-----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, UdSHqSovfgzdMqoHgjE+v+9k5p99IbW1uAp1DwGBk18JRdGrwweq0QdVJ0HF7Lzx gVj8B8l6oxpBadSoCKd8hw== 0001047469-04-019445.txt : 20040604 0001047469-04-019445.hdr.sgml : 20040604 20040604172130 ACCESSION NUMBER: 0001047469-04-019445 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20040331 FILED AS OF DATE: 20040604 EFFECTIVENESS DATE: 20040604 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-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-05309 FILM NUMBER: 04850506 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-CSRS 1 a2137245zn-csrs.txt N-CSRS ----------------------------- OMB APPROVAL ----------------------------- OMB Number: 3235-0570 Expires: November 30, 2005 Estimated average burden hours per response....... 5.0 ----------------------------- UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-05309 --------------------------------------------- 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) Joseph M. Ulrey III 800 Nicollet Mall Minneapolis, MN 55402 - ------------------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: 800-677-3863 ---------------------------- Date of fiscal year end: September 30, 2004 -------------------------- Date of reporting period: March 31, 2004 ------------------------- Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. Section 3507. Item 1. Report to Shareholders [FIRST AMERICAN FUNDS(TM) LOGO] 2004 SEMIANNUAL 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 [PHOTO OF GEORGE WASHINGTON] FIRST AMERICAN FUNDS OUR IMAGE-GEORGE WASHINGTON HIS RICH LEGACY AS PATRIOT AND LEADER IS WIDELY RECOGNIZED AS EMBODYING THE SOUND JUDGMENT, RELIABILITY, AND STRATEGIC VISION THAT ARE CENTRAL TO OUR BRAND. FASHIONED IN A STYLE REMINISCENT OF AN 18TH CENTURY ENGRAVING, THE ILLUSTRATION CONVEYS THE SYMBOLIC STRENGTH AND VITALITY OF WASHINGTON, WHICH ARE ATTRIBUTES THAT WE VALUE AT FIRST AMERICAN FUNDS. 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 FIRST AMERICAN FUNDS ONLINE TABLE OF CONTENTS Schedule of Investments 2 Statements of Assets and Liabilities 56 Statements of Operations 58 Statements of Changes in Net Assets 60 Financial Highlights 64 Notes to Financial Statements 72
@ firstamericanfunds.com Visit the First American Funds website for useful information on each of our funds, including fund prices, performance, fund management bios, dividends, and downloadable fact sheets. You'll also find college and retirement planning tools and general investor education. [GRAPHIC] ONLINE FEATURES AND FUNCTIONALITY INCLUDE: - - The ability to deepen your understanding of the fund family by learning about the full range of investment choices available to you through First American Funds - - The ability to educate yourself through market and investment strategy commentaries We stand behind our commitment to serve you with excellence. For more information, call First American Investor Services at 800.677.FUND or visit firstamericanfunds.com. 1 SCHEDULE OF INVESTMENTS March 31, 2004 (unaudited) ARIZONA TAX FREE FUND
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------ MUNICIPAL BONDS - 97.2% REVENUE BONDS - 75.1% EDUCATION - 10.0% Energy Management Services, Arizona State University Project, Main Campus, Callable 07/01/12 @ 100 (MBIA) 5.000%, 07/01/13 $ 500 $ 559 Gilbert Industrial Development Authority, Southwest Student Services, Pre-refunded 02/01/09 @ 102 5.850%, 02/01/19 (a) 1,000 1,152 Glendale Industrial Development Authority, Callable 05/15/11 @ 101 5.750%, 05/15/21 250 269 University of Arizona Board of Regents, Series A, Callable 12/01/09 @ 100 (FGIC) 5.800%, 06/01/24 150 169 --------------- 2,149 --------------- HEALTHCARE - 18.3% Arizona Health Facilities Authority, John C. Lincoln Health Network, Callable 12/01/12 @ 101 5.750%, 12/01/32 150 151 Arizona Health Facilities Authority, The Terraces Project, Series A, Callable 11/15/13 @ 101 7.500%, 11/15/23 200 203 Johnson City, Tennessee Health & Elderly Facilities Authority, Callable 07/01/12 @ 103 7.500%, 07/01/25 100 116 Mesa Industrial Development Authority, Discovery Health Systems, Series A, Callable 01/01/10 @ 101 (MBIA) 5.750%, 01/01/25 500 554 5.625%, 01/01/29 500 546 Scottsdale Industrial Development Authority, Scottsdale Healthcare, Callable 12/01/11 @ 101 5.700%, 12/01/21 1,000 1,073 University Medical Center Corporation, Callable 07/01/14 @ 100 5.000%, 07/01/24 500 503 Yavapai Industrial Development Authority, Yavapai Regional Medical Center, Series A, Callable 08/01/13 @ 100 (RAAI) 5.250%, 08/01/21 375 395 Yavapai Industrial Development Authority, Yavapai Regional Medical Center, Series A, Callable 08/01/13 @ 100 6.000%, 08/01/33 100 104 Yuma Industrial Development Authority, Yuma Regional Medical Center, Callable 08/01/07 @ 102 (MBIA) 5.500%, 08/01/17 250 277 --------------- 3,922 --------------- HOUSING - 5.2% Douglas Community Housing Corporation, Rancho La Perilla, Callable 01/20/10 @ 102 (GNMA) 5.900%, 07/20/20 500 536 6.000%, 07/20/25 475 504 Phoenix Industrial Development Authority, The Phoenix Authority, Series 1A, Callable 06/01/10 @ 102 (FHLMC) (FNMA) (GNMA) 5.875%, 06/01/16 $ 75 $ 77 --------------- 1,117 --------------- LEASE REVENUE - 1.6% Navajo County Municipal Property Corporation, Jail Facility (ACA) 5.625%, 07/01/09 310 348 --------------- MISCELLANEOUS - 2.7% Arizona Student Loan Acquisition Authority, Series A, Callable 11/01/09 @ 102 (AMT) 5.900%, 05/01/24 100 106 Greater Arizona Infrastructure Development Authority, Series A, Callable 08/01/08 @ 102 (MBIA) 5.625%, 08/01/20 200 225 Greater Arizona Infrastructure Development Authority, Series A, Callable 08/01/13 @ 100 5.000%, 08/01/23 250 257 --------------- 588 --------------- TAX REVENUE - 16.4% Arizona School Facilities Board, State School Improvement, Callable 07/01/12 @ 100 5.250%, 07/01/16 750 838 5.250%, 07/01/20 250 273 Oro Valley Municipal Water Systems, Pre-refunded 07/01/08 @ 101 (MBIA) 5.550%, 07/01/17 (a) 100 114 Oro Valley, Excise Tax, Callable 07/01/10 @ 101 (AMBAC) 5.200%, 07/01/14 400 450 Phoenix Civic Improvements, Excise Tax, Callable 07/01/09 @ 101 5.750%, 07/01/16 300 343 Surprise Municipal Property Corporation, Callable 07/01/09 @ 101 (FGIC) 5.700%, 07/01/20 300 349 Surprise Municipal Property Corporation, Callable 07/01/14 @ 100 (AMBAC) 5.000%, 07/01/17 750 822 Tempe, Excise Tax, Series A, Callable 07/01/09 @ 100 5.625%, 07/01/20 300 335 --------------- 3,524 --------------- TRANSPORTATION - 12.7% Arizona State Transportation Highway Board, Pre-refunded 07/01/09 @ 100 5.750%, 07/01/18 (a) 200 231 Arizona State Transportation Highway Board, Series A 5.000%, 07/01/09 400 449 Mesa Street & Highway, Pre-refunded 07/01/09 @ 100 (FSA) 5.100%, 07/01/14 (a) 500 562 5.500%, 07/01/16 (a) 100 114 Phoenix Civic Improvements, Series B, Callable 07/01/12 @ 100 (AMT) (FGIC) 5.250%, 07/01/21 250 263 5.250%, 07/01/27 750 780
The accompanying notes are an integral part of the financial statements. FIRST AMERICAN FUNDS SEMIANNUAL REPORT 2004 2
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------ Tucson Street & Highway Improvements, Series 1994-E, Callable 07/01/10 @ 100 (FGIC) 5.000%, 07/01/18 $ 300 $ 320 --------------- 2,719 --------------- UTILITIES - 8.2% Chandler Water & Sewer Improvements, Callable 07/01/10 @ 101 (FSA) 5.800%, 07/01/17 250 289 Peoria Water & Sewer, Callable 07/01/09 @ 100 (FGIC) 5.000%, 07/01/13 400 448 Phoenix Civic Improvements Water System, Pre-refunded 07/01/04 @ 102 5.500%, 07/01/24 (a) 100 103 Puerto Rico Electric Power Authority, Series X, Callable 07/01/05 @ 100 5.500%, 07/01/25 100 104 Tucson Water, Series D, Callable 07/01/09 @ 100 (FGIC) 5.400%, 07/01/17 250 278 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%, 03/01/28 300 315 --------------- 1,747 --------------- TOTAL REVENUE BONDS 16,114 --------------- GENERAL OBLIGATIONS - 19.5% 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 (a) 100 115 5.500%, 07/01/15 (a) 120 138 Mesa, Callable 07/01/09 @ 100 (FGIC) 5.000%, 07/01/18 250 280 Peoria, Callable 04/01/09 @ 100 (FGIC) 5.400%, 04/01/15 100 111 5.000%, 04/01/18 575 618 5.000%, 04/01/19 125 134 Phoenix, Callable 07/01/07 @ 102 5.250%, 07/01/20 250 271 Phoenix, Callable 07/01/10 @ 100 5.250%, 07/01/19 350 381 5.375%, 07/01/25 750 806 Pima County Unified School District #6, Marana, Series A, Callable 07/01/10 @ 101 (FGIC) 5.250%, 07/01/15 250 286 Pima County Unified School District #12, Sunnyside, Callable 07/01/09 @ 100 (FGIC) 5.300%, 07/01/13 150 168 Scottsdale, Pre-refunded 07/01/09 @ 100 5.500%, 07/01/22 (a) 250 286 Tucson 5.500%, 07/01/18 250 291 --------------- TOTAL GENERAL OBLIGATIONS 4,172 --------------- DESCRIPTION PAR (000)/SHARES VALUE (000) - ------------------------------------------------------------------------------------------------ CERTIFICATES OF PARTICIPATION - 2.6% El Mirage, Callable 08/01/04 @ 100 6.900%, 08/01/16 $ 180 $ 181 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 561 --------------- TOTAL MUNICIPAL BONDS (Cost $18,799) 20,847 --------------- MONEY MARKET FUND - 1.6% Federated Arizona Municipal Money Market Fund 338,197 338 --------------- TOTAL MONEY MARKET FUND (Cost $338) 338 --------------- TOTAL INVESTMENTS - 98.8% (Cost $19,137) 21,185 --------------- OTHER ASSETS AND LIABILITIES, NET - 1.2% 261 --------------- TOTAL NET ASSETS - 100.0% $ 21,446 ---------------
(a) Pre-refunded issues are usually 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 March 31, 2004, the aggregate market value of securities subject to the AMT was $1,464,270, which represents 6.8% 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 MBIA - Municipal Bond Insurance Association RAAI - Radian Asset Assurance Inc. 3 SCHEDULE OF INVESTMENTS March 31, 2004 (unaudited) CALIFORNIA INTERMEDIATE TAX FREE FUND
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------ MUNICIPAL BONDS - 94.7% REVENUE BONDS - 63.5% EDUCATION - 9.1% ABAG Financial Authority, Schools of the Sacred Heart, Series A 5.800%, 06/01/08 $ 200 $ 222 Aztec Shops, California State Auxiliary Organization, San Diego State University, Callable 09/01/10 @ 101 5.400%, 09/01/11 1,035 1,136 California State Higher Educational Facilities Authority, Fresno Pacific University, Series A 5.650%, 03/01/07 380 414 5.750%, 03/01/08 400 443 California State Higher Educational Facilities Authority, Occidental College Project, Callable 10/01/07 @ 102 (MBIA) 5.300%, 10/01/10 500 560 California State Higher Educational Facilities Authority, University of La Verne & Western University of Health Sciences, Series B 6.000%, 06/01/10 495 560 California State Higher Educational Facilities Authority, University of Redlands, Series A 5.550%, 06/01/09 225 255 California State Higher Educational Facilities Authority, University of Redlands, Series A, Callable 06/01/10 @ 101 5.700%, 06/01/11 250 284 5.750%, 06/01/12 260 293 California Statewide Communities Development Authority, Viewpoint Schools (ACA) 4.125%, 10/01/14 405 401 --------------- 4,568 --------------- HEALTHCARE - 22.5% ABAG Financial Authority, O'Connor Woods (ACA) 5.250%, 11/01/05 500 530 ABAG Financial Authority, Odd Fellows Home of California (CMI) 4.950%, 08/15/07 500 539 ABAG Financial Authority, San Diego Hospital Association, Series C 4.000%, 03/01/08 300 310 California Health Facilities Financing Authority, Casa Colina, Callable 04/01/12 @ 100 5.500%, 04/01/13 300 323 California Health Facilities Financing Authority, Marshall Medical Center, Series A, Callable 11/01/14 @ 100 (CMI) 4.750%, 11/01/19 1,200 1,204 California Health Facilities Financing Authority, Paradise Valley Estates (CMI) 4.125%, 01/01/10 500 520 4.375%, 01/01/12 540 560 California Health Facilities Financing Authority, Valleycare Medical Center, Series A, Callable 05/01/12 @ 100 (CMI) 4.625%, 05/01/13 300 313 4.800%, 05/01/14 715 747 California State Communities Development Authority, Hospital of Monterey Peninsula, Callable 08/15/08 @ 101 (MBIA) 5.250%, 08/15/09 500 559 California State Health Facilities Authority, Casa de las Campanas, Series A, Callable 08/01/08 @ 100 (CMI) 5.375%, 08/01/09 $ 250 $ 273 California Statewide Communities Development Authority, Elder Care Alliance, Series A 7.250%, 11/15/11 500 501 California Statewide Communities Development Authority, Health Facilities, Series A, Escrowed to Maturity (CMI) 5.200%, 08/01/04 (a) 200 202 California Statewide Communities Development Authority, Kaiser Permanente, Series D, Mandatory Put 03/01/07 @ 100 4.350%, 11/01/36 500 526 California Statewide Communities Development Authority, Kaiser Permanente, Series I, Mandatory Put 05/01/11 @ 100 3.450%, 04/01/35 (b) 500 500 California Statewide Communities Development Authority, Los Angeles Jewish Home (CMI) 5.000%, 11/15/12 500 540 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 65 La Verne, Brethren Hillcrest Homes, Series B, Callable 02/15/13 @ 101 (ACA) 5.600%, 02/15/33 500 524 Marysville Hospital, Fremont Rideout Health Project, Series A, Callable 07/01/08 @ 103 (AMBAC) 5.000%, 01/01/10 500 552 Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities, Hospital de la Concepcion, Series A 5.500%, 11/15/09 650 734 Rancho Mirage Joint Powers Finance Authority, Eisenhower Medical Center, Series A, Callable 07/01/07 @ 102 (MBIA) 5.125%, 07/01/08 500 558 Riverside County Public Financing Authority, Air Force Village West 5.125%, 05/15/05 525 541 --------------- 11,283 --------------- HOUSING - 4.1% ABAG Financial Authority, Archstone Redwood Housing Project, Series A 5.300%, 10/01/08 500 533 California Rural Home Mortgage Finance Authority, Single Family Mortgage, Series D (AMT) (FNMA) (GNMA) 5.250%, 06/01/10 90 90 California State Housing Finance Agency, Series E (MBIA) 5.850%, 08/01/04 150 152 California Statewide Communities Development Authority, Equity Residential, Series B, Mandatory Put 06/15/09 @ 100 5.200%, 12/01/29 500 546
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DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------ California Statewide Communities Development Authority, Multifamily Housing, Citrus Gardens Apartments, Callable 07/01/12 @ 102 5.375%, 07/01/26 $ 700 $ 720 --------------- 2,041 --------------- LEASE REVENUE - 2.7% California State Public Works Board, California Community Colleges, Series A, (MLO) 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%, 01/01/06 545 588 California State Public Works Board, Department of Health Services, Callable 11/01/09 @ 101 (MBIA) (MLO) 5.200%, 11/01/12 500 550 --------------- 1,343 --------------- MISCELLANEOUS - 0.6% Children's Trust Fund, Puerto Rico Tobacco Settlement Issue, Escrowed to Maturity 5.000%, 07/01/08 (a) 250 279 --------------- RECREATIONAL FACILITY AUTHORITY - 1.0% California State University Fresno Association, Auxiliary Organization Event Center, Callable 07/01/12 @ 101 6.000%, 07/01/22 500 525 --------------- SANITATION DISTRICT - 1.1% Los Angeles Municipal Improvement Corporation, Sanitation Equipment, Series A (FSA) (MLO) 6.000%, 02/01/07 500 559 --------------- SCHOOL DISTRICT - 3.7% Golden West Schools Financing Authority, Series A (MBIA) 5.700%, 02/01/13 720 848 5.750%, 02/01/14 520 617 Golden West Schools Financing Authority, Series A, Zero Coupon Bond (MBIA) 5.000%, 02/01/12 (c) 535 396 --------------- 1,861 --------------- TAX REVENUE - 3.7% Long Beach Community Facilities District #5, Towne Center Special Tax, Callable 10/01/06 @ 102 6.100%, 10/01/12 165 175 Los Angeles County Public Works Financing Authority, Regional Park & Open Space District, Series A, Callable 10/01/07 @ 101 5.000%, 10/01/19 500 519 Los Angeles County Transportation Commission, Series B (FGIC) 6.000%, 07/01/04 250 253 Montclair Redevelopment Agency, Redevelopment Project No. IV (RAAI) 3.750%, 10/01/11 135 136 Montclair Redevelopment Agency, Redevelopment Project No. IV, Callable 10/01/13 @ 100 (RAAI) 5.000%, 10/01/31 250 247 West Covina Redevelopment Agency, Fashion Plaza Project 5.125%, 09/01/05 $ 300 $ 315 William S. Hart Joint School Financing Authority, Special Tax, Callable 09/01/05 @ 102 (FSA) 6.100%, 09/01/06 200 217 --------------- 1,862 --------------- TRANSPORTATION - 4.5% San Francisco Bay Area Transportation Financing Authority, Bridge Toll (ACA) 5.500%, 08/01/05 690 726 San Francisco City & County International Airports Commission, Second Series, Callable 05/01/04 @ 101 (AMT) (FGIC) 5.400%, 05/01/06 500 507 San Francisco City & County International Airports Commission, Second Series, Issue 25 (AMT) (FSA) 5.500%, 05/01/08 500 556 San Francisco City & County International Airports Commission, SFO Fuel, Series A (AMT) (FSA) 5.250%, 01/01/07 450 487 --------------- 2,276 --------------- UTILITIES - 10.5% California State Department of Water, Central Valley Project, Series O, Callable 12/01/05 @ 101 5.000%, 12/01/12 500 536 California State Department of Water, Central Valley Project, Series P, Pre-refunded 06/01/06 @ 101 5.300%, 12/01/07 (d) 750 818 California State Department of Water, Series A, Callable 05/01/12 @ 101 5.875%, 05/01/16 500 567 Chino Basin Regional Financing Authority, Inland Empire Utility Agency Sewer Project, Callable 11/01/09 @ 101 (MBIA) 5.200%, 11/01/11 405 452 Imperial, Wastewater Treatment Facility, Callable 10/15/11 @ 102 (FGIC) 5.000%, 10/15/20 1,000 1,069 Metropolitan Water District of Southern California, Series B, Callable 07/01/06 @ 102 (MBIA) 4.875%, 07/01/10 325 352 5.000%, 07/01/14 500 544 Richmond Wastewater Systems, Callable 08/01/09 @ 102 (FGIC) 5.200%, 08/01/11 500 557 Whittier Utility Authority, Callable 06/01/13 @ 100 (MBIA) 4.400%, 06/01/17 305 316 4.500%, 06/01/18 65 67 --------------- 5,278 --------------- TOTAL REVENUE BONDS 31,875 --------------- GENERAL OBLIGATIONS - 24.3% Alisal Unified School District, Series C, Zero Coupon Bond (FGIC) 5.050%, 08/01/08 (c) 860 771 California State, Callable 08/01/13 @ 100 5.000%, 02/01/17 1,000 1,047
5
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------ 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%, 08/01/11 500 600 Jefferson Union High School District, San Mateo County, Series A (MBIA) 6.250%, 02/01/14 300 369 Lemon Grove School District, Election of 1998-B, Zero Coupon Bond (FSA) 3.329%, 11/01/20 (c) 375 170 Los Angeles, Series A, Pre-refunded 09/01/04 @ 102 (MBIA) 5.800%, 09/01/07 (d) 250 260 Montebello Unified School District, Zero Coupon Bond (MBIA) 10.398%, 08/01/21 (c) 700 299 Newhall School District, Series A, Callable 05/01/10 @ 101 (FSA) 5.500%, 05/01/11 540 635 Oxnard School District (MBIA) 5.000%, 08/01/05 600 631 Pomona School District, Series A (MBIA) 5.450%, 02/01/06 250 269 5.500%, 08/01/06 250 274 Pomona School District, Series A, Callable 08/01/11 @ 103 (MBIA) 6.150%, 08/01/15 500 596 Puerto Rico Commonwealth (MBIA) 6.250%, 07/01/08 500 583 Puerto Rico Commonwealth, Series B (FSA) 6.500%, 07/01/15 1,000 1,265 Puerto Rico Commonwealth, Series C, Mandatory Put 07/01/08 @ 100 5.000%, 07/01/18 (b) 500 548 Roseville Joint Union High School District, Callable 08/01/11 @ 101 5.200%, 08/01/20 600 648 Rowland Unified School District, Series A, Callable 09/01/10 @ 101 (FSA) 5.250%, 09/01/25 250 265 San Juan Unified School District, Zero Coupon Bond (FSA) 5.420%, 08/01/16 (c) 390 226 San Mateo County Community College District, Series A, Zero Coupon Bond (FGIC) 5.300%, 09/01/17 (c) 760 413 San Mateo Unified High School District, Series B, Zero Coupon Bond (FGIC) 5.150%, 09/01/17 (c) 1,000 544 Walnut Valley Unified School District, Series A (MBIA) 6.850%, 08/01/07 250 291 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%, 02/01/20 770 878 --------------- TOTAL GENERAL OBLIGATIONS 12,218 --------------- CERTIFICATES OF PARTICIPATION - 6.9% Bakersfield Convention Center Expansion Project, Callable 04/01/07 @ 101 (MBIA) (MLO) 5.500%, 04/01/10 250 276 DESCRIPTION PAR (000)/SHARES VALUE (000) - ------------------------------------------------------------------------------------------------ Escondido Civic Center Project, Escrowed to Maturity (AMBAC) (MLO) 5.800%, 09/01/04 (a) $ 100 $ 102 Grossmont Unified High School District, Callable 09/01/08 @ 102 (FSA) (MLO) 5.400%, 09/01/13 300 339 Kern County Board of Education, Series A, Callable 05/01/08 @ 102 (MBIA) (MLO) 5.200%, 05/01/12 905 1,003 Los Angeles Community College, Energy Retrofit Project (AMBAC) (MLO) 5.000%, 08/15/09 300 341 Los Angeles County Schools, Regionalized Business Services Financing Project, Series A (MLO) 5.000%, 09/01/08 200 223 Los Angeles, Sonnenblick Del Rio, West Los Angeles (AMBAC) (MLO) 5.375%, 11/01/10 500 575 Paradise Unified School District, Measure M Project, Series A, Callable 09/01/05 @ 102 (AMBAC) (MLO) 5.250%, 09/01/07 300 322 West Covina Civic Center Project, Pre-refunded 09/01/05 @ 102 (FSA) (MLO) 5.250%, 09/01/07 (d) 250 269 --------------- TOTAL CERTIFICATES OF PARTICIPATION 3,450 --------------- TOTAL MUNICIPAL BONDS (Cost $43,975) 47,543 --------------- MONEY MARKET FUNDS - 4.3% Federated California Municipal Cash Trust 1,380,389 1,380 Provident California Money Fund 749,989 750 --------------- TOTAL MONEY MARKET FUNDS (Cost $2,130) 2,130 --------------- TOTAL INVESTMENTS - 99.0% (Cost $46,105) 49,673 --------------- OTHER ASSETS AND LIABILITIES, NET - 1.0% 527 --------------- TOTAL NET ASSETS - 100.0% $ 50,200 ---------------
(a) Escrowed to Maturity issues are usually 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 March 31, 2004. (c) The rate shown is the effective yield at the time of purchase. (d) Pre-refunded issues are usually 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 March 31, 2004, the aggregate market value of securities subject to the AMT was $1,639,933, which represents 3.3% 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 RAAI - Radian Asset Assurance Inc. The accompanying notes are an integral part of the financial statements. 6 CALIFORNIA TAX FREE FUND
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------ MUNICIPAL BONDS - 95.9% REVENUE BONDS - 63.7% BUILDING - 4.3% Sacramento City Financing Authority, Callable 06/01/10 @ 101 (MLO) 5.400%, 06/01/18 $ 455 $ 501 5.500%, 06/01/23 645 703 --------------- 1,204 --------------- EDUCATION - 14.6% ABAG Financial Authority, Schools of the Sacred Heart, Series A 5.900%, 06/01/10 200 225 Aztec Shops, California State Auxiliary Organization, San Diego State University 5.200%, 09/01/08 455 498 California State Higher Educational Facilities Authority, Fresno Pacific University, Series A 5.550%, 03/01/06 250 266 California State Higher Educational Facilities Authority, Fresno Pacific University, Series A, Callable 03/01/10 @ 101 6.750%, 03/01/19 380 430 California State Higher Educational Facilities Authority, University of La Verne & Western University of Health Sciences, Series B, Callable 06/01/10 @ 101 6.625%, 06/01/20 215 238 California State Higher Educational Facilities Authority, University of Redlands, Series A, Callable 06/01/10 @ 101 5.950%, 06/01/15 310 346 California State University Foundation, Monterey Bay, Callable 06/01/11 @ 100 (MBIA) 5.300%, 06/01/22 500 537 California State University Fresno Association, Auxiliary Organization Event Center, Callable 07/01/12 @ 101 6.000%, 07/01/22 500 525 University of California, Series K, Callable 09/01/08 @ 101 5.000%, 09/01/20 1,000 1,054 --------------- 4,119 --------------- HEALTHCARE - 8.3% ABAG Finance Authority, Lincoln Glen Manor Senior Citizens, Callable 02/15/08 @ 101 (CMI) 6.100%, 02/15/25 250 267 ABAG Financial Authority, San Diego Hospital Association, Series C 4.000%, 03/01/08 100 103 California Health Facilities Financing Authority, Casa Colina, Callable 04/01/12 @ 100 5.500%, 04/01/13 50 54 California Health Facilities Financing Authority, Marshall Medical Center, Series A, Callable 11/01/14 @ 100 4.750%, 11/01/19 560 562 California Statewide Communities Development Authority, Elder Care Alliance, Series A 7.250%, 11/15/11 250 250 California Statewide Communities Development Authority, Kaiser Permanente, Series D, Mandatory Put 03/01/07 @ 100 4.350%, 11/01/36 250 263 California Statewide Communities Development Authority, Los Angeles Orthopedic Hospital Foundation, Callable 06/01/07 @ 101 (AMBAC) 5.000%, 06/01/12 $ 350 $ 378 Puerto Rico Industrial Tourist, Educational, Medical & Environmental Control Facilities, Hospital de La Concepcion, Series A 5.500%, 11/15/08 400 449 --------------- 2,326 --------------- HOUSING - 4.7% California State Department of Veterans Affairs, Series C, Callable 01/09/11 @ 101 (AMT) 5.500%, 12/01/19 700 739 California State Housing Finance Agency, Single Family Mortgage, Series B (AMT) (FNMA) (GNMA) 5.650%, 06/01/10 55 57 California Statewide Communities Development Authority, Archstone Seascape, Mandatory Put 06/01/08 @ 100 5.250%, 06/01/29 500 530 --------------- 1,326 --------------- SCHOOL DISTRICT - 3.9% Golden West Schools Financing Authority, Series A (MBIA) 5.750%, 02/01/14 250 297 5.800%, 08/01/22 320 382 5.800%, 08/01/23 345 411 --------------- 1,090 --------------- TAX REVENUE - 9.1% Grass Valley Community Redevelopment Agency, Tax Allocation, Callable 12/01/08 @ 102 6.400%, 12/01/34 400 438 Long Beach Community Facilities District #5, Towne Center Special Tax, Callable 10/01/06 @ 102 6.100%, 10/01/12 250 265 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%, 09/01/18 715 782 Los Angeles County Public Works Financing Authority, Regional Park & Open Space District, Series A, Callable 10/01/07 @ 101 5.000%, 10/01/19 500 519 Puerto Rico Commonwealth Highway & Transportation Authority, Series X (MBIA) 5.500%, 07/01/15 100 118 San Francisco Bay Area Transportation Authority, Callable 07/01/09 @ 101 (FGIC) 5.500%, 07/01/26 200 217 --------------- 2,564 --------------- TRANSPORTATION - 3.0% Long Beach Harbor, Callable 05/15/05 @ 102 (AMT) (MBIA) 5.375%, 05/15/20 250 263 Los Angeles Harbor, Series B, Callable 11/01/06 @ 101 (AMT) 5.250%, 11/01/08 300 323
7
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------ San Francisco Airport Commission, SFO Fuel Company, Callable 01/01/08 @ 102 (AMT) (FSA) 5.625%, 01/01/12 $ 250 $ 278 --------------- 864 --------------- UTILITIES - 15.8% California State Department of Water, Series W (FSA) 5.500%, 12/01/14 450 528 California Statewide Communities Development Authority, Waste Management Project, Mandatory Put 04/01/04 @ 100 (AMT) 4.950%, 04/01/11 250 250 Compton Sewer Authority, Callable 09/01/08 @ 102 (MBIA) 5.375%, 09/01/23 1,150 1,244 Contra Costa Water Authority, Series A, Callable 10/01/12 @ 100 (FGIC) 5.000%, 10/01/20 340 363 Los Angeles Power System, Series A, Subseries A-1 (MBIA) 5.000%, 07/01/12 1,225 1,381 Los Angeles Water & Power Development Authority, Pre-refunded 02/15/05 @ 101 6.100%, 02/15/17 (a) 115 121 6.100%, 02/15/17 (a) 35 37 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 --------------- 4,449 --------------- TOTAL REVENUE BONDS 17,942 --------------- GENERAL OBLIGATIONS - 24.5% Acalanes Unified High School District, Zero Coupon Bond, Pre-refunded 08/01/10 @ 70.92 (FGIC) 5.560%, 08/01/16 (a) (b) 700 409 California State, Callable 10/01/10 @ 100 5.250%, 10/01/19 600 630 California State, Callable 02/01/13 @ 100 5.000%, 02/01/24 700 705 Glendora Unified School District, Series A, Callable 09/01/10 @ 101 (FSA) 5.350%, 09/01/20 340 373 Jefferson Union High School District, San Mateo County, Series A (MBIA) 6.250%, 08/01/20 460 571 Pleasant Valley School District, Ventura County, Series A (MBIA) 5.850%, 02/01/19 250 300 Pomona Unified School District, Series A (MBIA) 5.950%, 02/01/17 855 1,032 Sacramento Unified School District, Series A, Pre-refunded 07/01/09 @ 102 5.750%, 07/01/17 (a) 400 476 San Francisco City & County, Series 1, Callable 06/15/07 @ 102 (FGIC) 5.500%, 06/15/09 300 337 Vallejo City Unified School District, Series A (MBIA) 5.900%, 08/01/21 350 421 DESCRIPTION PAR (000)/SHARES VALUE (000) - ------------------------------------------------------------------------------------------------ Ventura County Community College District, Series A, Callable 08/01/12 @ 101 (MBIA) 5.000%, 08/01/18 $ 910 $ 987 Wiseburn School District, Series A, Callable 08/01/10 @ 100 (FGIC) 5.250%, 08/01/22 600 644 --------------- TOTAL GENERAL OBLIGATIONS 6,885 --------------- CERTIFICATES OF PARTICIPATION - 7.7% Bakersfield Convention Center Expansion Project, Callable 04/01/07 @ 101 (MBIA) 5.875%, 04/01/22 250 279 Escondido, Series A, Callable 09/01/10 @ 101 (FGIC) 5.625%, 09/01/20 300 336 Lathrop, Series A, Callable 06/01/10 @ 101 (MBIA) 5.875%, 06/01/30 350 401 Los Angeles, Sonnenblick del Rio Senior Lien, Callable 11/01/10 @ 101 (AMBAC) 6.000%, 11/01/19 330 387 Orange County, Series A, Callable 07/01/06 @ 102 (MBIA) 5.875%, 07/01/19 150 166 Ridgecrest Civic Center Project, Callable 03/01/09 @ 101 6.250%, 03/01/21 250 271 West Kern County Water District, Callable 06/01/10 @ 101 5.200%, 06/01/14 320 340 --------------- TOTAL CERTIFICATES OF PARTICIPATION 2,180 --------------- TOTAL MUNICIPAL BONDS (Cost $24,816) 27,007 --------------- MONEY MARKET FUNDS - 3.0% Federated California Municipal Cash Trust 500,040 500 Provident California Money Fund 342,400 342 --------------- TOTAL MONEY MARKET FUNDS (Cost $842) 842 --------------- TOTAL INVESTMENTS - 98.9% (Cost $25,658) 27,849 --------------- OTHER ASSETS AND LIABILITIES, NET - 1.1% 310 --------------- TOTAL NET ASSETS - 100.0% $ 28,159 ---------------
(a) Pre-refunded issues are usually 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 March 31, 2004, the aggregate market value of securities subject to the AMT was $1,909,718, which represents 6.8% 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 The accompanying notes are an integral part of the financial statements. 8 COLORADO INTERMEDIATE TAX FREE FUND
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------ MUNICIPAL BONDS - 99.0% REVENUE BONDS - 67.4% EDUCATION - 6.6% Colorado State Educational & Cultural Facilities Authority, Bromley East Charter School Project 6.250%, 09/15/11 $ 375 $ 392 Colorado State Educational & Cultural Facilities Authority, Classical Academy Charter School Project, Escrowed to Maturity 6.375%, 12/01/11 (a) 885 1,018 Colorado State Educational & Cultural Facilities Authority, Core Knowledge Charter School, Callable 11/01/09 @ 100 6.850%, 11/01/16 440 482 Colorado State Educational & Cultural Facilities Authority, University of Denver (MBIA) 4.250%, 03/01/13 2,000 2,138 --------------- 4,030 --------------- HEALTHCARE - 17.4% Colorado State Health Facilities Authority, Boulder Hospital (MBIA) 4.875%, 10/01/09 500 556 5.000%, 10/01/10 500 560 Colorado State Health Facilities Authority, Catholic Health Initiatives, Series A 5.000%, 03/01/12 500 547 Colorado State Health Facilities Authority, The Devereux Foundation, Callable 11/01/12 @ 100 (RAAI) 4.200%, 11/01/13 80 82 Colorado State Health Facilities Authority, Evangelical Lutheran Health Facilities, Callable 12/01/10 @ 102 6.900%, 12/01/25 350 389 Colorado State Health Facilities Authority, National Jewish Medical & Research Center Project, Callable 01/01/08 @ 100 5.375%, 01/01/16 700 715 Colorado State Health Facilities Authority, North Colorado Medical Center Project (FSA) 5.000%, 05/15/09 1,000 1,114 Colorado State Health Facilities Authority, Parkview Medical Center 5.500%, 09/01/07 250 271 5.750%, 09/01/08 250 276 5.500%, 09/01/09 500 550 Colorado State Health Facilities Authority, Poudre Valley Healthcare, Callable 12/01/09 @ 101 (FSA) 5.750%, 12/01/10 1,000 1,152 Colorado State Health Facilities Authority, Steamboat Springs Health Project 4.600%, 09/15/04 405 408 Colorado State Health Facilities Authority, Steamboat Springs Health Project, Callable 09/15/08 @ 101 5.300%, 09/15/09 250 259 Colorado State Health Facilities Authority, Vail Medical Center, Callable 01/15/12 @ 100 5.750%, 01/15/22 800 835 Delta County Memorial Hospital District, Callable 09/01/13 @ 100 5.350%, 09/01/17 500 512 La Junta Hospital, Arkansas Valley Regional Medical Center Project 5.200%, 04/01/06 $ 300 $ 312 5.300%, 04/01/07 320 336 5.400%, 04/01/08 335 354 5.500%, 04/01/09 355 376 Montrose Memorial Hospital 5.300%, 12/01/13 260 270 Montrose Memorial Hospital, Callable 12/01/13 @ 102 5.450%, 12/01/14 390 405 University of Colorado Hospital Authority, Callable 11/15/11 @ 100 5.000%, 11/15/14 300 317 --------------- 10,596 --------------- HOUSING - 0.1% Colorado State Housing Finance Authority, Single Family Mortgages, Series B-1, Callable 06/01/05 @ 103 (AMT) 5.875%, 06/01/11 75 76 --------------- MISCELLANEOUS - 8.4% Children's Trust Fund, Puerto Rico Tobacco Settlement Issue, Escrowed to Maturity 5.750%, 07/01/09 (a) 2,000 2,331 Colorado State Educational & Cultural Facilities Authority, Colorado Public Radio 4.800%, 07/01/09 250 269 4.900%, 07/01/10 265 285 Colorado State Educational & Cultural Facilities Authority, Nashville Public Radio 5.500%, 04/01/12 430 471 Colorado State Educational & Cultural Facilities Authority, National Conference of State Legislatures, Callable 06/01/11 @ 100 5.250%, 06/01/13 700 765 Denver City & County, Helen G. Bonfils Foundation Project, Series B, Callable 12/01/07 @ 100 5.125%, 12/01/17 900 973 --------------- 5,094 --------------- POLLUTION CONTROL - 1.7% Moffat County, Pollution Control, Tri-State Generation Project (AMBAC) 5.500%, 11/01/05 1,000 1,067 --------------- RECREATIONAL FACILITY AUTHORITY - 2.2% 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 (b) 1,000 1,081 --------------- 1,310 --------------- TAX REVENUE - 8.4% Boulder County Open Space Capital Improvement Trust Fund, Callable 07/15/10 @ 100 4.750%, 07/15/12 1,000 1,084 Boulder County Sales & Use Tax (FGIC) 5.750%, 12/15/05 870 936 Boulder County Sales & Use Tax, Escrowed to Maturity (FGIC) 5.750%, 12/15/05 (a) 130 140
9
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------ Douglas County Sales & Use Tax (FSA) 6.000%, 10/15/09 $ 200 $ 235 Larimer County Sales & Use Tax (AMBAC) 5.000%, 12/15/10 460 521 Longmont Sales & Use Tax, Callable 11/15/10 @ 100 5.500%, 11/15/15 500 568 Longmont Sales & Use Tax, Callable 11/15/10 @ 101 (AMBAC) 4.875%, 11/15/18 1,000 1,053 Westminster Sales & Use Tax, Series A, Callable 12/01/07 @ 102 (FGIC) 5.250%, 12/01/11 500 562 --------------- 5,099 --------------- TRANSPORTATION - 10.4% 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) 1,575 856 6.400%, 09/01/19 (c) 960 460 5.650%, 09/01/20 (c) 500 225 5.396%, 09/01/22 (c) 1,620 643 Northwest Parkway Public Highway Authority, Convertible, Zero Coupon Bond (AMBAC) 5.000%, 06/15/14 (c) 750 592 5.250%, 06/15/15 (c) 2,000 1,578 5.350%, 06/15/16 (c) 1,000 789 --------------- 6,325 --------------- UTILITIES - 12.2% Arapahoe County Water & Wastewater Authority 5.550%, 12/01/06 140 153 5.650%, 12/01/07 150 169 5.750%, 12/01/08 160 183 Arapahoe County Water & Wastewater Authority, Callable 12/01/09 @ 100 6.000%, 12/01/11 185 216 Boulder Water & Sewer 5.750%, 12/01/10 1,545 1,814 Broomfield Water Activity Enterprise, Callable 12/01/10 @ 101 (MBIA) 5.500%, 12/01/17 500 564 Colorado State Water Resource & Power Development Authority, Small Water Resources, Series A, Callable 11/01/10 @ 100 (FGIC) 5.700%, 11/01/15 100 115 Denver City & County Wastewater, Callable 11/01/12 @ 100 (FGIC) 5.250%, 11/01/17 1,260 1,396 Platte River Power Authority, Series DD, Callable 06/01/07 @ 102 (MBIA) 5.375%, 06/01/17 875 965 Ute Water Conservancy District (MBIA) 6.000%, 06/15/09 680 795 Westminster Water & Wastewater Utility Enterprise, Pre-refunded 12/01/04 @ 100 (AMBAC) 5.800%, 12/01/05 (b) 1,000 1,030 --------------- 7,400 --------------- TOTAL REVENUE BONDS 40,997 --------------- GENERAL OBLIGATIONS - 25.1% Arapahoe County School District #5, Cherry Creek, Callable 12/15/09 @ 100 (STAID) 5.500%, 12/15/11 $ 1,000 $ 1,142 Boulder, Larimer & Weld Counties, School District #R-2, Thompson, Series A, Callable 12/15/04 @ 100 (STAID) 5.900%, 12/15/06 1,000 1,031 Boulder, Larimer & Weld Counties, St. Vrain Valley School District, Callable 12/15/13 @ 100 (MBIA) (STAID) 5.250%, 12/15/14 1,000 1,140 Denver City & County School District #1, Callable 12/01/13 @ 100 (FSA) (STAID) 4.000%, 12/01/14 500 517 Douglas & Elbert Counties, School District #1, Series A, Pre-refunded 12/15/04 @ 101 (MBIA) (STAID) 6.400%, 12/15/11 (b) 1,000 1,048 Eagle, Garfield & Routt Counties, School District #50-J, Pre-refunded 12/01/04 @ 102 (FGIC) (STAID) 6.125%, 12/01/09 (b) 1,040 1,096 El Paso County School District #20, Series A (STAID) 6.100%, 12/15/05 500 541 Elbert County School District #C-1, Elizabeth 5.150%, 12/01/08 500 564 Garfield County School District #RE-2, Callable 12/01/12 @ 100 (FSA) (STAID) 5.250%, 12/01/19 1,530 1,672 Garfield, Pitkin & Eagle Counties School District #1, Callable 06/15/04 @ 101 (MBIA) (STAID) 6.000%, 12/15/04 510 520 Jefferson County School District #R-001 (MBIA) (STAID) 6.250%, 12/15/09 1,000 1,192 Larimer County School District #R-1, Poudre (STAID) 5.400%, 12/15/04 750 773 Puerto Rico Commonwealth, Series C, Mandatory Put 07/01/08 @ 100 5.000%, 07/01/18 (d) 1,000 1,095 Summit County School District #R-1, Pre-refunded 12/01/04 @ 100 6.450%, 12/01/08 (b) 1,000 1,036 Summit County School District #RE-1 (FSA) (STAID) 5.000%, 12/01/14 500 564 Westglenn Metropolitan District, Callable 12/01/09 @ 100 6.000%, 12/01/14 1,220 1,326 --------------- TOTAL GENERAL OBLIGATIONS 15,257 --------------- CERTIFICATES OF PARTICIPATION - 6.5% Aurora, Callable 12/01/04 @ 101 (MLO) 6.000%, 12/01/06 1,000 1,034 Colorado Springs Public Facility Authority, Old City Hall Project (FSA) (MLO) 5.000%, 12/01/10 200 226 Englewood Civic Center Project, Callable 12/01/08 @ 100 (MBIA) (MLO) 4.900%, 06/01/13 585 638 Garfield County Building (AMBAC) (MLO) 5.750%, 12/01/09 400 466
The accompanying notes are an integral part of the financial statements. 10
DESCRIPTION PAR (000)/SHARES VALUE (000) - ------------------------------------------------------------------------------------------------ Garfield County Building Corporation, Callable 12/01/09 @ 101 (AMBAC) (MLO) 5.300%, 12/01/11 $ 400 $ 451 Westminster Recreational Facilities, Callable 09/01/09 @ 101 (MBIA) (MLO) 5.200%, 09/01/10 1,000 1,125 --------------- TOTAL CERTIFICATES OF PARTICIPATION 3,940 --------------- TOTAL MUNICIPAL BONDS (Cost $55,189) 60,194 --------------- AFFILIATED MONEY MARKET FUND - 0.6% First American Tax Free Obligations Fund, Cl Z (e) 376,527 377 --------------- TOTAL AFFILIATED MONEY MARKET FUND (Cost $377) 377 --------------- TOTAL INVESTMENTS - 99.6% (Cost $55,566) 60,571 --------------- OTHER ASSETS AND LIABILITIES, NET - 0.4% 221 --------------- TOTAL NET ASSETS - 100.0% $ 60,792 ---------------
(a) Escrowed to Maturity issues are usually 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 usually 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) Variable Rate Security - The rate shown is the rate in effect as of March 31, 2004. (e) Investment in affiliated security. 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 March 31, 2004, the aggregate market value of securities subject to the AMT was $75,815, which represents 0.1% of net assets. Cl - Class FGIC - Financial Guaranty Insurance Corporation FSA - Financial Security Assurance MBIA - Municipal Bond Insurance Association MLO - Municipal Lease Obligation RAAI - Radian Asset Assurance Inc. STAID - State Aid Withholding COLORADO TAX FREE FUND
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------ MUNICIPAL BONDS - 98.1% REVENUE BONDS - 65.8% EDUCATION - 7.6% 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 (RAAI) 6.000%, 12/01/16 200 231 Colorado State Educational & Cultural Facilities Authority, Classical Academy Charter School Project 6.375%, 12/01/11 615 707 Colorado State Educational & Cultural Facilities Authority, Core Knowledge Charter School, Callable 11/01/09 @ 100 6.850%, 11/01/16 100 110 Colorado State Educational & Cultural Facilities Authority, University of Denver Project, Callable 03/01/11 @ 100 (AMBAC) 5.350%, 03/01/20 500 547 University of Northern Colorado, Auxiliary Facility System, Pre-refunded 06/01/07 @ 100 (MBIA) 5.600%, 06/01/24 (a) 165 184 --------------- 1,995 --------------- HEALTHCARE - 17.9% Boulder County Longmont United Hospital Project (RAAI) 5.250%, 12/01/09 260 291 5.300%, 12/01/10 330 370 Colorado State Health Facilities Authority, Covenant Retirement Communities, Series B, Callable 12/01/12 @ 101 6.125%, 12/01/33 350 364 Colorado State Health Facilities Authority, Evangelical Lutheran Health Facilities, Callable 12/01/10 @ 102 6.900%, 12/01/25 150 167 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%, 09/01/11 300 331 Colorado State Health Facilities Authority, Portercare Adventist Project, Callable 11/15/11 @ 101 6.500%, 11/15/23 600 669 Colorado State Health Facilities Authority, Steamboat Springs Health Project, Callable 09/15/08 @ 101 5.300%, 09/15/09 250 259 Colorado State Health Facilities Authority, Vail Valley Medical Center, Callable 01/15/12 @ 100 5.800%, 01/15/27 500 518 Colorado State Health Facilities Authority, Vail Valley Medical Center, Series A, Callable 01/15/05 @ 101 (ACA) 6.500%, 01/15/13 250 258
11
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------ Delta County Memorial Hospital District, Callable 09/01/13 @ 100 5.350%, 09/01/17 $ 220 $ 225 La Junta, Arkansas Valley Regional Medical Center Project, Callable 04/01/09 @ 101 6.100%, 04/01/24 100 102 Montrose Memorial Hospital, Callable 12/01/13 @ 102 6.375%, 12/01/23 130 139 University of Colorado Hospital Authority 5.600%, 11/15/31 100 103 --------------- 4,644 --------------- HOUSING - 2.4% Colorado State Housing Finance Authority, Multifamily Project, Class I, Series B-4, Callable 10/01/10 @ 100 5.900%, 04/01/31 100 106 Colorado State Housing Finance Authority, Series E-2, Callable 08/01/10 @ 105 (AMT) 7.000%, 02/01/30 100 102 Colorado State Housing Finance Authority, Single Family Housing Program, Series A-2, Callable 10/01/09 @ 105 (AMT) 7.450%, 10/01/16 30 31 Colorado State Housing Finance Authority, Single Family Housing Program, Series B-2, Callable 04/01/10 @ 105 (AMT) 7.100%, 04/01/17 65 66 El Paso County, Series D, Zero Coupon Bond, Escrowed to Maturity (AMT) (FSA) (GNMA) 6.000%, 07/01/11 (b) (c) 400 306 --------------- 611 --------------- MISCELLANEOUS - 4.4% Colorado State Educational & Cultural Facilities Authority, Nashville Public Radio, Callable 04/01/12 @ 100 5.875%, 04/01/22 250 264 Colorado State Educational & Cultural Facilities Authority, National Conference of State Legislatures, Callable 06/01/11 @ 100 5.250%, 06/01/21 750 780 Denver City & County, Helen G. Bonfils Foundation Project, Series B, Callable 12/01/07 @ 100 5.125%, 12/01/17 100 108 --------------- 1,152 --------------- 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 --------------- TAX REVENUE - 7.6% Boulder County Sales & Use Tax, Series A, Callable 12/15/09 @ 101 (FGIC) 5.800%, 12/15/16 495 572 6.000%, 12/15/19 200 234 Douglas County Sales & Use Tax, Callable 10/15/10 @ 100 (FSA) 5.625%, 10/15/20 200 225 Highlands Ranch Metropolitan District #2, Callable 06/15/06 @ 101 (FSA) 5.000%, 06/15/16 200 214 Larimer County Sales & Use Tax, Callable 12/15/10 @ 100 (AMBAC) 5.625%, 12/15/18 $ 100 $ 114 Metex Metropolitan District, Series A, Callable 12/01/07 @ 101 (MBIA) 5.800%, 12/01/16 350 395 Mountain Village Metropolitan District, San Miguel County, Callable 12/01/07 @ 101 (MBIA) 5.200%, 12/01/17 200 219 --------------- 1,973 --------------- TRANSPORTATION - 11.9% Denver City & County Airport, Series E, Callable 11/15/07 @ 101 (MBIA) 5.250%, 11/15/23 500 530 The E-470 Public State Authority, Series A, Callable 09/01/07 @ 101 (MBIA) 5.000%, 09/01/16 750 813 Northwest Parkway Public Highway Authority, Convertible, Zero Coupon Bond (AMBAC) 5.000%, 06/15/14 (b) 500 395 5.160%, 06/15/15 (b) 750 592 Northwest Parkway Public Highway Authority, Convertible, Zero Coupon Bond, Callable 06/15/16 @ 100 (AMBAC) 5.700%, 06/15/21 (b) 1,000 763 --------------- 3,093 --------------- UTILITIES - 13.2% Arapahoe County Water & Wastewater (MBIA) 5.000%, 12/01/26 250 261 Boulder Water & Sewer, Callable 12/01/10 @ 100 5.700%, 12/01/19 300 342 Broomfield Water Activity Enterprise, Callable 12/01/10 @ 101 (MBIA) 5.500%, 12/01/19 400 447 Colorado Water Power Development Authority 5.250%, 09/01/11 300 345 Denver City & County, Wastewater, Callable 11/01/12 @ 100 (FGIC) 5.000%, 11/01/20 500 531 5.125%, 11/01/22 250 266 Fort Collins Wastewater Utility Enterprise, Callable 12/01/10 @ 100 (FSA) 5.500%, 12/01/20 300 335 Platte River Power Authority, Series DD, Callable 06/01/07 @ 102 (MBIA) 5.375%, 06/01/17 500 552 Pueblo County Board of Waterworks, Series A, Callable 11/01/10 @ 100 (FSA) 5.875%, 11/01/18 305 354 --------------- 3,433 --------------- TOTAL REVENUE BONDS 17,119 --------------- GENERAL OBLIGATIONS - 17.4% Adams & Arapahoe Counties Joint School District #28J, Aurora, Series C, Pre-refunded 12/01/12 @ 102 (STAID) 5.350%, 12/01/15 (a) 300 321
The accompanying notes are an integral part of the financial statements. 12
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------ Adams County School District #12, Callable 12/15/07 @ 101 (FGIC) 5.400%, 12/15/16 $ 250 $ 283 Arapahoe County School District #5, Cherry Creek, Callable 12/15/09 @ 100 (STAID) 5.500%, 12/15/19 550 615 Boulder Open Space Acquisition, Callable 08/15/10 @ 100 5.450%, 08/15/16 350 394 Clear Creek School District #1, Pre-refunded 12/01/10 @ 100 (FSA) (STAID) 5.750%, 12/01/17 (a) 200 235 Denver City & County School District #1, Callable 12/01/13 @ 100 (FSA) (STAID) 4.750%, 12/01/21 250 258 Douglas County School District #RE-1, Callable 12/15/12 @ 100 (FSA) 5.125%, 12/15/25 750 792 Eagle Bend Metropolitan District #2, Callable 12/01/13 @ 100 (RAAI) 5.250%, 12/01/23 250 262 El Paso County School District #38, Pre-refunded 12/01/10 @ 100 (STAID) 6.375%, 12/01/18 (a) 200 242 6.000%, 12/01/24 (a) 250 297 El Paso County School District #49, Falcon, Series A, Callable 12/01/09 @ 105 (FSA) (STAID) 6.000%, 12/01/18 200 236 Morgan County School District #RE-3, Callable 12/01/09 @ 100 (AMBAC) 4.800%, 12/01/18 250 260 Pueblo County, School District #70, Pre-refunded 12/01/09 @ 100 (FGIC) (STAID) 6.000%, 12/01/18 (a) 100 118 Puerto Rico Commonwealth, Public Improvements, Callable 07/01/05 @ 101 6.000%, 07/01/29 200 214 --------------- TOTAL GENERAL OBLIGATIONS 4,527 --------------- CERTIFICATES OF PARTICIPATION - 14.9% Arapahoe County Building Finance Authority, Callable 02/15/10 @ 100 (AMBAC) 5.250%, 02/15/19 400 434 5.250%, 02/15/21 650 698 Broomfield Open Space Park & Recreation Facilities, Callable 12/01/10 @ 100 (AMBAC) 5.500%, 12/01/20 800 888 Colorado Springs Old City Hall Project, Callable 12/01/10 @ 100 (FSA) 5.500%, 12/01/17 200 225 5.500%, 12/01/20 200 222 Denver City & County, Series A, Callable 05/01/10 @ 100 (MBIA) 5.500%, 05/01/17 400 449 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%, 12/15/17 250 282 DESCRIPTION PAR (000)/SHARES VALUE (000) - ------------------------------------------------------------------------------------------------ Garfield County, Callable 12/01/09 @ 101 (AMBAC) 5.750%, 12/01/19 $ 300 $ 343 --------------- TOTAL CERTIFICATES OF PARTICIPATION 3,873 --------------- TOTAL MUNICIPAL BONDS (Cost $22,810) 25,519 --------------- AFFILIATED MONEY MARKET FUND - 0.7% First American Tax Free Obligations Fund, Cl Z (d) 186,276 186 --------------- TOTAL AFFILIATED MONEY MARKET FUND (Cost $186) 186 --------------- TOTAL INVESTMENTS - 98.8% (Cost $22,996) 25,705 --------------- OTHER ASSETS AND LIABILITIES, NET - 1.2% 320 --------------- TOTAL NET ASSETS - 100.0% $ 26,025 ---------------
(a) Pre-refunded issues are usually 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 usually backed by U.S. Government obligations. If callable, these bonds may still be subject to call at the call date and price indicated. (d) Investment in affiliated security. 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 AMBAC - American Municipal Bond Assurance Corporation AMT - Alternative Minimum Tax. As of March 31, 2004, the aggregate market value of securities subject to the AMT was $503,992, which represents 1.9% 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 13 INTERMEDIATE TAX FREE FUND
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------ MUNICIPAL BONDS - 98.7% ALABAMA - 0.8% Alabama State Docks Department, Callable 10/01/08 @ 102 (MBIA) (RB) 5.250%, 10/01/10 $ 3,000 $ 3,387 Anniston, Regional Medical Center Board, Northeast Alabama Regional Medical Center Project, Escrowed to Maturity (RB) 8.000%, 07/01/11 (a) 1,400 1,749 West Jefferson Amusement & Public Park Authority, First Mortgage, Visionland Alabama Project, Pre-refunded 12/01/06 @ 102 (RB) 7.500%, 12/01/08 (b) 845 948 --------------- 6,084 --------------- ALASKA - 1.1% Alaska Energy Authority, Bradley Lake, Third Series (FSA) (RB) 6.000%, 07/01/10 2,610 3,076 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%, 12/01/04 700 721 Alaska State Housing Finance Corporation, Series A, Callable 06/01/04 @ 102 (RB) 5.400%, 12/01/23 3,000 3,050 Alaska State Housing Finance Corporation, Series A, Callable 12/01/05 @ 102 (MBIA) (RB) 5.400%, 12/01/08 1,000 1,053 --------------- 8,282 --------------- ARIZONA - 2.9% Arizona Health Facilities Authority, The Terraces Project, Series A, Callable 11/15/13 @101 (RB) 7.500%, 11/15/23 3,300 3,345 Arizona State Municipal Financing Program, Escrowed to Maturity (COP) (MLO) 8.750%, 08/01/07 (a) 1,500 1,829 Arizona State Municipal Financing Program, Series 15, Escrowed to Maturity (COP) (MLO) 8.750%, 08/01/07 (a) 2,085 2,541 Arizona State Transportation Highway Board (RB) 8.000%, 07/01/05 5,000 5,420 Maricopa County School District #69, Paradise Valley (GO) (MBIA) 5.300%, 07/01/11 1,000 1,150 Phoenix Street & Highway User (RB) 6.500%, 07/01/09 180 182 6.250%, 07/01/11 900 911 Tucson Airport Authority (FSA) (RB) 5.000%, 06/01/13 2,760 3,093 Yavapai County Industrial Development Authority, Waste Management Project, Mandatory Put 06/01/05 @ 100 (AMT) (RB) 4.625%, 06/01/27 2,000 2,060 --------------- 20,531 --------------- ARKANSAS - 0.4% Pulaski County, Residential Housing Facilities Board, Escrowed to Maturity (FHA) (RB) (VA) 7.250%, 06/01/10 (a) 2,640 3,033 --------------- CALIFORNIA - 4.3% ABAG Financial Authority, Archstone Redwood Housing Project, Series A (RB) 5.300%, 10/01/08 $ 290 $ 309 ABC Unified School District, Series A (GO) (MBIA) 4.900%, 02/01/20 1,615 1,758 California State Department of Water, Series A, Callable 05/01/12 @ 101 (RB) 5.875%, 05/01/16 2,000 2,268 California State, Callable 08/01/13 @ 100 (GO) 5.000%, 02/01/16 1,000 1,053 5.000%, 02/01/17 2,000 2,094 California State, Callable 11/01/11 @ 100 (GO) 5.000%, 11/01/18 5,000 5,169 California State, Callable 02/01/14 @ 100 (GO) 5.000%, 02/01/21 1,500 1,536 California Statewide Communities Development Authority, Archstone Seascape, Mandatory Put 06/01/08 @ 100 (RB) 5.250%, 06/01/29 1,000 1,060 California Statewide Communities Development Authority, Elder Care Alliance, Series A (RB) 7.250%, 11/15/11 1,450 1,452 California Statewide Communities Development Authority, Kaiser Permanente, Series I, Mandatory Put 05/01/11 @ 100 (RB) 3.450%, 04/01/35 (c) 500 500 California Statewide Communities Development Authority, Los Angeles Jewish Home (CMI) (RB) 5.000%, 11/15/12 1,210 1,306 California Statewide Communities Development Authority, Multifamily Housing, Citrus Gardens Apartments, Callable 07/01/12 @ 102 (RB) 5.375%, 07/01/26 500 514 California Statewide Communities Development Authority, Waste Management Project, Mandatory Put 04/01/04 @ 100 (AMT) (RB) 4.950%, 04/01/11 750 751 Golden State Tobacco Securitization, Callable 06/01/10 @ 100 (GO) (MLO) 5.600%, 06/01/28 2,450 2,509 Golden State Tobacco Securitization, Series B (RB) (MLO) 5.000%, 06/01/12 1,000 1,081 La Verne, Brethren Hillcrest Homes, Series B, Callable 02/15/13 @ 101 (ACA) (COP) 5.600%, 02/15/33 1,150 1,205 Mountain View Los Altos School District, Callable 05/01/07 @ 102 (GO) 6.500%, 05/01/17 2,000 2,300 Roseville California JT High School, Callable 08/01/11 @ 101 (GO) 5.100%, 08/01/19 390 420 San Marcos, Escrowed to Maturity, Zero Coupon Bond (COP) (MLO) 4.890%, 02/15/06 (a) (d) 1,085 1,054 San Mateo Unified High School District, Series B, Zero Coupon Bond (FGIC) (GO) 5.150%, 09/01/17 (d) 1,000 544 Victor Elementary School District, Series A, Zero Coupon Bond (FGIC) (GO) 5.660%, 08/01/23 (d) 2,030 765
14
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------ Woodland Financial Authority, Callable 03/01/13 @ 102 (MLO) (RB) (XLCA) 4.700%, 03/01/19 $ 815 $ 853 4.800%, 03/01/20 855 896 --------------- 31,397 --------------- COLORADO - 6.2% Arapahoe County, Single Family, Escrowed to Maturity, Zero Coupon Bond (RB) 3.340%, 09/01/10 (a) (d) 9,320 7,570 Colorado Department of Transportation (AMBAC) (RB) 6.000%, 06/15/08 3,000 3,452 Colorado Springs, Series A (RB) (VRDO) 1.017%, 11/01/29 1,900 1,900 Colorado State Educational & Cultural Facilities Authority, Bromley East Charter School Project, Callable 09/15/11 @ 100 (RB) 6.750%, 09/15/15 1,200 1,232 Colorado State Educational & Cultural Facilities Authority, Classical Academy Charter School Project, Escrowed to Maturity (RB) 6.375%, 12/01/11 (a) 880 1,012 Colorado State Educational & Cultural Facilities Authority, Classical Academy Charter School Project, Pre-refunded 12/01/11 @ 100 (RB) 6.750%, 12/01/16 (b) 1,500 1,856 7.250%, 12/01/21 (b) 1,500 1,902 Colorado State Educational & Cultural Facilities Authority, Pinnacle Charter School Project (RB) 5.250%, 12/01/11 1,490 1,694 Colorado State Health Facilities Authority, Catholic Health Initiatives, Series A (RB) 5.000%, 03/01/12 745 815 Colorado State Health Facilities Authority, Retirement Facilities, Escrowed to Maturity, Zero Coupon Bond (RB) 5.500%, 07/15/20 (a) (d) 10,000 4,552 Colorado State Housing Finance Authority, Series A-2, Callable 05/01/06 @ 105 (RB) 7.150%, 11/01/14 235 236 Denver City & County School District #1, Callable 12/01/13 @ 100 (FSA) (GO) (STAID) 4.000%, 12/01/14 4,945 5,109 El Paso County School District #2, Harrison, Callable 12/01/11 @ 100 (FGIC) (GO) (STAID) 5.500%, 12/01/16 1,280 1,443 Jefferson County School District #R-1 (GO) (MBIA) 6.500%, 12/15/11 2,000 2,473 Jefferson County School District #R-1, Callable 12/15/08 @ 101 (FGIC) (GO) (STAID) 5.250%, 12/15/11 1,000 1,125 Loveland, Escrowed to Maturity (GO) 8.875%, 11/01/05 (a) 745 805 Mesa County, Escrowed to Maturity, Zero Coupon Bond (RB) 3.539%, 12/01/11 (a) (d) 5,500 4,199 Montrose Memorial Hospital, Callable 12/01/13 @ 102 (RB) 5.700%, 12/01/17 2,170 2,239 Westminster Water & Wastewater Utilities Improvement, Callable 12/01/04 @ 100 (AMBAC) (RB) 6.000%, 12/01/09 1,000 1,030 --------------- 44,644 --------------- 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 $ 4,768 --------------- DELAWARE - 0.7% Delaware State Economic Development Authority, Pre-refunded 07/01/05 @ 102 (RB) 7.625%, 07/01/25 (b) 2,800 3,070 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 1,303 New Castle County, Callable 04/01/04 @ 102 (GO) 5.300%, 10/01/05 710 726 --------------- 5,099 --------------- FLORIDA - 1.5% Escambia County Health Facilities Authority, Ascension Health Credit, Series A (RB) 5.250%, 11/15/14 2,000 2,226 Greater Orlando Aviation Authority, Airport Facilities (AMT) (FGIC) (RB) 5.250%, 10/01/09 1,815 2,017 Lee County Industrial Development Authority, Shell Point Village Health Project, Series A (RB) 5.500%, 11/15/08 1,000 1,090 Palm Beach County Health Facilities Authority, Abbey Delray South, Life Care Retirement Community (RB) 5.250%, 10/01/13 1,400 1,454 Palm Beach County Housing Facilities, Lourdes Noreen McKeen (RAAI) (RB) 3.500%, 12/01/08 785 815 3.750%, 12/01/09 815 848 Tampa Excise Tax, Callable 04/01/04 @ 100 (RB) 6.125%, 04/01/08 2,000 2,213 --------------- 10,663 --------------- GEORGIA - 0.2% Cherokee County Water & Sewer Authority, Escrowed to Maturity, Callable 08/01/04 @ 101.50 (MBIA) (RB) 11.250%, 08/01/07 (a) 1,445 1,755 --------------- HAWAII - 1.4% Hawaii State Airport System, Series B (AMT) (FGIC) (RB) 6.250%, 07/01/06 2,000 2,194 Hawaii State Harbor System, Series A (AMT) (FSA) (RB) 5.250%, 07/01/08 2,270 2,520 Hawaii State, Series CY (FSA) (GO) 5.250%, 02/01/10 5,000 5,672 --------------- 10,386 --------------- 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 1,067 --------------- ILLINOIS - 17.4% Bolingbrook, Capital Appreciation, Escrowed to Maturity, Zero Coupon Bond (FGIC) (GO) 4.950%, 01/01/06 (a) (d) 1,000 973
15
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------ Bolingbrook, Capital Appreciation, Zero Coupon Bond (GO) 4.850%, 01/01/05 (d) $ 1,080 $ 1,071 Champaign County Community Unit School District #004 (GO) 8.250%, 01/01/09 1,315 1,635 Chicago Water, Zero Coupon Bond (FGIC) (RB) 6.776%, 11/01/08 (d) 5,150 4,563 5.260%, 11/01/09 (d) 6,450 5,462 Chicago, City Colleges, Zero Coupon Bond (FGIC) (GO) 5.900%, 01/01/15 (d) 10,000 6,316 Chicago, Midway Airport Project, Series C (MBIA) (RB) 5.500%, 01/01/14 1,300 1,483 Chicago, Park District, Parking Facilities Authority (ACA) (RB) 5.500%, 01/01/08 3,585 4,011 Chicago, Project & Refunding (FSA) (GO) 5.500%, 01/01/13 1,000 1,157 Chicago, Project & Refunding, Series A (FGIC) (GO) 5.250%, 01/01/11 5,000 5,676 Chicago, Single Family Mortgages, Series A, Callable 03/01/06 @ 103 (AMT) (FHLMC) (FNMA) (GNMA) (RB) 5.250%, 03/01/13 55 56 Cook County Community High School District #219, Zero Coupon Bond (FSA) (GO) 4.900%, 12/01/07 (d) 1,560 1,434 Cook County Community Unit School District #65, Evanston, Series A (FSA) (GO) 6.375%, 05/01/09 3,000 3,544 Cook County Community Unit School District #102, Zero Coupon Bond (FGIC) (GO) 5.200%, 12/01/13 (d) 2,440 1,663 Cook County Community Unit School District #401 Elmwood Park, Zero Coupon Bond (FSA) (GO) 5.800%, 12/01/11 (d) 3,625 2,767 Cook County High School District #200, Oak Park, Zero Coupon Bond (FSA) (GO) 4.900%, 12/01/06 (d) 2,265 2,154 Cook County School District #123, Oak Lawn, Capital Appreciation, Zero Coupon Bond (MBIA) (GO) 5.100%, 12/01/15 (d) 2,250 1,360 Cook County, Escrowed to Maturity (MBIA) (GO) 7.250%, 11/01/07 (a) 2,000 2,204 Cook County, Series A (MBIA) (GO) 6.250%, 11/15/11 1,000 1,210 Du Page County Community High School District #94, West Chicago (FSA) (GO) 7.250%, 11/01/09 1,780 2,196 Granite Single Family Mortgage (RB) 7.750%, 10/01/11 760 920 Illinois Development Finance Authority, Midwestern University, Series B, Callable 05/15/11 @ 101 (RB) 5.750%, 05/15/16 350 377 Illinois Health Facilities Authority, St. Benedict, Series 2003A-2, Callable 11/15/05 @ 100 (RB) 5.750%, 11/15/15 2,750 2,755 Illinois State (AMBAC) (COP) (MLO) 6.000%, 07/01/06 1,000 1,097 Illinois State Development Finance Authority, Elgin School District, Zero Coupon Bond (RB) 5.210%, 01/01/18 (d) $ 2,750 $ 1,442 Illinois State Development Finance Authority, Elmhurst Community School #205, Callable 01/01/11 @ 100 (FSA) (RB) 6.375%, 01/01/13 1,025 1,222 Illinois State Development Finance Authority, Waste Management Project (AMT) (RB) 5.850%, 12/01/07 1,000 1,085 Illinois State Educational Facilities Authority, Loyola University of Chicago, Series A, Escrowed to Maturity (RB) 7.000%, 07/01/07 (a) 1,000 1,133 Illinois State Educational Facilities Authority, The Art Institute of Chicago, Mandatory Put 03/01/06 @ 100 (RB) 4.700%, 03/01/30 4,500 4,722 Illinois State Health Facilities Authority (RB) 6.500%, 02/15/06 1,130 1,221 Illinois State Health Facilities Authority, Covenant Retirement Communities, Series A (RAAI) (RB) 3.875%, 12/01/08 1,000 1,052 4.350%, 12/01/10 1,605 1,707 Illinois State Health Facilities Authority, Evangelical, Escrowed to Maturity (RB) 6.750%, 04/15/12 (a) 1,320 1,606 Illinois State Health Facilities Authority, Mercy Hospital & Medical Center, Escrowed to Maturity, Callable 04/01/04 @ 100 (RB) 10.000%, 01/01/15 (a) 780 1,091 Illinois State Sales Tax (RB) 6.000%, 06/15/09 2,500 2,920 5.100%, 06/15/10 2,000 2,260 Illinois State, First Series, Callable 08/01/10 @ 100 (GO) 5.500%, 08/01/15 4,500 5,089 Illinois State, Pre-refunded 06/01/09 @ 101 (FGIC) (GO) 5.375%, 06/01/10 (b) 2,000 2,297 Kane County School District #129, Aurora West Side, Series A (GO) (MBIA) 6.500%, 02/01/07 1,000 1,125 Lake County Community School District #50, Woodland, Series A, Callable 12/01/08 @ 100 (FGIC) (GO) 5.000%, 12/01/09 1,000 1,104 Lake County Community Unit School District #50, Woodland (GO) (MBIA) 8.500%, 01/01/07 1,460 1,716 Lake County Community Unit School District #60, Waukegan, Series B (FSA) (GO) 6.000%, 12/01/07 2,785 3,181 7.500%, 12/01/08 3,640 4,457 Lake County School District #56, Gurnee (FGIC) (GO) 8.375%, 01/01/10 1,290 1,662 Madison & Jersey Counties Unit School District #11, Alton, Capital Appreciation, Zero Coupon Bond (FSA) (GO) 5.350%, 12/01/19 (d) 2,100 993
16
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------ Metropolitan Pier & Exposition Authority, State Sales Tax, Series A, Zero Coupon Bond (FGIC) (RB) 5.000%, 06/15/09 (d) $ 35 $ 30 Metropolitan Pier & Exposition Authority, State Sales Tax, Series A, Callable 06/15/06 @ 102 (AMBAC) (RB) 6.000%, 06/15/07 750 830 Metropolitan Pier & Exposition Authority, State Sales Tax, Series A, Callable 12/15/09 @ 101 (FGIC) (RB) 5.550%, 12/15/11 675 774 Metropolitan Pier & Exposition Authority, State Sales Tax, Series A, Escrowed to Maturity, Zero Coupon Bond (FGIC) (RB) 5.000%, 06/15/09 (a) (d) 1,465 1,262 Metropolitan Pier & Exposition Authority, State Sales Tax, Series A, Pre-refunded 06/15/06 @ 102 (AMBAC) (RB) 6.000%, 06/15/07 (b) 250 279 Morton Grove Residential Housing, Escrowed to Maturity (MBIA) (RB) 7.350%, 09/01/09 (a) (e) 5,570 6,888 Rockford School District #205 (FGIC) (GO) 5.000%, 02/01/14 500 558 Springfield Electric Revenue (MBIA) (RB) 6.000%, 03/01/06 1,050 1,138 St. Clair County, Callable 10/01/09 @ 102 (FGIC) (GO) 6.000%, 10/01/11 1,000 1,175 St. Clair County, Public Building, Series C (FGIC) (RB) (MLO) 6.000%, 12/01/09 2,175 2,552 Will County School District #86, Zero Coupon Bond (FSA) (GO) 5.600%, 11/01/17 (d) 3,870 2,087 Will County School District #365, Zero Coupon Bond (FSA) (GO) 4.530%, 11/01/05 (d) 1,685 1,648 Winnebago & Boone Counties School District #205, Series C, Partially Escrowed to Maturity (FGIC) (GO) 6.000%, 02/01/08 (a) 5,065 5,765 Winnebago County School District #122, Harlem-Love Park, Zero Coupon Bond (FSA) (GO) 5.200%, 01/01/17 (d) 3,000 1,680 --------------- 125,835 --------------- INDIANA - 2.1% Crown Point Multi-School Building, First Mortgage (MBIA) (MLO) (RB) 7.625%, 01/15/08 1,000 1,191 Evansville Vanderburgh, Public Leasing, Callable 01/15/12 @ 100 (MBIA) (MLO) (RB) 5.750%, 07/15/18 1,000 1,120 Franklin Township Independent School Building Corporation (RB) 5.750%, 07/15/09 1,235 1,432 Gary Sanitation District, Special Tax District (GO) (RAAI) 3.750%, 02/01/11 1,260 1,286 Indiana State Educational Facilities Authority, St. Joseph's College Project (RB) 6.100%, 10/01/09 1,200 1,330 Indiana State Educational Facilities Authority, St. Joseph's College Project, Callable 10/01/09 @ 102 (RB) 6.600%, 10/01/14 $ 1,410 $ 1,527 Indiana State Housing Authority, Series B-1, Callable 07/01/05 @ 102 (RB) 6.150%, 07/01/17 435 442 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 2,141 Indiana University, Series K, Zero Coupon Bond (MBIA) (RB) 5.360%, 08/01/11 (d) 750 580 Indianapolis Industry Local Public Improvement Board, Series D (RB) 6.600%, 02/01/07 1,960 2,208 St. Joseph County Hospital, Callable 02/15/08 @ 101 (MBIA) (RB) 4.750%, 08/15/12 1,000 1,054 Zionsville Community Schools Building, First Mortgage Bonds, Callable 01/15/12 @ 100 (FGIC) (MLO) (RB) (STAID) 5.750%, 07/15/15 775 879 --------------- 15,400 --------------- IOWA - 0.8% Iowa Higher Education Authority, Callable 10/01/12 @ 100 (ACA) (RB) 5.500%, 10/01/28 2,000 2,115 Iowa Higher Education Authority, Central College (RB) 5.450%, 10/01/26 1,000 1,049 Muscatine Electric, Escrowed to Maturity, Callable 07/01/04 @ 100 (RB) 9.700%, 01/01/13 (a) 2,140 2,834 --------------- 5,998 --------------- KANSAS - 1.4% Butler County Public Building Authority (MBIA) (MLO) (RB) 6.375%, 10/01/10 1,000 1,208 Hays Water & Sewer, Escrowed to Maturity, Callable 09/01/04 @ 100 (RB) 6.500%, 03/01/07 (a) 1,000 1,133 Johnson County Residual Housing, Escrowed to Maturity, Zero Coupon Bond, Callable 05/01/12 @ 100 (RB) 3.800%, 05/01/12 (a) (d) 7,500 5,529 Sedgwick & Shawnee Counties, Single Family Mortgages, Series A-2 (GNMA) (RB) 6.700%, 06/01/29 1,110 1,143 Sedgwick County School District #267 (AMBAC) (GO) 5.250%, 11/01/12 1,045 1,198 --------------- 10,211 --------------- 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 2,377
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DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------ Kentucky State Turnpike Authority, Escrowed to Maturity (RB) 7.200%, 07/01/09 (a) $ 1,240 $ 1,412 Kentucky State Turnpike Authority, Escrowed to Maturity, Callable 04/01/04 @ 100 (RB) 6.000%, 07/01/11 (a) 815 920 Louisville Water, Escrowed to Maturity (RB) 6.000%, 11/15/07 (a) 1,250 1,419 Louisville Water, Escrowed to Maturity, Callable 04/01/04 @ 101 (RB) 6.375%, 11/01/07 (a) 1,000 1,024 --------------- 7,152 --------------- LOUISIANA - 0.3% Louisiana Local Government Environmental Facilities, Community Development Authority, Callable 01/01/12 @ 101 (AMT) (RB) 6.650%, 01/01/25 840 874 Orleans Parish, Parishwide School District, Series A (FGIC) (GO) 7.375%, 09/01/07 1,145 1,349 --------------- 2,223 --------------- MAINE - 0.3% Maine Municipal Bond Bank, Series B (FSA) (GO) 5.750%, 11/01/10 2,000 2,352 --------------- 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 1,999 Massachusetts Bay Transportation Authority, General Transportation System Project, Series C (FGIC) (RB) 5.750%, 03/01/10 2,100 2,442 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 1,164 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 3,269 Massachusetts State Port Authority (RB) 5.750%, 07/01/12 1,000 1,164 Massachusetts State Port Authority, Escrowed to Maturity, Callable 04/01/04 @ 100 (RB) 13.000%, 07/01/13 (a) 4,515 6,773 Massachusetts State, Multi-Family Housing, Escrowed to Maturity, Callable 04/01/04 @ 100 (FHA) (RB) 6.350%, 04/01/08 (a) 1,000 1,000 Massachusetts State, Series A, Callable 01/01/11 @ 100 (GO) 5.125%, 01/01/16 3,000 3,371 Massachusetts State, Series B, Pre-refunded 05/01/10 @ 100 (GO) 5.000%, 05/01/12 (b) 5,000 5,598 --------------- 29,038 --------------- MICHIGAN - 5.2% Chippewa Valley Schools, Callable 05/01/12 @ 100 (GO) (MQSBLF) 5.500%, 05/01/14 $ 1,775 $ 2,024 Constantine Public Schools, Callable 11/01/12 @ 100 (GO) (MQSBLF) 5.000%, 05/01/15 1,050 1,150 5.000%, 05/01/16 1,075 1,168 Detroit (AMT) (FSA) (GO) 5.750%, 04/01/09 1,255 1,425 Detroit Water Supply, Escrowed to Maturity, Callable 04/01/04 @ 101 (FGIC) (RB) 6.250%, 07/01/12 (a) 285 289 Gibraltar School District, Callable 11/01/12 @ 100 (GO) (MQSBLF) 5.500%, 05/01/15 1,175 1,329 Lakeshore Public Schools, Callable 05/01/11 @ 100 (GO) 5.000%, 05/01/12 1,260 1,398 Lakeview Public Schools, Callable 05/01/11 @ 100 (GO) 5.000%, 05/01/14 1,985 2,176 Michigan State Hospital Finance Authority, Ascension Health Credit, Series B, Mandatory Put 11/15/05 @ 100 (RB) 5.200%, 11/15/33 3,000 3,183 Michigan State Hospital Finance Authority, Henry Ford Health Systems, Series A, Callable 03/01/13 @ 100 (RB) 5.500%, 03/01/15 3,500 3,800 Michigan State Hospital Finance Authority, Henry Ford Hospital, Escrowed to Maturity, Callable 04/01/04 @ 100 (RB) 9.000%, 05/01/08 (a) 4,500 5,300 Michigan State Housing Development Authority, Green Hill Project, Callable 07/15/04 @ 102 (FNMA) (RB) 5.125%, 07/15/08 1,800 1,847 Michigan State Strategic Fund, Dow-Chemical Project, Mandatory Put 06/01/06 @ 100 (RB) 3.800%, 06/01/14 (c) 2,200 2,274 Oakland University, Callable 05/15/05 @ 102 (MBIA) (RB) 5.600%, 05/15/10 1,000 1,065 Rochester Community School District, Series 1, Pre-refunded 05/01/10 @ 100 (FGIC) (GO) 5.375%, 05/01/11 (b) 2,000 2,292 Romulus Economic Development Corporation, Partnership Project, Escrowed to Maturity, Callable 04/01/04 @ 101.50 (RB) 7.000%, 11/01/15 (a) 1,300 1,660 Wayne Charter County Airport, Series A, Callable 12/01/08 @ 101 (AMT) (MBIA) (RB) 5.250%, 12/01/09 5,000 5,516 --------------- 37,896 --------------- MINNESOTA - 3.7% Lakeville Independent School District #194, School Building, Series C (FSA) (GO) (MSDCEP) 4.500%, 02/01/12 1,000 1,092 Minneapolis & St. Paul Metropolitan Airports Commission, Series B (AMT) (FGIC) (RB) 5.750%, 01/01/10 1,000 1,130
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DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------ Minneapolis & St. Paul Metropolitan Airports Commission, Series B, Callable 01/01/08 @ 101 (AMBAC) (AMT) (RB) 5.375%, 01/01/10 $ 3,000 $ 3,250 Minneapolis Hospital & Rehabilitation, Escrowed to Maturity (RB) 10.000%, 06/01/13 (a) 1,035 1,388 Minnesota Agriculture & Economic Development Board, Health Care Systems, Series A, Callable 11/15/10 @ 101 (RB) 5.875%, 11/15/11 2,135 2,447 Monticello, Big Lake Community Hospital District, Health Care Facilities, Series C (RB) 5.250%, 12/01/11 1,940 2,049 Moorhead Independent School District #152, Callable 04/01/12 @ 100 (FGIC) (GO) (MSDCEP) 5.000%, 04/01/13 1,270 1,419 Robbinsdale Independent School District #281 (GO) (MSDCEP) 5.000%, 02/01/09 1,250 1,395 Robbinsdale Independent School District #281, Callable 02/01/09 @ 100 (GO) (MSDCEP) 5.250%, 02/01/12 1,435 1,607 South Washington County Independent School District #833, Series A, Callable 02/01/10 @ 100 (GO) (MSDCEP) 5.300%, 02/01/11 1,000 1,126 St. Paul Housing & Redevelopment Authority, Callable 08/01/06 @ 102.50 (AMBAC) (RB) 6.400%, 02/01/07 1,195 1,343 6.400%, 08/01/07 1,205 1,359 6.500%, 02/01/09 1,315 1,484 St. Paul Port Authority Hotel, Pre-refunded 08/01/08 @ 100 (RB) 8.050%, 08/01/21 (b) 2,335 2,867 St. Paul Port Authority, Office Building at Cedar St.-03-12 (MLO) 4.000%, 12/01/11 2,045 2,181 St. Paul Port Authority, Office Building at Robnert St.-3-11 (MLO) 3.250%, 12/01/09 500 519 --------------- 26,656 --------------- NEBRASKA - 1.7% Douglas County Hospital Authority #002, Medical Center (GTY) (RB) 5.000%, 11/15/11 2,860 3,140 Douglas County Hospital Authority #1, Immanuel Medical Center, Callable 09/01/07 @ 102 (AMBAC) (RB) 4.800%, 09/01/08 1,400 1,540 Nebraska Educational Finance Authority, Creighton University Project, Callable 01/01/06 @ 101 (AMBAC) (RB) 5.600%, 01/01/07 2,500 2,684 Nebraska Educational Telecommunication Commission, Leasing Project, Series 2000 (MLO) (RB) 6.000%, 02/01/06 1,275 1,375 Nebraska Investment Financial Authority, Great Plains Regional Medical Center (RAAI) (RB) 4.700%, 11/15/11 500 540 Nebraska Investment Financial Authority, Great Plains Regional Medical Center, Callable 05/15/12 @ 100 (RAAI) (RB) 4.800%, 11/15/12 $ 500 $ 538 4.900%, 11/15/13 600 644 Omaha Northwest Library Facilities, Callable 08/15/07 @ 102 (MLO) (RB) 5.250%, 08/15/12 975 1,088 University of Nebraska, Lincoln Student Fees & Facilities, Series B, Callable 11/15/13 @ 100 (RB) 4.000%, 07/01/15 500 506 --------------- 12,055 --------------- NEVADA - 1.5% Carson City, Carson-Tahoe Hospital Project (RB) 5.750%, 09/01/11 1,000 1,109 5.750%, 09/01/12 1,055 1,166 Clark County School District, Building & Renovation, Series B, Callable 06/15/07 @ 101 (FGIC) (GO) 5.750%, 06/15/08 1,000 1,132 Nevada State, Callable 06/01/08 @ 100 (GO) 5.250%, 06/01/11 3,000 3,319 Washoe County, Escrowed to Maturity, Callable 08/01/04 @ 100 (GO) 9.875%, 08/01/09 (a) 3,455 4,335 --------------- 11,061 --------------- NEW HAMPSHIRE - 0.1% New Hampshire Health & Educational Facilities Authority, Southern New Hampshire Medical Center, Series A (RAAI) (RB) 5.000%, 10/01/13 790 864 --------------- NEW JERSEY - 1.5% New Jersey Health Care Facilities, Capital Health Systems, Series A (RB) 5.500%, 07/01/12 1,500 1,650 New Jersey State Transportation Trust Fund Authority, Series A (RB) 5.500%, 06/15/08 2,000 2,255 New Jersey State Turnpike Authority, Escrowed to Maturity (RB) 6.750%, 01/01/09 (a) 820 890 New Jersey State Turnpike Authority, Series A (MBIA) (RB) 5.500%, 01/01/09 5,000 5,685 --------------- 10,480 --------------- NEW MEXICO - 1.2% Farmington, Pre-refunded 07/01/05 @ 100 (RB) 9.875%, 01/01/13 (b) 7,575 8,308 --------------- NEW YORK - 3.4% Hempstead Town Industrial Development Agency, Callable 12/01/06 @ 102 (MBIA) (RB) 5.000%, 12/01/08 2,000 2,171 Long Island Power Authority, Series B (RB) 5.250%, 12/01/13 4,000 4,463 New York City Transitional Finance Authority, Series A, Callable 11/01/11 @ 100 (RB) 5.500%, 11/01/26 1,000 1,141
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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 $ 1,367 New York State Dormitory Authority, State Personal Income Tax, Series A (FSA) (RB) 5.500%, 03/15/12 2,000 2,316 New York State Environmental Facilities, Pollution Control, Series D, Pre-refunded 11/15/04 @ 102 (RB) 6.400%, 05/15/06 (b) 530 558 New York State Environmental Facilities, Pollution Control, Series D-02, Callable 11/15/04 @ 102 (RB) 6.400%, 05/15/06 225 236 New York State Environmental Facilities, Pollution Control, Series D-02, Pre-refunded 11/15/04 @ 102 (RB) 6.400%, 05/15/06 (b) 495 521 New York, Series A, Callable 08/01/12 @ 100 (GO) 5.750%, 08/01/15 3,220 3,611 New York, Series C, Callable 03/15/12 @ 100 (GO) 5.500%, 03/15/14 3,000 3,323 New York, Series D (GO) 5.500%, 06/01/12 2,000 2,257 New York, Series G (GO) (XLCA) 5.500%, 08/01/12 2,000 2,298 --------------- 24,262 --------------- NORTH CAROLINA - 0.8% North Carolina Eastern Power Agency, Series D (RB) 5.375%, 01/01/13 2,955 3,227 North Carolina Power Agency #1, Series A, Callable 01/01/13 @ 100 (FSA) (RB) 5.250%, 01/01/16 2,000 2,211 --------------- 5,438 --------------- 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%, 11/15/05 500 524 --------------- 1,320 --------------- 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 1,114 Ohio State Building Authority, Administration Building Fund Project, Series A, Callable 10/01/08 @ 101 (MLO) (RB) 5.250%, 10/01/09 3,000 3,364 Ohio State Building Authority, Adult Correctional Facilities Project, Series A (MBIA) (MLO) (RB) 5.500%, 10/01/04 1,000 1,022 Ohio State Water Development Authority, Escrowed to Maturity, Callable 06/01/04 @ 100 (RB) 9.375%, 12/01/10 (a) 2,320 2,811 Richland County Hospital Facilities, Series A (RB) 5.450%, 11/15/04 $ 690 $ 707 5.500%, 11/15/05 725 765 5.550%, 11/15/06 765 828 5.650%, 11/15/08 595 664 --------------- 11,275 --------------- OKLAHOMA - 2.6% Cherokee County Economic, Zero Coupon Bond, Escrowed to Maturity (AMBAC) (RB) 5.610%, 11/01/11 (a) (d) 3,340 2,564 Oklahoma City Industrial & Cultural Facilities, Oklahoma City Project, Callable 10/01/14 @ 101 (AMT) (RB) 5.750%, 01/01/23 1,430 1,371 Oklahoma County Housing Finance Authority, Series B, Zero Coupon Bond, Pre-refunded 03/01/06 @ 56.92 (RB) 5.740%, 07/01/12 (b) (d) 3,690 2,035 Oklahoma Housing Finance Agency, Series A-2, Callable 05/01/05 @ 100 (FNMA) (RB) 5.500%, 11/01/25 3,000 3,115 South Oklahoma City, Callable 04/01/04 @ 100, Pre-refunded 02/01/10 @ 100 (RB) 9.750%, 02/01/13 (b) 3,845 4,968 Tulsa County Home Finance Authority, Escrowed to Maturity (RB) 6.900%, 08/01/10 (a) 1,710 2,101 Tulsa Educational Facilities Authority, Holland Hall School Project, Series B, Callable 12/01/08 @ 101 (RB) 4.600%, 12/01/09 1,195 1,288 Tulsa Metropolitan Utility Authority, Callable 09/01/05 @ 102 (RB) 5.600%, 09/01/06 1,000 1,076 --------------- 18,518 --------------- OREGON - 2.7% Clackamas County School District #7J, Lake Oswego, Callable 06/01/11 @ 100 (GO) 5.375%, 06/01/14 3,105 3,517 Lane County School District #19, Springfield, Pre-refunded 10/15/04 @ 101 (GO) (MBIA) 5.900%, 10/15/06 (b) 1,000 1,036 Lane County School District #52, Bethel (GO) (SBG) 5.500%, 06/15/09 1,000 1,146 Oregon State Department, Administrative Services, Series A (COP) (FSA) (MLO) 5.500%, 11/01/13 1,275 1,489 Oregon State Department, Administrative Services, Series E, Callable 11/01/12 @ 100 (COP) (FSA) (MLO) 5.000%, 11/01/14 2,170 2,397 Polk, Marion & Benton Counties, School District #13-J (FGIC) (GO) 5.500%, 12/01/04 1,015 1,045 Salem-Keizer School District #24-J, Pre-refunded 06/01/09 @ 100 (GO) (SBG) 5.250%, 06/01/12 (b) 5,000 5,669 Washington County Unified Sewer Agency, Series 1 (FGIC) (RB) 5.750%, 10/01/08 2,000 2,297
20
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------ Washington County, Criminal Justice Facilities, Pre-refunded 12/01/04 @ 100 (GO) 5.625%, 12/01/05 (b) $ 900 $ 928 --------------- 19,524 --------------- PENNSYLVANIA - 0.7% Central Greene School District, Capital Appreciation, Escrowed to Maturity, Zero Coupon Bond, Callable 04/01/04 @ 63.986 (GO) (MBIA) (STAID) 4.690%, 12/01/07 (a) (d) 2,000 1,848 Montgomery County, Industrial Development Authority, PECO Energy Project, Series A, Mandatory Put 10/01/04 @ 100 (RB) 5.200%, 10/01/30 2,000 2,031 Philadelphia Hospitals Authority, Pre-refunded 07/01/05 @ 100 (RB) 9.875%, 07/01/10 (b) 1,150 1,273 --------------- 5,152 --------------- PUERTO RICO - 0.2% Puerto Rico Electric Power Authority, Series AA (MBIA) (RB) 6.000%, 07/01/06 1,000 1,101 --------------- SOUTH CAROLINA - 1.2% Charleston, Public Facilities Corporation (COP) (MLO) 5.000%, 09/01/12 1,255 1,397 Lexington County Health Services District Inc., Lexington Medical Center, Callable 11/01/13 @ 100 (RB) 5.500%, 11/01/23 2,000 2,118 South Carolina Jobs Economic Development Authority, Palmetto Health Alliance, Series A (RB) 6.000%, 08/01/13 1,000 1,101 South Carolina Jobs Economic Development Authority, Palmetto Health Alliance, Series C (RB) 6.000%, 08/01/13 2,000 2,201 South Carolina State Public Service Authority, Series A (MBIA) (RB) 5.500%, 01/01/10 1,665 1,910 --------------- 8,727 --------------- SOUTH DAKOTA - 1.1% Deadwood (ACA) (COP) (MLO) 5.500%, 11/01/07 800 882 5.600%, 11/01/08 845 942 South Dakota State Health & Educational Facilities Authority, Sioux Valley Hospital (RB) 5.250%, 11/01/08 900 990 South Dakota State Health & Educational Facilities Authority, Westhills Village Retirement (RB) 5.500%, 09/01/04 640 644 5.650%, 09/01/05 665 676 5.800%, 09/01/06 735 754 5.900%, 09/01/07 755 777 4.750%, 09/01/11 530 553 5.000%, 09/01/12 1,000 1,051 South Dakota State Health & Educational Facilities Authority, Westhills Village Retirement Community, Callable 09/01/12 @ 101 (RB) 5.000%, 09/01/13 1,000 1,053 --------------- 8,322 --------------- TENNESSEE - 1.5% Metropolitan Government Nashville & Davidson County, Escrowed to Maturity, Callable 04/01/04 @ 102 (RB) 6.400%, 04/01/11 (a) $ 1,030 $ 1,250 Shelby County Health, Educational & Housing Facilities Board, Methodist Healthcare, Callable 09/01/12 @ 100 (RB) 6.000%, 09/01/16 1,500 1,657 Shelby County Health, Educational & Housing Facilities Board, St. Jude's Children's Research (RB) 5.000%, 07/01/09 500 545 Sullivan County Health, Educational & Housing Facilities, Wellmont Health Systems Project (RB) 6.250%, 09/01/11 1,465 1,671 6.250%, 09/01/12 1,085 1,234 Sullivan County Health, Educational & Housing Facilities, Wellmont Health Systems Project, Callable 09/01/12 @ 101 (RB) 6.500%, 09/01/13 2,215 2,544 Sullivan County Health, Educational & Housing Facilities, Wellmont Health Systems Project, Callable 09/01/13 @ 100 (RAAI) (RB) 5.000%, 09/01/16 2,000 2,119 --------------- 11,020 --------------- TEXAS - 10.5% Abilene Health Facilities Development, Sears Methodist Retirement, Series A (RB) 5.100%, 11/15/05 1,115 1,127 5.250%, 11/15/06 1,175 1,204 5.300%, 11/15/07 1,000 1,031 5.350%, 11/15/08 1,300 1,348 Amarillo Health Facilities, Sears Panhandle Retirement, Series B, Pre-refunded 08/15/06 @ 102 (RB) 7.750%, 08/15/18 (b) 3,000 3,484 Amarillo Independent School District (GO) (PSFG) 7.000%, 02/01/06 1,035 1,136 7.000%, 02/01/07 1,095 1,246 Austin, Callable 09/01/11 @ 100 (GO) 5.000%, 09/01/13 4,510 4,993 Bexar County, Zero Coupon Bond (GO) (MBIA) 3.780%, 06/15/06 (d) 1,000 963 Brazos River Authority, Electric Company Project, Series 1999-B, Mandatory Put 04/01/13 @ 100 (AMT) (RB) 6.750%, 09/01/34 2,000 2,309 Brazos River Authority, Electric Company Project, Series A, Mandatory Put 05/01/05 @ 100 (AMT) (RB) 3.000%, 05/01/29 (c) 1,000 1,005 Brazos River Authority, Electric Company Project, Series C, Mandatory Put 11/01/11 @ 100 (AMT) (RB) 5.750%, 05/01/36 (c) 2,000 2,165 Brazos River Harbor District, Dow Chemical, Series A-5, Mandatory Put 05/15/12 @ 100 (AMT) (RB) 5.700%, 05/15/33 1,000 1,138 Cypress-Fairbanks Independent School District, Callable 02/15/10 @ 100 (GO) (PSFG) 5.500%, 02/15/18 4,000 4,453
21
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------ Frisco, Callable 02/05/11 @ 100 (FGIC) (GO) 5.000%, 02/15/18 $ 1,125 $ 1,202 5.000%, 02/15/19 1,675 1,776 Galveston County, Escrowed to Maturity, Callable 04/01/04 @ 100 (GO) (MBIA) 6.400%, 02/01/05 (a) 315 329 Grapevine Industrial Development, Air Cargo, Callable 01/01/12 @ 101 (AMT) (RB) 6.500%, 01/01/24 500 515 Grapevine-Colleyville Independent School District (GO) (PSFG) 8.250%, 06/15/07 1,440 1,717 Gregg County Health Facilities Development, Good Shepherd Medical Center, Series A (RB) 5.750%, 10/01/09 2,895 3,179 Houston Airport Systems (FSA) (RB) 5.250%, 07/01/11 2,735 3,108 Houston Airport Systems, Callable 07/01/12 @ 100 (FSA) (RB) 5.000%, 07/01/27 2,000 2,065 Houston Airport Systems, Escrowed to Maturity (RB) 8.200%, 07/01/05 (a) 430 451 Houston Health Facilities Development, Buckingham Senior Living Community, Series A, Callable 02/15/14 @ 101 (RB) 7.000%, 02/15/23 2,000 2,038 Houston Water & Sewer System, Series B (AMBAC) (RB) 5.500%, 12/01/10 2,000 2,313 Irving Independent School District, Series A, Zero Coupon Bond (GO) (PSFG) 5.000%, 02/15/09 (d) 5,000 4,350 Jefferson County Health Facilities Development, Baptist Hospitals (AMBAC) (FHA) (RB) 4.400%, 08/15/09 1,000 1,081 Kaufman County, Callable 02/15/12 @ 100 (FSA) (GO) 5.000%, 02/15/17 1,000 1,071 Keller Independent School District, Callable 08/15/11 @ 100 (GO) (PSFG) 5.375%, 08/15/14 2,000 2,268 North Harris Montgomery Community College District, Callable 02/15/12 @ 100 (FGIC) (GO) 5.375%, 02/15/15 2,535 2,840 Nueces County Housing Finance, Dolphins Landing Apartments Project, Series A, Callable 07/01/10 @ 102 (RB) 6.750%, 07/01/20 1,910 1,912 Odessa Housing Finance, Escrowed to Maturity, Zero Coupon Bond, Callable 06/01/04 @ 53.39 (MBIA) (RB) 3.780%, 06/01/12 (a) (d) 1,465 1,079 Plano Independent School District, Pre-refunded 02/15/08 @ 100 (GO) (PSFG) 4.700%, 02/15/13 (b) 1,000 1,093 Port Houston Authority, Harris County, Series B, Callable 10/01/11 @ 100 (AMT) (FGIC) (GO) 5.500%, 10/01/12 2,405 2,687 Sam Rayburn Municipal Power Agency, Callable 04/01/04 @ 100, Partially Pre-refunded 09/01/09 @ 100 (MBIA) (RB) 6.000%, 09/01/10 (b) 1,420 1,649 San Antonio Electric & Gas, Series A, Callable 02/01/09 @ 101 (RB) 5.250%, 02/01/13 $ 2,135 $ 2,389 San Antonio Independent School District (GO) (PSFG) 7.000%, 08/15/07 1,000 1,162 Texas State, Callable 10/01/08 @ 100 (GO) 5.000%, 10/01/15 1,000 1,080 Texas State Public Finance Authority, Parks & Wildlife Projects, Callable 02/01/08 @ 100 (AMBAC) (MLO) (RB) 6.000%, 08/01/08 1,000 1,134 Texas State Turnpike Authority, Dallas North Highway Tolls (FGIC) (RB) 6.500%, 01/01/08 2,345 2,699 Tyler Health Facilities, Mother Frances Hospital (RB) 5.250%, 07/01/12 1,000 1,068 --------------- 75,857 --------------- UTAH - 0.6% Ashley Valley Water & Sewer, Escrowed to Maturity, Callable 07/01/04 @ 102 (AMBAC) (GO) 10.900%, 01/01/10 (a) 1,500 1,929 South Jordan, Sales Tax, Callable 08/15/11 @ 100 (AMBAC) (RB) 5.500%, 08/15/18 1,000 1,122 Utah State Housing Finance Agency, Single Family Mortgages (FHA) (RB) (VA) 5.650%, 07/01/06 20 21 Utah State Housing Finance Agency, Single Family Mortgages, Issue F-1, Callable 07/01/05 @ 102 (FHA) (RB) (VA) 6.300%, 01/01/18 140 141 Utah State Housing Finance Agency, Single Family Mortgages, Series III, Class R, Callable 07/01/06 @ 102 (FHA) (RB) (VA) 5.950%, 07/01/08 900 969 --------------- 4,182 --------------- VIRGINIA - 1.0% Peninsula Port Authority, Partially Pre-refunded 08/01/04 @ 102 and 08/01/08 @ 100 (RB) 7.000%, 08/01/17 (b) 2,000 2,077 Richmond Industrial Development Authority, Government Facilities (AMBAC) (MLO) 5.000%, 07/15/18 1,845 2,040 Riverside Regional Jail Authority, Callable 07/01/05 @ 102 (MBIA) (RB) 5.700%, 07/01/08 905 970 Riverside Regional Jail Authority, Pre-refunded 07/01/05 @ 102 (MBIA) (RB) 5.700%, 07/01/08 (b) 1,095 1,178 Virginia State Peninsula Regional Jail Authority, Pre-refunded 10/01/05 @ 101 (MBIA) (RB) 5.300%, 10/01/09 1,000 1,070 --------------- 7,335 --------------- WASHINGTON - 4.5% Clark County School District #37, Vancouver (FSA) (GO) 5.250%, 12/01/14 1,515 1,739
22
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------ Energy Northwest, Washington Wind Project, Series A, Callable 01/01/07 @ 103 (RB) 5.100%, 07/01/09 $ 1,850 $ 1,971 5.200%, 07/01/10 1,950 2,069 Island County School District #206, South Widbey, Partially Pre-refunded 12/01/04 @ 100 (AMBAC) (GO) 5.750%, 12/01/06 (b) 700 720 King County School District #415, Kent, Pre-refunded 06/01/04 @ 100 (AMBAC) (GO) 6.450%, 06/01/06 (b) 920 928 King County, Series B, Pre-refunded 12/01/07 @ 102 (GO) 5.850%, 12/01/13 (b) 2,035 2,355 King County, Series B, Pre-refunded 12/01/07 @ 102 (GO) 5.850%, 12/01/13 (b) 965 1,117 Pierce County School District #320, Sumner (GO) 6.000%, 12/01/06 665 701 Port Seattle Passenger Facility Charge, Series B (AMBAC) (AMT) (RB) 5.000%, 12/01/07 1,000 1,094 Snohomish & Island Counties School District #401, Stanwood (FSA) (GO) (SBG) 5.000%, 12/15/13 2,500 2,811 Snohomish County, Callable 12/01/11 @ 100 (GO) (MBIA) 5.375%, 12/01/19 5,000 5,494 Snohomish County Housing Authority, Callable 04/01/06 @ 100 (RB) 6.300%, 04/01/16 1,035 1,068 Spokane County School District #356, Central Valley, Series B, Zero Coupon Bond (FGIC) (GO) 5.030%, 12/01/14 (d) 5,690 3,661 Washington State Housing Finance, Hearthstone Project, Callable 01/01/05 @ 102 (RB) 6.000%, 01/01/10 810 850 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 1,101 Washington State, Series C (GO) 5.500%, 07/01/14 2,275 2,638 Washington State, Series S-5, Zero Coupon Bond (FGIC) (GO) 5.830%, 01/01/16 (d) 3,000 1,787 --------------- 32,104 --------------- WEST VIRGINIA - 0.3% Brooke Pleasants & Tyler Wetzel Counties, Single Family Mortgage, Escrowed to Maturity (RB) 7.400%, 08/15/10 (a) 1,675 2,112 --------------- WISCONSIN - 1.9% Door County, Series A, Callable 09/01/11 @ 100 (FGIC) (GO) 5.125%, 09/01/16 1,720 1,890 Fond du Lac, Callable 03/01/12 @ 100 (FGIC) (GO) 3.400%, 03/01/13 1,000 995 Milwaukee (GO) 6.000%, 02/01/10 1,240 1,452 Wisconsin State Clean Water, Series 1, Pre-refunded 06/01/05 @ 100 (RB) 5.800%, 06/01/15 (b) $ 2,915 $ 3,072 Wisconsin State Health & Educational Facilities Authority, Aurora Health Care, Series A, Callable 02/15/09 @ 101 (RB) 5.500%, 02/15/20 1,500 1,525 Wisconsin State Health & Educational Facilities Authority, Marshfield Clinic, Series B (RB) 6.250%, 02/15/09 500 556 Wisconsin State Health & Educational Facilities Authority, Marshfield Clinic, Series B, Callable 02/15/12 @ 100 (RB) 5.500%, 02/15/13 850 908 Wisconsin State Health & Educational Facilities Authority, Monroe Clinic (RB) 4.450%, 02/15/06 925 963 Wisconsin State Health & Educational Facilities Authority, Southwest Health Center, Series A, Callable 04/01/14 @ 100 (RB) 6.125%, 04/01/24 (f) 1,500 1,478 Wisconsin State Health & Educational Facilities Authority, Wheaton Franciscan Services (RB) 5.750%, 08/15/11 645 739 --------------- 13,578 --------------- WYOMING - 0.3% Lincoln County, Pacificorp Project, Mandatory Put 06/03/12 @ 100 (AMT) (RB) 4.125%, 11/01/25 (c) 2,250 2,224 --------------- CONVERTIBLE BONDS - 1.1% Chicago, Series A, Convertible, Zero Coupon Bond (GO) (MBIA) 3.489%, 01/01/16 (d) 2,000 1,585 Cook County High School District #209, Proviso Township, Convertible, Zero Coupon Bond (FSA) (GO) 4.210%, 12/01/16 (d) 1,000 896 Illinois Sports Facilities Authority, Convertible, Zero Coupon Bond (AMBAC) (RB) 4.750%, 06/15/13 (d) 1,405 1,169 Illinois Sports Facilities Authority, Convertible, Zero Coupon Bond, Callable 06/15/15 @ 101 (AMBAC) (RB) 5.100%, 06/15/16 (d) 1,620 1,340 Metropolitan Pier & Exposition Authority, State Sales Tax, Convertible, Zero Coupon Bond (FGIC) (MBIA) (RB) 5.200%, 06/15/17 (d) 1,000 729 Northwest Parkway Public Highway Authority, Convertible, Zero Coupon Bond (AMBAC) (RB) 5.250%, 06/15/15 (d) 2,750 2,170 --------------- 7,889 --------------- TOTAL MUNICIPAL BONDS (Cost $654,647) 713,178 ---------------
23
DESCRIPTION SHARES VALUE (000) - ------------------------------------------------------------------------------------------------ AFFILIATED MONEY MARKET FUND - 0.4% First American Tax Free Obligations Fund, Cl Z (g) 2,589,217 $ 2,589 --------------- TOTAL AFFILIATED MONEY MARKET FUND (Cost $2,589) 2,589 --------------- TOTAL INVESTMENTS - 99.1% (Cost $657,236) 715,767 --------------- OTHER ASSETS AND LIABILITIES, NET - 0.9% 6,564 --------------- TOTAL NET ASSETS - 100.0% $ 722,331 ---------------
(a) Escrowed to Maturity issues are usually 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 usually backed by U.S. Government obligations. These bonds mature at the call date and price indicated. (c) Variable Rate Security - The rate shown is the rate in effect as of March 31, 2004. (d) The rate shown is the effective yield at the time of purchase. (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 March 31, 2004, the value of these investments was $11,655,645 or 1.6% of total net assets. (f) Security purchased on a when-issued basis. On March 31, 2004, the total cost of investments purchased on a when-issued basis was $1,495,710. See note 2 in Notes to Financial Statements. (g) Investment in affiliated security. 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 March 31, 2004, the aggregate market value of securities subject to the AMT was $39,386,575, which represents 5.5% of net assets. Cl - Class CMI - California Mortgage Insurance Program 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 GTY - Guaranty 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 March 31, 2004. 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. 24 MINNESOTA INTERMEDIATE TAX FREE FUND
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------ MUNICIPAL BONDS - 97.9% REVENUE BONDS - 50.5% BUILDING - 0.2% Minnesota State Retirement Systems Building, Callable 06/01/10 @ 100 5.450%, 06/01/12 $ 550 $ 624 --------------- ECONOMIC DEVELOPMENT - 1.6% Minnesota State Agricultural & Economic Development Board, Small Business Development, Series B (AMT) 6.500%, 08/01/08 1,335 1,472 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 1,545 Minnesota State Agricultural & Economic Development Board, Small Business Development, Series C (AMT) 6.625%, 08/01/08 1,210 1,341 --------------- 4,358 --------------- EDUCATION - 4.1% Minneapolis, The Blake School Project, Callable 09/01/11 @ 100 5.000%, 09/01/12 445 485 Minnesota State Higher Education Facilities Authority, Augsburg College, Series 4 4.500%, 10/01/06 505 534 4.850%, 10/01/09 520 564 Minnesota State Higher Education Facilities Authority, Augsburg College, Series 4, Callable 10/01/09 @ 100 5.000%, 10/01/11 500 532 5.000%, 10/01/12 500 526 Minnesota State Higher Education Facilities Authority, Carleton College, Series 3-L1, Callable 05/01/06 @ 100 5.750%, 11/01/12 1,375 1,481 Minnesota State Higher Education Facilities Authority, Minneapolis College of Art and Design 5.000%, 05/01/11 250 268 Minnesota State Higher Education Facilities Authority, St. Benedict College, Callable 03/01/07 @ 100 4.875%, 03/01/08 1,000 1,054 5.100%, 03/01/11 2,885 2,987 Minnesota State Higher Education Facilities Authority, St. Catherine College, Series 5-N1, Callable 10/01/12 @ 100 5.250%, 10/01/22 1,500 1,552 Minnesota State Higher Education Facilities Authority, St. John's University, Series 5 (MBIA) 5.000%, 10/01/11 255 289 Minnesota State Higher Education Facilities Authority, St. John's University, Series 5, Callable 10/01/11 @ 100 (MBIA) 5.000%, 10/01/12 480 524 Minnesota State Higher Education Facilities Authority, University of St. Thomas, Series 4, Callable 04/01/08 @ 100 5.250%, 04/01/12 385 410 --------------- 11,206 --------------- HEALTHCARE - 11.9% Cuyuna Range Hospital District, Series A, Callable 06/01/07 @ 102 5.500%, 06/01/10 $ 435 $ 440 5.650%, 06/01/12 940 951 Duluth Economic Development Authority, Benedictine Health System, Callable 02/15/14 @ 100 5.375%, 02/15/22 2,045 2,151 Duluth Economic Development Authority, The Duluth Clinic, Escrowed to Maturity, Callable 04/01/04 @ 101 (AMBAC) 6.100%, 11/01/04 (b) 250 257 Glencoe Health Care Facilities, Callable 04/01/11 @ 101 7.400%, 04/01/21 1,000 1,089 Hastings Health Care Facility, Regina Medical Center, Callable 09/15/08 @ 100 (ACA) 5.000%, 09/15/13 500 521 Minneapolis & St. Paul Housing & Redevelopment Authority, Healthspan, Series A, Callable 04/01/04 @ 102 (AMBAC) 5.000%, 11/15/13 1,000 1,023 Minneapolis Healthcare System, Allina Health System, Series A, Callable 11/15/12 @ 100 6.000%, 11/15/23 2,500 2,739 5.750%, 11/15/32 1,300 1,382 Minneapolis Healthcare System, Fairview Health Services, Series A 5.000%, 05/15/12 605 653 Minneapolis Healthcare System, Fairview Health Services, Series B (MBIA) 4.500%, 05/15/11 1,170 1,270 Minnesota Agricultural & Economic Development Board, Benedictine Health, Series A (MBIA) 5.000%, 02/15/10 3,815 4,250 Minnesota Agricultural & Economic Development Board, Evangelical Lutheran Project 5.500%, 02/01/11 280 307 5.500%, 02/01/12 200 219 Minnesota Agricultural & Economic Development Board, Evangelical Lutheran Project, Callable 02/01/12 @ 101 5.500%, 02/01/15 730 777 Minnesota Agricultural & Economic Development Board, Fairview Hospital Project, Series A, Callable 11/15/07 @ 102 (MBIA) 5.400%, 11/15/08 1,000 1,123 5.500%, 11/15/17 1,500 1,668 5.750%, 11/15/26 500 556 Monticello, Big Lake Community Hospital, Series C, Callable 12/01/12 @ 100 5.750%, 12/01/15 2,320 2,406 New Hope Housing & Health Care Facilities, Masonic Home North Ridge 5.100%, 03/01/05 550 561 5.200%, 03/01/06 645 669 5.300%, 03/01/07 685 720
25
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------ New Hope Housing & Health Care Facilities, Masonic Home North Ridge, Callable 03/01/09 @ 102 5.500%, 03/01/10 $ 500 $ 529 Plymouth Health Facilities, Westhealth Project, Series A, Callable 06/01/04 @ 102 (FSA) 6.200%, 06/01/11 1,360 1,397 Rochester, St. Mary's Hospital, Escrowed to Maturity, Callable 04/01/04 @ 100 5.750%, 10/01/07 (b) 1,095 1,176 Sauk Rapids Health Care & Housing Facilities, Good Shepherd Lutheran Home, Callable 01/01/12 @ 101 5.750%, 01/01/21 1,175 1,189 St. Cloud Health Care (FSA) 5.500%, 05/01/07 500 554 5.500%, 05/01/08 1,450 1,632 --------------- 32,209 --------------- HOUSING - 3.0% Dakota County Housing & Redevelopment Authority, Single Family Mortgages, Callable 04/01/04 @ 102 (AMT) (FNMA) 6.250%, 10/01/04 35 35 Dakota County Housing & Redevelopment Authority, Single Family Mortgages, Callable 10/01/07 @ 101.50 (AMT) (FNMA) (GNMA) 5.125%, 10/01/20 431 431 Hennepin County Housing & Redevelopment Authority, Loring Park Apartments, Callable 08/15/06 @ 102.50, Mandatory Put 02/15/09 @ 100 (AMT) (FNMA) 3.050%, 06/15/34 (c) 1,250 1,240 Minneapolis, Residual Interest-Convertible Capital Appreciation, Callable 10/01/05 @ 100 7.000%, 10/01/12 1,520 1,576 Minnesota State Housing Finance Agency, Rental Housing, Series D (MBIA) 5.150%, 08/01/04 595 601 Minnesota State Housing Finance Agency, Rental Housing, Series D, Callable 02/01/05 @ 102 (MBIA) 5.450%, 08/01/07 1,830 1,905 Minnesota State Housing Finance Agency, Single Family Mortgages, Series B, Callable 07/01/09 @ 100 (AMT) 5.550%, 07/01/24 645 653 Moorhead Economic Development Authority, Eventide Senior Housing, Series B, Callable 06/01/04 @ 102 5.750%, 06/01/16 1,360 1,370 South St. Paul Housing & Redevelopment Authority, Single Family Mortgages, Callable 04/01/04 @ 102 (FNMA) 5.100%, 09/01/07 170 174 Vadnais Heights, Single Family Mortgages 5.500%, 11/01/04 25 25 6.000%, 11/01/09 25 25 --------------- 8,035 --------------- LEASE REVENUE - 1.0% St. Paul Port Authority, Office Building, Callable 12/01/12 @ 100 (MLO) 5.000%, 12/01/19 2,415 2,594 --------------- MISCELLANEOUS - 1.5% Childrens Trust Fund, Puerto Rico, Tobacco Settlement 4.000%, 05/15/12 $ 500 $ 478 St. Paul Port Authority, Hotel Facilities, Radisson Kellogg Project, Series 2 6.700%, 08/01/07 1,800 1,771 St. Paul Port Authority, Hotel Facilities, Radisson Kellogg Project, Series 2, Callable 08/01/08 @ 103 7.375%, 08/01/10 1,685 1,672 --------------- 3,921 --------------- POLLUTION CONTROL - 2.0% Minnesota State Public Facilities Authority, Water Pollution Control, Callable 03/01/07 @ 100 5.000%, 03/01/09 2,000 2,158 Minnesota State Public Facilities Authority, Water Pollution Control, Series A, Callable 03/01/08 @ 100 4.500%, 03/01/10 2,100 2,241 Minnesota State Public Facilities Authority, Water Pollution Control, Series A, Callable 03/01/10 @ 100 4.000%, 03/01/11 1,000 1,059 --------------- 5,458 --------------- TAX REVENUE - 4.0% Bloomington Port Authority, Mall of America Project, Series A (FSA) 4.900%, 02/01/09 1,000 1,113 Minneapolis Community Development Agency, Series G-3, Callable 12/01/11 @ 100 5.350%, 12/01/21 1,000 1,055 Minneapolis, St. Anthony Falls Project, Callable 03/01/12 @ 102 5.000%, 02/01/17 1,040 1,012 St. Paul Housing & Redevelopment Authority, Callable 08/01/06 @ 102.50 (AMBAC) 6.450%, 02/01/08 840 948 St. Paul Housing & Redevelopment Authority, Downtown & Seventh Place Project, Escrowed to Maturity, Callable 04/01/04 @ 101 (AMBAC) 5.200%, 09/01/04 (b) 3,000 3,010 5.350%, 09/01/07 (b) 1,500 1,505 St. Paul Port Authority, Energy Park, Tax Increment (FSA) 5.000%, 02/01/08 2,100 2,291 --------------- 10,934 --------------- TRANSPORTATION - 7.7% Minneapolis & St. Paul Metropolitan Airports Commission, Series A, Callable 01/01/13 @ 100 (MBIA) 5.000%, 01/01/20 2,200 2,348 Minneapolis & St. Paul Metropolitan Airports Commission, Series B (AMBAC) (AMT) 5.500%, 01/01/07 2,140 2,332 Minneapolis & St. Paul Metropolitan Airports Commission, Series B (AMT) (FGIC) 5.750%, 01/01/10 2,880 3,255
26
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------ Minneapolis & St. Paul Metropolitan Airports Commission, Series B, Callable 01/01/08 @ 101 (AMBAC) (AMT) 5.500%, 01/01/09 $ 2,500 $ 2,750 Minneapolis & St. Paul Metropolitan Airports Commission, Series B, Callable 01/01/09 @ 101 (AMT) (FGIC) 5.625%, 01/01/14 1,000 1,079 Minneapolis & St. Paul Metropolitan Airports Commission, Series C, Callable 01/01/11 @ 100 (FGIC) 5.125%, 01/01/20 3,095 3,311 Minnesota Public Facilities Authority Transportation, Callable 03/01/10 @ 100 5.000%, 03/01/12 970 1,067 Puerto Rico Commonwealth, Highway Transportation Authority, Series AA 5.000%, 07/01/07 1,000 1,093 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 (c) 2,000 2,254 Puerto Rico Commonwealth, Highway Transportation Authority, Series X (MBIA) 5.500%, 07/01/13 1,250 1,470 --------------- 20,959 --------------- UTILITIES - 13.5% Anoka County Resource Recovery, Northern States Power 4.350%, 12/01/04 150 152 4.400%, 12/01/05 2,000 2,065 4.500%, 12/01/07 300 313 Chaska Electric, Series A 5.500%, 10/01/06 610 663 5.550%, 10/01/07 645 716 5.600%, 10/01/08 680 763 5.650%, 10/01/09 720 817 5.650%, 10/01/10 760 868 Chaska Electric, Series A, Callable 10/01/10 @ 100 5.400%, 10/01/11 805 894 5.500%, 10/01/12 845 930 Minnesota State Public Facilities Authority, Drinking Water, Series A 3.750%, 03/01/13 405 419 Minnesota State Public Facilities Authority, Drinking Water, Series B, Callable 03/01/09 @ 100 5.125%, 03/01/19 2,000 2,171 Northern Minnesota Municipal Power Agency, Electric System (FSA) 5.500%, 01/01/07 2,000 2,199 5.500%, 01/01/08 2,090 2,344 Princeton Public Utility System, Callable 04/01/12 @ 100 4.100%, 04/01/15 450 451 Rochester Electric Utility, Callable 12/01/10 @ 100 5.000%, 12/01/16 1,150 1,225 Southern Minnesota Municipal Power Agency, Series A (AMBAC) 5.250%, 01/01/14 $ 3,415 $ 3,902 Southern Minnesota Municipal Power Agency, Series A, Callable 01/01/09 @ 101 (AMBAC) 5.000%, 01/01/11 1,270 1,402 Southern Minnesota Municipal Power Agency, Series A, Escrowed to Maturity, Callable 04/01/04 @ 102 (FGIC) 5.000%, 01/01/06 (b) 995 1,055 Southern Minnesota Municipal Power Agency, Series A, Zero Coupon Bond (MBIA) 5.257%, 01/01/20 (d) 3,500 1,713 5.275%, 01/01/21 (d) 5,000 2,308 Western Minnesota Municipal Power Agency, Series A, Callable 01/01/06 @ 102 (AMBAC) 5.500%, 01/01/11 5,000 5,410 5.500%, 01/01/13 2,000 2,164 Western Minnesota Municipal Power Agency, Series A, Callable 01/01/11 @ 100 (AMBAC) 5.500%, 01/01/12 1,360 1,548 --------------- 36,492 --------------- TOTAL REVENUE BONDS 136,790 --------------- GENERAL OBLIGATIONS - 44.3% Anoka County Capital Improvements, Series B 4.550%, 01/01/11 1,960 2,156 Anoka-Hennepin Independent School District #11, Callable 02/01/11 @ 100 (MSDCEP) 5.000%, 02/01/14 2,000 2,188 Anoka-Hennepin Independent School District #11, Series A (MSDCEP) 5.000%, 02/01/09 1,375 1,537 Anoka-Hennepin Independent School District #11, Series A, Callable 02/01/10 @ 100 (MSDCEP) 5.300%, 02/01/12 1,000 1,138 5.375%, 02/01/13 600 685 Anoka-Hennepin Independent School District #11, Series A, Callable 02/01/11 @ 100 (MSDCEP) 5.000%, 02/01/12 2,845 3,163 Apple Valley 2.000%, 12/01/07 425 427 Apple Valley, Callable 12/01/12 @ 100 4.000%, 12/01/15 1,000 1,021 Becker Tax Increment, Series D, Callable 08/01/04 @ 100 (AMT) (MBIA) 6.000%, 08/01/07 3,955 4,002 Bloomington Independent School District #271, Series B, Callable 02/01/10 @ 100 (MSDCEP) 5.250%, 02/01/11 1,000 1,123 Buffalo Independent School District #877, Series B (FSA) (MSDCEP) 4.500%, 02/01/13 325 355 Burnsville Independent School District #191, Series A (MSDCEP) 5.000%, 02/01/08 300 331 Burnsville Independent School District #191, Series A, Callable 02/01/08 @ 100 (MSDCEP) 5.000%, 02/01/09 1,225 1,339 Centennial Independent School District #12, Series A, Callable 02/01/12 @ 100 (FSA) (MSDCEP) 5.000%, 02/01/14 1,040 1,142
27
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------ Chaska Independent School District #112, Series A (MSDCEP) 4.800%, 02/01/10 $ 1,120 $ 1,245 Dakota County Capital Improvements, Series C 4.850%, 02/01/10 1,000 1,116 Duluth Independent School District #709, Callable 02/01/09 @ 100 (FSA) (MSDCEP) 5.000%, 02/01/16 635 687 Eden Prairie Water & Sewer, Series A, Zero Coupon Bond 4.459%, 12/01/06 (d) 2,090 1,988 Elk River Independent School District #728, Series A, Callable 02/01/11 @ 100 (MBIA) (MSDCEP) 5.000%, 02/01/18 1,000 1,072 Faribault Independent School District #656, Callable 06/01/08 @ 100 (MSDCEP) 4.750%, 06/01/15 1,100 1,168 Forest Lake Independent School District #831, Series A, Callable 02/01/08 @ 100 (MSDCEP) 5.000%, 02/01/09 1,115 1,219 Fridley Independent School District #14, Callable 02/01/05 @ 100 (FSA) (MSDCEP) 5.350%, 02/01/26 5,000 5,114 Hastings Independent School District #200, Series A, Callable 02/01/08 @ 100 (MSDCEP) 5.000%, 02/01/11 1,095 1,190 Lakeville Independent School District #194, Callable 02/01/09 @ 100 (MSDCEP) 5.000%, 02/01/16 2,000 2,156 Lakeville Independent School District #194, Series A, Callable 02/01/08 @ 100 (MSDCEP) 5.125%, 02/01/22 1,000 1,051 Lakeville Independent School District #194, Series A, Callable 02/01/13 @ 100 (FGIC) (MSDCEP) 5.000%, 02/01/22 2,435 2,579 Marshall Independent School District #413, Series A (FSA) (MSDCEP) 4.000%, 02/01/11 785 839 Minneapolis & St. Paul Metropolitan Council, Waste Water Treatment, Series A, Callable 03/01/11 @ 100 5.000%, 03/01/13 1,890 2,143 Minneapolis School District #1 (MSDCEP) 4.500%, 02/01/08 1,450 1,576 Minneapolis School District #1, Callable 02/01/06 @ 100 (MSDCEP) 5.000%, 02/01/07 1,025 1,086 5.000%, 02/01/07 1,000 1,060 Minneapolis, Callable 12/01/11 @ 100 5.000%, 12/01/12 3,600 4,039 Minneapolis, Series B, Callable 09/01/05 @ 100 5.050%, 03/01/06 6,000 6,308 Minnesota State, Callable 08/01/07 @ 100 4.800%, 08/01/11 2,010 2,168 4.850%, 08/01/12 4,420 4,775 Moorhead Independent School District #152 (MSDCEP) 5.000%, 04/01/12 1,220 1,373 Moorhead Independent School District #152, Callable 04/01/12 @ 100 (FGIC) (MSDCEP) 5.000%, 04/01/15 3,450 3,778 5.000%, 04/01/16 2,510 2,729 Mounds View Independent School District #621, Series A (MSDCEP) 5.250%, 02/01/10 $ 1,230 $ 1,399 Mounds View Independent School District #621, Series A, Callable 02/01/11 @ 100 (MSDCEP) 5.250%, 02/01/12 1,000 1,121 5.350%, 02/01/16 1,000 1,108 Mounds View Independent School District #621, Series A, Callable 02/01/12 @ 100 (MBIA) (MSDCEP) 5.000%, 02/01/18 2,340 2,512 5.000%, 02/01/19 2,565 2,736 Northfield Independent School District #659, Callable 02/01/11 @ 100 (MSDCEP) 4.600%, 02/01/13 1,100 1,189 5.000%, 02/01/15 1,295 1,415 Pequot Lakes Independent School District #186, Callable 02/01/12 @ 100 (FGIC) (MSDCEP) 5.125%, 02/01/18 500 541 Perham, Callable 05/01/11 @ 100 (AMT) 5.850%, 05/01/15 1,205 1,279 Pipestone-Jasper Independent School District #2689, Callable 03/01/09 @ 100 (FGIC) (MSDCEP) 5.400%, 03/01/13 1,095 1,227 Puerto Rico Commonwealth (MBIA) 6.000%, 07/01/14 1,605 1,964 Puerto Rico Commonwealth, Series A (XLCA) 5.500%, 07/01/17 1,000 1,168 Puerto Rico Commonwealth, Series C, Mandatory Put 07/01/08 @ 100 5.000%, 07/01/18 (c) 1,500 1,643 Robbinsdale Independent School District #281 (MSDCEP) 5.000%, 02/01/08 1,000 1,104 Robbinsdale Independent School District #281, Callable 02/01/09 @ 100 (MBIA) (MSDCEP) 5.000%, 02/01/16 1,000 1,082 Robbinsdale Independent School District #281, Callable 02/01/12 @ 100 (FSA) (MSDCEP) 5.000%, 02/01/19 1,160 1,239 5.000%, 02/01/20 1,215 1,290 Rochester Independent School District #535, Series A, Callable 02/01/11 @ 100 (MSDCEP) 5.000%, 02/01/15 1,595 1,736 Rosemount Independent School District #196, Series A, Crossover Refunded 06/01/04 @ 100 (MSDCEP) 5.625%, 06/01/07 (e) 1,400 1,410 Sauk Rapids Independent School District #47, Series B, Zero Coupon Bond, Callable 02/01/11 @ 89.37 (FSA) (MSDCEP) 5.700%, 02/01/13 (d) 1,055 728 Sauk Rapids Independent School District #47, Series B, Zero Coupon Bond, Callable 02/01/11 @ 94.63 (FSA) 5.753%, 02/01/12 (d) 1,790 1,322 Savage, Series A (FGIC) 5.200%, 02/01/05 1,000 1,034 Savage, Series A, Callable 02/01/06 @ 100 (FGIC) 5.350%, 02/01/07 1,000 1,066 5.500%, 02/01/08 1,000 1,069
The accompanying notes are an integral part of the financial statements. 28
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------ South Washington County, Independent School District #833, Series A (MSDCEP) 5.500%, 02/01/09 $ 500 $ 569 South Washington County, Independent School District #833, Series B, Callable 02/01/12 @ 100 (FSA) (MSDCEP) 5.000%, 02/01/15 1,030 1,126 St. Louis Park Independent School District #283, Callable 02/01/09 @ 100 (MSDCEP) 5.250%, 02/01/10 1,500 1,671 5.600%, 02/01/15 725 809 St. Michael Independent School District #885, Callable 02/01/12 @ 100 (FSA) (MSDCEP) 5.000%, 02/01/14 1,690 1,856 5.000%, 02/01/17 1,000 1,079 St. Paul, Series A, Callable 03/01/09 @ 100 5.000%, 03/01/10 1,180 1,304 St. Paul Independent School District #625, Series C (FGIC) (MSDCEP) 4.000%, 02/01/14 410 428 Stillwater Independent School District #834, Callable 02/01/09 @ 100 (MSDCEP) 4.750%, 02/01/11 2,140 2,311 West St. Paul Independent School District #197, Zero Coupon Bond (MBIA) (MSDCEP) 5.896%, 02/01/05 (d) 2,000 1,982 Willmar Independent School District #347, Series A, Callable 02/01/06 @ 100 (MSDCEP) 5.150%, 02/01/09 1,160 1,228 --------------- TOTAL GENERAL OBLIGATIONS 119,811 --------------- CERTIFICATES OF PARTICIPATION - 3.1% Eden Prairie Housing & Redevelopment Authority, Series A, Callable 12/01/10 @ 100 (MLO) 5.000%, 12/01/11 255 286 Hennepin County (MLO) 4.650%, 11/15/08 1,000 1,105 Hennepin County, Callable 11/15/08 @ 100 (MLO) 5.375%, 11/15/09 2,280 2,553 Minneapolis Special School District #1, Series A, Pre-refunded 02/01/06 @ 100 (MBIA) (MLO) 5.900%, 02/01/11 (a) 2,150 2,320 St. Paul Independent School District #625, Series E, Callable 02/01/11 @ 100 (MBIA) (MLO) (MSDCEP) 4.200%, 02/01/15 500 515 Stearns County Housing & Redevelopment Authority, Series A, Callable 02/01/08 @ 100 (FSA) (MLO) 4.950%, 02/01/09 1,540 1,679 --------------- TOTAL CERTIFICATES OF PARTICIPATION 8,458 --------------- TOTAL MUNICIPAL BONDS (Cost $247,387) 265,059 --------------- DESCRIPTION SHARES VALUE (000) - ------------------------------------------------------------------------------------------------ MONEY MARKET FUND - 1.0% Federated Minnesota Municipal Cash Trust 2,757,562 $ 2,758 --------------- TOTAL MONEY MARKET FUND (Cost $2,758) 2,758 --------------- TOTAL INVESTMENTS - 98.9% (Cost $250,145) 267,817 --------------- OTHER ASSETS AND LIABILITIES, NET - 1.1% 3,014 --------------- TOTAL NET ASSETS - 100.0% $ 270,831 ---------------
(a) Pre-refunded issues are usually backed by U.S. Government obligations. These bonds mature at the call date and price indicated. (b) Escrowed to Maturity issues are usually backed by U.S. Government obligations. If callable, these bonds may still be subject to call at the call date and price indicated. (c) Variable Rate Security - The rate shown is the rate in effect as of March 31, 2004. (d) The rate shown is the effective yield at the time of purchase. (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 March 31, 2004, the aggregate market value of securities subject to the AMT was $21,413,500, which represents 7.9% of net assets. 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 MSDCEP - Minnesota School District Credit Enhancement Program XLCA - XL Capital Assurance Inc. 29 MINNESOTA TAX FREE FUND
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------ MUNICIPAL BONDS - 98.4% REVENUE BONDS - 69.1% ECONOMIC DEVELOPMENT - 2.3% Minnesota Agricultural & Economic Development Board, Small Business Development, Series B, Callable 08/01/08 @ 102 (AMT) 7.250%, 08/01/20 $ 1,000 $ 1,063 Minnesota Agricultural & Economic Development Board, Small Business Development, Series C, Callable 08/01/08 @ 102 (AMT) 7.250%, 08/01/20 1,385 1,369 Minnesota Agricultural & Economic Development Board, Small Business Development, Series D, Callable 08/01/08 @ 102 (AMT) 7.250%, 08/01/20 1,120 1,126 Minnesota Agriculture & Economic Development Board, Minnesota Small Business Program, Series A, Callable 08/01/10 @ 100 (AMT) 5.550%, 08/01/16 500 513 --------------- 4,071 --------------- EDUCATION - 6.4% Golden Valley, The Breck School, Callable 10/01/09 @ 100 5.750%, 10/01/14 1,000 1,136 Minneapolis Gateway Project, Series A, Callable 12/01/07 @ 100 5.250%, 12/01/17 1,000 1,090 Minneapolis, The Blake School Project, Callable 09/01/21 @ 100 5.450%, 09/01/21 2,000 2,134 Minnesota State Higher Education Facilities Authority, Augsburg College, Series 4-F1, Callable 05/01/06 @ 102 6.250%, 05/01/23 1,500 1,571 Minnesota State Higher Education Facilities Authority, Carleton College, Callable 11/01/07 @ 100 5.400%, 11/01/15 1,500 1,642 Minnesota State Higher Education Facilities Authority, Carleton College, Series 3-L1, Callable 05/01/06 @ 100 5.750%, 11/01/12 1,050 1,131 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 1,089 Minnesota State Higher Education Facilities Authority, College of St. Benedict, Series 3-W, Callable 04/01/04 @ 100 6.200%, 03/01/14 460 461 6.375%, 03/01/20 140 140 Minnesota State Higher Education Facilities Authority, Vermilion Community College, Series 3-T, Callable 07/01/04 @ 100 5.750%, 01/01/13 575 589 University of Minnesota, Series A 5.500%, 07/01/21 500 578 --------------- 11,561 --------------- HEALTHCARE - 22.2% Bemidji Hospital Facilities, North Country Health Services, Callable 09/01/06 @ 102 5.625%, 09/01/15 $ 1,600 $ 1,694 Bemidji Hospital Facilities, North Country Health Services, Callable 09/01/12 @ 100 (RAAI) 5.000%, 09/01/24 500 512 Chisago Health Facilities Authority, Callable 07/01/05 @ 102 7.300%, 07/01/25 400 415 Cuyuna Range Hospital District, Series A, Callable 06/01/07 @ 102 6.000%, 06/01/29 3,000 2,887 Duluth Economic Development Authority, Benedictine Health System, Callable 02/15/14 @ 100 5.250%, 02/15/28 1,000 1,026 5.250%, 02/15/33 2,500 2,554 Fergus Falls Health Care Facilities Authority, Lake Region Hospital, Long Term Care Facilities Project, Callable 12/01/05 @ 102 6.500%, 12/01/25 2,000 2,084 Fergus Falls Health Care Facilities Authority, Series A, Callable 11/01/04 @ 102 7.000%, 11/01/19 1,000 992 Glencoe Health Care Services Facilities Project, Callable 04/01/11 @ 101 7.500%, 04/01/31 1,700 1,839 Glencoe Hospital Board, Pre-refunded 08/01/04 @ 102 6.750%, 04/01/16 (a) 1,100 1,142 Golden Valley, Covenant Retirement Communities, Series A, Callable 12/01/09 @ 101 5.500%, 12/01/29 1,750 1,787 Marshall Minnesota Medical Center, Weiner Memorial Medical Center Project, Series A, Callable 11/01/13 @ 100 5.250%, 11/01/16 305 321 5.850%, 11/01/23 875 920 Minneapolis & St. Paul Housing & Redevelopment Authority, Series A, Callable 08/15/05 @ 102 (FSA) 5.600%, 08/15/12 250 268 Minneapolis Healthcare System, Allina Health System, Series A, Callable 11/15/12 @ 100 6.000%, 11/15/23 1,500 1,644 5.750%, 11/15/32 2,400 2,551 Minnesota Agricultural & Economic Development Board, Benedictine Health, Series A, Callable 02/15/10 @ 101 (MBIA) 5.250%, 02/15/15 2,000 2,196 Minnesota Agricultural & Economic Development Board, Fairview Hospital Project, Series A, Callable 11/15/07 @ 102 (MBIA) 5.500%, 11/15/11 500 561 5.500%, 11/15/17 1,000 1,112 Minnesota Agricultural & Economic Development Board, Health Care System, Series A, Callable 11/15/10 @ 101 6.375%, 11/15/29 4,000 4,388
The accompanying notes are an integral part of the financial statements. 30
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------ Monticello, Big Lake Community Hospital, Series A, Callable 12/01/09 @ 100 5.750%, 12/01/19 $ 1,000 $ 1,014 Monticello, Big Lake Community Hospital, Series C, Callable 12/01/12 @ 100 6.200%, 12/01/22 1,000 1,049 Moorhead Economic Development Authority, Series B, Callable 06/01/04 @ 102 6.000%, 06/01/29 1,900 1,907 New Hope Housing & Healthcare Facilities Authority, Masonic Home North Ridge, Callable 03/01/09 @ 102 5.750%, 03/01/15 1,600 1,635 Olmstead County, Hiawatha Homes Project, Callable 04/01/04 @ 102 6.500%, 07/01/16 170 164 Sauk Rapids Health Care & Housing Facilities, Good Shepherd Lutheran Home, Callable 01/01/12 @ 101 6.000%, 01/01/34 900 909 St. Louis Park Health Care Facilities, Park Nicollet Health Services, Series B, Callable 07/01/14 @ 100 5.500%, 07/01/25 2,000 2,110 St. Paul Housing & Redevelopment Authority, Callable 05/15/09 @ 100 5.250%, 05/15/18 500 512 --------------- 40,193 --------------- HOUSING - 11.0% Austin Housing & Redevelopment Authority, Series A, Callable 01/01/06 @ 102 7.250%, 01/01/26 500 503 Coon Rapids Multifamily Housing, Margaret Place, Callable 11/01/07 @ 102 6.250%, 05/01/18 500 465 Dakota County Community Development Agency, Multifamily Housing, Ebenezer Ridges Project, Callable 04/20/11 @ 102 (GNMA) 5.900%, 04/20/42 2,000 2,144 Eden Prairie Multifamily Housing, Callable 01/20/08 @ 102 (GNMA) 5.500%, 01/20/18 500 529 Eden Prairie Multifamily Housing, Parkway Apartments Project, Series A, Callable 02/20/07 @ 104 5.700%, 08/20/22 1,000 1,063 Hennepin County Housing & Redevelopment Authority, Loring Park Apartments, Callable 08/15/06 @ 102.50, Mandatory Put 02/15/09 @ 100 (AMT) (FNMA) 3.050%, 06/15/34 (b) 2,000 1,984 Hopkins Elderly Housing, Series A, Callable 11/20/07 @ 102 (GNMA) 5.600%, 11/20/17 500 529 Hopkins Multifamily Housing, Renaissance Project, Callable 04/01/07 @ 102 6.250%, 04/01/15 500 530 Minnesota State Housing Finance Agency, Residential Housing, Series B, Callable 07/01/11 @ 100 (AMT) 5.650%, 07/01/33 1,350 1,423 Minnesota State Housing Finance Agency, Residential Housing, Series B-1-RMK, Callable 07/01/11 @ 100 (AMT) 5.350%, 07/01/33 $ 1,410 $ 1,461 Minnesota State Housing Finance Agency, Residential Housing, Series F, Callable 07/01/11 @ 100 (AMT) 5.400%, 07/01/30 3,175 3,318 Minnesota State Housing Finance Agency, Series A, Callable 08/01/11 @ 100 3.850%, 02/01/13 1,455 1,494 Minnesota State Housing Finance Agency, Single Family Mortgage, Series C, Callable 07/01/09 @ 100 (AMT) 6.100%, 07/01/30 665 682 St. Anthony Housing & Redevelopment Authority, Callable 05/20/06 @ 102 (FHA) (GNMA) 6.250%, 11/20/25 1,500 1,648 St. Louis Park, Multifamily Housing, Callable 11/01/08 @ 102 (FHA) (GNMA) 5.250%, 11/01/20 500 523 St. Louis Park, Multifamily Housing, Callable 12/01/05 @ 102 (FHA) 6.250%, 12/01/28 500 519 White Bear Lake, Lake Square Housing, Series A, Callable 02/01/07 @ 102 (FHA) 6.000%, 08/01/20 1,020 1,074 --------------- 19,889 --------------- IMPROVEMENTS - 4.4% Minnesota State Retirement Systems Building, Callable 06/01/10 @ 100 5.875%, 06/01/27 7,000 8,013 --------------- INDUSTRIAL DEVELOPMENT - 0.7% Little Canada Commercial Development, Callable 04/01/04 @ 101 (MLO) 7.100%, 04/01/13 1,340 1,348 --------------- LEASE REVENUE - 2.5% New Brighton Economic Development Authority, Public Safety Facility, Leasing Project, Series A, Callable 02/01/10 @ 100 4.900%, 02/01/15 850 889 5.000%, 02/01/16 895 936 5.100%, 02/01/17 900 941 St. Paul Port Authority, Office Building at Robnert St.-3-11 4.000%, 12/01/13 1,695 1,783 --------------- 4,549 --------------- RECREATIONAL FACILITY AUTHORITY - 2.2% Moorhead, Golf Course, Series B, Callable 12/01/08 @ 100 5.875%, 12/01/21 2,000 2,042 St. Paul Port Authority, Radisson Kellogg Project, Series 2, Callable 08/01/08 @ 103 7.375%, 08/01/29 2,000 2,040 --------------- 4,082 --------------- TAX REVENUE - 2.5% Duluth Economic Development Authority 8.000%, 08/01/08 220 235
31
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------ Minneapolis Community Development, Series A, Zero Coupon Bond (MBIA) 7.125%, 09/01/04 (c) $ 500 $ 498 Minneapolis Community Development, Series G-3, Callable 12/01/11 @ 100 5.450%, 12/01/31 3,250 3,411 Minneapolis, St. Anthony Falls Project, Callable 03/01/12 @ 102 5.750%, 02/01/27 300 294 --------------- 4,438 --------------- TRANSPORTATION - 3.0% Minneapolis & St. Paul Metropolitan Airports Commission, Callable 01/01/11 @ 100 (AMT) (FGIC) 5.250%, 01/01/21 2,000 2,088 Minneapolis & St. Paul Metropolitan Airports Commission, Series A, Callable 01/01/10 @ 101 (FGIC) 5.750%, 01/01/32 3,000 3,384 --------------- 5,472 --------------- UTILITIES - 11.9% Chaska Electric, Series A, Callable 10/01/10 @ 100 6.100%, 10/01/30 5,000 5,367 Southern Minnesota Municipal Power Agency, Series A (MBIA) 5.000%, 01/01/09 3,000 3,347 5.000%, 01/01/10 1,000 1,122 Southern Minnesota Municipal Power Agency, Series A, Zero Coupon Bond (MBIA) 6.650%, 01/01/19 (c) 4,000 2,063 6.700%, 01/01/24 (c) 5,000 1,941 5.800%, 01/01/25 (c) 2,000 741 5.600%, 01/01/26 (c) 8,000 2,821 5.151%, 01/01/27 (c) 3,000 1,004 Western Minnesota Municipal Power Agency, Callable 01/01/11 @ 100 (AMBAC) 5.500%, 01/01/14 1,545 1,756 5.500%, 01/01/15 550 613 Western Minnesota Municipal Power Agency, Escrowed to Maturity (MBIA) 9.750%, 01/01/16 (d) 410 635 --------------- 21,410 --------------- TOTAL REVENUE BONDS 125,026 --------------- GENERAL OBLIGATIONS - 29.0% Anoka-Hennepin Independent School District #11, Series A, Callable 02/01/10 @ 100 (MSDCEP) 5.750%, 02/01/17 1,000 1,162 Becker Independent School District #726, Series A, Callable 02/01/10 @ 100 (FSA) (MSDCEP) 6.000%, 02/01/21 1,000 1,168 Burnsville Independent School District #191, Series A, Callable 02/01/06 @ 100 (MSDCEP) 4.875%, 02/01/13 1,450 1,527 Chaska Independent School District #112, Series A, Callable 02/01/09 @ 100 (FSA) (MSDCEP) 5.700%, 02/01/18 1,000 1,123 Chaska Independent School District #112, Series B, Crossover Refunded 02/01/06 @ 100 (MSDCEP) 5.875%, 02/01/11 (e) $ 1,000 $ 1,075 6.000%, 02/01/15 (e) 525 566 6.000%, 02/01/16 (e) 5,525 5,954 Columbia Heights Independent School District #13, Crossover Refunded 02/01/07 @ 100 (MSDCEP) 5.250%, 02/01/15 (e) 1,000 1,074 Delano Independent School District #879, Series A, Callable 02/01/11 @ 100 (FSA) (MSDCEP) 5.875%, 02/01/25 1,000 1,132 Hennepin County, Series A, Callable 12/01/10 @ 100 4.250%, 12/01/12 1,000 1,061 Hennepin County, Series B (VRDO) 0.868%, 12/01/20 6,550 6,550 Hopkins Independent School District #270, Series B, Callable 02/01/11 @ 100 (MSDCEP) 4.125%, 02/01/12 2,200 2,324 Minneapolis Sports Arena, Callable 04/01/08 @ 100 5.100%, 04/01/13 500 548 5.100%, 10/01/13 250 274 Minneapolis Sports Arena, Series B, Callable 09/01/05 @ 100 5.200%, 03/01/13 400 420 Minneapolis, Series B, Callable 05/01/04 @ 100 (SPA) (VRDO) 0.868%, 12/01/07 1,160 1,160 Minnesota State 4.000%, 08/01/11 10,000 10,702 5.000%, 08/01/11 2,500 2,840 North St. Paul Independent School District #622, Series B, Callable 05/01/06 @ 100 (MSDCEP) 5.850%, 05/01/17 500 539 Northfield Independent School District #659, Callable 02/01/11 @ 100 5.000%, 02/01/16 1,015 1,105 Perham, Disposal System, Callable 05/01/11 @ 100 (AMT) 6.000%, 05/01/22 1,500 1,579 Sauk Rapids Independent School District #47, Series A, Callable 02/01/11 @ 100 (MBIA) 5.750%, 02/01/23 2,000 2,244 South Washington County Independent School District #833, Callable 06/01/05 @ 100 (MLO) 5.850%, 06/01/15 500 524 South Washington County Independent School District #833, Series A (MSDCEP) 3.500%, 06/01/11 1,575 1,623 St. Louis Park Independent School District #283, Callable 02/01/09 @ 100 (MSDCEP) 5.700%, 02/01/17 2,000 2,241 Wayzata Independent School District #284, Series A, Callable 02/01/07 @ 100 5.500%, 02/01/17 2,000 2,164 --------------- TOTAL GENERAL OBLIGATIONS 52,679 ---------------
The accompanying notes are an integral part of the financial statements. 32
DESCRIPTION PAR (000)/SHARES VALUE (000) - ------------------------------------------------------------------------------------------------ CERTIFICATE 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 $ 516 --------------- TOTAL CERTIFICATE OF PARTICIPATION 516 --------------- TOTAL MUNICIPAL BONDS (Cost $166,878) 178,221 --------------- MONEY MARKET FUND - 0.4% Federated Minnesota Municipal Cash Trust 728,203 728 --------------- TOTAL MONEY MARKET FUND (Cost $728) 728 --------------- TOTAL INVESTMENTS - 98.8% (Cost $167,606) 178,949 --------------- OTHER ASSETS AND LIABILITIES, NET - 1.2% 2,226 --------------- TOTAL NET ASSETS - 100.0% $ 181,175 ---------------
(a) Pre-refunded issues are usually backed by U.S. Government obligations. These bonds mature at the call date and price indicated. (b) Variable Rate Security - The rate shown is the rate in effect as of March 31, 2004. (c) The rate shown is the effective yield at the time of purchase. (d) Escrowed to Maturity issues are usually backed by U.S. Government obligations. If callable, these bonds may still be subject to call at the call date and price indicated. (e) 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 March 31, 2004, the aggregate market value of securities subject to the AMT was $16,606,981, which represents 9.2% 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 RAAI - Radian Asset Assurance Inc. SPA - Standby Purchase Agreement 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 March 31, 2004. 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. MISSOURI TAX FREE FUND
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------ MUNICIPAL BONDS - 98.8% REVENUE BONDS - 73.2% EDUCATION - 7.9% Missouri State Health & Educational Facilities Authority, University of Missouri-Columbia Arena Project, Callable 11/01/11 @ 100 5.000%, 11/01/19 $ 2,540 $ 2,702 Missouri State Health & Educational Facilities Authority, Washington University, Series A, Callable 02/15/13 @ 100 5.000%, 02/15/33 1,000 1,041 Missouri State Health & Educational Facilities Authority, Washington University, Series A, Callable 06/15/11 @ 100 5.125%, 06/15/41 2,150 2,229 University of Missouri, Pre-refunded 11/01/07 @ 101 5.500%, 11/01/21 (a) 3,000 3,400 5.800%, 11/01/27 (a) 5,000 5,719 --------------- 15,091 --------------- HEALTHCARE - 17.5% Boone County Hospital, Callable 08/01/12 @ 100 5.050%, 08/01/20 1,200 1,246 Cape Girardeau County Authority, Southeast Missouri Hospital Association, Callable 06/01/12 @ 100 5.625%, 06/01/22 1,500 1,577 Missouri State Health & Educational Facilities Authority, Barnes-Jewish Inc., Series A 4.750%, 05/15/05 100 104 Missouri State Health & Educational Facilities Authority, BJC Health Systems, Callable 05/15/08 @ 101 5.000%, 05/15/28 3,105 3,143 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) 235 241 Missouri State Health & Educational Facilities Authority, BJC Health Systems, Series A, Escrowed to Maturity 6.750%, 05/15/12 (b) 3,310 4,109 Missouri State Health & Educational Facilities Authority, Freeman Hospital Project, Series A, Callable 02/15/05 @ 101 (FSA) 5.375%, 02/15/14 1,000 1,023 Missouri State Health & Educational Facilities Authority, Lake Regional Health System Project 5.000%, 02/15/12 515 545 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 1,103 5.000%, 06/01/12 2,000 2,143 5.000%, 06/01/18 3,895 4,064 Missouri State Health & Educational Facilities Authority, St. Luke's Health System, Callable 11/15/04 @ 101 (MBIA) 5.100%, 11/15/13 2,000 2,042
33
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------ North Kansas City Hospital, Callable 11/15/08 @ 101 (AMBAC) 5.000%, 11/15/13 $ 700 $ 750 5.000%, 11/15/28 2,000 2,064 North Kansas City Hospital, Series A, Callable 11/15/13 @ 100 (FSA) 5.000%, 11/15/21 250 265 St. Louis County Industrial Development Authority, Ranken-Jordan Project, Series A, Callable 11/15/13 @ 100 6.625%, 11/15/35 500 508 University Health Facilities, University of Missouri Health System, Series A, Callable 11/01/06 @ 102 (AMBAC) 5.600%, 11/01/26 5,000 5,320 University Health Facilities, University of Missouri Health System, Series A, Callable 11/01/08 @ 100 (AMBAC) 5.000%, 11/01/09 1,000 1,100 University of Missouri Health Systems, Series A, Callable 11/01/08 @ 100 (AMBAC) 5.125%, 11/01/28 2,000 2,048 --------------- 33,395 --------------- HOUSING - 0.8% Missouri State Community Development Agency, Callable 05/07/04 @ 100 (FHA) 6.100%, 07/01/04 45 45 6.200%, 01/01/05 25 25 University City Industrial Development Authority, Multifamily Housing, Series A, Callable 12/20/05 @ 102 5.950%, 12/20/25 1,400 1,452 --------------- 1,522 --------------- INDUSTRIAL DEVELOPMENT - 0.5% Sugar Creek, Lafarge North America, Series A, Callable 06/01/13 @ 101 (AMT) 5.650%, 06/01/37 1,000 1,014 --------------- LEASE REVENUE - 10.9% Clay County, Public Building Authority, Callable 05/15/08 @ 100 (MLO) 5.125%, 05/15/14 3,280 3,608 Missouri State Board of Public Buildings, State Office Building Special Obligation, Series A, Callable 05/01/11 @ 100 (MBIA) (MLO) 5.000%, 05/01/23 2,000 2,080 5.000%, 05/01/24 5,130 5,308 5.125%, 05/01/26 5,000 5,247 Missouri State Board of Public Buildings, State Office Building Special Obligation, Series A, Callable 05/01/11 @ 100 (MLO) 5.000%, 05/01/17 1,000 1,076 Missouri State Financial Board Infrastructure Facilities, Branson, Series A, Callable 12/01/12 @ 100 (MLO) 5.000%, 12/01/17 1,000 1,038 5.375%, 12/01/22 750 776 Puerto Rico Public Buildings Authority, Public Education and Health Facilities, Series B, Callable 07/01/07 @ 101.50 (AMBAC) (COMGTY) (MLO) 5.000%, 07/01/27 1,000 1,036 Puerto Rico Public Buildings Authority, Public Education and Health Facilities, Series M, Pre-refunded 07/01/05 @ 100 (COMGTY) (MLO) 5.500%, 07/01/21 (a) $ 755 $ 795 --------------- 20,964 --------------- POLLUTION CONTROL - 16.8% Missouri State Environmental Improvement & Energy Resources Authority, Amerenue Project, Series A (VRDO) (XLCA) 0.850%, 03/01/35 1,000 1,000 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 1,093 Missouri State Environmental Improvement & Energy Resources Authority, Water Pollution Control, Drinking Water, Callable 01/01/07 @ 101 5.000%, 01/01/08 500 543 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 2,335 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 2,408 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 2,309 5.500%, 07/01/18 1,400 1,588 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 1,006 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 2,821 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 1,170 1,275 Missouri State Environmental Improvement & Energy Resources Authority, Water Pollution Control, Series C, State Revolving Fund Program 5.375%, 07/01/13 1,570 1,828 5.375%, 07/01/14 2,400 2,803 5.375%, 07/01/15 1,500 1,738 5.375%, 07/01/16 2,000 2,317
The accompanying notes are an integral part of the financial statements. 34
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------ 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 $ 6,942 --------------- 32,006 --------------- 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 1,125 --------------- TRANSPORTATION - 12.2% Missouri State Highways & Transportation Road, Series A 5.000%, 02/01/11 6,000 6,756 4.100%, 02/01/12 600 638 Missouri State Highways & Transportation Road, Series A, Callable 02/01/11 @ 100 5.000%, 02/01/17 550 592 5.250%, 02/01/20 5,000 5,409 Missouri State Highways & Transportation Road, Series A, Callable 02/01/12 @ 100 5.125%, 02/01/17 1,000 1,087 5.000%, 02/01/22 3,725 3,919 Platte County Industrial Development Transportation Authority (MLO) 3.750%, 12/01/12 675 696 4.000%, 12/01/14 780 802 St. Louis Airport, Capital Improvement Program, Series A, Callable 07/01/12 @ 100 (MBIA) 5.375%, 07/01/21 1,000 1,091 St. Louis Airport, Series A (FSA) 4.000%, 07/01/13 2,200 2,273 --------------- 23,263 --------------- UTILITIES - 6.0% Kansas City Water, Series A, Callable 12/01/08 @ 101 5.000%, 12/01/11 4,390 4,867 Kansas City Water, Series B, Callable 12/01/06 @ 101 5.000%, 12/01/07 500 545 5.000%, 12/01/16 2,200 2,369 Kansas City Water, Series D, Pre-refunded 12/01/04 @ 100 6.300%, 12/01/08 (a) 500 517 Sikeston Electric, Callable 06/01/06 @ 101 (MBIA) 5.000%, 06/01/22 1,000 1,039 Springfield Water Works, Series A, Pre-refunded 05/01/05 @ 102 5.600%, 05/01/23 (a) 2,000 2,096 --------------- 11,433 --------------- TOTAL REVENUE BONDS 139,813 --------------- GENERAL OBLIGATIONS - 25.6% Clayton School District (STAID) 4.250%, 02/01/08 50 54 Clayton School District, Callable 03/01/07 @ 101 5.000%, 03/01/17 3,325 3,557 Columbia School District, Callable 03/01/07 @ 100 6.300%, 03/01/11 $ 365 $ 408 Columbia School District, Missouri Direct Deposit Program, Callable 03/01/08 @ 100 (STAID) 4.850%, 03/01/14 1,000 1,083 Ferguson Reorganized School District #R-2 (STAID) 3.750%, 05/01/11 1,000 1,050 Independence School District, Missouri Direct Deposit Program (FSA) (STAID) 3.500%, 03/01/14 1,315 1,303 Independence School District, Missouri Direct Deposit Program, Callable 03/01/13 @ 100 (MBIA) (STAID) 5.000%, 03/01/20 1,240 1,326 Jackson County School District #4, Missouri Direct Deposit Program (STAID) 5.250%, 03/01/11 1,000 1,143 Jackson County School District, Callable 03/01/08 @ 100 4.850%, 03/01/13 2,000 2,165 Jefferson City School District, Series A 6.700%, 03/01/11 1,000 1,204 Jefferson County School District #R-3, Callable 03/01/08 @ 100 (STAID) 4.600%, 03/01/12 500 525 Kansas City, Series A, Callable 03/01/08 @ 101 5.250%, 09/01/09 300 334 5.250%, 09/01/12 3,980 4,434 Kansas City, Series A, Streetlight Project, Callable 02/01/10 @ 101 5.750%, 02/01/12 1,000 1,156 Missouri State Water Pollution Control, Series A, Pre-refunded 08/01/06 @ 100 5.750%, 08/01/18 (a) 2,085 2,284 Missouri State, Fourth State Building, Series A, Pre-refunded 08/01/06 @ 100 5.400%, 08/01/09 (a) 2,000 2,174 North Kansas City School District, Callable 03/01/11 @ 100 5.000%, 03/01/16 1,265 1,371 Puerto Rico Municipal Finance Agency, Callable 08/01/09 @ 101 5.500%, 08/01/23 3,000 3,315 St. Charles County, Francis Howell School District, Series A (STAID) 4.000%, 03/01/11 1,000 1,070 St. Charles School District, Missouri Direct Deposit Program, Callable 03/01/06 @ 101 5.000%, 03/01/12 750 802 St. Louis County 5.000%, 02/01/12 3,250 3,675 St. Louis County Public Safety, Callable 08/15/09 @ 100 (FGIC) 5.125%, 02/15/17 4,185 4,545 St. Louis County Rockwood School District #R-6, Callable 02/01/11 @ 100 5.000%, 02/01/13 3,000 3,312 St. Louis County Rockwood School District #R-6, Series A, Callable 02/01/13 @ 100 5.000%, 02/01/14 2,000 2,226
35
DESCRIPTION PAR (000)/SHARES VALUE (000) - ------------------------------------------------------------------------------------------------ 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 $ 1,086 Wentzville School District #R-4, Callable 03/01/08 @ 100 (FSA) 5.100%, 03/01/18 3,000 3,226 --------------- TOTAL GENERAL OBLIGATIONS 48,828 --------------- TOTAL MUNICIPAL BONDS (Cost $175,687) 188,641 --------------- AFFILIATED MONEY MARKET FUND - 1.0% First American Tax Free Obligations Fund, Cl Z (c) 1,866,640 1,867 --------------- TOTAL AFFILIATED MONEY MARKET FUND (Cost $1,867) 1,867 --------------- TOTAL INVESTMENTS - 99.8% (Cost $177,554) 190,508 --------------- OTHER ASSETS AND LIABILITIES, NET - 0.2% 475 --------------- TOTAL NET ASSETS - 100.0% $ 190,983 ---------------
(a) Pre-refunded issues are usually backed by U.S. Government obligations. These bonds mature at the call date and price indicated. (b) Escrowed to Maturity issues are usually backed by U.S. Government obligations. If callable, these bonds may still be subject to call at the call date and price indicated. (c) Investment in affiliated security. 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 March 31, 2004, the aggregate market value of securities subject to the AMT was $1,013,650, which represents 0.5% of net assets. COMGTY - Guaranteed by Commonwealth of Puerto Rico Cl - Class FGIC - Financial Guaranty Insurance Corporation FHA - Federal Housing Authority FSA - Financial Security Assurance MBIA - Municipal Bond Insurance Association MLO - Municipal Lease Obligation 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 March 31, 2004. 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. NEBRASKA TAX FREE FUND
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------ MUNICIPAL BONDS - 98.6% REVENUE BONDS - 77.7% EDUCATION - 20.8% Nebraska Educational Finance Authority, Concordia University Project, Callable 12/15/08 @ 100 5.350%, 12/15/18 $ 650 $ 669 Nebraska Educational Finance Authority, Creighton University Project, Series A (AMBAC) 5.000%, 09/01/09 500 561 Nebraska Educational Finance Authority, Midland Lutheran College Project, Callable 10/01/10 @ 100 5.200%, 10/01/20 350 353 Nebraska Educational Finance Authority, Wesleyan University Project, Callable 04/01/12 @ 100 (RAAI) 5.000%, 04/01/17 605 637 Nebraska Utility Corporation, University of Nebraska, Lincoln Project, Callable 01/01/12 @ 100 5.250%, 01/01/15 1,045 1,161 University of Nebraska, Facility Corporation, Deferred Maintenance Project, Callable 07/15/08 @ 100 5.250%, 07/15/11 1,000 1,106 University of Nebraska, Lincoln Parking Project, Callable 08/01/05 @ 102 5.100%, 06/01/09 500 526 University of Nebraska, Lincoln Student Fees, Callable 01/01/13 @ 100 5.000%, 07/01/22 750 781 University of Nebraska, Lincoln Student Fees, Series B 4.250%, 07/01/12 175 187 University of Nebraska, Lincoln Student Fees, Series B, Callable 11/15/13 @ 100 4.000%, 07/01/15 500 506 University of Nebraska, Omaha Student Housing Project, Callable 11/24/13 @ 100 5.000%, 05/15/23 500 525 University of Nebraska Facilities, Medical Center Research Project, Callable 02/15/12 @ 100 5.000%, 02/15/15 500 543 --------------- 7,555 --------------- HEALTHCARE - 17.2% Douglas County Hospital Authority #1, Immanuel Medical Center, Callable 09/01/07 @ 102 (AMBAC) 4.900%, 09/01/09 750 819 Douglas County Hospital Authority #2, Nebraska Medical Center 5.000%, 11/15/16 700 741 Lancaster County Hospital Authority, Bryanlgh Medical Center Project, Callable 06/01/11 @ 100 (AMBAC) 5.000%, 06/01/19 500 524 5.125%, 06/01/21 1,200 1,260
The accompanying notes are an integral part of the financial statements. 36
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------ Madison County Hospital Authority #1, Faith Regional Health Services Project, Callable 01/01/12 @ 100 (RAAI) 5.500%, 07/01/21 $ 1,000 $ 1,071 Nebraska Investment Finance Authority, Great Plains Regional Medical Center, Callable 05/15/12 @ 100 (RAAI) 5.200%, 11/15/16 250 267 5.300%, 11/15/17 805 861 Platte County Hospital Authority #1, Columbus Community Hospital Project, Callable 05/01/10 @ 101 (RAAI) 5.850%, 05/01/14 650 720 --------------- 6,263 --------------- HOUSING - 5.6% Nebraska Investment Finance Authority, Multifamily Housing (GNMA) 4.625%, 07/20/12 455 488 Nebraska Investment Finance Authority, Single Family Housing, Series A, Callable 03/01/11 @ 100 (AMT) 5.150%, 03/01/16 755 803 Omaha Housing Authority, Multifamily Housing, Timbercreek Apartments, Callable 10/01/11 @ 100 (GNMA) 5.150%, 11/20/22 725 757 --------------- 2,048 --------------- LEASE REVENUE - 2.2% Nebraska Educational Telecommunication Commission, Leasing Project, Series 2000 (MLO) 6.000%, 02/01/06 750 809 --------------- RECREATIONAL FACILITY AUTHORITY - 7.6% Douglas County Zoo Facility, Omaha Henry Doorly Zoo Project, Callable 09/01/09 @ 100 5.650%, 09/01/11 1,000 1,114 Omaha Convention Hotel Corporation, Series A, Callable 04/01/12 @ 100 (AMBAC) 5.500%, 04/01/16 525 593 5.125%, 04/01/26 1,000 1,050 --------------- 2,757 --------------- TAX REVENUE - 1.4% Omaha Special Tax Revenue, Series A, Callable 02/01/12 @ 101 5.125%, 02/01/32 500 526 --------------- TRANSPORTATION - 0.8% Omaha Airport Authority, Callable 01/01/11 @ 100 (FSA) 5.500%, 01/01/14 250 280 --------------- UTILITIES - 22.1% Alliance Electrical Systems, Callable 06/15/08 @ 100 (AMBAC) 5.000%, 12/15/14 260 285 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%, 08/15/16 750 823 Hastings Electrical Systems, Callable 05/01/11 @ 100 (FSA) 5.000%, 01/01/15 $ 1,000 $ 1,088 5.000%, 01/01/16 750 812 Lincoln Electrical Systems, Callable 09/01/11 @ 100 5.000%, 09/01/15 500 546 Lincoln Electrical Systems, Callable 09/01/13 @ 100 5.000%, 09/01/26 1,000 1,044 Nebraska Investment Finance Authority, Drinking Water System Revolving Fund, Callable 01/01/09 @ 100 4.500%, 01/01/10 115 122 5.150%, 01/01/16 580 605 Omaha Public Power District, Series A, Callable 02/01/10 @ 100 5.000%, 02/01/17 655 702 5.200%, 02/01/22 630 671 Omaha Public Power Electrical Systems, Escrowed to Maturity (a) 6.200%, 02/01/17 210 255 Washington County Wastewater Facilities, Cargill Inc. Project, Callable 11/01/12 @ 101 5.900%, 11/01/27 300 324 --------------- 8,033 --------------- TOTAL REVENUE BONDS 28,271 --------------- GENERAL OBLIGATIONS - 17.2% Dawson County School District, Callable 06/15/06 @ 102 5.100%, 12/15/16 365 394 Douglas County School District #17, Millard, Callable 11/15/12 @ 100 (FSA) 4.000%, 11/15/13 500 524 Douglas County School District #54, Ralston Public Schools, Callable 08/15/11 @ 100 (FSA) 5.000%, 12/15/16 845 920 Lancaster County School District #1, Lincoln Public Schools, Callable 01/15/11 @ 100 5.250%, 07/15/19 220 240 Lancaster County School District #1, Lincoln Public Schools, Callable 07/15/12 @ 100 5.000%, 01/15/17 750 810 Lincoln County School District #1, North Platte Public Schools, Callable 02/15/09 @ 100 (FSA) 3.850%, 12/15/17 500 498 Omaha, Callable 04/01/14 @ 100 4.125%, 04/01/24 (b) 500 474 Omaha, Series A 6.500%, 12/01/18 825 1,057 Omaha, Series B, Pre-refunded 05/01/04 @ 100 (c) 5.250%, 12/01/25 500 502 Omaha-Douglas Public Building, Callable 05/01/11 @ 100 4.900%, 05/01/16 500 534 5.100%, 05/01/20 300 320 --------------- TOTAL GENERAL OBLIGATIONS 6,273 ---------------
37
DESCRIPTION PAR (000)/SHARES VALUE (000) - ------------------------------------------------------------------------------------------------ CERTIFICATES OF PARTICIPATION - 3.7% Western Nebraska Community College, Callable 10/15/07 @ 100 4.700%, 10/15/10 $ 295 $ 310 4.800%, 10/15/11 195 204 4.900%, 10/15/12 250 261 5.000%, 10/15/13 300 312 5.100%, 10/15/14 250 260 --------------- TOTAL CERTIFICATES OF PARTICIPATION 1,347 --------------- TOTAL MUNICIPAL BONDS (Cost $33,821) 35,891 --------------- AFFILIATED MONEY MARKET FUND - 1.3% First American Tax Free Obligations Fund, Cl Z (d) 455,068 455 --------------- TOTAL AFFILIATED MONEY MARKET FUND (Cost $455) 455 --------------- TOTAL INVESTMENTS - 99.9% (Cost $34,276) 36,346 --------------- OTHER ASSETS AND LIABILITIES, NET - 0.1% 41 --------------- TOTAL NET ASSETS - 100.0% $ 36,387 ---------------
(a) Escrowed to Maturity issues are usually 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 purchased on a when-issued basis. On March 31, 2004, the total cost of investments purchased on a when-issued basis was $488,995. See note 2 in Notes to Financial Statements. (c) Pre-refunded issues are usually backed by U.S. Government obligations. These bonds mature at the call date and price indicated. (d) Investment in affiliated security. 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 March 31, 2004, the aggregate market value of securities subject to the AMT was $802,950, which represents 2.2% 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. OHIO TAX FREE FUND
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------ MUNICIPAL BONDS - 97.0% REVENUE BONDS - 28.7% EDUCATION - 5.6% Ohio State Higher Educational Facilities, Xavier University Project, Callable 05/01/13 @ 100 (FGIC) 5.250%, 05/01/16 $ 1,000 $ 1,115 University of Cincinnati, Series A, Callable 06/01/11 @ 101 (FGIC) 5.500%, 06/01/14 1,000 1,141 --------------- 2,256 --------------- HEALTHCARE - 7.5% Erie County Hospital Facilities, Firelands Regional Medical Center, Series A, Callable 08/15/12 @ 101 5.500%, 08/15/22 500 525 Fairfield County Hospital Facilities, Fairfield Medical Center, Callable 06/15/12 @ 100 (RAAI) 5.000%, 06/15/22 500 512 Franklin County Health Care Facilities, Refunding & Improvement, Ohio Presbyterian, Series A, Callable 07/01/12 @ 100 (RAAI) 5.125%, 07/01/22 500 516 Hamilton County Hospital Facilities, Children's Medical Center, Series F (FGIC) 5.200%, 05/15/09 1,000 1,109 Lorain County Hospital, Catholic Healthcare, Callable 10/01/12 @ 100 5.500%, 10/01/17 350 378 --------------- 3,040 --------------- POLLUTION CONTROL - 2.6% Ohio State Water Development Authority, Water Pollution Control, Callable 06/01/12 @ 100 5.050%, 12/01/21 1,000 1,063 --------------- TRANSPORTATION - 5.0% Dayton, James M. Cox Dayton International, Series A, Callable 12/01/13 @ 100 (RAAI) 4.750%, 12/01/14 160 170 4.750%, 12/01/15 165 173 4.750%, 12/01/17 180 185 Lucas County Port Authority, Crocker Park Public Improvement Project, Callable 12/01/13 @ 102 5.250%, 12/01/23 400 407 Ohio State Turnpike Commission, Series A, Pre-refunded 02/15/06 @ 102 (MBIA) 5.700%, 02/15/13 (a) 1,000 1,096 --------------- 2,031 --------------- UTILITIES - 8.0% Cincinnati Water System, Callable 06/01/11 @ 100 5.000%, 12/01/20 1,000 1,058 Montgomery County Water, Greater Moraine Beaver, Callable 11/15/12 @ 100 (AMBAC) 5.375%, 11/15/16 1,000 1,127 Ohio State Water Development Authority, Escrowed to Maturity, Callable 06/01/05 @ 102 (AMBAC) 5.800%, 12/01/11 (b) 1,000 1,069 --------------- 3,254 --------------- TOTAL REVENUE BONDS 11,644 ---------------
The accompanying notes are an integral part of the financial statements. 38
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------ GENERAL OBLIGATIONS - 59.6% Cincinnati, Callable 12/01/11 @ 100 5.000%, 12/01/16 $ 1,000 $ 1,088 5.000%, 12/01/17 1,000 1,080 Columbus City School District, School Facilities Construction & Improvement, Callable 06/01/13 @ 100 (FGIC) 5.000%, 12/01/18 2,000 2,163 Dayton City School District, School Facilities Construction & Improvement, Series D (FGIC) 5.000%, 12/01/11 1,000 1,133 Dublin, Refunding & Improvement, Series A, Callable 12/01/09 @ 101 5.250%, 12/01/14 1,000 1,125 Greater Cleveland Regional Transportation Authority, Pre-refunded 12/01/06 @ 101 (FGIC) 5.650%, 12/01/16 (a) 1,000 1,114 Northwest School District, School Improvement, Callable 12/01/12 @ 100 (MBIA) 5.000%, 12/01/22 1,000 1,055 Ohio State Common Schools, Series A, Callable 03/15/12 @ 100 5.125%, 09/15/22 2,000 2,124 Ohio State Higher Education, Series A, Callable 02/01/11 @ 100 5.000%, 02/01/19 1,000 1,062 Ohio State Higher Education, Series A, Callable 02/01/12 @ 100 5.000%, 08/01/22 1,000 1,051 Ohio State Higher Education, Series B, Callable 11/01/11 @ 100 5.000%, 11/01/15 1,000 1,093 5.000%, 11/01/16 1,000 1,088 Ohio State Infrastructure Improvement, Series A 5.500%, 02/01/20 1,000 1,159 Pickerington School District, School Facilities Construction & Improvement, Callable 12/01/11 @ 100 (FGIC) 5.250%, 12/01/20 1,000 1,085 Revere Local School District (FSA) 5.000%, 12/01/12 1,150 1,298 Solon, Callable 12/01/12 @ 100 5.000%, 12/01/21 1,000 1,061 Springfield City School District, Callable 12/01/11 @ 102 (FGIC) 5.200%, 12/01/23 1,000 1,077 Summit County, Series R (FGIC) 5.500%, 12/01/21 1,000 1,161 Sylvania City School District, Pre-refunded 12/01/05 @ 101 (FGIC) 5.800%, 12/01/15 (a) 1,000 1,084 Toledo City School District, School Facilities Improvement, Callable 12/01/13 @ 100 (FSA) 5.000%, 12/01/14 1,000 1,120 --------------- TOTAL GENERAL OBLIGATIONS 24,221 --------------- DESCRIPTION PAR (000)/SHARES VALUE (000) - ------------------------------------------------------------------------------------------------ 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 $ 1,361 Ohio State Building Authority, State Facility, Administration Building Fund, Series A, Callable 04/01/12 @ 100 (FSA) 5.500%, 04/01/16 1,000 1,129 5.000%, 04/01/22 1,000 1,052 --------------- TOTAL CERTIFICATES OF PARTICIPATION 3,542 --------------- TOTAL MUNICIPAL BONDS (Cost $37,590) 39,407 --------------- MONEY MARKET FUND - 1.5% Federated Ohio Municipal Trust 608,768 609 --------------- TOTAL MONEY MARKET FUND (Cost $609) 609 --------------- TOTAL INVESTMENTS - 98.5% (Cost $38,199) 40,016 --------------- OTHER ASSETS AND LIABILITIES, NET - 1.5% 604 --------------- TOTAL NET ASSETS - 100.0% $ 40,620 ---------------
(a) Pre-refunded issues are usually backed by U.S. Government obligations. These bonds mature at the call date and price indicated. (b) Escrowed to Maturity issues are usually 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 FGIC - Financial Guaranty Insurance Corporation FSA - Financial Security Assurance MBIA - Municipal Bond Insurance Association RAAI - Radian Asset Assurance Inc. 39 OREGON INTERMEDIATE TAX FREE FUND
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------ MUNICIPAL BONDS - 98.7% REVENUE BONDS - 38.3% BUILDING - 0.5% Oregon State Fair & Exposition Center, Callable 04/01/04 @ 101 (RAAI) 5.400%, 10/01/06 $ 755 $ 765 --------------- EDUCATION - 4.8% Multnomah County Educational Facilities, University of Portland, Callable 04/01/07 @ 102 (AMBAC) 5.750%, 04/01/10 2,245 2,519 5.700%, 04/01/15 1,000 1,076 Oregon State Health, Housing, Educational & Cultural Facilities Authority, George Fox University, Series A, Callable 03/01/07 @ 102 (BA) 5.400%, 03/01/09 395 432 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 2,100 Salem Educational Facilities, Williamette University, Callable 04/01/04 @ 101 5.700%, 04/01/05 500 507 --------------- 7,085 --------------- HEALTHCARE - 5.6% Clackamas County Hospital Facilities Authority, Legacy Health Systems, Callable 08/15/09 @ 101 5.250%, 02/15/11 2,000 2,215 5.375%, 02/15/12 1,000 1,102 Clackamas County Hospital Facilities Authority, Mary's Woods, Series A, Callable 05/15/09 @ 102 6.125%, 05/15/13 1,000 1,068 Medford Hospital Facilities Authority, Asante Health Systems, Callable 08/15/08 @ 101 (MBIA) 5.250%, 08/15/11 1,000 1,111 5.375%, 08/15/12 1,000 1,116 Salem Hospital Facilities Authority, Callable 08/15/08 @ 101 5.250%, 08/15/14 1,000 1,065 Umatilla County Hospital Facilities Authority, Catholic Health Initiatives, Series A 5.000%, 03/01/12 690 754 --------------- 8,431 --------------- HOUSING - 4.4% Oregon State Housing & Community Services, Series A, Callable 04/01/04 @ 102 4.900%, 07/01/05 1,075 1,099 5.750%, 07/01/12 2,490 2,535 Oregon State Housing & Community Services, Series A, Callable 07/01/04 @ 102 6.400%, 07/01/18 465 476 Oregon State Housing & Community Services, Series A, Callable 07/01/06 @ 102 6.000%, 07/01/16 550 582 Oregon State Housing & Community Services, Series E, Callable 01/01/10 @ 100 (FHA) 5.750%, 07/01/13 615 646 Portland Housing Authority, Riverwood Project, Pre-refunded 01/01/06 @ 100 6.000%, 01/01/11 (a) $ 1,170 $ 1,260 --------------- 6,598 --------------- IMPROVEMENTS - 0.8% Oregon State Department of Administrative Services Lottery, Series A, Callable 04/01/10 @ 100 (FSA) 5.000%, 04/01/12 1,050 1,156 --------------- POLLUTION CONTROL - 1.9% Port of St. Helens Pollution Control, Portland General Electric 4.800%, 04/01/10 2,450 2,458 4.800%, 06/01/10 400 401 --------------- 2,859 --------------- TAX REVENUE - 1.5% Medford Urban Renewal Agency, Callable 01/01/13 @ 101 4.500%, 06/01/13 1,010 1,079 Portland Urban Renewal & Redevelopment, Convention Center, Series A, Callable 06/15/10 @ 101 (AMBAC) 5.750%, 06/15/15 1,000 1,154 --------------- 2,233 --------------- TRANSPORTATION - 6.2% Oregon State Department of Transportation, Highway User Tax, Callable 11/15/10 @ 100 5.125%, 11/15/14 2,260 2,513 Oregon State Department of Transportation, Highway User Tax, Series A, Callable 11/15/12 @ 100 5.500%, 11/15/16 1,000 1,138 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 1,284 5.250%, 07/01/12 2,000 2,196 Tri-County Metropolitan Transportation District, Series 1 (MGT) 4.900%, 06/01/09 500 549 --------------- 9,198 --------------- UTILITIES - 12.6% Clackamas County Service District #1, Pre-refunded 10/01/06 @ 100 6.200%, 10/01/09 (a) 700 778 Eugene Electric Utilities, Callable 08/01/06 @ 100 (FSA) 5.375%, 08/01/11 1,195 1,290 Eugene Electric Utilities, Callable 08/01/07 @ 100 (FSA) 5.000%, 08/01/11 1,305 1,420 Eugene Electric Utilities, Callable 08/01/08 @ 100 (FSA) 4.800%, 08/01/13 690 744 Marion County Solid Waste & Electric, Ogden Martin System Project (AMBAC) 5.500%, 10/01/06 1,465 1,600
40
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------ Portland Sewer Systems, Series A, Callable 06/01/07 @ 100 (FGIC) 5.000%, 06/01/09 $ 2,250 $ 2,442 5.000%, 06/01/10 2,000 2,171 5.000%, 06/01/15 250 268 Salem Water & Sewer (MBIA) 6.000%, 06/01/06 1,135 1,242 Tualatin Valley Water District, Callable 06/01/08 @ 100 (FSA) 5.000%, 06/01/12 1,000 1,097 Washington County Clean Water Services, Callable 10/01/11 @ 100 (FGIC) 5.125%, 10/01/14 1,790 1,989 Washington County Unified Sewer Agency, Callable 10/01/06 @ 101 (FGIC) 5.200%, 10/01/09 1,300 1,416 Washington County Unified Sewer Agency, Series 1 (FGIC) 5.750%, 10/01/08 1,000 1,149 Washington County Unified Sewer Agency, Series A, Zero Coupon Bond (AMBAC) 4.200%, 10/01/07 (b) 1,200 1,113 --------------- 18,719 --------------- TOTAL REVENUE BONDS 57,044 --------------- GENERAL OBLIGATIONS - 54.9% Chemeketa Community College District, Escrowed to Maturity (FGIC) 5.500%, 06/01/13 (c) 2,170 2,532 Clackamas & Washington Counties School District #3, Linn-Wilsonville District, Series A, Zero Coupon Bond (FGIC) 4.415%, 06/15/15 (b) 4,000 2,502 Clackamas County Limited Tax Assessment, Callable 05/01/04 @ 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 1,416 Clackamas County School District #62, Oregon City (FSA) (SBG) 4.250%, 06/15/14 1,350 1,424 Clackamas County School District #86, Canby, Callable 06/15/10 @ 100 (SBG) 5.500%, 06/15/15 1,835 2,072 Columbia County School District #502, Zero Coupon Bond (FGIC) 0.000%, 06/01/12 (b) 1,530 1,136 5.000%, 06/01/16 (b) 1,000 600 Deschutes & Jefferson Counties School District #2, Callable 06/15/11 @ 100 5.500%, 06/15/14 1,725 1,969 Deschutes County, Callable 12/01/12 @ 100 (FSA) 5.000%, 12/01/14 1,755 1,940 Deschutes County, Pre-refunded 12/01/06 @ 100 (MBIA) 5.250%, 12/01/09 (a) 1,000 1,094 Eugene Public Safety Facilities, Callable 06/01/06 @ 100 (FGIC) 5.700%, 06/01/16 1,295 1,396 Hood River County School District, Callable 06/15/11 @ 100 (SBG) 5.250%, 06/15/16 1,030 1,137 Jackson County School District #549, Medford (SBG) 5.000%, 06/15/12 $ 2,000 $ 2,249 Josephine County School District #7 (FGIC) 5.750%, 06/01/06 1,525 1,660 Lake Oswego (MBIA) 5.250%, 06/01/13 1,035 1,189 Lane County School District #4, Eugene (FGIC) 5.000%, 07/01/11 1,785 2,018 Lane County School District #40, Creswell, Callable 06/15/10 @ 100 (SBG) 5.000%, 06/15/11 1,120 1,244 Lane County School District #52, Bethel, Pre-refunded 06/15/10 @ 100 (SBG) 5.350%, 06/15/11 (a) 1,285 1,472 Lincoln County School District (FGIC) 6.000%, 06/15/06 1,055 1,158 Linn Benton Community College District, Zero Coupon Bond (FGIC) (SBG) 4.000%, 06/15/08 (b) 985 889 4.210%, 06/15/09 (b) 1,000 865 Linn County Community School District, Callable 06/15/13 @ 100 (FGIC) (SBG) 5.550%, 06/15/21 1,000 1,125 Marion & Polk Counties School District #7-J, Silverton, Callable 06/01/04 @ 101 (FSA) 5.600%, 06/01/06 860 875 Marion County School District #103C Woodburn, Series B, Zero Coupon Bond (FGIC) 3.700%, 11/01/11 (b) 2,210 1,704 McMinnville School District 5.500%, 06/15/13 1,000 1,162 McMinnville School District #40 (FSA) 5.500%, 06/15/12 620 721 Metro, Callable 09/01/10 @ 102 5.250%, 09/01/14 1,000 1,127 Metropolitan, Washington Park Zoo, Series A, Callable 01/15/07 @ 100 5.250%, 01/15/10 1,000 1,083 Multnomah-Clackamas County School District #10, Gresham-Barlow, Callable 06/15/11 @ 100 (FSA) (SBG) 5.500%, 06/15/13 1,780 2,042 Multnomah-Clackamas County School District #28-302, Centennial, Callable 06/15/11 @ 100 (FGIC) (SBG) 5.500%, 06/15/14 1,500 1,713 Multnomah County School District #7, Reynolds (AMBAC) 5.500%, 06/01/06 1,000 1,086 Multnomah County School District #7, Reynolds, Callable 06/15/11 @ 100 (SBG) 5.625%, 06/15/15 1,000 1,127 Multnomah County, Series A, Callable 04/01/10 @ 100 5.000%, 04/01/11 1,000 1,111 5.125%, 04/01/13 2,445 2,726 Oregon State Alternative Energy, Private Act, Callable 07/01/04 @ 100 5.300%, 07/01/05 900 909 Oregon State Board of Higher Education, Series A, Callable 08/01/09 @ 101 5.500%, 08/01/15 1,255 1,446
41
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------ Oregon State Pollution Control, Series A, Callable 11/01/07 @ 100 4.875%, 11/01/11 $ 455 $ 494 Polk, Marion & Benton Counties School District #13-J, Callable 12/01/04 @ 101 (FGIC) 5.500%, 12/01/05 570 593 Port Portland, Series A 4.500%, 03/01/06 1,000 1,056 Portland Community College Services, Callable 06/01/11 @ 100 5.375%, 06/01/15 1,375 1,530 Portland Emergency Facilities, Series A, Callable 06/01/09 @ 100 5.000%, 06/01/12 1,060 1,168 Puerto Rico Commonwealth, Series C, Mandatory Put 07/01/08 @ 100 (FSA) 5.000%, 07/01/21 1,000 1,111 Salem-Keizer School District #24-J, Callable 06/01/08 @ 100 (FSA) 5.100%, 06/01/12 2,000 2,201 Salem-Keizer School District #24-J, Callable 06/01/09 @ 100 (SBG) 5.250%, 06/01/12 1,000 1,134 Tri-County Metropolitan Transportation District, Light Rail Extension, Series A, Callable 07/01/09 @ 101 5.250%, 07/01/10 1,115 1,259 5.250%, 07/01/12 1,000 1,121 Tualatin Hills Park & Recreation District (FGIC) 5.750%, 03/01/13 870 1,029 Umatilla County School District #016-R, Pendleton (FGIC) 5.000%, 07/01/11 1,000 1,131 5.250%, 07/01/14 1,540 1,769 Wasco County School District #12 5.500%, 06/15/14 1,080 1,259 Washington & Clackamas Counties School District #23-J, Tigard (FGIC) 5.750%, 06/01/06 1,055 1,151 5.250%, 06/01/11 1,335 1,529 Washington & Clackamas Counties School District #23-J, Tigard, Zero Coupon Bond 5.820%, 06/15/14 (b) 1,030 683 Washington County 5.500%, 06/01/10 1,000 1,156 Washington County School District #48-J, Beaverton, Callable 08/01/08 @ 100 5.250%, 08/01/10 2,000 2,220 Washington County School District #88, Sherwood, Pre-refunded 06/01/05 @ 100 (FSA) 5.700%, 06/01/06 (a) 1,000 1,053 Washington, Multnomah & Yamhill Counties School District #1-J 5.000%, 11/01/14 1,000 1,131 Washington, Multnomah & Yamhill Counties School District #1-J (MBIA) 5.000%, 06/01/10 1,325 1,494 Washington, Multnomah & Yamhill Counties School District #1-J, Callable 06/01/09 @ 100 5.250%, 06/01/12 1,185 1,322 Wilsonville, Callable 06/01/08 @ 100 5.000%, 12/01/10 350 350 --------------- TOTAL GENERAL OBLIGATIONS 81,864 --------------- DESCRIPTION PAR (000)/SHARES VALUE (000) - ------------------------------------------------------------------------------------------------ CERTIFICATES OF PARTICIPATION - 5.5% Multnomah County, Callable 08/01/08 @ 101 (MLO) 4.750%, 08/01/11 $ 2,200 $ 2,369 Oregon State Department of Administrative Services, Series A (AMBAC) (MLO) 5.500%, 05/01/07 1,000 1,108 Oregon State Department of Administrative Services, Series A, Callable 05/01/09 @ 101 (AMBAC) (MLO) 5.000%, 05/01/14 1,240 1,359 Oregon State Department of Administrative Services, Series A, Callable 05/01/13 @ 100 (FSA) 5.000%, 05/01/14 1,200 1,331 Oregon State Department of Administrative Services, Series B, Callable 11/01/07 @ 101 (AMBAC) (MLO) 5.000%, 11/01/11 840 923 Oregon State Department of Administrative Services, Series C, Pre-refunded 05/01/06 @ 101 (MBIA) (MLO) 5.750%, 05/01/07 (a) 990 1,085 --------------- TOTAL CERTIFICATES OF PARTICIPATION 8,175 --------------- TOTAL MUNICIPAL BONDS (Cost $137,005) 147,083 --------------- AFFILIATED MONEY MARKET FUND - 0.9% First American Tax Free Obligations Fund, Cl Z (d) 1,245,672 1,246 --------------- TOTAL AFFILIATED MONEY MARKET FUND (Cost $1,246) 1,246 --------------- TOTAL INVESTMENTS - 99.6% (Cost $138,251) 148,329 --------------- OTHER ASSETS AND LIABILITIES, NET - 0.4% 641 --------------- TOTAL NET ASSETS - 100.0% $ 148,970 ---------------
(a) Pre-refunded issues are usually 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 usually backed by U.S. Government obligations. If callable, these bonds may still be subject to call at the call date and price indicated. (d) Investment in affiliated security. 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. 42 SHORT TAX FREE FUND
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------ MUNICIPAL BONDS - 98.6% ALABAMA - 1.0% Foley Utilities Board, Escrowed to Maturity, Callable 09/01/04 @ 100 (RB) 6.000%, 03/01/07 (a) $ 1,500 $ 1,679 Homewood, Sewer 7, Escrowed to Maturity, Callable 04/01/04 @ 100 (RB) 6.125%, 03/01/07 (a) 1,340 1,505 Mobile, Escrowed to Maturity, Callable 08/15/04 @ 100 (GO) 6.200%, 02/15/07 (a) 1,280 1,434 --------------- 4,618 --------------- ALASKA - 1.2% Anchorage, Series B (GO) (MBIA) 5.000%, 07/01/06 5,000 5,385 --------------- ARIZONA - 3.0% Arizona State Funding Program, Series 15, Escrowed to Maturity (COP) 8.750%, 08/01/06 (a) 2,115 2,457 8.750%, 08/01/06 (a) 1,410 1,639 Pima County (AMBAC) (COP) 2.000%, 01/01/06 1,000 1,009 Salt River Project, Agricultural Improvement & Power District Electrical Systems, Series A (RB) 5.250%, 01/01/06 2,250 2,398 Scottsdale Water & Sewer, Project of 1989, Series E (RB) 7.000%, 07/01/08 1,370 1,630 University Medical Center (PUFG) (RB) 5.000%, 07/01/07 300 326 5.000%, 07/01/08 350 383 5.000%, 07/01/09 500 550 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 3,174 --------------- 13,566 --------------- CALIFORNIA - 5.2% California State (GO) 5.000%, 06/01/07 5,000 5,401 5.000%, 02/01/08 5,000 5,422 5.000%, 02/01/08 1,000 1,084 California State, Series A (RB) 2.000%, 06/16/04 4,000 4,008 California Statewide Communities Development Authority, Kaiser Permanente, Series H, Mandatory Put 05/01/08 @ 100 (RB) 2.625%, 04/01/34 (b) 4,000 3,975 Contra Costa Transportation Authority, Series A, Escrowed to Maturity, Callable 04/01/04 @ 100 (RB) 6.875%, 03/01/07 (a) 3,000 3,277 --------------- 23,167 --------------- COLORADO - 1.2% Denver City & County Airport, Series E (AMT) (RB) (XLCA) 5.000%, 11/15/07 5,000 5,446 --------------- CONNECTICUT - 0.2% Mashantucket Western Pequot Tribe, Series A, Escrowed to Maturity (RB) 6.375%, 09/01/04 (a) (c) $ 1,020 $ 1,043 --------------- DISTRICT OF COLUMBIA - 1.3% District of Columbia, Series A (GO) (MBIA) 5.500%, 06/01/07 5,000 5,545 --------------- FLORIDA - 0.8% Escambia County Health Facilities Authority, Ascension Health Credit, Series A (RB) 5.000%, 11/15/06 815 881 Highlands County Health Facilities Authority, The Adventist Health System, Series B (RB) 3.750%, 11/15/06 2,605 2,717 --------------- 3,598 --------------- GEORGIA - 0.2% Fulton Dekalb Hospital Authority (FSA) (RB) 5.000%, 01/01/07 1,000 1,083 --------------- IDAHO - 0.5% Idaho Falls, Escrowed to Maturity, Callable 04/01/04 @ 100 (RB) 10.250%, 04/01/06 (a) 995 1,086 Idaho Falls, Pre-refunded 04/01/07 @ 100, Callable 04/01/04 @ 100 (RB) 10.375%, 04/01/13 (d) 1,075 1,333 --------------- 2,419 --------------- ILLINOIS - 10.7% Champaign County Community Unit School District #4 (GO) 8.300%, 01/01/07 1,120 1,305 Chicago, Series C (GO) (MBIA) 4.000%, 01/01/08 1,000 1,064 Chicago O'Hare International Airport, 2nd Lien, Passenger Facilities, Series C (AMBAC) (AMT) (RB) 5.000%, 01/01/08 2,260 2,449 Chicago O'Hare International Airport, 2nd Lien, Passenger Facilities, Series C (MBIA) (RB) 5.750%, 01/01/09 1,000 1,141 Chicago O'Hare International Airport, Series A (AMBAC) (RB) 4.800%, 01/01/05 585 598 Chicago Park District, Partially Pre-refunded 05/15/05 @ 102, Callable 05/15/05 @ 102 (GO) 6.350%, 11/15/08 (d) 2,000 2,148 Cook County Community High School District #218, Partially Escrowed to Maturity, Zero Coupon Bond (FSA) (GO) 2.630%, 12/01/05 (a) (e) 1,760 1,720 Cook County Consolidated High School District #200, Oak Park, Zero Coupon Bond (FSA) (GO) 2.070%, 12/01/05 (e) 2,265 2,212 Cook County High School District #209, Proviso Township (FSA) (GO) 2.650%, 12/01/08 1,485 1,364 Du Page Airport Authority, Series A (FGIC) (RB) 3.000%, 02/01/07 2,000 2,064
43
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------ Illinois Development Finance Authority, Mercy Housing Corporation Project, Pre-refunded 08/01/04 @ 102 (GTY) (RB) 7.000%, 08/01/24 (d) $ 6,505 $ 6,744 Illinois Development Finance Authority, People's Gas, Light & Coke, Series B, Mandatory Put 02/01/08 @ 100 (AMBAC) (RB) 3.050%, 02/01/33 (b) 3,000 3,081 Illinois Educational Facilities Authority, The Art Institute of Chicago, Mandatory Put 03/01/08 @ 100 (RB) 3.100%, 03/01/34 2,000 2,017 Illinois Finance Authority, Depaul University, Series A (RB) 5.000%, 10/01/07 1,000 1,092 5.000%, 10/01/09 1,000 1,104 Illinois Health Facilities Authority, Covenant Retirement Communities, Series A (RAAI) (RB) 3.375%, 12/01/06 1,365 1,415 Illinois Health Facilities Authority, St. Elizabeth's Hospital, Pre-refunded 07/01/04 @ 102 (RB) 7.625%, 07/01/10 (d) 1,000 1,036 7.750%, 07/01/16 (d) 3,150 3,264 Illinois Health Facilities Authority, University of Chicago, Hospital & Health (MBIA) (RB) 5.000%, 08/15/06 1,000 1,079 5.000%, 08/15/07 1,000 1,098 Illinois State Toll Highway Authority, Pre-refunded 07/01/06 @ 100, Callable 04/01/04 @ 100 (RB) 6.750%, 01/01/10 (d) 55 60 Illinois State, First Series (GO) 4.000%, 12/01/06 2,000 2,122 Lake County Community Unit School District #60, Waukegan, Series A (FSA) (GO) 6.000%, 12/01/05 1,115 1,201 Lake County School District #112, Highland Park (GO) 9.000%, 12/01/06 1,655 1,959 9.000%, 12/01/07 1,000 1,237 Northern University, Escrowed to Maturity, Callable 04/01/04 @ 100 (RB) 7.125%, 04/01/05 (a) 1,405 1,445 Sangamon County (COP) 7.300%, 12/01/04 1,500 1,559 --------------- 47,578 --------------- INDIANA - 4.0% East Chicago Multi School Building Corporation, Pre-refunded 07/15/06 @ 102 (RB) (STAID) 6.500%, 01/15/16 (d) 1,000 1,129 Gary Sanitation District, Special Tax District (GO) (RAAI) 3.500%, 02/01/07 1,105 1,144 Indiana Transportation Finance Authority, Airport Facilities, Series A (AMBAC) (RB) 6.000%, 11/01/08 2,600 3,004 Indianapolis Industries Local Public Improvement, Airport Authority, Series A (AMT) (FSA) (RB) 5.000%, 01/01/07 10,000 10,751 New Albany Floyd County School Building, Escrowed to Maturity (RB) (STAID) 6.200%, 07/01/04 (a) $ 1,300 $ 1,317 --------------- 17,345 --------------- KANSAS - 0.7% Augusta Electric Generating & Distribution System, Escrowed to Maturity, Callable 05/15/04 @ 100 (RB) 6.700%, 11/15/07 (a) 1,440 1,475 Newton Hospital, Newton Healthcare Corporation, Series A, Pre-refunded 11/15/04 @ 102 (RB) 7.375%, 11/15/14 (d) 1,500 1,586 --------------- 3,061 --------------- KENTUCKY - 0.3% Bowling Green Industrial Building, Koehring Company Project, Escrowed to Maturity (RB) 7.250%, 04/01/04 (a) 405 405 Kentucky State Turnpike Authority, Escrowed to Maturity, Callable 04/01/04 @ 100 (RB) 6.125%, 07/01/07 (a) 420 451 Owensboro Electric, Light & Power, Escrowed to Maturity, Callable 07/01/04 @ 100 (RB) 6.850%, 01/01/08 (a) 570 631 --------------- 1,487 --------------- LOUISIANA - 0.3% Louisiana State Health & Education Authority, Lambeth House Project, Pre-refunded 10/01/06 @ 102 (RB) 9.000%, 10/01/26 (d) 1,000 1,196 --------------- MARYLAND - 0.5% Calvert County Economic Development, Asbury-Solomons Island Facilities Project, Pre-refunded 01/01/05 @ 102 (RB) 8.375%, 01/01/15 (d) 1,000 1,074 Maryland State Health & Higher Education Facilities Authority, Memorial Hospital of Cumberland, Pre-refunded 07/01/04 @ 100 (RB) 6.500%, 07/01/17 (d) 1,000 1,013 --------------- 2,087 --------------- MASSACHUSETTS - 3.9% Massachusetts State Housing Finance Agency, Series B (RB) 2.500%, 06/01/06 6,000 6,074 Massachusetts State, Series E (GO) 5.500%, 01/01/09 10,000 11,297 --------------- 17,371 --------------- MICHIGAN - 4.7% Detroit Water Supply System, Escrowed to Maturity, Callable 07/01/04 @ 100 (RB) 8.875%, 01/01/05 (a) 1,590 1,674 Detroit, Series B (GO) (XLCA) 5.000%, 04/01/06 2,455 2,621 Michigan Municipal Bond Authority, Pre-refunded 10/01/04 @ 102 (RB) 6.500%, 10/01/17 (d) 3,100 3,247
44
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------ Michigan Municipal Bond Authority, Series A, Escrowed to Maturity, Callable 04/01/04 @ 101 (RB) 6.150%, 10/01/05 (a) $ 1,500 $ 1,610 Michigan State Hospital Finance Authority, Genesys Health System, Series A, Pre-refunded 10/01/05 @ 100 (RB) 7.500%, 10/01/27 (d) 6,620 7,235 Michigan State Hospital Finance Authority, Harper-Grace Hospital, Escrowed to Maturity, Callable 04/01/04 @ 100 (RB) 7.125%, 05/01/09 (a) 445 500 Michigan State Hospital Finance Authority, Henry Ford Health System, Series A (RB) 5.000%, 03/01/06 1,000 1,056 Michigan State Hospital Finance Authority, Oakwood Obligated Group (RB) 5.000%, 11/01/06 1,000 1,073 Michigan State Strategic Fund, Dow-Chemical Project, Mandatory Put 06/01/06 @ 100 (RB) 3.800%, 06/01/14 (b) 1,800 1,860 --------------- 20,876 --------------- MINNESOTA - 1.3% Hennepin County Housing & Redevelopment Authority, Loring Park Apartments, Callable 08/15/06 @ 102.50, Mandatory Put 02/15/09 @ 100 (AMT) (FNMA) 3.050%, 06/15/34 (b) 2,000 1,984 Minneapolis Healthcare System, Allina Health System, Series A (RB) 5.000%, 11/15/06 1,895 2,030 Monticello, Big Lake Community Hospital District, Series C (RB) 4.250%, 12/01/07 1,675 1,727 Northwestern Mutual Life Insurance Co. Tax-Exempt Mortgage Trust #1 (RB) 7.605%, 02/15/09 (b) 46 46 --------------- 5,787 --------------- MISSISSIPPI - 0.8% Mississippi State, Escrowed to Maturity, Callable 02/01/08 @ 100 (GO) 6.200%, 02/01/08 (a) 3,085 3,495 --------------- MISSOURI - 4.1% Boone County Hospital (RB) 5.000%, 08/01/06 4,065 4,338 Little Blue Valley Sewer District, Escrowed to Maturity (RB) 5.750%, 10/01/04 (a) 1,000 1,004 Little Blue Valley Sewer District, Escrowed to Maturity, Callable 04/01/04 @ 100 (RB) 5.500%, 10/01/07 (a) 1,000 1,122 Missouri State Development Finance Board, Branson, Series A (RB) 5.000%, 12/01/05 1,000 1,055 Missouri State Environmental Improvement & Energy Resources Authority, Water Pollution Control, Associated Electric CoOp, Thomas Hill (RB) 5.500%, 12/01/06 1,000 1,102 Missouri State Highways & Transit Commission, State Road, Series A (RB) 5.000%, 02/01/09 $ 7,500 $ 8,377 St. Louis International Airport, Series A (FSA) (RB) 5.000%, 07/01/07 1,100 1,202 --------------- 18,200 --------------- NEBRASKA - 1.0% Douglas County Hospital Authority #002, Nebraska Medical Center (GTY) (RB) 5.000%, 11/15/07 1,000 1,091 5.000%, 11/15/08 1,000 1,099 Nebraska Investment Finance Authority, Catholic Health Initiatives, Series A (RB) 5.500%, 12/01/07 2,000 2,223 --------------- 4,413 --------------- NEVADA - 2.1% Clark County Pollution Control, Series A, Mandatory Put 03/02/09 @ 100 (AMT) (RB) 3.250%, 06/01/31 (b) 3,000 2,993 Clark County Pollution Control, Series C, Mandatory Put 03/02/09 @ 100 (AMT) (RB) 3.250%, 06/01/31 (b) 3,000 2,993 Nevada State, Partially Pre-refunded 12/01/04 @ 101, Callable 12/01/04 @ 101 (GO) 6.500%, 12/01/12 (d) 3,000 3,139 --------------- 9,125 --------------- NEW HAMPSHIRE - 1.3% New Hampshire State, Series A (GO) 5.000%, 07/15/07 5,220 5,741 --------------- NEW JERSEY - 4.4% New Jersey Economic Development Authority, Arbor Glen Project, Series A, Pre-refunded 05/15/06 @ 102 (RB) 8.000%, 05/15/12 (d) 2,000 2,305 New Jersey Economic Development Authority, United Methodist Homes, Pre-refunded 07/01/05 @ 102 (RB) 7.500%, 07/01/20 (d) 4,255 4,656 New Jersey Health Care Facilities Financing Authority, Capital Health Systems, Series A (RB) 5.000%, 07/01/07 2,465 2,647 5.000%, 07/01/08 1,585 1,712 New Jersey Sports & Exposition Authority, Monmouth Park, Series A, Pre-refunded 01/01/05 @ 102 (RB) 8.000%, 01/01/25 (d) 2,400 2,572 New Jersey State Educational Facilities Authority, Stevens Institute of Technology, Series C (RB) 4.000%, 07/01/04 500 503 New Jersey State Transportation Corporation, Sub-Federal Transportation Administrative Grants, Series B (COP) 5.000%, 09/15/06 2,025 2,180 New Jersey State Turnpike Authority, Escrowed to Maturity (RB) 6.750%, 01/01/09 (a) 2,585 2,806 --------------- 19,381 --------------- NEW MEXICO - 0.3% Farmington, Pre-refunded 07/01/05 @ 100 (RB) 9.875%, 01/01/13 (d) 1,360 1,492 ---------------
45
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------ NEW YORK - 7.1% Long Island Power Authority, Series B (RB) 5.000%, 12/01/06 $ 3,700 $ 3,995 Monroe County Airport Authority, Greater Rochester International (AMT) (MBIA) (RB) 4.000%, 01/01/08 1,125 1,191 5.000%, 01/01/09 1,175 1,299 New York, Series A (GO) 5.250%, 08/01/08 8,000 8,864 New York, Series G (GO) 5.000%, 08/01/08 1,615 1,773 New York, Series H (GO) 4.000%, 08/01/08 1,675 1,771 New York City Transitional Finance Authority, Future Tax Secondary Subscriber, Series D-1 (RB) 5.000%, 11/01/09 2,950 3,316 New York State Dormitory Authority, Lutheran Medical (FHA) (MBIA) (RB) 3.000%, 02/01/07 1,410 1,452 New York State Dormitory Authority, Mental Health, Series F-1 (RB) 5.000%, 02/15/07 2,000 2,163 Port Authority of New York & New Jersey, 119th Series (AMT) (FGIC) (RB) 5.000%, 09/15/06 5,050 5,446 --------------- 31,270 --------------- NORTH CAROLINA - 2.0% North Carolina Medical Care Commission, Health Care Facilities, Series A (RB) 2.500%, 11/01/07 1,000 999 North Carolina Medical Care Commission, Novant Health Obligated Group, Series A (RB) 5.000%, 11/01/07 5,325 5,850 North Carolina Municipal Power Agency, Series A (RB) 3.000%, 01/01/05 1,665 1,684 5.000%, 01/01/05 500 513 --------------- 9,046 --------------- OHIO - 1.4% Allen County Economic Development, Young Men's Christian Association, Mandatory Put 04/14/08 @ 100 (RB) 3.000%, 04/15/18 (b) 5,000 5,105 Toledo-Lucas County Port Authority, Crocker Park Public Improvement Project (RB) 3.000%, 12/01/06 1,090 1,114 --------------- 6,219 --------------- OKLAHOMA - 0.3% Ponca City Utility Authority, Escrowed to Maturity, Callable 04/01/04 @ 100 (RB) 6.000%, 07/01/08 (a) 1,110 1,280 --------------- PENNSYLVANIA - 1.6% Chartiers Valley Industrial & Commercial Development Authority, Friendship Village South, Series A (RB) 2.750%, 08/15/05 400 401 3.150%, 08/15/06 400 401 3.450%, 08/15/07 300 300 Hampden Township Sewer Authority, Escrowed to Maturity, Callable 04/01/04 @ 100 (RB) 6.150%, 04/01/07 (a) $ 1,060 $ 1,156 Lehigh County General Purpose Authority, Muhlenberg Hospital Center, Series A, Pre-refunded 07/15/04 @ 100 (RB) 6.600%, 07/15/22 (d) 3,250 3,300 Ringgold School District Authority, Escrowed to Maturity, Callable 04/01/04 @ 100 (RB) 6.700%, 01/15/08 (a) 1,165 1,302 --------------- 6,860 --------------- PUERTO RICO - 2.8% Puerto Rico Commonwealth, Highway Transportation Authority, Series AA (RB) 5.000%, 07/01/07 7,200 7,869 Puerto Rico Commonwealth, Series C, Mandatory Put 07/01/08 @ 100 (GO) 5.000%, 07/01/18 (b) 4,250 4,655 --------------- 12,524 --------------- RHODE ISLAND - 0.6% Rhode Island State Health & Educational Building, Higher Education Facility, Johnson & Wales (RB) (XLCA) 5.000%, 04/01/07 1,000 1,091 Rhode Island State Health & Educational Building, Higher Education Facility, Roger Williams, Pre-refunded 11/15/04 @ 102 (CLE) (RB) 7.200%, 11/15/14 (d) 1,500 1,587 --------------- 2,678 --------------- SOUTH CAROLINA - 0.4% Georgetown County, Series A (FGIC) (GO) 3.000%, 03/01/07 1,055 1,090 South Carolina Jobs Economic Development Authority, Palmetto Health Alliance, Series C (RB) 4.500%, 08/01/06 660 684 --------------- 1,774 --------------- 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 1,676 South Dakota Housing Development Authority, Homeownership Mortgage, Series I (AMT) (RB) 2.850%, 05/01/06 1,600 1,638 --------------- 3,314 --------------- TENNESSEE - 0.4% Sullivan County Health Educational & Housing Facilities, Wellmont Health Systems Project (RB) 4.500%, 09/01/06 1,500 1,564 --------------- TEXAS - 19.3% Arlington Independent School District, Pre-refunded 02/15/05 @ 67.33, Zero Coupon Bond (GO) (PSFG) 2.460%, 02/15/12 (d) (e) 8,940 5,961 Austin Utility System, Pre-refunded 11/15/04 @ 100 (FGIC) (RB) 5.750%, 05/15/24 (d) 1,530 1,575
The accompanying notes are an integral part of the financial statements. 46
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------ Austin, Escrowed to Maturity, Callable 04/01/04 @ 100 (GO) 8.500%, 07/01/05 (a) $ 1,500 $ 1,635 Brazos River Authority, Utilities Electric Co., Series B, Mandatory Put 06/19/06 @ 100 (AMT) (RB) 5.050%, 06/01/30 (b) 1,800 1,884 Colorado River Municipal Water System (AMBAC) (RB) 5.000%, 01/01/06 1,500 1,590 Dallas (GO) 3.500%, 02/15/08 5,000 5,240 Fort Bend Independent School District (GO) (PSFG) 7.750%, 08/15/04 1,485 1,521 Harris County Health Facilities Development, Hermann Hospital Project, Pre-refunded 10/01/04 @ 101 (MBIA) (RB) 6.375%, 10/01/24 (d) 830 860 Houston Airport Systems, Escrowed to Maturity (RB) 8.200%, 07/01/05 (a) 910 954 Houston Health Facilities Development, Buckingham Senior Living Community, Series A, Callable 02/15/09 @ 100 (RB) 4.900%, 02/15/10 1,020 1,022 Houston Water & Sewer System, Series A (FSA) (RB) 5.500%, 12/01/06 4,500 4,950 Houston, Public Improvement (GO) (MBIA) 5.000%, 03/01/07 5,000 5,440 Jefferson County Health Facilities Development Authority, Baptist Hospitals (AMBAC) (FHA) (RB) 4.200%, 08/15/07 1,450 1,550 Laredo Independent School District (GO) (PSFG) 6.750%, 08/01/08 2,150 2,535 North Central Health Facility Development, Baylor Health Care Systems Project (RB) 5.500%, 05/15/06 3,500 3,782 North East Independent School District (GO) (PSFG) 7.000%, 02/01/05 2,500 2,621 Northside Independent School District, Series B, Callable 08/01/04 @ 100, Mandatory Put 08/01/06 @ 100 (GO) (PSFG) 2.450%, 08/01/33 (b) 7,000 7,017 San Antonio (GO) 3.000%, 02/01/06 1,700 1,746 Southeast Hospital Financing Agency, Memorial Hospital System Project, Escrowed to Maturity, Callable 04/01/04 @ 100 (RB) 8.500%, 12/01/08 (a) 800 927 Tarrant Regional Water District (FSA) (RB) 4.000%, 03/01/07 2,000 2,120 5.000%, 03/01/08 2,275 2,510 Texas State Public Finance Authority, Series A (GO) 5.250%, 10/01/07 10,250 11,400 Texas State Turnpike Authority (RB) 5.000%, 06/01/08 7,000 7,747 Texas Technical University, Improvement Financing Systems, Ninth Series (AMBAC) (RB) 4.000%, 02/15/08 1,000 1,065 Trinity River Authority, Tarrant County Water Project (MBIA) (RB) 3.000%, 02/01/05 $ 1,180 $ 1,198 3.000%, 02/01/06 2,590 2,660 3.250%, 02/01/07 2,130 2,210 Tyler Health Facilities Development, Mother Frances Hospital (RB) 5.000%, 07/01/07 575 613 United Independent School District (GO) (PSFG) 8.000%, 08/15/05 1,075 1,173 --------------- 85,506 --------------- UTAH - 1.7% Intermountain Power Agency, Series A (MBIA) (RB) 5.000%, 07/01/07 7,000 7,678 --------------- WASHINGTON - 2.7% Clark County Public Utility District #001, Electric (MBIA) (RB) 4.000%, 01/01/07 1,000 1,057 5.000%, 01/01/08 1,400 1,540 Clark County Public Utility District #001, Generating Systems (MBIA) (RB) 4.000%, 01/01/07 1,000 1,058 Energy Northwest Electric, Columbia General Station, Series F (MBIA) (RB) 5.000%, 07/01/07 1,000 1,098 Washington State Housing Finance Commission, Presbyterian Ministries, Series A, Pre-refunded 07/01/06 @ 102 (RB) 6.850%, 07/01/21 (d) 1,390 1,578 Washington State, Series E (GO) 6.000%, 07/01/07 5,000 5,640 --------------- 11,971 --------------- WEST VIRGINIA - 0.7% Putnam County Pollution Control, Appalachian Power Company Project, Series E, Mandatory Put 11/01/06 @ 100 (RB) 2.800%, 05/01/19 (b) 3,000 3,010 --------------- WISCONSIN - 1.8% Racine Solid Waste Disposal, Republic Services Project, Mandatory Put 04/01/09 @ 100 (AMT) (RB) 3.250%, 12/01/37 (b) (f) 5,000 4,954 Wisconsin State Health & Educational Facilities Authority, Gundersen Lutheran, Series A (FSA) (RB) 5.000%, 02/15/08 1,000 1,095 Wisconsin State Health & Educational Facilities Authority, Wheaton Franciscan Services, Series A (RB) 5.000%, 08/15/07 1,000 1,086 Wisconsin State Health & Educational Facilities, Marquette University Project, Pre-refunded 12/01/04 @ 101 (FGIC) (RB) 6.450%, 12/01/19 (d) 1,000 1,046 --------------- 8,181 --------------- TOTAL MUNICIPAL BONDS (Cost $426,735) 437,380 ---------------
47
DESCRIPTION SHARES VALUE (000) - ------------------------------------------------------------------------------------------------ AFFILIATED MONEY MARKET FUND - 1.3% First American Tax Free Obligations Fund, Cl Z (g) 5,718,386 $ 5,718 --------------- TOTAL AFFILIATED MONEY MARKET FUND (Cost $5,718) 5,718 --------------- TOTAL INVESTMENTS - 99.9% (Cost $432,453) 443,098 --------------- OTHER ASSETS AND LIABILITIES, NET - 0.1% 424 --------------- TOTAL NET ASSETS - 100.0% $ 443,522 ---------------
(a) Escrowed to Maturity issues are usually 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 March 31, 2004. (c) Security sold within the terms of a private placement memorandum, exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other "qualified institutional buyers." These securities have been determined to be liquid under the guidelines established by the Funds' board of directors. As of March 31, 2004, the value of these investments was $1,042,797 or 0.2% of total net assets. (d) Pre-refunded issues are usually backed by U.S. Government obligations. These bonds mature at the call date and price indicated. (e) The rate shown is the effective yield at the time of purchase. (f) Security purchased on a when-issued basis. On March 31, 2004, the total cost of investments purchased on a when-issued basis was $5,000,000. See note 2 in Notes to Financial Statements. (g) Investment in affiliated security. 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 March 31, 2004, the aggregate market value of securities subject to the AMT was $46,202,768, which represents 10.4% 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 GO - General Obligation GTY - Guaranty MBIA - Municipal Bond Insurance Association PSFG - Permanent School Fund Guarantee PUFG - Permanent University Fund Guarantee RAAI - Radian Asset Assurance Inc. RB - Revenue Bond STAID - State Aid Withholding XLCA - XL Capital Assurance Inc. TAX FREE FUND
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------ MUNICIPAL BONDS - 97.4% ALABAMA - 0.9% Bessemer, Callable 07/01/06 @ 102 (AMBAC) (RB) 5.750%, 07/01/16 $ 2,500 $ 2,752 Camden Industrial Development Board, Series A, Callable 12/01/13 @ 100 (RB) 6.125%, 12/01/24 1,000 1,080 Camden Industrial Development Board, Series B, Callable 12/01/13 @ 100 (AMT) (RB) 6.375%, 12/01/24 350 379 --------------- 4,211 --------------- ALASKA - 1.9% Alaska Energy Authority, Bradley Lake, Third Series (FSA) (RB) 6.000%, 07/01/10 1,000 1,179 6.000%, 07/01/11 4,040 4,798 Alaska State Housing Finance Corporation, Series A, Callable 12/01/05 @ 105 (MBIA) (RB) 5.700%, 12/01/11 505 528 Alaska State Housing Finance Corporation, Series A, Callable 06/01/07 @ 102 (MBIA) (RB) 5.900%, 12/01/19 1,000 1,049 Anchorage, Series B, Callable 07/01/12 @ 100 (GO) (MBIA) 5.000%, 07/01/22 2,000 2,102 --------------- 9,656 --------------- ARIZONA - 1.5% Arizona Health Facilities Authority, The Terraces Project, Series A, Callable 11/15/13 @ 101 (RB) 7.500%, 11/15/23 3,000 3,040 Arizona State Transportation Board, Callable 07/01/09 @ 100 (RB) 6.000%, 07/01/12 3,830 4,430 --------------- 7,470 --------------- CALIFORNIA - 6.0% California State, Callable 04/01/09 @ 101 (GO) 4.750%, 04/01/22 500 498 California State, Callable 02/01/13 @ 100 (GO) 5.000%, 02/01/21 5,500 5,622 California State, Callable 02/01/14 @ 100 (GO) 5.000%, 02/01/33 2,000 2,000 California State Department of Water, Series A, Callable 05/01/12 @ 101 (RB) 5.375%, 05/01/22 4,500 4,750 California Statewide Communities Development Authority, Los Angeles Jewish Home, Callable 11/01/13 @ 100 (CMI) (RB) 5.250%, 11/15/23 4,000 4,094 Chula Vista Industrial Development, San Diego Gas & Electric Co., Series A (AMT) (RB) 4.900%, 03/01/23 (a) 2,500 2,473 Golden State Tobacco Securitization, Series B, Callable 06/01/13 @ 100 (RB) 5.500%, 06/01/33 6,940 7,059 Vernon, Malburg Generating Station Project, Callable 04/01/08 @ 100 (RB) 5.500%, 04/01/33 3,000 3,058 --------------- 29,554 ---------------
48
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------ COLORADO - 3.5% Colorado State Educational & Cultural Facilities Authority, Classical Academy Charter School Project, Pre-refunded 12/01/11 @ 100 (RB) 7.250%, 12/01/21 (b) $ 1,500 $ 1,902 Colorado State Health Facilities Authority, Covenant Retirement Communities, Series B, Callable 12/01/12 @ 101 (RB) 6.125%, 12/01/33 1,150 1,195 Colorado State Health Facilities Authority, Evangelical Lutheran Health Facilities, Callable 10/01/12 @ 100 (RB) 5.900%, 10/01/27 2,500 2,604 Colorado State Health Facilities Authority, Parkview Medical Center, Callable 09/01/11 @ 100 (RB) 6.500%, 09/01/20 1,000 1,095 Colorado State Health Facilities Authority, Vail Valley Medical Center, Callable 01/15/12 @ 100 (RB) 5.800%, 01/15/27 1,500 1,553 The E-470 Public Highway Authority, Series B, Zero Coupon Bond (MBIA) (RB) 5.470%, 09/01/32 (c) 15,000 3,421 La Junta Hospital, Arkansas Valley Medical Center Project, Callable 04/01/09 @ 101 (RB) 6.000%, 04/01/19 1,000 1,031 Montrose Memorial Hospital, Callable 12/01/13 @ 102 (RB) 6.000%, 12/01/28 1,000 1,018 6.000%, 12/01/33 1,000 1,011 Northwest Parkway Public Highway Authority, Zero Coupon Bond (AMBAC) (RB) 6.290%, 06/15/29 (c) 10,000 2,378 --------------- 17,208 --------------- FLORIDA - 3.0% Capital Trust Agency, American Opportunity, Senior A, Callable 06/01/11 @ 102 (RB) 5.750%, 06/01/23 1,000 969 Capital Trust Agency, Fort Lauderdale Project, Callable 01/01/14 @ 101 (AMT) (RB) 5.750%, 01/01/32 1,000 954 Florida State Department of Transportation, Callable 07/01/06 @ 101 (GO) 5.250%, 07/01/17 5,525 5,942 Florida State Department of Transportation, Alligator Alley, Callable 07/01/07 @ 101 (FGIC) (RB) 5.125%, 07/01/13 1,280 1,408 Palm Beach County, Park & Recreational Facilities, Callable 11/01/06 @ 102 (FSA) (RB) 5.250%, 11/01/16 5,000 5,475 --------------- 14,748 --------------- GEORGIA - 2.8% Fulton County Residential Care Facilities, Canterbury Court Project, Series A, Callable 02/15/14 @ 101 (RB) 6.125%, 02/15/26 1,500 1,479 6.125%, 02/15/34 2,500 2,419 Gainesville & Hall County Hospital Authority, Northeast Georgia Health Systems Inc. Project, Callable 05/15/11 @ 100 (RB) 5.500%, 05/15/31 5,000 5,180 Georgia Municipal Electric Authority Power, Series BB (MBIA) (RB) 5.250%, 01/01/25 $ 1,000 $ 1,109 Georgia State, Series C (GO) 5.750%, 09/01/09 3,190 3,725 --------------- 13,912 --------------- HAWAII - 1.8% Hawaii State, Series CN, Callable 03/01/07 @ 102 (FGIC) (GO) 5.500%, 03/01/14 8,000 8,896 --------------- ILLINOIS - 12.5% Bolingbrook, Residential Mortgages, Escrowed to Maturity (FGIC) (RB) 7.500%, 08/01/10 (d) 1,080 1,266 Chicago Metropolitan Water Reclamation District, Capital Improvement, Escrowed to Maturity (GO) 5.500%, 12/01/10 (d) 2,000 2,319 Cook County, Series A (GO) (MBIA) 6.250%, 11/15/12 9,090 11,037 Cook County Community School District #97, Oak Park, Series B (FGIC) (GO) 9.000%, 12/01/11 2,235 3,117 Illinois Development Finance Authority, Adventist Health System, Callable 11/15/09 @ 101 (RB) 5.500%, 11/15/29 5,000 5,122 Illinois Health Facilities Authority, Condell Medical Center, Callable 05/15/12 @ 100 (RB) 5.500%, 05/15/32 2,500 2,548 Illinois Health Facilities Authority, Covenant Retirement Communities, Callable 12/01/11 @ 101 (RB) 5.875%, 12/01/31 4,500 4,473 Illinois Health Facilities Authority, Covenant Retirement Communities, Series A, Callable 12/01/12 @ 100 (RAAI) (RB) 5.500%, 12/01/22 4,000 4,278 Illinois Health Facilities Authority, Lutheran Senior Ministries, Series A, Callable 08/15/11 @ 101 (RB) 7.375%, 08/15/31 3,000 3,018 Illinois State, Pre-refunded 02/01/05 @ 102 (GO) (MBIA) 6.100%, 02/01/17 (b) 2,225 2,362 Illinois State, Pre-refunded 05/01/06 @ 102 (GO) (MBIA) 5.750%, 05/01/21 (b) 1,410 1,536 Illinois State, Pre-refunded 02/01/07 @ 101 (FGIC) (GO) 5.250%, 02/01/13 (b) 1,400 1,531 Illinois State Development Finance Authority, Pollution Control, Series A, Pre-refunded 07/01/06 @ 102 (RB) 7.375%, 07/01/21 (b) 500 569 Illinois State Development Finance Authority, Waste Management Project (AMT) (RB) 5.850%, 02/01/07 1,000 1,085 Illinois State Educational Facilities Authority, Augustana College, Callable 10/01/07 @ 100 (CLE) (RB) 5.875%, 10/01/17 500 567
49
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------ Illinois State Educational Facilities Authority, Augustana College, Callable 10/01/08 @ 100 (RB) 5.250%, 10/01/18 $ 1,000 $ 1,120 Illinois State Toll Highway Authority, Series A (RB) 6.300%, 01/01/12 1,000 1,201 McHenry County, Community Unit School District #200, Woodstock, Series A, Pre-refunded 01/01/08 @ 100 (FSA) (GO) 5.850%, 01/01/16 (b) 2,400 2,679 Metropolitan Pier & Exposition Authority, McCormick Place, Illinois Dedicated State Tax, Class B, Zero Coupon Bond (MBIA) (RB) 5.650%, 06/15/22 (c) 5,000 2,770 Northern Illinois University, Auxiliary Facilities Systems, Partially Pre-refunded 04/01/07 @ 100 (FGIC) (RB) 5.700%, 04/01/16 (b) 1,000 1,095 Rock Island, Friendship Manor Project (RB) 7.000%, 06/01/06 710 709 Rock Island, Friendship Manor Project, Callable 04/01/04 @ 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 1,267 Southern Illinois University, Housing & Auxiliary, Zero Coupon Bond, Series A (MBIA) (RB) 5.500%, 04/01/20 (c) 2,280 1,049 Springfield Electric, Callable 03/01/11 @ 101 (RB) 5.500%, 03/01/15 2,000 2,246 St. Clair County, Callable 10/01/09 @ 102 (FGIC) (GO) 6.000%, 10/01/11 2,020 2,374 --------------- 61,739 --------------- INDIANA - 2.7% Crown Point, Multi-School Building Corporation, First Mortgage (MBIA) (RB) 7.875%, 01/15/06 2,630 2,920 Indiana State Educational Facilities Authority, St. Joseph's College Project, Callable 10/01/09 @ 102 (RB) 7.000%, 10/01/29 1,000 1,063 Indiana State Municipal Power Agency, Power Supply, Series B (MBIA) (RB) 6.000%, 01/01/11 1,000 1,178 6.000%, 01/01/12 1,000 1,184 Indiana Transportation Finance Authority, Series A (AMBAC) (MLO) (RB) 5.000%, 11/01/07 2,000 2,206 Indiana Transportation Finance Authority, Series A (AMBAC) (RB) 5.750%, 06/01/12 3,185 3,746 Lake County Redevelopment Authority, Callable 02/01/05 @ 102 (MBIA) (MLO) (RB) 6.500%, 02/01/16 800 849 --------------- 13,146 --------------- 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 $ 1,574 Muscatine Electric, Escrowed to Maturity, Callable 07/01/04 @ 100 (RB) 6.700%, 01/01/13 (d) 1,000 1,175 --------------- 2,749 --------------- 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 2,255 Jefferson Parish, Drain Sales Tax (AMBAC) (RB) 5.000%, 11/01/11 1,000 1,131 Jefferson Parish, Home Mortgage Authority, Escrowed to Maturity, Callable 08/01/04 @ 100 (FGIC) (FHA) (RB) 7.100%, 08/01/11 (d) 1,000 1,250 Lafayette, Public Improvement Sales Tax, Series B (FGIC) (RB) 7.000%, 03/01/08 1,000 1,177 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 1,665 --------------- 7,478 --------------- MASSACHUSETTS - 2.3% Boston Industrial Development Financing Authority, Crosstown Center Project, Callable 09/01/12 @ 102 (AMT) (RB) 6.500%, 09/01/35 2,500 2,499 Massachusetts Bay Transportation Authority, Series A, Callable 03/01/07 @ 101 (FGIC) (RB) 5.000%, 03/01/12 5,795 6,362 Massachusetts Bay Transportation Authority, Series A, Callable 03/01/09 @ 101 (FGIC) (RB) 5.750%, 03/01/21 2,000 2,323 --------------- 11,184 --------------- MICHIGAN - 1.7% Haslett Public School District, Pre-refunded 05/01/07 @ 100 (GO) (MBIA) 5.700%, 05/01/16 (b) 1,200 1,340 Lanse Creuse, Public Schools, Callable 05/01/07 @ 100 (AMBAC) (GO) 5.250%, 05/01/16 1,000 1,080 Thornapple Kellogg School Building & Site, Callable 11/01/12 @ 100 (GO) (MQSBLF) 5.500%, 05/01/14 1,485 1,696 5.500%, 05/01/16 1,810 2,048 Ypsilanti School District, Pre-refunded 05/01/07 @ 100 (FGIC) (GO) 5.600%, 05/01/12 (b) 2,000 2,227 --------------- 8,391 --------------- MINNESOTA - 5.9% Cuyuna Range Hospital District, Series A, Callable 06/01/07 @ 102 (RB) 6.000%, 06/01/29 650 626
50
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------ Edina Independent School District No. 273, Callable 02/01/13 @ 100 (GO) (MBIA) 4.000%, 02/01/16 $ 1,000 $ 1,016 Edina Independent School District No. 273, Callable 02/01/13 @ 100 (GO) 4.000%, 02/01/17 2,000 2,010 Fergus Falls Health Care Facilities Authority, Series A, Callable 11/01/04 @ 102 (RB) 7.000%, 11/01/19 150 149 Glencoe Hospital Board, Pre-refunded 08/01/04 @ 102 (RB) 6.750%, 04/01/16 (b) 485 503 Minneapolis Healthcare System, Fairview Health Services, Series A, Callable 05/15/12 @ 101 (RB) 5.625%, 05/15/32 7,000 7,411 Minnesota Agriculture & Economic Development Board, Health Care System, Series A, Callable 11/15/10 @ 101 (RB) 6.375%, 11/15/29 3,000 3,291 Minnesota State, Callable 08/01/07 @ 100 (GO) 4.900%, 08/01/14 4,000 4,343 Minnesota State Housing Finance Agency, Single Family Housing (AMT) (RB) 4.400%, 07/01/07 1,835 1,960 Minnetonka Independent School District No. 276, Series B, Callable 02/15/14 @ 100 (GO) (MSDCEP) 4.000%, 02/01/19 1,820 1,798 4.000%, 02/01/20 1,880 1,837 Monticello, Big Lake Community Hospital, Series C, Callable 12/01/12 @ 100 (RB) 6.200%, 12/01/22 2,995 3,141 St. Anthony Housing & Redevelopment Authority, Callable 05/20/06 @ 102 (FHA) (GNMA) (RB) 6.250%, 11/20/25 1,000 1,099 --------------- 29,184 --------------- MISSOURI - 0.7% Cape Girardeau County Authority, Southeast Missouri Hospital, Callable 06/01/12 @ 100 (RB) 5.750%, 06/01/32 2,500 2,605 Sugar Creek, Lafarge North America, Series A, Callable 06/01/13 @ 101 (AMT) (RB) 5.650%, 06/01/37 1,000 1,014 --------------- 3,619 --------------- NEBRASKA - 1.0% Hastings Electrical Systems, Callable 05/01/11 @ 100 (FSA) (RB) 5.000%, 01/01/15 1,000 1,088 Lancaster County, Hospital Authority, Callable 06/01/11 @ 100 (AMBAC) (RB) 5.125%, 06/01/26 1,000 1,038 Nebraska Educational Finance Authority, Concordia University Project, Callable 12/15/08 @ 100 (RB) 5.250%, 12/15/15 500 518 5.350%, 12/15/18 540 556 Washington County Wastewater Facilities, Cargill Inc. Project, Callable 11/01/12 @ 101 (RB) 5.900%, 11/01/27 1,700 1,834 --------------- 5,034 --------------- NEVADA - 1.0% Carson City, Carson-Tahoe Hospital Project, Callable 09/01/12 @ 101 (RB) 5.750%, 09/01/31 $ 5,000 $ 5,022 --------------- NEW JERSEY - 2.3% Camden County, Municipal Utilities Authority, Series C, Callable 07/15/08 @ 101 (FGIC) (GO) 5.100%, 07/15/12 5,000 5,544 New Jersey Health Care Facilities, Capital Health System, Series A, Callable 07/01/13 @ 100 (RB) 5.375%, 07/01/33 3,095 3,123 New Jersey State Transportation System, Series A, Callable 06/15/08 @ 100 (RB) 5.000%, 06/15/14 2,500 2,732 --------------- 11,399 --------------- NEW YORK - 3.4% New York, Series C, Callable 03/15/12 @ 100 (GO) 5.250%, 03/15/32 3,590 3,749 New York, Series C, Pre-refunded 03/15/12 @ 100 (GO) 5.250%, 03/15/32 (b) 6,410 7,325 New York State Thruway Authority, Series A, Callable 04/01/07 @ 102 (AMBAC) (RB) 5.250%, 04/01/14 5,000 5,528 --------------- 16,602 --------------- 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 2,187 --------------- OHIO - 2.6% Cincinnati Water System, Callable 06/01/11 @ 100 (RB) 5.000%, 12/01/20 125 132 Cleveland Waterworks, Series H, Pre-refunded 01/01/06 @ 102 (MBIA) (RB) 5.750%, 01/01/16 (b) 1,460 1,595 Greater Cleveland Regional Transportation Authority, Pre-refunded 12/01/06 @ 101 (FGIC) (GO) 5.650%, 12/01/16 (b) 2,500 2,784 Lucas County Port Authority, Crocker Park Public Improvement Project, Callable 12/01/13 @ 102 (RB) 5.250%, 12/01/23 2,000 2,037 Ohio State Building Authority, Administration Building Fund, Series A, Pre-refunded 10/01/04 @ 102 (MBIA) (MLO) (RB) 6.000%, 10/01/08 (b) 1,000 1,045 6.000%, 10/01/09 (b) 1,225 1,280 Ohio State Higher Education, Series A, Callable 02/01/11 @ 100 (GO) 5.000%, 02/01/19 1,095 1,162 Ohio State Higher Education, Series B, Callable 11/01/11 @ 100 (GO) 5.000%, 11/01/16 1,500 1,632 Ohio State Water Development Authority, Callable 06/01/05 @ 101 (MBIA) (RB) 5.250%, 12/01/09 1,000 1,057 --------------- 12,724 ---------------
51
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------ OREGON - 1.4% Washington County Unified Sewer Agency, Series 1 (FGIC) (RB) 5.750%, 10/01/10 $ 6,110 $ 7,167 --------------- PENNSYLVANIA - 1.8% Bucks County Water & Sewer Authority, Callable 12/01/06 @ 100 (FGIC) (RB) 5.550%, 12/01/17 1,000 1,088 Chester Upland School Authority, Series A, Callable 09/01/07 @ 100 (FSA) (RB) 5.250%, 09/01/17 2,000 2,170 Pennsylvania State, Callable 03/15/07 @ 101.50 (AMBAC) (GO) 5.125%, 09/15/11 5,000 5,490 --------------- 8,748 --------------- PUERTO RICO - 0.1% Puerto Rico Public Improvements, Callable 07/01/10 @ 100 (GO) (MBIA) 5.750%, 07/01/26 500 586 --------------- RHODE ISLAND - 1.1% Rhode Island State, Series A, Callable 08/01/07 @ 101 (GO) (MBIA) 5.125%, 08/01/12 5,055 5,634 --------------- 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 2,118 South Carolina Jobs Economic Development Authority, Palmetto Health Alliance, Series A, Callable 08/01/13 @ 100 (RB) 6.125%, 08/01/23 1,250 1,319 South Carolina Jobs Economic Development Authority, Palmetto Health Alliance, Series C, Callable 08/01/13 @ 100 (RB) 6.375%, 08/01/34 1,250 1,328 --------------- 4,765 --------------- SOUTH DAKOTA - 1.2% Deadwood, Callable 11/01/12 @ 100 (ACA) (COP) 4.750%, 11/01/17 1,500 1,540 Sioux Falls, Dow Rummel Village Project, Series A, Callable 11/15/12 @ 100 (RB) 6.625%, 11/15/23 2,200 2,232 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 1,083 South Dakota State Health & Educational Facilities Authority, Callable 07/01/06 @ 102 (MBIA) (RB) 6.000%, 07/01/14 1,000 1,105 --------------- 5,960 --------------- TENNESSEE - 2.4% Johnson City Health & Educational Facilities Authority, Series A, Callable 07/01/12 @ 103 (RB) 7.500%, 07/01/33 2,500 2,878 Shelby County Health, Educational & Housing Facilities Board, Methodist Healthcare, Callable 09/01/12 @ 100 (RB) 6.500%, 09/01/21 (e) $ 3,000 $ 3,367 Sullivan County Health, Educational & Housing Facilities Board, Wellmont Health Systems Project, Callable 09/01/12 @ 101 (RB) 6.250%, 09/01/32 5,500 5,797 --------------- 12,042 --------------- TEXAS - 15.5% Abilene Health Facilities Development, Sears Methodist Retirement Project, Callable 05/15/09 @ 101 (RB) 5.875%, 11/15/18 500 503 6.000%, 11/15/29 2,000 1,944 Abilene Health Facilities Development, Sears Methodist Retirement Project, Series A, Callable 11/15/08 @ 101 (RB) 5.875%, 11/15/18 2,500 2,512 Abilene Health Facilities Development, Sears Methodist Retirement Project, Series A, Callable 11/15/13 @ 101 (RB) 7.000%, 11/15/33 4,000 4,205 Bexar County Housing Finance Authority, American Opportunity Housing, Series A, Callable 01/01/11 @ 102 (MBIA) (RB) 5.800%, 01/01/31 2,000 2,113 Brazos River Authority, Callable 04/01/13 @ 101 (AMT) (RB) 7.700%, 04/01/33 2,500 2,852 Brazos River Harbor District, Dow Chemical, Series A-5, Mandatory Put 05/15/12 @ 100 (AMT) (RB) 5.700%, 05/15/33 2,500 2,846 Crawford Education Facilities Corp., University of St. Thomas Project, Callable 10/01/12 @ 100 (RB) 5.250%, 10/01/22 1,300 1,318 5.375%, 10/01/27 1,750 1,772 Cypress-Fairbanks Independent School District, Callable 02/15/10 @ 100 (GO) (PSFG) (STAID) 5.500%, 02/15/18 5,000 5,566 Fort Bend Independent School District, Pre-refunded 02/15/05 @ 100 (GO) (PSFG) 5.000%, 02/15/14 (b) 500 563 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 8,721 Laredo Independent School District (GO) (PSFG) 6.750%, 08/01/09 2,290 2,752 Nueces County Housing Financial Corporation, Dolphins Landing Apartments Project, Series A, Callable 07/01/10 @ 102 (RB) 6.875%, 07/01/30 1,860 1,865 Red River Authority Sewer & Solidwaste Disposal, Callable 02/01/12 @ 101 (AMT) (RB) 6.100%, 02/01/22 3,775 3,911 Remington Municipal Utility District #1, Series A, Callable 09/01/08 @ 100 (GO) (RAAI) 5.800%, 09/01/25 1,000 1,066
52
DESCRIPTION PAR (000) VALUE (000) - ------------------------------------------------------------------------------------------------ Sam Rayburn Municipal Power Agency, Callable 10/01/12 @ 100 (RAAI) (RB) 5.750%, 10/01/21 $ 3,800 $ 4,161 San Antonio Independent School District, Callable 08/15/08 @ 100 (GO) (PSFG) 5.125%, 08/15/14 6,000 6,611 Spring Branch Independent School District, Callable 02/01/10 @ 100 (GO) (PSFG) 5.750%, 02/01/25 2,400 2,691 Tarrant County Housing Financial Corporation, Multifamily Housing, Fair Oaks, Callable 07/01/10 @ 102 (RB) 6.750%, 07/01/20 500 265 6.875%, 07/01/30 1,000 530 Texas Employment Community, Callable 07/15/04 @ 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 Texas State, Water Development, Callable 08/01/06 @ 100 (GO) 5.400%, 08/01/21 6,750 7,194 Texas Water Development Board, Series A, Callable 07/15/06 @ 100 (RB) 5.500%, 07/15/10 2,500 2,704 University of Texas Permanent University Fund, Callable 07/01/08 @ 100 (PUFG) (RB) 5.000%, 07/01/14 7,060 7,852 --------------- 76,934 --------------- UTAH - 0.2% Intermountain Power Agency, Utah Power Supply, Series A (AMBAC) (RB) 6.500%, 07/01/11 365 445 Intermountain Power Agency, Utah Power Supply, Series A, Escrowed to Maturity (AMBAC) (RB) 6.500%, 07/01/11 (d) 635 777 --------------- 1,222 --------------- 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 1,091 --------------- WASHINGTON - 7.1% 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 4,212 Energy Northwest, Washington Wind Project, Callable 01/01/07 @ 103 (RB) 5.600%, 07/01/15 4,640 4,831 King County, Series F, Callable 12/01/07 @ 100 (GO) 5.125%, 12/01/14 $ 5,000 $ 5,489 King County School District #415, Callable 12/01/07 @ 100 (GO) (MBIA) 5.350%, 12/01/16 4,050 4,431 Snohomish County Public Utilities District #1, Escrowed to Maturity, Callable 04/01/04 @ 100 (RB) 6.750%, 01/01/12 (d) 1,000 1,191 Washington State, Series C, Callable 01/01/07 @ 100 (GO) 5.500%, 01/01/17 4,190 4,525 Washington State Motor Vehicle Fuel Tax, Series D, Callable 01/01/07 @ 100 (FGIC) (GO) 5.375%, 01/01/22 8,000 8,528 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 1,099 Washington State Public Power Supply System, Nuclear Project #3, Series B (RB) 7.125%, 07/01/16 600 778 --------------- 35,084 --------------- WISCONSIN - 4.8% Amery, Apple River Hospital Project, Callable 06/01/08 @ 100 (RB) 5.700%, 06/01/13 1,440 1,475 Wisconsin State, Series C, Pre-refunded 05/01/07 @ 100 (FGIC) (GO) 5.500%, 05/01/10 (b) 2,095 2,326 Wisconsin State Health & Educational Facilities Authority, Attic Angel Obligation Group, Callable 11/15/08 @ 102 (RB) 5.750%, 11/15/27 1,000 906 Wisconsin State Health & Educational Facilities Authority, Beloit Memorial Hospital, Callable 04/01/04 @ 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 1,081 Wisconsin State Health & Educational Facilities Authority, Marshfield Clinic, Series B, Callable 02/15/12 @ 100 (RB) 6.000%, 02/15/25 3,500 3,619 Wisconsin State Health & Educational Facilities Authority, Meriter Hospital Inc., Callable 12/01/06 @ 102 (MBIA) (RB) 6.000%, 12/01/17 2,000 2,224 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 2,042 Wisconsin State Health & Educational Facilities Authority, Southwest Health Center, Series A, Callable 04/01/14 @ 100 (RB) 6.250%, 04/01/34 (f) 2,000 1,958 Wisconsin State Health & Educational Facilities Authority, Synergy Health Inc., Callable 08/15/13 @ 100 (RB) 6.000%, 11/15/23 1,500 1,567
53
DESCRIPTION PAR (000)/SHARES VALUE (000) - ------------------------------------------------------------------------------------------------ Wisconsin State Health & Educational Facilities Authority, Wheaton Franciscan Services, Callable 02/15/12 @ 100 (RB) 5.750%, 08/15/30 $ 5,500 $ 5,837 --------------- 23,602 --------------- 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 2,149 6.750%, 12/01/27 1,500 1,522 --------------- 3,671 --------------- TOTAL MUNICIPAL BONDS (Cost $445,207) 482,619 --------------- AFFILIATED MONEY MARKET FUND - 1.8% First American Tax Free Obligations Fund, Cl Z (g) 9,008,852 9,009 --------------- TOTAL AFFILIATED MONEY MARKET FUND (Cost $9,009) 9,009 --------------- TOTAL INVESTMENTS - 99.2% (Cost $454,216) 491,628 --------------- OTHER ASSETS AND LIABILITIES, NET - 0.8% 3,734 --------------- TOTAL NET ASSETS - 100.0% $ 495,362 ---------------
(a) Variable Rate Security - The rate shown is the rate in effect as of March 31, 2004. (b) Pre-refunded issues are usually 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) Escrowed to Maturity issues are usually backed by U.S. Government obligations. If callable, these bonds may still be subject to call at the call date and price indicated. (e) 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. See note 2 in Notes to Financial Statements. (f) Security purchased on a when-issued basis. On March 31, 2004, the total cost of investments purchased on a when-issued basis was $1,981,260. See note 2 in Notes to Financial Statements. (g) Investment in affiliated security. 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 AMBAC - American Municipal Bond Assurance Corporation AMT - Alternative Minimum Tax. As of March 31, 2004, the aggregate market value of securities subject to the AMT was $27,626,202, which represents 5.6% of net assets. Cl - Class CLE - Connie Lee Insurance Company CMI - California Mortgage Insurance Program 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 MSDCEP - Minnesota School District Credit Enhancement Program PSFG - Permanent School Fund Guarantee PUFG - Permanent University Fund Guarantee RAAI - Radian Asset Assurance Inc. RB - Revenue Bond STAID - State Aid Withholding The accompanying notes are an integral part of the financial statements. 54 (This page has been left blank intentionally.) STATEMENTS OF ASSETS AND LIABILITIES March 31, 2004 (unaudited), in thousands, except per share data
CALIFORNIA COLORADO ARIZONA INTERMEDIATE CALIFORNIA INTERMEDIATE COLORADO TAX FREE FUND TAX FREE FUND TAX FREE FUND TAX FREE FUND TAX FREE FUND - ----------------------------------------------------------------------------------------------------------------------------- ASSETS: Investments in unaffiliated securities, at value* $ 21,185 $ 49,673 $ 27,849 $ 60,194 $ 25,519 Investments in affiliated money market fund, at value** -- -- -- 377 186 Dividends and interest receivable 264 562 325 824 343 Receivable for investment securities sold -- -- -- 340 -- Receivable for capital shares sold -- -- 1 98 -- Prepaid expenses and other assets 7 6 6 5 6 - ----------------------------------------------------------------------------------------------------------------------------- TOTAL ASSETS 21,456 50,241 28,181 61,838 26,054 ============================================================================================================================= LIABILITIES: Payable for investment securities purchased -- -- -- -- -- Payable for capital shares redeemed -- 10 10 1,005 13 Payable for advisory, co-administration, and custodian fees 8 30 11 39 11 Payable for distribution and shareholder servicing fees 2 1 1 2 5 Accrued expenses and other liabilities -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- TOTAL LIABILITIES 10 41 22 1,046 29 ============================================================================================================================= NET ASSETS $ 21,446 $ 50,200 $ 28,159 $ 60,792 $ 26,025 ============================================================================================================================= COMPOSITION OF NET ASSETS: Portfolio capital $ 19,243 $ 46,415 $ 25,893 $ 55,785 $ 23,205 Undistributed net investment income 44 35 21 92 67 Accumulated net realized gain (loss) on investments 111 182 54 (90) 44 Net unrealized appreciation of investments 2,048 3,568 2,191 5,005 2,709 - ----------------------------------------------------------------------------------------------------------------------------- NET ASSETS $ 21,446 $ 50,200 $ 28,159 $ 60,792 $ 26,025 ============================================================================================================================= Investments in unaffiliated securities, at cost* $ 19,137 $ 46,105 $ 25,658 $ 55,189 $ 22,810 Investments in affiliated money market fund, at cost** $ -- $ -- $ -- $ 377 $ 186 CLASS A: Net assets $ 10,037 $ 4,286 $ 10,653 $ 16,567 $ 12,599 Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 872 403 933 1,492 1,087 Net asset value and redemption price per share $ 11.50 $ 10.62 $ 11.41 $ 11.10 $ 11.59 Maximum offering price per share (1) $ 12.01 $ 10.86 $ 11.92 $ 11.36 $ 12.10 CLASS C: Net assets $ 1,655 -- $ 990 -- $ 3,776 Shares issued and outstanding ($0.0001 par value-- 2 billion authorized) 144 -- 87 -- 326 Net asset value, offering price, and redemption price per share (2) $ 11.49 -- $ 11.43 -- $ 11.57 CLASS Y: Net assets $ 9,754 $ 45,914 $ 16,516 $ 44,225 $ 9,650 Shares issued and outstanding ($0.0001 par value-- 2 billion authorized) 848 4,316 1,447 3,993 832 Net asset value, offering price, and redemption price per share $ 11.51 $ 10.64 $ 11.42 $ 11.08 $ 11.61 - -----------------------------------------------------------------------------------------------------------------------------
(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. 56
MINNESOTA INTERMEDIATE INTERMEDIATE MINNESOTA MISSOURI NEBRASKA TAX FREE FUND TAX FREE FUND TAX FREE FUND TAX FREE FUND TAX FREE FUND - ----------------------------------------------------------------------------------------------------------------------------- ASSETS: Investments in unaffiliated securities, at value* $ 713,178 $ 267,817 $ 178,949 $ 188,641 $ 35,891 Investments in affiliated money market fund, at value** 2,589 -- -- 1,867 455 Dividends and interest receivable 9,169 2,889 2,323 2,375 465 Receivable for investment securities sold -- -- -- -- -- Receivable for capital shares sold 369 476 69 6 75 Prepaid expenses and other assets 11 7 8 7 7 - ----------------------------------------------------------------------------------------------------------------------------- TOTAL ASSETS 725,316 271,189 181,349 192,896 36,893 ============================================================================================================================= LIABILITIES: Payable for investment securities purchased 1,496 -- -- 1,338 489 Payable for capital shares redeemed 1,032 189 36 451 -- Payable for advisory, co-administration, and custodian fees 449 165 111 118 15 Payable for distribution and shareholder servicing fees 5 4 27 6 2 Accrued expenses and other liabilities 3 -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- TOTAL LIABILITIES 2,985 358 174 1,913 506 ============================================================================================================================= NET ASSETS $ 722,331 $ 270,831 $ 181,175 $ 190,983 $ 36,387 ============================================================================================================================= COMPOSITION OF NET ASSETS: Portfolio capital $ 662,132 $ 252,925 $ 168,697 $ 177,670 $ 34,243 Undistributed net investment income 846 27 252 108 57 Accumulated net realized gain (loss) on investments 822 207 883 251 17 Net unrealized appreciation of investments 58,531 17,672 11,343 12,954 2,070 - ----------------------------------------------------------------------------------------------------------------------------- NET ASSETS $ 722,331 $ 270,831 $ 181,175 $ 190,983 $ 36,387 ============================================================================================================================= Investments in unaffiliated securities, at cost* $ 654,647 $ 250,145 $ 167,606 $ 175,687 $ 33,821 Investments in affiliated money market fund, at cost** $ 2,589 $ -- $ -- $ 1,867 $ 455 CLASS A: Net assets $ 36,221 $ 34,565 $ 123,034 $ 27,932 $ 4,621 Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 3,204 3,315 10,824 2,251 431 Net asset value and redemption price per share $ 11.31 $ 10.43 $ 11.37 $ 12.41 $ 10.71 Maximum offering price per share (1) $ 11.57 $ 10.67 $ 11.87 $ 12.96 $ 11.19 CLASS C: Net assets -- -- $ 11,801 $ 255 $ 1,782 Shares issued and outstanding ($0.0001 par value-- 2 billion authorized) -- -- 1,042 21 168 Net asset value, offering price, and redemption price per share (2) -- -- $ 11.33 $ 12.38 $ 10.64 CLASS Y: Net assets $ 686,110 $ 236,266 $ 46,340 $ 162,796 $ 29,984 Shares issued and outstanding ($0.0001 par value-- 2 billion authorized) 60,783 22,759 4,081 13,117 2,800 Net asset value, offering price, and redemption price per share $ 11.29 $ 10.38 $ 11.35 $ 12.41 $ 10.71 - ----------------------------------------------------------------------------------------------------------------------------- OREGON OHIO INTERMEDIATE SHORT TAX FREE FUND TAX FREE FUND TAX FREE FUND TAX FREE FUND - ----------------------------------------------------------------------------------------------------------- ASSETS: Investments in unaffiliated securities, at value* $ 40,016 $ 147,083 $ 437,380 $ 482,619 Investments in affiliated money market fund, at value** -- 1,246 5,718 9,009 Dividends and interest receivable 616 2,037 5,514 6,886 Receivable for investment securities sold -- -- -- 249 Receivable for capital shares sold -- 10 289 128 Prepaid expenses and other assets 5 6 8 14 - ----------------------------------------------------------------------------------------------------------- TOTAL ASSETS 40,637 150,382 448,909 498,905 =========================================================================================================== LIABILITIES: Payable for investment securities purchased -- -- 5,000 2,229 Payable for capital shares redeemed -- 1,319 157 994 Payable for advisory, co-administration, and custodian fees 17 92 229 308 Payable for distribution and shareholder servicing fees -- 1 1 12 Accrued expenses and other liabilities -- -- -- -- - ----------------------------------------------------------------------------------------------------------- TOTAL LIABILITIES 17 1,412 5,387 3,543 =========================================================================================================== NET ASSETS $ 40,620 $ 148,970 $ 443,522 $ 495,362 =========================================================================================================== COMPOSITION OF NET ASSETS: Portfolio capital $ 38,747 $ 138,557 $ 432,622 $ 455,213 Undistributed net investment income 27 42 207 260 Accumulated net realized gain (loss) on investments 29 293 48 2,477 Net unrealized appreciation of investments 1,817 10,078 10,645 37,412 - ----------------------------------------------------------------------------------------------------------- NET ASSETS $ 40,620 $ 148,970 $ 443,522 $ 495,362 =========================================================================================================== Investments in unaffiliated securities, at cost* $ 38,199 $ 137,005 $ 426,735 $ 445,207 Investments in affiliated money market fund, at cost** $ -- $ 1,246 $ 5,718 $ 9,009 CLASS A: Net assets $ 1,359 $ 9,210 $ 6,957 $ 42,596 Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 129 886 691 3,774 Net asset value and redemption price per share $ 10.54 $ 10.39 $ 10.07 $ 11.29 Maximum offering price per share (1) $ 11.01 $ 10.63 $ 10.30 $ 11.79 CLASS C: Net assets $ 247 -- -- $ 3,165 Shares issued and outstanding ($0.0001 par value-- 2 billion authorized) 24 -- -- 282 Net asset value, offering price, and redemption price per share (2) $ 10.44 -- -- $ 11.24 CLASS Y: Net assets $ 39,014 $ 139,760 $ 436,565 $ 449,601 Shares issued and outstanding ($0.0001 par value-- 2 billion authorized) 3,699 13,444 43,366 39,797 Net asset value, offering price, and redemption price per share $ 10.55 $ 10.40 $ 10.07 $ 11.30 - -----------------------------------------------------------------------------------------------------------
57 STATEMENTS OF OPERATIONS For the six months ended March 31, 2004 (unaudited), in thousands
CALIFORNIA COLORADO ARIZONA INTERMEDIATE CALIFORNIA INTERMEDIATE COLORADO TAX FREE FUND TAX FREE FUND TAX FREE FUND TAX FREE FUND TAX FREE FUND - ----------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Interest from unaffiliated securities $ 539 $ 1,132 $ 662 $ 1,539 $ 653 Interest from affiliated money market fund -- -- -- 3 2 - ----------------------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT INCOME 539 1,132 662 1,542 655 ============================================================================================================================= EXPENSES: Investment advisory fees 56 122 70 161 67 Co-administration fees and expenses (including per account transfer agency fees) 33 68 40 92 38 Custodian fees 1 2 1 3 1 Directors' fees -- -- -- 1 -- Registration fees 5 3 3 3 3 Professional fees -- 1 -- 1 -- Printing -- 1 -- 1 -- Other -- 1 -- 1 1 Distribution and shareholder servicing fees - Class A 14 5 14 23 16 Distribution and shareholder servicing fees - Class C 9 -- 6 -- 20 - ----------------------------------------------------------------------------------------------------------------------------- TOTAL EXPENSES 118 203 134 286 146 ============================================================================================================================= Less: Fee waivers (43) (29) (47) (46) (50) - ----------------------------------------------------------------------------------------------------------------------------- TOTAL NET EXPENSES 75 174 87 240 96 ============================================================================================================================= INVESTMENT INCOME - NET 464 958 575 1,302 559 - ----------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS - NET: Net realized gain on investments 111 185 78 373 44 Net change in unrealized appreciation or depreciation of investments 327 (132) 187 (312) 186 - ----------------------------------------------------------------------------------------------------------------------------- NET GAIN (LOSS) ON INVESTMENTS 438 53 265 61 230 ============================================================================================================================= NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 902 $ 1,011 $ 840 $ 1,363 $ 789 =============================================================================================================================
The accompanying notes are an integral part of the financial statements. 58
MINNESOTA INTERMEDIATE INTERMEDIATE MINNESOTA MISSOURI NEBRASKA TAX FREE FUND TAX FREE FUND TAX FREE FUND TAX FREE FUND TAX FREE FUND - ----------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Interest from unaffiliated securities $ 17,321 $ 6,179 $ 4,366 $ 4,449 $ 806 Interest from affiliated money market fund 26 -- 7 6 3 - ----------------------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT INCOME 17,347 6,179 4,373 4,455 809 ============================================================================================================================= EXPENSES: Investment advisory fees 1,818 673 458 485 89 Co-administration fees and expenses (including per account transfer agency fees) 1,004 372 255 270 50 Custodian fees 36 13 9 10 2 Directors' fees 6 2 2 2 -- Registration fees 12 4 6 6 3 Professional fees 13 5 3 4 1 Printing 8 3 2 2 -- Other 12 5 3 3 1 Distribution and shareholder servicing fees - Class A 44 41 155 35 6 Distribution and shareholder servicing fees - Class C -- -- 60 1 9 - ----------------------------------------------------------------------------------------------------------------------------- TOTAL EXPENSES 2,953 1,118 953 818 161 ============================================================================================================================= Less: Fee waivers (382) (151) (117) (102) (60) - ----------------------------------------------------------------------------------------------------------------------------- TOTAL NET EXPENSES 2,571 967 836 716 101 ============================================================================================================================= INVESTMENT INCOME - NET 14,776 5,212 3,537 3,739 708 - ----------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS - NET: Net realized gain on investments 1,507 219 932 270 17 Net change in unrealized appreciation or depreciation of investments (330) (1) 1,060 774 276 - ----------------------------------------------------------------------------------------------------------------------------- NET GAIN (LOSS) ON INVESTMENTS 1,177 218 1,992 1,044 293 ============================================================================================================================= NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 15,953 $ 5,430 $ 5,529 $ 4,783 $ 1,001 ============================================================================================================================= OREGON OHIO INTERMEDIATE SHORT TAX FREE FUND TAX FREE FUND TAX FREE FUND TAX FREE FUND - ----------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Interest from unaffiliated securities $ 838 $ 3,324 $ 6,894 $ 12,686 Interest from affiliated money market fund -- 3 45 26 - ----------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT INCOME 838 3,327 6,939 12,712 =========================================================================================================== EXPENSES: Investment advisory fees 101 377 1,052 1,251 Co-administration fees and expenses (including per account transfer agency fees) 57 209 578 693 Custodian fees 2 8 21 25 Directors' fees -- 1 4 4 Registration fees 2 3 7 10 Professional fees 1 3 8 9 Printing 1 2 4 5 Other 1 3 7 9 Distribution and shareholder servicing fees - Class A 1 11 9 53 Distribution and shareholder servicing fees - Class C 1 -- -- 24 - ----------------------------------------------------------------------------------------------------------- TOTAL EXPENSES 167 617 1,690 2,083 =========================================================================================================== Less: Fee waivers (64) (81) (422) (263) - ----------------------------------------------------------------------------------------------------------- TOTAL NET EXPENSES 103 536 1,268 1,820 =========================================================================================================== INVESTMENT INCOME - NET 735 2,791 5,671 10,892 - ----------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS - NET: Net realized gain on investments 29 346 51 2,509 Net change in unrealized appreciation or depreciation of investments 298 296 (2,442) 2,637 - ----------------------------------------------------------------------------------------------------------- NET GAIN (LOSS) ON INVESTMENTS 327 642 (2,391) 5,146 =========================================================================================================== NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 1,062 $ 3,433 $ 3,280 $ 16,038 ===========================================================================================================
59 STATEMENTS OF CHANGES IN NET ASSETS in thousands
CALIFORNIA ARIZONA INTERMEDIATE TAX FREE FUND TAX FREE FUND - --------------------------------------------------------------------------------------- 10/1/03 10/1/02 10/1/03 10/1/02 TO TO TO TO 3/31/04 9/30/03 3/31/04 9/30/03 - --------------------------------------------------------------------------------------- (unaudited) (unaudited) OPERATIONS: Investment income - net $ 464 $ 1,098 $ 958 $ 1,989 Net realized gain on investments 111 99 185 161 Net change in unrealized appreciation or depreciation of investments 327 (262) (132) (843) - --------------------------------------------------------------------------------------- Net increase in net assets resulting from operations 902 935 1,011 1,307 - --------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Investment income - net: Class A (218) (551) (80) (174) Class C (30) (88) -- -- Class Y (205) (443) (879) (1,791) Net realized gain on investments: Class A (50) (32) (14) (10) Class C (8) (6) -- -- Class Y (41) (29) (141) (93) - --------------------------------------------------------------------------------------- Total distributions (552) (1,149) (1,114) (2,068) ======================================================================================= CAPITAL SHARE TRANSACTIONS (1): Class A: Proceeds from sales 1,230 5,152 735 1,412 Reinvestment of distributions 235 548 76 145 Payments for redemptions (3,521) (6,083) (778) (2,080) - --------------------------------------------------------------------------------------- Increase (decrease) in net assets from Class A transactions (2,056) (383) 33 (523) - --------------------------------------------------------------------------------------- Class C: Proceeds from sales -- 385 -- -- Reinvestment of distributions 27 90 -- -- Payments for redemptions (254) (1,494) -- -- - --------------------------------------------------------------------------------------- Increase (decrease) in net assets from Class C transactions (227) (1,019) -- -- - --------------------------------------------------------------------------------------- Class Y: Proceeds from sales 1,609 3,295 4,008 4,535 Reinvestment of distributions 18 37 28 42 Payments for redemptions (1,277) (4,666) (2,628) (4,513) Shares issued in connection with the acquisition of Common Trust Fund net assets -- -- -- -- - --------------------------------------------------------------------------------------- Increase (decrease) in net assets from Class Y transactions 350 (1,334) 1,408 64 - --------------------------------------------------------------------------------------- Increase (decrease) in net assets from capital share transactions (1,933) (2,736) 1,441 (459) - --------------------------------------------------------------------------------------- Total increase (decrease) in net assets (1,583) (2,950) 1,338 (1,220) NET ASSETS AT BEGINNING OF PERIOD 23,029 25,979 48,862 50,082 ======================================================================================= NET ASSETS AT END OF PERIOD $ 21,446 $ 23,029 $ 50,200 $ 48,862 ======================================================================================= UNDISTRIBUTED NET INVESTMENT INCOME AT END OF PERIOD $ 44 $ 33 $ 35 $ 36 =======================================================================================
(1) See note 4 in Notes to Financial Statements for additional information. The accompanying notes are an integral part of the financial statements. 60
COLORADO CALIFORNIA INTERMEDIATE COLORADO TAX FREE FUND TAX FREE FUND TAX FREE FUND - ----------------------------------------------------------------------------------------------------------------- 10/1/03 10/1/02 10/1/03 10/1/02 10/1/03 10/1/02 TO TO TO TO TO TO 3/31/04 9/30/03 3/31/04 9/30/03 3/31/04 9/30/03 - ----------------------------------------------------------------------------------------------------------------- (unaudited) (unaudited) (unaudited) OPERATIONS: Investment income - net $ 575 $ 1,164 $ 1,302 $ 2,801 $ 559 $ 1,276 Net realized gain on investments 78 186 373 9 44 224 Net change in unrealized appreciation or depreciation of investments 187 (540) (312) (128) 186 (518) - ----------------------------------------------------------------------------------------------------------------- Net increase in net assets resulting from operations 840 810 1,363 2,682 789 982 - ----------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Investment income - net: Class A (221) (492) (355) (879) (272) (673) Class C (21) (41) -- -- (78) (159) Class Y (345) (632) (918) (2,017) (216) (415) Net realized gain on investments: Class A (84) (76) -- -- (90) -- Class C (9) (7) -- -- (29) -- Class Y (117) (77) -- -- (68) -- - ----------------------------------------------------------------------------------------------------------------- Total distributions (797) (1,325) (1,273) (2,896) (753) (1,247) ================================================================================================================= CAPITAL SHARE TRANSACTIONS (1): Class A: Proceeds from sales 1,126 1,401 1,198 19,547 748 1,122 Reinvestment of distributions 251 481 247 681 330 625 Payments for redemptions (1,882) (3,414) (7,438) (12,878) (2,338) (7,321) - ----------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets from Class A transactions (505) (1,532) (5,993) 7,350 (1,260) (5,574) - ----------------------------------------------------------------------------------------------------------------- Class C: Proceeds from sales 202 153 -- -- 210 1,375 Reinvestment of distributions 27 47 -- -- 102 141 Payments for redemptions (345) (189) -- -- (824) (934) - ----------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets from Class C transactions (116) 11 -- -- (512) 582 - ----------------------------------------------------------------------------------------------------------------- Class Y: Proceeds from sales 2,145 7,475 1,087 10,796 797 1,670 Reinvestment of distributions 21 51 4 11 11 14 Payments for redemptions (916) (3,925) (4,805) (11,176) (690) (1,366) Shares issued in connection with the acquisition of Common Trust Fund net assets -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets from Class Y transactions 1,250 3,601 (3,714) (369) 118 318 - ----------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets from capital share transactions 629 2,080 (9,707) 6,981 (1,654) (4,674) - ----------------------------------------------------------------------------------------------------------------- Total increase (decrease) in net assets 672 1,565 (9,617) 6,767 (1,618) (4,939) NET ASSETS AT BEGINNING OF PERIOD 27,487 25,922 70,409 63,642 27,643 32,582 ================================================================================================================= NET ASSETS AT END OF PERIOD $ 28,159 $ 27,487 $ 60,792 $ 70,409 $ 26,025 $ 27,643 ================================================================================================================= UNDISTRIBUTED NET INVESTMENT INCOME AT END OF PERIOD $ 21 $ 33 $ 92 $ 63 $ 67 $ 74 ================================================================================================================= MINNESOTA INTERMEDIATE INTERMEDIATE TAX FREE FUND TAX FREE FUND - --------------------------------------------------------------------------------------- 10/1/03 10/1/02 10/1/03 10/1/02 TO TO TO TO 3/31/04 9/30/03 3/31/04 9/30/03 - --------------------------------------------------------------------------------------- (unaudited) (unaudited) OPERATIONS: Investment income - net $ 14,776 $ 29,232 $ 5,212 $ 10,730 Net realized gain on investments 1,507 1,153 219 584 Net change in unrealized appreciation or depreciation of investments (330) 2,929 (1) (1,539) - --------------------------------------------------------------------------------------- Net increase in net assets resulting from operations 15,953 33,314 5,430 9,775 - --------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Investment income - net: Class A (683) (1,224) (620) (1,050) Class C -- -- -- -- Class Y (13,831) (27,420) (4,690) (10,004) Net realized gain on investments: Class A (38) -- (59) (37) Class C -- -- -- -- Class Y (799) -- (444) (395) - --------------------------------------------------------------------------------------- Total distributions (15,351) (28,644) (5,813) (11,486) ======================================================================================= CAPITAL SHARE TRANSACTIONS (1): Class A: Proceeds from sales 10,003 15,542 8,226 20,400 Reinvestment of distributions 576 935 484 775 Payments for redemptions (8,585) (12,029) (5,172) (9,945) - --------------------------------------------------------------------------------------- Increase (decrease) in net assets from Class A transactions 1,994 4,448 3,538 11,230 - --------------------------------------------------------------------------------------- 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 58,128 133,415 13,504 39,846 Reinvestment of distributions 1,390 1,827 193 331 Payments for redemptions (71,008) (141,567) (16,023) (51,205) Shares issued in connection with the acquisition of Common Trust Fund net assets -- 213,002 -- -- - --------------------------------------------------------------------------------------- Increase (decrease) in net assets from Class Y transactions (11,490) 206,677 (2,326) (11,028) - --------------------------------------------------------------------------------------- Increase (decrease) in net assets from capital share transactions (9,496) 211,125 1,212 202 - --------------------------------------------------------------------------------------- Total increase (decrease) in net assets (8,894) 215,795 829 (1,509) NET ASSETS AT BEGINNING OF PERIOD 731,225 515,430 270,002 271,511 ======================================================================================= NET ASSETS AT END OF PERIOD $ 722,331 $ 731,225 $ 270,831 $ 270,002 ======================================================================================= UNDISTRIBUTED NET INVESTMENT INCOME AT END OF PERIOD $ 846 $ 584 $ 27 $ 125 =======================================================================================
61
MINNESOTA MISSOURI TAX FREE FUND TAX FREE FUND - --------------------------------------------------------------------------------------- 10/1/03 10/1/02 10/1/03 10/1/02 TO TO TO TO 3/31/04 9/30/03 3/31/04 9/30/03 - --------------------------------------------------------------------------------------- (unaudited) (unaudited) OPERATIONS: Investment income - net $ 3,537 $ 8,269 $ 3,739 $ 7,622 Net realized gain on investments 932 1,349 270 699 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 1,060 (2,480) 774 (482) - --------------------------------------------------------------------------------------- Net increase in net assets resulting from operations 5,529 7,138 4,783 7,737 - --------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Investment income - net: Class A (2,524) (5,192) (512) (1,017) Class C (221) (450) (4) (8) Class Y (1,014) (2,153) (3,199) (6,513) Net realized gain on investments: Class A (947) (307) (75) (138) Class C (93) (28) (1) (1) Class Y (358) (121) (437) (721) - --------------------------------------------------------------------------------------- Total distributions (5,157) (8,251) (4,228) (8,398) ======================================================================================= CAPITAL SHARE TRANSACTIONS (3): Class A: Proceeds from sales 3,600 17,441 2,242 6,019 Reinvestment of distributions 3,223 5,120 302 655 Payments for redemptions (9,964) (31,535) (2,837) (4,745) - --------------------------------------------------------------------------------------- Increase (decrease) in net assets from Class A transactions (3,141) (8,974) (293) 1,929 - --------------------------------------------------------------------------------------- Class C: Proceeds from sales 473 3,135 2 251 Reinvestment of distributions 293 446 4 8 Payments for redemptions (942) (3,279) (31) (2) - --------------------------------------------------------------------------------------- Increase (decrease) in net assets from Class C transactions (176) 302 (25) 257 - --------------------------------------------------------------------------------------- Class Y: Proceeds from sales 3,141 5,315 8,732 19,318 Reinvestment of distributions 153 266 197 363 Payments for redemptions (4,899) (12,019) (14,697) (26,019) Shares issued in connection with the acquisition of Common Trust Fund net assets -- -- -- 32,466 - --------------------------------------------------------------------------------------- Increase (decrease) in net assets from Class Y transactions (1,605) (6,438) (5,768) 26,128 - --------------------------------------------------------------------------------------- Increase (decrease) in net assets from capital share transactions (4,922) (15,110) (6,086) 28,314 - --------------------------------------------------------------------------------------- Total increase (decrease) in net assets (4,550) (16,223) (5,531) 27,653 NET ASSETS AT BEGINNING OF PERIOD 185,725 201,948 196,514 168,861 ======================================================================================= NET ASSETS AT END OF PERIOD $ 181,175 $ 185,725 $ 190,983 $ 196,514 ======================================================================================= UNDISTRIBUTED NET INVESTMENT INCOME AT END OF PERIOD $ 252 $ 474 $ 108 $ 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. 62
OREGON NEBRASKA OHIO INTERMEDIATE TAX FREE FUND TAX FREE FUND TAX FREE FUND - ----------------------------------------------------------------------------------------------------------------- 10/1/03 10/1/02 10/1/03 10/1/02 10/1/03 10/1/02 TO TO TO TO TO TO 3/31/04 9/30/03 3/31/04 9/30/03 3/31/04 9/30/03 - ----------------------------------------------------------------------------------------------------------------- (unaudited) (unaudited) (unaudited) OPERATIONS: Investment income - net $ 708 $ 1,387 $ 735 $ 1,488 $ 2,791 $ 5,912 Net realized gain on investments 17 123 29 369 346 1,155 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 276 (212) 298 (413) 296 (1,811) - ----------------------------------------------------------------------------------------------------------------- Net increase in net assets resulting from operations 1,001 1,298 1,062 1,444 3,433 5,256 - ----------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Investment income - net: Class A (88) (173) (18) (20) (158) (300) Class C (28) (43) (3) (4) -- -- Class Y (575) (1,145) (689) (1,462) (2,658) (5,603) Net realized gain on investments: Class A (17) (3) (9) -- (66) (12) Class C (6) (1) (2) -- -- -- Class Y (100) (21) (358) -- (1,095) (208) - ----------------------------------------------------------------------------------------------------------------- Total distributions (814) (1,386) (1,079) (1,486) (3,977) (6,123) ================================================================================================================= CAPITAL SHARE TRANSACTIONS (3): Class A: Proceeds from sales 466 1,001 597 439 1,345 3,805 Reinvestment of distributions 67 110 11 9 141 186 Payments for redemptions (807) (1,117) (97) (60) (433) (2,769) - ----------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets from Class A transactions (274) (6) 511 388 1,053 1,222 - ----------------------------------------------------------------------------------------------------------------- Class C: Proceeds from sales 382 785 93 213 -- -- Reinvestment of distributions 26 38 1 1 -- -- Payments for redemptions (290) (151) (61) -- -- -- - ----------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets from Class C transactions 118 672 33 214 -- -- - ----------------------------------------------------------------------------------------------------------------- Class Y: Proceeds from sales 2,436 4,416 2,748 7,072 7,231 17,727 Reinvestment of distributions 31 52 159 203 699 319 Payments for redemptions (757) (3,634) (3,343) (5,843) (13,902) (22,926) Shares issued in connection with the acquisition of Common Trust Fund net assets -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets from Class Y transactions 1,710 834 (436) 1,432 (5,972) (4,880) - ----------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets from capital share transactions 1,554 1,500 108 2,034 (4,919) (3,658) - ----------------------------------------------------------------------------------------------------------------- Total increase (decrease) in net assets 1,741 1,412 91 1,992 (5,463) (4,525) NET ASSETS AT BEGINNING OF PERIOD 34,646 33,234 40,529 38,537 154,433 158,958 ================================================================================================================= NET ASSETS AT END OF PERIOD $ 36,387 $ 34,646 $ 40,620 $ 40,529 $ 148,970 $ 154,433 ================================================================================================================= UNDISTRIBUTED NET INVESTMENT INCOME AT END OF PERIOD $ 57 $ 40 $ 27 $ 2 $ 42 $ 67 ================================================================================================================= SHORT TAX FREE FUND TAX FREE FUND - --------------------------------------------------------------------------------------- 10/1/03 10/25/02 (1) 10/1/03 10/1/02 TO TO TO TO 3/31/04 9/30/03 3/31/04 9/30/03 - --------------------------------------------------------------------------------------- (unaudited) (unaudited) OPERATIONS: Investment income - net $ 5,671 $ 10,163 $ 10,892 $ 23,245 Net realized gain on investments 51 2,432 2,509 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 (2,442) 13,087 2,637 (6,702) - --------------------------------------------------------------------------------------- Net increase in net assets resulting from operations 3,280 25,682 16,038 21,429 - --------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Investment income - net: Class A (90) (61) (894) (1,818) Class C -- -- (87) (235) Class Y (5,422) (10,054) (10,112) (21,211) Net realized gain on investments: Class A (44) -- (406) (486) Class C -- -- (46) (70) Class Y (2,391) -- (4,411) (5,440) - --------------------------------------------------------------------------------------- Total distributions (7,947) (10,115) (15,956) (29,260) ======================================================================================= CAPITAL SHARE TRANSACTIONS (3): Class A: Proceeds from sales 1,696 10,862 4,502 9,898 Reinvestment of distributions 104 55 1,143 2,040 Payments for redemptions (1,211) (4,499) (5,989) (12,077) - --------------------------------------------------------------------------------------- Increase (decrease) in net assets from Class A transactions 589 6,418 (344) (139) - --------------------------------------------------------------------------------------- Class C: Proceeds from sales -- -- 365 454 Reinvestment of distributions -- -- 129 293 Payments for redemptions -- -- (2,231) (1,953) - --------------------------------------------------------------------------------------- Increase (decrease) in net assets from Class C transactions -- -- (1,737) (1,206) - --------------------------------------------------------------------------------------- Class Y: Proceeds from sales 95,272 508,191 28,980 55,624 Reinvestment of distributions 3,097 183 862 1,557 Payments for redemptions (54,135) (126,993) (40,937) (86,596) Shares issued in connection with the acquisition of Common Trust Fund net assets -- -- -- -- - --------------------------------------------------------------------------------------- Increase (decrease) in net assets from Class Y transactions 44,234 381,381 (11,095) (29,415) - --------------------------------------------------------------------------------------- Increase (decrease) in net assets from capital share transactions 44,823 387,799 (13,176) (30,760) - --------------------------------------------------------------------------------------- Total increase (decrease) in net assets 40,156 403,366 (13,094) (38,591) NET ASSETS AT BEGINNING OF PERIOD 403,366 -- 508,456 547,047 ======================================================================================= NET ASSETS AT END OF PERIOD $ 443,522 $ 403,366 $ 495,362 $ 508,456 ======================================================================================= UNDISTRIBUTED NET INVESTMENT INCOME AT END OF PERIOD $ 207 $ 48 $ 260 $ 461 =======================================================================================
63 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 2004 (1) $ 11.33 $ 0.24 $ 0.21 $ (0.23) $ (0.05) $ 11.50 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 (2) 10.00 0.36 0.45 (0.36) -- 10.45 Class C 2004 (1) $ 11.31 $ 0.21 $ 0.22 $ (0.20) $ (0.05) $ 11.49 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 (2) 10.00 0.34 0.44 (0.34) -- 10.44 Class Y 2004 (1) $ 11.33 $ 0.25 $ 0.22 $ (0.24) $ (0.05) $ 11.51 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 (2) 10.00 0.37 0.45 (0.37) -- 10.45 CALIFORNIA INTERMEDIATE TAX FREE FUND Class A 2004 (1) $ 10.64 $ 0.20 $ 0.01 $ (0.20) $ (0.03) $ 10.62 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 2004 (1) $ 10.66 $ 0.21 $ 0.01 $ (0.21) $ (0.03) $ 10.64 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 2004 (1) $ 11.40 $ 0.23 $ 0.10 $ (0.23) $ (0.09) $ 11.41 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 (2) 10.00 0.35 0.66 (0.35) -- 10.66 Class C 2004 (1) $ 11.41 $ 0.20 $ 0.12 $ (0.21) $ (0.09) $ 11.43 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 (2) 10.00 0.32 0.66 (0.32) -- 10.66 Class Y 2004 (1) $ 11.40 $ 0.24 $ 0.11 $ (0.24) $ (0.09) $ 11.42 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 (2) 10.00 0.37 0.65 (0.36) -- 10.66 COLORADO INTERMEDIATE TAX FREE FUND Class A 2004 (1) $ 11.08 $ 0.23 $ 0.01 $ (0.22) $ -- $ 11.10 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 2004 (1) $ 11.05 $ 0.23 $ 0.02 $ (0.22) $ -- $ 11.08 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) For the six months ended March 31, 2004 (unaudited). All ratios for the period have been annualized, except total return and portfolio turnover. (2) Commenced operations on February 1, 2000. All ratios for the period have been annualized, except total return and portfolio turnover. The accompanying notes are an integral part of the financial statements. 64
RATIO OF NET RATIO OF INVESTMENT NET ASSETS EXPENSES TO INCOME TOTAL END OF AVERAGE TO AVERAGE RETURN (3) PERIOD (000) NET ASSETS NET ASSETS - ---------------------------------------------------------------------------------------------------- ARIZONA TAX FREE FUND Class A 2004 (1) 4.00% $ 10,037 0.75% 4.05% 2003 3.61 11,928 0.75 4.03 2002 8.69 12,413 0.75 4.40 2001 10.50 13,971 0.25 5.10 2000 (2) 8.21 9,668 0.25 5.31 Class C 2004 (1) 3.88% $ 1,655 1.15% 3.65% 2003 3.10 1,857 1.15 3.63 2002 8.28 2,910 1.15 4.00 2001 10.15 2,003 0.65 4.66 2000 (2) 7.88 22 0.65 4.95 Class Y 2004 (1) 4.22% $ 9,754 0.50% 4.30% 2003 3.86 9,244 0.50 4.28 2002 8.95 10,656 0.50 4.64 2001 10.76 5,822 -- 5.33 2000 (2) 8.36 2,670 -- 5.53 CALIFORNIA INTERMEDIATE TAX FREE FUND Class A 2004 (1) 2.06% $ 4,286 0.85% 3.79% 2003 2.58 4,262 0.85 3.86 2002 8.01 4,870 0.85 4.01 2001 8.41 3,392 0.70 4.25 2000 5.84 2,344 0.70 4.35 1999 (0.40) 2,042 0.70 4.19 Class Y 2004 (1) 2.13% $ 45,914 0.70% 3.94% 2003 2.83 44,600 0.70 4.02 2002 8.05 45,212 0.70 4.16 2001 8.39 43,647 0.70 4.26 2000 6.05 43,262 0.70 4.36 1999 (0.30) 41,469 0.70 4.11 CALIFORNIA TAX FREE FUND Class A 2004 (1) 2.90% $ 10,653 0.75% 3.97% 2003 2.85 11,143 0.75 4.16 2002 9.10 12,954 0.75 4.26 2001 9.73 18,139 0.25 4.75 2000 (2) 10.23 6,029 0.25 5.20 Class C 2004 (1) 2.79% $ 990 1.15% 3.57% 2003 2.45 1,101 1.15 3.75 2002 8.69 1,115 1.15 3.86 2001 9.42 647 0.65 4.38 2000 (2) 9.95 34 0.65 5.12 Class Y 2004 (1) 3.12% $ 16,516 0.50% 4.22% 2003 3.11 15,243 0.50 4.40 2002 9.36 11,853 0.50 4.51 2001 9.99 6,726 -- 5.00 2000 (2) 10.38 4,766 -- 5.42 COLORADO INTERMEDIATE TAX FREE FUND Class A 2004 (1) 2.14% $ 16,567 0.85% 3.93% 2003 3.64 22,555 0.85 3.79 2002 7.56 15,244 0.85 4.48 2001 9.75 8,320 0.70 4.55 2000 4.40 3,485 0.70 4.66 1999 (0.88) 4,733 0.70 4.32 Class Y 2004 (1) 2.32% $ 44,225 0.70% 4.08% 2003 3.71 47,854 0.70 3.94 2002 7.83 48,398 0.70 4.60 2001 9.67 47,907 0.70 4.58 2000 4.51 52,885 0.70 4.66 1999 (1.07) 57,236 0.70 4.31 RATIO OF RATIO OF NET EXPENSES TO INVESTMENT AVERAGE INCOME NET ASSETS TO AVERAGE NET PORTFOLIO (EXCLUDING ASSETS (EXCLUDING TURNOVER WAIVERS) WAIVERS) RATE - ---------------------------------------------------------------------------------- ARIZONA TAX FREE FUND Class A 2004 (1) 1.11% 3.69% 8% 2003 1.09 3.69 37 2002 1.37 3.78 30 2001 1.45 3.90 19 2000 (2) 1.80 3.76 27 Class C 2004 (1) 1.86% 2.94% 8% 2003 1.84 2.94 37 2002 2.12 3.03 30 2001 1.84 3.47 19 2000 (2) 2.72 2.88 27 Class Y 2004 (1) 0.86% 3.94% 8% 2003 0.84 3.94 37 2002 1.12 4.02 30 2001 1.19 4.14 19 2000 (2) 1.53 4.00 27 CALIFORNIA INTERMEDIATE TAX FREE FUND Class A 2004 (1) 1.06% 3.58% 8% 2003 1.06 3.65 17 2002 1.14 3.72 23 2001 1.21 3.74 12 2000 1.18 3.87 23 1999 1.17 3.72 9 Class Y 2004 (1) 0.81% 3.83% 8% 2003 0.81 3.91 17 2002 0.89 3.97 23 2001 0.96 4.00 12 2000 0.93 4.13 23 1999 0.92 3.89 9 CALIFORNIA TAX FREE FUND Class A 2004 (1) 1.07% 3.65% 5% 2003 1.08 3.83 20 2002 1.31 3.70 33 2001 1.35 3.65 19 2000 (2) 1.85 3.60 12 Class C 2004 (1) 1.82% 2.90% 5% 2003 1.83 3.07 20 2002 2.06 2.95 33 2001 1.75 3.28 19 2000 (2) 2.25 3.52 12 Class Y 2004 (1) 0.82% 3.90% 5% 2003 0.83 4.07 20 2002 1.06 3.95 33 2001 1.10 3.90 19 2000 (2) 1.59 3.83 12 COLORADO INTERMEDIATE TAX FREE FUND Class A 2004 (1) 1.06% 3.72% 3% 2003 1.06 3.58 14 2002 1.11 4.22 15 2001 1.34 3.91 24 2000 1.25 4.11 42 1999 1.15 3.87 33 Class Y 2004 (1) 0.81% 3.97% 3% 2003 0.81 3.83 14 2002 0.86 4.44 15 2001 1.09 4.19 24 2000 1.00 4.36 42 1999 0.90 4.11 33
(3) Total return does not reflect sales changes. Total return would have been lower had certain expenses not been waived. 65
REALIZED AND NET ASSET UNREALIZED DIVIDENDS NET ASSET VALUE NET GAINS FROM NET DISTRIBUTIONS VALUE BEGINNING INVESTMENT (LOSSES) ON INVESTMENT FROM NET RETURN OF END OF OF PERIOD INCOME INVESTMENTS INCOME REALIZED GAINS CAPITAL PERIOD - ------------------------------------------------------------------------------------------------------------------------------------ COLORADO TAX FREE FUND Class A 2004 (1) $ 11.57 $ 0.25 $ 0.10 $ (0.25) $ (0.08) $ -- $ 11.59 2003 11.65 0.50 (0.10) (0.48) -- -- 11.57 2002 11.09 0.48 0.56 (0.47) (0.01) -- 11.65 2001 10.42 0.54 0.66 (0.53) -- -- 11.09 2000 (2) 10.00 0.35 0.42 (0.35) -- -- 10.42 Class C 2004 (1) $ 11.56 $ 0.22 $ 0.09 $ (0.22) $ (0.08) $ -- $ 11.57 2003 11.63 0.44 (0.08) (0.43) -- -- 11.56 2002 11.08 0.44 0.56 (0.44) (0.01) -- 11.63 2001 10.41 0.49 0.67 (0.49) -- -- 11.08 2000 (2) 10.00 0.34 0.41 (0.34) -- -- 10.41 Class Y 2004 (1) $ 11.59 $ 0.26 $ 0.10 $ (0.26) $ (0.08) $ -- $ 11.61 2003 11.67 0.51 (0.09) (0.50) -- -- 11.59 2002 11.10 0.48 0.60 (0.50) (0.01) -- 11.67 2001 10.43 0.58 0.64 (0.55) -- -- 11.10 2000 (2) 10.00 0.37 0.42 (0.36) -- -- 10.43 INTERMEDIATE TAX FREE FUND Class A 2004 (1) $ 11.30 $ 0.22 $ 0.02 $ (0.22) $ (0.01) $ -- $ 11.31 2003 11.32 0.44 (0.03) (0.43) -- -- 11.30 2002 10.95 0.43 0.40 (0.43) -- (0.03) 11.32 2001 10.48 0.48 0.46 (0.47) -- -- 10.95 2000 10.45 0.48 0.04 (0.49) -- -- 10.48 1999 11.05 0.46 (0.55) (0.46) (0.05) -- 10.45 Class Y 2004 (1) $ 11.28 $ 0.23 $ 0.02 $ (0.23) $ (0.01) $ -- $ 11.29 2003 11.30 0.46 (0.03) (0.45) -- -- 11.28 2002 10.93 0.44 0.40 (0.44) -- (0.03) 11.30 2001 10.46 0.48 0.46 (0.47) -- -- 10.93 2000 10.43 0.48 0.04 (0.49) -- -- 10.46 1999 11.03 0.46 (0.55) (0.46) (0.05) -- 10.43 MINNESOTA INTERMEDIATE TAX FREE FUND Class A 2004 (1) $ 10.44 $ 0.20 $ 0.01 $ (0.20) $ (0.02) $ -- $ 10.43 2003 10.51 0.40 (0.04) (0.41) (0.02) -- 10.44 2002 10.21 0.43 0.29 (0.42) -- -- 10.51 2001 9.80 0.44 0.41 (0.44) -- -- 10.21 2000 9.79 0.45 0.02 (0.45) (0.01) -- 9.80 1999 10.29 0.43 (0.47) (0.43) (0.03) -- 9.79 Class Y 2004 (1) $ 10.40 $ 0.20 $ 0.01 $ (0.21) $ (0.02) $ -- $ 10.38 2003 10.46 0.42 (0.03) (0.43) (0.02) -- 10.40 2002 10.17 0.45 0.27 (0.43) -- -- 10.46 2001 9.76 0.44 0.41 (0.44) -- -- 10.17 2000 9.76 0.45 0.01 (0.45) (0.01) -- 9.76 1999 10.26 0.43 (0.47) (0.43) (0.03) -- 9.76
(1) For the six months ended March 31, 2004 (unaudited). All ratios for the period have been annualized, except total return and portfolio turnover. (2) Commenced operations on February 1, 2000. All ratios for the period have been annualized, except total return and portfolio turnover. (3) Total return does not reflect sales changes. Total return would have been lower had certain expenses not been waived. The accompanying notes are an integral part of the financial statements. 66
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 (3) PERIOD (000) NET ASSETS NET ASSETS WAIVERS) WAIVERS) RATE - ------------------------------------------------------------------------------------------------------------------------------------ COLORADO TAX FREE FUND Class A 2004 (1) 3.05% $ 12,599 0.75% 4.16% 1.07% 3.84% 8% 2003 3.53 13,843 0.75 4.23 1.07 3.91 14 2002 9.72 19,633 0.75 4.32 1.30 3.77 22 2001 11.78 20,550 0.25 5.03 1.42 3.86 23 2000 (2) 7.80 8,068 0.25 5.28 1.80 3.73 36 Class C 2004 (1) 2.76% $ 3,776 1.15% 3.76% 1.82% 3.09% 8% 2003 3.23 4,284 1.15 3.83 1.82 3.16 14 2002 9.23 3,705 1.15 3.95 2.05 3.05 22 2001 11.41 1,698 0.65 4.61 1.82 3.44 23 2000 (2) 7.52 156 0.65 4.92 2.58 2.99 36 Class Y 2004 (1) 3.17% $ 9,650 0.50% 4.41% 0.82% 4.09% 8% 2003 3.78 9,516 0.50 4.49 0.82 4.17 14 2002 10.07 9,244 0.50 4.59 1.05 4.04 22 2001 12.02 1,923 -- 5.32 1.18 4.14 23 2000 (2) 8.05 2,430 -- 5.47 1.53 3.94 36 INTERMEDIATE TAX FREE FUND Class A 2004 (1) 2.15% $ 36,221 0.85% 3.91% 1.05% 3.71% 6% 2003 3.74 34,231 0.85 3.91 1.05 3.71 15 2002 7.78 29,838 0.85 3.87 1.03 3.69 28 2001 9.19 23,236 0.70 4.43 1.13 4.00 12 2000 5.10 8,994 0.70 4.61 1.12 4.19 29 1999 (0.78) 10,713 0.70 4.31 1.12 3.89 23 Class Y 2004 (1) 2.23% $ 686,110 0.70% 4.06% 0.80% 3.96% 6% 2003 3.90 696,994 0.70 4.05 0.80 3.95 15 2002 7.95 485,592 0.70 4.04 0.78 3.96 28 2001 9.21 458,743 0.70 4.43 0.87 4.26 12 2000 5.11 375,279 0.70 4.62 0.87 4.45 29 1999 (0.79) 442,464 0.70 4.31 0.87 4.14 23 MINNESOTA INTERMEDIATE TAX FREE FUND Class A 2004 (1) 2.01% $ 34,565 0.85% 3.73% 1.05% 3.53% 4% 2003 3.55 31,044 0.85 3.85 1.05 3.65 15 2002 7.23 19,914 0.85 4.27 1.03 4.09 15 2001 8.85 12,408 0.70 4.38 1.13 3.95 13 2000 4.94 12,469 0.70 4.59 1.12 4.17 18 1999 (0.43) 14,629 0.70 4.30 1.12 3.88 12 Class Y 2004 (1) 2.00% $ 236,266 0.70% 3.88% 0.80% 3.78% 4% 2003 3.82 238,958 0.70 4.01 0.80 3.91 15 2002 7.31 251,597 0.70 4.41 0.78 4.33 15 2001 8.89 255,939 0.70 4.38 0.88 4.20 13 2000 5.04 244,353 0.70 4.59 0.87 4.42 18 1999 (0.44) 279,776 0.70 4.28 0.87 4.11 12
67
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 2004 (1) $ 11.34 $ 0.22 $ 0.13 $ (0.23) $ (0.09) $ 11.37 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 2004 (1) $ 11.31 $ 0.19 $ 0.13 $ (0.21) $ (0.09) $ 11.33 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 (2) 11.38 0.37 (0.71) (0.35) -- 10.69 Class Y 2004 (1) $ 11.33 $ 0.23 $ 0.12 $ (0.24) $ (0.09) $ 11.35 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 (3) Class A 2004 (1) $ 12.37 $ 0.23 $ 0.07 $ (0.23) $ (0.03) $ 12.41 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 (4) 11.54 0.46 0.50 (0.44) (0.01) 12.05 2000 (5) 11.31 0.48 0.23 (0.48) -- 11.54 1999 (6) 12.08 0.50 (0.74) (0.51) (0.02) 11.31 Class C 2004 (1) $ 12.35 $ 0.20 $ 0.06 $ (0.20) $ (0.03) $ 12.38 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 (7) 12.03 -- 0.02 -- -- 12.05 Class Y 2004 (1) $ 12.38 $ 0.24 $ 0.06 $ (0.24) $ (0.03) $ 12.41 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 (4) 11.55 0.49 0.50 (0.47) (0.01) 12.06 2000 (5) 11.32 0.50 0.23 (0.50) -- 11.55 1999 (6) 12.08 0.53 (0.74) (0.53) (0.02) 11.32 NEBRASKA TAX FREE FUND Class A 2004 (1) $ 10.66 $ 0.20 $ 0.09 $ (0.20) $ (0.04) $ 10.71 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 (8) 10.00 0.24 0.20 (0.24) -- 10.20 Class C 2004 (1) $ 10.58 $ 0.18 $ 0.09 $ (0.17) $ (0.04) $ 10.64 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 (8) 10.00 0.20 0.17 (0.23) -- 10.14 Class Y 2004 (1) $ 10.65 $ 0.21 $ 0.10 $ (0.21) $ (0.04) $ 10.71 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 (8) 10.00 0.26 0.19 (0.26) -- 10.19
(1) For the six months ended March 31, 2004 (unaudited). 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) 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. (4) For the period November 1, 2000 to September 30, 2001. Effective in 2001, the Fund's fiscal year end was changed from October 31 to September 30. All ratios for the period have been annualized, except total return and portfolio turnover. The accompanying notes are an integral part of the financial statements. 68
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 (9) PERIOD (000) NET ASSETS NET ASSETS WAIVERS) WAIVERS) RATE - ----------------------------------------------------------------------------------------------------------------------------------- MINNESOTA TAX FREE FUND Class A 2004 (1) 3.11% $ 123,034 0.95% 3.81% 1.05% 3.71% 19% 2003 3.90 125,916 0.95 4.25 1.06 4.14 23 2002 7.23 135,607 0.95 4.22 1.09 4.08 26 2001 9.24 107,260 0.95 4.84 1.18 4.61 15 2000 4.75 93,995 0.95 5.22 1.17 5.00 34 1999 (1.31) 108,116 0.95 4.98 1.17 4.76 15 Class C 2004 (1) 2.92% $ 11,801 1.35% 3.42% 1.80% 2.97% 19% 2003 3.51 11,951 1.35 3.85 1.81 3.39 23 2002 7.10 11,703 1.35 3.80 1.84 3.31 26 2001 8.88 6,382 1.35 4.39 1.58 4.16 15 2000 4.25 2,037 1.35 4.83 1.77 4.41 34 1999 (2) (3.03) 1,682 1.35 4.70 1.87 4.18 15 Class Y 2004 (1) 3.15% $ 46,340 0.70% 4.06% 0.80% 3.96% 19% 2003 4.16 47,858 0.70 4.50 0.81 4.39 23 2002 7.84 54,638 0.70 4.47 0.84 4.33 26 2001 9.52 49,078 0.70 5.09 0.93 4.86 15 2000 5.00 40,860 0.70 5.49 0.93 5.26 34 1999 (1.07) 17,356 0.70 5.26 0.87 5.09 15 MISSOURI TAX FREE FUND (3) Class A 2004 (1) 2.43% $ 27,932 0.95% 3.63% 1.06% 3.52% 2% 2003 3.45 28,141 0.95 3.69 1.06 3.58 20 2002 7.99 26,496 0.95 3.81 1.06 3.70 25 2001 (4) 8.44 22,573 0.94 4.23 1.00 4.17 9 2000 (5) 6.41 19,876 0.87 4.59 0.98 4.48 3 1999 (6) (2.09) 21,242 0.86 4.30 1.07 4.09 1 Class C 2004 (1) 2.14% $ 255 1.35% 3.24% 1.81% 2.78% 2% 2003 3.05 279 1.35 3.30 1.81 2.84 20 2002 7.58 21 1.35 3.28 1.81 2.82 25 2001 (7) 0.17 -- -- -- -- -- 9 Class Y 2004 (1) 2.47% $ 162,796 0.70% 3.88% 0.81% 3.77% 2% 2003 3.71 168,094 0.70 3.94 0.81 3.83 20 2002 8.25 142,344 0.70 4.06 0.81 3.95 25 2001 (4) 8.67 129,715 0.69 4.48 0.75 4.42 9 2000 (5) 6.60 126,896 0.67 4.79 1.08 4.38 3 1999 (6) (1.81) 111,842 0.66 4.51 1.07 4.10 1 NEBRASKA TAX FREE FUND Class A 2004 (1) 2.69% $ 4,621 0.75% 3.78% 1.07% 3.46% 4% 2003 3.57 4,869 0.75 3.87 1.07 3.55 15 2002 9.09 4,904 0.75 3.98 1.29 3.44 35 2001 (8) 4.48 5,090 0.55 4.12 1.38 3.29 30 Class C 2004 (1) 2.60% $ 1,782 1.15% 3.38% 1.82% 2.71% 4% 2003 3.10 1,657 1.15 3.46 1.82 2.79 15 2002 8.66 982 1.15 3.57 2.04 2.68 35 2001 (8) 3.71 226 0.95 3.73 1.75 2.93 30 Class Y 2004 (1) 2.92% $ 29,984 0.50% 4.02% 0.82% 3.70% 4% 2003 3.82 28,120 0.50 4.11 0.82 3.79 15 2002 9.37 27,348 0.50 4.22 1.04 3.68 35 2001 (8) 4.51 22,443 0.30 4.36 1.13 3.53 30
(5) For the period December 1, 1999 to October 31, 2000. Effective in 2000, the Fund's fiscal year end was changed from November 30 from October 31. All ratios for the period have been annualized, except total return and portfolio turnover. (6) For the fiscal year ended November 30. (7) Class of shares has been offered since September 24, 2001. All ratios for the period have been annualized, except total return and portfolio turnover. (8) Commenced operations on February 28, 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. 69
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 2004 (1) $ 10.54 $ 0.18 $ 0.09 $ (0.17) $ (0.10) $ 10.54 2003 10.58 0.36 (0.03) (0.37) -- 10.54 2002 (2) 10.00 0.15 0.59 (0.16) -- 10.58 Class C 2004 (1) $ 10.44 $ 0.16 $ 0.09 $ (0.15) $ (0.10) $ 10.44 2003 10.57 0.32 (0.12) (0.33) -- 10.44 2002 (2) 10.00 0.13 0.58 (0.14) -- 10.57 Class Y 2004 (1) $ 10.55 $ 0.19 $ 0.10 $ (0.19) $ (0.10) $ 10.55 2003 10.57 0.39 (0.02) (0.39) -- 10.55 2002 (2) 10.00 0.16 0.58 (0.17) -- 10.57 OREGON INTERMEDIATE TAX FREE FUND Class A 2004 (1) $ 10.43 $ 0.19 $ 0.04 $ (0.19) $ (0.08) $ 10.39 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 (3) 10.23 0.29 (0.51) (0.29) -- 9.72 Class Y 2004 (1) $ 10.43 $ 0.19 $ 0.06 $ (0.20) $ (0.08) $ 10.40 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 Class A 2004 (1) $ 10.18 $ 0.13 $ (0.06) $ (0.12) $ (0.06) $ 10.07 2003 (4) 10.00 0.26 0.19 (0.27) -- 10.18 Class Y 2004 (1) $ 10.18 $ 0.14 $ (0.06) $ (0.13) $ (0.06) $ 10.07 2003 (4) 10.00 0.28 0.18 (0.28) -- 10.18 TAX FREE FUND (5) Class A 2004 (1) $ 11.28 $ 0.23 $ 0.13 $ (0.24) $ (0.11) $ 11.29 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 (6) 10.53 0.42 0.43 (0.39) -- 10.99 2000 (7) 10.20 0.40 0.34 (0.41) -- 10.53 1999 (8) 11.06 0.44 (0.75) (0.44) (0.11) 10.20 Class C 2004 (1) $ 11.24 $ 0.22 $ 0.10 $ (0.21) $ (0.11) $ 11.24 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 (9) 10.93 0.01 0.02 -- -- 10.96 Class Y 2004 (1) $ 11.29 $ 0.25 $ 0.12 $ (0.25) $ (0.11) $ 11.30 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 (6) 10.53 0.44 0.45 (0.42) -- 11.00 2000 (7) 10.21 0.42 0.33 (0.43) -- 10.53 1999 (8) 11.10 0.47 (0.78) (0.47) (0.11) 10.21
(1) For the six months ended March 31, 2004 (unaudited). All ratios for the period have been annualized, except total return and portfolio turnover. (2) Commenced operations on April 30, 2002. All ratios for the period have been annualized, except total return and portfolio turnover. (3) Class of shares has been offered since February 1, 1999. All ratios for the period have been annualized, except total return and portfolio turnover. (4) Commenced operations on October 25, 2002. All ratios for the period have been annualized, except total return and portfolio turnover. (5) 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 Class Y 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. 70
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 (10) PERIOD (000) NET ASSETS NET ASSETS WAIVERS) WAIVERS) RATE - ------------------------------------------------------------------------------------------------------------------------------------ OHIO TAX FREE FUND Class A 2004 (1) 2.61% $ 1,359 0.75% 3.38% 1.07% 3.06% 7% 2003 3.22 849 0.75 3.52 1.09 3.18 22 2002 (2) 7.42 453 0.75 3.25 1.23 2.77 3 Class C 2004 (1) 2.43% $ 247 1.15% 2.99% 1.82% 2.32% 7% 2003 1.95 215 1.15 3.08 1.84 2.39 22 2002 (2) 7.13 1 1.15 3.01 1.98 2.18 3 Class Y 2004 (1) 2.73% $ 39,014 0.50% 3.64% 0.82% 3.32% 7% 2003 3.65 39,465 0.50 3.78 0.84 3.44 22 2002 (2) 7.41 38,083 0.50 3.74 0.98 3.26 3 OREGON INTERMEDIATE TAX FREE FUND Class A 2004 (1) 2.21% $ 9,210 0.85% 3.55% 1.05% 3.35% 2% 2003 3.31 8,189 0.85 3.67 1.05 3.47 17 2002 7.23 7,030 0.85 3.95 1.05 3.75 18 2001 9.08 5,477 0.70 4.27 1.13 3.84 20 2000 4.79 3,303 0.70 4.47 1.13 4.04 18 1999 (3) (2.22) 2,005 0.70 4.37 1.12 3.95 13 Class Y 2004 (1) 2.39% $ 139,760 0.70% 3.70% 0.80% 3.60% 2% 2003 3.46 146,244 0.70 3.82 0.80 3.72 17 2002 7.39 151,928 0.70 4.10 0.80 4.00 18 2001 9.08 153,951 0.70 4.28 0.89 4.09 20 2000 4.78 160,124 0.70 4.47 0.88 4.29 18 1999 (0.66) 178,411 0.70 4.30 0.87 4.13 13 SHORT TAX FREE FUND Class A 2004 (1) 0.74% $ 6,957 0.75% 2.54% 1.05% 2.24% 7% 2003 (4) 4.54 6,448 0.75 2.67 1.05 2.37 54 Class Y 2004 (1) 0.82% $ 436,565 0.60% 2.69% 0.80% 2.49% 7% 2003 (4) 4.66 396,918 0.60 3.00 0.80 2.80 54 TAX FREE FUND (5) Class A 2004 (1) 3.22% $ 42,596 0.95% 4.12% 1.05% 4.02% 12% 2003 4.06 42,942 0.95 4.21 1.05 4.11 23 2002 8.56 43,708 0.95 4.20 1.02 4.13 39 2001 (6) 8.22 48,769 1.16 4.27 1.18 4.25 3 2000 (7) 7.43 1,526 0.98 4.34 1.09 4.23 4 1999 (8) (2.87) 1,582 0.96 4.14 1.16 3.94 -- Class C 2004 (1) 2.91% $ 3,165 1.35% 3.72% 1.80% 3.27% 12% 2003 3.67 4,880 1.35 3.81 1.80 3.36 23 2002 8.14 6,199 1.35 3.82 1.77 3.40 39 2001 (9) 0.27 4,494 1.04 5.61 1.04 5.61 3 Class Y 2004 (1) 3.35% $ 449,601 0.70% 4.37% 0.80% 4.27% 12% 2003 4.31 460,634 0.70 4.46 0.80 4.36 23 2002 8.84 497,140 0.70 4.47 0.77 4.40 39 2001 (6) 8.59 501,361 0.73 4.32 0.74 4.31 3 2000 (7) 7.63 253,803 0.78 4.54 1.19 4.13 4 1999 (8) (2.97) 326,840 0.76 4.33 1.16 3.93 --
(6) For the period November 1, 2000 to September 30, 2001. Effective in 2001, the Fund's fiscal year end was changed from October 31 to September 30. All ratios for the period have been annualized, except total return and portfolio turnover. (7) For the period December 1, 1999 to October 31, 2000. Effective in 2000, the Fund's fiscal year end was changed from November 30 from October 31. All ratios for the period have been annualized, except total return and portfolio turnover. (8) For the fiscal year ended November 30. (9) Class of shares has been offered since September 24, 2001. All ratios for the period have been annualized, except total return and portfolio turnover. (10) Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived. 71 NOTES TO FINANCIAL STATEMENTS March 31, 2004 (unaudited) 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 eighteen 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. The Intermediate Tax Free Fund, Short Tax Free Fund, and Tax Free Fund are diversified funds. 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 are non-diversified funds. Non-diversified funds may invest a large component of their net assets in the securities of relatively few issuers. All classes of shares in a Fund have identical voting, dividend, liquidation, and other rights, and the same terms and conditions, except that the level of distribution and shareholder servicing fees charged may differ among classes and each class has exclusive voting rights on any matters relating to that class' servicing or distribution arrangements. 2> Summary of Significant Accounting Policies The significant accounting policies followed by the Funds are as follows: SECURITY VALUATION - Security valuations for the Funds' investments are furnished by 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. Some of the factors which may be considered by the board of directors in determining fair value are fundamental analytical data relating to the investment; the nature and duration of any restrictions on disposition; trading in similar securities of the same issuer or comparable companies; information from broker-dealers; and an evaluation of the forces that influence the market in which the securities are purchased and sold. 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 March 31, 2004, 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. 72 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 FIRST AMERICAN FUNDS Semiannual Report 2004#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. 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. The character of distributions made during the year from net investment income or net realized gains may differ from its ultimate characterization for federal income tax purposes. In addition, due to the timing of dividend distributions, the fiscal year in which the amounts are distributed may differ from the year that the income or realized gains (losses) were recorded by the Fund. The character of the distributions paid during the six months ended March 31, 2004 (estimated) and the year ended September 30, 2003, were characterized as follows (000):
2004 ----------------------------------------------------- TAX EXEMPT ORDINARY LONG TERM FUND INCOME INCOME GAIN TOTAL -------------------------------------------------------------------------------------------------- Arizona Tax Free Fund $ 453 $ -- $ 99 $ 552 California Intermediate Tax Free Fund 959 -- 155 1,114 California Tax Free Fund 587 -- 210 797 Colorado Intermediate Tax Free Fund 1,273 -- -- 1,273 Colorado Tax Free Fund 566 -- 187 753 Intermediate Tax Free Fund 14,514 -- 837 15,351 Minnesota Intermediate Tax Free Fund 5,310 -- 503 5,813 Minnesota Tax Free Fund 3,759 -- 1,398 5,157 Missouri Tax Free Fund 3,715 -- 513 4,228 Nebraska Tax Free Fund 691 -- 123 814 Ohio Tax Free Fund 710 -- 369 1,079 Oregon Intermediate Tax Free Fund 2,816 -- 1,161 3,977 Short Tax Free Fund 5,512 -- 2,435 7,947 Tax Free Fund 11,093 -- 4,863 15,956
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
73 As of September 30, 2003, the Funds' most recently completed fiscal year end, 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 83 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
74 As of September 30, 2003, the Funds' most recently completed fiscal year end, the following Fund had capital loss carryforwards (000):
EXPIRATION YEAR 2008 2009 TOTAL --------------------------------------------------------------------------- FUND COLORADO INTERMEDIATE TAX FREE FUND $ 2 $461 $ 463
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 March 31, 2004, the following Funds had outstanding when-issued commitments (000):
FUND COST SEGREGATED ASSETS --------------------------------------------------------------------------- INTERMEDIATE TAX FREE FUND $ 1,496 $ 16,765 NEBRASKA TAX FREE FUND 489 2,903 SHORT TAX FREE FUND 5,000 10,334 TAX FREE FUND 1,981 40,429
ILLIQUID SECURITIES AND RESTRICTED SECURITIES - At March 31, 2004, no Fund held illiquid securities. A security may be considered illiquid if it lacks a readily available market or if its valuation has not changed for a certain period of time. Each Fund intends to invest no more than 15% of its net assets (determined at the time of purchase and reviewed periodically) in illiquid securities. Certain restricted securities may be considered illiquid. Restricted securities are often purchased in private placement transactions, are not registered under the Securities Act of 1933, may have contractual restrictions on resale, and may be valued under methods approved by the Funds' board of directors as reflecting fair value. Certain restricted securities eligible for resale to qualified institutional investors, including Rule 144A securities, are not subject to the limitation on a Fund's investment in illiquid securities if they are determined to be liquid in accordance with procedures adopted by the Funds' board of directors. The following restricted securities, including Rule 144A securities, have been determined to be liquid under the guidelines established by the Funds' board of directors. INTERMEDIATE TAX FREE FUND
DATES SECURITY PAR ACQUIRED COST BASIS --------------------------------------------------------------------------- MASHANTUCKET WESTERN PEQUOT $ 4,170 01/98 $ 4,416 MORTON GROVE RESIDENTIAL HOUSING 5,570 08/95 6,180
SHORT TAX FREE FUND
DATES SECURITY PAR ACQUIRED COST BASIS --------------------------------------------------------------------------- MASHANTUCKET WESTERN PEQUOT $ 1,020 02/98 $ 1,029
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 March 31, 2004, the Tax Free Fund had investments in inverse floaters with a value of $3,367,230, which represents 0.1% 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 six months ended March 31, 2004. 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. 75 EXPENSES - Expenses that are directly related to one of the Funds are charged directly to that Fund. Other operating expenses are generally allocated to the Funds on the basis of relative net assets of all funds within the First American Fund complex. Class specific expenses, such as 12b-1 fees, are borne by that class. Income, other expenses, and realized and unrealized gains and losses of a Fund are allocated to each respective class in proportion to the relative net assets of each class. USE OF ESTIMATES IN 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 was equal to an annual rate of 0.50% of the average daily net assets of the Fund. USBAM voluntarily waived fees during six months ended March 31, 2004 so that the total fund operating expenses, as a percentage of average daily net assets, did not exceed the following amounts:
SHARE CLASS A C Y --------------------------------------------------------------------------- FUND --------------------------------------------------------------------------- Arizona Tax Free Fund 0.75% 1.15% 0.50% California Intermediate Tax Free Fund 0.85 -- 0.70 California Tax Free Fund 0.75 1.15 0.50 Colorado Intermediate Tax Free Fund 0.85 -- 0.70 Colorado Tax Free Fund 0.75 1.15 0.50 Intermediate Tax Free Fund 0.85 -- 0.70 Minnesota Intermediate Tax Free Fund 0.85 -- 0.70 Minnesota Tax Free Fund 0.95 1.35 0.70 Missouri Tax Free Fund 0.95 1.35 0.70 Nebraska Tax Free Fund 0.75 1.15 0.50 Ohio Tax Free Fund 0.75 1.15 0.50 Oregon Intermediate Tax Free Fund 0.85 -- 0.70 Short Tax Free Fund 0.75 -- 0.60 Tax Free Fund 0.95 1.35 0.70
The Funds may invest in the money market funds that are series of First American Funds, Inc. ("FAF"), subject to certain limitations. In order to avoid the payment of duplicative investment advisory fees to USBAM, which acts as the investment adviser to both the investing Funds and the related money market funds, USBAM will reimburse each investing Fund an amount equal to that portion of their investment advisory fee received from the related money market funds that is attributable to the assets of the investing Fund. For financial statement purposes, these reimbursements are recorded as investment income. CO-ADMINISTRATION FEES - USBAM and U.S. Bancorp Fund Services, LLC ("USBFS") (collectively the "Administrators"), serve as 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 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 six months ended March 31, 2004, administration fees paid to USBAM and USBFS for the Funds included in this semiannual report were as follows (000):
FUND AMOUNT --------------------------------------------------------------------------- Arizona Tax Free Fund $ 29 California Intermediate Tax Free Fund 64 California Tax Free Fund 37 Colorado Intermediate Tax Free Fund 85 Colorado Tax Free Fund 35 Intermediate Tax Free Fund 954 Minnesota Intermediate Tax Free Fund 353 Minnesota Tax Free Fund 241 Missouri Tax Free Fund 255 Nebraska Tax Free Fund 47 Ohio Tax Free Fund 53 Oregon Intermediate Tax Free Fund 198 Short Tax Free Fund 553 Tax Free Fund 657
76 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, or 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 six months ended March 31, 2004, total distribution and shareholder servicing fees waived by the distributor for the Funds included in this semiannual report were as follows (000):
FUND AMOUNT --------------------------------------------------------------------------- Arizona Tax Free Fund $ 3 California Intermediate Tax Free Fund 2 California Tax Free Fund 2 Colorado Intermediate Tax Free Fund 9 Colorado Tax Free Fund 7 Intermediate Tax Free Fund 18 Minnesota Intermediate Tax Free Fund 16 Minnesota Tax Free Fund 21 Missouri Tax Free Fund -- Nebraska Tax Free Fund 3 Ohio Tax Free Fund -- Oregon Intermediate Tax Free Fund 4 Short Tax Free Fund 4 Tax Free Fund 8
Under the distribution agreements, the following amounts were retained by Quasar or paid to affiliates of USBAM for the six months ended March 31, 2004 (000):
FUND AMOUNT --------------------------------------------------------------------------- Arizona Tax Free Fund $ 19 California Intermediate Tax Free Fund 3 California Tax Free Fund 18 Colorado Intermediate Tax Free Fund 14 Colorado Tax Free Fund 29 Intermediate Tax Free Fund 26 Minnesota Intermediate Tax Free Fund 25 Minnesota Tax Free Fund 198 Missouri Tax Free Fund 37 Nebraska Tax Free Fund 12 Ohio Tax Free Fund 2 Oregon Intermediate Tax Free Fund 6 Short Tax Free Fund 5 Tax Free Fund 68
OTHER FEES - In addition to the investment advisory fees, custodian fees, distribution and shareholder servicing fees, and co-administration fees, each Fund is responsible for paying most other operating expenses including fees and expenses of outside directors, registration fees, printing of shareholder reports, legal, auditing, insurance, and other miscellaneous expenses. For the six months ended March 31, 2004, legal fees and expenses were paid to a law firm of which the Secretary and two Assistant Secretaries of the Funds are partners. 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 six months ended March 31, 2004, total sales charges retained by affiliates of USBAM for distributing the Funds' shares were as follows (000):
FUND AMOUNT --------------------------------------------------------------------------- Arizona Tax Free Fund $ 17 California Intermediate Tax Free Fund 11 California Tax Free Fund 22 Colorado Intermediate Tax Free Fund 16 Colorado Tax Free Fund 20 Intermediate Tax Free Fund 70 Minnesota Intermediate Tax Free Fund 88 Minnesota Tax Free Fund 43 Missouri Tax Free Fund 24 Nebraska Tax Free Fund 30 Ohio Tax Free Fund 16 Oregon Intermediate Tax Free Fund 24 Short Tax Free Fund 11 Tax Free Fund 51
77 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 - ----------------------------------------------------------------------------------------------------------------------------------- 10/1/03 10/1/02 10/1/03 10/1/02 10/1/03 10/1/02 10/1/03 10/1/02 to to to to to to to to 3/31/04 9/30/03 3/31/04 9/30/03 3/31/04 9/30/03 3/31/04 9/30/03 - ----------------------------------------------------------------------------------------------------------------------------------- (unaudited) (unaudited) (unaudited) (unaudited) Class A: Shares issued 108 459 69 133 99 124 108 1,771 Shares issued in lieu of cash distributions 21 49 7 14 22 43 22 62 Shares redeemed (310) (543) (74) (197) (166) (303) (674) (1,168) - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL CLASS A TRANSACTIONS (181) (35) 2 (50) (45) (136) (544) 665 =================================================================================================================================== Class C: Shares issued -- 34 -- -- 18 13 -- -- Shares issued in lieu of cash distributions 2 8 -- -- 3 4 -- -- Shares redeemed (22) (133) -- -- (30) (17) -- -- - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL CLASS C TRANSACTIONS (20) (91) -- -- (9) -- -- -- =================================================================================================================================== Class Y: Shares issued 141 293 376 428 188 660 98 985 Shares issued in lieu of cash distributions 2 3 3 4 2 5 -- 1 Shares redeemed (111) (414) (248) (429) (80) (347) (435) (1,016) - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL CLASS Y TRANSACTIONS 32 (118) 131 3 110 318 (337) (30) =================================================================================================================================== NET INCREASE (DECREASE) IN CAPITAL SHARES (169) (244) 133 (47) 56 182 (881) 635 ===================================================================================================================================
COLORADO TAX FREE INTERMEDIATE FUND TAX FREE FUND - ------------------------------------------------------------------------------------------------------------- 10/1/03 10/1/02 10/1/03 10/1/02 to to to to 3/31/04 9/30/03 3/31/04 9/30/03 - ------------------------------------------------------------------------------------------------------------- (unaudited) (unaudited) Class A: Shares issued 65 97 883 1,388 Shares issued in lieu of cash distributions 28 55 51 83 Shares redeemed (202) (642) (760) (1,077) - ------------------------------------------------------------------------------------------------------------- TOTAL CLASS A TRANSACTIONS (109) (490) 174 394 ============================================================================================================= Class C: Shares issued 18 120 -- -- Shares issued in lieu of cash distributions 8 13 -- -- Shares redeemed (71) (80) -- -- - ------------------------------------------------------------------------------------------------------------- TOTAL CLASS C TRANSACTIONS (45) 53 -- -- ============================================================================================================= Class Y: Shares issued 69 146 5,155 11,900 Shares issued in lieu of cash distributions 1 2 123 164 Shares redeemed (59) (119) (6,301) (12,662) Shares issued in connection with acquisition of Common Trust Fund net assets -- -- -- 19,435 - ------------------------------------------------------------------------------------------------------------- TOTAL CLASS Y TRANSACTIONS 11 29 (1,023) 18,837 ============================================================================================================= NET INCREASE (DECREASE) IN CAPITAL SHARES (143) (408) (849) 19,231 ============================================================================================================= MINNESOTA INTERMEDIATE MINNESOTA MISSOURI TAX FREE FUND TAX FREE FUND TAX FREE FUND - --------------------------------------------------------------------------------------------------------------------------------- 10/1/03 10/1/02 10/1/03 10/1/02 10/1/03 10/1/02 to to to to to to 3/31/04 9/30/03 3/31/04 9/30/03 3/31/04 9/30/03 - --------------------------------------------------------------------------------------------------------------------------------- (unaudited) (unaudited) (unaudited) Class A: Shares issued 790 1,958 317 1,549 181 486 Shares issued in lieu of cash distributions 47 75 285 457 24 54 Shares redeemed (495) (956) (879) (2,807) (229) (389) - --------------------------------------------------------------------------------------------------------------------------------- TOTAL CLASS A TRANSACTIONS 342 1,077 (277) (801) (24) 151 ================================================================================================================================= Class C: Shares issued -- -- 42 279 -- 20 Shares issued in lieu of cash distributions -- -- 26 40 1 -- Shares redeemed -- -- (83) (292) (2) -- - --------------------------------------------------------------------------------------------------------------------------------- TOTAL CLASS C TRANSACTIONS -- -- (15) 27 (1) 20 ================================================================================================================================= Class Y: Shares issued 1,299 3,848 277 470 705 1,571 Shares issued in lieu of cash distributions 18 32 14 24 16 30 Shares redeemed (1,545) (4,937) (433) (1,071) (1,187) (2,122) Shares issued in connection with acquisition of Common Trust Fund net assets -- -- -- -- -- 2,697 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL CLASS Y TRANSACTIONS (228) (1,057) (142) (577) (466) 2,176 ================================================================================================================================= NET INCREASE (DECREASE) IN CAPITAL SHARES 114 20 (434) (1,351) (491) 2,347 =================================================================================================================================
NEBRASKA OREGON TAX FREE OHIO INTERMEDIATE FUND TAX FREE FUND TAX FREE FUND - ---------------------------------------------------------------------------------------------------------------- 10/1/03 10/1/02 10/1/03 10/1/02 10/1/03 10/1/02 to to to to to to 3/31/04 9/30/03 3/31/04 9/30/03 3/31/04 9/30/03 - ---------------------------------------------------------------------------------------------------------------- (unaudited) (unaudited) (unaudited) Class A: Shares issued 44 94 57 43 129 365 Shares issued in lieu of cash distributions 6 11 1 1 14 18 Shares redeemed (76) (107) (10) (6) (42) (268) - ---------------------------------------------------------------------------------------------------------------- TOTAL CLASS A TRANSACTIONS (26) (2) 48 38 101 115 ================================================================================================================ Class C: Shares issued 36 75 9 20 -- -- Shares issued in lieu of cash distributions 2 4 -- -- -- -- Shares redeemed (27) (14) (5) -- -- -- - ---------------------------------------------------------------------------------------------------------------- TOTAL CLASS C TRANSACTIONS 11 65 4 20 -- -- ================================================================================================================ Class Y: Shares issued 229 420 262 680 694 1,712 Shares issued in lieu of cash distributions 3 5 15 19 68 31 Shares redeemed (71) (343) (319) (560) (1,336) (2,207) - ---------------------------------------------------------------------------------------------------------------- TOTAL CLASS Y TRANSACTIONS 161 82 (42) 139 (574) (464) ================================================================================================================ NET INCREASE (DECREASE) IN CAPITAL SHARES 146 145 10 197 (473) (349) ================================================================================================================ SHORT TAX FREE FUND TAX FREE FUND - --------------------------------------------------------------------------------------------- 10/1/03 10/25/02(1) 10/1/03 10/1/02 to to to to 3/31/04 9/30/03 3/31/04 9/30/03 - --------------------------------------------------------------------------------------------- (unaudited) (unaudited) Class A: Shares issued 168 1,072 399 885 Shares issued in lieu of cash distributions 10 5 102 184 Shares redeemed (120) (444) (533) (1,083) - --------------------------------------------------------------------------------------------- TOTAL CLASS A TRANSACTIONS 58 633 (32) (14) ============================================================================================= Class C: Shares issued -- -- 33 40 Shares issued in lieu of cash distributions -- -- 12 26 Shares redeemed -- -- (197) (176) - --------------------------------------------------------------------------------------------- TOTAL CLASS C TRANSACTIONS -- -- (152) (110) ============================================================================================= Class Y: Shares issued 9,432 51,494 2,569 4,962 Shares issued in lieu of cash distributions 307 18 77 141 Shares redeemed (5,360) (12,525) (3,636) (7,734) - --------------------------------------------------------------------------------------------- TOTAL CLASS Y TRANSACTIONS 4,379 38,987 (990) (2,631) ============================================================================================= NET INCREASE (DECREASE) IN CAPITAL SHARES 4,437 39,620 (1,174) (2,755) =============================================================================================
(1) Commencement of operations. 78 5> Investment Security Transactions During the six months ended March 31, 2004, purchases of securities and proceeds from sales of securities, other than temporary investments in short-term securities, were as follows (000):
PURCHASES SALES --------------------------------------------------------------------------- Arizona Tax Free Fund $ 1,766 $ 3,376 California Intermediate Tax Free Fund 4,019 4,540 California Tax Free Fund 1,504 1,412 Colorado Intermediate Tax Free Fund 1,721 10,346 Colorado Tax Free Fund 2,035 2,804 Intermediate Tax Free Fund 40,186 55,195 Minnesota Intermediate Tax Free Fund 11,093 12,706 Minnesota Tax Free Fund 32,563 33,267 Missouri Tax Free Fund 3,333 11,279 Nebraska Tax Free Fund 3,439 1,334 Ohio Tax Free Fund 2,678 2,934 Oregon Intermediate Tax Free Fund 3,375 8,073 Short Tax Free Fund 89,836 26,519 Tax Free Fund 60,062 67,779
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 March 31, 2004, were as follows (000):
FEDERAL AGGREGATE AGGREGATE INCOME GROSS GROSS TAX APPRECIATION DEPRECIATION NET COST --------------------------------------------------------------------------------------- Arizona Tax Free Fund $ 2,048 $ -- $ 2,048 $ 19,137 California Intermediate Tax Free Fund 3,585 (17) 3,568 46,105 California Tax Free Fund 2,198 (7) 2,191 25,658 Colorado Intermediate Tax Free Fund 5,005 -- 5,005 55,566 Colorado Tax Free Fund 2,721 (12) 2,709 22,996 Intermediate Tax Free Fund 59,092 (561) 58,531 657,236 Minnesota Intermediate Tax Free Fund 17,858 (186) 17,672 250,145 Minnesota Tax Free Fund 11,490 (147) 11,343 167,606 Missouri Tax Free Fund 12,989 (35) 12,954 177,554 Nebraska Tax Free Fund 2,087 (17) 2,070 34,276 Ohio Tax Free Fund 1,817 -- 1,817 38,199 Oregon Intermediate Tax Free Fund 10,120 (42) 10,078 138,251 Short Tax Free Fund 10,797 (152) 10,645 432,453 Tax Free Fund 38,370 (958) 37,412 454,216
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 March 31, 2004, was 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 61.8% 53.8% 54.7% 59.0% AA/Aa 15.7 8.7 15.9 15.9 A/A 3.3 11.2 5.8 4.2 BBB/Baa 12.0 23.4 20.8 10.0 NR 7.2 2.9 2.8 10.9 --------------------------------------------------------------------------- 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 61.2% 60.4% 56.2% 35.6% 49.9% AA/Aa 14.3 14.6 24.2 22.3 45.6 A/A 8.6 10.2 7.6 17.6 1.1 BBB/Baa 13.1 9.5 4.1 5.0 1.8 NR 2.8 5.3 7.9 19.5 1.6 ----------------------------------------------------------------------------- 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 44.7% 57.1% 57.3% 41.5% 47.9% AA/Aa 41.9 37.2 34.1 26.3 11.6 A/A 6.1 4.7 3.5 14.3 15.1 BBB/Baa -- -- 2.7 12.1 15.1 B -- -- -- -- 0.1 NR 7.3 1.0 2.4 5.8 10.2 ----------------------------------------------------------------------------- 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. 79 8> Indemnifications The Funds enter into contracts that contain a variety of indemnifications. The Funds maximum exposure under these arrangements is unknown. However, the Funds have not had prior claims or losses pursuant to these contracts and expect the risk of loss to be remote. 9> 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 semiannual report (000):
ACQUIRED SHARES ISSUED TO FUNDS NET SHAREHOLDERS OF ACQUIRED FUND ACQUIRING FUND ASSETS ACQUIRED FUND - -------------------------------------------------------------------------------------------------------------------------------- Total Return Tax Exempt Bond Common Trust Fund Intermediate Tax Free Fund - Class Y $ 213,002(2) 19,435 Common Fund M (Joplin) Common Trust Fund Missouri Tax Free Fund - Class Y 32,466(3) 2,697 Intermediate Tax Exempt Bond Common Trust Fund Short Tax Free Fund - Class Y (1) 314,140 31,414 - -------------------------------------------------------------------------------------------------------------------------------- ACQUIRING FUND COMBINED TAX STATUS ACQUIRED FUND NET ASSETS NET ASSETS OF TRANSFER - ------------------------------------------------------------------------------------------- Total Return Tax Exempt Bond Common Trust Fund $ 516,336 $ 729,338 Non-taxable Common Fund M (Joplin) Common Trust Fund 164,002 196,468 Non-taxable Intermediate Tax Exempt Bond Common Trust Fund -- 314,140 Non-taxable - -------------------------------------------------------------------------------------------
(1) Shell portfolio. (2) Includes unrealized appreciation of $18,817. (3) Includes unrealized appreciation of $1,187. 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. 80 [GRAPHIC] 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. Retired; former Vice President of 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. 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, INC.'S BOARD OF DIRECTORS IS COMPRISED ENTIRELY OF INDEPENDENT DIRECTORS. [FIRST AMERICAN FUNDS(TM) LOGO] DIRECT FUND CORRESPONDENCE TO: FIRST AMERICAN FUNDS P.O. Box 1330 Minneapolis, MN 55440-1330 This report and the financial statements contained herein are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Further, there is no assurance that certain securities will remain in or out of each fund's portfolio. This report is for the information of shareholders of the First American Investment Funds, Inc. It may also be used as sales literature when preceded or accompanied by a current prospectus, which contains information concerning investment objectives, risks, and charges and expenses of the Funds. Read the prospectus carefully before investing. THE FIGURES IN THIS REPORT REPRESENT PAST PERFORMANCE AND DO NOT GUARANTEE FUTURE RESULTS. THE PRINCIPAL VALUE OF AN INVESTMENT AND INVESTMENT RETURN WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. INVESTMENT ADVISOR U.S. BANCORP ASSET MANAGEMENT, INC. 800 Nicollet Mall Minneapolis, Minnesota 55402 CO-ADMINISTRATORS U.S. BANCORP ASSET MANAGEMENT, INC. 800 Nicollet Mall Minneapolis, Minnesota 55402 U.S. BANCORP FUND SERVICES, LLC 615 East Michigan Street Milwaukee, Wisconsin 53202 CUSTODIAN U.S. BANK NATIONAL ASSOCIATION 180 East Fifth Street St. Paul, Minnesota 55101 DISTRIBUTOR QUASAR DISTRIBUTORS, LLC 615 East Michigan Street, 2nd floor Milwaukee, Wisconsin 53202 INDEPENDENT AUDITOR ERNST & YOUNG LLP 220 South Sixth Street Suite 1400 Minneapolis, Minnesota 55402 COUNSEL DORSEY & WHITNEY LLP 50 South Sixth Street Suite 1500 Minneapolis, Minnesota 55402 FIRST AMERICAN FUNDS P.O. Box 1330 Minneapolis, MN 55440-1330 In an attempt to reduce shareholder costs and help eliminate duplication, First American Funds will try to limit their mailing to one report for each address that lists one or more shareholders with the same last name. If you would like additional copies, please call First American Investor Services at 800.677.FUND. Visit us at firstamericanfunds.com. 0138-04 5/2004 SAR-TAXFREE ITEM 2--CODE OF ETHICS - Did registrant adopt a code of ethics, as of the end of the period covered by this report, that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party? If not, why not? Briefly describe any amendments or waivers that occurred during the period. State here if code of ethics/amendments/waivers are on website and give website address. State here if fund will send code of ethics to shareholders without charge upon request. RESPONSE: Not applicable to semi-annual report. ITEM 3--AUDIT COMMITTEE FINANCIAL EXPERT - Did the registrant's board of directors determine that the registrant either: (i) has at least one audit committee financial expert serving on its audit committee; or (ii) does not have an audit committee financial expert serving on its audit committee? If yes, disclose name of financial expert and whether he/she is "independent," (fund may, but is not required, to disclose name/independence of more than one financial expert) If no, explain why not. RESPONSE: Not applicable to semi-annual report. ITEM 4--PRINCIPAL ACCOUNTANT FEES AND SERVICES - Disclose annually only (not answered until December 15, 2003). RESPONSE: Not applicable to semi-annual report. (a) Audit Fees - Disclose aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant's annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years. (b) Audit-Related Fees - Disclose aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant's financial statements and are not reported under paragraph (a) of this Item. Registrants shall describe the nature of the services comprising the fees disclosed under this category. (c) Tax Fees - Disclose aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning. Registrants shall describe the nature of the services comprising the fees disclosed under this category. (d) All Other Fees - Disclose aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item. Registrants shall describe the nature of the services comprising the fees disclosed under this category. (e)(1) Disclose the audit committee's pre-approval policies and procedures pursuant to paragraph (c)(7) of Rule 2-01 of Regulation S-X. (e)(2) Disclose the percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X. (f) If greater than 50%, disclose the percentage of hours expended on the principal accountant's engagement to audit the registrant's financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant's full-time, permanent employees. (g) Disclose the aggregate non-audit fees billed by the registrant's accountant for services rendered to the registrant, and rendered to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant. (h) Disclose whether the registrant's audit committee has considered whether the provision of non-audit services that were rendered to the registrant's investment adviser (not including any subadviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant's independence. ITEM 5--AUDIT COMMITTEE OF LISTED REGISTRANTS RESPONSE: Not applicable. ITEM 6 - Reserved. ITEM 7--DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES - For closed-end funds that contain voting securities in their portfolio, describe the policies and procedures that it uses to determine how to vote proxies relating to those portfolio securities. RESPONSE: Not applicable. ITEM 8 - Reserved. ITEM 9--CONTROLS AND PROCEDURES (a) Disclose the conclusions of the registrant's principal executive officer or officers and principal financial officer or officers, or persons performing similar functions, about the effectiveness of the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR 270.30a-3(c))) based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph. RESPONSE: The registrant's Principal Executive Officer and Principal Financial Officer have evaluated the registrant's disclosure controls and procedures within 90 days of the date of this filing and have concluded that the registrant's disclosure controls and procedures were effective, as of that date, in ensuring that information required to be disclosed by the registrant in this Form N-CSR was recorded, processed, summarized and reported timely. Notwithstanding this conclusion, the registrant's Principal Executive Officer and Principal Financial Officer seek continuous improvements to the registrant's disclosure controls and procedures. (b) Disclose any change in the registrant's internal control over financial reporting (as defined in Rule 30a-3(c) under the Act (17 CFR 270.30a-3(c))) that occurred during the registrant's last fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. RESPONSE: There were no changes in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 10 - EXHIBITS 10(a) - Attach code of ethics or amendments/waivers, unless code of ethics or amendments/waivers is on website or offered to shareholders upon request without charge. RESPONSE: Not applicable to semi-annual report. 10(b) - Attach certifications (4 in total pursuant to Sections 302 and 906 for PEO/PFO). RESPONSE: Attached hereto. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. First American Investment Funds, Inc. By: /s/ Thomas S. Schreier, Jr. --------------------------- Thomas S. Schreier, Jr. President Date: June 4, 2004 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ Thomas S. Schreier, Jr. --------------------------- Thomas S. Schreier, Jr. President Date: June 4, 2004 By: /s/ Joseph M. Ulrey III --------------------------- Joseph M. Ulrey III Treasurer Date: June 4, 2004 EX-99.CERT 2 a2137245zex-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: June 4, 2004 /s/ Thomas S. Schreier, Jr. - ---------------------------- Thomas S. Schreier, Jr. President I, Joseph M. Ulrey III, 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: June 4, 2004 /s/ Joseph M. Ulrey III - ---------------------------- Joseph M. Ulrey III Treasurer EX-99.906CERT 3 a2137245zex-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 "Fund") 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: June 4, 2004 By: /s/ Joseph M. Ulrey III ---------------------------- Joseph M. Ulrey III Treasurer Date: June 4, 2004 -----END PRIVACY-ENHANCED MESSAGE-----