N-CSR 1 a04-11512_7ncsr.htm N-CSR

 

 

 

OMB APPROVAL

 

 

OMB Number: 3235-0570

 

 

Expires: November 30, 2005

 

 

Estimated average burden
hours per response. . . . 5.0

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-CSR

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

 

Investment Company Act file number    811-05309

 

First American Investment Funds, Inc.

(Exact name of registrant as specified in charter)

 

800 Nicollet Mall, Minneapolis, MN

 

55402

(Address of principal executive offices)

 

(Zip code)

 

Charles D. Gariboldi  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

 

Date of reporting period:  September 30, 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

 


 

2004
Annual Report

 

 

 

INDEX
FUNDS

 

 

 

 

 


 

First American Index Funds

 

An index fund is a mutual fund that seeks to mirror, as closely as possible, the returns of a market index. It does so by purchasing almost all of the holdings in the index in roughly the same percentages. An equity index measures the collective value of a group of stocks in a specific segment of the marketplace. The most commonly known market index is the S&P 500 Index.

 

 

TABLE OF CONTENTS

 

Message to Shareholders

 

Report of Independent Registered Public Accounting Firm

 

Schedule of Investments

 

Statements of Assets and Liabilities

 

Statements of Operations

 

Statements of Changes in Net Assets

 

Financial Highlights

 

Notes to Financial Statements

 

Notice to Shareholders

 

 

Mutual fund investing involves risk; principal loss is possible.

 

 

NOT FDIC INSURED  NO BANK GUARANTEE  MAY LOSE VALUE

 


 

Message to SHAREHOLDERS  November 15, 2004

 

Dear Shareholders:

 

We invite you to take a few minutes to review the results of the fiscal year ended September 30, 2004.

 

This report includes comparative performance graphs and tables, portfolio commentaries, complete listings of portfolio holdings, and additional fund information. We hope you will find this helpful in monitoring your investment portfolio.

 

Also, through our website, firstamericanfunds.com, we provide quarterly performance fact sheets on all First American funds, the economic outlook as viewed by our senior investment officers, and other information about fund investments and portfolio strategies.

 

Please contact your financial professional if you have questions about First American Funds or contact First American Investor Services at 800.677.FUND.

 

We appreciate your investment with First American Funds and look forward to serving your financial needs in the future.

 

 

Sincerely,

 

 

/s/ Virginia L. Stringer

 

/s/ Thomas S. Schreier

 

Virginia L. Stringer

Thomas S. Schreier, Jr.

Chairperson of the Board

President

First American Investment Funds, Inc.

First American Investment Funds, Inc.

 

1


Equity Index fund

Investment Objective: to provide investment results that correspond to the performance of the Standard & Poor's 500 Composite Index (S&P 500 Composite Index)

How did the Fund perform for the fiscal year ended September 30, 2004?

The First American Equity Index Fund, Class Y shares, returned 13.45% for the fiscal year ended September 30, 2004 (Class A shares returned 13.12% at net asset value). By comparison, the Fund's benchmark, the Standard and Poor's 500 Composite Index*, returned 13.87% for the same period.

How did general economic and market conditions affect performance?

The fiscal year saw the continuation of a rising economic tide. While stocks in general were up in excess of their long-term historical averages, small- and mid- capitalization stocks generally outperformed large- capitalization stocks as they were more leveraged to the improving economy. The same held true for value strategies vs. growth strategies. The Standard and Poor's 500 Composite Index, constructed of large-cap stocks, lagged slightly behind the mid- and small-cap indexes, but still experienced positive returns of more than 13%. Because the Index reflects nearly a 50% value, 50% growth split, the Index maintains steadier performance during outperformance in either style.

As the year progressed, increasing oil prices and hints of wider-spread inflation started to weigh on the market and led the Federal Reserve to increase interest rates for the first time since May 2000. During the second half of the year, election rhetoric and the uncertainty of the election's outcome, coupled with decelerating company earnings growth rates, caused the market to "move sideways" – to neither grow nor decline much.

Top 10 Companies as of September 30, 20041  (% of net assets)  
General Electric     3.4 %  
Exxon Mobil     3.0 %  
Microsoft     2.9 %  
Pfizer     2.2 %  
Citigroup     2.2 %  
Wal-Mart Stores     2.2 %  
Bank of America     1.7 %  
American International Group     1.7 %  
Johnson & Johnson     1.6 %  
IBM     1.4 %  

 

Fund Overview

The Fund is invested to replicate the Standard and Poor's 500 Stock Index as closely as possible with consideration to turnover costs and fees. As a result, the Fund performed very similarly to that Index. The Index includes 500 leading companies in the leading industries of the U.S. economy and covers about 80% of the dollar value of stocks in the U.S. market. The Fund strives to reflect the changes to the Index with sensitivity to turnover costs.

Like the Index, the Fund benefited from a 3% allocation to the materials sector as the demand for products produced by the companies in this sector grew with the surging economy. A 7% weighting in the energy sector was also a contributor to performance as the demand for energy outstripped the normal supply during increased construction over the last year and increased production of goods and services. As consumers spent more money and companies grew, the Fund benefited from its 11% position in the consumer discretionary sector. The Fund had a 12% position in industrials, which also had a positive effect on performance.

The technology sector for large-capitalization companies was weaker than investors hoped for. The Fund had a 16% weighting in that sector, in line with the benchmark, which detracted from the Fund's performance. For the next fiscal year, we believe that large-cap stocks will continue to be an important part of a diversified portfolio.

*Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects.

Sector Allocation as of September 30, 20041  (% of net assets)  
Sector   Fund2    S&P 500 Composite Index3   
Financials     20.5 %     20.6 %  
Information Technology     16.3 %     15.7 %  
Healthcare     12.9 %     13.1 %  
Industrials     11.5 %     11.7 %  
Consumer Staples     10.6 %     10.7 %  
Consumer Discretionary     10.4 %     11.1 %  
Energy     7.3 %     7.4 %  
Telecommunication Services     3.7 %     3.7 %  
Materials     3.1 %     3.1 %  
Utilities     2.8 %     2.9 %  

 

1Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security.

2The percentages shown represent the allocation by industry as a percent of net assets of the Fund.

3The percentages shown represent the percent allocation by industry of the index.

FIRST AMERICAN FUNDS Annual Report 2004

2


Equity Index fund continued

Annualized Performance1  as of September 30, 2004

                Since Inception  
    1 year   5 years   10 years   2/1/1999   9/24/2001  
Average annual return with sales charge (POP)      
Class A     6.89 %     (3.04 %)     9.81 %     -       -    
Class B     7.31 %     (3.03 %)     9.61 %     -       -    
Class C     11.28 %     (2.66 %)     -       (2.23 %)     -    
Average annual return without sales charge (NAV)      
Class A     13.12 %     (1.93 %)     10.43 %     -       -    
Class B     12.31 %     (2.66 %)     9.61 %     -       -    
Class C     12.28 %     (2.66 %)     -       (2.23 %)     -    
Class R4      13.00 %     -       -       -       4.68 %  
Class Y     13.45 %     (1.68 %)     10.71 %     -       -    
S&P 500 Composite Index3      13.87 %     (1.31 %)     11.08 %     (0.87 %)     5.31 %  

 

Value of a $10,000 Investment1, 2  as of September 30, 2004

The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.

1  Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Performance reflects voluntary fee waivers in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available.

Total returns at net asset value ("NAV") reflect performance over the time period indicated without including the Fund's maximum sales charge and assume reinvestment of all distributions at NAV.

Total returns at public offering price ("POP") reflect performance over the time period indicated including a maximum front-end sales charge of 5.50% for Class A shares and the maximum contingent deferred sales charge ("CDSC") for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.

2  Performance for Class B, Class C, and Class R shares is not presented. Performance for these classes will vary due to different expense structures.

3  An unmanaged index of large-capitalization stocks that includes a representative sample of 500 leading companies in leading industries of the U.S. economy. Although the S&P 500 focuses on the large-cap segment of the market, with over 80% coverage of U.S. equities, it also serves as a proxy for the total market.

4  Prior to July 1, 2004, Class R shares were designated Class S shares, which had lower fees and expenses. Performance information prior to that date is based on the performance of the Class S shares. If current fees and expenses had been in effect for the entire period presented, performance would have been lower. Please refer to the prospectus for details.

FIRST AMERICAN FUNDS Annual Report 2004

3


Equity Index fund continued

Expense Example

As a shareholder of the Equity Index Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from April 1, 2004, to September 30, 2004.

Actual Expenses

For each class, the first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

For each class, the second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table for each class is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Expense Examples

    Beginning Account
Value (4/1/2004)		   Ending Account
Value (9/30/2004)		   Expenses Paid During
Period1 (4/1/2004 to
9/30/2004)		  
Class A Actual   $ 1,000.00     $ 994.80     $ 3.09    
Class A Hypothetical (5% return before expenses)   $ 1,000.00     $ 1,021.90     $ 3.13    
Class B Actual   $ 1,000.00     $ 991.50     $ 6.82    
Class B Hypothetical (5% return before expenses)   $ 1,000.00     $ 1,018.15     $ 6.91    
Class C Actual   $ 1,000.00     $ 991.50     $ 6.82    
Class C Hypothetical (5% return before expenses)   $ 1,000.00     $ 1,018.15     $ 6.91    
Class R Actual2    $ 1,000.00     $ 994.20     $ 3.72    
Class R Hypothetical (5% return before expenses)2    $ 1,000.00     $ 1,021.27     $ 3.77    
Class Y Actual   $ 1,000.00     $ 996.50     $ 1.85    
Class Y Hypothetical (5% return before expenses)   $ 1,000.00     $ 1,023.15     $ 1.87    

 

1Expenses are equal to the Fund's annualized expense ratio of 0.62%, 1.37%, 1.37%, 0.75%, and 0.37% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent half-year/366 days (to reflect the one-half year period).

2Prior to July 1, 2004, Class R had a different expense ratio. Had the current expense ratio been in place for the most recent one-half year, the actual and hypothetical expenses would have been $4.34 and $4.39, respectively.

FIRST AMERICAN FUNDS Annual Report 2004

4


Mid Cap Index fund

Investment Objective: to provide investment results that correspond to the performance of the Standard & Poor's MidCap 400 Composite Index (S&P MidCap 400 Index)

How did the Fund perform for the fiscal year ended September 30, 2004?

The First American Mid Cap Index Fund, Class Y shares, returned 16.97% for the fiscal year ended September 30, 2004 (Class A shares returned 16.80% at net asset value). By comparison, the Fund's benchmark, the Standard and Poor's MidCap 400 Index*, returned 17.55% for the same period.

How did general economic and market conditions affect performance?

The fiscal year saw the continuation of a rising economic tide. While stocks in general were up in excess of their long-term historical averages, small- and mid- capitalization stocks generally outperformed large- capitalization stocks as they were more leveraged to the improving economy. The Standard and Poor's MidCap 400 Index, constructed of stocks in the middle range of company size (companies with market capitalizations roughly in the range of $1 billion to $5 billion) reflected this as it returned more than 17% for the fiscal year. The same outperformance held true for value strategies vs. growth strategies. However, this did not add, or detract from the Index significantly, as it is positioned closely to a 50% growth, 50% value split.

As the year progressed, increasing oil prices and hints of wider-spread inflation started to weigh on the market and led the Federal Reserve to increase interest rates for the first time since May 2000. During the second half of the year, election rhetoric and the uncertainty of the election's outcome, coupled with decelerating company earnings growth rates, caused the market to "move sideways" – to neither grow nor decline much.

Fund Overview

The Fund is invested to replicate the Standard and Poor's MidCap 400 Index as closely as possible with consideration to turnover costs and fees. As a result, the Fund performed very similarly to the Index. The Index includes stocks that reflect the risk and return characteristics of the broader mid-cap universe. Mid-cap stocks are now being recognized as an independent asset class and this Index covers approximately 7% of the U.S. equities market.

Over the fiscal year, the largest contributor to performance for the Fund and the Index was the financials sector. Another contributor to performance was the consumer discretionary sector, which enjoyed strong returns as the economy expanded and consumers spent more money than they had in the last few years. Also, the Fund's allocation to the energy sector experienced a surge in returns as the demand for energy outstripped the supply.

The Fund's third largest sector allocation was to the information technology sector, which posted the least amount of return compared to the rest of the sectors. The telecommunications sector, which the Fund had a small position in, also experienced smaller returns compared to the other sectors in the Index. For the next fiscal year, we believe that mid-cap stocks will continue to be an important part of a diversified portfolio.

*Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects.

Top 10 Companies as of September 30, 20041  (% of net assets)  
Washington Post, Cl B     0.9 %  
XTO Energy     0.9 %  
Murphy Oil     0.8 %  
D.R. Horton     0.8 %  
Lennar     0.8 %  
Harmon International Industries     0.7 %  
L-3 Communications Holdings     0.7 %  
National Commerce Financial     0.7 %  
Weatherford International     0.7 %  
Fidelity National Financial     0.7 %  

 

Sector Allocation as of September 30, 20041  (% of net assets)  
Sector   Fund2    S&P MidCap 400 Index3   
Financials     18.8 %     19.4 %  
Consumer Discretionary     18.2 %     18.5 %  
Information Technology     14.1 %     14.0 %  
Industrials     12.5 %     12.7 %  
Healthcare     10.0 %     10.2 %  
Energy     8.1 %     8.3 %  
Utilities     6.7 %     6.9 %  
Materials     4.8 %     4.9 %  
Consumer Staples     4.4 %     4.5 %  
Telecommunication Services     0.6 %     0.6 %  

 

1Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security.

2The percentages shown represent the allocation by industry as a percent of net assets of the Fund.

3The percentages shown represent the percent allocation by industry of the index.

FIRST AMERICAN FUNDS Annual Report 2004

5


Mid Cap Index fund continued

Annualized Performance1  as of September 30, 2004

        Since Inception  
    1 year   11/4/1999   11/27/2000   9/24/2001  
Average annual return with sales charge (POP)      
Class A     10.41 %     6.54 %     -       -    
Class B     10.88 %     6.71 %     -       -    
Class C     14.83 %     -       -       11.78 %  
Average annual return without sales charge (NAV)      
Class A     16.80 %     7.77 %     -       -    
Class B     15.88 %     7.02 %     -       -    
Class C     15.83 %     -       -       11.78 %  
Class R4      16.62 %     -       4.38 %     -    
Class Y     16.97 %     8.02 %     -       -    
S&P MidCap 400 Index3      17.55 %     9.06 %     5.49 %     13.62 %  

 

Value of a $10,000 Investment1, 2  as of September 30, 2004

The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.

1  Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Performance reflects voluntary fee waivers in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available.

Stocks of mid-capitalization companies may be slightly less volatile than those of small-capitalization companies, but they still involve substantial risk and may be subject to increased volatility and more price fluctuation than large-capitalization companies.

Total returns at net asset value ("NAV") reflect performance over the time period indicated without including the Fund's maximum sales charge and assume reinvestment of all distributions at NAV.

Total returns at public offering price ("POP") reflect performance over the time period indicated including a maximum front-end sales charge of 5.50% for Class A shares and the maximum contingent deferred sales charge ("CDSC") for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.

On September 24, 2001, the Mid Cap Index Fund became the successor fund by merging with the Firstar MidCap Index Fund, a series of the Firstar Funds, Inc. Prior to the merger, the First American Fund had no assets or liabilities. Performance presented prior to September 24, 2001, represents that of the Firstar MidCap Index Fund.

2  Performance for Class B, Class C, and Class R shares is not presented. Performance for these classes will vary due to different expense structures.

3  An unmanaged, capitalization-weighted index that represents the aggregate market value of the common equity of 400 companies chosen by Standard & Poor's with a median capitalization of approximately $700 million to measure the performance of the mid-range sector of the U.S. stock market.

4  Prior to July 1, 2004, Class R shares were designated Class S shares, which had lower fees and expenses. Performance information prior to that date is based on the performance of the Class S shares. If current fees and expenses had been in effect for the entire period presented, performance would have been lower. Please refer to the prospectus for details.

FIRST AMERICAN FUNDS Annual Report 2004

6


Mid Cap Index fund continued

Expense Example

As a shareholder of the Mid Cap Index Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from April 1, 2004, to September 30, 2004.

Actual Expenses

For each class, the first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

For each class, the second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table for each class is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Expense Examples

    Beginning Account
Value (4/1/2004)		   Ending Account
Value (9/30/2004)		   Expenses Paid During
Period1 (4/1/2004 to
9/30/2004)		  
Class A Actual   $ 1,000.00     $ 985.80     $ 3.72    
Class A Hypothetical (5% return before expenses)   $ 1,000.00     $ 1,021.25     $ 3.79    
Class B Actual   $ 1,000.00     $ 981.80     $ 7.43    
Class B Hypothetical (5% return before expenses)   $ 1,000.00     $ 1,017.50     $ 7.57    
Class C Actual   $ 1,000.00     $ 981.90     $ 7.43    
Class C Hypothetical (5% return before expenses)   $ 1,000.00     $ 1,017.50     $ 7.57    
Class R Actual2    $ 1,000.00     $ 984.20     $ 4.34    
Class R Hypothetical (5% return before expenses)2    $ 1,000.00     $ 1,020.62     $ 4.42    
Class Y Actual   $ 1,000.00     $ 986.20     $ 2.48    
Class Y Hypothetical (5% return before expenses)   $ 1,000.00     $ 1,022.50     $ 2.53    

 

1Expenses are equal to the Fund's annualized expense ratio of 0.75%, 1.50%, 1.50%, 0.88%, and 0.50% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent half-year/366 days (to reflect the one-half year period).

2Prior to July 1, 2004, Class R had a different expense ratio. Had the current expense ratio been in place for the most recent one-half year, the actual and hypothetical expenses would have been $4.96 and $5.05, respectively.

FIRST AMERICAN FUNDS Annual Report 2004

7


Small Cap Index fund

Investment Objective: to provide investment results that correspond to the performance of the Russell 2000 Index

How did the Fund perform for the fiscal year ended September 30, 2004?

The First American Small Cap Index Fund, Class Y shares, returned 18.02% for the fiscal year ended September 30, 2004 (Class A shares returned 17.71% at net asset value). By comparison, the Fund's benchmark, the Russell 2000 Index*, returned 18.77% for the same period.

How did general economic and market conditions affect performance?

The fiscal year saw the continuation of a rising economic tide. While stocks in general were up in excess of their long-term historical averages, small- and mid- capitalization stocks generally outperformed large- capitalization stocks as they were more leveraged to the improving economy. The Russell 2000 Index, constructed of small-capitalization stocks, reflected this as it returned more than 18% for the year. The same outperformance held true for value strategies vs. growth. However, this did not add or detract from the Index significantly because every June the Index rebalances back to a 50% growth stocks and 50% value stocks strategy.

As the year progressed, increasing oil prices and hints of wider-spread inflation started to weigh on the market and led the Federal Reserve to increase interest rates for the first time since May 2000. During the second half of the year, election rhetoric and the uncertainty of the election's outcome, coupled with decelerating company earnings growth rates, caused the market to "move sideways" – to neither grow nor decline much. Regardless, the small-capitalization companies saw a surge in profits as the demand for materials and energy rose and the economy expanded.

Top 10 Companies as of September 30, 20041  (% of net assets)  
Terex     0.2 %  
Valeant Pharmaceuticals International     0.2 %  
IMC Global     0.2 %  
Tesoro Petroleum     0.2 %  
Cytec Industries     0.2 %  
Energen     0.2 %  
Plains Exploration & Production     0.2 %  
Healthcare Realty Trust (REIT)     0.2 %  
BancorpSouth     0.2 %  
FMC     0.2 %  

 

Fund Overview

The Fund is invested to mirror the stocks of the Russell 2000 Index as closely as possible with sensitivity to turnover costs. As a result, the overall total return of the Fund for the fiscal year was very similar to that of the Index. Like the Index, the Fund benefited from its 15% weighting in the consumer discretionary sector as the economy was expanding and consumers spent more money during the fiscal year than they had in each of the past several years. In addition, the Fund's exposure to materials, with a 6% weighting, and to energy, with a 6% weighting, added to the positive return of the Fund during a time when the demand for materials and energy outstripped the supply. The largest contributor to performance was the financials sector. It was also the Fund's largest sector weighting at 22%.

The largest detractor from performance was the information technology sector. The Fund held a 17% position as the sector posted disappointing results across the market. (The small-cap stocks in that sector did fare better than the large-caps.) Another detractor was the telecommunication services sector, which returned slightly negative results. The Fund only held a 1% position in that sector. We believe that as the economy rolls into its next phase small-cap stocks will continue to be an important part of a diversified portfolio.

*Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects.

Sector Allocation as of September 30, 20041  (% of net assets)  
Sector   Fund2    Russell 2000 Index3   
Financials     22.2 %     22.5 %  
Information Technology     16.8 %     17.0 %  
Consumer Discretionary     14.7 %     14.8 %  
Industrials     13.7 %     14.0 %  
Healthcare     12.8 %     12.9 %  
Materials     6.2 %     6.3 %  
Energy     5.5 %     5.5 %  
Utilities     3.3 %     3.3 %  
Consumer Staples     2.7 %     2.7 %  
Telecommunication Services     0.9 %     0.9 %  

 

1Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security.

2The percentages shown represent the allocation by industry as a percent of net assets of the Fund.

3The percentages shown represent the percent allocation by industry of the index.

FIRST AMERICAN FUNDS Annual Report 2004

8


Small Cap Index fund continued

Annualized Performance1  as of September 30, 2004

            Since Inception  
    1 year   5 years   12/30/1998   12/11/2000   9/24/2001  
Average annual return with sales charge (POP)  
Class A     11.21 %     7.96 %     6.53 %     -       -    
Class B     11.83 %     -       -       4.40 %     -    
Class C     15.77 %     -       -       -       12.02 %  
Average annual return without sales charge (NAV)  
Class A     17.71 %     9.19 %     7.58 %     -       -    
Class B     16.83 %     -       -       5.10 %     -    
Class C     16.77 %     -       -       -       12.02 %  
Class R4      17.65 %     9.09 %     7.47 %     -       -    
Class Y     18.02 %     9.44 %     7.82 %     -       -    
Russell 2000 Index3      18.77 %     7.41 %     7.30 %     5.75 %     14.71 %  

 

Value of a $10,000 Investment1, 2  as of September 30, 2004

The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.

1  Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Performance reflects voluntary fee waivers in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available.

Stocks of small-capitalization companies involve substantial risk. These stocks historically have experienced greater price volatility than stocks of larger companies, and they may be expected to do so in the future.

Total returns at net asset value ("NAV") reflect performance over the time period indicated without including the Fund's maximum sales charge and assume reinvestment of all distributions at NAV.

Total returns at public offering price ("POP") reflect performance over the time period indicated including a maximum front-end sales charge of 5.50% for Class A shares and the maximum contingent deferred sales charge ("CDSC") for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.

On September 24, 2001, the Small Cap Index Fund became the successor fund by merging with the Firstar Small Cap Index Fund, a series of the Firstar Funds, Inc. Prior to the merger, the First American Fund had no assets or liabilities. Performance presented prior to September 24, 2001, represents that of the Firstar Small Cap Index Fund. The Firstar Small Cap Index Fund was organized on December 11, 2000, and, prior to that, was a separate series of Mercantile Mutual Funds, Inc.

2  Performance for Class B, Class C, and Class R shares is not presented. Performance for these classes will vary due to different expense structures.

3  An unmanaged index that measures the performance of the 2,000 smallest companies in the Russell 3000 Index. The Russell 3000 Index measures the performance of the 3,000 largest U.S. companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market.

4  Prior to July 1, 2004, Class R shares were designated Class S shares, which had lower fees and expenses. Performance information prior to that date is based on the performance of the Class S shares. If current fees and expenses had been in effect for the entire period presented, performance would have been lower. Please refer to the prospectus for details.

FIRST AMERICAN FUNDS Annual Report 2004

9


Small Cap Index fund continued

Expense Example

As a shareholder of the Small Cap Index Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from April 1, 2004, to September 30, 2004.

Actual Expenses

For each class, the first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

For each class, the second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table for each class is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Expense Examples

    Beginning Account
Value (4/1/2004)		   Ending Account
Value (9/30/2004)		   Expenses Paid During
Period1 (4/1/2004 to
9/30/2004)		  
Class A Actual   $ 1,000.00     $ 971.40     $ 4.58    
Class A Hypothetical (5% return before expenses)   $ 1,000.00     $ 1,020.35     $ 4.70    
Class B Actual   $ 1,000.00     $ 967.60     $ 8.26    
Class B Hypothetical (5% return before expenses)   $ 1,000.00     $ 1,016.60     $ 8.47    
Class C Actual   $ 1,000.00     $ 967.90     $ 8.27    
Class C Hypothetical (5% return before expenses)   $ 1,000.00     $ 1,016.60     $ 8.47    
Class R Actual2    $ 1,000.00     $ 970.70     $ 5.20    
Class R Hypothetical (5% return before expenses)2    $ 1,000.00     $ 1,019.72     $ 5.33    
Class Y Actual   $ 1,000.00     $ 972.70     $ 3.35    
Class Y Hypothetical (5% return before expenses)   $ 1,000.00     $ 1,021.60     $ 3.44    

 

1Expenses are equal to the Fund's annualized expense ratio of 0.93%, 1.68%, 1.68%, 1.06%, and 0.68% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent half-year/366 days (to reflect the one-half year period).

2Prior to July 1, 2004, Class R had a different expense ratio. Had the current expense ratio been in place for the most recent one-half year, the actual and hypothetical expenses would have been $5.81 and $5.96, respectively.

FIRST AMERICAN FUNDS Annual Report 2004

10


Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors
First American Investment Funds, Inc.

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of the Equity Index, Mid Cap Index, and Small Cap Index Funds (constituting First American Investment Funds, Inc.) (the "Funds") as of September 30, 2004, and the related statements of operations, statements of changes in net assets and the financial highlights for each of the periods indicated therein, except as noted below. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The financial highlights of the Mid Cap Index and Small Cap Index Funds for the periods presented through October 31, 2000, were audited by other auditors whose reports dated December 29, 2000, and January 21, 2000, expressed unqualified opinions on those financial highlights.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights. Our procedures included confirmation of securities owned as of September 30, 2004, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights audited by us as referred to above present fairly, in all material respects, the financial position of the funds listed above of the First American Investment Funds, Inc. at September 30, 2004, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended and their financial highlights for each of the periods indicated herein in conformity with U.S. generally accepted accounting principles.

Minneapolis, Minnesota
November 12, 2004

FIRST AMERICAN FUNDS Annual Report 2004

11


Schedule of Investments September 30, 2004

Equity Index Fund

DESCRIPTION   SHARES   VALUE (000)  
Common Stocks – 99.1%  
Consumer Discretionary – 10.4%  
AutoNation* (a)     63,170     $ 1,079    
Autozone* (a)     18,994       1,467    
Bed Bath & Beyond* (a)     65,823       2,443    
Best Buy     71,623       3,885    
Big Lots* (a)     25,598       313    
Black & Decker (a)     17,429       1,350    
Boise Cascade     19,245       640    
Brunswick     20,653       945    
Carnival (a)     138,973       6,572    
Centex (a)     27,084       1,367    
Circuit City Stores     45,805       703    
Clear Channel Communications     132,595       4,133    
Coach*     40,358       1,712    
Comcast, Cl A* (a)     494,865       13,975    
Cooper Tire & Rubber     16,239       328    
Dana     32,596       577    
Darden Restaurants     36,139       843    
Delphi     122,883       1,142    
Dillards, Cl A     18,202       359    
Dollar General     74,345       1,498    
Dow Jones & Company (a)     17,862       725    
Eastman Kodak (a)     62,841       2,025    
Family Dollar Stores     36,938       1,001    
Federated Department Stores     40,655       1,847    
Ford Motor (a)     401,796       5,645    
Fortune Brands (a)     31,855       2,360    
Gannett (a)     59,794       5,008    
Gap (a)     197,891       3,701    
General Motors (a)     124,250       5,278    
Genuine Parts     38,378       1,473    
Goodyear Tire & Rubber* (a)     38,453       413    
Harley-Davidson (a)     65,012       3,864    
Harrah's Entertainment (a)     24,552       1,301    
Hasbro (a)     38,097       716    
Hilton Hotels     83,688       1,577    
Home Depot (a)     484,706       19,000    
International Game Technology     76,500       2,750    
Interpublic Group of Companies* (a)     86,061       911    
J.C. Penney     60,912       2,149    
Johnson Controls (a)     41,596       2,363    
Jones Apparel Group (a)     27,759       994    
KB HOME (a)     10,313       871    
Knight-Ridder     17,633       1,154    
Kohl's* (a)     74,453       3,588    
Leggett & Platt (a)     42,197       1,186    
Limited (a)     103,812       2,314    
Liz Claiborne (a)     24,074       908    
Lowe's (a)     172,551       9,378    
Marriott International, Cl A (a)     49,831       2,589    
Mattel (a)     93,045       1,687    
May Department Stores     61,940       1,588    
Maytag (a)     17,062       313    
McDonald's     277,698       7,784    
McGraw-Hill (a)     41,936       3,342    
Meredith     9,157       471    
New York Times, Cl A     32,775       1,282    
Newell Rubbermaid (a)     60,178       1,206    
Nike, Cl B (a)     57,849       4,559    
Nordstrom     30,318       1,159    
Office Depot* (a)     67,954       1,021    
Omnicom Group (a)     41,681       3,045    
Pulte     29,870       1,833    
RadioShack     36,313       1,040    
Reebok International     13,213       485    
Sears Roebuck and Company (a)     55,066       2,194    

 

Equity Index Fund (continued)

DESCRIPTION   SHARES   VALUE (000)  
Sherwin Williams     32,012     $ 1,407    
Snap-On     12,798       353    
Stanley Works (a)     18,659       794    
Staples (a)     110,151       3,285    
Starbucks* (a)     87,386       3,973    
Starwood Hotels & Resorts Worldwide (a)     45,200       2,098    
Target (a)     198,945       9,002    
Tiffany & Company (a)     32,351       994    
Time Warner* (a)     1,005,238       16,225    
TJX (a)     109,024       2,403    
Toys 'R' Us* (a)     46,791       830    
Tribune (a)     72,831       2,997    
Univision Communications, Cl A* (a)     70,413       2,226    
V.F. (a)     24,208       1,197    
Viacom, Cl B (a)     385,878       12,950    
Visteon (a)     28,607       229    
Walt Disney* (a)     448,223       10,107    
Wendy's International     24,887       836    
Whirlpool (a)     15,098       907    
Yum! Brands (a)     63,754       2,592    
      240,834    
Consumer Staples – 10.6%      
Adolph Coors     7,976       542    
Alberto-Culver, Cl B     19,336       841    
Albertson's (a)     80,472       1,926    
Altria Group     447,691       21,059    
Anheuser-Busch (a)     178,390       8,911    
Archer-Daniels-Midland     142,943       2,427    
Avon Products (a)     103,606       4,526    
Brown-Forman, Cl B     26,616       1,219    
Campbell Soup     90,034       2,367    
Clorox     46,733       2,491    
Coca-Cola     537,731       21,536    
Coca-Cola Enterprises     101,237       1,913    
Colgate-Palmolive     117,202       5,295    
ConAgra Foods (a)     117,773       3,028    
Costco Wholesale (a)     100,250       4,166    
CVS     87,445       3,684    
General Mills (a)     82,685       3,713    
Gillette (a)     221,040       9,226    
H.J. Heinz     77,130       2,778    
Hershey Foods (a)     57,294       2,676    
Kellogg (a)     90,972       3,881    
Kimberly-Clark     110,627       7,145    
Kroger* (a)     164,798       2,558    
McCormick     30,590       1,050    
Pepsi Bottling     58,873       1,598    
PepsiCo     376,580       18,321    
Procter & Gamble     562,578       30,447    
Reynolds American (a)     34,110       2,321    
Safeway* (a)     98,365       1,899    
Sara Lee     174,534       3,990    
SUPERVALU     29,361       809    
Sysco     142,480       4,263    
UST (a)     35,826       1,442    
Walgreen (a)     221,602       7,940    
Wal-Mart Stores     935,567       49,772    
Winn-Dixie Stores* (a)     30,883       95    
Wrigley, William Jr. (a)     49,363       3,125    
      244,980    
Energy – 7.3%      
Amerada Hess (a)     19,730       1,756    
Anadarko Petroleum     54,724       3,631    
Apache     70,968       3,556    
Ashland     14,969       839    
Baker Hughes (a)     73,406       3,209    

 

The accompanying notes are an integral part of the financial statements.

FIRST AMERICAN FUNDS Annual Report 2004

12


Equity Index Fund (continued)

DESCRIPTION   SHARES   VALUE (000)  
BJ Services (a)     36,113     $ 1,893    
Burlington Resources (a)     88,044       3,592    
ChevronTexaco     464,154       24,897    
ConocoPhillips     150,924       12,504    
Devon Energy     51,651       3,668    
El Paso (a)     153,577       1,411    
EOG Resources (a)     25,821       1,700    
Exxon Mobil (a)     1,444,462       69,811    
Halliburton     96,045       3,236    
Kerr-McGee (a)     31,706       1,815    
Kinder Morgan     27,036       1,698    
Marathon Oil     74,934       3,093    
Nabors Industries* (a)     32,780       1,552    
Noble* (a)     29,313       1,318    
Occidental Petroleum     85,544       4,784    
Rowan* (a)     22,973       607    
Schlumberger (a)     129,674       8,729    
Sunoco (a)     16,876       1,249    
Transocean* (a)     75,972       2,718    
Unocal     56,664       2,437    
Valero Energy     27,530       2,208    
Williams (a)     113,602       1,375    
      169,286    
Financials – 20.5%      
ACE     62,060       2,486    
AFLAC     112,037       4,393    
Allstate (a)     154,867       7,432    
Ambac Financial Group (a)     23,879       1,909    
American Express (a)     280,947       14,458    
American International Group     575,040       39,097    
AmSouth Bancorp (a)     76,916       1,877    
AON (a)     68,617       1,972    
Apartment Investment & Management     20,738       721    
Bank of America (a)     912,272       39,529    
Bank of New York     170,289       4,967    
BB&T (a)     119,746       4,753    
Bear Stearns (a)     23,961       2,304    
Capital One Financial (a)     52,683       3,893    
Charles Schwab (a)     299,254       2,750    
Chubb     41,118       2,890    
Cincinnati Financial     36,940       1,523    
Citigroup     1,137,334       50,179    
Comerica     38,440       2,281    
Countrywide Financial (a)     121,458       4,784    
E*TRADE Financial*     80,500       919    
Equity Office Properties Trust (REIT)     88,187       2,403    
Equity Residential Properties Trust (REIT)     59,846       1,855    
Fannie Mae (a)     213,582       13,541    
Federated Investors, Cl B     23,820       677    
Fifth Third Bancorp     124,965       6,151    
First Horizon National (a)     27,595       1,197    
Franklin Resources     55,045       3,069    
Freddie Mac (a)     151,657       9,894    
Golden West Financial (a)     33,622       3,730    
Goldman Sachs Group (a)     106,620       9,941    
Hartford Financial Services Group (a)     64,269       3,980    
Huntington Bancshares     50,162       1,250    
J. P. Morgan Chase     779,931       30,987    
Janus Capital Group (a)     52,481       714    
Jefferson-Pilot     31,093       1,544    
KeyCorp     90,776       2,869    
Lehman Brothers Holdings (a)     61,157       4,875    
Lincoln National     38,985       1,832    
Loew's     40,676       2,380    
M & T Bank     25,810       2,470    
Marsh & McLennan (a)     116,762       5,343    
Marshall & Ilsley     49,857       2,009    

 

Equity Index Fund (continued)

DESCRIPTION   SHARES   VALUE (000)  
MBIA     31,789     $ 1,850    
MBNA (a)     280,223       7,062    
Mellon Financial     94,446       2,615    
Merrill Lynch (a)     210,966       10,489    
Metlife     167,143       6,460    
MGIC Investment (a)     21,758       1,448    
Moody's (a)     32,559       2,385    
Morgan Stanley     241,983       11,930    
National City     148,105       5,720    
North Fork Bancorp (a)     49,755       2,212    
Northern Trust     48,426       1,976    
Plum Creek Timber (a)     39,206       1,373    
PNC Financial Services     61,431       3,323    
Principal Financial Group (a)     70,990       2,554    
Progressive (a)     47,650       4,038    
Prologis     39,350       1,387    
Providian Financial* (a)     63,639       989    
Prudential Financial     116,880       5,498    
Regions Financial (a)     102,922       3,403    
SAFECO     27,495       1,255    
Simon Property Group (REIT) (a)     43,080       2,310    
SLM (a)     96,690       4,312    
SouthTrust     74,031       3,084    
Sovereign Bancorp     75,782       1,653    
St. Paul Travelers Companies (a)     145,686       4,816    
State Street     73,985       3,160    
SunTrust Banks (a)     61,734       4,347    
Synovus Financial     66,109       1,729    
T. Rowe Price Group     27,766       1,414    
Torchmark     24,517       1,304    
U.S. Bancorp (b)     423,524       12,240    
UnumProvident (a)     66,337       1,041    
Wachovia     288,820       13,560    
Washington Mutual     195,326       7,633    
Wells Fargo     368,358       21,965    
XL Capital Limited, Cl A     29,959       2,217    
Zions Bancorporation     19,680       1,201    
      473,781    
Health Care – 12.9%      
Abbott Laboratories     342,708       14,517    
Aetna (a)     33,747       3,372    
Allergan (a)     28,636       2,078    
AmerisourceBergen (a)     24,544       1,318    
Amgen* (a)     282,203       15,995    
Anthem* (a)     30,406       2,653    
Applied Biosystems Group – Applera     45,828       865    
Bausch & Lomb (a)     11,422       759    
Baxter International (a)     134,633       4,330    
Becton, Dickinson & Company     55,693       2,879    
Biogen IDEC* (a)     74,622       4,565    
Biomet (a)     55,397       2,597    
Boston Scientific* (a)     184,244       7,320    
Bristol-Myers Squibb     427,404       10,117    
C.R. Bard     21,220       1,202    
Cardinal Health     97,603       4,272    
Caremark Rx* (a)     98,300       3,153    
Chiron* (a)     41,370       1,829    
CIGNA     31,178       2,171    
Eli Lilly (a)     246,594       14,808    
Express Scripts* (a)     16,900       1,104    
Fisher Scientific International* (a)     25,083       1,463    
Forest Laboratories, Cl A* (a)     81,603       3,671    
Genzyme* (a)     49,447       2,690    
Gilead Sciences* (a)     94,320       3,526    
Guidant (a)     68,714       4,538    
HCA     109,341       4,171    
Health Management Associates, Cl A (a)     52,601       1,075    

 

FIRST AMERICAN FUNDS Annual Report 2004

13


Schedule of Investments September 30, 2004

Equity Index Fund (continued)

DESCRIPTION   SHARES   VALUE (000)  
Hospira*     34,270     $ 1,049    
Humana*     35,458       708    
IMS Health     55,643       1,331    
Johnson & Johnson (a)     650,959       36,669    
King Pharmaceuticals* (a)     52,869       631    
Manor Care     19,538       585    
McKesson HBOC (a)     64,598       1,657    
Medco Health Solutions*     59,313       1,833    
MedImmune* (a)     54,798       1,299    
Medtronic     267,408       13,878    
Merck     491,033       16,204    
Millipore*     10,677       511    
Mylan Laboratories     59,250       1,067    
PerkinElmer     27,078       466    
Pfizer     1,675,135       51,259    
Quest Diagnostics     23,068       2,035    
Schering-Plough (a)     322,233       6,142    
St. Jude Medical* (a)     38,634       2,908    
Stryker (a)     87,358       4,200    
Tenet Healthcare* (a)     101,728       1,098    
UnitedHealth Group (a)     146,499       10,803    
Watson Pharmaceuticals* (a)     24,017       708    
Wellpoint Health Networks*     34,215       3,596    
Wyeth Pharmaceuticals     291,982       10,920    
Zimmer Holdings* (a)     53,346       4,216    
      298,811    
Industrials – 11.5%      
3M (a)     172,860       13,824    
Allied Waste Industries* (a)     71,125       629    
American Power Conversion (a)     44,161       768    
American Standard*     47,547       1,850    
Apollo Group, Cl A* (a)     41,693       3,059    
Avery Dennison (a)     24,225       1,594    
Boeing (a)     184,455       9,522    
Burlington Northern Santa Fe     79,498       3,046    
Caterpillar (a)     75,317       6,059    
Cendant (a)     224,878       4,857    
Cintas     37,706       1,585    
Cooper Industries     22,720       1,340    
Crane     12,732       368    
CSX     46,924       1,558    
Cummins     9,100       672    
Danaher (a)     67,892       3,482    
Deere & Company     54,885       3,543    
Delta Air Lines* (a)     27,733       91    
Deluxe     10,649       437    
Dover     44,432       1,727    
Eaton     32,946       2,089    
Emerson Electric     93,041       5,758    
Equifax     30,777       811    
FedEx (a)     65,591       5,620    
Fluor     17,911       797    
General Dynamics     43,253       4,416    
General Electric (a)     2,325,551       78,092    
Goodrich     25,785       809    
H & R Block (a)     39,403       1,947    
Honeywell International     188,632       6,764    
Illinois Tool Works     67,973       6,333    
Ingersoll-Rand, Cl A     38,684       2,629    
ITT Industries     20,256       1,620    
Lockheed Martin     98,103       5,472    
Masco     103,086       3,560    
Monster Worldwide* (a)     24,625       607    
Navistar International* (a)     14,992       558    
Norfolk Southern (a)     85,578       2,545    

 

Equity Index Fund (continued)

DESCRIPTION   SHARES   VALUE (000)  
Northrop Grumman (a)     77,244     $ 4,119    
Paccar (a)     38,352       2,651    
Pall     27,225       666    
Parker Hannifin (a)     25,913       1,525    
Pitney Bowes     47,097       2,077    
Power-One*     18,220       118    
R. R. Donnelley & Sons (a)     47,261       1,480    
Raytheon     95,461       3,626    
Robert Half International (a)     37,380       963    
Rockwell Automation (a)     40,666       1,574    
Rockwell Collins     38,099       1,415    
Ryder System (a)     13,871       653    
Southwest Airlines (a)     173,186       2,359    
Textron     30,036       1,930    
Tyco International     442,155       13,556    
Union Pacific     57,096       3,346    
United Parcel Service, Cl B (a)     245,931       18,671    
United Technologies     113,753       10,622    
W W Grainger     19,973       1,151    
Waste Management     127,880       3,496    
      266,436    
Information Technology – 16.3%      
ADC Telecommunications* (a)     176,367       319    
Adobe Systems (a)     52,937       2,619    
Advanced Micro Devices* (a)     78,006       1,014    
Affiliated Computer Services, Cl A* (a)     28,840       1,606    
Agilent Technologies*     106,927       2,307    
Altera* (a)     83,872       1,641    
Analog Devices (a)     82,453       3,198    
Andrew* (a)     35,035       429    
Apple Computer* (a)     82,807       3,208    
Applied Materials*     370,928       6,117    
Applied Micro Circuits* (a)     67,342       211    
Autodesk (a)     24,881       1,210    
Automatic Data Processing     131,161       5,420    
Avaya* (a)     99,118       1,382    
BMC Software*     50,094       792    
Broadcom, Cl A* (a)     70,990       1,937    
CIENA*     125,249       248    
Cisco Systems* (a)     1,492,679       27,017    
Citrix Systems*     37,333       654    
Computer Associates International (a)     126,712       3,333    
Computer Sciences* (a)     41,041       1,933    
Compuware*     83,936       432    
Comverse Technology* (a)     43,089       811    
Convergys*     35,570       478    
Corning* (a)     307,683       3,409    
Dell* (a)     551,430       19,631    
eBay* (a)     145,938       13,418    
Electronic Arts* (a)     64,578       2,970    
Electronic Data Systems (a)     106,698       2,069    
EMC*     538,810       6,218    
First Data     196,799       8,561    
Fiserv* (a)     42,456       1,480    
Gateway* (a)     82,601       409    
Hewlett-Packard (a)     669,984       12,562    
IBM     371,249       31,831    
Intel     1,432,850       28,743    
Intuit* (a)     45,013       2,044    
Jabil Circuit* (a)     43,617       1,003    
JDS Uniphase* (a)     317,739       1,071    
KLA-Tencor* (a)     42,714       1,772    
Lexmark International Group, Cl A* (a)     28,345       2,381    
Linear Technology (a)     68,529       2,484    
LSI Logic* (a)     83,068       358    

 

The accompanying notes are an integral part of the financial statements.

FIRST AMERICAN FUNDS Annual Report 2004

14


Equity Index Fund (continued)

DESCRIPTION   SHARES   VALUE (000)  
Lucent Technologies* (a)     945,513     $ 2,997    
Maxim Integrated Products (a)     72,078       3,048    
Mercury Interactive* (a)     19,862       693    
Micron Technology* (a)     133,761       1,609    
Microsoft     2,387,642       66,018    
Molex     41,916       1,250    
Motorola (a)     521,558       9,409    
National Semiconductor* (a)     81,318       1,260    
NCR* (a)     20,738       1,028    
Network Appliance* (a)     78,965       1,816    
Novell* (a)     85,309       538    
Novellus Systems* (a)     33,200       883    
NVIDIA* (a)     36,771       534    
Oracle*     1,153,179       13,008    
Parametric Technology*     59,419       314    
Paychex     82,635       2,491    
PeopleSoft*     79,845       1,585    
PMC-Sierra* (a)     37,841       333    
QLogic* (a)     20,673       612    
QUALCOMM (a)     359,374       14,030    
Sabre Holdings, Cl A (a)     31,490       772    
Sanmina – SCI*     114,452       807    
Scientific-Atlanta     33,645       872    
Siebel Systems* (a)     110,885       836    
Solectron* (a)     212,113       1,050    
Sun Microsystems* (a)     734,274       2,966    
SunGard Data Systems*     62,591       1,488    
Symantec* (a)     69,574       3,818    
Symbol Technologies     48,673       615    
Tektronix     18,610       619    
Tellabs* (a)     91,586       842    
Teradyne* (a)     42,856       575    
Texas Instruments (a)     382,160       8,132    
Thermo Electron*     35,595       962    
Unisys* (a)     73,187       755    
VERITAS Software* (a)     95,272       1,696    
Waters* (a)     26,609       1,173    
Xerox* (a)     175,971       2,478    
Xilinx (a)     76,051       2,053    
Yahoo!* (a)     305,036       10,344    
      377,039    
Materials – 3.1%      
Air Products and Chemicals     49,846       2,711    
Alcoa     191,984       6,449    
Allegheny Technologies     21,036       384    
Ball     24,632       922    
Bemis (a)     23,440       623    
Dow Chemical     203,420       9,191    
E.I. DuPont de Nemours     219,659       9,401    
Eastman Chemical (a)     16,717       795    
Ecolab (a)     56,966       1,791    
Engelhard     27,473       779    
Freeport-McMoran Copper & Gold, Cl B (a)     40,531       1,642    
Georgia-Pacific (a)     56,996       2,049    
Great Lakes Chemical     10,789       276    
Hercules* (a)     24,318       347    
International Flavors & Fragrances (a)     20,659       789    
International Paper (a)     107,350       4,338    
Louisiana Pacific     24,005       623    
MeadWestvaco     43,950       1,402    
Monsanto     58,193       2,119    
Newmont Mining (a)     96,073       4,374    
NuCor     17,340       1,584    
Pactiv*     34,539       803    

 

Equity Index Fund (continued)

DESCRIPTION   SHARES   VALUE (000)  
Phelps Dodge (a)     20,756     $ 1,911    
PPG Industries     37,777       2,315    
Praxair     71,480       3,055    
Rohm & Haas (a)     48,773       2,096    
Sealed Air* (a)     18,616       863    
Sigma-Aldrich (a)     15,523       900    
Temple-Inland     11,879       798    
United States Steel (a)     24,964       939    
Vulcan Materials (a)     22,282       1,135    
Weyerhaeuser (a)     52,278       3,476    
Worthington Industries     16,779       358    
      71,238    
Telecommunication Services – 3.7%      
ALLTEL     66,082       3,629    
AT&T     175,052       2,507    
AT&T Wireless Services*     600,985       8,883    
BellSouth     405,174       10,988    
CenturyTel     31,563       1,081    
Citizens Communications (a)     71,721       961    
Nextel Communications, Cl A* (a)     243,113       5,796    
Qwest Communications International* (a)     400,728       1,334    
SBC Communications (a)     731,526       18,983    
Sprint (a)     312,946       6,300    
Verizon Communications (a)     610,767       24,052    
      84,514    
Utilities – 2.8%      
AES*     142,714       1,426    
Allegheny Energy* (a)     27,570       440    
Ameren (a)     42,347       1,954    
American Electric Power (a)     86,631       2,769    
Calpine* (a)     110,653       321    
CenterPoint Energy (a)     67,063       695    
Cinergy (a)     37,804       1,497    
CMS Energy* (a)     35,349       337    
Consolidated Edison (a)     50,495       2,123    
Constellation Energy (a)     36,608       1,458    
Dominion Resources (a)     70,923       4,628    
DTE Energy (a)     36,900       1,557    
Duke Energy (a)     201,707       4,617    
Dynegy* (a)     82,166       410    
Edison International     71,457       1,894    
Entergy     49,993       3,030    
Exelon (a)     142,934       5,244    
FirstEnergy (a)     72,348       2,972    
FPL Group (a)     39,890       2,725    
KeySpan     34,766       1,363    
NICOR     10,118       371    
NiSource (a)     57,637       1,211    
People's Energy     6,740       281    
PG&E* (a)     92,424       2,810    
Pinnacle West Capital     20,022       831    
PPL     38,754       1,828    
Progress Energy (a)     54,061       2,289    
Progress Energy-CVO (c)     8,576       1    
Public Service Enterprises (a)     52,101       2,220    
Sempra Energy     50,125       1,814    
Southern (a)     159,782       4,790    
TECO Energy (a)     41,162       557    
TXU (a)     71,452       3,424    
Xcel Energy     85,260       1,477    
      65,364    
Total Common Stocks
(Cost $1,794,369)		             2,292,283    

 

FIRST AMERICAN FUNDS Annual Report 2004

15


Schedule of Investments September 30, 2004

Equity Index Fund (continued)

DESCRIPTION   PAR (000)/SHARES   VALUE (000)  
Short-Term Investments – 2.1%      
U.S. Treasury Obligation – 0.3%      
U. S. Treasury Bill (d)
1.895%, 03/03/05		   $ 8,000     $ 7,935    
Total U.S. Treasury Obligation             7,935    
Affiliated Money Market Fund – 1.8%      
First American Prime
Obligations Fund, Cl Z (b) (e)		     40,705,632       40,706    
Total Affiliated Money Market Fund             40,706    
Total Short-Term Investments
(Cost $48,641)		             48,641    
Investments Purchased with Proceeds from Securities Lending – 36.9%      
Commercial Paper – 11.9%      
Bluegrass
1.881%, 5/18/05		   $ 3,597       3,597    
1.891%, 8/18/05     2,858       2,858    
Concord Minutemen Capital
1.650%, 10/01/04		     5,905       5,905    
1.680%, 10/05/04     13,122       13,122    
1.720%, 10/06/04     9,696       9,696    
1.740%, 10/14/04     6,488       6,488    
Descartes Funding Trust
1.760%, 11/15/04		     7,290       7,290    
Ford Credit Floor Plan
1.622%, 10/05/04		     14,576       14,576    
1.526%, 10/06/04     10,206       10,206    
1.655%, 10/22/04     3,204       3,204    
Goldman Sachs
1.975%, 1/18/05		     7,290       7,290    
Independence
1.830%, 4/15/05		     9,010       9,010    
Jupiter Securities Corp
1.793%, 10/21/04		     27,710       27,710    
Lakeside Funding
1.790%, 10/08/04		     15,455       15,455    
Landesbank Baden
1.480%, 11/12/04		     2,910       2,910    
Leaf's LLC
1.821%, 4/20/05		     8,019       8,019    
Liquid Funding Ltd
1.743%, 10/13/04		     10,199       10,199    
1.830%, 5/25/05     7,290       7,290    
MBNA Credit
1.683%, 10/12/04		     7,085       7,085    
1.764%, 10/26/04     3,932       3,932    
Main Street Warehouse
1.742%, 10/04/04		     9,621       9,621    
1.683%, 10/04/04     11,882       11,882    
1.742%, 10/08/04     7,287       7,287    
1.742%, 10/08/04     7,290       7,290    
Mortgage Interest Network
1.752%, 10/12/04		     4,809       4,809    
1.763%, 10/14/04     5,099       5,099    
Netexis Banques
1.700%, 12/16/04		     7,260       7,260    
Orchard Park
1.796%, 4/06/05		     7,290       7,290    
1.766%, 7/06/05     15,046       15,046    
Park Granada LLC
1.622%, 10/01/04		     12,830       12,830    
1.743%, 10/13/04     8,305       8,305    
Sigma Finance Inc
1.512%, 11/29/04		     3,634       3,634    
Total Commercial Paper             276,195    

 

Equity Index Fund (continued)

DESCRIPTION   PAR (000)   VALUE (000)  
Corporate Obligations – 9.9%  
Allstate Life Global
1.780%, 10/14/05		   $ 14,580     $ 14,580    
1.750%, 10/14/05     3,645       3,645    
Bayer Landbank NY
1.830%, 6/24/05		     13,850       13,850    
Blue Heron Fdg Ltd
1.850%, 5/18/05		     4,082       4,082    
Castle Hill III
1.910%, 9/15/15		     4,374       4,374    
Depfa Bank PLC
1.860%, 6/15/05		     7,287       7,287    
Duke Funding VI
1.320%, 4/08/05		     8,821       8,821    
General Electric Capital Corporation
1.838%, 10/07/05		     7,298       7,298    
Jackson National Life
1.760%, 4/15/05		     7,290       7,290    
Jefferson Pilot Co
1.788%, 8/17/05		     7,290       7,290    
Liquid Funding Ltd
1.840%, 6/28/05		     6,560       6,560    
Merrill Lynch
1.696%, 10/01/05		     14,581       14,581    
Metlife Global Funding
1.800%, 10/14/05 8,748 8,748
1.880%, 10/28/05		     6,125       6,125    
Morgan Stanley
1.850%, 12/26/08		     7,290       7,290    
Natexis Banq NY
1.920%, 7/12/05		     8,019       8,019    
Northlake CDO Ltd
1.895%, 3/07/05		     4,374       4,374    
Premium Asset Trust
1.848%, 12/22/04		     5,467       5,467    
1.760%, 5/13/05     10,205       10,205    
1.740%, 6/01/05     21,724       21,724    
1.770%, 10/14/05     5,832       5,832    
REMAC
1.840%, 9/29/05		     8,019       8,019    
RMAC
1.740%, 6/12/05		     8,411       8,411    
SMM Trust 2004
1.833%, 9/23/05		     13,559       13,559    
Societe Generale NYC
1.960%, 12/08/04		     14,580       14,580    
Svenska Handl
1.170%, 10/21/04		     7,290       7,290    
Total Corporate Obligations             229,301    
Other Short-Term Investments – 2.6%  
ARLO III Ltd
2.000%, 9/28/05		     21,870       21,870    
Commonwealth Life
2.115%, 12/31/04 (f)		     7,361       7,361    
General Electric Capital Assurance
1.980%, 1/19/05		     2,916       2,916    
HBOS Treasury Services
1.640%, 11/01/05		     8,016       8,016    
Security Life Denver
1.900%, 12/30/04		     18,954       18,954    
Total Other Short-Term Investments             59,117    

 

The accompanying notes are an integral part of the financial statements.

FIRST AMERICAN FUNDS Annual Report 2004

16


Equity Index Fund (continued)

DESCRIPTION   PAR   VALUE (000)  
Repurchase Agreements – 12.5%      
Bear Stearns
2.045%, dated 9/30/04, matures 10/01/04,
repurchase price $14,580,772
(collateralized by various securities:
Total market value $14,879,672)		   $ 14,580     $ 14,580    
Bear Stearns
2.060%, dated 9/30/04, matures 12/23/04,
repurchase price $4,395,007
(collateralized by various securities:
Total market value $4,463,024)		     4,374       4,374    
Citibank
1.945%, dated 9/30/04, matures 10/01/04,
repurchase price $29,161,463
(collateralized by corporate securities:
Total market value $30,878,907)		     29,160       29,160    
Citibank
1.925%, dated 9/30/04, matures 10/01/04,
repurchase price $7,290,362
(collateralized by various securities:
Total market value $7,452,290)		     7,290       7,290    
Citibank
1.925%, dated 9/30/04, matures 10/01/04,
repurchase price $7,290,362
(collateralized by various securities:
Total market value $7,435,871)		     7,290       7,290    
Greenwich Capital Markets
1.950%, dated 9/30/04, matures 10/01/04,
repurchase price $43,742,200
(collateralized by U.S. government securities:
Total market value $44,615,197)		     43,740       43,740    
Goldman Sachs
2.025%, dated 9/30/04, matures 10/01/04,
repurchase price $10,206,535
(collateralized by various securities:
Total market value $10,521,625)		     10,206       10,206    
Goldman Sachs
2.025%, dated 9/30/04, matures 10/01/04,
repurchase price $4,374,229
(collateralized by various securities:
Total market value $4,509,375)		     4,374       4,374    
Goldman Sachs
2.025%, dated 9/30/04, matures 10/01/04,
repurchase price $4,374,229
(collateralized by various securities:
Total market value $4,509,373)		     4,374       4,374    
Goldman Sachs
2.025%, dated 9/30/04, matures 10/01/04,
repurchase price $10,935,573
(collateralized by corporate securities:
Total market value $11,273,210)		     10,935       10,935    
Goldman Sachs
1.425%, dated 9/30/04, matures 10/18/04,
repurchase price $18,237,915
(collateralized by corporate securities:
Total market value $18,596,977)		     18,225       18,225    
Goldman Sachs
1.480%, dated 9/30/04, matures 10/18/04,
repurchase price $10,943,050
(collateralized by various securities:
Total market value $11,273,212)		     10,935       10,935    
Goldman Sachs
2.205%, dated 9/30/04, matures 3/07/05,
repurchase price $7,360,521
(collateralized by corporate securities:
Total market value $7,438,846)		     7,290       7,290    

 

Equity Index Fund (continued)

DESCRIPTION   PAR   VALUE (000)  
Lehman Brothers
2.055%, dated 9/30/04, matures 10/01/04,
repurchase price $29,161,552
(collateralized by collateralized
mortgage obligations:
Total market value $29,743,085)		   $ 29,160     $ 29,160    
Lehman Brothers
1.910%, dated 9/30/04, matures 10/01/04,
repurchase price $43,742,151
(collateralized by U.S. government securities:
Total market value $44,615,331)		     43,740       43,740    
Lehman Brothers
1.935%, dated 9/30/04, matures 10/01/04,
repurchase price $29,161,455
(collateralized by collateralized
mortgage obligations:
Total market value $32,063,699)		     29,160       29,160    
Merrill Lynch
1.925%, dated 9/30/04, matures 10/01/04,
 repurchase price $14,580,723
(collateralized by corporate securities:
Total market value $15,309,257)		     14,579       14,579    
Total Repurchase Agreements
(Cost $289,412)		             289,412    
Total Investments Purchased with
Proceeds from Securities Lending
(Cost $854,025)		             854,025    
Total Investments – 138.1%
(Cost $2,697,035)		             3,194,949    
Other Assets and Liabilities, Net – (38.1)%             (881,130 )  
Total Net Assets – 100.0%           $ 2,313,819    

 

*  Non-income producing security

(a)  This security or a portion of this security is out on loan at September 30, 2004. Total loaned securities had a market value of $824,435,100 at September 30, 2004. See note 2 in Notes to Financial Statements.

(b)  Investments in affiliated securities. As of September 30, 2004, the market value of these investments was $52,945,476 or 2.3% of total net assets. See notes 3 and 4 in Notes to Financial Statements.

(c)  Security considered illiquid investment and is fair valued under guidelines established by the Board of Directors. 8,576 shares of Progress Energy CVO, a restricted security with a cost basis of $0, were acquired between June 1999 and November 2002. As of September 30, 2004, the market value of this investment was $1,201 or 0.0% of total net assets. See note 2 in Notes to Financial Statements.

(d)  Security has been deposited as initial margin on open futures contracts. Yield shown is effective yield at date of purchase. See note 2 in Notes to Financial Statements.

(e)  This money market fund is advised by U.S. Bancorp Asset Management, Inc., which also serves as advisor to this Fund. See note 3 in Notes to Financial Statements.

(f)  Security has demand features which qualify it as a short term security. The date disclosed is the next put date.

Cl – Class

REIT – Real Estate Investment Trust

CVO – Contingent Value Obligation

Schedule of Open Futures Contracts

Description   Number of
Contracts		   Market Value
Covered By
Contracts		   Settlement
Month		   Unrealized
Depreciation		  
S&P 500 Index
Futures Contracts
purchased		     54     $ 15,055     Dec. 04   $ (134 )  

 

FIRST AMERICAN FUNDS Annual Report 2004

17


Schedule of Investments September 30, 2004

Mid Cap Index Fund

DESCRIPTION   SHARES   VALUE (000)  
Common Stocks – 98.2%      
Consumer Discretionary – 18.2%      
99 Cents Only Stores*     23,186     $ 330    
Abercrombie & Fitch (a)     31,492       992    
Aeropostale*     18,535       486    
American Eagle Outfitters (a)     23,944       882    
American Greetings, Cl A* (a)     22,760       572    
AnnTaylor Stores*     22,500       527    
Applebee's International     27,570       697    
ArvinMeritor     22,963       431    
Bandag     6,485       284    
Barnes & Noble* (a)     23,028       852    
Belo, Cl A     38,344       864    
BLYTH     15,084       466    
Bob Evans Farms     11,488       312    
Borders Group     25,600       635    
BorgWarner     18,488       800    
Boyd Gaming     28,503       802    
Brinker International* (a)     30,094       937    
Caesars Entertainment*     102,290       1,708    
Callaway Golf     25,118       266    
CarMax* (a)     34,609       746    
Catalina Marketing, Cl C     17,199       397    
CBRL Group (a)     16,271       587    
Cheesecake Factory* (a)     17,300       751    
Chico's FAS* (a)     29,770       1,018    
Claire's Stores     33,034       827    
D.R. Horton (a)     77,826       2,577    
Dollar Tree Stores* (a)     37,964       1,023    
Emmis Communications, Cl A* (a)     18,674       337    
Entercom Communications*     17,061       557    
Foot Locker (a)     49,686       1,178    
Furniture Brands International     18,724       470    
Gentex (a)     25,799       906    
GTECH Holdings     39,622       1,003    
Harman International Industries (a)     22,050       2,376    
Harte-Hanks     28,963       724    
Hovnanian Enterprises, Cl A* (a)     20,420       819    
International Speedway, Cl A     17,770       887    
Krispy Kreme Doughnuts* (a)     20,477       259    
Lear     22,900       1,247    
Lee Enterprises (a)     14,889       690    
Lennar (a)     52,112       2,481    
Mandalay Resort Group     22,508       1,545    
Media General, Cl A (a)     7,793       436    
Michaels Stores     22,795       1,350    
Modine Manufacturing     11,341       341    
Mohawk Industries* (a)     22,176       1,761    
Neiman Marcus Group (a)     16,083       925    
O'Reilly Automotive*     18,300       701    
Outback Steakhouse     24,824       1,031    
Pacific Sunwear of California* (a)     25,930       546    
Payless ShoeSource* (a)     22,548       228    
PETsMART (a)     48,258       1,370    
Pier 1 Imports     29,394       531    
Reader's Digest Association, Cl A     35,138       513    
Regis     14,680       590    
Rent-A-Center*     26,800       693    
Ross Stores (a)     49,850       1,168    
Ruby Tuesday (a)     22,720       633    
Ryland Group (a)     8,190       759    
Saks*     47,801       576    
Scholastic*     13,627       421    
Six Flags*     30,684       167    
Superior Industries (a)     8,864       265    
Thor Industries     18,970       502    
Timberland, Cl A* (a)     11,657       662    

 

Mid Cap Index Fund (continued)

DESCRIPTION   SHARES   VALUE (000)  
Toll Brothers* (a)     24,819     $ 1,150    
Tupperware (a)     18,460       313    
Urban Outfitters*     26,840       923    
Valassis Communications* (a)     17,767       526    
Washington Post, Cl B     3,124       2,874    
Westwood One*     32,243       637    
Williams-Sonoma* (a)     38,831       1,458    
      60,298    
Consumer Staples – 4.4%      
BJ's Wholesale Club* (a)     23,263       636    
Church and Dwight (a)     20,565       577    
Constellation Brands, CI A* (a)     35,206       1,340    
Dean Foods* (a)     52,539       1,577    
Energizer Holdings* (a)     27,384       1,262    
Hormel Foods (a)     46,227       1,238    
JM Smucker     19,544       868    
Lancaster Colony     11,485       484    
PepsiAmericas     46,128       881    
Ruddick     15,964       314    
Smithfield Foods*     38,199       955    
Tootsie Roll Industries     17,563       513    
Tyson Foods, Cl A (a)     117,633       1,884    
Universal     8,504       380    
Whole Foods Market (a)     20,514       1,760    
      14,669    
Energy – 8.1%      
Cooper Cameron*     18,150       995    
ENSCO International (a)     50,361       1,645    
FMC Technologies*     22,444       750    
Forest Oil* (a)     19,484       587    
Grant Prideco* (a)     40,811       836    
Hanover Compressor* (a)     25,657       345    
Helmerich & Payne     16,823       483    
Murphy Oil     30,090       2,611    
National-Oilwell* (a)     28,648       941    
Newfield Exploration*     20,397       1,249    
Noble Energy     20,230       1,178    
Overseas Shipholding Group     13,135       652    
Patterson-UTI Energy (a)     55,546       1,059    
Pioneer Natural Resources (a)     48,402       1,669    
Plains Exploration & Production*     25,710       613    
Pogo Producing     21,328       1,012    
Pride International* (a)     45,349       897    
Smith International* (a)     34,964       2,123    
Tidewater     20,228       658    
Varco International*     32,554       873    
Weatherford International* (a)     44,260       2,258    
Western Gas Resources (a)     24,590       703    
XTO Energy (a)     87,018       2,826    
      26,963    
Financials – 18.8%      
A. G. Edwards (a)     26,461       916    
Allmerica Financial*     17,652       474    
AMB Property (a)     27,586       1,021    
American Financial Group (a)     24,506       732    
AmeriCredit*     52,625       1,099    
AmerUS Group, Cl A (a)     12,980       532    
Arthur J. Gallagher     30,131       998    
Associated Banc-Corp (a)     36,430       1,168    
Astoria Financial     26,305       934    
Bank of Hawaii     17,502       827    
Banknorth Group     57,167       2,001    
Brown & Brown     22,980       1,050    
City National (a)     16,218       1,053    
Colonial BancGroup (a)     44,605       912    

 

The accompanying notes are an integral part of the financial statements.

FIRST AMERICAN FUNDS Annual Report 2004

18


Mid Cap Index Fund (continued)

DESCRIPTION   SHARES   VALUE (000)  
Commerce Bancorp (a)     26,022     $ 1,436    
Compass Bancshares (a)     40,390       1,770    
Cullen/Frost Bankers (a)     17,160       797    
Developers Diversified Realty (REIT)     34,350       1,344    
Dime Bancorp*     23,400       3    
Eaton Vance (a)     22,670       916    
Everest Re Group     18,643       1,386    
Fidelity National Financial     57,538       2,192    
First American     29,523       910    
FirstMerit (a)     28,086       739    
GATX (a)     15,269       407    
Greater Bay Bancorp (a)     17,521       504    
HCC Insurance Holdings (a)     21,405       645    
Hibernia, Cl A     51,814       1,368    
Highwoods Properties (REIT)     17,390       428    
Horace Mann Educators     14,153       249    
Hospitality Properties Trust (REIT)     22,105       939    
Independence Community Bank     27,696       1,082    
IndyMac Bancorp (a)     21,642       783    
Investors Financial Services (a)     22,078       996    
Jefferies Group (a)     18,530       639    
LaBranche*     20,235       171    
Legg Mason (a)     33,122       1,764    
Leucadia National (a)     23,671       1,341    
Liberty Property Trust (REIT)     27,940       1,113    
Mack-Cali Realty (REIT)     19,910       882    
Mercantile Bankshares     25,555       1,226    
MoneyGram International     29,579       505    
National Commerce Financial     67,922       2,324    
New Plan Excel Realty Trust (REIT)     32,968       824    
New York Community Bancorp (a)     89,514       1,839    
Ohio Casualty*     20,919       438    
Old Republic International     60,387       1,511    
PMI Group (a)     31,944       1,296    
Protective Life     23,151       910    
Radian Group (a)     31,383       1,451    
Raymond James Financial     24,285       586    
Rayonier (a)     16,790       760    
SEI Investments (a)     34,937       1,177    
Silicon Valley Bancshares*     11,892       442    
StanCorp Financial Group     9,278       661    
TCF Financial (a)     46,464       1,407    
United Dominion Realty Trust (REIT) (a)     42,710       847    
Unitrin     22,804       948    
W.R. Berkley     28,005       1,181    
Waddell & Reed Financial     27,551       606    
Washington Federal     26,206       659    
Webster Financial     17,723       875    
Westamerica Bancorporation     10,819       594    
Wilmington Trust     21,869       792    
      62,380    
Health Care – 10.0%      
Apria Healthcare Group*     16,558       451    
Barr Pharmaceuticals*     34,619       1,434    
Beckman Coulter (a)     20,313       1,140    
Cephalon* (a)     18,730       897    
Charles River Laboratories International* (a)     15,404       706    
Community Health Systems*     29,037       775    
Covance* (a)     20,964       838    
Coventry Health Care* (a)     29,862       1,594    
Cytyc* (a)     36,910       891    
DENTSPLY International (a)     26,899       1,397    
Edwards Lifesciences* (a)     19,641       658    
First Health Group*     30,583       492    

 

Mid Cap Index Fund (continued)

DESCRIPTION   SHARES   VALUE (000)  
Health Net* (a)     37,674     $ 931    
Henry Schein* (a)     14,462       901    
Hillenbrand Industries     20,807       1,051    
INAMED*     11,770       561    
Invitrogen*     17,323       953    
IVAX* (a)     81,725       1,565    
Lifepoint Hospitals* (a)     12,834       385    
Lincare Holdings* (a)     33,206       987    
Millennium Pharmaceuticals* (a)     101,778       1,395    
Omnicare (a)     34,684       984    
PacifiCare Health Systems*     28,770       1,056    
Par Pharmaceutical Companies* (a)     11,430       411    
Patterson Companies* (a)     22,606       1,731    
Perrigo     22,857       470    
Protein Design Labs* (a)     31,728       621    
Renal Care*     22,280       718    
Sepracor* (a)     29,225       1,426    
STERIS* (a)     22,703       498    
Triad Hospitals* (a)     25,334       873    
Universal Health Services (a)     19,300       840    
Valeant Pharmaceuticals International (a)     28,026       676    
Varian*     11,112       421    
Varian Medical Systems* (a)     45,426       1,570    
Vertex Pharmaceuticals* (a)     29,181       306    
VISX* (a)     16,272       335    
      32,938    
Industrials – 12.5%      
Adesa* (a)     29,467       484    
AGCO* (a)     30,116       681    
AirTran Holdings*     28,010       279    
Alaska Air Group*     8,841       219    
Alexander & Baldwin     14,196       482    
Alliant Techsystems*     12,390       750    
AMETEK (a)     22,350       678    
Banta     8,463       336    
Brinks     18,952       572    
C. H. Robinson Worldwide     28,529       1,323    
Career Education* (a)     33,956       965    
Carlisle Companies     10,899       697    
ChoicePoint*     29,520       1,259    
CNF     16,846       691    
Copart*     30,047       569    
Corinthian Colleges* (a)     30,410       410    
DeVry* (a)     23,792       493    
Donaldson     28,688       814    
Dun & Bradstreet* (a)     24,092       1,414    
Dycom Industries* (a)     17,563       499    
Education Management* (a)     24,430       651    
Expeditors International of Washington (a)     35,287       1,824    
Fastenal (a)     25,338       1,459    
Federal Signal (a)     15,898       295    
Flowserve*     18,306       443    
Graco     23,075       773    
Granite Construction     13,763       329    
Harsco     13,534       608    
Herman Miller (a)     24,744       610    
HNI     19,300       764    
Hubbell, Cl B     20,847       935    
ITT Educational Services* (a)     15,270       550    
J.B. Hunt Transport Services (a)     26,798       995    
Jacobs Engineering Group*     19,046       729    
JetBlue Airways* (a)     34,230       716    
Kelly Services, Cl A     11,526       308    
Kennametal     12,183       550    
Korn/Ferry International*     12,655       231    

 

FIRST AMERICAN FUNDS Annual Report 2004

19


Schedule of Investments September 30, 2004

Mid Cap Index Fund (continued)

DESCRIPTION   SHARES   VALUE (000)  
L-3 Communications Holdings     35,249     $ 2,362    
Laureate Education* (a)     15,074       561    
Manpower (a)     30,014       1,335    
Nordson     11,829       406    
Pentair (a)     33,496       1,169    
Precision Castparts     21,575       1,296    
Quanta Services*     39,114       237    
Republic Services     51,285       1,526    
Rollins     15,176       369    
Sequa, Cl A*     3,454       180    
Sotheby's Holdings, Cl A*     20,846       328    
SPX (a)     25,204       892    
Stericycle* (a)     14,500       666    
Swift Transportation* (a)     26,873       452    
Tecumseh Products, Cl A     5,791       242    
Teleflex     13,247       563    
Thomas & Betts*     19,533       524    
Trinity Industries (a)     15,508       483    
United Rentals* (a)     29,096       462    
Werner Enterprises     26,360       509    
York International (a)     13,718       433    
      41,380    
Information Technology – 14.1%      
3Com* (a)     129,534       547    
Activision*     45,785       635    
Acxiom     28,650       680    
ADTRAN (a)     26,216       595    
Advanced Fiber Communications*     28,803       458    
Advent Software*     10,857       183    
Alliance Data Systems* (a)     26,630       1,080    
Amphenol, Cl A*     29,530       1,012    
Arrow Electronics*     38,250       864    
Ascential Software*     19,680       265    
Atmel* (a)     160,917       583    
Avnet* (a)     39,813       682    
Avocent* (a)     16,274       424    
BISYS Group*     40,192       587    
Cabot Microelectronics* (a)     8,290       301    
Cadence Design Systems* (a)     90,716       1,183    
CDW (a)     27,900       1,619    
Ceridian*     49,497       911    
Certegy     21,327       794    
CheckFree* (a)     28,928       800    
Cognizant Technology Solutions*     43,290       1,321    
CommScope* (a)     20,126       435    
Credence Systems* (a)     31,755       229    
Cree* (a)     24,783       757    
CSG Systems International*     17,341       267    
Cypress Semiconductor* (a)     41,204       364    
Diebold (a)     23,482       1,097    
DST Systems* (a)     27,873       1,240    
Fair Isaac (a)     23,560       688    
Fairchild Semiconductor International, Cl A*     39,808       564    
Gartner, Cl A* (a)     36,588       428    
Harris (a)     21,506       1,182    
Imation     11,715       417    
Integrated Circuit Systems* (a)     24,090       518    
Integrated Device Technology* (a)     35,417       338    
International Rectifier*     21,963       753    
Intersil, Cl A (a)     50,101       798    
Jack Henry & Associates     29,702       558    
Keane* (a)     21,224       326    
KEMET*     28,596       231    
Lam Research* (a)     44,754       979    

 

Mid Cap Index Fund (continued)

DESCRIPTION   SHARES   VALUE (000)  
Lattice Semiconductor*     37,369     $ 183    
LTX*     19,715       107    
Macromedia*     22,929       460    
Macrovision* (a)     16,358       394    
McAfee Inc.* (a)     54,063       1,087    
McDATA, Cl A*     38,754       195    
Mentor Graphics* (a)     23,241       255    
Micrel*     30,835       321    
Microchip Technology (a)     69,499       1,865    
MPS Group*     35,095       295    
National Instruments (a)     26,160       792    
Newport*     14,137       162    
Plantronics     15,904       688    
Plexus*     14,235       157    
Polycom*     32,861       651    
Powerwave Technologies*     34,409       212    
Quantum* (a)     59,644       138    
Retek*     18,408       84    
Reynolds & Reynolds, Cl A     22,153       547    
RF Micro Devices*     62,281       395    
RSA Security* (a)     21,230       410    
SanDisk* (a)     53,930       1,570    
Semtech* (a)     25,020       480    
Silicon Laboratories* (a)     17,230       570    
Storage Technology* (a)     37,229       940    
Sybase*     32,039       442    
Synopsys* (a)     51,876       821    
Tech Data*     18,996       732    
Titan*     27,849       389    
Transaction Systems Architects, Cl A*     12,651       235    
TriQuint Semiconductor*     45,454       177    
UTStarcom* (a)     37,760       608    
Vishay Intertechnology*     54,247       700    
Wind River Systems* (a)     26,950       329    
Zebra Technology, Cl A* (a)     23,880       1,457    
      46,541    
Materials – 4.8%      
Airgas     24,482       589    
Albemarle     13,723       482    
Arch Coal (a)     18,004       639    
Bowater (a)     18,675       713    
Cabot     20,794       802    
Crompton     38,261       363    
Cytec Industries     12,973       635    
Ferro     13,680       298    
FMC* (a)     11,984       582    
Glatfelter     14,502       180    
IMC Global* (a)     38,681       673    
Longview Fibre     16,925       258    
Lubrizol     21,558       746    
Lyondell Chemical (a)     59,410       1,334    
Martin Marietta Materials     16,208       734    
Minerals Technologies     6,753       397    
Olin     23,205       464    
Packaging Corporation of America     35,470       868    
Peabody Energy     21,179       1,260    
Potlatch (a)     9,838       461    
RPM     38,362       677    
Scotts*     11,390       731    
Sensient Technologies (a)     15,466       335    
Sonoco Products (a)     32,687       864    
Valspar     17,024       795    
      15,880    

 

The accompanying notes are an integral part of the financial statements.

FIRST AMERICAN FUNDS Annual Report 2004

20


Mid Cap Index Fund (continued)

DESCRIPTION   SHARES/PAR (000)   VALUE (000)  
Telecommunication Services – 0.6%  
Cincinnati Bell*     81,813     $ 286    
Telephone & Data Systems (a)     19,017       1,601    
      1,887    
Utilities – 6.7%      
AGL Resources     21,397       658    
Alliant Energy     36,685       913    
Aqua America     31,005       686    
Aquila* (a)     78,685       246    
Black Hills (a)     10,657       296    
DPL     42,243       869    
Duquesne Light Holdings (a)     25,280       454    
Energy East     48,922       1,232    
Equitable Resources (a)     20,427       1,109    
Great Plains Energy (a)     24,643       718    
Hawaiian Electric Industries (a)     26,668       708    
IDACORP     12,642       367    
MDU Resources Group     38,683       1,019    
National Fuel Gas (a)     27,093       768    
Northeast Utilities     42,230       819    
NSTAR     17,711       870    
OGE Energy (a)     28,591       721    
ONEOK     33,998       885    
Pepco Holdings (a)     61,613       1,226    
PNM Resources (a)     19,999       450    
Puget Energy     32,887       747    
Questar     27,974       1,282    
SCANA (a)     36,598       1,367    
Sierra Pacific Resources* (a)     39,664       355    
Vectren     25,110       632    
Westar Energy     29,094       588    
WGL Holdings     16,122       456    
Wisconsin Energy (a)     39,279       1,253    
WPS Resources     11,987       539    
      22,233    
Total Common Stocks
(Cost $299,009)		             325,169    
Short-Term Investments – 2.8%  
U.S. Treasury Obligation – 0.4%  
U. S. Treasury Bill (b)
1.895%, 03/03/05		   $ 1,500       1,488    
Total U.S. Treasury Obligation             1,488    
Affiliated Money Market Fund – 2.4%  
First American Prime Obligations Fund, Cl Z (c)     7,895,717       7,896    
Total Affiliated Money Market Fund             7,896    
Total Short-Term Investments
(Cost $9,384)		             9,384    
Investments Purchased with Proceeds from Securities Lending – 46.3%  
Commercial Paper – 15.0%  
Bluegrass
1.881%, 5/18/05		   $ 645       645    
1.891%, 8/18/05     512       512    
Concord Minutemen Capital
1.650%, 10/01/04		     1,058       1,058    
1.680%, 10/05/04     2,352       2,352    
1.720%, 10/06/04     1,738       1,738    
1.740%, 10/14/04     1,163       1,163    
Descartes Funding Trust
1.760%, 11/15/04		     1,307       1,307    

 

Mid Cap Index Fund (continued)

DESCRIPTION   PAR (000)   VALUE (000)  
Ford Credit Floor Plan
1.622%, 10/05/04		   $ 2,613     $ 2,613    
1.526%, 10/06/04     1,829       1,829    
1.655%, 10/22/04     574       574    
Goldman Sachs
1.975%, 1/18/05		     1,307       1,307    
Independence
1.830%, 4/15/05		     1,615       1,615    
Jupiter Securities Corp
1.793%, 10/21/04		     4,967       4,967    
Lakeside Funding
1.790%, 10/08/04		     2,770       2,770    
Landesbank Baden
1.480%, 11/12/04		     522       522    
Leaf's LLC
1.821%, 4/20/05		     1,438       1,438    
Liquid Funding Ltd
1.743%, 10/13/04		     1,828       1,828    
1.830%, 5/25/05     1,307       1,307    
MBNA Credit
1.683%, 10/12/04		     1,270       1,270    
1.764%, 10/26/04     705       705    
Main Street Warehouse
1.742%, 10/04/04		     1,725       1,725    
1.683%, 10/04/04     2,130       2,130    
1.742%, 10/08/04     1,306       1,306    
1.742%, 10/08/04     1,307       1,307    
Mortgage Interest Network
1.752%, 10/12/04		     862       862    
1.763%, 10/14/04     914       914    
Netexis Banques
1.700%, 12/16/04		     1,302       1,302    
Orchard Park
1.796%, 4/06/05		     1,307       1,307    
1.766%, 7/06/05     2,697       2,697    
Park Granada LLC
1.622%, 10/01/04		     2,300       2,300    
1.743%, 10/13/04     1,489       1,489    
Sigma Finance
1.512%, 11/29/04		     651       651    
Total Commercial Paper             49,510    
Corporate Obligations – 12.4%      
Allstate Life Global
1.780%, 10/14/05		     2,614       2,614    
1.750%, 10/14/05     653       653    
Bayer Landbank NY
1.830%, 6/24/05		     2,483       2,483    
Blue Heron Funding Ltd
1.850%, 5/18/05		     732       732    
Castle Hill III
1.910%, 9/15/15		     784       784    
Depfa Bank PLC
1.860%, 6/15/05		     1,306       1,306    
Duke Funding VI
1.320%, 4/08/05		     1,581       1,581    
General Electric Capital Corporation
1.838%, 10/07/05		     1,308       1,308    
Jackson National Life
1.760%, 4/15/05		     1,307       1,307    
Jefferson Pilot
1.788%, 8/17/05		     1,307       1,307    
Liquid Funding Ltd
1.840%, 6/28/05		     1,176       1,176    

 

FIRST AMERICAN FUNDS Annual Report 2004

21


Schedule of Investments September 30, 2004

Mid Cap Index Fund (continued)

DESCRIPTION   PAR (000)   VALUE (000)  
Merrill Lynch
1.696%, 10/01/05		   $ 2,614     $ 2,614    
Metlife Global Funding
1.800%, 10/14/05		     1,568       1,568    
1.880%, 10/28/05     1,098       1,098    
Morgan Stanley
1.850%, 12/26/08		     1,307       1,307    
Natexis Banq NY
1.920%, 7/12/05		     1,437       1,437    
Northlake CDO Ltd
1.895%, 3/07/05		     784       784    
Premium Asset Trust
1.848%, 12/22/04		     980       980    
1.760%, 5/13/05     1,829       1,829    
1.740%, 6/01/05     3,894       3,894    
1.770%, 10/14/05     1,045       1,045    
REMAC
1.840%, 9/29/05		     1,437       1,437    
RMAC
1.740%, 6/12/05		     1,508       1,508    
SMM Trust 2004
1.833%, 9/23/05		     2,431       2,431    
Societe Generale NYC
1.960%, 12/08/04		     2,614       2,614    
Svenska Handl
1.170%, 10/21/04		     1,307       1,307    
Total Corporate Obligations             41,104    
Other Short-Term Investments – 3.2%      
ARLO III Ltd
2.000%, 9/28/05		     3,920       3,920    
Commonwealth Life
2.115%, 12/31/04 (d)		     1,319       1,319    
General Electric Capital Assurance
1.980%, 1/19/05		     523       523    
HBOS Treasury Services
1.640%, 11/01/05		     1,437       1,437    
Security Life Denver
1.900%, 12/30/04		     3,398       3,398    
Total Other Short-Term Investments             10,597    
Repurchase Agreements – 15.7%      
Bear Stearns
2.045%, dated 9/30/04, matures 10/01/04,
repurchase price $2,613,709
(collateralized by various securities:
Total market value $2,667,288)		     2,614       2,614    
Bear Stearns
2.060%, dated 9/30/04, matures 12/23/04,
repurchase price $787,837
(collateralized by various securities:
Total market value $800,029)		     784       784    
Citibank
1.945%, dated 9/30/04, matures 10/01/04,
repurchase price $5,227,403
(collateralized by corporate securities:
Total market value $5,535,267)		     5,227       5,227    
Citibank
1.925%, dated 9/30/04, matures 10/01/04,
repurchase price $1,306,850
(collateralized by various securities:
Total market value $1,335,877)		     1,307       1,307    

 

Mid Cap Index Fund (continued)

DESCRIPTION   PAR (000)   VALUE (000)  
Citibank
1.925%, dated 9/30/04, matures 10/01/04,
repurchase price $1,306,850
(collateralized by various securities:
Total market value $1,332,933)		   $ 1,307     $ 1,307    
Greenwich Capital Markets
1.950%, dated 9/30/04, matures 10/01/04,
repurchase price $7,841,105
(collateralized by U.S. government securities:
Total market value $7,997,596)		     7,841       7,841    
Goldman Sachs
2.025%, dated 9/30/04, matures 10/01/04,
repurchase price $1,829,595
(collateralized by various securities:
Total market value $1,886,077)		     1,829       1,829    
Goldman Sachs
2.025%, dated 9/30/04, matures 10/01/04,
repurchase price $784,112
(collateralized by various securities:
Total market value $808,338)		     784       784    
Goldman Sachs
2.025%, dated 9/30/04, matures 10/01/04,
repurchase price $784,112
(collateralized by various securities:
Total market value $808,338)		     784       784    
Goldman Sachs
2.025%, dated 9/30/04, matures 10/01/04,
repurchase price $1,960,280
(collateralized by corporate securities:
Total market value $2,020,804)		     1,960       1,960    
Goldman Sachs
1.425%, dated 9/30/04, matures 10/18/04,
repurchase price $3,269,278
(collateralized by corporate securities:
Total market value $3,333,642)		     3,267       3,267    
Goldman Sachs
1.480%, dated 9/30/04, matures 10/18/04,
repurchase price $1,961,621
(collateralized by various securities:
Total market value $2,020,805)		     1,960       1,960    
Goldman Sachs
2.205%, dated 9/30/04, matures 3/07/05,
repurchase price $1,319,426
(collateralized by corporate securities:
Total market value $1,333,467)		     1,307       1,307    
Lehman Brothers
2.055%, dated 9/30/04, matures 10/01/04,
repurchase price $5,227,418
(collateralized by collateralized mortgage obligations: 
Total market value $5,331,663)		     5,227       5,227    
Lehman Brothers
1.910%, dated 9/30/04, matures 10/01/04,
repurchase price $7,841,096
(collateralized by U.S. government securities:
Total market value $7,997,620)		     7,840       7,840    
Lehman Brothers
1.935%, dated 9/30/04, matures 10/01/04,
repurchase price $5,227,401
(collateralized by collateralized mortgage obligations: 
Total market value $5,747,649)		     5,227       5,227    
Merrill Lynch
1.925%, dated 9/30/04, matures 10/01/04,
repurchase price $2,613,700
(collateralized by corporate securities:
Total market value $2,744,295)		     2,614       2,614    
Total Repurchase Agreements
(Cost $51,879)		             51,879    

 

The accompanying notes are an integral part of the financial statements.

FIRST AMERICAN FUNDS Annual Report 2004

22


Mid Cap Index Fund (concluded)

DESCRIPTION       VALUE (000)  
Total Investments Purchased with
Proceeds from Securities Lending 
(Cost $153,090)		       $ 153,090    
Total Investments – 147.3%
(Cost $461,483)		         487,643    
Other Assets and Liabilities, Net – (47.3)%         (156,468 )  
Total Net Assets – 100.0%       $ 331,175    

 

*  Non-income producing security

(a)  This security or a portion of this security is out on loan at September 30, 2004. Total loaned securities had a market value of $148,685,304 at September 30, 2004. See note 2 in Notes to Financial Statements.

(b)  Security has been deposited as initial margin on open futures contracts. Yield shown is effective yield at date of purchase. See note 2 in Notes to Financial Statements.

(c)  Investment in affiliated security. This money market fund is advised by U.S. Bancorp Asset Management, Inc., which also serves as advisor to this Fund. See note 3 in Notes to Financial Statements.

(d)  Security has demand features which qualify it as a short term security. The date disclosed is the next put date.

Cl – Class

REIT – Real Estate Investment Trust

Schedule of Open Futures Contracts

Description   Number of
Contracts		   Market Value
Covered By
Contracts		   Settlement
Month		   Unrealized
Appreciation		  
S&P Mid Cap 400
Futures Contracts
purchased		     18     $ 5,349     Dec. 04   $ 21    

 

Small Cap Index Fund

DESCRIPTION   SHARES   VALUE (000)  
Common Stocks – 98.8%  
Consumer Discretionary – 14.7%  
1-800 Contacts*     1,298     $ 20    
1-800 Flowers*     3,695       31    
4Kids Entertainment*     2,306       47    
99 Cents Only Stores* (a)     8,170       116    
A.C. Moore Arts & Crafts*     2,296       57    
Aaron Rents (a)     6,333       138    
Action Performance     2,586       26    
Advanced Marketing Services     2,374       26    
ADVO     5,063       157    
Aeropostale*     9,251       242    
Aftermarket Technology*     2,003       25    
Alliance Gaming*     8,585       129    
Alloy* (a)     5,605       21    
Ambassadors Group     1,336       36    
AMC Entertainment*     5,220       100    
American Greetings, Cl A* (a)     10,595       266    
America's Car-Mart*     942       32    
Ameristar Casinos     1,905       58    
Applica*     3,269       13    
Arbitron*     5,160       189    
Arctic Cat     2,294       60    
Argosy Gaming*     4,353       171    
ArvinMeritor     11,580       217    
Asbury Automotive Group*     1,870       25    
Avatar Holdings*     770       33    
Aztar*     5,760       153    
Bandag     1,794       79    
Bassett Furniture     1,652       31    
Beasley Broadcast Group*     898       14    
Beazer Homes USA (a)     2,284       244    
Bebe Stores     1,000       21    
Big 5 Sporting Goods*     3,809       87    
BJs Restaurants*     1,810       29    
Blair     1,359       38    
Blount International*     986       13    
Blue Nile*     630       21    
Bluegreen*     2,710       30    
BLYTH     4,750       147    
Bob Evans Farms     5,872       159    
Boca Resorts, Cl A*     3,994       74    
Bombay Company*     5,931       43    
Bon-Ton Stores     270       3    
Boyd Gaming (a)     7,598       214    
Brookfield Homes     2,487       66    
Brookstone*     3,343       63    
Brown Shoe     3,023       76    
Buckle     1,128       31    
Buffalo Wild Wings*     950       27    
Building Materials Holding     2,241       62    
Burlington Coat Factory     2,930       62    
Cache*     1,590       24    
California Pizza Kitchen*     3,301       72    
Callaway Golf     11,225       119    
Carmike Cinemas     1,262       44    
Carters*     1,100       30    
Casual Male Retail Group*     4,692       25    
Catalina Marketing, Cl C     8,700       201    
Cato, Cl A     3,118       69    
CBRL Group (a)     7,900       285    
CEC Entertainment*     6,236       229    
Champion Enterprise*     11,760       121    
Charlotte Russe Holding*     1,938       22    
Charming Shoppes*     19,199       137    
Charter Communications, Cl A* (a)     44,944       120    
Cherokee     1,054       25    

 

FIRST AMERICAN FUNDS Annual Report 2004

23


Schedule of Investments September 30, 2004

Small Cap Index Fund (continued)

DESCRIPTION   SHARES   VALUE (000)  
Children's Place Retail Stores*     2,968     $ 71    
Christopher & Banks     6,267       100    
Churchill Downs     1,277       50    
Circle Group Holdings*     3,350       6    
CKE Restaurants* (a)     8,632       95    
Coachmen Industries     2,354       37    
Coldwater Creek* (a)     3,658       76    
Cole National*     2,255       62    
Collins & Aikman*     6,392       27    
Conns*     1,160       16    
Cooper Tire & Rubber (a)     10,766       217    
Cosi*     3,430       18    
Cost Plus* (a)     3,646       129    
Courier     1,073       45    
Cross Media Marketing* (b)     1,203       -    
Crown Media Holdings, Cl A*     2,428       20    
CSK Auto*     7,767       103    
CSS Industries     1,163       36    
Cumulus Media, Cl A*     8,225       118    
Dave & Busters*     1,850       35    
Deb Shops     649       16    
Deckers Outdoor* (a)     1,490       51    
Department 56*     2,207       36    
DHB Industries*     3,407       48    
Dicks Sporting Goods*     5,032       179    
Dominion Homes*     700       17    
Dover Downs Gaming & Entertainment     1,689       17    
Dover Motorsports     2,601       11    
Dress Barn*     3,264       57    
Drew Industries*     1,190       43    
Drugstore.com*     7,390       25    
Electronics Boutique Holdings* (a)     1,937       66    
Emmis Communications, Cl A* (a)     8,178       148    
Empire Resorts*     1,430       11    
Entravision Communications*     8,050       61    
Escalade     1,310       18    
Ethan Allen Interiors (a)     5,500       191    
Exide Technologies*     3,340       53    
Finish Line, Cl A     3,025       94    
Fisher Communications*     977       47    
Fleetwood Enterprises* (a)     8,948       136    
Fred's     6,526       117    
Furniture Brands International (a)     8,690       218    
GameStop*     2,459       46    
Gander Mountain*     1,020       20    
Gaylord Entertainment*     5,089       158    
Genesco* (a)     3,637       86    
Goodyear Tire & Rubber* (a)     25,393       273    
Goody's Family Clothing     3,142       26    
Gray Television     7,491       89    
Grey Global Group     140       139    
Group 1 Automotive* (a)     3,252       89    
GSI Commerce*     3,230       28    
Guess?*     2,483       44    
Guitar Center* (a)     4,067       176    
Gymboree*     5,097       73    
Hancock Fabrics     3,151       38    
Handleman     3,843       79    
Harris Interactive*     8,170       54    
Hartmarx*     4,640       34    
Haverty Furniture     3,097       54    
Hayes Lemmerz International*     6,300       64    
Hibbett Sporting Goods*     3,903       80    
Hollinger International     9,576       166    
Hollywood Entertainment*     8,781       87    
Hooker Furniture     1,146       32    
Hot Topic* (a)     8,046       137    
IHOP (a)     3,409       130    

 

Small Cap Index Fund (continued)

DESCRIPTION   SHARES   VALUE (000)  
Information Holdings*     1,973     $ 54    
Insight Communications*     7,495       66    
Insight Enterprises*     8,077       136    
Interactive Data*     6,130       115    
Interface, Cl A*     7,388       59    
Isle of Capri Casinos*     2,255       44    
J Jill Group*     2,963       59    
Jack in the Box*     6,091       193    
JAKKS Pacific*     4,227       97    
Jarden*     4,538       166    
Jo-Ann Stores*     3,147       88    
JOS A Bank Clothiers* (a)     1,705       47    
Journal Communications     3,370       59    
Journal Register*     7,004       132    
K2*     6,935       99    
Kellwood     4,529       165    
Kenneth Cole Productions     1,395       39    
Keystone Automotive Industries*     2,533       56    
Kimball International     3,502       49    
Kirkland's*     1,851       17    
Krispy Kreme Doughnuts* (a)     9,160       116    
K-Swiss, Cl A (a)     4,312       83    
La Quinta (REIT)*     31,352       245    
Lakes Entertainment* (a)     2,560       27    
Landry's Restaurants     3,588       98    
La-Z-Boy (a)     8,780       133    
LeapFrog Enterprises* (a)     4,580       93    
Levitt, Cl A     2,559       60    
Libbey     2,178       41    
Liberty     2,408       96    
Life Time Fitness     5,620       144    
Lifetime Hoan     1,060       16    
Lin TV, Cl A* (a)     4,477       87    
Linens 'N Things* (a)     7,529       174    
Lithia Motors     2,385       51    
LKQ*     2,430       44    
LodgeNet Entertainment*     2,182       29    
Lone Star Steakhouse & Saloon     2,544       66    
M/I Homes     2,021       86    
Magna Entertainment*     6,288       34    
Marcus     3,288       64    
Marine Products     1,440       26    
MarineMax*     1,937       44    
Martha Stewart Living* (a)     1,946       31    
Mediacom Communications*     11,788       77    
Men's Wearhouse* (a)     5,277       153    
Meritage Homes*     1,770       139    
MicroAge* (b)     3,579       -    
Midas*     2,582       42    
Modine Manufacturing     3,968       119    
Monaco Coach     4,359       94    
Monro Muffler Brake*     1,563       34    
Movado Group     2,538       43    
Movie Gallery     4,435       78    
MTR Gaming Group*     3,874       36    
Multimedia Games*     3,944       61    
National Presto Industries*     783       33    
Nautilus Group (a)     4,775       108    
Navarre*     3,490       51    
Navigant International* (a)     2,957       48    
Nevada Gold & Casinos*     1,360       16    
Nexstar Broadcasting Group, Cl A*     1,680       14    
Noble International     1,060       19    
Oakley     3,449       41    
Orbitz* (a)     2,040       55    

 

The accompanying notes are an integral part of the financial statements.

FIRST AMERICAN FUNDS Annual Report 2004

24


Small Cap Index Fund (continued)

DESCRIPTION   SHARES   VALUE (000)  
OshKosh B' Gosh, Cl A     1,111     $ 22    
O'Charley's*     3,541       58    
Overstock.com*     1,814       67    
Oxford Industries     2,216       83    
P. F. Chang's China Bistro* (a)     4,271       207    
Palm Harbor Homes*     1,584       27    
Panera Bread, Cl A* (a)     4,734       178    
Papa John's International*     1,942       60    
Party City*     1,908       28    
Paxson Communications*     7,566       10    
Payless ShoeSource* (a)     11,358       115    
PC Mall*     1,300       20    
Penn National Gaming*     5,339       216    
Pep Boys – Manny Moe & Jack (a)     9,630       135    
Perry Ellis International*     1,025       23    
PetMed Express*     1,640       8    
Phillips Van-Heusen     4,045       90    
Pinnacle Entertainment*     5,930       82    
Playboy Enterprises, Cl B*     3,264       33    
Priceline.com* (a)     3,986       88    
Prime Hospitality*     6,300       77    
PRIMEDIA*     22,021       52    
ProQuest* (a)     3,997       103    
Provide Commerce*     730       15    
Pulitzer     1,396       69    
Quiksilver* (a)     9,420       239    
R.H. Donnelley*     3,760       186    
RARE Hospitality International*     5,669       151    
RC2*     2,751       91    
Reader's Digest Association, Cl A     16,520       241    
Reading International, Cl A*     2,407       19    
Red Robin Gourmet Burgers*     1,996       87    
Regent Communication*     5,813       33    
Rent-Way*     4,376       30    
Restoration Hardware*     4,393       23    
Retail Ventures*     2,210       17    
Rush Enterprises*     970       11    
Russ Berrie and Company     1,339       27    
Russell     4,775       80    
Ryans Restaurant Group*     7,632       113    
Saga Communications, Cl A*     2,724       46    
Salem Communications*     1,600       41    
Sauer-Danfoss     1,680       29    
Scholastic*     5,040       156    
Scientific Games*     12,768       244    
SCP Pool     8,899       238    
Select Comfort*     6,078       111    
Sharper Image*     1,960       42    
Shoe Carnival*     1,228       14    
Shopko*     4,736       82    
Shuffle Master* (a)     3,869       145    
Sinclair Broadcast Group, Cl A     7,468       55    
Six Flags*     15,524       84    
Skechers USA*     3,312       48    
Skyline     1,134       45    
Sonic*     9,908       254    
Sonic Automotive, Cl A     4,615       93    
Source Interlink Companies*     3,281       32    
Spanish Broadcasting System*     6,168       61    
Speedway Motorsports     2,468       82    
Sports Authority* (a)     3,714       86    
Sports Resorts International*     367       1    
Stage Stores*     3,128       107    
Stamps.com*     2,708       36    
Standard Motor Products     2,008       30    
Stanley Furniture     937       41    

 

Small Cap Index Fund (continued)

DESCRIPTION   SHARES   VALUE (000)  
Steak 'N Shake*     4,258     $ 73    
Stein Mart*     4,130       63    
Steinway Musical Instruments*     1,124       31    
Steven Madden*     2,179       38    
Stoneridge*     2,379       34    
Strattec Security*     618       38    
Stride Rite     6,523       67    
Sturm, Ruger & Company     3,531       32    
Sunterra*     3,100       30    
Superior Industries (a)     3,534       106    
Systemax*     1,610       9    
TBC*     3,297       74    
Technical Olympic USA     1,917       54    
Tempur-Pedic International*     3,080       46    
Tenneco Automotive* (a)     6,992       92    
Thomas Nelson     1,678       33    
Thor Industries     5,978       158    
TiVo* (a)     7,620       50    
Too*     5,741       104    
Tower Automotive* (a)     9,684       20    
Tractor Supply*     5,188       163    
Trans World Entertainment*     3,875       38    
Triarc, Cl B     5,962       68    
Tuesday Morning* (a)     4,299       133    
Tupperware (a)     7,503       127    
UniFirst     1,506       43    
United Auto Group     3,200       80    
Universal Electronics*     2,331       39    
Vail Resorts*     3,273       59    
Valassis Communications* (a)     8,700       257    
Value Line     210       8    
ValueVision Media*     3,000       40    
Visteon (a)     21,602       173    
Warnaco Group, Cl A*     7,659       170    
WCI Communities* (a)     5,645       132    
WESCO International*     3,003       73    
West Marine*     2,238       48    
Weyco Group     450       17    
William Lyon Homes*     701       62    
Winnebago Industries (a)     4,332       150    
WMS Industries* (a)     3,237       83    
Wolverine World Wide (a)     6,644       167    
World Wrestling Entertainment     2,135       26    
Yankee Candle* (a)     8,292       240    
Young Broadcasting, Cl A*     2,694       29    
Zale* (a)     8,854       249    
      24,800    
Consumer Staples – 2.7%      
Alico     593       25    
American Italian Pasta (a)     2,674       70    
Arden Group, Cl A     216       18    
Boston Beer, Cl A*     1,140       29    
Cal-Maine Foods (a)     2,500       27    
Casey's General Stores     8,339       155    
Central European Distribution*     1,957       44    
Central Garden & Pet*     2,816       86    
Chattem*     2,693       87    
Chiquita Brands International*     6,795       118    
Coca-Cola Bottling     1,134       61    
Corn Products International     6,081       280    
Darling International*     11,020       47    
Del Laboratories*     814       27    
Delta & Pine Land     6,307       169    
DIMON     7,527       44    
Elizabeth Arden*     3,739       79    

 

FIRST AMERICAN FUNDS Annual Report 2004

25


Schedule of Investments September 30, 2004

Small Cap Index Fund (continued)

DESCRIPTION   SHARES   VALUE (000)  
Farmer Brothers     1,250     $ 33    
Flowers Foods     5,929       153    
Great Atlantic & Pacific Tea*     2,758       17    
Hain Celestial Group*     5,063       90    
Hansen Natural*     1,000       24    
Ingles Markets, Cl A     1,520       18    
Inter Parfums     841       11    
J & J Snack Foods*     1,254       54    
John B. Sanfilippo & Son*     1,048       27    
Lancaster Colony     4,040       170    
Lance     4,278       69    
Longs Drug Stores     5,038       122    
M & F Worldwide*     1,695       22    
Mannatech     2,370       33    
Maui Land & Pineapple*     542       17    
MGP Ingredients     1,320       13    
Nash-Finch     2,055       65    
National Beverage*     1,740       14    
Natures Sunshine Product     1,588       24    
NeighborCare*     6,271       159    
Nu Skin Enterprises (a)     8,773       206    
Omega Protein*     992       8    
Pantry*     1,940       49    
Pathmark Stores*     5,021       24    
Peets Coffee & Tea*     1,964       46    
Performance Food Group*     7,740       183    
Playtex Products*     5,800       37    
Ralcorp Holdings*     4,882       176    
Rayovac*     5,746       151    
Revlon*     24,357       61    
Robert Mondavi, Cl A*     1,572       62    
Ruddick     5,509       108    
Sanderson Farms     1,722       58    
Seaboard     58       34    
Smart & Final*     2,085       35    
Standard Commercial     2,135       34    
Star Scientific* (a)     4,547       27    
Topps     5,913       58    
United Natural Foods*     6,614       176    
Universal     4,194       187    
Usana Health Sciences*     1,678       58    
Vector Group (a)     4,365       66    
WD-40 Company     2,846       81    
Weis Markets     1,521       52    
Wild Oats Markets*     4,829       42    
Winn-Dixie Stores* (a)     13,710       42    
      4,562    
Energy – 5.5%      
Atlas America*     380       8    
Atwood Oceanics*     1,811       86    
Berry Petroleum, Cl A     3,015       111    
Brigham Exploration*     4,230       40    
Cabot Oil & Gas (a)     5,491       247    
Cal Dive International* (a)     6,378       227    
Callon Petroleum*     2,090       26    
Carbo Ceramics     2,119       153    
Cheniere Energy*     3,350       66    
Cimarex Energy* (a)     6,907       241    
Clayton Williams Energy*     844       18    
Comstock Resources*     5,783       121    
Delta Petroleum*     3,140       41    
Denbury Resources*     9,127       232    
Dril-Quip*     1,083       24    
Edge Petroleum*     2,160       34    
Encore Acquisition*     3,997       138    

 

Small Cap Index Fund (continued)

DESCRIPTION   SHARES   VALUE (000)  
Energy Partners*     4,170     $ 68    
Forest Oil* (a)     8,400       253    
Frontier Oil     3,932       93    
FX Energy* (a)     4,710       43    
Giant Industries*     1,760       43    
Global Industries*     13,553       84    
Grey Wolf*     31,093       152    
Gulf Island Fabrication     1,336       30    
GulfMark Offshore*     2,407       39    
Hanover Compressor* (a)     12,823       172    
Harvest Natural Resources*     5,996       100    
Helmerich & Payne     8,110       233    
Holly     3,250       83    
Hornbeck Offshore Services* (a)     1,010       17    
Houston Exploration* (a)     2,286       136    
Hydril*     2,692       116    
Input/Output* (a)     10,628       110    
KCS Energy*     8,163       114    
Key Energy Services*     21,790       241    
KFX* (a)     7,536       58    
Lone Star Technologies*     4,804       182    
Lufkin Industries     1,088       40    
Magnum Hunter Resources*     14,478       167    
Magnum Hunter Resources Warrant*     1,160       -    
Matrix Service*     2,864       15    
Maverick Tube*     7,066       218    
McMoRan Exploration* (a)     2,204       29    
Meridian Resource*     10,160       90    
Mission Resources*     6,770       43    
Newpark Resources*     13,988       84    
NS Group*     3,057       57    
Oceaneering International*     4,164       153    
Offshore Logistics*     3,372       116    
Oil States International* (a)     4,851       91    
Overseas Shipholding Group     4,485       223    
Parker Drilling*     15,735       58    
Penn Virginia     3,044       121    
Petroleum Development*     2,715       119    
Plains Exploration & Production* (a)     12,856       307    
Quicksilver Resources*     4,924       161    
Range Resources (a)     11,273       197    
Remington Oil & Gas*     3,607       95    
Resource America, Cl A     2,477       58    
RPC     1,588       28    
Seabulk International*     972       10    
SEACOR Holdings*     3,099       145    
Southwestern Energy* (a)     6,020       253    
Spinnaker Exploration* (a)     4,189       147    
St. Mary Land & Exploration     4,768       190    
Stone Energy*     3,842       168    
Superior Energy Services*     9,047       117    
Swift Energy*     4,625       111    
Syntroleum*     4,680       33    
Tesoro Petroleum* (a)     10,937       323    
Tetra Technologies*     3,727       116    
TODCO* (a)     4,240       74    
TransMontaigne*     3,458       20    
Unit* (a)     6,290       221    
Universal Compression Holdings*     2,875       98    
Veritas DGC*     5,678       129    
Vintage Petroleum     8,481       170    
W-H Energy Services*     4,086       85    
Whiting Petroleum*     3,460       105    
World Fuel Services     1,687       60    
      9,225    

 

The accompanying notes are an integral part of the financial statements.

FIRST AMERICAN FUNDS Annual Report 2004

26


Small Cap Index Fund (continued)

DESCRIPTION   SHARES   VALUE (000)  
Financials – 22.2%  
1st Source     1,968     $ 50    
21st Century Insurance Group     3,694       49    
ABC Bancorp     1,630       33    
Acadia Realty Trust (REIT)     4,092       60    
Accredited Home Lenders Holdings* (a)     2,725       105    
Ace Cash Express*     1,500       39    
Advanta, Cl B     3,278       79    
Affiliated Managers Group* (a)     4,068       218    
Affirmative Insurance Holdings*     2,800       44    
Affordable Residential Communities     4,120       60    
Alabama National     2,178       130    
Alexander's (REIT)*     427       85    
Alexandria Real Estate Equities     3,234       213    
Alfa     5,506       77    
AMCORE Financial     4,191       119    
American Equity Investment Life Holding*     3,590       34    
American Financial Realty (a)     18,300       258    
American Home Mortgage Investment (REIT)     5,791       162    
American Medical Security Group*     1,976       63    
American Physicians Capital*     1,423       44    
American West Bancorp*     1,708       32    
AmerUS Group, Cl A (a)     6,369       261    
AMLI Residential Properties Trust (REIT)     4,219       129    
Anchor Bancorp     3,288       85    
Anthracite Capital (REIT)     8,883       99    
Anworth Mortgage Asset (REIT)     7,452       85    
Apollo Investment     10,350       146    
Arbor Realty Trust     1,170       26    
Argonaut Group*     4,136       77    
Arrow Financial     1,483       45    
Ashford Hospitality Trust     3,340       31    
Asta Funding     1,550       25    
Baldwin & Lyons, Cl B     1,340       34    
BancFirst     538       34    
Bancorp Bank*     1,150       23    
BancorpSouth     12,890       296    
BancTrust Financial Group     1,427       27    
Bank Mutual     13,144       158    
Bank of Granite     2,259       44    
Bank of the Ozarks     1,774       53    
BankAtlantic Bancorp     7,096       130    
BankUnited Financial*     4,438       129    
Banner     1,687       50    
Bedford Property Investors (REIT)     2,421       73    
Berkshire Hills Bancorp     894       33    
Beverly Hills Bancorp     2,210       23    
BFC Financial*     1,150       13    
BioMed Realty Trust     5,240       92    
BKF Capital Group     910       27    
Boston Private Financial Holdings (a)     4,555       114    
Brandywine Realty Trust (REIT) (a)     7,937       226    
Bristol West Holdings     2,520       43    
Brookline Bancorp     9,852       154    
Bryn Mawr Bank     1,174       24    
Camden National     1,288       44    
Capital Automotive (REIT)     5,196       162    
Capital City Bank Group     1,484       57    
Capital Corporation of the West     752       32    
Capital Crossing Bank*     710       18    
Capital Lease Funding     3,780       42    
Capital Southwest     460       35    
Capital Trust     1,620       47    
Capitol Bancorp     1,701       50    
Capstead Mortgage (REIT) (a)     2,522       31    
CarrAmerica Realty (a)     8,700       284    

 

Small Cap Index Fund (continued)

DESCRIPTION   SHARES   VALUE (000)  
Cascade Bancorp     2,775     $ 54    
Cash America International     4,733       116    
Cathay General Bancorp     7,126       265    
Cedar Shopping Centers     2,750       38    
Center Financial     1,602       30    
Central Coast Bancorp*     1,493       30    
Central Pacific Financial     4,947       136    
Century Bancorp, Cl A     584       19    
Ceres Group*     5,030       27    
Charter Financial     665       23    
CharterMac     7,027       155    
Chemical Financial     3,995       146    
Chittenden     7,676       209    
Citizens* (a)     4,887       29    
Citizens Banking     7,231       236    
Citizens First Bancorp     1,424       36    
City Bank     1,288       45    
City Holdings     2,790       92    
Clark*     2,695       36    
Clifton Savings Bancorp     2,290       27    
CNA Surety*     2,596       28    
Coastal Financial     2,173       31    
CoBiz (a)     2,145       35    
Colonial Properties Trust (REIT)     3,164       127    
Columbia Bancorp – Maryland     969       28    
Columbia Banking System     2,338       56    
Commerce Group     3,850       186    
Commercial Capital Bancorp     6,066       138    
Commercial Federal     6,797       183    
Commercial Net Lease Realty (REIT)     8,616       157    
Community Bank System     4,510       113    
Community Banks     1,781       52    
Community First Bankshares     5,947       191    
Community Trust Bancorp     1,807       56    
CompuCredit*     3,112       58    
Consolidated-Tomoka Land     943       33    
Cornerstone Realty Income Trust (REIT)     8,366       82    
Corporate Office Properties Trust (REIT)     5,669       145    
Correctional Properties Trust (REIT)     1,834       50    
Corus Bankshares     2,596       112    
Cousins Properties     5,990       206    
Crawford & Company     2,143       14    
Credit Acceptance*     1,780       34    
CRT Properties     4,480       96    
CVB Financial     6,115       136    
Danielson Holding*     7,650       47    
Delphi Financial Group     4,121       166    
Dime Community Bancshares     5,164       87    
Direct General     2,640       76    
Donegal Group, Cl A     1,050       20    
Downey Financial (a)     3,270       180    
East West Bancorp     8,388       282    
EastGroup Properties (REIT)     3,501       116    
Education Lending Group* (a)     2,090       31    
EMC Insurance Group     368       8    
Encore Capital Group*     2,020       38    
Enstar Group*     532       26    
Entertainment Properties Trust (REIT) (a)     3,924       148    
Equity Inns (REIT)     7,582       75    
Equity One (REIT)     5,668       111    
eSPEED, Cl A*     4,019       40    
Essex Property Trust (REIT)     3,815       274    
F.N.B     7,720       171    
F.N.B. – Virginia     1,207       32    
Farmers Capital Bank     1,005       34    
FBL Financial Group, Cl A     2,072       54    

 

FIRST AMERICAN FUNDS Annual Report 2004

27


Schedule of Investments September 30, 2004

Small Cap Index Fund (continued)

DESCRIPTION   SHARES   VALUE (000)  
Federal Agricultural Mortgage, Cl C*     1,406     $ 31    
FelCor Lodging Trust (REIT)*     9,355       106    
Fidelity Bankshares     2,198       82    
Financial Federal* (a)     2,884       108    
Financial Institutions     1,345       30    
First Acceptance     3,410       24    
First Bancorp – North Carolina     1,241       42    
First Bancorp of Puerto Rico     5,740       277    
First Busey     2,214       42    
First Cash Financial Services*     1,960       39    
First Charter     4,995       121    
First Citizens Bancshares, Cl A     1,015       120    
First Commonwealth Financial – Pennsylvania     11,073       151    
First Community Bancorp     2,175       89    
First Community Bancshares – Nevada     1,670       55    
First Federal Capital     3,327       101    
First Financial – Indiana     2,258       71    
First Financial Bancorp – Ohio     5,854       100    
First Financial Bankshares     2,280       92    
First Financial Holdings     2,007       63    
First Indiana     1,971       40    
First Industrial Realty Trust (REIT) (a)     6,644       245    
First Merchants     3,090       76    
First Midwest Bancorp     7,510       260    
First National Bankshares of Florida     7,986       196    
First Niagara Financial Group (a)     14,047       188    
First Oak Brook Bancshares     1,121       35    
First of Long Island     570       24    
First Place Financial     2,274       45    
First Republic Bank – California (a)     2,166       100    
First State Bancorp – New Mexico     1,274       40    
FirstBank Fractional Shares (c)     -       -    
FirstFed Financial*     2,833       138    
Flagstar Bancorp     5,244       112    
Flushing Financial     2,824       54    
FPIC Insurance Group* (a)     1,340       35    
Franklin Bank*     1,770       30    
Frontier Financial     2,699       95    
G B & T Bancshares     1,477       33    
Gabelli Asset Management     1,103       47    
Gables Residential Trust (REIT)     4,879       167    
GATX     8,227       219    
German American     1,547       26    
Getty Realty (REIT)     2,929       77    
Glacier Bancorp (a)     4,088       119    
Gladstone Capital     1,282       29    
Glenborough Realty Trust (REIT)     4,644       96    
Glimcher Realty Trust (REIT)     5,922       144    
Global Signal     8,440       193    
Gold Banc     6,686       90    
Government Properties Trust     3,220       31    
Great American Financial Resources     1,208       18    
Great Southern Bancorp     1,726       54    
Greater Bay Bancorp (a)     8,568       246    
Greenhill & Company*     840       20    
Hancock Holding     4,638       147    
Hanmi Financial     2,458       74    
Harbor Florida Bancshares     3,474       108    
Harleysville Group     2,158       45    
Harleysville National     4,428       109    
Harris & Harris Group*     2,590       27    
Healthcare Realty Trust (REIT)     7,710       301    
Heartland Financial USA     1,660       31    
Heritage Property Investment Trust (REIT)     4,534       132    
Highland Hospitality     5,770       66    
Highwoods Properties (REIT)     8,652       213    

 

Small Cap Index Fund (continued)

DESCRIPTION   SHARES   VALUE (000)  
Hilb, Rogal & Hobbs (a)     4,932     $ 179    
Home Properties (REIT)     5,466       216    
Horace Mann Educators     7,127       125    
Horizon Financial     1,540       30    
Hudson River     5,066       96    
IBERIABANK     1,050       61    
IMPAC Mortgage Holdings (REIT)     11,017       290    
Independence Holdings     765       14    
Independent Bank     2,457       76    
Independent Bank – Michigan     3,097       84    
Infinity Property & Casualty     3,449       102    
Innkeepers USA Trust (REIT)     5,451       68    
Integra Bank     2,552       55    
Interchange Financial Services     1,836       44    
Investment Technology Group*     7,315       112    
Investors Real Estate Trust (REIT)     6,866       69    
Irwin Financial     2,925       76    
ITLA Capital*     888       41    
Jones Lang LaSalle*     5,322       176    
Kansas City Life Insurance     618       26    
K-Fed Bancorp*     950       14    
Kilroy Realty (REIT) (a)     4,741       180    
Kite Realty Group Trust     2,860       38    
KNBT Bancorp     5,100       86    
Knight Trading Group* (a)     19,521       180    
Kramont Realty Trust (REIT)     4,019       75    
LaBranche*     8,830       75    
Lakeland Bancorp     2,862       47    
Lakeland Financial     972       33    
LandAmerica Financial Group     3,158       144    
Lasalle Hotel Properties (REIT)     4,628       128    
Lexington Corporate Properties Trust (REIT)     8,039       175    
LNR Property (a)     2,860       177    
LTC Properties (REIT) (a)     2,458       44    
Luminent Mortgage Capital     6,090       77    
Macatawa Bank     1,543       43    
MAF Bancorp     4,573       197    
Maguire Properties     5,670       138    
Main Street Banks     2,271       69    
MainSource Financial Group     1,556       32    
Manufactured Home Communities (REIT) (a)     3,666       122    
Marlin Business Services*     990       19    
MB Financial     3,217       128    
MBT Financial     2,408       47    
MCG Capital     5,091       88    
Mercantile Bank     1,201       42    
MeriStar Hospitality (REIT)*     16,091       88    
Metris*     5,380       53    
MFA Mortgage Investments (REIT)     12,688       117    
Mid-America Apartment Communities (REIT)     2,973       116    
Midland     1,512       41    
Mid-State Bancshares     3,932       101    
Midwest Banc Holdings     1,799       35    
Mission West Properties (REIT)     2,968       31    
Nara Bancorp     3,068       62    
NASB Financial     510       20    
National Financial Partners     5,570       199    
National Health Investors (REIT)     3,641       104    
National Penn Bancshares     5,743       147    
National Western Life Insurance, Cl A*     361       59    
Nationwide Health Properties (REIT)     10,589       220    
Navigators Group*     1,432       42    
NBC Capital     1,029       26    
NBT Bancorp     5,495       129    
Nelnet*     1,350       30    
NetB@nk     8,901       89    

 

The accompanying notes are an integral part of the financial statements.

FIRST AMERICAN FUNDS Annual Report 2004

28


Small Cap Index Fund (continued)

DESCRIPTION   SHARES   VALUE (000)  
New Century Financial     4,740     $ 285    
Newcastle Investment (REIT)     5,669       174    
Northwest Bancorp     3,149       71    
NovaStar Financial (REIT) (a)     4,172       182    
NYMAGIC     550       12    
Oak Hill Financial     580       20    
OceanFirst Financial     1,493       36    
Ocwen Financial* (a)     6,370       58    
Ohio Casualty*     10,232       214    
Old National Bancorp     11,070       275    
Old Second Bancorp     2,236       63    
Omega Financial     1,275       44    
OMEGA Healthcare Investors (REIT)     7,736       83    
Oriental Financial Group     2,829       77    
Origen Financial     1,370       10    
Orleans Homebuilders*     516       12    
Pacific Capital Bancorp     7,586       224    
Park National     2,210       281    
Parkway Properties (REIT)     1,831       85    
Partners Trust Financial Group     5,159       53    
Peapack-Gladstone Financial     1,209       37    
Penn-America Group     1,602       22    
PennFed Financial Services     941       29    
PennRock Financial Savings     1,283       36    
Pennsylvania (REIT)     5,245       203    
Peoples Bancorp – Ohio     1,771       47    
Peoples Holding Company     1,497       49    
PFF Bancorp     2,070       79    
Philadelphia Consolidated Holding*     2,977       164    
Phoenix Companies (a)     15,787       164    
Piper Jaffray Companies*     3,310       131    
PMA Capital*     4,509       34    
Post Properties (REIT)     6,338       190    
Prentiss Properties Trust (REIT)     7,049       254    
Presidential Life     3,553       61    
Price Legacy (REIT)     3,664       69    
PrivateBancorp     2,742       74    
ProAssurance*     4,648       163    
Prosperity Bancshares     2,766       74    
Provident Bancorp     6,611       78    
Provident Bankshares     5,430       182    
Provident Financial Holdings     742       22    
Provident Financial Services     12,946       223    
PS Business Parks (REIT)     2,629       105    
R&G Financial     4,641       179    
RAIT Investment Trust (REIT)     4,077       112    
Ramco-Gershenson Properties Trust (REIT) (a)     2,376       64    
Realty Income (REIT)     6,310       284    
Redwood Trust (REIT) (a)     2,672       167    
Republic Bancorp     10,678       164    
Republic Bancorp, Cl A – Kentucky     1,359       32    
Rewards Network*     2,664       18    
Riggs National (a)     2,648       59    
RLI     3,733       140    
Royal Bancshares of Pennsylvania, Cl A     713       17    
S Y Bancorp     1,976       45    
S&T Bancorp     3,952       141    
Safety Insurance Group     1,669       37    
Sanders Morris Harris Group     1,830       22    
Sandy Spring Bancorp     2,422       79    
Santander Bancorp     876       22    
Saul Centers (REIT)     2,191       72    
SCBT Financial     1,289       38    
Seacoast Banking     1,932       41    
Security Bank     778       27    
Selective Insurance Group     4,627       172    

 

Small Cap Index Fund (continued)

DESCRIPTION   SHARES   VALUE (000)  
Senior Housing Properties Trust (REIT) (a)     8,946     $ 159    
Signature Bank*     930       25    
Silicon Valley Bancshares*     5,895       219    
Simmons First National, Cl A     2,449       63    
Smithtown Bancorp     870       22    
Southern Community Financial     2,480       28    
Southside Bancshares     1,557       32    
Southwest Bancorp – Oklahoma     1,784       39    
Southwest Bancorp of Texas (a)     11,458       231    
Sovran Self Storage (REIT)     2,481       97    
State Auto Financial     2,248       65    
State Bancorp     1,350       31    
State Financial Services, Cl A     962       26    
Sterling Bancorp     2,247       61    
Sterling Bancshares     7,474       101    
Sterling Financial – Pennsylvania     3,587       96    
Sterling Financial – Washington*     4,164       147    
Stewart Information Services     2,840       112    
Stifel Financial*     1,206       24    
Suffolk Bancorp     1,816       55    
Summit Properties (REIT)     4,685       127    
Sun Bancorp – New Jersey*     1,618       35    
Sun Communities (REIT)     2,688       105    
Susquehanna Bancshares     7,683       189    
SWS Group     2,421       39    
Tanger Factory Outlet Centers (REIT)     2,270       102    
Tarragon Realty Investors* (a)     1,486       19    
Taubman Centers (REIT)     8,297       214    
Taylor Capital Group     646       16    
Tejon Ranch*     1,267       48    
Texas Capital Bancshares*     4,540       82    
Texas Regional Bancshares, Cl A     6,852       213    
TierOne     3,101       72    
Tompkins Trustco     1,162       54    
Town & Country Trust (REIT)     2,910       74    
Tradestation Group*     3,131       19    
Trammell Crow*     5,464       86    
Triad Guaranty*     1,559       86    
TriCo Bancshares     1,870       39    
TrustCo Bank Corporation of New York     11,917       153    
Trustmark     7,490       233    
U.S. Restaurant Properties (REIT)     3,342       56    
UICI     6,303       206    
UMB Financial     2,519       120    
Umpqua Holdings (a)     7,295       165    
Union Bankshares     1,448       45    
United Bankshares     5,960       207    
United Community Banks     4,746       115    
United Community Financial     4,503       51    
United Fire & Casualty     1,204       69    
United PanAm Financial*     774       14    
Universal American Financial*     4,843       63    
Universal Health Realty Income Trust (REIT)     1,958       59    
Univest Corporation of Pennsylvania     1,270       52    
Unizan Financial     3,628       100    
Urstadt Biddle Properties, Cl A (REIT)     3,514       54    
USB Holding     2,116       53    
USB Holding Company Fractional Share (c)     –       –    
USI Holdings*     5,879       80    
Vesta Insurance Group     6,020       27    
Virginia Commerce Bancorp*     1,136       31    
Virginia Financial Group     1,199       39    
Washington Real Estate Investment Trust (REIT)     6,967       211    
Washington Trust Bancorp     2,203       58    
Waypoint Financial     4,995       138    
WesBanco     2,946       86    

 

FIRST AMERICAN FUNDS Annual Report 2004

29


Schedule of Investments September 30, 2004

Small Cap Index Fund (continued)

DESCRIPTION   SHARES   VALUE (000)  
West Bancorp     2,815     $ 47    
West Coast Bancorp – Oregon     2,507       52    
Westamerica Bancorporation     5,180       284    
Western Sierra Bancorp*     1,072       36    
Westfield Financial     810       19    
Wilshire Bancorp*     1,120       34    
Winston Hotels (REIT)     3,870       41    
Wintrust Financial     3,375       193    
World Acceptance*     2,684       62    
WSFS Financial     1,001       50    
Yardville National Bancorp     1,454       42    
Zenith National Insurance     1,774       75    
      37,396    
Health Care – 12.8%      
Abaxis*     2,910       38    
Abgenix* (a)     13,567       134    
ABIOMED*     2,540       22    
Able Laboratories* (a)     2,727       52    
Adolor*     6,481       73    
Advanced Medical Optics* (a)     5,955       236    
Advanced Neuromodulation Systems*     3,349       102    
Advancis Pharmaceuticals*     1,400       11    
Advisory Board*     2,948       99    
Aksys* (a)     1,344       6    
Albany Molecular Research* (a)     3,875       37    
Alderwoods Group*     6,671       66    
Alexion Pharmaceuticals*     4,512       81    
Align Technology*     8,687       133    
Alkermes* (a)     14,958       173    
Alliance Imaging*     2,094       16    
Allscripts Healthcare Solutions* (a)     4,570       41    
Alpharma, Cl A     6,553       120    
AMEDISYS*     2,180       65    
America Service Group*     1,180       48    
American Healthways*     4,822       140    
American Medical Systems*     4,213       153    
AMERIGROUP*     4,125       232    
AMN Healthcare Services*     1,915       23    
Amsurg, Cl A*     5,048       107    
Analogic (a)     1,829       76    
Animas*     710       11    
Antigenetics*     4,236       26    
Applera*     12,179       142    
Apria Healthcare Group*     8,330       227    
Ariad Pharmaceuticals*     8,724       58    
Array Biopharma*     3,980       28    
Arrow International (a)     3,086       92    
Arthrocare*     3,547       104    
Aspect Medical Systems*     2,047       37    
AtheroGenics* (a)     6,180       204    
Atrix Laboratories*     3,657       112    
Avant Immunotherapeutics*     12,402       21    
Axonyx*     8,550       48    
Barrier Therapeutics*     1,090       13    
Bentley Pharmaceuticals*     2,565       27    
Beverly Enterprises*     17,894       135    
BioCryst Pharmaceuticals*     2,730       14    
Bioenvision*     3,530       28    
Biolase Technology (a)     3,583       29    
BioMarin Pharmaceutical*     10,744       56    
Bio-Rad Laboratories, Cl A*     2,900       148    
Bio-Reference Labs*     1,290       18    
Biosite* (a)     2,158       106    
BioVeris*     3,424       21    
Bone Care International*     2,607       63    

 

Small Cap Index Fund (continued)

DESCRIPTION   SHARES   VALUE (000)  
Bradley Pharmaceuticals* (a)     2,259     $ 46    
Bruker BioSciences*     3,570       12    
CancerVax* (a)     2,760       22    
Candela*     3,208       37    
Caraco Pharmaceutical Laboratories*     1,510       12    
Cardiac Science*     12,239       23    
CardioDynamics International*     6,011       28    
Cell Genesys*     7,457       67    
Cell Therapeutics* (a)     9,256       63    
Centene*     3,381       144    
Cepheid*     6,965       60    
Cerner* (a)     4,749       205    
Chemed     2,027       113    
Ciphergen Biosystems*     3,864       15    
Closure Medical*     1,149       16    
Computer Programs & Systems     959       19    
Conceptus*     4,252       39    
CONMED*     4,966       131    
Connetics*     5,240       142    
Corcept Therapeutics*     750       6    
Corgentech* (a)     1,280       22    
Corixa*     9,293       39    
Corvel*     1,056       31    
Cross Country Healthcare*     3,833       59    
CTI Molecular Imaging*     5,194       42    
Cubist Pharmaceuticals*     6,713       66    
CuraGen*     7,184       40    
Curis*     6,920       31    
CV Therapeutics* (a)     5,259       66    
Cyberonics* (a)     2,889       59    
Cypress Biosciences*     4,900       57    
Cytogen*     2,590       27    
Cytokinetics*     1,260       17    
Datascope     1,856       69    
deCODE Genetics*     8,010       60    
Dendreon*     9,643       81    
Dendrite International*     6,024       97    
DepoMed* (a)     3,520       18    
Diagnostic Products     3,498       143    
Digene*     2,342       61    
Discovery Laboratories*     7,799       52    
Diversa*     3,947       33    
DJ Orthopedics*     2,982       53    
DOV Pharmaceutical*     2,356       40    
Durect* (a)     5,064       7    
DUSA Pharmaceuticals*     2,500       29    
Dyax*     4,370       33    
Dynavax Technologies*     1,040       6    
Eclipsys*     6,181       96    
Encore Medical*     5,130       26    
Encysive Pharmaceuticals* (a)     9,476       86    
Endocardial Solutions*     3,660       42    
Enzo Biochem*     4,027       60    
Enzon*     7,317       117    
EPIX Medical*     3,807       74    
eResearch Technology*     7,423       99    
Exactech*     1,015       21    
Exelixis*     10,509       85    
E-Z-EM*     1,100       20    
First Health Group*     15,280       246    
First Horizon Pharmaceutical*     4,380       88    
Genaera*     8,750       34    
Genelabs Technologies*     14,690       38    
Genencor International*     1,369       22    
Genesis HealthCare*     3,315       101    
Genta*     10,118       27    

 

The accompanying notes are an integral part of the financial statements.

FIRST AMERICAN FUNDS Annual Report 2004

30


Small Cap Index Fund (continued)

DESCRIPTION   SHARES   VALUE (000)  
Gentiva Health Services*     4,213     $ 69    
Geron*     7,524       45    
GTx*     910       11    
Guilford Pharmaceuticals* (a)     7,331       37    
Haemonetics*     3,151       103    
Hanger Orthopedic Group*     3,575       18    
HealthExtras*     2,769       39    
Hollis-Eden Pharmaceuticals*     2,299       25    
Hologic*     3,403       66    
Hooper Holmes     9,553       43    
Human Genome Sciences*     21,650       236    
ICU Medical* (a)     1,761       46    
IDX Systems*     3,463       112    
I-Flow*     3,030       44    
ILEX Oncology*     6,520       164    
Illumina*     4,850       29    
Immucor*     4,975       123    
Immunicon*     1,010       10    
ImmunoGen*     6,107       31    
Immunomedics*     7,526       20    
Impax Laboratories* (a)     8,115       125    
Incyte* (a)     10,185       98    
Indevus Pharmaceuticals*     6,902       49    
InKine Pharmaceuticals*     8,120       41    
Inspire Pharmaceuticals*     6,339       100    
Integra LifeSciences* (a)     3,388       109    
InterMune*     4,787       56    
Intuitive Surgical*     5,593       138    
Invacare     4,169       192    
Inveresk Research Group*     4,904       181    
Inverness Medical Innovations*     2,240       47    
Isis Pharmaceuticals*     8,646       42    
Isolagen*     3,690       35    
Ista Pharmaceuticals*     1,340       16    
IVAX Diagnostics*     1,030       6    
Kensey Nash*     1,588       42    
Keryx Biopharmaceuticals*     3,610       40    
Kindred Healthcare*     4,396       107    
Kos Pharmaceuticals*     1,992       71    
Kosan Biosciences*     3,520       20    
K-V Pharmaceutical, Cl A*     5,957       107    
Kyphon*     3,880       96    
LabOne*     3,098       91    
Lannet*     1,156       11    
Laserscope*     3,021       61    
LCA-Vision     1,720       44    
Lexicon Genetics*     10,568       70    
LifeCell*     4,740       47    
Lifeline Systems*     1,852       45    
Lifepoint Hospitals* (a)     6,379       191    
Ligand Pharmaceuticals*     12,333       124    
Luminex*     4,475       32    
Magellan Health Services*     4,490       164    
Marshall Edwards*     1,200       11    
Matria Healthcare*     1,720       49    
Matthews International, Cl A     5,373       182    
Maxim Pharmaceuticals* (a)     4,730       13    
Maxygen*     3,755       37    
Medarex* (a)     13,204       97    
MedCath*     1,010       16    
Medical Action Industries*     1,357       23    
Medical Staffing Network Holdings*     2,027       12    
Medicines*     7,964       192    
Mentor (a)     7,302       246    
Merge Technologies*     1,830       32    
Merit Medical Systems*     3,910       59    

 

Small Cap Index Fund (continued)

DESCRIPTION   SHARES   VALUE (000)  
Micro Therapeutics*     1,961     $ 8    
Microtek Medical Holdings*     7,170       23    
Mine Safety Appliances     3,596       146    
Molecular Devices*     2,100       49    
Molina Healthcare*     1,730       61    
Myogen*     2,330       19    
Myriad Genetics*     5,113       87    
NABI Biopharmaceuticals*     9,611       129    
Nanogen* (a)     5,680       22    
National Healthcare     1,123       32    
NDCHealth     6,008       96    
NeoPharm*     2,872       25    
Neose Technologies*     3,953       30    
Neurogen*     4,170       27    
Nitromed*     1,640       39    
Northfield Laboratories* (a)     3,170       42    
Noven Pharmaceuticals*     3,898       81    
NPS Pharmaceuticals* (a)     6,212       135    
Nutraceutical International*     1,170       16    
NuVasive*     1,080       11    
Nuvelo*     4,729       47    
OCA* (a)     7,046       33    
Ocular Sciences* (a)     3,248       156    
Odyssey Healthcare*     6,105       108    
Omnicell*     3,629       48    
Onyx Pharmaceuticals* (a)     5,787       249    
Option Care     2,210       34    
OraSure Technologies*     6,624       42    
OrthoLogic*     5,758       41    
Orthovita*     7,750       35    
Oscient Pharmaceuticals* (a)     10,130       36    
Owens & Minor     6,288       160    
Pain Therapeutics*     4,307       31    
Palatin Technologies*     8,787       26    
Palomar Medical Technologies*     2,000       44    
Par Pharmaceutical Companies* (a)     5,710       205    
PAREXEL International*     4,361       85    
PDI*     1,410       38    
Pediatrix Medical Group*     4,087       224    
Penwest Pharmaceuticals*     2,773       31    
Peregrine Pharmaceuticals*     20,982       34    
Perrigo     10,203       210    
Per-Se Technologies*     3,783       52    
Pharmacyclics*     3,270       34    
Pharmion*     2,480       128    
Pharmos* (a)     14,680       42    
PolyMedica     4,386       135    
Possis Medical*     2,679       42    
POZEN*     4,002       35    
Praecis Pharmaceuticals*     8,735       19    
Priority Healthcare, Cl B*     4,498       91    
Progenics Pharmaceutical*     1,965       29    
Province Healthcare* (a)     8,592       180    
ProxyMed Pharmacy*     1,000       10    
PSS World Medical*     11,251       113    
Psychiatric Solutions*     1,650       42    
Quidel*     5,272       24    
Radiation Therapy Services*     3,750       43    
Regeneration Technologies*     3,873       31    
Regeneron Pharmaceutical*     6,330       55    
RehabCare Group*     2,705       62    
Renovis*     1,000       8    
Res-Care*     2,910       34    
Rigel Pharmaceuticals*     1,670       42    
Salix Pharmaceuticals*     6,005       129    
Santarus*     1,400       13    

 

FIRST AMERICAN FUNDS Annual Report 2004

31


Schedule of Investments September 30, 2004

Small Cap Index Fund (continued)

DESCRIPTION   SHARES   VALUE (000)  
SciClone Pharmaceuticals*     7,438     $ 26    
Seattle Genetics*     5,207       34    
Select Medical     15,360       206    
Serologicals* (a)     4,170       97    
SFBC International*     2,334       61    
Sierra Health Services* (a)     3,836       184    
SOLA International*     5,338       102    
Sonic Innovations*     3,070       14    
SonoSite*     2,456       64    
Specialty Laboratories*     1,331       14    
STERIS* (a)     11,650       256    
Stewart Enterprises, Cl A*     17,924       125    
Sunrise Senior Living* (a)     2,710       95    
SuperGen* (a)     7,390       46    
SurModics* (a)     2,367       56    
Sybron Dental Specialties*     6,429       191    
Symbion*     1,380       22    
Tanox*     3,962       67    
Techne* (a)     6,863       262    
Telik*     7,288       163    
Tercica*     950       9    
Third Wave Technologies*     4,685       32    
Thoratec*     7,554       73    
Transkaryotic Therapies*     4,888       87    
Trimeris*     2,604       39    
TriPath Imaging*     4,594       38    
TriZetto Group*     5,232       31    
United Surgical Partners* (a)     4,692       161    
United Therapeutics*     3,154       110    
Urologix*     2,350       15    
Valeant Pharmaceuticals International (a)     13,980       337    
Varian*     5,791       219    
Ventana Medical Systems*     2,283       115    
Ventiv Health*     3,080       52    
Vertex Pharmaceuticals* (a)     13,145       138    
Viasys Healthcare*     5,138       86    
Vicuron Pharmaceuticals*     7,822       115    
Vion Pharmaceuticals*     9,240       39    
VistaCare, Cl A* (a)     1,502       23    
VISX* (a)     8,135       168    
Vital Signs     831       27    
West Pharmaceutical Services     4,782       100    
Wilson Greatbatch Technologies*     3,569       64    
Wright Medical Group*     4,431       111    
Young Innovations     780       26    
ZILA*     7,570       31    
Zoll Medical*     1,539       51    
ZymoGenetics*     3,237       56    
      21,536    
Industrials – 13.7%      
A. S. V.*     1,302       49    
A.O. Smith     2,844       69    
AAON*     1,459       25    
AAR*     5,377       67    
ABM Industries     6,267       126    
Aceto     2,662       38    
Actuant, Cl A* (a)     3,954       163    
Acuity Brands     7,106       169    
Administaff*     3,607       42    
AirTran Holdings*     14,100       140    
Alaska Air Group*     4,935       122    
Albany International, Cl A     4,377       130    
Alexander & Baldwin     7,099       241    
Amerco*     1,550       59    
America West Holdings, Cl B* (a)     5,858       32    

 

Small Cap Index Fund (continued)

DESCRIPTION   SHARES   VALUE (000)  
American Superconductor*     4,070     $ 51    
American Woodmark     1,784       66    
Ameron International     1,373       45    
Angelica     1,489       37    
Apogee Enterprises (a)     4,582       59    
Applied Industrial Technology     2,857       102    
Applied Signal Technology     1,586       51    
Arkansas Best     3,676       135    
Armor Holdings*     4,763       198    
Artesyn Technologies*     5,736       57    
Asset Acceptance Capital*     1,310       22    
Astec Industries*     2,361       45    
Aviall*     3,935       80    
Baldor Electric     5,497       130    
Banta (a)     4,152       165    
Barnes Group (a)     2,374       65    
BE Aerospace*     6,550       60    
Bowne & Company     5,842       76    
Brady, Cl A     3,035       148    
Bright Horizons Family Solutions*     2,205       120    
C&D Technologies     4,876       93    
Capstone Turbine*     13,890       21    
Cascade     1,776       49    
Casella Waste Systems*     3,279       39    
CDI     2,057       42    
Central Freight Lines*     1,430       9    
Central Parking     3,089       41    
Century Business Services*     10,541       47    
Ceradyne*     2,663       117    
Charles River Associates*     1,699       65    
Circor International     2,564       50    
CLARCOR     4,087       195    
Coinstar* (a)     3,558       83    
Color Kinetics*     2,980       38    
Comfort Systems USA*     6,420       42    
CompX International*     570       9    
Consolidated Graphics*     1,887       79    
Continental Airlines, Cl B*     11,051       94    
Cornell Companies*     2,222       28    
Corrections Corporation of America*     5,861       207    
CoStar Group*     2,676       132    
Covenant Transport, Cl A*     1,453       28    
Cubic     2,610       60    
CUNO*     2,826       163    
Curtiss-Wright     3,486       200    
Delta Air Lines* (a)     17,870       59    
DiamondCluster, Cl A*     3,900       48    
Dollar Thrifty Automotive*     4,225       103    
DRS Technologies*     3,954       148    
Ducommun*     1,215       27    
Duratek*     1,700       30    
Dycom Industries*     8,093       230    
EDO     2,611       72    
EGL* (a)     5,969       181    
Electro Rent*     3,005       33    
ElkCorp     3,292       91    
EMCOR Group*     2,528       95    
Encore Wire*     2,644       35    
Energy Conversion Devices*     3,359       45    
Engineered Support Systems (a)     3,714       170    
Ennis Business Forms     2,731       58    
EnPro Industries*     3,456       83    
ESCO Technologies*     2,161       146    
Esterline Technologies*     3,368       103    
Exponent*     1,000       28    
ExpressJet Holdings*     6,536       65    

 

The accompanying notes are an integral part of the financial statements.

FIRST AMERICAN FUNDS Annual Report 2004

32


Small Cap Index Fund (continued)

DESCRIPTION   SHARES   VALUE (000)  
Exult*     8,403     $ 44    
Federal Signal (a)     8,026       149    
First Advantage*     520       8    
Flanders*     2,180       19    
Florida East Coast Industries, Cl A     3,349       126    
Flowserve*     9,050       219    
FLYi* (a)     7,570       30    
Forward Air* (a)     3,586       144    
Franklin Electric     2,702       107    
Frontier Airlines*     5,929       46    
FTI Consulting* (a)     7,105       134    
FuelCell Energy* (a)     7,050       72    
G & K Services, Cl A     2,911       116    
Gardner Denver*     3,298       91    
GenCorp     6,608       90    
General Binding*     1,001       14    
General Cable*     6,919       74    
Genesee & Wyoming, Cl A*     2,816       71    
Genlyte Group*     2,031       131    
Geo Group*     1,572       32    
GEVITY HR     3,952       61    
Global Power Equipment*     5,645       42    
Gorman-Rupp     1,353       28    
Granite Construction     5,555       133    
Greenbrier Companies*     947       23    
Greg Manning Auctions*     840       9    
Griffon* (a)     4,069       86    
Healthcare Services Group     2,480       45    
Heartland Express (a)     7,577       140    
HEICO     3,252       57    
Heidrick & Struggles International*     2,790       80    
Herley Industries*     1,910       36    
Hexcel*     3,664       51    
Hub Group*     1,200       45    
Hudson Highland Group*     1,665       49    
IDEX     8,028       273    
II-VI*     1,869       65    
Imagistics International*     2,781       93    
Innovative Solutions and Support*     1,160       28    
Insituform Technologies, Cl A*     4,458       83    
Insurance Auto Auctions*     1,445       25    
Integrated Electrical Services*     5,484       26    
Intermagnetics General*     4,666       108    
Intersections*     1,180       17    
Invision Technologies*     2,912       131    
Ionics* (a)     3,069       83    
Jacuzzi Brands*     12,579       117    
JLG Industries     7,380       124    
John H. Harland     4,625       145    
Joy Global (a)     8,484       292    
Kadant*     2,383       44    
Kaman     3,402       41    
Kansas City Southern Industries*     10,040       152    
Kaydon (a)     4,493       129    
Kelly Services, Cl A     2,936       78    
Kennametal     5,900       266    
Kforce*     4,260       36    
Kirby*     3,620       145    
Knight Transportation*     6,112       131    
Korn/Ferry International*     5,216       95    
KVH Industries*     2,404       17    
Labor Ready*     6,902       97    
Laidlaw International*     17,330       285    
Landstar* (a)     4,970       292    
Lawson Products     730       30    
Layne Christensen*     1,640       25    

 

Small Cap Index Fund (continued)

DESCRIPTION   SHARES   VALUE (000)  
Learning Tree International*     1,465     $ 21    
LECG*     2,180       37    
Lennox International (a)     7,396       110    
Lincoln Electric Holdings     5,614       176    
Lindsay Manufacturing     1,895       51    
LSI Industries     3,292       34    
MagneTek*     3,950       30    
Manitowoc     4,454       158    
Marten Transport*     1,530       27    
MasTec*     3,917       21    
McGrath Rentcorp     1,609       59    
Medis Technologies* (a)     2,167       24    
MemberWorks* (a)     982       26    
Mercury Computer Systems* (a)     3,541       95    
Mesa Air Group*     5,292       27    
Microvision*     3,110       18    
Middleby*     740       39    
Milacron* (a)     4,590       14    
Mobile Mini*     2,400       60    
Moog, Cl A*     4,345       158    
MTC Technologies*     1,204       33    
Mueller Industries     5,571       239    
NACCO Industries, Cl A     785       68    
Navigant Consulting*     7,658       168    
NCI Building Systems*     3,245       104    
NCO Group*     4,507       121    
Nordson     4,431       152    
Northwest Airlines* (a)     12,474       102    
NuCo2*     1,140       22    
Old Dominion Freight Lines*     2,750       79    
Orbital Sciences*     8,124       93    
Overnite     4,670       147    
PAM Transportation Services*     1,786       34    
Pacer International* (a)     4,610       76    
Penn Engineering & Manufacturing     1,793       33    
Perini*     1,126       16    
Pico Holdings*     1,336       25    
Pinnacle Airlines*     3,240       33    
Plug Power*     8,085       52    
Portfolio Recovery Associates*     2,023       59    
Powell Industries*     1,137       19    
Power-One*     10,660       69    
Pre-Paid Legal Services*     1,744       45    
PRG-Schultz International*     6,840       39    
Princeton Review*     2,755       21    
Quality Distribution*     1,390       8    
Quanta Services*     12,021       73    
Quixote     1,257       24    
RailAmerica*     6,137       68    
Raven Industries     1,294       58    
Regal-Beloit     3,913       95    
Reliance Steel & Aluminum     4,706       187    
Republic Airways Holdings*     830       7    
Resources Connection*     3,856       146    
Robbins & Myers     1,811       40    
Rollins     3,257       79    
Schawk     1,511       22    
School Specialty*     3,757       148    
SCS Transportation*     2,481       47    
Sequa, Cl A*     1,036       54    
Shaw Group* (a)     10,552       127    
SI International*     840       18    
Simpson Manufacturing (a)     2,939       186    
SITEL*     9,720       21    
SkyWest     9,839       148    
Sotheby's Holdings, Cl A*     7,622       120    

 

FIRST AMERICAN FUNDS Annual Report 2004

33


Schedule of Investments September 30, 2004

Small Cap Index Fund (continued)

DESCRIPTION   SHARES   VALUE (000)  
SOURCECORP*     2,692     $ 60    
Spherion*     10,076       79    
Standard Register     1,733       18    
Standex International     1,969       48    
Stewart & Stevenson Services     4,795       85    
Strayer Education     2,467       284    
Swift Transportation* (a)     8,280       139    
Sypris Solutions     1,128       15    
Tecumseh Products, Cl A     2,648       111    
Teledyne Technologies*     5,420       136    
Teletech Holdings* (a)     6,279       59    
Tennant     1,603       65    
Terex* (a)     8,231       357    
Tetra Tech* (a)     9,332       118    
Thomas & Betts* (a)     9,802       263    
Thomas Industries     2,423       76    
Toro (a)     3,794       259    
TRC*     1,518       28    
Tredegar     4,619       84    
Trex*     1,718       76    
Trinity Industries (a)     6,125       191    
Triumph Group*     2,642       89    
U.S. Xpress Enterprises*     964       18    
Ultralife Batteries*     2,340       24    
United Industrial     1,774       58    
United Rentals* (a)     7,196       114    
United Stationers*     5,646       245    
Universal Forest Products     2,716       93    
Universal Technical Institute*     2,360       71    
URS*     5,238       140    
USF (a)     4,628       166    
USG* (a)     5,746       105    
Valence Technology* (a)     9,043       31    
Valmont Industries     2,288       48    
Vicor     3,192       32    
Volt Information Sciences*     1,322       38    
Wabash National* (a)     4,525       124    
Wabtec     6,326       118    
Walter Industries     3,930       63    
Washington Group International*     4,213       146    
Waste Connections*     7,721       245    
Water Pik Technologies*     1,660       25    
Watsco     3,719       112    
Watson Wyatt & Company Holdings     5,378       141    
Watts Water Technologies, Cl A     3,965       106    
Werner Enterprises (a)     8,000       154    
Woodward Governor     1,619       109    
York International (a)     6,584       208    
      23,124    
Information Technology – 16.8%      
24/7 Real Media*     3,630       14    
Accelrys*     4,068       27    
Actel*     4,294       65    
ActivCard*     7,045       43    
Actuate*     8,630       30    
Adaptec*     18,210       138    
ADE*     1,580       27    
Advanced Digital Information*     10,711       93    
Advanced Energy Industries*     3,766       35    
Advent Software* (a)     3,938       66    
Aeroflex*     11,008       116    
Agile Software*     8,707       69    
Agilysys     4,789       83    
Airspan Networks*     5,140       28    
Alliance Semiconductor*     3,401       12    

 

Small Cap Index Fund (continued)

DESCRIPTION   SHARES   VALUE (000)  
Altiris*     3,464     $ 110    
AMIS Holdings*     5,210       70    
Anaren*     3,448       46    
Anixter International* (a)     4,723       166    
Ansoft*     1,223       19    
AnswerThink*     7,510       40    
ANSYS*     2,564       128    
Anteon International*     4,320       158    
Applied Films*     2,458       44    
aQuantive*     7,927       76    
Ariba*     9,982       93    
Arris Group* (a)     14,514       76    
Artisan Components*     3,845       112    
Ascential Software*     9,894       133    
AsiaInfo Holdings*     5,892       29    
Aspect Communication*     6,784       67    
Aspen Technology* (a)     6,891       48    
Asyst Technologies*     7,837       40    
Atari*     1,539       2    
Atheros Communications*     1,550       16    
ATMI* (a)     5,210       107    
Audiovox*     2,868       48    
August Technology*     2,960       20    
Authentidate Holding*     4,830       29    
Autobytel*     6,932       62    
Avanex*     13,297       27    
Axcelis Technologies* (a)     16,591       137    
BEI Technologies     1,851       51    
Bel Fuse     1,820       60    
Belden CDT     7,819       170    
Benchmark Electronics* (a)     6,849       204    
BISYS Group*     20,090       294    
Black Box (a)     2,695       100    
Blue Coat Systems*     1,500       22    
Borland Software*     13,479       113    
Brightpoint*     3,070       53    
Brocade Communications Systems* (a)     43,290       245    
Brooks Automation*     7,435       105    
Cabot Microelectronics* (a)     4,142       150    
CACI International, Cl A* (a)     4,859       256    
California Micro Devices*     3,520       27    
Captaris*     5,360       23    
Carreker*     3,380       26    
Carrier Access*     3,340       23    
Catapult Communications*     1,035       19    
CCC Information Services Group*     2,120       38    
C-COR.net*     7,178       61    
Checkpoint Systems*     6,061       94    
Cherokee International*     1,180       10    
Chordiant Software*     12,870       37    
CIBER*     8,511       64    
Cirrus Logic* (a)     14,082       67    
Clarus*     2,210       19    
CMGI*     62,891       76    
CNET Networks*     21,282       195    
Cognex     6,669       175    
Coherent*     5,038       131    
Cohu     3,578       53    
CommScope* (a)     8,706       188    
CompuCom Systems*     3,624       17    
Comtech Telecommunications*     2,377       64    
Concord Communications*     3,048       27    
Concur Technologies*     4,368       46    
Corillian*     5,410       25    
Covansys*     3,350       39    
Cray*     14,298       50    

 

The accompanying notes are an integral part of the financial statements.

FIRST AMERICAN FUNDS Annual Report 2004

34


Small Cap Index Fund (continued)

DESCRIPTION   SHARES   VALUE (000)  
Credence Systems* (a)     14,241     $ 103    
CSG Systems International*     9,004       139    
CTS     6,024       76    
CyberGuard*     2,856       17    
CyberOptics*     1,240       19    
CyberSource*     4,560       22    
Cymer* (a)     6,137       176    
Daktronics*     2,406       59    
DDi*     4,350       22    
Digi International*     3,580       41    
Digimarc*     2,578       23    
Digital Insight* (a)     5,854       80    
Digital River*     5,319       158    
Digital Theater Systems*     2,800       51    
DigitalNet Holdings*     1,020       31    
Digitas*     8,959       69    
Diodes*     1,191       31    
Dionex*     2,994       164    
Ditech Communications*     4,740       106    
Dot Hill Systems*     7,241       58    
DoubleClick* (a)     19,260       114    
Drexler Technology* (a)     1,623       15    
DSP Group*     4,870       103    
DuPont Photomasks*     2,447       42    
E.piphany*     12,683       51    
Eagle Broadband* (a)     33,710       24    
EarthLink*     23,052       237    
Echelon*     4,674       37    
eCollege.com*     2,654       26    
eFunds*     7,983       148    
Electro Scientific Industries*     4,700       82    
Electronics for Imaging* (a)     8,947       145    
Embarcadero Technologies*     3,542       30    
Emulex*     13,720       158    
Entegris*     7,279       61    
Enterasys Networks*     35,059       56    
Entrust*     10,609       27    
Epicor Software*     6,928       83    
EPIQ Systems* (a)     2,281       36    
Equinix*     1,620       50    
ESS Technology* (a)     5,592       38    
Euronet Worldwide*     3,749       70    
Exar* (a)     6,827       97    
Excel Technologies*     1,995       52    
Extreme Networks* (a)     18,019       80    
F5 Networks* (a)     5,746       175    
FactSet Research Systems (a)     3,400       164    
FalconStor Software* (a)     4,403       33    
FARO Technologies*     1,760       36    
FEI* (a)     3,976       79    
FileNet*     6,499       113    
FindWhat.com* (a)     4,271       80    
Finisar* (a)     27,604       36    
FormFactor* (a)     4,630       90    
Forrester Research*     2,275       35    
FSI International*     4,980       21    
Gartner, Cl A*     11,432       134    
Gateway* (a)     37,170       184    
Genesis Microchip*     5,352       72    
Global Imaging Systems*     3,852       120    
Harmonic*     11,990       80    
Helix Technology     4,163       57    
Homestore*     18,853       44    
Hutchinson Technology* (a)     4,159       111    
Hypercom*     8,501       63    
Hyperion Solutions* (a)     6,514       221    

 

Small Cap Index Fund (continued)

DESCRIPTION   SHARES   VALUE (000)  
Identix*     14,724     $ 98    
iGATE*     3,474       13    
Imation     5,710       203    
Inet Technologies*     3,889       49    
Infocrossing* (a)     2,620       41    
InFocus*     6,609       61    
Informatica*     14,308       84    
InfoSpace* (a)     5,330       253    
infoUSA*     5,310       47    
INTAC International*     1,310       11    
Integrated Device Technology* (a)     17,590       168    
Integrated Silicon Solution*     5,956       43    
InterCept*     2,763       52    
InterDigital Communications*     9,270       151    
Intergraph*     6,095       166    
InterNAP Network Services*     39,460       26    
Internet Capital Group*     6,350       41    
Internet Security Systems* (a)     6,789       115    
Inter-Tel     3,430       74    
Intervideo*     1,430       17    
InterVoice*     5,997       65    
Interwoven*     6,748       49    
Intevac*     2,790       18    
Intrado*     2,879       29    
Iomega*     7,902       37    
iPass*     7,370       44    
iPayment*     1,755       70    
Itron*     3,323       58    
iVillage*     5,250       31    
IXIA*     4,415       43    
IXYS*     3,134       22    
J2 Global Communications*     3,140       99    
JDA Software*     4,295       46    
Jupitermedia*     2,610       46    
Keane* (a)     8,428       129    
Keithley Instruments     2,099       37    
KEMET*     14,424       117    
Keynote Systems*     2,568       36    
Kintera*     1,110       10    
Komag*     4,589       64    
Kopin*     11,697       48    
Kronos*     5,182       230    
Kulicke & Soffa*     8,485       48    
Landauer     1,362       64    
Lattice Semiconductor*     18,883       93    
Lawson Software*     9,272       52    
Leadis Technology*     4,590       52    
LeCroy*     1,300       22    
Lexar Media*     11,814       99    
Lionbridge Technologies*     7,777       67    
Littelfuse*     3,686       127    
LookSmart*     15,938       23    
LTX*     10,164       55    
Macrovision* (a)     8,230       198    
Magma Design Automation*     4,113       62    
Manhattan Associates*     5,034       123    
ManTech International*     2,806       53    
Manugistics Group*     9,161       22    
MAPICS*     4,238       38    
MapInfo*     3,370       36    
Marchex*     690       9    
MarketWatch.com*     1,740       22    
MatrixOne*     8,726       44    
Mattson Technology*     6,661       51    
Maximus*     3,117       90    
Maxwell Technologies*     1,770       18    

 

FIRST AMERICAN FUNDS Annual Report 2004

35


Schedule of Investments September 30, 2004

Small Cap Index Fund (continued)

DESCRIPTION   SHARES   VALUE (000)  
McDATA, Cl A*     19,610     $ 99    
Measurement Specialties*     1,780       44    
Mentor Graphics* (a)     11,685       128    
Merix*     3,010       31    
Methode Electronics, Cl A     5,648       72    
Metrologic Instruments*     1,748       28    
Micrel*     11,419       119    
Micromuse*     13,060       48    
Micros Systems*     2,685       134    
Microsemi*     9,926       140    
MicroStrategy*     1,998       82    
Microtune*     8,580       45    
Midway Games*     7,699       76    
Mindspeed Technologies* (a)     16,605       33    
MIPS Technologies, Cl A*     6,840       39    
MKS Instruments* (a)     5,409       83    
Mobility Electronics*     4,120       34    
Monolithic System Technology*     3,897       17    
MPS Group*     17,540       148    
MRO Software*     3,265       33    
MRV Communications* (a)     17,620       44    
MSC.Software*     4,570       37    
MTS Systems     3,368       72    
Mykrolis*     6,881       69    
National Processing*     1,468       39    
Neoforma*     1,542       14    
Net2Phone*     5,955       19    
Netegrity*     5,478       41    
NETGEAR*     3,610       44    
NetIQ*     9,518       102    
NetRatings*     1,969       35    
NetScout Systems*     3,957       21    
Network Equip Technologies*     4,000       26    
Newport*     7,119       82    
NIC*     5,199       28    
NMS Communications*     7,760       38    
Novatel Wireless*     3,080       72    
OmniVision Technologies* (a)     9,362       132    
ON Semiconductor* (a)     20,085       63    
Open Solutions*     2,190       55    
Openwave Systems*     10,726       95    
Oplink Communications*     17,841       32    
OPNET Technologies*     1,965       20    
Opsware* (a)     8,559       48    
Optical Communication Products*     3,060       6    
OSI Systems*     2,433       39    
Overland Storage*     2,281       32    
Packeteer*     5,480       59    
Palm* (a)     6,979       212    
Palmsource*     2,442       51    
Paradyne Networks*     6,570       30    
Parametric Technology*     44,682       236    
Park Electrochemical     2,784       59    
Paxar*     5,769       131    
PC Connection*     1,202       8    
PC-tel*     3,354       28    
PDF Solutions*     2,438       30    
PEC Solutions*     2,246       26    
Pegasus Solutions*     3,884       46    
Pegasystems*     1,884       13    
Pericom Semiconductor*     3,692       36    
Perot Systems, Cl A*     12,692       204    
Photon Dynamics* (a)     2,778       56    
Photronics* (a)     5,426       90    
Pinnacle Systems*     11,488       48    
Pixelworks*     6,756       68    

 

Small Cap Index Fund (continued)

DESCRIPTION   SHARES   VALUE (000)  
Planar Systems*     2,441     $ 27    
PLATO Learning*     3,840       34    
Plexus*     7,184       79    
PLX Technology*     3,590       26    
Portal Software*     5,378       15    
Power Integrations* (a)     4,601       94    
Powerwave Technologies*     17,390       107    
Presstek*     4,290       41    
Progress Software*     5,253       105    
QAD     2,134       15    
Quality Systems*     559       28    
Quantum* (a)     30,074       69    
Quest Software*     8,301       92    
RadiSys* (a)     3,126       44    
RAE Systems*     5,760       32    
RealNetworks* (a)     18,770       87    
Redback Networks*     5,206       27    
Redback Networks – Warrant* (a)     707       2    
REMEC*     10,269       48    
Renaissance Learning     1,273       28    
Retek*     9,311       42    
RF Micro Devices*     32,047       203    
Rofin-Sinar Technologies*     2,495       73    
Rogers*     2,766       118    
RSA Security* (a)     10,306       199    
Rudolph Technologies* (a)     2,142       36    
S1*     11,775       94    
Safeguard Scientifics* (a)     19,974       37    
SAFENET* (a)     3,962       105    
Sapient*     13,146       100    
SBS Technologies*     2,544       31    
ScanSoft*     13,475       55    
ScanSource*     2,090       133    
SeaChange International*     4,085       65    
Secure Computing*     5,936       45    
SeeBeyond Technologies*     8,274       25    
Semitool*     2,713       21    
SERENA Software* (a)     4,186       70    
SigmaTel*     4,100       87    
Silicon Graphics* (a)     43,564       62    
Silicon Image*     12,350       156    
Silicon Storage Technology*     13,544       86    
Siliconix*     976       35    
SimpleTech*     3,360       12    
SIPEX*     3,305       17    
SiRF Technology Holdings*     1,830       26    
Skyworks Solutions* (a)     24,978       237    
Sohu.com* (a)     3,687       61    
Sonic Solutions*     3,120       51    
SonicWALL*     9,919       67    
Spatialight* (a)     3,920       23    
SpectraLink     3,179       30    
SPSS*     2,367       32    
SRA International, Cl A*     2,168       112    
SS&C Technologies     2,264       44    
Staktek Holdings*     1,710       7    
Standard Microsystems*     3,072       54    
StarTek     1,815       57    
Stellent*     3,251       25    
StorageNetworks* (c)     15,089       -    
Stratasys     1,531       48    
Stratex Networks     14,048       31    
Suntron*     410       2    
Supertex*     1,482       29    
Supportsoft*     6,057       59    
Sycamore Networks*     29,133       110    

 

The accompanying notes are an integral part of the financial statements.

FIRST AMERICAN FUNDS Annual Report 2004

36


Small Cap Index Fund (continued)

DESCRIPTION   SHARES   VALUE (000)  
Sykes Enterprises*     4,179     $ 19    
Symmetricom*     7,491       71    
Synaptics*     3,672       74    
SYNNEX*     1,090       19    
Syntel     1,224       20    
Take-Two Interactive Software* (a)     7,447       245    
TALX     2,279       53    
TASER International* (a)     4,020       151    
Technitrol*     6,734       131    
Tekelec* (a)     8,283       138    
Terayon Communications*     11,149       24    
Terremark Worldwide*     50,100       32    
Tessera Technologies*     4,020       89    
ThermoGenesis*     7,450       36    
THQ* (a)     6,355       124    
Tier Technologies*     2,767       27    
TippingPoint Technologies*     490       12    
Titan*     14,006       196    
TNS*     740       14    
TransAct Technologies*     1,430       37    
Transaction Systems Architects, Cl A*     6,211       115    
Transmeta*     24,857       31    
Travelzoo* (a)     260       14    
Trident Microsystems*     3,130       32    
Trimble Navigation* (a)     8,452       267    
Tripath Technology*     5,710       10    
TriQuint Semiconductor*     22,712       89    
TTM Technologies*     6,798       60    
Tumbleweed Communications*     7,960       20    
Tyler Technologies*     6,122       54    
Ulticom*     1,730       26    
Ultimate Software Group*     2,740       34    
Ultratech*     3,535       55    
United Online*     8,887       85    
Universal Display*     3,471       29    
UNOVA*     8,006       112    
ValueClick*     13,199       125    
Varian Semiconductor Equipment Associates* (a)     6,061       187    
Veeco Instruments*     4,317       91    
Verint Systems*     1,946       72    
Verity*     4,968       64    
Verso Technologies*     22,180       21    
ViaSat*     3,474       70    
Vignette*     48,189       64    
Viisage Technology*     4,600       26    
Vitesse Semiconductor*     36,225       99    
WatchGuard Technologies*     5,589       26    
WebEx Communications*     5,024       110    
webMethods*     7,716       41    
Websense*     3,827       159    
Westell Technologies, Cl A*     8,212       42    
Wind River Systems*     11,848       145    
Witness Systems*     3,430       55    
WJ Communications*     5,280       13    
Woodhead Industries     2,025       28    
X-Rite     3,304       48    
Xybernaut* (a)     29,520       33    
Zhone Technologies*     9,049       28    
Zix* (a)     3,480       16    
Zoran*     7,126       112    
Zygo*     2,984       30    
      28,361    
Materials – 6.2%      
A. Schulman     5,028       111    
Airgas     10,040       242    

 

Small Cap Index Fund (continued)

DESCRIPTION   SHARES   VALUE (000)  
AK Steel Holdings* (a)     18,145     $ 148    
Albemarle     5,314       186    
Allegheny Technologies     15,905       290    
AMCOL International     3,430       66    
American Vanguard     830       30    
Anchor Glass Container     1,640       13    
AptarGroup     6,100       268    
Arch Chemicals     3,886       111    
Brush Engineered Metals*     3,161       65    
Buckeye Technologies*     5,839       65    
Calgon Carbon     5,659       41    
Cambrex     4,355       96    
Caraustar Industries*     4,746       80    
Carpenter Technology     3,805       182    
Century Aluminum*     2,962       82    
Chesapeake     3,253       78    
Cleveland-Cliffs* (a)     1,784       144    
Coeur D'Alene Mines* (a)     35,807       170    
Commercial Metals     4,779       190    
Compass Minerals International     2,520       56    
Crompton     19,122       181    
Crown Holdings* (a)     27,558       284    
Cytec Industries     6,490       318    
Deltic Timber (a)     1,649       66    
Eagle Materials     3,143       224    
Ferro     6,990       152    
FMC* (a)     6,064       295    
Georgia Gulf     4,750       212    
Gibraltar Steel     2,613       94    
Glatfelter     4,780       59    
GrafTech International* (a)     16,870       235    
Graphic Packaging*     11,130       72    
Great Lakes Chemical     8,465       217    
Greif, Cl A     2,290       97    
H B Fuller     4,752       130    
Headwaters* (a)     5,605       173    
Hecla Mining*     20,295       151    
Hercules* (a)     18,354       262    
IMC Global* (a)     19,326       336    
IMCO Recycling*     2,280       26    
Kronos Worldwide     517       21    
Longview Fibre     8,526       130    
MacDermid     4,504       130    
Metal Management*     2,800       51    
Metals USA*     3,370       60    
Millennium Chemicals*     10,845       230    
Minerals Technologies     3,425       202    
Myers Industries     4,288       47    
NewMarket Group*     2,641       55    
NL Industries     1,319       24    
NN     2,555       29    
Octel     2,072       44    
Olin     11,125       222    
OM Group* (a)     4,730       173    
Omnova Solutions*     6,705       40    
Oregon Steel Mills*     4,430       74    
PolyOne*     16,389       123    
Pope & Talbot     2,632       46    
Potlatch (a)     4,917       230    
Quaker Chemical     1,378       33    
Quanex     2,745       141    
Rock-Tenn, Cl A     4,877       77    
Royal Gold (a)     3,076       53    
RTI International Metals*     3,535       68    
Ryerson Tull     3,922       67    
Schnitzer Steel Industries, Cl A     3,270       106    
Schweitzer-Mauduit International     2,504       81    
Sensient Technologies (a)     7,806       169    

 

FIRST AMERICAN FUNDS Annual Report 2004

37


Schedule of Investments September 30, 2004

Small Cap Index Fund (continued)

DESCRIPTION   SHARES   VALUE (000)  
Silgan Holdings     1,828     $ 85    
Spartech     4,190       105    
Steel Dynamics (a)     6,244       241    
Steel Technologies     1,670       43    
Stepan     880       21    
Stillwater Mining*     6,704       104    
Symyx Technologies*     4,696       111    
Terra Industries* (a)     6,510       56    
Texas Industries (a)     3,529       182    
Titanium Metals*     1,050       25    
U.S. Concrete*     3,530       22    
USEC     13,521       140    
Valhi     1,693       25    
W R Grace & Company*     10,949       103    
Wausau-Mosinee Paper     7,623       127    
Wellman     5,327       45    
Wheeling-Pittsburgh*     1,350       42    
      10,501    
Telecommunication Services – 0.9%      
AirGate PCS*     1,970       39    
Alamosa Holdings*     12,320       94    
Alaska Communications Systems Holdings*     1,460       8    
Arch Wireless*     2,960       85    
AT Road*     5,695       24    
Boston Communications Group*     3,061       27    
Centennial Communications, Cl A*     1,976       12    
Cincinnati Bell*     40,881       143    
Commonwealth Telephone Enterprises*     3,505       153    
Corvis*     64,958       52    
CT Communications     3,010       42    
D & E Communications     1,977       23    
Dobson Communications, Cl A*     18,369       24    
EMS Technologies*     1,789       31    
General Communication*     7,582       69    
Golden Telecom     2,295       65    
Infonet Services, Cl B*     9,263       15    
ITC DeltaCom*     2,090       9    
Metrocall Holdings* (a)     870       56    
Neon Communications* (b)     34,093       -    
Network Plus* (b)     1,155       -    
North Pittsburgh     2,399       50    
Price Communications*     6,696       102    
Primus Telecommunications Group* (a)     12,354       18    
PTEK Holdings*     10,501       90    
SBA Communications*     6,797       48    
Shenandoah Telecommunications     1,094       28    
SureWest Communications     2,326       67    
Talk America Holdings*     4,451       23    
Time Warner Telecom, Cl A*     8,283       40    
Triton PCS Holdings, Cl A*     6,787       17    
UbiquiTel*     11,740       47    
Wiltel Communications (c)     4,122       -    
Wireless Facilities* (a)     7,903       55    
      1,556    
Utilities – 3.3%      
American States Water     2,554       64    
Aquila* (a)     39,322       123    
Atmos Energy     9,363       236    
Avista     8,075       146    
Black Hills (a)     5,408       150    
California Water Service     2,842       83    
Calpine* (a)     74,070       215    
Cascade Natural Gas     1,876       40    
Central Vermont Public Service     1,755       35    
CH Energy Group     2,512       115    

 

Small Cap Index Fund (continued)

DESCRIPTION   SHARES/PAR (000)   VALUE (000)  
CLECO     7,935     $ 137    
CMS Energy*     27,292       260    
Connecticut Water Service     1,333       35    
Duquesne Light Holdings (a)     11,890       214    
El Paso Electric*     7,946       128    
Empire District Electric     3,739       77    
Energen     6,063       313    
EnergySouth     1,129       31    
IDACORP     6,377       185    
Infrasource Services*     1,440       15    
Laclede Group     3,461       101    
MGE Energy     3,297       105    
Middlesex Water     1,889       34    
New Jersey Resources (a)     4,598       190    
NICOR (a)     7,060       259    
Northwestern Natural Gas     4,561       145    
NUI     2,668       36    
Otter Tail     3,866       99    
People's Energy (a)     6,270       261    
Piedmont Natural Gas (a)     6,350       279    
PNM Resources (a)     10,083       227    
Sierra Pacific Resources* (a)     19,567       175    
SJW     1,078       36    
South Jersey Industries     2,296       110    
Southern Union* (a)     11,068       227    
Southern Union Company Fractional Share* (c)     -       -    
Southwest Gas     6,375       153    
Southwest Water     2,754       34    
UIL Holdings     1,932       95    
UniSource Energy Holding     5,703       139    
WGL Holdings     8,120       229    
      5,536    
Total Common Stocks
(Cost $146,168)		             166,597    
Short-Term Investments – 4.7%      
U.S. Treasury Obligation – 0.4%      
U. S. Treasury Bill (d)
1.810%, 03/03/05		   $ 700       695    
Total U.S. Treasury Obligation             695    
Affiliated Money Market Fund – 4.3%      
First American Prime Obligations Fund, Cl Z (e)     7,255,140       7,255    
Total Affiliated Money Market Fund             7,255    
Total Short-Term Investments
(Cost $7,950)		             7,950    
Investments Purchased with Proceeds from Securities Lending – 20.8%      
Commercial Paper – 6.7%      
Bluegrass
1.881%, 5/18/05		   $ 148       148    
1.891%, 8/18/05     117       117    
Concord Minutemen Capital
1.650%, 10/01/04		     242       242    
1.680%, 10/05/04     538       538    
1.720%, 10/06/04     398       398    
1.740%, 10/14/04     266       266    
Descartes Funding Trust
1.760%, 11/15/04		     299       299    
Ford Credit Floor Plan
1.622%, 10/05/04		     597       597    
1.526%, 10/06/04     419       419    
1.655%, 10/22/04     131       131    

 

The accompanying notes are an integral part of the financial statements.

FIRST AMERICAN FUNDS Annual Report 2004

38


Small Cap Index Fund (continued)

DESCRIPTION   PAR (000)   VALUE (000)  
Goldman Sachs
1.975%, 1/18/05		   $ 299     $ 299    
Independence
1.830%, 4/15/05		     370       370    
Jupiter Securities Corp
1.793%, 10/21/04		     1,137       1,137    
Lakeside Funding
1.790%, 10/08/04		     634       634    
Landesbank Baden
1.480%, 11/12/04		     119       119    
Leaf's LLC
1.821%, 4/20/05		     329       329    
Liquid Funding Ltd
1.743%, 10/13/04 418 418
1.830%, 5/25/05		     299       299    
MBNA Credit
1.683%, 10/12/04 291 291
1.764%, 10/26/04		     161       161    
Main Street Warehouse
1.742%, 10/04/04 395 395
1.683%, 10/04/04 487 487
1.742%, 10/08/04 299 299
1.742%, 10/08/04		     299       299    
Mortgage Interest Network
1.752%, 10/12/04 197 197
1.763%, 10/14/04		     209       209    
Netexis Banques
1.700%, 12/16/04		     298       298    
Orchard Park
1.796%, 4/06/05 299 299
1.766%, 7/06/05		     617       617    
Park Granada LLC  
1.622%, 10/01/04     526       526    
1.743%, 10/13/04     341       341    
Sigma Finance
1.512%, 11/29/04		     149       149    
Total Commercial Paper             11,328    
Corporate Obligations – 5.6%      
Allstate Life Global
1.780%, 10/14/05 598 598
1.750%, 10/14/05		     150       150    
Bayer Landbank NY
1.830%, 6/24/05		     568       568    
Blue Heron Funding
1.850%, 5/18/05		     168       168    
Castle Hill III
1.910%, 9/15/15		     179       179    
Depfa Bank PLC
1.860%, 6/15/05		     299       299    
Duke Funding VI
1.320%, 4/08/05		     362       362    
General Electric Capital Corporation
1.838%, 10/07/05		     299       299    
Jackson National Life
1.760%, 4/15/05		     299       299    
Jefferson Pilot Co
1.788%, 8/17/05		     299       299    
Liquid Funding Ltd
1.840%, 6/28/05		     269       269    
Merrill Lynch
1.696%, 10/01/05		     598       598    
Metlife Global Funding
1.800%, 10/14/05 359 359
1.880%, 10/28/05		     251       251    

 

Small Cap Index Fund (continued)

DESCRIPTION   PAR (000)   VALUE (000)  
Morgan Stanley
1.850%, 12/26/08		   $ 299     $ 299    
Natexis Banq NY
1.920%, 7/12/05		     329       329    
Northlake CDO Ltd
1.895%, 3/07/05		     179       179    
Premium Asset Trust
1.848%, 12/22/04 224 224
1.760%, 5/13/05 419 419
1.740%, 6/01/05 891 891
1.770%, 10/14/05		     239       239    
REMAC
1.840%, 9/29/05		     329       329    
RMAC
1.740%, 6/12/05		     345       345    
SMM Trust 2004
1.833%, 9/23/05		     556       556    
Societe Generale NYC
1.960%, 12/08/04		     598       598    
Svenska Handl
1.170%, 10/21/04		     299       299    
Total Corporate Obligations             9,405    
Other Short-Term Investments – 1.4%  
ARLO III Ltd
2.000%, 9/28/05		     897       897    
Commonwealth Life
2.115%, 12/31/04 (f)		     302       302    
General Electric Capital Assurance
1.980%, 1/19/05		     120       120    
HBOS Treasury Services
1.640%, 11/01/05		     329       329    
Security Life Denver
1.900%, 12/30/04		     777       777    
Total Other Short-Term Investments             2,425    
Repurchase Agreements – 7.1%  
Bear Stearns
2.045%, dated 9/30/04, matures 10/01/04,
repurchase price $598,016
(collateralized by various securities:
Total market value $610,275)		     598       598    
Bear Stearns
2.060%, dated 9/30/04, matures 12/23/04,
repurchase price $180,257
(collateralized by various securities:
Total market value $183,046)		     179       179    
Citibank
1.945%, dated 9/30/04, matures 10/01/04,
repurchase price $1,196,028
(collateralized by corporate securities:
Total market value $1,266,468)		     1,196       1,196    
Citibank
1.925%, dated 9/30/04, matures 10/01/04,
repurchase price $299,007
(collateralized by various securities:
Total market value $305,648)		     299       299    
Citibank
1.925%, dated 9/30/04, matures 10/01/04,
repurchase price $299,007
(collateralized by various securities:
Total market value $304,975)		     299       299    
Greenwich Capital Markets
1.950%, dated 9/30/04, matures 10/01/04,
repurchase price $1,794,043
(collateralized by U.S. government securities:
Total market value $1,829,848)		     1,794       1,794    

 

FIRST AMERICAN FUNDS Annual Report 2004

39


Schedule of Investments September 30, 2004

Small Cap Index Fund (continued)

DESCRIPTION   PAR (000)   VALUE (000)  
Goldman Sachs
2.025%, dated 9/30/04, matures 10/01/04,
repurchase price $418,611
(collateralized by various securities:
Total market value $431,534)		   $ 419     $ 419    
Goldman Sachs
2.025%, dated 9/30/04, matures 10/01/04,
repurchase price $179,405
(collateralized by various securities:
Total market value $184,948)		     179       179    
Goldman Sachs
2.025%, dated 9/30/04, matures 10/01/04,
repurchase price $179,405
(collateralized by various securities:
Total market value $184,947)		     179       179    
Goldman Sachs
2.025%, dated 9/30/04, matures 10/01/04,
repurchase price $448,512
(collateralized by corporate securities:
Total market value $462,360)		     449       449    
Goldman Sachs
1.425%, dated 9/30/04, matures 10/18/04,
repurchase price $748,010
(collateralized by corporate securities:
Total market value $762,737)		     747       747    
Goldman Sachs
1.480%, dated 9/30/04, matures 10/18/04,
repurchase price $448,818
(collateralized by various securities:
Total market value $462,360)		     448       448    
Goldman Sachs
2.205%, dated 9/30/04, matures 3/07/05,
repurchase price $301,884
(collateralized by corporate securities:
Total market value $305,097)		     299       299    
Lehman Brothers
2.055%, dated 9/30/04, matures 10/01/04,
repurchase price $1,196,032
(collateralized by collateralized mortgage obligations: 
Total market value $1,219,883)		     1,196       1,196    
Lehman Brothers
1.910%, dated 9/30/04, matures 10/01/04,
repurchase price $1,794,041
(collateralized by U.S. government securities:
Total market value $1,829,853)		     1,794       1,794    
Lehman Brothers
1.935%, dated 9/30/04, matures 10/01/04,
repurchase price $1,196,028
(collateralized by collateralized mortgage obligations: 
Total market value $1,315,061)		     1,196       1,196    
Merrill Lynch
1.925%, dated 9/30/04, matures 10/01/04,
repurchase price $598,014
(collateralized by corporate securities:
Total market value $627,894)		     598       598    
Total Repurchase Agreements
(Cost $11,869)		             11,869    

 

Small Cap Index Fund (concluded)

DESCRIPTION       VALUE (000)  
Total Investments Purchased with
Proceeds from Securities Lending
(Cost $35,027)		       $ 35,027    
Total Investments – 124.3%
(Cost $189,145)		         209,574    
Other Assets and Liabilities, Net – (24.3)%         (40,980 )  
Total Net Assets – 100.0%       $ 168,594    

 

*  Non-income producing security

(a)  This security or a portion of this security is out on loan at September 30, 2004. Total loaned securities had a market value of $33,431,660 at September 30, 2004. See note 2 in Notes to Financial Statements.

(b)  Securities considered illiquid investments under guidelines established by the Board of Directors when a trade or bid price is unavailable. As of September 30, 2004, the value of these investments was $2 or 0.0% of total net assets. See note 2 in Notes to Financial Statements.

(c)  Securities considered illiquid investments and are fair valued under guidelines established by the Board of Directors. As of September 30, 2004, the fair value of these investments was $0 or 0.0% of total net assets. See note 2 in Notes to Financial Statements.

(d)  Security has been deposited as initial margin on open futures contracts. Yield shown is effective yield at date of purchase. See note 2 in Notes to Financial Statements.

(e)  Investment in affiliated security. This money market fund is advised by U.S. Bancorp Asset Management, Inc. which also serves as advisor to this Fund. See note 3 in Notes to Financial Statements.

(f)  Security has demand features which qualify it as a short term security. The date disclosed is the next put date.

Cl – Class

REIT – Real Estate Investment Trust

Schedule of Open Futures Contracts

Description   Number of
Contracts		   Market Value
Covered By
Contracts		   Settlement
Month		   Unrealized
Appreciation		  
Russell 2000 Index
Futures Contracts
purchased		     5     $ 1,435     Dec. 04   $ 11    

 

The accompanying notes are an integral part of the financial statements.

FIRST AMERICAN FUNDS Annual Report 2004

40


(This page has been left blank intentionally.)


Statements of Assets and Liabilities September 30, 2004, in thousands, except for per share data

    Equity
Index Fund		   Mid Cap
Index Fund		   Small Cap
Index Fund		  
ASSETS:      
Investments in unaffiliated securities, at value*†   $ 2,852,591     $ 427,868     $ 190,450    
Investments in affiliated securities, at value**     52,946       7,896       7,255    
Repurchase agreements, at value***     289,412       51,879       11,869    
Cash****     132       21       6    
Receivable for dividends and interest     2,673       208       165    
Receivable for investment securities sold     -       2,040       993    
Receivable for capital shares sold     2,173       185       85    
Receivable for variation margin     -       49       6    
Prepaid expenses and other assets     48       33       31    
Total assets     3,199,975       490,179       210,860    
LIABILITIES:      
Payable for investment securities purchased     2,514       2,596       6,988    
Payable upon return of securities loaned     854,142       153,111       35,032    
Payable for capital shares redeemed     28,811       3,179       197    
Payable for variation margin     16       -       -    
Payable for advisory, co-administration, and custodian fees     524       109       43    
Payable for distribution and shareholder servicing fees     131       7       5    
Accrued expenses and other liabilities     18       2       1    
Total liabilities     886,156       159,004       42,266    
Net assets   $ 2,313,819     $ 331,175     $ 168,594    
COMPOSITION OF NET ASSETS:      
Portfolio capital   $ 1,842,540     $ 294,248     $ 140,983    
Undistributed net investment income     51       40       157    
Accumulated net realized gain (loss) on investments     (26,552 )     10,706       7,014    
Unrealized appreciation of investments     497,914       26,160       20,429    
Unrealized appreciation (depreciation) of futures contracts     (134 )     21       11    
Net assets   $ 2,313,819     $ 331,175     $ 168,594    
* Investments in unaffiliated securities, at cost   $ 2,357,564     $ 401,708     $ 170,021    
** Investments in affiliated securities, at cost   $ 50,059     $ 7,896     $ 7,255    
*** Repurchase agreements, at cost   $ 289,412     $ 51,879     $ 11,869    
**** Includes cash related to securities loaned   $ 117     $ 21     $ 5    
† Including securities loaned, at value   $ 824,435     $ 148,685     $ 33,432    
Class A:      
Net assets   $ 234,349     $ 11,987     $ 8,749    
Shares issued and outstanding ($0.0001 par value - 2 billion authorized)     11,205       1,013       654    
Net asset value, and redemption price per share   $ 20.91     $ 11.84     $ 13.38    
Maximum offering price per share (1)   $ 22.13     $ 12.53     $ 14.16    
Class B:      
Net assets   $ 69,828     $ 3,133     $ 1,494    
Shares issued and outstanding ($0.0001 par value - 2 billion authorized)     3,379       269       114    
Net asset value, offering price, and redemption price per share (2)   $ 20.66     $ 11.67     $ 13.15    
Class C:      
Net assets   $ 30,111     $ 2,653     $ 1,939    
Shares issued and outstanding ($0.0001 par value - 2 billion authorized)     1,449       227       146    
Net asset value, offering price, and redemption price per share (2)   $ 20.78     $ 11.70     $ 13.26    
Class R:      
Net assets   $ 333     $ 1     $ 1    
Shares issued and outstanding ($0.0001 par value - 2 billion authorized)     16       -       -    
Net asset value, offering price, and redemption price per share   $ 20.91     $ 11.83     $ 13.31    
Class Y:      
Net assets   $ 1,979,198     $ 313,401     $ 156,411    
Shares issued and outstanding ($0.0001 par value - 2 billion authorized)     94,663       26,462       11,647    
Net asset value, offering price, and redemption price per share   $ 20.91     $ 11.84     $ 13.43    

 

  (1)  The offering price is calculated by dividing the net asset value by 1 minus the maximum sales charge of 5.50%.

  (2)  Class B and C have a contingent deferred sales charge. For a description of this sales charge, see notes 1 and 3 in Notes to Financial Statements.

The accompanying notes are an integral part of the financial statements.

FIRST AMERICAN FUNDS Annual Report 2004

42


Statements of Operations For the fiscal year ended September 30, 2004, in thousands

    Equity
Index Fund		   Mid Cap
Index Fund		   Small Cap
Index Fund		  
INVESTMENT INCOME:      
Interest from unaffiliated securities   $ 109     $ 15     $ 8    
Dividends from affiliated securities     1,194       168       86    
Dividends from unaffiliated securities     38,737       3,665       1,739    
Securities lending     425       74       48    
Other income     318       18       17    
Total investment income     40,783       3,940       1,898    
EXPENSES:      
Investment advisory fees     5,836       800       625    
Co-administration fees and expenses (including transfer agency fees)     6,212       875       506    
Custodian fees     234       32       16    
Directors' fees     54       7       3    
Registration fees     55       19       18    
Professional fees     107       13       8    
Printing     75       10       5    
Other     123       3       15    
Distribution and shareholder servicing fees – Class A     505       23       15    
Distribution and shareholder servicing fees – Class B     749       30       13    
Distribution and shareholder servicing fees – Class C     320       25       18    
Distribution and shareholder servicing fees – Class R     86       7       6    
Total expenses     14,356       1,844       1,248    
Less: Fee waivers     (4,058 )     (150 )     (135 )  
Total net expenses     10,298       1,694       1,113    
Investment income – net     30,485       2,246       785    
REALIZED AND UNREALIZED GAINS ON INVESTMENTS AND
FUTURES CONTRACTS – NET:		      
Net realized gain on unaffiliated investments     4,194       9,956       6,383    
Net realized gain on futures contracts     7,968       1,639       1,070    
Net change in unrealized appreciation or depreciation of unaffiliated investments     233,457       30,236       15,627    
Net change in unrealized appreciation or depreciation of affiliated investments     2,166       -       -    
Net change in unrealized appreciation or depreciation of futures contracts     1,118       152       228    
Net gain on investments and futures contracts     248,903       41,983       23,308    
Net increase in net assets resulting from operations   $ 279,388     $ 44,229     $ 24,093    

 

FIRST AMERICAN FUNDS Annual Report 2004

43


Statements of Changes in Net Assets in thousands

    Equity
Index Fund		   Mid Cap
Index Fund		   Small Cap
Index Fund		  
    10/1/03
to
9/30/04		   10/1/02
to
9/30/03		   10/1/03
to
9/30/04		   10/1/02
to
9/30/03		   10/1/03
to
9/30/04		   10/1/02
to
9/30/03		  
OPERATIONS:  
Investment income – net   $ 30,485     $ 24,772     $ 2,246     $ 1,510     $ 785     $ 679    
Net realized gain (loss) on unaffiliated investments     4,194       (3,233 )     9,956       3,462       6,383       (183 )  
Net realized loss on in-kind distributions     -       (663 )     -       -       -       -    
Net realized gain on futures contracts     7,968       9,771       1,639       1,471       1,070       702    
Net change in unrealized appreciation or depreciation of unaffiliated investments     233,457       327,421       30,236       41,654       15,627       30,354    
Net change in unrealized appreciation or depreciation of affiliated investments     2,166       -       -       -       -       -    
Net change in unrealized appreciation or depreciation of futures contracts     1,118       1,044       152       313       228       107    
Net increase in net assets resulting from operations     279,388       359,112       44,229       48,410       24,093       31,659    
DISTRIBUTIONS TO SHAREHOLDERS FROM:  
Investment income – net:  
Class A     (2,311 )     (1,752 )     (42 )     (20 )     (15 )     (11 )  
Class B     (335 )     (330 )     (1 )     (1 )     -       -    
Class C     (141 )     (145 )     (1 )     (1 )     -       (1 )  
Class R     (391 )     (570 )     (13 )     (18 )     (7 )     (33 )  
Class Y     (27,416 )     (21,115 )     (2,153 )     (1,472 )     (717 )     (639 )  
Net realized gain on investments:  
Class A     -       -       (99 )     (97 )     (25 )     -    
Class B     -       -       (46 )     (41 )     (7 )     -    
Class C     -       -       (33 )     (26 )     (10 )     -    
Class R     -       -       (76 )     (95 )     (23 )     -    
Class Y     -       -       (4,643 )     (5,505 )     (855 )     -    
Tax return of capital  
Class A     (18 )     -       -       -       -       -    
Class B     (3 )     -       -       -       -       -    
Class C     (1 )     -       -       -       -       -    
Class R     (3 )     -       -       -       -       -    
Class Y     (210 )     -       -       -       -       -    
Total distributions     (30,829 )     (23,912 )     (7,107 )     (7,276 )     (1,659 )     (684 )  
CAPITAL SHARE TRANSACTIONS (1):  
Class A:  
Proceeds from sales     101,208       25,928       9,000       1,994       6,263       1,423    
Reinvestment of distributions     2,238       1,673       139       116       39       11    
Payments for redemptions     (45,584 )     (37,906 )     (3,198 )     (1,218 )     (1,649 )     (639 )  
Increase (decrease) in net assets from Class A transactions     57,862       (10,305 )     5,941       892       4,653       795    
Class B:  
Proceeds from sales     4,621       5,525       628       731       446       513    
Reinvestment of distributions     329       321       46       41       7       -    
Payments for redemptions     (15,132 )     (14,832 )     (304 )     (201 )     (118 )     (131 )  
Increase (decrease) in net assets from Class B transactions     (10,182 )     (8,986 )     370       571       335       382    
Class C:  
Proceeds from sales     4,397       13,645       1,356       843       917       744    
Reinvestment of distributions     138       142       33       25       10       1    
Payments for redemptions     (9,413 )     (9,354 )     (753 )     (162 )     (476 )     (151 )  
Increase (decrease) in net assets from Class C transactions     (4,878 )     4,433       636       706       451       594    
Class R:  
Proceeds from sales     11,681       27,976       1,049       1,734       1,722       1,887    
Reinvestment of distributions     389       549       79       97       29       33    
Payments for redemptions     (71,464 )     (27,845 )     (5,895 )     (1,930 )     (5,464 )     (13,558 )  
Increase (decrease) in net assets from Class R transactions     (59,394 )     680       (4,767 )     (99 )     (3,713 )     (11,638 )  
Class Y:  
Proceeds from sales     533,400       890,946       108,384       114,594       91,307       51,061    
Reinvestment of distributions     19,144       15,659       3,958       5,064       1,001       372    
Payments for redemptions     (556,690 )     (547,725 )     (73,284 )     (117,836 )     (75,927 )     (55,592 )  
Increase (decrease) in net assets from Class Y transactions     (4,146 )     358,880       39,058       1,822       16,381       (4,159 )  
Increase (decrease) in net assets from capital share transactions     (20,738 )     344,702       41,238       3,892       18,107       (14,026 )  
Total increase in net assets     227,821       679,902       78,360       45,026       40,541       16,949    
Net assets at beginning of period     2,085,998       1,406,096       252,815       207,789       128,053       111,104    
Net assets at end of period   $ 2,313,819     $ 2,085,998     $ 331,175     $ 252,815     $ 168,594     $ 128,053    
Undistributed net investment income at end of period   $ 51     $ 601     $ 40     $ 21     $ 157     $ 67    

 

  (1)  See note 5 in Notes to Financial Statements for additional information.

The accompanying notes are an integral part of the financial statements.

FIRST AMERICAN FUNDS Annual Report 2004

44


FIRST AMERICAN FUNDS Annual Report 2004

45


Financial Highlights For a share outstanding throughout the periods ended September 30, unless otherwise indicated.

    Net Asset
Value
Beginning
of Period		   Net
Investment
Income		   Realized and
Unrealized
Gains or
(Losses) on
Investments		   Dividends
from Net
Investment
Income		   Distributions
from Net
Realized Gains		   Distributions
from Return
of Capital		   Net Asset
Value
End of
Period		  
Equity Index Fund  
Class A  
  2004 (1)   $ 18.70     $ 0.23     $ 2.22     $ (0.24 )   $ -     $ - (5)   $ 20.91    
  2003 (1)     15.31       0.21       3.38       (0.20 )     -       -       18.70    
  2002 (1)     19.50       0.18       (4.19 )     (0.18 )     -       -       15.31    
  2001 (1)     27.75       0.18       (7.43 )     (0.17 )     (0.83 )     -       19.50    
  2000       25.52       0.17       2.91       (0.17 )     (0.68 )     -       27.75    
Class B  
  2004 (1)   $ 18.48     $ 0.08     $ 2.19     $ (0.09 )   $ -     $ - (5)   $ 20.66    
  2003 (1)     15.13       0.08       3.35       (0.08 )     -       -       18.48    
  2002 (1)     19.29       0.03       (4.15 )     (0.04 )     -       -       15.13    
  2001 (1)     27.49       -       (7.35 )     (0.02 )     (0.83 )     -       19.29    
  2000       25.34       -       2.84       (0.01 )     (0.68 )     -       27.49    
Class C  
  2004 (1)   $ 18.59     $ 0.08     $ 2.20     $ (0.09 )   $ -     $ - (5)   $ 20.78    
  2003 (1)     15.23       0.08       3.36       (0.08 )     -       -       18.59    
  2002 (1)     19.41       0.03       (4.17 )     (0.04 )     -       -       15.23    
  2001 (1)     27.66       -       (7.40 )     (0.02 )     (0.83 )     -       19.41    
  2000       25.48       -       2.88       (0.02 )     (0.68 )     -       27.66    
Class R (1)  
  2004 (2)   $ 18.70     $ 0.23     $ 2.20     $ (0.22 )   $ -     $ - (5)   $ 20.91    
  2003       15.30       0.21       3.39       (0.20 )     -       -       18.70    
  2002       19.50       0.18       (4.20 )     (0.18 )     -       -       15.30    
  2001 (3)     18.80       -       0.70       -       -       -       19.50    
Class Y  
  2004 (1)   $ 18.69     $ 0.29     $ 2.22     $ (0.29 )   $ -     $ - (5)   $ 20.91    
  2003 (1)     15.30       0.25       3.38       (0.24 )     -       -       18.69    
  2002 (1)     19.49       0.23       (4.19 )     (0.23 )     -       -       15.30    
  2001 (1)     27.74       0.23       (7.42 )     (0.23 )     (0.83 )     -       19.49    
  2000       25.51       0.23       2.91       (0.23 )     (0.68 )     -       27.74    

 

  (1)  Per share data calculated using average shares outstanding method.

  (2)  Prior to July 1, 2004, Class R shares were named Class S shares, which had lower fees and expenses.

  (3)  Class of shares has been offered since September 24, 2001. All ratios for the period have been annualized, except total return and portfolio turnover.

  (4)  Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived.

  (5)  Includes a tax return of capital of less than $0.01.

The accompanying notes are an integral part of the financial statements.

FIRST AMERICAN FUNDS Annual Report 2004

46


    Total
Return (4)		   Net Assets
End of
Period (000)		   Ratio of
Expenses to
Average
Net Assets		   Ratio of Net
Investment
Income (Loss)
to Average
Net Assets		   Ratio of
Expenses to
Average
Net Assets
(Excluding
Waivers)		   Ratio of Net
Investment
Income (Loss)
to Average Net
Assets (Excluding
Waivers)		   Portfolio
Turnover
Rate		  
Equity Index Fund  
Class A  
  2004 (1)     13.12 %   $ 234,349       0.62 %     1.13 %     0.79 %     0.96 %     1 %  
  2003 (1)     23.58       158,324       0.62       1.22       0.80       1.04       1    
  2002 (1)     (20.75 )     139,007       0.62       0.91       0.80       0.73       8    
  2001 (1)     (26.95 )     188,410       0.60       0.74       1.14       0.20       6    
  2000       12.11       134,180       0.60       0.62       1.14       0.08       16    
Class B  
  2004 (1)     12.31 %   $ 69,828       1.37 %     0.38 %     1.54 %     0.21 %     1 %  
  2003 (1)     22.72       71,624       1.37       0.47       1.55       0.29       1    
  2002 (1)     (21.40 )     66,835       1.37       0.16       1.55       (0.02 )     8    
  2001 (1)     (27.49 )     95,586       1.35       (0.01 )     1.89       (0.55 )     6    
  2000       11.25       121,092       1.35       (0.13 )     1.89       (0.67 )     16    
Class C  
  2004 (1)     12.28 %   $ 30,111       1.37 %     0.38 %     1.54 %     0.21 %     1 %  
  2003 (1)     22.65       31,330       1.37       0.47       1.55       0.29       1    
  2002 (1)     (21.38 )     21,637       1.37       0.16       1.55       (0.02 )     8    
  2001 (1)     (27.51 )     29,560       1.35       (0.01 )     1.89       (0.55 )     6    
  2000       11.32       34,811       1.35       (0.13 )     1.89       (0.67 )     16    
Class R (1)  
  2004 (2)     13.00 %   $ 333       0.62 %     1.13 %     0.79 %     0.96 %     1 %  
  2003       23.66       52,925       0.62       1.22       0.80       1.04       1    
  2002       (20.79 )     42,964       0.62       0.93       0.80       0.75       8    
  2001 (3)     3.72       38,220       0.72       0.89       1.20       0.41       6    
Class Y  
  2004 (1)     13.45 %   $ 1,979,198       0.37 %     1.38 %     0.54 %     1.21 %     1 %  
  2003 (1)     23.89       1,771,795       0.37       1.46       0.55       1.28       1    
  2002 (1)     (20.56 )     1,135,653       0.37       1.16       0.55       0.98       8    
  2001 (1)     (26.78 )     1,567,607       0.35       0.99       0.89       0.45       6    
  2000       12.38       1,400,086       0.35       0.87       0.89       0.33       16    

 

FIRST AMERICAN FUNDS Annual Report 2004

47


Financial Highlights For a share outstanding throughout the periods ended September 30, unless otherwise indicated.

    Net Asset
Value
Beginning
of Period		   Net
Investment
Income (Loss)		   Realized and
Unrealized
Gains or
(Losses) on
Investments		   Dividends
from Net
Investment
Income		   Distributions
from Net
Realized Gains		   Net Asset
Value
End of
Period		   Total
Return (9)		  
Mid Cap Index Fund (1)  
Class A  
  2004 (2)   $ 10.36     $ 0.05     $ 1.67     $ (0.05 )   $ (0.19 )   $ 11.84       16.80 %  
  2003 (2)     8.51       0.04       2.08       (0.04 )     (0.23 )     10.36       25.45    
  2002 (2)     9.38       0.04       (0.49 )     (0.04 )     (0.38 )     8.51       (5.45 )  
  2001 (2)(3)     12.56       0.05       (2.11 )     (0.05 )     (1.07 )     9.38       (17.60 )  
  2000 (4)(5)     10.00       0.04       2.56       (0.04 )     -       12.56       26.48    
Class B  
  2004 (2)   $ 10.25     $ (0.03 )   $ 1.64     $ -     $ (0.19 )   $ 11.67       15.88 %  
  2003 (2)     8.44       (0.03 )     2.07       -       (0.23 )     10.25       24.63    
  2002 (2)     9.33       (0.03 )     (0.48 )     -       (0.38 )     8.44       (6.07 )  
  2001 (2)(3)     12.52       -       (2.12 )     -       (1.07 )     9.33       (18.15 )  
  2000 (4)(5)     10.00       (0.01 )     2.56       (0.03 )     -       12.52       25.65    
Class C (2)  
  2004     $ 10.28     $ (0.03 )   $ 1.64     $ -     $ (0.19 )   $ 11.70       15.83 %  
  2003       8.47       (0.03 )     2.07       -       (0.23 )     10.28       24.55    
  2002       9.38       (0.02 )     (0.51 )     -       (0.38 )     8.47       (6.22 )  
  2001 (6)     9.07       -       0.31       -       -       9.38       3.42    
Class R (2)  
  2004 (7)   $ 10.36     $ 0.06     $ 1.65     $ (0.05 )   $ (0.19 )   $ 11.83       16.62 %  
  2003       8.50       0.04       2.09       (0.04 )     (0.23 )     10.36       25.60    
  2002       9.38       0.04       (0.50 )     (0.04 )     (0.38 )     8.50       (5.56 )  
  2001 (8)     11.07       0.04       (1.67 )     (0.06 )     -       9.38       (14.77 )  
Class Y  
  2004 (2)   $ 10.37     $ 0.08     $ 1.66     $ (0.08 )   $ (0.19 )   $ 11.84       16.97 %  
  2003 (2)     8.51       0.06       2.09       (0.06 )     (0.23 )     10.37       25.86    
  2002 (2)     9.38       0.06       (0.49 )     (0.06 )     (0.38 )     8.51       (5.23 )  
  2001 (2)(3)     12.55       0.08       (2.11 )     (0.07 )     (1.07 )     9.38       (17.34 )  
  2000 (4)(5)     10.00       0.08       2.55       (0.08 )     -       12.55       26.62    

 

  (1)  The financial highlights for the Mid Cap Index Fund as set forth herein include the historical financial highlights of the Firstar Mid Cap Index Fund.
The assets of the Firstar Fund were acquired by the First American Mid Cap Index Fund on September 24, 2001. In connection with such acquisition,
(i) Class A shares of the Firstar Mid Cap Index Fund were exchanged for Class A shares of the First American Mid Cap Index Fund, (ii) Firstar Class B shares
were exchanged for Class B shares of the First American Fund, (iii) Firstar Class Y shares were exchanged for Class S shares (now designated Class R shares) 
of the First American Fund, and (iv) Firstar Institutional Class shares were exchanged for Class Y shares of the First American Fund.

  (2)  Per share data calculated using average shares outstanding method.

  (3)  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.

  (4)  Commenced operations on November 4, 1999. All ratios for the period have been annualized, except total return and portfolio turnover.

  (5)  For the fiscal period ended October 31.

  (6)  Class of shares has been offered since September 24, 2001. All ratios for the period have been annualized, except total return and portfolio turnover.

  (7)  Prior to July 1, 2004, Class R shares were named Class S shares, which had lower fees and expenses.

  (8)  Class of shares has been offered since November 27, 2000. All ratios for the period have been annualized, except total return and portfolio turnover.

  (9)  Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived.

The accompanying notes are an integral part of the financial statements.

FIRST AMERICAN FUNDS Annual Report 2004

48


    Net Assets
End of
Period (000)		   Ratio of
Expenses to
Average
Net Assets		   Ratio of Net
Investment
Income (Loss)
to Average
Net Assets		   Ratio of
Expenses to
Average
Net Assets
(Excluding
Waivers)		   Ratio of Net
Investment
Income (Loss)
to Average Net
Assets (Excluding
Waivers)		   Portfolio
Turnover
Rate		  
Mid Cap Index Fund (1)  
Class A  
  2004 (2)   $ 11,987       0.75 %     0.47 %     0.80 %     0.42 %     14 %  
  2003 (2)     5,332       0.75       0.45       0.84       0.36       23    
  2002 (2)     3,581       0.75       0.37       0.83       0.29       19    
  2001 (2)(3)     2,972       0.75       0.51       0.80       0.46       43    
  2000 (4)(5)     1,918       0.75       0.75       0.90       0.60       45    
Class B  
  2004 (2)   $ 3,133       1.50 %     (0.27 )%     1.55 %     (0.32 )%     14 %  
  2003 (2)     2,419       1.50       (0.30 )     1.59       (0.39 )     23    
  2002 (2)     1,475       1.50       (0.37 )     1.58       (0.45 )     19    
  2001 (2)(3)     1,265       1.50       (0.24 )     1.54       (0.28 )     43    
  2000 (4)(5)     905       1.50       -       1.65       (0.15 )     45    
Class C (2)  
  2004     $ 2,653       1.50 %     (0.27 )%     1.55 %     (0.32 )%     14 %  
  2003       1,756       1.50       (0.30 )     1.59       (0.39 )     23    
  2002       795       1.50       (0.37 )     1.58       (0.45 )     19    
  2001 (6)     -       -       -       -       -       43    
Class R (2)  
  2004 (7)   $ 1       0.75 %     0.49 %     0.80 %     0.44 %     14 %  
  2003       4,134       0.75       0.46       0.84       0.37       23    
  2002       3,393       0.75       0.37       0.83       0.29       19    
  2001 (8)     4,301       0.75       0.47       0.80       0.42       43    
Class Y  
  2004 (2)   $ 313,401       0.50 %     0.73 %     0.55 %     0.68 %     14 %  
  2003 (2)     239,174       0.50       0.71       0.59       0.62       23    
  2002 (2)     198,545       0.50       0.63       0.58       0.55       19    
  2001 (2)(3)     176,857       0.50       0.75       0.53       0.72       43    
  2000 (4)(5)     125,881       0.50       1.00       0.65       0.85       45    

 

FIRST AMERICAN FUNDS Annual Report 2004

49


Financial Highlights For a share outstanding throughout the periods ended September 30, unless otherwise indicated.

    Net Asset
Value
Beginning
of Period		   Net
Investment
Income (Loss)		   Realized and
Unrealized
Gains or
(Losses) on
Investments		   Dividends
from Net
Investment
Income		   Distributions
from Net
Realized Gains		   Net Asset
Value
End of
Period		   Total
Return (10)		  
  Small Cap Index Fund (1)        
Class A  
  2004 (2)   $ 11.47     $ 0.04     $ 1.98     $ (0.03 )   $ (0.08 )   $ 13.38       17.71 %  
  2003 (2)     8.55       0.04       2.92       (0.04 )     -       11.47       34.77    
  2002 (2)     9.68       0.05       (1.13 )     (0.05 )     -       8.55       (11.28 )  
  2001 (2)(3)     12.23       (0.01 )     (1.49 )     -       (1.05 )     9.68       (12.76 )  
  2000 (4)     10.18       (0.01 )     2.20       -       (0.14 )     12.23       21.81    
  1999 (5)(6)     10.00       -       0.19       (0.01 )     -       10.18       1.86    
Class B (2)  
  2004     $ 11.33     $ (0.06 )   $ 1.96     $ -     $ (0.08 )   $ 13.15       16.83 %  
  2003       8.47       (0.03 )     2.90       (0.01 )     -       11.33       33.87    
  2002       9.63       (0.03 )     (1.13 )     -       -       8.47       (12.03 )  
  2001 (7)     10.97       (0.01 )     (1.33 )     -       -       9.63       (12.11 )  
Class C (2)  
  2004     $ 11.43     $ (0.06 )   $ 1.97     $ -     $ (0.08 )   $ 13.26       16.77 %  
  2003       8.54       (0.03 )     2.93       (0.01 )     -       11.43       33.94    
  2002       9.68       (0.03 )     (1.11 )     -       -       8.54       (11.72 )  
  2001 (8)     9.49       -       0.19       -       -       9.68       2.11    
Class R  
  2004 (2)(9)   $ 11.41     $ 0.03     $ 1.97     $ (0.02 )   $ (0.08 )   $ 13.31       17.65 %  
  2003 (2)     8.52       0.05       2.88       (0.04 )     -       11.41       34.54    
  2002 (2)     9.64       0.05       (1.12 )     (0.05 )     -       8.52       (11.26 )  
  2001 (2)(3)     12.19       (0.01 )     (1.49 )     -       (1.05 )     9.64       (12.82 )  
  2000 (4)     10.17       (0.01 )     2.18       (0.01 )     (0.14 )     12.19       21.54    
  1999 (5)(6)     10.00       -       0.17       -       -       10.17       1.74    
Class Y  
  2004 (2)   $ 11.51     $ 0.07     $ 1.99     $ (0.06 )   $ (0.08 )   $ 13.43       18.02 %  
  2003 (2)     8.57       0.07       2.94       (0.07 )     -       11.51       35.23    
  2002 (2)     9.70       0.07       (1.13 )     (0.07 )     -       8.57       (11.09 )  
  2001 (2)(3)     12.24       0.02       (1.50 )     (0.01 )     (1.05 )     9.70       (12.56 )  
  2000 (4)     10.19       0.02       2.19       (0.02 )     (0.14 )     12.24       21.93    
  1999 (5)(6)     10.00       0.01       0.19       (0.01 )     -       10.19       2.01    

 

  (1)  The financial highlights for the Small Cap Index Fund as set forth herein include the historical financial highlights of the Firstar Small Cap Index Fund.
The assets of the Firstar Fund were acquired by the First American Small Cap Index Fund on September 24, 2001. In connection with such acquisition,
(i) Class A shares of the Firstar Small Cap Index Fund were exchanged for Class A shares of the First American Fund, (ii) Firstar Class B shares were exchanged
for Class B shares of the First American Fund, (iii) Firstar Class Y shares were exchanged for Class S shares (now designated Class R shares) of the First American Fund,
and (iv) Firstar Institutional Class shares were exchanged for Class Y shares of the First American Fund.

  (2)  Per share data calculated using average shares outstanding method.

  (3)  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.

  (4)  For the period December 1, 1999, to October 31, 2000. Effective in 2000, the Fund's fiscal year end was changed from November 30 to October 31.
All ratios for the period have been annualized, except total return and portfolio turnover.

  (5)  Commenced operations on December 30, 1998. All ratios for the period have been annualized, except total return and portfolio turnover.

  (6)  For the fiscal period ended November 30.

  (7)  Class of shares has been offered since December 11, 2000. All ratios for the period have been annualized, except total return and portfolio turnover.

  (8)  Class of shares has been offered since September 24, 2001. All ratios for the period have been annualized, except total return and portfolio turnover.

  (9)  Prior to July 1, 2004, Class R shares were named Class S shares, which had lower fees and expenses.

  (10)  Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived.

The accompanying notes are an integral part of the financial statements.

FIRST AMERICAN FUNDS Annual Report 2004

50


    Net Assets
End of
Period (000)		   Ratio of
Expenses to
Average
Net Assets		   Ratio of Net
Investment
Income (Loss)
to Average
Net Assets		   Ratio of Net
Expenses to
Average
Net Assets
(Excluding
Waivers)		   Investment
Income (Loss)
to Average Net
Assets (Excluding
Waivers)		   Portfolio
Turnover
Rate		  
  Small Cap Index Fund (1)    
Class A  
  2004 (2)   $ 8,749       0.93 %     0.30 %     1.02 %     0.21 %     25 %  
  2003 (2)     3,480       0.93       0.42       1.05       0.30       41    
  2002 (2)     1,908       0.93       0.46       1.09       0.30       49    
  2001 (2)(3)     341       0.91       (0.07 )     0.94       (0.10 )     102    
  2000 (4)     177       0.99       (0.11 )     1.09       (0.21 )     32    
  1999 (5)(6)     134       1.00       (0.15 )     1.14       (0.29 )     35    
Class B (2)  
  2004     $ 1,494       1.68 %     (0.46 )%     1.77 %     (0.55 )%     25 %  
  2003       993       1.68       (0.33 )     1.80       (0.45 )     41    
  2002       424       1.68       (0.29 )     1.84       (0.45 )     49    
  2001 (7)     107       1.65       (0.84 )     1.69       (0.88 )     102    
Class C (2)  
  2004     $ 1,939       1.68 %     (0.46 )%     1.77 %     (0.55 )%     25 %  
  2003       1,268       1.68       (0.33 )     1.80       (0.45 )     41    
  2002       447       1.68       (0.26 )     1.84       (0.42 )     49    
  2001 (8)     -       -       -       -       -       102    
Class R  
  2004 (2)(9)   $ 1       0.93 %     0.24 %     0.99 %     0.18 %     25 %  
  2003 (2)     3,210       0.93       0.52       1.05       0.40       41    
  2002 (2)     13,576       0.93       0.42       1.09       0.26       49    
  2001 (2)(3)     13,886       0.88       (0.05 )     0.91       (0.08 )     102    
  2000 (4)     18,057       0.99       (0.11 )     1.09       (0.21 )     32    
  1999 (5)(6)     14,955       0.92       (0.06 )     1.12       (0.26 )     35    
Class Y  
  2004 (2)   $ 156,411       0.68 %     0.54 %     0.77 %     0.45 %     25 %  
  2003 (2)     119,102       0.68       0.68       0.80       0.56       41    
  2002 (2)     94,749       0.68       0.68       0.84       0.52       49    
  2001 (2)(3)     54,169       0.66       0.19       0.68       0.17       102    
  2000 (4)     60,771       0.69       0.19       1.09       (0.21 )     32    
  1999 (5)(6)     45,331       0.68       0.18       1.13       (0.27 )     35    

 

FIRST AMERICAN FUNDS Annual Report 2004

51


Notes to Financial Statements  September 30, 2004

1 >  Organization

The First American Equity Index Fund, Mid Cap Index Fund, and Small Cap Index Fund (each a "Fund" and collectively, the "Funds") are mutual funds offered by First American Investment Funds, Inc. ("FAIF") which is a member of the First American Family of Funds. As of September 30, 2004, FAIF offered 37 funds, including the Funds. FAIF is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. FAIF's articles of incorporation permit the Funds' board of directors to create additional funds in the future. The Equity Index Fund, Mid Cap Index Fund and Small Cap Index Fund are each diversified open-end management investment companies.

The Funds offer Class A, Class B, Class C, Class R, and Class Y shares. Prior to July 1, 2004, Class R shares were named Class S shares. Class A shares are sold with a front-end sales charge. Class B shares are subject to a contingent deferred sales charge for six years and automatically convert to Class A shares after eight years. Class C shares may be subject to a contingent deferred sales charge for 12 months, and will not convert to Class A shares. Class R shares have no sales charge and are offered only through certain tax-deferred retirement plans. Class Y shares have no sales charge and are offered only to qualifying institutional investors and certain other qualifying accounts.

The Funds' prospectuses provide descriptions of each Fund's investment objective, principal investment strategies and principal risks. All classes of shares have identical voting, dividend, liquidation, and other rights, and the same terms and conditions, except that the level of distribution and shareholder servicing fees charged may differ among classes. Each class has exclusive voting rights on any matters relating to that class' servicing or distribution arrangements.

2 >  Summary of Significant Accounting Policies

The significant accounting policies followed by the Funds are as follows:

SECURITY VALUATIONS – Security valuations for the Funds' investments are furnished by one or more independent pricing services that have been approved by the Funds' board of directors. Investments in equity securities that are traded on a national securities exchange are stated at the last quoted sales price if readily available for such securities on each business day. For securities traded on the Nasdaq national market system, the Funds utilize the Nasdaq Official Closing Price which compares the last trade to the bid/ask range of a security. If the last trade falls within the bid/ask range, then that price will be the closing price. If the last trade is outside the bid/ask range, and falls above the ask, the ask will be the closing price. If the last trade is below the bid, the bid will be the closing price. Other equity securities traded in the over-the-counter market and listed equity securities for which no sale was reported on that date are stated at the last quoted bid price. Debt obligations exceeding 60 days to maturity are valued by an independent pricing service. The pricing service may employ methodologies that utilize actual market transactions, broker-dealer supplied valuations, or other formula-driven valuation techniques. These techniques generally consider such factors as yields or prices of bonds of comparable quality, type of issue, coupon, maturity, ratings, and general market conditions. Securities for which prices are not available from an independent pricing service, but where an active market exists, are valued using market quotations obtained from one or more dealers that make markets in the securities or from a widely-used quotation system. When market quotations are not readily available, securities are valued at fair value as determined in good faith by procedures established and approved by the Funds' board of directors. 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 (including non-U.S. securities) between the close of trading in those securities and the close of regular trading on the New York Stock Exchange, the securities will be valued at fair value. Price movements in futures contracts and ADRs, and various other indices, may be reviewed in the course of making a good faith determination of a security's fair value. The use of fair value pricing by a fund may cause the net asset value of its shares to differ significantly from net asset value that would be calculated without regard to such considerations. As of September 30, 2004, the Equity Index Fund and Small Cap Index Fund had fair valued securities with a total market value of $1,201 and $2 or 0.0% and 0.0%, respectively, of total net assets for the Fund. Mid Cap Index Fund had no fair valued securities. Debt obligations with 60 days or less remaining until maturity may be valued at their amortized cost, which approximates market value. Foreign securities are valued at the closing prices on the principal exchange on which they trade. The prices for foreign securities are reported in local currency and converted to U.S. dollars using currency exchange rates. Exchange rates are provided daily by recognized independent pricing agents. As of September 30, 2004, the Funds had no investments in

FIRST AMERICAN FUNDS Annual Report 2004

52


foreign securities. Investments in open-end mutual funds are valued at the respective net asset value of each underlying fund on the valuation date.

SECURITY TRANSACTIONS AND INVESTMENT INCOME – The Funds record security transactions on the trade date of the security purchase or sale. Dividend income is recorded on the ex-dividend date. Interest income, including amortization of bond premium and discount, is recorded on an accrual basis. Security gains and losses are determined on the basis of identified cost, which is the same basis used for federal income tax purposes.

DISTRIBUTIONS TO SHAREHOLDERS – Distributions from net investment income are declared and paid 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 losses deferred from wash sales, the tax recognition of mark to market gains (losses) on open futures contracts, proceeds from securities litigation, and the sale of Real Estate Investment Trust securities. To the extent these differences are permanent, reclassifications are made to the appropriate equity accounts in the period that the differences arise.

On the Statements of Assets and Liabilities the following reclassifications were made (000):

Fund   Accumulated
Net Realized
Gain (Loss)		   Undistributed
Net Investment
Income		   Portfolio
Capital		  
Equity Index Fund   $ 441     $ (206 )   $ (235 )  
Mid Cap Index Fund     17       (17 )     -    
Small Cap Index Fund     (44 )     44       -    

 

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) are recorded by the Fund. The distributions paid during the fiscal years ended September 30, 2004 and 2003, were characterized as follows (000):

    2004  
Fund   Ordinary
Income		   Long Term
Gain		   Return
of Capital		   Total  
Equity Index Fund   $ 30,594     $ -     $ 235     $ 30,829    
Mid Cap Index Fund     3,008       4,099       -       7,107    
Small Cap Index Fund     1,059       600       -       1,659    

 

    2003  
Fund   Ordinary
Income		   Long Term
Gain		   Total  
Equity Index Fund   $ 23,912     $ -     $ 23,912    
Mid Cap Index Fund     1,700       5,576       7,276    
Small Cap Index Fund     576       108       684    

 

As of September 30, 2004, the components of accumulated earnings (deficit) on a tax basis were as follows (000):

    Undistributed
Ordinary
Income		   Undistributed
Long Term
Capital Gains		   Accumulated
Capital and
Post-October
Losses		   Unrealized
Appreciation
(Depreciation)		   Total
Accumulated
Earnings
(Deficit)		  
Equity Index Fund   $ -     $ -     $ (14,133 )   $ 485,546     $ 471,413    
Mid Cap Index Fund     1,319       10,085       -       25,503       36,907    
Small Cap Index Fund     3,377       4,602       -       19,621       27,600    

 

FIRST AMERICAN FUNDS Annual Report 2004

53


Notes to Financial Statements  September 30, 2004

The difference between book and tax basis unrealized appreciation is primarily due to the tax deferral of losses on wash sales and the amount of gain (loss) recognized for tax purposes due to mark to market adjustments on open futures contracts, and return of capital distributions related to Real Estate Investment Trust investments.

As of September 30, 2004, the following Fund had a capital loss carryforward (000):

    Expiration Year  
Fund   2010   2011   Total  
Equity Index Fund   $ 3,232     $ 10,901     $ 14,133    

 

FUTURES TRANSACTIONS – In order to gain exposure to or protect against changes in the market, the Funds may enter into S&P and Russell Index futures contracts and other stock index futures contracts.

Upon entering into a futures contract, the Fund is required to deposit cash or pledge U.S. government securities in an amount equal to five percent of the purchase price indicated in the futures contract (initial margin). Subsequent payments, which are dependent on the daily fluctuations in the value of the underlying security or securities, are made or received by the Fund each day (daily variation margin) and are recorded as unrealized gains (losses) until the contract is closed. When the contract is closed, the Fund records a realized gain (loss) equal to the difference between the proceeds from (or cost of) the closing transaction and the Fund's basis in the contract.

The Funds' investment in stock index futures contracts is designed to maintain sufficient liquidity to meet redemption requests and to increase the level of Fund assets devoted to replicating the composition of the S&P and Russell Indices while reducing transaction costs. Risks of entering into futures contracts, in general, include the possibility that there will not be a perfect price correlation between the futures contracts and the underlying securities. Second, it is possible that a lack of liquidity for futures contracts could exist in the secondary market, resulting in an inability to close a futures position prior to its maturity date. Third, the purchase of a futures contract involves the risk that a fund could lose more than the original margin deposit required to initiate a futures transaction. These contracts involve market risk in excess of the amount reflected in the Fund's statement of assets and liabilities. Unrealized gains (losses) on outstanding positions in futures contracts held at the close of the year will be recognized as capital gains (losses) for federal income tax purposes.

ILLIQUID OR RESTRICTED 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.

As of September 30, 2004, Small Cap Index Fund held the following illiquid securities:

Security   Shares   Dates Acquired   Cost Basis  
Cross Media Marketing     1,203     6/02 to 12/02    $ 10    
FirstBank Fractional Shares     -     1/04     -    
MicroAge     3,579     1/99 to 12/99     29    
Neon Communications     34,093     9/01 to 6/02     3    
Network Plus     1,155     9/01     2    
Southern Union Company Fractional Shares     -     11/03     -    
Storage Networks     15,089     6/02 to 6/03     1    
USB Holding Company Fractional Shares     -     6/03     -    
Wiltel Communications     4,122     4/03 to 8/03     -    

 

FIRST AMERICAN FUNDS Annual Report 2004

54


SECURITIES LENDING – In order to generate additional income, each Fund may lend securities representing up to one-third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks, or other institutional borrowers of securities. Each Fund's policy is to maintain collateral in the form of cash, U.S. government securities, or other high-grade debt obligations equal to at least 100% of the value of securities loaned. The collateral is then "marked-to-market" daily until the securities are returned. As with other extensions of credit, there may be risks of delay in recovery of the securities or even loss of rights in the collateral should the borrower of the security fail financially.

U.S. Bancorp Asset Management, Inc. ("USBAM") serves as the securities lending agent for the Funds in transactions involving the lending of portfolio securities on behalf of the Funds. USBAM acts as the securities lending agent pursuant to, and subject to compliance with conditions contained in, an exemptive order issued by the Securities and Exchange Commission ("SEC"). During the fiscal year ended September 30, 2004, USBAM received fees equal to 25% of the Funds' income from securities lending transactions. The Funds also paid an administrative fee to USBAM equal to 0.025% based on the cash collateral held for the securities on loan. Fees paid to USBAM by the Funds for the fiscal year ended September 30, 2004 were as follows (000):

Fund   Total  
Equity Index Fund   $ 374    
Mid Cap Index Fund     68    
Small Cap Index Fund     46    

 

As of October 1, 2004, USBAM will receive fees equal to 35% of the Funds' income from securities lending transactions. The Funds will no longer pay an administrative fee to USBAM in connection with securities lending.

REPURCHASE AGREEMENTS – A repurchase agreement is an agreement by which the seller of a security agrees to repurchase the security sold at a mutually agreed upon time and price. At the time the Funds enter into a repurchase agreement, the value of the underlying collateral security (ies), including accrued interest, will be equal to or exceed the value of the repurchase agreement. Securities that serve to collateralize the repurchase agreement are held by each Fund's custodian in book entry or physical form in the custodial account of the Fund. Repurchase agreements are valued at cost plus accrued interest receivable.

Pursuant to an exemptive order issued by the SEC, the Funds may transfer uninvested cash balances from proceeds from securities lending into joint repurchase agreements for the First American Funds complex managed by USBAM. As set forth in the accompanying schedules of investments, each of the Funds included in this annual report has an interest in joint repurchase agreements dated September 30, 2004. Information regarding these agreements is as follows (000):

Broker   Rate   Principal   Collateral Value   Security Type   Coupon Rate   Maturity  
Bear Stearns     2.060 %   $ 30,000     $ 30,611     Commercial Loans     0.000 %     2033-2034    
Bear Stearns     2.045 %     100,000       102,056     Commercial Loans     3.850%-6.230%       2004-2014    
Citibank 1.945% 200,000     211,790       Collateralized Mortgage Obligations       2.340%-9.700%     2015-2034
Corporate Bonds		     0.000%-9.125%       2006-2042    
Citibank     1.925 %     100,000       102,114     Israeli Government Bonds     0.000 %     2005-2018    
                            Financing Corporation Bonds     0.000%-10.350%       2017-2018    
                            Easy Growth TR Interest Certificates     0.000 %     2005-2006    
                            Treasury Investors Growth Receipt (TIGER)     0.000 %     2007    
                            Certificate of Accrual on Treasury Securities (CATS)     0.000 %     2011    
                            U.S. Treasury Notes     1.625%-5.000%       2005-2011    
                            U.S. Treasury Bill     0.000 %     2004    
                            Resolution Funding Corporation Bonds     8.625 %     2030    
                            International Finance Corporation Notes     4.750%-5.250%       2006-2007    
                            Inter-American Development Bank Notes     5.375%-8.500%       2006-2011    
                            Asian Development Bank Note     4.50 %     2012    
Greenwich Capital Markets     1.950 %     300,000       306,004     Federal Home Loan Mortgage Corporation Bonds     0.000%-9.000%       2006-2034    
                            Federal National Mortgage Association Bonds     0.000%-6.500%       2007-2042    
Goldman Sachs     2.205 %     50,000       51,021     Commercial Loans     0.00 %     2005-2011    
Goldman Sachs     2.025 %     205,000       211,342     Mortgage Loans     6.088%-6.722%       2010    
                            Commercial Loans     0.00 %     2007    
Goldman Sachs     1.480 %     75,000       77,320     Commercial Loans     0.00 %     2004    
Goldman Sachs     1.425 %     125,000       127,552     Commercial Loans     0.00 %     2005-2020    
Lehman Brothers     2.055 %     200,000       204,000     Home Equity Loans     0.000%-14.101%       2010-2034    
Lehman Brothers     1.935 %     200,000       219,916     Collateralized Mortgage Obligations     0.000%-7.109%       2008-2044    
Lehman Brothers     1.910 %     300,000       306,005     Federal Farm Credit Bank Note     4.500 %     2009    
                            Federal Home Loan Bank Bonds     0.000%-5.750%       2005-2018    
                            Federal Home Loan Mortgage Corporation Notes     2.375%-3.550%       2006-2009    
                            Federal National Mortgage Association Bonds     3.100%-6.000%       2007-2018    
Merrill Lynch     1.925 %     100,000       105,002     Corporate Bonds     0.000%-10.125%       2005-2043    

 

FIRST AMERICAN FUNDS Annual Report 2004

55


Notes to Financial Statements  September 30, 2004

OTHER INCOME – Income from settlement proceeds related to specific portfolio securities is recorded as an adjustment to realized or unrealized gains or losses. Income from settlement proceeds related to securities that are no longer included in the portfolio is recorded in other income. For the fiscal year ended September 30, 2004, the Equity Index Fund, the Mid Cap Index Fund and the Small Cap Index Fund recorded $318,338, $7,795 and $17,418, respectively, in other income for settlement proceeds related to securities no longer included in the portfolios.

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.

INTERFUND LENDING PROGRAM – Pursuant to an exemptive order issued by the SEC, the Funds, along with other registered investment companies in the First American Family of Funds, may participate in an interfund lending program. This program provides an alternative credit facility allowing the Funds to borrow from, or lend money to, other participating Funds. The Funds did not have any interfund lending transactions during the fiscal year ended September 30, 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 board of directors. All amounts in the Plan are 100% vested and accounts under the Plan are obligations of the Funds. Deferred amounts remain in the Funds until distributed in accordance with the Plan.

USE OF ESTIMATES IN PREPARATION OF FINANCIAL STATEMENTS – The preparation of financial statements, in conformity with U.S. generally accepted accounting principles, requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported results of operations during the reporting period. Actual results could differ from those estimates.

3 >  Fees and Expenses

ADVISORY FEES – Pursuant to an investment advisory agreement (the "Agreement"), 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 annual fee for Equity Index Fund, Mid Cap Index Fund and Small Cap Index Fund is 0.25%, 0.25% and 0.40%, respectively. USBAM voluntarily waived fees during the fiscal year ended September 30, 2004 so that the total fund operating expenses, as a percentage of average daily net assets, did not exceed the following amounts:

    Share Class  
Fund   A   B   C   R*   Y  
Equity Index Fund     0.62 %     1.37 %     1.37 %     0.87 %     0.37 %  
Mid Cap Index Fund     0.75       1.50       1.50       1.00       0.50    
Small Cap Index Fund     0.93       1.68       1.68       1.18       0.68    

 

*  Prior to July 1, 2004, Class R shares were designated Class S shares, which had lower fees and expenses of .62%, .75% and .93% for Equity Index Fund, Mid Cap Index Fund and Small Cap Index Fund, respectively.

The Funds may invest in related 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 USBAM's 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 co-administrators pursuant to a co-administration agreement between the Administrators and the Funds. USBAM is a subsidiary of U.S. Bank National Association ("U.S. Bank"). Both U.S. Bank and USBFS are direct subsidiaries of U.S. Bancorp. Under the co-administration agreement, the Administrators are compensated to provide, or compensate other

FIRST AMERICAN FUNDS Annual Report 2004

56


entities to provide, services to the Funds. These services include various legal, oversight and administrative services, accounting services, transfer agency and dividend disbursing services, and shareholder services. The Funds pay the Administrators at an annual rate, calculated daily and paid monthly, based on the average daily net assets of all open-end mutual funds in the First American Family of Funds, equal to each Fund's pro rata share of an amount equal to 0.25% of the aggregate average daily net assets up to $8 billion, 0.235% of the next $17 billion of the aggregate average daily assets, 0.22% of the next $25 billion of the aggregate average daily net assets, and 0.20% of the aggregate average daily net assets in excess of $50 billion. FAIF pays transfer agent fees of $18,500 per share class and additional per account fees for transfer agent services. These fees are allocated to each Fund based upon the Fund's pro rata share of aggregate average daily net assets of the funds that comprise FAIF. For the fiscal year ended September 30, 2004, administration fees paid to USBAM and USBFS by the Funds included in this annual report were as follows (000):

Fund   Amount  
Equity Index Fund   $ 6,150    
Mid Cap Index Fund     843    
Small Cap Index Fund     412    

 

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. These fees are computed daily and paid monthly.

DISTRIBUTION AND SHAREHOLDER SERVICING FEES – Quasar Distributors, LLC ("Quasar"), a subsidiary of U.S. Bancorp, serves as distributor of the Funds pursuant to a distribution agreement with FAIF. Under the distribution agreement, each of the Funds pays Quasar a monthly distribution and/or shareholder servicing fee equal to an annual rate of 0.25%, 1.00%, 1.00% and 0.50% of each Fund's average daily net assets of the Class A shares, Class B shares, Class C shares and Class R shares, respectively. No distribution or shareholder servicing fees are paid by Class Y shares. These fees may be used by Quasar to provide compensation for sales support, distribution activities, or shareholder servicing activities.

FAIF has also adopted and entered into a shareholder servicing plan and agreement with USBAM with respect to the Class R shares. Each Fund pays USBAM a monthly shareholder servicing fee equal to an annual rate of 0.15% of each Fund's average daily net assets of the Class R shares.

USBAM is currently waiving all fees under this plan and agreement. This waiver may be discontinued at any time.

Under these distribution and shareholder servicing agreements, the following amounts were retained by Quasar and USBAM or paid to affiliates of USBAM for the fiscal year ended September 30, 2004 (000):

Fund   Amount  
Equity Index Fund   $ 794    
Mid Cap Index Fund     50    
Small Cap Index Fund     33    

 

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 independent directors, registration fees, printing of shareholder reports, legal, auditing, insurance, and other miscellaneous expenses. For the fiscal year ended September 30, 2004, legal fees and expenses were paid to a law firm of which the Secretary and two Assistant Secretaries of the Funds were partners.

SALES CHARGES – A contingent deferred sales charge ("CDSC") is imposed on redemptions made in Class B shares. The CDSC varies depending on the number of years from time of payment for the purchase of Class B shares until the redemption of such shares. Class B shares automatically convert to Class A shares after eight years.

Year Since Purchase   CDSC as a
Percentage of Dollar
Amount Subject to Charge		  
First     5.00 %  
Second     5.00 %  
Third     4.00 %  
Fourth     3.00 %  
Fifth     2.00 %  
Sixth     1.00 %  
Seventh     -    
Eighth     -    

 

A CDSC of 1.00% is imposed on redemptions made in Class C shares for the first twelve months.

The CDSC for Class B shares and Class C shares is imposed on the value of the purchased shares or the value at the time of redemption, whichever is less.

For the fiscal year ended September 30, 2004, total sales charges retained by affiliates of USBAM for distributing the Funds' shares were as follows (000):

Fund   Amount  
Equity Index Fund   $ 531    
Mid Cap Index Fund     68    
Small Cap Index Fund     47    

 

FIRST AMERICAN FUNDS Annual Report 2004

57


Notes to Financial Statements  September 30, 2004

4 >  Investment In Common Stock Of Affiliate

As disclosed in the Schedule of Investments, Equity Index Fund owns common stock issued by U.S. Bancorp. For the fiscal year ended September 30, 2004, Equity Index Fund recorded no realized gains or losses from sales of U.S. Bancorp common stock and $403,861 of dividend income from U.S. Bancorp common stock. At September 30, 2004, Equity Index Fund had an unrealized gain of $2,886,366 with respect to its investment in U.S. Bancorp common stock.

5 >  Capital Share Transactions

FAIF has 420 billion shares of $0.0001 par value capital stock authorized. Capital share transactions for the Funds were as follows (000):

    Equity
Index Fund		   Mid Cap
Index Fund		   Small Cap
Index Fund		  
    10/1/03
to
9/30/04		   10/1/02
to
9/30/03		   10/1/03
to
9/30/04		   10/1/02
to
9/30/03		   10/1/03
to
9/30/04		   10/1/02
to
9/30/03		  
Class A:  
Shares issued     4,820       1,495       763       217       474       147    
Shares issued in lieu of cash distributions     108       97       13       13       3       1    
Shares redeemed     (2,189 )     (2,208 )     (277 )     (137 )     (126 )     (68 )  
Total Class A transactions     2,739       (616 )     499       93       351       80    
Class B:  
Shares issued     225       321       55       79       34       52    
Shares issued in lieu of cash distributions     16       19       4       4       1       -    
Shares redeemed     (737 )     (881 )     (26 )     (22 )     (9 )     (14 )  
Total Class B transactions     (496 )     (541 )     33       61       26       38    
Class C:  
Shares issued     214       806       118       91       70       74    
Shares issued in lieu of cash distributions     7       8       3       3       1       -    
Shares redeemed     (457 )     (550 )     (65 )     (17 )     (36 )     (15 )  
Total Class C transactions     (236 )     264       56       77       35       59    
Class R:  
Shares issued     564       1,647       91       196       131       192    
Shares issued in lieu of cash distributions     19       32       7       10       2       3    
Shares redeemed     (3,398 )     (1,656 )     (497 )     (206 )     (414 )     (1,508 )  
Total Class R transactions     (2,815 )     23       (399 )     -       (281 )     (1,313 )  
Class Y:  
Shares issued     25,834       50,895       9,346       12,500       6,867       5,268    
Shares issued in lieu of cash distributions     928       904       357       560       80       39    
Shares redeemed     (26,886 )     (31,254 )     (6,301 )     (13,331 )     (5,648 )     (6,019 )  
Total Class Y transactions     (124 )     20,545       3,402       (271 )     1,299       (712 )  
Net increase (decrease) in capital shares     (932 )     19,675       3,591       (40 )     1,430       (1,848 )  

 

6 >  Investment Security Transactions

During the fiscal year ended September 30, 2004, purchases of securities and proceeds from sales of securities, other than temporary investments in short-term securities, were as follows (000):

Fund   Purchases   Sales  
Equity Index Fund   $ 56,032     $ 17,542    
Mid Cap Index Fund     81,441       41,016    
Small Cap Index Fund     61,935       37,231    

 

The aggregate gross unrealized appreciation and depreciation of securities held by the Funds and the total cost of securities (including cost of securities purchased with proceeds from securities lending) for federal income tax purposes at September 30, 2004, were as follows (000):

Fund   Aggregate
Gross
Appreciation		   Aggregate
Gross
Depreciation		   Net   Federal
Income
Tax Cost		  
Equity Index Fund   $ 778,595     $ (293,049 )   $ 485,546     $ 2,709,403    
Mid Cap Index Fund     70,218       (44,715 )     25,503       462,140    
Small Cap Index Fund     34,195       (14,574 )     19,621       189,953    

 

FIRST AMERICAN FUNDS Annual Report 2004

58


7 >  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.

FIRST AMERICAN FUNDS Annual Report 2004

59


NOTICE TO SHAREHOLDERS  September 30, 2004 (unaudited)

TAX INFORMATION 

The information set forth below is for each Fund's fiscal year as required by federal laws. Most shareholders, however, must report distributions on a calendar year basis for income tax purposes, that may include distributions for portions of two fiscal years of a Fund. Accordingly, the information needed for income tax purposes will be sent in early 2005 on Form 1099. Please consult your tax advisor for proper treatment of this information.

Dear First American Fund Shareholders:

For the fiscal year ended September 30, 2004, each Fund has designated long-term capital gain dividends, dividends qualifying for the corporate dividends received deduction, and qualified dividend income with regard to distributions paid during the year as follows:

Fund   Long Term
Capital Gains
Distributions
(Tax Basis) (a)		   Ordinary
Income
Distributions
(Tax Basis) (a)		   Total
Distributions
(Tax Basis)		   Corporate
Dividends
Received
Deduction (b)		   Qualified
Dividend
Income (c)		  
Equity Index Fund     - %     100 %     100 %     100 %     100 %  
Mid Cap Index Fund     58       42       100       86       59    
Small Cap Index Fund     36       64       100       27       24    

 

(a) Based on a percentage of the Fund's total distributions.

(b) Based on a percentage of ordinary income distributions of the Fund.

(c) For the fiscal year ended September 30, 2004 certain dividends paid by the funds may be subject to a maximum tax rate of 15%, as provided by the Internal Revenue Code 1(h). The Funds intend to designate up to the maximum amount of $38,154,713, $2,118,458, and $1,064,080 for the Equity Index Fund, Mid Cap Index Fund and Small Cap Index Fund, respectively. Complete information will be computed and reported in conjunction with your 2004 Form 1099-DIV. As of September 30, 2004, for the calendar year to date, qualified dividend income was 100% of each Fund's ordinary income distributions.

HOW TO OBTAIN A COPY OF THE FUNDS' PROXY VOTING POLICIES AND PROXY VOTING RECORD

A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities, as well as information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12 month period ended June 30, 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 http://www.sec.gov.

QUARTERLY PORTFOLIO HOLDINGS INFORMATION

Beginning with the quarter ending December 31, 2004, each Fund will file its complete schedule of portfolio holdings for the first and third quarters of each fiscal year with the Securities and Exchange Commission on Form N-Q. The Funds' Forms N-Q will be 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 http://www.sec.gov. In addition, you may review and copy the Funds' Forms N-Q at the Commission's Public Reference Room in Washington, D.C. You may obtain information on the operation of the Public Reference Room by calling 1-800-SEC-0330.

FIRST AMERICAN FUNDS Annual Report 2004

60


Directors and Officers of the Fund

Independent Directors

 Name,
Address, and
Year of Birth		   Position(s)
Held
with Fund		   Term of Office
and Length of
Time Served		   Principal Occupation(s) During
Past 5 Years		   Number of
Portfolios in Fund
Complex Overseen
by Director		   Other
Directorships
Held by
Director †		  
Benjamin R. Field III,
P.O. Box 1329,
Minneapolis, MN 55440-1329
(1938)		   Director   Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since September 2003   Retired; Senior Financial Advisor, Bemis Company, Inc. from May 2002 through June 2004; Senior Vice President, Chief Financial Officer & Treasurer, Bemis, through April 2002.   First American Funds Complex: eleven registered investment companies, including fifty-six portfolios   None  
Mickey P. Foret,
P.O. Box 1329,
Minneapolis, MN 55440-1329
(1945)		   Director   Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since September 2003   Consultant to Northwest Airlines, Inc. since 2002; Executive Vice President and Chief Financial Officer, Northwest Airlines, through 2002.   First American Funds Complex: eleven registered investment companies, including fifty-six portfolios   ADC Telecommun- ications, Inc.

Champion Airlines, Inc.

MAIR Holdings Inc. (a holding company for regional air carriers)

URS Corporation (an engineering firm)		  
Roger A. Gibson,
P.O. Box 1329,
Minneapolis, MN 55440-1329
(1946)		   Director   Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since October 1997   Retired; Vice President, Cargo-United Airlines, from July 2001 through July 2004; Vice President, North America – Mountain Region for United Airlines, prior to July 2001.   First American Funds Complex: eleven registered investment companies, including fifty-six portfolios   None  
Victoria J. Herget,
P.O. Box 1329,
Minneapolis, MN 55440-1329
(1951)		   Director   Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since September 2003   Investment consultant and non-profit board member since 2001; Managing Director of Zurich Scudder Investments through 2001.   First American Funds Complex: eleven registered investment companies, including fifty-six portfolios   None  
Leonard W. Kedrowski,
P.O. Box 1329,
Minneapolis, MN 55440-1329
(1941)		   Director   Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since November 1993   Owner, Executive and Management Consulting, Inc., a management consulting firm; Board member, GC McGuiggan Corporation (dba Smyth Companies), a label printer; former Chief Executive Officer, Creative Promotions International, LLC, a promotional award programs and products company, through October 2003; Advisory Board member, Designer Doors, manufacturer of designer doors, through 2002.   First American Funds Complex: eleven registered investment companies, including fifty-six portfolios   None  

 

FIRST AMERICAN FUNDS Annual Report 2004

61


NOTICE TO SHAREHOLDERS  September 30, 2004 (unaudited)

Independent Directors - continued

 Name,
Address, and
Year of Birth		   Position(s)
Held
with Fund		   Term of Office
and Length of
Time Served		   Principal Occupation(s) During
Past 5 Years		   Number of
Portfolios in Fund
Complex Overseen
by Director		   Other
Directorships
Held by
Director †		  
Richard K. Riederer,
P.O. Box 1329,
Minneapolis, MN 55440-1329
(1944)		   Director   Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since August 2001   Retired; Director, President and Chief Executive Officer, Weirton Steel through 2001.   First American Funds Complex: eleven registered investment companies, including fifty-six portfolios   None  
Joseph D. Strauss,
P.O. Box 1329,
Minneapolis, MN 55440-1329
(1940)		   Director   Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since April 1991   Owner, Chairman and Chief Executive Officer, Excensus(TM), LLC, a consulting firm, since 2001; owner and President, Strauss Management Company, a Minnesota holding company for various organizational management business ventures; owner, Chairman and Chief Executive Officer, Community Resource Partnerships, Inc., a strategic planning, operations management, government relations, transportation planning and public relations organization; attorney at law.   First American Funds Complex: eleven registered investment companies, including fifty-six portfolios   None  
Virginia L. Stringer,
P.O. Box 1329,
Minneapolis, MN 55440-1329
(1944)		   Chair; Director   Chair Term three years. Directors Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Chair of FAIF's Board since September 1997; Director of FAIF since August 1987   Owner and President, Strategic Management Resources, Inc., a management consulting firm; Executive Consultant to State Farm Insurance Company.   First American Funds Complex: eleven registered investment companies, including fifty-six portfolios   None  
James M. Wade,
P.O. Box 1329,
Minneapolis, MN 55440-1329
(1943)		   Director   Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since August 2001   Owner and President, Jim Wade Homes, a homebuilding company, since 1999.   First American Funds Complex: eleven registered investment companies, including fifty-six portfolios   None  

 

†  Includes only directorships in a company with a class of securities registered pursuant to Section 12 of the Securities Exchange Act or subject to the requirements of Section 15(d) of the Securities Exchange Act, or any company registered as an investment company under the Investment Company Act.

The Statement of Additional Information (SAI) includes additional information about fund directors and is available upon request without charge by calling 800-677-FUND or writing to First American Funds, P.O. Box 1330, Minneapolis, Minnesota, 55440-1330.

FIRST AMERICAN FUNDS Annual Report 2004

62


Officers

 Position(s)
Name, Address, and
Year of Birth		   Term of Office
Held
with Fund		   and Length of
Time Served		   Principal Occupation(s) During Past 5 Years  
Thomas S. Schreier, Jr.,
U.S. Bancorp Asset
Management, Inc.,
800 Nicollet Mall,
Minneapolis, MN 55402
(1962) *		   President   Re-elected by the Board annually; President of FAIF since February  2001   Chief Executive Officer of the Advisor since May 2001; prior thereto, Chief Executive Officer of First American Asset Management since December 2000 and of Firstar Investment & Research Management Company ("FIRMCO") since February 2001; Senior Managing Director and Head of Equity Research of U.S. Bancorp Piper Jaffray from October 1998 through December 2000; prior to October 1998, Senior Airline Equity Analyst and a Director in the Equity Research Department of Credit Suisse First Boston.  
Mark S. Jordahl,
U.S. Bancorp Asset
Management, Inc.
800 Nicollet Mall,
Minneapolis, MN 55402
(1960) *		   Vice President – Investments   Re-elected by the Board annually; Vice President – Investments of FAIF since September 2001   Chief Investment Officer of U.S. Bancorp Asset Management, Inc. since September 2001; President and Chief Investment Officer, ING Investment Management – Americas, September 2000 to June 2001; Senior Vice President and Chief Investment Officer, ReliaStar Financial Corp., January 1998 to September 2000.  
Jeffery M. Wilson,
U.S. Bancorp Asset
Management, Inc.
800 Nicollet Mall,
Minneapolis, MN 55402
(1956) *		   Vice President - Administration   Re-elected by the Board annually; Vice President – Administration of FAIF since March 2000   Senior Vice President of U.S. Bancorp Asset Management, Inc. since May 2001; prior thereto, Senior Vice President of First American Asset Management.  
Joseph M. Ulrey III,
U.S. Bancorp Asset
Management, Inc.
800 Nicollet Mall,
Minneapolis, MN 55402
(1958) *		   Treasurer   Re-elected by the Board annually; Treasurer of FAIF since December 2003   Chief Financial Officer since September 2004 and Senior Managing Director, Fund Treasury, since December 2003; Senior Managing Director, Risk Management and Quantitative Analysis, since May 2001, U.S. Bancorp Asset Management, Inc. ("USBAM"); from May 2001 through December 2001, Senior Managing Director, Securities Lending and Money Market Funds, USBAM; prior thereto, Senior Managing Director, Securities Lending and Money Market Funds, First American Asset Management.  
Douglas A. Paul,
U.S. Bancorp Asset
Management, Inc.
800 Nicollet Mall,
Minneapolis, MN 55402
(1947)*		   Chief Compliance Officer   Re-elected by the Board annually; Chief Compliance Officer of FAIF since June 2004   Chief Compliance Officer of U.S. Bancorp Asset Management, Inc. since June 2004; prior thereto, Partner, Kirkpatrick & Lockhart LLP since March 2000; prior thereto, Director of Compliance, Associate General Counsel, Vice President, American Century Investments.  
Kathleen L. Prudhomme,
U.S. Bancorp Asset
Management, Inc.
800 Nicollet Mall,
Minneapolis, MN 55402
(1953)*		   Assistant Secretary   Re-elected by the Board annually; Assistant Secretary of FAIF since September 1998   Deputy General Counsel, U.S. Bancorp Asset Management, Inc. since November 2004; prior thereto, Partner, Dorsey & Whitney LLP, a Minneapolis-based law firm.  
James D. Alt,
50 South Sixth Street,
Suite 1500,
Minneapolis, MN 55402
(1951)		   Secretary   Re-elected by the Board annually; Assistant Secretary of FAIF from September 1998 through June 2002. Secretary of FAIF since June 2002   Partner, Dorsey & Whitney LLP, a Minneapolis-based law firm.  
Michael J. Radmer,
50 South Sixth Street,
Suite 1500,
Minneapolis, MN 55402
(1945)		   Assistant Secretary   Re-elected by the Board annually; Assistant Secretary of FAIF since March 2000; Secretary of FAIF from September 1999 through March 2000   Partner, Dorsey & Whitney LLP, a Minneapolis-based law firm.  
James R. Arnold,
615 E. Michigan Street,
Milwaukee, WI 53202
(1957) *		   Assistant Secretary   Re-elected by the Board annually; Assistant Secretary of FAIF since June 2003   Vice President, U.S. Bancorp Fund Services, LLC since March 2002; Senior Administration Services Manager, UMB Fund Services, Inc. through March 2002.  

 

FIRST AMERICAN FUNDS Annual Report 2004

63


NOTICE TO SHAREHOLDERS  September 30, 2004 (unaudited)

Officers - continued

 Position(s)
Name, Address, and
Year of Birth		   Term of Office
Held
with Fund		   and Length of
Time Served		   Principal Occupation(s) During Past 5 Years  
Douglas G. Hess,
615 E. Michigan Street,
Milwaukee, WI 53202
(1967) *		   Assistant Secretary   Re-elected by the Board annually; Assistant Secretary of FAIF since September 2001   Vice President, U.S. Bancorp Fund Services, LLC.  

 

*  Messrs. Schreier, Jordahl, Wilson, Ulrey, Paul and Ms. Prudhomme are each officers of U.S. Bancorp Asset Management, Inc., which serves as investment adviser and co-administrator for FAIF. Messrs. Hess and Arnold are officers of U.S. Bancorp Fund Services, LLC, which is a subsidiary of U.S. Bancorp and which serves as co-administrator for FAIF.

FIRST AMERICAN FUNDS Annual Report 2004

64


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’ Board of Directors is comprised entirely of independent directors.

 


 

 

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. The views expressed in this report reflect those of the portfolio managers only through the period ended September 30, 2004. The portfolio managers’ views are subject to change at any time based upon market or other conditions.

 

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

Milwaukee, Wisconsin 53202

 

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Ernst & Young LLP

220 South Sixth Street

Suite 1400

Minneapolis, Minnesota 55402

 

COUNSEL

Dorsey & Whitney LLP

50 South Sixth Street

Suite 1500

Minneapolis, Minnesota 55402

 

First American Funds

P.O. Box 1330

Minneapolis, MN 55440-1330

 

In an attempt to reduce shareholder costs and help eliminate duplication, First American Funds will try to limit their mailing to one report for each address that lists one or more shareholders with the same last name. If you would like additional copies, please call First American Investor Services at 800.677.FUND or visit firstamericanfunds.com.

 

0387-04     11/2004     AR-INDEX

 


 

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: The registrant has adopted a code of ethics (designated as the “Code of Ethical Conduct”) that applies to its principal executive officer and principal financial officer.  The registrant undertakes to furnish a copy of such Code of Ethical Conduct to any person upon request, without charge, by calling 1-800-677-3863.

 

Item 3—Audit Committee Financial Expert - 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: The registrant’s Board of Directors has determined that Leonard Kedrowski, Benjamin Field, and Mickey Foret, members of the registrant’s Audit Committee, are each an “audit committee financial expert” and are “independent,” as these terms are defined in this Item.  This designation will not increase the designees’ duties, obligations or liability as compared to their duties, obligations and liability as members of the Audit Committee and of the Board of Directors.

 

Item 4—Principal Accountant Fees and Services – Only disclosed annually.

(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.

 

Response: Ernst & Young LLP (“E&Y”) billed the registrant audit fees totaling $391,795 in the fiscal year ended September 30, 2004 and $312,163 in the fiscal year ended September 30, 2003, including fees associated with the annual audit, SEC Rule 17f-2 security count filings and filings of the registrant’s Form NCSR.

 

(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.

 


 

Response: Ernst & Young LLP (“E&Y”) billed the registrant audit-related fees totaling $36,134 in the fiscal year ended September 30, 2004 and $0 in the fiscal year ended September 30, 2003, for professional services associated with               .

 

(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.

 

Response: E&Y billed the registrant fees of $115,034 in the fiscal year ended September 30, 2004 and $129,482 in the fiscal year ended September 30, 2003 for tax services, including tax compliance, tax advice and tax planning.  Tax compliance, tax advice and tax planning services primarily relate to preparation of original and amended tax returns, timely RIC qualification reviews, and tax distribution analysis and planning.

 

(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.

 

Response: There were no fees billed by E&Y for other services to the registrant during the fiscal years ended September 30, 2003 and 2004.

 

(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.

 

Response: Set forth below are the audit committee’s pre-approval policies and procedures pursuant to paragraph (c)(7) of Rule 2-01 of Regulation S-X:

 

Audit Committee policy regarding pre-approval of services provided by the Independent Auditor

 

The Audit Committee of the First American Funds has responsibility for ensuring that all services performed by the independent audit firm for the funds do not impair the firm’s independence.  This review is intended to provide reasonable oversight without removing management from its responsibility for day-to-day operations.  In this regard, the Audit Committee should:

 

•              Understand the nature of the professional services expected to be provided and their impact on auditor independence and audit quality

 


 

•              Examine and evaluate the safeguards put into place by the Company and the auditor to safeguard independence

 

•              Meet quarterly with the partner of the independent audit firm

 

•              Consider approving categories of service that are not deemed to impair independence for a one-year period

 

It is important that a qualitative rather than a mere quantitative evaluation be performed by the Committee in discharging its responsibilities.

 

Policy for Audit and Non-Audit Services Provided to the Funds

 

On an annual basis, the Audit Committee of the First American Funds (“Committee”) will review and consider whether to pre-approve the financial plan for audit fees as well as categories of audit-related and non-audit services that may be performed by the Fund’s independent audit firm directly for the Funds.  At least annually the Committee will receive a report from the independent audit firm of all audit and non-audit services, which were approved during the year.

 

The engagement of the independent audit firm for any non-audit service requires the written pre-approval of the Treasurer of the Funds and all non-audit services performed by the independent audit firm will be disclosed in the required SEC periodic filings.

 

In connection with the Audit Committee review and pre-approval responsibilities, the review by the Audit Committee will consist of the following:

 

Audit Services

 

The categories of audit services and related fees to be reviewed and considered for pre-approval annually by the Committee or its delegate include the following:

 

•              Annual Fund financial statement audits

 

•              Seed audits (related to new product filings, as required)

 

•              SEC and regulatory filings and consents

 

Audit-related Services

 

In addition, the following categories of audit-related services are deemed to be consistent with the role of the independent firm and, as such, will be considered for pre-approval by the Committee or its delegate, on an annual basis.

 

•              Accounting consultations

 


 

•              Fund merger support services

 

•              Other accounting related matters

 

•              Agreed Upon Procedure Reports

 

•              Attestation Reports

 

•              Other Internal Control Reports

 

Notwithstanding any annual pre-approval of these categories of services, individual projects with an estimated fee in excess of $25,000 are subject to pre-approval by the Audit Committee Chair or its delegate on a case-by-case basis.  Individual projects with an estimated fee in excess of $50,000 are subject to pre-approval by the Audit Committee or its delegate on a case-by-case basis.

 

Tax Services

 

The following categories of tax services are deemed to be consistent with the role of the independent audit firm and, as such, will be considered for pre-approval by the Committee or its delegate, on an annual basis.

 

•              Tax compliance services related to the filing or amendment of the following:

 

•              Federal, state and local income tax compliance, and

 

•              Sales and use tax compliance

 

•              Timely RIC qualification reviews

 

•              Tax distribution analysis and planning

 

•              Tax authority examination services

 

•              Tax appeals support services

 

•              Accounting methods studies

 

•              Fund merger support services

 

•              Tax consulting services and related projects

 

Notwithstanding any annual pre-approval of these categories of services, individual projects with an estimated fee in excess of $25,000 are subject to pre-approval by the Audit Committee Chair or its delegate on a case-by-case basis.  Individual projects

 


 

with an estimated fee in excess of $50,000 are subject to pre-approval by the Audit Committee or its delegate on a case-by-case basis.

 

Other Non-audit Services

 

The SEC auditor independence rules adopted in response to the Sarbanes-Oxley Act specifically allow certain non-audit services.  Because of the nature of these services, none of these services may be commenced by the independent firm without the prior approval of the Audit Committee.  The Committee may delegate this responsibility to one or more of the Committee members, with the decisions presented to the full Committee at the next scheduled meeting.

 

Proscribed Services

 

In accordance with SEC rules on independence, the independent audit firm is prohibited from performing services in the following categories of non-audit services:

 

•              Management functions

 

•              Accounting and bookkeeping services

 

•              Internal audit services

 

•              Financial information systems design and implementation

 

•              Valuation services supporting the financial statements

 

•              Actuarial services supporting the financial statements

 

•              Executive recruitment

 

•              Expert services (e.g., litigation support)

 

•              Investment banking

 

Policy for Pre-approval of Non-Audit Services Provided to Other Entities within the Investment Company Complex

 

The Audit Committee of the First American Funds is also responsible for pre-approving certain non-audit services provided to U.S. Bancorp Asset Management, U.S. Bank N.A., Quasar Distributors, U.S. Bancorp Fund Services, LLC and any other entity under common control with U.S. Bancorp Asset Management that provides ongoing services to the Funds.  The only non-audit services provided to these entities which require pre-approval are those services that relate directly to the operations and financial reporting of the Funds.

 


 

Although the Audit Committee is not required to pre-approve all services provided to U.S. Bancorp Asset Management and affiliated service providers, the Audit Committee will annually receive a report from the independent audit firm on the aggregate fees for all services provided to U.S. Bancorp and affiliates.

 

(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.

 

Response: All of the services described in paragraphs (b) through (d) of Item 4 that were provided to the registrant on or after May 6, 2003, the effective date of SEC rules relating to the pre-approval of non-audit services, were pre-approved by the audit committee.

 

(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.

 

Response: All services performed on the engagement to audit the registrant’s financial statements for the most recent fiscal year end were performed by 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.

 

Response: The aggregate non-audit fees billed by E&Y to the registrant, 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, totaled $181,918 in the fiscal year ended September 30, 2004 and $261,682 in the fiscal year ended September 30, 2003, including services provided prior to May 6, 2003, the effective date of SEC rules relating to the pre-approval of non-audit services.

 

(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 Subadvisor 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.

 

Response: The registrant’s audit committee has determined that the provision of non-audit services to the registrant’s 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 and that were rendered on or after May 6, 2003 (the effective date of SEC rules relating to the pre-approval of non-audit services), is compatible with maintaining E&Y’s independence.

 

Item 5—Audit Committee of Listed Registrants

 

(a)   If the registrant is a listed issuer as defined in Rule 10A-3 under the Exchange Act (17 CFR 240.10A-3), state whether or not the registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).  If the registrant has such a committee, however designated, identify each committee member.  If the entire board of directors is acting as the registrant’s audit committee as specified in Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)), so state.

 

(b)   If applicable, provide the disclosure required by Rule 10A-3(d) under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption from the listing standards for audit committees.

 

Response: Not applicable.  Registrant is not a listed issuer.

 

Item 6—Schedule of Investments (applicable for periods ending on or after July 9, 2004) – File Schedule I – Investments in securities of unaffiliated issuers as of the close of the reporting period as set forth in Section 210.12-12 of Regulation S-X [17 CFR 210.12-12], unless the schedule is included as part of the report to shareholders filed under Item 1 of this Form.

 

Response: The schedule is included as part of the report to shareholders filed under Item 1 of this Form.

 

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—Portfolio Managers of Closed-End Management Investment Companies.

 

(a)   If the registrant is a closed-end management investment company that is filing an annual report on this Form N-CSR, provide the following information:

 

(1)   State the name, title, and length of service of the person or persons employed by or associated with the registrant or an investment advisor of the registrant who are primarily responsible for the day-to-day management of the registrant’s portfolio (“Portfolio Manager”).  Also state each Portfolio Manager’s business experience during the past 5 years.

 

(2)   If a Portfolio Manager required to be identified in response to paragraph (a) (1) of this Item is primarily responsible for the day-to-day management of the portfolio of any other account, provided the following information:

 

(i)    The Portfolio Manager’s name;

 

(ii) The number of other accounts managed within each of the following categories and the total assets in the account managed within each category:

 

(A)   Registered investment companies;

(B)   Other pooled investment vehicles; and

(C)   Other accounts.

 

(iii) For each of the categories in paragraph (a) (2) (ii) of this Item, the number of accounts and the total assets in the accounts with respect to which the advisory fee is based on the performance of the account; and

 

(iv) A description of any material conflicts of interest that may arise in connection with the Portfolio Manager’s management of the registrant’s investments, on the one hand, and the investments of the other accounts included in response to paragraph (a) (2) (ii) of this Item, on the other.  This description would include, for example, material conflicts between the investment strategy of the registrant and the investment strategy of other accounts managed by the Portfolio Manager and material conflicts in allocation of investment opportunities between the registrant and other accounts managed by the Portfolio Manager.

 

(3)   Described the structure of, and the method used to determine, the compensation of each Portfolio Manager required to be identified in response to paragraph (a) (1) of this Item.  For each type of compensation (e.g., salary, bonus, deferred compensation, retirement plans and arrangements), describe with specificity the criteria on which the type of compensation is based, for example, whether compensation is fixed, whether (and, if so, how) compensation is based on the registrant’s pre- or aftertax performance over a certain time period, and whether (and, if so, how) compensation is based on the value of assets held in the registrant’s portfolio.  For example, if compensaton is based solely or in part on performance, identify any benchmark used

 


 

to measure performance and state the length of the period over which performance is measured.

 

(4)   For each Portfolio Manager required to be identified in response to paragraph (a) (1) of this Item, state the dollar range of equity securities in the registrant beneficially owned by the Portfolio Manager using the following ranges: none, $1-$10,000, $10,001-$50,000, $50,001-$100,000, $100,001-$500,000, $500,001-$1,000,000, or over $1,000,000.

 

(b) If the registrant is a closed-end management investment company that is filing a report on this Form N-CSR other than an annual report, disclose any change, as of the date of filing, in any of the Portfolio Managers identified in response to paragraph (a) (1) of this Item in the registrant’s most recent annual report on Form N-CSR.  In addition, for any newly identified Portfolio Manager, provided the information required by paragraph (a) (1) of this Item as the date of filing of the report and the information required by paragraphs (a) (2), (a) (3), and (a) (4) of this Item as of the most recent practicable date.

 

Response:  Not applicable

 

Item 9—Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers

 

(a)   If the registrant is a closed-end management investment company, in the following tabular format, provide the information specified in paragraph (b) of this Item with respect to any purchase made by or on behalf of the registrant or any “affiliated purchaser,” as defined in Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of shares or other units of any class of the registrant’s equity securities that is registered pursuant to Section 12 of the Exchange Act (15 U.S.C. 781).

 


 

Registrant Purchases of Equity Securities

 

Period (identify
beginning and
ending dates for
each Month)

 

(a) Total Number
of Shares (or
Units) Purchased

 

(b) Average Price
Paid per Share
(or Unit)

 

(c) Total Number
of Shares (or Units)
Purchased as Part of
Publicly Announced
Plans or Programs

 

(d) Maximum Number
(or Approximate
Dollar Value) of
Shares (or Units) that
May Yet Be Purchased
Under the Plans or
Programs

 

Month #1

 

 

 

 

 

 

 

 

 

Month #2

 

 

 

 

 

 

 

 

 

Month #3

 

 

 

 

 

 

 

 

 

Month #4

 

 

 

 

 

 

 

 

 

Month #5

 

 

 

 

 

 

 

 

 

Month #6

 

 

 

 

 

 

 

 

 

Month #7

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

(b)   The table shall include the following information for each class of securities for each month included in the period covered by the report:

(1)   The total number of shares (or units) purchased (column (a));

(2)   The average price paid per share (or unit) (column (b));

(3)   The number of shares (or units) purchased as part of publicly announced repurchase plans or programs (column (c)); and

(4)   The maximum number (or approximate dollar value) of shares (or units) that may yet be purchased under the plans or programs (column (d)).

 

Response: Not applicable

 

Item 10—Submission of Matters to a Vote of Security Holders – Describe any material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of directors, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14A (17 CFR 240.14a-101), or this Item.

 

Response: There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of directors, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14A (17 CFR 240.14a-101), or this item.

 


 

Item 11—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.

 

(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 12 — Exhibits

 

11(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: This code of ethics is offered to shareholders upon request without charge.

 

11(b) - Attach certifications (4 in total pursuant to Sections 302 and 906 for PEO/PFO).

 

Response: Attached hereto.

 


Signatures

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

First American Investment Funds, Inc.

 

By:

 

/s/ Thomas S. Schreier, Jr.

 

 

Thomas S. Schreier, Jr.

 

President

 

Date: December 9, 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:  December 9, 2004

 

By:

 

/s/ Charles D. Gariboldi

 

 

 

 

Charles D. Gariboldi

 

Treasurer

 

Date:  December 9, 2004