<Page>
-----------------------------
OMB APPROVAL
-----------------------------
OMB Number: 3235-0570
Expires: November 30, 2005
Estimated average burden
hours per response....... 5.0
-----------------------------
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-03313
---------------------------------------------
First American Funds, Inc.
- -------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
800 Nicollet Mall Minneapolis, MN 55402
- -------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Robert H. Nelson 800 Nicollet Mall Minneapolis, MN 55402
- -------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: 800-677-3863
----------------------------
Date of fiscal year end: September 30, 2003
--------------------------
Date of reporting period: March 31, 2003
-------------------------
Form N-CSR is to be used by management investment companies to file reports
with the Commission not later than 10 days after the transmission to
stockholders of any report that is required to be transmitted to stockholders
under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1).
The Commission may use the information provided on Form N-CSR in its
regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street,
NW, Washington, DC 20549-0609. The OMB has reviewed this collection of
information under the clearance requirements of 44 U.S.C. Section 3507.
<Page>
Item 1. Report to Shareholders
<Page>
[LOGO OF FIRST AMERICAN FUNDS]
2003 SEMIANNUAL REPORT
MONEY MARKET FUNDS
OUR STRENGTH
WE ARE A PERFORMANCE-DRIVEN, INDEPENDENT-STYLE FIRM, BACKED BY THE RESOURCES
AND STABILITY OF A LEADING FINANCIAL ORGANIZATION.
OUR GOAL
SUPERIOR LONG-TERM PERFORMANCE.
OUR PLEDGE
WE TAILOR OUR APPROACH TO YOUR INVESTMENT NEEDS AND MEASURE OUR PERFORMANCE
AGAINST YOUR GOALS.
<Page>
FIRST AMERICAN FUNDS
ON THE COVER
OUR CORPORATE CONSTITUTION
THIS STATEMENT IS DESIGNED TO CAPTURE THE CHARACTER AND AMBITION OF OUR FIRM. WE
ARE FOUNDED ON STRENGTH, FOCUSED ON OUR GOAL, AND COMMITTED TO OUR PLEDGE.
OUR IMAGE-GEORGE WASHINGTON
HIS RICH LEGACY AS PATRIOT AND LEADER IS WIDELY RECOGNIZED AS EMBODYING THE
SOUND JUDGMENT, RELIABILITY, AND STRATEGIC VISION THAT ARE CENTRAL TO OUR BRAND.
FASHIONED IN A STYLE REMINISCENT OF AN 18TH-CENTURY ENGRAVING, THE ILLUSTRATION
CONVEYS THE SYMBOLIC STRENGTH AND VITALITY OF WASHINGTON, WHICH ARE ATTRIBUTES
THAT WE VALUE AT FIRST AMERICAN FUNDS.
AN INVESTMENT IN MONEY MARKET FUNDS IS NOT INSURED OR GUARANTEED BY THE FEDERAL
DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY. ALTHOUGH THESE
FUNDS SEEK TO PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT IS
POSSIBLE TO LOSE MONEY BY INVESTING IN THESE FUNDS.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
[SIDENOTE]
OUR FUND FAMILY
HIGHER RISK AND RETURN POTENTIAL
SECTOR FUNDS
INTERNATIONAL FUND
SMALL CAP FUNDS
MID CAP FUNDS
LARGE CAP FUNDS
INDEX FUNDS
GROWTH & INCOME FUNDS
ASSET ALLOCATION FUNDS
BOND FUNDS
TAX FREE BOND FUNDS
MONEY MARKET FUNDS
- GOVERNMENT OBLIGATIONS
- OHIO TAX FREE OBLIGATIONS
- PRIME OBLIGATIONS
- TAX FREE OBLIGATIONS
- TREASURY OBLIGATIONS
- TREASURY RESERVE
LOWER RISK AND RETURN POTENTIAL
Fund categories are presented according to risk and return potential. Funds
within each category are listed in alphabetical order.
<Page>
FIRST AMERICAN FUNDS ONLINE
@ firstamericanfunds.com
Visit the First American Funds website for useful information on each of our
funds, including fund prices, performance, fund management bios, dividends,
and downloadable fact sheets. You'll also find college and retirement
planning tools and general investor education.
[GRAPHIC]
ONLINE FEATURES AND FUNCTIONALITY INCLUDE:
- - The ability to deepen your understanding of the fund family by learning
about the full range of investment choices available to you through First
American Funds
- - The ability to educate yourself through market and investment strategy
commentaries
We stand behind our commitment to serve you with excellence. For more
information, call First American Funds Investor Services at 800.677.FUND or
visit firstamericanfunds.com.
TABLE OF CONTENTS
Schedule of Investments 2
Statements of Assets and Liabilities 12
Statements of Operations 14
Statements of Changes in Net Assets 16
Financial Highlights 18
Notes to Financial Statements 26
1
<Page>
SCHEDULE OF INVESTMENTS March 31, 2003 (unaudited)
GOVERNMENT OBLIGATIONS FUND
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 46.5%
FFCB
2.380%, 05/22/03 $ 9,440 $ 9,408
5.850%, 05/28/03 5,500 5,529
4.250%, 07/01/03 10,000 10,041
3.125%, 10/01/03 15,000 15,099
1.204%, 04/07/03 (B) 50,000 49,977
1.181%, 04/01/03 (B) 100,000 99,958
1.250%, 04/01/03 (B) 125,000 124,954
FHLB
1.200%, 04/21/03 (B) 100,000 99,997
2.830%, 04/21/03 10,000 10,000
1.618%, 04/30/03 (B) 50,000 49,998
2.375%, 06/12/03 10,000 9,999
1.625%, 08/12/03 15,000 14,988
4.125%, 08/15/03 13,380 13,494
5.125%, 09/15/03 15,000 15,222
5.440%, 10/15/03 1,000 1,021
1.500%, 11/04/03 13,860 13,865
3.125%, 11/14/03 (A) 36,500 36,787
3.180%, 12/03/03 (A) 60,275 60,917
3.270%, 02/12/04 (A) 37,750 38,357
1.125%, 02/24/04 10,000 9,983
1.410%, 03/08/04 25,000 25,000
4.875%, 04/16/04 16,645 17,254
1.201%, 04/11/03 (B) 80,000 79,967
1.195%, 04/28/03 (B) 100,000 99,955
FHLMC
1.620%, 08/14/03 (A) 25,000 24,851
3.250%, 01/15/04 (A) 45,000 45,618
3.400%, 02/20/04 26,950 27,427
1.230%, 02/26/04 10,000 9,888
6.950%, 04/01/04 10,000 10,556
3.750%, 04/15/04 10,000 10,249
FNMA
1.280%, 04/01/03 (B) 100,000 100,000
2.000%, 06/27/03 (A) 50,000 49,758
5.970%, 07/03/03 37,890 38,305
4.750%, 11/14/03 6,930 7,067
1.320%, 12/12/03 (A) 30,000 29,724
1.290%, 02/06/04 (A) 35,000 34,630
5.125%, 02/13/04 (A) 25,000 25,810
1.205%, 04/30/03 (B) 125,000 124,947
1.253%, 04/01/03 (B) 125,000 124,950
SLMA
2.390%, 05/15/03 10,000 9,971
2.250%, 07/02/03 10,000 10,000
-----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $1,595,521) 1,595,521
===========
REPURCHASE AGREEMENTS - 51.3%
Bank of America
1.350%, dated 3/31/03, matures 4/1/03,
repurchase price $100,003,750 (collateralized
by U.S. Treasury Obligations: total market
value $101,288,797) 100,000 100,000
CS First Boston
1.350%, dated 3/31/03, matures 4/1/03,
repurchase price $350,013,125 (collateralized
by U.S. Treasury Obligations: total market
value $353,184,733) 350,000 350,000
Goldman Sachs
1.350%, dated 3/31/03, matures 4/1/03,
repurchase price $300,011,250 (collateralized
by U.S. Treasury Obligations: total market
value $302,162,021) $300,000 $ 300,000
Lehman Brothers
1.350%, dated 3/31/03, matures 4/1/03,
repurchase price $400,015,000 (collateralized
by U.S. Treasury Obligations: total market
value $403,662,020) 400,000 400,000
Merrill Lynch
1.300%, dated 3/31/03, matures 4/1/03,
repurchase price $125,004,514 (collateralized
by U.S. Treasury Obligations: total market
value $126,004,806) 125,000 125,000
UBS Warburg
1.360%, dated 3/31/03, matures 4/1/03,
repurchase price $481,376,185 (collateralized
by U.S. Treasury Obligations: total market
value $486,086,022) 481,358 481,358
TOTAL REPURCHASE AGREEMENTS
(Cost $1,756,358) 1,756,358
===========
COMMERCIAL PAPER - 2.2%
EDUCATION - 2.2%
Nebhelp Inc. (LOC: SLMA)
1.251%, 04/02/03 75,082 75,079
-----------
TOTAL COMMERCIAL PAPER
(Cost $75,079) 75,079
============
INVESTMENTS PURCHASED WITH PROCEEDS
FROM SECURITIES LENDING - 9.8%
REPURCHASE AGREEMENTS - 9.8%
Deutsche Bank
1.23%, 04/29/03 337,144 337,144
-----------
TOTAL INVESTMENTS PURCHASED WITH
PROCEEDS FROM SECURITIES LENDING
(Cost $337,144) 337,144
===========
TOTAL INVESTMENTS - 109.8%
(Cost $3,764,102) 3,764,102
===========
OTHER ASSETS AND LIABILITIES, NET - (9.8)% (335,488
===========
TOTAL NET ASSETS - 100.0% $3,428,614
===========
</Table>
(A) This security or a portion of this security is out on loan at March 31,
2003. Total loaned securities had a market value of $332,462,650 at March
31, 2003. See note 2 in Notes to Financial Statements for additional
information.
(B) Variable Rate Security - The rate reported is the rate in effect as of
March 31, 2003. The date shown is the next reset date.
FFCB - Federal Farm Credit Banks
FHLB - Federal Home Loan Bank
FHLMC - Federal Home Loan Mortgage Corporation
FNMA - Federal National Mortgage Association
SLMA - Student Loan Marketing Association
The accompanying notes are an integral part of the financial statements.
2
<Page>
OHIO TAX FREE OBLIGATIONS FUND
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------------------------
OHIO SHORT-TERM MUNICIPALS - 95.1%
CITY & COUNTY GENERAL OBLIGATIONS - 12.9%
Columbus, Ohio (SPA: West Deutsche Landesbank)
1.000%, 04/07/03 (A) $2,440 $ 2,440
Dublin, Ohio City School District
1.510%, 10/15/03 1,500 1,503
1.710%, 10/15/03 1,000 1,001
Logan County Ohio Healthcare Facilities
(LOC: Fifth Third Bancorp)
1.180%, 04/01/27 (A) 3,000 3,000
Upper Arlington Ohio Anticipation Notes
2.000%, 11/20/03 1,265 1,269
-----------
TOTAL CITY & COUNTY GENERAL OBLIGATIONS 9,213
===========
EDUCATIONAL REVENUE - 10.5%
ABN AMRO Munitops Certificates Trust,
Westerville Ohio County School (INS: MBIA)
1.110%, 04/07/03 (A) (B) 1,100 1,100
Mahoning County, Ohio, Youngstown
University (LOC: Banc One)
1.050%, 04/07/03 (A) 2,540 2,540
Ohio State University General Reciepts
1.000%, 04/02/03 (A) 500 500
0.850%, 04/02/03 (A) 2,300 2,300
Rocky River, Ohio Lutheran West High School
(LOC: Fifth Third Bank)
1.170%, 04/04/03 (A) 1,000 1,000
-----------
TOTAL EDUCATIONAL REVENUE 7,440
===========
HEALTHCARE REVENUE - 24.7%
Cuyahoga County Ohio Hospital Revenue,
Cleveland Clinic (LOC: Morgan Guaranty)
1.150%, 04/07/03 (A) 1,755 1,755
Franklin County Hospital Revenue, U.S. Health
Corp. of Colombus (LOC: Morgan Guaranty)
1.050%, 04/07/03 (A) 2,500 2,500
Hamilton County Ohio Hospital Facilities
(INS: MBIA)
1.060%, 04/02/03 (A) 3,200 3,200
Lucas County Ohio Health Care Facilities
Revenue (LOC: Keybank)
1.100%, 04/07/03 (A) 3,200 3,200
Miami County Hospital (LOC: National
Australia Bank, NY)
1.240%, 04/07/03 (A) (B) 4,480 4,480
Middleburg Heights Hospital Improvement
Revenue (LOC: Keybank)
1.150%, 04/07/03 (A) 2,500 2,500
-----------
TOTAL HEALTHCARE REVENUE 17,635
===========
<Caption>
DESCRIPTION PAR (000)/SHARES VALUE (000)
- ---------------------------------------------------------------------------------------
MISCELLANEOUS REVENUE - 20.1%
Cleveland Ohio, Income Tax Revenue (INS: AMBAC)
1.075%, 04/07/03 (A) 2,996 2,996
Hamilton County, Ohio, Economic Developement
Revenue (LOC: Fifth Third Bancorp)
1.170%, 04/07/03 (A) 2,000 2,000
Montgomery County Ohio, Economic
Developement Revenue (LOC: National City)
1.150%, 04/07/03 (A) 9,340 9,340
-----------
TOTAL MISCELLANEOUS REVENUE 14,336
===========
STATE GENERAL OBLIGATIONS - 3.6%
Ohio State
3.000%, 04/01/03 $1,500 $ 1,511
Ohio State
5.450%, 09/01/03 1,000 1,017
-----------
TOTAL STATE GENERAL OBLIGATIONS 2,528
===========
WATER/POLLUTION CONTROL REVENUE - 23.3%
Columbus, Ohio Sewer Revenue
1.100%, 04/07/03 (A) 2,700 2,700
Ohio State Air Quality Development Authority
Ohio Edison (LOC: First Union)
0.950%, 04/01/03 (A) 2,700 2,700
Ohio State Air Quality Development Authority,
Ohio Power (INS: AMBAC)
1.140%, 04/01/03 (A) 2,500 2,500
Ohio State Air Quality Development Authority,
Timken Project (LOC: Northern Trust)
1.050%, 04/01/03 (A) 3,000 3,000
Ohio State Water Development Authority
Pollution PCR Cleveland Electric (LOC: Barclays, NY)
1.100%, 04/07/03 (A) 3,000 3,000
Ohio State Water Development Authority,
Enviormental Mead Co. (LOC: Bank of America)
1.010%, 04/01/03 (A) 2,730 2,730
-----------
TOTAL WATER/POLLUTION CONTROL REVENUE 16,630
===========
TOTAL OHIO SHORT-TERM MUNICIPALS
(Cost $67,782) 67,782
===========
INVESTMENT COMPANY - 4.8%
Touchstone Ohio Tax Free Fund 3,437,387 3,438
-----------
TOTAL INVESTMENT COMPANY
(Cost $3,438) 3,438
===========
TOTAL INVESTMENTS - 99.9%
(Cost $71,220) 71,220
===========
OTHER ASSETS AND LIABILITIES, NET - 0.1% 100
===========
TOTAL NET ASSETS - 100.0% $71,320
===========
</Table>
(A) Variable Rate Security - The rate reported is the rate in effect as of
March 31, 2003. The date shown is the next reset date.
(B) Security sold within the terms of a private placement memorandum, exempt
from registration under section 144A of the Securities Act of 1933, as
amended, and may be sold only to dealers in that program or other
"qualified institutional buyers." These securities have been determined to
be liquid under the guidelines established by the Funds' board of
directors. As of March 31, 2003, the value of these investments was
$5,580,000 or 7.8% of total net assets.
AMBAC - American Municipal Bond Assurance Company
INS - Insured
LOC - Letter of Credit
MBIA - Municipal Bond Insurance Association
SPA - Standby Purchase Agreement
3
<Page>
PRIME OBLIGATIONS FUND
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------------------------
COMMERCIAL PAPER - 33.4%
BROKERAGE - 2.9%
CS First Boston USA
1.270%, 04/21/03 $ 50,000 $ 49,965
1.270%, 05/19/03 175,000 174,704
Salomon Smith Barney
1.280%, 04/01/03 70,000 70,000
1.260%, 04/07/03 100,000 99,979
1.250%, 04/24/03 100,000 99,920
-----------
TOTAL BROKERAGE 494,568
===========
COMMERCIAL FUNDING CORPORATIONS - 21.5%
Asset Securitization Co-op Corp (B)
1.260%, 04/03/03 50,000 49,997
1.230%, 04/08/03 50,000 49,988
1.260%, 04/10/03 100,000 99,969
1.260%, 04/17/03 100,000 99,944
1.250%, 04/23/03 150,000 149,885
Corporate Asset Funding (B)
1.260%, 04/02/03 95,800 95,797
1.270%, 04/08/03 80,000 79,980
1.260%, 05/21/03 100,000 99,825
Edison Asset Securitization (B)
1.280%, 04/03/03 100,000 99,993
1.220%, 04/11/03 90,429 90,398
1.280%, 04/16/03 85,000 84,955
1.260%, 04/21/03 100,000 99,930
1.250%, 05/13/03 150,000 149,781
1.250%, 05/23/03 100,000 99,819
Fleet Funding (B)
1.260%, 04/11/03 241,334 241,250
1.270%, 04/14/03 109,911 109,861
1.230%, 04/24/03 40,000 39,969
1.210%, 05/09/03 74,741 74,646
1.250%, 05/12/03 85,000 84,879
1.250%, 05/13/03 91,643 91,509
Jupiter Securitization (B)
1.260%, 04/03/03 86,000 85,994
1.240%, 04/09/03 81,000 80,978
1.230%, 04/10/03 148,745 148,699
1.250%, 04/15/03 110,000 109,947
Moat Funding (Guarantor: 26% Chase) (B)
1.230%, 04/15/03 100,000 99,952
1.300%, 04/25/03 50,000 49,957
1.270%, 04/28/03 50,000 49,952
1.250%, 05/23/03 100,000 99,819
1.270%, 06/02/03 75,000 74,836
Quincy Capital (B)
1.260%, 04/01/03 59,645 59,645
1.265%, 04/04/03 100,000 99,989
1.260%, 04/07/03 48,571 48,561
1.260%, 04/14/03 100,000 99,955
1.250%, 04/15/03 65,647 65,615
1.220%, 04/24/03 50,079 50,040
Receivables Capital (B)
1.270%, 04/01/03 51,641 51,641
1.220%, 04/02/03 50,000 49,998
1.260%, 04/08/03 33,317 33,309
1.275%, 04/09/03 75,000 74,979
1.240%, 04/14/03 100,000 99,955
1.270%, 04/16/03 41,174 41,152
1.250%, 05/09/03 50,000 49,934
-----------
TOTAL COMMERCIAL FUNDING CORPORATIONS 3,617,282
===========
DIVERSIFIED FINANCIALS - 0.5%
General Electric Capital Corp.
1.220%, 04/17/03 $ 75,000 $ 74,959
===========
DOMESTIC BANKS - 5.4%
Enterprise Funding (Guarantor: Bank of America) (B)
1.250%, 04/07/03 100,000 99,979
1.275%, 04/15/03 43,235 43,214
1.250%, 04/21/03 70,048 69,999
1.250%, 04/25/03 50,006 49,964
Kitty Hawk Funding (Guarantor: Bank of America) (B)
1.270%, 04/14/03 75,120 75,086
1.210%, 04/16/03 40,030 40,010
1.270%, 04/17/03 81,750 81,704
1.220%, 04/24/03 57,118 57,074
Variable Funding Capital (Guarantor: Wachovia) (B)
1.220%, 04/02/03 100,000 99,997
1.260%, 04/04/03 150,000 149,984
1.260%, 04/07/03 50,000 49,990
1.210%, 04/14/03 100,000 99,956
-----------
TOTAL DOMESTIC BANKS 916,957
===========
RETAIL FUNDING CORPORATION - 3.1%
Emerald Certificates
(MBNA TR Master Certificates) (B)
1.280%, 04/08/03 50,000 49,988
1.330%, 04/10/03 111,000 110,963
1.270%, 04/16/03 35,000 34,981
1.310%, 04/17/03 100,000 99,942
1.270%, 05/20/03 38,000 37,934
1.280%, 05/22/03 142,050 141,792
1.270%, 05/28/03 53,544 53,436
-----------
TOTAL RETAIL FUNDING CORPORATION 529,036
===========
TOTAL COMMERCIAL PAPER
(Cost $5,632,802) 5,632,802
===========
CORPORATE OBLIGATIONS - 39.8%
BROKERAGE - 8.2%
CS First Boston USA
1.600%, 04/01/03 (A) 63,000 63,016
1.620%, 04/01/03 (A) 45,000 45,043
Goldman Sachs
1.330%, 04/01/03 (A) 125,000 125,000
1.310%, 04/15/03 (A) 150,000 150,000
1.626%, 04/15/03 (A) (B) 88,000 88,000
1.320%, 04/18/03 (A) 150,000 150,000
Merrill Lynch
1.308%, 04/02/03 (A) 150,000 150,000
1.370%, 05/18/03 (A) 100,000 100,000
Morgan Stanley Dean Witter
1.330%, 04/01/03 (A) 250,000 250,000
1.380%, 04/15/03 (A) 250,000 250,028
Salomon Smith Barney
7.200%, 02/01/04 15,950 16,715
-----------
TOTAL BROKERAGE 1,387,802
===========
DIVERSIFIED FINANCIALS - 3.1%
Associates Corp. NA
1.360%, 06/26/03 (A) 120,000 120,000
General Electric Capital Corp.
1.355%, 04/09/03 (A) 200,000 200,000
1.310%, 04/17/03 (A) 200,000 200,000
-----------
TOTAL DIVERSIFIED FINANCIALS 520,000
===========
</Table>
The accompanying notes are an integral part of the financial statements.
4
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------------------------
DIVERSIFIED INDUSTRIALS - 1.2%
3M (B)
5.674%, 12/12/03 $200,000 $ 205,715
===========
FOREIGN FUNDING CORPORATIONS - 18.4%
Beta Finance (B)
1.340%, 04/01/03 (A) 125,000 124,990
1.350%, 04/01/03 (A) 100,000 100,000
2.480%, 05/12/03 75,000 74,999
2.020%, 08/05/03 100,000 100,000
2.005%, 08/29/03 50,000 49,999
1.540%, 11/10/03 50,000 50,000
1.600%, 11/21/03 50,000 50,000
Centauri (CC USA LLC) (B)
1.330%, 04/01/03 (A) 72,000 71,994
1.330%, 04/01/03 (A) 50,000 49,995
1.355%, 04/01/03 (A) 85,000 85,000
1.358%, 04/01/03 (A) 50,000 49,999
2.980%, 04/08/03 50,000 50,000
2.080%, 07/01/03 50,000 49,999
1.930%, 10/22/03 50,000 50,000
1.910%, 10/28/03 50,000 50,000
1.515%, 11/19/03 75,000 75,000
Dorada Finance (B)
1.340%, 04/01/03 (A) 150,000 149,988
1.420%, 04/01/03 (A) 42,500 42,507
1.230%, 04/16/03 80,000 79,999
2.485%, 05/13/03 75,000 75,000
1.875%, 08/20/03 50,000 50,000
1.830%, 09/15/03 150,000 150,000
1.750%, 10/16/03 50,000 50,000
1.450%, 01/20/04 50,000 50,000
K2 USA LLC (B)
1.360%, 04/01/03 (A) 100,000 100,000
1.360%, 04/01/03 (A) 75,000 75,000
2.830%, 04/15/03 100,000 100,000
2.600%, 05/08/03 48,000 48,000
2.620%, 05/27/03 50,000 50,000
2.540%, 06/16/03 100,000 100,000
1.770%, 08/15/03 50,000 50,000
1.940%, 10/10/03 50,000 50,000
1.550%, 11/10/03 75,000 75,000
Sigma Finance (B)
1.328%, 04/01/03 (A) 100,000 99,988
1.330%, 04/01/03 (A) 100,000 99,991
1.330%, 04/01/03 (A) 65,000 64,997
1.340%, 04/01/03 (A) 50,000 49,993
1.340%, 04/01/03 (A) 85,000 84,993
1.510%, 04/01/03 (A) 50,000 50,035
2.610%, 05/01/03 50,000 50,000
2.670%, 05/20/03 50,000 50,000
1.893%, 10/23/03 75,000 75,000
Uri Trust Series 2000-1 (Guarantor: UBS AG) (B)
1.329%, 06/18/03 (A) 100,000 100,000
-----------
TOTAL FOREIGN FUNDING CORPORATIONS 3,102,466
===========
INSURANCE - 7.1%
AI Life
1.380%, 04/01/03 (A) (C) 75,000 75,000
1.380%, 04/01/03 (A) (C) 100,000 100,000
AIG Life Funding
1.400%, 04/01/03 (A) (C) 100,000 100,000
1.400%, 04/01/03 (A) (C) 100,000 100,000
Allstate Life Insurance
1.420%, 04/01/03 (A) (C) $100,000 $ 100,000
1.576%, 04/15/03 (A) (C) 100,000 100,000
Anchor National Life
1.500%, 04/01/03 (A) (C) 75,000 75,000
Sun Life Insurance
1.500%, 04/01/03 (A) (C) 75,000 75,000
1.750%, 04/01/03 (A) (C) 75,000 75,000
Transamerica Occidental
1.460%, 04/01/03 (A) (C) 400,000 400,000
-----------
TOTAL INSURANCE 1,200,000
===========
PHARMACEUTICALS - 1.2%
Merck & Co. Inc. (B)
4.489%, 02/22/04 200,000 205,756
===========
TELECOMMUNICATION SERVICES - 0.6%
Bellsouth Telecom
1.380%, 06/04/03 (A) 100,000 100,000
-----------
TOTAL CORPORATE OBLIGATIONS
(Cost $6,721,739) 6,721,739
===========
CERTIFICATES OF DEPOSIT - 3.7%
American Express Centurian
1.270%, 04/03/03 100,000 100,000
1.240%, 04/15/03 100,000 100,000
Bank One
1.570%, 04/30/03 100,000 100,000
Wells Fargo Bank
1.250%, 04/25/03 80,000 80,000
1.250%, 04/25/03 100,000 100,000
1.260%, 04/28/03 50,000 50,000
1.250%, 05/01/03 100,000 100,000
-----------
TOTAL CERTIFICATES OF DEPOSIT
(Cost $630,000) 630,000
===========
YANKEE CERTIFICATES OF DEPOSIT - 17.9%
Bayerische Landesbank NY
1.620%, 12/02/03 50,000 50,002
2.920%, 12/08/03 200,000 201,757
Canadian Imperial NY
1.265%, 04/07/03 100,000 100,000
1.220%, 04/15/03 100,000 100,000
1.250%, 05/05/03 100,000 100,000
Credit Agricole NY
1.260%, 04/07/03 200,000 200,000
1.270%, 04/07/03 50,000 50,000
1.280%, 04/07/03 200,000 200,000
1.260%, 04/14/03 75,000 75,000
CS First Boston NY
1.240%, 04/10/03 50,000 50,000
1.270%, 04/29/03 125,000 125,000
Danske Bank NY
1.270%, 04/02/03 100,000 100,000
1.540%, 12/19/03 50,000 50,078
Landesbank Wuerttemburg NY
1.260%, 04/23/03 200,000 200,001
1.410%, 02/03/04 50,000 50,025
Lloyds Bank NY
1.270%, 04/08/03 100,000 100,000
Nordeutsche Bank NY
1.220%, 04/30/03 100,000 100,000
Rabobank Nederland NY
2.565%, 07/02/03 100,000 99,991
1.400%, 01/20/04 95,000 95,046
</Table>
5
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------------------------
Royal Bank of Scotland NY
2.450%, 05/19/03 $ 75,000 $ 74,999
1.930%, 11/04/03 50,000 50,068
1.295%, 04/16/04 50,000 49,997
1.305%, 04/16/04 50,000 50,000
Svenska Handelsbanken NY
1.310%, 04/09/03 130,000 130,001
1.250%, 04/22/03 50,000 50,000
1.280%, 03/18/04 50,000 50,000
1.310%, 03/29/04 50,000 50,000
Toronto Dominion Holdings
1.250%, 04/17/03 100,000 100,000
West Deutsche Landesbank NY
1.270%, 04/15/03 100,000 100,000
1.850%, 09/03/03 75,000 75,000
1.870%, 09/15/03 50,000 50,000
1.240%, 03/17/04 100,000 99,990
Westpac Banking NY
1.270%, 05/05/03 50,000 50,000
-----------
TOTAL YANKEE CERTIFICATES OF DEPOSIT
(Cost $3,026,955) 3,026,955
===========
EURO TIME DEPOSITS - 1.0%
South Trust Time Deposit
1.375%, 04/01/03 161,158 161,158
-----------
TOTAL EURO TIME DEPOSITS
(Cost $161,158) 161,158
===========
REPURCHASE AGREEMENTS - 4.0%
Bear Stearns
1.440%, dated 3/23/03, matures 4/1/03,
repurchase price $400,427,842 (collateralized
by mortgage obligations: total market
value $409,820,912) 400,000 400,000
UBS Warburg
1.320%, dated 3/31/03, matures 4/1/03,
repurchase price $200,752,361 (collateralized
by U.S. Treasury Obligations: total market
value $202,066,164) 200,745 200,745
UBS Warburg
1.360%, dated 3/31/03, matures 4/1/03,
repurchase price $68,644,593 (collateralized
by U.S. Treasury Obligations: total market
value $69,094,139) 68,642 68,642
-----------
TOTAL REPURCHASE AGREEMENTS
(Cost $669,387) 669,387
===========
TOTAL INVESTMENTS - 99.8%
(Cost $16,842,041) 16,842,041
===========
OTHER ASSETS AND LIABILITIES, NET - 0.2% 31,235
===========
TOTAL NET ASSETS - 100.0% $16,873,276
===========
</Table>
(A) Variable Rate Security - The rate reported is the rate in effect as of
March 31, 2003. The date shown is the next reset date.
(B) Security sold within the terms of a private placement memorandum, exempt
from registration under section 144A of the Securities Act of 1933, as
amended, and may be sold only to dealers in that program or other
"qualified institutional buyers." These securities have been determined to
be liquid under the guidelines established by the Funds' board of
directors. As of March 31, 2003, the value of these investments was
$8,136,173,459 or 48.2% of total net assets.
(C) Securities considered illiquid investments under guidelines established by
the board of directors. As of March 31, 2003, the market value of these
investments are $1,200,000,000 or 7.1% of total net assets.
TAX FREE OBLIGATIONS FUND
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------------------------
MUNICIPAL BONDS - 98.4%
COLORADO - 0.7%
Moffat County Pollution Control (LOC: AMBAC)
1.250%, 04/07/03 (A) $10,500 $ 10,500
===========
DISTRICT OF COLUMBIA - 0.7%
District of Columbia (LOC: First Union)
1.100%, 04/07/03 (A) 9,600 9,600
===========
FLORIDA - 0.8%
Florida Gulf Coast University (LOC: First Union)
1.100%, 04/07/03 (A) 5,200 5,200
Florida Housing Agency (LOC: Kreidetbank)
1.100%, 04/07/03 (A) 6,035 6,035
-----------
11,235
===========
HAWAII - 0.3%
State of Hawaii (INS: MBIA)
5.250%, 04/01/03 5,000 5,000
===========
IDAHO - 0.7%
Boise Idaho Urban Renewal Agency,
Capital City (LOC: Bank of America)
1.130%, 04/07/03 (A) 5,390 5,390
University of Idaho Foundation Auhtority
(LOC: First Security Bank)
1.170%, 04/07/03 (A) (B) 4,880 4,880
-----------
10,270
===========
ILLINOIS - 17.0%
ABN AMRO Munitops Certificates Trust,
Chicago IL (INS: FGIC)
1.160%, 04/07/03 (A) (B) 20,000 20,000
ABN AMRO Munitops Certificates Trust,
llinois State (GO) (INS: MBIA)
1.160%, 04/07/03 (A) (B) 4,575 4,575
Cary Special Tax Authority (LOC: American
National Bank)
1.150%, 04/07/03 (A) 7,118 7,118
Chicago Illinois Mandatory Put 12/4/03 @ 100
1.280%, 01/08/04 12,000 12,000
Cook County Illinois (SPA: Landesbank
Hessen Thur.)
1.250%, 04/07/03 (A) 42,250 42,250
Cook County Illinois - Clarehan Project
(LOC: FHLB)
1.150%, 04/07/03 (A) 3,505 3,505
Illinois Development Finance Authority
(LOC: FHLB)
1.350%, 04/07/03 (A) 4,800 4,800
Illinois Development Finance Authority
(LOC: Nothern Trust)
1.250%, 04/07/03 (A) 4,000 4,000
Illinois Development Finance Authority Aurora
(LOC: Northern Trust)
1.150%, 04/07/03 (A) 8,740 8,740
Illinois Development Finance Authority Lake
Forest (LOC: Northern Trust)
1.150%, 04/07/03 (A) 6,255 6,255
Illinois Development Finance Authority Loyola
Academy (LOC: American National Bank)
1.150%, 04/07/03 (A) 4,000 4,000
Illinois Development Finance Authority
McCormick Theological (LOC: Northern Trust)
1.150%, 04/07/03 (A) 7,935 7,935
</Table>
The accompanying notes are an integral part of the financial statements.
6
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------------------------
Illinois Development Finance Authority
Presbyterian (INS: FSA)
1.150%, 04/07/03 (A) $16,000 $ 16,000
Illinois Development Finance Authority Roosevelt
University (LOC: American National Bank)
1.150%, 04/07/03 (A) 7,500 7,500
Illinois Development Finance Authority
St. Ignatius (LOC: Northern Trust)
1.150%, 04/07/03 (A) 9,800 9,800
Illinois Development Finance Authority
St. Pauls Housing (LOC: Lasalle National)
1.150%, 04/07/03 (A) 4,440 4,440
Illinois Educational Facilties Authority Chicago
Zoological Society (LOC: Northern Trust)
1.150%, 04/07/03 (A) 5,000 5,000
Illinois Health Facilities Authorities
Edgewater Hospital
1.120%, 04/07/03 (A) 10,800 10,800
Illinois Health Facilities Authority Lifelink
(LOC: American National Bank)
1.150%, 04/07/03 (A) 7,225 7,225
Illinois State Toll Highway Authority (INS: FSA)
1.150%, 04/07/03 (A) 18,500 18,500
1.150%, 04/07/03 (A) 13,100 13,100
Macon County Milikim University (INS: AMBAC)
1.100%, 04/07/03 (A) 4,400 4,400
Northern Cook County Illinois Solid Waste
Agency (LOC: Northern Trust)
1.200%, 04/07/03 (A) 6,500 6,500
State of Illinios (GO)
4.000%, 04/01/03 15,000 15,000
-----------
243,443
===========
INDIANA - 1.6%
Evansville Economic Development Authority
(LOC: Citibank)
1.100%, 04/07/03 (A) (B) 2,500 2,500
Indiana Health Facilities Finance Authority
Henry County Memorial Hospital
(LOC: Fifth Third Bancorp)
1.180%, 04/07/03 (A) 20,305 20,305
-----------
22,805
===========
LOUISIANA - 4.3%
Louisiana Public Finance Authority
1.050%, 04/03/03 13,500 13,500
1.050%, 04/03/03 47,800 47,800
-----------
61,300
===========
MARYLAND - 2.1%
Maryland State Economic Development
Corporation (LOC: Bank of America)
1.100%, 04/03/03 (A) 2,000 2,000
Maryland State Health & Higher Educational
Facilities (LOC: Bank of America)
1.050%, 04/07/03 (A) 28,055 28,055
-----------
30,055
===========
MASSACHUSETTS - 2.8%
Massachusetts State Water Reserve Authority
(INS: AMBAC)
1.050%, 04/02/03 (A) 300 300
1.050%, 04/02/03 (A) 16,100 16,100
State of Massachusetts (SPA: Westlb AG) (GO)
1.050%, 04/03/03 (A) 8,800 8,800
State of Massachusetts Series B
(SPA: Landesbank) (GO)
1.250%, 04/03/03 (A) $15,000 $ 15,000
-----------
40,200
===========
MICHIGAN - 7.9%
Hannahville Indian Community Finance
(LOC: First of America)
1.120%, 04/07/03 (A) (B) 2,100 2,100
Michigan Municipal Bond Authority Revenue
2.250%, 08/22/03 18,000 18,059
Michigan State Hospital Financial Authority
(LOC: National City Bank)
1.160%, 04/07/03 (A) 25,060 25,060
Michigan State Housing Development Authority
(INS: MBIA)
1.140%, 04/07/03 (A) (B) 7,495 7,495
State of Michigan
1.050%, 06/03/03 15,000 15,000
1.050%, 06/03/03 30,080 30,080
Wayne Charter County (LOC: Allied Irish, NY)
1.120%, 04/07/03 (A) 13,825 13,825
-----------
111,619
===========
MINNESOTA - 3.9%
Bloomington Multifamily Housing Authority
(LOC: Credit Suisse, NY)
1.250%, 04/07/03 (A) 15,205 15,205
Eden Prairie, Multifamily Housing Authority
(GTY: FHLMC)
1.150%, 04/07/03 (A) 13,105 13,105
Minnesota State Higher Educational Facilties
Bethel College (LOC: Allied Irish, NY)
1.450%, 04/07/03 (A) 4,745 4,745
University of Minnesota
1.050%, 04/07/03 (A) 22,750 22,750
-----------
55,805
===========
MISSOURI - 1.2%
Jackson County Missouri Industrial Development
Authority, YMCA Greater Kansas City
(LOC: Bank of America)
1.150%, 04/03/03 (A) 7,000 7,000
Missouri State Health & Educational Facilties
(LOC: Bank One)
1.150%, 04/07/03 (A) 9,845 9,845
-----------
16,845
===========
NEVADA - 0.6%
ABN AMRO Munitops Certificates Trust,
Nevada State (GO) (INS: MBIA)
1.160%, 04/07/03 (A) (B) 8,500 8,500
===========
NEW JERSEY - 0.5%
New Jersey Sports & Exposition Authority
(INS: MBIA)
1.050%, 04/03/03 (A) 7,600 7,600
===========
NEW YORK - 2.6%
New York City Transitional Financial Authority
(SPA: Bank of New York)
0.950%, 04/01/03 (A) 37,000 37,000
===========
NORTH CAROLINA - 2.1%
North Carolina Educational Facilities Finance
Agency, Duke University Project
1.000%, 04/03/03 (A) 30,000 30,000
===========
</Table>
7
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------------------------
OHIO - 4.7%
ABN AMRO Munitops Certificates Trust,
Westerville Ohio County School (INS: MBIA)
1.110%, 04/07/03 (A) (B) $ 2,900 $ 2,900
Cleveland Ohio, Income Tax Revenue
(INS: AMBAC)
1.075%, 04/07/03 (A) 8,191 8,191
Columbus, Ohio (SPA: West Deutsche Landesbank)
1.000%, 04/07/03 (A) 1,805 1,805
Cuyahoga County Ohio Hospital Revenue,
Cleveland Clinic (LOC: Morgan Guaranty)
1.150%, 04/07/03 (A) 965 965
Cuyahoga County Ohio Hospital Revenue,
University Hospital (INS: AMBAC)
1.100%, 04/07/03 (A) 3,000 3,000
Franklin County Ohio Health Care Facilities
(LOC: National City Bank)
1.150%, 04/03/03 (A) 4,000 4,000
Hamilton County Ohio Hospital Facilities
(INS: MBIA)
1.060%, 04/07/03 (A) 10,420 10,420
Logan County Ohio Healthcare Facilities
(LOC: Fifth Third Bancorp)
1.180%, 04/07/03 (A) 7,860 7,860
Ohio State Air Quality Development Authority,
Ohio Edison (LOC: First Union)
1.050%, 04/07/03 (A) 5,200 5,200
Ohio State Air Quality Development Authority,
Ohio Power (INS: AMBAC)
1.140%, 04/07/03 (A) 2,200 2,200
Ohio State Air Quality Development Authority,
Timken Project (LOC: Northern Trust)
1.050%, 04/07/03 (A) 2,500 2,500
Ohio State University General Receipts
0.850%, 04/03/03 (A) 830 830
1.000%, 04/03/03 (A) 1,800 1,800
Salem Ohio Civic Center Facility
(LOC: National City Bank)
1.150%, 04/07/03 (A) 9,365 9,365
Summit County Ohio Port Authority, Summa
Health Systems Hospital
(LOC: Fifth Third Bancorp)
1.120%, 04/07/03 (A) 5,000 5,000
-----------
66,036
===========
OKLAHOMA - 1.3%
Tulsa Industrial Authority University of Tulsa
(INS: MBIA)
1.050%, 04/07/03 (A) 9,360 9,360
1.140%, 04/07/03 (A) (B) 7,970 7,970
-----------
17,330
===========
OREGON - 2.4%
Oregon Health Lewis & Clark
(Bank of New York/Cal State Teachers)
1.050%, 04/03/03 33,500 33,500
===========
PENNSYLVANIA - 1.0%
Philadelphia Authority Industrial Revenue
(LOC: First Union)
1.100%, 04/07/03 (A) 14,500 14,500
===========
SOUTH CAROLINA - 5.2%
ABN AMRO Munitops Certificates Trust,
South Carolina Transportaion Infastructure
(LOC: AMBAC)
1.160%, 04/07/03 (A) $10,000 $ 10,000
Berkeley County Pollution Control Authority
(GTY: Alcoa)
1.530%, 04/07/03 (A) 13,750 13,750
South Carolina Association
Governmental Organizations
3.000%, 04/15/03 38,000 38,022
South Carolina Jobs Economic Development
Authority Boros & Chaplin Business Park
(LOC: Bank of America)
1.150%, 04/07/03 (A) 11,000 11,000
-----------
72,772
===========
SOUTH DAKOTA - 0.6%
Yankton Industrial Development Authority
(GTY: Alcoa)
1.530%, 04/07/03 (A) (B) 9,000 9,000
===========
TENNESSEE - 5.9%
Clarksville Tennessee Public Building Authority
(LOC: Bank of America)
0.950%, 04/07/03 (A) 15,000 15,000
1.100%, 04/07/03 (A) (B) 13,100 13,100
Memphis Tennessee
1.050%, 07/18/03 12,500 12,500
Met Government Nashville & Davidson
(LOC: Bank of America)
1.250%, 04/07/03 (A) 7,035 7,035
Rutherford County Industrial Developement
Square D Company (LOC: Societe Generale)
1.100%, 04/07/03 (A) 4,100 4,100
Shelby County Heatlh (LOC: Bank of America)
1.100%, 06/24/03 32,000 32,000
-----------
83,735
===========
TEXAS - 18.1%
ABN AMRO Munitops Certificates Trust,
Comal Texas (GTY: TXPSF)
1.160%, 04/07/03 (A) (B) 10,002 10,002
ABN AMRO Munitops Certificates Trust,
Irving Texas (GTY: TXPSF)
1.750%, 04/07/03 (A) (B) 11,390 11,390
ABN AMRO Munitops Certificates Trust,
Williamson County Texas (INS: FSA)
1.160%, 04/07/03 (A) (B) 10,395 10,395
Austin (GO)
5.000%, 09/01/03 20,990 21,305
Galena Park Independent School District
(GTY: TXPSF)
1.150%, 04/07/03 (A) (B) 20,965 20,965
Kendall County Texas Health Facilities,
Morningside Ministries (LOC: Bank One)
1.170%, 04/07/03 (A) 15,000 15,000
Milam County Industrial Development Authority
(GTY: Alcoa)
1.300%, 04/07/03 (A) (B) 16,855 16,855
Northeast Independent School District
(GTY: TXPSF)
1.140%, 04/07/03 (A) (B) 26,515 26,515
San Antonio Electric & Gas (INS: MBIA)
1.140%, 04/07/03 (A) (B) 7,455 7,455
</Table>
The accompanying notes are an integral part of the financial statements.
8
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------------------------
Texas State Tax & Revenue Anticipation Notes
2.750%, 08/29/03 $51,770 $ 52,011
University of Texas
1.050%, 04/01/03 18,890 18,890
1.150%, 04/21/03 25,000 25,000
1.150%, 04/21/03 10,000 10,000
1.100%, 08/14/03 10,000 10,000
-----------
255,783
===========
UTAH - 1.5%
Utah State (GO) (SPA: Toronto Dominion Bank)
1.000%, 04/03/03 (A) 21,250 21,250
===========
VIRGINIA - 0.5%
Spotsylvania County Industrial Development
(LOC: First Union)
1.100%, 04/07/03 (A) 6,940 6,940
===========
WASHINGTON - 3.4%
ABN AMRO Munitops Certificates Trust,
Washington State (GO) (INS: MBIA)
1.160%, 04/07/03 (A) (B) 14,000 14,000
Seattle Washington Water System
(LOC: Bayerische Landesbank)
1.050%, 04/07/03 (A) 15,500 15,500
Washington State Housing Finance Commission
(GTY: FHLB)
1.150%, 04/07/03 (A) 5,035 5,035
Washington State Housing Finance Commission
(LOC: Keybank)
1.050%, 04/07/03 (A) 2,870 2,870
1.150%, 04/07/03 (A) 5,035 5,035
Washington State Public Power Supply System
(INS: MBIA)
1.140%, 04/07/03 (A) (B) 7,240 7,240
-----------
49,680
===========
WEST VIRGINIA - 0.3%
Monongalia County West Virginia General
Hospital (LOC: Bank One)
1.150%, 04/07/03 (A) 5,000 5,000
===========
WISCONSIN - 1.6%
Wisconsin State Health & Education Facilties
(LOC: Marshall & Ilsley)
1.150%, 04/07/03 (A) 14,200 14,200
Wisconsin State Health Marshfield
(LOC: Morgan Guaranty)
1.100%, 04/07/03 (A) 8,000 8,000
-----------
22,200
===========
MULTISTATE - 2.1%
Clipper Tax Exempt Trust
1.330%, 04/07/03 (A) (B) 29,300 29,300
===========
TOTAL MUNICIPAL BONDS
(Cost $1,398,803) 1,398,803
===========
</Table>
<Table>
<Caption>
DESCRIPTION SHARES VALUE (000)
- ---------------------------------------------------------------------------------------
MONEY MARKET FUND - 1.7%
Money Market Obligations Trust 24,492,000 $ 24,492
-----------
TOTAL MONEY MARKET FUND
(Cost $24,492) 24,492
===========
TOTAL INVESTMENTS - 100.1%
(Cost $1,423,295) 1,423,295
===========
OTHER ASSETS AND LIABILITIES, NET - (0.1)% (1,521)
===========
TOTAL NET ASSETS - 100.0% $1,421,774
===========
</Table>
(A) Variable Rate Security - The rate reported is the rate in effect as of
March 31, 2003. The date shown is the next reset date.
(B) Security sold within the terms of a private placement memorandum, exempt
from registration under section 144A of the Securities Act of 1933, as
amended, and may be sold only to dealers in that program or other
"qualified institutional buyers." These securities have been determined to
be liquid under the guidelines established by the Funds' board of
directors. As of March 31, 2003, the value of these investments was
$237,137,000 or 16.7% of total net assets.
AMBAC - American Municipal Bond Assurance Company
FGIC - Finanical Guaranty Insurance Corporation
FHLB - Federal Home Loan Bank
FHLMC - Federal Home Loan Mortgage Corporation
FSA - Financial Security Assistance
GO - General Obligation
GTY - Guaranty
INS - Insured
LOC - Letter of Credit
MBIA - Municipal Bond Insurance Association
SPA - Standby Purchase Agreement
TXPSF - Texas Permanent School Fund
9
<Page>
TREASURY OBLIGATIONS FUND
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS - 25.9%
U.S. Treasury Bills
1.174%, 04/03/03 $ 300,000 $ 299,981
1.530%, 04/10/03 200,000 199,924
1.400%, 05/01/03 200,000 199,762
1.180%, 07/03/03 110,000 109,665
1.220%, 07/10/03 250,000 249,194
1.168%, 07/31/03 250,000 249,029
1.170%, 08/14/03 175,000 174,239
U.S. Treasury Notes
4.000%, 04/30/03 100,000 100,129
4.000%, 04/30/03 50,000 50,054
5.750%, 04/30/03 150,000 150,390
3.875%, 06/30/03 50,000 50,192
5.375%, 06/30/03 50,000 50,361
2.750%, 09/30/03 75,000 75,366
2.750%, 10/31/03 600,000 604,371
3.250%, 12/31/03 75,000 75,958
3.625%, 03/31/04 350,000 358,406
-----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $2,997,021) 2,997,021
===========
REPURCHASE AGREEMENTS - 74.1%
ABN AMRO
1.220%, dated 3/31/03, matures 4/2/03,
repurchase price $400,094,889 (collateralized
by U.S. Treasury Obligations: total market
value $404,475,483) 400,000 400,000
Bank of America
1.300%, dated 3/31/03, matures 4/1/03,
repurchase price $300,010,833 (collateralized
by U.S. Treasury Obligations: total market
value $302,735,443) 300,000 300,000
Bear Stearns
1.320%, dated 3/31/03, matures 4/1/03,
repurchase price $1,000,036,667
(collateralized by U.S. Treasury Obligations:
total market value $1,022,810,019) 1,000,000 1,000,000
CS First Boston
1.320%, dated 3/31/03, matures 4/1/03,
repurchase price $500,018,333 (collateralized
by U.S. Treasury Obligations: total market
value $509,246,647) 500,000 500,000
Deutsche Bank
1.320%, dated 3/31/03, matures 4/1/03,
repurchase price $350,012,833 (collateralized
by U.S. Treasury Obligations: total market
value $352,297,909) 350,000 350,000
Goldman Sachs
1.300%, dated 3/31/03, matures 4/1/03,
repurchase price $1,775,064,097
(collateralized by U.S. Treasury Obligations:
total market value $1,789,178,147) 1,775,000 1,775,000
Greenwich Capital
1.320%, dated 3/31/03, matures 4/1/03,
repurchase price $500,018,333 (collateralized
by U.S. Treasury Obligations: total market
value $506,265,747) 500,000 500,000
Lehman Brothers
1.300%, dated 3/31/03, matures 4/1/03,
repurchase price $400,014,444 (collateralized
by U.S. Treasury Obligations: total market
value $403,643,506) 400,000 400,000
Morgan Stanley
1.270%, dated 3/31/03, matures 4/1/03,
repurchase price $400,014,111 (collateralized
by U.S. Treasury Obligations: total market
value $408,000,263) $ 400,000 $ 400,000
Prudential
1.310%, dated 3/31/03, matures 4/1/03,
repurchase price $300,010,917 (collateralized
by U.S. Treasury Obligations: total market
value $303,087,722) 300,000 300,000
Salomon Smith Barney
1.300%, dated 3/31/03, matures 4/1/03,
repurchase price $900,032,500 (collateralized
by U.S. Treasury Obligations: total market
value $914,019,293) 900,000 900,000
Societe Generale
1.300%, dated 3/31/03, matures 4/1/03,
repurchase price $250,009,028 (collateralized
by U.S. Treasury Obligations: total market
value $255,114,050) 250,000 250,000
UBS Warburg
1.320%, dated 3/31/03, matures 4/1/03,
repurchase price $1,500,492,016
(collateralized by U.S. Treasury Obligations:
total market value $1,530,447,421) 1,500,437 1,500,437
-----------
TOTAL REPURCHASE AGREEMENTS
(Cost $8,575,437) 8,575,437
===========
TOTAL INVESTMENTS - 100.0%
(Cost $11,572,458) 11,572,458
===========
OTHER ASSETS AND LIABILITIES, NET - 0.0% 3,206
===========
TOTAL NET ASSETS - 100.0% $11,575,664
===========
</Table>
The accompanying notes are an integral part of the financial statements.
10
<Page>
TREASURY RESERVE FUND
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ---------------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS - 23.4%
U.S. Treasury Bills
1.530%, 04/10/03 $ 50,000 $ 49,981
1.400%, 05/01/03 50,000 49,941
1.180%, 07/03/03 50,000 49,847
U.S. Treasury Notes
4.000%, 04/30/03 55,000 55,067
5.750%, 04/30/03 80,000 80,213
3.875%, 06/30/03 15,000 15,058
5.375%, 06/30/03 15,000 15,108
2.750%, 09/30/03 25,000 25,122
2.750%, 10/31/03 165,000 166,202
3.250%, 12/31/03 50,000 50,639
3.625%, 03/31/04 85,000 87,027
-----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $644,205) 644,205
===========
REPURCHASE AGREEMENTS - 76.5%
ABN AMRO
1.220%, dated 3/31/03, matures 4/2/03,
repurchase price $100,023,722 (collateralized
by U.S. Treasury Obligations: total market
value $100,999,186) 100,000 100,000
Bank of America
1.300%, dated 3/31/03, matures 4/1/03,
repurchase price $100,003,611 (collateralized
by U.S. Treasury Obligations: total market
value $101,524,876) 100,000 100,000
Bear Stearns
1.320%, dated 3/31/03, matures 4/1/03,
repurchase price $500,018,333 (collateralized
by U.S. Treasury Obligations: total market
value $512,238,890) 500,000 500,000
CS First Boston
1.320%, dated 3/31/03, matures 4/1/03,
repurchase price $100,003,667 (collateralized
by U.S. Treasury Obligations: total market
value $101,726,059) 100,000 100,000
Goldman Sachs
1.300%, dated 3/31/03, matures 4/1/03,
repurchase price $125,004,514 (collateralized
by U.S. Treasury Obligations: total market
value $127,138,272) 125,000 125,000
Greenwich Capital
1.320%, dated 3/31/03, matures 4/1/03,
repurchase price $250,009,167 (collateralized
by U.S. Treasury Obligations: total market
value $250,231,204) 250,000 250,000
Lehman Brothers
1.300%, dated 3/31/03, matures 4/1/03,
repurchase price $100,003,611 (collateralized
by U.S. Treasury Obligations: total market
value $100,502,814) 100,000 100,000
Merrill Lynch
1.200%, dated 3/31/03, matures 4/1/03,
repurchase price $125,004,167 (collateralized
by U.S. Treasury Obligations: total market
value $127,503,675) 125,000 125,000
Morgan Stanley
1.270%, dated 3/31/03, matures 4/1/03,
repurchase price $100,003,528 (collateralized
by U.S. Treasury Obligations: total market
value $102,000,208) 100,000 100,000
Salomon Smith Barney
1.300%, dated 3/31/03, matures 4/1/03,
repurchase price $400,014,444 (collateralized
by U.S. Treasury Obligations: total market
value $407,811,384) $400,000 $ 400,000
Societe Generale
1.300%, dated 3/31/03, matures 4/1/03,
repurchase price $100,003,611 (collateralized
by U.S. Treasury Obligations: total market
value $102,004,550) 100,000 100,000
UBS Warburg
1.320%, dated 3/31/03, matures 4/1/03,
repurchase price $108,821,990 (collateralized
by U.S. Treasury Obligations: total market
value $110,994,492) 108,818 108,818
-----------
TOTAL REPURCHASE AGREEMENTS
(Cost $2,108,818) 2,108,818
===========
TOTAL INVESTMENTS - 99.9%
(Cost $2,753,023) 2,753,023
===========
OTHER ASSETS AND LIABILITIES, NET - 0.1% 2,699
===========
TOTAL NET ASSETS - 100.0% $2,755,722
</Table>
11
<Page>
STATEMENTS OF ASSETS AND LIABILITIES March 31, 2003 (unaudited), in thousands,
except per share data
<Table>
<Caption>
GOVERNMENT OHIO TAX FREE PRIME
OBLIGATIONS OBLIGATIONS OBLIGATIONS
FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS:
Investments in securities, at amortized cost* $2,007,744 $71,220 $16,172,654
Repurchase agreements, at amortized cost 1,756,358 -- 669,387
Cash 27 -- 26
Dividends and interest receivable 5,371 133 51,107
Capital shares sold 89 -- 131
Prepaid expenses and other assets 129 15 499
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 3,769,718 71,368 16,893,804
====================================================================================================================================
LIABILITIES:
Bank overdraft -- -- --
Dividends payable 2,365 26 12,997
Capital shares redeemed -- -- 213
Payable upon return of securities loaned 337,144 --
Payable for advisory, co-administration, and custodian fees 1,310 19 5,963
Payable for distribution and shareholder servicing fees 266 1 1,247
Accrued expenses and other liabilities 19 2 108
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 341,104 48 20,528
====================================================================================================================================
NET ASSETS $3,428,614 $71,320 $16,873,276
====================================================================================================================================
COMPOSITION OF NET ASSETS:
Portfolio capital $3,428,654 $71,320 $16,873,108
Undistributed (distributions in excess of) net investment income (28) 2 162
Accumulated net realized gain (loss) on investments (12) (2) 6
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $3,428,614 $71,320 $16,873,276
====================================================================================================================================
* Including securities loaned $ 332,463 $ -- $ --
CLASS A:
Net assets $ 584,134 $ 319 $ 5,050,790
Shares issued and outstanding ($0.01 par value -- 20 billion authorized) 584,065 319 5,050,830
Net asset value, offering price, and redemption price per share $ 1.00 $ 1.00 $ 1.00
CLASS B:
Net assets $ -- $ -- $ 9,922
Shares issued and outstanding ($0.01 par value -- 20 billion authorized) -- -- 9,927
Net asset value, offering price, and redemption price per share $ -- $ -- $ 1.00
CLASS C:
Net assets $ -- $ -- $ 8,234
Shares issued and outstanding ($0.01 par value -- 1 billion authorized) -- -- 8,234
Net asset value, offering price, and redemption price per share $ -- $ -- $ 1.00
CLASS D:
Net assets $1,055,388 $ -- $ 804,013
Shares issued and outstanding ($0.01 par value -- 20 billion authorized) 1,055,406 -- 804,022
Net asset value, offering price, and redemption price per share $ 1.00 $ -- $ 1.00
CLASS I:
Net assets $ -- $ -- $ 2,493,769
Shares issued and outstanding ($0.01 par value -- 20 billion authorized) -- -- 2,493,811
Net asset value, offering price, and redemption price per share $ -- $ -- $ 1.00
CLASS S:
Net assets $ 75,945 $53,446 $ 44,881
Shares issued and outstanding ($0.01 par value -- 5 billion authorized) 76,014 53,446 44,881
Net asset value, offering price, and redemption price per share $ 1.00 $ 1.00 $ 1.00
CLASS Y:
Net assets $1,713,147 $17,555 $8,461,667
Shares issued and outstanding ($0.01 par value -- 20 billion authorized) 1,713,254 17,555 8,461,597
Net asset value, offering price, and redemption price per share $ 1.00 $ 1.00 $1.00
</Table>
12
<Page>
<Table>
<Caption>
TAX FREE TREASURY TREASURY
OBLIGATIONS OBLIGATIONS RESERVE
FUND FUND FUND
- ----------------------------------------------------------------------------------------------------------------------------------
ASSETS:
Investments in securities, at amortized cost* $1,423,295 $2,997,021 $644,205
Repurchase agreements, at amortized cost -- 8,575,437 2,108,818
Cash -- 1 1
Dividends and interest receivable 4,519 15,263 5,621
Capital shares sold -- -- 47
Prepaid expenses and other assets 72 287 94
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 1,427,886 11,588,009 2,758,786
===================================================================================================================================
LIABILITIES:
Bank overdraft 4,637 -- --
Dividends payable 759 7,285 960
Capital shares redeemed -- 4 --
Payable upon return of securities loaned -- -- --
Payable for advisory, co-administration, and custodian fees 576 3,853 972
Payable for distribution and shareholder servicing fees 129 1,146 1,112
Accrued expenses and other liabilities 11 57 20
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 6,112 12,345 3,064
===================================================================================================================================
NET ASSETS $1,421,774 $11,575,664 $2,755,722
===================================================================================================================================
COMPOSITION OF NET ASSETS:
Portfolio capital $1,421,757 $11,575,731 $2,755,722
Undistributed (distributions in excess of) net investment income (4) (5) --
Accumulated net realized gain (loss) on investments 21 (62) --
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $1,421,774 $11,575,664 $2,755,722
===================================================================================================================================
* Including securities loaned $ -- $ -- $ --
CLASS A:
Net assets $ 391,319 $ 463,466 $2,755,722
Shares issued and outstanding ($0.01 par value -- 20 billion authorized) 391,350 463,442 2,755,739
Net asset value, offering price, and redemption price per share $ 1.00 $ 1.00 $ 1.00
CLASS B:
Net assets $ -- $ -- $ --
Shares issued and outstanding ($0.01 par value -- 20 billion authorized) $ -- $ -- $ --
Net asset value, offering price, and redemption price per share $ -- $ -- $ --
CLASS C:
Net assets $ -- $ -- $ --
Shares issued and outstanding ($0.01 par value -- 1 billion authorized) $ -- $ -- $ --
Net asset value, offering price, and redemption price per share $ -- $ -- $ --
CLASS D:
Net assets $ 23,484 $5,922,539 $ --
Shares issued and outstanding ($0.01 par value -- 20 billion authorized) 23,484 5,922,589 $ --
Net asset value, offering price, and redemption price per share $ 1.00 $1.00 $ --
CLASS I:
Net assets $ -- $ -- $ --
Shares issued and outstanding ($0.01 par value -- 20 billion authorized) $ -- $ -- $ --
Net asset value, offering price, and redemption price per share $ -- $ -- $ --
CLASS S:
Net assets $ 187,121 $1,353,446 $ --
Shares issued and outstanding ($0.01 par value -- 5 billion authorized) 187,139 1,353,446 --
Net asset value, offering price, and redemption price per share $ 1.00 $1.00 $ --
CLASS Y:
Net assets $ 819,850 $3,836,213 $ --
Shares issued and outstanding ($0.01 par value -- 20 billion authorized) 819,844 3,836,243 --
Net asset value, offering price, and redemption price per share $ 1.00 $ 1.00 $ --
</Table>
The accompanying notes are an integral part of the financial statements.
13
<Page>
STATEMENTS OF OPERATIONS For the six months ended March 31, 2003 (unaudited), in
thousands
<Table>
<Caption>
GOVERNMENT OHIO TAX FREE PRIME
OBLIGATIONS OBLIGATIONS OBLIGATIONS
FUND FUND FUND
- ----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest $ 22,041 $ 441 $ 143,802
Securities lending 75 -- --
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 22,116 441 143,802
==================================================================================================================================
EXPENSES:
Investment advisory fees 5,037 119 31,254
Co-administration fees and expenses (including per account transfer agency fees) 2,014 61 14,334
Custodian fees 144 3 893
Directors' fees 19 -- 126
Registration fees 29 34 94
Printing 42 1 282
Professional fees 33 1 225
Other 34 1 99
Distribution and shareholder servicing fees - Class A 682 -- 6,880
Distribution and shareholder servicing fees - Class B -- -- 50
Distribution and shareholder servicing fees - Class C -- -- 29
Distribution and shareholder servicing fees - Class D 453 -- 549
Shareholder servicing fees - Class S 108 70 54
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES 8,595 290 54,869
==================================================================================================================================
Less: Investment advisory fee waiver (764) (53) (2,250)
- ----------------------------------------------------------------------------------------------------------------------------------
Less: Administration fee waiver on Prime Obligations Fund, Class I -- -- (1,058)
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL NET EXPENSES 7,831 237 51,561
==================================================================================================================================
INVESTMENT INCOME - NET 14,285 204 92,241
==================================================================================================================================
NET GAIN (LOSS) ON INVESTMENTS -- -- (4)
==================================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 14,285 $ 204 $ 92,237
==================================================================================================================================
</Table>
14
<Page>
<Table>
<Caption>
TAX FREE TREASURY TREASURY
OBLIGATIONS OBLIGATIONS RESERVE
FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest $ 9,139 $ 72,990 $ 20,392
Securities lending -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 9,139 72,990 20,392
==============================================================================================================================
EXPENSES:
Investment advisory fees 2,407 17,448 4,773
Co-administration fees and expenses (including per account transfer agency fees) 1,015 6,971 1,811
Custodian fees 69 499 136
Directors' fees 9 67 20
Registration fees 34 42 25
Printing 21 152 45
Professional fees 17 124 35
Other 22 62 40
Distribution and shareholder servicing fees - Class A 513 379 6,819
Distribution and shareholder servicing fees - Class B -- -- --
Distribution and shareholder servicing fees - Class C -- -- --
Distribution and shareholder servicing fees - Class D 15 3,485 --
Shareholder servicing fees - Class S 263 1,817 --
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES 4,385 31,046 13,704
==============================================================================================================================
Less: Investment advisory fee waiver (399) (2,562) (885)
- ------------------------------------------------------------------------------------------------------------------------------
Less: Administration fee waiver on Prime Obligations Fund, Class I -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL NET EXPENSES 3,986 28,484 12,819
==============================================================================================================================
INVESTMENT INCOME - NET 5,153 44,506 7,573
==============================================================================================================================
NET GAIN (LOSS) ON INVESTMENTS 35 2 --
==============================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 5,188 $ 44,508 $ 7,573
==============================================================================================================================
</Table>
The accompanying notes are an integral part of the financial statements.
15
<Page>
STATEMENTS OF CHANGES IN NET ASSETS in thousands
<Table>
<Caption>
GOVERNMENT
OBLIGATIONS FUND
- ------------------------------------------------------------------------------------------------------------------
10/1/02 10/1/01
TO TO
3/31/03 9/30/02
- ------------------------------------------------------------------------------------------------------------------
(unaudited)
OPERATIONS:
Investment income - net $ 14,285 $ 38,804
Net realized gain (loss) on investments -- --
- ------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 14,285 38,804
- ------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Class A (2,220) (7,539)
Class B -- --
Class C -- --
Class D (2,719) (9,103)
Class I -- --
Class S (357) (1,476)
Class Y (8,989) (20,686)
- ------------------------------------------------------------------------------------------------------------------
Total distributions (14,285) (38,804)
==================================================================================================================
CAPITAL SHARE TRANSACTIONS AT NET ASSET VALUE OF $1.00 PER SHARE:
Class A:
Proceeds from sales 507,484 2,789,789
Reinvestment of distributions 2,220 7,682
Payments for redemptions (453,913) (2,759,292)
- ------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class A transactions 55,791 38,179
- ------------------------------------------------------------------------------------------------------------------
Class B:
Proceeds from sales -- --
Reinvestment of distributions -- --
Payments for redemptions -- --
- ------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class B transactions -- --
- ------------------------------------------------------------------------------------------------------------------
Class C:
Proceeds from sales -- --
Reinvestment of distributions -- --
Payments for redemptions -- --
- ------------------------------------------------------------------------------------------------------------------
Increase in net assets from Class C transactions -- --
- ------------------------------------------------------------------------------------------------------------------
Class D:
Proceeds from sales 1,652,636 1,329,170
Reinvestment of distributions 49 65
Payments for redemptions (1,025,604) (1,510,243)
- ------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class D transactions 627,081 (181,008)
- ------------------------------------------------------------------------------------------------------------------
Class I:
Proceeds from sales -- --
Reinvestment of distributions -- --
Payments for redemptions -- --
- ------------------------------------------------------------------------------------------------------------------
Decrease in net assets from Class I transactions -- --
- ------------------------------------------------------------------------------------------------------------------
Class S:
Proceeds from sales 104,489 266,533
Reinvestment of distributions -- 2
Payments for redemptions (130,057) (261,058)
- ------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class S transactions (25,568) 5,477
- ------------------------------------------------------------------------------------------------------------------
Class Y:
Proceeds from sales 2,673,414 3,904,853
Reinvestment of distributions 3,992 9,599
Payments for redemptions (2,527,139) (3,393,272)
- ------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class Y transactions 150,267 521,180
- ------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital share transactions 807,571 383,828
- ------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 807,571 383,828
NET ASSETS AT BEGINNING OF PERIOD 2,621,043 2,237,215
==================================================================================================================
NET ASSETS AT END OF PERIOD $ 3,428,614 $ 2,621,043
==================================================================================================================
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME AT END OF PERIOD $ (28) $ (28)
==================================================================================================================
<Caption>
OHIO TAX FREE
OBLIGATIONS FUND
- ------------------------------------------------------------------------------------------------------------------
10/1/02 10/1/01
TO TO
3/31/03 9/30/02
- ------------------------------------------------------------------------------------------------------------------
(unaudited)
OPERATIONS:
Investment income - net $ 204 $ 751
Net realized gain (loss) on investments -- --
- ------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 204 751
- ------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Class A (1) (9)
Class B -- --
Class C -- --
Class D -- --
Class I -- --
Class S (157) (734)
Class Y (46) (8)
- ------------------------------------------------------------------------------------------------------------------
Total distributions (204) (751)
==================================================================================================================
CAPITAL SHARE TRANSACTIONS AT NET ASSET VALUE OF $1.00 PER SHARE:
Class A:
Proceeds from sales 69 1,112
Reinvestment of distributions 1 10
Payments for redemptions (109) (1,857)
- ------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class A transactions (39) (735)
- ------------------------------------------------------------------------------------------------------------------
Class B:
Proceeds from sales -- --
Reinvestment of distributions -- --
Payments for redemptions -- --
- ------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class B transactions -- --
- ------------------------------------------------------------------------------------------------------------------
Class C:
Proceeds from sales -- --
Reinvestment of distributions -- --
Payments for redemptions -- --
- ------------------------------------------------------------------------------------------------------------------
Increase in net assets from Class C transactions -- --
- ------------------------------------------------------------------------------------------------------------------
Class D:
Proceeds from sales -- --
Reinvestment of distributions -- --
Payments for redemptions -- --
- ------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class D transactions -- --
- ------------------------------------------------------------------------------------------------------------------
Class I:
Proceeds from sales -- --
Reinvestment of distributions -- --
Payments for redemptions -- --
- ------------------------------------------------------------------------------------------------------------------
Decrease in net assets from Class I transactions -- --
- ------------------------------------------------------------------------------------------------------------------
Class S:
Proceeds from sales 60,335 120,859
Reinvestment of distributions -- --
Payments for redemptions (64,310) (168,798)
- ------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class S transactions (3,975) (47,939)
- ------------------------------------------------------------------------------------------------------------------
Class Y:
Proceeds from sales 35,489 15,602
Reinvestment of distributions -- --
Payments for redemptions (18,462) (15,074)
- ------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class Y transactions 17,027 528
- ------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital share transactions 13,013 (48,146)
- ------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 13,013 (48,146)
NET ASSETS AT BEGINNING OF PERIOD 58,307 106,453
==================================================================================================================
NET ASSETS AT END OF PERIOD $ 71,320 $ 58,307
==================================================================================================================
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME AT END OF PERIOD $ 2 $ 2
==================================================================================================================
</Table>
16
<Page>
<Table>
<Caption>
PRIME
OBLIGATIONS FUND
- ---------------------------------------------------------------------------------------------------------------------
10/1/02 10/1/01
TO TO
3/31/03 9/30/02
- ---------------------------------------------------------------------------------------------------------------------
(unaudited)
OPERATIONS:
Investment income - net $ 92,241 $ 300,662
Net realized gain (loss) on investments (4) 10
- ---------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 92,237 300,672
- ---------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Class A (22,141) (83,069)
Class B (8) (57)
Class C (4) (16)
Class D (3,518) (12,504)
Class I (15,921) (49,175)
Class S (174) (289)
Class Y (50,476) (155,552)
- ---------------------------------------------------------------------------------------------------------------------
Total distributions (92,242) (300,662)
=====================================================================================================================
CAPITAL SHARE TRANSACTIONS AT NET ASSET VALUE OF $1.00 PER SHARE:
Class A:
Proceeds from sales 4,069,496 8,447,072
Reinvestment of distributions 23,207 84,726
Payments for redemptions (4,770,658) (8,587,209)
- ---------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class A transactions (677,955) (55,411)
- ---------------------------------------------------------------------------------------------------------------------
Class B:
Proceeds from sales 3,124 7,652
Reinvestment of distributions 11 58
Payments for redemptions (3,562) (4,754)
- ---------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class B transactions (427) 2,956
- ---------------------------------------------------------------------------------------------------------------------
Class C:
Proceeds from sales 8,697 7,738
Reinvestment of distributions 3 18
Payments for redemptions (3,424) (6,961)
- ---------------------------------------------------------------------------------------------------------------------
Increase in net assets from Class C transactions 5,276 795
- ---------------------------------------------------------------------------------------------------------------------
Class D:
Proceeds from sales 1,899,248 4,423,759
Reinvestment of distributions 509 1,435
Payments for redemptions (1,719,174) (4,540,635)
- ---------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class D transactions 180,583 (115,441)
- ---------------------------------------------------------------------------------------------------------------------
Class I:
Proceeds from sales 3,604,503 6,398,570
Reinvestment of distributions 1,402 2,516
Payments for redemptions (3,690,867) (6,754,619)
- ---------------------------------------------------------------------------------------------------------------------
Decrease in net assets from Class I transactions (84,962) (353,533)
- ---------------------------------------------------------------------------------------------------------------------
Class S:
Proceeds from sales 162,611 130,907
Reinvestment of distributions -- --
Payments for redemptions (151,877) (96,759)
- ---------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class S transactions 10,734 34,148
- ---------------------------------------------------------------------------------------------------------------------
Class Y:
Proceeds from sales 15,538,700 29,324,181
Reinvestment of distributions 23,928 79,425
Payments for redemptions (15,767,741) (28,313,972)
- ---------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class Y transactions (205,113) 1,089,634
- ---------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital share transactions (771,864) 603,148
- ---------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (771,869) 603,158
NET ASSETS AT BEGINNING OF PERIOD 17,645,145 17,041,987
=====================================================================================================================
NET ASSETS AT END OF PERIOD $ 16,873,276 $ 17,645,145
=====================================================================================================================
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME AT END OF PERIOD $ 162 $ 163
=====================================================================================================================
<Caption>
TAX FREE
OBLIGATIONS FUND
- ----------------------------------------------------------------------------------------------------------------------
10/1/02 10/1/01
TO TO
3/31/03 9/30/02
- ----------------------------------------------------------------------------------------------------------------------
(unaudited)
OPERATIONS:
Investment income - net $ 5,153 $ 13,146
Net realized gain (loss) on investments 35 --
- ----------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 5,188 13,146
- ----------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Class A (1,267) (4,099)
Class B -- --
Class C -- --
Class D (75) (240)
Class I -- --
Class S (623) (2,543)
Class Y (3,188) (6,264)
- ----------------------------------------------------------------------------------------------------------------------
Total distributions (5,153) (13,146)
======================================================================================================================
CAPITAL SHARE TRANSACTIONS AT NET ASSET VALUE OF $1.00 PER SHARE:
Class A:
Proceeds from sales 218,601 502,664
Reinvestment of distributions 1,357 4,195
Payments for redemptions (234,853) (598,285)
- ----------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class A transactions (14,895) (91,426)
- ----------------------------------------------------------------------------------------------------------------------
Class B:
Proceeds from sales -- --
Reinvestment of distributions -- --
Payments for redemptions -- --
- ----------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class B transactions -- --
- ----------------------------------------------------------------------------------------------------------------------
Class C:
Proceeds from sales -- --
Reinvestment of distributions -- --
Payments for redemptions -- --
- ----------------------------------------------------------------------------------------------------------------------
Increase in net assets from Class C transactions -- --
- ----------------------------------------------------------------------------------------------------------------------
Class D:
Proceeds from sales 36,299 94,998
Reinvestment of distributions -- 6
Payments for redemptions (33,767) (106,667)
- ----------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class D transactions 2,532 (11,663)
- ----------------------------------------------------------------------------------------------------------------------
Class I:
Proceeds from sales -- --
Reinvestment of distributions -- --
Payments for redemptions -- --
- ----------------------------------------------------------------------------------------------------------------------
Decrease in net assets from Class I transactions -- --
- ----------------------------------------------------------------------------------------------------------------------
Class S:
Proceeds from sales 226,129 443,750
Reinvestment of distributions -- 2
Payments for redemptions (245,659) (639,920)
- ----------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class S transactions (19,530) (196,168)
- ----------------------------------------------------------------------------------------------------------------------
Class Y:
Proceeds from sales 1,264,774 1,341,373
Reinvestment of distributions 278 191
Payments for redemptions (1,029,355) (1,200,708)
- ----------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class Y transactions 235,697 140,856
- ----------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital share transactions 203,804 (158,401)
- ----------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 203,839 (158,401)
NET ASSETS AT BEGINNING OF PERIOD 1,217,935 1,376,336
======================================================================================================================
NET ASSETS AT END OF PERIOD $ 1,421,774 $ 1,217,935
======================================================================================================================
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME AT END OF PERIOD $ (4) $ (4)
======================================================================================================================
<Caption>
TREASURY
OBLIGATIONS FUND
- ----------------------------------------------------------------------------------------------------------------------
10/1/02 10/1/01
TO TO
3/31/03 9/30/02
- ----------------------------------------------------------------------------------------------------------------------
(unaudited)
OPERATIONS:
Investment income - net $ 44,506 $ 140,792
Net realized gain (loss) on investments 2 --
- ----------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 44,508 140,792
- ----------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Class A (1,002) (2,190)
Class B -- --
Class C -- --
Class D (20,264) (61,842)
Class I -- --
Class S (5,338) (25,018)
Class Y (17,902) (51,742)
- ----------------------------------------------------------------------------------------------------------------------
Total distributions (44,506) (140,792)
======================================================================================================================
CAPITAL SHARE TRANSACTIONS AT NET ASSET VALUE OF $1.00 PER SHARE:
Class A:
Proceeds from sales 585,825 759,331
Reinvestment of distributions 219 977
Payments for redemptions (353,119) (662,012)
- ----------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class A transactions 232,925 98,296
- ----------------------------------------------------------------------------------------------------------------------
Class B:
Proceeds from sales -- --
Reinvestment of distributions -- --
Payments for redemptions -- --
- ----------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class B transactions -- --
- ----------------------------------------------------------------------------------------------------------------------
Class C:
Proceeds from sales -- --
Reinvestment of distributions -- --
Payments for redemptions -- --
- ----------------------------------------------------------------------------------------------------------------------
Increase in net assets from Class C transactions -- --
- ----------------------------------------------------------------------------------------------------------------------
Class D:
Proceeds from sales 11,316,226 13,766,667
Reinvestment of distributions 28 198
Payments for redemptions (10,549,000) (12,608,284)
- ----------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class D transactions 767,254 1,158,581
- ----------------------------------------------------------------------------------------------------------------------
Class I:
Proceeds from sales -- --
Reinvestment of distributions -- --
Payments for redemptions -- --
- ----------------------------------------------------------------------------------------------------------------------
Decrease in net assets from Class I transactions -- --
- ----------------------------------------------------------------------------------------------------------------------
Class S:
Proceeds from sales 1,150,078 2,909,929
Reinvestment of distributions 27 93
Payments for redemptions (1,444,985) (3,297,128)
- ----------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class S transactions (294,880) (387,106)
- ----------------------------------------------------------------------------------------------------------------------
Class Y:
Proceeds from sales 9,636,630 16,329,970
Reinvestment of distributions 4,185 11,009
Payments for redemptions (8,801,219) (16,274,127)
- ----------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class Y transactions 839,596 66,852
- ----------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital share transactions 1,544,895 936,623
- ----------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 1,544,897 936,623
NET ASSETS AT BEGINNING OF PERIOD 10,030,767 9,094,144
======================================================================================================================
NET ASSETS AT END OF PERIOD $ 11,575,664 $ 10,030,767
======================================================================================================================
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME AT END OF PERIOD $ (5) $ (5)
======================================================================================================================
<Caption>
TREASURY
RESERVE FUND
- ---------------------------------------------------------------------------------------------------------------------
10/1/02 10/1/01
TO TO
3/31/03 9/30/02
- ---------------------------------------------------------------------------------------------------------------------
(unaudited)
OPERATIONS:
Investment income - net $ 7,573 $ 32,018
Net realized gain (loss) on investments -- --
- ---------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 7,573 32,018
- ---------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Class A (7,573) (32,018)
Class B -- --
Class C -- --
Class D -- --
Class I -- --
Class S -- --
Class Y -- --
- ---------------------------------------------------------------------------------------------------------------------
Total distributions (7,573) (32,018)
=====================================================================================================================
CAPITAL SHARE TRANSACTIONS AT NET ASSET VALUE OF $1.00 PER SHARE:
Class A:
Proceeds from sales 1,825,355 2,952,368
Reinvestment of distributions 6,592 28,410
Payments for redemptions (1,870,998) (2,946,484)
- ---------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class A transactions (39,051) 34,294
- ---------------------------------------------------------------------------------------------------------------------
Class B:
Proceeds from sales -- --
Reinvestment of distributions -- --
Payments for redemptions -- --
- ---------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class B transactions -- --
- ---------------------------------------------------------------------------------------------------------------------
Class C:
Proceeds from sales -- --
Reinvestment of distributions -- --
Payments for redemptions -- --
- ---------------------------------------------------------------------------------------------------------------------
Increase in net assets from Class C transactions -- --
- ---------------------------------------------------------------------------------------------------------------------
Class D:
Proceeds from sales -- --
Reinvestment of distributions -- --
Payments for redemptions -- --
- ---------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class D transactions -- --
- ---------------------------------------------------------------------------------------------------------------------
Class I:
Proceeds from sales -- --
Reinvestment of distributions -- --
Payments for redemptions -- --
- ---------------------------------------------------------------------------------------------------------------------
Decrease in net assets from Class I transactions -- --
- ---------------------------------------------------------------------------------------------------------------------
Class S:
Proceeds from sales -- --
Reinvestment of distributions -- --
Payments for redemptions -- --
- ---------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class S transactions -- --
- ---------------------------------------------------------------------------------------------------------------------
Class Y:
Proceeds from sales -- --
Reinvestment of distributions -- --
Payments for redemptions -- --
- ---------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class Y transactions -- --
- ---------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital share transactions (39,051) 34,294
- ---------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (39,051) 34,294
NET ASSETS AT BEGINNING OF PERIOD 2,794,773 2,760,479
=====================================================================================================================
NET ASSETS AT END OF PERIOD $ 2,755,722 $ 2,794,773
=====================================================================================================================
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME AT END OF PERIOD $ -- $ --
=====================================================================================================================
</Table>
The accompanying notes are an integral part of the financial statements.
17
<Page>
FINANCIAL HIGHLIGHTS For a share outstanding throughout the periods ended
September 30, unless otherwise indicated.
<Table>
<Caption>
NET ASSET DIVIDENDS NET ASSET
VALUE NET FROM NET VALUE NET ASSETS
BEGINNING INVESTMENT INVESTMENT END OF TOTAL END OF
OF PERIOD INCOME INCOME PERIOD RETURN (11) PERIOD (000)
- ------------------------------------------------------------------------------------------------------------------------------------
GOVERNMENT OBLIGATIONS FUND
Class A
2003 (1) $1.00 $0.004 $(0.004) $1.00 0.41% $584,134
2002 1.00 0.014 (0.014) 1.00 1.41 528,343
2001 1.00 0.044 (0.044) 1.00 4.53 490,164
2000 1.00 0.053 (0.053) 1.00 5.43 470,587
1999 1.00 0.043 (0.043) 1.00 4.36 435,227
1998 (2) 1.00 0.021 (0.021) 1.00 2.10 325,024
Class D
2003 (1) $1.00 $0.005 $(0.005) $1.00 0.47% $1,055,388
2002 1.00 0.015 (0.015) 1.00 1.56 428,307
2001 1.00 0.046 (0.046) 1.00 4.68 609,315
2000 1.00 0.055 (0.055) 1.00 5.59 472,078
1999 1.00 0.044 (0.044) 1.00 4.52 439,287
1998 1.00 0.050 (0.050) 1.00 5.15 384,143
Class S
2003 (1) $1.00 $0.004 $(0.004) $1.00 0.40% $75,945
2002 1.00 0.014 (0.014) 1.00 1.41 101,513
2001 (3) 1.00 0.001 (0.001) 1.00 0.05 96,036
Class Y
2003 (1) $1.00 $0.005 $(0.005) $1.00 0.55% $1,713,147
2002 1.00 0.017 (0.017) 1.00 1.71 1,562,880
2001 1.00 0.047 (0.047) 1.00 4.84 1,041,700
2000 1.00 0.056 (0.056) 1.00 5.75 937,230
1999 1.00 0.046 (0.046) 1.00 4.67 938,897
1998 1.00 0.052 (0.052) 1.00 5.30 1,000,043
OHIO TAX FREE OBLIGATIONS FUND (4)
Class A
2003 (1) $1.00 $0.003 $(0.003) $1.00 0.31% $319
2002 1.00 0.008 (0.008) 1.00 0.82 358
2001 (5) 1.00 0.023 (0.023) 1.00 2.33 1,094
2000 (6) 1.00 0.030 (0.030) 1.00 3.29 68,482
1999 (7) 1.00 0.030 (0.030) 1.00 2.67 64,475
1998 (8) 1.00 0.030 (0.030) 1.00 2.85 57,614
Class S
2003 (1) $1.00 $0.003 $(0.003) $1.00 0.28% $53,446
2002 1.00 0.008 (0.008) 1.00 0.82 57,421
2001 (9) 1.00 0.020 (0.020) 1.00 1.97 105,359
Class Y
2003 (1) $1.00 $0.004 $(0.004) $1.00 0.43% $17,555
2002 1.00 0.011 (0.011) 1.00 1.05 528
2001 (10) 1.00 -- -- 1.00 0.02 --
</Table>
18
<Page>
<Table>
<Caption>
RATIO OF RATIO OF NET
RATIO OF NET EXPENSES TO INVESTMENT
RATIO OF INVESTMENT AVERAGE INCOME
EXPENSES TO INCOME NET ASSETS TO AVERAGE NET
AVERAGE TO AVERAGE (EXCLUDING ASSETS (EXCLUDING
NET ASSETS NET ASSETS WAIVERS) WAIVERS)
- ------------------------------------------------------------------------------------------------------------------
GOVERNMENT OBLIGATIONS FUND
Class A
2003 (1) 0.73% 0.81% 0.78% 0.76%
2002 0.75 1.39 0.81 1.33
2001 0.75 4.41 0.81 4.35
2000 0.76 5.29 0.82 5.23
1999 0.75 4.28 0.82 4.21
1998 (2) 0.70 4.93 0.76 4.87
Class D
2003 (1) 0.60% 0.90% 0.65% 0.85%
2002 0.60 1.57 0.66 1.51
2001 0.60 4.51 0.66 4.45
2000 0.60 5.47 0.66 5.41
1999 0.60 4.44 0.67 4.37
1998 0.60 5.03 0.67 4.96
Class S
2003 (1) 0.75% 0.83% 0.80% 0.78%
2002 0.75 1.42 0.81 1.36
2001 (3) 0.70 2.66 0.80 2.56
Class Y
2003 (1) 0.45% 1.10% 0.50% 1.05%
2002 0.45 1.68 0.51 1.62
2001 0.45 4.75 0.51 4.69
2000 0.45 5.59 0.51 5.53
1999 0.45 4.57 0.52 4.50
1998 0.45 5.18 0.52 5.11
OHIO TAX FREE OBLIGATIONS FUND (4)
Class A
2003 (1) 0.70% 0.61% 0.86% 0.45%
2002 0.75 0.85 0.97 0.63
2001 (5) 0.80 3.45 1.00 3.25
2000 (6) 0.77 3.22 0.97 3.02
1999 (7) 0.58 2.64 1.09 2.13
1998 (8) 0.69 2.81 1.29 2.21
Class S
2003 (1) 0.75% 0.56% 0.91% 0.40%
2002 0.75 0.84 0.97 0.62
2001 (9) 0.79 2.39 0.92 2.26
Class Y
2003 (1) 0.45% 0.82% 0.61% 0.66%
2002 0.45 1.00 0.67 0.78
2001 (10) 0.00 0.00 0.00 0.00
</Table>
(1) For the six months ended March 31, 2003 (unaudited). All ratios for the
period have been annualized, except total return and portfolio turnover.
(2) Commenced operations on April 29, 1998. All ratios for the period have been
annualized, except total return and portfolio turnover.
(3) Commenced operations on September 24, 2001. All ratios for the period have
been annualized, except total return and portfolio turnover.
(4) The financial highlights for the Ohio Tax Free Obligations Fund as set
forth herein include the historical financial highlights of the Firstar
Ohio Tax-Exempt Money Market Fund Class A and Institutional Class. The
assets of the Firstar Ohio Tax-Exempt Money Market Fund were acquired by
the Ohio Tax Free Obligations Fund on September 26, 2001. In connection
with such acquisition, (i) Class A shares of the Firstar Ohio Tax-Exempt
Money Market Fund were exchanged for Class A shares of the Ohio Tax Free
Obligations Fund; and (ii) Institutional Class shares of the Firstar Ohio
Tax-Exempt Money Market Fund were exchanged for Class S shares of the Ohio
Tax Free Obligations Fund.
(5) For the period November 1, 2000, to September 30, 2001. All ratios for the
period have been annualized, except total return and portfolio turnover.
The Fund's fiscal year end changed from October 31 to September 30,
effective September 30, 2001.
(6) For the period December 1, 1999, to October 31, 2000. All ratios for the
period have been annualized, except total return and portfolio turnover.
The Fund's fiscal year end changed from November 30 to October 31,
effective October 31, 2000.
(7) For the year ended Novermber 30, 1999.
(8) Commenced operations on December 2, 1997. All ratios for the period have
been annualized, except total return and portfolio turnover.
(9) Commenced operations on December 11, 2000. All ratios for the period have
been annualized, except total return and portfolio turnover.
(10) Commenced operations on September 26, 2001. All ratios for the period have
been annualized, except total return and portfolio turnover.
(11) Total return does not reflect sales charges. Total return would have been
lower had certain expenses not been waived.
The accompanying notes are an integral part of the financial statements.
19
<Page>
<Table>
<Caption>
NET ASSET DIVIDENDS NET ASSET
VALUE NET FROM NET VALUE NET ASSETS
BEGINNING INVESTMENT INVESTMENT END OF TOTAL END OF
OF PERIOD INCOME INCOME PERIOD RETURN (4) PERIOD (000)
- -----------------------------------------------------------------------------------------------------------------------------------
PRIME OBLIGATIONS FUND
Class A
2003 (1) $1.00 $0.004 $(0.004) $1.00 0.40% $5,050,790
2002 1.00 0.014 (0.014) 1.00 1.43 5,728,745
2001 1.00 0.045 (0.045) 1.00 4.61 5,784,153
2000 1.00 0.054 (0.054) 1.00 5.52 4,614,094
1999 1.00 0.044 (0.044) 1.00 4.51 4,170,881
1998 1.00 0.050 (0.050) 1.00 5.15 3,699,197
Class B
2003 (1) $1.00 $0.001 $(0.001) $1.00 0.08% $9,922
2002 1.00 0.007 (0.007) 1.00 0.75 10,350
2001 1.00 0.038 (0.038) 1.00 3.92 7,393
2000 1.00 0.047 (0.047) 1.00 4.85 4,009
1999 1.00 0.038 (0.038) 1.00 3.85 4,007
1998 1.00 0.042 (0.042) 1.00 4.37 2,397
Class C
2003 (1) $1.00 $0.001 $(0.001) $1.00 0.08% $8,234
2002 1.00 0.007 (0.007) 1.00 0.75 2,958
2001 1.00 0.038 (0.038) 1.00 3.90 2,163
2000 1.00 0.047 (0.047) 1.00 4.85 371
1999 (2) 1.00 0.024 (0.024) 1.00 2.47 341
Class D
2003 (1) $1.00 $0.005 $(0.005) $1.00 0.49% $804,013
2002 1.00 0.016 (0.016) 1.00 1.61 623,431
2001 1.00 0.047 (0.047) 1.00 4.81 738,871
2000 1.00 0.056 (0.056) 1.00 5.74 515,806
1999 1.00 0.046 (0.046) 1.00 4.73 426,004
1998 1.00 0.051 (0.051) 1.00 5.26 233,675
Class I
2003 (1) $1.00 $0.006 $(0.006) $1.00 0.61% $2,493,769
2002 1.00 0.018 (0.018) 1.00 1.84 2,578,732
2001 (3) 1.00 0.001 (0.001) 1.00 0.60 2,932,264
Class S
2003 (1) $1.00 $0.004 $(0.004) $1.00 0.42% $44,881
2002 1.00 0.014 (0.014) 1.00 1.46 34,147
2001 (3) 1.00 -- -- 1.00 0.40 --
Class Y
2003 (1) $1.00 $0.006 $(0.006) $1.00 0.57% $8,461,667
2002 1.00 0.017 (0.017) 1.00 1.76 8,666,782
2001 1.00 0.048 (0.048) 1.00 4.96 7,577,143
2000 1.00 0.057 (0.057) 1.00 5.90 6,431,029
1999 1.00 0.048 (0.048) 1.00 4.89 6,228,207
1998 1.00 0.053 (0.053) 1.00 5.42 5,445,685
</Table>
20
<Page>
<Table>
<Caption>
RATIO OF RATIO OF NET
RATIO OF NET EXPENSES TO INVESTMENT
RATIO OF INVESTMENT AVERAGE INCOME
EXPENSES TO INCOME NET ASSETS TO AVERAGE NET
AVERAGE TO AVERAGE (EXCLUDING ASSETS (EXCLUDING
NET ASSETS NET ASSETS WAIVERS) WAIVERS)
- -----------------------------------------------------------------------------------------------------------------
PRIME OBLIGATIONS FUND
Class A
2003 (1) 0.81% 0.80% 0.83% 0.78%
2002 0.81 1.42 0.84 1.39
2001 0.83 4.46 0.85 4.44
2000 0.82 5.40 0.86 5.36
1999 0.80 4.42 0.87 4.35
1998 0.70 5.00 0.79 4.91
Class B
2003 (1) 1.47% 0.15% 1.49% 0.13%
2002 1.48 0.73 1.51 0.70
2001 1.48 3.74 1.51 3.71
2000 1.47 4.72 1.51 4.68
1999 1.45 3.78 1.51 3.72
1998 1.45 4.29 1.53 4.21
Class C
2003 (1) 1.46% 0.10% 1.48% 0.08%
2002 1.48 0.71 1.51 0.68
2001 1.49 3.66 1.51 3.64
2000 1.46 4.63 1.51 4.58
1999 (2) 1.45 3.75 1.51 3.69
Class D
2003 (1) 0.63% 0.96% 0.65% 0.94%
2002 0.63 1.61 0.66 1.58
2001 0.63 4.55 0.65 4.53
2000 0.62 5.62 0.66 5.58
1999 0.60 4.62 0.66 4.56
1998 0.60 5.13 0.68 5.05
Class I
2003 (1) 0.40% 1.20% 0.42% 1.18%
2002 0.40 1.85 0.43 1.82
2001 (3) 0.48 3.00 0.54 2.94
Class S
2003 (1) 0.78% 0.81% 0.80% 0.79%
2002 0.78 1.31 0.81 1.28
2001 (3) 0.00 0.00 0.00 0.00
Class Y
2003 (1) 0.48% 1.13% 0.50% 1.11%
2002 0.48 1.73 0.51 1.70
2001 0.48 4.78 0.50 4.76
2000 0.47 5.75 0.51 5.71
1999 0.45 4.78 0.51 4.72
1998 0.45 5.28 0.53 5.20
</Table>
(1) For the six months ended March 31, 2003 (unaudited). All ratios for the
period have been annualized, except total return and portfolio turnover.
(2) Commenced operations on February 1, 1999. All ratios for the period have
been annualized, except total return and portfolio turnover.
(3) Commenced operations on September 24, 2001. All ratios for the period have
been annualized, except total return and portfolio turnover.
(4) Total return does not reflect sales charges. Total return would have been
lower had certain expenses not been waived.
The accompanying notes are an integral part of the financial statements.
21
<Page>
<Table>
<Caption>
NET ASSET DIVIDENDS NET ASSET
VALUE NET FROM NET VALUE NET ASSETS
BEGINNING INVESTMENT INVESTMENT END OF TOTAL END OF
OF PERIOD INCOME INCOME PERIOD RETURN (8) PERIOD (000)
- ------------------------------------------------------------------------------------------------------------------------------------
TAX FREE OBLIGATIONS FUND (1)
Class A
2003 (2) $1.00 $0.003 $(0.003) $1.00 0.31% $391,319
2002 1.00 0.008 (0.008) 1.00 0.85 406,204
2001 1.00 0.027 (0.027) 1.00 2.72 497,631
2000 1.00 0.032 (0.032) 1.00 3.28 286,449
1999 1.00 0.025 (0.025) 1.00 2.51 268,626
1998 (3) 1.00 0.024 (0.024) 1.00 2.45 247,154
1997 (4) 1.00 0.010 (0.010) 1.00 0.96 28,662
Class D
2003 (2) $1.00 $0.004 $(0.004) $1.00 0.37% $23,484
2002 1.00 0.010 (0.010) 1.00 1.01 20,952
2001 1.00 0.028 (0.028) 1.00 2.86 32,615
2000 1.00 0.034 (0.034) 1.00 3.43 24,112
1999 1.00 0.026 (0.026) 1.00 2.66 33,464
1998 (3) 1.00 0.025 (0.025) 1.00 2.51 30,095
1997 (5) 1.00 -- -- 1.00 0.04 1
Class S
2003 (2) $1.00 $0.003 $(0.003) $1.00 0.30% $187,121
2002 1.00 0.008 (0.008) 1.00 0.85 206,647
2001 (6) 1.00 -- -- 1.00 0.02 402,813
Class Y
2003 (2) $1.00 $0.004 $(0.004) $1.00 0.45% $819,850
2002 1.00 0.011 (0.011) 1.00 1.16 584,132
2001 1.00 0.029 (0.029) 1.00 3.02 443,276
2000 1.00 0.035 (0.035) 1.00 3.59 375,891
1999 1.00 0.028 (0.028) 1.00 2.82 338,490
1998 (3) 1.00 0.026 (0.026) 1.00 2.67 272,995
1997 (4) 1.00 0.011 (0.011) 1.00 1.08 10,703
TREASURY OBLIGATIONS FUND
Class A
2003 (2) $1.00 $0.004 $(0.004) $1.00 0.38% $463,466
2002 1.00 0.013 (0.013) 1.00 1.34 230,541
2001 1.00 0.043 (0.043) 1.00 4.44 132,245
2000 1.00 0.052 (0.052) 1.00 5.27 30,506
1999 1.00 0.042 (0.042) 1.00 4.31 23,496
1998 (7) 1.00 0.045 (0.045) 1.00 4.54 101,749
Class D
2003 (2) $1.00 $0.004 $(0.004) $1.00 0.44% $5,922,539
2002 1.00 0.015 (0.015) 1.00 1.49 5,155,284
2001 1.00 0.045 (0.045) 1.00 4.54 3,996,702
2000 1.00 0.052 (0.052) 1.00 5.37 3,252,551
1999 1.00 0.043 (0.043) 1.00 4.41 3,852,189
1998 1.00 0.050 (0.050) 1.00 5.10 3,854,933
Class S
2003 (2) $1.00 $0.004 $(0.004) $1.00 0.36% $1,353,446
2002 1.00 0.013 (0.013) 1.00 1.34 1,648,326
2001 (6) 1.00 0.001 (0.001) 1.00 0.05 2,035,433
Class Y
2003 (2) $1.00 $0.005 $(0.005) $1.00 0.51% $3,836,213
2002 1.00 0.016 (0.016) 1.00 1.64 2,996,616
2001 1.00 0.046 (0.046) 1.00 4.70 2,929,764
2000 1.00 0.054 (0.054) 1.00 5.53 2,065,655
1999 1.00 0.045 (0.045) 1.00 4.57 2,620,803
1998 1.00 0.051 (0.051) 1.00 5.26 1,803,608
</Table>
(1) The financial highlights for the Tax Free Obligations Fund as set forth
herein include the historical financial highlights of the qualivest
Tax-Free Money Market Fund Class A and Y shares. The assets of the
Qualivest Tax-Free Money Market Fund were acquired by the Tax Free
Obligations Fund on November 25, 1997. In connection with such acquisition,
(i) Class A shares of the Qualivest Tax-Free Money Market Fund were
exchanged for Class A shares of the Tax Free Obligations Fund; and (ii)
Class Y and Class Q shares of the Qualivest Tax-Free Money Market Fund were
exchanged for Class Y shares of the Tax Free Obligations Fund.
(2) For the six months ended March 31, 2003 (unaudited). All ratios for the
period have been annualized, except total return and portfolio turnover.
(3) For the period December 1, 1997, to September 30, 1998. All ratios for the
period have been annualized, except total return and portfolio turnover.
The Fund's fiscal year end changed from December 31 to September 30,
effective September 30, 1998.The accompanying notes are an integral part of
the financial statements.
22
<Page>
<Table>
<Caption>
RATIO OF RATIO OF NET
RATIO OF NET EXPENSES TO INVESTMENT
RATIO OF INVESTMENT AVERAGE INCOME
EXPENSES TO INCOME NET ASSETS TO AVERAGE NET
AVERAGE TO AVERAGE (EXCLUDING ASSETS (EXCLUDING
NET ASSETS NET ASSETS WAIVERS) WAIVERS)
- ---------------------------------------------------------------------------------------------------------------
TAX FREE OBLIGATIONS FUND (1)
Class A
2003 (2) 0.72% 0.62% 0.78% 0.56%
2002 0.75 0.85 0.81 0.79
2001 0.74 2.63 0.80 2.57
2000 0.75 3.23 0.81 3.17
1999 0.74 2.47 0.82 2.39
1998 (3) 0.70 2.84 0.83 2.71
1997 (4) 0.89 2.83 1.23 2.49
Class D
2003 (2) 0.60% 0.74% 0.66% 0.68%
2002 0.60 1.03 0.66 0.97
2001 0.60 2.84 0.66 2.78
2000 0.60 3.36 0.66 3.30
1999 0.60 2.62 0.67 2.55
1998 (3) 0.60 3.02 0.73 2.89
1997 (5) 0.60 3.20 9.07 (5.27)
Class S
2003 (2) 0.75% 0.59% 0.81% 0.53%
2002 0.75 0.88 0.81 0.82
2001 (6) 0.70 1.67 0.76 1.61
Class Y
2003 (2) 0.45% 0.87% 0.51% 0.81%
2002 0.45 1.14 0.51 1.08
2001 0.45 2.93 0.51 2.87
2000 0.45 3.53 0.51 3.47
1999 0.45 2.75 0.52 2.68
1998 (3) 0.45 3.13 0.58 3.00
1997 (4) 0.64 3.09 0.97 2.76
TREASURY OBLIGATIONS FUND
Class A
2003 (2) 0.74% 0.74% 0.79% 0.69%
2002 0.75 1.29 0.81 1.23
2001 0.70 4.00 0.76 3.94
2000 0.70 5.16 0.76 5.10
1999 0.70 4.24 0.76 4.18
1998 (7) 0.70 4.88 0.76 4.82
Class D
2003 (2) 0.60% 0.87% 0.65% 0.82%
2002 0.60 1.48 0.66 1.42
2001 0.60 4.40 0.66 4.34
2000 0.60 5.23 0.66 5.17
1999 0.60 4.32 0.66 4.26
1998 0.60 4.98 0.66 4.92
Class S
2003 (2) 0.75% 0.73% 0.80% 0.68%
2002 0.75 1.34 0.81 1.28
2001 (6) 0.70 2.46 0.82 2.34
Class Y
2003 (2) 0.45% 1.01% 0.50% 0.96%
2002 0.45 1.62 0.51 1.56
2001 0.45 4.48 0.51 4.42
2000 0.45 5.39 0.51 5.33
1999 0.45 4.49 0.51 4.43
1998 0.45 5.13 0.51 5.07
</Table>
(4) For the period August 1, 1997, to November 30, 1997. All ratios for the
period have been annualized, except total return and portfolio turnover.
The Fund's fiscal year end changed from July 31 to November 30, effective
November 30, 1997.
(5) Commenced operations on November 26, 1997. All ratios for the period have
been annualized, except total return and portfolio turnover.
(6) Commenced operations on September 24, 2001. All ratios for the period have
been annualized, except total return and portfolio turnover.
(7) Commenced operations on November 3, 1997. All ratios for the period have
been annualized, except total return and portfolio turnover.
(8) Total return does not reflect sales charges. Total return would have been
lower had certain expenses not been waived.
The accompanying notes are an integral part of the financial statements.
23
<Page>
<Table>
<Caption>
NET ASSET DIVIDENDS NET ASSET
VALUE NET FROM NET VALUE NET ASSETS
BEGINNING INVESTMENT INVESTMENT END OF TOTAL END OF
OF PERIOD INCOME INCOME PERIOD RETURN (6) PERIOD (000)
- -----------------------------------------------------------------------------------------------------------------------------------
TREASURY RESERVE FUND (1)
Class A
2003 (2) $1.00 $0.003 $(0.003) $1.00 0.28% $2,755,722
2002 1.00 0.011 (0.011) 1.00 1.15 2,794,773
2001 (3) 1.00 0.039 (0.039) 1.00 3.97 2,760,479
2000 (4) 1.00 0.050 (0.050) 1.00 5.04 2,284,168
1999 (5) 1.00 0.040 (0.040) 1.00 4.02 1,049,641
1998 (5) 1.00 0.050 (0.050) 1.00 4.69 542,430
1997 (5) 1.00 0.050 (0.050) 1.00 4.85 469,400
</Table>
24
<Page>
<Table>
<Caption>
RATIO OF RATIO OF NET
RATIO OF NET EXPENSES TO INVESTMENT
RATIO OF INVESTMENT AVERAGE INCOME
EXPENSES TO INCOME NET ASSETS TO AVERAGE NET
AVERAGE TO AVERAGE (EXCLUDING ASSETS (EXCLUDING
NET ASSETS NET ASSETS WAIVERS) WAIVERS)
- ----------------------------------------------------------------------------------------------------------------
TREASURY RESERVE FUND (1)
Class A
2003 (2) 0.94% 0.56% 1.01% 0.49%
2002 0.94 1.15 1.00 1.09
2001 (3) 0.94 3.92 0.95 3.91
2000 (4) 0.99 4.98 1.09 4.88
1999 (5) 0.92 3.98 1.08 3.82
1998 (5) 0.88 4.58 1.08 4.38
1997 (5) 0.73 4.73 0.93 4.53
</Table>
(1) The financial highlights for the Treasury Reserve Fund as set forth herein
include the historical financial highlights of the Firstar U.S. Treasury
Money Market Fund Class A shares. The assets of the Firstar U.S. Treasury
Money Market Fund were acquired by the Treasury Reserve Fund on September
24, 2001. In connection with such acquisition, Class A shares of the
Firstar U.S. Treasury Money Market Fund were exchanged for Class A shares
of the Treasury Reserve Fund.
(2) For the six months ended March 31, 2003 (unaudited). All ratios for the
period have been annualized, except total return and portfolio turnover.
(3) For the period November 1, 2000, to September 30, 2001. All ratios for the
period have been annualized, except total return and portfolio turnover.
The Fund's fiscal year end changed from October 31 to September 30,
effective September 30, 2001.
(4) For the period December 1, 1999, to October 31, 2000. All ratios for the
period have been annualized, except total return and portfolio turnover.
The Fund's fiscal year end changed from November 30 to October 31,
effective October 31, 2000.
(5) For the year ended November 30.
(6) Total return does not reflect sales charges. Total return would have been
lower had certain expenses not been waived.
The accompanying notes are an integral part of the financial statements.
25
<Page>
NOTES TO FINANCIAL STATEMENTS March 31, 2003 (unaudited)
1 > Organization
The First American Government Obligations Fund, Ohio Tax Free Obligations
Fund, Prime Obligations Fund, Tax Free Obligations Fund, Treasury
Obligations Fund, and Treasury Reserve Fund (each a "Fund" and
collectively, the "Funds") are mutual funds offered by First American
Funds, Inc. ("FAF"), which is a member of the First American Family of
Funds. FAF is registered under the Investment Company Act of 1940, as
amended, as an open-end investment management company. FAF's articles of
incorporation permit the board of directors to create additional funds in
the future.
FAF offers Class A, Class B, Class C, Class D, Class I, Class S, and Class
Y shares. Class A shares are not subject to sales charges. Class B and
Class C shares of the Prime Obligations Fund are only available pursuant to
an exchange for Class B and Class C shares, respectively, of another fund
in the First American Family of Funds. Class B shares may be subject to a
contingent deferred sales charge for six years and automatically convert to
Class A shares after eight years. Class C shares may be subject to a
contingent deferred sales charge for 18 months. Class D, Class I, Class S,
and Class Y shares are offered only to qualifying institutional investors.
Treasury Reserve Fund offers only a single class of shares, which are not
subject to sales charges. Class B, Class C, and Class I shares are not
offered by the Government Obligations Fund, Ohio Tax Free Obligations, Tax
Free Obligations Fund, or Treasury Obligations Fund, and Class D shares are
not offered by Ohio Tax Free Obligations Fund.
The Funds' prospectuses provide descriptions of each Fund's investment
objectives, policies, and strategies. All classes of shares in FAF have
identical voting, dividend, liquidation, and other rights, and the same
terms and conditions, except that the level of distribution and shareholder
servicing fees charged may differ among classes and each class has
exclusive voting rights on any matters relating to that class' servicing or
distribution arrangements.
2 > Summary of Significant Accounting Policies
The significant accounting policies followed by the Funds are as follows:
SECURITY VALUATION - Investment securities held are stated at amortized
cost, which approximates market value. Under the amortized cost method, any
discount or premium is amortized ratably to the expected maturity of the
security and is included in interest income. In accordance with Rule 2a-7
of the Securities and Exchange Act of 1940, the market value of the
securities held in the Funds are determined weekly using prices supplied by
the Funds' pricing services. This value is then compared to the securities'
amortized cost. Securities whose market price varies by more than 0.5% are
identified and validated with the pricing agent. If the difference between
the aggregate market price and aggregate amortized cost of all securities
held by a Fund exceeds 50% of the allowable 0.5% threshold, the
administrators will notify the Funds' board of directors. The board of
directors will be kept apprised of the situation until the difference is
under the 50% of the allowable 0.5% threshold.
SECURITY TRANSACTIONS AND INVESTMENT INCOME - The Funds record security
transactions on the trade date of the security purchase or sale. Interest
income, including amortization of bond premium and discount, is recorded on
an accrual basis.
DISTRIBUTIONS TO SHAREHOLDERS - Distributions from net investment income
are declared on a daily basis and are payable on the first business day of
the following month.
EXPENSES - Expenses that are directly related to one of the Funds are
charged directly to that Fund. Other operating expenses are generally
allocated to the Funds on the basis of relative net assets of all Funds
within the First American Fund complex. Class specific expenses, such as
12b-1 fees, are borne by that class. Income, other expenses, and realized
and unrealized gains and losses of a Fund are allocated to each respective
class in proportion to the relative net assets of each class.
FEDERAL TAXES - It is each Fund's intention to continue to qualify as a
regulated investment company and distribute all of its taxable income.
Accordingly, no provision for federal income taxes is required.
26
<Page>
Net investment income and net realized gains (losses) may differ for
financial statement and tax purposes because of temporary or permanent
book/tax differences.
The character of distributions made during the year from net investment
income or net realized gains may differ from its ultimate characterization
for federal income tax purposes.
The character of the distributions paid and declared for the six months
ended March 31, 2003 (estimated), and the fiscal year ended September 30,
2002, were as follows:
<Table>
<Caption>
2003
--------------------------------------------------------------------------------------------------------
ORDINARY TAX-EXEMPT
INCOME INCOME TOTAL
FUND (000) (000) (000)
--------------------------------------------------------------------------------------------------------
Government Obligations $14,285 $ -- $14,285
Ohio Tax Free Obligations -- 204 204
Prime Obligations 92,242 -- 92,242
Tax Free Obligations -- 5,153 5,153
Treasury Obligations 44,506 -- 44,506
Treasury Reserve 7,573 -- 7,573
--------------------------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
2002
--------------------------------------------------------------------------------------------------------
ORDINARY TAX-EXEMPT
INCOME INCOME TOTAL
FUND (000) (000) (000)
--------------------------------------------------------------------------------------------------------
Government Obligations $ 38,804 $ -- $ 38,804
Ohio Tax Free Obligations -- 751 751
Prime Obligations 300,662 -- 300,662
Tax Free Obligations -- 13,146 13,146
Treasury Obligations 140,792 -- 140,792
Treasury Reserve 32,018 -- 32,018
--------------------------------------------------------------------------------------------------------
</Table>
As of September 30, 2002, the Funds' most recently completed fiscal year
end, the components of accumulated earnings (deficit) on a tax basis were:
<Table>
<Caption>
GOVERNMENT OHIO TAX FREE PRIME
OBLIGATIONS OBLIGATIONS OBLIGATIONS
(000) (000) (000)
--------------------------------------------------------------------------------------------------------
Undistributed ordinary income $2,895 $-- $20,407
Undistributed tax exempt income -- 40 --
------- ------- -------
Accumulated earnings 2,895 40 20,407
Accumulated capital and post-October losses (12) -- --
------- ------- -------
Total accumulated earnings $2,883 $40 $20,407
--------------------------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
TAX FREE TREASURY TREASURY
OBLIGATIONS OBLIGATIONS RESERVE
(000) (000) (000)
--------------------------------------------------------------------------------------------------------
Undistributed ordinary income $ -- $9,748 $2,034
Undistributed tax exempt income 999 -- --
------- ------- -------
Accumulated earnings 999 9,748 2,034
Accumulated capital and post-October losses (9) (64) --
------- ------- -------
Total accumulated earnings $990 $9,684 $2,034
--------------------------------------------------------------------------------------------------------
</Table>
The differences between book-basis and tax-basis undistributed/accumulated
income, gains, and losses is primarily due to distributions declared but
not paid by September 30, 2002.
In addition, due to the timing of dividend distributions, the fiscal year
in which the amounts are distributed may differ from the year that the
income or realized gains (losses) were recorded by the Fund. To the extent
these differences are permanent, adjustments are made to the appropriate
equity accounts in the period that the differences arise.
27
<Page>
As of September 30, 2002, the following Funds had capital loss
carryforwards:
<Table>
<Caption>
AMOUNT
FUND (000) EXPIRATION DATE
----------------------------------------------------------------
Government Obligations $12 2007-2008
Tax Free Obligations 9 2003-2009
Treasury Obligations 64 2008
</Table>
REPURCHASE AGREEMENTS - Each Fund may enter into repurchase agreements with
member banks of the Federal Reserve or registered broker dealers whom the
Funds' investment advisor deems 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 Fund plus interest
negotiated on the basis of current short-term rates.
Securities pledged as collateral for repurchase agreements are held by the
custodian bank until the respective agreements mature. Each Fund may also
invest in triparty repurchase agreements. Securities held as collateral for
triparty repurchase agreements are maintained in a segregated account by
the broker's custodian bank until the maturity of the repurchase agreement.
Provisions of the repurchase agreements ensure that the market value of the
collateral, including accrued interest thereon, is sufficient in the event
of default of the counter party. If the counterparty defaults and the value
of the collateral declines or if the counterparty enters an insolvency
proceeding, realization of the collateral by the Fund may be delayed or
limited.
SECURITIES LENDING - Each Fund may lend up to one-third of the value of its
total assets to broker-dealers, banks, or other institutional borrowers of
securities in order to earn additional income. Each Fund's policy is to
maintain collateral in the form of cash, U.S. Government securities, or
other high-grade debt obligations equal to at least 100% of the value of
securities loaned. The collateral is then "marked to market" daily until
the securities are returned. USBAM acts as the securities lending agent in
transactions involving the lending of portfolio securities on behalf of the
Funds. For these services, USBAM received $54,322 in securities lending
fees for the six months ended March 31, 2003, from the Government
Obligations Fund.
HISTORICAL FINANCIAL STATEMENT INFORMATION - The financial information
presented for Tax Free Obligations Fund prior to November 25, 1997, is that
of the former Qualivest Tax Free Money Market Fund. The financial
information presented for Ohio Tax Free Obligations Fund prior to September
26, 2001, is that of the Firstar Ohio Tax-Exempt Money Market Fund. The
financial information presented for Treasury Reserve Fund prior to
September 24, 2001, is that of the Firstar U.S. Treasury Money Market Fund,
Class A. The historical financial information of the Qualivest Fund and the
Firstar funds was carried over to the newly formed FAF Funds.
USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS - The
preparation of financial statements, in conformity with accounting
principles generally accepted in the United States, requires management to
make estimates and assumptions that affect the reported amount of net
assets and liabilities and disclosure of contingent assets and liabilities
at the date of the financial statements and the reported results of
operations during the reporting period. Actual results could differ from
those estimates.
3 > Fees and Expenses
ADVISORY FEES - Pursuant to an investment advisory agreement (the
"Agreement"), U.S. Bancorp Asset Management, Inc. ("USBAM"), manages each
Fund's assets and furnishes related office facilities, equipment, research,
and personnel. The Agreement requires each Fund to pay USBAM a monthly fee
based upon average daily net assets. The fee for the Funds is equal to an
annual rate of 0.35% of the average daily net assets of each Fund. USBAM
voluntarily waived fees during the current fiscal period so that the total
fund operating expenses did not exceed expense limitations described in the
Funds' prospectuses.
CO-ADMINISTRATION FEES - USBAM and U.S. Bancorp Fund Services, LLC
("USBFS"), (collectively, the "Administrators"), serve as co-administrators
pursuant to a co-administration agreement between the Administrators and
the Funds. USBAM is a subsidiary of U.S. Bank National Association ("U.S.
Bank"). Both U.S. Bank and USBFS are direct subsidiaries of U.S. Bancorp.
Under the co-administration agreement, the Administrators are compensated
to provide or compensate other entities to provide services to the Funds.
These services include various legal, oversight, and administrative
services, accounting services, transfer agency and dividend
28
<Page>
disbursing services, and shareholder services. The Funds pay the
Administrators at an annual rate, calculated daily and paid monthly based
on the average daily net assets of all open-end mutual funds in the First
American Family of Funds equal to each Fund's pro rata share of an amount
equal to 0.15% on the first $8 billion of average net assets, 0.135% on the
next $17 billion, 0.12% on the next $25 billion, and 0.10% on the remaining
average net assets in the First American Family of Funds. For Class S
shares, the amount paid is increased by 0.05%. In addition, the Funds pay
the Administrators annual fees of $18,500 per class and additional per
account fees for transfer agent services.
For the six months ended March 31, 2003, administration fees paid to USBAM
and USBFS for the Funds included in this semiannual report were as follows:
<Table>
<Caption>
AMOUNT
FUND (000)
------------------------------------------------------------
Government Obligations Fund $ 1,972
Ohio Tax Free Obligations Fund 58
Prime Obligations Fund 13,002
Tax Free Obligations Fund 987
Treasury Obligations Fund 6,820
Treasury Resereve Fund 1,769
</Table>
During the six month period ended March 31, 2003 administration fees of
$1,058,191 were waived on Class I of Prime Obligations Fund.
CUSTODIAN FEES - Through a separate contractual agreement, U.S. Bank serves
as the Funds' custodian. The fee for each Fund is equal to an annual rate
of 0.01% of average daily net assets, which is computed daily and paid
monthly.
DISTRIBUTION AND SHAREHOLDER SERVICING FEES - Quasar Distributors, LLC
("Quasar"), a subsidiary of U.S. Bancorp, serves as the distributor of the
Funds. Under the respective distribution plan each of the Funds pays Quasar
a monthly distribution fee equal to an annual rate of 0.25% of each Fund's
average daily net assets of the Class A shares, 1.00% of the Class B
shares, 1.00% of the Class C shares, 0.15% of the Class D shares, and 0.50%
of the Treasury Reserve Fund, which may be used by Quasar to provide
compensation for sales support, distribution activities, and shareholder
servicing activities.
FAF has adopted and entered into a shareholder service plan and agreement
with Quasar with respect to the Class S shares. Each Fund pays to Quasar a
monthly shareholder servicing fee equal to an annual rate of 0.25% of each
Fund's average daily net assets of the Class S shares. No distribution fees
are paid by Class Y or I shares. Under these distribution and servicing
agreements, the following amounts were retained by Quasar or paid to
affiliates of USBAM for the six months ended March 31, 2003:
<Table>
<Caption>
AMOUNT
FUND (000)
------------------------------------------------------------
Government Obligations Fund $ 778
Ohio Tax Free Obligations Fund --
Prime Obligations Fund 7,002
Tax Free Obligations Fund 2,396
Treasury Obligations Fund 2,398
Treasury Reserve Fund 6,881
</Table>
SALES CHARGES - Class B shares are subject to a Contingent Deferred Sales
Charge ("CDSC") imposed on redemptions made in Class B shares for the first
six years, and automatically convert to Class A shares after eight years.
The CDSC varies depending on the number of years from time of payment for
the purchase of Class B shares until the redemption of such shares.
<Table>
<Caption>
CONTINGENT DEFERRED SALES CHARGE
AS A PERCENTAGE OF DOLLAR
YEAR SINCE PURCHASE AMOUNT SUBJECT TO CHARGE
------------------------------------------------------------
First 5.00%
Second 5.00%
Third 4.00%
Fourth 3.00%
Fifth 2.00%
Sixth 1.00%
Seventh --
Eighth --
</Table>
A CDSC of 1.00% is imposed on redemptions made in Class C shares for the
first 18 months.
The CDSC for Class B shares and Class C shares is imposed on the value of
the purchased shares, or the value at the time of redemption, whichever is
less.
OTHER FEES - In addition to the advisory fees, custodian fees, distribution
fees, and co-administration fees, each Fund is responsible for paying most
other operating expenses including fees and expenses of outside directors,
registration fees, printing of shareholder reports, legal, auditing,
insurance, and other miscellaneous expenses.
For the six months ended March 31, 2003, legal fees and expenses were paid
to a law firm of which the Secretary and two Assistant Secretaries of the
Funds are partners.
29
<Page>
4 > Concentration of Credit Risk
Tax Free Obligations Fund and Ohio Tax Free Obligations Fund invest in
securities that include revenue bonds, tax and revenue anticipation notes,
and general obligation bonds. At March 31, 2003, the percentage of
portfolio investments by each revenue source was as follows:
<Table>
<Caption>
TAX FREE OHIO TAX FREE
OBLIGATIONS OBLIGATIONS
FUND FUND
---------------------------------------------------------------
Revenue Bonds 71% 77%
General Obligations 24 18
U.S. Government 3 --
Investment Companies 2 5
------------------------------
100% 100%
</Table>
The credit ratings of long-term debt as a percentage of total market value
of investments at March 31, 2003, were as follows:
<Table>
<Caption>
STANDARD & POOR'S/ TAX FREE OHIO TAX FREE
MOODY'S OBLIGATIONS OBLIGATIONS
RATINGS: FUND FUND
---------------------------------------------------------------
AAA/Aaa 41% 24%
AA/Aa 48 40
A/A 11 27
NR -- 8
------------------------------
100% 100%
</Table>
Securities rated by only one agency are shown in that category. Securities
rated by both agencies are shown with their lowest rating.
30
<Page>
BOARD OF DIRECTORS FIRST AMERICAN FUNDS, INC.
ROGER GIBSON
Director of First American Funds, Inc.
Vice President, Cargo-United Airlines
LEONARD KEDROWSKI
Director of First American Funds, Inc.
Owner and President of Executive and Management Consulting, Inc.
JOHN MURPHY JR.
Director of First American Funds, Inc.
Retired; former Executive Vice President of U.S. Bancorp
RICHARD RIEDERER
Director of First American Funds, Inc.
Retired; former President and Chief Executive Officer of Weirton Steel
JOSEPH STRAUSS
Director of First American Funds, Inc.
Former Chairperson of First American Funds, Inc.
Owner and President of Strauss Management Company
VIRGINIA STRINGER
Chairperson of First American Funds, Inc.
Owner and President of Strategic Management Resources, Inc.
JAMES WADE
Director of First American Funds, Inc.
Owner and President of Jim Wade Homes
<Page>
[LOGO OF FIRST AMERICAN FUNDS]
DIRECT FUND CORRESPONDENCE TO:
FIRST AMERICAN FUNDS
P.O. Box 1330
Minneapolis, MN 55440-1330
This report and the financial statements contained herein are submitted for the
general information of the shareholders of the corporation and are not intended
to be a forecast of future events, a guarantee of future results, nor investment
advice. Further, there is no assurance that certain securities will remain in or
out of each fund's portfolio.
This material must be preceded or accompanied by a current prospectus, which
contains more complete information about First American Funds, including risks,
fees, and expenses. Please contact your investment professional, call First
American Funds Investor Services at 800.677.FUND, or visit
firstamericanfunds.com for additional information about First American Funds.
Past performance does not guarantee future results. The principal value of an
investment will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost.
INVESTMENT ADVISOR
U.S. BANCORP ASSET MANAGEMENT, INC.
800 Nicollet Mall
Minneapolis, Minnesota 55402
CO-ADMINISTRATORS
U.S. BANCORP ASSET MANAGEMENT, INC.
800 Nicollet Mall
Minneapolis, Minnesota 55402
U.S. BANCORP FUND SERVICES, LLC
615 East Michigan Street
Milwaukee, Wisconsin 53202
CUSTODIAN
U.S. BANK NATIONAL ASSOCIATION
180 East Fifth Street
St. Paul, Minnesota 55101
DISTRIBUTOR
QUASAR DISTRIBUTORS, LLC
615 East Michigan Street, 2nd floor
Milwaukee, Wisconsin 53202
INDEPENDENT AUDITORS
ERNST & YOUNG LLP
220 South Sixth Street
Suite 1400
Minneapolis, Minnesota 55402
COUNSEL
DORSEY & WHITNEY LLP
50 South Sixth Street
Suite 1500
Minneapolis, Minnesota 55402
FIRST AMERICAN FUNDS
P.O. Box 1330
Minneapolis, MN 55440-1330
In an attempt to reduce shareholder costs and help eliminate duplication, First
American Funds will try to limit their mailing to one report for each address
that lists one or more shareholders with the same last name. If you would like
additional copies, please call First American Funds Investor Services at
800.677.FUND. Visit us at firstamericanfunds.com.
2050-03 5/2003 SAR-MM
<Page>
Item 2 - Did registrant adopt a code of ethics, as of the end of the period
covered by this report, that applies to the registrant's principal executive
officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions, regardless of whether these
individuals are employed by the registrant or a third party? If not, why not?
Briefly describe any amendments or waivers that occurred during the period.
State here if code of ethics/amendments/waivers are on website and give website
address-. State here if fund will send code of ethics to shareholders without
charge upon request-- N/A (not answered until July 15, 2003 and only annually
for funds)
Item 3 - Did the registrant's board of directors determine that the registrant
either: (i) has at least one audit committee financial expert serving on its
audit committee; or (ii) does not have an audit committee financial expert
serving on its audit committee? If yes, disclose name of financial expert and
whether he/she is "independent," (fund may, but is not required, to disclose
name/independence of more than one financial expert) If no, explain why not. -
N/A (not answered until July 15, 2003 and only annually for funds)
Item 4 - Disclose annually only (not answered until December 15, 2003)
(a) Audit Fees - Disclose aggregate fees billed for each of the last two
fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial
statements or services that are normally provided by the accountant in
connection with statutory and regulatory filings or engagements for
those fiscal years. N/A.
(b) Audit-Related Fees - Disclose aggregate fees billed in each of the
last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of
the audit of the registrant's financial statements and are not
reported under paragraph (a) of this Item. Registrants shall describe
the nature of the services comprising the fees disclosed under this
category. N/A.
(c) Tax Fees - Disclose aggregate fees billed in each of the last two
fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning.
Registrants shall describe the nature of the services comprising the
fees disclosed under this category. N/A.
(d) All Other Fees - Disclose aggregate fees billed in each of the last
two fiscal years for products and services provided by the principal
accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category. N/A.
(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. N/A.
(e)(2) Disclose the percentage of services described in each of paragraphs
(b) through (d) of this Item that were approved by the audit committee
pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
N/A.
(f) If greater than 50%, disclose the percentage of hours expended on the
principal accountant's engagement to audit the registrant's financial
statements for the most recent fiscal year that were attributed to
work performed by persons other than the principal accountant's
full-time, permanent employees. N/A.
<Page>
(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. N/A.
(h) Disclose whether the registrant's audit committee has considered
whether the provision of non-audit services that were rendered to the
registrant's investment adviser (not including any subadviser whose
role is primarily portfolio management and is subcontracted with or
overseen by another investment adviser), and any entity controlling,
controlled by, or under common control with the investment adviser
that provides ongoing services to the registrant that were not
pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of
Regulation S-X is compatible with maintaining the principal
accountant's independence. N/A.
Items 5-6 - Reserved
Item 7 - For closed - end funds that contain voting securities in their
portfolio, describe the policies and procedures that it uses to determine how to
vote proxies relating to those portfolio securities. N/A.
Item 8 -- Reserved
Item 9(a)- Disclose the conclusions of the registrant's principal executive
officer or officers and principal financial officer or officers, or persons
performing similar functions, about the effectiveness of the registrant's
disclosure controls and procedures (as defined in Rule 30a-2(c) under the Act
(17 CFR 270.30a-2(c))) based on their evaluation of these controls and
procedures as of a date within 90 days of the filing date of the report that
includes the disclosure required by this paragraph. N/A.
Item 9(b)-- Disclose whether or not there were significant changes in the
registrant's internal controls or in other factors that could significantly
affect these controls subsequent to the date of their evaluation, including any
corrective actions with regard to significant deficiencies and material
weaknesses. N/A
Item 10 - Exhibits
10(a) - Attach code of ethics or amendments/waivers, unless code of ethics or
amendments/waivers is on website or offered to shareholders upon request without
charge. N/A.
10(b) - Attach certifications (4 in total pursuant to Sections 302 and 906 for
CEO/CFO). Attached hereto.
SIGNATURES
<Page>
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
First American Funds, Inc.
By /s/ Thomas S. Schreier, Jr.
----------------------------
Thomas S. Schreier, Jr.
President
Date: May ____, 2003
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By /s/ Thomas S. Schreier, Jr.
----------------------------
Thomas S. Schreier, Jr.
President
Date: May ____, 2003
By /s/ Robert H. Nelson
---------------------
Robert H. Nelson
Treasurer
Date: May ____, 2003