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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__________811-6340___________________________
_____________________Great Hall Investment Funds, Inc._________________________
(Exact name of registrant as specified in charter)
_____60 S. 6th St. Minneapolis, MN______________________________55402__________
(Address of principal executive offices) (Zip code)
Jennifer Lammers_________Voyageur Asset Management_____________________________
(Name and address of agent for service)
Registrant's telephone number, including area code:____612-376-7000____________
Date of fiscal year end:___________7/31/03_______________
Date of reporting period:_________7/31/03_____________
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. REPORTS TO STOCKHOLDERS.
Include a copy of the report transmitted to stockholders pursuant to
Rule 30e-1 under the Act (17 CFR 270.30e-1).
GREAT HALL(R)
INVESTMENT FUNDS, INC.
ANNUAL REPORT
JULY 31, 2003
(GREAT HALL LOGO)
Prime Money Market Fund
U.S. Government Money Market Fund
Tax-Free Money Market Fund
Institutional Prime Money Market Fund
Institutional Tax-Free Money Market Fund
Contents
<Table>
Statements of Assets and Liabilities 2
Statements of Operations 3
Statements of Changes in Net Assets 4
Notes to Financial Statements 6
Financial Highlights 8
Schedules of Investments in Securities:
Prime Money Market Fund 11
U.S. Government Money Market Fund 16
Tax-Free Money Market Fund 17
Institutional Prime Money Market Fund 28
Institutional Tax-Free Money Market
Fund 30
Notes to Investments in Securities 37
Independent Auditors' Report 38
Directors and Officers 39
Federal Tax Information 42
</Table>
GREAT HALL INVESTMENT FUNDS
- --------------------------------------------------------------------------------
[RAYE KANZENBACH PHOTO]
Raye Kanzenbach
Chief Investment Officer
To Our Shareholders:
We are pleased to present the July 31, 2003 Annual Report
for the Great Hall Prime, U.S. Government, Tax-Free,
Institutional Prime, and Institutional Tax-Free Money
Market Funds. This report contains the Statement of Assets
and Liabilities for each Fund and a detailed schedule of
each Fund's investment portfolio as of July 31, 2003. Also
included are Statements of Operations which show each
Fund's earnings and expenses, and Statements of Changes in
Net Assets for the fiscal year.
Short-term interest rates declined approximately 0.75%
during the fiscal year ending July 31. At the start of the
fiscal year in the summer of 2002 the Federal Reserve had
already lowered short-term interest rates to their lowest
level in 40 years in an attempt to boost the economy out of
recession. By November the Federal Reserve realized that
the economy was still weak and the unemployment rate was
not improving. It therefore lowered the fed funds rate (the
rate at which banks lend each other money overnight) by 0.50% to 1.25%. In late
June the Federal Reserve again reduced the fed funds rate to 1.00% in order to
promote economic growth and ward off the possibility of deflation.
Yields on money market instruments closely follow the fed funds rate. Therefore,
these yields declined by about 0.75% over the past year. This of course reduced
the yields of the Great Hall Money Market Funds, which invest in these
securities.
Each of the Funds is managed in accordance with the stringent standards required
by the SEC for money market funds. We manage these Funds to meet the primary
objectives of prudent investment management, safety of principal, and liquidity.
We employ careful credit analysis on all investments and manage the Funds
conservatively in all respects.
Thank you for your confidence in the Great Hall Funds.
Sincerely,
/s/ RAYE KANZENBACH
Raye Kanzenbach
Chief Investment Officer
Great Hall Investment Funds
GREAT HALL FUNDS FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
JULY 31, 2003
<Table>
<Caption>
PRIME U.S. GOVERNMENT TAX-FREE INST'L PRIME INST'L TAX-FREE
MONEY MONEY MONEY MONEY MONEY
MARKET FUND MARKET FUND MARKET FUND MARKET FUND MARKET FUND
- --------------------------------------------------------------------------------------------------------------------
ASSETS:
Investments, at market value (note
2), (amortized cost
$8,240,345,151; $1,069,843,787;
$986,521,867; $516,448,455 and
$252,320,179, respectively) $8,240,345,151 $1,069,843,787 $986,521,867 $516,448,455 $252,320,179
Cash in bank on demand deposit 26,101 42,398 405,424 14,390 23,205
Accrued interest receivable 15,113,598 1,137,038 2,092,432 1,382,424 637,385
-------------- -------------- ------------ ------------ ------------
Total assets 8,255,484,850 1,071,023,223 989,019,723 517,845,269 252,980,769
-------------- -------------- ------------ ------------ ------------
LIABILITIES:
Payable for investment securities
purchased 30,000,000 10,000,000 42,312,094 15,018,017 8,775,785
Accrued investment advisory fee 2,978,300 344,634 435,444 98,002 53,807
Other accrued expenses 3,296,755 614,337 166,704 140,895 136,926
-------------- -------------- ------------ ------------ ------------
Total liabilities 36,275,055 10,958,971 42,914,242 15,256,914 8,966,518
-------------- -------------- ------------ ------------ ------------
Net assets applicable to
outstanding capital stock $8,219,209,795 $1,060,064,252 $946,105,481 $502,588,355 $244,014,251
============== ============== ============ ============ ============
NET ASSETS REPRESENTED BY:
Capital stock -- authorized 100
billion shares of $.01 par value
for each Fund, outstanding
8,219,209,795; 1,060,064,252 and
946,105,481 shares, respectively $ 82,192,098 $ 10,600,643 $ 9,461,055 $ -- $ --
Capital stock -- authorized 10
billion shares of $.01 par value
for each Fund, outstanding
502,588,355 and 244,014,251
shares, respectively -- -- -- 5,025,884 2,440,143
Additional paid-in capital 8,137,017,697 1,049,463,609 936,644,426 497,562,471 241,574,108
-------------- -------------- ------------ ------------ ------------
Total -- representing net assets
applicable to outstanding
capital stock $8,219,209,795 $1,060,064,252 $946,105,481 $502,588,355 $244,014,251
============== ============== ============ ============ ============
Net asset value per share of
outstanding capital stock $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
============== ============== ============ ============ ============
INVESTOR SHARE CLASS:
Net Assets $8,111,307,675
Shares outstanding 8,111,307,675
Net asset value per share of
outstanding capital stock $ 1.00
==============
RESERVE SHARE CLASS:
Net Assets $ 107,902,120
Shares outstanding 107,902,120
Net asset value per share of
outstanding capital stock $ 1.00
==============
</Table>
See accompanying notes to financial statements.
2
GREAT HALL FUNDS FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
YEAR ENDED JULY 31, 2003
<Table>
<Caption>
PRIME U.S. GOVERNMENT TAX-FREE INST'L PRIME INST'L TAX-FREE
MONEY MONEY MONEY MONEY MONEY
MARKET FUND MARKET FUND MARKET FUND MARKET FUND MARKET FUND
- --------------------------------------------------------------------------------------------------------------------
INCOME:
Interest $126,617,822 $15,491,864 $11,968,015 $7,288,170 $2,934,541
------------ ----------- ----------- ---------- ----------
EXPENSES (NOTE 4):
Investment advisory fee 35,412,626 4,082,284 4,859,088 1,218,661 596,521
Distribution fee (12b-1) Reserve
Share Class 189,367 6,839
Administrative services fee 2,429,571
Investor Share Class 20,724,772 2,730,508
Reserve Share Class 189,367 6,839
Custodian fees 147,000 30,400 29,500 14,500 9,500
Accounting and transfer agent fees 92,500 32,100 32,800
Investor Share Class 140,500 39,500
Reserve Share Class 14,100 6,500
Sub-accounting fees 454,536 15,191 5,487
Investor Share Class 14,295,234 794,144
Reserve Share Class 224,376 945
Reports to shareholders 3,570,811 255,453 128,715 5,500 1,200
Directors' fees 24,000 24,000 24,000 24,000 24,000
Audit and legal fees 201,000 40,400 36,500 14,000 15,000
Registration fees 147,488 102,959 84,437
Investor Share Class 674,391 137,919
Reserve Share Class 63,006 8,109
Administrative 73,000 10,350 7,200 3,300 1,200
Other expenses 151,050 57,500 53,815 10,197 7,400
------------ ----------- ----------- ---------- ----------
Total expenses 76,094,600 8,231,690 8,262,913 1,440,408 777,545
Less expenses waived or reimbursed by
Adviser (16,478,754) (449,690) (2,274,902) -- --
------------ ----------- ----------- ---------- ----------
Net expenses 59,615,846 7,782,000 5,988,011 1,440,408 777,545
------------ ----------- ----------- ---------- ----------
Net investment income 67,001,976 7,709,864 5,980,004 5,847,762 2,156,996
------------ ----------- ----------- ---------- ----------
Net increase in net assets resulting
from operations $ 67,001,976 $ 7,709,864 $ 5,980,004 $5,847,762 $2,156,996
============ =========== =========== ========== ==========
</Table>
See accompanying notes to financial statements.
3
GREAT HALL FUNDS FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
PRIME U.S. GOVERNMENT
MONEY MARKET FUND MONEY MARKET FUND
- -------------------------------------------------------------------------------------------------------------------
YEAR ENDED JULY 31, YEAR ENDED JULY 31,
---------------------------------- --------------------------------
2003 2002 2003 2002
- -------------------------------------------------------------------------------------------------------------------
INCREASE/(DECREASE) IN NET ASSETS:
Operations
Net investment income $ 67,001,976 $ 110,475,718 $ 7,709,864 $ 11,858,663
Net increase in unrealized depreciation
on investments -- 4,455,891 -- --
--------------- --------------- -------------- --------------
Net increase in net assets resulting
from operations 67,001,976 114,931,609 7,709,864 11,858,663
--------------- --------------- -------------- --------------
Distributions to shareholders from
investment income -- net
Investor Share Class (66,650,947) (110,425,474) (7,689,597) (11,844,096)
Reserve Share Class (351,029) (50,244) (20,267) (14,567)
--------------- --------------- -------------- --------------
Total distributions to shareholders (67,001,976) (110,475,718) (7,709,864) (11,858,663)
--------------- --------------- -------------- --------------
Capital share transactions at net asset
value of $1.00 per share
Proceeds from sales
Investor Share Class 3,847,736,761 5,829,067,475 802,967,921 1,075,991,558
Reserve Share Class 122,836,800 50,788,756 4,948,069 13,530,231
Shares issued for reinvestment of
distributions:
Investor Share Class 66,650,947 110,425,474 7,689,597 11,844,096
Reserve Share Class 351,029 50,244 20,267 14,567
Payment for shares redeemed
Investor Share Class (4,327,979,149) (2,700,569,571) (838,501,022) (462,395,244)
Reserve Share Class (62,194,582) (3,930,124) (17,728,483) (784,651)
--------------- --------------- -------------- --------------
Increase/(decrease) in net assets from
capital share transactions (352,598,194) 3,285,832,254 (40,603,651) 638,200,557
--------------- --------------- -------------- --------------
Total increase/(decrease) in net assets (352,598,194) 3,290,288,145 (40,603,651) 638,200,557
--------------- --------------- -------------- --------------
Net assets at beginning of period 8,571,807,989 5,281,519,844 1,100,667,903 462,467,346
--------------- --------------- -------------- --------------
Net assets at end of period $ 8,219,209,795 $ 8,571,807,989 $1,060,064,252 $1,100,667,903
=============== =============== ============== ==============
</Table>
See accompanying notes to financial statements.
4
GREAT HALL FUNDS FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<Table>
<Caption>
TAX-FREE INSTITUTIONAL PRIME INSTITUTIONAL TAX-FREE
MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET FUND
- ----------------------------------------------------------------------------------------------------------------------------
YEAR ENDED JULY 31, YEAR ENDED JULY 31, YEAR ENDED JULY 31,
-------------------------------- ----------------------------- -----------------------------
2003 2002 2003 2002 2003 2002
- ----------------------------------------------------------------------------------------------------------------------------
INCREASE/(DECREASE) IN NET
ASSETS:
Operations
Net investment income $ 5,980,004 $ 7,372,450 $ 5,847,762 $ 9,201,115 $ 2,156,996 $ 2,002,995
--------------- -------------- ------------- ------------- ------------- -------------
Net increase in net
assets resulting from
operations 5,980,004 7,372,450 5,847,762 9,201,115 2,156,996 2,002,995
--------------- -------------- ------------- ------------- ------------- -------------
Distributions to
shareholders from
investment income -- net (5,980,004) (7,372,450) (5,847,762) (9,201,115) (2,156,996) (2,002,995)
--------------- -------------- ------------- ------------- ------------- -------------
Total distributions to
shareholders (5,980,004) (7,372,450) (5,847,762) (9,201,115) (2,156,996) (2,002,995)
--------------- -------------- ------------- ------------- ------------- -------------
Capital share transactions
at net asset value of
$1.00 per share
Proceeds from sales 1,067,794,724 1,129,913,400 739,486,873 665,023,570 398,822,967 272,687,854
Shares issued for
reinvestment of
distributions 5,980,004 7,372,450 5,847,762 9,201,115 2,156,996 2,002,995
Payment for shares
redeemed (1,036,742,832) (718,145,115) (691,946,616) (590,617,323) (350,141,125) (253,370,482)
--------------- -------------- ------------- ------------- ------------- -------------
Increase in net assets
from capital share
transactions 37,031,896 419,140,735 53,388,019 83,607,362 50,838,838 21,320,367
--------------- -------------- ------------- ------------- ------------- -------------
Total increase in net
assets 37,031,896 419,140,735 53,388,019 83,607,362 50,838,838 21,320,367
--------------- -------------- ------------- ------------- ------------- -------------
Net assets at beginning of
period 909,073,585 489,932,850 449,200,336 365,592,974 193,175,413 171,855,046
--------------- -------------- ------------- ------------- ------------- -------------
Net assets at end of
period $ 946,105,481 $ 909,073,585 $ 502,588,355 $ 449,200,336 $ 244,014,251 $ 193,175,413
=============== ============== ============= ============= ============= =============
</Table>
See accompanying notes to financial statements.
5
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. ORGANIZATION
Great Hall Investment Funds, Inc. (the Company) was incorporated on June 24,
1991 and is registered under the Investment Company Act of 1940 (as amended)
as an open-end management investment company and presently includes five
funds: Prime, U.S. Government, Tax-Free, Institutional Prime, and
Institutional Tax-Free Money Market Funds (the Funds). The initially offered
class for the Prime, U.S. Government, and Tax-Free Money Market Funds is
referred to as the Investor Share Class. Effective July 30, 2001, these Funds
were authorized to offer an additional class of shares, referred to as the
Reserve Share Class. As of July 31, 2003, the Prime Money Market Fund is the
only fund that offers both share classes. Effective October 31, 2002, the
U.S. Government Money Market Fund discontinued offering the Reserve Shares
and converted any existing Reserve Shares to Investor Shares. The two classes
of shares differ principally in their respective service and distribution
expenses and arrangements. Both classes have identical rights to earnings,
assets and voting privileges, except for class specific expenses and
exclusive rights to vote on matters affecting only individual classes. The
Company's articles of incorporation permit the board of directors to create
additional funds in the future.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies followed by the Funds are as follows:
INVESTMENTS IN SECURITIES
Pursuant to Rule 2a-7 of the Investment Company Act of 1940 (as amended),
securities are valued at amortized cost, which approximates market value, in
order to maintain a constant net asset value of $1.00 per share.
Security transactions are accounted for on the date the securities are
purchased or sold. Interest income, including amortization of discount and
premium, is accrued daily.
USE OF ESTIMATES
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosure of contingent assets and liabilities
at the date of the financial statements and the reported amounts of revenues
and expenses during the reporting period. Actual results could differ from
those estimates.
FEDERAL TAXES
The Funds' policy is to comply with the requirements of the Internal Revenue
Code applicable to regulated investment companies and to distribute all of
its taxable income to shareholders. Therefore, no income tax provision is
required. Each Fund is treated as a separate entity for federal income tax
purposes. In addition, on a calendar-year basis, each Fund intends to
distribute substantially all of its net investment income and realized gains,
if any, to avoid payment of any federal excise taxes.
INCOME AND EXPENSE RECOGNITION
Interest income is accrued daily and is determined on the basis of interest
or discount earned on short-term investments. Estimated expenses are accrued
daily.
Realized and unrealized gains and losses and net investment income, other
than class specific expenses, are allocated daily to each class of shares
based upon the relative portion of net assets of each class. Operating
expenses directly attributable to a specific class are charged against the
operations of that class.
DISTRIBUTIONS TO SHAREHOLDERS
Distributions to shareholders from net investment income are declared daily
and paid monthly through reinvestment in additional shares of the Funds at
net asset value.
REPURCHASE AGREEMENTS
The Funds may enter into repurchase agreements with member banks of the
Federal Reserve or registered broker dealers who are deemed creditworthy
under guidelines approved by the Funds' Board of Directors, subject to the
seller's agreement to repurchase such securities at a mutually agreed upon
date and price. The repurchase price generally equals the price paid by the
Funds plus interest negotiated on the basis of current short-term rates.
Securities pledged as collateral for repurchase agreements are held by the
Funds' custodian bank until maturity of the repurchase agreement. The Funds
have procedures in place for all agreements to ensure that the daily market
value of the collateral is in excess of the repurchase agreement in the event
of default.
3. INVESTMENT SECURITY TRANSACTIONS
Cost of purchases and proceeds from sales of securities from August 1, 2002
to July 31, 2003 were as follows:
<Table>
<Caption>
PURCHASES SALES PROCEEDS
--------------------------------------------------------------
Prime Fund $40,185,692,941 $40,501,800,734
U.S. Government Fund 6,793,366,412 6,823,474,626
Tax-Free Fund 2,151,894,549 2,071,763,880
Institutional Prime Fund 3,646,623,891 3,578,132,712
Institutional Tax-Free Fund 672,713,253 613,015,572
</Table>
6
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
4. FEES AND EXPENSES
The Company has entered into an investment advisory agreement with Voyageur
Asset Management Inc. (VAM), a wholly-owned subsidiary of RBC Dain Rauscher
Corp., under which VAM manages each Fund's assets and furnishes related
office facilities, equipment, research and personnel. The agreement requires
each Fund to pay VAM a monthly fee based upon average daily net assets. The
fee for the Prime Money Market Fund is equal to an annual rate of 0.55% of
the first $700 million in net assets and then decreasing in reduced
percentages to 0.40% of net assets in excess of $2 billion. The fee for the
U.S. Government Money Market Fund is equal to an annual rate of 0.50% of the
first $100 million in net assets and then decreasing in reduced percentages
to 0.35% of net assets in excess of $300 million. The fee for the Tax-Free
Money Market Fund is equal to an annual rate of 0.50% of net assets. The fees
for both the Institutional Prime and Institutional Tax-Free Money Market
Funds are equal to an annual rate of 0.25% of net assets.
Each of the five Funds has entered into sub-accounting agreements with
affiliate RBC Dain Rauscher Inc. (DRI) where DRI performs various transfer
and dividend disbursing agent services. The fee, which is paid monthly to DRI
for providing such service, is equal to an annual rate of $24 per shareholder
account plus certain out-of-pocket expenses. Each class of shares in the
Prime, U.S. Government, and Tax-Free Money Market Funds also pays an
administrative services fee of 0.25% of net assets per annum for
administrative services provided by VAM. Effective August 1, 2003, the
Company entered into an agreement with a third party to provide accounting
and sub-administrative services.
Each of the Prime, U.S. Government, and Tax-Free Money Market Funds has
adopted a Plan of Distribution under Rule 12b-1 of the 1940 Act with respect
to its Reserve Share Class. Under the Plan of Distribution, each Reserve
Share Class pays DRI an annual fee of 0.25% of average daily net assets of
any outstanding shares which is accrued daily and paid monthly.
VAM has entered into an expense limitation agreement with the Prime, U.S.
Government, and Tax-Free Money Market Funds under which it will waive and/or
reimburse certain expenses associated with operating the respective Fund
through November 30, 2003 in order to limit the Fund's total operating
expenses for the Prime Money Market Fund -- Investor Share Class, Prime Money
Market Fund -- Reserve Share Class, U.S. Government Money Market Fund, and
Tax-Free Money Market Fund -- to an annual rate of 0.71%, 1.00%, 0.71% and
0.62%, respectively, of the average daily net assets of the relevant class.
Through October 31, 2002, the U.S. Government -- Reserve Share Class had
total operating expenses of 1.00% of the average daily net assets. Pursuant
to this arrangement, VAM's contractual obligation to waive and/or reimburse
expenses is limited to 0.25% per annum of the respective Fund's average daily
net assets. VAM may voluntarily waive and/or reimburse additional Fund
operating expenses from time to time. Any such voluntary program may be
changed or eliminated at any time without notice. Expenses waived in the
current year include administrative services and distribution fees.
In addition to the investment advisory fee and the shareholder account
servicing fee, and the administrative services and Rule 12b-1 fees applicable
to certain Funds, each Fund is responsible for paying other operating
expenses including outside directors' fees and expenses, custodian fees,
registration fees, printing and shareholder reports, transfer agent fees and
expenses, legal, auditing and accounting services, organizational costs,
insurance, interest and other miscellaneous expenses.
Legal fees and expenses of $153,130 for the period ended July 31, 2003 were
paid to a law firm of which the former Secretary of the Funds is a partner.
The partner of the law firm was Secretary of the Funds until May 2003.
7
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Per share data for a share of capital stock outstanding throughout each period
and selected information for the period are as follows:
<Table>
<Caption>
PRIME MONEY MARKET FUND
- ---------------------------------------------------------------------------------------------------------------------------------
PERIOD FROM
YEAR ENDED MARCH 1,
JULY 31, 2002(B)
YEAR ENDED JULY 31, 2003 2002(A) TO JULY 31, 2002
------------------------------ -------------- ---------------- YEAR ENDED JULY 31,
INVESTOR SHARE RESERVE SHARE INVESTOR SHARE RESERVE SHARE ---------------------------
CLASS CLASS CLASS CLASS 2001 2000 1999
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of
period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------ ------ ------ ------ ------ ------- ------
Net investment income 0.01 0.01 0.02 0.01 0.05 0.05 0.05
Distributions from net
investment income (0.01) (0.01) (0.02) (0.01) (0.05) (0.05) (0.05)
------ ------ ------ ------ ------ ------- ------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ====== ====== ======= ======
Total return 0.8% 0.5% 1.7% 0.4% 5.1% 5.3% 4.6%
Net assets, end of period
(millions) $8,111 $ 108 $8,524 $ 48 $5,282 $ 4,852 $4,523
Ratio of net expenses to
average net assets(c) 0.71% 1.00% 0.69% 1.00%(d) 0.62% 0.63% 0.61%
Ratio of net investment income
to average net assets(c) 0.80% 0.46% 1.66% 0.94%(d) 5.11% 5.32% 4.62%
</Table>
(a) Prior to March 1, 2002, the only publicly offered class was the Investor
Share Class.
(b) Commencement of operations.
(c) Various fees and expenses were waived or absorbed in both share classes by
VAM for the Prime Money Market Fund during the respective periods ended July
31, 2002 and July 31, 2003. Had the Fund paid all expenses, the respective
ratios of net expenses and net investment income to average net assets would
have been 0.90%/0.61% for the Investor Share Class and 1.50%/(0.04)% for the
Reserve Share Class for the period ended July 31, 2003, and 0.73%/1.61% for
the Investor Share Class and 1.84%/0.10% for the Reserve Share Class for the
period ended July 31, 2002.
(d) Figures were adjusted to an annualized basis.
8
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
U.S. GOVERNMENT MONEY MARKET FUND
- ------------------------------------------------------------------------------------
THREE-MONTH
YEAR ENDED PERIOD ENDED YEAR ENDED
JULY 31, 2003 OCTOBER 31, 2002(A) JULY 31, 2002(A)
-------------- ------------------- ----------------
INVESTOR SHARE RESERVE SHARE INVESTOR SHARE
CLASS CLASS CLASS
- ------------------------------------------------------------------------------------
Net asset value, beginning
of period $ 1.00 $ 1.00 $ 1.00
------ ------ ------
Net investment income 0.01 0.00(e) 0.02
Distributions from net
investment income (0.01) (0.00)(e) (0.02)
------ ------ ------
Net asset value, end of
period $ 1.00 $ 1.00 $ 1.00
====== ====== ======
Total return 0.7% 0.2% 1.6%
Net assets, end of period
(millions) $1,060 $ -- $1,088
Ratio of net expenses to
average net assets(c) 0.71% 1.00%(d) 0.57%
Ratio of net investment
income to average net
assets(c) 0.70% 0.74%(d) 1.60%
<Caption>
U.S. GOVERNMENT MONEY MARKET FUND
- -------------------------- ----------------------------------------------
PERIOD FROM
MARCH 1, 2002(B)
TO JULY 31, 2002
---------------- YEAR ENDED JULY 31,
RESERVE SHARE --------------------------
CLASS 2001 2000 1999
- -------------------------- ----------------------------------------------
Net asset value, beginning
of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
------ ------ ------ ------
Net investment income 0.01 0.05 0.05 0.05
Distributions from net
investment income (0.01) (0.05) (0.05) (0.05)
------ ------ ------ ------
Net asset value, end of
period $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ======
Total return 0.3% 4.9% 5.2% 4.5%
Net assets, end of period
(millions) $ 13 $ 462 $ 267 $ 271
Ratio of net expenses to
average net assets(c) 1.00%(d) 0.54% 0.57% 0.59%
Ratio of net investment
income to average net
assets(c) 0.83%(d) 4.88% 5.22% 4.50%
</Table>
(a) Prior to March 1, 2002, the only publicly offered class was the Investor
Share Class. Effective October 31, 2002, the Fund discontinued offering the
Reserve Shares and converted any existing Reserve Shares to Investor Shares.
(b) Commencement of operations.
(c) Various fees and expenses were waived or absorbed in both share classes by
VAM for the U.S. Government Money Market Fund during the respective periods
ended July 31, 2002, October 31, 2002 and July 31, 2003. Had the Fund paid
all expenses, the respective ratios of net expenses and net investment
income to average net assets would have been 0.75%/0.66% for the Investor
Share Class for the period ended July 31, 2003 and 1.50%/0.24% for the
Reserve Share Class for the period ended October 31, 2002, and 0.59%/1.58%
for the Investor Share Class and 2.79%/(0.97)% for the Reserve Share Class
for the period ended July 31, 2002.
(d) Figures were adjusted to an annualized basis.
(e) Per share amount as calculated rounds to less than $0.01.
<Table>
<Caption>
TAX-FREE MONEY MARKET FUND
- -----------------------------------------------------------------------------------------------
YEAR ENDED JULY 31,
------------------------------------------
2003 2002 2001 2000 1999
- -----------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------ ------ ------ ------ ------
Net investment income 0.01 0.01 0.03 0.03 0.03
Distributions from net investment income (0.01) (0.01) (0.03) (0.03) (0.03)
------ ------ ------ ------ ------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ====== ======
Total return 0.6% 1.1% 3.1% 3.2% 2.7%
Net assets, end of period (millions) $ 946 $ 909 $ 490 $ 426 $ 497
Ratio of net expenses to average net assets(a) 0.62% 0.59% 0.59% 0.59% 0.59%
Ratio of net investment income to average net
assets(a) 0.62% 1.08% 3.07% 3.16% 2.65%
</Table>
(a) Various fees and expenses were waived or absorbed by VAM for the Tax-Free
Money Market Fund during the respective periods ended July 31, 2002 and July
31, 2003. Had the Fund paid all expenses, the respective ratios of net
expenses and net investment income to average net assets would have been
0.85%/0.39% for the period ended July 31, 2003 and 0.65%/1.03% for the
period ended July 31, 2002.
9
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
INSTITUTIONAL PRIME MONEY MARKET FUND
- -----------------------------------------------------------------------------------------------
YEAR ENDED JULY 31,
------------------------------------------
2003 2002 2001 2000 1999
- -----------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------ ------ ------ ------ ------
Net investment income 0.01 0.02 0.06 0.06 0.05
Distributions from net investment income (0.01) (0.02) (0.06) (0.06) (0.05)
------ ------ ------ ------ ------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ====== ======
Total return 1.2% 2.2% 5.5% 5.7% 4.9%
Net assets, end of period (millions) $ 503 $ 449 $ 366 $ 382 $ 310
Ratio of net expenses to average net assets 0.30% 0.30% 0.31% 0.32% 0.34%
Ratio of net investment income to average net
assets 1.20% 2.17% 5.52% 5.68% 4.85%
</Table>
<Table>
<Caption>
INSTITUTIONAL TAX-FREE MONEY MARKET FUND
- -----------------------------------------------------------------------------------------------------------------
YEAR ENDED JULY 31, PERIOD FROM
--------------------------------- SEPTEMBER 23, 1998(A)
2003 2002 2001 2000 TO JULY 31, 1999
- -----------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------ ------ ------ ------ ------
Net investment income 0.01 0.01 0.03 0.03 0.03
Distributions from net investment income (0.01) (0.01) (0.03) (0.03) (0.03)
------ ------ ------ ------ ------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ====== ======
Total return 0.9% 1.4% 3.3% 3.4% 2.5%
Net assets, end of period (millions) $ 244 $ 193 $ 172 $ 159 $ 53
Ratio of net expenses to average net assets 0.33% 0.36% 0.39% 0.39%(b) 0.30%(b),(c)
Ratio of net investment income to average net
assets 0.90% 1.42% 3.32% 3.49%(b) 2.79%(b),(c)
</Table>
(a) Commencement of operations.
(b) Various fees and expenses were waived or absorbed by VAM for the
Institutional Tax-Free Money Market Fund during the period ended July 31,
1999 and year ended July 31, 2000. Had the Fund paid all expenses, the
respective ratios of net expenses and net investment income to average net
assets would have been 0.44%/3.44% for the year ended July 31, 2000, and
0.55%/2.54% for the period ended July 31, 1999.
(c) Adjusted to an annualized basis.
10
PRIME MONEY MARKET FUND
INVESTMENTS IN SECURITIES
JULY 31, 2003
- --------------------------------------------------------------------------------
<Table>
<Caption>
MATURITY PRINCIPAL
NAME OF ISSUER(F) YIELD DATE AMOUNT VALUE(A)
- --------------------------------------------------------------------------
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS.)
COMMERCIAL PAPER & OTHER CORPORATE OBLIGATIONS (99.58%):
- --------------------------------------------------------------------------
AGRICULTURAL (3.43%)
Archer Daniels
Midland Company 1.20% 8/12/2003 $ 50,000,000(c) $ 49,981,667
Archer Daniels
Midland Company 1.21% 8/19/2003 47,800,000(c) 47,771,081
Archer Daniels
Midland Company 1.02% 10/21/2003 50,000,000(c) 49,885,250
Cargill Inc. 1.16% 8/28/2003 40,000,000(c) 39,965,200
Cargill Inc. 1.04% 9/8/2003 30,000,000(c) 29,967,067
Cargill Inc. 0.92% 9/15/2003 64,800,000(c) 64,725,480
--------------
282,295,745
--------------
BANKS -- DOMESTIC (17.61%)
Bank of America 1.23% 8/1/2003 40,000,000 40,000,000
Bank of America 1.20% 8/15/2003 60,000,000 60,000,000
Bank of New York 1.72% 8/7/2003 50,000,000 49,999,918
Bank One N.A. 1.17% 9/17/2003 46,000,000(d) 46,007,666
Bank One N.A. 1.02% 10/10/2003 55,000,000 55,000,000
Bank One N.A. 1.02% 10/14/2003 30,000,000 30,000,000
Chase Manhattan Bank
USA 1.06% 6/30/2004 40,000,000(d) 40,000,000
Citibank N.A. 1.21% 9/4/2003 60,000,000 60,000,000
Comerica Bank N.A.,
Detroit 1.10% 2/5/2004 25,000,000(d) 25,000,092
Fifth Third Bank,
Cincinnati 0.90% 9/29/2003 50,000,000 49,990,193
First Tennessee Bank
N.A. 1.22% 8/6/2003 65,000,000 65,000,000
First Tennessee Bank
N.A. 1.09% 10/6/2003 50,000,000(d) 50,000,000
First Tennessee Bank
N.A. 1.02% 10/14/2003 80,000,000 80,000,000
LaSalle Bank, Chicago 1.00% 9/11/2003 45,000,000 45,000,000
LaSalle Bank, Chicago 1.02% 10/9/2003 50,000,000 50,000,000
Marshall & Ilsley 1.75% 12/15/2003 90,000,000 91,172,838
National City Bank,
Cleveland 1.00% 9/29/2003 50,000,000 49,999,183
National City Bank,
Cleveland 1.02% 10/7/2003 60,000,000 60,001,114
</Table>
<Table>
<Caption>
MATURITY PRINCIPAL
NAME OF ISSUER(F) YIELD DATE AMOUNT VALUE(A)
- --------------------------------------------------------------------------
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS.)
COMMERCIAL PAPER & OTHER CORPORATE OBLIGATIONS (CONTINUED)
- --------------------------------------------------------------------------
BANKS -- DOMESTIC (CONTINUED)
National City Bank,
Cleveland 1.03% 10/16/2003 $ 30,000,000 $ 30,000,000
Regions Bank N.A.,
Birmingham 1.09% 9/8/2003 70,000,000 70,000,000
River Fuel Trust,
LOC: Bank of New
York 1.05% 9/22/2003 25,355,000 25,316,545
Southtrust Bank N.A.,
Birmingham 1.02% 9/22/2003 40,000,000 40,000,000
Southtrust Bank N.A.,
Birmingham 1.31% 10/3/2003 25,000,000(d) 25,009,869
Southtrust Bank N.A.,
Birmingham 1.24% 10/28/2003 50,000,000 50,000,000
Southtrust Bank N.A.,
Birmingham 1.14% 11/20/2003 70,000,000 70,000,000
State Street Bank &
Trust Company 1.19% 8/13/2003 80,000,000 80,000,133
Wachovia Bank 1.16% 9/8/2003 20,000,000 19,975,617
Wells Fargo Bank 1.21% 8/4/2003 40,000,000 40,000,033
Wells Fargo Bank 1.03% 8/27/2003 50,000,000 50,000,000
--------------
1,447,473,201
--------------
BANKS -- OTHER (21.58%)
ABN-AMRO 0.91% 9/25/2003 80,000,000 79,888,778
Bank of Nova Scotia 1.02% 10/16/2003 70,000,000 70,000,000
Bank of Scotland 1.03% 8/29/2003 80,000,000 80,000,000
Barclays Bank 1.02% 9/16/2003 70,000,000 69,908,767
Barclays Bank 0.89% 10/16/2003 70,000,000 69,868,478
Bayerische Landesbank 1.22% 8/18/2003 75,000,000 75,000,000
Bayerische Landesbank 1.20% 9/3/2003 40,000,000 40,000,000
BNP Paribas Finance 1.72% 8/5/2003 70,000,000 70,000,076
Canadian Imperial
Bank 1.22% 8/12/2003 35,000,000 35,000,000
Canadian Imperial
Bank 1.03% 10/8/2003 60,000,000 60,000,000
</Table>
See accompanying notes to investments in securities
and accompanying notes to the financial statements.
11
PRIME MONEY MARKET FUND
INVESTMENTS IN SECURITIES
JULY 31, 2003 (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MATURITY PRINCIPAL
NAME OF ISSUER(F) YIELD DATE AMOUNT VALUE(A)
- --------------------------------------------------------------------------
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS.)
COMMERCIAL PAPER & OTHER CORPORATE OBLIGATIONS (CONTINUED)
- --------------------------------------------------------------------------
BANKS -- OTHER(CONTINUED)
Credit Suisse First
Boston 1.09% 10/8/2003 $ 70,000,000(d) $ 70,000,000
Deutsche Bank 1.03% 10/7/2003 70,000,000 70,000,000
Dexia Delaware LLC 1.07% 9/10/2003 60,000,000 59,928,667
Dexia Delaware LLC 1.04% 9/30/2003 50,000,000 50,001,609
Lloyds TSB Bank PLC 1.00% 9/12/2003 70,000,000 70,000,000
Lloyds TSB Bank PLC 1.03% 9/26/2003 80,000,000 80,000,000
Northern Rock PLC 1.02% 9/12/2003 50,000,000(c) 49,940,500
Northern Rock PLC 1.02% 9/18/2003 46,070,000(c) 46,007,345
Royal Bank of
Scotland 0.95% 8/19/2003 80,000,000 79,962,000
Royal Bank of
Scotland 1.02% 10/15/2003 40,000,000 39,915,417
Societe Generale Bank 1.21% 8/5/2003 68,510,000 68,500,789
Societe Generale Bank 1.16% 9/8/2003 50,000,000 49,939,042
Societe Generale Bank 1.02% 10/9/2003 50,000,000 49,902,250
Toronto Dominion Bank 0.98% 9/17/2003 50,000,000 50,003,571
Toronto Dominion Bank 0.93% 9/19/2003 70,000,000 70,000,000
UBS Finance Inc. 0.93% 9/18/2003 70,000,000 70,000,466
UBS Finance Inc. 1.03% 10/14/2003 40,000,000 39,999,576
Westdeutsche
Landesbank 1.23% 8/5/2003 70,000,000 70,000,078
Westdeutsche
Landesbank 1.21% 8/11/2003 40,000,000 40,000,000
--------------
1,773,767,409
--------------
CHEMICALS (0.49%)
E.I. Dupont de
Nemours 0.96% 8/12/2003 40,650,000 40,638,076
--------------
</Table>
<Table>
<Caption>
MATURITY PRINCIPAL
NAME OF ISSUER(F) YIELD DATE AMOUNT VALUE(A)
- --------------------------------------------------------------------------
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS.)
COMMERCIAL PAPER & OTHER CORPORATE OBLIGATIONS (CONTINUED)
- --------------------------------------------------------------------------
DATA SYSTEMS (0.89%)
IBM Corporation 1.19% 9/8/2003 $ 47,800,000(d) $ 47,799,425
IBM Corporation 1.25% 9/30/2003 25,200,000 25,147,500
--------------
72,946,925
--------------
FINANCIAL -- AUTO (2.67%)
American Honda
Finance 0.99% 8/13/2003 37,000,000 36,987,790
American Honda
Finance 1.02% 9/10/2003 25,340,000 25,311,281
Toyota Motor Credit
Corporation 0.95% 8/22/2003 40,000,000(c) 39,977,833
Toyota Motor Credit
Corporation 1.04% 9/5/2003 50,000,000(c) 49,949,444
Toyota Motor Credit
Corporation 1.00% 9/9/2003 21,865,000 21,841,313
Toyota Motor Credit
Corporation 1.10% 9/24/2003 45,000,000(c) 44,925,750
--------------
218,993,411
--------------
FINANCIAL -- AVIATION (0.73%)
International Lease
Finance Corporation 1.02% 9/12/2003 4,740,000 4,734,359
International Lease
Finance Corporation 1.02% 10/2/2003 55,000,000 54,903,383
--------------
59,637,742
--------------
FINANCIAL -- DIVERSIFIED BUSINESS (6.90%)
American Express
Credit Corporation 1.01% 9/2/2003 50,000,000 49,955,111
American Express
Credit Corporation 1.12% 7/19/2004 70,000,000(d) 70,000,000
Citigroup 1.63% 5/4/2004 45,000,000(d) 45,132,205
General Electric
Capital Corporation 1.19% 8/25/2003 30,000,000 29,976,200
</Table>
See accompanying notes to investments in securities
and accompanying notes to the financial statements.
12
PRIME MONEY MARKET FUND
INVESTMENTS IN SECURITIES
JULY 31, 2003 (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MATURITY PRINCIPAL
NAME OF ISSUER(F) YIELD DATE AMOUNT VALUE(A)
- --------------------------------------------------------------------------
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS.)
COMMERCIAL PAPER & OTHER CORPORATE OBLIGATIONS (CONTINUED)
- --------------------------------------------------------------------------
FINANCIAL -- DIVERSIFIED BUSINESS (CONTINUED)
General Electric
Capital Corporation 1.20% 8/28/2003 $ 40,000,000 $ 39,964,000
Goldman Sachs Group 1.16% 8/6/2003 50,000,000(d) 50,000,000
Goldman Sachs Group 1.21% 8/21/2003 65,000,000 64,956,306
Goldman Sachs Group 1.03% 11/4/2003 40,000,000 39,891,278
JP Morgan Chase 1.02% 10/6/2003 80,000,000 79,850,400
Merrill Lynch &
Company 1.29% 1/14/2003 25,000,000(d) 25,018,084
Merrill Lynch &
Company 1.41% 3/12/2004 25,000,000(d) 25,052,500
Merrill Lynch &
Company 1.43% 5/10/2004 35,000,000(d) 35,098,049
U.S. Bancorp 1.17% 5/15/2004 11,775,000(d) 12,219,364
--------------
567,113,497
--------------
FINANCIAL -- DIVERSIFIED BUSINESS, ASSET-BACKED (16.01%)
Asset Securitization
Cooperative
Corporation 0.94% 8/20/2003 50,000,000(c) 49,975,195
Asset Securitization
Cooperative
Corporation 1.02% 9/3/2003 80,000,000(c) 79,925,200
Asset Securitization
Cooperative
Corporation 1.03% 9/26/2003 40,000,000(c) 39,935,911
Barton Capital
Corporation 1.03% 9/17/2003 60,893,000(c) 60,811,116
CXC Inc. 1.23% 8/4/2003 50,000,000(c) 49,994,875
CXC Inc. 0.96% 9/19/2003 41,000,000(c) 40,946,427
CXC Inc. 1.02% 10/10/2003 30,800,000(c) 30,738,913
Ciesco LP 1.22% 8/7/2003 11,300,000(c) 11,297,702
Ciesco LP 1.00% 8/15/2003 50,000,000 49,980,556
Delaware Funding
Corporation 1.02% 9/16/2003 70,000,000(c) 69,908,767
Edison Asset
Securitization 1.20% 8/22/2003 60,000,000(c) 59,958,000
</Table>
<Table>
<Caption>
MATURITY PRINCIPAL
NAME OF ISSUER(F) YIELD DATE AMOUNT VALUE(A)
- --------------------------------------------------------------------------
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS.)
COMMERCIAL PAPER & OTHER CORPORATE OBLIGATIONS (CONTINUED)
- --------------------------------------------------------------------------
FINANCIAL -- DIVERSIFIED BUSINESS, ASSET-BACKED (CONTINUED)
Edison Asset
Securitization 1.09% 9/5/2003 $ 77,000,000(c) $ 76,918,139
Falcon Asset
Securitization 0.98% 9/15/2003 123,000,000(c) 122,850,988
Fleet Funding
Corporation 1.20% 8/21/2003 40,000,000(c) 39,973,333
Fleet Funding
Corporation 1.04% 9/18/2003 35,000,000(c) 34,951,467
Liberty Street
Funding 0.97% 8/26/2003 50,000,000(c) 49,966,319
Liberty Street
Funding 1.03% 8/29/2003 70,000,000(c) 69,943,922
Liberty Street
Funding 1.04% 10/9/2003 13,750,000(c) 13,722,592
Preferred Receivables
Funding Corporation 1.03% 8/22/2003 38,000,000(c) 37,977,168
Preferred Receivables
Funding Corporation 1.04% 8/28/2003 80,000,000(c) 79,937,600
Preferred Receivables
Funding Corporation 1.02% 10/20/2003 50,000,000(c) 49,886,667
Quincy Capital
Corporation 1.06% 8/26/2003 21,480,000 21,464,188
Windmill Funding
Corporation 1.21% 8/14/2003 110,000,000(c) 109,951,936
Windmill Funding
Corporation 1.02% 9/17/2003 25,000,000(c) 24,966,708
Windmill Funding
Corporation 1.03% 10/10/2003 40,000,000(c) 39,919,889
--------------
1,315,903,578
--------------
FOOD AND BEVERAGE (0.61%)
Alcon Capital
Corporation 1.21% 8/20/2003 50,000,000(c) 49,968,069
--------------
</Table>
See accompanying notes to investments in securities
and accompanying notes to the financial statements.
13
PRIME MONEY MARKET FUND
INVESTMENTS IN SECURITIES
JULY 31, 2003 (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MATURITY PRINCIPAL
NAME OF ISSUER(F) YIELD DATE AMOUNT VALUE(A)
- --------------------------------------------------------------------------
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS.)
COMMERCIAL PAPER & OTHER CORPORATE OBLIGATIONS (CONTINUED)
- --------------------------------------------------------------------------
FOREST PRODUCTS (0.37%)
Kimberly-Clark
Corporation 0.92% 8/14/2003 $ 30,200,000(c) $ 30,189,967
--------------
GOVERNMENT -- DOMESTIC (12.93%)
Federal Home Loan
Bank 1.40% 6/2/2004 76,000,000 76,000,000
Federal Home Loan
Bank 1.30% 6/30/2004 50,000,000 50,000,000
Federal Home Loan
Bank 1.02% 10/24/2003 50,080,000 49,960,810
Federal Home Loan
Mortgage Corporation 1.04% 9/15/2003 11,470,000 11,455,089
Federal Home Loan
Mortgage Corporation 1.04% 9/23/2003 60,000,000 59,908,133
Federal Home Loan
Mortgage Corporation 1.02% 10/2/2003 32,970,000 32,912,367
Federal Home Loan
Mortgage Corporation 1.02% 10/20/2003 119,095,000 118,825,051
Federal Home Loan
Mortgage Corporation 1.02% 10/23/2003 80,000,000 79,811,867
Federal Home Loan
Mortgage Corporation 1.02% 10/31/2003 54,220,000 54,080,203
Federal Home Loan
Mortgage Corporation 1.25% 1/15/2004 132,658,000 133,850,907
Federal Home Loan
Mortgage Corporation 1.10% 5/20/2004 50,000,000 49,552,361
Federal National
Mortgage Association 0.94% 9/10/2003 54,695,000 54,635,383
Federal National
Mortgage Association 0.89% 9/24/2003 55,770,000 55,695,547
</Table>
<Table>
<Caption>
MATURITY PRINCIPAL
NAME OF ISSUER(F) YIELD DATE AMOUNT VALUE(A)
- --------------------------------------------------------------------------
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS.)
COMMERCIAL PAPER & OTHER CORPORATE OBLIGATIONS (CONTINUED)
- --------------------------------------------------------------------------
GOVERNMENT -- DOMESTIC (CONTINUED)
Federal National
Mortgage Association 0.98% 10/1/2003 $100,000,000 $ 99,833,944
Federal National
Mortgage Association 1.01% 10/8/2003 48,600,000 48,507,282
Federal National
Mortgage Association 1.03% 10/15/2003 58,100,000 57,987,636
Federal National
Mortgage Association 1.25% 8/27/2004 30,000,000 30,000,000
--------------
1,063,016,580
--------------
HOUSEHOLD PRODUCTS (0.74%)
Clorox Company 1.00% 8/5/2003 21,319,000 21,316,631
Clorox Company 0.98% 9/11/2003 39,600,000 39,555,801
--------------
60,872,432
--------------
INSURANCE (3.48%)
AIG Funding Inc. 1.17% 9/2/2003 50,000,000 49,948,000
New York Life Capital
Corporation 1.22% 8/1/2003 55,854,000(c) 55,854,000
New York Life Capital
Corporation 1.10% 8/7/2003 30,520,000(c) 30,514,405
Prudential Funding
LLC 1.10% 8/11/2003 50,000,000 49,984,722
Prudential Funding
LLC 1.03% 9/23/2003 50,000,000 49,924,549
Prudential Funding
LLC 1.18% 10/1/2003 50,000,000 49,900,027
--------------
286,125,703
--------------
</Table>
See accompanying notes to investments in securities
and accompanying notes to the financial statements.
14
PRIME MONEY MARKET FUND
INVESTMENTS IN SECURITIES
JULY 31, 2003 (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MATURITY PRINCIPAL
NAME OF ISSUER(F) YIELD DATE AMOUNT VALUE(A)
- --------------------------------------------------------------------------
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS.)
COMMERCIAL PAPER & OTHER CORPORATE OBLIGATIONS (CONTINUED)
- --------------------------------------------------------------------------
MANUFACTURING (1.72%)
Minnesota Mining &
Manufacturing 1.56% 12/12/2003 $100,000,000 $ 101,497,976
Paccar Financial
Corporation 1.34% 11/17/2003 40,000,000(d) 40,009,250
--------------
141,507,226
--------------
OIL SERVICES (1.57%)
Total Fina Elf S.A. 1.02% 9/23/2003 61,000,000(c) 60,908,398
Total Fina Elf S.A. 1.01% 9/30/2003 68,160,000(c) 68,045,263
--------------
128,953,661
--------------
PHARMACEUTICAL (3.22%)
Aventis 0.95% 9/9/2003 35,000,000(c) 34,963,979
Aventis 0.96% 9/12/2003 30,000,000(c) 29,966,400
Merck & Company 1.20% 8/8/2003 75,000,000 74,982,500
Pfizer Inc. 1.00% 8/18/2003 80,000,000(c) 79,962,222
Pfizer Inc. 0.99% 8/20/2003 35,700,000(c) 35,681,347
Schering-Plough
Corporation 0.95% 9/19/2003 9,525,000 9,512,683
--------------
265,069,131
--------------
PRINTING & PUBLISHING (1.00%)
Knight-Ridder Inc 1.20% 8/4/2003 37,500,000(c) 36,996,300
Knight-Ridder Inc 1.18% 8/6/2003 45,000,000(c) 44,992,625
--------------
81,988,925
--------------
</Table>
<Table>
<Caption>
MATURITY PRINCIPAL
NAME OF ISSUER(F) YIELD DATE AMOUNT VALUE(A)
- --------------------------------------------------------------------------
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS.)
COMMERCIAL PAPER & OTHER CORPORATE OBLIGATIONS (CONTINUED)
- --------------------------------------------------------------------------
UTILITIES -- TELEPHONE (3.63%)
BellSouth Corporation 1.47% 4/26/2004 $100,000,000 $ 101,987,127
SBC Communications
Inc. 1.26% 6/5/2004 90,000,000 92,234,678
SBC International
Inc. 1.04% 9/9/2003 50,000,000(c) 49,943,667
Verizon Network
Funding 0.99% 9/25/2003 53,950,000 53,868,401
--------------
298,033,873
- --------------------------------------------------------------------------
Total Commercial Paper & Other Corporate Obligations
(amortized cost: $8,184,495,151) $8,184,495,151
- --------------------------------------------------------------------------
TAXABLE MUNICIPALS (0.68%):
New York City G.O.,
FGIC Insured 1.23% 8/6/2003 37,500,000 37,500,000
New York City G.O.,
FGIC Insured 1.30% 9/4/2003 18,350,000 18,350,000
- --------------------------------------------------------------------------
Total Taxable Municipals (amortized cost: $55,850,000) $ 55,850,000
- --------------------------------------------------------------------------
Total Investments in Securities (amortized cost:
$8,240,345,151)(b) $8,240,345,151
- --------------------------------------------------------------------------
</Table>
See accompanying notes to investments in securities
and accompanying notes to the financial statements.
15
U.S. GOVERNMENT MONEY MARKET FUND
INVESTMENTS IN SECURITIES
JULY 31, 2003
- --------------------------------------------------------------------------------
<Table>
<Caption>
MATURITY PRINCIPAL
NAME OF ISSUER(F) YIELD DATE AMOUNT VALUE(A)
- -----------------------------------------------------------------------------
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS.)
GOVERNMENT & AGENCIES SECURITIES (100.92%):
- -----------------------------------------------------------------------------
FEDERAL HOME LOAN BANK (26.70%)
1.16% 8/13/2003 $45,000,000 $ 44,982,600
1.20% 8/15/2003 11,000,000 11,023,513
1.72% 8/15/2003 10,000,000 10,009,123
1.14% 8/20/2003 28,700,000 28,682,687
1.02% 8/22/2003 15,980,000 15,970,492
1.12% 9/3/2003 30,300,000 30,268,892
1.03% 9/5/2003 5,200,000 5,194,793
0.96% 9/9/2003 10,000,000 9,989,600
1.22% 9/15/2003 4,300,000 4,320,403
0.97% 9/26/2003 20,800,000 20,768,615
0.98% 10/3/2003 31,800,000 31,745,463
0.98% 10/8/2003 23,500,000 23,456,721
0.99% 11/14/2003 31,750,000 31,658,322
1.40% 6/2/2004 10,000,000 10,000,000
1.30% 6/30/2004 5,000,000 5,000,000
--------------
283,071,224
--------------
FEDERAL HOME LOAN MORTGAGE CORPORATION (26.92%)
1.20% 8/1/2003 21,200,000 21,200,000
1.15% 8/7/2003 25,000,000 24,995,208
1.00% 8/12/2003 5,470,000 5,468,329
1.14% 8/14/2003 10,980,000 10,975,500
1.01% 8/19/2003 31,570,000 31,554,057
1.03% 8/26/2003 19,680,000 19,665,923
0.97% 8/29/2003 7,800,000 7,794,115
1.17% 9/2/2003 15,630,000 15,613,745
1.13% 9/3/2003 10,000,000 9,989,641
1.17% 9/4/2003 22,690,000 22,665,035
1.02% 9/16/2003 23,300,000 23,269,632
1.15% 9/19/2003 20,000,000 19,968,694
1.16% 9/30/2003 6,300,000 6,287,820
1.02% 10/16/2003 16,900,000 16,863,787
1.02% 10/24/2003 49,140,000 49,023,620
--------------
285,335,106
--------------
</Table>
<Table>
<Caption>
MATURITY PRINCIPAL
NAME OF ISSUER(F) YIELD DATE AMOUNT VALUE(A)
- -----------------------------------------------------------------------------
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS.)
GOVERNMENT & AGENCIES SECURITIES (CONTINUED)
- -----------------------------------------------------------------------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION (46.16%)
1.16% 8/6/2003 $38,600,000 $ 38,593,781
1.05% 8/15/2003 13,465,000 13,479,183
1.17% 8/27/2003 26,080,000 26,059,485
1.18% 8/29/2003 42,480,000 42,441,924
1.00% 9/2/2003 10,240,000 10,230,898
1.00% 9/10/2003 25,000,000 24,973,222
0.96% 9/17/2003 16,200,000 16,179,802
0.97% 9/24/2003 32,780,000 32,735,795
1.05% 9/30/2003 30,615,000 30,563,424
0.98% 10/1/2003 40,000,000 39,933,578
0.99% 10/8/2003 9,570,000 9,552,195
0.89% 10/15/2003 47,000,000 46,913,481
0.98% 10/22/2003 27,395,000 27,335,853
0.95% 10/29/2003 40,000,000 39,907,045
1.26% 11/15/2003 4,219,000 4,241,602
0.97% 12/12/2003 23,730,000 23,644,961
0.98% 12/17/2003 22,000,000 21,917,353
1.15% 12/22/2003 670,000 680,755
1,14% 2/13/2004 4,900,000 5,003,028
0.99% 6/17/2004 25,000,000(d) 24,997,780
1.25% 8/27/2004 10,000,000 10,000,000
--------------
489,385,145
--------------
STUDENT LOAN MARKETING ASSOCIATION (1.14%)
1.10% 4/23/2004 2,000,000 2,052,567
1.01% 9/18/2004 10,000,000(d) 9,999,745
--------------
12,052,312
- -----------------------------------------------------------------------------
Total Government & Agencies Securities
(amortized cost: $1,069,843,787) $1,069,843,787
- -----------------------------------------------------------------------------
Total Investments in Securities
(amortized cost: $1,069,843,787)(b) $1,069,843,787
- -----------------------------------------------------------------------------
</Table>
See accompanying notes to investments in securities
and accompanying notes to the financial statements.
16
TAX-FREE MONEY MARKET FUND
INVESTMENTS IN SECURITIES
JULY 31, 2003
- --------------------------------------------------------------------------------
<Table>
<Caption>
MATURITY PRINCIPAL
NAME OF ISSUER(F) YIELD DATE AMOUNT VALUE(A)
- -----------------------------------------------------------------------------
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS.)
ALABAMA (1.98%)
City of Birmingham, LOC
Societe General 0.85% 10/1/2015 $ 2,400,000(e) $ 2,400,000
Mobile Industrial
Development Board, LOC
Bayerische Landesbank 0.80% 6/1/2032 10,100,000(e) 10,100,000
Mobile Industrial
Development Board (Dock &
Wharf), LOC Wachovia Bank 0.85% 6/1/2032 6,265,000(e) 6,265,000
------------
18,765,000
------------
ARIZONA (1.95%)
Apache County IDR, LOC
Toronto Dominion Bank 0.90% 12/15/2018 11,600,000(e) 11,600,000
Glendale IDA Senior Living
Facilities Revenue
(Friendship Retirement
Project), LOC Wells Fargo
Bank 0.90% 12/1/2014 1,110,000(e) 1,110,000
Phoenix IDA, MFHR (Del Mar
Terrace) Guaranty: FHLMC 0.85% 10/1/2029 3,000,000(e) 3,000,000
Tucson IDA (La Entrada
Apartments Project),
Guaranty: FNMA 0.85% 7/15/2031 2,750,000(e) 2,750,000
------------
18,460,000
------------
CALIFORNIA (5.10%)
Bay Area Toll Authority
Bridge Revenue, AMBAC
Insured 0.78% 4/1/2029 4,600,000(e) 4,600,000
City of Irvine Import Board
Act of 1915, LOC Bank of
America 0.85% 9/2/2025 491,000(e) 491,000
City of Irvine Ranch Water
District, LOC Landesbank
Hessen-Thuringen 0.85% 11/15/2013 2,200,000(e) 2,200,000
</Table>
<Table>
<Caption>
MATURITY PRINCIPAL
NAME OF ISSUER(F) YIELD DATE AMOUNT VALUE(A)
- -----------------------------------------------------------------------------
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS.)
CALIFORNIA (CONTINUED)
City of Irvine Ranch Water
District, LOC State Street 0.85% 1/1/2021 $ 800,000(e) $ 800,000
City of Irvine Ranch Water
District Certificate, LOC
Toronto Dominion 0.85% 8/1/2016 300,000(e) 300,000
Los Angeles Regional
Airport Improvement
Authority (L.A.
International), LOC
Societe General 1.00% 12/1/2025 500,000(e) 500,000
San Joaquin Hills Revenue,
MBIA Insured 0.90% 1/15/2004 7,000,000 6,971,412
Southern California Public
Power, AMBAC Insured 0.78% 7/1/2019 8,500,000(e) 8,500,000
State Department of Water
Resources Revenue, FSA
Insured 0.83% 5/1/2022 13,800,000(e) 13,800,000
State Department of Water
Resources Revenue, LOC
Landesbank Hessen-
Thuringen 0.86% 5/1/2022 7,745,000(e) 7,745,000
State Infrastructure and
Economy, AMBAC Insured 0.85% 4/1/2042 600,000(e) 600,000
Statewide Development
Authority, AMBAC Insured 0.78% 8/15/2032 1,700,000(e) 1,700,000
------------
48,207,412
------------
COLORADO (2.89%)
Adams County IDR, LOC
Citibank 0.85% 11/1/2008 3,400,000(e) 3,400,000
Aurora Centretech Metro
District, LOC BNP Paribas 1.55% 12/1/2003 1,000,000 1,000,000
</Table>
See accompanying notes to investments in securities
and accompanying notes to the financial statements.
17
TAX-FREE MONEY MARKET FUND
INVESTMENTS IN SECURITIES
JULY 31, 2003 (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MATURITY PRINCIPAL
NAME OF ISSUER(F) YIELD DATE AMOUNT VALUE(A)
- -----------------------------------------------------------------------------
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS.)
COLORADO (CONTINUED)
Douglas County Multifamily
(Autumn Chase), Guaranty:
FHLMC 0.85% 12/1/2029 $ 3,900,000(e) $ 3,900,000
Interstate South Metro
District, LOC BNP Paribas 1.90% 11/1/2003 3,230,000 3,230,000
Jefferson County Revenue,
LOC Wells Fargo Bank 0.90% 6/1/2010 1,315,000(e) 1,315,000
NBC Metropolitan District
GO, LOC U.S. Bank 1.55% 12/1/2003 2,110,000 2,110,000
Pinery West Metro District
2, LOC U.S. Bank 1.30% 11/1/2003 7,400,000 7,400,000
State Education & Cultural
Facilities Authority
Revenue, LOC Wells Fargo
Bank 0.90% 1/1/2021 1,520,000(e) 1,520,000
State Education & Cultural
Facilities Authority
Revenue, LOC Wells Fargo
Bank 0.90% 12/1/2033 300,000(e) 300,000
State Health Facilities
Authority, MBIA Insured 0.80% 5/15/2020 102,000(e) 102,000
State Health Facilities
Authority (Visiting
Nurses), LOC Wells Fargo
Bank 0.95% 7/1/2022 740,000(e) 740,000
Willow Trace Metro District
(Arapahoe County), LOC
U.S. Bank 1.55% 12/1/2003 2,290,000 2,290,000
------------
27,307,000
------------
DISTRICT OF COLUMBIA (2.13%)
District Convention Center
Authority Revenue, AMBAC
Insured 1.03% 10/1/2003 3,315,000 3,334,002
District GO, MBIA Insured 0.88% 6/1/2031 12,500,000(e) 12,500,000
District Revenue Pooled
Loan, LOC Bank of America 0.85% 1/1/2029 4,345,000(e) 4,345,000
------------
20,179,002
------------
</Table>
<Table>
<Caption>
MATURITY PRINCIPAL
NAME OF ISSUER(F) YIELD DATE AMOUNT VALUE(A)
- -----------------------------------------------------------------------------
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS.)
FLORIDA (7.13%)
Alachua County Health
Facilities Authority, LOC
BNP Paribas 0.90% 10/1/2032 $ 3,200,000(e) $ 3,200,000
Alachua County Health
Facilities Authority, MBIA
Insured 0.83% 12/1/2026 5,300,000(e) 5,300,000
Collier County Health
Facilities Authority, LOC
Wachovia Bank 0.85% 12/1/2024 6,100,000(e) 6,100,000
Dade County IDA Revenue
(Dolphins Stadium), LOC
Societe Generale 0.85% 1/1/2016 2,600,000(e) 2,600,000
Jacksonville Health
Facilities Authority
Hospital Revenue, MBIA
Insured 0.85% 8/15/2019 4,400,000(e) 4,400,000
Lakeland Energy System
Revenue, LOC Toronto
Dominion 0.85% 10/1/2035 1,100,000(e) 1,100,000
Miami Health Facilities
Authority (Mercy
Hospital), LOC Bank of
America 0.85% 8/1/2020 6,835,000(e) 6,835,000
Orange County School Board,
AMBAC Insured 0.85% 8/1/2025 300,000(e) 300,000
Palm Beach County Housing
Finance Development
Authority LOC, CS First
Boston 0.85% 11/1/2007 3,500,000(e) 3,500,000
Pasco County Water & Sewer
Revenue, FSA Insured 1.49% 10/1/2003 3,500,000 3,514,506
Pinellas County Education
Facilities Authority, LOC
Wachovia Bank 0.80% 10/8/2003 1,300,000 1,300,000
St. John's County Housing
Finance Authority, FNMA
Collateralized 0.85% 2/15/2028 11,600,000(e) 11,600,000
</Table>
See accompanying notes to investments in securities
and accompanying notes to the financial statements.
18
TAX-FREE MONEY MARKET FUND
INVESTMENTS IN SECURITIES
JULY 31, 2003 (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MATURITY PRINCIPAL
NAME OF ISSUER(F) YIELD DATE AMOUNT VALUE(A)
- -----------------------------------------------------------------------------
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS.)
FLORIDA (CONTINUED)
St. John's County IDA
Health Care (Glenmoor
Project), LOC LaSalle Bank 0.85% 1/1/2007 $10,100,000(e) $ 10,100,000
State Housing Financial
Agency, FHLMC
Collateralized 0.80% 7/1/2007 470,000(e) 470,000
State Municipal Power
Agency, LOC Wachovia Bank 0.79% 10/8/2003 2,100,000 2,100,000
West Orange Health District
Revenue, LOC Suntrust Bank 0.85% 2/1/2022 5,000,000(e) 5,000,000
------------
67,419,506
------------
GEORGIA (6.11%)
Clayton County Housing
Authority, FNMA
Collateralized 0.85% 9/1/2026 5,800,000(e) 5,800,000
DeKalb County Development
Authority Revenue (Metro
Atlanta YMCA Project), LOC
Wachovia Bank 0.85% 6/1/2020 1,000,000(e) 1,000,000
DeKalb Private Hospital
Authority, LOC SunTrust
Bank 0.85% 12/1/2017 1,500,000(e) 1,500,000
DeKalb Private Hospital
Authority, LOC SunTrust
Bank 0.85% 3/1/2024 2,100,000(e) 2,100,000
DeKalb Private Hospital
Authority (Children's
Health Care Project), LOC
SunTrust Bank 0.85% 12/1/2028 2,100,000(e) 2,100,000
Marietta Housing Authority
MFHR, FNMA Collateralized 0.85% 7/1/2024 9,825,000(e) 9,825,000
Marietta Housing Authority
MFHR (Summit), FNMA
Collateralized 0.85% 5/15/2007 5,300,000(e) 5,300,000
</Table>
<Table>
<Caption>
MATURITY PRINCIPAL
NAME OF ISSUER(F) YIELD DATE AMOUNT VALUE(A)
- -----------------------------------------------------------------------------
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS.)
GEORGIA (CONTINUED)
Metropolitan Atlanta Rapid
Transit, LOC Westdeutsche
Landesbank 0.80% 7/1/2025 $12,545,000(e) $ 12,545,000
Savannah Downtown Revenue
Authority, LOC Wachovia
Bank 0.85% 10/1/2007 6,000,000(e) 6,000,000
State Municipal Electric
Authority, LOC Landesbank
Hessen- Thuringen 0.80% 8/6/2003 7,600,000 7,600,000
State Municipal Electric
Authority, FSA Insured 0.80% 1/1/2016 4,000,000(e) 4,000,000
------------
57,770,000
------------
ILLINOIS (7.39%)
City of Chicago Tender
Notes, LOC Landesbank
Hessen-Thuringen 1.28% 12/4/2003 7,000,000 7,000,000
City of Elmhurst Revenue,
LOC Dexia CLF 0.85% 7/1/2018 9,355,000(e) 9,355,000
City of Galesburg Revenue
(Knox College), LOC
LaSalle Bank 0.85% 7/1/2024 2,000,000(e) 2,000,000
City of Galesburg Revenue
(Knox College), LOC
LaSalle Bank 0.95% 3/1/2031 4,200,000(e) 4,200,000
Joliet Port District,
Guaranty: ExxonMobil Corp 0.85% 10/1/2024 600,000(e) 600,000
State Development Finance
Authority (A.E. Staley
Manufacturing), LOC UBS AG 0.80% 12/1/2005 1,600,000(e) 1,600,000
State Development Finance
Authority (Council for
Jewish Elderly), LOC
LaSalle Bank 0.85% 3/1/2015 4,000,000(e) 4,000,000
State Development Finance
Authority, MBIA Insured 0.80% 5/1/2028 6,000,000(e) 6,000,000
</Table>
See accompanying notes to investments in securities
and accompanying notes to the financial statements.
19
TAX-FREE MONEY MARKET FUND
INVESTMENTS IN SECURITIES
JULY 31, 2003 (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MATURITY PRINCIPAL
NAME OF ISSUER(F) YIELD DATE AMOUNT VALUE(A)
- -----------------------------------------------------------------------------
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS.)
ILLINOIS (CONTINUED)
State Development Finance
Authority Pollution
Control, LOC Bank One 0.90% 9/1/2008 $ 4,000,000(e) $ 4,000,000
State Development Finance
Authority Pollution
Control (Amoco Oil), LOC
UBS AG 0.90% 11/1/2012 1,100,000(e) 1,100,000
State Health Facilities
Authority (Resurrection
Health), FSA Insured 0.85% 5/15/2029 6,300,000(e) 6,300,000
State Health Facilities
Authority Revenue, MBIA
Insured 0.80% 7/1/2024 3,690,000(e) 3,690,000
State Health Facilities
Authority Revenue, LOC
Harris Trust & Savings 0.90% 8/15/2032 4,500,000(e) 4,500,000
State Health Facilities
Authority Revenue, LOC
U.S. Bank 0.85% 3/1/2031 3,000,000(e) 3,000,000
State Toll Highway Priority
Revenue, MBIA Insured 0.80% 1/1/2010 9,100,000(e) 9,100,000
State Toll Highway Revenue,
FSA Insured 0.90% 1/1/2017 3,500,000(e) 3,500,000
------------
69,945,000
------------
INDIANA (1.50%)
State Health Facilities
Finance Authority (Capital
Access Pool), LOC Comerica
Bank 0.85% 1/1/2012 700,000(e) 700,000
State Health Facilities
Finance Authority, LOC
Comerica Bank 0.85% 4/1/2012 2,495,000(e) 2,495,000
State Health Facilities
Finance Authority, LOC
Comerica Bank 0.85% 1/1/2016 2,700,000(e) 2,700,000
</Table>
<Table>
<Caption>
MATURITY PRINCIPAL
NAME OF ISSUER(F) YIELD DATE AMOUNT VALUE(A)
- -----------------------------------------------------------------------------
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS.)
INDIANA (CONTINUED)
State Health Facilities
Finance Authority, LOC
U.S. Bank 0.85% 1/1/2022 $ 365,000(e) $ 365,000
State Municipal Power
Agency, LOC Toronto
Dominion 0.85% 1/1/2018 7,900,000(e) 7,900,000
------------
14,160,000
------------
IOWA (4.59%)
State Finance Authority
Revenue (Burlington
Medical Center), FSA
Insured 0.90% 6/1/2027 100,000(e) 100,000
State Finance Authority
Revenue (Diocese Of Sioux
City), LOC Wells Fargo
Bank 0.90% 3/1/2019 3,825,000(e) 3,825,000
State Finance Authority
Revenue, MBIA Insured 0.80% 8/15/2012 4,800,000(e) 4,800,000
State Finance Authority
Revenue (Museum
Facilities), LOC Wells
Fargo Bank 0.90% 5/1/2012 3,370,000(e) 3,370,000
State Finance Authority
Revenue (Private
Colleges), LOC U.S. Bank 0.95% 7/1/2031 1,300,000(e) 1,300,000
State Finance Authority
Revenue (Small Business
Development), Guaranty: E.
I. DuPont de Nemours 0.90% 11/1/2015 300,000(e) 300,000
State Finance Authority
Revenue (YMCA &
Rehabilitation Center),
LOC Bank of America 0.90% 4/1/2025 2,885,000(e) 2,885,000
State Higher Education Loan
Authority Revenue, LOC
LaSalle Bank 0.90% 11/1/2030 615,000(e) 615,000
State Higher Education Loan
Authority Revenue, LOC US
Bank 0.95% 10/1/2025 1,735,000(e) 1,735,000
</Table>
See accompanying notes to investments in securities
and accompanying notes to the financial statements.
20
TAX-FREE MONEY MARKET FUND
INVESTMENTS IN SECURITIES
JULY 31, 2003 (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MATURITY PRINCIPAL
NAME OF ISSUER(F) YIELD DATE AMOUNT VALUE(A)
- -----------------------------------------------------------------------------
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS.)
IOWA (CONTINUED)
State Higher Education Loan
Authority Revenue, LOC
Wells Fargo Bank 0.90% 11/1/2016 $ 9,300,000(e) $ 9,300,000
State Higher Education Loan
Authority Revenue (Palmer
Chiropractic), LOC LaSalle
Bank 0.87% 4/1/2027 8,570,000(e) 8,570,000
Webster County Education,
LOC Wells Fargo Bank 0.90% 7/1/2020 2,400,000(e) 2,400,000
Woodbury County (Siouxland
Regional Cancer Center),
LOC Wells Fargo Bank 0.90% 12/1/2014 4,225,000(e) 4,225,000
------------
43,425,000
------------
KANSAS (0.11%)
State Development Authority
Health Facilities Revenue
(Stormont Vail
Healthcare), MBIA Insured 0.95% 11/15/2023 1,000,000(e) 1,000,000
------------
LOUISIANA (3.94%)
Lake Charles Harbor &
Revenue (Conoco Inc.), LOC
Bank One 0.85% 9/1/2029 2,800,000(e) 2,800,000
South Louisiana Port
Commission (Marine
Terminal), LOC Bayerische
Landesbank 0.85% 7/1/2021 1,950,000(e) 1,950,000
State Public Facilities
Authority, AMBAC Insured 0.75% 8/4/2003 21,000,000 21,000,000
State Public Facilities
Authority, LOC Bank One 0.85% 12/1/2015 1,400,000(e) 1,400,000
State Public Facilities
Authority (Emberwood), LOC
GE Capital 0.85% 10/1/2022 2,900,000(e) 2,900,000
</Table>
<Table>
<Caption>
MATURITY PRINCIPAL
NAME OF ISSUER(F) YIELD DATE AMOUNT VALUE(A)
- -----------------------------------------------------------------------------
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS.)
LOUISIANA (CONTINUED)
State Public Facilities
Authority (Kenner Hotel),
LOC Bank of America 0.98% 8/13/2003 $ 3,100,000 $ 3,100,000
State Offshore Terminal
Authority (Deepwater
Port), LOC Bank One 0.90% 10/1/2019 4,105,000(e) 4,105,000
------------
37,255,000
------------
MAINE (0.38%)
State Health & Higher
Education (Bowdoin
College), LOC State Street
Bank & Trust 0.86% 7/1/2025 3,565,000(e) 3,565,000
------------
MARYLAND (2.81%)
City of Baltimore Public
Improvement, FGIC Insured 0.85% 10/1/2022 10,500,000(e) 10,500,000
Montgomery County Housing
Opportunities (Oakwood
Apartments), LOC FHLMC 0.85% 11/1/2007 13,050,000(e) 13,050,000
State Health & Higher
Education Facilities, LOC
U.S. Bank 0.85% 4/1/2035 3,000,000(e) 3,000,000
------------
26,550,000
------------
MASSACHUSETTS (1.81%)
State Health and
Educational Facilities
Authority Revenue (Capital
Assets Program), MBIA
Insured 0.75% 1/1/2019 900,000(e) 900,000
State Health and
Educational Facilities
Authority Revenue (Capital
Assets Program), MBIA
Insured 0.74% 10/1/2027 2,150,000(e) 2,150,000
</Table>
See accompanying notes to investments in securities
and accompanying notes to the financial statements.
21
TAX-FREE MONEY MARKET FUND
INVESTMENTS IN SECURITIES
JULY 31, 2003 (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MATURITY PRINCIPAL
NAME OF ISSUER(F) YIELD DATE AMOUNT VALUE(A)
- -----------------------------------------------------------------------------
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS.)
MASSACHUSETTS (CONTINUED)
State Health and
Educational Facilities
Authority Revenue (Capital
Assets Program), MBIA
Insured 0.85% 1/1/2035 $ 600,000(e) $ 600,000
State Water Resource
Authority, FGIC Insured 0.75% 8/1/2023 10,900,000(e) 10,900,000
State Water Resource
Authority, FGIC Insured 0.85% 11/1/2026 2,600,000(e) 2,600,000
------------
17,150,000
------------
MICHIGAN (5.04%)
City of Detroit Sewer
Disposal Revenue, FGIC
Insured 0.85% 7/1/2029 1,900,000(e) 1,900,000
City of Detroit Sewer
Disposal Revenue, MBIA
Insured 0.76% 7/1/2023 2,500,000(e) 2,500,000
Ingham County Economic
Development (Martin
Luther), LOC Bank One 0.90% 4/1/2022 975,000(e) 975,000
State Grant Anticipation
Notes, FSA Insured 0.82% 9/15/2008 10,300,000(e) 10,300,000
State Grant Anticipation
Notes, FSA Insured 0.85% 9/15/2008 6,400,000(e) 6,400,000
State Housing Development
Authority (Rental
Housing), MBIA Insured 0.83% 4/1/2024 1,680,000(e) 1,680,000
State GO 0.95% 10/14/2003 12,000,000 12,000,000
State Strategic Fund (Clark
Retirement), LOC Fifth
Third Bank 0.85% 6/1/2031 3,100,000(e) 3,100,000
University of Michigan
Revenue 0.85% 4/1/2032 8,830,000(e) 8,830,000
------------
47,685,000
------------
</Table>
<Table>
<Caption>
MATURITY PRINCIPAL
NAME OF ISSUER(F) YIELD DATE AMOUNT VALUE(A)
- -----------------------------------------------------------------------------
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS.)
MINNESOTA (4.88%)
Arden Hills Housing &
Health Care Facilities
Revenue, LOC U.S. Bank 0.95% 9/1/2029 $ 150,000(e) $ 150,000
Beltrami County
Environmental Revenue, LOC
Toronto Dominion 0.85% 12/1/2021 900,000(e) 900,000
City of Cohasset (MN Power
& Light Project), LOC ABN
AMRO 0.90% 6/1/2020 225,000(e) 225,000
City of Cohasset (MN Power
& Light Project), LOC ABN
AMRO 0.90% 12/1/2007 200,000(e) 200,000
City of Maple Grove MFHR,
LOC Wells Fargo Bank 0.85% 11/1/2031 3,370,000(e) 3,370,000
City of Mendota Heights
Housing Mortgage Revenue,
LOC Wells Fargo Bank 0.85% 11/1/2031 1,500,000(e) 1,500,000
City of Minneapolis MFHR,
LOC Wells Fargo Bank 0.85% 12/1/2027 7,570,000(e) 7,570,000
City of Minneapolis Nursing
Home Revenue, LOC Wells
Fargo Bank 0.85% 12/1/2027 9,420,000(e) 9,420,000
City of Minneapolis
Revenue, LOC Wells Fargo
Bank 0.85% 11/1/2016 940,000(e) 940,000
City of St. Paul (Science
Museum Project), LOC U.S.
Bank 0.90% 5/1/2027 2,340,000(e) 2,340,000
State Aid Anticipation
Program 1.46% 8/20/2003 15,000,000 15,005,997
State Higher Education
Facility Authority, LOC
Harris Trust & Savings 0.90% 10/1/2020 320,000(e) 320,000
State Higher Education
Facility Authority, LOC
U.S. Bank 0.86% 4/1/2027 4,250,000(e) 4,250,000
------------
46,190,997
------------
</Table>
See accompanying notes to investments in securities
and accompanying notes to the financial statements.
22
TAX-FREE MONEY MARKET FUND
INVESTMENTS IN SECURITIES
JULY 31, 2003 (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MATURITY PRINCIPAL
NAME OF ISSUER(F) YIELD DATE AMOUNT VALUE(A)
- -----------------------------------------------------------------------------
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS.)
MISSISSIPPI (0.06%)
Jackson County PCR,
Guaranty: ChevronTexaco
Corporation 0.85% 6/1/2023 $ 600,000(e) $ 600,000
------------
MISSOURI (0.97%)
City of Independence IDA
Revenue, LOC Dexia Group 0.90% 11/1/2027 1,235,000(e) 1,235,000
St. Charles County
Industrial Development
Authority (Remington
Apartments), Guaranty:
FNMA 0.85% 2/1/2023 2,000,000(e) 2,000,000
State Health & Educational
Facilities Authority (St.
Francis Medical Center),
LOC Dexia CLF 0.90% 6/1/2026 250,000(e) 250,000
State Development Finance
Board Revenue, LOC U.S.
Bank 0.95% 6/1/2033 5,735,000(e) 5,735,000
------------
9,220,000
------------
NEBRASKA (1.77%)
Lancaster County Hospital
Authority (Immanuel), LOC
LaSalle Bank 0.90% 7/1/2030 5,485,000(e) 5,485,000
Lancaster County Hospital
Revenue, AMBAC Insured 0.90% 6/1/2018 5,000,000(e) 5,000,000
Scotts Bluff County
Hospital Authority, LOC U.
S. Bank 0.90% 12/1/2031 4,225,000(e) 4,225,000
State Education Finance
Authority Revenue, AMBAC
Insured 0.90% 3/1/2033 2,000,000(e) 2,000,000
------------
16,710,000
------------
</Table>
<Table>
<Caption>
MATURITY PRINCIPAL
NAME OF ISSUER(F) YIELD DATE AMOUNT VALUE(A)
- -----------------------------------------------------------------------------
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS.)
NEVADA (0.29%)
Clark County Airport
Revenue, LOC Bayerische
Landesbank 0.76% 7/1/2029 $ 1,600,000(e) $ 1,600,000
Clark County Airport
Revenue, LOC Westdeutsche
Landesbank 0.80% 7/1/2025 1,100,000(e) 1,100,000
------------
2,700,000
------------
NEW HAMPSHIRE (1.06%)
Manchester General Airport
Revenue, FSA Insured 0.90% 1/1/2032 7,000,000(e) 7,000,000
State Health & Education
Facilities Revenue, FSA
Insured 0.85% 8/1/2031 2,000,000(e) 2,000,000
State Higher Education &
Health Facility, LOC FGIC 0.85% 7/1/2021 990,000(e) 990,000
------------
9,990,000
------------
NEW YORK (11.48%)
City of Babylon IDA
Resource Recovery Revenue,
FSA Insured 0.88% 1/1/2019 5,000,000(e) 5,000,000
Jay Street Development
Corp, LOC Toronto Dominion 0.78% 5/1/2021 5,700,000(e) 5,700,000
Nassau County Finance
Authority, FSA Insured 0.78% 11/15/2022 8,250,000(e) 8,250,000
New York City GO, MBIA
Insured 0.85% 8/15/2004 2,200,000 2,200,000
New York City GO, MBIA
Insured 0.85% 8/1/2014 900,000(e) 900,000
New York City GO, LOC JP
Morgan Chase 0.87% 8/1/2016 2,650,000(e) 2,650,000
New York City GO, LOC JP
Morgan Chase 0.91% 8/15/2018 400,000(e) 400,000
New York City GO, LOC JP
Morgan Chase 0.91% 8/15/2019 140,000(e) 140,000
New York City GO, LOC JP
Morgan Chase 0.91% 8/15/2020 1,200,000(e) 1,200,000
</Table>
See accompanying notes to investments in securities
and accompanying notes to the financial statements.
23
TAX-FREE MONEY MARKET FUND
INVESTMENTS IN SECURITIES
JULY 31, 2003 (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MATURITY PRINCIPAL
NAME OF ISSUER(F) YIELD DATE AMOUNT VALUE(A)
- -----------------------------------------------------------------------------
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS.)
NEW YORK (CONTINUED)
New York City GO, LOC JP
Morgan Chase 0.91% 8/1/2021 $ 500,000(e) $ 500,000
New York City GO, MBIA
Insured 0.85% 8/15/2022 1,400,000(e) 1,400,000
New York City GO, MBIA
Insured 0.85% 8/15/2023 300,000(e) 300,000
State Energy Research and
Development Authority PCR,
LOC Bank One 0.85% 6/1/2029 1,600,000(e) 1,600,000
State Energy Research and
Development Authority PCR
(Orange & Rockland
Project), FGIC Insured 0.73% 10/1/2014 3,500,000(e) 3,500,000
State Local Government
Assistance Corporation,
LOC Bank of Nova Scotia 0.73% 4/1/2025 32,465,000(e) 32,465,000
State Local Government
Assistance Corporation,
FGIC Insured 0.75% 4/1/2021 8,500,000(e) 8,500,000
Triborough Bridge & Tunnel
Authority, FSA Insured 0.78% 1/1/2032 19,000,000(e) 19,000,000
Triborough Bridge & Tunnel
Authority, AMBAC Insured 0.78% 1/1/2032 10,000,000(e) 10,000,000
Triborough Bridge & Tunnel
Authority, FSA Insured 0.78% 1/1/2031 4,900,000(e) 4,900,000
------------
108,605,000
------------
NORTH CAROLINA (0.85%)
City of Greensboro
Enterprise System Revenue,
LOC Bank of America 0.80% 6/1/2024 2,300,000(e) 2,300,000
State Education Facilities
Finance Agency Revenue
(Elon College), LOC Bank
of America 0.85% 1/1/2019 2,165,000(e) 2,165,000
</Table>
<Table>
<Caption>
MATURITY PRINCIPAL
NAME OF ISSUER(F) YIELD DATE AMOUNT VALUE(A)
- -----------------------------------------------------------------------------
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS.)
NORTH CAROLINA (CONTINUED)
State Medical Care
Commission Hospital (Angel
Medical Care Center), LOC
Wachovia Bank 0.85% 10/1/2016 $ 3,200,000(e) $ 3,200,000
State Medical Care
Commission Revenue, LOC
Wachovia Bank 0.90% 10/1/2013 300,000(e) 300,000
State Medical Care
Commission Revenue
(Carolina Meadows
Project), LOC Wachovia
Bank 0.90% 6/1/2028 100,000(e) 100,000
------------
8,065,000
------------
OHIO (3.47%)
City of Cleveland Income
Tax Revenue, AMBAC Insured 0.80% 5/15/2024 5,100,000(e) 5,100,000
Cuyahoga County Hospital
Revenue, LOC JP Morgan 0.85% 1/1/2016 1,150,000(e) 1,150,000
Franklin County Hospital
Revenue, LOC JP Morgan
Chase 0.80% 12/1/2020 4,550,000(e) 4,550,000
Franklin County Hospital
Revenue, LOC JP Morgan
Chase 0.80% 12/1/2021 2,855,000(e) 2,855,000
Hamilton County Health
Alliance, MBIA Insured 0.80% 1/1/2018 5,051,000(e) 5,051,000
State Housing Finance
Agency MFHR (Kenwood
Retirement), LOC JP Morgan
Chase 0.90% 12/1/2015 4,200,000(e) 4,200,000
Warren County Health Care
Facility (Otterbein
Homes), LOC Fifth Third
Bank 0.93% 7/1/2023 9,929,000(e) 9,929,000
------------
32,835,000
------------
</Table>
See accompanying notes to investments in securities
and accompanying notes to the financial statements.
24
TAX-FREE MONEY MARKET FUND
INVESTMENTS IN SECURITIES
JULY 31, 2003 (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MATURITY PRINCIPAL
NAME OF ISSUER(F) YIELD DATE AMOUNT VALUE(A)
- -----------------------------------------------------------------------------
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS.)
OREGON (0.42%)
Tri-County Metropolitan
Transportation District,
LOC Bayerische Landesbank 0.80% 12/1/2021 $ 4,000,000(e) $ 4,000,000
------------
PENNSYLVANIA (2.81%)
Bedford County IDA, LOC
Wachovia Bank 0.85% 11/1/2005 3,200,000(e) 3,200,000
Delaware Valley Finance
Authority, LOC Toronto
Dominion 0.85% 12/1/2020 2,500,000(e) 2,500,000
Emmaus General Authority
Revenue, LOC Goldman Sachs 0.88% 3/1/2024 4,800,000(e) 4,800,000
Montgomery County
Redevelopment Authority,
LOC FNMA 0.80% 8/15/2031 10,300,000(e) 10,300,000
Schuykill County IDA, LOC
Dexia Group 0.90% 12/1/2022 1,005,000(e) 1,005,000
Washington County (Higher
Education Pool Lease), LOC
Wachovia Bank 0.93% 11/1/2005 4,800,000(e) 4,800,000
------------
26,605,000
------------
RHODE ISLAND (0.47%)
State Health and Education
Building Corporation, LOC
Bank of New York 0.86% 7/1/2031 4,400,000(e) 4,400,000
------------
SOUTH CAROLINA (2.57%)
Florence County Hospital
Revenue (McLeod Regional
Medical Center), FGIC
Insured 0.90% 11/1/2015 2,800,000(e) 2,800,000
Rock Hill Utility Systems
Revenue, AMBAC Insured 0.80% 1/1/2023 5,560,000(e) 5,560,000
State Housing Finance
Development Authority,
Guaranty: FHLMC 0.85% 8/1/2031 8,600,000(e) 8,600,000
</Table>
<Table>
<Caption>
MATURITY PRINCIPAL
NAME OF ISSUER(F) YIELD DATE AMOUNT VALUE(A)
- -----------------------------------------------------------------------------
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS.)
SOUTH CAROLINA (CONTINUED)
State Housing Finance
Development Authority
(Oakridge McGuire), LOC
Wachovia Bank 0.85% 7/1/2007 $ 1,890,000(e) $ 1,890,000
State Job Development
Authority (Catholic
Diocese), LOC Bank of
America 0.90% 9/1/2016 4,400,000(e) 4,400,000
State Job Development
Authority (Orangeburg
Regional Medical Center),
AMBAC Insured 0.80% 2/15/2028 1,090,000(e) 1,090,000
------------
24,340,000
------------
SOUTH DAKOTA (0.11%)
Lawrence County PCR, LOC JP
Morgan Chase 0.90% 7/1/2032 1,000,000(e) 1,000,000
------------
TENNESSEE (1.27%)
Chattanooga-Hamilton
County, FSA Insured 1.49% 10/1/2003 2,000,000 2,012,422
Clarksville Public Building
Authority Revenue, LOC
Bank of America 0.85% 11/1/2027 4,690,000(e) 4,690,000
Hamilton County Industrial
Development (Aquarium),
LOC Bank of America 0.85% 3/1/2015 1,100,000(e) 1,100,000
Nashville & Davison County
Health and Educational
Facility (Meharry Medical
College Project), LOC Bank
of America 0.85% 8/1/2018 4,210,000(e) 4,210,000
------------
12,012,422
------------
</Table>
See accompanying notes to investments in securities
and accompanying notes to the financial statements.
25
TAX-FREE MONEY MARKET FUND
INVESTMENTS IN SECURITIES
JULY 31, 2003 (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MATURITY PRINCIPAL
NAME OF ISSUER(F) YIELD DATE AMOUNT VALUE(A)
- -----------------------------------------------------------------------------
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS.)
TEXAS (6.02%)
Austin Industrial
Development Corporation,
LOC Bank One 0.85% 12/1/2014 $ 1,050,000(e) $ 1,050,000
Bexar County Housing
Financial Authority, LOC
FNMA 0.85% 9/15/2026 5,100,000(e) 5,100,000
City of Brownsville Utility
System Revenue, MBIA
Insured 0.80% 9/1/2027 2,885,000(e) 2,885,000
City of Houston GO, FSA
Insured 1.10% 3/1/2004 4,500,000 4,601,391
Corpus Christi Port
Authority, LOC Toronto
Dominion Bank 0.85% 9/1/2014 2,500,000(e) 2,500,000
Gulf Coast IDA , Guaranty
BP Amoco 1.00% 12/1/2003 4,065,000 4,065,000
Harris County Health
Facilities, MBIA Insured 0.92% 10/1/2029 1,000,000(e) 1,000,000
Houston Hotel Occupancy
Tax, AMBAC Insured 1.47% 9/1/2003 3,250,000 3,259,628
Port Development
Corporation Marine
Terminal, LOC CIBC 0.85% 1/15/2014 1,300,000(e) 1,300,000
San Antonio Health
Facilities Authority
(Clinical Foundation
Project), LOC Wells Fargo
Bank 0.90% 6/1/2020 2,200,000(e) 2,200,000
Tarrant County Housing
Finance Corporation
Revenue, FNMA
Collateralized 0.85% 2/15/2018 4,000,000(e) 4,000,000
State Tax & Revenue
Anticipation Note 1.43% 8/29/2003 25,000,000 25,025,526
------------
56,986,545
------------
</Table>
<Table>
<Caption>
MATURITY PRINCIPAL
NAME OF ISSUER(F) YIELD DATE AMOUNT VALUE(A)
- -----------------------------------------------------------------------------
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS.)
UTAH (3.51%)
Intermountain Power Agency,
LOC Bank of Nova Scotia 0.99% 8/13/2003 $12,400,000 $ 12,400,000
Provo Municipal Building
Authority Lease, LOC Wells
Fargo Bank 0.90% 5/1/2012 3,875,000(e) 3,875,000
Salt Lake City Revenue, LOC
Wells Fargo Bank 0.90% 12/1/2021 12,950,000(e) 12,950,000
State Transit Authority
Sales Tax &
Transportation, LOC
Bayerische Landesbank 0.80% 9/1/2030 4,000,000(e) 4,000,000
------------
33,225,000
------------
VIRGINIA (1.01%)
Alexandria IDA (Pooled
Income Project), LOC Bank
of America 0.85% 7/1/2026 3,650,000(e) 3,650,000
Hampton Redevelopment and
Housing Authority MFHR
(Shoreline Apartments
Project), Guaranty FHLMC 0.85% 12/1/2019 2,410,000(e) 2,410,000
Harrisburg Redevelopment
MFHR, LOC Bank One 0.89% 3/1/2016 2,000,000(e) 2,000,000
Lancaster County IDA, LOC
Bank of America 0.85% 1/1/2020 1,475,000(e) 1,475,000
------------
9,535,000
------------
WASHINGTON (4.10%)
King County Association,
LOC Key Bank 0.90% 8/29/2003 5,000,000 4,996,500
Seattle Water System
Revenue, LOC Bayerische
Landesbank 0.70% 9/1/2025 4,800,000(e) 4,800,000
State Economic Development
Revenue (Pioneer Human
Services), LOC U.S. Bank 0.95% 9/1/2018 2,080,000(e) 2,080,000
</Table>
See accompanying notes to investments in securities
and accompanying notes to the financial statements.
26
TAX-FREE MONEY MARKET FUND
INVESTMENTS IN SECURITIES
JULY 31, 2003 (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MATURITY PRINCIPAL
NAME OF ISSUER(F) YIELD DATE AMOUNT VALUE(A)
- -----------------------------------------------------------------------------
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS.)
WASHINGTON (CONTINUED)
State Health Care
Facilities Revenue, MBIA
Insured 1.00% 2/15/2027 $ 350,000(e) $ 350,000
State Housing and Finance
Commission, LOC Wells
Fargo Bank 0.85% 7/1/2028 4,800,000(e) 4,800,000
State Housing and Finance
Commission (Christa), LOC
U.S. Bank 0.90% 7/1/2011 1,000,000(e) 1,000,000
State Housing and Finance
Commission (Riverview
Retirement), LOC U.S. Bank 0.90% 7/1/2022 2,100,000(e) 2,100,000
State Housing and Finance
Commission (Rockwood
Retirement Home), LOC
Wells Fargo Bank 1.00% 1/1/2030 200,000(e) 200,000
State Housing and Finance
Commission (YMCA of
Seattle), LOC U.S. Bank 0.90% 7/1/2011 2,275,000(e) 2,275,000
State Public Power (Nuclear
Supply), LOC JP Morgan
Chase 0.80% 7/1/2018 9,610,000(e) 9,610,000
State Public Power Supply,
MBIA Insured 0.80% 7/1/2012 6,555,000(e) 6,555,000
------------
38,766,500
------------
WISCONSIN (2.26%)
Milwaukee Redevelopment
Authority Revenue (Humane
Society), LOC U.S. Bank 0.90% 3/1/2019 1,200,000(e) 1,200,000
State Health and Education
Facilities Authority
Revenue, FSA Insured 0.90% 12/1/2029 200,000(e) 200,000
</Table>
<Table>
<Caption>
MATURITY PRINCIPAL
NAME OF ISSUER(F) YIELD DATE AMOUNT VALUE(A)
- -----------------------------------------------------------------------------
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS.)
WISCONSIN (CONTINUED)
State Health and Education
Facilities Authority
Revenue, LOC Marshall &
Ilsley Bank 0.95% 12/1/2032 $ 650,000(e) $ 650,000
State Health and Education
Facilities Authority
Revenue, MBIA Insured 0.90% 8/15/2030 5,400,000(e) 5,400,000
State Health and Education
Facilities Authority
Revenue (St. Johns United
Church Project), LOC U.S.
Bank 0.90% 2/1/2030 1,125,000(e) 1,125,000
State School District, LOC
U.S. Bank 1.28% 10/30/2003 12,795,000 12,817,483
------------
21,392,483
------------
WYOMING (0.05%)
Sweetwater County (Pacific
Corporation Project), LOC
Bank One 0.92% 1/1/2014 500,000(e) 500,000
- -----------------------------------------------------------------------------
Total Investments in Securities (amortized cost:
$986,521,867)(b) $986,521,867
- -----------------------------------------------------------------------------
</Table>
See accompanying notes to investments in securities
and accompanying notes to the financial statements.
27
INSTITUTIONAL PRIME MONEY MARKET FUND
INVESTMENTS IN SECURITIES
JULY 31, 2003
- --------------------------------------------------------------------------------
<Table>
<Caption>
MATURITY PRINCIPAL
NAME OF ISSUER(F) YIELD DATE AMOUNT VALUE(A)
- -----------------------------------------------------------------------------
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS.)
COMMERCIAL PAPER & OTHER CORPORATE OBLIGATIONS (100.55%):
- -----------------------------------------------------------------------------
BANKS -- DOMESTIC (17.54%)
Bank One 1.17% 9/17/2003 $20,000,000(d) $ 20,003,278
Citibank 1.21% 9/4/2003 10,000,000 10,000,000
Marshall & Isley 1.75% 12/15/2003 10,000,000 10,130,315
SouthTrust Bank, NA 1.36% 5/24/2004 15,000,000(d) 15,019,269
Wachovia Bank 1.16% 9/8/2003 20,000,000 19,975,617
Wells Fargo Bank 1.23% 8/15/2003 13,000,000 13,014,950
------------
88,143,429
------------
BANKS -- OTHER (13.79%)
Deutsche Bank 1.03% 10/7/2003 10,000,000 10,000,000
Northern Rock PLC 1.21% 8/4/2003 23,000,000(c) 22,997,681
Societe Generale Bank 1.08% 9/10/2003 13,275,000 13,259,144
UBS Paine Webber 1.18% 12/1/2003 3,000,000 3,052,103
Westdeutsche Landesbank 1.23% 8/5/2003 20,000,000 20,000,022
------------
69,308,950
------------
CONGLOMERATES (3.38%)
Fortune Brands Inc. 1.02% 8/19/2003 17,000,000(c) 16,991,330
------------
FINANCIAL -- AUTO (3.45%)
American Honda Finance 0.99% 8/13/2003 12,000,000 11,996,040
Toyota Motor Credit
Corporation 1.04% 9/4/2003 5,340,000(c) 5,334,755
------------
17,330,795
------------
FINANCIAL -- DIVERSIFIED BUSINESS (12.27%)
Citigroup 1.63% 5/4/2004 7,945,000(d) 7,968,341
General Electric Capital
Corporation 1.23% 9/11/2003 7,000,000 7,042,944
Goldman Sachs Group 1.41% 5/10/2004 5,000,000(d) 5,012,925
Goldman Sachs Group 0.97% 9/9/2003 10,000,000 9,989,492
Merrill Lynch & Company 1.59% 8/1/2003 20,000,000(d) 20,000,000
U.S. Bancorp 1.17% 5/15/2004 11,200,000 11,633,525
------------
61,647,227
------------
FINANCIAL -- DIVERSIFIED BUSINESS, ASSET-BACKED (22.30%)
Asset Securitization
Cooperative Corp. 0.93% 8/22/2003 19,700,000(c) 19,689,313
CXC Inc. 0.98% 8/1/2003 22,000,000(c) 22,000,000
Ciesco LP 1.22% 8/7/2003 5,200,000(c) 5,198,943
</Table>
<Table>
<Caption>
MATURITY PRINCIPAL
NAME OF ISSUER(F) YIELD DATE AMOUNT VALUE(A)
- -----------------------------------------------------------------------------
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS.)
COMMERCIAL PAPER & OTHER CORPORATE OBLIGATIONS (CONTINUED)
- -----------------------------------------------------------------------------
FINANCIAL -- DIVERSIFIED BUSINESS, ASSET-BACKED (CONTINUED)
Edison Asset Securitization 0.93% 9/22/2003 $21,000,000(c) $ 20,971,790
Liberty Street Funding 1.04% 10/9/2003 1,293,000(c) 1,290,423
Quincy Capital Corporation 1.06% 8/13/2003 21,940,000(c) 21,932,248
Triple-A One Funding
Corporation 1.03% 8/20/2003 21,000,000(c) 20,988,584
------------
112,071,301
------------
FOOD AND BEVERAGE (1.69%)
Alcon Capital Corporation 1.02% 9/17/2003 8,500,000(c) 8,488,681
------------
GOVERNMENT -- DOMESTIC (9.79%)
Federal Home Loan Bank 1.30% 6/30/2004 5,000,000 5,000,000
Federal Home Loan Bank 1.40% 6/2/2004 5,000,000 5,000,000
Federal Home Loan Mortgage
Corporation 1.02% 10/31/2003 8,136,000 8,115,023
Federal National Mortgage
Association 1.01% 10/15/2003 21,130,000 21,085,759
Federal National Mortgage
Association 1.25% 8/27/2004 10,000,000 10,000,000
------------
49,200,782
------------
HOUSEHOLD PRODUCTS (0.60%)
Colgate -- Palmolive Co. 1.29% 12/1/2003 3,000,000 3,039,364
------------
INSURANCE (5.84%)
New York Life Capital
Corporation 1.00% 9/26/2003 15,330,000(c) 15,306,152
New York Life Capital
Corporation 1.01% 9/3/2003 2,590,000(c) 2,587,602
Prudential Funding
Corporation 1.03% 9/23/2003 11,500,000 11,482,646
------------
29,376,400
------------
PHARMACEUTICAL (7.60%)
Abbott Laboratories 1.60% 10/1/2003 1,000,000 1,006,615
Aventis 0.95% 9/9/2003 15,000,000(c) 14,984,563
Johnson & Johnson 1.22% 8/25/2003 19,227,000(c) 19,211,362
Merck & Company 1.00% 8/6/2003 3,000,000 2,999,583
------------
38,202,123
------------
</Table>
See accompanying notes to investments in securities
and accompanying notes to the financial statements.
28
INSTITUTIONAL PRIME MONEY MARKET FUND
INVESTMENTS IN SECURITIES
JULY 31, 2003 (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MATURITY PRINCIPAL
NAME OF ISSUER(F) YIELD DATE AMOUNT VALUE(A)
- -----------------------------------------------------------------------------
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS.)
COMMERCIAL PAPER & OTHER CORPORATE OBLIGATIONS (CONTINUED)
- -----------------------------------------------------------------------------
UTILITIES -- TELEPHONE (2.30%)
BellSouth Corp. 1.04% 8/7/2003 $ 1,300,000 $ 1,299,775
SBC Communications 1.25% 6/5/2004 10,000,000 10,248,298
------------
11,548,073
- -----------------------------------------------------------------------------
Total Commercial Paper & Other Corporate Obligations
(amortized cost: $505,348,455) $505,348,455
- -----------------------------------------------------------------------------
TAXABLE MUNICIPALS (2.21%):
State of Texas G.O. 1.10% 6/1/2023 11,100,000(e) 11,100,000
- -----------------------------------------------------------------------------
Total Taxable Municipals (amortized cost: $11,100,000) $ 11,100,000
- -----------------------------------------------------------------------------
Total Investment in Securities (amortized cost:
$516,448,455)(b) $516,448,455
- -----------------------------------------------------------------------------
</Table>
See accompanying notes to investments in securities
and accompanying notes to the financial statements.
29
INSTITUTIONAL TAX-FREE MONEY MARKET FUND
INVESTMENTS IN SECURITIES
JULY 31, 2003
- --------------------------------------------------------------------------------
<Table>
<Caption>
MATURITY PRINCIPAL
NAME OF ISSUER(F) YIELD DATE AMOUNT VALUE(A)
- -------------------------------------------------------------------------------
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS.)
ALABAMA (1.21%)
Birmingham, FSA Insured 1.10% 4/1/2004 $ 2,625,000 $ 2,692,645
Stevenson Industrial
Development Board
Environmental Revenue, LOC
Bank of America 0.80% 11/1/2011 250,000(e) 250,000
------------
2,942,645
------------
ARIZONA (1.15%)
Apache County IDR, LOC
Toronto Dominion Bank 0.90% 12/15/2018 1,400,000(e) 1,400,000
Phoenix IDA, LOC Wells
Fargo Bank 0.75% 4/1/2028 1,400,000(e) 1,400,000
------------
2,800,000
------------
CALIFORNIA (4.89%)
Irvine Improvement Bond,
LOC Bank of America 0.85% 9/2/2025 1,373,000(e) 1,373,000
Irvine Ranch Water District
Certificate, LOC Toronto
Dominion 0.85% 8/1/2016 800,000(e) 800,000
Irvine Ranch Water
District, LOC Landesbank
Hessen-Thuringen 0.85% 11/15/2013 700,000(e) 700,000
Irvine Ranch Water
District, LOC State Street
Bank 0.85% 1/1/2021 800,000(e) 800,000
Los Angeles Regional
Airports (LAX), LOC
Societe Generale 1.00% 12/1/2025 1,200,000(e) 1,200,000
State Department Water
Reservoir Revenue, FSA
Insured 0.83% 5/1/2022 6,200,000(e) 6,200,000
State Department Water
Reservoir Revenue, LOC
Bayerische Landesbank 0.85% 5/1/2022 600,000(e) 600,000
State Health Facility
Authority Revenue, MBIA
Insured 0.78% 12/1/2015 250,000(e) 250,000
------------
11,923,000
------------
</Table>
<Table>
<Caption>
MATURITY PRINCIPAL
NAME OF ISSUER(F) YIELD DATE AMOUNT VALUE(A)
- -------------------------------------------------------------------------------
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS.)
COLORADO (6.04%)
Colorado Springs (YMCA
Pikes Peak), LOC Wells
Fargo Bank 0.90% 11/1/2022 $ 1,290,000(e) $ 1,290,000
Colorado Springs Revenue
(Pikes Peak Mental
Health), LOC Wells Fargo
Bank 0.90% 3/15/2023 2,100,000(e) 2,100,000
Crystal Valley Metro
District, LOC Wells Fargo
Bank 0.90% 5/1/2032 1,600,000(e) 1,600,000
Denver City & County
Convention Center, FSA
Insured 0.85% 9/1/2025 1,600,000(e) 1,600,000
Douglas County MFHR (Autumn
Chase), Guaranty: FHLMC 0.85% 12/1/2029 600,000(e) 600,000
Dove Valley Metropolitan
District (Arapahoe
County), LOC BNP Paribas 1.90% 11/1/2003 2,545,000 2,545,000
State Educational and
Cultural Facility
Authority, LOC Wells Fargo
Bank 0.75% 1/1/2033 1,500,000(e) 1,500,000
State Educational and
Cultural Facility
Authority, LOC Wells Fargo
Bank 0.90% 12/1/2033 1,600,000(e) 1,600,000
State Health Facility
Authority Revenue, LOC
Wells Fargo Bank 0.90% 12/1/2020 1,900,000(e) 1,900,000
------------
14,735,000
------------
FLORIDA (10.62%)
Collier County Health
Facilities Authority, LOC
Wachovia Bank 0.85% 12/1/2024 900,000(e) 900,000
Dade County IDA (Dolphins
Stadium), LOC Societe
Generale 0.85% 1/1/2016 1,900,000(e) 1,900,000
Indiana River County
Revenue, LOC Wachovia Bank 0.85% 7/1/2027 2,000,000(e) 2,000,000
</Table>
See accompanying notes to investments in securities
and accompanying notes to the financial statements.
30
INSTITUTIONAL TAX-FREE MONEY MARKET FUND
INVESTMENTS IN SECURITIES
JULY 31, 2003 (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MATURITY PRINCIPAL
NAME OF ISSUER(F) YIELD DATE AMOUNT VALUE(A)
- -------------------------------------------------------------------------------
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS.)
FLORIDA (CONTINUED)
Miami Health Facilities
Authority Revenue, LOC
Bank of America 0.85% 8/1/2020 $ 2,625,000(e) $ 2,625,000
Pinellas County Edl
Facility Authority, LOC
Wachovia Bank 0.99% 8/14/2003 2,800,000 2,800,000
Pinellas County Edl
Facility Authority, LOC
Wachovia Bank 0.95% 8/5/2003 8,700,000 8,700,000
St. Johns County IDA Health
Care (Glenmore St. Johns
Project), LOC LaSalle Bank 0.85% 1/1/2007 500,000(e) 500,000
State Housing Finance
Agency, FHMLC
Collateralized 0.80% 12/1/2005 2,190,000(e) 2,190,000
State Housing Finance
Agency, FHMLC
Collateralized 0.80% 2/1/2008 3,090,000(e) 3,090,000
Sunshine State Government
Finance Committee, AMBAC
Insured 0.80% 7/1/2016 1,200,000(e) 1,200,000
------------
25,905,000
------------
GEORGIA (3.28%)
Clayton County Housing
Authority, FNMA
Collateralized 0.85% 9/1/2026 1,415,000(e) 1,415,000
DeKalb Private Hospital
Authority, LOC Suntrust
Bank 0.85% 3/1/2024 1,700,000(e) 1,700,000
DeKalb Private Hospital
Authority (Children's
Health Care Project), LOC
Suntrust Bank 0.85% 12/1/2028 1,000,000(e) 1,000,000
</Table>
<Table>
<Caption>
MATURITY PRINCIPAL
NAME OF ISSUER(F) YIELD DATE AMOUNT VALUE(A)
- -------------------------------------------------------------------------------
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS.)
GEORGIA (CONTINUED)
Hapeville Development
Authority, LOC Bank of
America 0.85% 11/1/2015 $ 300,000(e) $ 300,000
Marietta Housing Authority
Multifamily Revenue, FNMA
Collateralized 0.85% 5/15/2007 3,600,000(e) 3,600,000
------------
8,015,000
------------
HAWAII (0.86%)
Honolulu City & County GO,
LOC Landesbank
Hessen-Thuringen 0.80% 1/1/2017 2,100,000(e) 2,100,000
------------
IDAHO (0.61%)
State Health Facilities
Revenue (St. Luke's), LOC
Harris Trust & Savings
Bank 0.90% 5/1/2022 1,500,000(e) 1,500,000
------------
ILLINOIS (5.67%)
Chicago O'Hare
International Airport, LOC
Societe Generale 0.80% 1/1/2015 570,000(e) 570,000
Cook County Community
Housing District 218, FSA
Insured 1.40% 12/1/2003 1,150,000 1,144,672
Cook County School District
26, MBIA Insured 1.40% 12/1/2003 1,445,000 1,438,309
Galesburg Revenue (Knox
College), LOC LaSalle Bank 0.95% 3/1/2031 2,300,000(e) 2,300,000
State Development Financial
Authority Revenue, LOC
LaSalle Bank 0.95% 12/1/2029 2,850,000(e) 2,850,000
State Development Financial
Authority Revenue (Council
for Jewish Elderly), LOC
LaSalle Bank 0.85% 3/1/2015 1,250,000(e) 1,250,000
</Table>
See accompanying notes to investments in securities
and accompanying notes to the financial statements.
31
INSTITUTIONAL TAX-FREE MONEY MARKET FUND
INVESTMENTS IN SECURITIES
JULY 31, 2003 (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MATURITY PRINCIPAL
NAME OF ISSUER(F) YIELD DATE AMOUNT VALUE(A)
- -------------------------------------------------------------------------------
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS.)
ILLINOIS (CONTINUED)
State Health Facilities
Authority Revenue, MBIA
Insured 0.80% 7/1/2024 $ 2,590,000(e) $ 2,590,000
State Health Facilities
Authority Revenue, MBIA
Insured 0.90% 8/15/2026 700,000(e) 700,000
University of Illinois
Certificate, MBIA Insured 1.00% 8/15/2003 1,000,000 1,001,413
------------
13,844,394
------------
INDIANA (3.82%)
State Health Facilities
Finance Authority, LOC
U.S. Bank 0.85% 1/1/2022 2,415,000(e) 2,415,000
State Health Facilities
Finance Authority, LOC
Wells Fargo Bank 0.90% 2/1/2031 3,715,000(e) 3,715,000
State Health Facilities
Finance Authority (Capital
Access Designated Pool
Program), LOC Comerica
Bank 0.85% 1/1/2012 600,000(e) 600,000
State Health Facilities
Finance Authority Hospital
Revenue, LOC Comerica Bank 0.85% 11/1/2020 1,900,000(e) 1,900,000
State Hospital Equipment
Finance Authority, MBIA
Insured 0.85% 12/1/2015 700,000(e) 700,000
------------
9,330,000
------------
IOWA (6.55%)
State Finance Authority
Revenue, LOC Wells Fargo
Bank 0.90% 3/1/2019 600,000(e) 600,000
State Finance Authority
Revenue, LOC Wells Fargo
Bank 0.90% 2/1/2023 1,500,000(e) 1,500,000
</Table>
<Table>
<Caption>
MATURITY PRINCIPAL
NAME OF ISSUER(F) YIELD DATE AMOUNT VALUE(A)
- -------------------------------------------------------------------------------
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS.)
IOWA (CONTINUED)
State Finance Authority
Revenue (Burlington
Medical), FSA Insured 0.90% 6/1/2027 $ 1,100,000(e) $ 1,100,000
State Finance Authority
Revenue (Museum
Facilities), LOC Wells
Fargo Bank 0.90% 5/1/2012 1,470,000(e) 1,470,000
State Finance Authority
Revenue (Private
Colleges), LOC U.S. Bank 0.95% 7/1/2031 500,000(e) 500,000
State Finance Authority
Revenue (Small Business
Development), Guaranty:
E.I. DuPont de Nemours 0.90% 11/1/2015 2,300,000(e) 2,300,000
State Higher Education Loan
Authority Revenue, LOC
Bank of America 0.90% 7/1/2025 700,000(e) 700,000
State Higher Education Loan
Authority Revenue, LOC
LaSalle Bank 0.87% 4/1/2027 2,000,000(e) 2,000,000
State Higher Education Loan
Authority Revenue, LOC
LaSalle Bank 0.90% 11/1/2030 1,100,000(e) 1,100,000
State Higher Education Loan
Authority Revenue, LOC
LaSalle Bank 0.90% 11/1/2032 2,000,000(e) 2,000,000
Webster County Education
Loan, LOC Wells Fargo Bank 0.90% 7/1/2020 1,205,000(e) 1,205,000
Woodbury County Educational
Facilities Revenue, LOC
U.S. Bank 0.95% 11/1/2016 1,500,000(e) 1,500,000
------------
15,975,000
------------
</Table>
See accompanying notes to investments in securities
and accompanying notes to the financial statements.
32
INSTITUTIONAL TAX-FREE MONEY MARKET FUND
INVESTMENTS IN SECURITIES
JULY 31, 2003 (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MATURITY PRINCIPAL
NAME OF ISSUER(F) YIELD DATE AMOUNT VALUE(A)
- -------------------------------------------------------------------------------
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS.)
KANSAS (1.23%)
Manhattan Industrial
Revenue (Parker Hannifin
Project), LOC Wachovia
Bank 0.85% 9/1/2009 $ 2,000,000(e) $ 2,000,000
State Development Authority
Health Care Revenue
(Stormont Vail Health
Care), MBIA Insured 0.95% 11/15/2023 100,000(e) 100,000
State Development Finance
Authority (Shalom
Obligated Group), LOC
LaSalle Bank 0.90% 11/15/2028 900,000(e) 900,000
------------
3,000,000
------------
KENTUCKY (1.24%)
Jefferson County Capital
Appreciation Bond, FSA
Insured 1.12% 8/15/2003 3,035,000 3,033,325
------------
LOUISIANA (3.48%)
State Offshore Terminal
Authority, LOC Bank One 0.90% 10/1/2019 3,500,000(e) 3,500,000
State Public Facilities
Authority (Christus
Health), AMBAC Insured 0.99% 8/12/2003 5,000,000 5,000,000
------------
8,500,000
------------
MARYLAND (7.41%)
Baltimore Construction
Public Improvement, FGIC
Insured 0.85% 10/1/2022 6,500,000(e) 6,500,000
Montgomery County Housing
Opportunities Community
MFHR (Oakwood Apartments),
LOC FHLMC 0.85% 11/1/2007 8,900,000(e) 8,900,000
State Health & Higher
Education Facility, LOC
Bank of America 0.85% 1/1/2029 2,680,000(e) 2,680,000
------------
18,080,000
------------
</Table>
<Table>
<Caption>
MATURITY PRINCIPAL
NAME OF ISSUER(F) YIELD DATE AMOUNT VALUE(A)
- -------------------------------------------------------------------------------
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS.)
MASSACHUSETTS (0.82%)
State Water Resource
Authority, AMBAC Insured 0.80% 4/1/2028 $ 2,000,000(e) $ 2,000,000
------------
MICHIGAN (6.07%)
Kent Hospital Financial
Authority (Spectrum
Health), MBIA Insured 0.85% 1/15/2026 300,000(e) 300,000
State G.O. 0.95% 10/14/2003 10,000,000 10,000,000
State Grant Anticipation
Notes, FSA Insured 0.85% 9/15/2008 3,900,000(e) 3,900,000
State Strategic Fund (Clark
Retirement), LOC Fifth
Third Bank 0.85% 6/1/2031 600,000(e) 600,000
------------
14,800,000
------------
MINNESOTA (3.90%)
Arden Hills Housing &
Health Care, LOC U.S. Bank 0.95% 9/1/2029 200,000(e) 200,000
City of Cohasset (MN Power
& Light Project), LOC ABN
AMRO 0.90% 6/1/2020 1,785,000(e) 1,785,000
Hennepin County G.O. 0.75% 12/1/2020 1,450,000(e) 1,450,000
Mendota Heights Housing
Mortgage Revenue, LOC
Wells Fargo Bank 0.85% 11/1/2031 2,175,000(e) 2,175,000
Minneapolis Revenue
(University Gateway
Project) LOC Wells Fargo
Bank 0.80% 6/1/2032 500,000(e) 500,000
State Aid Anticipatory
Borrowing Program 1.47% 8/20/2003 2,000,000 2,000,800
State Higher Education Loan
Facility Authority Review,
LOC Harris Trust & Savings
Bank 0.90% 10/1/2030 1,400,000(e) 1,400,000
------------
9,510,800
------------
</Table>
See accompanying notes to investments in securities
and accompanying notes to the financial statements.
33
INSTITUTIONAL TAX-FREE MONEY MARKET FUND
INVESTMENTS IN SECURITIES
JULY 31, 2003 (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MATURITY PRINCIPAL
NAME OF ISSUER(F) YIELD DATE AMOUNT VALUE(A)
- -------------------------------------------------------------------------------
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS.)
MISSISSIPPI (0.20%)
Jackson County PCR,
Guaranty: ChevronTexaco
Corporation 0.85% 6/1/2023 $ 500,000(e) $ 500,000
------------
MISSOURI (0.96%)
State Health And
Educational Facilities
Authority (Bethesda), LOC
U.S. Bank 0.95% 8/1/2031 500,000(e) 500,000
State Health And
Educational Facilities
Authority (St. Francis
Medical Center), LOC Dexia
CLF 0.90% 6/1/2026 1,835,000(e) 1,835,000
------------
2,335,000
------------
MONTANA (0.23%)
Forsyth PCR (Pacificorp
Project), LOC JP Morgan
Chase 0.92% 1/1/2018 550,000(e) 550,000
------------
NEBRASKA (1.52%)
Lancaster County Hospital
Authority (Immanuel), LOC
LaSalle Bank 0.90% 7/1/2030 3,700,000(e) 3,700,000
------------
NEVADA (1.07%)
Clark County Airport
Revenue, LOC Bayerische
Landesbank 0.76% 7/1/2029 1,400,000(e) 1,400,000
State Referendum & Capital
Improvement, MBIA Insured 1.10% 11/1/2003 1,200,000 1,205,668
------------
2,605,668
------------
</Table>
<Table>
<Caption>
MATURITY PRINCIPAL
NAME OF ISSUER(F) YIELD DATE AMOUNT VALUE(A)
- -------------------------------------------------------------------------------
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS.)
NEW JERSEY (2.21%)
State Economic Development
Authority Water
Facilities, LOC Landesbank
Hessen-Thuringen 0.84% 11/1/2026 $ 1,900,000(e) $ 1,900,000
State Sports & Exposition
Authority, MBIA Insured 0.80% 9/1/2024 3,500,000(e) 3,500,000
------------
5,400,000
------------
NEW YORK (2.95%)
New York City GO, AMBAC
Insured 0.85% 8/15/2018 300,000(e) 300,000
New York City GO, LOC JP
Morgan Chase 0.85% 8/1/2017 1,000,000(e) 1,000,000
New York City GO, LOC JP
Morgan Chase 0.91% 8/1/2017 200,000(e) 200,000
New York City GO, LOC JP
Morgan Chase 0.91% 8/15/2018 875,000(e) 875,000
New York City GO, LOC JP
Morgan Chase 0.91% 8/15/2020 150,000(e) 150,000
New York City GO, LOC JP
Morgan Chase 0.91% 8/1/2021 100,000(e) 100,000
New York City GO, MBIA
Insured 0.85% 8/1/2014 1,800,000(e) 1,800,000
New York City Municipal
Water Finance Authority,
FGIC Insured 0.85% 6/15/2023 100,000(e) 100,000
State Energy Resource &
Development Authority
Revenue, LOC Mellon Bank 0.85% 2/1/2029 500,000(e) 500,000
State Energy Resource &
Development Authority PCR,
LOC Bank One 0.85% 6/1/2029 700,000(e) 700,000
State Local Government
Assistance Program, LOC
Bank of Nova Scotia 0.73% 4/1/2025 985,000(e) 985,000
Triborough Bridge & Tunnel
Authority, FSA Insured 0.78% 1/1/2031 500,000(e) 500,000
------------
7,210,000
------------
</Table>
See accompanying notes to investments in securities
and accompanying notes to the financial statements.
34
INSTITUTIONAL TAX-FREE MONEY MARKET FUND
INVESTMENTS IN SECURITIES
JULY 31, 2003 (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MATURITY PRINCIPAL
NAME OF ISSUER(F) YIELD DATE AMOUNT VALUE(A)
- -------------------------------------------------------------------------------
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS.)
NORTH DAKOTA (1.01%)
Ward County Health Care
Revenue, LOC U.S. Bank 0.95% 7/1/2029 $ 2,460,000(e) $ 2,460,000
------------
OHIO (0.76%)
Cuyahoga County Hospital
Revenue, LOC JP Morgan
Chase 0.85% 1/1/2016 300,000(e) 300,000
State Housing Finance
Agency MFHR (Kenwood
Retirement), LOC JP Morgan
Chase 0.90% 12/1/2015 800,000(e) 800,000
Warren County Health Care
Facilities (Otterbein
Homes Project), LOC Fifth
Third Bank 0.93% 7/1/2023 745,000(e) 745,000
------------
1,845,000
------------
PENNSYLVANIA (0.82%)
Bedford County IDA, LOC
Wachovia Bank 1.20% 11/1/2005 1,800,000(e) 1,800,000
Washington County (Higher
Education Pool Lease), LOC
Wachovia Bank 0.93% 11/1/2005 200,000(e) 200,000
------------
2,000,000
------------
SOUTH DAKOTA (1.86%)
Lawrence County PCR, LOC JP
Morgan Chase 0.90% 7/1/2032 2,300,000(e) 2,300,000
Lower Brule Sioux Tribe,
LOC Wells Fargo Bank 0.90% 12/1/2011 2,230,000(e) 2,230,000
------------
4,530,000
------------
TENNESSEE (0.70%)
Clarksville Public Building
Authority, MBIA Insured 0.80% 7/1/2013 1,700,000(e) 1,700,000
------------
</Table>
<Table>
<Caption>
MATURITY PRINCIPAL
NAME OF ISSUER(F) YIELD DATE AMOUNT VALUE(A)
- -------------------------------------------------------------------------------
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS.)
TEXAS (11.57%)
Angelina & Neches River
Authority, LOC Bank of
America 0.92% 5/1/2014 $ 300,000(e) $ 300,000
Austin County Industrial
Development Corporation,
LOC Bank One 0.85% 12/1/2014 2,600,000(e) 2,600,000
Bexar County Housing
Financial Authority, LOC
FNMA 0.85% 9/15/2026 1,400,000(e) 1,400,000
Cypress-Fairbanks ISD, PSF
Guaranty 1.10% 2/1/2004 1,750,000 1,740,437
Harris County Hospital, LOC
Landesbank
Hessen-Thuringen 1.00% 8/14/2003 10,000,000 10,000,000
Southlake, FSA Insured 1.15% 2/15/2004 1,025,000 1,029,643
State Public Building
Authority Revenue, MBIA
Insured 1.63% 8/1/2003 1,535,000 1,535,000
State Public Finance
Authority Building
Revenue, MBIA Insured 0.90% 2/1/2004 1,650,000 1,642,611
State Tax & Revenue
Anticipation Note 1.02% 8/29/2003 6,400,000 6,408,009
United ISD, PSF Guaranty 1.05% 8/15/2003 1,570,000 1,573,592
------------
28,229,292
------------
UTAH (0.61%)
Carbon County PCR
(Pacificorp), AMBAC
Insured 0.90% 11/1/2024 500,000(e) 500,000
Sanpete County School
Facility Revenue, LOC U.S.
Bank 0.80% 8/1/2028 1,000,000(e) 1,000,000
------------
1,500,000
------------
</Table>
See accompanying notes to investments in securities
and accompanying notes to the financial statements.
35
INSTITUTIONAL TAX-FREE MONEY MARKET FUND
INVESTMENTS IN SECURITIES
JULY 31, 2003 (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MATURITY PRINCIPAL
NAME OF ISSUER(F) YIELD DATE AMOUNT VALUE(A)
- -------------------------------------------------------------------------------
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS.)
VIRGINIA (1.23%)
Alexandria IDA Pooled
Income Project, LOC Bank
of America 0.85% 7/1/2026 $ 1,150,000(e) $ 1,150,000
Roanoke County IDA
Healthcare, LOC Wachovia
Bank 0.85% 10/1/2015 1,850,000(e) 1,850,000
------------
3,000,000
------------
WASHINGTON (1.56%)
Spokane ISD 81, FSA Insured 0.93% 12/1/2003 2,100,000 2,106,233
State Public Power Supply,
LOC Bank of America 0.80% 7/1/2017 700,000(e) 700,000
State Public Power Supply,
MBIA Insured 0.80% 7/1/2012 1,000,000(e) 1,000,000
------------
3,806,233
------------
WISCONSIN (4.90%)
State Health & Education
Facilities Authority,
AMBAC Insured 0.90% 8/15/2030 1,050,000(e) 1,050,000
State Health & Education
Facilities Authority, FSA
Insured 0.90% 12/1/2029 800,000(e) 800,000
State Health & Education
Facilities Authority
Revenue, LOC LaSalle Bank 0.86% 5/1/2030 4,100,000(e) 4,100,000
State Health & Education
Facilities Authority
Revenue, LOC U.S. Bank 0.90% 5/1/2032 1,500,000(e) 1,500,000
State School District Cash
Flow Management
Certificate, LOC U.S. Bank 1.48% 9/23/2003 4,500,000 4,504,822
------------
11,954,822
------------
</Table>
<Table>
<Caption>
MATURITY PRINCIPAL
NAME OF ISSUER(F) YIELD DATE AMOUNT VALUE(A)
- -------------------------------------------------------------------------------
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS.)
WYOMING (0.41%)
Sweetwater County (Pacific
Corporation Project), LOC
Bank One 0.92% 1/1/2014 $ 1,000,000(e) $ 1,000,000
------------
- -------------------------------------------------------------------------------
Total Investments in Securities
(amortized cost: $252,320,179)(b) $252,320,179
- -------------------------------------------------------------------------------
</Table>
See accompanying notes to investments in securities
and accompanying notes to the financial statements.
36
NOTES TO INVESTMENTS IN SECURITIES:
- --------------------------------------------------------------------------------
(a) Securities are valued in accordance with procedures
described in note 2 to the financial statements.
(b) Also represents cost for federal income tax purposes.
(c) All or a portion consists of commercial paper sold within
terms of a private placement memorandum, exempt from
registration under section 4(2) of the Securities Act of
1933, as amended, and may be sold only to dealers in that
program or other "accredited investors." These securities
have been determined to be liquid under guidelines
established by the Board of Directors.
(d) All or a portion consists of short-term securities with
interest rates that reset at set intervals at rates that are
based on specific market indices. Rate shown is the
effective rate on July 31, 2003.
(e) Interest rate varies to reflect current market conditions;
rate shown is the effective rate on July 31, 2003. The
maturity date shown represents final maturity. However, for
purposes of Rule 2a-7, maturity is the next interest rate
reset date at which time the security can be put back to the
issuer.
(f) Portfolio abbreviations:
<Table>
AMBAC - Ambac Assurance Corporation
FGIC - Financial Guaranty Insurance Co.
FHLMC - Federal Home Loan Mortgage Corporation
FNMA - Federal National Mortgage Association
FSA - Financial Security Assurance Inc.
GO - General Obligation
IDA - Industrial Development Authority
IDR - Industrial Development Revenue
ISD - Independent School District
LOC - Letter of Credit
MBIA - MBIA Insurance Corporation
MFHR - Multi-Family Housing Revenue
PCR - Pollution Control Revenue
PSF - Permanent School Fund
</Table>
See accompanying notes to the financial statements.
37
INDEPENDENT AUDITORS' REPORT
- --------------------------------------------------------------------------------
To the Board of Directors and Shareholders of the Great Hall Investment Funds,
Inc.
We have audited the accompanying statements of assets and liabilities, including
the schedule of investments, of Great Hall Investment Funds, Inc., which
consists of Prime Money Market Fund, U.S. Government Money Market Fund, Tax-Free
Money Market Fund, Institutional Prime Money Market Fund, and Institutional
Tax-Free Money Market Fund (collectively the "Funds") as of July 31, 2003, the
related statements of operations, changes in net assets and the financial
highlights for the year then ended. 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 Fund's financial statements and financial highlights
for the periods ended prior to July 31, 2003 were audited by other auditors
whose report dated August 30, 2002, expressed an unqualified opinion.
We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. 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. Our procedures included confirmation of
securities owned as of July 31, 2003, by correspondence with the Funds'
custodian and brokers. 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 referred to
above present fairly, in all material respects, the financial position of each
of the Funds at July 31, 2003 the results of their operations, changes in their
net assets, and their financial highlights for the year then ended in conformity
with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Chicago, Illinois
November 5, 2003
38
DIRECTORS AND OFFICERS
- --------------------------------------------------------------------------------
Directors and officers of Great Hall Investment Funds, Inc., together with
information as to their principal occupations during the past five years, are
set forth below. The Funds' Statement of Additional Information includes
additional information about the directors and can be obtained (without charge)
by calling 1-800-934-6674 or by writing to the Funds at Great Hall Investment
Funds, Inc., 60 South Sixth Street, Minneapolis, Minnesota 55402. Unless
otherwise indicated below, the address of each director and officer is the same
as the Funds.
<Table>
<Caption>
NUMBER OF
TERM OF FUNDS IN
OFFICE FUND OTHER
POSITION(S) AND LENGTH COMPLEX DIRECTORSHIPS
HELD WITH OF TIME PRINCIPAL OCCUPATION(S) OVERSEEN HELD BY
NAME, ADDRESS AND AGE FUNDS SERVED(1) DURING PAST FIVE YEARS BY DIRECTOR DIRECTOR(2)
- ----------------------------------------------------------------------------------------------------------------------
INDEPENDENT DIRECTORS:
T. Geron ("Jerry") Bell Director Director of President of Twins 26 None
34 Kirby Puckett Place Great Hall Sports, Inc. since 1987.
Minneapolis, MN 55412 Investment
Age: 62 Funds, Inc.
since 1993.
Sandra J. Hale Director Director of President of Enterprise 26 None
Age: 68 Great Hall Management, Int'l. since
Investment 1991.
Funds, Inc.
since 1991.
Ronald James Director Director of President and Chief 26 None
MJH 300, 1000 Lasalle Great Hall Executive Officer,
Minneapolis, MN 55403-2005 Investment Center for Ethical
Age: 52 Funds, Inc. Business Cultures since
since 1992. 2000; President and
Chief Executive Officer
of Ceridian Corporation
(human resources
services) from 1996 to
1998.
Jay H. Wein Director Director of Independent investor and 26 None
5305 Elmridge Circle Great Hall business consultant
Excelsior, MN 55331 Investment since 1989.
Age: 71 Funds, Inc.
since 1991.
</Table>
39
DIRECTORS AND OFFICERS (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
NUMBER OF
TERM OF FUNDS IN
OFFICE FUND OTHER
POSITION(S) AND LENGTH COMPLEX DIRECTORSHIPS
HELD WITH OF TIME PRINCIPAL OCCUPATION(S) OVERSEEN HELD BY
NAME, ADDRESS AND AGE FUNDS SERVED(1) DURING PAST FIVE YEARS BY DIRECTOR DIRECTOR(2)
- ----------------------------------------------------------------------------------------------------------------------
OFFICERS:
Jennifer Lammers Chief Chief Managing Director, N/A N/A
Age: 42 Executive Executive Director of Mutual Fund
Officer Officer of Services of the Adviser
Great Hall since 2003; Vice
Investment President, Director of
Funds, Inc. Finance of the Adviser
since 2003. from 2001 to 2003;
Compliance Officer of
the Adviser from 2000 to
2001; Vice President and
Manager Financial
Reporting and Fund
Accounting of RBC Dain
Rauscher Inc. since 2000
and Manager External
Reporting from 1998 to
2000; Controller, PROSAR
Incorporated from 1997
to 1998.
Raye C. Kanzenbach Chief Chief Senior Managing Director N/A N/A
Age: 54 Investment Investment and Chief Investment
Officer Officer of Officer of the Adviser.
Great Hall
Investment
Funds, Inc.
since 1997.
Christopher J. Tomas Treasurer, Treasurer, Vice President of RBC N/A N/A
Age: 33 Chief Chief Dain Rauscher Inc. and
Financial Financial Finance Manager of the
Officer Officer, and Adviser since 2001;
Principal Senior Financial Analyst
Accounting of RBC Dain Rauscher
Officer of Inc. from 1999 to 2001;
Great Hall Financial Analyst of RBC
Investment Dain Rauscher Inc. from
Funds, Inc. 1997 to 1999.
since 2003.
</Table>
40
DIRECTORS AND OFFICERS (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
NUMBER OF
TERM OF FUNDS IN
OFFICE FUND OTHER
POSITION(S) AND LENGTH COMPLEX DIRECTORSHIPS
HELD WITH OF TIME PRINCIPAL OCCUPATION(S) OVERSEEN HELD BY
NAME, ADDRESS AND AGE FUNDS SERVED(1) DURING PAST FIVE YEARS BY DIRECTOR DIRECTOR(2)
- ----------------------------------------------------------------------------------------------------------------------
Martin A. Cramer Vice Chief Legal and Regulatory N/A N/A
Age: 53 President, Compliance Affairs Vice President
Assistant Officer, and and Secretary, Jones &
Secretary, AML Babson, Inc. (management
Chief Compliance company) since 1993;
Compliance Officer of Secretary, IMA
Officer, and Great Hall (management company)
AML Investment since 1997; Vice
Compliance Funds, Inc. President and Secretary,
Officer since 2003. Babson Funds complex
since 1993; Vice
President and Secretary,
Buffalo Funds complex
since 1994; Vice
President and Secretary,
J&B Funds since 2000;
Secretary, Gold Bank
Funds since 2001;
Secretary, Investors
Mark Series Fund, Inc.
since 1997.
Laura M. Moret Secretary Secretary of Vice President and N/A N/A
Age: 49 Great Hall Senior Associate Counsel
Investment of RBC Dain Rauscher
Funds, Inc. Inc., 2002 to present;
since 2003. Vice President and Group
Counsel, American
Express Financial
Advisers, 1995-2002;
Secretary(3).
Michael Allen Vice Vice Managing Director of the N/A N/A
Age: 54 President President of Adviser since 2003;
Great Hall Manager, RBC Centura
Investment Bank 1998 to 2003;
Funds, Inc. Manager, Trustmark
since 2003. National Bank 1988 to
1998; Vice President(3).
</Table>
(1)Directors of the Funds serve a term of indefinite length until earlier of
death, resignation, removal or disqualification, and stand for re-election by
shareholders only as and when required under the Investment Company Act.
Officers of the Funds serve one year terms, subject to annual reappointment
by the Board of Directors.
(2)Only includes directorships held in a company with a class of securities
registered pursuant to Section 12 of the Securities and Exchange Act of 1934
or subject to the requirements of Section 15(d) of the Securities and
Exchange Act of 1934, or any company registered as an investment company
under the Investment Company Act.
(3)J&B Funds; RBC Funds, Inc.; David L. Babson Growth Fund, Inc.; Shadow Stock
Fund, Inc.; Babson Enterprise Fund, Inc.; Babson Enterprise Fund II, Inc.;
Babson Value Fund, Inc.; D.L. Babson Money Market Fund, Inc.; D.L. Babson
Tax-Free Income Fund, Inc.; D.L. Babson Bond Trust; Babson-Stewart Ivory
International Fund, Inc.; Investors Mark Series Fund, Inc.
41
FEDERAL TAX INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
Information for federal income tax purposes is presented as an aid for
shareholders in reporting the distributions shown below:
Per Share distributions paid during the fiscal year ended July 31, 2003:
<Table>
<Caption>
PRIME U.S. GOVERNMENT
MONEY MARKET FUND MONEY MARKET FUND
-------------------- -------------------- TAX-FREE INST'L PRIME INST'L TAX-FREE
INVESTOR RESERVE INVESTOR RESERVE MONEY MONEY MONEY
PAYABLE DATE SHARES SHARES SHARES SHARES MARKET FUND MARKET FUND MARKET FUND
- ---------------------------------------------------------------------------------------------------------------------
September 2 $0.00106 $0.00080 $0.00095 $0.00069 $0.00067 $0.00141 $0.00093
September 30 0.00087 0.00065 0.00078 0.00056 0.00069 0.00116 0.00088
October 31 0.00095 0.00070 0.00087 0.00062 0.00087 0.00128 0.00109
December 2 0.00087 0.00063 0.00079 -- 0.00071 0.00123 0.00093
January 2 0.00076 0.00051 0.00065 -- 0.00052 0.00110 0.00077
February 3 0.00066 0.00042 0.00056 -- 0.00039 0.00093 0.00061
March 3 0.00057 0.00033 0.00048 -- 0.00040 0.00085 0.00065
March 31 0.00051 0.00028 0.00044 -- 0.00040 0.00081 0.00063
April 30 0.00048 0.00025 0.00044 -- 0.00048 0.00082 0.00073
June 2 0.00049 0.00024 0.00045 -- 0.00053 0.00086 0.00081
June 30 0.00041 0.00018 0.00037 -- 0.00036 0.00075 0.00061
July 31 0.00037 0.00013 0.00031 -- 0.00018 0.00072 0.00048
-------- -------- -------- -------- -------- -------- --------
$0.00800 $0.00512 $0.00709 $0.00187 $0.00620 $0.01192 $0.00912
======== ======== ======== ======== ======== ======== ========
</Table>
SOURCE OF DISTRIBUTIONS
During the period ending July 31, 2003, 100% of the Tax-Free Money Market Fund
and Institutional Tax-Free Money Market Fund distributions were derived from
interest on municipal securities and qualify as exempt interest dividends for
federal tax purposes.
FEDERAL TAXATION
Exempt interest dividends are exempt from federal income taxes and should not be
included in shareholders' gross income but need to be reported on the income tax
return for information purposes. Each shareholder should consult a tax adviser
about reporting this income for state and local tax purposes. By early February
2004, the Funds expect to provide the shareholders with information regarding
the percentage of distributions exempt from federal income taxes and a breakdown
setting forth states from which income was earned.
Income distributions for the Prime Money Market Fund, U.S. Government Money
Market Fund, and Institutional Prime Money Market Fund are taxable as ordinary
dividend income and none qualify for the corporate dividends received deduction.
Each shareholder should consult a tax adviser about reporting this income for
state and local tax purposes.
42
The Great Hall Family of funds is managed to provide competitive returns at
minimal risk to the investor. With five money market funds available for both
institutional and individual investors, the Funds offer a diversity of options
for today's informed investor.
Managed by Voyageur Asset Management Inc., the Great Hall Investment Funds
follow a rigorous research process. This process involves proprietary analysis,
diligent trade execution, and an attention to detail that is critical to the
success of your investment. With any of our five funds, the Great Hall
management team is looking out for your future.
Enhancing returns. Protecting your money. That's the philosophy of the Great
Hall family of funds. That's the philosophy that works for you.
<Table>
PRSRT STD
Great Hall Investment Funds, Inc. US POSTAGE
60 South Sixth Street PAID
Minneapolis, MN 55402 PERMIT 100
(800) 934-6674 MPLS MN
</Table>
M4111 (9/03)
ITEM 2. CODE OF ETHICS.
Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics 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 the registrant has not adopted such a code of ethics,
explain why it has not done so.
THE REGISTRANT HAS ADOPTED A CODE OF ETHICS THAT APPLIES TO THE
REGISTRANT'S PRINCIPAL EXECUTIVE OFFICER, PRINCIPAL FINANCIAL OFFICER,
PRINCIPAL ACCOUNTING OFFICER OR CONTROLLER, OR PERSONS PERFORMING SIMILAR
FUNCTIONS. THIS CODE OF ETHICS IS INCLUDED AS EXHIBIT 10 (a)(1).
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of directors has
determined 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.
(2) If the registrant provides the disclosure required by
paragraph (a)(1)(i) of this Item, it must disclose the name of the audit
committee financial expert and whether that person is "independent." In order to
be considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of directors, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or
other compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as
defined in Section 2(a)(19) of the Act (15 U.S.C. 80a-
2(a)(19)).
(3) If the registrant provides the disclosure required by
paragraph (a)(1)(ii) of this Item, it must explain why it does not
have an audit committee financial expert.
3(a)(1) THE REGISTRANT'S BOARD OF DIRECTORS HAS DETERMINED THAT THE REGISTRANT
HAS AT LEAST ONE AUDIT COMMITTEE FINANCIAL EXPERT SERVING ON ITS AUDIT
COMMITTEE.
3(a)(2) THE AUDIT COMMITTEE FINANCIAL EXPERT IS JAY H. WEIN. HE IS AN
INDEPENDENT DIRECTOR AND IS INDEPENDENT FOR PURPOSES OF ITEM 3(a)(2).
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption Audit Fees, the aggregate fees billed
for each of the last two fiscal years for professional services rendered by the
principal accountant for the audit of the registrant's annual financial
statements or services that are normally provided by the accountant in
connection with statutory and regulatory filings or engagements for those fiscal
years.
(b) Disclose, under the caption Audit-Related Fees, the aggregate fees
billed in each of the last two fiscal years for assurance and related services
by the principal accountant that are reasonably related to the performance of
the audit of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
(c) Disclose, under the caption Tax Fees, the aggregate fees billed in
each of the last two fiscal years for professional services rendered by the
principal accountant for tax compliance, tax advice, and tax planning.
Registrants shall describe the nature of the services comprising the fees
disclosed under this category.
(d) Disclose, under the caption All Other Fees, the aggregate fees
billed in each of the last two fiscal years for products and services provided
by the principal accountant, other than the services reported in paragraphs (a)
through (c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
(e) (1) Disclose the audit committee's pre-approval policies and
procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
(2) Disclose the percentage of services described in each of
paragraphs (b) through (d) of this Item that were approved by the audit
committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) If greater than 50 percent, disclose the percentage of hours
expended on the principal accountant's engagement to audit the registrant's
financial statements for the most recent fiscal year that were attributed to
work performed by persons other than the principal accountant's full-time,
permanent employees.
(g) Disclose the aggregate non-audit fees billed by the registrant's
accountant for services rendered to the registrant, and rendered to the
registrant's investment adviser (not including any sub-adviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the adviser that provides ongoing services to the registrant for
each of the last two fiscal years of the registrant.
(h) Disclose whether the registrant's audit committee of the board of
directors has considered whether the provision of nonaudit services that were
rendered to the registrant's investment adviser (not including any subadviser
whose role is primarily portfolio management and is subcontracted with or
overseen by another investment adviser), and any entity controlling, controlled
by, or under common control with the investment adviser that provides ongoing
services to the registrant that were not pre-approved pursuant to paragraph
(c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the
principal accountant's independence.
ONLY EFFECTIVE FOR ANNUAL REPORTS WITH PERIODS ENDING AFTER DECEMBER 15, 2003.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
NOT APPLICABLE.
ITEM 6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual
report on this Form N-CSR must, unless it invests exclusively in non-voting
securities, describe the policies and procedures that it uses to determine how
to vote proxies relating to portfolio securities, including the procedures that
the company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities. NOT APPLICABLE.
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive
and principal financial officers, or persons performing similar functions,
regarding 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))) as
of a date within 90 days of the filing date of the report that includes the
disclosure required by this paragraph, based on the evaluation of these controls
and procedures required by Rule 30a-3(b) under the Act (17 CFR 270.30a-3(b)) and
Rules 13a-15(b) or 15d-15(b) under the Exchange Act (17 CFR 240.13a-15(b) or
240.15d-15(b)).
IN THE OPINION OF THE PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL
OFFICER, BASED ON THEIR EVALUATION, THE REGISTRANT'S DISCLOSURE CONTROLS AND
PROCEDURES ARE ADEQUATELY DESIGNED AND ARE OPERATING EFFECTIVELY TO ENSURE (i)
THAT MATERIAL INFORMATION RELATING TO THE REGISTRANT, INCLUDING ITS CONSOLIDATED
SUBSIDIARIES, IS MADE KNOWN TO THEM BY OTHERS WITHIN THOSE ENTITIES,
PARTICULARLY DURING THE PERIOD IN WHICH THIS REPORT IS BEING PREPARED; AND (ii)
THAT INFORMATION REQUIRED TO BE DISCLOSED BY THE REGISTRANT ON FORM N-CSR IS
RECORDED, PROCESSED, SUMMARIZED AND REPORTED WITHIN THE TIME PERIODS SPECIFIED
IN THE SECURITIES AND EXCHANGE COMMISSION'S RULES AND FORMS.
(b) Disclose any change in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) 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.
THERE WERE NO CHANGES IN THE REGISTRANT'S INTERNAL CONTROL OVER FINANCIAL
REPORTING THAT OCCURRED DURING THE REGISTRANT'S MOST RECENT FISCAL HALF-YEAR
(THE REGISTRANT'S SECOND FISCAL HALF-YEAR IN THE CASE OF AN ANNUAL REPORT) THAT
HAVE MATERIALLY AFFECTED OR ARE REASONABLY LIKELY TO MATERIALLY AFFECT, THE
REGISTRANT'S INTERNAL CONTROL OVER FINANCIAL REPORTING.
ITEM 10. EXHIBITS.
(a) File the exhibits listed below as part of this Form. Letter or
number the exhibits in the sequence indicated.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of
the disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
THE CODE OF ETHICS THAT IS THE SUBJECT OF THE DISCLOSURE REQUIRED BY ITEM 2 IS
ATTACHED HERETO.
(a)(2) A separate certification for each principal executive officer
and principal financial officer of the registrant as required by Rule 30a-2
under the Act (17 CFR 270.30a-2). CERTIFICATIONS PURSUANT TO SECTION 302 OF THE
SARBANES-OXLEY ACT OF 2002 ARE ATTACHED HERETO.
(b) A separate or combined certification for each principal executive
officer and principal officer of the registrant as required by Rule 30a-2(b)
under the Act of 1940. CERTIFICATIONS PURSUANT TO SECTION 906 OF THE SARBANES-
OXLEY ACT OF 2002 ARE 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.
(Registrant) Great Hall Investment Funds, Inc.
--------------------------------------------------------------------
By (Signature and Title)* Jennifer Lammers, Chief Executive Officer
-------------------------------------------------------
Date 11/21/03
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 (Signature and Title)* Jennifer Lammers, Chief Executive Officer
-------------------------------------------------------
Date 11/21/03
By (Signature and Title)* Chris Tomas, Chief Financial Officer
-------------------------------------------------------
Date 11/21/03
* Print the name and title of each signing officer under his or her signature.