Program, Callable 01/01/13 @ 100 5.000%, 01/01/17 1,470 1,593 Missouri State Environmental Improvement & Energy Resources Authority, Water Pollution Control, Series C, State Revolving Fund Program 5.375%, 07/01/13 $ 1,570 $ 1,802 5.375%, 07/01/14 2,400 2,758 5.375%, 07/01/15 1,500 1,722 5.375%, 07/01/16 2,000 2,298 Missouri State Environmental Improvement & Energy Resources Authority, Water Pollution Control, Series C, State Revolving Fund Program, Callable 07/01/11 @ 100 5.000%, 07/01/23 6,655 6,862 ------------- 31,925 ------------- RECREATIONAL FACILITY AUTHORITY - 0.6% Missouri Financial Board Cultural Facilities, Nelson Gallery Foundation, Series A, Callable 12/01/11 @ 100 5.250%, 12/01/14 1,000 1,110 ------------- TRANSPORTATION - 11.5% Missouri State Highways & Transportation Road, Series A 5.000%, 02/01/11 6,000 6,714 4.100%, 02/01/12 600 630 Missouri State Highways & Transportation Road, Series A, Callable 02/01/11 @ 100 5.000%, 02/01/17 550 589 5.250%, 02/01/20 5,000 5,370 Missouri State Highways & Transportation Road, Series A, Callable 02/01/12 @ 100 5.125%, 02/01/17 1,000 1,085 5.000%, 02/01/22 3,725 3,858 St. Louis Airport, Capital Improvement Program, Series A, Callable 07/01/12 @ 100 (MBIA) 5.375%, 07/01/21 1,000 1,068 St. Louis Airport, Lambert Field, Series B (FGIC) (AMT) 6.000%, 07/01/10 750 862 St. Louis Airport, Series A (FSA) 4.000%, 07/01/13 2,500 2,542 ------------- 22,718 ------------- UTILITIES - 6.1% Kansas City Water, Series A, Callable 12/01/08 @ 101 5.000%, 12/01/11 4,390 4,778 Kansas City Water, Series B, Callable 12/01/06 @ 101 5.000%, 12/01/07 500 552 5.000%, 12/01/16 2,200 2,365 Kansas City Water, Series D, Pre-refunded 12/01/04 @ 100 6.150%, 12/01/07 (a) 500 530 6.300%, 12/01/08 (a) 500 530 Sikeston Electric, Callable 06/01/06 @ 101 (MBIA) 5.000%, 06/01/22 1,000 1,029 Springfield Water Works, Series A, Pre-refunded 05/01/05 @ 102 5.600%, 05/01/23 (a) 2,000 2,141 ------------- 11,925 ------------- TOTAL REVENUE BONDS 146,602 -------------
The accompanying notes are an integral part of the financial statements. 66
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------------ GENERAL OBLIGATIONS - 24.4% Clayton School District (STAID) 4.250%, 02/01/08 $ 50 $ 55 Clayton School District, Callable 03/01/07 @ 101 5.000%, 03/01/17 3,325 3,543 Columbia School District, Callable 03/01/07 @ 100 6.300%, 03/01/11 365 419 Columbia School District, Missouri Direct Deposit Program, Callable 03/01/08 @ 100 (STAID) 4.850%, 03/01/14 1,000 1,068 Independence School District, Missouri Direct Deposit Program, Callable 03/01/13 @ 100 (MBIA) (STAID) 5.000%, 03/01/20 1,240 1,311 Jackson County School District, Callable 03/01/08 @ 100 4.850%, 03/01/13 2,000 2,106 Jackson County School District #4, Missouri Direct Deposit Program (STAID) 5.250%, 03/01/11 1,000 1,136 Jefferson City School District, Series A 6.700%, 03/01/11 1,000 1,217 Jefferson County School District #R-3, Callable 03/01/08 @ 100 (STAID) 4.600%, 03/01/12 600 628 Kansas City, Series A, Callable 03/01/08 @ 101 5.250%, 09/01/09 300 336 5.250%, 09/01/12 3,980 4,441 Kansas City, Series A, Streetlight Project, Callable 02/01/10 @ 101 5.750%, 02/01/12 1,000 1,140 Missouri State, Fourth State Building, Series A, Pre-refunded 08/01/06 @ 100 5.400%, 08/01/09 (a) 2,000 2,222 Missouri State Water Pollution Control, Series A, Pre-refunded 08/01/06 @ 100 5.750%, 08/01/18 (a) 2,085 2,337 North Kansas City School District, Callable 03/01/11 @ 100 5.000%, 03/01/16 1,265 1,362 North Kansas City School District, Missouri Direct Deposit Program, Series A (STAID) 4.000%, 03/01/11 (c) 520 548 Puerto Rico Municipal Finance Agency, Callable 08/01/09 @ 101 5.500%, 08/01/23 3,000 3,315 S. Louis County Ferguson Reorganization School District #R-2 (STAID) 3.750%, 05/01/11 1,000 1,039 St. Charles County, Francis Howell School District, Series A (STAID) 4.000%, 03/01/11 1,000 1,060 St. Charles School District, Missouri Direct Deposit Program, Callable 03/01/06 @ 101 5.000%, 03/01/12 750 818 St. Louis County 5.000%, 02/01/12 3,250 3,641 St. Louis County Public Safety, Callable 08/15/09 @ 100 (FGIC) 5.125%, 02/15/17 4,185 4,529 St. Louis County Rockwood School District #R-6, Callable 02/01/11 @ 100 5.000%, 02/01/13 $ 3,000 $ 3,280 St. Louis County Rockwood School District #R-6, Series A, Callable 02/01/13 @ 100 5.000%, 02/01/14 2,000 2,214 Taney County Reorganized School District #R-V, Hollister, Missouri Direct Deposit Program, Callable 03/01/13 @ 100 (FSA) (STAID) 5.000%, 03/01/17 1,000 1,082 Wentzville School District #R-4, Callable 03/01/08 @ 100 (FSA) 5.100%, 03/01/18 3,000 3,219 ------------- TOTAL GENERAL OBLIGATIONS 48,066 ------------- TOTAL MUNICIPAL BONDS (Cost $182,488) 194,668 ------------- TOTAL INVESTMENTS - 99.0% (Cost $182,488) 194,668 ------------- OTHER ASSETS AND LIABILITIES, NET - 1.0% 1,846 ------------- TOTAL NET ASSETS - 100.0% $ 196,514 -------------
(a) Pre-refunded issues are typically backed by U.S. Government obligations. These bonds mature at the call date and price indicated. (b) Escrowed to Maturity issues are typically backed by U.S. Government obligations. If callable, these bonds may still be subject to call at the call date and price indicated. (c) Security purchased on a when-issued basis. On September 30, 2003, the total cost of investments purchased on a when-issued basis was $541,975. See note 2 in Notes to Financial Statements. AMBAC - American Municipal Bond Assurance Corporation AMT - Alternative Minimum Tax. As of September 30, 2003, the aggregate market value of securities subject to the AMT was $1,834,338, which represents 0.9% of net assets. COMGTY - Commonwealth Guaranty FGIC - Financial Guaranty Insurance Corporation FHA - Federal Housing Authority FSA - Financial Security Assurance MBIA - Municipal Bond Insurance Association STAID - State Aid Withholding 67 NEBRASKA TAX FREE FUND
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------------ MUNICIPAL BONDS - 96.8% REVENUE BONDS - 77.7% EDUCATION - 19.3% Nebraska Educational Finance Authority, Concordia University Project, Callable 12/15/08 @ 100 5.350%, 12/15/18 $ 1,000 $ 1,025 Nebraska Educational Finance Authority, Creighton University Project, Series A (AMBAC) 5.000%, 09/01/09 500 563 Nebraska Educational Finance Authority, Midland Lutheran College Project, Callable 10/01/10 @ 100 5.200%, 10/01/20 350 352 Nebraska Educational Finance Authority, Wesleyan University Project, Callable 04/01/12 @ 100 (RAAI) 5.000%, 04/01/17 605 640 Nebraska Utility Corporation, University of Nebraska, Lincoln Project, Callable 01/01/12 @ 100 5.250%, 01/01/15 1,045 1,155 University of Nebraska, Callable 07/15/08 @ 100 5.250%, 07/15/11 1,000 1,115 University of Nebraska, Lincoln Parking Project, Callable 08/01/05 @ 102 5.100%, 06/01/09 500 530 University of Nebraska, Lincoln Student Fees, Callable 01/01/13 @ 100 5.000%, 07/01/22 750 770 University of Nebraska Facilities, Medical Center Research Project, Callable 02/15/12 @ 100 5.000%, 02/15/15 500 542 ------------- 6,692 ------------- HEALTHCARE - 15.8% Douglas County Hospital Authority #1, Immanuel Medical Center, Callable 09/01/07 @ 102 (AMBAC) 4.900%, 09/01/09 750 821 Lancaster County Hospital Authority, Bryanlgh Medical Center Project, Callable 06/01/11 @ 100 (AMBAC) 5.000%, 06/01/19 500 519 5.125%, 06/01/21 1,200 1,247 Madison County Hospital Authority #1, Faith Regional Health Services Project, Callable 01/01/12 @ 100 (AG) 5.500%, 07/01/21 1,000 1,059 Nebraska Investment Finance Authority, Great Plains Regional Medical Center, Callable 05/15/12 @ 100 (RAAI) 5.200%, 11/15/16 250 266 5.300%, 11/15/17 805 857 Platte County Hospital Authority #1, Columbus Community Hospital Project, Callable 05/01/10 @ 101 (AG) 5.850%, 05/01/14 650 718 ------------- 5,487 ------------- HOUSING - 6.3% Nebraska Investment Finance Authority, Multifamily Housing (GNMA) 4.625%, 07/20/12 480 495 Nebraska Investment Finance Authority, Single Family Housing, Series A, Callable 03/01/11 @ 100 (AMT) 5.150%, 03/01/16 $ 905 $ 938 Omaha Housing Authority, Multifamily Housing, Timbercreek Apartments, Callable 10/01/11 @ 100 (GNMA) 5.150%, 11/20/22 735 756 ------------- 2,189 ------------- LEASE REVENUE - 2.4% Nebraska Educational Telecommunication Commission, Leasing Project, Series 2000 (MLO) 6.000%, 02/01/06 750 825 ------------- RECREATIONAL FACILITY AUTHORITY - 7.9% Douglas County Zoo Facility, Omaha Henry Doorly Zoo Project, Callable 09/01/09 @ 100 5.650%, 09/01/11 1,000 1,104 Omaha Convention Hotel Corporation, Series A, Callable 04/01/12 @ 100 (AMBAC) 5.500%, 04/01/16 525 590 5.125%, 04/01/26 1,000 1,025 ------------- 2,719 ------------- TAX REVENUE - 1.5% Omaha Special Tax Revenue, Series A, Callable 02/01/12 @ 101 5.125%, 02/01/32 500 512 ------------- TRANSPORTATION - 0.8% Omaha Airport Authority, Callable 01/01/11 @ 100 (FSA) 5.500%, 01/01/14 250 277 ------------- UTILITIES - 23.7% Alliance Electrical Systems, Callable 06/15/08 @ 100 (AMBAC) 5.000%, 12/15/14 260 282 5.100%, 12/15/15 460 501 Cuming County Public Power District, Callable 05/15/06 @ 100 5.600%, 05/15/21 250 255 Grand Island Electrical Systems, Callable 06/27/11 @ 100 (MBIA) 5.125%, 08/15/16 750 818 Hastings Electrical Systems, Callable 05/01/11 @ 100 (FSA) 5.000%, 01/01/15 1,000 1,080 5.000%, 01/01/16 750 807 Lincoln Electrical Systems, Callable 09/01/11 @ 100 5.000%, 09/01/15 500 542 Lincoln Electrical Systems, Callable 09/01/13 @ 100 5.000%, 09/01/26 (a) 1,000 1,019 Nebraska Investment Finance Authority, Drinking Water System Revolving Fund, Callable 01/01/09 @ 100 4.500%, 01/01/10 115 121 5.150%, 01/01/16 580 604 Omaha Public Power District, Series A, Callable 02/01/10 @ 100 5.000%, 02/01/17 655 702 5.200%, 02/01/22 630 655
The accompanying notes are an integral part of the financial statements. 68
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------------ Omaha Public Power District, Series A, Callable 05/01/13 @ 100 3.900%, 02/01/14 $ 250 $ 253 Omaha Public Power Electrical Systems 6.200%, 02/01/17 210 256 Washington County Wastewater Facilities, Cargill Inc. Project, Callable 11/01/12 @ 101 5.900%, 11/01/27 300 312 ------------- 8,207 ------------- TOTAL REVENUE BONDS 26,908 ------------- GENERAL OBLIGATIONS - 15.2% Dawson County School District, Callable 06/15/06 @ 102 5.100%, 12/15/16 365 397 Douglas County School District #17, Millard, Callable 11/15/12 @ 100 (FSA) 4.000%, 11/15/13 500 517 Douglas County School District #54, Ralston Public Schools, Callable 08/15/11 @ 100 5.000%, 12/15/16 845 913 Lancaster County School District #1, Lincoln Public Schools, Callable 01/15/11 @ 100 5.250%, 07/15/19 220 239 Lancaster County School District #1, Lincoln Public Schools, Callable 07/15/12 @ 100 5.000%, 01/15/17 750 807 Omaha, Series A 6.500%, 12/01/18 825 1,047 Omaha, Series B, Callable 12/01/03 @ 100 5.250%, 12/01/25 500 502 Omaha-Douglas Public Building, Callable 05/01/11 @ 100 4.900%, 05/01/16 500 532 5.100%, 05/01/20 300 317 ------------- TOTAL GENERAL OBLIGATIONS 5,271 ------------- CERTIFICATES OF PARTICIPATION - 3.9% Western Nebraska Community College, Callable 10/15/07 @ 100 4.700%, 10/15/10 295 309 4.800%, 10/15/11 195 203 4.900%, 10/15/12 250 260 5.000%, 10/15/13 300 311 5.100%, 10/15/14 250 259 ------------- TOTAL CERTIFICATES OF PARTICIPATION 1,342 ------------- TOTAL MUNICIPAL BONDS (Cost $31,727) 33,521 ------------- DESCRIPTION SHARES VALUE (000) - ------------------------------------------------------------------------------------------------------ RELATED PARTY MONEY MARKET FUND - 4.8% First American Tax Free Obligations Fund, Cl Y (b) 1,683,218 $ 1,683 ------------- TOTAL RELATED PARTY MONEY MARKET FUND (Cost $1,683) 1,683 ------------- TOTAL INVESTMENTS - 101.6% (Cost $33,410) 35,204 ------------- OTHER ASSETS AND LIABILITIES, NET - (1.6)% (558) ------------- TOTAL NET ASSETS - 100.0% $ 34,646 -------------
(a) Security purchased on a when-issued basis. On September 30, 2003, the total cost of investments purchased on a when-issued basis was $1,010,850. See note 2 in Notes to Financial Statements. (b) 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. AG - Asset Guaranty AMBAC - American Municipal Bond Assurance Corporation AMT - Alternative Minimum Tax. As of September 30, 2003, the aggregate market value of securities subject to the AMT was $938,376, which represents 2.7% of net assets. Cl - Class FSA - Financial Security Assurance GNMA - Government National Mortgage Association MBIA - Municipal Bond Insurance Association MLO - Municipal Lease Obligation RAAI - Radian Asset Assurance Inc. 69 OHIO TAX FREE FUND
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------------ MUNICIPAL BONDS - 97.3% REVENUE BONDS - 25.8% EDUCATION - 5.5% Ohio State Higher Educational Facilities, Xavier University Project, Callable 05/01/13 @ 100 (FGIC) 5.250%, 05/01/16 $ 1,000 $ 1,117 University of Cincinnati, Series A, Callable 06/01/11 @ 101 (FGIC) 5.500%, 06/01/14 1,000 1,129 ------------- 2,246 ------------- HEALTHCARE - 6.2% Erie County Hospital Facilities, Firelands Regional Medical Center, Series A, Callable 08/15/12 @ 101 5.500%, 08/15/22 500 512 Franklin County Health Care Facilities, Refunding & Improvement, Ohio Presbyterian, Series A, Callable 07/01/12 @ 100 (RAAI) 5.125%, 07/01/22 500 510 Hamilton County Hospital Facilities, Children's Medical Center, Series F (FGIC) 5.200%, 05/15/09 1,000 1,121 Lorain County Hospital, Catholic Healthcare, Callable 10/01/12 @ 100 5.500%, 10/01/17 350 377 ------------- 2,520 ------------- HOUSING - 0.7% Ohio Housing Financing Agency, Residential Mortgage, Series D, Callable 03/01/12 @ 100 (AMT) 5.200%, 09/01/22 290 296 ------------- POLLUTION CONTROL - 2.6% Ohio State Water Development Authority, Water Pollution Control, Callable 06/01/12 @ 100 5.050%, 12/01/21 1,000 1,050 ------------- TRANSPORTATION - 2.8% Ohio State Turnpike Commission, Series A, Pre-refunded 02/15/06 @ 102 (MBIA) 5.700%, 02/15/13 (a) 1,000 1,120 ------------- UTILITIES - 8.0% Cincinnati Water System, Callable 06/01/11 @ 100 5.000%, 12/01/20 1,000 1,047 Montgomery County Water, Greater Moraine Beaver, Callable 11/15/12 @ 100 (AMBAC) 5.375%, 11/15/16 1,000 1,124 Ohio State Water Development Authority, Escrowed to Maturity, Callable 06/01/05 @ 102 (AMBAC) 5.800%, 12/01/11 (b) 1,000 1,087 ------------- 3,258 ------------- TOTAL REVENUE BONDS 10,490 ------------- GENERAL OBLIGATIONS - 62.8% Cincinnati, Callable 12/01/11 @ 100 5.000%, 12/01/16 1,000 1,080 5.000%, 12/01/17 1,000 1,075 Columbus, Series B 5.000%, 07/01/08 1,405 1,584 Columbus City School District, School Facilities Construction & Improvement, Callable 06/01/13 @ 100 (FGIC) 5.000%, 12/01/18 2,000 2,149 Dayton City School District, School Facilities Construction & Improvement, Series D (FGIC) 5.000%, 12/01/11 $ 1,000 $ 1,124 Dublin, Refunding & Improvement, Series A, Callable 12/01/09 @ 101 5.250%, 12/01/14 1,000 1,113 Greater Cleveland Regional Transportation Authority, Pre-refunded 12/01/06 @ 101 (FGIC) 5.650%, 12/01/16 (a) 1,000 1,139 Northwest School District, School Improvement, Callable 12/01/12 @ 100 (MBIA) 5.000%, 12/01/22 1,000 1,038 Ohio State Common Schools, Series A, Callable 03/15/12 @ 100 5.125%, 09/15/22 2,000 2,099 Ohio State Higher Education, Series A, Callable 02/01/11 @ 100 5.000%, 02/01/19 1,000 1,057 Ohio State Higher Education, Series A, Callable 02/01/12 @ 100 5.000%, 08/01/22 1,000 1,036 Ohio State Higher Education, Series B, Callable 11/01/11 @ 100 5.000%, 11/01/15 1,000 1,087 5.000%, 11/01/16 1,000 1,082 Ohio State Infrastructure Improvement, Series A 5.500%, 02/01/20 1,000 1,146 Pickerington School District, School Facilities Construction & Improvement, Callable 12/01/11 @ 100 (FGIC) 5.250%, 12/01/20 1,000 1,076 Solon, Callable 12/01/12 @ 100 5.000%, 12/01/21 1,000 1,046 Springfield City School District, Callable 12/01/11 @ 102 (FGIC) 5.200%, 12/01/23 1,000 1,055 Summit County, Series R (FGIC) 5.500%, 12/01/21 1,000 1,141 Sylvania City School District, Pre-refunded 12/01/05 @ 101 (FGIC) 5.800%, 12/01/15 (a) 1,000 1,109 Toledo City School District, School Facilities Improvement, Callable 12/01/13 @ 100 (FSA) 5.000%, 12/01/14 1,000 1,112 Van Wert City School District, School Improvement, Callable 12/01/12 @ 100 (FGIC) 5.000%, 12/01/20 1,035 1,092 ------------- TOTAL GENERAL OBLIGATIONS 25,440 ------------- CERTIFICATES OF PARTICIPATION - 8.7% Midview Local School District, School Buildings Facilities Project, Callable 05/01/13 @ 100 5.250%, 11/01/17 1,270 1,351 Ohio State Building Authority, State Facility, Administration Building Fund, Series A, Callable 04/01/12 @ 100 (FSA) 5.500%, 04/01/16 1,000 1,126 5.000%, 04/01/22 1,000 1,035 ------------- TOTAL CERTIFICATES OF PARTICIPATION 3,512 ------------- TOTAL MUNICIPAL BONDS (Cost $37,923) 39,442 -------------
The accompanying notes are an integral part of the financial statements. 70
DESCRIPTION SHARES VALUE (000) - ------------------------------------------------------------------------------------------------------ MONEY MARKET FUND - 1.2% Federated Ohio Municipal Trust 488,854 $ 489 ------------- TOTAL MONEY MARKET FUND (Cost $489) 489 ------------- TOTAL INVESTMENTS - 98.5% (Cost $38,412) 39,931 ------------- OTHER ASSETS AND LIABILITIES, NET - 1.5% 598 ------------- TOTAL NET ASSETS - 100.0% $ 40,529 -------------
(a) Pre-refunded issues are typically backed by U.S. Government obligations. These bonds mature at the call date and price indicated. (b) Escrowed to Maturity issues are typically backed by U.S. Government obligations. If callable, these bonds may still be subject to call at the call date and price indicated. AMBAC - American Municipal Bond Assurance Corporation AMT - Alternative Minimum Tax. As of September 30, 2003, the aggregate market value of securities subject to the AMT was $296,534 which represents 0.7% of net assets. FGIC - Financial Guaranty Insurance Corporation FSA - Financial Security Assurance MBIA - Municipal Bond Insurance Association RAAI - Radian Asset Assurance Inc. OREGON INTERMEDIATE TAX FREE FUND
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------------ MUNICIPAL BONDS - 97.9% REVENUE BONDS - 38.5% BUILDING - 0.7% Oregon State Fair & Exposition Center, Callable 10/01/03 @ 101 (RAAI) 5.400%, 10/01/06 $ 1,010 $ 1,023 ------------- EDUCATION - 5.0% Multnomah County Educational Facilities, University of Portland, Callable 04/01/07 @ 102 (AMBAC) 5.750%, 04/01/10 2,245 2,577 5.700%, 04/01/15 1,000 1,069 Oregon State Facilities Authority, Northwest Project, Series A, Callable 10/01/12 @ 101 5.000%, 10/01/14 555 575 Oregon State Health, Housing, Educational & Cultural Facilities Authority, George Fox University, Series A, Callable 03/01/07 @ 102 (BA) 5.400%, 03/01/09 395 434 5.450%, 03/01/10 415 451 Oregon State Health, Housing, Educational & Cultural Facilities Authority, Reed College, Series A, Callable 07/01/06 @ 102 5.375%, 07/01/15 2,000 2,104 Salem Educational Facilities, Williamette University, Callable 04/01/04 @ 101 5.700%, 04/01/05 500 516 ------------- 7,726 ------------- HEALTHCARE - 5.5% Clackamas County Hospital Facilities Authority, Legacy Health Systems, Callable 08/15/09 @ 101 5.250%, 02/15/11 2,000 2,191 5.375%, 02/15/12 1,000 1,092 Clackamas County Hospital Facilities Authority, Mary's Woods, Series A, Callable 05/15/09 @ 102 6.125%, 05/15/13 1,000 1,034 Douglas County Hospital Facilities Authority, Catholic Health, Series B (MBIA) 5.500%, 11/15/04 155 163 Medford Hospital Facilities Authority, Asante Health Systems, Callable 08/15/08 @ 101 (MBIA) 5.250%, 08/15/11 1,000 1,109 5.375%, 08/15/12 1,000 1,105 Salem Hospital Facilities Authority, Callable 08/15/08 @ 101 5.250%, 08/15/14 1,000 1,051 Umatilla County Hospital Facilities Authority, Catholic Health Initiatives, Series A 5.000%, 03/01/12 690 743 ------------- 8,488 ------------- HOUSING - 4.7% Oregon State Housing & Community Services, Series A, Callable 07/01/04 @ 102 6.400%, 07/01/18 630 650 Oregon State Housing & Community Services, Series A, Callable 07/01/06 @ 102 6.000%, 07/01/16 850 897 Oregon State Housing & Community Services, Series A, Callable 10/01/03 @ 102 4.900%, 07/01/05 1,075 1,099 5.750%, 07/01/12 2,490 2,533
71
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------------ Oregon State Housing & Community Services, Series E, Callable 01/01/10 @ 100 (FHA) 5.750%, 07/01/13 $ 695 $ 744 Portland Housing Authority, Riverwood Project, Pre-refunded 01/01/06 @ 100 6.000%, 01/01/11 (a) 1,170 1,291 ------------- 7,214 ------------- IMPROVEMENTS - 0.7% Oregon State Department of Administrative Services Lottery, Series A, Callable 04/01/10 @ 100 (FSA) 5.000%, 04/01/12 1,050 1,145 ------------- POLLUTION CONTROL - 1.6% Port of St. Helens Pollution Control, Portland General Electric 4.800%, 04/01/10 2,450 2,062 4.800%, 06/01/10 400 331 ------------- 2,393 ------------- TAX REVENUE - 1.4% Medford Urban Renewal Agency, Callable 01/01/13 @ 101 4.500%, 06/01/13 1,010 1,057 Portland Urban Renewal & Redevelopment, Convention Center, Series A, Callable 06/15/10 @ 101 (AMBAC) 5.750%, 06/15/15 1,000 1,148 ------------- 2,205 ------------- TRANSPORTATION - 5.9% Oregon State Department of Transportation, Highway User Tax, Callable 11/15/10 @ 100 5.125%, 11/15/14 2,260 2,485 Oregon State Department of Transportation, Highway User Tax, Series A, Callable 11/15/12 @ 100 5.500%, 11/15/16 1,000 1,137 Port Morrow, Callable 06/01/05 @ 100 6.250%, 06/01/15 1,500 1,518 Port Portland Airport, Series 12-A, Callable 01/01/09 @ 101 (FGIC) 5.250%, 07/01/11 1,165 1,280 5.250%, 07/01/12 2,000 2,205 Tri-County Metropolitan Transportation District, Series 1 (MGT) 4.900%, 06/01/09 500 548 ------------- 9,173 ------------- UTILITIES - 13.0% Clackamas County Service District #1, Pre-refunded 10/01/06 @ 100 6.200%, 10/01/09 (a) 700 798 Eugene Electric Utilities, Callable 08/01/06 @ 100 (FSA) 5.375%, 08/01/11 1,195 1,320 Eugene Electric Utilities, Callable 08/01/07 @ 100 (FSA) 5.000%, 08/01/11 1,305 1,439 Eugene Electric Utilities, Callable 08/01/08 @ 100 (FSA) 4.800%, 08/01/13 690 726 Marion County Solid Waste & Electric, Ogden Martin System Project (AMBAC) 5.500%, 10/01/06 1,465 1,621 Portland Sewer Systems, Series A, Callable 06/01/07 @ 100 (FGIC) 5.000%, 06/01/09 $ 2,250 $ 2,490 5.000%, 06/01/10 2,000 2,212 5.000%, 06/01/15 250 269 Salem Water & Sewer (MBIA) 6.000%, 06/01/06 1,135 1,269 Tualatin Valley Water District, Callable 06/01/08 @ 100 (FSA) 5.000%, 06/01/12 1,000 1,095 Washington County Clean Water Services, Callable 10/01/11 @ 100 (FGIC) 5.125%, 10/01/14 1,790 1,968 Washington County Unified Sewer Agency, Callable 10/01/06 @ 101 (FGIC) 5.200%, 10/01/09 1,300 1,449 Washington County Unified Sewer Agency, Series 1 (FGIC) 5.750%, 10/01/08 1,000 1,162 Washington County Unified Sewer Agency, Series A, Zero Coupon Bond (AMBAC) 3.170%, 10/01/05 (b) 1,150 1,120 4.200%, 10/01/07 (b) 1,200 1,102 ------------- 20,040 ------------- TOTAL REVENUE BONDS 59,407 ------------- GENERAL OBLIGATIONS - 53.4% Chemeketa Community College District, Escrowed to Maturity (FGIC) 5.500%, 06/01/13 (c) 2,170 2,525 Chemeketa Community College, Pre-refunded 06/01/06 @ 100 (FGIC) 5.650%, 06/01/09 (a) 1,000 1,112 Clackamas & Washington Counties School District #3, Linn-Wilsonville District, Series A, Zero Coupon Bond (FGIC) 4.415%, 06/15/15 (b) 5,540 3,328 Clackamas County Limited Tax Assessment, Callable 11/01/03 @ 100 6.000%, 05/01/10 1,000 1,001 Clackamas County School District #7, Lake Oswego, Callable 06/01/11 @ 100 5.500%, 06/01/12 1,240 1,414 Clackamas County School District #86, Canby, Callable 06/15/10 @ 100 (SBG) 5.500%, 06/15/15 1,835 2,053 Columbia County School District #502, Zero Coupon Bond (FGIC) 3.900%, 06/01/12 (b) 1,530 1,100 4.310%, 06/01/16 (b) 1,000 581 Deschutes County, Callable 12/01/12 @ 100 (FSA) 5.000%, 12/01/14 1,955 2,153 Deschutes County, Pre-refunded 12/01/06 @ 100 (MBIA) 5.250%, 12/01/09 (a) 1,000 1,116 Deschutes & Jefferson Counties School District #2, Callable 06/15/11 @ 100 5.500%, 06/15/14 1,725 1,940 Eugene Public Safety Facilities, Callable 06/01/06 @ 100 (FGIC) 5.700%, 06/01/16 1,295 1,412
The accompanying notes are an integral part of the financial statements. 72
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------------ Hood River County School District, Callable 06/15/11 @ 100 (SBG) 5.250%, 06/15/16 $ 1,030 $ 1,136 Jackson County School District #549, Medford (SBG) 5.000%, 06/15/12 2,000 2,233 Josephine County School District #7 (FGIC) 5.750%, 06/01/06 1,525 1,697 Lake Oswego (MBIA) 5.250%, 06/01/13 1,035 1,180 Lane County School District #4, Eugene (FGIC) 5.000%, 07/01/11 1,785 2,005 Lane County School District #40, Creswell, Callable 06/15/10 @ 100 (SBG) 5.000%, 06/15/11 1,120 1,242 Lane County School District #52, Bethel, Pre-refunded 06/15/10 @ 100 (SBG) 5.350%, 06/15/11 (a) 1,285 1,478 Lincoln County School District (FGIC) 6.000%, 06/15/06 1,055 1,182 Linn Benton Community College District, Zero Coupon Bond (FGIC) (SBG) 4.000%, 06/15/08 (b) 985 872 4.210%, 06/15/09 (b) 1,000 845 Linn County Community School District, Callable 06/15/13 @ 100 (FGIC) (SBG) 5.550%, 06/15/21 1,000 1,070 Marion & Polk Counties School District #7-J, Silverton, Callable 06/01/04 @ 101 (FSA) 5.600%, 06/01/06 860 894 Marion County School District #103C Woodburn, Series B, Zero Coupon Bond (FGIC) 3.700%, 11/01/11 (b) 2,210 1,661 McMinnville School District 5.500%, 06/15/13 1,000 1,153 McMinnville School District #40 (FSA) 5.500%, 06/15/12 720 832 Metro, Callable 09/01/10 @ 102 5.250%, 09/01/14 1,000 1,116 Metropolitan, Washington Park Zoo, Series A, Callable 01/15/07 @ 100 5.250%, 01/15/10 1,000 1,107 Morrow County School District #1 (MBIA) 5.500%, 06/01/05 835 896 Multnomah-Clackamas County School District #10, Gresham-Barlow, Callable 06/15/11 @ 100 (FSA) (SBG) 5.500%, 06/15/13 1,780 2,016 Multnomah-Clackamas County School District #28-302, Centennial, Callable 06/15/11 @ 100 (FGIC) (SBG) 5.500%, 06/15/14 1,500 1,687 Multnomah County, Series A, Callable 04/01/10 @ 100 5.000%, 04/01/11 1,000 1,106 5.125%, 04/01/13 2,445 2,671 Multnomah County School District #7, Reynolds (AMBAC) 5.500%, 06/01/06 1,000 1,108 Multnomah County School District #7, Reynolds, Callable 06/15/11 @ 100 (SBG) 5.625%, 06/15/15 1,000 1,135 Oregon State Alternative Energy, Private Act, Callable 07/01/04 @ 100 5.300%, 07/01/05 $ 900 $ 928 Oregon State Board of Higher Education, Series A, Callable 08/01/09 @ 101 5.500%, 08/01/15 1,255 1,415 Oregon State Pollution Control, Series A, Callable 11/01/07 @ 100 4.875%, 11/01/11 455 496 Polk, Marion & Benton Counties School District #13-J, Callable 12/01/04 @ 101 (FGIC) 5.500%, 12/01/05 570 605 Port Portland, Series A 4.500%, 03/01/06 1,000 1,075 Portland Community College Services, Callable 06/01/11 @ 100 5.375%, 06/01/15 1,375 1,529 Portland Emergency Facilities, Series A, Callable 06/01/09 @ 100 5.000%, 06/01/12 1,060 1,161 Puerto Rico Commonwealth, Series C, Mandatory Put 07/01/08 @ 100 (FSA) 5.000%, 07/01/21 1,000 1,117 Salem-Keizer School District #24-J, Callable 06/01/08 @ 100 (FSA) 5.100%, 06/01/12 2,000 2,205 Salem-Keizer School District #24-J, Callable 06/01/09 @ 100 (SBG) 5.250%, 06/01/12 1,000 1,109 Tri-County Metropolitan Transportation District, Light Rail Extension, Series A, Callable 07/01/09 @ 101 5.250%, 07/01/10 1,115 1,261 5.250%, 07/01/12 1,000 1,114 Tualatin Hills Park & Recreation District (FGIC) 5.750%, 03/01/13 870 1,023 Umatilla County School District #016-R, Pendleton (FGIC) 5.000%, 07/01/11 1,000 1,123 Wasco County School District #12 5.500%, 06/15/14 1,080 1,253 Washington & Clackamas Counties School District #23-J, Tigard (FGIC) 5.750%, 06/01/06 1,055 1,174 5.250%, 06/01/11 1,335 1,521 Washington & Clackamas Counties School District #23-J, Tigard, Zero Coupon Bond 5.820%, 06/15/14 (b) 1,030 657 Washington County 5.500%, 06/01/10 1,000 1,157 Washington County School District #48-J, Beaverton, Callable 08/01/08 @ 100 5.250%, 08/01/10 2,000 2,246 Washington County School District #88, Sherwood, Pre-refunded 06/01/05 @ 100 (FSA) 5.700%, 06/01/06 (a) 1,000 1,076 Washington, Multnomah & Yamhill Counties School District #1-J 5.000%, 11/01/14 1,000 1,123 Washington, Multnomah & Yamhill Counties School District #1-J (MBIA) 5.000%, 06/01/10 1,425 1,606
73
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------------ Washington, Multnomah & Yamhill Counties School District #1-J, Callable 06/01/09 @ 100 5.250%, 06/01/12 $ 1,185 $ 1,315 Wilsonville, Callable 06/01/08 @ 100 5.000%, 12/01/10 445 448 Yamhill County School District #40, McMinnville (FGIC) 6.000%, 06/01/08 600 700 ------------- TOTAL GENERAL OBLIGATIONS 82,494 ------------- CERTIFICATES OF PARTICIPATION - 6.0% Multnomah County, Callable 08/01/08 @ 101 (MLO) 4.750%, 08/01/11 2,200 2,362 Oregon State Department of Administrative Services, Series A (AMBAC) (MLO) 5.500%, 05/01/07 1,000 1,127 Oregon State Department of Administrative Services, Series A, Callable 05/01/09 @ 101 (AMBAC) (MLO) 5.000%, 05/01/14 1,200 1,302 Oregon State Department of Administrative Services, Series A, Callable 05/01/13 @ 100 (FSA) 5.000%, 05/01/14 1,200 1,326 Oregon State Department of Administrative Services, Series A, Pre-refunded 11/01/05 @ 101 (MBIA) (MLO) 5.000%, 11/01/06 (a) 1,000 1,089 Oregon State Department of Administrative Services, Series B, Callable 11/01/07 @ 101 (AMBAC) (MLO) 5.000%, 11/01/11 840 925 Oregon State Department of Administrative Services, Series C, Pre-refunded 05/01/06 @ 101 (MBIA) (MLO) 5.750%, 05/01/07 (a) 990 1,110 ------------- TOTAL CERTIFICATES OF PARTICIPATION 9,241 ------------- TOTAL MUNICIPAL BONDS (Cost $141,360) 151,142 ------------- DESCRIPTION SHARES VALUE (000) - ------------------------------------------------------------------------------------------------------ RELATED PARTY MONEY MARKET FUND - 0.5% First American Tax Free Obligations Fund, Cl Y (d) 829,764 $ 830 ------------- TOTAL RELATED PARTY MONEY MARKET FUND (Cost $830) 830 ------------- TOTAL INVESTMENTS - 98.4% (Cost $142,190) 151,972 ------------- OTHER ASSETS AND LIABILITIES, NET - 1.6% 2,461 ------------- TOTAL NET ASSETS - 100.0% $ 154,433 -------------
(a) Pre-refunded issues are typically backed by U.S. Government obligations. These bonds mature at the call date and price indicated. (b) The rate shown is the effective yield at the time of purchase. (c) Escrowed to Maturity issues are typically backed by U.S. Government obligations. If callable, these bonds may still be subject to call at the call date and price indicated. (d) This money market fund is advised by U.S. Bancorp Asset Management, Inc., which also serves as advisor for this Fund. See note 3 in Notes to Financial Statements. AMBAC - American Municipal Bond Assurance Corporation BA - Bank of America Cl - Class FGIC - Financial Guaranty Insurance Corporation FHA - Federal Housing Authority FSA - Financial Security Assurance MBIA - Municipal Bond Insurance Association MGT - Morgan Guaranty Trust MLO - Municipal Lease Obligation RAAI - Radian Asset Assurance Inc. SBG - School Board Guaranty The accompanying notes are an integral part of the financial statements. 74 SHORT TAX FREE FUND
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------------ MUNICIPAL BONDS - 94.7% ALABAMA - 1.2% Foley Utilities Board, Escrowed to Maturity, Callable 03/01/04 @ 100 (RB) 6.000%, 03/01/07 (a) $ 1,500 $ 1,713 Homewood, Sewer 7, Escrowed to Maturity, Callable 10/01/03 @ 100 (RB) 6.125%, 03/01/07 (a) 1,340 1,535 Mobile, Escrowed to Maturity, Callable 02/15/04 @ 100 (GO) 6.200%, 02/15/07 (a) 1,280 1,462 ------------- 4,710 ------------- ALASKA - 1.4% Anchorage, Series B (GO) (MBIA) 5.000%, 07/01/06 5,000 5,474 ------------- ARIZONA - 2.2% Arizona State Funding Program, Series 15, Escrowed to Maturity (COP) 8.750%, 08/01/06 (a) 2,115 2,541 8.750%, 08/01/06 (a) 1,410 1,695 Scottsdale Water & Sewer, Project of 1989, Series E (RB) 7.000%, 07/01/08 1,370 1,662 Yavapai County Industrial Development Authority, Waste Management Project, Series A-1, Mandatory Put 03/01/06 @ 100 (AMT) (GTY) (RB) 3.650%, 03/01/28 3,100 3,127 ------------- 9,025 ------------- CALIFORNIA - 4.6% California State (GO) 5.000%, 06/01/07 5,000 5,478 5.000%, 02/01/08 5,000 5,505 California State, Series A (RB) 2.000%, 06/16/04 4,000 4,016 Contra Costa Transportation Authority, Series A, Escrowed to Maturity, Callable 10/01/03 @ 100 (RB) 6.875%, 03/01/07 (a) 3,000 3,363 ------------- 18,362 ------------- COLORADO - 1.4% Denver City & County Airport, Series E (AMT) (RB) (XLCA) 5.000%, 11/15/07 5,000 5,529 ------------- CONNECTICUT - 0.3% Mashantucket Western Pequot Tribe, Series A, Escrowed to Maturity (RB) 6.375%, 09/01/04 (a) (b) 1,020 1,070 ------------- DISTRICT OF COLUMBIA - 1.4% District of Columbia, Series A (GO) (MBIA) 5.500%, 06/01/07 5,000 5,625 ------------- FLORIDA - 0.9% Escambia County Health Facilities Authority, Ascension Health Credit, Series A (RB) 5.000%, 11/15/06 815 891 Highlands County Health Facilities Authority, The Adventist Health System, Series B (RB) 3.750%, 11/15/06 2,605 2,721 ------------- 3,612 ------------- IDAHO - 0.8% Idaho Falls, Escrowed to Maturity, Callable 10/01/03 @ 100 (RB) 10.250%, 04/01/06 (a) $ 995 $ 1,129 Idaho Falls, Pre-refunded 04/01/07 @ 100, Callable 10/01/03 @ 100 (RB) 10.375%, 04/01/13 (c) 1,075 1,386 Magic Valley Healthcare System, Magic Valley Regional Medical Center Project (RB) (VRDO) 1.150%, 12/01/21 795 795 ------------- 3,310 ------------- ILLINOIS - 11.5% Champaign County Community Unit School District #4 (GO) 8.300%, 01/01/07 1,120 1,337 Chicago O'Hare International Airport, 2nd Lien Passenger Facilities, Series C (AMBAC) (AMT) (RB) 5.000%, 01/01/08 2,260 2,477 Chicago O'Hare International Airport, Series A, Callable 01/01/04 @ 102 (AMBAC) (RB) 4.800%, 01/01/05 4,250 4,374 Chicago Park District, Partially Pre-refunded 05/15/05 @ 102, Callable 05/15/05 @ 102 (GO) 6.350%, 11/15/08 (c) 2,000 2,204 Cook County Community High School District #218, Partially Escrowed to Maturity, Zero Coupon Bond (FSA) (GO) 2.630%, 12/01/05 (a) (d) 1,760 1,710 Cook County Consolidated High School District #200, Oak Park, Zero Coupon Bond (FSA) (GO) 2.070%, 12/01/05 (d) 2,265 2,195 Du Page Airport Authority, Series A (FGIC) (RB) 3.000%, 02/01/07 2,000 2,074 Illinois Development Finance Authority, Mercy Housing Corporation Project, Pre-refunded 08/01/04 @ 102 (GTY) (RB) 7.000%, 08/01/24 (c) 6,505 6,920 Illinois Development Finance Authority, People's Gas, Light & Coke, Series B, Mandatory Put 02/01/08 @ 100 (AMBAC) (RB) 3.050%, 02/01/33 (e) 3,000 3,074 Illinois Educational Facilities Authority, The Art Institute of Chicago, Mandatory Put 03/01/08 @ 100 (RB) 3.100%, 03/01/34 2,000 2,006 Illinois Health Facilities Authority, Covenant Retirement Communities, Series A (RAAI) (RB) 3.375%, 12/01/06 1,365 1,422 Illinois Health Facilities Authority, St. Elizabeth's Hospital, Pre-refunded 07/01/04 @ 102 (RB) 7.625%, 07/01/10 (c) 1,000 1,068 7.750%, 07/01/16 (c) 3,150 3,366 Illinois Health Facilities Authority, University of Chicago Hospital & Health (MBIA) (RB) 5.000%, 08/15/06 1,000 1,093 5.000%, 08/15/07 1,000 1,108
75
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------------ Illinois State Toll Highway Authority, Pre-refunded 07/01/06 @ 100, Callable 10/01/03 @ 100 (RB) 6.750%, 01/01/10 (c) $ 55 $ 61 Illinois State, First Series (GO) 4.000%, 12/01/06 2,000 2,148 Lake County Community Unit School District #60, Waukegan, Series A (FSA) (GO) 6.000%, 12/01/05 1,115 1,227 Lake County School District #112, Highland Park (GO) 9.000%, 12/01/06 1,655 2,010 9.000%, 12/01/07 1,000 1,263 Northern University, Escrowed to Maturity, Callable 10/01/03 @ 100 (RB) 7.125%, 04/01/05 (a) 1,405 1,483 Sangamon County (COP) 7.300%, 12/01/04 1,500 1,601 ------------- 46,221 ------------- INDIANA - 3.6% East Chicago Multi School Building Corporation, Pre-refunded 07/15/06 @ 102 (RB) (STAID) 6.500%, 01/15/16 (c) 1,000 1,157 Gary Sanitation District, Special Tax District (GO) (RAAI) 3.500%, 02/01/07 1,105 1,151 Indianapolis Industries Local Public Improvement, Airport Authority, Series A (AMT) (FSA) (RB) 5.000%, 01/01/07 10,000 10,894 New Albany Floyd County School Building, Escrowed to Maturity, Callable 01/01/04 @ 101 (RB) (STAID) 6.200%, 07/01/04 (a) 1,300 1,350 ------------- 14,552 ------------- KANSAS - 2.1% Augusta Electric Generating & Distribution System, Escrowed to Maturity, Callable 11/15/03 @ 100 (RB) 6.700%, 11/15/07 (a) 1,440 1,475 Kansas State Department Transportation Highway, Series A (RB) 5.000%, 09/01/05 5,000 5,363 Newton Hospital, Newton Healthcare Corporation, Series A, Pre-refunded 11/15/04 @ 102 (RB) 7.375%, 11/15/14 (c) 1,500 1,631 ------------- 8,469 ------------- KENTUCKY - 0.4% Bowling Green Industrial Building, Koehring Company Project, Escrowed to Maturity, Callable 10/01/03 @ 100 (RB) 7.250%, 04/01/04 (a) 405 417 Kentucky State Turnpike Authority, Escrowed to Maturity, Callable 10/01/03 @ 100 (RB) 6.125%, 07/01/07 (a) 420 461 Owensboro Electric, Light & Power, Escrowed to Maturity, Callable 01/01/04 @ 100 (RB) 6.850%, 01/01/08 (a) 685 764 ------------- 1,642 ------------- LOUISIANA - 0.3% Louisiana State Health & Education Authority, Lambeth House Project, Pre-refunded 10/01/06 @ 102 (RB) 9.000%, 10/01/26 (c) $ 1,000 $ 1,238 ------------- MARYLAND - 0.5% Calvert County Economic Development, Asbury-Solomons Island Facilities Project, Pre-refunded 01/01/05 @ 102 (RB) 8.375%, 01/01/15 (c) 1,000 1,110 Maryland State Health & Higher Education Facilities Authority, Memorial Hospital of Cumberland, Pre-refunded 07/01/04 @ 100 (RB) 6.500%, 07/01/17 (c) 1,000 1,039 ------------- 2,149 ------------- MASSACHUSETTS - 4.3% Massachusetts State Housing Finance Agency, Series B (RB) 2.500%, 06/01/06 6,000 6,116 Massachusetts State, Series E (GO) 5.500%, 01/01/09 10,000 11,394 ------------- 17,510 ------------- MICHIGAN - 4.7% Detroit Water Supply System, Escrowed to Maturity, Callable 01/01/04 @ 100 (RB) 8.875%, 01/01/05 (a) 3,035 3,205 Michigan Municipal Bond Authority, Pre-refunded 10/01/04 @ 102 (RB) 6.500%, 10/01/17 (c) 3,100 3,330 Michigan Municipal Bond Authority, Series A, Escrowed to Maturity, Callable 10/01/03 @ 102 (RB) 6.150%, 10/01/05 (a) 1,500 1,649 Michigan State Hospital Finance Authority, Genesys Health System, Series A, Pre-refunded 10/01/05 @ 100 (RB) 7.500%, 10/01/27 (c) 6,620 7,448 Michigan State Hospital Finance Authority, Harper-Grace Hospital, Escrowed to Maturity, Callable 10/01/03 @ 100 (RB) 7.125%, 05/01/09 (a) 445 511 Michigan State Hospital Finance Authority, Henry Ford Health System, Series A (RB) 5.000%, 03/01/06 1,000 1,069 Michigan State Strategic Fund, Dow-Chemical Project, Mandatory Put 06/01/06 @ 100 (RB) 3.800%, 06/01/14 (e) 1,800 1,847 ------------- 19,059 ------------- MINNESOTA - 1.0% Minneapolis Healthcare System, Allina Health System, Series A (RB) 5.000%, 11/15/06 1,895 2,047 Monticello, Big Lake Community Hospital District, Series C (RB) 4.250%, 12/01/07 1,845 1,888 Northwestern Mutual Life Insurance Co. Tax-Exempt Mortgage Trust #1 (RB) 7.605%, 02/15/09 (e) 51 51 ------------- 3,986 -------------
The accompanying notes are an integral part of the financial statements. 76
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------------ MISSISSIPPI - 0.9% Mississippi State, Escrowed to Maturity, Callable 02/01/08 @ 100 (GO) 6.200%, 02/01/08 (a) $ 3,105 $ 3,585 ------------- MISSOURI - 2.9% Boone County Hospital (RB) 5.000%, 08/01/06 4,065 4,379 Little Blue Valley Sewer District, Escrowed to Maturity, Callable 10/01/03 @ 100 (RB) 5.750%, 10/01/04 (a) 1,000 1,008 5.500%, 10/01/07 (a) 1,000 1,143 Missouri State Development Finance Board, Branson, Series A (RB) 5.000%, 12/01/05 1,000 1,066 Missouri State Environmental Improvement & Energy Resources Authority, Amerenue Project, Series A (RB) (VRDO) 1.550%, 03/01/35 1,800 1,800 Missouri State Environmental Improvement & Energy Resources Authority, Water Pollution Control, Associated Electric CoOp, Thomas Hill (RB) 5.500%, 12/01/06 1,000 1,122 St. Louis International Airport, Series A (FSA) (RB) 5.000%, 07/01/07 1,100 1,216 ------------- 11,734 ------------- NEBRASKA - 0.6% Nebraska Investment Finance Authority, Catholic Health Initiatives, Series A (RB) 5.500%, 12/01/07 2,000 2,246 ------------- NEVADA - 0.8% Nevada State, Partially Pre-refunded 12/01/04 @ 101, Callable 12/01/04 @ 101 (GO) 6.500%, 12/01/12 (c) 3,000 3,213 ------------- NEW HAMPSHIRE - 1.7% New Hampshire State Turnpike System (AMBAC) (RB) 2.000%, 02/01/06 1,000 1,016 New Hampshire State, Series A (GO) 5.000%, 07/15/07 5,220 5,827 ------------- 6,843 ------------- NEW JERSEY - 3.8% New Jersey Economic Development Authority, Arbor Glen Project, Series A, Pre-refunded 05/15/06 @ 102 (RB) 8.000%, 05/15/12 (c) 2,000 2,377 New Jersey Economic Development Authority, United Methodist Homes, Pre-refunded 07/01/05 @ 102 (RB) 7.500%, 07/01/20 (c) 4,255 4,783 New Jersey Sports & Exposition Authority, Monmouth Park, Series A, Pre-refunded 01/01/05 @ 102 (RB) 8.000%, 01/01/25 (c) 2,400 2,654 New Jersey State Educational Facilities Authority, Stevens Institute of Technology, Series C (RB) 4.000%, 07/01/04 500 509 New Jersey State Transportation Corporation, Sub-Federal Transportation Administrative Grants, Series B (COP) 5.000%, 09/15/06 2,025 2,206 New Jersey State Turnpike Authority, Escrowed to Maturity (RB) 6.750%, 01/01/09 (a) $ 2,585 $ 2,853 ------------- 15,382 ------------- NEW MEXICO - 0.4% Farmington, Pre-refunded 07/01/05 @ 100 (RB) 9.875%, 01/01/13 (c) 1,450 1,643 ------------- NEW YORK - 5.8% Long Island Power Authority, Series B (RB) 5.000%, 12/01/06 3,700 4,033 New York State Dormitory Authority, Lutheran Medical (FHA) (MBIA) (RB) 3.000%, 02/01/07 1,410 1,462 New York, Series A (GO) 5.250%, 08/01/08 8,000 8,870 New York, Series G (GO) 5.000%, 08/01/08 1,615 1,772 New York, Series H (GO) 4.000%, 08/01/08 1,675 1,763 Port Authority of New York & New Jersey, 119th Series (AMT) (FGIC) (RB) 5.000%, 09/15/06 5,050 5,519 ------------- 23,419 ------------- NORTH CAROLINA - 2.0% North Carolina Medical Care Commission, Novant Health Obligated Group, Series A (RB) 5.000%, 11/01/07 5,325 5,911 North Carolina Municipal Power Agency, Series A (RB) 3.000%, 01/01/05 1,665 1,693 5.000%, 01/01/05 500 521 ------------- 8,125 ------------- OHIO - 1.8% Allen County Economic Development, Young Men's Christian Association, Mandatory Put 04/14/08 @ 100 (RB) 3.000%, 04/15/18 (e) 5,000 5,093 Ohio State Improvement Infrastructure, Series A (GO) 5.000%, 08/01/06 2,000 2,196 ------------- 7,289 ------------- OKLAHOMA - 0.3% Ponca City Utility Authority, Escrowed to Maturity, Callable 10/01/03 @ 100 (RB) 6.000%, 07/01/08 (a) 1,110 1,304 ------------- PENNSYLVANIA - 2.7% Chartiers Valley Industrial & Commercial Development Authority, Friendship Village South, Series A (RB) 2.750%, 08/15/05 400 400 3.150%, 08/15/06 400 400 3.450%, 08/15/07 300 299 Delaware County Authority, Villanova University, Optional Put 04/01/06 @ 100 (RB) 2.000%, 08/01/31 (e) 3,500 3,500 Hampden Township Sewer Authority, Escrowed to Maturity, Callable 10/01/03 @ 100 (RB) 6.150%, 04/01/07 (a) 1,100 1,221
77
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------------ Lehigh County General Purpose Authority, Muhlenberg Hospital Center, Series A, Pre-refunded 07/15/04 @ 100 (RB) 6.600%, 07/15/22 (c) $ 3,250 $ 3,391 Ringgold School District Authority, Escrowed to Maturity, Callable 10/01/03 @ 100 (RB) 6.700%, 01/15/08 (a) 1,325 1,504 ------------- 10,715 ------------- PUERTO RICO - 3.1% Puerto Rico Commonwealth, Highway Transportation Authority, Series AA (RB) 5.000%, 07/01/07 7,200 7,933 Puerto Rico Commonwealth, Series C, Mandatory Put 07/01/08 @ 100 (GO) 5.000%, 07/01/18 (e) 4,250 4,671 ------------- 12,604 ------------- RHODE ISLAND - 0.7% Rhode Island State Health & Educational Building, Higher Education Facility, Johnson & Wales (RB) (XLCA) 5.000%, 04/01/07 1,000 1,107 Rhode Island State Health & Educational Building, Higher Education Facility, Roger Williams, Pre-refunded 11/15/04 @ 102 (CLE) (RB) 7.200%, 11/15/14 (c) 1,500 1,633 ------------- 2,740 ------------- SOUTH CAROLINA - 0.4% Georgetown County, Series A (FGIC) (GO) 3.000%, 03/01/07 1,055 1,098 South Carolina Jobs Economic Development Authority, Palmetto Health Alliance, Series C (RB) 4.500%, 08/01/06 660 686 ------------- 1,784 ------------- SOUTH DAKOTA - 0.8% Sioux Falls Health Facilities, Dow Rummel Village Project, Series B, Mandatory Put 11/15/07 @ 100, Callable 11/15/07 @ 100 (RB) 4.750%, 11/15/33 1,675 1,668 South Dakota Housing Development Authority, Homeownership Mortgage, Series I (AMT) (RB) 2.850%, 05/01/06 1,600 1,633 ------------- 3,301 ------------- TENNESSEE - 0.4% Sullivan County Health Educational & Housing Facilities, Wellmont Health Systems Project (RB) 4.500%, 09/01/06 1,500 1,571 ------------- TEXAS - 18.2% Arlington Independent School District, Pre-refunded 02/15/05 @ 67.33, Zero Coupon Bond (GO) (PSFG) 2.460%, 02/15/12 (c) (d) 8,940 5,921 Austin Utility System, Pre-refunded 11/15/04 @ 100 (FGIC) (RB) 5.750%, 05/15/24 (c) 1,530 1,610 Austin, Escrowed to Maturity, Callable 10/01/03 @ 100 (GO) 8.500%, 07/01/05 (a) 1,500 1,690 Brazos River Authority, Utilities Electric Co., Series B, Mandatory Put 06/19/06 @ 100 (AMT) (RB) 5.050%, 06/01/30 (e) $ 1,800 $ 1,874 Colorado River Municipal Water System (AMBAC) (RB) 5.000%, 01/01/06 1,500 1,621 Fort Bend Independent School District (GO) (PSFG) 7.750%, 08/15/04 1,485 1,570 Harris County Health Facilities Development, Hermann Hospital Project, Pre-refunded 10/01/04 @ 101 (MBIA) (RB) 6.375%, 10/01/24 (c) 830 882 Houston Airport Systems, Escrowed to Maturity (RB) 8.200%, 07/01/05 (a) 910 983 Houston Water & Sewer System, Series A (FSA) (RB) 5.500%, 12/01/06 4,500 5,041 Houston, Public Improvement (GO) (MBIA) 5.000%, 03/01/07 5,000 5,528 Laredo Independent School District (GO) (PSFG) 6.750%, 08/01/08 2,150 2,578 North Central Health Facility Development, Baylor Health Care Systems Project (RB) 5.500%, 05/15/06 3,500 3,841 North East Independent School District (GO) (PSFG) 7.000%, 02/01/05 2,500 2,692 Northside Independent School District, Series B, Callable 02/01/04 @ 100, Mandatory Put 08/01/06 @ 100 (GO) (PSFG) 2.450%, 08/01/33 (e) 7,000 7,017 Port Arthur District (AMBAC) (GO) 7.875%, 03/01/04 405 416 Richardson Hospital Authority, Richardson Medical Center, Pre-refunded 12/01/03 @ 102 (RB) 6.500%, 12/01/12 (c) 1,810 1,852 San Antonio (GO) 3.000%, 02/01/06 1,700 1,764 Southeast Hospital Financing Agency, Memorial Hospital System Project, Escrowed to Maturity, Callable 10/01/03 @ 100 (RB) 8.500%, 12/01/08 (a) 930 1,093 Tarrant Regional Water District (FSA) (RB) 4.000%, 03/01/07 2,000 2,145 5.000%, 03/01/08 2,275 2,543 Texas State Public Finance Authority, Series A (GO) 5.250%, 10/01/07 10,250 11,555 Texas Technical University, Improvement Financing Systems, Ninth Series (AMBAC) (RB) 4.000%, 02/15/08 1,000 1,076 Trinity River Authority, Tarrant County Water Project (MBIA) (RB) 3.000%, 02/01/05 1,180 1,209 3.000%, 02/01/06 2,590 2,687 3.250%, 02/01/07 2,130 2,232 Tyler Health Facilities Development, Mother Frances Hospital (RB) 5.000%, 07/01/07 575 612 United Independent School District (GO) (PSFG) 8.000%, 08/15/05 1,075 1,208 ------------- 73,240 -------------
The accompanying notes are an integral part of the financial statements. 78
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------------ UTAH - 1.9% Intermountain Power Agency, Series A (MBIA) (RB) 5.000%, 07/01/07 $ 7,000 $ 7,785 ------------- WASHINGTON - 2.1% Energy Northwest Electric, Columbia General Station, Series F (MBIA) (RB) 5.000%, 07/01/07 1,000 1,112 Washington State Housing Finance Commission, Presbyterian Ministries, Series A, Pre-refunded 07/01/06 @ 102 (RB) 6.850%, 07/01/21 (c) 1,390 1,620 Washington State, Series E (GO) 6.000%, 07/01/07 5,000 5,731 ------------- 8,463 ------------- WISCONSIN - 0.8% Wisconsin State Health & Educational Facilities Authority, Gundersen Lutheran, Series A (FSA) (RB) 5.000%, 02/15/08 1,000 1,107 Wisconsin State Health & Educational Facilities Authority, Wheaton Franciscan Services, Series A (RB) 5.000%, 08/15/07 1,000 1,083 Wisconsin State Health & Educational Facilities, Marquette University Project, Pre-refunded 12/01/04 @ 101 (FGIC) (RB) 6.450%, 12/01/19 (c) 1,000 1,073 ------------- 3,263 ------------- TOTAL MUNICIPAL BONDS (Cost $368,705) 381,792 ------------- DESCRIPTION SHARES VALUE (000) - ------------------------------------------------------------------------------------------------------ RELATED PARTY MONEY MARKET FUND - 3.7% First American Tax Free Obligations Fund, Cl Y (f) 15,013,334 $ 15,013 ------------- TOTAL RELATED PARTY MONEY MARKET FUND (Cost $15,013) 15,013 ------------- TOTAL INVESTMENTS - 98.4% (Cost $383,718) 396,805 ------------- OTHER ASSETS AND LIABILITIES, NET - 1.6% 6,561 ------------- TOTAL NET ASSETS - 100.0% $ 403,366 -------------
(a) Escrowed to Maturity issues are typically backed by U.S. Government obligations. If callable, these bonds may still be subject to call at the call date and price indicated. (b) Security sold within the terms of a private placement memorandum, exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other "qualified institutional buyers." These securities have been determined to be liquid under the guidelines established by the Funds' board of directors. As of September 30, 2003, the value of these investments was $31,053,129 or 7.7% of total net assets. (c) Pre-refunded issues are typically backed by U.S. Government obligations. These bonds mature at the call date and price indicated. (d) The rate shown is the effective yield at the time of purchase. (e) Variable Rate Security - The rate shown is the rate in effect as of September 30, 2003. (f) 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. AMBAC - American Municipal Bond Assurance Corporation AMT - Alternative Minimum Tax. As of September 30, 2003, the aggregate market value of securities subject to the AMT was $31,053,129, which represents 7.7% of net assets. Cl - Class CLE - Connie Lee Insurance Company COP - Certificate of Participation FGIC - Financial Guaranty Insurance Corporation FHA - Federal Housing Authority FSA - Financial Security Assurance GO - General Obligation GTY - Guaranty MBIA - Municipal Bond Insurance Association PSFG - Permanent School Fund Guarantee RAAI - Radian Asset Assurance Inc. RB - Revenue Bond STAID - State Aid Withholding VRDO - Variable Rate Demand Obligation. Floating or variable rate obligation maturing in more than one year. The interest rate, which is based on specific, or an index of, market interest rates, is subject to change periodically and is the effective rate on September 30, 2003. This instrument may also have a demand feature which allows the recovery of principal at any time, or at specified intervals not exceeding one year, on up to 30 days' notice. Maturity date shown represents final maturity. XLCA - XL Capital Assurance Inc. 79 TAX FREE FUND
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------------ MUNICIPAL BONDS - 96.0% ALABAMA - 0.8% Bessemer, Callable 07/01/06 @ 102 (AMBAC) (RB) 5.750%, 07/01/16 $ 2,500 $ 2,785 Camden Industrial Development Board, Series A, Callable 12/01/13 @ 100 (RB) 6.125%, 12/01/24 1,000 1,045 Camden Industrial Development Board, Series B, Callable 12/01/13 @ 100 (AMT) (RB) 6.375%, 12/01/24 350 366 ------------- 4,196 ------------- ALASKA - 1.9% Alaska Energy Authority, Bradley Lake, Third Series (FSA) (RB) 6.000%, 07/01/10 1,000 1,181 6.000%, 07/01/11 4,040 4,784 Alaska State Housing Finance Corporation, Series A, Callable 12/01/05 @ 105 (MBIA) (RB) 5.700%, 12/01/11 505 526 Alaska State Housing Finance Corporation, Series A, Callable 06/01/07 @ 102 (MBIA) (RB) 5.900%, 12/01/19 1,000 1,036 Anchorage, Series B, Callable 07/01/12 @ 100 (GO) (MBIA) 5.000%, 07/01/22 2,000 2,064 ------------- 9,591 ------------- ARIZONA - 1.1% Arizona State Transportation Board, Callable 07/01/09 @ 100 (RB) 6.000%, 07/01/12 3,830 4,499 Scottsdale, Individual Development Authority, Scottsdale Heathcare, Callable 12/01/11 @ 101 (RB) 5.800%, 12/01/31 1,000 1,022 ------------- 5,521 ------------- CALIFORNIA - 3.4% California State, Callable 02/01/13 @ 100 (GO) 5.000%, 02/01/21 5,500 5,590 California State, Callable 04/01/09 @ 101 (GO) 4.750%, 04/01/22 500 492 California State Department of Water, Series A, Callable 05/01/12 @ 101 (RB) 5.375%, 05/01/22 4,500 4,672 Golden State Tobacco Securitization, Series B, Callable 06/01/13 @ 100 (RB) 5.500%, 06/01/33 3,440 3,395 Vernon, Malburg Generating Station Project, Callable 04/01/08 @ 100 (RB) 5.500%, 04/01/33 3,000 3,017 ------------- 17,166 ------------- COLORADO - 2.6% Colorado State Educational & Cultural Facilities Authority, Classical Academy Charter School Project, Callable 12/01/11 @ 100 (RB) 7.250%, 12/01/21 1,500 1,557 Colorado State Health Facilities Authority, Covenant Retirement Communities, Series B, Callable 12/01/12 @ 101 (RB) 6.125%, 12/01/33 1,150 1,154 Colorado State Health Facilities Authority, Evangelical Lutheran Health Facilities, Callable 10/01/12 @ 100 (RB) 5.900%, 10/01/27 $ 2,500 $ 2,546 Colorado State Health Facilities Authority, Parkview Medical Center, Callable 09/01/11 @ 100 (RB) 6.500%, 09/01/20 1,000 1,080 Colorado State Health Facilities Authority, Vail Valley Medical Center, Callable 01/15/12 @ 100 (RB) 5.800%, 01/15/27 1,500 1,526 The E-470 Public Highway Authority, Series B, Zero Coupon Bond (MBIA) (RB) 5.470%, 09/01/32 (a) 10,000 2,115 La Junta Hospital, Arkansas Valley Medical Center Project, Callable 04/01/09 @ 101 (RB) 6.000%, 04/01/19 1,000 1,022 Northwest Parkway Public Highway Authority, Zero Coupon Bond (AMBAC) (RB) 6.290%, 06/15/29 (a) 10,000 2,232 ------------- 13,232 ------------- FLORIDA - 3.4% Capital Trust Agency, American Opportunity, Senior A, Callable 06/01/11 @ 102 (RB) 5.750%, 06/01/23 1,000 971 Capital Trust Agency, Fort Lauderdale Project, Callable 01/01/14 @ 101 (AMT) (RB) 5.750%, 01/01/32 1,000 943 Florida State Department of Transportation, Callable 07/01/06 @ 101 (GO) 5.250%, 07/01/17 5,525 5,998 Florida State Department of Transportation, Alligator Alley, Callable 07/01/07 @ 101 (FGIC) (RB) 5.125%, 07/01/13 1,280 1,411 Martin County Health Facilities Authority, Martin Memorial Medical Center, Series A, Callable 11/15/12 @ 101 (RB) 5.750%, 11/15/22 1,350 1,357 Palm Beach County Health Facilities Authority, Boca Raton Community Hospital, Callable 12/01/11 @ 101 (RB) 5.625%, 12/01/31 1,000 1,015 Palm Beach County, Park & Recreational Facilities, Callable 11/01/06 @ 102 (FSA) (RB) 5.250%, 11/01/16 5,000 5,522 ------------- 17,217 ------------- GEORGIA - 1.2% Gainesville & Hall County Hospital Authority, Northeast Georgia Health Systems Inc. Project, Callable 05/15/11 @ 100 (RB) 5.500%, 05/15/31 5,000 5,049 Georgia Municipal Electric Authority Power, Series BB (MBIA) (RB) 5.250%, 01/01/25 1,000 1,086 ------------- 6,135 ------------- HAWAII - 1.7% Hawaii State, Series CN, Callable 03/01/07 @ 102 (FGIC) (GO) 5.500%, 03/01/14 8,000 8,876 -------------
The accompanying notes are an integral part of the financial statements. 80
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------------ ILLINOIS - 12.2% Bolingbrook, Residential Mortgages, Escrowed to Maturity (FGIC) (RB) 7.500%, 08/01/10 (b) $ 1,080 $ 1,294 Chicago, City Colleges, Zero Coupon Bond (FGIC) (GO) 5.380%, 01/01/30 (a) 10,000 2,442 Cook County, Series A (GO) (MBIA) 6.250%, 11/15/12 9,090 11,000 Cook County Community School District #97, Oak Park, Series B (FGIC) (GO) 9.000%, 12/01/11 2,235 3,128 Illinois Development Finance Authority, Adventist Health System, Callable 11/15/09 @ 101 (RB) 5.500%, 11/15/29 5,000 4,986 Illinois Health Facilities Authority, Advocate Health Care Network, Series A, Callable 08/15/07 @ 102 (MBIA) (RB) 5.800%, 08/15/16 2,500 2,805 Illinois Health Facilities Authority, Condell Medical Center, Callable 05/15/12 @ 100 (RB) 5.500%, 05/15/32 2,500 2,507 Illinois Health Facilities Authority, Covenant Retirement Communities, Callable 12/01/11 @ 101 (RB) 5.875%, 12/01/31 4,500 4,335 Illinois Health Facilities Authority, Covenant Retirement Communities, Series A, Callable 12/01/12 @ 100 (RAAI) (RB) 5.500%, 12/01/22 4,000 4,218 Illinois Health Facilities Authority, Lutheran Senior Ministries, Series A, Callable 08/15/11 @ 101 (RB) 7.375%, 08/15/31 1,000 1,013 Illinois State Development Finance Authority, Pollution Control, Series A, Pre-refunded 07/01/06 @ 102 (RB) 7.375%, 07/01/21 (c) 500 585 Illinois State Development Finance Authority, Waste Management Project (AMT) (RB) 5.850%, 02/01/07 1,000 1,063 Illinois State Educational Facilities Authority, Augustana College, Callable 10/01/07 @ 100 (CLE) (RB) 5.875%, 10/01/17 500 578 Illinois State Educational Facilities Authority, Augustana College, Callable 10/01/08 @ 100 (RB) 5.250%, 10/01/18 1,000 1,136 Illinois State, Pre-refunded 02/01/05 @ 102 (GO) (MBIA) 6.100%, 02/01/17 (c) 2,225 2,417 Illinois State, Pre-refunded 05/01/06 @ 102 (GO) (MBIA) 5.750%, 05/01/21 (c) 1,410 1,551 Illinois State, Pre-refunded 02/01/07 @ 101 (FGIC) (GO) 5.250%, 02/01/13 (c) 1,400 1,551 Illinois State Toll Highway Authority, Series A (RB) 6.300%, 01/01/12 1,000 1,194 McHenry County, Community Unit School District #200, Woodstock, Series A, Pre-refunded 01/01/08 @ 100 (FSA) (GO) 5.850%, 01/01/16 (c) 2,400 2,686 Metropolitan Pier & Exposition Authority, McCormick Place, Illinois Dedicated State Tax, Class B, Zero Coupon Bond (MBIA) (RB) 5.650%, 06/15/22 (a) $ 5,000 $ 2,487 Northern Illinois University, Auxiliary Facilities Systems, Partially Pre-refunded 04/01/07 @ 100 (FGIC) (RB) 5.700%, 04/01/16 (c) 1,000 1,103 Rock Island, Friendship Manor Project (RB) 7.000%, 06/01/06 710 706 Rock Island, Friendship Manor Project, Callable 10/01/03 @ 102 (RB) 7.200%, 06/01/13 400 401 Rockford Multifamily Housing, Rivers Edge Apartments, Series A, Callable 01/20/08 @ 102 (AMT) (GNMA) (RB) 5.875%, 01/20/38 1,215 1,219 Southern Illinois University, Housing & Auxiliary, Zero Coupon Bond, Series A (MBIA) (RB) 5.500%, 04/01/20 (a) 2,280 1,008 Springfield Electric, Callable 03/01/11 @ 101 (RB) 5.500%, 03/01/15 2,000 2,243 St. Clair County, Callable 10/01/09 @ 102 (FGIC) (GO) 6.000%, 10/01/11 2,020 2,377 ------------- 62,033 ------------- INDIANA - 2.6% Crown Point, Multi-School Building Corporation, First Mortgage (MBIA) (RB) 7.875%, 01/15/06 2,630 3,009 Indiana State Educational Facilities Authority, St. Joseph's College Project, Callable 10/01/09 @ 102 (RB) 7.000%, 10/01/29 1,000 1,054 Indiana State Municipal Power Agency, Power Supply, Series B (MBIA) (RB) 6.000%, 01/01/11 1,000 1,174 6.000%, 01/01/12 1,000 1,173 Indiana Transportation Finance Authority, Series A (AMBAC) (MLO) (RB) 5.000%, 11/01/07 2,000 2,232 Indiana Transportation Finance Authority, Series A (AMBAC) (RB) 5.750%, 06/01/12 3,185 3,723 Lake County Redevelopment Authority, Callable 02/01/05 @ 102 (MBIA) (MLO) (RB) 6.500%, 02/01/16 800 869 ------------- 13,234 ------------- IOWA - 0.5% Iowa Higher Education Loan Authority, Central College Project, Callable 10/01/11 @ 100 (RAAI) (RB) 5.500%, 10/01/31 1,500 1,561 Muscatine Electric, Escrowed to Maturity, Callable 01/01/04 @ 100 (RB) 6.700%, 01/01/13 (b) 1,000 1,190 ------------- 2,751 ------------- KENTUCKY - 0.5% Jefferson County Health Facilities, University Medical Center, Callable 07/01/07 @ 101 (MBIA) (RB) 5.500%, 07/01/17 2,500 2,757 -------------
81
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------------ LOUISIANA - 1.5% Baton Rouge Sales & Use Tax, Public Improvements, Series A, Callable 08/01/08 @ 101.50 (FGIC) (RB) 5.250%, 08/01/15 $ 2,030 $ 2,249 Jefferson Parish, Drain Sales Tax (AMBAC) (RB) 5.000%, 11/01/11 1,000 1,122 Jefferson Parish, Home Mortgage Authority, Escrowed to Maturity, Callable 02/01/04 @ 100 (FGIC) (FHA) (RB) 7.100%, 08/01/11 (b) 1,000 1,256 Lafayette, Public Improvement Sales Tax, Series B (FGIC) (RB) 7.000%, 03/01/08 1,000 1,199 Louisiana Public Facilities Authority, Tulane University of Louisiana, Series A-1, Callable 11/15/07 @ 102 (MBIA) (RB) 5.100%, 11/15/14 1,500 1,645 ------------- 7,471 ------------- MASSACHUSETTS - 2.2% Boston Industrial Development Financing Authority, Crosstown Center Project, Callable 09/01/12 @ 102 (AMT) (RB) 6.500%, 09/01/35 2,500 2,465 Massachusetts Bay Transportation Authority, Series A, Callable 03/01/07 @ 101 (FGIC) (RB) 5.000%, 03/01/12 5,795 6,330 Massachusetts Bay Transportation Authority, Series A, Callable 03/01/09 @ 101 (FGIC) (RB) 5.750%, 03/01/21 2,000 2,235 ------------- 11,030 ------------- MICHIGAN - 2.5% Dearborn Economic Development Corporation, Oakwood Obligation Group, Series A, Callable 11/15/05 @ 102 (FGIC) (RB) 5.750%, 11/15/15 2,450 2,681 Haslett Public School District, Pre-refunded 05/01/07 @ 100 (GO) (MBIA) 5.700%, 05/01/16 (c) 1,200 1,363 Lanse Creuse, Public Schools, Callable 05/01/07 @ 100 (AMBAC) (GO) 5.250%, 05/01/16 1,000 1,086 Michigan State Hospital Finance Authority, Henry Ford Health Systems, Series A, Callable 03/01/13 @ 100 (RB) 5.500%, 03/01/15 1,500 1,605 Thornapple Kellogg School Building & Site, Callable 11/01/12 @ 100 (GO) (MQSBLF) 5.500%, 05/01/14 1,485 1,692 5.500%, 05/01/16 1,810 2,049 Ypsilanti School District, Pre-refunded 05/01/07 @ 100 (FGIC) (GO) 5.600%, 05/01/12 (c) 2,000 2,267 ------------- 12,743 ------------- MINNESOTA - 6.9% Cuyuna Range Hospital District, Series A, Callable 06/01/07 @ 102 (RB) 6.000%, 06/01/29 650 618 Eden Prairie Multifamily Housing, Callable 01/20/08 @ 102 (GNMA) (RB) 5.500%, 01/20/18 500 524 Fergus Falls Health Care Facilities Authority, Lake Region Hospital, Long Term Care Facilities Project, Callable 12/01/05 @ 102 (RB) 6.500%, 12/01/25 $ 1,530 $ 1,594 Fergus Falls Health Care Facilities Authority, Series A, Callable 11/01/04 @ 102 (RB) 7.000%, 11/01/19 150 147 Glencoe Health Care Services Facilities Project, Callable 04/01/11 @ 101 (RB) 7.500%, 04/01/31 700 715 Glencoe Hospital Board, Pre-refunded 08/01/04 @ 102 (RB) 6.750%, 04/01/16 (c) 485 517 Maplewood, Carefree Cottages Project, Callable 11/01/10 @ 100 (AMT) (RB) 7.200%, 11/01/32 4,580 4,809 Minneapolis Healthcare System, Fairview Health Services, Series A, Callable 05/15/12 @ 101 (RB) 5.625%, 05/15/32 7,000 7,217 Minnesota Agriculture & Economic Development Board, Health Care System, Series A, Callable 11/15/10 @ 101 (RB) 6.375%, 11/15/29 3,000 3,232 Minnesota Agriculture & Economic Development Board, Minnesota Small Business Program, Callable 08/01/10 @ 100 (AMT) (RB) 5.550%, 08/01/16 900 909 Minnesota State, Callable 08/01/07 @ 100 (GO) 4.900%, 08/01/14 4,000 4,305 Minnesota State Higher Education Facilities Authority, Macalester College, Series 5-Q (RB) (VRDO) 1.100%, 03/01/33 1,100 1,100 Minnesota State Housing Finance Agency, Single Family Housing (AMT) (RB) 4.400%, 07/01/07 1,950 2,075 Minnesota State Housing Finance Agency, Single Family Mortgage, Callable 10/01/03 @ 102 (AMT) (RB) 6.500%, 01/01/26 310 315 Monticello, Big Lake Community Hospital, Series C, Callable 12/01/12 @ 100 (RB) 6.200%, 12/01/22 2,995 3,076 New Hope Housing & Healthcare Facilities Authority, Masonic Home North Ridge, Callable 03/01/09 @ 102 (RB) 5.750%, 03/01/15 1,600 1,600 Roseville Housing Facilities Authority, Pre-refunded 10/01/03 @ 102 (RB) 7.125%, 10/01/13 (c) 1,000 1,020 St. Anthony Housing & Redevelopment Authority, Callable 05/20/06 @ 102 (FHA) (GNMA) (RB) 6.250%, 11/20/25 1,000 1,114 ------------- 34,887 ------------- MISSOURI - 1.3% Cape Girardeau County Authority, Southeast Missouri Hospital, Callable 06/01/12 @ 100 (RB) 5.750%, 06/01/32 2,500 2,565 Missouri State Environmental Improvement & Energy Resources Authority, Amerenue Project, Series A (RB) (VRDO) 1.550%, 03/01/35 2,000 2,000
The accompanying notes are an integral part of the financial statements. 82
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------------ St. Louis Industrial Development Authority, Convention Center Project, Series A, Callable 12/15/10 @ 102 (AMT) (RB) 7.000%, 12/15/15 $ 1,000 $ 983 Sugar Creek, Lafarge North America, Series A, Callable 06/01/13 @ 101 (AMT) (RB) 5.650%, 06/01/37 1,000 972 ------------- 6,520 ------------- NEBRASKA - 1.0% Hastings Electrical Systems, Callable 05/01/11 @ 100 (FSA) (RB) 5.000%, 01/01/15 1,000 1,080 Lancaster County, Hospital Authority, Callable 06/01/11 @ 100 (AMBAC) (RB) 5.125%, 06/01/26 1,000 1,021 Nebraska Educational Finance Authority, Concordia University Project, Callable 12/15/08 @ 100 (RB) 5.250%, 12/15/15 500 516 5.350%, 12/15/18 540 554 Washington County Wastewater Facilities, Cargill Inc. Project, Callable 11/01/12 @ 101 (RB) 5.900%, 11/01/27 1,700 1,766 ------------- 4,937 ------------- NEVADA - 1.0% Carson City, Carson-Tahoe Hospital Project, Callable 09/01/12 @ 101 (RB) 5.750%, 09/01/31 5,000 4,938 ------------- NEW JERSEY - 1.6% Camden County, Municipal Utilities Authority, Series C, Callable 07/15/08 @ 101 (FGIC) (GO) 5.100%, 07/15/12 5,000 5,521 New Jersey State Transportation System, Series A, Callable 06/15/08 @ 100 (RB) 5.000%, 06/15/14 2,500 2,700 ------------- 8,221 ------------- NEW YORK - 3.2% New York, Series C, Callable 03/15/12 @ 100 (GO) 5.250%, 03/15/32 3,590 3,627 New York, Series C, Pre-refunded 03/15/12 @ 100 (GO) 5.250%, 03/15/32 (c) 6,410 7,334 New York State Thruway Authority, Series A, Callable 04/01/07 @ 102 (AMBAC) (RB) 5.250%, 04/01/14 5,000 5,532 ------------- 16,493 ------------- NORTH DAKOTA - 0.4% Fargo Health Systems, Meritcare Obligated Group, Series A, Callable 06/01/10 @ 101 (FSA) (RB) 5.600%, 06/01/21 2,000 2,162 ------------- OHIO - 2.7% Cincinnati Water System, Callable 06/01/11 @ 100 (RB) 5.000%, 12/01/20 125 131 Cleveland Waterworks, Series H, Pre-refunded 01/01/06 @ 102 (MBIA) (RB) 5.750%, 01/01/16 (c) 1,460 1,633 Greater Cleveland Regional Transportation Authority, Pre-refunded 12/01/06 @ 101 (FGIC) (GO) 5.650%, 12/01/16 (c) 2,500 2,847 Ohio State Building Authority, Administration Building Fund, Series A, Pre-refunded 10/01/04 @ 102 (MBIA) (MLO) (RB) 6.000%, 10/01/08 (c) $ 1,000 $ 1,069 6.000%, 10/01/09 (c) 1,225 1,310 Ohio State Higher Education, Series A, Callable 02/01/11 @ 100 (GO) 5.000%, 02/01/19 1,095 1,158 Ohio State Higher Education, Series B, Callable 11/01/11 @ 100 (GO) 5.000%, 11/01/15 1,250 1,359 5.000%, 11/01/16 1,500 1,623 Ohio State Water Development Authority, Callable 06/01/05 @ 101 (MBIA) (RB) 5.250%, 12/01/09 1,000 1,078 University of Cincinnati, Series A, Callable 06/01/11 @ 101 (FGIC) (RB) 5.500%, 06/01/14 1,325 1,496 ------------- 13,704 ------------- OREGON - 1.4% Washington County Unified Sewer Agency, Series 1 (FGIC) (RB) 5.750%, 10/01/10 6,110 7,165 ------------- PENNSYLVANIA - 2.0% Bucks County Water & Sewer Authority, Callable 12/01/06 @ 100 (FGIC) (RB) 5.550%, 12/01/17 1,000 1,100 Chester Upland School Authority, Series A, Callable 09/01/07 @ 100 (FSA) (RB) 5.250%, 09/01/17 2,000 2,187 Pennsylvania State, Callable 03/15/07 @ 101.50 (AMBAC) (GO) 5.125%, 09/15/11 5,000 5,559 Pennsylvania State Higher Education Facilties Authority, University of Pennsylvania Health Services, Series A, Callable 07/01/08 @ 100 (MBIA) (RB) 5.250%, 01/01/12 1,000 1,097 ------------- 9,943 ------------- PUERTO RICO - 0.1% Puerto Rico Public Improvements, Callable 07/01/10 @ 100 (GO) (MBIA) 5.750%, 07/01/26 500 587 ------------- RHODE ISLAND - 1.1% Rhode Island State, Series A, Callable 08/01/07 @ 101 (GO) (MBIA) 5.125%, 08/01/12 5,055 5,585 ------------- SOUTH CAROLINA - 0.9% Lexington County Health Services District Inc., Lexington Medical Center, Callable 11/01/13 @ 100 (RB) 5.500%, 11/01/23 2,000 2,064 South Carolina Jobs Economic Development Authority, Palmetto Health Alliance, Series A, Callable 08/01/13 @ 100 (RB) 6.125%, 08/01/23 1,250 1,254 South Carolina Jobs Economic Development Authority, Palmetto Health Alliance, Series C, Callable 08/01/13 @ 100 (RB) 6.375%, 08/01/34 1,250 1,260 ------------- 4,578 -------------
83
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------------ SOUTH DAKOTA - 1.2% Sioux Falls, Dow Rummel Village Project, Series A, Callable 11/15/12 @ 100 (RB) 6.625%, 11/15/23 $ 2,200 $ 2,181 South Dakota Economic Development Finance Authority, DTS Inc. Project, Series A, Callable 04/01/09 @ 102 (AMT) (RB) 5.500%, 04/01/19 1,055 1,072 South Dakota Housing Development Authority, Series H, Callable 05/01/10 @ 100 (FHA) (RB) 5.900%, 05/01/28 2,000 2,008 South Dakota State Health & Educational Facilities Authority, Callable 07/01/06 @ 102 (MBIA) (RB) 6.000%, 07/01/14 1,000 1,116 ------------- 6,377 ------------- TENNESSEE - 3.0% Jackson Water & Sewer, Escrowed to Maturity, Callable 10/01/03 @ 102 (RB) 6.300%, 07/01/11 (b) 2,900 3,339 Johnson City Health & Educational Facilities Authority, Series A, Callable 07/01/12 @ 103 (RB) 7.500%, 07/01/33 2,500 2,679 Shelby County Health, Educational & Housing Facilities Board, Methodist Healthcare, Callable 09/01/12 @ 100 (RB) 6.500%, 09/01/21 (d) 3,000 3,314 Sullivan County Health, Educational & Housing Facilities Board, Wellmont Health Systems Project, Callable 09/01/12 @ 101 (RB) 6.250%, 09/01/32 5,500 5,701 ------------- 15,033 ------------- TEXAS - 16.7% Abilene Health Facilities Development, Sears Methodist Retirement Project (RB) 4.900%, 11/15/03 665 664 Abilene Health Facilities Development, Sears Methodist Retirement Project, Callable 05/15/09 @ 101 (RB) 5.875%, 11/15/18 500 464 6.000%, 11/15/29 2,000 1,782 Abilene Health Facilities Development, Sears Methodist Retirement Project, Series A, Callable 11/15/08 @ 101 (RB) 5.875%, 11/15/18 2,500 2,318 Abilene Health Facilities Development, Sears Methodist Retirement Project, Series A, Callable 11/15/13 @ 101 (RB) 7.000%, 11/15/33 4,000 3,917 Bexar County Housing Finance Authority, American Opportunity Housing, Series A, Callable 01/01/11 @ 102 (MBIA) (RB) 5.800%, 01/01/31 2,000 2,082 Brazos River Authortity, Callable 04/01/13 @ 101 (AMT) (RB) 7.700%, 04/01/33 2,500 2,759 Brazos River Harbor District, Dow Chemical, Series A-5, Mandatory Put 05/15/12 @ 100 (AMT) (RB) 5.700%, 05/15/33 2,500 2,661 Crawford Education Facilities Corp., University of St. Thomas Project, Callable 10/01/12 @ 100 (RB) 5.250%, 10/01/22 $ 1,300 $ 1,298 5.375%, 10/01/27 1,750 1,721 Cypress - Fairbanks Independent School District, Callable 02/15/10 @ 100 (GO) (PSFG) (STAID) 5.500%, 02/15/18 5,000 5,519 Fort Bend Independent School District, Pre-refunded 02/15/05 @ 100 (GO) (PSFG) 5.000%, 02/15/14 (c) 500 561 Gregg County Health Facilities Development Corporation, Good Shepherd Health Systems, Series A, Callable 10/01/12 @ 100 (RB) 6.500%, 10/01/26 5,320 5,556 Harris County Health Facilities Development, Memorial Hospital Systems Project, Series A, Callable 06/01/07 @ 102 (MBIA) (RB) 5.500%, 06/01/17 8,000 8,682 5.750%, 06/01/19 2,500 2,756 Laredo Independent School District (GO) (PSFG) 6.750%, 08/01/09 2,290 2,785 Nueces County Housing Financial Corporation, Dolphins Landing Apartments Project, Series A, Callable 07/01/10 @ 102 (RB) 6.875%, 07/01/30 1,860 1,868 Red River Authority Sewer & Solidwaste Disposal, Callable 02/01/12 @ 101 (AMT) (RB) 6.100%, 02/01/22 3,775 3,778 Remington Municipal Utility District #1, Series A, Callable 09/01/08 @ 100 (GO) (RAAI) 5.800%, 09/01/25 1,000 1,079 Sam Rayburn Municipal Power Agency, Callable 10/01/12 @ 100 (RAAI) (RB) 5.750%, 10/01/21 3,800 4,113 San Antonio Independent School District, Callable 08/15/08 @ 100 (GO) (PSFG) 5.125%, 08/15/14 6,000 6,540 Spring Branch Independent School District, Callable 02/01/10 @ 100 (GO) (PSFG) 5.750%, 02/01/25 2,400 2,618 Tarrant County Housing Financial Corporation, Multifamily Housing, Fair Oaks, Callable 07/01/10 @ 102 (RB) 6.750%, 07/01/20 500 450 6.875%, 07/01/30 1,000 877 Texas Employment Community, Callable 01/15/04 @ 101 (COP) (MLO) 8.250%, 08/01/04 40 41 8.300%, 02/01/05 40 41 8.300%, 08/01/05 45 46 8.350%, 02/01/06 20 21 8.350%, 08/01/06 50 51 8.400%, 08/01/07 25 26 8.450%, 08/01/08 55 56 Texas Employment Community, Emnora Lane Project (COP) (MLO) 7.850%, 05/01/04 10 10 7.850%, 11/01/04 25 25 7.900%, 05/01/05 25 25 7.900%, 11/01/05 25 25 8.000%, 11/01/06 30 30 8.050%, 05/01/07 20 20
The accompanying notes are an integral part of the financial statements. 84
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------------ Texas State, Water Development, Callable 08/01/06 @ 100 (GO) 5.400%, 08/01/21 $ 6,750 $ 7,246 Texas Water Development Board, Series A, Callable 07/15/06 @ 100 (RB) 5.500%, 07/15/10 2,500 2,771 University of Texas Permanent University Fund, Callable 07/01/08 @ 100 (PUFG) (RB) 5.000%, 07/01/14 7,060 7,672 ------------- 84,954 ------------- UTAH - 0.2% Intermountain Power Agency, Utah Power Supply, Series A (AMBAC) (RB) 6.500%, 07/01/11 365 444 Intermountain Power Agency, Utah Power Supply, Series A, Escrowed to Maturity (AMBAC) (RB) 6.500%, 07/01/11 (b) 635 780 ------------- 1,224 ------------- VIRGINIA - 0.2% Arlington County Industrial Development Authority, Berkeley Apartments, Callable 12/01/10 @ 102 (AMT) (FNMA) (RB) 5.850%, 12/01/20 1,000 1,074 ------------- WASHINGTON - 6.9% Chelan County Public Utility District No. 1, Chelan Hydro Systems, Series A, Callable 07/01/12 @ 100 (AMBAC) (AMT) (RB) 5.450%, 07/01/37 4,000 4,104 Energy Northwest, Washington Wind Project, Callable 01/01/07 @ 103 (RB) 5.600%, 07/01/15 4,640 4,765 King County, Series F, Callable 12/01/07 @ 100 (GO) 5.125%, 12/01/14 5,000 5,452 King County School District #415, Callable 12/01/07 @ 100 (GO) (MBIA) 5.350%, 12/01/16 4,050 4,460 Snohomish County Public Utilities District #1, Escrowed to Maturity, Callable 10/01/03 @ 101 (RB) 6.750%, 01/01/12 (b) 1,000 1,223 Washington State, Series C, Callable 01/01/07 @ 100 (GO) 5.500%, 01/01/17 4,190 4,549 Washington State Motor Vehicle Fuel Tax, Series D, Callable 01/01/07 @ 100 (FGIC) (GO) 5.375%, 01/01/22 8,000 8,504 Washington State Public Power Supply System, Nuclear Project #3, Series A, Callable 07/01/07 @ 102 (FSA) (RB) 5.250%, 07/01/16 1,000 1,094 Washington State Public Power Supply System, Nuclear Project #3, Series B (RB) 7.125%, 07/01/16 600 778 ------------- 34,929 ------------- WISCONSIN - 5.4% Amery, Apple River Hospital Project, Callable 06/01/08 @ 100 (RB) 5.700%, 06/01/13 1,440 1,459 Badger Tobacco Asset Securitization, Callable 06/01/12 @ 100 (RB) 6.000%, 06/01/17 3,000 2,654 Wisconsin State, Series C, Pre-refunded 05/01/07 @ 100 (FGIC) (GO) 5.500%, 05/01/10 (c) $ 2,095 $ 2,366 Wisconsin State Health & Educational Facilities Authority, Attic Angel Obligation Group, Callable 11/15/08 @ 102 (RB) 5.750%, 11/15/27 1,000 845 Wisconsin State Health & Educational Facilities Authority, Aurora Health Care, Callable 08/15/13 @ 100 (RB) 6.400%, 04/15/33 700 705 Wisconsin State Health & Educational Facilities Authority, Aurora Medical Group Inc. Project, Callable 05/15/06 @ 102 (FSA) (RB) 5.600%, 11/15/16 2,460 2,697 Wisconsin State Health & Educational Facilities Authority, Beloit Memorial Hospital, Callable 10/01/03 @ 102 (RB) 5.800%, 07/01/09 555 567 Wisconsin State Health & Educational Facilities Authority, Franciscan Skemp Medical Center, Callable 11/15/05 @ 102 (RB) 6.125%, 11/15/15 1,000 1,101 Wisconsin State Health & Educational Facilities Authority, Marshfield Clinic, Series B, Callable 02/15/12 @ 100 (RB) 6.000%, 02/15/25 3,500 3,552 Wisconsin State Health & Educational Facilities Authority, Meriter Hospital Inc., Callable 12/01/06 @ 102 (MBIA) (RB) 6.000%, 12/01/17 2,000 2,254 Wisconsin State Health & Educational Facilities Authority, New Castle Place Project, Series A, Callable 12/01/11 @ 101 (RB) 7.000%, 12/01/31 2,000 2,005 Wisconsin State Health & Educational Facilities Authority, Synergy Health Inc., Callable 08/15/13 @ 100 (RB) 6.000%, 11/15/23 1,500 1,532 Wisconsin State Health & Educational Facilities Authority, Wheaton Franciscan Services, Callable 02/15/12 @ 100 (RB) 5.750%, 08/15/30 5,500 5,689 ------------- 27,426 ------------- WYOMING - 0.7% Teton County Hospital District, St. John's Medical Center, Callable 06/01/12 @ 101 (RB) 6.750%, 12/01/22 2,100 2,113 6.750%, 12/01/27 1,500 1,465 ------------- 3,578 ------------- TOTAL MUNICIPAL BONDS (Cost $453,493) 488,268 -------------
85
DESCRIPTION SHARES VALUE (000) - ------------------------------------------------------------------------------------------------------ RELATED PARTY MONEY MARKET FUND - 0.6% First American Tax Free Obligations Fund, Cl Y (e) 2,815,711 $ 2,816 ------------- TOTAL RELATED PARTY MONEY MARKET FUND (Cost $2,816) 2,816 ------------- TOTAL INVESTMENTS - 96.6% (Cost $456,309) 491,084 ------------- OTHER ASSETS AND LIABILITIES, NET - 3.4% 17,372 ------------- TOTAL NET ASSETS - 100.0% $ 508,456 -------------
(a) The rate shown is the effective yield at the time of purchase. (b) Escrowed to Maturity issues are typically backed by U.S. Government obligations. If callable, these bonds may still be subject to call at the call date and price indicated. (c) Pre-refunded issues are typically backed by U.S. Government obligations. These bonds mature at the call date and price indicated. (d) Inverse Floating Rate Security - Security pays interest at rates that increase (decrease) in the same magnitude as, or in a multiple of, a decrease (increase) in the market rate paid. See note 2 in Notes to Financial Statements. (e) 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. AMBAC - American Municipal Bond Assurance Corporation AMT - Alternative Minimum Tax. As of September 30, 2003, the aggregate market value of securities subject to the AMT was $31,567,993, which represents 6.2% of net assets. Cl - Class CLE - Connie Lee Insurance Company COP - Certificate of Participation FGIC - Financial Guaranty Insurance Corporation FHA - Federal Housing Authority FNMA - Federal National Mortgage Association FSA - Financial Security Assurance GNMA - Government National Mortgage Association GO - General Obligation MBIA - Municipal Bond Insurance Association MLO - Municipal Lease Obligation MQSBLF - Michigan Qualified School Board Loan Fund Program PSFG - Permanent School Fund Guarantee PUFG - Permanent University Fund Guarantee RAAI - Radian Asset Assurance Inc. RB - Revenue Bond STAID - State Aid Withholding VRDO - Variable Rate Demand Obligation. Floating or variable rate obligation maturing in more than one year. The interest rate, which is based on specific, or an index of, market interest rates, is subject to change periodically and is the effective rate on September 30, 2003. This instrument may also have a demand feature which allows the recovery of principal at any time, or at specified intervals not exceeding one year, on up to 30 days' notice. Maturity date shown represents final maturity. The accompanying notes are an integral part of the financial statements. 86 (This page has been left blank intentionally.) STATEMENTS OF ASSETS AND LIABILITIES September 30, 2003, in thousands, except per share data
CALIFORNIA COLORADO ARIZONA INTERMEDIATE CALIFORNIA INTERMEDIATE TAX FREE FUND TAX FREE FUND TAX FREE FUND TAX FREE FUND - ------------------------------------------------------------------------------------------------------------------ ASSETS: Investments in unaffiliated securities, at value* $ 22,300 $ 48,772 $ 27,159 $ 68,672 Investments in affiliated securities, at value** -- -- -- 540 Cash -- -- -- -- Dividends and interest receivable 275 581 325 974 Receivable for investment securities sold 1,117 -- -- 506 Capital shares sold 87 10 52 508 Prepaid expenses and other assets 5 5 5 5 - ------------------------------------------------------------------------------------------------------------------ TOTAL ASSETS 23,784 49,368 27,541 71,205 ================================================================================================================== LIABILITIES: Bank overdraft -- -- -- -- Payable for investment securities purchased 745 450 -- 502 Capital shares redeemed 3 24 38 248 Payable for advisory, co-administration, and custodian fees 4 31 15 43 Payable for distribution and shareholder servicing fees 3 1 1 3 - ------------------------------------------------------------------------------------------------------------------ TOTAL LIABILITIES 755 506 54 796 ================================================================================================================== NET ASSETS $ 23,029 $ 48,862 $ 27,487 $ 70,409 ================================================================================================================== COMPOSITION OF NET ASSETS: Portfolio capital $ 21,176 $ 44,974 $ 25,264 $ 65,492 Undistributed net investment income 33 36 33 63 Accumulated net realized gain (loss) on investments 99 152 186 (463) Net unrealized appreciation of investments 1,721 3,700 2,004 5,317 - ------------------------------------------------------------------------------------------------------------------ NET ASSETS $ 23,029 $ 48,862 $ 27,487 $ 70,409 ================================================================================================================== *Investments in unaffiliated securities, at cost $ 20,579 $ 45,072 $ 25,155 $ 63,355 **Investments in affiliated securities, at cost -- -- -- 540 CLASS A: Net assets $ 11,928 $ 4,262 $ 11,143 $ 22,555 Shares issued and outstanding ($0.0001 par value - 2 billion authorized) 1,053 401 978 2,036 Net asset value and redemption price per share $ 11.33 $ 10.64 $ 11.40 $ 11.08 Maximum offering price per share (1) $ 11.83 $ 10.88 $ 11.91 $ 11.34 CLASS C: Net assets $ 1,857 -- $ 1,101 -- Shares issued and outstanding ($0.0001 par value - 2 billion authorized) 164 -- 96 -- Net asset value and redemption price per share (2) $ 11.31 -- $ 11.41 -- Maximum offering price per share (1) $ 11.42 -- $ 11.53 -- CLASS Y: Net assets $ 9,244 $ 44,600 $ 15,243 $ 47,854 Shares issued and outstanding ($0.0001 par value - 2 billion authorized) 816 4,182 1,337 4,330 Net asset value, offering price, and redemption price per share $ 11.33 $ 10.66 $ 11.40 $ 11.05 - ------------------------------------------------------------------------------------------------------------------
(1) The offering price is calculated by dividing the net asset value by 1 minus the maximum sales charge. For a description of front-end sales charges, see note 1 in Notes to Financial Statements. (2) Class C has a contingent deferred sales charge. For a description of this sales charge, see notes 1 and 3 in Notes to Financial Statements. The accompanying notes are an integral part of the financial statements. 88
MINNESOTA COLORADO INTERMEDIATE INTERMEDIATE MINNESOTA MISSOURI TAX FREE FUND TAX FREE FUND TAX FREE FUND TAX FREE FUND TAX FREE FUND - -------------------------------------------------------------------------------------------------------------------------------- ASSETS: Investments in unaffiliated securities, at value* $ 26,010 $ 726,680 $ 267,426 $ 175,033 $ 194,668 Investments in affiliated securities, at value** 1,119 611 -- -- -- Cash -- -- -- 91 6 Dividends and interest receivable 355 9,492 2,900 2,539 2,558 Receivable for investment securities sold 166 862 -- 8,481 -- Capital shares sold 5 631 21 9 37 Prepaid expenses and other assets 5 18 9 9 8 - -------------------------------------------------------------------------------------------------------------------------------- TOTAL ASSETS 27,660 738,294 270,356 186,162 197,277 ================================================================================================================================ LIABILITIES: Bank overdraft -- -- -- 91 -- Payable for investment securities purchased -- 4,352 -- -- 542 Capital shares redeemed -- 2,293 192 208 94 Payable for advisory, co-administration, and custodian fees 12 420 158 112 121 Payable for distribution and shareholder servicing fees 5 4 4 26 6 - -------------------------------------------------------------------------------------------------------------------------------- TOTAL LIABILITIES 17 7,069 354 437 763 ================================================================================================================================ NET ASSETS $ 27,643 $ 731,225 $ 270,002 $ 185,725 $ 196,514 ================================================================================================================================ COMPOSITION OF NET ASSETS: Portfolio capital $ 24,859 $ 671,628 $ 251,713 $ 173,619 $ 183,756 Undistributed net investment income 74 584 125 474 84 Accumulated net realized gain (loss) on investments 187 152 491 1,349 494 Net unrealized appreciation of investments 2,523 58,861 17,673 10,283 12,180 - -------------------------------------------------------------------------------------------------------------------------------- NET ASSETS $ 27,643 $ 731,225 $ 270,002 $ 185,725 $ 196,514 ================================================================================================================================ *Investments in unaffiliated securities, at cost $ 23,487 $ 667,819 $ 249,753 $ 164,750 $ 182,488 **Investments in affiliated securities, at cost 1,119 611 -- -- -- CLASS A: Net assets $ 13,843 $ 34,231 $ 31,044 $ 125,916 $ 28,141 Shares issued and outstanding ($0.0001 par value - 2 billion authorized) 1,196 3,030 2,973 11,101 2,275 Net asset value and redemption price per share $ 11.57 $ 11.30 $ 10.44 $ 11.34 $ 12.37 Maximum offering price per share (1) $ 12.08 $ 11.56 $ 10.68 $ 11.84 $ 12.92 CLASS C: Net assets $ 4,284 -- -- $ 11,951 $ 279 Shares issued and outstanding ($0.0001 par value - 2 billion authorized) 371 -- -- 1,057 22 Net asset value and redemption price per share (2) $ 11.56 -- -- $ 11.31 $ 12.35 Maximum offering price per share (1) $ 11.68 -- -- $ 11.41 $ 12.47 CLASS Y: Net assets $ 9,516 $ 696,994 $ 238,958 $ 47,858 $ 168,094 Shares issued and outstanding ($0.0001 par value - 2 billion authorized) 821 61,806 22,987 4,223 13,583 Net asset value, offering price, and redemption price per share $ 11.59 $ 11.28 $ 10.40 $ 11.33 $ 12.38 - -------------------------------------------------------------------------------------------------------------------------------- OREGON NEBRASKA OHIO INTERMEDIATE SHORT TAX FREE FUND TAX FREE FUND TAX FREE FUND TAX FREE FUND TAX FREE FUND - -------------------------------------------------------------------------------------------------------------------------------- ASSETS: Investments in unaffiliated securities, at value* $ 33,521 $ 39,931 $ 151,142 $ 381,792 $ 488,268 Investments in affiliated securities, at value** 1,683 -- 830 15,013 2,816 Cash -- -- -- 490 3,197 Dividends and interest receivable 438 596 2,140 4,968 7,290 Receivable for investment securities sold -- -- 1,332 -- 7,142 Capital shares sold 58 19 902 2,480 97 Prepaid expenses and other assets 6 5 7 13 67 - -------------------------------------------------------------------------------------------------------------------------------- TOTAL ASSETS 35,706 40,551 156,353 404,756 508,877 ================================================================================================================================ LIABILITIES: Bank overdraft -- -- -- -- -- Payable for investment securities purchased 1,012 -- 1,095 1,100 -- Capital shares redeemed 33 -- 733 103 113 Payable for advisory, co-administration, and custodian fees 14 22 91 186 297 Payable for distribution and shareholder servicing fees 1 -- 1 1 11 - -------------------------------------------------------------------------------------------------------------------------------- TOTAL LIABILITIES 1,060 22 1,920 1,390 421 ================================================================================================================================ NET ASSETS $ 34,646 $ 40,529 $ 154,433 $ 403,366 $ 508,456 ================================================================================================================================ COMPOSITION OF NET ASSETS: Portfolio capital $ 32,689 $ 38,639 $ 143,476 $ 387,799 $ 468,389 Undistributed net investment income 40 2 67 48 461 Accumulated net realized gain (loss) on investments 123 369 1,108 2,432 4,831 Net unrealized appreciation of investments 1,794 1,519 9,782 13,087 34,775 - -------------------------------------------------------------------------------------------------------------------------------- NET ASSETS $ 34,646 $ 40,529 $ 154,433 $ 403,366 $ 508,456 ================================================================================================================================ *Investments in unaffiliated securities, at cost $ 31,727 $ 38,412 $ 141,360 $ 368,705 $ 453,493 **Investments in affiliated securities, at cost 1,683 -- 830 15,013 2,816 CLASS A: Net assets $ 4,869 $ 849 $ 8,189 $ 6,448 $ 42,942 Shares issued and outstanding ($0.0001 par value - 2 billion authorized) 457 81 785 633 3,806 Net asset value and redemption price per share $ 10.66 $ 10.54 $ 10.43 $ 10.18 $ 11.28 Maximum offering price per share (1) $ 11.13 $ 11.01 $ 10.67 $ 10.41 $ 11.78 CLASS C: Net assets $ 1,657 $ 215 -- -- $ 4,880 Shares issued and outstanding ($0.0001 par value - 2 billion authorized) 157 20 -- -- 434 Net asset value and redemption price per share (2) $ 10.58 $ 10.44 -- -- $ 11.24 Maximum offering price per share (1) $ 10.69 $ 10.55 -- -- $ 11.35 CLASS Y: Net assets $ 28,120 $ 39,465 $ 146,244 $ 396,918 $ 460,634 Shares issued and outstanding ($0.0001 par value - 2 billion authorized) 2,639 3,741 14,018 38,987 40,787 Net asset value, offering price, and redemption price per share $ 10.65 $ 10.55 $ 10.43 $ 10.18 $ 11.29 - --------------------------------------------------------------------------------------------------------------------------------
89 STATEMENTS OF OPERATIONS For the fiscal year ended september 30, 2003, in thousands
CALIFORNIA COLORADO ARIZONA INTERMEDIATE CALIFORNIA INTERMEDIATE TAX FREE FUND TAX FREE FUND TAX FREE FUND TAX FREE FUND - ------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME: Interest from unaffiliated securities $ 1,282 $ 2,344 $ 1,337 $ 3,327 Interest from affiliated securities 1 -- -- 11 - ------------------------------------------------------------------------------------------------------------------ TOTAL INVESTMENT INCOME 1,283 2,344 1,337 3,338 ================================================================================================================== EXPENSES: Investment advisory fees 134 248 136 360 Co-administration fees and expenses (including per account transfer agency fees) 77 140 81 202 Custodian fees 3 5 3 7 Directors' fees -- 1 -- 1 Registration fees 7 2 3 3 Professional fees 1 2 1 3 Printing 1 2 1 2 Other 2 2 1 2 Distribution and shareholder servicing fees - Class A 35 11 30 56 Distribution and shareholder servicing fees - Class C 25 -- 11 -- - ------------------------------------------------------------------------------------------------------------------ TOTAL EXPENSES 285 413 267 636 ================================================================================================================== Less: Fee Waivers (100) (58) (94) (99) - ------------------------------------------------------------------------------------------------------------------ TOTAL NET EXPENSES 185 355 173 537 ================================================================================================================== INVESTMENT INCOME - NET 1,098 1,989 1,164 2,801 - ------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS - NET: Net realized gain on investments 99 161 186 9 Net realized loss on redemption in-kind -- -- -- -- Net increase from payment by affiliate and net losses realized on the disposal of investments in violation of restrictions (2) -- -- -- -- Net change in unrealized appreciation or depreciation of investments (262) (843) (540) (128) - ------------------------------------------------------------------------------------------------------------------ NET GAIN (LOSS) ON INVESTMENTS (163) (682) (354) (119) ================================================================================================================== NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 935 $ 1,307 $ 810 $ 2,682 ==================================================================================================================
(1) Commenced operations on October 25, 2002. (2) See note 6 in Notes to Financial Statements for additional information. The accompanying notes are an integral part of the financial statements. 90
MINNESOTA COLORADO INTERMEDIATE INTERMEDIATE MINNESOTA MISSOURI TAX FREE FUND TAX FREE FUND TAX FREE FUND TAX FREE FUND TAX FREE FUND - --------------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Interest from unaffiliated securities $ 1,488 $ 34,241 $ 12,649 $ 10,020 $ 9,059 Interest from affiliated securities 5 94 -- 4 1 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT INCOME 1,493 34,335 12,649 10,024 9,060 ================================================================================================================================= EXPENSES: Investment advisory fees 150 3,610 1,343 964 977 Co-administration fees and expenses (including per account transfer agency fees) 86 2,020 752 541 548 Custodian fees 3 72 27 19 20 Directors' fees -- 11 4 3 3 Registration fees 4 7 -- 8 9 Professional fees 1 28 9 7 7 Printing 1 24 8 7 7 Other 2 16 7 9 5 Distribution and shareholder servicing fees - Class A 41 80 66 324 69 Distribution and shareholder servicing fees - Class C 42 -- -- 124 2 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL EXPENSES 330 5,868 2,216 2,006 1,647 ================================================================================================================================= Less: Fee Waivers (113) (765) (297) (251) (209) - --------------------------------------------------------------------------------------------------------------------------------- TOTAL NET EXPENSES 217 5,103 1,919 1,755 1,438 ================================================================================================================================= INVESTMENT INCOME - NET 1,276 29,232 10,730 8,269 7,622 - --------------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS - NET: Net realized gain on investments 224 1,153 584 1,349 699 Net realized loss on redemption in-kind -- -- -- -- (102) Net increase from payment by affiliate and net losses realized on the disposal of investments in violation of restrictions (2) -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (518) 2,929 (1,539) (2,480) (482) - --------------------------------------------------------------------------------------------------------------------------------- NET GAIN (LOSS) ON INVESTMENTS (294) 4,082 (955) (1,131) 115 ================================================================================================================================= NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 982 $ 33,314 $ 9,775 $ 7,138 $ 7,737 ================================================================================================================================= OREGON NEBRASKA OHIO INTERMEDIATE SHORT TAX FREE FUND TAX FREE FUND TAX FREE FUND TAX FREE FUND(1) TAX FREE FUND - ---------------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Interest from unaffiliated securities $ 1,573 $ 1,681 $ 7,004 $ 12,102 $ 27,006 Interest from affiliated securities 5 6 5 109 60 - ---------------------------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT INCOME 1,578 1,687 7,009 12,211 27,066 ================================================================================================================================== EXPENSES: Investment advisory fees 171 197 775 1,705 2,624 Co-administration fees and expenses (including per account transfer agency fees) 97 113 432 956 1,467 Custodian fees 4 4 15 34 53 Directors' fees 1 -- 2 5 8 Registration fees 4 -- 1 -- 10 Professional fees 1 15 5 13 18 Printing 1 1 5 11 20 Other 2 2 5 5 14 Distribution and shareholder servicing fees - Class A 11 1 20 5 108 Distribution and shareholder servicing fees - Class C 13 1 -- -- 61 - ---------------------------------------------------------------------------------------------------------------------------------- TOTAL EXPENSES 305 334 1,260 2,734 4,383 ================================================================================================================================== Less: Fee Waivers (114) (135) (163) (686) (562) - ---------------------------------------------------------------------------------------------------------------------------------- TOTAL NET EXPENSES 191 199 1,097 2,048 3,821 ================================================================================================================================== INVESTMENT INCOME - NET 1,387 1,488 5,912 10,163 23,245 - ---------------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS - NET: Net realized gain on investments 123 369 1,155 2,432 4,886 Net realized loss on redemption in-kind -- -- -- -- -- Net increase from payment by affiliate and net losses realized on the disposal of investments in violation of restrictions (2) -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (212) (413) (1,811) 13,087 (6,702) - ---------------------------------------------------------------------------------------------------------------------------------- NET GAIN (LOSS) ON INVESTMENTS (89) (44) (656) 15,519 (1,816) ================================================================================================================================== NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 1,298 $ 1,444 $ 5,256 $ 25,682 $ 21,429 ==================================================================================================================================
91 STATEMENTS OF CHANGES IN NET ASSETS in thousands
CALIFORNIA ARIZONA INTERMEDIATE TAX FREE FUND TAX FREE FUND - -------------------------------------------------------------------------------------------------------------------- 10/01/02 10/01/01 10/01/02 10/01/01 TO TO TO TO 9/30/03 9/30/02 9/30/03 9/30/02 - -------------------------------------------------------------------------------------------------------------------- OPERATIONS: Investment income - net $ 1,098 $ 958 $ 1,989 $ 1,970 Net realized gain (loss) on investments 99 78 161 179 Net change in unrealized appreciation or depreciation of investments (262) 846 (843) 1,625 - -------------------------------------------------------------------------------------------------------------------- Net increase in net assets resulting from operations 935 1,882 1,307 3,774 - -------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Investment income - net: Class A (551) (520) (174) (173) Class C (88) (107) -- -- Class Y (443) (334) (1,791) (1,803) Net realized gain on investments: Class A (32) (20) (10) -- Class C (6) (4) -- -- Class Y (29) (10) (93) -- Return of capital: Class A -- -- -- -- Class Y -- -- -- -- - -------------------------------------------------------------------------------------------------------------------- Total distributions (1,149) (995) (2,068) (1,976) ==================================================================================================================== CAPITAL SHARE TRANSACTIONS (1): Class A: Proceeds from sales 5,152 3,094 1,412 1,679 Reinvestment of distributions 548 509 145 125 Payments for redemptions (6,083) (5,594) (2,080) (504) - -------------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets from Class A transactions (383) (1,991) (523) 1,300 - -------------------------------------------------------------------------------------------------------------------- Class C: Proceeds from sales 385 1,205 -- -- Reinvestment of distributions 90 108 -- -- Payments for redemptions (1,494) (522) -- -- - -------------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets from Class C transactions (1,019) 791 -- -- - -------------------------------------------------------------------------------------------------------------------- Class Y: Proceeds from sales 3,295 5,213 4,535 5,825 Reinvestment of distributions 37 7 42 8 Payments for redemptions (4,666) (724) (4,513) (5,888) Shares issued in connection with the acquisition of Common Trust Fund net assets -- -- -- -- - -------------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets from Class Y transactions (1,334) 4,496 64 (55) - -------------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets from capital share transactions (2,736) 3,296 (459) 1,245 - -------------------------------------------------------------------------------------------------------------------- Total increase (decrease) in net assets (2,950) 4,183 (1,220) 3,043 NET ASSETS AT BEGINNING OF PERIOD 25,979 21,796 50,082 47,039 ==================================================================================================================== NET ASSETS AT END OF PERIOD $ 23,029 $ 25,979 $ 48,862 $ 50,082 ==================================================================================================================== UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME AT END OF PERIOD $ 33 $ 17 $ 36 $ 12 ====================================================================================================================
(1) See note 4 in Notes to Financial Statements for additional Information. The accompanying notes are an integral part of the financial statements. 92
COLORADO CALIFORNIA INTERMEDIATE TAX FREE FUND TAX FREE FUND - ---------------------------------------------------------------------------------------------------------------------- 10/01/02 10/01/01 10/01/02 10/01/01 TO TO TO TO 9/30/03 9/30/02 9/30/03 9/30/02 - ---------------------------------------------------------------------------------------------------------------------- OPERATIONS: Investment income - net $ 1,164 $ 1,163 $ 2,801 $ 2,682 Net realized gain (loss) on investments 186 159 9 113 Net change in unrealized appreciation or depreciation of investments (540) 975 (128) 1,672 - ---------------------------------------------------------------------------------------------------------------------- Net increase in net assets resulting from operations 810 2,297 2,682 4,467 - ---------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Investment income - net: Class A (492) (705) (879) (512) Class C (41) (29) -- -- Class Y (632) (421) (2,017) (2,072) Net realized gain on investments: Class A (76) (84) -- -- Class C (7) (3) -- -- Class Y (77) (33) -- -- Return of capital: Class A -- -- -- -- Class Y -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------- Total distributions (1,325) (1,275) (2,896) (2,584) ====================================================================================================================== CAPITAL SHARE TRANSACTIONS (1): Class A: Proceeds from sales 1,401 1,655 19,547 11,043 Reinvestment of distributions 481 698 681 338 Payments for redemptions (3,414) (8,044) (12,878) (4,889) - ---------------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets from Class A transactions (1,532) (5,691) 7,350 6,492 - ---------------------------------------------------------------------------------------------------------------------- Class C: Proceeds from sales 153 1,180 -- -- Reinvestment of distributions 47 32 -- -- Payments for redemptions (189) (789) -- -- - ---------------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets from Class C transactions 11 423 -- -- - ---------------------------------------------------------------------------------------------------------------------- Class Y: Proceeds from sales 7,475 5,495 10,796 12,937 Reinvestment of distributions 51 12 11 -- Payments for redemptions (3,925) (851) (11,176) (13,897) Shares issued in connection with the acquisition of Common Trust Fund net assets -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets from Class Y transactions 3,601 4,656 (369) (960) - ---------------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets from capital share transactions 2,080 (612) 6,981 5,532 - ---------------------------------------------------------------------------------------------------------------------- Total increase (decrease) in net assets 1,565 410 6,767 7,415 NET ASSETS AT BEGINNING OF PERIOD 25,922 25,512 63,642 56,227 ====================================================================================================================== NET ASSETS AT END OF PERIOD $ 27,487 $ 25,922 $ 70,409 $ 63,642 ====================================================================================================================== UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME AT END OF PERIOD $ 33 $ 35 $ 63 $ 158 ====================================================================================================================== COLORADO INTERMEDIATE TAX FREE FUND TAX FREE FUND - ------------------------------------------------------------------------------------------------------------------- 10/01/02 10/01/01 10/01/02 10/01/01 TO TO TO TO 9/30/03 9/30/02 9/30/03 9/30/02 - ------------------------------------------------------------------------------------------------------------------- OPERATIONS: Investment income - net $ 1,276 $ 1,254 $ 29,232 $ 19,860 Net realized gain (loss) on investments 224 (37) 1,153 1,115 Net change in unrealized appreciation or depreciation of investments (518) 1,598 2,929 17,459 - ------------------------------------------------------------------------------------------------------------------- Net increase in net assets resulting from operations 982 2,815 33,314 38,434 - ------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Investment income - net: Class A (673) (866) (1,224) (952) Class C (159) (98) -- -- Class Y (415) (279) (27,420) (19,122) Net realized gain on investments: Class A -- (12) -- -- Class C -- (1) -- -- Class Y -- (3) -- -- Return of capital: Class A -- -- -- (67) Class Y -- -- -- (1,095) - ------------------------------------------------------------------------------------------------------------------- Total distributions (1,247) (1,259) (28,644) (21,236) ======================================================================================== ========================== CAPITAL SHARE TRANSACTIONS (1): Class A: Proceeds from sales 1,122 2,520 15,542 12,166 Reinvestment of distributions 625 770 935 750 Payments for redemptions (7,321) (5,216) (12,029) (7,229) - ------------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets from Class A transactions (5,574) (1,926) 4,448 5,687 - ---------------------------------------------------------------------------------------- -------------------------- Class C: Proceeds from sales 1,375 2,026 -- -- Reinvestment of distributions 141 93 -- -- Payments for redemptions (934) (277) -- -- - ------------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets from Class C transactions 582 1,842 -- -- - ---------------------------------------------------------------------------------------- -------------------------- Class Y: Proceeds from sales 1,670 8,424 133,415 115,817 Reinvestment of distributions 14 6 1,827 1,823 Payments for redemptions (1,366) (1,491) (141,567) (107,074) Shares issued in connection with the acquisition of Common Trust Fund net assets -- -- 213,002 -- - ------------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets from Class Y transactions 318 6,939 206,677 10,566 - ---------------------------------------------------------------------------------------- -------------------------- Increase (decrease) in net assets from capital share transactions (4,674) 6,855 211,125 16,253 - ------------------------------------------------------------------------------------------------------------------- Total increase (decrease) in net assets (4,939) 8,411 215,795 33,451 NET ASSETS AT BEGINNING OF PERIOD 32,582 24,171 515,430 481,979 =================================================================================================================== NET ASSETS AT END OF PERIOD $ 27,643 $ 32,582 $ 731,225 $ 515,430 =================================================================================================================== UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME AT END OF PERIOD $ 74 $ 45 $ 584 $ (4) =================================================================================================================== MINNESOTA INTERMEDIATE TAX FREE FUND - ---------------------------------------------------------------------------------------- 10/01/02 10/01/01 TO TO 9/30/03 9/30/02 - ---------------------------------------------------------------------------------------- OPERATIONS: Investment income - net $ 10,730 $ 11,614 Net realized gain (loss) on investments 584 664 Net change in unrealized appreciation or depreciation of investments (1,539) 6,657 - ---------------------------------------------------------------------------------------- Net increase in net assets resulting from operations 9,775 18,935 - ---------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Investment income - net: Class A (1,050) (642) Class C -- -- Class Y (10,004) (10,528) Net realized gain on investments: Class A (37) -- Class C -- -- Class Y (395) -- Return of capital: Class A -- -- Class Y -- -- - ---------------------------------------------------------------------------------------- Total distributions (11,486) (11,170) ======================================================================================== CAPITAL SHARE TRANSACTIONS (1): Class A: Proceeds from sales 20,400 8,163 Reinvestment of distributions 775 390 Payments for redemptions (9,945) (1,625) - ---------------------------------------------------------------------------------------- Increase (decrease) in net assets from Class A transactions 11,230 6,928 - ---------------------------------------------------------------------------------------- Class C: Proceeds from sales -- -- Reinvestment of distributions -- -- Payments for redemptions -- -- - ---------------------------------------------------------------------------------------- Increase (decrease) in net assets from Class C transactions -- -- - ---------------------------------------------------------------------------------------- Class Y: Proceeds from sales 39,846 27,781 Reinvestment of distributions 331 275 Payments for redemptions (51,205) (39,585) Shares issued in connection with the acquisition of Common Trust Fund net assets -- -- - ---------------------------------------------------------------------------------------- Increase (decrease) in net assets from Class Y transactions (11,028) (11,529) - ---------------------------------------------------------------------------------------- Increase (decrease) in net assets from capital share transactions 202 (4,601) - ---------------------------------------------------------------------------------------- Total increase (decrease) in net assets (1,509) 3,164 NET ASSETS AT BEGINNING OF PERIOD 271,511 268,347 ======================================================================================== NET ASSETS AT END OF PERIOD $ 270,002 $ 271,511 ======================================================================================== UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME AT END OF PERIOD $ 125 $ 449 ========================================================================================
93
MINNESOTA MISSOURI TAX FREE FUND TAX FREE FUND - ------------------------------------------------------------------------------------------------------------------ 10/01/02 10/01/01 10/01/02 10/01/01 TO TO TO TO 9/30/03 9/30/02 9/30/03 9/30/02 - ------------------------------------------------------------------------------------------------------------------ OPERATIONS: Investment income - net $ 8,269 $ 7,951 $ 7,622 $ 6,539 Net realized gain on investments 1,349 483 699 1,082 Net realized loss on redemption in-kind -- -- (102) -- Net increase from payment by affiliate and net losses realized on the disposal of investments in violation of restrictions (2) -- -- -- -- Net change in unrealized appreciation or depreciation of investments (2,480) 5,644 (482) 5,188 - ------------------------------------------------------------------------------------------------------------------ Net increase in net assets resulting from operations 7,138 14,078 7,737 12,809 - ------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Investment income - net: Class A (5,192) (5,320) (1,017) (917) Class C (450) (364) (8) -- Class Y (2,153) (2,297) (6,513) (5,848) Net realized gain on investments: Class A (307) (152) (138) (73) Class C (28) (9) (1) -- Class Y (121) (65) (721) (472) Return of capital: Class A -- -- -- -- Class Y -- -- -- -- - ------------------------------------------------------------------------------------------------------------------ Total distributions (8,251) (8,207) (8,398) (7,310) - ------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS (3): Class A: Proceeds from sales 17,441 41,019 6,019 4,237 Reinvestment of distributions 5,120 5,167 655 592 Payments for redemptions (31,535) (21,731) (4,745) (1,773) - ------------------------------------------------------------------------------------------------------------------ Increase (decrease) in net assets from Class A transactions (8,974) 24,455 1,929 3,056 - ------------------------------------------------------------------------------------------------------------------ Class C: Proceeds from sales 3,135 5,653 251 21 Reinvestment of distributions 446 352 8 -- Payments for redemptions (3,279) (1,035) (2) -- - ------------------------------------------------------------------------------------------------------------------ Increase (decrease) in net assets from Class C transactions 302 4,970 257 21 - ------------------------------------------------------------------------------------------------------------------ Class Y: Proceeds from sales 5,315 13,298 19,318 33,932 Reinvestment of distributions 266 300 363 227 Payments for redemptions (12,019) (9,666) (26,019) (26,162) Shares issued in connection with the acquisition of Common Trust Fund net assets -- -- 32,466 -- - ------------------------------------------------------------------------------------------------------------------ Increase (decrease) in net assets from Class Y transactions (6,438) 3,932 26,128 7,997 - ------------------------------------------------------------------------------------------------------------------ Increase (decrease) in net assets from capital share transactions (15,110) 33,357 28,314 11,074 - ------------------------------------------------------------------------------------------------------------------ Total increase (decrease) in net assets (16,223) 39,228 27,653 16,573 NET ASSETS AT BEGINNING OF PERIOD 201,948 162,720 168,861 152,288 ================================================================================================================== NET ASSETS AT END OF PERIOD $ 185,725 $ 201,948 $ 196,514 $ 168,861 ================================================================================================================== UNDISTRIBUTED NET INVESTMENT INCOME AT END OF PERIOD $ 474 $ -- $ 84 $ -- ==================================================================================================================
(1) Commencement of operations. (2) See note 6 in Notes to Financial Statements for additional information. (3) See note 4 in Notes to Financial Statements for additional information. The accompanying notes are an integral part of the financial statements. 94
NEBRASKA OHIO TAX FREE FUND TAX FREE FUND - ------------------------------------------------------------------------------------------------------------------ 10/01/02 10/01/01 10/01/02 4/30/02 (1) TO TO TO TO 9/30/03 9/30/02 9/30/03 9/30/02 - ------------------------------------------------------------------------------------------------------------------ OPERATIONS: Investment income - net $ 1,387 $ 1,254 $ 1,488 $ 531 Net realized gain on investments 123 44 369 17 Net realized loss on redemption in-kind -- -- -- -- Net increase from payment by affiliate and net losses realized on the disposal of investments in violation of restrictions (2) -- -- -- -- Net change in unrealized appreciation or depreciation of investments (212) 1,520 (413) 1,932 - ------------------------------------------------------------------------------------------------------------------ Net increase in net assets resulting from operations 1,298 2,818 1,444 2,480 - ------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Investment income - net: Class A (173) (203) (20) (3) Class C (43) (21) (4) -- Class Y (1,145) (1,016) (1,462) (545) Net realized gain on investments: Class A (3) -- -- -- Class C (1) -- -- -- Class Y (21) -- -- -- Return of capital: Class A -- -- -- -- Class Y -- -- -- (5) - ------------------------------------------------------------------------------------------------------------------ Total distributions (1,386) (1,240) (1,486) (553) - ------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS (3): Class A: Proceeds from sales 1,001 720 439 435 Reinvestment of distributions 110 129 9 3 Payments for redemptions (1,117) (1,271) (60) -- - ------------------------------------------------------------------------------------------------------------------ Increase (decrease) in net assets from Class A transactions (6) (422) 388 438 - ------------------------------------------------------------------------------------------------------------------ Class C: Proceeds from sales 785 711 213 1 Reinvestment of distributions 38 20 1 -- Payments for redemptions (151) (18) -- -- - ------------------------------------------------------------------------------------------------------------------ Increase (decrease) in net assets from Class C transactions 672 713 214 1 - ------------------------------------------------------------------------------------------------------------------ Class Y: Proceeds from sales 4,416 6,896 7,072 40,931 Reinvestment of distributions 52 29 203 71 Payments for redemptions (3,634) (3,319) (5,843) (4,831) Shares issued in connection with the acquisition of Common Trust Fund net assets -- -- -- -- - ------------------------------------------------------------------------------------------------------------------ Increase (decrease) in net assets from Class Y transactions 834 3,606 1,432 36,171 - ------------------------------------------------------------------------ ----------------------------------------- Increase (decrease) in net assets from capital share transactions 1,500 3,897 2,034 36,610 - ------------------------------------------------------------------------------------------------------------------ Total increase (decrease) in net assets 1,412 5,475 1,992 38,537 NET ASSETS AT BEGINNING OF PERIOD 33,234 27,759 38,537 -- ================================================================================================================== NET ASSETS AT END OF PERIOD $ 34,646 $ 33,234 $ 40,529 $ 38,537 ================================================================================================================== UNDISTRIBUTED NET INVESTMENT INCOME AT END OF PERIOD $ 40 $ 14 $ 2 $ -- ================================================================================================================== OREGON INTERMEDIATE SHORT TAX FREE FUND TAX FREE FUND TAX FREE FUND - -------------------------------------------------------------------------------------------------------------------------------- 10/01/02 10/01/01 10/25/02(1) 10/01/02 10/01/01 TO TO TO TO TO 9/30/03 9/30/02 9/30/03 9/30/03 9/30/02 - -------------------------------------------------------------------------------------------------------------------------------- OPERATIONS: Investment income - net $ 5,912 $ 6,418 $ 10,163 $ 23,245 $ 24,106 Net realized gain on investments 1,155 568 2,432 4,886 7,874 Net realized loss on redemption in-kind -- -- -- -- -- Net increase from payment by affiliate and net losses realized on the disposal of investments in violation of restrictions (2) -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (1,811) 4,230 13,087 (6,702) 13,206 - -------------------------------------------------------------------------------------------------------------------------------- Net increase in net assets resulting from operations 5,256 11,216 25,682 21,429 45,186 - -------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Investment income - net: Class A (300) (267) (61) (1,818) (1,862) Class C -- -- -- (235) (212) Class Y (5,603) (6,184) (10,054) (21,211) (22,023) Net realized gain on investments: Class A (12) -- -- (486) -- Class C -- -- -- (70) -- Class Y (208) -- -- (5,440) -- Return of capital: Class A -- -- -- -- -- Class Y -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Total distributions (6,123) (6,451) (10,115) (29,260) (24,097) - -------------------------------------------------------------------------------------------------------------------------------- CAPITAL SHARE TRANSACTIONS (3): Class A: Proceeds from sales 3,805 4,716 10,862 9,898 7,678 Reinvestment of distributions 186 147 55 2,040 1,655 Payments for redemptions (2,769) (3,525) (4,499) (12,077) (16,023) - -------------------------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets from Class A transactions 1,222 1,338 6,418 (139) (6,690) - -------------------------------------------------------------------------------------------------------------------------------- Class C: Proceeds from sales -- -- -- 454 1,459 Reinvestment of distributions -- -- -- 293 205 Payments for redemptions -- -- -- (1,953) (201) - -------------------------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets from Class C transactions -- -- -- (1,206) 1,463 - -------------------------------------------------------------------------------------------------------------------------------- Class Y: Proceeds from sales 17,727 12,607 508,191 55,624 77,354 Reinvestment of distributions 319 299 183 1,557 903 Payments for redemptions (22,926) (19,479) (126,993) (86,596) (101,695) Shares issued in connection with the acquisition of Common Trust Fund net assets -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets from Class Y transactions (4,880) (6,573) 381,381 (29,415) (23,438) - -------------------------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets from capital share transactions (3,658) (5,235) 387,799 (30,760) (28,665) - -------------------------------------------------------------------------------------------------------------------------------- Total increase (decrease) in net assets (4,525) (470) 403,366 (38,591) (7,576) NET ASSETS AT BEGINNING OF PERIOD 158,958 159,428 -- 547,047 554,623 ================================================================================================================================ NET ASSETS AT END OF PERIOD $ 154,433 $ 158,958 $ 403,366 $ 508,456 $ 547,047 ================================================================================================================================ UNDISTRIBUTED NET INVESTMENT INCOME AT END OF PERIOD $ 67 $ 58 $ 48 $ 461 $ 427 ================================================================================================================================
95 Financial Highlights For a share outstanding throughout the periods ended September 30, unless otherwise indicated.
REALIZED AND NET ASSET UNREALIZED DIVIDENDS NET ASSET VALUE NET GAINS FROM NET DISTRIBUTIONS VALUE BEGINNING INVESTMENT (LOSSES) ON INVESTMENT FROM NET END OF OF PERIOD INCOME INVESTMENTS INCOME REALIZED GAINS PERIOD - ------------------------------------------------------------------------------------------------------------------------- ARIZONA TAX FREE FUND Class A 2003 $ 11.41 $ 0.46 $ (0.06) $ (0.45) $ (0.03) $ 11.33 2002 10.99 0.48 0.44 (0.48) (0.02) 11.41 2001 10.45 0.55 0.53 (0.54) -- 10.99 2000 (1) 10.00 0.36 0.45 (0.36) -- 10.45 Class C 2003 $ 11.40 $ 0.42 $ (0.08) $ (0.40) $ (0.03) $ 11.31 2002 10.98 0.44 0.44 (0.44) (0.02) 11.40 2001 10.44 0.53 0.51 (0.50) -- 10.98 2000 (1) 10.00 0.34 0.44 (0.34) -- 10.44 Class Y 2003 $ 11.41 $ 0.48 $ (0.06) $ (0.47) $ (0.03) $ 11.33 2002 10.99 0.51 0.44 (0.51) (0.02) 11.41 2001 10.45 0.57 0.53 (0.56) -- 10.99 2000 (1) 10.00 0.37 0.45 (0.37) -- 10.45 CALIFORNIA INTERMEDIATE TAX FREE FUND Class A 2003 $ 10.80 $ 0.41 $ (0.14) $ (0.41) $ (0.02) $ 10.64 2002 10.41 0.42 0.39 (0.42) -- 10.80 2001 10.02 0.44 0.39 (0.44) -- 10.41 2000 9.89 0.43 0.13 (0.43) -- 10.02 1999 10.37 0.42 (0.46) (0.41) (0.03) 9.89 Class Y 2003 $ 10.81 $ 0.43 $ (0.14) $ (0.42) $ (0.02) $ 10.66 2002 10.43 0.43 0.38 (0.43) -- 10.81 2001 10.04 0.44 0.39 (0.44) -- 10.43 2000 9.89 0.43 0.15 (0.43) -- 10.04 1999 10.36 0.42 (0.45) (0.41) (0.03) 9.89 CALIFORNIA TAX FREE FUND Class A 2003 $ 11.63 $ 0.47 $ (0.16) $ (0.47) $ (0.07) $ 11.40 2002 11.17 0.48 0.50 (0.47) (0.05) 11.63 2001 10.66 0.52 0.50 (0.51) -- 11.17 2000 (1) 10.00 0.35 0.66 (0.35) -- 10.66 Class C 2003 $ 11.64 $ 0.43 $ (0.16) $ (0.43) $ (0.07) $ 11.41 2002 11.18 0.42 0.52 (0.43) (0.05) 11.64 2001 10.66 0.47 0.51 (0.46) -- 11.18 2000 (1) 10.00 0.32 0.66 (0.32) -- 10.66 Class Y 2003 $ 11.63 $ 0.49 $ (0.15) $ (0.50) $ (0.07) $ 11.40 2002 11.17 0.49 0.52 (0.50) (0.05) 11.63 2001 10.66 0.54 0.50 (0.53) -- 11.17 2000 (1) 10.00 0.37 0.65 (0.36) -- 10.66 COLORADO INTERMEDIATE TAX FREE FUND Class A 2003 $ 11.12 $ 0.41 $ (0.02) $ (0.43) $ -- $ 11.08 2002 10.79 0.47 0.32 (0.46) -- 11.12 2001 10.28 0.46 0.52 (0.47) -- 10.79 2000 10.32 0.48 (0.04) (0.48) -- 10.28 1999 10.89 0.46 (0.55) (0.46) (0.02) 10.32 Class Y 2003 $ 11.10 $ 0.43 $ (0.03) $ (0.45) $ -- $ 11.05 2002 10.76 0.49 0.33 (0.48) -- 11.10 2001 10.26 0.48 0.49 (0.47) -- 10.76 2000 10.29 0.48 (0.03) (0.48) -- 10.26 1999 10.88 0.46 (0.57) (0.46) (0.02) 10.29
(1) Commenced operations on February 1, 2000. All ratios for the period have been annualized, except total return and portfolio turnover. (2) Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived. The accompanying notes are an integral part of the financial statements. 96
RATIO OF RATIO OF NET RATIO OF NET EXPENSES TO INVESTMENT RATIO OF INVESTMENT AVERAGE INCOME NET ASSETS EXPENSES TO INCOME NET ASSETS TO AVERAGE NET PORTFOLIO TOTAL END OF AVERAGE TO AVERAGE (EXCLUDING ASSETS (EXCLUDING TURNOVER RETURN (2) PERIOD (000) NET ASSETS NET ASSETS WAIVERS) WAIVERS) RATE - ---------------------------------------------------------------------------------------------------------------------------------- ARIZONA TAX FREE FUND Class A 2003 3.61% $ 11,928 0.75% 4.03% 1.09% 3.69% 37% 2002 8.69 12,413 0.75 4.40 1.37 3.78 30 2001 10.50 13,971 0.25 5.10 1.45 3.90 19 2000 (1) 8.21 9,668 0.25 5.31 1.80 3.76 27 Class C 2003 3.10% $ 1,857 1.15% 3.63% 1.84% 2.94% 37% 2002 8.28 2,910 1.15 4.00 2.12 3.03 30 2001 10.15 2,003 0.65 4.66 1.84 3.47 19 2000 (1) 7.88 22 0.65 4.95 2.72 2.88 27 Class Y 2003 3.86% $ 9,244 0.50% 4.28% 0.84% 3.94% 37% 2002 8.95 10,656 0.50 4.64 1.12 4.02 30 2001 10.76 5,822 -- 5.33 1.19 4.14 19 2000 (1) 8.36 2,670 -- 5.53 1.53 4.00 27 CALIFORNIA INTERMEDIATE TAX FREE FUND Class A 2003 2.58% $ 4,262 0.85% 3.86% 1.06% 3.65% 17% 2002 8.01 4,870 0.85 4.01 1.14 3.72 23 2001 8.41 3,392 0.70 4.25 1.21 3.74 12 2000 5.84 2,344 0.70 4.35 1.18 3.87 23 1999 (0.40) 2,042 0.70 4.19 1.17 3.72 9 Class Y 2003 2.83% $ 44,600 0.70% 4.02% 0.81% 3.91% 17% 2002 8.05 45,212 0.70 4.16 0.89 3.97 23 2001 8.39 43,647 0.70 4.26 0.96 4.00 12 2000 6.05 43,262 0.70 4.36 0.93 4.13 23 1999 (0.30) 41,469 0.70 4.11 0.92 3.89 9 CALIFORNIA TAX FREE FUND Class A 2003 2.85% $ 11,143 0.75% 4.16% 1.08% 3.83% 20% 2002 9.10 12,954 0.75 4.26 1.31 3.70 33 2001 9.73 18,139 0.25 4.75 1.35 3.65 19 2000 (1) 10.23 6,029 0.25 5.20 1.85 3.60 12 Class C 2003 2.45% $ 1,101 1.15% 3.75% 1.83% 3.07% 20% 2002 8.69 1,115 1.15 3.86 2.06 2.95 33 2001 9.42 647 0.65 4.38 1.75 3.28 19 2000 (1) 9.95 34 0.65 5.12 2.25 3.52 12 Class Y 2003 3.11% $ 15,243 0.50% 4.40% 0.83% 4.07% 20% 2002 9.36 11,853 0.50 4.51 1.06 3.95 33 2001 9.99 6,726 -- 5.00 1.10 3.90 19 2000 (1) 10.38 4,766 -- 5.42 1.59 3.83 12 COLORADO INTERMEDIATE TAX FREE FUND Class A 2003 3.64% $ 22,555 0.85% 3.79% 1.06% 3.58% 14% 2002 7.56 15,244 0.85 4.48 1.11 4.22 15 2001 9.75 8,320 0.70 4.55 1.34 3.91 24 2000 4.40 3,485 0.70 4.66 1.25 4.11 42 1999 (0.88) 4,733 0.70 4.32 1.15 3.87 33 Class Y 2003 3.71% $ 47,854 0.70% 3.94% 0.81% 3.83% 14% 2002 7.83 48,398 0.70 4.60 0.86 4.44 15 2001 9.67 47,907 0.70 4.58 1.09 4.19 24 2000 4.51 52,885 0.70 4.66 1.00 4.36 42 1999 (1.07) 57,236 0.70 4.31 0.90 4.11 33
97
REALIZED AND NET ASSET UNREALIZED DIVIDENDS DISTRIBUTIONS VALUE NET GAINS FROM NET DISTRIBUTIONS FROM BEGINNING INVESTMENT (LOSSES) ON INVESTMENT FROM NET RETURN OF OF PERIOD INCOME INVESTMENTS INCOME REALIZED GAINS CAPITAL - ------------------------------------------------------------------------------------------------------------------------- COLORADO TAX FREE FUND Class A 2003 $ 11.65 $ 0.50 $ (0.10) $ (0.48) $ -- $ -- 2002 11.09 0.48 0.56 (0.47) (0.01) -- 2001 10.42 0.54 0.66 (0.53) -- -- 2000 (1) 10.00 0.35 0.42 (0.35) -- -- Class C 2003 $ 11.63 $ 0.44 $ (0.08) $ (0.43) $ -- $ -- 2002 11.08 0.44 0.56 (0.44) (0.01) -- 2001 10.41 0.49 0.67 (0.49) -- -- 2000 (1) 10.00 0.34 0.41 (0.34) -- -- Class Y 2003 $ 11.67 $ 0.51 $ (0.09) $ (0.50) $ -- $ -- 2002 11.10 0.48 0.60 (0.50) (0.01) -- 2001 10.43 0.58 0.64 (0.55) -- -- 2000 (1) 10.00 0.37 0.42 (0.36) -- -- INTERMEDIATE TAX FREE FUND Class A 2003 $ 11.32 $ 0.44 $ (0.03) $ (0.43) $ -- $ -- 2002 10.95 0.43 0.40 (0.43) -- (0.03) 2001 10.48 0.48 0.46 (0.47) -- -- 2000 10.45 0.48 0.04 (0.49) -- -- 1999 11.05 0.46 (0.55) (0.46) (0.05) -- Class Y 2003 $ 11.30 $ 0.46 $ (0.03) $ (0.45) $ -- $ -- 2002 10.93 0.44 0.40 (0.44) -- (0.03) 2001 10.46 0.48 0.46 (0.47) -- -- 2000 10.43 0.48 0.04 (0.49) -- -- 1999 11.03 0.46 (0.55) (0.46) (0.05) -- MINNESOTA INTERMEDIATE TAX FREE FUND Class A 2003 $ 10.51 $ 0.40 $ (0.04) $ (0.41) $ (0.02) $ -- 2002 10.21 0.43 0.29 (0.42) -- -- 2001 9.80 0.44 0.41 (0.44) -- -- 2000 9.79 0.45 0.02 (0.45) (0.01) -- 1999 10.29 0.43 (0.47) (0.43) (0.03) -- Class Y 2003 $ 10.46 $ 0.42 $ (0.03) $ (0.43) $ (0.02) $ -- 2002 10.17 0.45 0.27 (0.43) -- -- 2001 9.76 0.44 0.41 (0.44) -- -- 2000 9.76 0.45 0.01 (0.45) (0.01) -- 1999 10.26 0.43 (0.47) (0.43) (0.03) --
(1) Commenced operations on February 1, 2000. All ratios for the period have been annualized, except total return and portfolio turnover. (2) Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived. The accompanying notes are an integral part of the financial statements. 98
NET ASSET RATIO OF VALUE NET ASSETS EXPENSES TO END OF TOTAL END OF AVERAGE PERIOD RETURN (2) PERIOD (000) NET ASSETS - -------------------------------------------------------------------------------------------------- COLORADO TAX FREE FUND Class A 2003 $ 11.57 3.53% $ 13,843 0.75% 2002 11.65 9.72 19,633 0.75 2001 11.09 11.78 20,550 0.25 2000 (1) 10.42 7.80 8,068 0.25 Class C 2003 $ 11.56 3.23% $ 4,284 1.15% 2002 11.63 9.23 3,705 1.15 2001 11.08 11.41 1,698 0.65 2000 (1) 10.41 7.52 156 0.65 Class Y 2003 $ 11.59 3.78% $ 9,516 0.50% 2002 11.67 10.07 9,244 0.50 2001 11.10 12.02 1,923 -- 2000 (1) 10.43 8.05 2,430 -- INTERMEDIATE TAX FREE FUND Class A 2003 $ 11.30 3.74% $ 34,231 0.85% 2002 11.32 7.78 29,838 0.85 2001 10.95 9.19 23,236 0.70 2000 10.48 5.10 8,994 0.70 1999 10.45 (0.78) 10,713 0.70 Class Y 2003 $ 11.28 3.90% $ 696,994 0.70% 2002 11.30 7.95 485,592 0.70 2001 10.93 9.21 458,743 0.70 2000 10.46 5.11 375,279 0.70 1999 10.43 (0.79) 442,464 0.70 MINNESOTA INTERMEDIATE TAX FREE FUND Class A 2003 $ 10.44 3.55% $ 31,044 0.85% 2002 10.51 7.23 19,914 0.85 2001 10.21 8.85 12,408 0.70 2000 9.80 4.94 12,469 0.70 1999 9.79 (0.43) 14,629 0.70 Class Y 2003 $ 10.40 3.82% $ 238,958 0.70% 2002 10.46 7.31 251,597 0.70 2001 10.17 8.89 255,939 0.70 2000 9.76 5.04 244,353 0.70 1999 9.76 (0.44) 279,776 0.70 RATIO OF RATIO OF NET RATIO OF NET EXPENSES TO INVESTMENT INVESTMENT AVERAGE INCOME INCOME NET ASSETS TO AVERAGE NET PORTFOLIO TO AVERAGE (EXCLUDING ASSETS (EXCLUDING TURNOVER NET ASSETS WAIVERS) WAIVERS) RATE - -------------------------------------------------------------------------------------------------- COLORADO TAX FREE FUND Class A 2003 4.23% 1.07% 3.91% 14% 2002 4.32 1.30 3.77 22 2001 5.03 1.42 3.86 23 2000 (1) 5.28 1.80 3.73 36 Class C 2003 3.83% 1.82% 3.16% 14% 2002 3.95 2.05 3.05 22 2001 4.61 1.82 3.44 23 2000 (1) 4.92 2.58 2.99 36 Class Y 2003 4.49% 0.82% 4.17% 14% 2002 4.59 1.05 4.04 22 2001 5.32 1.18 4.14 23 2000 (1) 5.47 1.53 3.94 36 INTERMEDIATE TAX FREE FUND Class A 2003 3.91% 1.05% 3.71% 15% 2002 3.87 1.03 3.69 28 2001 4.43 1.13 4.00 12 2000 4.61 1.12 4.19 29 1999 4.31 1.12 3.89 23 Class Y 2003 4.05% 0.80% 3.95% 15% 2002 4.04 0.78 3.96 28 2001 4.43 0.87 4.26 12 2000 4.62 0.87 4.45 29 1999 4.31 0.87 4.14 23 MINNESOTA INTERMEDIATE TAX FREE FUND Class A 2003 3.85% 1.05% 3.65% 15% 2002 4.27 1.03 4.09 15 2001 4.38 1.13 3.95 13 2000 4.59 1.12 4.17 18 1999 4.30 1.12 3.88 12 Class Y 2003 4.01% 0.80% 3.91% 15% 2002 4.41 0.78 4.33 15 2001 4.38 0.88 4.20 13 2000 4.59 0.87 4.42 18 1999 4.28 0.87 4.11 12
99
REALIZED AND NET ASSET UNREALIZED DIVIDENDS NET ASSET VALUE NET GAINS FROM NET DISTRIBUTIONS VALUE BEGINNING INVESTMENT (LOSSES) ON INVESTMENT FROM NET END OF OF PERIOD INCOME INVESTMENTS INCOME REALIZED GAINS PERIOD - -------------------------------------------------------------------------------------------------------------------- MINNESOTA TAX FREE FUND Class A 2003 $ 11.39 $ 0.48 $ (0.05) $ (0.45) $ (0.03) $ 11.34 2002 11.06 0.47 0.34 (0.47) (0.01) 11.39 2001 10.64 0.53 0.43 (0.54) -- 11.06 2000 10.70 0.55 (0.06) (0.55) -- 10.64 1999 11.46 0.55 (0.69) (0.56) (0.06) 10.70 Class C 2003 $ 11.36 $ 0.43 $ (0.04) $ (0.41) $ (0.03) $ 11.31 2002 11.04 0.43 0.33 (0.43) (0.01) 11.36 2001 10.62 0.49 0.43 (0.50) -- 11.04 2000 10.69 0.53 (0.09) (0.51) -- 10.62 1999 (1) 11.38 0.37 (0.71) (0.35) -- 10.69 Class Y 2003 $ 11.38 $ 0.51 $ (0.05) $ (0.48) $ (0.03) $ 11.33 2002 11.05 0.49 0.35 (0.50) (0.01) 11.38 2001 10.63 0.55 0.44 (0.57) -- 11.05 2000 10.69 0.58 (0.07) (0.57) -- 10.63 1999 11.45 0.58 (0.69) (0.59) (0.06) 10.69 MISSOURI TAX FREE FUND (2) Class A 2003 $ 12.47 $ 0.45 $ (0.04) $ (0.45) $ (0.06) $ 12.37 2002 12.05 0.46 0.47 (0.47) (0.04) 12.47 2001 (3) 11.54 0.46 0.50 (0.44) (0.01) 12.05 2000 (4) 11.31 0.48 0.23 (0.48) -- 11.54 1999 (5) 12.08 0.50 (0.74) (0.51) (0.02) 11.31 1998 (5) 11.87 0.52 0.21 (0.52) -- 12.08 Class C 2003 $ 12.46 $ 0.40 $ (0.04) $ (0.41) $ (0.06) $ 12.35 2002 12.05 0.41 0.48 (0.44) (0.04) 12.46 2001 (6) 12.03 -- 0.02 -- -- 12.05 Class Y 2003 $ 12.48 $ 0.49 $ (0.05) $ (0.48) $ (0.06) $ 12.38 2002 12.06 0.48 0.48 (0.50) (0.04) 12.48 2001 (3) 11.55 0.49 0.50 (0.47) (0.01) 12.06 2000 (4) 11.32 0.50 0.23 (0.50) -- 11.55 1999 (5) 12.08 0.53 (0.74) (0.53) (0.02) 11.32 1998 (5) 11.87 0.55 0.21 (0.55) -- 12.08 NEBRASKA TAX FREE FUND Class A 2003 $ 10.70 $ 0.41 $ (0.04) $ (0.40) $ (0.01) $ 10.66 2002 10.20 0.41 0.49 (0.40) -- 10.70 2001 (7) 10.00 0.24 0.20 (0.24) -- 10.20 Class C 2003 $ 10.63 $ 0.36 $ (0.04) $ (0.36) $ (0.01) $ 10.58 2002 10.14 0.36 0.50 (0.37) -- 10.63 2001 (7) 10.00 0.20 0.17 (0.23) -- 10.14 Class Y 2003 $ 10.69 $ 0.43 $ (0.03) $ (0.43) $ (0.01) $ 10.65 2002 10.19 0.43 0.50 (0.43) -- 10.69 2001 (7) 10.00 0.26 0.19 (0.26) -- 10.19
(1) Class of shares has been offered since February 1, 1999. All ratios for the period have been annualized, except total return and portfolio turnover. (2) The financial highlights for the Missouri Tax Free Fund as set forth herein include the historical financial highlights of the Firstar Missouri Tax-Exempt Bond Fund Class A shares and Class I shares. The assets of the Firstar Missouri Tax-Exempt Bond Fund were acquired by Missouri Tax Free Fund on September 24, 2001. In connection with such acquisition, Class A shares and Class I shares of the Firstar Missouri Tax-Exempt Bond Fund were exchanged for Class A shares and Class Y shares of Missouri Tax Free Fund, respectively. (3) 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. The accompanying notes are an integral part of the financial statements. 100
RATIO OF NET RATIO OF INVESTMENT NET ASSETS EXPENSES TO INCOME TOTAL END OF AVERAGE TO AVERAGE RETURN (8) PERIOD (000) NET ASSETS NET ASSETS - --------------------------------------------------------------------------------------------- MINNESOTA TAX FREE FUND Class A 2003 3.90% $ 125,916 0.95% 4.25% 2002 7.23 135,607 0.95 4.22 2001 9.24 107,260 0.95 4.84 2000 4.75 93,995 0.95 5.22 1999 (1.31) 108,116 0.95 4.98 Class C 2003 3.51% $ 11,951 1.35% 3.85% 2002 7.10 11,703 1.35 3.80 2001 8.88 6,382 1.35 4.39 2000 4.25 2,037 1.35 4.83 1999 (1) (3.03) 1,682 1.35 4.70 Class Y 2003 4.16% $ 47,858 0.70% 4.50% 2002 7.84 54,638 0.70 4.47 2001 9.52 49,078 0.70 5.09 2000 5.00 40,860 0.70 5.49 1999 (1.07) 17,356 0.70 5.26 MISSOURI TAX FREE FUND (2) Class A 2003 3.45% $ 28,141 0.95% 3.69% 2002 7.99 26,496 0.95 3.81 2001 (3) 8.44 22,573 0.94 4.23 2000 (4) 6.41 19,876 0.87 4.59 1999 (5) (2.09) 21,242 0.86 4.30 1998 (5) 6.31 23,611 0.86 4.38 Class C 2003 3.05% $ 279 1.35% 3.30% 2002 7.58 21 1.35 3.28 2001 (6) 0.17 -- -- -- Class Y 2003 3.71% $ 168,094 0.70% 3.94% 2002 8.25 142,344 0.70 4.06 2001 (3) 8.67 129,715 0.69 4.48 2000 (4) 6.60 126,896 0.67 4.79 1999 (5) (1.81) 111,842 0.66 4.51 1998 (5) 6.52 94,402 0.66 4.57 NEBRASKA TAX FREE FUND Class A 2003 3.57% $ 4,869 0.75% 3.87% 2002 9.09 4,904 0.75 3.98 2001 (7) 4.48 5,090 0.55 4.12 Class C 2003 3.10% $ 1,657 1.15% 3.46% 2002 8.66 982 1.15 3.57 2001 (7) 3.71 226 0.95 3.73 Class Y 2003 3.82% $ 28,120 0.50% 4.11% 2002 9.37 27,348 0.50 4.22 2001 (7) 4.51 22,443 0.30 4.36 RATIO OF RATIO OF NET EXPENSES TO INVESTMENT AVERAGE INCOME NET ASSETS TO AVERAGE NET PORTFOLIO (EXCLUDING ASSETS (EXCLUDING TURNOVER WAIVERS) WAIVERS) RATE - -------------------------------------------------------------------------------- MINNESOTA TAX FREE FUND Class A 2003 1.06% 4.14% 23% 2002 1.09 4.08 26 2001 1.18 4.61 15 2000 1.17 5.00 34 1999 1.17 4.76 15 Class C 2003 1.81% 3.39% 23% 2002 1.84 3.31 26 2001 1.58 4.16 15 2000 1.77 4.41 34 1999 (1) 1.87 4.18 15 Class Y 2003 0.81% 4.39% 23% 2002 0.84 4.33 26 2001 0.93 4.86 15 2000 0.93 5.26 34 1999 0.87 5.09 15 MISSOURI TAX FREE FUND (2) Class A 2003 1.06% 3.58% 20% 2002 1.06 3.70 25 2001 (3) 1.00 4.17 9 2000 (4) 0.98 4.48 3 1999 (5) 1.07 4.09 1 1998 (5) 1.06 4.18 6 Class C 2003 1.81% 2.84% 20% 2002 1.81 2.82 25 2001 (6) -- -- 9 Class Y 2003 0.81% 3.83% 20% 2002 0.81 3.95 25 2001 (3) 0.75 4.42 9 2000 (4) 1.08 4.38 3 1999 (5) 1.07 4.10 1 1998 (5) 1.06 4.17 6 NEBRASKA TAX FREE FUND Class A 2003 1.07% 3.55% 15% 2002 1.29 3.44 35 2001 (7) 1.38 3.29 30 Class C 2003 1.82% 2.79% 15% 2002 2.04 2.68 35 2001 (7) 1.75 2.93 30 Class Y 2003 0.82% 3.79% 15% 2002 1.04 3.68 35 2001 (7) 1.13 3.53 30
(4) For the period December 1, 1999 to October 31, 2000. Effective in 2000, 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. (5) For the fiscal year ended November 30. (6) CLass of shares has been offered since September 24, 2001. All ratios for the period have been annualized, except total return and portfolio turnover. (7) Commenced operations on February 28, 2001. All ratios for the period have been annualized, except total return and portfolio turnover. (8) Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived. 101
REALIZED AND NET ASSET UNREALIZED DIVIDENDS NET ASSET VALUE NET GAINS FROM NET DISTRIBUTIONS VALUE BEGINNING INVESTMENT (LOSSES) ON INVESTMENT FROM NET END OF OF PERIOD INCOME INVESTMENTS INCOME REALIZED GAINS PERIOD - -------------------------------------------------------------------------------------------------------------------------------- OHIO TAX FREE FUND Class A 2003 $ 10.58 $ 0.36 $ (0.03) $ (0.37) $ -- $ 10.54 2002 (1) 10.00 0.15 0.59 (0.16) -- 10.58 Class C 2003 $ 10.57 $ 0.32 $ (0.12) $ (0.33) $ -- $ 10.44 2002 (1) 10.00 0.13 0.58 (0.14) -- 10.57 Class Y 2003 $ 10.57 $ 0.39 $ (0.02) $ (0.39) $ -- $ 10.55 2002 (1) 10.00 0.16 0.58 (0.17) -- 10.57 OREGON INTERMEDIATE TAX FREE FUND Class A 2003 $ 10.49 $ 0.37 $ (0.03) $ (0.38) $ (0.02) $ 10.43 2002 10.18 0.40 0.31 (0.40) -- 10.49 2001 9.74 0.43 0.44 (0.43) -- 10.18 2000 9.72 0.43 0.02 (0.43) -- 9.74 1999 (2) 10.23 0.29 (0.51) (0.29) -- 9.72 Class Y 2003 $ 10.49 $ 0.40 $ (0.05) $ (0.39) $ (0.02) $ 10.43 2002 10.18 0.42 0.31 (0.42) -- 10.49 2001 9.74 0.43 0.44 (0.43) -- 10.18 2000 9.72 0.43 0.02 (0.43) -- 9.74 1999 10.24 0.43 (0.49) (0.43) (0.03) 9.72 SHORT TAX FREE FUND (3) Class A 2003 $ 10.00 $ 0.26 $ 0.19 $ (0.27) $ -- $ 10.18 Class Y 2003 $ 10.00 $ 0.28 $ 0.18 $ (0.28) $ -- $ 10.18 TAX FREE FUND (4) Class A 2003 $ 11.44 $ 0.47 $ (0.03) $ (0.47) $ (0.13) $ 11.28 2002 10.99 0.47 0.44 (0.46) -- 11.44 2001 (5) 10.53 0.42 0.43 (0.39) -- 10.99 2000 (6) 10.20 0.40 0.34 (0.41) -- 10.53 1999 (7) 11.06 0.44 (0.75) (0.44) (0.11) 10.20 1998 (7) 11.11 0.48 0.33 (0.48) (0.38) 11.06 Class C 2003 $ 11.40 $ 0.42 $ (0.02) $ (0.43) $ (0.13) $ 11.24 2002 10.96 0.42 0.45 (0.43) -- 11.40 2001 (8) 10.93 0.01 0.02 -- -- 10.96 Class Y 2003 $ 11.45 $ 0.50 $ (0.03) $ (0.50) $ (0.13) $ 11.29 2002 11.00 0.49 0.45 (0.49) -- 11.45 2001 (5) 10.53 0.44 0.45 (0.42) -- 11.00 2000 (6) 10.21 0.42 0.33 (0.43) -- 10.53 1999 (7) 11.10 0.47 (0.78) (0.47) (0.11) 10.21 1998 (7) 11.15 0.50 0.33 (0.50) (0.38) 11.10
(1) Commenced operations on April 30, 2002. All ratios for the period have been annualized, except total return and portfolio turnover. (2) Class of shares has been offered since February 1, 1999. All ratios for the period have been annualized, except total return and portfolio turnover. (3) Commenced operations on October 25, 2002. All ratios for the period have been annualized, except total return and portfolio turnover. (4) The financial highlights for the Tax Free Fund as set forth herein include the historical financial highlights of the Firstar National Municipal Bond Fund Class A shares and Class I shares. The assets of the Firstar National Municipal Bond Fund were acquired by Tax Free Fund on September 24, 2001. In connection with such acquisition, Class A shares and Class I shares of the Firstar National Municipal Bond Fund were exchanged for Class A shares and ClassY shares of Tax Free Fund, respectively. Historical per-share amounts have been adjusted to reflect the conversion ratios utilized for the merger of the Tax Free Fund and the Firstar National Municipal Bond Fund. Firstar National Municipal Bond Fund is the accounting survivor. The accompanying notes are an integral part of the financial statements. 102
RATIO OF NET RATIO OF INVESTMENT NET ASSETS EXPENSES TO INCOME TOTAL END OF AVERAGE TO AVERAGE RETURN (9) PERIOD (000) NET ASSETS NET ASSETS - ------------------------------------------------------------------------------------------------------------ OHIO TAX FREE FUND Class A 2003 3.22% $ 849 0.75% 3.52% 2002 (1) 7.42 453 0.75 3.25 Class C 2003 1.95% $ 215 1.15% 3.08% 2002 (1) 7.13 1 1.15 3.01 Class Y 2003 3.65% $ 39,465 0.50% 3.78% 2002 (1) 7.41 38,083 0.50 3.74 OREGON INTERMEDIATE TAX FREE FUND Class A 2003 3.31% $ 8,189 0.85% 3.67% 2002 7.23 7,030 0.85 3.95 2001 9.08 5,477 0.70 4.27 2000 4.79 3,303 0.70 4.47 1999 (2) (2.22) 2,005 0.70 4.37 Class Y 2003 3.46% $ 146,244 0.70% 3.82% 2002 7.39 151,928 0.70 4.10 2001 9.08 153,951 0.70 4.28 2000 4.78 160,124 0.70 4.47 1999 (0.66) 178,411 0.70 4.30 SHORT TAX FREE FUND (3) Class A 2003 4.54% $ 6,448 0.75% 2.67% Class Y 2003 4.66% $ 396,918 0.60% 3.00% TAX FREE FUND (4) Class A 2003 4.06% $ 42,942 0.95% 4.21% 2002 8.56 43,708 0.95 4.20 2001 (5) 8.22 48,769 1.16 4.27 2000 (6) 7.43 1,526 0.98 4.34 1999 (7) (2.87) 1,582 0.96 4.14 1998 (7) 7.56 1,162 0.85 4.18 Class C 2003 3.67% $ 4,880 1.35% 3.81% 2002 8.14 6,199 1.35 3.82 2001 (8) 0.27 4,494 1.04 5.61 Class Y 2003 4.31% $ 460,634 0.70% 4.46% 2002 8.84 497,140 0.70 4.47 2001 (5) 8.59 501,361 0.73 4.32 2000 (6) 7.63 253,803 0.78 4.54 1999 (7) (2.97) 326,840 0.76 4.33 1998 (7) 7.76 384,518 0.56 4.52 RATIO OF RATIO OF NET EXPENSES TO INVESTMENT AVERAGE INCOME NET ASSETS TO AVERAGE NET PORTFOLIO (EXCLUDING ASSETS (EXCLUDING TURNOVER WAIVERS) WAIVERS) RATE - ----------------------------------------------------------------------------------------- OHIO TAX FREE FUND Class A 2003 1.09% 3.18% 22% 2002 (1) 1.23 2.77 3 Class C 2003 1.84% 2.39% 22% 2002 (1) 1.98 2.18 3 Class Y 2003 0.84% 3.44% 22% 2002 (1) 0.98 3.26 3 OREGON INTERMEDIATE TAX FREE FUND Class A 2003 1.05% 3.47% 17% 2002 1.05 3.75 18 2001 1.13 3.84 20 2000 1.13 4.04 18 1999 (2) 1.12 3.95 13 Class Y 2003 0.80% 3.72% 17% 2002 0.80 4.00 18 2001 0.89 4.09 20 2000 0.88 4.29 18 1999 0.87 4.13 13 SHORT TAX FREE FUND (3) Class A 2003 1.05% 2.37% 54% Class Y 2003 0.80% 2.80% 54% TAX FREE FUND (4) Class A 2003 1.05% 4.11% 23% 2002 1.02 4.13 39 2001 (5) 1.18 4.25 3 2000 (6) 1.09 4.23 4 1999 (7) 1.16 3.94 -- 1998 (7) 1.16 3.87 18 Class C 2003 1.80% 3.36% 23% 2002 1.77 3.40 39 2001 (8) 1.04 5.61 3 Class Y 2003 0.80% 4.36% 23% 2002 0.77 4.40 39 2001 (5) 0.74 4.31 3 2000 (6) 1.19 4.13 4 1999 (7) 1.16 3.93 -- 1998 (7) 1.16 3.92 18
(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) For the period December 1, 1999 to October 31, 2000. All ratios for the period have been annualized, except total return and portfolio turnover. The Fund's fiscal year end changed from November 30 to October 31. (7) For the fiscal year ended November 30. (8) Class of shares has been offered since September 24, 2001. All ratios for the period have been annualized, except total return and portfolio turnover. (9) Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived. 103 NOTES TO Financial STATEMENTS September 30, 2003 1 > ORGANIZATION The First American Arizona Tax Free Fund, California Intermediate Tax Free Fund, California Tax Free Fund, Colorado Intermediate Tax Free Fund, Colorado Tax Free Fund, Intermediate Tax Free Fund, Minnesota Intermediate Tax Free Fund, Minnesota Tax Free Fund, Missouri Tax Free Fund, Nebraska Tax Free Fund, Ohio Tax Free Fund, Oregon Intermediate Tax Free Fund, Short Tax Free Fund, and Tax Free 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 listed above. FAIF is registered under the Investment Company Act of 1940, as amended, as an open-end investment management company. FAIF's articles of incorporation permit the board of directors to create additional funds in the future. Each of these Funds offers Class A and Class Y shares. Arizona Tax Free Fund, California Tax Free Fund, Colorado Tax Free Fund, Minnesota Tax Free Fund, Missouri Tax Free Fund, Nebraska Tax Free Fund, Ohio Tax Free Fund, and Tax Free Fund also offer Class C shares. Class A shares of Arizona Tax Free Fund, California Tax Free Fund, Colorado Tax Free Fund, Minnesota Tax Free Fund, Missouri Tax Free Fund, Nebraska Tax Free Fund, Ohio Tax Free Fund, and Tax Free Fund are sold with a front-end sales charge of 4.25%. Class A shares of California Intermediate Tax Free Fund, Colorado Intermediate Tax Free Fund, Intermediate Tax Free Fund, Minnesota Intermediate Tax Free Fund, Oregon Intermediate Tax Free Fund, and Short Tax Free Fund are sold with a front-end sales charge of 2.25%. Class C shares are sold with a front-end sales charge of 1.00% and are subject to a contingent deferred sales charge for 18 months. Class Y shares have no sales charge and are offered only to qualifying institutional investors and certain other qualifying accounts. The Funds' prospectuses provide a description of each Fund's investment objective, policies and strategies. All classes of shares in a Fund have identical voting, dividend, liquidation, and other rights, and the same terms and conditions, except that the level of distribution and shareholder servicing fees charged may differ among classes and each class has exclusive voting rights on any matters relating to that class' servicing or distribution arrangements. 2 > SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The significant accounting policies followed by the Funds are as follows: SECURITY VALUATIONS - Security valuations for the Funds' investments are furnished by independent pricing services that have been approved by the Funds' board of directors. 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 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 Funds held 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. Investments in open-end mutual funds are valued at the respective net asset value of each underlying fund, determined at the close of the New York Stock Exchange (generally 3:00 p.m. central time) on the valuation date. SECURITY TRANSACTIONS AND INVESTMENT INCOME - The Funds record security transactions on the trade date of the security purchase or sale. 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. 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. 104 EXPENSES - Expenses that are directly related to one of the Funds are charged directly to that Fund. Other operating expenses are generally allocated to the Funds on the basis of relative net assets of all funds within the First American Fund complex. Class specific expenses, such as 12b-1 fees, are borne by that class. Income, other expenses, and realized and unrealized gains and losses of a Fund are allocated to each respective class in proportion to the relative net assets of each class. FEDERAL TAXES - Each Fund is treated as a separate taxable entity. Each Fund intends to continue to qualify as a regulated investment company as provided in Subchapter M of the Internal Revenue Code, as amended, and to distribute all taxable income, if any, to its shareholders. Accordingly, no provision for federal income taxes is required. 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 redemptions in-kind and income related to advisor reimbursements. 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 -------------------------------------------------------------------------------------- California Tax Free Fund $ 1 $ (1) $ -- Missouri Tax Free Fund (102) -- 102 Tax Free Fund (53) 53 --
The character of distributions made during the fiscal year from net investment income or net realized gains may differ from its ultimate characterization for federal income tax purposes. In addition, due to the timing of dividend distributions, the fiscal year in which the amounts are distributed may differ from the year that the income or realized gains (losses) were recorded by the Fund. The character of the distributions paid during the fiscal years ended September 30, 2003 and 2002, was as follows (000):
2003 ------------------------------------------------------------------------------------------------------------------ TAX EXEMPT ORDINARY LONG TERM FUND INCOME INCOME GAIN TOTAL ------------------------------------------------------------------------------------------------------------------ Arizona Tax Free Fund $ 1,078 $ 29 $ 42 $ 1,149 California Intermediate Tax Free Fund 1,963 11 94 2,068 California Tax Free Fund 1,164 85 76 1,325 Colorado Intermediate Tax Free Fund 2,877 19 -- 2,896 Colorado Tax Free Fund 1,237 10 -- 1,247 Intermediate Tax Free Fund 28,635 9 -- 28,644 Minnesota Intermediate Tax Free Fund 11,012 63 411 11,486 Minnesota Tax Free Fund 7,778 348 125 8,251 Missouri Tax Free Fund 7,534 83 781 8,398 Nebraska Tax Free Fund 1,361 -- 25 1,386 Ohio Tax Free Fund 1,486 -- -- 1,486 Oregon Intermediate Tax Free Fund 5,872 32 219 6,123 Short Tax Free Fund 10,115 -- -- 10,115 Tax Free Fund 23,221 43 5,996 29,260
2002 ------------------------------------------------------------------------------------------------------------------ TAX EXEMPT ORDINARY LONG TERM RETURN OF FUND INCOME INCOME GAIN CAPITAL TOTAL ------------------------------------------------------------------------------------------------------------------ Arizona Tax Free Fund $ 952 $ 42 $ 1 $ -- $ 995 California Intermediate Tax Free Fund 1,966 10 -- 1,976 California Tax Free Fund 1,155 99 21 -- 1,275 Colorado Intermediate Tax Free Fund 2,462 122 -- -- 2,584 Colorado Tax Free Fund 1,220 32 7 -- 1,259 Intermediate Tax Free Fund 20,000 74 -- 1,162 21,236 Minnesota Intermediate Tax Free Fund 10,749 421 -- -- 11,170 Minnesota Tax Free Fund 7,945 36 226 -- 8,207 Missouri Tax Free Fund 6,741 23 546 -- 7,310 Nebraska Tax Free Fund 1,240 -- -- -- 1,240 Ohio Tax Free Fund 531 17 -- 5 553 Oregon Intermediate Tax Free Fund 6,451 -- -- -- 6,451 Tax Free Fund 24,041 56 -- -- 24,097
105 As of September 30, 2003, the components of accumulated earnings on a tax basis were (000):
ACCUMULATED UNDISTRIBUTED UNDISTRIBUTED UNDISTRIBUTED CAPITAL AND TOTAL ORDINARY TAX EXEMPT LONG TERM POST-OCTOBER UNREALIZED ACCUMULATED FUND INCOME INCOME CAPITAL GAINS LOSSES APPRECIATION EARNINGS ------------------------------------------------------------------------------------------------------------------------------ Arizona Tax Free Fund $ 37 $ 33 $ 62 $ -- $ 1,721 $ 1,853 California Intermediate Tax Free Fund 78 36 74 -- 3,700 3,888 California Tax Free Fund -- 33 186 -- 2,004 2,223 Colorado Intermediate Tax Free Fund -- 63 -- (463) 5,317 4,917 Colorado Tax Free Fund 1 74 186 -- 2,523 2,784 Intermediate Tax Free Fund -- 587 152 -- 58,861 59,600 Minnesota Intermediate Tax Free Fund 29 124 463 -- 17,673 18,289 Minnesota Tax Free Fund 75 474 1,274 -- 10,283 12,106 Missouri Tax Free Fund -- 84 494 -- 12,180 12,758 Nebraska Tax Free Fund 29 40 94 -- 1,794 1,957 Ohio Tax Free Fund 183 2 186 -- 1,519 1,890 Oregon Intermediate Tax Free Fund 81 67 1,027 -- 9,782 10,957 Short Tax Free Fund 173 48 2,259 -- 13,087 15,567 Tax Free Fund 127 408 4,757 -- 34,775 40,067
106 As of September 30, 2003, the following Funds have capital loss carryforwards (000):
FUND AMOUNT EXPIRATION DATE ---------------------------------------------------------------- Colorado Intermediate Tax Free Fund $ 463 2008-2009 ----------------------------------------------------------------
SECURITIES PURCHASED ON A WHEN-ISSUED BASIS - Delivery and payment for securities that have been purchased by a Fund on a forward-commitment or when-issued basis can take place up to a month or more after the transaction date. During this period, such securities are subject to market fluctuations and the Fund maintains, in a segregated account with its custodian, assets with a market value equal to or greater than the amount of its purchase commitments. The purchase of securities on a when-issued or forward-commitment basis may increase the volatility of a Fund's net asset value if the Fund makes such investments while remaining substantially fully invested. At September 30, 2003, the following Funds had outstanding when-issued commitments (000):
FUND COST SEGREGATED ASSETS ------------------------------------------------------------------ Arizona Tax Free Fund $ 745 $ 886 Intermediate Tax Free Fund 1,596 16,877 Missouri Tax Free Fund 542 10,512 Nebraska Tax Free Fund 1,011 2,900 ------------------------------------------------------------------
INVERSE FLOATERS - As part of their investment strategy, the Funds may invest in certain securities for which the potential income return is inversely related to changes in a floating interest rate ("inverse floaters"). In general, income on inverse floaters will decrease when short-term interest rates increase and increase when short-term interest rates decrease. Inverse floaters may be characterized as derivative securities and may subject a Fund to the risks of reduced or eliminated interest payments and losses of invested principal. In addition, inverse floaters have the effect of providing investment leverage and, as a result, the market value of such securities will generally be more volatile than that of fixed-rate, tax-exempt securities. To the extent the Funds invest in inverse floaters, the net asset value of the Funds' shares may be more volatile than if the Funds did not invest in such securities. At September 30, 2003, the Tax Free Fund had investments in inverse floaters with a value of $3,313,680, which represents 0.7% of the Fund's net assets. 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. DEFERRED COMPENSATION PLAN - Under a Deferred Compensation Plan (the Plan), non-interested directors of the First American Fund family may participate and elect to defer receipt of their annual compensation. Deferred amounts are treated as though equivalent dollar amounts had been invested in shares of selected open-end First American Funds as designated by the Directors. All amounts in the Plan are 100% vested and accounts under the Plan are obligations of the Funds. Deferred amounts remain in the Funds until distributed in accordance with the Plan. USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS - The preparation of financial statements, in conformity with accounting principles generally accepted in the United States, requires management to make estimates and assumptions that affect the reported amount of 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"), U.S. Bancorp Asset Management, Inc. ("USBAM"), manages each Fund's assets and furnishes related office facilities, equipment, research, and personnel. The Agreement requires each Fund to pay USBAM a monthly fee based upon average daily net assets. The fee for each Fund is equal to an annual rate of 0.50% of the average daily net assets of the Fund. 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' prospectuses. The Funds may invest in the money market funds that are series of First American Funds, Inc. ("FAF"), subject to certain limitations. The terms of such 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. 107 CO-ADMINISTRATION FEES - USBAM and U.S. Bancorp Fund Services, LLC ("USBFS") (collectively the "Administrators"), serve as the co-administrators pursuant to a co-administration agreement between the Administrators and FAIF. 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 net assets, 0.22% of the next $25 billion of the aggregate 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 the 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 for the Funds included in this annual report were as follows (000):
FUND AMOUNT ---------------------------------------------------------- Arizona Tax Free Fund $ 73 California Intermediate Tax Free Fund 134 California Tax Free Fund 74 Colorado Intermediate Tax Free Fund 194 Colorado Tax Free Fund 81 Intermediate Tax Free Fund 1,952 Minnesota Intermediate Tax Free Fund 726 Minnesota Tax Free Fund 521 Missouri Tax Free Fund 528 Nebraska Tax Free Fund 92 Ohio Tax Free Fund 107 Oregon Intermediate Tax Free Fund 419 Short Tax Free Fund 921 Tax Free Fund 1,419
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 distribution agreements with FAIF. Under the respective distribution agreements, each of the Funds pays Quasar a monthly distribution and/or shareholder servicing fee equal to an annual rate of 0.25% and 1.00% of each Fund's average daily net assets of the Class A shares and Class C shares, respectively. These fees may be used by Quasar to provide compensation for sales support, distribution activities, and shareholder servicing activities. The distributor is currently limiting its fee to 0.15% of average daily net assets for Class A shares in the California Intermediate Tax Free Fund, Colorado Intermediate Tax Free Fund, Intermediate Tax Free Fund, Minnesota Intermediate Tax Free Fund, Oregon Intermediate Tax Free Fund, and Short Tax Free Fund. For Class C shares, the distributor is currently limiting fees to 0.65% of average daily net assets for Arizona Tax Free Fund, California Tax Free Fund, Colorado Tax Free Fund, Minnesota Tax Free Fund, Missouri Tax Free Fund, Nebraska Tax Free Fund, Ohio Tax Free Fund, and Tax Free Fund. No distribution or shareholder servicing fees are paid by Class Y shares. For the fiscal year ended September 30, 2003, total distribution and shareholder servicing fees waived by the distributor for the Funds included in this annual report were as follows (000):
FUND AMOUNT ---------------------------------------------------------- Arizona Tax Free Fund $ 9 California Intermediate Tax Free Fund 4 California Tax Free Fund 4 Colorado Intermediate Tax Free Fund 23 Colorado Tax Free Fund 15 Intermediate Tax Free Fund 32 Minnesota Intermediate Tax Free Fund 26 Minnesota Tax Free Fund 43 Missouri Tax Free Fund 1 Nebraska Tax Free Fund 4 Ohio Tax Free Fund -- Oregon Intermediate Tax Free Fund 8 Short Tax Free Fund 2 Tax Free Fund 21
108 Under the distribution 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 ---------------------------------------------------------- Arizona Tax Free Fund $ 39 California Intermediate Tax Free Fund 6 California Tax Free Fund 33 Colorado Intermediate Tax Free Fund 29 Colorado Tax Free Fund 53 Intermediate Tax Free Fund 38 Minnesota Intermediate Tax Free Fund 34 Minnesota Tax Free Fund 308 Missouri Tax Free Fund 60 Nebraska Tax Free Fund 13 Ohio Tax Free Fund 2 Oregon Intermediate Tax Free Fund 10 Short Tax Free Fund 3 Tax Free Fund 112
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") of 1.00% is imposed on redemptions made in the Class C shares for the first eighteen months. The CDSC 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, total sales charges retained by affiliates of USBAM for distributing the Funds' shares were as follows (000):
FUND AMOUNT ---------------------------------------------------------- Arizona Tax Free Fund $ 11 California Intermediate Tax Free Fund 31 California Tax Free Fund 31 Colorado Intermediate Tax Free Fund 250 Colorado Tax Free Fund 35 Intermediate Tax Free Fund 105 Minnesota Intermediate Tax Free Fund 156 Minnesota Tax Free Fund 155 Missouri Tax Free Fund 134 Nebraska Tax Free Fund 9 Ohio Tax Free Fund 16 Oregon Intermediate Tax Free Fund 39 Short Tax Free Fund 50 Tax Free Fund 61
109 4 > 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):
ARIZONA CALIFORNIA COLORADO TAX FREE INTERMEDIATE CALIFORNIA INTERMEDIATE FUND TAX FREE FUND TAX FREE FUND TAX FREE FUND - ------------------------------------------------------------------------------------------------------------------------------ 10/1/02 10/1/01 10/1/02 10/1/01 10/1/02 10/1/01 10/1/02 10/1/01 TO TO TO TO TO TO TO TO 9/30/03 9/30/02 9/30/03 9/30/02 9/30/03 9/30/02 9/30/03 9/30/02 - ------------------------------------------------------------------------------------------------------------------------------ Class A: Shares issued 459 279 133 162 124 149 1,771 1,023 Shares issued in lieu of cash distributions 49 46 14 12 43 63 62 31 Shares redeemed (543) (508) (197) (49) (303) (722) (1,168) (454) - ------------------------------------------------------------------------------------------------------------------------------ TOTAL CLASS A TRANSACTIONS (35) (183) (50) 125 (136) (510) 665 600 ============================================================================================================================== Class C: Shares issued 34 111 -- -- 13 105 -- -- Shares issued in lieu of cash distributions 8 10 -- -- 4 3 -- -- Shares redeemed (133) (48) -- -- (17) (70) -- -- - ------------------------------------------------------------------------------------------------------------------------------ TOTAL CLASS C TRANSACTIONS (91) 73 -- -- -- 38 -- -- ============================================================================================================================== Class Y: Shares issued 293 470 428 561 660 492 985 1,194 Shares issued in lieu of cash distributions 3 1 4 1 5 1 1 -- Shares redeemed (414) (67) (429) (566) (347) (76) (1,016) (1,284) - ------------------------------------------------------------------------------------------------------------------------------ TOTAL CLASS Y TRANSACTIONS (118) 404 3 (4) 318 417 (30) (90) ============================================================================================================================== NET INCREASE (DECREASE) IN CAPITAL SHARES (244) 294 (47) 121 182 (55) 635 510 ==============================================================================================================================
COLORADO MINNESOTA TAX FREE INTERMEDIATE INTERMEDIATE MINNESOTA MISSOURI FUND TAX FREE FUND TAX FREE FUND TAX FREE FUND TAX FREE FUND - ------------------------------------------------------------------------------------------------------------------------------- 10/1/02 10/1/01 10/1/02 10/1/01 10/1/02 10/1/01 10/1/02 10/1/01 10/1/02 10/1/01 TO TO TO TO TO TO TO TO TO TO 9/30/03 9/30/02 9/30/03 9/30/02 9/30/03 9/30/02 9/30/03 9/30/02 9/30/03 9/30/02 - ------------------------------------------------------------------------------------------------------------------------------- Class A: Shares issued 97 227 1,388 1,106 1,958 801 1,549 3,715 486 349 Shares issued in lieu of cash distributions 55 70 83 69 75 38 457 469 54 49 Shares redeemed (642) (464) (1,077) (662) (956) (159) (2,807) (1,977) (389) (147) - ------------------------------------------------------------------------------------------------------------------------------- TOTAL CLASS A TRANSACTIONS (490) (167) 394 513 1,077 680 (801) 2,207 151 251 =============================================================================================================================== Class C: Shares issued 120 182 -- -- -- -- 279 514 20 2 Shares issued in lieu of cash distributions 13 8 -- -- -- -- 40 32 -- -- Shares redeemed (80) (25) -- -- -- -- (292) (94) -- -- - ------------------------------------------------------------------------------------------------------------------------------- TOTAL CLASS C TRANSACTIONS 53 165 -- -- -- -- 27 452 20 2 =============================================================================================================================== Class Y: Shares issued 146 751 11,900 10,625 3,848 2,730 470 1,205 1,571 2,815 Shares issued in lieu of cash distributions 2 1 164 167 32 27 24 27 30 19 Shares redeemed (119) (133) (12,662) (9,800) (4,937) (3,891) (1,071) (873) (2,122) (2,187) Shares issued in connection with acquisitioin of Common Trust Fund net assets -- -- 19,435 -- -- -- -- -- 2,697 -- - ------------------------------------------------------------------------------------------------------------------------------- TOTAL CLASS Y TRANSACTIONS 29 619 18,837 992 (1,057) (1,134) (577) 359 2,176 647 =============================================================================================================================== NET INCREASE (DECREASE) IN CAPITAL SHARES (408) 617 19,231 1,505 20 (454) (1,351) 3,018 2,347 900 ===============================================================================================================================
OREGON NEBRASKA OHIO INTERMEDIATE SHORT TAX FREE FUND TAX FREE FUND TAX FREE FUND TAX FREE FUND TAX FREE FUND - --------------------------------------------------------------------------------------------------------------------------- 10/1/02 10/1/01 10/1/02 4/30/02(1) 10/1/02 10/1/01 10/25/02(1) 10/1/02 10/1/01 TO TO TO TO TO TO TO TO TO 9/30/03 9/30/02 9/30/03 9/30/02 9/30/03 9/30/02 9/30/03 9/30/03 9/30/02 - --------------------------------------------------------------------------------------------------------------------------- Class A: Shares issued 94 72 43 43 365 466 1,072 885 697 Shares issued in lieu of cash distributions 11 13 1 -- 18 14 5 184 151 Shares redeemed (107) (125) (6) -- (268) (348) (444) (1,083) (1,465) - --------------------------------------------------------------------------------------------------------------------------- TOTAL CLASS A TRANSACTIONS (2) (40) 38 43 115 132 633 (14) (617) =========================================================================================================================== Class C: Shares issued 75 69 20 -- -- -- -- 40 133 Shares issued in lieu of cash distributions 4 2 -- -- -- -- -- 26 19 Shares redeemed (14) (2) -- -- -- -- -- (176) (18) - --------------------------------------------------------------------------------------------------------------------------- TOTAL CLASS C TRANSACTIONS 65 69 20 -- -- -- (110) 134 =========================================================================================================================== Class Y: Shares issued 420 678 680 4,073 1,712 1,243 51,494 4,962 7,040 Shares issued in lieu of cash distributions 5 3 19 7 31 29 18 141 83 Shares redeemed (343) (326) (560) (478) (2,207) (1,914) (12,525) (7,734) (9,277) - --------------------------------------------------------------------------------------------------------------------------- TOTAL CLASS Y TRANSACTIONS 82 355 139 3,602 (464) (642) 38,987 (2,631) (2,154) =========================================================================================================================== NET INCREASE (DECREASE) IN CAPITAL SHARES 145 384 197 3,645 (349) (510) 39,620 (2,755) (2,637) ===========================================================================================================================
(1) Commencement of operations. 110 5 > 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 ------------------------------------------------------------ Arizona Tax Free Fund $ 9,512 $ 11,548 California Intermediate Tax Free Fund 8,230 8,382 California Tax Free Fund 6,955 5,383 Colorado Intermediate Tax Free Fund 16,583 9,112 Colorado Tax Free Fund 4,193 8,828 Intermediate Tax Free Fund 120,584 103,096 Minnesota Intermediate Tax Free Fund 39,844 40,592 Minnesota Tax Free Fund 42,508 60,713 Missouri Tax Free Fund 40,497 37,937 Nebraska Tax Free Fund 6,363 5,164 Ohio Tax Free Fund 10,513 8,328 Oregon Intermediate Tax Free Fund 25,703 31,318 Short Tax Free Fund 278,839 187,579 Tax Free Fund 118,263 146,023
The aggregate gross unrealized appreciation and depreciation for securities held by the Funds and the total cost of securities for federal income tax purposes at September 30, 2003, were as follows (000):
FEDERAL AGGREGATE AGGREGATE INCOME GROSS GROSS TAX FUND APPRECIATION DEPRECIATION NET COST ---------------------------------------------------------------------------------------------------------- Arizona Tax Free Fund $ 1,723 $ (2) $ 1,721 $ 20,579 California Intermediate Tax Free Fund 3,703 (3) 3,700 45,072 California Tax Free Fund 2,005 (1) 2,004 25,155 Colorado Intermediate Tax Free Fund 5,329 (12) 5,317 63,895 Colorado Tax Free Fund 2,535 (12) 2,523 24,606 Intermediate Tax Free Fund 59,423 (562) 58,861 668,430 Minnesota Intermediate Tax Free Fund 17,978 (305) 17,673 249,753 Minnesota Tax Free Fund 10,447 (164) 10,283 164,750 Missouri Tax Free Fund 12,207 (27) 12,180 182,488 Nebraska Tax Free Fund 1,802 (8) 1,794 33,410 Ohio Tax Free Fund 1,530 (11) 1,519 38,412 Oregon Intermediate Tax Free Fund 10,252 (470) 9,782 142,190 Short Tax Free Fund 13,094 (7) 13,087 383,718 Tax Free Fund 35,603 (828) 34,775 456,309
6 > PAYMENTS MADE BY AFFILIATES In October 2002, an ineligible security was purchased in the Tax Free Fund. A loss occurred as a result of bringing the Tax Free Fund back into compliance. USBAM fully reimbursed the Tax Free Fund for the loss on this transaction. The amount of the loss and resulting reimbursement was $52,643 or $0.001 per share based upon the shares outstanding as of September 30, 2003, and had no impact on total return. In January 2003, an ineligible security was purchased in the Missouri Tax Free Fund. No loss was incurred as a result of bringing the Missouri Tax Free Fund back into compliance, however USBAM reimbursed Missouri Tax Free Fund for the amount of the commission. The amount of the reimbursement was $750 or $0.000 per share based upon the shares outstanding as of September 30, 2003, and had no impact on total return. 7 > CONCENTRATION OF CREDIT RISK The Arizona Tax Free Fund, California Intermediate Tax Free Fund, California Tax Free Fund, Colorado Intermediate Tax Free Fund, Colorado Tax Free Fund, Minnesota Intermediate Tax Free Fund, Minnesota Tax Free Fund, Missouri Tax Free Fund, Nebraska Tax Free Fund, Ohio Tax Free Fund, and Oregon Intermediate Tax Free Fund invest in debt instruments of municipal issuers in specific states. Although these Funds monitor investment concentration, the issuers' ability to meet their obligations may be affected by economic developments in a specific state or region. Additionally, each state has various guidelines relating to the tax treatment of the income distributed from each Fund. The rating of long-term securities as a percentage of the total value of investments at September 30, 2003, is as follows:
STANDARD & CALIFORNIA COLORADO POOR'S/ ARIZONA INTERMEDIATE CALIFORNIA INTERMEDIATE MOODY'S TAX FREE TAX FREE TAX FREE TAX FREE RATINGS: FUND FUND FUND FUND --------------------------------------------------------------------- AAA/Aaa 64% 55% 56% 60% AA/Aa 16 8 16 17 A/A 5 11 6 6 BBB/Baa 9 23 19 9 NR 6 3 3 8 -------------------------------------------------------- 100% 100% 100% 100%
STANDARD & MINNESOTA POOR'S/ COLORADO INTERMEDIATE INTERMEDIATE MINNESOTA MISSOURI MOODY'S TAX FREE TAX FREE TAX FREE TAX FREE TAX FREE RATINGS: FUND FUND FUND FUND FUND --------------------------------------------------------------------------------- AAA/Aaa 63% 62% 59% 44% 52% AA/Aa 14 15 23 19 45 A/A 8 10 7 14 1 BBB/Baa 12 10 4 7 1 NR 3 3 7 16 1 -------------------------------------------------------------------- 100% 100% 100% 100% 100%
STANDARD & OREGON POOR'S/ NEBRASKA OHIO INTERMEDIATE SHORT MOODY'S TAX FREE TAX FREE TAX FREE TAX FREE TAX FREE RATINGS: FUND FUND FUND FUND FUND ------------------------------------------------------------------------------- AAA/Aaa 46% 61% 58% 45% 51% AA/Aa 41 34 34 22 10 A/A 4 5 3 14 15 BBB/Baa -- -- 3 8 14 NR 9 -- 2 11 10 ------------------------------------------------------------------ 100% 100% 100% 100% 100% -------------------------------------------------------------------------------
Securities rated by only one agency are shown in that category. Securities rated by both agencies are shown with their highest rating. 111 8 > COMMON TRUST FUND CONVERSIONS On October 25, 2002, the Intermediate Tax Free Fund acquired substantially all of the assets of the Total Return Tax Exempt Bond Common Trust Fund (sponsored by U.S. Bank) in exchange for Class Y shares of the Intermediate Tax Free Fund. On November 22, 2002, the Missouri Tax Free Fund acquired substantially all of the assets of the Common Fund M (Joplin) Common Trust Fund (sponsored by U.S. Bank) in exchange for Class Y shares of the Missouri Tax Free Fund. In addition, the First American Short Tax Free Fund shell portfolio acquired substantially all of the assets of the Intermediate Tax Exempt Bond Common Trust Fund (sponsored by U.S. Bank) in exchange for Class Y of the Short Tax Free Fund. The following table illustrates the specifics of the common trust fund conversions of certain Funds included in this annual report (000):
ACQUIRED SHARES ISSUED TO FUNDS NET SHAREHOLDERS OF ACQUIRING FUND COMBINED TAX STATUS ACQUIRED FUND ACQUIRING FUND ASSETS ACQUIRED FUND NET ASSETS NET ASSETS OF TRANSFER - ----------------------------------------------------------------------------------------------------------------------------------- Total Return Tax Exempt Bond Intermediate Tax Free $ 213,002(2) 19,435 $ 516,336 $ 729,338 Non-taxable Common Trust Fund Fund - Class Y Common Fund M (Joplin) Missouri Tax Free Fund $ 32,466(3) 2,697 $ 164,002 $ 196,468 Non-taxable Common Trust Fund - Class Y Intermediate Tax Exempt Bond Short Tax Free Fund $ 314,140 31,414 $ -- $ 314,140 Non-taxable Common Trust Fund - Class Y (1)
(1) Shell portfolio. (2) Includes unrealized appreciation of $18,817. (3) Includes unrealized appreciation of $1,187. 112 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, WHICH 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 Shareholders: For the fiscal year ended September 30, 2003, each Fund has designated long term capital gains, ordinary income, and tax exempt income with regard to distributions paid during the year as follows:
LONG TERM ORDINARY CAPITAL GAINS INCOME RETURN TOTAL DISTRIBUTIONS TAX EXEMPT DISTRIBUTIONS OF DISTRIBUTIONS FUND (TAX BASIS) INTEREST (TAX BASIS) CAPITAL (TAX BASIS) ----------------------------------------------------------------------------------------------------------- Arizona Tax Free Fund 4% 94% 2% 0% 100% California Intermediate Tax Free Fund 5 95 0 0 100 California Tax Free Fund 6 88 6 0 100 Colorado Intermediate Tax Free Fund 0 99 1 0 100 Colorado Tax Free Fund 0 99 1 0 100 Intermediate Tax Free Fund 0 100 0 0 100 Minnesota Intermediate Tax Free Fund 4 96 0 0 100 Minnesota Tax Free Fund 2 94 4 0 100 Missouri Tax Free Fund 9 90 1 0 100 Nebraska Tax Free Fund 2 98 0 0 100 Ohio Tax Free Fund 0 100 0 0 100 Oregon Intermediate Tax Free Fund 4 96 0 0 100 Short Tax Free Fund 0 100 0 0 100 Tax Free Fund 21 79 0 0 100
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. 113 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 earlier of Senior Financial Advisor, First American Funds None 800 Nicollet Mall, death, resignation, Bemis Company, Inc. since Complex: twelve Minneapolis, MN 55402 removal, 2002; Senior Vice registered investment (1939) disqualification, or President, Chief companies, including successor duly elected Financial Officer and sixty one portfolios and qualified. Director Treasurer, Bemis, through of FAIF, since September 2002 2003 Mickey P. Foret, Director Term expiring earlier of Consultant to Northwest First American Funds ADC 800 Nicollet Mall, death, resignation, Airlines, Inc. since Complex: twelve Telecommuni- Minneapolis, MN 55402 removal, 2002; Executive Vice registered investment cations, Inc., (1946) disqualification, or President and Chief companies, including URS Corporation, successor duly elected Financial Officer, sixty one portfolios Champion and qualified. Director Northwest Airlines, Airlines, Inc. of FAIF since September through 2002 2003 Roger A. Gibson, Director Term expiring earlier of Vice President, Cargo - First American Funds None 800 Nicollet Mall, death, resignation, United Airlines, since Complex: twelve Minneapolis, MN 55402 removal, July 2001; Vice registered investment (1946) disqualification, or President, North America companies, including successor duly elected - Mountain Region, United sixty one portfolios and qualified. Director Airlines, prior to July of FAIF since October 2001 1997 Victoria J. Herget, Director Term expiring earlier of Investment consultant and First American Funds None 800 Nicollet Mall, death, resignation, non-profit board member Complex: twelve Minneapolis, MN 55402 removal, since 2001; Managing registered investment (1952) disqualification, or Director of Zurich companies, including successor duly elected Scudder Investments sixty one portfolios and qualified. Director through 2001 of FAIF since September 2003 Leonard W. Kedrowski, Director Term expiring earlier of Owner, Executive and First American Funds None 800 Nicollet Mall, death, resignation, Management Consulting, Complex: twelve Minneapolis, MN 55402 removal, Inc., a management registered investment (1941) disqualification, or consulting firm; former companies, including successor duly elected Chief Executive Officer, sixty one portfolios and qualified. Director Creative Promotions of FAIF since November International, LLC, a 1993 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 earlier of Retired; Director, First American Funds None 800 Nicollet Mall, death, resignation, President and Chief Complex: twelve Minneapolis, MN 55402 removal, Executive Officer, registered investment (1944) disqualification, or Weirton Steel through companies, including successor duly elected 2001 sixty one portfolios and qualified. Director of FAIF since August 2001
114
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 earlier of Owner and President, First American Funds None 800 Nicollet Mall, death, resignation, Excensus TM LLC, a Complex: twelve Minneapolis, removal, consulting firm, since registered investment MN 55402 (1940) disqualification, or 2001; Owner and companies, including successor duly elected President, Strauss sixty one portfolios and qualified. Director Management Company, a of FAIF since April 1991 Minnesota holding company for various 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 years. Owner and President, First American Funds None 800 Nicollet Mall, Director Directors Term expiring Strategic Management Complex: twelve Minneapolis, earlier of death, Resources, Inc., a registered investment MN 55402 (1944) resignation, removal, management consulting companies, including disqualification, or firm; Executive sixty one portfolios successor duly elected Consultant for State Farm and qualified. Chair of Insurance Company FAIF's Board since September 1997; Director of FAIF since August 1987 James M. Wade, Director Term expiring earlier of Owner and President, Jim First American Funds None 800 Nicollet Mall, death, resignation, Wade Homes, a Complex: twelve Minneapolis, removal, homebuilding company, registered investment MN 55402 (1943) disqualification, or since 1999 companies, including successor duly elected sixty one portfolios 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. 115 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 Board Chief Executive Officer of U.S. Bancorp Asset U.S. Bancorp Asset annually; President of FAIF Management, Inc. since May 2001; Chief Executive Management, Inc., since February 2001 Officer of First American Asset Management from 800 Nicollet Mall, December 2000 through May 2001 and of Firstar Minneapolis, MN Investment & Research Management Company from February 55402 (1962)* 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 Departement, Credit Suisse First Boston Mark S. Jordahl, Vice Re-elected by the Board Chief Investment Officer of U.S. Bancorp Asset U.S. Bancorp Asset President - annually; Vice President - Management, Inc. since September 2001; President and Management, Inc. Investments Investments of FAIF since Chief Investment Officer, ING Investment Management - 800 Nicollet Mall, September 2001 Americas, September 2000 to June 2001; Senior Vice Minneapolis, MN President and Chief Investment Officer, ReliaStar 55402 (1960)* Financial Corp., January 1998 to September 2000 Jeffery M. Wilson, Vice Re-elected by the Board Senior Vice President of U.S. Bancorp Asset Management U.S. Bancorp Asset President - annually; Vice President - since May 2001; prior thereto, Senior Vice President of Management, Inc. Administration Administration of FAIF First American Asset Management 800 Nicollet Mall, since March 2000 Minneapolis, MN 55402 (1956)* Robert H. Nelson, Treasurer Re-elected by the Board Senior Vice President of U.S. Bancorp Asset Management U.S. Bancorp Asset annually; Treasurer of FAIF since May 2001; prior thereto, Senior Vice President of Management, Inc. since March 2000 First American Asset Management since 1998 and of 800 Nicollet Mall, Firstar Investment & Research Management Company since Minneapolis, MN February 2001; Senior Vice President of Piper Capital 55402 (1963)* Management Inc. through 1998 James D. Alt, Secretary Re-elected by the Board Partner, Dorsey & Whitney LLP, a Minneapolis-based law 50 South Sixth Street, annually; Assistant firm Suite 1500, Secretary of FAIF from Minneapolis, MN September 1998 through June 55402 (1951) 2002. Secretary of FAIF since June 2002 Michael J. Radmer, Assistant Re-elected by the Board Partner, Dorsey & Whitney LLP, a Minneapolis-based law 50 South Sixth Street, Secretary annually; Assistant firm Suite 1500, Secretary of FAIF since Minneapolis, MN March 2000; Secretary of 55402 (1945) FAIF from September 1999 through March 2000 Kathleen L. Prudhomme, Assistant Re-elected by the Board Partner, Dorsey & Whitney LLP, a Minneapolis-based law 50 South Sixth Street, Secretary annually; Assistant firm Suite 1500, Secretary of FAIF since Minneapolis, MN September 1998 55402 (1953) James R. Arnold, Assistant Re-elected by the Board Vice President, U.S. Bancorp Fund Services, LLC since 615 E. Michigan Street, Secretary annually; Assistant March 2002; Senior Administration Services Manager, UMB Milwaukee, WI 53202 Secretary of FAIF since Fund Services, Inc. through March 2002 (1957)* June 2003 Richard J. Ertel, Assistant Re-elected by the Board Disclosure Counsel, U.S. Bancorp Asset Management, Inc. U.S. Bancorp Asset Secretary annually; Assistant since May 2003; Associate Counsel, Hartford Life and Management, Inc. Secretary of FAIF since Accident Insurance Company from April 2001 through May 800 Nicollet Mall, June 2003 2003; Attorney and Law Clerk, Fortis Financial Group, Minneapolis, through March 2001 MN 55402 (1967)* Douglas G. Hess, Assistant Re-elected by the Board Vice President, U.S. Bancorp Fund Services, LLC since 615 E. Michigan Street, Secretary annually; Assistant November 2002; prior thereto, Assistant Vice President, Milwaukee, WI 53202 Secretary of FAIF since Fund Compliance Administrator, U.S. Bancorp Fund (1967)* September 2001 Services, 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. 116 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(TM) LOGO] DIRECT FUND CORRESPONDENCE TO: FIRST AMERICAN FUNDS P.O. Box 1330 Minneapolis, MN 55440-1330 This report and the financial statements contained herein are 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 P.O. Box 1330 Minneapolis, MN 55440-1330 In an attempt to reduce shareholder costs and help eliminate duplication, First American Funds will try to limit their mailing to one report for each address that lists one or more shareholders with the same last name. If you would like additional copies, please call First American Investor Services at 800.677.FUND or visit firstamericanfunds.com. Bulk Rate U.S. Postage Paid Mpls, MN Permit No. 26388 USPS Master 881 Approved Poly 0212-03 11/2003 AR-TAXFREEINCOME 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 a2122905zex-99_codeeth.txt EXHIBIT 99.CODE ETH Exhibit-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 a2122905zex-99_cert.txt EXHIBIT 99.CERT Exhibit-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 a2122905zex-99_906cert.txt EXHIBIT 99.906CERT Exhibit-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-----