<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 811-05309
---------------------------------------------
First American Investment Funds, Inc.
- -------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
800 Nicollet Mall Minneapolis, MN 55402
- -------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
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>
[GRAPHIC]
[FIRST AMERICAN FUNDS(TM) LOGO]
2003
SEMIANNUAL REPORT
STOCK 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>
[GRAPHIC]
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.
[SIDENOTE]
OUR FUND FAMILY
- - HIGHER RISK AND RETURN POTENTIAL
- - SECTOR FUNDS
- REAL ESTATE SECURITIES
- TECHNOLOGY
- - INTERNATIONAL FUND
- INTERNATIONAL
- - SMALL CAP FUNDS
- SMALL CAP GROWTH OPPORTUNITIES
- SMALL CAP SELECT
- SMALL CAP VALUE
- - MID CAP FUNDS
- MID CAP GROWTH OPPORTUNITIES
- MID CAP VALUE
- - LARGE CAP FUNDS
- LARGE CAP GROWTH OPPORTUNITIES
- LARGE CAP SELECT
- LARGE CAP VALUE
- - GROWTH & INCOME FUNDS
- BALANCED
- EQUITY INCOME
INDEX FUNDS
ASSET ALLOCATION FUNDS
BOND FUNDS
TAX FREE BOND FUNDS
MONEY MARKET FUNDS
- - LOWER RISK AND RETURN POTENTIAL
Fund categories are presented according to risk and return potential. Funds
within each category are listed in alphabetical order.
MUTUAL FUND INVESTING INVOLVES RISK; PRINCIPAL LOSS IS POSSIBLE.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
<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.
[SIDENOTE]
TABLE OF CONTENTS
SECTOR FUNDS
Schedule of Investments 2
Statements of Assets and Liabilities 6
Statements of Operations 7
Statements of Changes in Net Assets 8
Financial Highlights 10
INTERNATIONAL FUND
Schedule of Investments 12
Statement of Assets and Liabilities 15
Statement of Operations 16
Statements of Changes in Net Assets 17
Financial Highlights 18
SMALL CAP FUNDS
Schedule of Investments 20
Statements of Assets and Liabilities 28
Statements of Operations 29
Statements of Changes in Net Assets 30
Financial Highlights 32
MID CAP FUNDS
Schedule of Investments 37
Statements of Assets and Liabilities 41
Statements of Operations 42
Statements of Changes in Net Assets 43
Financial Highlights 44
LARGE CAP FUNDS
Schedule of Investments 46
Statements of Assets and Liabilities 53
Statements of Operations 54
Statements of Changes in Net Assets 55
Financial Highlights 56
GROWTH & INCOME FUNDS
Schedule of Investments 60
Statements of Assets and Liabilities 70
Statements of Operations 71
Statements of Changes in Net Assets 72
Financial Highlights 74
Notes to Financial Statements 76
1
<Page>
SCHEDULE OF INVESTMENTS March 31, 2003 (unaudited)
REAL ESTATE SECURITIES FUND
<Table>
<Caption>
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------------------------------
COMMON STOCKS - 95.5%
REAL ESTATE INVESTMENT TRUSTS - 95.5%
DIVERSIFIED - 8.4%
Cousins Properties 61,900 $ 1,600
Rouse (A) 176,800 6,108
St. Joe 43,900 1,194
Vornado Realty Trust 110,100 3,942
------------
12,844
------------
FINANCIAL SERVICES - 0.4%
Newcastle Investment (C) (D) 35,000 545
------------
HOTELS - 4.3%
Hilton Hotels 126,000 1,463
Hospitality Properties Trust 65,650 2,006
Innkeepers USA Trust 83,200 541
Lasalle Hotel Properties 107,300 1,282
Starwood Hotels & Resorts Worldwide 55,400 1,318
------------
6,610
------------
OFFICE/INDUSTRIAL - 36.3%
Alexandria Real Estate Equities 69,400 2,918
Arden Realty 6,700 152
Boston Properties 154,200 5,844
Brookfield Properties 76,500 1,503
CarrAmerica Realty Trust 66,350 1,682
Centerpoint Properties Trust (A) 50,000 2,890
Duke Realty Investments 124,900 3,370
Eastgroup Properties 29,300 749
Equity Office Properties Trust 231,123 5,882
HRPT Properties Trust 171,400 1,459
Keystone Property Trust 132,700 2,282
Kilroy Realty 69,400 1,534
Liberty Property Trust (A) 92,950 2,909
Mission West Properties 45,800 431
Parkway Properties 102,700 3,870
Prentiss Properties Trust 122,600 3,322
Prologis 284,200 7,196
PS Business Parks 71,000 2,112
Reckson Associates Realty (A) 71,600 1,346
SL Green Realty (A) 130,300 3,982
------------
55,433
------------
RESIDENTIAL - 14.7%
Apartment Investment & Management (A) 98,100 3,579
Boardwalk Equities 144,600 1,434
Camden Property Trust 22,300 723
Equity Residential Properties Trust (A) 142,800 3,437
Essex Property Trust 111,700 5,836
Home Properties of New York (A) 93,900 3,117
Manufactured Home Communities 51,700 1,530
Sun Communities 41,300 1,479
United Dominion Realty Trust 85,000 1,358
------------
22,493
------------
RETAIL/MALLS - 25.9%
CBL & Associates Properties 111,500 4,526
Chelsea Property Group 149,100 5,554
Developers Diversified 123,203 2,975
Equity One (A) 139,800 2,138
Federal Realty Investment Trust 51,100 1,552
<Caption>
DESCRIPTION SHARES/PAR (000) VALUE (000)
- --------------------------------------------------------------------------------------------------------
General Growth Properties (A) 115,200 $ 6,215
Kimco Realty 108,655 3,816
Mid-Atlantic Realty Trust 43,000 784
Mills 88,300 2,755
Pan Pacific Retail Properties 52,500 1,987
Simon Property Group (A) 160,940 5,767
Taubman Centers 50,000 852
Urstadt Biddle Properties 50,000 599
------------
39,520
------------
SELF STORAGE - 2.5%
Public Storage 124,700 3,778
------------
SPECIALTY REAL ESTATE - 3.0%
Capital Automotive 123,100 3,070
Entertainment Properties Trust 59,900 1,587
------------
4,657
------------
TOTAL REAL ESTATE INVESTMENT TRUSTS 145,880
------------
TOTAL COMMON STOCKS 145,880
------------
PREFERRED STOCKS - 0.5%
Beacon Capital Partnership* (C) 33,750 384
Wyndham International* (C) 1,927 193
Wyndham Voting Trust* (C) 1,103 110
------------
TOTAL PREFERRED STOCKS 687
------------
RELATED PARTY MONEY MARKET FUND - 2.0%
First American Prime Obligations Fund, ClY (B) 3,078,443 3,079
------------
TOTAL RELATED PARTY MONEY MARKET FUND 3,079
------------
INVESTMENTS PURCHASED WITH CASH
PROCEEDS FROM SECURITIES LENDING - 22.2%
COMMERCIAL PAPER - 3.2%
CS First Boston
1.638%, 12/01/03 $ 595 595
Danske Bank
1.508%, 12/22/03 595 595
Goldman Sachs
1.518%, 08/28/03 774 774
Morgan Stanley
1.518%, 06/17/03 297 297
1.518%, 07/08/03 214 214
1.518%, 09/22/03 298 298
Orchard Park
1.475%, 01/06/04 595 595
UBS Financial
1.390%, 04/01/03 1,488 1,488
------------
TOTAL COMMERCIAL PAPER 4,856
------------
CORPORATE OBLIGATIONS - 2.4%
CS First Boston
1.760%, 04/11/03 595 595
Deutsche Bank
1.470%, 03/22/03 297 297
1.580%, 12/31/03 238 238
General Electric Capital Corporation
1.355%, 07/09/07 298 298
</Table>
The accompanying notes are an integral part of the financial statements.
2
<Page>
<Table>
<Caption>
DESCRIPTION SHARES/PAR (000) VALUE (000)
- --------------------------------------------------------------------------------------------------------
Merrill Lynch
1.538%, 05/05/03 $ 506 $ 506
Monet Trust
1.360%, 12/28/03 595 595
SMM Trust 2002-M
1.320%, 09/23/03 595 595
URI Trust
1.329%, 09/18/03 595 595
------------
TOTAL CORPORATE OBLIGATIONS 3,719
------------
MONEY MARKET FUNDS - 2.1%
AIM Liquid Assets Portfolio 1,011,678 1,012
Dreyfus Cash Manage Plus Fund 59,510 60
Evergreen Institutional Money Market Fund 208,287 208
HSBC Investor Money Market Fund - Cl I 178,531 178
Merrill Lynch Premier Institutional Fund 1,152,630 1,153
Merrimac Cash Series Fund 178,531 178
One Group Institutional Prime Money Market Fund 357,063 357
Reserve Primary Fund 29,755 30
------------
TOTAL MONEY MARKET FUNDS 3,176
------------
OTHER SHORT-TERM INVESTMENTS - 2.0%
Allied Irish Bank
1.330%, 06/02/03 298 298
1.340%, 05/09/03 595 595
Commonwealth Life
1.678%, 04/01/03 300 300
General Electric Capital Assurance
1.370%, 12/19/03 119 119
Premium Asset Trust 02-7
1.381%, 08/23/03 379 379
Security Life Denver
1.490%, 03/15/04 595 595
1.381%, 01/13/04 774 774
------------
TOTAL OTHER SHORT-TERM INVESTMENTS 3,060
------------
REPURCHASE AGREEMENTS - 12.5%
Bear Stearns
1.420%, 04/10/03 1,190 1,190
CS First Boston
1.370%, 04/01/03 1,190 1,190
1.380%, 04/01/03 184 184
1.380%, 04/01/03 1,488 1,488
Goldman Sachs
1.360%, 06/10/03 298 298
1.400%, 06/11/03 298 298
1.420%, 04/07/03 595 595
1.520%, 04/01/03 893 893
Greenwich Capital Markets
1.430%, 04/01/03 1,785 1,785
Lehman Brothers
1.560%, 04/01/03 595 595
1.640%, 04/01/03 446 446
1.640%, 04/01/03 1,934 1,934
Merrill Lynch
1.560%, 04/01/03 744 744
1.360%, 04/01/03 1,785 1,785
1.500%, 04/01/03 893 893
1.560%, 04/01/03 1,190 1,190
Morgan Stanley
1.470%, 04/01/03 893 893
1.510%, 04/01/03 1,851 1,851
Salomon Smith Barney
1.540%, 04/01/03 $ 893 $ 893
------------
TOTAL REPURCHASE AGREEMENTS 19,145
------------
TOTAL INVESTMENTS PURCHASED WITH CASH PROCEEDS FROM
SECURITIES LENDING (Cost $33,956) 33,956
------------
TOTAL INVESTMENTS - 120.2%
(Cost $176,178) 183,602
------------
OTHER ASSETS AND LIABILITIES, NET - (20.2)% (30,900)
------------
TOTAL NET ASSETS - 100.0% $ 152,702
------------
</Table>
* Non-income producing security
(A) This security or a portion of this security is out on loan at March 31,
2003. Total loaned securities had a value of $32,442,472 at March 31, 2003.
See note 2 in Notes to Financial Statements for additional information.
(B) This money market fund is advised by U.S. Bancorp Asset Management, Inc.,
which also serves as advisor for this Fund. See note 3 in Notes to
Financial Statements for additional information.
(C) Private placement security considered illiquid investment under guidelines
established by the board of directors. As of March 31, 2003, the value of
these investments is $1,231,976 or 0.8% of total net assets.
(D) Security is valued at fair value under guidelines established and approved
by the board of directors. Total fair valued securities had a value of
$545,469, which represents 0.4% of total net assets at March 31, 2003. See
note 2 in Notes to Financial Statements for additional information.
Cl - Class
3
<Page>
TECHNOLOGY FUND
<Table>
<Caption>
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------------------------------
COMMON STOCKS - 99.2%
CAPITAL GOODS - 2.7%
Aeroflex* 170,100 $ 963
DRS Technologies* 24,600 615
L-3 Communications Holdings* (A) 18,000 723
------------
2,301
------------
CONSUMER DISCRETIONARY - 0.4%
Championship Auto Racing Teams* (A) 84,950 311
------------
COMMECIAL SERVICES & SUPPLIES - 1.4%
Kroll* (A) 54,700 1,171
------------
HEALTH CARE EQUIPMENT & SERVICES - 4.5%
Beckman Coulter (A) 31,650 1,077
Given Imaging* (A) 149,050 1,297
Laboratory Corporation of America Holdings* (A) 46,300 1,373
------------
3,747
------------
MEDIA - 4.1%
AOL Time Warner* 40,150 436
Clear Channel Communications* 24,050 816
DoubleClick* 150,250 1,167
USA Interactive* (A) 39,150 1,049
------------
3,468
------------
PHARMACEUTICALS & BIOTECHNOLOGY - 0.6%
Alpharma, Cl A 26,650 478
------------
SOFTWARE & SERVICES - 30.3%
Accenture* (A) 58,200 902
Adobe Systems (A) 61,350 1,891
Affiliated Computer Services, Cl A* (A) 18,850 834
Altiris* 72,100 901
Autodesk (A) 78,500 1,198
Borland Software* (A) 77,250 711
Computer Associates International (A) 90,750 1,240
Documentum* 54,900 720
Electronic Arts* 17,850 1,047
Hyperion Solutions* (A) 24,100 584
Informatica* 154,600 997
Infosys Technologies (A) 24,450 1,500
Intuit* 19,900 740
JD Edwards* 110,500 1,218
Lawson Software* 204,800 950
LogicVision* 237,800 376
Mercury Interactive* (A) 24,500 727
Moldflow* 157,100 1,037
NetIQ* (A) 74,050 826
NetScout Systems* 135,450 378
Oracle Systems* 73,250 795
Packeteer* 11,400 112
PDF Solutions* 138,300 878
PeopleSoft* 47,050 720
SAP (A) 29,300 556
ScanSoft* (A) 196,900 886
SERENA Software* (A) 49,000 782
Symantec* (A) 23,100 905
VERITAS Software* (A) 55,700 979
------------
25,390
------------
TECHNOLOGY HARDWARE & EQUIPMENT - 38.3%
Analog Devices* (A) 50,100 $ 1,378
Apple Computer* (A) 65,400 925
Applied Films* 94,100 1,520
Applied Materials* (A) 97,450 1,226
ASML Holding* 85,650 563
ATI Technologies* 98,500 506
AU Optronics, ADR* (A) 51,200 289
Computer Network Technology* (A) 140,700 968
Dell Computer* 67,900 1,854
EMC* 111,550 807
Hewlett-Packard (A) 76,824 1,195
Intel 61,700 1,004
LeCroy* 103,100 1,004
Lexmark International Group, Cl A* (A) 19,700 1,319
Linear Technology (A) 40,100 1,238
LSI Logic* 116,750 528
Marvell Technology Group* (A) 58,300 1,235
Microchip Technology (A) 71,300 1,419
Microtune* 216,700 457
MKS Instruments* (A) 66,525 832
Monolithic System Technology* (A) 124,750 878
Motorola (A) 127,250 1,051
Newport* 68,950 814
Novellus Systems* (A) 31,000 845
Overland Storage* 88,070 1,266
RF Micro Devices* (A) 102,350 617
Semtech* 12,500 189
Silicon Storage Technology* 196,350 452
Synaptics* 44,450 333
Tekelec* (A) 131,400 1,141
Tellabs* (A) 133,350 772
Teradyne* (A) 59,800 696
Texas Instruments 98,354 1,610
Xilinx* 46,050 1,078
------------
32,009
------------
TECHNOLOGY SERVICES - 10.4%
Amkor Technology* 128,300 663
Benchmark Electronics* (A) 51,100 1,448
Celestica* (A) 56,200 642
ChipPAC, Cl A* 294,900 1,062
Flextronics International* 116,500 1,016
Jabil Circuit* (A) 89,850 1,572
Taiwan Semiconductor Manufacturing, ADR* (A) 194,142 1,328
United Microelectronics* 323,416 973
------------
8,704
------------
TELECOMMUNICATION EQUIPMENT - 6.5%
Advanced Fiber Communications* 51,750 784
Ciena* (A) 163,500 714
Cisco Systems* 48,000 623
Harris (A) 33,900 941
Juniper Networks* (A) 96,650 790
Nokia, ADR, Cl A (A) 34,180 479
UTStarcom* (A) 54,050 1,080
------------
5,411
------------
TOTAL COMMON STOCKS 82,990
------------
</Table>
The accompanying notes are an integral part of the financial statements.
4
<Page>
<Table>
<Caption>
DESCRIPTION SHARES/PAR (000) VALUE (000)
- --------------------------------------------------------------------------------------------------------
RELATED PARTY MONEY MARKET FUND - 1.1%
First American Prime Obligations Fund, Cl Y (B) 876,565 $ 877
------------
TOTAL RELATED PARTY MONEY MARKET FUND 877
------------
INVESTMENTS PURCHASED WITH CASH PROCEEDS
FROM SECURITIES LENDING - 47.0%
COMMERCIAL PAPER - 6.7%
CS First Boston
1.638%, 12/01/03 $ 689 689
Danske Bank
1.508%, 12/22/03 689 689
Goldman Sachs
1.518%, 08/28/03 896 896
Morgan Stanley
1.518%, 06/17/03 345 345
1.518%, 07/08/03 248 248
1.518%, 09/22/03 345 345
Orchard Park
1.475%, 01/06/04 690 690
UBS Financial
1.390%, 04/01/03 1,723 1,723
------------
TOTAL COMMERCIAL PAPER 5,625
------------
CORPORATE OBLIGATIONS - 5.2%
CS First Boston
1.760%, 04/11/03 689 689
Deutsche Bank
1.470%, 03/22/03 345 345
1.580%, 12/31/03 276 276
General Electric Capital Corporation
1.355%, 07/09/07 345 345
Merrill Lynch
1.538%, 05/05/03 586 586
Monet Trust
1.360%, 12/28/03 689 689
SMM Trust 2002-M
1.320%, 09/23/03 689 689
URI Trust
1.329%, 09/18/03 690 690
------------
TOTAL CORPORATE OBLIGATIONS 4,309
------------
MONEY MARKET FUNDS - 4.4%
AIM Liquid Assets Portfolio 1,171,951 1,172
Dreyfus Cash Manage Plus Fund 68,938 69
Evergreen Institutional Money Market Fund 241,284 241
HSBC Investor Money Market Fund - Cl I 206,815 207
Merrill Lynch Premier Institutional Fund 1,335,233 1,335
Merrimac Cash Series Fund 206,815 207
One Group Institutional Prime Money Market Fund 413,630 414
Reserve Primary Fund 34,469 34
------------
TOTAL MONEY MARKET FUNDS 3,679
------------
OTHER SHORT-TERM INVESTMENTS - 4.2%
Allied Irish Bank
1.330%, 06/02/03 345 345
1.340%, 05/09/03 689 689
Commonwealth Life
1.6775%, 04/01/03 348 348
General Electric Capital Assurance
1.37%, 12/19/03 138 138
Premium Asset Trust 02-7
1.381%, 08/23/03 439 439
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------------------------------
Security Life Denver
1.490%, 03/15/04 $ 690 $ 690
1.381%, 01/13/04 896 896
------------
TOTAL OTHER SHORT-TERM INVESTMENTS 3,545
------------
REPURCHASE AGREEMENTS - 26.5%
Bear Stearns
1.420%, 04/10/03 1,379 1,379
CS First Boston
1.370%, 04/01/03 1,379 1,379
1.380%, 04/01/03 214 214
1.380%, 04/01/03 1,723 1,723
Goldman Sachs
1.360%, 06/10/03 345 345
1.400%, 06/11/03 345 345
1.420%, 04/07/03 689 689
1.520%, 04/01/03 1,034 1,034
Greenwich Capital Markets
1.430%, 04/01/03 2,068 2,068
Lehman Brothers
1.560%, 04/01/03 689 689
1.640%, 04/01/03 517 517
1.640%, 04/01/03 2,240 2,240
Merrill Lynch
1.560%, 04/01/03 862 862
1.360%, 04/01/03 2,068 2,068
1.500%, 04/01/03 1,034 1,034
1.560%, 04/01/03 1,379 1,379
Morgan Stanley
1.470%, 04/01/03 1,034 1,034
1.510%, 04/01/03 2,144 2,144
Salomon Smith Barney
1.540%, 04/01/03 1,034 1,034
------------
TOTAL REPURCHASE AGREEMENTS 22,177
------------
TOTAL INVESTMENTS PURCHASED WITH CASH PROCEEDS FROM
SECURITIES LENDING (Cost $39,335) 39,335
------------
TOTAL INVESTMENTS - 147.3%
(Cost $158,284) 123,202
------------
OTHER ASSETS AND LIABILITIES, NET - (47.3)% (39,583)
------------
TOTAL NET ASSETS - 100.0% $ 83,619
------------
</Table>
* Non-income producing security
(A) This security or a portion of this security is out on loan at March 31,
2003. Total loaned securities had a value of $36,035,473 at March 31, 2003.
See note 2 in Notes to Financial Statements for additional information.
(B) This money market fund is advised by U.S. Bancorp Asset Management, Inc.,
which also serves as advisor for this Fund. See note 3 in Notes to
Financial Statements for additional information.
ADR - American Depositary Receipt
Cl - Class
5
<Page>
STATEMENTS OF ASSETS AND LIABILITIES March 31, 2003 (unaudited), in thousands,
except per share data
<Table>
<Caption>
REAL ESTATE TECHNOLOGY
SECURITIES FUND FUND
- --------------------------------------------------------------------------------------------------------
ASSETS:
Investments in securities, at value *+ $ 183,602 $ 123,202
Cash 6 --
Dividends and interest receivable 1,016 20
Receivable for investment securities sold 2,171 --
Capital shares sold 128 285
Prepaid expenses and other assets 11 20
- --------------------------------------------------------------------------------------------------------
TOTAL ASSETS 186,934 123,527
========================================================================================================
LIABILITIES:
Capital shares redeemed 153 487
Payable upon return of securities loaned 33,956 39,335
Payable for advisory, co-administration, and custodian fees 117 65
Distribution and shareholder servicing fees 6 20
Accrued expenses and other liabilities -- 1
- --------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 34,232 39,908
========================================================================================================
NET ASSETS $ 152,702 $ 83,619
========================================================================================================
COMPOSITION OF NET ASSETS:
Portfolio capital $ 146,040 $ 655,466
Accumulated net investment income (loss) 961 (15)
Accumulated net realized loss (1,723) (536,750)
Net unrealized appreciation or depreciation of investments 7,424 (35,082)
- --------------------------------------------------------------------------------------------------------
NET ASSETS $ 152,702 $ 83,619
========================================================================================================
*Investments in securities, at cost $ 176,178 $ 158,284
+Including securities loaned $ 32,442 $ 36,035
CLASS A:
Net assets $ 21,909 $ 20,452
Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 1,629 4,076
Net asset value and redemption price per share $ 13.45 $ 5.02
Maximum offering price per share (1) $ 14.23 $ 5.31
CLASS B:
Net assets $ 2,543 $ 12,219
Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 191 2,719
Net asset value and offering price per share (2) $ 13.34 $ 4.49
CLASS C:
Net assets $ 1,635 $ 5,354
Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 122 1,093
Net asset value per share (2) $ 13.38 $ 4.90
Maximum offering price per share (3) $ 13.52 $ 4.95
CLASS S:
Net assets $ 1,558 $ 2,544
Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 116 509
Net asset value, offering price, and redemption price per share $ 13.45 $ 5.00
CLASS Y:
Net assets $ 125,057 $ 43,050
Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 9,270 8,318
Net asset value, offering price, and redemption price per share $ 13.49 $ 5.18
- --------------------------------------------------------------------------------------------------------
</Table>
(1) The offering price is calculated by dividing the net asset value by 1
minus the maximum sales charge of 5.50%
(2) Class B and C have a contingent deferred sales charge. For a description
of this sales charge, see notes 1 and 3 in Notes to Financial Statements.
(3) The offering price is calculated by dividing the net asset value by 1
minus the maximum sales charge of 1.00%
The accompanying notes are an integral part of the financial statements.
6
<Page>
STATEMENTS OF OPERATIONS For the six months ended March 31, 2003 (unaudited), in
thousands
<Table>
<Caption>
REAL ESTATE TECHNOLOGY
SECURITIES FUND FUND
- --------------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest $ 58 $ 20
Dividends 4,667 90
Less: Foreign taxes withheld (1) (4)
Securities lending 13 76
Other income -- 381
- --------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 4,737 563
========================================================================================================
EXPENSES:
Investment advisory fees 498 324
Co-administration fees and expenses (including per account transfer
agency fees) 201 135
Custodian fees 7 5
Directors' fees 1 1
Registration fees 19 20
Professional fees 2 1
Printing 3 2
Other 1 1
Distribution and shareholder servicing fees - Class A 22 27
Distribution and shareholder servicing fees - Class B 13 65
Distribution and shareholder servicing fees - Class C 6 30
Shareholder servicing fees - Class S 2 3
- --------------------------------------------------------------------------------------------------------
TOTAL EXPENSES 775 614
========================================================================================================
Less: Waiver of expenses (34) (36)
- --------------------------------------------------------------------------------------------------------
TOTAL NET EXPENSES 741 578
========================================================================================================
INVESTMENT INCOME (LOSS) - NET 3,996 (15)
========================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS - NET:
Net realized loss on investments (431) (14,531)
Net change in unrealized appreciation or depreciation of investments 1,796 28,136
- --------------------------------------------------------------------------------------------------------
NET GAIN ON INVESTMENTS 1,365 13,605
========================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 5,361 $ 13,590
========================================================================================================
</Table>
The accompanying notes are an integral part of the financial statements.
7
<Page>
STATEMENTS OF CHANGES IN NET ASSETS in thousands
<Table>
<Caption>
REAL ESTATE TECHNOLOGY
SECURITIES FUND FUND
- ----------------------------------------------------------------------------------------------------------------------------
10/1/02 10/1/01 10/1/02 10/1/01
TO TO TO TO
3/31/03 9/30/02 3/31/03 9/30/02
- ----------------------------------------------------------------------------------------------------------------------------
(UNAUDITED) (UNAUDITED)
OPERATIONS:
Investment income (loss) - net $ 3,996 $ 6,494 $ (15) $ (1,241)
Net realized gain (loss) on investments (431) 7,010 (14,531) (131,635)
Net change in unrealized appreciation or depreciation
of investments 1,796 (2,696) 28,136 88,614
- ----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations 5,361 10,808 13,590 (44,262)
- ----------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Class A (471) (410) --- --
Class B (56) (90) -- --
Class C (29) (16) -- --
Class S (38) (45) -- --
Class Y (3,460) (5,665) -- --
Net realized gain on investments:
Class A (368) -- -- --
Class B (63) -- -- --
Class C (28) -- -- --
Class S (34) -- -- --
Class Y (2,941) -- -- --
Tax return of capital:
Class A -- (84) -- --
Class B -- (14) -- --
Class C -- (5) -- --
Class S -- (7) -- --
Class Y -- (654) -- --
- ----------------------------------------------------------------------------------------------------------------------------
Total distributions (7,488) (6,990) -- --
============================================================================================================================
CAPITAL SHARE TRANSACTIONS (1):
Class A:
Proceeds from sales 11,866 14,894 5,010 12,200
Reinvestment of distributions 807 472 -- --
Payments for redemptions (6,117) (2,325) (5,857) (15,393)
Shares issued in connection with the acquisition of
Fund net assets -- -- -- 1,296
- ----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class A transactions 6,556 13,041 (847) (1,897)
- ----------------------------------------------------------------------------------------------------------------------------
Class B:
Proceeds from sales 390 1,240 829 1,997
Reinvestment of distributions 111 99 -- --
Payments for redemptions (485) (535) (1,645) (4,909)
Shares issued in connection with the acquisition of
Fund net assets -- -- -- 4,194
- ----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class B transactions 16 804 (816) 1,282
- ----------------------------------------------------------------------------------------------------------------------------
Class C:
Proceeds from sales 836 1,085 613 1,541
Reinvestment of distributions 55 20 -- --
Payments for redemptions (236) (422) (1,159) (3,416)
Shares issued in connection with the acquisition of
Fund net assets -- -- -- 198
- ----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class C transactions 655 683 (546) (1,677)
- ----------------------------------------------------------------------------------------------------------------------------
Class S:
Proceeds from sales 1,482 1,043 1,431 1,105
Reinvestment of distributions 71 51 -- --
Payments for redemptions (1,192) (199) (995) (925)
Shares issued in connection with the acquisition of
Fund net assets -- -- -- 3,111
- ----------------------------------------------------------------------------------------------------------------------------
Increase in net assets from Class S transactions 361 895 436 3,291
- ----------------------------------------------------------------------------------------------------------------------------
Class Y:
Proceeds from sales 15,775 42,995 14,139 55,312
Reinvestment of distributions 2,214 1,218 -- --
Payments for redemptions (11,048) (24,223) (22,839) (66,880)
Shares issued in connection with the acquisition of
Fund net assets -- -- -- 21,612
- ----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class Y transactions 6,941 19,990 (8,700) 10,044
- ----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital share
transactions 14,529 35,413 (10,473) 11,043
- ----------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 12,402 39,231 3,117 (33,219)
NET ASSETS AT BEGINNING OF PERIOD 140,300 101,069 80,502 113,721
============================================================================================================================
NET ASSETS AT END OF PERIOD $ 152,702 $ 140,300 $ 83,619 $ 80,502
============================================================================================================================
ACCUMULATED NET INVESTMENT INCOME (LOSS) AT END OF PERIOD $ 961 $ 1,019 $ (15) $ --
============================================================================================================================
</Table>
(1) See note 4 in Notes to Financial Statements for additional
information.
The accompanying notes are an integral part of the financial statements.
8
<Page>
(This page has been left blank intentionally.)
<Page>
FINANCIAL HIGHLIGHTS For a share outstanding throughout the periods ended
September 30, unless otherwise indicated.
<Table>
<Caption>
REALIZED AND
NET ASSET UNREALIZED DIVIDENDS DISTRIBUTIONS
VALUE NET GAINS OR FROM NET DISTRIBUTIONS FROM
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT FROM RETURN OF
OF PERIOD INCOME (LOSS) INVESTMENTS INCOME CAPITAL GAINS CAPITAL
- -------------------------------------------------------------------------------------------------------------
REAL ESTATE SECURITIES FUND
Class A
2003(1)(2) $ 13.68 $ 0.37 $ 0.09 $ (0.36) $ (0.33) $ --
2002(2) 13.12 0.71 0.61 (0.69) -- (0.07)
2001(2) 12.71 0.76 0.32 (0.64) -- (0.03)
2000 10.78 0.74 2.00 (0.79) -- (0.02)
1999 12.17 0.65 (1.36) (0.67) -- (0.01)
1998 14.97 0.63 (2.40) (0.70) (0.33) --
Class B
2003(1)(2) $ 13.55 $ 0.30 $ 0.11 $ (0.29) $ (0.33) $ --
2002(2) 13.02 0.59 0.61 (0.60) -- (0.07)
2001(2) 12.61 0.65 0.33 (0.54) -- (0.03)
2000 10.69 0.64 2.00 (0.69) -- (0.03)
1999 12.08 0.55 (1.34) (0.57) -- (0.03)
1998 14.86 0.52 (2.37) (0.60) (0.33) --
Class C
2003(1)(2) $ 13.62 $ 0.32 $ 0.07 $ (0.30) $ (0.33) $ --
2002(2) 13.08 0.62 0.59 (0.60) -- (0.07)
2001(2) 12.68 0.68 0.30 (0.59) -- --
2000(3) 10.61 0.50 2.14 (0.57) -- --
Class S
2003(1)(2) $ 13.69 $ 0.36 $ 0.09 $ (0.36) $ (0.33) $ --
2002(2) 13.12 0.70 0.62 (0.68) -- (0.07)
2001(2)(4) 12.52 0.11 0.49 -- -- --
Class Y
2003(1)(2) $ 13.73 $ 0.37 $ 0.10 $ (0.38) $ (0.33) $ --
2002(2) 13.15 0.73 0.63 (0.71) -- (0.07)
2001(2) 12.73 0.84 0.28 (0.68) -- (0.02)
2000 10.80 0.77 2.00 (0.81) -- (0.03)
1999 12.19 0.68 (1.35) (0.69) -- (0.03)
1998 14.99 0.67 (2.40) (0.74) (0.33) --
- -------------------------------------------------------------------------------------------------------------
TECHNOLOGY FUND
Class A
2003(1) $ 4.29 $ (0.01) $ 0.74 $ -- $ -- $ --
2002(2) 6.36 (0.07) (2.00) -- -- --
2001(2) 47.68 (0.15) (33.55) -- (7.62) --
2000 34.22 (0.35) 24.87 -- (11.06) --
1999 15.60 (0.18) 19.55 -- (0.75) --
1998 20.20 (0.13) (3.26) -- (1.21) --
Class B
2003(1) $ 3.86 $ (0.07) $ 0.70 $ -- $ -- $ --
2002(2) 5.77 (0.11) (1.80) -- -- --
2001(2) 44.40 (0.26) (30.75) -- (7.62) --
2000 32.59 (0.35) 23.22 -- (11.06) --
1999 14.99 (0.34) 18.69 -- (0.75) --
1998 19.58 (0.24) (3.14) -- (1.21) --
Class C
2003(1) $ 4.20 $ (0.05) $ 0.75 $ -- $ -- $ --
2002(2) 6.28 (0.12) (1.96) -- -- --
2001(2) 47.49 (0.26) (33.33) -- (7.62) --
2000(3) 50.30 (0.35) (2.46) -- -- --
Class S
2003(1) $ 4.29 $ -- $ 0.71 $ -- $ -- $ --
2002(2) 6.36 (0.04) (2.03) -- -- --
2001(2)(4) 6.95 -- (0.59) -- -- --
Class Y
2003(1) $ 4.42 $ 0.08 $ 0.68 $ -- $ -- $ --
2002(2) 6.53 (0.05) (2.06) -- -- --
2001(2) 48.60 (0.11) (34.34) -- (7.62) --
2000 34.64 (0.34) 25.36 -- (11.06) --
1999 15.73 (0.13) 19.79 -- (0.75) --
1998 20.29 (0.08) (3.27) -- (1.21) --
- -------------------------------------------------------------------------------------------------------------
</Table>
The accompanying notes are an integral part of the financial statements.
10
<Page>
<Table>
<Caption>
RATIO OF RATIO OF NET
RATIO OF NET EXPENSES TO INVESTMENT
NET ASSET RATIO OF INVESTMENT AVERAGE INCOME (LOSS)
VALUE NET ASSETS EXPENSES TO INCOME (LOSS) NET ASSETS TO AVERAGE NET PORTFOLIO
END OF TOTAL END OF AVERAGE TO AVERAGE (EXCLUDING ASSETS (EXCLUDING TURNOVER
PERIOD RETURN (5) PERIOD(000) NET ASSETS NET ASSETS WAIVERS) WAIVERS) RATE
- ------------------------------------------------------------------------------------------------------------------------------------
REAL ESTATE SECURITIES FUND
Class A
2003(1)(2) $ 13.45 3.45% $ 21,909 1.23% 5.56% 1.28% 5.51% 58%
2002(2) 13.68 10.07 15,422 1.23 5.06 1.32 4.97 99
2001(2) 13.12 8.69 2,421 1.04 5.89 1.25 5.68 85
2000 12.71 26.68 2,035 1.05 6.59 1.24 6.40 45
1999 10.78 (5.89) 1,518 1.05 5.52 1.18 5.39 21
1998 12.17 (12.42) 2,027 1.05 4.71 1.18 4.58 36
Class B
2003(1)(2) $ 13.34 3.07% $ 2,543 1.98% 4.61% 2.03% 4.56% 58%
2002(2) 13.55 9.21 2,577 1.98 4.27 2.07 4.18 99
2001(2) 13.02 7.93 1,724 1.79 5.13 2.00 4.92 85
2000 12.61 25.81 1,874 1.80 5.79 1.99 5.60 45
1999 10.69 (6.68) 2,192 1.80 4.75 1.93 4.62 21
1998 12.08 (13.04) 3,026 1.80 3.98 1.93 3.85 36
Class C
2003(1)(2) $ 13.38 3.04% $ 1,635 1.98% 4.82% 2.03% 4.77% 58%
2002(2) 13.62 9.27 986 1.98 4.43 2.07 4.34 99
2001(2) 13.08 7.93 341 1.79 5.27 2.00 5.06 85
2000(3) 12.68 25.56 164 1.80 5.79 1.99 5.60 45
Class S
2003(1)(2) $ 13.45 3.44% $ 1,558 1.23% 5.53% 1.28% 5.48% 58%
2002(2) 13.69 10.13 1,224 1.23 5.00 1.32 4.91 99
2001(2)(4) 13.12 4.87 320 0.56 43.93 1.01 43.48 85
Class Y
2003(1)(2) $ 13.49 3.60% $ 125,057 0.98% 5.63% 1.03% 5.58% 58%
2002(2) 13.73 10.40 120,091 0.98 5.27 1.07 5.18 99
2001(2) 13.15 9.01 96,263 0.80 6.50 1.01 6.29 85
2000 12.73 26.95 56,347 0.80 6.79 0.99 6.60 45
1999 10.80 (5.64) 51,181 0.80 5.78 0.93 5.65 21
1998 12.19 (12.18) 58,275 0.80 5.06 0.93 4.93 36
- ------------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY FUND
Class A
2003(1) $ 5.02 17.02% $ 20,452 1.23% (0.03)% 1.31% (0.11)% 60%
2002(2) 4.29 (32.55) 18,267 1.23 (0.89) 1.70 (1.36) 288
2001(2) 6.36 (83.30) 29,084 1.15 (0.88) 1.22 (0.95) 269
2000 47.68 80.11 155,533 1.15 (0.93) 1.15 (0.93) 195
1999 34.22 128.71 21,491 1.15 (0.80) 1.16 (0.81) 184
1998 15.60 (16.69) 7,703 1.15 (0.60) 1.15 (0.60) 124
Class B
2003(1) $ 4.49 16.32% $ 12,219 1.98% (0.79)% 2.06% (0.87)% 60%
2002(2) 3.86 (33.10) 11,190 1.98 (1.64) 2.45 (2.11) 288
2001(2) 5.77 (83.42) 15,974 1.90 (1.63) 1.97 (1.70) 269
2000 44.40 78.77 97,003 1.90 (1.68) 1.90 (1.68) 195
1999 32.59 127.09 20,866 1.90 (1.56) 1.91 (1.57) 184
1998 14.99 (17.21) 7,499 1.90 (1.38) 1.90 (1.38) 124
Class C
2003(1) $ 4.90 16.67% $ 5,354 1.98% (0.77)% 2.06% (0.85)% 60%
2002(2) 4.20 (33.12) 5,064 1.98 (1.64) 2.45 (2.11) 288
2001(2) 6.28 (83.43) 9,010 1.90 (1.63) 1.98 (1.71) 269
2000(3) 47.49 (5.59) 33,605 1.90 (1.67) 1.88 (1.65) 195
Class S
2003(1) $ 5.00 16.55% $ 2,544 1.23% (0.01)% 1.31% (0.09)% 60%
2002(2) 4.29 (32.55) 1,847 1.23 (0.79) 1.70 (1.26) 288
2001(2)(4) 6.36 (8.49) -- -- -- -- -- 269
Class Y
2003(1) $ 5.18 17.19% $ 43,050 0.98% 0.24% 1.06% 0.16% 60%
2002(2) 4.42 (32.31) 44,134 0.98 (0.64) 1.45 (1.11) 288
2001(2) 6.53 (83.26) 59,653 0.90 (0.62) 0.96 (0.67) 269
2000 48.60 80.71 436,938 0.90 (0.67) 0.90 (0.67) 195
1999 34.64 129.52 214,620 0.90 (0.53) 0.91 (0.54) 184
1998 15.73 (16.41) 100,985 0.90 (0.38) 0.90 (0.38) 124
- ------------------------------------------------------------------------------------------------------------------------------------
</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) Per share data calculated using average shares outstanding method.
(3) Commenced operations on February 1, 2000. All ratios for the period have
been annualized, except total return and portfolio turnover.
(4) Class of shares has been offered since September 24, 2001. All ratios for
the period have been annualized, except for total return and portfolio
turnover.
(5) Total return does not reflect sales charges. Total return would have been
lower had certain expenses not been waived.
11
<Page>
SCHEDULE OF INVESTMENTS March 31, 2003 (unaudited)
INTERNATIONAL FUND
<Table>
<Caption>
DESCRIPTION SHARES VALUE (000)
- ------------------------------------------------------------------------------
FOREIGN COMMON STOCKS - 94.8%
AUSTRALIA - 3.4%
Macquarie Bank 346,800 $ 5,176
Patrick 695,000 5,023
QBE Insurance Group 1,342,000 6,804
Transurban Group 1,929,000 5,094
Wesfarmers 276,400 3,710
-----------
25,807
-----------
BRAZIL - 0.2%
Aracruz Celulose 4,900 98
Companhia Siderurgica Nacional 31,591,000 614
Companhia Vale do Rio Doce* 22,400 604
-----------
1,316
-----------
CHINA - 2.3%
Brilliance China 1,984,000 481
China Merchants 627,000 466
China Oilfield Series 1,000,000 227
China Petroleum & Chemical 2,298,000 460
China Shipping Development 650,000 158
China Telecom 14,581,000 2,617
CNOOC 2,448,500 3,265
Cofco International 932,000 326
Cosco Pacific 1,926,000 1,704
Denway Motors 3,472,000 1,436
Huaneng Power International 4,610,000 4,315
Jiangsu Expressway 926,000 306
Peregrine Investment Holdings*(B) 142,000 --
Petrochina 1,760,000 370
Sinotrans Limited 796,000 207
Zhejiang Expressway 2,648,000 1,112
-----------
17,450
-----------
CROATIA - 0.1%
Pliva 70,100 828
-----------
CZECH REPUBLIC - 0.3%
Cesky Telecom 24,500 254
Komercni Banka 27,000 1,814
-----------
2,068
-----------
FINLAND - 2.8%
Nokia Oyj 818,200 11,303
Upm-Kymmene (A) 783,200 10,128
-----------
21,431
-----------
FRANCE - 15.1%
Aventis 206,500 9,065
BNP Paribas 361,600 14,481
Carrefour 406,400 15,393
Danone 77,700 9,810
Lafarge 65,300 3,656
Orange 1,230,400 9,868
Sanofi-Synthelabo 237,800 11,965
Schneider Electric 225,600 10,561
Societe Generale 97,300 5,024
Thomson Multimedia* 476,846 5,349
TotalFinaElf, Cl B 132,000 16,709
Vinci 74,300 4,338
-----------
116,219
-----------
GERMANY - 3.2%
Bayerische Motoren Werke 354,200 $ 9,817
Deutsche Boerse 183,200 7,021
Sap AG 108,100 8,139
-----------
24,977
-----------
GREAT BRITAIN - 18.2%
AMVESCAP 1,422,000 6,294
Anglo American 202,800 2,900
Astrazeneca 384,100 13,097
Aviva 1,533,000 8,530
BP 821,000 5,208
Compass Group 1,300,200 5,555
Glaxosmithkline 527,400 9,279
HBOS 1,079,800 11,086
National Grid Transco 1,554,000 9,519
Next 536,000 7,194
Pearson 1,244,000 9,449
Reckitt Benckiser 364,030 5,967
Royal Bank of Scotland Group 640,400 14,426
Standard Chartered 726,000 7,729
Tesco 1,767,000 4,979
Vodafone Group 10,456,000 18,677
-----------
139,889
-----------
HONG KONG - 2.2%
Hang Seng Bank 806,100 8,217
Hutchison Whampoa 966,500 5,242
Swire Pacific 842,500 3,327
-----------
16,786
-----------
HUNGARY - 0.5%
Gedeon Richter 16,900 1,067
Matav 141,900 485
OTP Bank 229,700 2,251
-----------
3,803
-----------
INDIA - 0.9%
Bajaj Auto 55,500 566
ICICI Bank* 23,200 146
Infosys Technologies (A) 60,700 3,724
Ranbaxy Laboratories 85,600 1,126
Reliance Industries 66,500 775
State Bank of India 19,200 273
-----------
6,610
-----------
IRELAND - 0.6%
Irish Life & Permanent 430,000 4,458
-----------
ISRAEL - 0.2%
Teva Pharmaceutical Industries 41,800 1,741
-----------
ITALY - 6.7%
Assicurazioni Generali 183,600 3,783
Autogrill (A) 996,000 7,825
Banca Intesa 1,237,208 2,754
Banco Popolare di Verona (A) 1,103,800 12,527
ENI 1,188,800 15,878
Unicredito Italian 2,200,000 8,378
-----------
51,145
-----------
</Table>
The accompanying notes are an integral part of the financial statements.
12
<Page>
<Table>
<Caption>
DESCRIPTION SHARES VALUE (000)
- ------------------------------------------------------------------------------
JAPAN - 22.9%
Avex(A) 201,700 $ 2,092
Bank of Yokohama 837,000 2,612
Canon 209,000 7,297
Credit Saison 208,600 3,597
Eisai 343,000 6,320
Fanuc 216,000 9,363
Fast Retailing 195,700 4,819
Fuji Photo Film 207,000 6,354
Fuji Television 1,604 4,978
Honda Motor 138,000 4,597
Ito-Yokado 72,000 1,943
KDDI 1,256 3,707
Keyence 63,360 9,799
Konica Corporation 957,000 7,578
Mitsubishi 1,427,000 8,809
Mitsubishi Tokyo Financial Group 1,357 5,150
Nintendo 19,300 1,563
Nippon Oil 925 4
Nippon Telegraph &Telephone 854 2,902
Nissan Motor 1,091,000 7,268
Nitto Denko 246,500 6,590
Nomura Holdings 471,000 4,905
NTT Docomo 1,500 2,796
OJI Paper 1,068,000 4,305
Rohm 51,900 5,624
Seven-Eleven Japan 317,000 8,367
Sony 99,000 3,507
Sumitomo Chemical 2,975,000 10,061
Sumitomo Metal Mining 1,390,000 4,361
Sumitomo Mitsui Financial Group 3,150 5,632
Sumitomo Trust and Banking 983,000 2,653
Takeda Chemical Industries 108,000 4,035
Tokyo Gas 1,198,000 3,718
Toys 'R' US (Japan) 188,200 2,333
Ushio 334,000 3,180
Yamada Denki 156,500 2,956
-----------
175,775
-----------
MALAYSIA - 0.0%
Resorts World 124,000 277
Silverstone Berhad* (B) 3,325 --
-----------
277
-----------
MEXICO - 0.2%
America Movil S A De C V 104,200 1,393
Wal-Mart De Mexico, Cl U 141,000 343
-----------
1,736
-----------
NETHERLANDS - 4.2%
ING Groep 509,000 5,882
Koninklijke KPN 1,089,600 6,991
Royal Dutch Petroleum 307,400 12,515
TPG NV 475,400 7,242
-----------
32,630
-----------
NEW ZEALAND - 0.5%
Auckland International 1,256,280 3,662
-----------
POLAND - 0.0%
Telekomunikacja Polska 123,000 346
-----------
RUSSIAN FEDERATION - 0.7%
AO Vimpel* 64,600 $ 2,229
LUKOIL 9,300 513
Mining and Metallurgical Company Norilsk Nickel 40,600 974
Mobile Telesystems Ojsc* 22,800 938
Yukos 3,400 501
-----------
5,155
-----------
SINGAPORE - 1.3%
Singapore Press 663,000 6,686
Singapore Telecommunications 3,555,000 2,699
Venture Manufacturing 84,000 666
-----------
10,051
-----------
SOUTH AFRICA - 0.7%
Anglo American Platnum 6,700 198
AngloGold 16,800 505
FirstRand 844,000 697
MTN Group 278,800 424
Sappi* 189,000 2,255
Sasol 55,800 617
Standard Bank Group 240,000 828
-----------
5,524
-----------
SOUTH KOREA - 1.2%
LG Electronics 19,100 611
POSCO 11,400 895
POSCO ADR 173,100 3,410
S1 13,350 216
Samsung Electronics ADR 20,900 2,356
Samsung Electronics 6,100 1,381
Samsung Fire & Marine Insurance 10,360 410
-----------
9,279
-----------
SPAIN - 0.6%
Amadeus Global Travel 951,600 4,372
-----------
SWEDEN - 2.4%
Atlas Copco 593,300 11,720
Skandinaviska Enskilda* 807,000 6,995
-----------
18,715
-----------
SWITZERLAND - 2.4%
Adecco 291,400 8,097
Credit Suisse 585,100 10,175
-----------
18,272
-----------
THAILAND - 1.0%
Bangkok Bank* 1,028,800 1,535
Land & Houses 2,650,000 482
National Finance* 811,000 227
PTT Public 606,000 643
Shin Corporation 5,500,000 1,629
Siam Cement 23,000 728
Siam Commercial Bank* 1,303,000 1,003
Thai Farmers Bank* 1,320,000 1,077
-----------
7,324
-----------
TOTAL FOREIGN COMMON STOCKS 727,646
-----------
</Table>
13
<Page>
<Table>
<Caption>
DESCRIPTION SHARES VALUE (000)
- ------------------------------------------------------------------------------
INVESTMENT COMPANY - 3.5%
Deutsche Liquid Assets Fund 26,457,446 $ 26,457
-----------
TOTAL INVESTMENT COMPANY 26,457
-----------
INVESTMENTS PURCHASED WITH CASH PROCEEDS
FROM SECURITIES LENDING - 2.3%
MONEY MARKET FUND - 2.3%
Deutsche Daily Asset Fund 17,870,230 17,870
-----------
TOTAL INVESTMENTS PURCHASED WITH CASH PROCEEDS
FROM SECURITIES LENDING
(Cost $17,870) 17,870
-----------
TOTAL INVESTMENTS - 100.6%
(Cost $882,531) 771,973
-----------
OTHER ASSETS AND LIABILITIES, NET - (0.6)% (4,645)
-----------
TOTAL NET ASSETS - 100.0% $ 767,328
-----------
</Table>
* Non-income producing security
(A) This security or a portion of this security is out on loan at March 31,
2003. Total loaned securities had a value of $17,028,693 at March 31, 2003.
See note 2 in Notes to Financial Statements for additional information.
(B) Security is valued at fair value under guidelines extablished and approved
by the board of directors. Total fair valued securities had a value of $0,
which represents 0.0% of total net assets at March 31, 2003. See note 2 in
Notes to Financial Statements for additional information.
ADR - American Depositary Receipt
AG - Aktienjesellschaft (German Stock Co.)
Cl - Class
DESCRIPTION
- ------------------------------------------------------------------------------
At March 31, 2003, sector diversification of the Fund was as follows:
<Table>
<Caption>
% OF
NET ASSETS VALUE (000)
----------- -----------
FOREIGN COMMON STOCKS
Energy 7.4% $ 56,852
Materials 6.9 53,051
Capital Goods 7.5 57,413
Commercial Services & Supplies 1.1 8,313
Transportation 3.2 24,510
Automobiles & Components 3.0 24,165
Consumer Durables & Apparel 3.3 25,443
Hotels Restaurants & Leisure 1.8 13,604
Media 3.0 23,204
Retailing 2.6 19,586
Food & Drug Retailing 3.8 29,064
Food Beverage & Tobacco 1.3 9,810
Household & Personal Products 0.8 5,967
Pharmaceuticals & Biotechnology 7.6 58,599
Banks 16.3 124,787
Diversified Financials 5.1 39,093
Insurance 3.1 23,983
Software & Services 2.1 16,235
Technology Hardware & Equipment 4.1 31,427
Semiconductors & Equipment 0.9 7,005
Telecommunication Services 7.6 57,954
Utilities 2.3 17,581
----------- -----------
TOTAL FOREIGN COMMON STOCKS 94.8 727,646
TOTAL INVESTMENT COMPANY 3.5 26,457
----------- -----------
TOTAL INVESTMENTS 98.3 754,103
OTHER ASSETS AND LIABILITIES, NET 1.7 13,225
----------- -----------
NET ASSETS 100.0% $ 767,328
=========== ===========
</Table>
The accompanying notes are an integral part of the financial statements.
14
<Page>
STATEMENT OF ASSETS AND LIABILITIES March 31, 2003 (unaudited), in thousands,
except per share data
<Table>
<Caption>
INTERNATIONAL
FUND
- ------------------------------------------------------------------------------------------------
ASSETS:
Investments in securities, at value*+ $ 771,973
Cash denominated in foreign currencies, at value** 17,627
Dividends and interest receivable 4,867
Receivable for investment securities sold 3,046
Capital shares sold 647
Other receivables 3
Prepaid expenses and other assets 50
- ------------------------------------------------------------------------------------------------
TOTAL ASSETS 798,213
================================================================================================
LIABILITIES:
Payable for investment securities purchased 3,965
Capital shares redeemed 5,420
Payable upon return of securities loaned 17,870
Payable for advisory, co-administration, and custodian fees 871
Distribution and shareholder servicing fees 11
Bank overdraft 2,748
- ------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 30,885
- ------------------------------------------------------------------------------------------------
NET ASSETS $ 767,328
================================================================================================
COMPOSITION OF NET ASSETS:
Portfolio capital $ 1,222,137
Undistributed net investment income 1,286
Accumulated net realized loss (345,865)
Net unrealized depreciation of investments (110,558)
Net unrealized appreciation of foreign currency, and
translation of other assets and liabilities in foreign currency 328
- ------------------------------------------------------------------------------------------------
NET ASSETS $ 767,328
================================================================================================
* Investments in securities, at cost $ 882,531
** Cash denominated in foreign currencies, at cost 17,463
+ Including securities loaned $ 17,028
CLASS A:
Net assets $ 32,802
Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 4,732
Net asset value and redemption price per share $ 6.93
Maximum offering price per share(1) $ 7.33
CLASS B:
Net assets $ 6,445
Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 998
Net asset value and offering price per share(2) $ 6.46
CLASS C:
Net assets $ 9,397
Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 1,406
Net asset value per share(2) $ 6.68
Maximum offering price per share(3) $ 6.75
CLASS S:
Net assets $ 5,966
Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 862
Net asset value, offering price, and redemption price per share $ 6.92
CLASS Y:
Net assets $ 712,718
Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 101,729
Net asset value, offering price, and redemption price per share $ 7.01
</Table>
(1) The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 5.50%
(2) Class B and C have a contingent deferred sales charge. For a description of
this sales charge, see notes 1 and 3 in Notes to Financial Statements.
(3) The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 1.00%
The accompanying notes are an integral part of the financial statements.
15
<Page>
STATEMENT OF OPERATIONS For the six months ended March 31, 2003 (unaudited), in
thousands
<Table>
<Caption>
INTERNATIONAL
FUND
- ------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest $ 318
Dividends 7,031
Less: Foreign taxes withheld (791)
Securities lending 116
- ------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 6,674
================================================================================================
EXPENSES:
Investment advisory fees 4,265
Co-administration fees and expenses (including per account transfer agency fees) 1,083
Custodian fees 39
Directors' fees 5
Registration fees 12
Professional fees 9
Printing 13
Other 9
Distribution and shareholder servicing fees - Class A 47
Distribution and shareholder servicing fees - Class B 35
Distribution and shareholder servicing fees - Class C 54
Shareholder servicing fees - Class S 11
- ------------------------------------------------------------------------------------------------
TOTAL EXPENSES 5,582
================================================================================================
Less: Waiver of expenses (199)
- ------------------------------------------------------------------------------------------------
TOTAL NET EXPENSES 5,383
================================================================================================
INVESTMENT INCOME - NET 1,291
================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS - NET:
Net realized loss on investments (78,131)
Net realized gain on foreign currency transactions 841
Net change in unrealized appreciation or depreciation of investments 41,773
Net change in unrealized appreciation or depreciation of foreign currency, and
translation of other assets and liabilities denominated in foreign currency 317
- ------------------------------------------------------------------------------------------------
NET LOSS ON INVESTMENTS (35,200)
================================================================================================
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $ (33,909)
================================================================================================
</Table>
The accompanying notes are an integral part of the financial statements.
16
<Page>
STATEMENTS OF CHANGES IN NET ASSETS in thousands
<Table>
<Caption>
INTERNATIONAL
FUND
- ----------------------------------------------------------------------------------------------------------------
10/1/02 10/1/01
TO TO
3/31/03 9/30/02
- ----------------------------------------------------------------------------------------------------------------
(UNAUDITED)
OPERATIONS:
Investment income - net $ 1,291 $ 2,255
Net realized loss on investments (78,131) (111,725)
Net realized gain (loss) on foreign currency transactions 841 (704)
Net change in unrealized appreciation or depreciation of investments 41,773 (21,835)
Net change in unrealized appreciation or depreciation of foreign currency, and
translation of other assets and liabilities denominated in foreign currency 317 (145)
- ----------------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations (33,909) (132,154)
- ----------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (1):
Class A:
Proceeds from sales 60,016 159,656
Payments for redemptions (65,631) (180,477)
Shares issued in connection with the acquisition of Fund net assets 2,409 --
- ----------------------------------------------------------------------------------------------------------------
Decrease in net assets from Class A transactions (3,206) (20,821)
- ----------------------------------------------------------------------------------------------------------------
Class B:
Proceeds from sales 231 872
Payments for redemptions (1,144) (2,522)
Shares issued in connection with the acquisition of Fund net assets 254 --
- ----------------------------------------------------------------------------------------------------------------
Decrease in net assets from Class B transactions (659) (1,650)
- ----------------------------------------------------------------------------------------------------------------
Class C:
Proceeds from sales 1,290 2,445
Payments for redemptions (2,504) (6,687)
Shares issued in connection with the acquisition of Fund net assets 149 --
- ----------------------------------------------------------------------------------------------------------------
Decrease in net assets from Class C transactions (1,065) (4,242)
- ----------------------------------------------------------------------------------------------------------------
Class S:
Proceeds from sales 2,411 8,680
Payments for redemptions (7,215) (4,768)
Shares issued in connection with the acquisition of Fund net assets 42 --
- ----------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class S transactions (4,762) 3,912
- ----------------------------------------------------------------------------------------------------------------
Class Y:
Proceeds from sales 281,972 246,573
Payments for redemptions (124,772) (249,505)
Shares issued in connection with the acquisition of Fund net assets 46,699 --
- ----------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class Y transactions 203,899 (2,932)
- ----------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital share transactions 194,207 (25,733)
- ----------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 160,298 (157,887)
NET ASSETS AT BEGINNING OF PERIOD 607,030 764,917
================================================================================================================
NET ASSETS AT END OF PERIOD $ 767,328 $ 607,030
================================================================================================================
ACCUMULATED NET INVESTMENT INCOME (LOSS) AT END OF PERIOD $ 1,286 $ (5)
================================================================================================================
</Table>
(1) See note 4 in Notes to Financial Statements for additional information.
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>
REALIZED AND
NET ASSET UNREALIZED DIVIDENDS
VALUE NET GAINS OR FROM NET DISTRIBUTIONS
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT FROM
OF PERIOD INCOME (LOSS) INVESTMENTS INCOME CAPITAL GAINS
- -------------------------------------------------------------------------------------- --------------
INTERNATIONAL FUND (1)
Class A
2003(7)(2) $ 7.33 $ -- $ (0.40) $ -- $ --
2002(2) 8.96 -- (1.63) -- --
2001(2)(3) 13.96 0.10 (3.63) (0.10) (1.37)
2000(2)(4) 15.94 (0.03) (0.42) (0.10) (1.43)
1999 12.42 -- 4.26 (0.04) (0.70)
1998 11.22 0.01 1.66 (0.07) (0.40)
Class B
2003(7)(2) $ 6.85 $ (0.02) $ (0.37) $ -- $ --
2002(2) 8.45 (0.06) (1.54) -- --
2001(2)(3) 13.28 0.01 (3.43) (0.07) (1.34)
2000(2)(4) 15.27 (0.10) (0.42) (0.07) (1.40)
1999 11.97 (0.09) 4.09 (0.01) (0.69)
1998 10.87 (0.08) 1.60 (0.02) (0.40)
Class C(2)
2003(7) $ 7.09 $ (0.03) $ (0.38) $ -- $ --
2002 8.75 (0.06) (1.60) -- --
2001(5) 8.31 0.01 0.43 -- --
Class S(2)
2003(7) $ 7.31 $ -- $ (0.39) $ -- $ --
2002 8.96 0.01 (1.66) -- --
2001(3) 13.97 (0.04) (3.50) (0.10) (1.37)
2000(4) 15.95 (0.03) (0.42) (0.10) (1.43)
1999 12.43 (0.01) 4.27 (0.04) (0.70)
1998 11.23 -- 1.67 (0.07) (0.40)
Class Y
2003(7)(2) $ 7.40 $ 0.01 $ (0.40) $ -- $ --
2002(2) 9.03 0.03 (1.66) -- --
2001(2)(3) 14.03 0.07 (3.61) (0.11) (1.35)
2000(2)(4) 15.97 0.01 (0.42) (0.12) (1.41)
1999 12.42 0.06 4.25 (0.06) (0.70)
1998 11.21 0.04 1.67 (0.10) (0.40)
</Table>
The accompanying notes are an integral part of the financial statements.
18
<Page>
<Table>
<Caption>
RATIO OF RATIO OF NET
RATIO OF NET EXPENSES TO INVESTMENT
NET ASSET RATIO OF INVESTMENT AVERAGE INCOME (LOSS)
VALUE NET ASSETS EXPENSES TO INCOME (LOSS) NET ASSETS TO AVERAGE NET PORTFOLIO
END OF TOTAL END OF AVERAGE TO AVERAGE (EXCLUDING ASSETS (EXCLUDING TURNOVER
PERIOD RETURN(6) PERIOD(000) NET ASSETS NET ASSETS WAIVERS) WAIVERS) RATE
------------- --------- ------------- ------------- ------------- ------------ ----------------- ---------
INTERNATIONAL
FUND (1)
Class A
2003(7)(2) $ 6.93 (5.46)% $ 32,802 1.60% 0.09% 1.65% 0.04% 50%
2002(2) 7.33 (18.19) 37,232 1.60 0.04 1.66 (0.02) 72
2001(2)(3) 8.96 (28.00) 64,907 1.49 1.02 1.59 0.92 72
2000(2)(4) 13.96 (3.59) 3,591 1.58 (0.26) 1.76 (0.44) 90
1999 15.94 36.62 3,939 1.56 (0.01) 1.75 (0.20) 94
1998 12.42 15.33 3,154 1.58 0.02 1.75 (0.15) 89
Class B
2003(7)(2) $ 6.46 (5.69)% $ 6,445 2.35% (0.68)% 2.40% (0.73)% 50%
2002(2) 6.85 (18.94) 7,459 2.35 (0.68) 2.41 (0.74) 72
2001(2)(3) 8.45 (28.57) 10,857 2.17 0.06 2.27 (0.04) 72
2000(2)(4) 13.28 (4.22) 732 2.28 (0.96) 2.46 (1.14) 90
1999 15.27 35.65 781 2.26 (0.71) 2.45 (0.90) 94
1998 11.97 14.48 624 2.28 (0.70) 2.45 (0.87) 89
Class C(2)
2003(7) $ 6.68 (5.78)% $ 9,397 2.35% (0.70)% 2.40% (0.75)% 50%
2002 7.09 (18.97) 11,027 2.35 (0.71) 2.41 (0.77) 72
2001(5) 8.75 5.29 17,806 1.48 4.15 1.48 4.15 72
Class S(2)
2003(7) $ 6.92 (5.34)% $ 5,966 1.60% (0.13)% 1.65% (0.18)% 50%
2002 7.31 (18.42) 10,817 1.60 0.16 1.66 0.10 72
2001(3) 8.96 (28.03) 9,461 1.46 (0.33) 1.61 (0.48) 72
2000(4) 13.97 (3.59) 16,373 1.58 (0.26) 1.76 (0.44) 90
1999 15.95 36.61 11,307 1.56 -- 1.75 (0.19) 94
1998 12.43 15.37 8,058 1.58 0.01 1.75 (0.16) 89
Class Y
2003(7)(2) $ 7.01 (5.27)% $ 712,718 1.35% 0.39% 1.40% 0.34% 50%
2002(2) 7.40 (18.05) 540,495 1.35 0.36 1.41 0.30 72
2001(2)(3) 9.03 (27.93) 661,886 1.23 0.67 1.36 0.54 72
2000(2)(4) 14.03 (3.27) 122,329 1.28 0.04 1.76 (0.44) 90
1999 15.97 36.98 92,778 1.26 0.28 1.75 (0.21) 94
1998 12.42 15.73 60,647 1.28 0.34 1.75 (0.13) 89
</Table>
(1) The financial highlights for the International Fund as set forth herein
include the historical financial highlights of the Firstar International
Growth Fund. The assets of the Firstar Fund were acquired by the First
American International Fund on September 24, 2001. In connection with such
acquisition, (i) Class A shares of the Firstar International Growth Fund
were exchanged for Class A shares of the First American International Fund,
(ii) Firstar Class B shares were exchanged for Class B shares of the First
American Fund, (iii) Firstar Class Y shares were exchanged for Class S
shares of the First American Fund, and (iv) Firstar Institutional Class
shares were exchanged for Class Y shares of the First American Fund.
Historical per share amounts have been adjusted to reflect the conversion
ratios utilized for the merger of the International Fund and Firstar
International Growth Fund. Firstar International Growth Fund is the
accounting survivor.
(2) Per share data calculated using average shares outstanding method.
(3) Effective in 2001, the Fund's fiscal year end was changed from October 31
to September 30. All ratios for the period have been annualized, except
total return and portfolio turnover.
(4) Effective in 2000, the Fund's fiscal year end was changed from November 30
to October 31. All ratios for the period have been annualized, except total
return and portfolio turnover.
(5) Class of shares has been offered since September 24, 2001. All ratios for
the period have been annualized, except total return and portfolio
turnover.
(6) Total return does not reflect sales charges. Total return would have been
lower had certain expenses not been waived.
(7) For the six months ended March 31, 2003 (unaudited). All ratios for the
period have been annualized, except total return and portfolio turnover.
19
<Page>
SCHEDULE OF INVESTMENTS March 31, 2003 (unaudited)
SMALL CAP GROWTH OPPORTUNITIES
<Table>
<Caption>
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------------------------------------------
COMMON STOCKS - 90.3%
CONSUMER DISCRETIONARY - 14.8%
4Kids Entertainment* 350,230 $ 4,133
Alliance Atlantis Communications, Cl B* 329,200 2,716
Casual Male Retail Group* (A) 467,640 1,408
Champps Entertainment* 58,505 489
dELIA*s* 462,360 162
Exult* (A) 336,810 2,469
Genesco* 84,520 1,202
Kirkland's* 98,250 1,228
Landry's Restaurants 70,130 1,178
Men's Wearhouse* (A) 174,330 2,608
Mothers Work* (A) 69,135 1,531
Orient Express Hotels* 167,835 1,641
Panera Bread, Cl A* (A) 48,340 1,474
Regent Communication* 407,860 1,937
Ryland Group (A) 38,790 1,675
Saga Communications* 106,303 1,839
Spanish Broadcasting System* 881,765 5,414
The Wet Seal, Cl A* 251,740 1,838
Triarc* 54,620 1,521
Ultimate Electronics* 88,480 704
Urban Outfitters* (A) 55,225 1,243
------------
38,410
------------
CONSUMER STAPLES - 0.5%
Coors Adolph 27,890 1,353
------------
ENERGY - 9.0%
Cal Dive International* (A) 63,930 1,151
Comstock Resources* 93,585 945
Frontier Oil (A) 91,300 1,561
Grey Wolf* (A) 523,250 2,062
Harvest Natural Resources* 193,845 942
Holly (A) 43,120 1,235
Horizon Offshore* 325,660 1,107
Lone Star Technologies* 60,230 1,272
Maverick Tube* 115,540 2,149
Quicksilver Resources* 138,490 3,292
Remington Oil & Gas* 95,890 1,633
Rowan* (A) 31,290 615
Tetra Technologies* 107,300 2,468
Unit * 111,975 2,272
Varco International* 38,710 709
------------
23,413
------------
FINANCIALS - 4.5%
Boston Private Financial Holdings 69,320 1,037
Commercial Capital Bancorp* 123,560 1,328
Friedman, Billings, Ramsey Group* (A) 268,250 2,428
Local Financial* 176,150 2,540
Scottish Annuity & Life Holdings (A) 86,140 1,501
Winston Hotels 191,490 1,268
Wintrust Financial 58,600 1,676
------------
11,778
------------
HEALTH CARE - 13.9%
Amsurg, Cl A* (A) 63,290 $ 1,595
Angiotech Pharmaceuticals* (A) 166,470 3,316
BioMarin Pharmaceutical* (A) 111,215 1,262
CIMA Labs* 238,370 5,173
Cooper (A) 23,830 712
First Horizon Pharmaceutical* 706,565 1,788
ICON* 36,010 857
Inveresk Research Group* 48,510 706
Lifecore Biomedical* 75,817 274
Noven Pharmaceuticals* 233,295 3,294
NPS Pharmaceuticals* 60,800 940
Pharmaceutical Product Development* 54,610 1,466
POZEN* 278,770 1,059
Select Medical* (A) 339,980 4,845
Telik* 200,190 2,691
United Surgical Partners* (A) 340,910 6,303
------------
36,281
------------
INDUSTRIALS - 11.4%
AGCO* 77,910 1,254
Arbitron* 43,860 1,390
Arkansas Best 54,870 1,395
Atlantic Coast Airline Holdings* (A) 114,190 709
Career Education* (A) 44,475 2,176
Casella Waste Systems* 195,190 1,610
Circor International 89,710 1,219
Corinthian Colleges* (A) 43,835 1,731
DiamondCluster, Cl A* 111,875 157
Genesee & Wyoming, Cl A* 94,190 1,460
Headwaters* 93,825 1,318
Heartland Express* 33,710 647
J.B. Hunt Transport Services 24,540 661
Mesa Air Group* 401,565 1,996
RailAmerica* 229,342 1,399
SkyWest 58,710 605
Swift Transportation* 38,410 615
Terex* 114,560 1,416
ValueClick* 330,120 1,000
Wabash National* (A) 651,170 4,102
Werner Enterprises 32,620 628
Yellow* (A) 89,260 2,154
------------
29,642
------------
INFORMATION TECHNOLOGY - 27.4%
Aeroflex* 566,620 3,207
Applied Films* 774,670 12,510
Arris Group* (A) 328,330 1,215
Asyst Technologies* 72,200 391
ATMI* (A) 75,875 1,461
AudioCodes* (A) 820,900 2,167
Business Objects* (A) 90,730 1,483
Cerner* 10,490 340
ChipPAC, Cl A* 567,725 2,044
Computer Network Technology* (A) 164,650 1,133
</Table>
The accompanying notes are an integral part of the financial statements.
20
<Page>
<Table>
<Caption>
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------------------------------------------
Concur Technologies* 427,800 $ 2,182
Cymer* 63,240 1,496
DoubleClick* 168,996 1,313
Genroco Warrants* (B) 103,794 --
Genus* 756,328 1,210
Genus Warrants* (B) 116,158 --
IMPAC Medical Systems* 25,650 571
Inforte* 97,600 577
Lawson Software* 404,090 1,875
Legato Systems* (A) 290,090 1,488
Micromuse* 380,370 1,978
Microsemi* 288,960 3,164
Mykrolis* 519,630 4,339
Oak Technology* 83,000 293
OmniVision Technologies* (A) 48,465 1,004
Online Resources* 90,580 237
Open Text* (A) 37,075 1,032
Overland Storage* 209,085 3,005
Photon Dynamics* 209,150 3,422
Planar Systems* 13,365 157
Predictive Systems* 1,087,250 283
Secure Computing* (A) 294,460 1,084
Semtech* 50,520 765
SERENA Software* 94,440 1,507
SI International* 91,855 730
Stellent* 554,290 2,339
Sypris Solutions 202,995 1,600
Take-Two Interactive Software* (A) 235,690 5,268
TALX 88,070 1,143
Tridium Warrant* (B) (C) 20,500 --
Tridium, Cl B (B) (C) 278,500 122
VideoPropulsion* (B) 809,856 --
Vitesse Semiconductor* 380,600 814
Westell Technologies* 76,040 307
------------
71,256
------------
MATERIALS - 6.8%
Agrium (A) 119,630 1,286
Buckeye Technologies* 133,630 635
Century Aluminum 300,905 1,911
Constar International* 170,620 1,082
Crown Holdings* (A) 924,720 5,197
Jarden* 57,530 1,496
Millennium Chemicals 190,030 2,220
Pope & Talbot 95,720 1,201
Silgan Holdings* 52,240 1,158
Southwall Technologies* (A) 283,290 286
Steel Dynamics* 112,080 1,306
------------
17,778
------------
TELECOMMUNICATION SERVICES - 2.0%
General Communication* 421,775 2,510
Intrado* (A) 173,560 1,371
J2 Global Communications* (A) 48,420 1,379
------------
5,260
------------
TOTAL COMMON STOCKS 235,171
------------
<Caption>
DESCRIPTION SHARES/PAR (000) VALUE (000)
- ----------------------------------------------------------------------------------------
REGISTERED INVESTMENT COMPANIES - 2.6%
iShares Nasdaq Biotechnology Index Fund (A) 46,590 $ 2,385
Oil Service HOLDRs Trust (A) 79,810 4,393
------------
TOTAL REGISTERED INVESTMENT COMPANIES 6,778
------------
RELATED PARTY MONEY MARKET FUND - 5.8%
First American Prime Obligations Fund, Cl Y (D) 15,164,120 15,164
------------
TOTAL RELATED PARTY MONEY MARKET FUND 15,164
------------
INVESTMENTS PURCHASED WITH CASH PROCEEDS
FROM SECURITIES LENDING - 24.3%
COMMERCIAL PAPER - 3.5%
CS First Boston
1.638%, 12/01/03 $ 1,107 1,107
Danske Bank
1.508%, 12/22/03 1,107 1,107
Goldman Sachs
1.518%, 08/28/03 1,439 1,439
Morgan Stanley
1.518%, 06/17/03 554 554
1.518%, 07/08/03 399 399
1.518%, 09/22/03 554 554
Orchard Park
1.475%, 01/06/04 1,107 1,107
UBS Financial
1.390%, 04/01/03 2,767 2,767
------------
TOTAL COMMERCIAL PAPER 9,034
------------
CORPORATE OBLIGATIONS - 2.6%
CS First Boston
1.760%, 04/11/03 1,107 1,107
Deutsche Bank
1.470%, 03/22/03 554 554
1.580%, 12/31/03 443 443
General Electric Capital Corporation
1.355%, 07/09/07 554 554
Merrill Lynch
1.538%, 05/05/03 941 941
Monet Trust
1.360%, 12/28/03 1,107 1,107
SMM Trust 2002-M
1.320%, 09/23/03 1,107 1,107
URI Trust
1.329%, 09/18/03 1,107 1,107
------------
TOTAL CORPORATE OBLIGATIONS 6,920
------------
MONEY MARKET FUNDS - 2.3%
AIM Liquid Assets Portfolio 1,882,137 1,882
Dreyfus Cash Manage Plus Fund 110,714 111
Evergreen Institutional Money Market Fund 387,498 388
HSBC Investor Money Market Fund - Cl I 332,141 332
Merrill Lynch Premier Institutional Fund 2,144,364 2,145
Merrimac Cash Series Fund 332,142 332
One Group Institutional Prime Money
Market Fund 664,283 664
Reserve Primary Fund 55,357 55
------------
TOTAL MONEY MARKET FUNDS 5,909
------------
</Table>
21
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ----------------------------------------------------------------------------------------
OTHER SHORT-TERM INVESTMENTS - 2.2%
Allied Irish Bank
1.330%, 06/02/03 $ 554 $ 554
1.340%, 05/09/03 1,107 1,107
Commonwealth Life
1.678%, 04/01/03 559 559
General Electric Capital Assurance
1.370%, 12/19/03 222 222
Premium Asset Trust 02-7
1.381%, 08/23/03 705 705
Security Life Denver
1.490%, 03/15/04 1,107 1,107
1.381%, 01/13/04 1,439 1,439
------------
TOTAL OTHER SHORT-TERM INVESTMENTS 5,693
------------
REPURCHASE AGREEMENTS - 13.7%
Bear Stearns
1.420%, 04/10/03 2,214 2,214
CS First Boston
1.370%, 04/01/03 2,214 2,214
1.380%, 04/01/03 343 343
1.380%, 04/01/03 2,768 2,768
Goldman Sachs
1.360%, 06/10/03 554 554
1.400%, 06/11/03 554 554
1.420%, 04/07/03 1,107 1,107
1.520%, 04/01/03 1,661 1,661
Greenwich Capital Markets
1.430%, 04/01/03 3,321 3,321
Lehman Brothers
1.560%, 04/01/03 1,107 1,107
1.640%, 04/01/03 830 830
1.640%, 04/01/03 3,598 3,598
Merrill Lynch
1.560%, 04/01/03 $ 1,384 $ 1,384
1.360%, 04/01/03 3,321 3,321
1.500%, 04/01/03 1,661 1,661
1.560%, 04/01/03 2,214 2,214
Morgan Stanley
1.470%, 04/01/03 1,661 1,661
1.510%, 04/01/03 3,443 3,443
Salomon Smith Barney
1.540%, 04/01/03 1,661 1,661
------------
TOTAL REPURCHASE AGREEMENTS 35,616
------------
TOTAL INVESTMENTS PURCHASED WITH CASH PROCEEDS FROM
SECURITIES LENDING (Cost $63,172) 63,172
------------
TOTAL INVESTMENTS - 123.0%
(Cost $345,568) 320,285
------------
OTHER ASSETS AND LIABILITIES, NET - (23.0)% (59,891)
------------
TOTAL NET ASSETS - 100.0% $ 260,394
------------
</Table>
* Non-income producing security
(A) This security or a portion of this security is out on loan at March 31,
2003. Total loaned securities had a value of $58,427,281 at March 31, 2003.
See note 2 in Notes to Financial Statements for additional information.
(B) Security is valued at fair value under guidelines established and approved
by the board of directors. Total fair valued securities had a value of
$122,540, which represents 0.05% of total net assets at March 31, 2003. See
note 2 in Notes to Financial Statements for additional information.
(C) Private placement security considered illiquid investment under guidelines
established by the board of directors. As of March 31, 2003, the value of
these investments is $122,540 or 0.05% of total net assets.
(D) This money market fund is advised by U.S. Bancorp Asset Management, Inc.,
which also serves as advisor for this Fund. See note 3 in Notes to Financial
Statements for additional information.
Cl - Class
REIT - Real Estate Investment Trust
The accompanying notes are an integral part of the financial statements.
22
<Page>
SMALL CAP SELECT
<Table>
<Caption>
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------------------------------------------
COMMON STOCKS - 88.6%
CONSUMER DISCRETIONARY - 19.7%
4Kids Entertainment* (A) 762,230 $ 8,994
A.C. Moore Arts & Crafts* (A) 1,025,000 14,176
Advanced Auto Parts* (A) 341,200 15,781
Aeropostale* 579,450 7,678
Alliance Atlantis Communications, Cl B* 942,206 7,773
Applebee's International (A) 178,300 5,000
BearingPoint* (A) 1,823,000 11,613
Beazer Homes USA* (A) 77,850 4,578
CSK Auto* 459,750 4,184
Cumulus Media, Cl A* 98,700 1,437
Electronics Boutique & Holdings* (A) 337,551 5,667
Fairmont Hotels & Resorts (A) 472,600 10,634
Gaylord Entertainment* 435,600 7,819
Jo-Ann Stores, Cl A* (A) 74,700 1,494
Kirkland's* 657,550 8,219
LIN TV, Cl A* 10,900 223
Michaels Stores* (A) 250,600 6,267
Orient Express Hotels* 524,702 5,132
O'Reilly Automotive* (A) 364,748 9,885
Polaris Industries (A) 85,050 4,229
Ruby Tuesday (A) 373,500 7,619
Standard Pacific (A) 257,550 6,570
Station Casinos* (A) 417,250 8,808
The Wet Seal, Cl A* 989,150 7,221
Too* 430,700 7,154
Ultimate Electronics* (A) 101,350 806
------------
178,961
------------
CONSUMER STAPLES - 2.1%
Coors Adolph 59,950 2,907
Performance Food Group* (A) 522,879 16,031
------------
18,938
------------
ENERGY - 10.9%
FMC Technologies* 501,200 9,623
Helmerich & Payne (A) 454,750 11,651
Lone Star Technologies* 390,550 8,248
National-Oilwell* (A) 172,746 3,868
Oceaneering International* 176,400 3,854
Patterson-UTI Energy* (A) 79,000 2,556
Pioneer Natural Resources* 258,815 6,496
Premcor* 439,200 11,283
Teekay Shipping (A) 218,800 8,489
Ultra Petroleum* 1,325,750 11,706
Valero Energy (A) 112,950 4,674
Varco International* 901,600 16,508
------------
98,956
------------
FINANCIALS - 11.2%
Ameritrade Holding* (A) 285,950 1,418
Arthur J. Gallagher (A) 231,330 5,679
Brookline Bancorp 571,750 7,158
Cullen/Frost Bankers 185,280 5,629
East West Bancorp 272,215 8,398
Everest Re Group 244,250 13,974
First Niagara Financial Group 459,250 5,397
Hudson City Bancorp 495,350 10,026
Investors Financial Services (A) 202,940 4,941
Jefferies Group (A) 411,194 14,782
LaBranche (A) 232,100 $ 4,266
Platinum Underwriter Holdings (A) 377,700 9,575
Provident Financial Services* 86,200 1,363
RenaissanceRe Holdings (A) 214,350 8,585
------------
101,191
------------
HEALTH CARE - 13.4%
Accredo Health* (A) 131,050 3,190
Amylin Pharmaceuticals* (A) 305,930 4,956
Celgene* (A) 221,750 5,783
Cephalon* (A) 151,790 6,063
Community Health Systems* (A) 444,526 9,108
CTI Molecular Imaging* (A) 213,850 4,191
Henry Schein* 259,400 11,699
Medicis, Cl A* (A) 102,107 5,676
Mid-Atlantic Medical Services* 83,850 3,400
Omnicare (A) 704,525 19,170
Pharmaceutical Product Development* (A) 399,870 10,737
Priority Healthcare, Cl B* (A) 395,450 10,539
Province Healthcare* (A) 249,350 2,207
Respironics* 166,519 5,723
Triad Hospitals* (A) 502,455 13,516
United Surgical Partners* (A) 307,390 5,684
------------
121,642
------------
INDUSTRIALS - 12.9%
Albany International, Cl A* 400,950 9,186
Alliant Techsystems* (A) 306,850 16,573
Coinstar* (A) 433,800 7,284
DRS Technologies* 322,850 8,074
EDO (A) 228,740 4,140
Heartland Express* 243,500 4,670
Kroll* (A) 735,900 15,756
Mesa Air Group* 442,900 2,201
Navistar International* (A) 348,550 8,578
Northwest Airlines* (A) 730,600 5,041
Republic Services* 339,550 6,737
Swift Transportation* (A) 102,200 1,635
Triumph Group* 247,600 5,559
United Defense Industries* 25,750 557
Waste Connections* (A) 269,250 9,289
Werner Enterprises 236,950 4,564
Yellow* (A) 294,500 7,106
------------
116,950
------------
INFORMATION TECHNOLOGY - 16.1%
Aeroflex* 855,674 4,843
Agere Systems* 796,000 1,274
Anaren Microwave* (A) 435,175 3,764
ATMI* (A) 349,622 6,734
Axcelis Technologies* 587,400 2,778
Business Objects* (A) 595,670 9,739
Cerner* (A) 138,900 4,498
Cymer* (A) 224,650 5,313
Entegris* 1,662,360 16,557
Fisher Scientific International* (A) 153,387 4,289
Inforte* 678,980 4,013
Integrated Circuit Systems* (A) 108,450 2,353
Integrated Device Technology* 703,600 5,587
IXYS* 571,143 3,021
Kronos* 22,370 784
</Table>
23
<Page>
<Table>
<Caption>
DESCRIPTION SHARES/PAR (000) VALUE (000)
- ----------------------------------------------------------------------------------------
Legato Systems* 992,250 $ 5,090
Manhattan Associates* 216,750 3,800
ManTech International* 143,450 2,126
Mykrolis* 2,233,998 18,654
Polycom* (A) 212,200 1,715
SERENA Software* (A) 591,800 9,446
Take-Two Interactive Software* (A) 441,021 9,857
Tier Technologies* 432,800 4,380
TriZetto Group* (A) 351,400 1,451
Varian Semiconductor Equipment Associates* (A) 132,780 2,701
Vastera* 565,589 2,155
Zoran* (A) 675,250 8,717
------------
145,639
------------
MATERIALS - 1.6%
Agrium 266,650 2,867
Arch Coal (A) 171,950 3,269
Bowater (A) 225,600 8,381
------------
14,517
------------
TELECOMMUNICATION SERVICES - 0.7%
General Communication* 1,113,840 6,627
------------
TOTAL COMMON STOCKS 803,421
------------
REGISTERED INVESTMENT COMPANY - 1.0%
iShares S&P SmallCap 600 Index 98,300 8,992
------------
TOTAL REGISTERED INVESTMENT COMPANY 8,992
------------
RELATED PARTY MONEY MARKET FUND - 8.9%
First American Prime Obligations Fund, Cl Y (B) 80,486,526 80,487
------------
TOTAL RELATED PARTY MONEY MARKET FUND 80,487
------------
INVESTMENTS PURCHASED WITH CASH PROCEEDS
FROM SECURITIES LENDING - 31.7%
COMMERCIAL PAPER - 4.5%
CS First Boston
1.638%, 12/01/03 $ 5,033 5,033
Danske Bank
1.508%, 12/22/03 5,033 5,033
Goldman Sachs
1.518%, 08/28/03 6,542 6,542
Morgan Stanley
1.518%, 06/17/03 2,516 2,516
1.518%, 07/08/03 1,812 1,812
1.518%, 09/22/03 2,516 2,516
Orchard Park
1.475%, 01/06/04 5,033 5,033
UBS Financial
1.390%, 04/01/03 12,579 12,579
------------
TOTAL COMMERCIAL PAPER 41,064
------------
CORPORATE OBLIGATIONS - 3.5%
CS First Boston
1.760%, 04/11/03 5,033 5,033
Deutsche Bank
1.470%, 03/22/03 2,516 2,516
1.580%, 12/31/03 2,013 2,013
General Electric Capital Corporation
1.355%, 07/09/07 2,516 2,516
Merrill Lynch
1.538%, 05/05/03 4,278 4,278
Monet Trust
1.360%, 12/28/03 $ 5,033 $ 5,033
SMM Trust 2002-M
1.320%, 09/23/03 5,032 5,032
URI Trust
1.329%, 09/18/03 5,032 5,032
------------
TOTAL CORPORATE OBLIGATIONS 31,453
------------
MONEY MARKET FUNDS - 3.0%
AIM Liquid Assets Portfolio 8,555,193 8,555
Dreyfus Cash Manage Plus Fund 503,247 503
Evergreen Institutional Money Market Fund 1,761,363 1,761
HSBC Investor Money Market Fund - Cl I 1,509,740 1,510
Merrill Lynch Premier Institutional Fund 9,747,141 9,747
Merrimac Cash Series Fund 1,509,340 1,509
One Group Institutional Prime Money
Market Fund 3,019,480 3,020
Reserve Primary Fund 251,623 252
------------
TOTAL MONEY MARKET FUNDS 26,857
------------
OTHER SHORT-TERM INVESTMENTS - 2.9%
Allied Irish Bank
1.330%, 06/02/03 2,516 2,516
1.340%, 05/09/03 5,032 5,032
Commonwealth Life
1.678%, 04/01/03 2,541 2,541
General Electric Capital Assurance
1.370%, 12/19/03 1,007 1,007
Premium Asset Trust 02-7
1.381%, 08/23/03 3,206 3,206
Security Life Denver
1.490%, 03/15/04 5,032 5,032
1.381%, 01/13/04 6,542 6,542
------------
TOTAL OTHER SHORT-TERM INVESTMENTS 25,876
------------
REPURCHASE AGREEMENTS - 17.8%
Bear Stearns
1.420%, 04/10/03 10,065 10,065
CS First Boston
1.370%, 04/01/03 10,065 10,065
1.380%, 04/01/03 1,560 1,560
1.380%, 04/01/03 12,581 12,581
Goldman Sachs
1.360%, 06/10/03 2,516 2,516
1.400%, 06/11/03 2,516 2,516
1.420%, 04/07/03 5,032 5,032
1.520%, 04/01/03 7,549 7,549
Greenwich Capital Markets
1.430%, 04/01/03 15,097 15,097
Lehman Brothers
1.560%, 04/01/03 5,032 5,032
1.640%, 04/01/03 3,774 3,774
1.640%, 04/01/03 16,356 16,356
Merrill Lynch
1.560%, 04/01/03 6,291 6,291
1.360%, 04/01/03 15,097 15,097
1.500%, 04/01/03 7,549 7,549
1.560%, 04/01/03 10,065 10,065
Morgan Stanley
1.470%, 04/01/03 7,549 7,549
1.510%, 04/01/03 15,651 15,651
</Table>
The accompanying notes are an integral part of the financial statements.
24
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ----------------------------------------------------------------------------------------
Salomon Smith Barney
1.540%, 04/01/03 $ 7,549 $ 7,549
------------
TOTAL REPURCHASE AGREEMENTS 161,894
------------
TOTAL INVESTMENTS PURCHASED WITH CASH PROCEEDS FROM
SECURITIES LENDING (Cost $287,144) 287,144
------------
TOTAL INVESTMENTS - 130.2%
(Cost $1,224,817) 1,180,044
------------
OTHER ASSETS AND LIABILITIES, NET - (30.2)% (273,861)
------------
TOTAL NET ASSETS - 100.0% $ 906,183
------------
</Table>
* Non-income producing security
(A) This security or a portion of this security is out on loan at March 31,
2003. Total loaned securities had a value of $275,199,409 at March 31, 2003.
See note 2 in Notes to Financial Statements for additional information.
(B) This money market fund is advised by U.S. Bancorp Asset Management, Inc.,
which also serves as advisor for this Fund. See note 3 in Notes to Financial
Statements for additional information.
Cl - Class
SMALL CAP VALUE FUND
<Table>
<Caption>
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------------------------------------------
COMMON STOCKS - 97.7%
CONSUMER DISCRETIONARY - 11.9%
A.C. Moore Arts & Crafts* 234,100 $ 3,238
Ashworth* 452,100 2,871
Buca* 234,500 1,290
D.R. Horton (A) 393,146 7,548
Information Holdings* 78,500 1,264
La-Z-Boy 67,600 1,168
LodgeNet Entertainment* 613,100 5,211
O'Charley's* 276,100 5,293
School Specialty* (A) 329,800 5,861
Timberland, Cl A* (A) 181,150 7,574
Tower Automotive* 800,800 1,898
Ultimate Electronics* 242,200 1,925
West Marine* 88,100 1,476
------------
46,617
------------
CONSUMER STAPLES - 3.1%
Dean Foods* (A) 89,700 3,849
Regis 203,700 5,074
Steiner Leisure* 272,000 3,074
------------
11,997
------------
ENERGY - 4.2%
Evergreen Resources* (A) 106,100 4,807
Forest Oil* 154,000 3,434
Newfield Exploration* 139,150 4,716
Newpark Resources* 485,850 2,201
Tesoro Petroleum* (A) 184,100 1,362
------------
16,520
------------
FINANCIALS - 30.1%
American Capital Strategies (A) 203,700 4,563
Astoria Financial (A) 165,850 3,853
Camden Property Trust (REIT) 108,600 3,519
CBL & Associates Properties (REIT) 108,900 4,420
Chelsea Property Group (REIT) (A) 130,100 4,846
City National (A) 93,300 4,100
Community First Bankshares 246,200 6,290
Corporate Office Properties Trust (REIT) 274,100 4,084
Downey Financial 23,100 910
E*TRADE Group* (A) 767,400 3,231
Federal Agricultural Mortgage, Cl C* 76,750 1,672
First Republic Bank* 357,630 7,725
Greater Bay Bancorp (A) 168,700 2,412
Highwoods Properties (REIT) 200,700 4,102
Horace Mann Educators (A) 173,600 2,278
LandAmerica Financial Group 68,050 2,705
Lexington Corporate Properties Trust (REIT) 187,886 3,203
Local Financial* 217,600 3,138
Markel* (A) 22,750 5,089
National Commerce Financial 118,100 2,799
Pan Pacific Retail Properties (REIT) (A) 69,900 2,646
Philadelphia Consolidated Holding* 131,100 4,720
Phoenix Companies (A) 259,900 1,882
Platinum Underwriter Holdings (A) 82,400 2,089
Protective Life 222,100 6,341
PS Business Parks (REIT) 80,850 2,405
Radian Group (A) 374,268 12,493
Redwood Trust (REIT) (A) 61,500 1,999
RLI 72,950 1,960
</Table>
25
<Page>
<Table>
<Caption>
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------------------------------------------
Sterling Bancshares 257,700 $ 3,064
Windrose Medical Properties Trust (REIT) 303,300 2,881
------------
117,419
------------
HEALTH CARE - 9.3%
Cooper (A) 111,400 3,331
Cytec* (A) 609,450 7,953
HealthSouth* (A) 410,700 35
Kensey Nash* (A) 162,700 3,332
Natus Medical* 531,500 1,812
Province Healthcare* (A) 547,700 4,847
Regeneration Technologies* 268,130 2,413
RehabCare Group* (A) 229,250 4,092
Renal Care* (A) 188,950 5,891
Res-Care* 131,400 384
Serologicals* 264,500 2,248
------------
36,338
------------
INDUSTRIALS - 19.3%
AGCO* (A) 121,100 1,950
Alliant Techsystems* (A) 128,025 6,915
American Woodmark 85,750 3,782
C&D Technologies 116,200 1,392
Coinstar* 342,000 5,742
Dollar Thrifty Automotive* 117,450 1,956
ExpressJet Holdings* 431,000 3,534
General Maritime* 110,450 939
Headwaters* 132,600 1,863
ITT Educational Services* 255,700 7,160
Landstar* 89,600 5,152
Mercury Computer Systems* 34,150 929
Moog, Cl A* 302,400 9,253
NCO Group* 244,000 3,538
On Assignment* 629,750 2,664
Pacer International* 104,900 1,314
Pentair 76,300 2,697
Simpson Manufacturing* 74,700 2,525
Teletech Holdings* 515,800 2,801
Tredegar 110,600 1,322
Tsakos Energy Navigation 142,100 1,847
Waste Connections* (A) 181,700 6,269
------------
75,544
------------
INFORMATION TECHNOLOGY - 13.3%
3Com* 475,400 2,344
Actel* (A) 230,600 3,934
Advanced Digital Information* 286,350 1,973
Allen Telecom* 122,650 1,196
BARRA* (A) 138,700 4,118
Black Box* (A) 71,950 2,132
Business Objects* (A) 124,900 2,042
Carreker* (A) 443,000 908
DSP Group* 66,000 1,197
FSI International* 224,200 522
Hutchinson Technology* 85,250 2,107
Hyperion Solutions* (A) 66,300 1,608
Innovex* 546,600 3,575
JDA Software* 239,800 2,424
Mykrolis* 325,700 2,720
Nassda* 192,150 1,268
Novell* 298,550 642
Open Text* (A) 72,650 $ 2,022
ProQuest* (A) 504,100 10,420
RadiSys* 293,600 1,947
THQ* (A) 167,200 2,187
Vastera* 181,250 691
------------
51,977
------------
MATERIALS - 2.0%
FMC* 90,700 1,422
Georgia Gulf 95,600 1,924
Gibraltar Steel 96,300 1,795
L.B. Foster* 254,000 978
Oregon Steel Mills* 228,200 536
Quanex 34,100 1,081
------------
7,736
------------
UTILITIES - 4.5%
AGL Resources 70,300 1,661
CLECO 168,100 2,110
NSTAR (A) 175,000 7,003
Unisource Energy Holding 397,900 6,884
------------
17,658
------------
TOTAL COMMON STOCKS 381,806
------------
RELATED PARTY MONEY MARKET FUND - 2.3%
First American Prime Obligations Fund, Cl Y (B) 8,898,042 8,898
------------
TOTAL RELATED PARTY MONEY MARKET FUND 8,898
------------
INVESTMENTS PURCHASED WITH CASH PROCEEDS
FROM SECURITIES LENDING - 32.8%
COMMERCIAL PAPER - 4.7%
CS First Boston
1.638%, 12/01/03 $ 2,249 2,249
Danske Bank
1.508%, 12/22/03 2,249 2,249
Goldman Sachs
1.518%, 08/28/03 2,923 2,923
Morgan Stanley
1.518%, 06/17/03 1,124 1,124
1.518%, 07/08/03 809 809
1.518%, 09/22/03 1,124 1,124
Orchard Park
1.475%, 01/06/04 2,249 2,249
UBS Financial
1.390%, 04/01/03 5,621 5,621
------------
TOTAL COMMERCIAL PAPER 18,348
------------
CORPORATE OBLIGATIONS - 3.6%
CS First Boston
1.760%, 04/11/03 2,249 2,249
Deutsche Bank
1.470%, 03/22/03 1,124 1,124
1.580%, 12/31/03 899 899
General Electric Capital Corporation
1.355%, 07/09/07 1,124 1,124
Merrill Lynch
1.538%, 05/05/03 1,911 1,911
Monet Trust
1.360%, 12/28/03 2,249 2,249
SMM Trust 2002-M
1.320%, 09/23/03 2,249 2,249
</Table>
The accompanying notes are an integral part of the financial statements.
26
<Page>
<Table>
<Caption>
DESCRIPTION SHARES/PAR (000) VALUE (000)
- ----------------------------------------------------------------------------------------
URI Trust
1.329%, 09/18/03 $ 2,249 $ 2,249
------------
TOTAL CORPORATE OBLIGATIONS 14,054
------------
MONEY MARKET FUNDS - 3.1%
AIM Liquid Assets Portfolio 3,822,595 3,823
Dreyfus Cash Manage Plus Fund 224,858 225
Evergreen Institutional Money Market Fund 787,005 787
HSBC Investor Money Market Fund - Cl I 674,576 674
Merrill Lynch Premier Institutional Fund 4,355,177 4,355
Merrimac Cash Series Fund 674,576 675
One Group Institutional Prime
Money Market Fund 1,349,151 1,349
Reserve Primary Fund 112,429 112
------------
TOTAL MONEY MARKET FUNDS 12,000
------------
OTHER SHORT-TERM INVESTMENTS - 2.9%
Allied Irish Bank
1.330%, 06/02/03 1,124 1,124
1.340%, 05/09/03 2,249 2,249
Commonwealth Life
1.678%, 04/01/03 1,135 1,135
General Electric Capital Assurance
1.370%, 12/19/03 450 450
Premium Asset Trust 02-7
1.381%, 08/23/03 1,432 1,432
Security Life Denver
1.490%, 03/15/04 2,249 2,249
1.381%, 01/13/04 2,923 2,923
------------
TOTAL OTHER SHORT-TERM INVESTMENTS 11,562
------------
REPURCHASE AGREEMENTS - 18.5%
Bear Stearns
1.420%, 04/10/03 4,497 4,497
CS First Boston
1.370%, 04/01/03 4,497 4,497
1.380%, 04/01/03 697 697
1.380%, 04/01/03 5,621 5,621
Goldman Sachs
1.360%, 06/10/03 1,124 1,124
1.400%, 06/11/03 1,124 1,124
1.420%, 04/07/03 2,249 2,249
1.520%, 04/01/03 3,373 3,373
Greenwich Capital Markets
1.430%, 04/01/03 6,746 6,746
Lehman Brothers
1.560%, 04/01/03 2,249 2,249
1.640%, 04/01/03 1,686 1,686
1.640%, 04/01/03 7,308 7,308
Merrill Lynch
1.560%, 04/01/03 2,811 2,811
1.360%, 04/01/03 6,746 6,746
1.500%, 04/01/03 3,373 3,373
1.560%, 04/01/03 4,497 4,497
Morgan Stanley
1.470%, 04/01/03 3,373 3,373
1.510%, 04/01/03 6,993 6,993
Salomon Smith Barney
1.540%, 04/01/03 $ 3,373 $ 3,373
------------
TOTAL REPURCHASE AGREEMENTS 72,337
------------
TOTAL INVESTMENTS PURCHASED WITH CASH PROCEEDS FROM
SECURITIES LENDING (Cost $128,301) 128,301
------------
TOTAL INVESTMENTS - 132.8%
(Cost $525,285) 519,005
------------
OTHER ASSETS AND LIABILITIES, NET - (32.8)% (128,154)
------------
TOTAL NET ASSETS - 100.0% $ 390,851
------------
</Table>
* Non-income producing security
(A) This security or a portion of this security is out on loan at March 31,
2003. Total loaned securities had a value of $121,194,338 at March 31, 2003.
See note 2 in Notes to Financial Statements for additional information.
(B) This money market fund is advised by U.S. Bancorp Asset Management, Inc.,
which also serves as advisor for this Fund. See note 3 in Notes to Financial
Statements for additional information.
Cl - Class
REIT - Real Estate Investment Trust
27
<Page>
STATEMENTS OF ASSETS AND LIABILITIES March 31, 2003 (unaudited), in thousands,
except per share data
<Table>
<Caption>
SMALL CAP GROWTH SMALL CAP SMALL CAP
OPPORTUNITIES FUND SELECT FUND VALUE FUND
- ------------------------------------------------------------------------------------------------------------------
ASSETS:
Investments in securities, at value *+ $ 320,285 $ 1,180,044 $ 519,005
Cash 2,276 8 --
Dividends and interest receivable 61 150 344
Capital shares sold 465 742 390
Receivable for investment securities sold 5,101 34,631 1,819
Prepaid expenses and other assets 35 38 20
Other receivables -- 10 --
- ------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 328,223 1,215,623 521,578
==================================================================================================================
LIABILITIES:
Capital shares redeemed 1,000 994 409
Bank overdraft -- -- 1
Payable upon return of securities loaned 63,172 287,144 128,301
Payable for investment securities purchased 3,307 20,587 1,686
Payable for advisory, co-administration, and custodian fees 336 686 311
Distribution and shareholder servicing fees 13 28 18
Accrued expenses and other liabilities 1 1 1
- ------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 67,829 309,440 130,727
==================================================================================================================
NET ASSETS $ 260,394 $ 906,183 $ 390,851
==================================================================================================================
COMPOSITION OF NET ASSETS:
Portfolio capital $ 327,737 $ 968,559 $ 398,351
Accumulated net investment income (loss) (2,059) (1,916) 228
Accumulated net realized loss on investments (40,001) (15,687) (1,448)
Net unrealized depreciation of investments (25,283) (44,773) (6,280)
- ------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 260,394 $ 906,183 $ 390,851
==================================================================================================================
*Investments in securities, at cost $ 345,568 $ 1,224,817 $ 525,285
+Including securities loaned $ 58,427 $ 275,199 $ 121,194
CLASS A:
Net assets $ 43,404 $ 55,301 $ 25,577
Shares issued and outstanding
($0.0001 par value -- 2 billion authorized) 2,972 4,910 2,327
Net asset value and redemption price per share $ 14.63 $ 11.26 $ 10.99
Maximum offering price per share (1) $ 15.48 $ 11.92 $ 11.63
CLASS B:
Net assets $ 3,732 $ 8,925 $ 10,884
Shares issued and outstanding
($0.0001 par value -- 2 billion authorized) 265 854 1,036
Net asset value, offering price, and redemption price per share (2) $ 14.08 $ 10.45 $ 10.51
CLASS C:
Net assets $ 369 $ 8,666 $ 3,685
Shares issued and outstanding
($0.0001 par value -- 2 billion authorized) 26 777 347
Net asset value per share (2) $ 14.48 $ 11.15 $ 10.62
Maximum offering price per share (3) $ 14.63 $ 11.26 $ 10.73
CLASS S:
Net assets $ 2,460 $ 8,737 $ 947
Shares issued and outstanding
($0.0001 par value -- 2 billion authorized) 168 777 86
Net asset value, offering price, and redemption
price per share $ 14.64 $ 11.24 $ 10.99
CLASS Y:
Net assets $ 210,429 $ 824,554 $ 349,758
Shares issued and outstanding
($0.0001 par value -- 2 billion authorized) 13,946 71,026 31,481
Net asset value, offering price, and redemption price per share $ 15.12 $ 11.61 $ 11.11
- ------------------------------------------------------------------------------------------------------------------
</Table>
(1) The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 5.50%
(2) Class B and C have a contingent deferred sales charge. For a description of
this sales charge, see notes 1 and 3 in Notes to Financial Statements.
(3) The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 1.00%
The accompanying notes are an integral part of the financial statements.
28
<Page>
STATEMENTS OF OPERATIONS For the six months ended March 31, 2003 (unaudited), in
thousands
<Table>
<Caption>
SMALL CAP GROWTH SMALL CAP SMALL CAP
OPPORTUNITIES FUND SELECT FUND VALUE FUND
- ------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest $ 78 $ 280 $ 160
Dividends 252 817 2,379
Securities lending 59 76 59
Other income -- 169 15
- ------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 389 1,342 2,613
==================================================================================================================
EXPENSES:
Investment advisory fees 1,970 2,294 1,407
Co-administration fees and expenses (including per account transfer
agency fees) 397 925 564
Custodian fees 14 33 20
Directors' fees 2 5 3
Registration fees 18 11 17
Professional fees 3 7 5
Printing 5 12 8
Miscellaneous expenses 3 7 5
Distribution and shareholder servicing fees - Class A 61 47 33
Distribution and shareholder servicing fees - Class B 20 28 58
Distribution and shareholder servicing fees - Class C 1 23 21
Shareholder servicing fees - Class S 3 12 1
- ------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES 2,497 3,404 2,142
==================================================================================================================
Less: Waiver of expenses (49) (148) (59)
- ------------------------------------------------------------------------------------------------------------------
TOTAL NET EXPENSES 2,448 3,256 2,083
==================================================================================================================
INVESTMENT INCOME (LOSS) - NET (2,059) (1,914) 530
==================================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS - NET:
Net realized gain (loss) on investments (17,872) (105) 2,645
Net change in unrealized appreciation or depreciation of investments 33,982 9,158 (12,460)
- ------------------------------------------------------------------------------------------------------------------
NET GAIN (LOSS) ON INVESTMENTS 16,110 9,053 (9,815)
==================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 14,051 $ 7,139 $ (9,285)
==================================================================================================================
</Table>
The accompanying notes are an integral part of the financial statements.
29
<Page>
STATEMENTS OF CHANGES IN NET ASSETS in thousands
<Table>
<Caption>
SMALL CAP GROWTH SMALL CAP
OPPORTUNITIES FUND SELECT FUND
- ---------------------------------------------------------------------------------------------------------------------------------
10/1/02 10/1/01 10/1/02 10/1/01
TO TO TO TO
3/31/03 9/30/02 3/31/03 9/30/02
- ---------------------------------------------------------------------------------------------------------------------------------
(UNAUDITED) (UNAUDITED)
OPERATIONS:
Investment income (loss) - net $ (2,059) $ (4,747) $ (1,914) $ (2,747)
Net realized gain (loss) on investments (17,872) (14,699) (105) (14,145)
Net change in unrealized appreciation or depreciation of investments 33,982 (38,629) 9,158 (37,514)
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations 14,051 (58,075) 7,139 (54,406)
- ---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Class A -- -- -- --
Class Y -- -- -- --
Net realized gain on investments:
Class A -- -- -- (1,300)
Class B -- -- -- (158)
Class C -- -- -- --
Class S -- -- -- (450)
Class Y -- -- -- (21,686)
Tax return of capital (2):
Class A -- (79) -- --
Class B -- (7) -- --
Class C -- -- -- --
Class S -- (4) -- --
Class Y -- (367) -- (1)
- ---------------------------------------------------------------------------------------------------------------------------------
Total distributions -- (457) -- (23,595)
=================================================================================================================================
CAPITAL SHARE TRANSACTIONS (1):
Class A:
Proceeds from sales 9,566 66,579 5,825 29,998
Reinvestment of distributions -- 74 -- 1,251
Payments for redemptions (13,275) (54,278) (5,766) (7,318)
Shares issued in connection with the acquisition of Fund
net assets -- -- 20,516 --
- ---------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class A transactions (3,709) 12,375 20,575 23,931
- ---------------------------------------------------------------------------------------------------------------------------------
Class B:
Proceeds from sales 347 2,871 1,241 4,926
Reinvestment of distributions -- 5 -- 151
Payments for redemptions (576) (887) (532) (1,319)
Shares issued in connection with the acquisition of Fund
net assets -- -- 3,568 --
- ---------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class B transactions (229) 1,989 4,277 3,758
- ---------------------------------------------------------------------------------------------------------------------------------
Class C:
Proceeds from sales 225 547 6,288 4,274
Reinvestment of distributions -- -- -- --
Payments for redemptions (132) (191) (629) (331)
Shares issued in connection with the acquisition of Fund
net assets -- -- 3 --
- ---------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class C transactions 93 356 5,662 3,943
- ---------------------------------------------------------------------------------------------------------------------------------
Class S:
Proceeds from sales 653 1,231 3,326 8,056
Reinvestment of distributions -- 3 -- 414
Payments for redemptions (316) (822) (3,031) (3,379)
Shares issued in connection with the acquisition of Fund
net assets -- -- 495 --
- ---------------------------------------------------------------------------------------------------------------------------------
Increase in net assets from Class S transactions 337 412 790 5,091
- ---------------------------------------------------------------------------------------------------------------------------------
Class Y:
Proceeds from sales 23,701 38,639 162,003 215,508
Reinvestment of distributions -- 334 -- 17,900
Payments for redemptions (33,189) (52,763) (62,182) (54,921)
Shares issued in connection with the acquisition of Fund
net assets -- -- 186,283 --
Shares issued in connection with the acquisition of
Common Trust Fund net assets -- -- 129,674 --
- ---------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class Y transactions (9,488) (13,790) 415,778 178,487
- ---------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital share transactions (12,996) 1,342 447,082 215,210
- ---------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 1,055 (57,190) 454,221 137,209
NET ASSETS AT BEGINNING OF PERIOD 259,339 316,529 451,962 314,753
=================================================================================================================================
NET ASSETS AT END OF PERIOD $ 260,394 $ 259,339 $ 906,183 $ 451,962
=================================================================================================================================
ACCUMULATED NET INVESTMENT INCOME (LOSS) AT END OF PERIOD $ (2,059) $ -- $ (1,916) $ (2)
=================================================================================================================================
<Caption>
SMALL CAP
VALUE FUND
- ---------------------------------------------------------------------------------------------------
10/1/02 10/1/01
TO TO
3/31/03 9/30/02
(UNAUDITED)
- ---------------------------------------------------------------------------------------------------
OPERATIONS:
Investment income (loss) - net $ 530 $ 359
Net realized gain (loss) on investments 2,645 (4,026)
Net change in unrealized appreciation or depreciation of investments (12,460) 595
- ---------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations (9,285) (3,072)
- ---------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Class A (4) (9)
Class Y (326) (232)
Net realized gain on investments:
Class A -- (4,957)
Class B -- (1,853)
Class C -- (685)
Class S -- --
Class Y -- (60,108)
Tax return of capital (2):
Class A -- (9)
Class B -- (4)
Class C -- (2)
Class S -- --
Class Y -- (125)
- ---------------------------------------------------------------------------------------------------
Total distributions (330) (67,984)
- ---------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (1):
Class A:
Proceeds from sales 2,944 15,440
Reinvestment of distributions 4 4,903
Payments for redemptions (3,922) (22,134)
Shares issued in connection with the acquisition of Fund
net assets -- --
- ---------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class A transactions (974) (1,791)
- ---------------------------------------------------------------------------------------------------
Class B:
Proceeds from sales 526 2,929
Reinvestment of distributions -- 1,829
Payments for redemptions (1,331) (2,742)
Shares issued in connection with the acquisition of Fund
net assets -- --
- ---------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class B transactions (805) 2,016
- ---------------------------------------------------------------------------------------------------
Class C:
Proceeds from sales 473 1,961
Reinvestment of distributions -- 680
Payments for redemptions (1,539) (1,345)
Shares issued in connection with the acquisition of Fund
net assets -- --
- ---------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class C transactions (1,066) 1,296
- ---------------------------------------------------------------------------------------------------
Class S:
Proceeds from sales 606 554
Reinvestment of distributions -- --
Payments for redemptions (56) (30)
Shares issued in connection with the acquisition of Fund
net assets -- --
- ---------------------------------------------------------------------------------------------------
Increase in net assets from Class S transactions 550 524
- ---------------------------------------------------------------------------------------------------
Class Y:
Proceeds from sales 32,146 115,959
Reinvestment of distributions 258 50,436
Payments for redemptions (42,245) (170,110)
Shares issued in connection with the acquisition of Fund
net assets -- --
Shares issued in connection with the acquisition of
Common Trust Fund net assets -- --
- ---------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class Y transactions (9,841) (3,715)
- ---------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital share transactions (12,136) (1,670)
- ---------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (21,751) (72,726)
NET ASSETS AT BEGINNING OF PERIOD 412,602 485,328
===================================================================================================
NET ASSETS AT END OF PERIOD $ 390,851 $ 412,602
===================================================================================================
ACCUMULATED NET INVESTMENT INCOME (LOSS) AT END OF PERIOD $ 228 $ 28
===================================================================================================
</Table>
(1) See Note 4 in Notes to Financial Statements for additional information.
(2) Distributions from tax return of capital for Small Cap Growth Opportunities
Fund Class C, Small Cap Select Fund Class A, B, C, and S, and Small Cap
Value Fund Class S were less than $1,000 for the fiscal year ended
September 30, 2002.
The accompanying notes are an integral part of the financial statements.
30
<Page>
(This page has been left blank intentionally.)
<Page>
fINANCIAL HIGHLIGHTS For a share outstanding throughout the periods ended
September 30, unless otherwise indicated.
<Table>
<Caption>
REALIZED AND
NET ASSET UNREALIZED DIVIDENDS
VALUE NET GAINS OR FROM NET
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT
OF PERIOD INCOME (LOSS) INVESTMENTS INCOME
- -------------------------------------------------------------------------------------------------------
SMALL CAP GROWTH OPPORTUNITIES(1)
Class A
2003(3)(11) $ 13.86 $ (0.13) $ 0.90 $ --
2002 16.89 (0.26) (2.74) --
2001(2)(3) 31.26 (0.17) (5.20) --
2000(3) 21.80 (0.40) 15.99 --
1999 12.38 (0.26) 9.71 --
1998(3) 17.47 (0.25) (3.17) --
Class B
2003(3)(11) $ 13.39 $ (0.18) $ 0.87 $ --
2002 16.44 (0.39) (2.63) --
2001(2)(3) 30.84 (0.31) (5.09) --
2000(3) 21.69 (0.61) 15.89 --
1999(3)(4) 13.74 (0.30) 8.25 --
Class C
2003(3)(11) $ 13.77 $ (0.18) $ 0.89 $ --
2002 16.90 (0.19) (2.91) --
2001(3)(5) 16.34 -- 0.56 --
Class S
2003(3)(11) $ 13.86 $ (0.13) $ 0.91 $ --
2002 16.89 (0.26) (2.74) --
2001(3)(6) 20.01 (0.19) (2.93) --
Class Y
2003(3)(11) $ 14.30 $ (0.11) $ 0.93 $ --
2002 17.38 (0.25) (2.80) --
2001(2)(3) 31.83 (0.12) (5.33) --
2000 22.06 (0.31) 16.21 --
1999 12.49 (0.19) 9.79 --
1998 17.57 (0.22) (3.19) --
- -------------------------------------------------------------------------------------------------------
SMALL CAP SELECT(7)
Class A
2003(3)(11) $ 10.68 $ (0.05) $ 0.63 $ --
2002(3) 11.97 (0.10) (0.30) --
2001(2)(3) 17.60 (0.03) (1.89) --
2000(3)(8) 13.84 (0.10) 4.13 (0.01)
1999(3) 11.86 (0.07) 2.10 --
1998 15.03 (0.06) (1.89) --
Class B
2003(3)(11) $ 9.95 $ (0.08) $ 0.58 $ --
2002(3) 11.28 (0.19) (0.25) --
2001(2)(3) 16.90 (0.12) (1.79) --
2000(3)(8) 13.38 (0.13) 3.92 --
1999(3) 11.53 (0.16) 2.06 --
1998 14.74 (0.14) (1.85) --
Class C(3)
2003(11) $ 10.62 $ (0.09) $ 0.62 $ --
2002 11.97 (0.20) (0.26) --
2001(5) 11.72 -- 0.25 --
Class S
2003(3)(11) $ 10.66 $ (0.05) $ 0.63 $ --
2002(3) 11.94 (0.10) (0.29) --
2001(2)(3) 17.55 (0.01) (1.89) --
2000(3)(8) 13.80 (0.01) 4.03 (0.01)
1999(3) 11.82 (0.07) 2.10 --
1998 14.98 (0.07) (1.87) --
Class Y
2003(3)(11) $ 11.00 $ (0.03) $ 0.64 $ --
2002(3) 12.26 (0.07) (0.30) --
2001(2)(3) 17.92 0.00 (1.95) --
2000(3)(8) 14.07 0.05 4.10 (0.03)
1999(3) 12.02 (0.03) 2.13 --
1998 15.17 (0.02) (1.91) --
<Caption>
DISTRIBUTIONS
DISTRIBUTIONS FROM
FROM RETURN OF
CAPITAL GAINS CAPITAL (9)
- --------------------------------------------------------------------
SMALL CAP GROWTH OPPORTUNITIES(1)
Class A
2003(3)(11) $ -- $ --
2002 -- (0.03)
2001(2)(3) (9.00) --
2000(3) (6.13) --
1999 (0.03) --
1998(3) (1.67) --
Class B
2003(3)(11) $ -- $ --
2002 -- (0.03)
2001(2)(3) (9.00) --
2000(3) (6.13) --
1999(3)(4) -- --
Class C
2003(3)(11) $ -- $ --
2002 -- (0.03)
2001(3)(5) -- --
Class S
2003(3)(11) $ -- $ --
2002 -- (0.03)
2001(3)(6) -- --
Class Y
2003(3)(11) $ -- $ --
2002 -- (0.03)
2001(2)(3) (9.00) --
2000 (6.13) --
1999 (0.03) --
1998 (1.67) --
- --------------------------------------------------------------------
SMALL CAP SELECT(7)
Class A
2003(3)(11) $ -- $ --
2002(3) (0.89) --
2001(2)(3) (3.71) --
2000(3)(8) (0.26) --
1999(3) (0.05) --
1998 (1.22) --
Class B
2003(3)(11) $ -- $ --
2002(3) (0.89) --
2001(2)(3) (3.71) --
2000(3)(8) (0.27) --
1999(3) (0.05) --
1998 (1.22) --
Class C(3)
2003(11) $ -- $ --
2002 (0.89) --
2001(5) -- --
Class S
2003(3)(11) $ -- $ --
2002(3) (0.89) --
2001(2)(3) (3.71) --
2000(3)(8) (0.26) --
1999(3) (0.05) --
1998 (1.22) --
Class Y
2003(3)(11) $ -- $ --
2002(3) (0.89) --
2001(2)(3) (3.71) --
2000(3)(8) (0.27) --
1999(3) (0.05) --
1998 (1.22) --
- --------------------------------------------------------------------
</Table>
The accompanying notes are an integral part of the financial statements.
32
<Page>
<Table>
<Caption>
RATIO OF NET
NET ASSET RATIO OF INVESTMENT
VALUE NET ASSETS EXPENSES TO INCOME (LOSS)
END OF TOTAL END OF AVERAGE TO AVERAGE
PERIOD RETURN (10) PERIOD (000) NET ASSETS NET ASSETS
- -------------------------------------------------------------------------------------------------------------------------
SMALL CAP GROWTH OPPORTUNITIES(1)
Class A
2003(3)(11) $ 14.63 5.56% $ 43,404 1.93% (1.67)%
2002 13.86 (17.84) 44,834 1.93 (1.53)
2001(2)(3) 16.89 (21.51) 45,233 1.93 (0.91)
2000(3) 31.26 87.43 43,031 1.96 (1.31)
1999 21.80 76.54 21,988 2.01 (1.43)
1998(3) 12.38 (21.71) 12,419 1.99 (1.63)
Class B
2003(3)(11) $ 14.08 5.15% $ 3,732 2.68% (2.42)%
2002 13.39 (18.45) 3,779 2.68 (2.28)
2001(2)(3) 16.44 (22.07) 3,165 2.68 (1.68)
2000(3) 30.84 86.13 2,136 2.71 (2.06)
1999(3)(4) 21.69 57.86 140 2.78 (2.36)
Class C
2003(3)(11) $ 14.48 5.16% $ 369 2.68% (2.41)%
2002 13.77 (18.42) 260 2.68 (2.31)
2001(3)(5) 16.90 3.43 1 1.63 (0.41)
Class S
2003(3)(11) $ 14.64 5.63% $ 2,460 1.93% (1.66)%
2002 13.86 (17.84) 2,027 1.93 (1.53)
2001(3)(6) 16.89 (15.59) 2,014 1.94 (1.06)
Class Y
2003(3)(11) $ 15.12 5.73% $ 210,429 1.68% (1.42)%
2002 14.30 (17.62) 208,439 1.68 (1.28)
2001(2)(3) 17.38 (21.35) 266,115 1.68 (0.64)
2000 31.83 87.90 322,981 1.71 (1.06)
1999 22.06 77.06 150,898 1.76 (1.18)
1998 12.49 (21.51) 72,696 1.74 (1.38)
- -------------------------------------------------------------------------------------------------------------------------
SMALL CAP SELECT(7)
Class A
2003(3)(11) $ 11.26 5.43% $ 55,301 1.21% (0.82)%
2002(3) 10.68 (4.56) 33,586 1.21 (0.81)
2001(2)(3) 11.97 (12.63) 17,351 1.19 (0.24)
2000(3)(8) 17.60 29.65 9,538 1.28 (0.01)
1999(3) 13.84 17.21 8,885 1.26 (0.57)
1998 11.86 (14.19) 11,601 1.25 (0.45)
Class B
2003(3)(11) $ 10.45 5.03% $ 8,925 1.96% (1.57)%
2002(3) 9.95 (5.23) 4,613 1.96 (1.56)
2001(2)(3) 11.28 (13.21) 1,979 1.93 (0.99)
2000(3)(8) 16.90 28.81 1,331 1.98 (0.71)
1999(3) 13.38 16.57 1,094 1.96 (1.27)
1998 11.53 (14.79) 1,286 1.95 (1.15)
Class C(3)
2003(11) $ 11.15 4.99% $ 8,666 1.96% (1.55)%
2002 10.62 (5.09) 3,096 1.96 (1.61)
2001(5) 11.97 2.13 -- 0.00 0.00
Class S
2003(3)(11) $ 11.24 5.44% $ 8,737 1.21% (0.83)%
2002(3) 10.66 (4.48) 7,640 1.21 (0.80)
2001(2)(3) 11.94 (12.52) 3,721 1.07 (0.05)
2000(3)(8) 17.55 29.67 4,442 1.28 (0.01)
1999(3) 13.80 17.27 2,448 1.26 (0.59)
1998 11.82 (14.17) 25,037 1.25 (0.45)
Class Y
2003(3)(11) $ 11.61 5.55% $ 824,554 0.96% (0.57)%
2002(3) 11.00 (4.19) 403,027 0.96 (0.55)
2001(2)(3) 12.26 (12.49) 291,706 0.93 0.01
2000(3)(8) 17.92 30.01 134,617 0.98 0.29
1999(3) 14.07 17.57 111,643 0.96 (0.26)
1998 12.02 (13.90) 129,591 0.95 (0.16)
<Caption>
RATIO OF RATIO OF NET
EXPENSES TO INVESTMENT
AVERAGE (LOSS) TO PORTFOLIO
NET ASSETS AVERAGE NET ASSETS TURNOVER
(EXCLUDING WAIVERS) (EXCLUDING WAIVERS) RATE
- ---------------------------------------------------------------------------------------------
SMALL CAP GROWTH OPPORTUNITIES(1)
Class A
2003(3)(11) 1.96% (1.70)% 70%
2002 1.97 (1.57) 123
2001(2)(3) 1.99 (0.97) 125
2000(3) 1.96 (1.31) 179
1999 2.02 (1.44) 200
1998(3) 2.06 (1.70) 136
Class B
2003(3)(11) 2.71% (2.45)% 70%
2002 2.72 (2.32) 123
2001(2)(3) 2.74 (1.74) 125
2000(3) 2.71 (2.06) 179
1999(3)(4) 2.78 (2.36) 200
Class C
2003(3)(11) 2.71% (2.44)% 70%
2002 2.72 (2.35) 123
2001(3)(5) 1.76 (0.54) 125
Class S
2003(3)(11) 1.96% (1.69)% 70%
2002 1.97 (1.57) 123
2001(3)(6) 2.00 (1.12) 125
Class Y
2003(3)(11) 1.71% (1.45)% 70%
2002 1.72 (1.32) 123
2001(2)(3) 1.74 (0.70) 125
2000 1.71 (1.06) 179
1999 1.77 (1.19) 200
1998 1.81 (1.45) 136
- ---------------------------------------------------------------------------------------------
SMALL CAP SELECT(7)
Class A
2003(3)(11) 1.26% (0.87)% 81%
2002(3) 1.25 (0.85) 171
2001(2)(3) 1.22 (0.27) 204
2000(3)(8) 1.39 (0.12) 91
1999(3) 1.36 (0.67) 72
1998 1.35 (0.55) 70
Class B
2003(3)(11) 2.01% (1.62)% 81%
2002(3) 2.00 (1.60) 171
2001(2)(3) 1.97 (1.03) 204
2000(3)(8) 2.09 (0.82) 91
1999(3) 2.06 (1.37) 72
1998 2.05 (1.25) 70
Class C(3)
2003(11) 2.01% (1.60)% 81%
2002 2.02 (1.67) 171
2001(5) 0.00 0.00 204
Class S
2003(3)(11) 1.26% (0.88)% 81%
2002(3) 1.25 (0.84) 171
2001(2)(3) 1.14 (0.12) 204
2000(3)(8) 1.39 (0.12) 91
1999(3) 1.36 (0.69) 72
1998 1.35 (0.55) 70
Class Y
2003(3)(11) 1.01% (0.62)% 81%
2002(3) 1.00 (0.59) 171
2001(2)(3) 0.96 (0.02) 204
2000(3)(8) 1.39 (0.12) 91
1999(3) 1.36 (0.66) 72
1998 1.35 (0.56) 70
</Table>
(1) The financial highlights for the Small Cap Growth Opportunities Fund as set
forth herein include the historical financial highlights of the Firstar
Micro Cap Fund. The assets of the Firstar Fund were acquired by the First
American Small Cap Growth Opportunities Fund on September 24, 2001. In
connection with such acquisition, (i) Class A shares of the Firstar Micro
Cap Fund were exchanged for Class A shares of the First American Small Cap
Growth Opportunities Fund, (ii) Firstar Class B shares were exchanged for
Class B shares of the First American Fund, (iii) Firstar Class Y shares
were exchanged for Class S shares of the First American Fund, and (iv)
Firstar Institutional Class shares were exchanged for Class Y shares of the
First American Fund.
(2) Effective in 2001, the Fund's fiscal year end was changed from October 31
to September 30. All ratios for the period have been annualized, except
total return and portfolio turnover.
(3) Per share data calculated using average shares outstanding method.
(4) Class of shares has been offered since March 1, 1999. All ratios for the
period have been annualized, except total return and portfolio turnover.
The accompanying notes are an integral part of the financial statements.
(5) Class of shares has been offered since September 24, 2001. All ratios for
the period have been annualized, except total return and portfolio
turnover.
(6) Class of shares has been offered since December 11, 2000. All ratios for
the period have been annualized, except total return and portfolio
turnover.
(7) The financial highlights for the Small Cap Select Fund as set forth herein
include the historical financial highlights of the Firstar Small Cap Core
Equity Fund. The assets of the Firstar Fund were acquired by the First
American Small Cap Select Fund on September 24, 2001. In connection with
such acquisition, (I) Class A shares of the Firstar Small Cap Core Fund
were exchanged for Class A shares of the First American Fund, (ii) Firstar
Class B shares were exchanged for Class B shares of the First American
Fund, (iii) Firstar Class Y shares were exchanged for Class S shares of the
First American Fund, and (iv) Firstar Institutional Class shares were
exchanged for Class Y shares of the First American Fund.
(8) Effective in 2000, the Fund's fiscal year end was changed from November 30
to October 31. All ratios for the period have been annualized, except total
return and portfolio turnover.
(9) Distributions from return of capital for the Small Cap Select Fund were
less that $0.01 per share for the fiscal year ended September 30, 2002.
(10) Total return does not reflect sales charges. Total return would have been
lower had certain expenses not been waived.
(11) For the six months ended March 31, 2003 (unaudited). All ratios for the
period have been annualized, except total return and portfolio turnover.
33
<Page>
<Table>
<Caption>
REALIZED AND
NET ASSET UNREALIZED DIVIDENDS DISTRIBUTIONS
VALUE NET GAINS OR FROM NET DISTRIBUTIONS FROM
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT FROM RETURN OF
OF PERIOD INCOME (LOSS) INVESTMENTS INCOME CAPITAL GAINS CAPITAL (5)
- -------------------------------------------------------------------------------------------------------------------------------
SMALL CAP VALUE FUND
Class A
2003(1)(7) $ 11.26 $ -- $ (0.27) $ -- $ -- $ --
2002(1) 13.40 (0.02) (0.13) -- (1.99) --
2001(1) 17.09 0.02 (0.97) (0.05) (2.69) --
2000 13.94 (0.01) 3.23 -- (0.07) --
1999 13.58 0.01 1.47 (0.01) (1.11) --
1998(2) 18.20 0.04 (3.38) (0.01) (1.27) --
Class B
2003(1)(7) $ 10.80 $ (0.04) $ (0.25) $ -- $ -- $ --
2002(1) 13.01 (0.11) (0.11) -- (1.99) --
2001(1) 16.76 (0.09) (0.97) -- (2.69) --
2000 13.77 (0.09) 3.15 -- (0.07) --
1999 13.53 0.02 1.33 -- (1.11) --
1998(2) 18.23 0.01 (3.43) (0.01) (1.27) --
Class C
2003(1)(7) $ 10.91 $ (0.04) $ (0.25) $ -- $ -- $ --
2002(1) 13.13 (0.11) (0.12) -- (1.99) --
2001(1) 16.88 (0.10) (0.95) (0.01) (2.69) --
2000 13.87 (0.06) 3.14 -- (0.07) --
1999(3) 13.48 0.01 0.38 -- -- --
Class S
2003(1)(7) $ 11.26 $ 0.01 $ (0.28) $ -- $ -- $ --
2002(1) 13.40 (0.01) (0.14) -- (1.99) --
2001(1)(4) 12.84 -- 0.56 -- -- --
Class Y
2003(1)(7) $ 11.38 $ 0.02 $ (0.28) $ (0.01) $ -- $ --
2002(1) 13.48 0.02 (0.12) (0.01) (1.99) --
2001(1) 17.19 0.06 (1.00) (0.08) (2.69) --
2000 13.98 0.02 3.26 -- (0.07) --
1999 13.60 0.01 1.50 (0.02) (1.11) --
1998(2) 18.23 0.06 (3.38) (0.04) (1.27) --
</Table>
The accompanying notes are an integral part of the financial statements.
34
<Page>
<Table>
<Caption>
RATIO OF NET
NET ASSET RATIO OF INVESTMENT
VALUE NET ASSETS EXPENSES TO INCOME (LOSS)
END OF TOTAL END OF AVERAGE TO AVERAGE
PERIOD RETURN (6) PERIOD (000) NET ASSETS NET ASSETS
- --------------------------------------------------------------------------------------------------------------------------
SMALL CAP VALUE FUND
Class A
2003(1)(7) $ 10.99 (2.38)% $ 25,577 1.23% 0.05%
2002(1) 11.26 (2.19) 27,205 1.23 (0.12)
2001(1) 13.40 (6.36) 34,292 1.15 0.11
2000 17.09 23.19 35,858 1.14 (0.13)
1999 13.94 11.12 11,567 1.14 (0.17)
1998(2) 13.58 (19.48) 13,551 1.13 0.15
Class B
2003(1)(7) $ 10.51 (2.68)% $ 10,884 1.98% (0.70)%
2002(1) 10.80 (2.91) 12,008 1.98 (0.90)
2001(1) 13.01 (7.24) 12,392 1.90 (0.64)
2000 16.76 22.31 13,646 1.88 (0.89)
1999 13.77 10.16 1,005 1.89 (0.93)
1998(2) 13.53 (19.91) 618 1.88 (0.53)
Class C
2003(1)(7) $ 10.62 (2.75)% $ 3,685 1.98% (0.72)%
2002(1) 10.91 (2.96) 4,873 1.98 (0.87)
2001(1) 13.13 (7.08) 4,547 1.90 (0.65)
2000 16.88 22.29 1,099 1.88 (0.84)
1999(3) 13.87 2.89 116 1.89 (1.04)
Class S
2003(1)(7) $ 10.99 (2.37)% $ 947 1.23% 0.13%
2002(1) 11.26 (2.19) 424 1.24 (0.11)
2001(1)(4) 13.40 4.36 -- 0.00 0.00
Class Y
2003(1)(7) $ 11.11 (2.29)% $ 349,758 0.98% 0.30%
2002(1) 11.38 (1.83) 368,092 0.98 0.13
2001(1) 13.48 (6.25) 434,097 0.90 0.37
2000 17.19 23.56 431,906 0.89 0.11
1999 13.98 11.36 319,752 0.89 0.08
1998(2) 13.60 (19.31) 367,035 0.88 0.40
<Caption>
RATIO OF RATIO OF NET
EXPENSES TO INVESTMENT
AVERAGE (LOSS) TO PORTFOLIO
NET ASSETS AVERAGE NET ASSETS TURNOVER
(EXCLUDING WAIVERS) (EXCLUDING WAIVERS) RATE
- --------------------------------------------------------------------------------------------
SMALL CAP VALUE FUND
Class A
2003(1)(7) 1.26% 0.02% 20%
2002(1) 1.26 (0.15) 37
2001(1) 1.15 0.11 53
2000 1.16 (0.15) 73
1999 1.14 (0.17) 44
1998(2) 1.13 0.15 21
Class B
2003(1)(7) 2.01% (0.73)% 20%
2002(1) 2.01 (0.90) 37
2001(1) 1.90 (0.64) 53
2000 1.90 (0.91) 73
1999 1.89 (0.93) 44
1998(2) 1.88 (0.53) 21
Class C
2003(1)(7) 2.01% (0.75)% 20%
2002(1) 2.01 (0.90) 37
2001(1) 1.90 (0.65) 53
2000 1.91 (0.87) 73
1999(3) 1.89 (1.04) 44
Class S
2003(1)(7) 1.26% 0.10% 20%
2002(1) 1.27 (0.14) 37
2001(1)(4) 0.00 0.00 53
Class Y
2003(1)(7) 1.01% 0.27% 20%
2002(1) 1.01 0.10 37
2001(1) 0.90 0.37 53
2000 0.91 0.09 73
1999 0.89 0.08 44
1998(2) 0.88 0.40 21
</Table>
(1) Per share data calculated using average shares outstanding method.
(2) Effective in 1998, the Fund's fiscal year end was changed from November 30
to September 30. All ratios for the period have been annualized, except
total return and portfolio turnover.
(3) Class of shares has been offered since February 1, 1999. All ratios for the
period have been annualized, except total return and portfolio turnover.
(4) Class of shares has been offered since September 24, 2001. All ratios for
the period have been annualized, except total return and portfolio
turnover.
(5) Distributions from return of capital for the Small Cap Value Fund were less
than $0.01 per share for the fiscal year ended September 30, 2002.
(6) Total return does not reflect sales charges. Total return would have been
lower had certain expenses not been waived.
(7) For the six months ended March 31, 2003 (unaudited). All ratios for the
period have been annualized, except total return and portfolio turnover.
The accompanying notes are an integral part of the financial statements.
35
<Page>
SCHEDULE OF INVESTMENTS March 31, 2003 (unaudited)
<Table>
<Caption>
MID CAP GROWTH OPPORTUNITIES
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------------
COMMON STOCKS - 93.4%
CONSUMER DISCRETIONARY - 13.8%
Abercrombie & Fitch*(A) 308,980 $ 9,279
Advanced Auto Parts*(A) 121,920 5,639
Autozone*(A) 25,600 1,759
Belo, Cl A 212,730 4,310
Best Buy*(A) 401,750 10,835
Brinker International*(A) 224,440 6,845
CDW Computer Centers*(A) 728,755 29,733
Chico's FAS*(A) 490,630 9,813
Claire's Stores 352,790 8,329
Coach*(A) 196,800 7,543
Dollar Tree Stores 198,060 3,941
Fairmont Hotels & Resorts 247,350 5,565
Knight-Ridder(A) 88,800 5,195
Mandalay Resort Group*(A) 106,710 2,940
Regal Entertainment Group, Cl A 292,200 5,245
Ross Stores 134,350 4,857
Royal Caribbean Cruises(A) 201,560 3,029
Tiffany & Company(A) 143,350 3,584
Washington Post, Cl B 25,200 17,170
Westwood One* 398,885 12,461
---------------
158,072
---------------
CONSUMER STAPLES - 2.1%
Bunge Limited(A) 461,360 11,608
Dial 237,435 4,606
Pepsi Bottling 245,410 4,400
Smithfield Foods*(A) 184,700 3,273
---------------
23,887
---------------
ENERGY - 10.2%
Apache 109,778 6,778
Cal Dive International*(A) 624,925 11,255
ENSCO International 253,600 6,469
Equitable Resources 352,340 13,216
FMC Technologies* 492,990 9,465
Grant Prideco*(A) 960,012 11,578
Nabors Industries*(A) 246,255 9,818
Noble Energy 77,000 2,640
Patterson-UTI Energy*(A) 137,290 4,443
Pioneer Natural Resources*(A) 202,830 5,091
Valero Energy(A) 123,005 5,090
Varco International* 263,220 4,820
Weatherford International*(A) 227,685 8,600
Western Gas Resources(A) 391,895 12,756
Wisconsin Energy 191,745 4,870
---------------
116,889
---------------
FINANCIALS - 15.3%
Arthur J. Gallagher 603,325 14,812
Banknorth Group 389,135 8,487
City National 52,050 2,287
Compass Bancshares 290,550 9,086
Dime Bancorp* 226,300 34
Edwards A.G.(A) 150,550 3,899
Everest Re Group 478,995 27,403
GreenPoint Financial(A) 217,450 9,744
Investors Financial Services(A) 1,172,805 28,558
LaBranche(A) 199,290 3,663
Legg Mason(A) 101,650 4,954
M & T Bank(A) 98,550 $ 7,744
MGIC Investment(A) 145,570 5,716
Neuberger Berman(A) 213,115 6,016
New York Community Bancorp(A) 500,350 14,910
Old Republic International 295,700 7,910
Protective Life 108,350 3,093
Radian Group(A) 100,775 3,364
TCF Financial 165,350 6,621
W.R. Berkley 110,800 4,748
Westamerica Bancorporation(A) 44,325 1,750
---------------
174,799
---------------
HEALTH CARE - 14.2%
AdvancePCS*(A) 70,890 2,009
Barr Laboratories*(A) 211,275 12,043
Caremark Rx*(A) 156,250 2,836
Celgene*(A) 310,745 8,104
Cephalon*(A) 207,550 8,290
Covance*(A) 103,900 2,402
Cytyc*(A) 239,200 3,122
Express Scripts*(A) 632,000 35,190
Forest Laboratories, Cl A*(A) 52,000 2,806
Gilead Sciences*(A) 597,850 25,104
Henry Schein* 133,680 6,029
IDEC Pharmaceuticals*(A) 90,350 3,110
Mylan Laboratories 237,675 6,833
Omnicare(A) 626,245 17,040
Teva Pharmaceutical Industries, ADR(A) 155,450 6,475
Triad Hospitals*(A) 383,895 10,327
Universal Health Services*(A) 270,295 11,020
---------------
162,740
---------------
INDUSTRIALS - 14.5%
AGCO* 272,350 4,385
ARAMARK, Cl B*(A) 1,010,330 23,137
Bisys Group*(A) 697,290 11,380
Career Education*(A) 159,336 7,795
ChoicePoint*(A) 228,886 7,759
DST Systems*(A) 181,100 4,926
Dun & Bradstreet*(A) 527,100 20,162
Fastenal(A) 317,525 8,951
Iron Mountain*(A) 761,420 29,124
L-3 Communications Holdings*(A) 125,420 5,038
Manpower(A) 117,800 3,520
Republic Services* 1,453,845 28,844
SPX*(A) 135,100 4,615
Werner Enterprises 309,615 5,963
---------------
165,599
---------------
INFORMATION TECHNOLOGY - 17.7%
Accenture*(A) 739,700 11,465
Acxiom*(A) 317,770 5,348
Affiliated Computer Services, Cl A*(A) 396,130 17,533
BMC Software*(A) 295,500 4,459
Business Objects*(A) 659,700 10,786
Cabot Microelectronics*(A) 59,150 2,477
Cymer*(A) 73,115 1,729
Diebold 163,550 5,551
DoubleClick* 370,975 2,882
FEI* 163,400 2,608
Fiserv*(A) 1,069,190 33,658
</Table>
The accompanying notes are an integral part of the financial statements.
36
<Page>
<Table>
<Caption>
DESCRIPTION SHARES/PAR (000) VALUE (000)
- --------------------------------------------------------------------------------------
Integrated Circuit Systems*(A) 264,065 $ 5,730
Integrated Device Technology* 433,145 3,439
International Rectifier*(A) 155,100 3,051
Intersil, Cl A*(A) 427,600 6,653
Maxim Integrated Products 84,650 3,058
Microchip Technology(A) 452,682 9,008
Network Associates*(A) 264,950 3,659
PeopleSoft*(A) 170,950 2,616
Polycom* 1,973,310 15,944
SunGard Data Systems* 272,050 5,795
Synopsys*(A) 211,600 9,006
Tech Data*(A) 579,880 13,882
USA Interactive*(A) 300,170 8,042
Vishay Intertechnology*(A) 1,348,920 13,732
---------------
202,111
---------------
MATERIALS - 1.6%
Airgas* 203,035 3,758
Arch Coal(A) 559,480 10,636
Pactiv* 198,430 4,028
---------------
18,422
---------------
TELECOMMUNICATION SERVICES - 0.6%
CenturyTel(A) 266,950 7,368
---------------
UTILITIES - 3.4%
Energy East(A) 245,430 4,369
Kinder Morgan(A) 72,066 3,243
Kinder Morgan Fractional Shares*(B) 101,746 --
Kinder Morgan Management* 412,967 13,360
Puget Energy 207,350 4,419
Questar(A) 440,385 13,022
---------------
38,413
---------------
TOTAL COMMON STOCKS 1,068,300
---------------
RELATED PARTY MONEY MARKET FUND - 6.1%
First American Prime Obligations Fund, Cl Y(C) 69,609,549 69,610
---------------
TOTAL RELATED PARTY MONEY MARKET FUND 69,610
---------------
INVESTMENTS PURCHASED WITH CASH
PROCEEDS FROM SECURITIES LENDING - 46.4%
COMMERCIAL PAPER - 6.6%
CS First Boston
1.638%, 12/01/03 $ 9,320 9,320
Danske Bank
1.508%, 12/22/03 9,320 9,320
Goldman Sachs
1.518%, 08/28/03 12,117 12,117
Morgan Stanley
1.518%, 06/17/03 4,660 4,660
1.518%, 07/08/03 3,355 3,355
1.518%, 09/22/03 4,660 4,660
Orchard Park
1.475%, 01/06/04 9,320 9,320
UBS Financial
1.390%, 04/01/03 23,297 23,297
---------------
TOTAL COMMERCIAL PAPER 76,049
---------------
CORPORATE OBLIGATIONS - 5.1%
CS First Boston
1.760%, 04/11/03 9,320 9,320
Deutsche Bank
1.470%, 03/22/03 $ 4,661 $ 4,661
1.580%, 12/31/03 3,728 3,728
General Electric Capital Corporation
1.355%, 07/09/07 4,660 4,660
Merrill Lynch
1.538%, 05/05/03 7,923 7,923
Monet Trust
1.360%, 12/28/03 9,320 9,320
SMM Trust 2002-M
1.329%, 09/23/03 9,320 9,320
URI Trust
1.3288%, 09/18/03 9,320 9,320
---------------
TOTAL CORPORATE OBLIGATIONS 58,252
---------------
MONEY MARKET FUNDS - 4.3%
AIM Liquid Assets Portfolio 15,844,361 15,845
Dreyfus Cash Manage Plus Fund 932,021 932
Evergreen Institutional Money Market Fund 3,262,074 3,262
HSBC Investor Money Market Fund - Cl I 2,796,064 2,796
Merrill Lynch Premier Institutional Fund 18,051,869 18,052
Merrimac Cash Series Fund 2,796,064 2,796
One Group Institutional Prime Money
Market Fund 5,592,127 5,592
Reserve Primary Fund 466,011 466
---------------
TOTAL MONEY MARKET FUNDS 49,741
---------------
OTHER SHORT-TERM INVESTMENTS - 4.2%
Allied Irish Bank
1.330%, 06/02/03 4,660 4,660
Allied Irish Bank
1.340%, 05/09/03 9,320 9,320
Commonwealth Life
1.678%, 04/01/03 4,706 4,706
General Electric Capital Assurance
1.370%, 12/19/03 1,864 1,864
Premium Asset Trust 02-7
1.381%, 08/23/03 5,937 5,937
Security Life Denver
1.490%, 03/15/04 9,320 9,320
Security Life Denver
1.381%, 01/13/04 12,116 12,116
---------------
TOTAL OTHER SHORT-TERM INVESTMENTS 47,923
---------------
REPURCHASE AGREEMENTS - 26.2%
Bear Stearns
1.420%, 04/10/03 18,641 18,641
CS First Boston
1.370%, 04/01/03 18,641 18,641
1.380%, 04/01/03 2,889 2,889
1.380%, 04/01/03 23,301 23,301
Goldman Sachs
1.360%, 06/10/03 4,660 4,660
1.400%, 06/11/03 4,660 4,660
1.420%, 04/07/03 9,320 9,320
1.520%, 04/01/03 13,980 13,980
Greenwich Capital Markets
1.430%, 04/01/03 27,961 27,961
Lehman Brothers
1.560%, 04/01/03 9,320 9,320
1.640%, 04/01/03 6,990 6,990
1.640%, 04/01/03 30,291 30,291
Merrill Lynch
</Table>
37
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------------
1.560%, 04/01/03 $ 11,650 $ 11,650
1.360%, 04/01/03 27,961 27,961
1.500%, 04/01/03 13,980 13,980
1.560%, 04/01/03 18,640 18,640
Morgan Stanley
1.470%, 04/01/03 13,980 13,980
1.510%, 04/01/03 28,986 28,986
Salomon Smith Barney
1.540%, 04/01/03 13,980 13,980
---------------
TOTAL REPURCHASE AGREEMENTS 299,831
---------------
TOTAL INVESTMENTS PURCHASED WITH CASH PROCEEDS FROM
SECURITIES LENDING (Cost $531,796) 531,796
---------------
TOTAL INVESTMENTS - 145.9%
(Cost $1,678,027) 1,669,706
---------------
OTHER ASSETS AND LIABILITIES, NET - (45.9)% (525,715)
---------------
TOTAL NET ASSETS - 100.0% $ 1,143,991
---------------
</Table>
* Non-income producing security
(A) This security or a portion of this security is out on loan at March 31,
2003. Total loaned securities had a value of $507,077,254 at March 31,
2003. See note 2 in Notes to Financial Statements for additional
information.
(B) Security is valued at fair value under guidelines established and approved
by the board of directors. Total fair valued securities had a value of $0,
which represents 0.0% of total net assets at March 31, 2003. See note 2 in
Notes to Financial Statements for additional information.
(C) This money market fund is advised by U.S. Bancorp Asset Management, Inc.,
which also serves as advisor for this Fund. See note 3 in Notes to
Financial Statements for additional information.
ADR - American Depositary Receipt
Cl - Class
MID CAP VALUE FUND
<Table>
<Caption>
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------------
COMMON STOCKS - 98.4%
CONSUMER DISCRETIONARY - 13.0%
Autozone*(A) 29,800 $ 2,048
Black & Decker 50,400 1,757
D.R. Horton(A) 38,700 743
Eastman Kodak(A) 38,000 1,125
Federated Department Stores*(A) 100,600 2,819
Fortune Brands 69,900 2,997
Hilton Hotels 121,900 1,415
J.C. Penney(A) 113,100 2,221
Johnson Controls(A) 34,400 2,492
Knight-Ridder(A) 33,900 1,983
Lear*(A) 80,400 2,842
Lennar(A) 31,400 1,681
Liz Claiborne 93,400 2,888
Mandalay Resort Group*(A) 25,800 711
Mattel(A) 65,900 1,483
New York Times, Cl A(A) 33,000 1,424
Newell Rubbermaid(A) 113,700 3,223
Office Depot*(A) 141,200 1,670
Yum! Brands* 58,900 1,433
---------------
36,955
---------------
CONSUMER STAPLES - 3.9%
Alberto-Culver, Cl B(A) 27,800 1,370
Bunge Limited 69,800 1,756
Clorox(A) 65,900 3,043
Dean Foods*(A) 33,600 1,442
Hershey Foods 32,400 2,030
UST 50,100 1,383
---------------
11,024
---------------
ENERGY - 9.4%
Apache 57,173 3,530
Burlington Resources(A) 43,100 2,056
Devon Energy(A) 57,300 2,763
Enbridge 21,514 --
ENSCO International 110,300 2,814
Equitable Resources 86,600 3,248
Halliburton(A) 103,600 2,148
Murphy Oil 33,600 1,484
Noble Energy(A) 41,300 1,416
Ocean Energy 71,400 1,428
Valero Energy(A) 70,700 2,926
Wisconsin Energy 108,200 2,748
---------------
26,561
---------------
FINANCIALS - 29.8%
Ambac Financial Group(A) 31,500 1,591
AmSouth Bancorp 136,900 2,722
Aon(A) 75,400 1,559
Bear Stearns(A) 45,300 2,972
Boston Properties 94,200 3,570
Charter One Financial 118,125 3,267
Cincinnati Financial 58,700 2,059
Compass Bancshares 102,000 3,189
Countrywide Credit Industries(A) 50,700 2,915
Cullen/Frost Bankers 53,000 1,610
Developers Diversified Realty 88,100 2,128
Essex Property Trust (REIT) 54,500 2,848
Everest Re Group 26,400 1,510
</Table>
The accompanying notes are an integral part of the financial statements.
38
<Page>
<Table>
<Caption>
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------------
First Tennessee National(A) 63,800 $ 2,533
General Growth Properties (REIT)(A) 79,700 4,300
Golden West Financial 36,000 2,589
Hibernia, Cl A 112,600 1,910
Janus Capital Group 98,100 1,117
John Hancock Financial Services 73,300 2,036
Lincoln National 43,200 1,210
M & T Bank(A) 17,900 1,407
Marshall & Ilsley 136,900 3,499
National Commerce Financial 121,500 2,879
Old Republic International 55,400 1,482
PMI Group 79,100 2,021
Prologis 130,400 3,302
Protective Life 78,900 2,253
SAFECO(A) 99,600 3,483
Simon Property Group(A) 91,600 3,282
SouthTrust 171,300 4,373
Sovereign Bancorp(A) 204,600 2,834
TCF Financial 34,000 1,361
Torchmark 45,400 1,625
W.R. Berkley 41,300 1,770
XL Capital Limited, Cl A 18,200 1,288
---------------
84,494
---------------
HEALTH CARE - 3.3%
Aetna 48,500 2,391
Becton, Dickinson & Company 75,800 2,611
Express Scripts*(A) 38,500 2,144
McKesson HBOC 87,200 2,174
---------------
9,320
---------------
INDUSTRIALS - 11.5%
AGCO*(A) 78,900 1,270
American Standard*(A) 32,700 2,249
ARAMARK, Cl B* 107,000 2,450
Cablevision Systems*(A) 100,700 1,912
CSX(A) 86,400 2,464
Delta Air Lines(A) 48,600 432
Dover(A) 52,000 1,259
Eaton(A) 48,800 3,414
ITT Industries 62,500 3,338
Northrop Grumman 13,900 1,193
Parker Hannifin(A) 46,200 1,790
Pitney Bowes(A) 54,500 1,740
Republic Services* 108,000 2,143
Rockwell Collins 91,100 1,673
SPX*(A) 17,200 587
Swift Transportation*(A) 89,200 1,427
Timken(A) 80,000 1,250
Viad 94,900 2,035
---------------
32,626
---------------
INFORMATION TECHNOLOGY - 9.0%
3Com*(A) 331,000 1,632
Agere Systems* 655,100 1,048
Apple Computer*(A) 92,100 1,302
Avnet*(A) 168,600 1,767
BMC Software*(A) 71,900 1,085
Ciena*(A) 151,200 661
Computer Associates International(A) 185,700 2,537
Computer Sciences*(A) 91,900 2,991
<Caption>
DESCRIPTION SHARES/PAR (000) VALUE (000)
- --------------------------------------------------------------------------------------
Corning*(A) 163,900 $ 957
Diebold 37,700 1,279
Fairchild Semiconductor International, Cl A*(A) 94,500 988
Fisher Scientific International*(A) 61,300 1,714
Flextronics International* 188,300 1,642
JDS Uniphase* 423,400 1,207
Nortel Networks*(A) 483,100 1,005
PeopleSoft*(A) 59,000 903
SunGard Data Systems* 39,700 846
Tellabs*(A) 95,300 552
Xerox*(A) 159,900 1,391
---------------
25,507
---------------
MATERIALS - 7.4%
Abitibi-Consolidated 298,900 2,077
Air Products and Chemicals 85,300 3,534
AptarGroup 46,700 1,511
Bemis 28,400 1,194
Cabot(A) 72,400 1,727
Georgia-Pacific(A) 62,700 871
Lyondell Chemical 150,100 2,094
Nucor(A) 50,500 1,928
Phelps Dodge*(A) 47,000 1,527
Rohm & Haas 89,300 2,659
Temple-Inland(A) 49,700 1,859
---------------
20,981
---------------
TELECOMMUNICATION SERVICES - 1.0%
CenturyTel(A) 83,900 2,316
Qwest Communications International* 202,800 708
---------------
3,024
---------------
UTILITIES - 10.1%
Consolidated Edison 33,900 1,304
Constellation Energy 105,400 2,923
Edison International*(A) 186,900 2,559
Entergy 76,400 3,679
FirstEnergy(A) 104,600 3,295
FPL Group(A) 39,700 2,339
KeySpan 62,200 2,006
Kinder Morgan Fractional Shares*(B) 40,837 --
Kinder Morgan Management* 60,642 1,962
Pinnacle West 36,000 1,197
PPL 92,100 3,280
Public Service Enterprises(A) 101,300 3,717
Reliant Resources* 96,100 342
---------------
28,603
---------------
TOTAL COMMON STOCKS 279,095
---------------
RELATED PARTY MONEY MARKET FUND - 1.2%
First American Prime Obligations Fund, Cl Y(C) 3,266,875 3,267
---------------
TOTAL RELATED PARTY MONEY MARKET FUND 3,267
---------------
INVESTMENTS PURCHASED WITH CASH
PROCEEDS FROM SECURITIES LENDING - 36.8%
COMMERCIAL PAPER - 5.3%
CS First Boston
1.638%, 12/01/03 $ 1,831 1,831
Danske Bank
1.508%, 12/22/03 1,832 1,832
Goldman Sachs
1.518%, 08/28/03 2,381 2,381
</Table>
39
<Page>
<Table>
<Caption>
DESCRIPTION SHARES/PAR (000) VALUE (000)
- --------------------------------------------------------------------------------------
Morgan Stanley
1.518%, 06/17/03 $ 916 $ 916
1.518%, 07/08/03 659 659
1.5175%, 09/22/03 916 916
Orchard Park
1.475%, 01/06/04 1,832 1,832
UBS Financial
1.390%, 04/01/03 4,578 4,578
---------------
TOTAL COMMERCIAL PAPER 14,945
---------------
CORPORATE OBLIGATIONS - 4.0%
CS First Boston
1.760%, 04/11/03 1,831 1,831
Deutsche Bank
1.470%, 03/22/03 916 916
1.580%, 12/31/03 733 733
General Electric Capital Corporation
1.355%, 07/09/07 916 916
Merrill Lynch
1.538%, 05/05/03 1,557 1,557
Monet Trust
1.360%, 12/28/03 1,831 1,831
SMM Trust 2002-M
1.320%, 09/23/03 1,831 1,831
URI Trust
1.329%, 09/18/03 1,831 1,831
---------------
TOTAL CORPORATE OBLIGATIONS 11,446
---------------
MONEY MARKET FUNDS - 3.4%
AIM Liquid Assets Portfolio 3,113,597 3,114
Dreyfus Cash Manage Plus Fund 183,153 183
Evergreen Institutional Money Market Fund 641,035 641
HSBC Investor Money Market Fund - Class I 549,458 549
Merrill Lynch Premier Institutional Fund 3,547,398 3,547
Merrimac Cash Series Fund 549,458 550
One Group Institutional Prime
Money Market Fund 1,098,917 1,099
Reserve Primary Fund 91,576 92
---------------
TOTAL MONEY MARKET FUNDS 9,775
---------------
OTHER SHORT-TERM INVESTMENTS - 3.3%
Allied Irish Bank
1.330%, 06/02/03 916 916
1.340%, 05/09/03 1,832 1,832
Commonwealth Life
1.678%, 04/01/03 925 925
General Electric Capital Assurance
1.370%, 12/19/03 366 366
Premium Asset Trust 02-7
1.381%, 08/23/03 1,167 1,167
Security Life Denver
1.490%, 03/15/04 1,831 1,831
Security Life Denver
1.381%, 01/13/04 2,381 2,381
---------------
TOTAL OTHER SHORT-TERM INVESTMENTS 9,418
---------------
REPURCHASE AGREEMENTS - 20.8%
Bear Stearns
1.420%, 04/10/03 3,663 3,663
CS First Boston
1.370%, 04/01/03 3,663 3,663
1.380%, 04/01/03 568 568
1.380%, 04/01/03 4,579 4,579
<Caption>
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------------
Goldman Sachs
1.360%, 06/10/03 $ 916 $ 916
1.400%, 06/11/03 916 916
1.420%, 04/07/03 1,831 1,831
1.520%, 04/01/03 2,747 2,747
Greenwich Capital Markets
1.430%, 04/01/03 5,495 5,495
Lehman Brothers
1.560%, 04/01/03 1,832 1,832
1.640%, 04/01/03 1,374 1,374
1.640%, 04/01/03 5,952 5,952
Merrill Lynch
1.560%, 04/01/03 2,289 2,289
1.360%, 04/01/03 5,495 5,495
1.500%, 04/01/03 2,747 2,747
1.560%, 04/01/03 3,663 3,663
Morgan Stanley
1.470%, 04/01/03 2,747 2,747
1.510%, 04/01/03 5,696 5,696
Salomon Smith Barney
1.540%, 04/01/03 2,747 2,747
---------------
TOTAL REPURCHASE AGREEMENTS 58,920
---------------
TOTAL INVESTMENTS PURCHASED WITH CASH PROCEEDS FROM
SECURITIES LENDING (Cost $104,504) $ 104,504
---------------
TOTAL INVESTMENTS - 136.4%
(Cost $391,846) 386,866
---------------
OTHER ASSETS AND LIABILITIES, NET - (36.4)% (103,374)
---------------
TOTAL NET ASSETS - 100.0% $ 283,492
---------------
</Table>
* Non-income producing security
(A) This security or a portion of this security is out on loan at March 31,
2003. Total loaned securities had a value of $99,099,329 at March 31, 2003.
See note 2 in Notes to Financial Statements for additional information.
(B) Security is valued at fair value under guidelines established and approved
by the board of directors. Total fair valued securities had a value of $0,
which represents 0.0% of total net assets at March 31, 2003. See note 2 in
Notes to Financial Statements for additional information.
(C) This money market fund is advised by U.S. Bancorp Asset Management, Inc.,
which also serves as advisor for this Fund. See note 3 in Notes to
Financial Statements for additional information.
Cl - Class
REIT - Real Estate Investment Trust
The accompanying notes are an integral part of the financial statements.
40
<Page>
STATEMENTS OF ASSETS AND LIABILITIES March 31, 2003 (unaudited), in thousands,
except per share data
<Table>
<Caption>
MID CAP GROWTH MID CAP
OPPORTUNITIES FUND VALUE FUND
- -------------------------------------------------------------------------------------------------------------
ASSETS:
Investments in securities, at value*+ $ 1,669,706 $ 386,866
Cash 6,592 9
Dividends and interest receivable 315 450
Capital shares sold 912 386
Receivable for investment securities sold 9,164 2,959
Other receivables 7 --
Prepaid expenses and other assets 32 17
- -------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 1,686,728 390,687
=============================================================================================================
LIABILITIES:
Capital shares redeemed 1,549 465
Payable upon return of securities loaned 531,796 104,504
Payable for investment securities purchased 8,443 1,988
Payable for advisory, co-administration, and custodian fees 904 226
Distribution and shareholder servicing fees 45 12
- -------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 542,737 107,195
=============================================================================================================
NET ASSETS $ 1,143,991 $ 283,492
=============================================================================================================
COMPOSITION OF NET ASSETS:
Portfolio capital $ 1,229,592 $ 407,703
Accumulated net investment income (loss) (786) 1,072
Accumulated net realized loss (76,494) (120,303)
Net unrealized depreciation of investments (8,321) (4,980)
- -------------------------------------------------------------------------------------------------------------
NET ASSETS $ 1,143,991 $ 283,492
=============================================================================================================
*Investments in securities, at cost $ 1,678,027 $ 391,846
+Including securities loaned $ 507,077 $ 99,099
CLASS A:
Net assets $ 131,107 $ 13,513
Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 4,747 1,005
Net asset value and redemption price per share $ 27.62 $ 13.45
Maximum offering price per share(1) $ 29.23 $ 14.23
CLASS B:
Net assets $ 7,125 $ 9,249
Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 268 708
Net asset value and offering price per share(2) $ 26.60 $ 13.06
CLASS C:
Net assets $ 11,393 $ 2,822
Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 416 212
Net asset value per share(2) $ 27.37 $ 13.31
Maximum offering price per share(3) $ 27.65 $ 13.44
CLASS S:
Net assets $ 8,693 $ 510
Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 315 38
Net asset value, offering price, and redemption price per share $ 27.60 $ 13.45
CLASS Y:
Net assets $ 985,673 $ 257,398
Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 34,595 19,080
Net asset value, offering price, and redemption price per share $ 28.49 $ 13.49
</Table>
(1) The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 5.50%
(2) Class B and C have a contingent deferred sales charge. For a description of
this sales charge, see notes 1 and 3 in Notes to Financial Statements.
(3) The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 1.00%
The accompanying notes are an integral part of the financial statements.
41
<Page>
STATEMENTS OF OPERATIONS For the six months ended March 31, 2003 (unaudited), in
thousands
<Table>
<Caption>
MID CAP GROWTH MID CAP
OPPORTUNITIES FUND VALUE FUND
- ---------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest $ 251 $ 55
Dividends 3,369 3,215
Less: Foreign taxes withheld (8) (5)
Securities lending 118 43
Other income 1 1,015
- ---------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 3,731 4,323
=====================================================================================================================
EXPENSES:
Investment advisory fees 3,196 995
Co-administration fees and expenses (including per account transfer agency fees) 1,272 403
Custodian fees 46 14
Directors' fees 6 2
Registration fees 5 17
Professional fees 11 4
Printing 17 5
Other 9 4
Distribution and shareholder servicing fees - Class A 105 17
Distribution and shareholder servicing fees - Class B 24 50
Distribution and shareholder servicing fees - Class C 35 16
Shareholder servicing fees - Class S 11 1
- ---------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES 4,737 1,528
=====================================================================================================================
Less: Waiver of expenses (224) (94)
- ---------------------------------------------------------------------------------------------------------------------
TOTAL NET EXPENSES 4,513 1,434
=====================================================================================================================
INVESTMENT INCOME (LOSS) - NET (782) 2,889
=====================================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS - NET:
Net realized loss on investments (27,358) (17,413)
Net change in unrealized appreciation or depreciation of investments 36,363 20,134
- ---------------------------------------------------------------------------------------------------------------------
NET GAIN ON INVESTMENTS 9,005 2,721
=====================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 8,223 $ 5,610
=====================================================================================================================
</Table>
The accompanying notes are an integral part of the financial statements.
42
<Page>
STATEMENTS OF CHANGES
IN NET ASSETS in thousands
<Table>
<Caption>
MID CAP GROWTH MID CAP
OPPORTUNITIES FUND VALUE FUND
- ----------------------------------------------------------------------------------------------------------------------------
10/1/02 10/1/01 10/1/02 10/1/01
TO TO TO TO
3/31/03 9/30/02 3/31/03 9/30/02
- ----------------------------------------------------------------------------------------------------------------------------
(UNAUDITED) (UNAUDITED)
OPERATIONS:
Investment income (loss) - net $ (782) $ (707) $ 2,889 $ 3,508
Net realized gain (loss) on investments (27,358) (33,072) (17,413) 3,174
Net change in unrealized appreciation or depreciation of investments 36,363 (19,320) 20,134 (11,284)
- ----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations 8,223 (53,099) 5,610 (4,602)
- ----------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Class A -- -- (76) (100)
Class B -- -- (32) (10)
Class C -- -- (9) (2)
Class S -- -- (3) (1)
Class Y -- -- (1,697) (2,700)
Tax return of capital (2)
Class A -- -- -- (36)
Class B -- -- -- (29)
Class C -- -- -- (9)
Class Y -- -- -- (718)
- ----------------------------------------------------------------------------------------------------------------------------
Total distributions -- -- (1,817) (3,605)
============================================================================================================================
CAPITAL SHARE TRANSACTIONS (1):
Class A:
Proceeds from sales 8,596 15,490 1,545 5,726
Reinvestment of distributions -- -- 74 132
Payments for redemptions (7,389) (17,177) (1,335) (5,952)
Shares issued in connection with the acquisition of Fund net assets 53,440 -- -- --
- ----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class A transactions 54,647 (1,687) 284 (94)
- ----------------------------------------------------------------------------------------------------------------------------
Class B:
Proceeds from sales 833 2,886 306 1,753
Reinvestment of distributions -- -- 31 38
Payments for redemptions (435) (627) (1,624) (2,335)
Shares issued in connection with the acquisition of Fund net assets 2,463 -- -- --
- ----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class B transactions 2,861 2,259 (1,287) (544)
- ----------------------------------------------------------------------------------------------------------------------------
Class C:
Proceeds from sales 8,501 1,470 187 832
Reinvestment of distributions -- -- 9 11
Payments for redemptions (1,446) (137) (606) (829)
Shares issued in connection with the acquisition of Fund net assets 3,422 -- -- --
- ----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class C transactions 10,477 1,333 (410) 14
- ----------------------------------------------------------------------------------------------------------------------------
Class S:
Proceeds from sales 4,798 6,770 529 137
Reinvestment of distributions -- -- 2 --
Payments for redemptions (2,377) (1,699) (171) --
Shares issued in connection with the acquisition of Fund net assets 190 -- -- --
- ----------------------------------------------------------------------------------------------------------------------------
Increase in net assets from Class S transactions 2,611 5,071 360 137
- ----------------------------------------------------------------------------------------------------------------------------
Class Y:
Proceeds from sales 220,264 216,825 35,515 61,416
Reinvestment of distributions -- -- 1,168 2,137
Payments for redemptions (123,110) (99,742) (42,779) (88,193)
Shares issued in connection with the acquisition of Fund net assets 159,226 -- -- --
Shares issued in connection with the acquisition of Common Trust Fund
net assets 245,348 -- -- --
- ----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class Y transactions 501,728 117,083 (6,096) (24,640)
- ----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital share transactions 572,324 124,059 (7,149) (25,127)
- ----------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 580,547 70,960 (3,356) (33,334)
NET ASSETS AT BEGINNING OF PERIOD 563,444 492,484 286,848 320,182
- ----------------------------------------------------------------------------------------------------------------------------
NET ASSETS AT END OF PERIOD $ 1,143,991 $ 563,444 $ 283,492 $ 286,848
- ----------------------------------------------------------------------------------------------------------------------------
ACCUMULATED NET INVESTMENT INCOME (LOSS) AT END OF PERIOD $ (786) $ (4) $ 1,072 $ --
============================================================================================================================
</Table>
(1) See note 4 in Notes to Financial Statements for additional information.
(2) Distributions from tax return of capital for the Mid Cap Value Fund Class S
were less than $1,000 for the fiscal year ended September 30, 2002.
The accompanying notes are an integral part of the financial statements.
43
<Page>
FINANCIAL HIGHLIGHTS For a share outstanding throughout the periods ended
September 30, unless otherwise indicated.
<Table>
<Caption>
REALIZED AND
NET ASSET UNREALIZED DIVIDENDS
VALUE NET GAINS OR FROM NET DISTRIBUTIONS DISTRIBUTIONS
BEGINNING INVESTMENT (LOSSES ON) INVESTMENT FROM FROM RETURN
OF PERIOD INCOME (LOSS) INVESTMENTS INCOME CAPITAL GAINS OF CAPITAL
- ------------------------------------------------------------------------------------------------------------------------
MID CAP GROWTH OPPORTUNITIES (1)
Class A
2003(2)(9) $ 26.45 $ (0.06) $ 1.23 $ -- $ -- $ --
2002 28.33 (0.11) (1.77) -- -- --
2001(2)(3) 54.63 (0.06) (8.40) -- (17.84) --
2000(2) 37.80 (0.18) 17.80 -- (0.79) --
1999(2) 37.59 (0.08) 0.60 -- (0.31) --
1998(2) 44.36 (0.24) (2.07) -- (4.46) --
Class B
2003(2)(9) $ 25.56 $ (0.16) $ 1.20 $ -- $ -- $ --
2002 27.59 (0.18) (1.85) -- -- --
2001(2)(3) 53.97 (0.29) (8.25) -- (17.84) --
2000(2) 37.63 (0.53) 17.66 -- (0.79) --
1999(2)(4) 37.57 (0.23) 0.29 -- -- --
Class C
2003(2)(9) $ 26.29 $ (0.17) $ 1.25 $ -- $ -- $ --
2002 28.33 (0.10) (1.94) -- -- --
2001(2)(5) 27.40 -- 0.93 -- -- --
Class S
2003(1)(2) $ 26.43 $ (0.06) $ 1.23 $ -- $ -- $ --
2002 28.29 (0.07) (1.79) -- -- --
2001(2)(6) 35.75 (0.06) (7.40) -- -- --
Class Y
2003(2)(9) $ 27.25 $ (0.02) $ 1.26 $ -- $ -- $ --
2002 29.11 (0.05) (1.81) -- -- --
2001(2)(3) 55.52 0.02 (8.59) -- (17.84) --
2000(2) 38.32 (0.05) 18.04 -- (0.79) --
1999(2) 38.01 0.02 0.60 -- (0.31) --
1998(2) 44.70 (0.14) (2.09) -- (4.46) --
- ------------------------------------------------------------------------------------------------------------------------
MID CAP VALUE FUND
Class A
2003(2)(9) $ 13.29 $ 0.13 $ 0.11 $ (0.08) $ -- $ --
2002(2) 13.74 0.13 (0.44) (0.10) -- (0.04)
2001(2) 14.62 0.10 (0.88) (0.10) -- --
2000 12.95 0.08 1.67 (0.08) -- --
1999 15.04 0.10 1.26 (0.10) (3.35) --
1998 24.19 0.07 (6.41) (0.07) (2.74) --
Class B
2003(2)(9) $ 12.92 $ 0.07 $ 0.11 $ (0.04) $ -- $ --
2002(2) 13.37 0.01 (0.41) (0.01) -- (0.04)
2001(2) 14.28 (0.01) (0.88) (0.02) -- --
2000 12.67 0.02 1.61 (0.02) -- --
1999 14.80 0.04 1.22 (0.04) (3.35) --
1998 23.96 (0.01) (6.41) -- (2.74) --
Class C
2003(2)(9) $ 13.17 $ 0.07 $ 0.11 $ (0.04) $ -- $ --
2002(2) 13.63 0.01 (0.43) -- -- (0.04)
2001(2) 14.55 (0.01) (0.89) (0.02) -- --
2000 12.92 0.02 1.63 (0.02) -- --
1999(7) 13.69 0.06 (0.78) (0.05) -- --
Class S
2003(2)(9) $ 13.29 $ 0.12 $ 0.12 $ (0.08) $ -- $ --
2002(2) 13.74 0.13 (0.44) (0.10) -- (0.04)
2001(2)(5) 13.31 0.01 0.42 -- -- --
Class Y
2003(2)(9) $ 13.33 $ 0.14 $ 0.11 $ (0.09) $ -- $ --
2002(2) 13.77 0.17 (0.44) (0.13) -- (0.04)
2001(2) 14.68 0.14 (0.92) (0.13) -- --
2000 12.99 0.11 1.69 (0.11) -- --
1999 15.05 0.12 1.30 (0.13) (3.35) --
1998 24.21 0.14 (6.43) (0.13) (2.74) --
- ------------------------------------------------------------------------------------------------------------------------
</Table>
The accompanying notes are an integral part of the financial statements.
44
<Page>
<Table>
<Caption>
RATIO OF
RATIO OF NET EXPENSES TO
NET ASSETS RATIO OF INVESTMENT AVERAGE
VALUE NET ASSETS EXPENSES TO INCOME (LOSS) NET ASSETS
END OF TOTAL END OF AVERAGE TO AVERAGE (EXCLUDING
PERIOD RETURN (8) PERIOD (000) NET ASSETS NET ASSETS WAIVERS)
- -------------------------------------------------------------------------------------------------------------------------
MID CAP GROWTH OPPORTUNITIES (1)
Class A
2003(2)(9) $ 27.62 4.42% $ 131,107 1.20% (0.42%) 1.25%
2002 26.45 (6.64) 75,002 1.20 (0.34) 1.26
2001(2)(3) 28.33 (20.00) 82,043 1.20 (0.19) 1.22
2000(2) 54.63 47.23 108,326 1.20 (0.38) 1.22
1999(2) 37.80 1.31 95,758 1.19 (0.21) 1.21
1998(2) 37.59 (5.91) 136,146 1.13 (0.57) 1.20
Class B
2003(2)(9) $ 26.60 4.07% $ 7,125 1.95% (1.16%) 2.00%
2002 25.56 (7.36) 4,227 1.95 (1.08) 2.01
2001(2)(3) 27.59 (20.60) 2,606 1.94 (0.95) 1.97
2000(2) 53.97 46.13 666 1.95 (1.13) 1.97
1999(2)(4) 37.63 0.16 126 1.95 (0.89) 1.97
Class C
2003(2)(9) $ 27.37 4.11% $ 11,393 1.95% (1.23%) 2.00%
2002 26.29 (7.20) 1,136 1.95 (1.07) 2.01
2001(2)(5) 28.33 3.39 -- -- -- --
Class S
2003(1)(2) $ 27.60 4.43% $ 8,693 1.20% (0.42%) 1.25%
2002 26.43 (6.58) 5,869 1.20 (0.33) 1.26
2001(2)(6) 28.29 (20.87) 1,484 1.19 (0.24) 1.23
Class Y
2003(2)(9) $ 28.49 4.59% $ 985,673 0.95% (0.14%) 1.00%
2002 27.25 (6.39) 477,210 0.95 (0.08) 1.01
2001(2)(3) 29.11 (19.84) 406,349 0.95 0.06 0.97
2000(2) 55.52 47.56 435,613 0.95 (0.13) 0.97
1999(2) 38.32 1.56 359,947 0.94 0.04 0.96
1998(2) 38.01 (5.66) 464,858 0.88 (0.32) 0.95
- -------------------------------------------------------------------------------------------------------------------------
MID CAP VALUE FUND
Class A
2003(2)(9) $ 13.45 1.77% $ 13,513 1.20% 1.84% 1.27%
2002(2) 13.29 (2.41) 13,083 1.20 0.83 1.26
2001(2) 13.74 (5.41) 13,583 1.15 0.67 1.15
2000 14.62 13.58 13,568 1.15 0.53 1.19
1999 12.95 8.03 20,148 1.15 0.63 1.18
1998 15.04 (28.83) 29,261 1.14 0.43 1.14
Class B
2003(2)(9) $ 13.06 1.40% $ 9,249 1.95% 1.10% 2.02%
2002(2) 12.92 (3.07) 10,410 1.95 0.08 2.01
2001(2) 13.37 (6.21) 11,311 1.90 (0.08) 1.90
2000 14.28 12.85 12,495 1.90 (0.22) 1.94
1999 12.67 7.38 19,072 1.90 (0.13) 1.93
1998 14.80 (29.40) 31,276 1.89 (0.31) 1.89
Class C
2003(2)(9) $ 13.31 1.36% $ 2,822 1.95% 1.09% 2.02%
2002(2) 13.17 (3.09) 3,207 1.95 0.08 2.01
2001(2) 13.63 (6.17) 3,312 1.90 (0.04) 1.90
2000 14.55 12.81 1,430 1.90 (0.15) 1.93
1999(7) 12.92 (5.25) 164 1.90 0.29 1.93
Class S
2003(2)(9) $ 13.45 1.78% $ 510 1.20% 1.79% 1.27%
2002(2) 13.29 (2.40) 158 1.20 0.87 1.26
2001(2)(5) 13.74 3.23 44 0.85 5.19 0.85
Class Y
2003(2)(9) $ 13.49 1.86% $ 257,398 0.95% 2.08% 1.02%
2002(2) 13.33 (2.12) 259,990 0.95 1.08 1.01
2001(2) 13.77 (5.37) 291,932 0.90 0.92 0.90
2000 14.68 13.94 275,128 0.90 0.79 0.94
1999 12.99 8.47 304,492 0.90 0.89 0.93
1998 15.05 (28.65) 418,041 0.89 0.69 0.89
- -------------------------------------------------------------------------------------------------------------------------
<Caption>
RATIO OF NET
INVESTMENT
INCOME (LOSS)
TO AVERAGE NET PORTFOLIO
ASSETS (EXCLUDING TURNOVER
WAIVERS) RATE
- -----------------------------------------------------------------
MID CAP GROWTH OPPORTUNITIES (1)
Class A
2003(2)(9) (0.47%) 79%
2002 (0.40) 162
2001(2)(3) (0.21) 204
2000(2) (0.40) 205
1999(2) (0.23) 140
1998(2) (0.64) 77
Class B
2003(2)(9) (1.21%) 79%
2002 (1.14) 162
2001(2)(3) (0.98) 204
2000(2) (1.15) 205
1999(2)(4) (0.91) 140
Class C
2003(2)(9) (1.28%) 79%
2002 (1.13) 162
2001(2)(5) -- 204
Class S
2003(1)(2) (0.47%) 79%
2002 (0.39) 162
2001(2)(6) (0.28) 204
Class Y
2003(2)(9) (0.19%) 79%
2002 (0.14) 162
2001(2)(3) 0.04 204
2000(2) (0.15) 205
1999(2) 0.02 140
1998(2) (0.39) 77
- -----------------------------------------------------------------
MID CAP VALUE FUND
Class A
2003(2)(9) 1.77% 53%
2002(2) 0.77 90
2001(2) 0.67 104
2000 0.49 141
1999 0.60 121
1998 0.43 135
Class B
2003(2)(9) 1.03% 53%
2002(2) 0.02 90
2001(2) (0.08) 104
2000 (0.26) 141
1999 (0.16) 121
1998 (0.31) 135
Class C
2003(2)(9) 1.02% 53%
2002(2) 0.02 90
2001(2) (0.04) 104
2000 (0.18) 141
1999(7) 0.26 121
Class S
2003(2)(9) 1.72% 53%
2002(2) 0.81 90
2001(2)(5) 5.19 104
Class Y
2003(2)(9) 2.01% 53%
2002(2) 1.02 90
2001(2) 0.92 104
2000 0.75 141
1999 0.86 121
1998 0.69 135
- -----------------------------------------------------------------
</Table>
(1) The financial highlights for the Mid Cap Growth Opportunities Fund as set
forth herein include the historical financial highlights of the Firstar Mid
Cap Core Equity Fund. The assets of the Firstar Fund were acquired by the
First American Mid Cap Growth Opportunities Fund on September 24, 2001. In
connection with such acquisition, (i) Class A shares of the Fistar Mid Cap
Core Equity Fund were exchanged for Class A shares of the First American
Mid Cap Growth Opportunities Fund, (ii) Firstar Class B shares were
exchanged for Class B shares of the First American Fund, (iii) Firstar
Class Y shares were exchanged for Class S shares of the First American
Fund, and (iv) Firstar Class Institutional shares were exchanged for Class
Y shares of the First American Fund.
(2) Per share data calculated using average shares outstanding method.
(3) Effective in 2001, the Fund's fiscal year end was changed from October 31
to September 30. All ratios for the period have been annualized, except
total return and portfolio turnover.
(4) Class of shares has been offered since March 1, 1999. All ratios for the
period have been annualized, except total return and portfolio turnover.
(5) Class of shares has been offered since September 24, 2001. All ratios for
the period have been annualized, except total return and portfolio
turnover.
(6) Class of shares has been offered since December 11, 2000. All ratios for
the period have been annualized, except total return and portfolio
turnover.
(7) Class of shares has been offered since February 1, 1999. All ratios for the
period have been annualized, except total return and portfolio turnover.
(8) Total return does not include sales charges. Total return would have been
lower had certain expenses not been waived.
(9) For the six months ended March 31, 2003 (unaudited). All ratios for the
period have been annualized, except total return and portfolio turnover.
45
<Page>
SCHEDULE OF INVESTMENTS March 31, 2003 (unaudited)
LARGE CAP GROWTH OPPORTUNITIES
<Table>
<Caption>
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------------------------------------------------------
COMMON STOCKS - 96.9%
CONSUMER DISCRETIONARY - 14.3%
AOL Time Warner* (A) 543,565 $ 5,903
Best Buy* (A) 70,155 1,892
Clear Channel Communications* 167,160 5,670
Dollar General* 639,200 7,805
Dollar Tree Stores 131,240 2,612
eBay* (A) 84,800 7,233
Gannett (A) 48,340 3,405
Harley-Davidson (A) 197,275 7,834
Home Depot (A) 643,647 15,679
International Game Technology* (A) 33,720 2,762
Johnson Controls (A) 37,800 2,738
Jones Apparel Group* (A) 178,400 4,893
Kohl's* (A) 85,605 4,843
Lowe's (A) 245,700 10,029
MGM MIRAGE* (A) 110,150 3,222
Newell Rubbermaid (A) 184,780 5,238
Omnicom Group (A) 51,210 2,774
Target (A) 375,210 10,979
Viacom* 114,110 4,165
Viacom, Cl B* (A) 165,874 6,058
Wal-Mart Stores (A) 771,740 40,154
------------
155,888
------------
CONSUMER STAPLES - 10.4%
Altria Group 345,660 10,356
Anheuser-Busch (A) 248,570 11,586
Clorox (A) 107,900 4,982
Coca-Cola 383,480 15,523
Colgate-Palmolive (A) 45,100 2,455
General Mills (A) 62,530 2,848
Hershey Foods 89,210 5,590
Kimberly-Clark 122,040 5,548
Kraft Foods (A) 163,240 4,603
Kroger* 240,300 3,160
Pepsi Bottling 199,800 3,582
PepsiCo (A) 395,100 15,804
Procter & Gamble (A) 188,880 16,820
Safeway* (A) 148,584 2,813
Walgreen (A) 267,340 7,881
------------
113,551
------------
ENERGY - 2.3%
Anadarko Petroleum (A) 104,600 4,759
Apache 109,204 6,742
Baker Hughes 93,410 2,796
BJ Services* 81,710 2,810
Murphy Oil 114,300 5,049
Smith International* 81,420 2,868
------------
25,024
------------
FINANCIALS - 8.0%
ACE 127,420 3,689
American International Group 273,991 13,549
Capital One Financial (A) 237,140 7,117
Charles Schwab (A) 234,500 1,693
Citigroup 380,905 13,122
Fannie Mae 259,930 16,986
Federal Home Loan Mortgage 179,180 9,514
Fifth Third Bancorp 101,260 5,077
Goldman Sachs Group (A) 80,340 $ 5,470
MBNA 285,485 4,297
Wells Fargo 143,970 6,477
------------
86,991
------------
HEALTH CARE - 29.7%
Abbott Laboratories 406,270 15,280
AmerisourceBergen 5,372 282
Amgen* (A) 456,090 26,248
Andrx Group* (A) 221,630 2,617
Anthem* 4,100 272
Baxter International (A) 428,500 7,987
Biogen* (A) 81,300 2,436
Biomet (A) 181,940 5,576
Boston Scientific* (A) 80,950 3,299
Cardinal Health (A) 175,354 9,990
Eli Lilly 168,560 9,633
Express Scripts* (A) 113,356 6,312
Forest Laboratories, Cl A* (A) 159,360 8,601
Gilead Sciences* (A) 253,730 10,654
HCA (A) 277,530 11,479
IDEC Pharmaceuticals* (A) 102,930 3,543
Johnson & Johnson (A) 818,210 47,350
Lifecore Biomedical* 4,200 15
McKesson HBOC 10,100 252
Medtronic (A) 488,060 22,021
Merck 203,500 11,148
Pfizer (A) 1,477,025 46,024
Pharmacia 716,197 31,011
Schering-Plough 50,850 907
Teva Pharmaceutical Industries (A) 15,400 641
UnitedHealth Group (A) 76,170 6,982
Wellpoint Health Networks* (A) 124,530 9,558
Wyeth (A) 463,350 17,524
Zimmer Holdings* (A) 132,789 6,457
------------
324,099
------------
INDUSTRIALS - 8.0%
3M (A) 99,420 12,928
Automatic Data Processing (A) 87,300 2,688
Concord EFS* 74,530 701
Danaher (A) 40,950 2,693
General Electric (A) 2,348,630 59,890
Southwest Airlines (A) 200,600 2,881
United Technologies (A) 94,260 5,446
------------
87,227
------------
INFORMATION TECHNOLOGY - 23.5%
Accenture* (A) 323,740 5,018
Affiliated Computer Services, Cl A*(A) 118,670 5,252
Applied Materials* (A) 390,200 4,909
BEA Systems* (A) 411,650 4,195
BMC Software* (A) 203,340 3,068
Cisco Systems* (A) 1,813,358 23,537
Dell Computer* (A) 849,610 23,203
Electronic Arts* (A) 99,800 5,852
EMC* 293,470 2,122
First Data (A) 203,670 7,538
Flextronics International* (A) 408,710 3,564
Hewlett-Packard (A) 223,414 3,474
IBM 202,910 15,914
</Table>
The accompanying notes are an integral part of the financial statements.
46
<Page>
<Table>
<Caption>
DESCRIPTION SHARES/PAR (000) VALUE (000)
- ----------------------------------------------------------------------------------------------------
Intel 1,597,090 $ 26,001
KLA-Tencor* (A) 167,080 6,005
Microchip Technology (A) 214,510 4,269
Microsoft (A) 2,111,480 51,119
Nokia, ADR, Cl A (A) 363,390 5,091
Novellus Systems* (A) 320,420 8,738
Oracle Systems* (A) 1,109,570 12,038
PeopleSoft* (A) 269,000 4,116
QUALCOMM (A) 202,960 7,319
SAP (A) 169,170 3,207
Texas Instruments 910,340 14,902
Xilinx* (A) 243,580 5,702
------------
256,153
------------
MATERIALS - 0.5%
E.I. du pont de Nemours 148,600 5,775
------------
TELECOMMUNICATION SERVICES - 0.2%
Nextel Communications, Cl A* (A) 197,090 2,639
------------
TOTAL COMMON STOCKS 1,057,347
------------
RELATED PARTY MONEY MARKET FUND - 2.8%
First American Prime Obligations Fund, Cl Y (B) 30,771,394 30,771
------------
TOTAL RELATED PARTY MONEY MARKET FUND 30,771
------------
INVESTMENTS PURCHASED WITH CASH
PROCEEDS FROM SECURITIES LENDING - 49.5%
COMMERCIAL PAPER - 7.1%
CS First Boston
1.638%, 12/01/03 $ 9,478 9,478
Danske Bank
1.508%, 12/22/03 9,478 9,478
Goldman Sachs
1.518%, 08/28/03 12,321 12,321
Morgan Stanley
1.518%, 06/17/03 4,739 4,739
1.518%, 07/08/03 3,412 3,412
1.518%, 09/22/03 4,739 4,739
Orchard Park
1.475%, 01/06/04 9,478 9,478
UBS Financial
1.390%, 04/01/03 23,691 23,691
------------
TOTAL COMMERCIAL PAPER 77,336
------------
CORPORATE OBLIGATIONS - 5.4%
CS First Boston
1.760%, 04/11/03 9,478 9,478
Deutsche Bank
1.470%, 03/22/03 4,738 4,738
1.580%, 12/31/03 3,791 3,791
General Electric Capital Corporation
1.355%, 07/09/07 4,739 4,739
Merrill Lynch
1.538%, 05/05/03 8,056 8,056
Monet Trust
1.360%, 12/28/03 9,478 9,478
SMM Trust 2002-M
1.32%, 09/23/03 9,478 9,478
URI Trust
1.3288%, 09/18/03 9,478 9,478
------------
TOTAL CORPORATE OBLIGATIONS 59,236
------------
MONEY MARKET FUNDS - 4.6%
AIM Liquid Assets Portfolio 16,112,345 $ 16,112
Dreyfus Cash Manage Plus Fund 947,785 948
Evergreen Institutional
Money Market Fund 3,317,247 3,317
HSBC Investor
Money Market Fund - Cl I 2,843,355 2,843
Merrill Lynch
Premier Institutional Fund 18,357,189 18,357
Merrimac Cash Series Fund 2,843,355 2,843
One Group Institutional
Prime Money Market Fund 5,686,710 5,687
Reserve Primary Fund 473,892 474
------------
TOTAL MONEY MARKET FUNDS 50,581
------------
OTHER SHORT-TERM INVESTMENTS - 4.5%
Allied Irish Bank
1.330%, 06/02/03 $ 4,739 4,739
1.340%, 05/09/03 9,478 9,478
Commonwealth Life
1.678%, 04/01/03 4,785 4,785
General Electric Capital Assurance
1.370%, 12/19/03 1,896 1,896
Premium Asset Trust 02-7
1.381%, 08/23/03 6,037 6,037
Security Life Denver
1.490%, 03/15/04 9,478 9,478
1.381%, 01/13/04 12,321 12,321
------------
TOTAL OTHER SHORT-TERM INVESTMENTS 48,734
------------
REPURCHASE AGREEMENTS - 27.9%
Bear Stearns
1.420%, 04/10/03 18,956 18,956
CS First Boston
1.370%, 04/01/03 18,956 18,956
1.380%, 04/01/03 2,938 2,938
1.380%, 04/01/03 23,695 23,695
Goldman Sachs
1.360%, 06/10/03 4,739 4,739
1.400%, 06/11/03 4,739 4,739
1.420%, 04/07/03 9,478 9,478
1.520%, 04/01/03 14,217 14,217
Greenwich Capital Markets
1.430%, 04/01/03 28,434 28,434
Lehman Brothers
1.560%, 04/01/03 9,478 9,478
1.640%, 04/01/03 7,108 7,108
1.640%, 04/01/03 30,803 30,803
Merrill Lynch
1.560%, 04/01/03 11,847 11,847
1.360%, 04/01/03 28,433 28,433
1.500%, 04/01/03 14,217 14,217
1.560%, 04/01/03 18,956 18,956
Morgan Stanley
1.470%, 04/01/03 14,217 14,217
1.510%, 04/01/03 29,476 29,476
Salomon Smith Barney
1.540%, 04/01/03 14,217 14,217
------------
TOTAL REPURCHASE AGREEMENTS 304,904
------------
TOTAL INVESTMENTS PURCHASED WITH CASH
PROCEEDS FROM SECURITIES LENDING
(Cost $540,791) 540,791
------------
</Table>
47
<Page>
<Table>
<Caption>
DESCRIPTION VALUE (000)
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS - 149.2%
(Cost $1,719,422) $ 1,628,909
------------
OTHER ASSETS AND LIABILITIES, NET - (49.2)% (537,708)
------------
TOTAL NET ASSETS - 100.0% $ 1,091,201
------------
</Table>
* Non-income producing security
(A) This security or a portion of this security is out on loan at March 31,
2003. Total loaned securities had a value of $514,479,758 at March 31,
2003. See note 2 in Notes to Financial Statements for additional
information.
(B) This money market fund is advised by U.S. Bancorp Asset Management, Inc.,
which, also serves as advisor for this Fund. See note 3 in Notes to
Financial Statements.
ADR - American Depositary Receipt
Cl - Class
LARGE CAP SELECT FUND
<Table>
<Caption>
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------------------------------------------------------
COMMON STOCKS - 91.2%
CONSUMER DISCRETIONARY - 13.2%
AOL Time Warner* 12,583 $ 137
Autozone* 1,294 89
Best Buy* 235 6
Black & Decker 2,325 81
Clear Channel Communications* 1,494 51
Comcast, Special CI A* 2,010 55
Comcast, Cl A* 5,843 167
Dollar General* 4,744 58
Dollar Tree Stores 1,858 37
eBay* 1,968 168
Gap 10,400 151
Harley-Davidson 1,802 72
Home Depot 4,055 99
Johnson Controls 1,678 122
Jones Apparel Group* 1,668 46
Kohl's* 2,651 150
Lear* 2,150 76
Lowe's 1,763 72
Newell Rubbermaid 7,960 226
Target 4,038 118
Tribune 3,650 164
Viacom* 5,947 217
Viacom, Cl B* 7,585 277
Wal-Mart Stores 13,835 720
Yum! Brands* 4,700 114
------------
3,473
------------
CONSUMER STAPLES - 7.5%
Altria Group 3,097 93
Anheuser-Busch 2,027 94
Clorox 5,580 258
Coca-Cola 6,781 275
ConAgra Foods 3,884 78
General Mills 3,137 143
Hershey Foods 4,114 258
Kimberly-Clark 929 42
Pepsi Bottling 1,925 35
PepsiCo 2,309 92
Procter & Gamble 6,249 556
Walgreen 1,620 48
------------
1,972
------------
ENERGY - 5.8%
Anadarko Petroleum 4,936 225
Apache 5,650 349
BP, ADR 9,925 383
ChevronTexaco 1,029 67
Conoco, Cl B 4,799 257
Halliburton 4,850 101
Murphy Oil 790 35
Noble* 3,363 106
------------
1,523
------------
FINANCIALS - 16.5%
ACE 1,551 45
Allstate 6,402 212
American Express 1,756 58
American International Group 3,965 196
AmSouth Bancorp 5,000 99
</Table>
The accompanying notes are an integral part of the financial statements.
48
<Page>
<Table>
<Caption>
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------------------------------------------------------
Bank of America 5,001 334
Bank One 3,882 $ 134
Boston Properties 221 8
Capital One Financial 3,515 105
Charter One Financial 2,541 70
Citigroup 15,696 541
Compass Bancshares 4,500 141
Fannie Mae 1,790 117
Federal Home Loan Mortgage 819 43
Fifth Third Bancorp 45 2
FleetBoston Financial 3,758 90
General Growth Properties 2,285 123
Goldman Sachs Group 5,190 353
J. P. Morgan Chase 1,667 40
John Hancock Financial Services 81 2
Lehman Brothers Holdings 4,100 237
MBNA 2,179 33
Morgan Stanley 4,870 187
SAFECO 4,430 155
Simon Property Group 1,122 40
Wachovia 9,476 323
Wells Fargo 10,259 462
XL Capital Limited, Cl A 2,422 171
------------
4,321
------------
HEALTH CARE - 17.2%
Abbott Laboratories 11,356 427
Amgen* 6,443 371
Andrx Group* 2,294 27
Baxter International 5,731 107
Biogen* 445 13
Biomet 1,440 44
Boston Scientific* 262 11
Bristol-Myers Squibb 4,066 86
Cardinal Health 2,147 122
Eli Lilly 366 21
Express Scripts* 6,501 362
Forest Laboratories, Cl A* 2,648 143
Gilead Sciences* 4,623 194
HCA 2,482 103
IDEC Pharmaceuticals* 402 14
Johnson & Johnson 8,161 472
Medtronic 6,952 314
Merck 5,800 318
Pfizer 11,812 368
Pharmacia 13,228 573
UnitedHealth Group 510 47
Wellpoint Health Networks* 1,647 126
Wyeth 4,105 155
Zimmer Holdings* 2,038 99
------------
4,517
------------
INDUSTRIALS - 7.7%
3M 5,095 663
Caterpillar 3,284 162
FedEx 2,540 140
General Electric 14,681 374
ITT Industries 4,259 227
Lockheed Martin 2,449 116
Union Pacific 1,217 67
United Technologies 4,675 270
------------
2,019
------------
INFORMATION TECHNOLOGY - 14.5%
Accenture* 2,486 $ 39
Affiliated Computer Services, Cl A* 1,170 52
BEA Systems* 3,852 39
BMC Software* 8,317 126
Cisco Systems* 15,769 205
Computer Associates International 10,696 146
Dell Computer* 13,097 358
Electronic Arts* 2,263 133
Flextronics International* 4,680 41
Hewlett-Packard 6,888 107
IBM 5,614 440
Intel 27,350 445
KLA-Tencor* 3,407 122
Microchip Technology 3,278 65
Microsoft 21,262 515
Nokia, ADR, Cl A 4,950 69
Novellus Systems* 7,531 205
Oracle Systems* 7,767 84
PeopleSoft* 11,847 181
QUALCOMM 2,263 82
SAP AG 3,154 60
Texas Instruments 12,543 205
Xilinx* 3,334 78
------------
3,797
------------
MATERIALS - 3.1%
E.I. du pont de Nemours 6,103 237
International Paper 6,551 221
Nucor 2,815 107
Praxair 4,573 258
------------
823
------------
TELECOMMUNICATION SERVICES - 2.1%
ALLTEL 3,995 179
CenturyTel 6,638 183
Verizon Communications 5,769 204
------------
566
------------
UTILITIES - 3.6%
Dominion Resources 2,408 133
Entergy 2,531 122
Exelon 4,411 222
FirstEnergy 1,937 61
FPL Group 5,106 301
Public Service Enterprises 2,817 103
------------
942
------------
TOTAL COMMON STOCKS
(Cost $23,874) 23,953
------------
</Table>
49
<Page>
<Table>
<Caption>
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS - 0.8%
U.S. Treasury Bill
1.290%, 06/05/03 (B) 200 $ 199
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $200) 199
------------
RELATED PARTY MONEY MARKET FUND - 7.9%
First American
Prime Obligations Fund, Cl Y (A) 2,060,611 2,061
------------
TOTAL RELATED PARTY MONEY MARKET FUND
(Cost $2,061) 2,061
------------
TOTAL INVESTMENTS - 99.9%
(Cost $26,135) 26,213
------------
OTHER ASSETS AND LIABILITIES, NET - 0.1% 37
------------
TOTAL NET ASSETS - 100.0% $ 26,250
------------
</Table>
* Non-income producing security
(A) This money market fund is advised by U.S. Bancorp Asset Management, Inc.,
which also serves as advisor for this Fund. See note 3 in Notes to
Financial Statements.
(B) Security has been deposited as initial margin on open futures contracts.
Yield shown is effective yield at date of purchase. See note 2 in Notes to
Financial Statements for additional information.
Cl - Class
LARGE CAP VALUE FUND
<Table>
<Caption>
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------------------------------------------------------
COMMON STOCKS - 98.5%
CONSUMER DISCRETIONARY - 11.1%
AOL Time Warner* 559,700 $ 6,078
Autozone* (A) 67,200 4,617
Black & Decker 148,750 5,185
Comcast* (A) 229,900 6,320
Comcast, Cl A* (A) 540,196 15,444
Gap (A) 654,150 9,479
Johnson Controls (A) 63,550 4,604
Lear* (A) 174,800 6,179
Newell Rubbermaid (A) 267,250 7,577
Tribune 211,300 9,511
Viacom, Cl B* (A) 422,650 15,435
Walt Disney (A) 414,750 7,059
Yum! Brands* 306,150 7,449
------------
104,937
------------
CONSUMER STAPLES - 5.1%
Altria Group 132,450 3,968
Clorox (A) 175,400 8,098
Coca-Cola 185,200 7,497
ConAgra Foods 225,750 4,533
General Mills (A) 175,800 8,008
Procter & Gamble (A) 183,200 16,314
------------
48,418
------------
ENERGY - 12.4%
Anadarko Petroleum (A) 201,800 9,182
Apache 202,398 12,496
BP, ADR (A) 311,550 12,023
ChevronTexaco (A) 216,450 13,993
Conoco, Cl B (A) 337,650 18,098
Exxon Mobil (A) 1,069,414 37,376
Halliburton 352,150 7,300
Noble* 224,850 7,065
------------
117,533
------------
FINANCIALS - 32.0%
AFLAC 161,800 5,186
Allstate 444,500 14,744
American Express (A) 374,700 12,451
American International Group (A) 188,750 9,334
AmSouth Bancorp 368,000 7,316
Bank of America 446,900 29,871
Bank One (A) 429,900 14,883
Boston Properties (REIT) (A) 128,100 4,855
Charter One Financial 360,670 9,976
Citigroup 1,141,002 39,308
Compass Bancshares 307,800 9,625
FleetBoston Financial 200,950 4,799
General Growth Properties (A) 97,300 5,249
Goldman Sachs Group (A) 139,100 9,470
J.P. Morgan Chase (A) 257,100 6,096
John Hancock Financial Services 270,400 7,512
Lehman Brothers Holdings 247,250 14,279
Marshall & Ilsley 145,900 3,729
Morgan Stanley (A) 361,150 13,850
SAFECO (A) 297,800 10,414
Simon Property Group (A) 137,500 4,927
Wachovia (A) 623,200 21,232
Washington Mutual (A) 299,300 10,556
</Table>
The accompanying notes are an integral part of the financial statements.
50
<Page>
<Table>
<Caption>
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------------------------------------------------------
Wells Fargo 601,400 $ 27,057
XL Capital Limited, Cl A 103,550 7,329
------------
304,048
------------
HEALTH CARE - 6.1%
Abbott Laboratories 329,100 12,377
Bristol-Myers Squibb 543,400 11,482
Express Scripts* (A) 179,650 10,003
Merck 445,850 24,424
------------
58,286
------------
INDUSTRIALS - 8.2%
3M (A) 136,600 17,762
Caterpillar (A) 205,600 10,116
FedEx 154,600 8,514
ITT Industries 215,150 11,491
Lockheed Martin 231,050 10,986
Union Pacific (A) 133,900 7,365
United Technologies (A) 203,200 11,741
------------
77,975
------------
INFORMATION TECHNOLOGY - 6.3%
BMC Software* (A) 255,500 3,855
Computer Associates International (A) 581,200 7,939
Hewlett-Packard (A) 479,288 7,453
IBM (A) 276,156 21,659
Intel 713,600 11,617
Lucent Technologies* (A) 2,214,200 3,255
PeopleSoft* (A) 262,650 4,019
------------
59,797
------------
MATERIALS - 5.2%
E.I. du pont de Nemours (A) 356,200 13,842
International Paper (A) 403,500 13,638
Nucor (A) 172,800 6,596
Praxair 273,900 15,434
------------
49,510
------------
TELECOMMUNICATION SERVICES - 6.1%
ALLTEL (A) 243,150 10,883
CenturyTel (A) 366,350 10,111
SBC Communications 562,826 11,290
Verizon Communications (A) 717,352 25,358
------------
57,642
------------
UTILITIES - 6.0%
Dominion Resources (A) 177,900 9,850
Entergy (A) 109,400 5,268
Exelon 200,200 10,092
FirstEnergy (A) 260,000 8,190
FPL Group (A) 182,100 10,731
KeySpan 122,000 3,935
Public Service Enterprises (A) 231,600 8,497
------------
56,563
------------
TOTAL COMMON STOCKS 934,709
------------
RELATED PARTY MONEY MARKET FUND - 2.2%
First American Prime Obligations Fund, Cl Y (B) 20,578,842 20,579
------------
TOTAL RELATED PARTY MONEY MARKET FUND 20,579
------------
<Caption>
DESCRIPTION SHARES/PAR(000) VALUE (000)
- ----------------------------------------------------------------------------------------------------
INVESTMENTS PURCHASED WITH CASH
PROCEEDS FROM SECURITIES LENDING - 44.6%
COMMERCIAL PAPER - 6.4%
CS First Boston
1.638%, 12/01/03 $ 7,413 $ 7,413
Danske Bank
1.508%, 12/22/03 7,413 7,413
Goldman Sachs
1.518%, 08/28/03 9,636 9,636
Morgan Stanley
1.518%, 06/17/03 3,706 3,706
1.518%, 07/08/03 2,669 2,669
1.518%, 09/22/03 3,706 3,706
Orchard Park
1.475%, 01/06/04 7,413 7,413
UBS Financial
1.390%, 04/01/03 18,529 18,529
------------
TOTAL COMMERCIAL PAPER 60,485
------------
CORPORATE OBLIGATIONS - 4.9%
CS First Boston
1.760%, 04/11/03 7,413 7,413
Deutsche Bank
1.470%, 03/22/03 3,706 3,706
1.580%, 12/31/03 2,965 2,965
General Electric Capital Corporation
1.355%, 07/09/07 3,706 3,706
Merrill Lynch
1.538%, 05/05/03 6,301 6,301
Monet Trust
1.368%, 12/28/03 7,413 7,413
SMM Trust 2002-M
1.328%, 09/23/03 7,413 7,413
URI Trust
1.329%, 09/18/03 7,413 7,413
------------
TOTAL CORPORATE OBLIGATIONS 46,330
------------
MONEY MARKET FUNDS - 4.2%
AIM Liquid Assets Portfolio 12,601,563 12,602
Dreyfus Cash Manage Plus Fund 741,268 741
Evergreen Institutional
Money Market Fund 2,594,439 2,594
HSBC Investor
Money Market Fund - Cl I 2,223,805 2,224
Merrill Lynch
Premier Institutional Fund 14,357,269 14,357
Merrimac Cash Series Fund 2,223,805 2,224
One Group Institutional
Prime Money Market Fund 4,447,610 4,448
Reserve Primary Fund 370,634 371
------------
TOTAL MONEY MARKET FUNDS 39,561
------------
OTHER SHORT-TERM INVESTMENTS - 4.0%
Allied Irish Bank
1.330%, 06/02/03 3,706 3,706
1.340%, 05/09/03 7,413 7,413
Commonwealth Life
1.678%, 04/01/03 3,743 3,743
General Electric Capital Assurance
1.370%, 12/19/03 1,483 1,483
Premium Asset Trust 02-7
1.381%, 08/23/03 4,722 4,722
Security Life Denver
1.490%, 03/15/04 7,413 7,413
1.381%, 01/13/04 9,636 9,636
------------
TOTAL OTHER SHORT-TERM INVESTMENTS 38,116
------------
</Table>
51
<Page>
<Table>
<Caption>
DESCRIPTION PAR(000) VALUE (000)
- ----------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 25.1%
Bear Stearns
1.420%, 04/10/03 $ 14,825 $ 14,825
CS First Boston
1.370%, 04/01/03 14,825 14,825
1.380%, 04/01/03 2,298 2,298
1.380%, 04/01/03 18,532 18,532
Goldman Sachs
1.360%, 06/10/03 3,706 3,706
1.400%, 06/11/03 3,706 3,706
1.420%, 04/07/03 7,413 7,413
1.520%, 04/01/03 11,119 11,119
Greenwich Capital Markets
1.430%, 04/01/03 22,238 22,238
Lehman Brothers
1.560%, 04/01/03 7,413 7,413
1.640%, 04/01/03 5,559 5,559
1.640%, 04/01/03 24,091 24,091
Merrill Lynch
1.560%, 04/01/03 9,266 9,266
1.360%, 04/01/03 22,238 22,238
1.500%, 04/01/03 11,119 11,119
1.560%, 04/01/03 14,825 14,825
Morgan Stanley
1.470%, 04/01/03 11,119 11,119
1.510%, 04/01/03 23,053 23,053
Salomon Smith Barney
1.540%, 04/01/03 11,119 11,119
------------
TOTAL REPURCHASE AGREEMENTS 238,464
------------
TOTAL INVESTMENTS PURCHASED WITH CASH
PROCEEDS FROM SECURITIES LENDING
(Cost $422,956) 422,956
------------
TOTAL INVESTMENTS - 145.3%
(Cost $1,418,122) 1,378,244
------------
OTHER ASSETS AND LIABILITIES, NET - (45.3)% (429,972)
------------
TOTAL NET ASSETS - 100.0% $ 948,272
------------
</Table>
* Non-income producing security
(A) This security or a portion of this security is out on loan at March 31,
2003. Total loaned securities had a value of $402,516,372 at March 31,
2003. See note 2 in Notes to Financial Statements for additional
information.
(B) This money market fund is advised by U.S. Bancorp Asset Management, Inc.,
which also serves as advisor for this Fund. See note 3 in Notes to
Financial Statements for additional information.
ADR - American Depositary Receipt
Cl - Class
REIT - Real Estate Investment Trust
The accompanying notes are an integral part of the financial statements.
52
<Page>
STATEMENTS OF ASSETS AND LIABILITIES March 31, 2003 (unaudited), in thousands,
except per share data
<Table>
<Caption>
LARGE CAP GROWTH LARGE CAP LARGE CAP
OPPORTUNITIES FUND SELECT FUND VALUE FUND
- ----------------------------------------------------------------------------------------------------------------------------------
ASSETS:
Investments in securities, at value *+ $ 1,628,909 $ 26,213 $ 1,378,244
Cash 65 1 31
Dividends and interest receivable 1,153 20 978
Receivable for investment securities sold 12,034 340 20,905
Capital shares sold 982 136 757
Other receivables 14 -- --
Prepaid expenses and other assets 22 2 35
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 1,643,179 26,712 1,400,950
==================================================================================================================================
LIABILITIES:
Payable for investment securities purchased 8,523 401 26,719
Payable upon return of securities loaned 540,791 -- 422,956
Capital shares redeemed 1,821 -- 2,236
Variation margin receivable -- 36 --
Payable fpr advisory, co-administration, and custodian fees 776 18 711
Distribution and shareholder servicing fees 64 -- 54
Accrued expenses and other liabilities 3 7 2
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 551,978 462 452,678
==================================================================================================================================
NET ASSETS $ 1,091,201 $ 26,250 $ 948,272
==================================================================================================================================
COMPOSITION OF NET ASSETS:
Portfolio capital $ 1,292,103 $ 26,502 $ 1,190,546
Distributions in excess of net investment income (160) (4) (138)
Accumulated net realized loss (110,229) (333) (202,258)
Net unrealized appreciation or depreciation of investments (90,513) 78 (39,878)
Net unrealized appreciation of futures contracts -- 7 --
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 1,091,201 $ 26,250 $ 948,272
==================================================================================================================================
*Investments in securities, at cost $ 1,719,422 $ 26,135 $ 1,418,122
+Including securities loaned $ 514,480 $ -- $ 402,516
CLASS A:
Net assets $ 80,954 $ 31 $ 79,585
Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 4,124 3 6,172
Net asset value and redemption price per share $ 19.63 $ 9.86 $ 12.90
Maximum offering price per share (1) $ 20.77 $ 10.43 $ 13.65
CLASS B:
Net assets $ 37,121 $ 7 $ 30,152
Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 1,947 1 2,380
Net asset value and offering price per share (2) $ 19.06 $ 9.85 $ 12.67
CLASS C:
Net assets $ 14,311 $ 3 $ 6,607
Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 736 -- 516
Net asset value per share (2) $ 19.45 $ 9.84 $ 12.82
Maximum offering price per share (3) $ 19.65 $ 10.41 $ 12.95
CLASS S:
Net assets $ 13,758 $ 1 $ 21,736
Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 701 -- 1,686
Net asset value, offering price, and redemption price per share $ 19.63 $ 9.85 $ 12.89
CLASS Y:
Net assets $ 945,057 $ 26,208 $ 810,192
Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 47,096 2,660 62,674
Net asset value, offering price, and redemption price per share $ 20.07 $ 9.85 $ 12.93
- ----------------------------------------------------------------------------------------------------------------------------------
</Table>
(1) The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 5.50%
(2) Class B and C have a contingent deferred sales charge. For a description of
this sales charge, see notes 1 and 3 in Notes to the Financial Statements.
(3) The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 1.00%
The accompanying notes are an integral part of the financial statements.
53
<Page>
STATEMENTS OF OPERATIONS For the six months ended March 31, 2003 (unaudited), in
thousands
<Table>
<Caption>
LARGE CAP GROWTH LARGE CAP LARGE CAP
OPPORTUNITIES FUND SELECT FUND(1) VALUE FUND
- ----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest $ 92 $ 4 $ 161
Dividends 4,419 64 12,461
Less: Foreign taxes withheld (32) (1) (23)
Securities lending 82 -- 145
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 4,561 67 12,744
==================================================================================================================================
EXPENSES:
Investment advisory fees 2,035 23 3,282
Co-administration fees and expenses (including per account transfer agency fees) 880 18 1,407
Custodian fees 31 -- 50
Directors' fees 5 -- 8
Registration fees 8 7 9
Professional fees 8 -- 13
Printing 13 -- 20
Other 7 2 13
Distribution and shareholder servicing fees - Class A 38 -- 108
Distribution and shareholder servicing fees - Class B 32 -- 168
Distribution and shareholder servicing fees - Class C 16 -- 38
Shareholder servicing fees - Class S 7 -- 33
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES 3,080 50 5,149
==================================================================================================================================
Less: Waiver of expenses (170) (18) (258)
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL NET EXPENSES 2,910 32 4,891
==================================================================================================================================
INVESTMENT INCOME - NET 1,651 35 7,853
==================================================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS - NET:
Net realized loss on investments (36,394) (295) (105,628)
Net realized loss on futures contracts -- (38) --
Net change in unrealized apppreciation (depreciation) of investments (67,157) 78 115,804
Net change in unrealized apppreciation of futures contracts -- 7 --
- ----------------------------------------------------------------------------------------------------------------------------------
NET GAIN (LOSS) ON INVESTMENTS (103,551) (248) 10,176
==================================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ (101,900) $ (213) $ 18,029
==================================================================================================================================
</Table>
(1) Commenced operations on January 31, 2003.
The accompanying notes are an integral part of the financial statements.
54
<Page>
STATEMENTS OF CHANGES IN NET ASSETS in thousands
<Table>
<Caption>
LARGE CAP GROWTH LARGE CAP
0PPORTUNITIES FUND SELECT FUND
- ---------------------------------------------------------------------------------------------------------------------------------
10/1/02 10/1/01 1/31/03 (3)
TO TO TO
3/31/03 9/30/02 3/31/03
- ---------------------------------------------------------------------------------------------------------------------------------
(UNAUDITED) (UNAUDITED)
OPERATIONS:
Investment income - net $ 1,651 $ 727 $ 35
Net realized loss on investments (36,394) (38,565) (295)
Net realized loss on futures -- -- (38)
Net change in unrealized appreciation or depreciation of investments (67,157) (37,497) 78
Net change in unrealized appreciation or depreciation of futures contracts -- -- 7
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations (101,900) (75,335) (213)
- ---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Class A (72) (68) --
Class B (1) (3) --
Class C (2) -- --
Class S (14) (5) --
Class Y (2,165) (838) (39)
Tax return of capital (2):
Class A -- -- --
Class B -- -- --
Class C -- -- --
Class S -- -- --
Class Y -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Total distributions (2,254) (914) (39)
=================================================================================================================================
CAPITAL SHARE TRANSACTIONS (1):
Class A:
Proceeds from sales 2,539 3,585 31
Reinvestment of distributions 69 65 --
Payments for redemptions (4,033) (6,469) --
Shares issued in connection with the acquisition of Fund net assets 71,324 -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class A transactions 69,899 (2,819) 31
- ---------------------------------------------------------------------------------------------------------------------------------
Class B:
Proceeds from sales 427 1,361 8
Reinvestment of distributions 1 3 --
Payments for redemptions (649) (511) --
Shares issued in connection with the acquisition of Fund net assets 24,708 -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class B transactions 24,487 853 8
- ---------------------------------------------------------------------------------------------------------------------------------
Class C:
Proceeds from sales 2,437 1,034 3
Reinvestment of distributions 2 -- --
Payments for redemptions (512) (350) --
Shares issued in connection with the acquisition of Fund net assets 14,245 -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class C transactions 16,172 684 3
- ---------------------------------------------------------------------------------------------------------------------------------
Class S:
Proceeds from sales 3,870 2,442 1
Reinvestment of distributions 12 4 --
Payments for redemptions (1,419) (2,382) --
Shares issued in connection with the acquisition of Fund net assets 11,265 -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class S transactions 13,728 64 1
- ---------------------------------------------------------------------------------------------------------------------------------
Class Y:
Proceeds from sales 265,196 106,388 26,459
Reinvestment of distributions 884 502 34
Payments for redemptions (161,877) (99,984) (34)
Shares issued in connection with the acquisition of Fund net assets 407,427 -- --
Shares issued in connection with the acquisition of Common Trust Fund net assets 273,701 -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class Y transactions 785,331 6,906 26,459
- ---------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital share transactions 909,617 5,688 26,502
- ---------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 805,463 (70,561) 26,250
NET ASSETS AT BEGINNING OF PERIOD 285,738 356,299 --
=================================================================================================================================
NET ASSETS AT END OF PERIOD $ 1,091,201 $ 285,738 $ 26,250
=================================================================================================================================
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME AT END OF PERIOD $ (160) $ 443 $ (4)
=================================================================================================================================
<Caption>
LARGE CAP
VALUE FUND
- -------------------------------------------------------------------------------------------------------------------
10/1/02 10/1/01
TO TO
3/31/03 9/30/02
- -------------------------------------------------------------------------------------------------------------------
(UNAUDITED)
OPERATIONS:
Investment income - net $ 7,853 $ 11,486
Net realized loss on investments (105,628) (69,319)
Net realized loss on futures -- --
Net change in unrealized appreciation or depreciation of investments 115,804 (202,478)
Net change in unrealized appreciation or depreciation of futures contracts -- --
- -------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations 18,029 (260,311)
- -------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Class A (606) (821)
Class B (123) (63)
Class C (27) (16)
Class S (192) (104)
Class Y (7,043) (10,413)
Tax return of capital (2):
Class A -- (25)
Class B -- (10)
Class C -- (2)
Class S -- (7)
Class Y -- (240)
- -------------------------------------------------------------------------------------------------------------------
Total distributions (7,991) (11,701)
===================================================================================================================
CAPITAL SHARE TRANSACTIONS (1):
Class A:
Proceeds from sales 3,560 10,151
Reinvestment of distributions 580 804
Payments for redemptions (10,835) (29,928)
Shares issued in connection with the acquisition of Fund net assets -- 33,799
- -------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class A transactions (6,695) 14,826
- -------------------------------------------------------------------------------------------------------------------
Class B:
Proceeds from sales 518 2,307
Reinvestment of distributions 121 71
Payments for redemptions (4,626) (9,549)
Shares issued in connection with the acquisition of Fund net assets -- 12,359
- -------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class B transactions (3,987) 5,188
- -------------------------------------------------------------------------------------------------------------------
Class C:
Proceeds from sales 757 2,449
Reinvestment of distributions 27 18
Payments for redemptions (1,770) (3,164)
Shares issued in connection with the acquisition of Fund net assets -- 91
- -------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class C transactions (986) (606)
- -------------------------------------------------------------------------------------------------------------------
Class S:
Proceeds from sales 5,904 1,898
Reinvestment of distributions 189 109
Payments for redemptions (8,637) (4,834)
Shares issued in connection with the acquisition of Fund net assets -- 35,966
- -------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class S transactions (2,544) 33,139
- -------------------------------------------------------------------------------------------------------------------
Class Y:
Proceeds from sales 95,516 161,444
Reinvestment of distributions 4,744 6,422
Payments for redemptions (123,548) (528,969)
Shares issued in connection with the acquisition of Fund net assets -- 443,799
Shares issued in connection with the acquisition of Common Trust Fund net assets -- --
- -------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class Y transactions (23,288) 82,696
- -------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital share transactions (37,500) 135,243
- -------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (27,462) (136,769)
NET ASSETS AT BEGINNING OF PERIOD 975,734 1,112,503
===================================================================================================================
NET ASSETS AT END OF PERIOD $ 948,272 $ 975,734
===================================================================================================================
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME AT END OF PERIOD $ (138) $ --
===================================================================================================================
</Table>
(1) See note 4 in Notes to Financial Statements for additional information.
(2) Distributions from tax return of capital for the Large Cap Value Fund are
less than $0.01 per share for the fiscal year ended September 30, 2002.
(3) Commencement of operations.
The accompanying notes are an integral part of the financial statements.
55
<Page>
FINANCIAL HIGHLIGHTS For a share outstanding throughout the periods ended
September 30, unless otherwise indicated.
<Table>
<Caption>
REALIZED AND
NET ASSET UNREALIZED DIVIDENDS
VALUE NET GAINS OR FROM NET DISTRIBUTIONS
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT FROM
OF PERIOD INCOME (LOSS) INVESTMENTS INCOME CAPITAL GAINS
- ----------------------------------------------------------------------------------------------------------------------------------
LARGE CAP GROWTH OPPORTUNITIES(1)(2)
Class A
2003(9) $ 19.16 $ 0.02 $ 0.50 $ (0.05) $ --
2002 24.44 -- (5.23) (0.05) --
2001(3) 43.33 (0.01) (14.00) -- (4.88)
2000 37.96 (0.15) 7.55 -- (2.03)
1999 35.72 (0.12) 6.42 (0.02) (4.04)
1998 35.27 (0.02) 5.66 (0.02) (5.17)
Class B
2003(9) $ 18.64 $ (0.09) $ 0.51 $ -- $ --
2002 23.94 (0.18) (5.09) (0.03) --
2001(3) 42.80 (0.22) (13.76) -- (4.88)
2000 37.78 (0.47) 7.52 -- (2.03)
1999(4) 36.92 (0.29) 1.15 -- --
Class C
2003(9) $ 19.03 $ (0.07) $ 0.51 $ (0.02) $ --
2002 24.44 (0.18) (5.19) (0.04) --
2001(5) 23.75 -- 0.69 -- --
Class S
2003 $ 19.17 $ 0.02 $ 0.49 $ (0.05) $ --
2002 24.45 -- (5.23) (0.05) --
2001(6) 35.53 (0.01) (11.07) -- --
Class Y
2003(9) $ 19.59 $ 0.06 $ 0.49 $ (0.07) $ --
2002 24.93 0.06 (5.33) (0.07) --
2001(3) 44.00 0.06 (14.25) -- (4.88)
2000 38.42 (0.04) 7.65 -- (2.03)
1999 36.05 (0.02) 6.47 (0.04) (4.04)
1998 35.48 0.07 5.70 (0.03) (5.17)
- ----------------------------------------------------------------------------------------------------------------------------------
LARGE CAP SELECT(2)(7)
Class A
2003 $ 10.00 $ -- $ (0.13) $ (0.01) $ --
Class B
2003 $ 10.00 $ (0.01) $ (0.14) $ -- $ --
Class C
2003 $ 10.00 $ (0.01) $ (0.15) $ -- $ --
Class S
2003 $ 10.00 $ 0.01 $ (0.15) $ (0.01) $ --
Class Y
2003 $ 10.00 $ 0.01 $ (0.14) $ (0.02) $ --
</Table>
The accompanying notes are an integral part of the financial statements.
56
<Page>
<Table>
<Caption>
NET ASSETS RATIO OF
VALUE NET ASSETS EXPENSES TO
END OF TOTAL END OF AVERAGE
PERIOD RETURN (8) PERIOD (000) NET ASSETS
- ---------------------------------------------------------------------------------------------------------------
LARGE CAP GROWTH OPPORTUNITIES(1)(2)
Class A
2003(9) $ 19.63 2.65% $ 80,954 1.15%
2002 19.16 (21.46) 24,647 1.15
2001(3) 24.44 (35.83) 34,330 1.20
2000 43.33 19.92 51,232 1.20
1999 37.96 17.92 47,238 1.19
1998 35.72 18.58 38,213 1.14
Class B
2003(9) $ 19.06 2.27% $ 37,121 1.90%
2002 18.64 (22.06) 2,929 1.90
2001(3) 23.94 (36.28) 2,954 1.93
2000 42.80 19.06 1,483 1.95
1999(4) 37.78 2.33 722 1.96
Class C
2003(9) $ 19.45 2.30% $ 14,311 1.90%
2002 19.03 (22.03) 476 1.90
2001(5) 24.44 2.95 -- 0.00
Class S
2003 $ 19.63 2.67% $ 13,758 1.15%
2002 19.17 (21.45) 2,376 1.15
2001(6) 24.45 (31.16) 2,802 1.18
Class Y
2003(9) $ 20.07 2.81% $ 945,057 0.90%
2002 19.59 (21.23) 255,311 0.90
2001(3) 24.93 (35.70) 316,213 0.94
2000 44.00 20.24 339,166 0.95
1999 38.42 18.18 306,832 0.94
1998 36.05 18.89 197,798 0.89
- ---------------------------------------------------------------------------------------------------------------
LARGE CAP SELECT(2)(7)
Class A
2003 $ 9.86 (1.26)% $ 31 1.15%
Class B
2003 $ 9.85 (1.45)% $ 7 1.90%
Class C
2003 $ 9.84 (1.55)% $ 3 1.90%
Class S
2003 $ 9.85 (1.38)% $ 1 1.15%
Class Y
2003 $ 9.85 (1.34)% $ 26,208 0.90%
<Caption>
RATIO OF RATIO OF NET
RATIO OF NET EXPENSES TO INVESTMENT
INVESTMENT AVERAGE INCOME (LOSS)
INCOME (LOSS) NET ASSETS TO AVERAGE NET PORTFOLIO
TO AVERAGE (EXCLUDING ASSETS (EXCLUDING TURNOVER
NET ASSETS WAIVERS) WAIVERS) RATE
- ------------------------------------------------------------------------------------------------------------------
LARGE CAP GROWTH OPPORTUNITIES(1)(2)
Class A
2003(9) 0.17% 1.20% 0.12% 66%
2002 (0.02) 1.22 (0.09) 43
2001(3) (0.04) 1.24 (0.08) 40
2000 (0.35) 1.21 (0.36) 60
1999 (0.31) 1.20 (0.32) 59
1998 (0.05) 1.21 (0.12) 52
Class B
2003(9) (0.91)% 1.95% (0.96)% 66%
2002 (0.75) 1.97 (0.82) 43
2001(3) (0.79) 1.97 (0.83) 40
2000 (1.10) 1.96 (1.11) 60
1999(4) (1.17) 1.97 (1.18) 59
Class C
2003(9) (0.73)% 1.95% (0.78)% 66%
2002 (0.73) 1.97 (0.80) 43
2001(5) 0.00 0.00 0.00 40
Class S
2003 0.21% 1.20% 0.16% 66%
2002 0.00 1.22 (0.07) 43
2001(6) (0.03) 1.22 (0.07) 40
Class Y
2003(9) 0.57% 0.95% 0.52% 66%
2002 0.24 0.97 0.17 43
2001(3) 0.20 0.98 0.16 40
2000 (0.10) 0.96 (0.11) 60
1999 (0.06) 0.95 (0.07) 59
1998 0.20 0.96 0.13 52
- ------------------------------------------------------------------------------------------------------------------
LARGE CAP SELECT(2)(7)
Class A
2003 0.03% 1.62% (0.44)% 22%
Class B
2003 (0.33)% 2.37% (0.80)% 22%
Class C
2003 (0.52)% 2.37% (0.99)% 22%
Class S
2003 0.50% 1.62% 0.03% 22%
Class Y
2003 0.93% 1.37% 0.46% 22%
</Table>
(1) The financial highlights for the Large Cap Growth Opportunities Fund as set
forth herein include the historical financial highlights of the Firstar
Large Cap Core Equity Fund. The assets of the Firstar Fund were acquired by
the First American Large Cap Growth Opportunities Fund on September 24,
2001. In connection with such acquisition, (i) Class A shares of the
Firstar Large Cap Core Fund were exchanged for Class A shares of the First
American Large Cap Growth Opportunities Fund, (ii) Firstar Class B shares
were exchanged for Class B shares of the First American Fund, (iii) Firstar
Class Y shares were exchanged for Class S shares of the First American
Fund, and (iv) Firstar Class Institutional shares were exchanged for Class
Y shares of the First American Fund.
(2) Per share data calculated using average shares outstanding.
(3) Effective in 2001, the Fund's fiscal year end was changed from October 31
to September 30. All ratios for the period have been annualized, except
total return and portfolio turnover.
(4) Class of shares has been offered since March 1, 1999. All ratios for the
period have been annualized, except total return and portfolio turnover.
(5) Class of shares has been offered since September 24, 2001. All ratios for
the period have been annualized, except total return and portfolio
turnover.
(6) Class of shares has been offered since November 27, 2000. All ratios for
the period have been annualized, except total return and portfolio
turnover.
(7) Commenced operations on January 31, 2003. 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.
(9) For the six months ended March 31, 2003 (unaudited). All ratios for the
period have been annualized, except total return and portfolio turnover.
57
<Page>
<Table>
<Caption>
REALIZED AND
NET ASSET UNREALIZED DIVIDENDS
VALUE NET GAINS OR FROM NET DISTRIBUTIONS
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT FROM
OF PERIOD INCOME INVESTMENTS INCOME CAPITAL GAINS
- ---------------------------------------------------------------------------------------------------------------------------------
LARGE CAP VALUE FUND
Class A
2003(1)(5) $ 12.77 $ 0.09 $ 0.14 $ (0.10) $ --
2002(1) 15.98 0.14 (3.21) (0.14) --
2001(1) 20.59 0.16 (2.67) (0.16) (1.94)
2000 23.12 0.17 0.22 (0.17) (2.75)
1999 22.39 0.19 4.44 (0.20) (3.70)
1998 28.74 0.29 (2.59) (0.29) (3.76)
Class B
2003(1)(5) $ 12.55 $ 0.04 $ 0.13 $ (0.05) $ --
2002(1) 15.71 0.02 (3.15) (0.03) --
2001(1) 20.30 0.02 (2.63) (0.04) (1.94)
2000 22.87 0.05 0.18 (0.05) (2.75)
1999 22.21 0.07 4.36 (0.07) (3.70)
1998 28.55 0.13 (2.58) (0.13) (3.76)
Class C
2003(1)(5) $ 12.70 $ 0.04 $ 0.13 $ (0.05) $ --
2002(1) 15.90 0.02 (3.19) (0.03) --
2001(1) 20.51 0.02 (2.65) (0.04) (1.94)
2000 23.09 0.06 0.17 (0.06) (2.75)
1999(2) 22.79 0.08 0.30 (0.08) --
Class S(1)
2003(5) $ 12.77 $ 0.09 $ 0.13 $ (0.10) $ --
2002 15.97 0.13 (3.18) (0.15) --
2001(3) 15.32 -- 0.65 -- --
Class Y
2003(1)(5) $ 12.80 $ 0.11 $ 0.13 $ (0.11) $ --
2002(1) 16.02 0.18 (3.22) (0.18) --
2001(1) 20.64 0.21 (2.68) (0.21) (1.94)
2000 23.17 0.23 0.21 (0.22) (2.75)
1999 22.42 0.25 4.46 (0.26) (3.70)
1998 28.75 0.35 (2.57) (0.35) (3.76)
</Table>
The accompanying notes are an integral part of the financial statements.
58
<Page>
<Table>
<Caption>
NET ASSET RATIO OF
VALUE NET ASSETS EXPENSES TO
END OF TOTAL END OF AVERAGE
PERIOD RETURN (4) PERIOD (000) NET ASSETS
- ---------------------------------------------------------------------------------------------------------------
LARGE CAP VALUE FUND
Class A
2003(1)(5) $ 12.90 1.72% $ 79,585 1.15%
2002(1) 12.77 (19.37) 85,182 1.15
2001(1) 15.98 (13.72) 94,064 1.05
2000 20.59 0.92 138,146 1.05
1999 23.12 21.93 177,251 1.05
1998 22.39 (8.77) 170,529 1.05
Class B
2003(1)(5) $ 12.67 1.32% $ 30,152 1.90%
2002(1) 12.55 (19.96) 33,720 1.90
2001(1) 15.71 (14.42) 38,108 1.80
2000 20.30 0.17 49,662 1.80
1999 22.87 21.07 61,711 1.80
1998 22.21 (9.37) 56,259 1.80
Class C
2003(1)(5) $ 12.82 1.30% $ 6,607 1.90%
2002(1) 12.70 (19.97) 7,524 1.90
2001(1) 15.90 (14.36) 10,141 1.80
2000 20.51 0.17 6,551 1.80
1999(2) 23.09 1.65 1,398 1.80
Class S(1)
2003(5) $ 12.89 1.65% $ 21,736 1.15%
2002 12.77 (19.36) 24,129 1.15
2001(3) 15.97 4.24 -- 0.00
Class Y
2003(1)(5) $ 12.93 1.84% $ 810,192 0.90%
2002(1) 12.80 (19.22) 825,179 0.90
2001(1) 16.02 (13.53) 970,190 0.80
2000 20.64 1.17 1,186,787 0.80
1999 23.17 22.28 1,343,207 0.80
1998 22.42 (8.47) 1,253,845 0.80
<Caption>
RATIO OF RATIO OF NET
RATIO OF NET EXPENSES TO INVESTMENT
INVESTMENT AVERAGE INCOME (LOSS)
INCOME (LOSS) NET ASSETS TO AVERAGE NET PORTFOLIO
TO AVERAGE (EXCLUDING ASSETS (EXCLUDING TURNOVER
NET ASSETS WAIVERS) WAIVERS) RATE
- ------------------------------------------------------------------------------------------------------------------
LARGE CAP VALUE FUND
Class A
2003(1)(5) 1.38% 1.20% 1.33% 48%
2002(1) 0.86 1.20 0.81 82
2001(1) 0.88 1.15 0.78 64
2000 (0.45) 1.13 (0.53) 68
1999 0.82 1.15 0.72 61
1998 1.21 1.13 1.13 74
Class B
2003(1)(5) 0.63% 1.95% 0.58% 48%
2002(1) 0.11 1.95 0.06 82
2001(1) 0.13 1.90 0.03 64
2000 (1.20) 1.88 (1.28) 68
1999 0.07 1.90 (0.03) 61
1998 0.41 1.88 0.33 74
Class C
2003(1)(5) 0.63% 1.95% 0.58% 48%
2002(1) 0.11 1.95 0.06 82
2001(1) 0.12 1.90 0.02 64
2000 (1.20) 1.88 (1.28) 68
1999(2) 0.00 1.90 (0.10) 61
Class S(1)
2003(5) 1.37% 1.20% 1.32% 48%
2002 0.90 1.20 0.85 82
2001(3) 0.00 0.00 0.00 64
Class Y
2003(1)(5) 1.62% 0.95% 1.57% 48%
2002(1) 1.11 0.95 1.06 82
2001(1) 1.13 0.90 1.03 64
2000 (0.20) 0.88 (0.28) 68
1999 1.07 0.90 0.97 61
1998 1.40 0.88 1.32 74
</Table>
(1) Per share data calculated using average shares outstanding method.
(2) Class of shares has been offered since February 1, 1999. All ratios for the
period have been annualized, except total return and portfolio turnover.
(3) Class of shares has been offered since September 24, 2001. All ratios for
the period have been annualized, except total return and portfolio
turnover.
(4) Total return does not reflect sales charges. Total return would have been
lower had certain expenses not been waived.
(5) For the six months ended March 31, 2003 (unaudited). All ratios for the
period have been annualized, except total return and portfolio turnover.
59
<Page>
SCHEDULE OF INVESTMENTS March 31, 2003 (unaudited)
BALANCED FUND
<Table>
<Caption>
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------------------------------------------------------
COMMON STOCKS - 60.3%
CONSUMER DISCRETIONARY - 8.5%
4Kids Entertainment* 16,793 $ 198
A.C. Moore Arts & Crafts* 21,175 293
Abercrombie & Fitch* 2,313 69
Advanced Auto Parts* (A) 6,813 315
Aeropostale* 11,275 149
Alliance Atlantis Communications, Cl B* 16,100 133
AOL Time Warner* 151,625 1,647
Applebee's International (A) 3,700 104
Autozone* (A) 17,531 1,205
BearingPoint* 38,200 243
Beazer Homes* (A) 1,600 94
Best Buy* (A) 6,191 167
Black & Decker 28,016 977
CDW Computer Centers* (A) 6,329 258
Chico's FA* 8,953 179
Clear Channel Communications* 18,003 611
Coach* (A) 5,919 227
Comcast* (A) 24,221 666
Comcast, Cl A* (A) 55,129 1,576
CSK Auto* 9,200 84
Cumulus Media, Cl A* 2,225 32
Dollar General* 57,165 698
Dollar Tree Stores 57,454 1,143
eBay* (A) 19,955 1,702
Electronics Boutique Holdings* 6,343 106
Fairmont Hotels & Resorts 9,838 221
Federated Department Stores* 12,700 356
Foot Locker (A) 5,591 60
Fortune Brands 1,284 55
Gaylord Entertainment* 9,325 167
Harley-Davidson (A) 21,714 862
Home Depot (A) 48,863 1,190
Jo-Ann Stores, Cl A* (A) 1,550 31
Johnson Controls (A) 18,340 1,329
Jones Apparel Group* (A) 18,485 507
Kirkland's* 14,650 183
Knight-Ridder (A) 2,548 149
Kohl's* (A) 31,945 1,807
Lear* 27,836 984
Lennar (A) 1,269 68
Lin TV, Cl A 250 5
Liz Claiborne 1,679 52
Lowe's (A) 21,244 867
Mattel 2,572 58
Michael's Stores* (A) 5,200 131
New York Times, Cl A (A) 2,342 101
Newell Rubbermaid 98,910 2,804
Orient Express Hotels* 10,500 103
O'Reilly Automotive* (A) 7,500 203
Polaris Industries (A) 1,750 87
Ross Stores 17,111 619
Ruby Tuesday (A) 7,925 162
Standard Pacific 5,300 135
Station Casinos* (A) 8,250 174
Target (A) 48,658 1,424
The Wet Seal, Cl A* 19,608 143
TJX 22,413 394
Too* 8,900 $ 148
Viacom* 71,661 2,616
Viacom, Cl B* 34,403 1,256
Wal-Mart Stores (A) 143,540 7,468
Walt Disney (A) 59,298 1,009
Washington Post, Cl B 117 80
Westwood One* 2,546 80
Yum! Brands* 56,635 1,378
------------
42,342
------------
CONSUMER STAPLES - 4.7%
Adolph Coors 1,250 61
Alberto-Culver, Cl B (A) 2,558 126
Altria Group 37,319 1,118
Anheuser-Busch 24,425 1,138
Bunge Limited 14,302 360
Clorox (A) 57,311 2,646
Coca-Cola 81,711 3,308
ConAgra Foods 46,802 940
Dean Foods* (A) 1,493 64
General Mills (A) 37,801 1,722
Hershey Foods 49,574 3,106
Kimberly-Clark 11,194 509
Pepsi Bottling 23,196 416
PepsiCo 27,823 1,113
Performance Food Group* (A) 10,818 332
Procter & Gamble (A) 75,300 6,705
------------
23,664
------------
ENERGY - 4.3%
Anadarko Petroleum (A) 59,479 2,706
Apache 51,221 3,162
Baker Hughes (A) 23,377 700
BP, ADR (A) 119,596 4,615
ChevronTexaco (A) 53,020 3,428
Conoco, Cl B 33,125 1,776
Devon Energy (A) 762 37
ENSCO International 13,510 345
Equitable Resources 8,056 302
FMC Technologies* 10,125 194
Grant Prideco* (A) 5,777 70
Helmerich & Payne 9,113 233
Lone Star Technologies* 8,125 172
Murphy Oil 7,784 344
Nabors Industries* (A) 5,419 216
National-Oilwel * 4,000 90
Noble* 40,524 1,273
Oceaneering International* 3,250 71
Patterson-UTI Energy* (A) 3,003 97
Pioneer Natural Resources* (A) 4,930 124
Premcor* 9,025 232
Teekay Shipping (A) 4,400 171
Ultra Petroleum* 27,443 242
Valero Energy (A) 8,718 361
Varco International* 17,688 324
Western Gas Resources (A) 833 27
------------
21,312
------------
FINANCIALS - 10.9%
ACE 18,690 541
Allstate 30,752 1,020
</Table>
The accompanying notes are an integral part of the financial statements.
60
<Page>
<Table>
<Caption>
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------------------------------------------------------
American Express 29,430 $ 978
American International Group (A) 105,859 5,235
Ameritrade Holding* (A) 5,500 27
AmSouth Bancorp 60,250 1,198
Arthur J. Gallagher 6,786 167
Bank of America 56,286 3,762
Bank One 46,778 1,619
Bear Stearns (A) 4,320 283
Boston Properties 2,663 101
Brookline Bancorp 11,750 147
Capital One Financial (A) 42,356 1,271
Charter One Financial 32,999 913
Citigroup 189,137 6,516
Compass Bancshares 7,266 227
Countrywide Credit Industries 4,654 268
Cullen/Frost Bankers 3,650 111
East West Bancorp 5,525 170
Essex Property Trust (REIT) 899 47
Everest Re Group 6,446 369
Fannie Mae 21,570 1,410
Federal Home Loan Mortgage 9,869 524
Fifth Third Bancorp 542 27
First Niagara Financial Group 9,600 113
First Tennessee National (A) 3,522 140
FleetBoston Financial 71,191 1,700
General Growth Properties (REIT) (A) 34,110 1,840
Golden West Financial 6,779 488
Goldman Sachs Group (A) 62,238 4,237
Hudson City Bancorp (A) 10,175 206
Investors Financial Services (A) 12,619 307
J. P. Morgan Chase (A) 20,087 476
Jefferies Group 8,200 295
John Hancock Financial Services 6,319 176
LaBranche (A) 4,845 89
M & T Bank (A) 1,554 122
MBNA 69,878 1,052
Merrill Lynch (A) 61,841 2,189
Morgan Stanley 58,684 2,251
National Commerce Financial 860 20
Platinum Underwriter Holdings 7,500 190
PMI Group 2,166 55
Prologis 1,030 26
Provident Financial Services* 1,775 28
RenaissanceRe Holdings 4,250 170
SAFECO (A) 57,375 2,006
Simon Property Group 16,025 574
SouthTrust 9,400 240
W.R. Berkley 8,991 385
Wachovia 43,693 1,489
Wells Fargo 121,717 5,476
XL Capital Limited, Cl A 16,478 1,166
------------
54,437
------------
HEALTH CARE - 11.3%
Abbott Laboratories 201,187 7,567
Accredo Health* (A) 2,700 66
AdvancePCS* (A) 1,417 40
Aetna 1,499 74
Amgen* (A) 69,625 4,007
Amylin Pharmaceuticals* 6,415 104
Andrx Group* (A) 27,643 $ 326
Barr Laboratories* 2,010 115
Baxter International 68,456 1,276
Biogen* 5,362 161
Biomet (A) 9,748 299
Bristol-Myers Squibb 48,995 1,035
Cardinal Health (A) 20,859 1,188
Caremark Rx* (A) 3,673 67
Celgene* (A) 9,368 244
Cephalon* (A) 5,035 201
Community Health Systems* 9,275 190
CTI Molecular Imaging* (A) 4,425 87
Eli Lilly 4,410 252
Express Scripts* (A) 66,078 3,679
Forest Laboratories, Cl A* (A) 29,507 1,592
Gilead Sciences* (A) 61,036 2,563
HCA 29,908 1,237
Henry Schein* 5,355 242
IDEC Pharmaceuticals* (A) 4,844 167
Johnson & Johnson (A) 88,857 5,142
McKesson HBOC 3,232 81
Medicis, Cl A* (A) 2,075 115
Medtronic (A) 73,011 3,294
Merck 45,597 2,498
Mid-Atlantic Medical Services* 1,725 70
Mylan Laboratories 2,110 61
Omnicare 17,565 478
Pfizer (A) 196,885 6,135
Pharmaceutical Product Development* (A) 8,320 223
Pharmacia 159,397 6,902
Priority Healthcare, Cl B* 8,250 220
Province Healthcare* 5,350 47
Respironics* 3,400 117
Teva Pharmaceutical Industries, ADR 4,038 168
Triad Hospitals* 11,323 305
United Surgical Partners* (A) 6,355 118
Wellpoint Health Networks* (A) 16,400 1,259
Wyeth 38,090 1,441
Zimmer Holdings* (A) 23,714 1,153
------------
56,606
------------
INDUSTRIALS - 5.5%
3M (A) 57,828 7,519
Albany International, Cl A* 7,550 173
Alliant Techsystems* (A) 6,300 340
American Standard* (A) 2,459 169
ARAMARK, Cl B* 15,699 360
Cablevision Systems* (A) 7,260 138
Career Education* (A) 2,935 144
Caterpillar (A) 39,572 1,947
Coinstar* (A) 8,600 144
DRS Technologies* 6,500 163
Dun & Bradstreet* (A) 4,515 173
Eaton 383 27
EDO 4,458 81
FedEx 21,112 1,163
General Electric 176,906 4,511
Heartland Express* 5,050 97
Iron Mountain* (A) 9,434 361
ITT Industries 48,935 2,614
</Table>
61
<Page>
<Table>
<Caption>
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------------------------------------------------------
Kroll* (A) 14,800 $ 317
L-3 Communications Holdings* (A) 562 23
Lockheed Martin 8,423 401
Mesa Air Group* 8,850 44
Navistar International* 6,950 171
Northwest Airlines* (A) 15,125 104
Republic Services* 26,686 529
Swift Transportation* 4,650 74
Triumph Group* 5,125 115
Tyco International (A) 114,740 1,476
Union Pacific (A) 14,665 807
United Defense Industries* 650 14
United Technologies (A) 50,911 2,942
Viad 4,244 91
Waste Connections* (A) 5,575 192
Werner Enterprises 4,900 94
Yellow* 6,100 147
------------
27,665
------------
INFORMATION TECHNOLOGY - 9.7%
Accenture* (A) 34,714 538
Aeroflex* 17,000 96
Affiliated Computer Services, Cl A* (A) 16,807 744
Agere Systems* 30,244 48
Anaren Microwave* 8,700 75
ATMI* (A) 7,293 140
Axcelis Technologies* 12,075 57
BEA Systems* 54,267 553
BMC Software* 106,014 1,600
Business Objects* (A) 17,101 280
Cabot Microelectronics* (A) 716 30
Cerner* 2,725 88
Ciena* (A) 6,809 30
Cisco Systems* (A) 272,559 3,538
Computer Associates International (A) 137,801 1,882
Cymer* (A) 5,626 133
Dell Computer* 132,417 3,616
Diebold 2,708 92
DoubleClick* 9,145 71
Electronic Arts* (A) 16,147 947
Entegris* 34,575 344
Fiserv* 10,008 315
Fisher Scientific International* 13,320 372
Hewlett-Packard (A) 128,790 2,003
IBM 58,177 4,563
Inforte* 17,600 104
Integrated Circuit Systems* (A) 14,967 325
Integrated Device Technology* 11,270 89
Intel 309,143 5,033
IXYS* 12,900 68
JDS Uniphase* 14,063 40
KLA-Tencor* (A) 27,848 1,001
Kronos* 363 12
Legato Systems* 20,650 106
Manhattan Associates* 4,500 79
ManTech International* 2,800 41
Maxim Integrated Products 1,446 52
Microchip Technology (A) 39,724 791
Microsoft 256,207 6,203
Mykrolis* 47,388 396
<Caption>
DESCRIPTION SHARES/PAR(000) VALUE (000)
- ----------------------------------------------------------------------------------------------------
Nortel Networks* (A) 29,301 $ 61
Novellus Systems* (A) 78,458 2,140
Oracle Systems* (A) 93,592 1,015
PeopleSoft* (A) 148,949 2,279
Polycom* 20,803 168
QUALCOMM (A) 27,269 983
SAP (A) 38,006 721
SERENA Software* (A) 12,200 195
SunGard Data Systems* 3,560 76
Symantec* (A) 2,452 96
Synopsys* 1,324 56
Take-Two Interactive Software* (A) 9,080 203
Tech Data* (A) 1,995 48
Texas Instruments 148,408 2,429
Tier Technologies* 8,950 91
TriZetto Group* 9,400 39
USA Interactive* (A) 2,504 67
Varian Semiconductor Equipment Associates* (A) 2,270 46
Vastera* 12,100 46
Vishay Intertechnology* (A) 9,957 101
Xilinx* 33,379 781
Zoran* (A) 13,885 179
------------
48,315
------------
MATERIALS - 2.0%
Agrium 5,450 59
Arch Coal (A) 4,431 84
Bowater (A) 3,075 114
E.I. du pont de Nemours 73,541 2,858
International Paper (A) 78,940 2,668
Nucor (A) 33,921 1,295
Praxair 54,502 3,071
------------
10,149
------------
TELECOMMUNICATION SERVICES - 1.1%
ALLTEL 12,592 564
CenturyTel (A) 87,373 2,411
General Communication* 22,203 132
Verizon Communications (A) 69,516 2,457
------------
5,564
------------
UTILITIES - 2.3%
Dominion Resources (A) 29,016 1,607
Entergy (A) 31,790 1,531
Exelon 53,153 2,679
FirstEnergy 23,341 735
FPL Group (A) 63,892 3,765
Kinder Morgan Fractional Shares* (C) 87,391 --
Kinder Morgan Management* 3,956 128
Public Service Enterprises 33,945 1,245
------------
11,690
------------
TOTAL COMMON STOCKS 301,744
------------
CORPORATE OBLIGATIONS - 13.8%
ENERGY - 0.7%
Ashland
7.900%, 08/05/06 $ 250 272
Atlantic Richfield
8.500%, 04/01/12 700 902
Consolidated Natural Gas
7.250%, 10/01/04 1,500 1,602
</Table>
The accompanying notes are an integral part of the financial statements.
62
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ----------------------------------------------------------------------------------------------------
Constellation Energy Group
7.000%, 04/01/12 (A) $ 545 $ 607
------------
3,383
------------
FINANCIALS - 6.3%
Allstate
7.200%, 12/01/09 500 581
Bank of America
7.125%, 09/15/06 1,000 1,142
Bank of Boston
6.625%, 02/01/04 925 962
Boeing Capital
5.800%, 01/15/13 (A) 625 619
Boston Properties
6.250%, 01/15/13 550 576
Citibank Credit Card Issuance Trust
3.100%, 03/10/10 1,250 1,240
Citibank Credit Card
Zero Coupon Bond, 08/15/06 1,000 977
Credit Suisse First Boston
5.875%, 08/01/06 1,500 1,616
Donaldson, Lufkin & Jenrette
6.875%, 11/01/05 1,450 1,597
Dresdner Bank - New York
7.250%, 09/15/15 1,400 1,498
First Union National Bank
7.875%, 02/15/10 1,000 1,209
Goldman Sachs
5.500%, 11/15/14 (A) 775 801
Hartford Financial Services
6.375%, 11/01/08 205 227
Household Finance
4.625%, 01/15/08 (A) 1,985 2,042
International Lease Financing
8.375%, 12/15/04 250 273
Key Bank
7.000%, 02/01/11 1,000 1,152
Keycorp
8.000%, 07/01/04 730 784
Lehman Brothers Holdings
7.875%, 08/15/10 1,000 1,201
Merrill Lynch
2.470%, 03/10/06 600 590
Morgan Stanley
5.625%, 01/20/04 500 517
5.300%, 03/01/13 (A) 970 989
Salomon Smith Barney Holdings
7.000%, 06/15/03 277 280
5.875%, 03/15/06 1,500 1,642
USF&G
7.125%, 06/01/05 1,350 1,419
Westdeutsche
6.750%, 06/15/05 400 436
6.050%, 01/15/09 1,900 2,106
Zurich Capital Trust 144A,
Callable 06/01/07 @ 104.19
8.376%, 06/01/37 365 326
------------
26,802
------------
MANUFACTURING - 2.7%
Centex
7.500%, 01/15/12 450 509
DaimlerChrysler
4.750%, 01/15/08 $ 1,325 $ 1,338
EOP Operating LP
6.750%, 02/15/08 505 560
Ford Motor
6.375%, 02/01/29* 250 174
Ford Motor Credit
5.800%, 01/12/09 2,010 1,781
General Mills
6.000%, 02/15/12 1,235 1,358
General Motors Acceptance
6.150%, 04/05/07 3,000 3,048
General Motors Global Bond
6.750%, 05/01/28 (A) 750 629
Raytheon
6.150%, 11/01/08 1,575 1,710
TRW
6.300%, 05/15/08 1,000 1,099
------------
12,206
------------
SERVICES - 1.6%
AOL Time Warner
6.875%, 05/01/12 (A) 650 691
AT&T
6.500%, 11/15/06 (A) 1,240 1,307
AT&T Broadband
8.375%, 03/15/13 1,300 1,532
Dayton Hudson
5.875%, 11/01/08 1,500 1,658
Duty Free International
7.000%, 01/15/04 (C) 1,825 913
Kroger
7.450%, 03/01/08 500 570
Wyeth
5.250%, 03/15/13 (A) 1,325 1,361
------------
8,032
------------
TRANSPORTATION - 0.3%
America West Airlines
7.930%, 07/02/20 592 604
Northwest Airlines
6.810%, 08/01/21 884 663
Southwest Airlines
5.100%, 11/01/07 (A) 429 456
------------
1,723
------------
UTILITIES - 2.1%
British Telecommunications
8.375%, 12/15/10 150 181
CE Generation
7.416%, 12/15/18 891 794
Commonwealth Edison
9.875%, 06/15/20 1,500 1,786
Conectiv
6.730%, 06/01/06 135 144
FPL Group Capital
7.625%, 09/15/06 150 170
France Telecom
8.250%, 03/01/11 150 180
8.250%, 03/01/11 (A) 545 653
GTE South
6.125%, 06/15/07 1,000 1,100
Kinder Morgan Energy Partners
7.300%, 08/15/33 790 875
</Table>
63
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ----------------------------------------------------------------------------------------------------
Northern State Power Company
8.000%, 08/28/12 (A) $ 965 $ 1,183
Oncor Electric Delivery
6.375%, 01/15/15 660 719
ONEOK
7.750%, 08/15/06 125 138
PP&L Capital Funding
8.375%, 06/15/07 500 569
PSI Energy
7.850%, 10/15/07 750 823
Sprint Capital
6.125%, 11/15/08 965 960
------------
10,275
------------
CONVERTIBLE CORPORATE BONDS - 0.1%
Ciena
3.750%, 02/01/08 120 89
Corning
Zero Coupon Bond, 11/08/15 (A) 260 176
------------
265
------------
TOTAL CORPORATE OBLIGATIONS 62,686
------------
U.S. GOVERNMENT & AGENCY SECURITIES - 7.7%
GOVERNMENT AGENCY - 3.8%
FFCB
5.750%, 09/01/05 (A) 500 546
FHLB
6.875%, 08/15/03 1,000 1,021
6.250%, 08/13/04 (A) 3,000 3,197
5.375%, 05/15/06 1,500 1,637
FHLMC
5.950%, 01/19/06 (A) 1,000 1,104
3.250%, 02/25/08 2,000 2,008
5.750%, 04/15/08 600 675
FNMA
5.125%, 02/13/04 (A) 1,000 1,035
6.500%, 08/15/04 500 535
7.125%, 02/15/05 250 275
6.400%, 09/27/05 (A) 500 555
2.750%, 12/16/05 2,210 2,227
7.125%, 03/15/07 2,000 2,334
5.250%, 08/01/12 2,000 2,088
------------
19,237
------------
U.S. TREASURIES - 3.9%
U.S. Treasury Bonds
7.125%, 02/15/23 1,985 2,558
U.S. Treasury Bills
1.290%, 06/05/03 (D) 1,000 998
U.S. Treasury Notes (A)
1.750%, 12/31/04 180 181
1.625%, 01/31/05 3,800 3,812
1.500%, 02/28/05 1,675 1,677
3.000%, 02/15/08 2,000 2,024
3.875%, 02/15/13 1,685 1,692
5.375%, 02/15/31 5,950 6,439
------------
19,381
------------
TOTAL U.S. GOVERNMENT & AGENCY SECURITIES 38,618
------------
MORTGAGE-BACKED OBLIGATIONS - 12.1%
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES - 11.8%
FHLMC Pool
6.500%, 04/01/08, #E00225 88 94
7.000%, 04/01/08, #E46044 $ 44 $ 47
5.500%, 03/01/13, #E00546 552 578
8.600%, 01/15/21, #000085 266 282
6.000%, 09/15/21, #001136 280 290
6.500%, 12/01/28, #C00689 1,471 1,538
6.500%, 11/01/28, #C00676 3,113 3,255
7.000%, 12/01/29, #G01091 881 930
6.000%, 01/01/32, #C62449 238 247
6.000%, 01/01/32, #C62824 27 28
6.000%, 02/01/32, #C01292 27 28
6.000%, 03/01/32, #C01316 591 613
6.000%, 04/01/32, #C65884 410 424
6.000%, 04/01/32, #C65888 134 139
6.000%, 04/01/32, #C66565 416 431
6.000%, 04/01/32, #C66575 139 144
6.000%, 04/01/32, #C01344 697 722
6.000%, 05/01/32, #C66877 28 29
6.000%, 05/01/32, #C01361 509 527
FNMA Pool (A)
6.500%, 01/01/04, #649874 3,528 3,680
5.500%, 03/01/06, #424411 662 685
6.000%, 09/01/17, #653368 4,005 4,191
4.500%, 03/01/18, #00FNMA 2,000 2,027
6.198%, 04/01/18, #070009 107 110
8.800%, 01/25/19, #1989-2 18 20
8.000%, 07/25/19, #198937 263 287
9.500%, 06/25/20, #199063 85 95
6.000%, 10/01/22, #254513 2,206 2,301
7.000%, 04/01/29, #323681 647 684
6.000%, 05/01/29, #323715 2,119 2,202
6.500%, 05/01/32, #640032 2,706 2,823
6.500%, 06/01/32, #647471 2,977 3,105
7.000%, 07/01/32, #545815 1,791 1,888
6.500%, 08/01/32, #656871 4,246 4,429
6.500%, 08/01/32, #658822 2,522 2,631
6.000%, 10/01/32, #661581 4,801 4,976
6.500%, 12/01/32, #669168 1,994 2,080
6.000%, 01/01/33, #676647 2,927 3,034
5.500%, 03/01/33, #689109 3,296 3,365
5.500%, 04/01/33, #694605 2,500 2,552
GNMA Pool
6.500%, 10/20/10, #002108 117 125
6.500%, 06/17/20, #000518 26 28
7.500%, 06/15/27, #447728 87 93
7.500%, 09/15/27, #455516 67 72
7.000%, 04/15/29, #506639 1,050 1,115
------------
58,944
------------
CMO MORTGAGE-BACKED OBLIGATIONS - 0.3%
FHLMC Series 1201, Cl E
7.400%, 12/15/21 14 14
FNMA REMIC Series 1993-210, Cl PL
6.500%, 04/25/23 750 831
FNMA REMIC, Series 1996-21 Cl PK
6.000%, 02/25/11 333 362
FNMA Series 1990-105, Cl J
6.500%, 09/25/20 217 232
FNMA Series 1990-30, Cl E
6.500%, 03/25/20 186 195
FNMA Series 1990-89, Cl K
6.500%, 07/25/20 16 17
------------
1,651
------------
TOTAL MORTGAGE-BACKED OBLIGATIONS 60,595
------------
</Table>
The accompanying notes are an integral part of the financial statements.
64
<Page>
<Table>
<Caption>
DESCRIPTION SHARES/PAR (000) VALUE (000)
- ----------------------------------------------------------------------------------------------------
ASSET-BACKED SECURITIES - 3.5%
AUTOMOBILES - 1.2%
Capital Auto Receivables Asset Trust
2.270%, 01/15/06 $ 1,500 $ 1,512
Ford Credit Auto Owner
5.120%, 10/15/04 1,394 1,409
Union Acceptance 98-B-A5
6.020%, 01/09/06 2,242 2,265
Whole Auto Loan Trust, Series 2002-1, Cl A3
2.600%, 08/15/06 2,500 2,540
------------
7,726
------------
COMMERCIAL - 0.9%
Greenwich Capital Commercial Funding
Series 2002-C1, Cl A4
4.948%, 01/11/35 1,500 1,538
Nomura Asset Securities, Series 1998-D6, Cl A1B
6.590%, 03/15/30 (A) 2,500 2,839
------------
4,377
------------
HOME EQUITY - 1.4%
Contimortgage 1997-5, Cl A5
6.630%, 12/15/20 339 346
Contimortgage
7.120%, 08/15/28 289 305
Countrywide Home Loans, Series K
4.250%, 12/19/07 (A) 1,135 1,164
GE Capital Mortgage Services
7.000%, 06/25/24 2,675 2,742
Merrill Lynch Mortgage Investors
6.310%, 11/15/26 736 780
Wachovia Bank Commercial Mortgage
6.287%, 04/15/34 (A) 2,375 2,656
Wells Fargo Mortgage Backed Securities
4.931%, 02/25/33 2,451 2,516
Westam Mortgage Financial Series 11, Class A
6.360%, 08/29/20 7 7
------------
10,516
------------
TOTAL ASSET-BACKED SECURITIES 22,619
------------
U.S. GOVERNMENT AGENCY BACKED OBLIGATIONS - 0.4%
INTERNATIONAL/YANKEE - 0.4%
Midland Bank
6.950%, 03/15/11 950 1,107
Newcourt Credit Group
6.875%, 02/16/05 1,000 1,057
TransCanada Pipelines
9.125%, 04/20/06 1,000 1,156
------------
3,320
------------
TOTAL U.S. GOVERNMENT AGENCY BACKED OBLIGATIONS 3,320
------------
REGISTERED INVESTMENT COMPANY - 0.0%
iShares S&P SmallCap 600 Index 2,050 187
------------
TOTAL REGISTERED INVESTMENT COMPANY 187
------------
MONEY MARKET FUNDS - 3.2%
SHORT TERM MONEY MARKET FUND - 0.2%
Lindner Government Money Market Fund 850,000 850
------------
RELATED PARTY MONEY MARKET FUND - 3.0%
First American Prime Obligations Fund, Cl Y (B) 14,872,057 14,872
------------
TOTAL MONEY MARKET FUND 15,722
------------
INVESTMENTS PURCHASED WITH CASH PROCEEDS FROM
SECURITIES LENDING - 41.5%
COMMERCIAL PAPER - 5.9%
CS First Boston
1.638%, 12/01/03 $ 3,639 $ 3,639
Danske Bank
1.508%, 12/22/03 3,639 3,639
Goldman Sachs
1.518%, 08/28/03 4,731 4,731
Morgan Stanley
1.518%, 06/17/03 1,819 1,819
1.518%, 07/08/03 1,310 1,310
1.518%, 09/22/03 1,819 1,819
Orchard Park
1.475%, 01/06/04 3,639 3,639
UBS Financial
1.390%, 04/01/03 9,096 9,096
------------
TOTAL COMMERCIAL PAPER 29,692
------------
CORPORATE OBLIGATIONS - 4.5%
CS First Boston
1.760%, 04/11/03 3,639 3,639
Deutsche Bank
1.470%, 03/22/03 1,820 1,820
1.580%, 12/31/03 1,456 1,456
General Electric Capital Corporation
1.355%, 07/09/07 1,819 1,819
Merrill Lynch
1.538%, 05/05/03 3,093 3,093
Monet Trust
1.360%, 12/28/03 3,639 3,639
SMM Trust 2002-M
1.320%, 09/23/03 3,639 3,639
URI Trust
1.329%, 09/18/03 3,639 3,639
------------
TOTAL CORPORATE OBLIGATIONS 22,744
------------
MONEY MARKET FUNDS - 3.9%
AIM Liquid Assets Portfolio 6,186,246 6,186
Dreyfus Cash Manage Plus Fund 363,897 364
Evergreen Institutional Money Market Fund 1,273,639 1,274
HSBC Investor Money Market Fund - Cl I 1,091,690 1,092
Merrill Lynch Premier Institutional Fund 7,048,142 7,048
Merrimac Cash Series Fund 1,091,691 1,092
One Group Institutional Prime Money Market Fund 2,183,381 2,183
Reserve Primary Fund 181,948 182
------------
TOTAL MONEY MARKET FUNDS 19,421
------------
OTHER SHORT-TERM INVESTMENTS - 3.7%
Allied Irish Bank
1.330%, 06/02/03 1,820 1,820
1.340%, 05/09/03 3,639 3,639
Commonwealth Life
1.678%, 04/01/03 1,837 1,837
General Electric Capital Assurance
1.370%, 12/19/03 728 728
Premium Asset Trust 02-7
1.381%, 08/23/03 2,318 2,318
</Table>
65
<Page>
<Table>
<Caption>
DESCRIPTION PAR (000) VALUE (000)
- ----------------------------------------------------------------------------------------------------
Security Life Denver
1.49%, 03/15/04 $ 3,639 $ 3,639
1.381%, 01/13/04 4,731 4,731
TOTAL OTHER SHORT-TERM INVESTMENTS 18,712
------------
REPURCHASE AGREEMENTS - 23.4%
Bear Stearns
1.420%, 04/10/03 7,278 7,278
CS First Boston
1.370%, 04/01/03 7,278 7,278
1.380%, 04/01/03 1,128 1,128
1.380%, 04/01/03 9,097 9,097
Goldman Sachs
1.360%, 06/10/03 1,820 1,820
1.400%, 06/11/03 1,820 1,820
1.420%, 04/07/03 3,639 3,639
1.520%, 04/01/03 5,458 5,458
Greenwich Capital Markets
1.430%, 04/01/03 10,917 10,917
Lehman Brothers
1.560%, 04/01/03 3,639 3,639
1.640%, 04/01/03 2,729 2,729
1.640%, 04/01/03 11,827 11,827
Merrill Lynch
1.560%, 04/01/03 4,549 4,549
1.360%, 04/01/03 10,917 10,917
1.500%, 04/01/03 5,458 5,458
1.560%, 04/01/03 7,278 7,278
Morgan Stanley
1.470%, 04/01/03 5,458 5,458
1.510%, 04/01/03 11,317 11,317
Salomon Smith Barney
1.540%, 04/01/03 $ 5,458 $ 5,458
------------
TOTAL REPURCHASE AGREEMENTS 117,065
------------
TOTAL INVESTMENTS PURCHASED WITH CASH PROCEEDS FROM
SECURITIES LENDING (Cost $207,634) 207,634
------------
TOTAL INVESTMENTS - 142.5%
(Cost $725,576) 713,125
------------
OTHER ASSETS AND LIABILITIES, NET - (42.5)% (212,576)
------------
TOTAL NET ASSETS - 100.0% $ 500,549
------------
</Table>
* Non-income producing security
(A) This security or a portion of this security is out on loan at March 31,
2003. Total loaned securities had a value of $200,387,415 at March 31,
2003. See note 2 in Notes to Financial Statements for additional
information.
(B) This money market fund is advised by U.S. Bancorp Asset Management, Inc.,
which also serves as advisor for this Fund. See note 3 in Notes to
Financial Statements for additional information.
(C) Security is valued at fair value under guidelines establised and approved
by the board of directors. Total fair value securities had a value of
$912,500, which represents 0.2% of total net assets at March 31, 2003. See
note 2 in Notes to Financial Statements for additional information.
(D) Security has been deposited as initial margin on open futures contracts.
Yield shown is effective yield at date of purchase. See note 2 in Notes to
Financial Statements for additional information.
ADR - American Depositary Receipt
Cl - Class
CMO - Collateralized Mortgage Obligation
FFCB - Federal Farm Credit Bank
FHLB - Federal Home Loan Bank
FHLMC - Federal Home Loan Mortgage Corporation
FNMA - Federal National Mortgage Association
GNMA - Government National Mortgage Association
REMIC - Real Estate Mortgage Investment Conduit
The accompanying notes are an integral part of the financial statements.
66
<Page>
EQUITY INCOME FUND
<Table>
<Caption>
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------------------------------------------------------
COMMON STOCKS - 92.8%
CONSUMER DISCRETIONARY - 8.2%
Gannett (A) 186,100 $ 13,107
Home Depot (A) 448,160 10,917
Newell Rubbermaid 217,000 6,152
Omnicom Group (A) 213,600 11,571
Starwood Hotels & Resorts Worldwide 497,150 11,827
Target (A) 487,200 14,255
Wal-Mart Stores (A) 372,080 19,359
Walt Disney (A) 799,600 13,609
------------
100,797
------------
CONSUMER STAPLES - 6.4%
Altria Group 275,190 8,245
Anheuser-Busch 255,010 11,886
Coca-Cola 447,220 18,103
General Mills (A) 331,150 15,084
PepsiCo (A) 293,620 11,745
Procter & Gamble (A) 140,920 12,549
------------
77,612
------------
ENERGY - 7.5%
BP, ADR (A) 309,096 11,928
Exxon Mobil 614,082 21,462
Halliburton (A) 582,000 12,065
Kerr-McGee 273,950 11,125
Royal Dutch Petroleum, ADR 633,500 25,815
Unocal 363,300 9,558
------------
91,953
------------
FINANCIALS - 24.6%
Alliance Capital Management 419,300 12,076
AMB Property 319,350 9,022
American Express 271,620 9,026
American International Group (A) 233,750 11,559
Archstone-Smith Trust (A) 164,900 3,621
Bank of America 284,724 19,031
Camden Property Trust (REIT) (A) 56,900 1,844
Chubb (A) 230,500 10,216
Citigroup 956,071 32,937
Crescent Real Estate 101,700 1,462
Duke Realty 195,172 5,266
Equity Residential Properties Trust (REIT) (A) 57,900 1,394
Fannie Mae 242,470 15,845
Hartford Financial Services Group (A) 270,410 9,543
Healthcare Realty Trust 115,700 2,825
J. P. Morgan Chase (A) 684,500 16,230
Kimco Realty (A) 47,400 1,665
Legg Mason (A) 197,525 9,627
Manufactured Home Communities 122,550 3,627
Marsh & McLennan (A) 268,150 11,431
Mellon Financial 459,950 9,779
Merrill Lynch (A) 333,250 11,797
Morgan Stanley 378,850 14,529
Northern Trust (A) 317,375 9,664
Simon Property Group (A) 137,200 4,916
SouthTrust (A) 478,450 12,215
St. Paul Companies (A) 370,060 11,768
Wachovia 363,800 12,395
Wells Fargo 285,860 12,861
Zions Bancorporation 290,750 12,438
------------
300,609
------------
HEALTH CARE - 12.4%
Abbott Laboratories 404,520 $ 15,214
Baxter International (A) 593,180 11,057
Cigna (A) 348,800 15,947
Eli Lilly 99,300 5,675
Johnson & Johnson (A) 205,390 11,886
McKesson HBOC 395,550 9,861
Pfizer (A) 1,117,642 34,826
Pharmacia 419,122 18,148
Schering-Plough 709,810 12,656
Wyeth (A) 418,080 15,812
------------
151,082
------------
INDUSTRIALS - 13.0%
3M (A) 191,000 24,836
Automatic Data Processing 287,560 8,854
Avery Dennison 40,604 2,382
Boeing (A) 453,010 11,352
Caterpillar (A) 424,050 20,863
Emerson Electric (A) 257,300 11,669
General Dynamics 177,980 9,801
General Electric 961,350 24,514
Honeywell International (A) 647,330 13,827
Ingersoll-Rand, Cl A 470,400 18,153
Knightsbridge Tanker (A) 100,750 1,370
United Parcel Service (A) 206,690 11,781
------------
159,402
------------
INFORMATION TECHNOLOGY - 8.1%
Electronic Data Systems (A) 736,480 12,962
Hewlett-Packard (A) 853,605 13,274
IBM 227,170 17,817
Intel 622,230 10,130
Microsoft (A) 996,400 24,123
QUALCOMM (A) 167,900 6,054
SAP (A) 457,900 8,682
Texas Instruments 364,000 5,959
------------
99,001
------------
MATERIALS - 3.9%
Alcoa (A) 235,550 4,565
Dow Chemical 228,650 6,313
E.I. du pont de Nemours (A) 331,330 12,875
Ecolab 122,720 6,054
Praxair 318,850 17,967
------------
47,774
------------
TELECOMMUNICATION SERVICES - 5.0%
ALLTEL 160,100 7,166
BellSouth 555,750 12,043
SBC Communications 777,000 15,587
Sprint (A) 433,150 5,090
Verizon Communications (A) 601,360 21,258
------------
61,144
------------
UTILITIES - 3.7%
Cinergy (A) 449,250 15,117
CLECO (A) 635,750 7,979
Duke Energy (A) 486,200 7,069
</Table>
67
<Page>
<Table>
<Caption>
DESCRIPTION SHARES/PAR (000) VALUE (000)
- ----------------------------------------------------------------------------------------------------
National Fuel Gas (A) 52,000 $ 1,137
Pinnacle West Capital 422,350 14,039
------------
45,341
------------
TOTAL COMMON STOCKS 1,134,715
------------
CONVERTIBLE PREFERRED STOCK - 0.6%
Lucent Technologies (A) 8,670 7,328
------------
TOTAL CONVERTIBLE PREFERRED STOCK 7,328
------------
CORPORATE BONDS - 0.8%
Nortel Networks
6.125%, 02/15/06 (A) $ 10,604 9,703
------------
TOTAL CORPORATE BONDS 9,703
------------
CONVERTIBLE CORPORATE BONDS - 2.7%
Adelphia Communications
6.000%, 02/15/06 (A) 5,800 348
Charter Communications
5.750%, 10/15/05 (A) 9,520 1,991
Interpublic Group
1.800%, 09/16/04 (A) 3,770 3,521
Nextel Communications
6.000%, 06/01/11 (A) 5,416 5,301
6.000%, 06/01/11 (A) 522 511
Protein Design Labs
5.500%, 02/15/07 1,928 1,687
Tower Automotive
5.000%, 08/01/04 (A) 3,855 3,352
Tribune
2.000%, 05/15/29 218 16,583
------------
TOTAL CONVERTIBLE CORPORATE BONDS 33,294
------------
RELATED PARTY MONEY MARKET FUND - 2.6%
First American Prime Obligations Fund, Cl Y (B) 32,240,537 32,240
------------
TOTAL RELATED PARTY MONEY MARKET FUND 32,240
------------
INVESTMENTS PURCHASED WITH CASH PROCEEDS FROM
SECURITIES LENDING - 38.1%
COMMERCIAL PAPER - 5.4%
CS First Boston
1.638%, 12/01/03 8,165 8,165
Danske Bank
1.508%, 12/22/03 8,165 8,165
Goldman Sachs
1.518%, 08/28/03 10,614 10,614
Morgan Stanley
1.518%, 06/17/03 4,082 4,082
1.518%, 07/08/03 2,939 2,939
1.518%, 09/22/03 4,082 4,082
Orchard Park
1.475%, 01/06/04 8,165 8,165
UBS Financial
1.390%, 04/01/03 20,409 20,409
------------
TOTAL COMMERCIAL PAPER 66,621
------------
CORPORATE OBLIGATIONS - 4.2%
CS First Boston
1.760%, 04/11/03 8,165 8,165
Deutsche Bank
1.470%, 03/22/03 4,082 4,082
1.580%, 12/31/03 3,266 3,266
General Electric Capital Corporation
1.355%, 07/09/07 4,082 4,082
Merrill Lynch
1.538%, 05/05/03 $ 6,940 $ 6,940
Monet Trust
1.360%, 12/28/03 8,165 8,165
SMM Trust 2002-M
1.320%, 09/23/03 8,165 8,165
URI Trust
1.329% 09/18/03 8,165 8,165
------------
TOTAL CORPORATE OBLIGATIONS 51,030
------------
MONEY MARKET FUNDS - 3.6%
AIM Liquid Assets Portfolio 13,880,040 13,880
Dreyfus Cash Manage Plus Fund 816,473 816
Evergreen Institutional Money Market Fund 2,857,655 2,858
HSBC Investor Money Market Fund - Cl I 2,449,419 2,449
Merrill Lynch Premier Institutional Fund 15,813,870 15,814
Merrimac Cash Series Fund 2,449,419 2,449
One Group Institutional Prime Money Market Fund 4,898,838 4,899
Reserve Primary Fund 408,236 408
------------
TOTAL MONEY MARKET FUNDS 43,573
------------
OTHER SHORT-TERM INVESTMENTS - 3.4%
Allied Irish Bank
1.330%, 06/02/03 4,082 4,082
1.340%, 05/09/03 8,165 8,165
Commonwealth Life
1.678%, 04/01/03 4,122 4,122
General Electric Capital Assurance
1.370%, 12/19/03 1,633 1,633
Premium Asset Trust 02-7
1.381%, 08/23/03 5,201 5,201
Security Life Denver
1.49%, 03/15/04 8,165 8,165
1.381%, 01/13/04 10,614 10,614
------------
TOTAL OTHER SHORT-TERM INVESTMENTS 41,982
------------
REPURCHASE AGREEMENTS - 21.5%
Bear Stearns
1.420%, 04/10/03 16,330 16,330
CS First Boston
1.370%, 04/01/03 16,330 16,330
1.380%, 04/01/03 2,531 2,531
1.380%, 04/01/03 20,412 20,412
Goldman Sachs
1.360%, 06/10/03 4,082 4,082
1.400%, 06/11/03 4,082 4,082
1.420%, 04/07/03 8,165 8,165
1.520%, 04/01/03 12,247 12,247
Greenwich Capital Markets
1.430%, 04/01/03 24,494 24,494
Lehman Brothers
1.560%, 04/01/03 8,165 8,165
1.640%, 04/01/03 6,124 6,124
1.640%, 04/01/03 26,535 26,535
Merrill Lynch
1.560%, 04/01/03 10,206 10,206
1.360%, 04/01/03 24,494 24,494
1.500%, 04/01/03 12,247 12,247
1.560%, 04/01/03 16,330 16,330
Morgan Stanley
1.470%, 04/01/03 12,247 12,247
1.510%, 04/01/03 25,392 25,392
</Table>
The accompanying notes are an integral part of the financial statements.
68
<Page>
<Table>
<Caption>
DESCRIPTION PAR(000) VALUE (000)
- ----------------------------------------------------------------------------------------------------
Salomon Smith Barney
1.540%, 04/01/03 $ 12,247 $ 12,247
------------
TOTAL REPURCHASE AGREEMENTS 262,660
------------
TOTAL INVESTMENTS PURCHASED WITH CASH PROCEEDS FROM
SECURITIES LENDING (Cost $465,866) 465,866
------------
TOTAL INVESTMENTS - 137.6%
(Cost $1,811,563) 1,683,146
------------
OTHER ASSETS AND LIABILITIES, NET - (37.6)% (460,170)
------------
TOTAL NET ASSETS - 100.0% $ 1,222,976
------------
</Table>
(A) This security or a portion of this security is out on loan at March 31,
2003. Total loaned securities had a value of $442,245,958 at March 31,
2003. See note 2 in Notes to Financial Statements for additional
information.
(B) This money market fund is advised by U.S. Bancorp Asset Management, Inc.,
which also serves as advisor for this Fund. See note 3 in Notes to
Financial Statements for additional information.
ADR - American Depositary Receipt
Cl - Class
REIT - Real Estate Investment Trust
69
<Page>
STATEMENT OF ASSETS AND LIABILITIES March 31, 2003 (unaudited), in thousands,
except per share data
<Table>
<Caption>
BALANCED EQUITY
FUND INCOME FUND
- ------------------------------------------------------------------------------------------------------------
ASSETS:
Investments in securities, at value *+ $ 713,125 $ 1,683,146
Cash -- 2,411
Dividends and interest receivable 1,891 2,197
Receivable for investment securities sold 5,874 11,570
Capital shares sold 290 805
Prepaid expenses and other assets 27 46
- ------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 721,207 1,700,175
============================================================================================================
LIABILITIES:
Payable for investment securities purchased 11,839 9,556
Payable upon return of securities loaned 207,634 465,866
Capital shares redeemed 635 807
Payable for advisory, co-administration, and custodian fees 330 912
Variation margin payable 162 --
Distribution and shareholder servicing fees 58 58
- ------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 220,658 477,199
============================================================================================================
NET ASSETS $ 500,549 $ 1,222,976
============================================================================================================
COMPOSITION OF NET ASSETS:
Portfolio capital $ 608,003 $ 1,380,039
Undistributed (distributions in excess of) net investment income 159 (245)
Accumulated net realized loss on investments (95,660) (28,401)
Net unrealized depreciation of investments (12,451) (128,417)
Net unrealized appreciation of futures contracts 498 --
- ------------------------------------------------------------------------------------------------------------
NET ASSETS $ 500,549 $ 1,222,976
============================================================================================================
*Investments in securities, at cost $ 725,576 $ 1,811,563
+Including securities loaned $ 200,387 $ 442,246
CLASS A:
Net assets $ 93,143 $ 121,971
Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 10,899 12,523
Net asset value, offering price and redemption price per share $ 8.55 $ 9.74
Maximum offering price per share(1) $ 9.05 $ 10.31
CLASS B:
Net assets $ 32,427 $ 17,755
Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 3,821 1,833
Net asset value, offering price, and redemption price per share(2) $ 8.49 $ 9.68
CLASS C:
Net assets $ 6,970 $ 16,064
Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 818 1,656
Net asset value, offering price and redemption price per share (2) $ 8.52 $ 9.70
Maximum offering price per share(3) $ 8.61 $ 9.80
CLASS S:
Net assets $ 23,099 $ 15,015
Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 2,699 1,541
Net asset value, offering price, and redemption price per share $ 8.56 $ 9.74
CLASS Y:
Net assets $ 344,910 $ 1,052,171
Shares issued and outstanding ($0.0001 par value -- 2 billion authorized) 40,258 107,393
Net asset value, offering price, and redemption price per share $ 8.57 $ 9.80
- ------------------------------------------------------------------------------------------------------------
</Table>
(1) The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 5.50%
(2) Class B and C have a contingent deferred sales charge. For a description of
this sales charge, see notes 1 and 3 in Notes to Financial Statements.
(3) The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 1.00%
The accompanying notes are an integral part of the financial statements.
70
<Page>
STATEMENTS OF OPERATIONS For the six months ended March 31, 2003 (unaudited), in
thousands
<Table>
<Caption>
BALANCED EQUITY
FUND INCOME FUND
- ------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest $ 5,532 $ 2,069
Dividends 1,909 15,202
Less: Foreign taxes withheld -- (23)
Securities lending 76 160
Other income 22 1
- ------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 7,539 17,409
============================================================================================================
EXPENSES:
Investment advisory fees 1,688 3,820
Co-administration fees and expenses (including per account transfer agency fees) 733 1,641
Custodian fees 26 59
Directors' fees 4 8
Registration fees 15 8
Professional fees 6 15
Other 5 13
Printing 9 22
Distribution and shareholder servicing fees - Class A 123 164
Distribution and shareholder servicing fees - Class B 174 95
Distribution and shareholder servicing fees - Class C 30 77
Shareholder servicing fees - Class S 40 34
- ------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES 2,853 5,956
============================================================================================================
Less: Waiver of expenses (408) (297)
- ------------------------------------------------------------------------------------------------------------
TOTAL NET EXPENSES 2,445 5,659
============================================================================================================
INVESTMENT INCOME - NET 5,094 11,750
============================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS - NET:
Net realized gain (loss) on investments (12,974) 20,875
Net realized gain on futures contracts 342 --
Net change in unrealized appreciation or depreciation of investments 19,245 (39,871)
Net change in unrealized appreciation or depreciation of futures contracts 498 --
- ------------------------------------------------------------------------------------------------------------
NET GAIN (LOSS) ON INVESTMENTS 7,111 (18,996)
============================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 12,205 $ (7,246)
============================================================================================================
</Table>
The accompanying notes are an integral part of the financial statements.
71
<Page>
STATEMENTS OF CHANGES IN NET ASSETS in thousands
<Table>
<Caption>
BALANCED EQUITY
FUND INCOME FUND
- ---------------------------------------------------------------------------------------------------------------------------------
10/1/02 10/1/01 10/1/02 10/1/01
TO TO TO TO
3/31/03 9/30/02 3/31/03 9/30/02
- ---------------------------------------------------------------------------------------------------------------------------------
(UNAUDITED) (UNAUDITED)
OPERATIONS:
Investment income - net $ 5,094 $ 12,387 $ 11,750 $ 10,526
Net realized gain (loss) on investments (12,974) (34,657) 20,875 (23,793)
Net realized gain on futures contracts 342 -- -- --
Net change in unrealized appreciation or depreciation of investments 19,245 (27,073) (39,871) (243,559)
Net change in unrealized appreciation or depreciation of futures contracts 498 -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations 12,205 (49,343) (7,246) (256,826)
- ---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net:
Class A (877) (2,574) (1,187) (1,100)
Class B (181) (616) (101) (139)
Class C (39) (35) (90) (106)
Class S (298) (831) (250) (232)
Class Y (3,630) (8,345) (10,135) (8,862)
Net realized gain on investments:
Class A -- -- -- (93)
Class B -- -- -- (43)
Class C -- -- -- (34)
Class S -- -- -- (1)
Class Y -- -- -- (1,077)
- ---------------------------------------------------------------------------------------------------------------------------------
Total distributions (5,025) (12,401) (11,763) (11,687)
=================================================================================================================================
CAPITAL SHARE TRANSACTIONS(1):
Class A:
Proceeds from sales 3,030 6,899 6,610 13,653
Reinvestment of distributions 849 2,480 1,095 1,026
Payments for redemptions (11,351) (25,212) (16,269) (16,103)
Shares issued in connection with the acquisition of Fund net assets -- -- -- 147,414
- ---------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class A transactions (7,472) (15,833) (8,564) 145,990
- ---------------------------------------------------------------------------------------------------------------------------------
Class B:
Proceeds from sales 987 3,418 1,406 5,795
Reinvestment of distributions 175 597 94 171
Payments for redemptions (5,126) (10,679) (2,779) (4,480)
Shares issued in connection with the acquisition of Fund net assets -- -- -- 11,567
- ---------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class B transactions (3,964) (6,664) (1,279) 13,053
- ---------------------------------------------------------------------------------------------------------------------------------
Class C:
Proceeds from sales 6,180 1,063 7,546 9,021
Reinvestment of distributions 39 35 90 140
Payments for redemptions (1,350) (896) (2,641) (3,279)
Shares issued in connection with the acquisition of Fund net assets -- -- -- 299
- ---------------------------------------------------------------------------------------------------------------------------------
Increase in net assets from Class C transactions 4,869 202 4,995 6,181
- ---------------------------------------------------------------------------------------------------------------------------------
Class S:
Proceeds from sales 8,667 16,014 9,033 5,298
Reinvestment of distributions 298 819 243 229
Payments for redemptions (23,040) (15,364) (32,699) (3,812)
Shares issued in connection with the acquisition of Fund net assets -- -- -- 46,472
- ---------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class S transactions (14,075) 1,469 (23,423) 48,187
- ---------------------------------------------------------------------------------------------------------------------------------
Class Y:
Proceeds from sales 118,232 69,124 253,361 336,498
Reinvestment of distributions 3,424 7,665 4,080 3,507
Payments for redemptions (70,558) (123,896) (119,120) (132,012)
Shares issued in connection with the acquisition of
Fund net assets -- -- -- 408,205
Shares issued in connection with the acquisition of
Common Trust Fund net assets -- -- 259,049 --
- ---------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class Y transactions 51,098 (47,107) 397,370 616,198
- ---------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital share transactions 30,456 (67,933) 369,099 829,609
- ---------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 37,636 (129,677) 350,090 561,096
NET ASSETS AT BEGINNING OF PERIOD 462,913 592,601 872,886 311,790
=================================================================================================================================
NET ASSETS AT END OF PERIOD $ 500,549 $ 462,913 $1,222,976 $ 872,886
=================================================================================================================================
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT
INCOME AT END OF PERIOD $ 159 $ 90 $ (245) $ (232)
=================================================================================================================================
</Table>
(1) See note 4 in Notes to Financial Statements for additional information.
The accompanying notes are an integral part of the financial statements.
72
<Page>
(This page has been left blank intentionally.)
<Page>
FINANCIAL HIGHLIGHTS For a share outstanding throughout the periods ended
September 30, unless otherwise indicated.
<Table>
<Caption>
REALIZED AND
NET ASSET UNREALIZED DIVIDENDS NET ASSET
VALUE NET GAINS OR FROM NET DISTRIBUTIONS VALUE
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT FROM END OF
OF PERIOD INCOME INVESTMENTS INCOME CAPITAL GAINS PERIOD
- ---------------------------------------------------------------------------------------------------------
BALANCED FUND(1)
Class A
2003(9) $ 8.38 $ 0.08 $ 0.17 $ (0.08) $ -- $ 8.55
2002(2) 9.50 0.20 (1.12) (0.20) -- 8.38
2001(2)(3) 13.83 0.18 (2.24) (0.20) (2.07) 9.50
2000 12.39 0.23 2.12 (0.22) (0.69) 13.83
1999 12.30 0.20 0.49 (0.20) (0.40) 12.39
1998 12.57 0.23 0.77 (0.24) (1.03) 12.30
Class B
2003(9) $ 8.32 $ 0.05 $ 0.17 $ (0.05) $ -- $ 8.49
2002(2) 9.44 0.13 (1.12) (0.13) -- 8.32
2001(2)(3) 13.75 0.17 (2.29) (0.13) (2.06) 9.44
2000 12.33 0.13 2.11 (0.14) (0.68) 13.75
1999(4) 12.37 0.07 (0.04) (0.07) -- 12.33
Class C
2003(9) $ 8.35 $ 0.05 $ 0.17 $ (0.05) $ -- $ 8.52
2002(2) 9.49 0.13 (1.12) (0.13) -- 8.35
2001(2)(6) 9.29 -- 0.20 -- -- 9.49
Class S
2003(9) $ 8.39 $ 0.07 $ 0.17 $ (0.07) $ -- $ 8.56
2002(2) 9.50 0.20 (1.12) (0.19) -- 8.39
2001(2)(5) 11.27 0.18 (1.74) (0.21) -- 9.50
Class Y
2003(9) $ 8.40 $ 0.09 $ 0.17 $ (0.09) $ -- $ 8.57
2002(2) 9.53 0.23 (1.13) (0.23) -- 8.40
2001(2)(3) 13.87 0.16 (2.20) (0.23) (2.07) 9.53
2000 12.43 0.26 2.13 (0.26) (0.69) 13.87
1999 12.32 0.24 0.49 (0.23) (0.39) 12.43
1998 12.59 0.26 0.77 (0.27) (1.03) 12.32
- ---------------------------------------------------------------------------------------------------------
EQUITY INCOME FUND
Class A
2003(2)(9) $ 9.58 $ 0.09 $ 0.16 $ (0.09) $ -- $ 9.74
2002(2) 12.13 0.16 (2.48) (0.19) (0.04) 9.58
2001(2) 16.29 0.29 (0.74) (0.32) (3.39) 12.13
2000 15.94 0.28 1.45 (0.28) (1.10) 16.29
1999 15.70 0.36 1.15 (0.37) (0.90) 15.94
1998 15.69 0.41 0.86 (0.41) (0.85) 15.70
Class B
2003(2)(9) $ 9.52 $ 0.05 $ 0.16 $ (0.05) $ -- $ 9.68
2002(2) 12.07 0.09 (2.49) (0.11) (0.04) 9.52
2001(2) 16.24 0.18 (0.75) (0.21) (3.39) 12.07
2000 15.90 0.18 1.44 (0.18) (1.10) 16.24
1999 15.65 0.24 1.16 (0.25) (0.90) 15.90
1998 15.62 0.30 0.87 (0.29) (0.85) 15.65
Class C
2003(2)(9) $ 9.54 $ 0.05 $ 0.16 $ (0.05) $ -- $ 9.70
2002(2) 12.09 0.10 (2.50) (0.11) (0.04) 9.54
2001(2) 16.28 0.18 (0.76) (0.22) (3.39) 12.09
2000 15.93 0.19 1.44 (0.18) (1.10) 16.28
1999(7) 16.62 0.21 (0.70) (0.20) -- 15.93
Class S(2)
2003(9) $ 9.57 $ 0.10 $ 0.16 $ (0.09) $ -- $ 9.74
2002 12.12 0.15 (2.47) (0.19) (0.04) 9.57
2001(6) 11.57 0.01 0.54 -- -- 12.12
Class Y
2003(2)(9) $ 9.63 $ 0.10 $ 0.17 $ (0.10) $ -- $ 9.80
2002(2) 12.20 0.21 (2.52) (0.22) (0.04) 9.63
2001(2) 16.37 0.33 (0.76) (0.35) (3.39) 12.20
2000 16.00 0.32 1.47 (0.32) (1.10) 16.37
1999 15.74 0.40 1.17 (0.41) (0.90) 16.00
1998 15.70 0.46 0.88 (0.45) (0.85) 15.74
- ---------------------------------------------------------------------------------------------------------
</Table>
The accompanying notes are an integral part of the financial statements.
74
<Page>
<Table>
<Caption>
RATIO OF RATIO OF NET
RATIO OF NET EXPENSES TO INVESTMENT
RATIO OF INVESTMENT AVERAGE INCOME
NET ASSETS EXPENSES TO INCOME NET ASSETS TO AVERAGE NET PORTFOLIO
TOTAL END OF AVERAGE TO AVERAGE (EXCLUDING ASSETS (EXCLUD- TURNOVER
RETURN(8) PERIOD (000) NET ASSETS NET ASSETS WAIVERS) ING WAIVERS) RATE
- --------------------------------------------------------------------------------------------------------------------------
BALANCED FUND (1)
Class A
2003(9) 2.94% $ 93,143 1.05% 1.85% 1.21% 1.69% 83%
2002(2) (9.90) 98,557 1.05 2.07 1.23 1.89 79
2001(2)(3) (17.03) 127,590 1.22 1.96 1.28 1.90 54
2000 19.46 54,380 1.22 1.66 1.28 1.60 79
1999 5.56 53,807 1.18 1.59 1.25 1.52 69
1998 8.60 59,657 1.00 1.91 1.24 1.67 56
Class B
2003(9) 2.58% $ 32,427 1.80% 1.10% 1.96% 0.94% 83%
2002(2) (10.64) 35,641 1.80 1.32 1.98 1.14 79
2001(2)(3) (17.64) 47,150 1.93 1.22 1.99 1.16 54
2000 18.77 2,243 1.97 0.91 2.03 0.85 79
1999(4) 0.25 630 1.97 0.87 2.03 0.81 69
Class C
2003(9) 2.48% $ 6,970 1.80% 1.10% 1.96% 0.94% 83%
2002(2) (10.77) 2,233 1.80 1.32 1.98 1.14 79
2001(2)(6) 2.15 2,351 0.94 2.20 0.94 2.20 54
Class S
2003(9) 2.93% $ 23,099 1.05% 1.87% 1.21% 1.71% 83%
2002(2) (9.90) 36,194 1.05 2.07 1.23 1.89 79
2001(2)(5) (14.03) 39,527 1.22 1.94 1.28 1.88 54
Class Y
2003(9) 3.06% $ 344,910 0.80% 2.10% 0.96% 1.94% 83%
2002(2) (9.74) 290,288 0.80 2.32 0.98 2.14 79
2001(2)(3) (16.84) 375,983 0.97 2.21 1.04 2.14 54
2000 19.94 163,158 0.97 1.91 1.03 1.85 79
1999 5.87 180,737 0.93 1.84 1.00 1.77 69
1998 8.83 188,123 0.75 2.16 0.99 1.92 56
- --------------------------------------------------------------------------------------------------------------------------
EQUITY INCOME FUND
Class A
2003(2)(9) 2.70% $ 121,971 1.15% 1.83% 1.20% 1.78% 27%
2002(2) (19.51) 128,142 1.15 1.43 1.20 1.38 38
2001(2) (3.89) 24,557 1.00 1.97 1.15 1.82 33
2000 11.11 20,607 1.00 1.69 1.14 1.55 36
1999 9.74 18,970 1.00 2.01 1.13 1.88 35
1998 8.38 11,018 1.00 2.58 1.12 2.46 14
Class B
2003(2)(9) 2.22% $ 17,755 1.90% 1.08% 1.95% 1.03% 27%
2002(2) (20.10) 18,699 1.90 0.80 1.95 0.75 38
2001(2) (4.64) 11,516 1.75 1.20 1.90 1.05 33
2000 10.35 10,366 1.75 0.95 1.89 0.81 36
1999 9.10 10,971 1.75 1.34 1.88 1.21 35
1998 7.77 8,570 1.75 1.81 1.87 1.69 14
Class C
2003(2)(9) 2.24% $ 16,064 1.90% 1.08% 1.95% 1.03% 27%
2002(2) (20.08) 11,171 1.90 0.86 1.95 0.81 38
2001(2) (4.74) 8,028 1.75 1.20 1.90 1.05 33
2000 10.41 2,511 1.75 0.88 1.89 0.74 36
1999(7) (3.02) 1,700 1.76 0.65 1.88 0.53 35
Class S(2)
2003(9) 2.67% $ 15,015 1.15% 1.92% 1.20% 1.87% 27%
2002 (19.47) 36,522 1.15 1.34 1.20 1.29 38
2001(6) 4.75 328 1.23 4.08 1.42 3.89 33
Class Y
2003(2)(9) 2.81% $ 1,052,171 0.90% 2.05% 0.95% 2.00% 27%
2002(2) (19.30) 678,352 0.90 1.80 0.95 1.75 38
2001(2) (3.71) 267,361 0.75 2.21 0.90 2.06 33
2000 11.46 275,436 0.75 1.99 0.89 1.85 36
1999 10.10 350,775 0.75 2.38 0.88 2.25 35
1998 8.85 359,588 0.75 2.81 0.87 2.69 14
- --------------------------------------------------------------------------------------------------------------------------
</Table>
(1) The financial highlights for the Balanced Fund as set forth herein include
the historical financial highlights of the Firstar Balanced Growth Fund.
The assets of the Firstar Fund were acquired by the First American Balanced
Fund on September 24, 2001. In connection with such acquisition, (i) Class
A shares of the Firstar Balanced Growth Fund were exchanged for Class A
shares of the First American Balanced Fund, (ii) Firstar Class B shares
were exchanged for Class B shares of the First American Fund, (iii) Firstar
Class Y shares were exchanged for Class S shares of the First American
Fund, and (iv) Firstar Class Institutional shares were exchanged for Class
Y shares of the First American Fund. Historical per share amounts have been
adjusted to reflect the conversion ratios utilized for the merger of the
Balanced Fund and Firstar Balanced Growth Fund. Firstar Balanced Growth
Fund is the accounting survivor.
(2) Per share data calculated using average shares outstanding method.
(3) Effective in 2001, the Fund's fiscal year end was changed from October 31
to September 30. All ratios for the period have been annualized, except
total return and portfolio turnover.
(4) Class of shares has been offered since March 1, 1999. All ratios for the
period have been annualized, except total return and portfolio turnover.
(5) Class of shares has been offered since November 27, 2000. All ratios for
the period have been annualized, except total return and portfolio
turnover. (6) Class of shares has been offered since September 24, 2001.
All ratios for the period have been annualized, except total return and
portfolio turnover.
(7) Class of shares has been offered since February 1, 1999. All ratios for the
period have been annualized, except total return and portfolio turnover.
(8) Total return does not include sales charges. Total return would have been
lower had certain expenses not been waived.
(9) For the six months ended March 31, 2003 (unaudited). All ratios for the
period have been annualized, except total return and portfolio
turnover.
75
<Page>
NOTES TO FINANCIAL STATEMENTS March 31, 2003 (unaudited)
1. ORGANIZATION
The First American Real Estate Securities Fund, Technology Fund,
International Fund, Small Cap Growth Opportunities Fund, Small Cap Select
Fund, Small Cap Value Fund, Mid Cap Growth Opportunities Fund, Mid Cap
Value Fund, Large Cap Growth Opportunities Fund, Large Cap Select Fund,
Large Cap Value Fund, Balanced Fund, and Equity Income Fund (each a "Fund"
and collectively, the "Funds") are mutual funds offered by First American
Investment Funds, Inc. ("FAIF"), which is a member of the First American
Family of Funds. FAIF currently offers 37 funds, including the Funds listed
above. FAIF is registered under the Investment Company Act of 1940, as
amended, as an open-end management investment company. FAIF's articles of
incorporation permit the Fund's board of directors to create additional
funds in the future.
The Funds offer Class A, Class B, Class C, Class S, and Class Y shares.
Class A shares are sold with a front-end sales charge. 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
are sold with a front-end sales charge, may be subject to a contingent
deferred sales charge for 18 months, and will not convert to Class A
shares. Class S shares have no sales charge and are offered only through
banks and other financial institutions. Class Y shares have no sales charge
and are offered only to qualifying institutional investors.
The Funds' prospectuses provide descriptions of each Fund's investment
objectives, policies, and strategies. All classes of shares of a Fund have
identical voting, dividend, liquidation, and other rights, and the same
terms and conditions, except that the level of distribution and shareholder
servicing fees charged may differ among classes.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies followed by the Funds are as follows:
SECURITY VALUATION - Security valuations for the Funds' investments are
furnished by independent pricing services that have been approved by the
Funds' board of directors. Investments in equity securities that are traded
on a national securities exchange (or reported on the NASDAQ national
market system) are stated at the last quoted sales price if readily
available for such securities on each business day. Other equity securities
traded in the over-the-counter market and listed equity securities for
which no sale was reported on that date are stated at the last quoted bid
price. Debt obligations exceeding 60 days to maturity are valued by an
independent pricing service. The pricing service may employ methodologies
that utilize actual market transactions, broker-dealer supplied valuations,
or other formula-driven valuation techniques. These techniques generally
consider such factors as yields or prices of bonds of comparable quality,
type of issue, coupon, maturity, ratings, and general market conditions.
Securities for which prices are not available from an independent pricing
service but where an active market exists are valued using market
quotations obtained from one or more dealers that make markets in the
securities or from a widely-used quotation system. When market quotations
are not readily available, securities are valued at fair value as
determined in good faith by procedures established and approved by the
Funds' board of directors. As of March 31, 2003, Real Estate Securities
Fund, International Fund, Small Cap Growth Opportunities Fund, Mid Cap
Growth Opportunities Fund, Mid Cap Value Fund, and Balanced Fund held fair
value securities with a market value of $545,469, $0, $122,540, $0, $0, and
$912,500, respectively. Debt obligations with 60 days or less remaining
until maturity may be valued at their amortized cost. Foreign securities
are valued at the closing prices on the principal exchange on which they
trade. The prices for foreign securities are reported in local currency and
converted to U.S. dollars using currency exchange rates. Exchange rates are
provided daily by recognized independent pricing agents.
SECURITY TRANSACTIONS AND INVESTMENT INCOME - The Funds record security
transactions on the trade date of the security purchase or sale. Dividend
income is recorded on the ex-dividend date. Interest income, including
amortization of bond premium and discount, is recorded on the accrual
basis. Security gains and losses are determined on the basis of identified
cost, which is the same basis used for federal income-tax purposes.
DISTRIBUTIONS TO SHAREHOLDERS - Balanced Fund, Equity Income Fund, Large
Cap Growth Opportunities Fund, Large Cap Select Fund, Large Cap Value Fund,
Mid Cap Growth Opportunities Fund, and Mid Cap Value Fund declare and pay
income dividends monthly. Small Cap Growth Opportunities Fund, Small Cap
Select Fund, Small Cap Value Fund, Real Estate Securities Fund, and
Technology Fund declare and pay income dividends quarterly. International
Fund declares and pays income dividends annually.
76
<Page>
Due to the nature of the dividends received by the Real Estate Securities
Fund on its securities holdings, a portion of the quarterly distributions
of the Real Estate Securities Fund may be a return of capital. Any net
realized capital gains on sales of a Fund's securities are distributed to
shareholders at least annually.
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.
Net investment income and net realized gains (losses) may differ for
financial statement and tax purposes because of temporary or permanent
book/tax differences. These differences are primarily due to post-October
losses, losses deferred due to wash sales, proceeds from securities
litigation, foreign currency gains and losses, investments in limited
partnerships and REITs, and the "mark-to-market" of certain Passive Foreign
Investment Companies (PFICs) for tax purposes.
To the extent these differences are permanent, adjustments are made to the
appropriate equity accounts in the period that the difference arises.
The character of distributions made during the year from net investment
income or net realized gains may differ from its ultimate characterization
for federal income tax purposes. In addition, due to the timing of dividend
distributions, the fiscal year in which the amounts are distributed may
differ from the year that the income or realized gains (losses) were
recorded by the Fund.
The character of the distributions paid during the six months ended March
31, 2003 (estimated), and the fiscal year ended September 30, 2002, were as
follows:
<Table>
<Caption>
2003
ORDINARY LONG TERM RETURN OF TOTAL
FUND INCOME (000) GAIN (000) CAPITAL (000) (000)
-----------------------------------------------------------------------------------
Real Estate Securities Fund $ 4,053 $ 3,971 $ -- $ 8,024
Technology Fund -- -- -- --
International Fund -- -- -- --
Small Cap Growth
Opportunities Fund -- -- -- --
Small Cap Select Fund -- -- -- --
Small Cap Value Fund 330 -- -- 330
Mid Cap Growth
Opportunities Fund -- -- -- --
Mid Cap Value Fund 1,817 -- -- 1,817
Large Cap Growth
Opportunities Fund 2,254 -- -- 2,254
Large Cap Select Fund 39 -- -- 39
Large Cap Value Fund 7,991 -- -- 7,991
Balanced Fund 5,025 -- -- 5,025
Equity Income Fund 11,763 -- -- 11,763
-----------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
2003
ORDINARY LONG TERM RETURN OF TOTAL
FUND INCOME (000) GAIN (000) CAPITAL (000) (000)
-----------------------------------------------------------------------------------
Real Estate Securities Fund $ 6,226 $ -- $ 764 $ 6,990
Technology Fund -- -- -- --
International Fund -- -- -- --
Small Cap Growth
Opportunities Fund -- -- 457 457
Small Cap Select Fund -- 23,594 1 23,595
Small Cap Value Fund 8,013 59,831 140 67,984
Mid Cap Growth
Opportunities Fund -- -- -- --
Mid Cap Value Fund 2,813 -- 792 3,605
Large Cap Growth
Opportunities Fund 914 -- -- 914
Large Cap Value Fund 11,417 -- 284 11,701
Balanced Fund 12,401 -- -- 12,401
Equity Income Fund 11,600 87 -- 11,687
-----------------------------------------------------------------------------------
</Table>
77
<Page>
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>
ACCUMULATED UNREALIZED TOTAL
UNDISTRIBUTED UNDISTRIBUTED CAPITAL AND APPRECIATION ACCUMULATING
ORDINARY LONG TERM ACCUMULATED POST-OCTOBER (DEPRECIATION) EARNINGS
FUND INCOME (000) CAPITAL GAINS (000) EARNINGS (000) LOSSES (000) (000) (DEFICIT) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Real Estate Securities Fund $ -- $ 2,346 $ 2,346 $ -- $ 6,443 $ 8,788
Technology Fund -- -- -- (520,359) (65,078) (585,437)
International Fund -- -- -- (266,158) (154,737) (420,895)
Small Cap Growth Opportunities Fund -- -- -- (20,476) (60,914) (81,390)
Small Cap Select Fund -- -- -- (13,367) (56,146) (69,513)
Small Cap Value Fund -- -- -- (3,857) 5,972 2,115
Mid Cap Growth Opportunities Fund -- -- -- (42,819) (51,001) (93,820)
Mid Cap Value Fund -- -- -- (101,217) (26,771) (127,988)
Large Cap Growth Opportunities Fund 447 -- 447 (70,459) (26,732) (96,744)
Large Cap Value Fund -- -- -- (71,168) (181,144) (252,312)
Balanced Fund 97 -- 97 (77,811) (36,909) (114,623)
Equity Income Fund 98 -- 98 (47,216) (90,932) (138,050)
- ----------------------------------------------------------------------------------------------------------------------------------
</Table>
The difference between book and tax basis unrealized appreciation
(depreciation) is primarily due to the tax deferral of losses on wash sales
and investments in limited partnerships and REITs.
As of September 30, 2002, the Funds' most recently completed fiscal year
end, the following Funds had capital loss carryforwards:
<Table>
<Caption>
FUND AMOUNT (000) EXPIRATION DATE
-------------------------------------------------------------------------------------------------------------------------
Real Estate Securities Fund $ -- --
Technology Fund 422,611 2006-2010
International Fund 196,516 2007-2010
Small Cap Growth Opportunities Fund 5,509 2009
Small Cap Select Fund 86,549 2010
Small Cap Value Fund 850 2010
Mid Cap Growth Opportunities Fund 156,690 2009-2010
Mid Cap Value Fund 101,217 2008
Large Cap Growth Opportunities Fund 119,384 2009-2010
Large Cap Value Fund 18,345 2009-2010
Balanced Fund 44,051 2007-2010
Equity Income Fund 22,409 2008-2009
-------------------------------------------------------------------------------------------------------------------------
</Table>
In accordance with Section 382 of the Internal Revenue Code, utilization of
all or a portion of the above capital loss carryovers is limited on an
annual basis for Real Estate Securities, International, Balanced and
Technology Funds in the amount of $1,603,857, $8,581,825, $11,267,633 and
$1,523,641, respectively. The amount of capital loss carryforward for the
Real Estate Securities Fund is subject to change because its tax year end
is December 31.
78
<Page>
Certain Funds incurred a loss for tax purposes for November 1, 2001 to
September 30, 2002. As permitted by tax regulations, the Funds intend to
elect to defer and treat these losses as arising in the fiscal year ending
September 30, 2003. The following funds had deferred losses:
<Table>
<Caption>
FUND AMOUNT (000)
--------------------------------------------------------
Real Estate Securities Fund $ --
Technology Fund 97,746
International Fund 78,872
Small Cap Growth Opportunities Fund 14,967
Small Cap Select Fund 85,600
Small Cap Value Fund 3,006
Mid Cap Growth Opportunities Fund 98,396
Large Cap Growth Opportunities Fund 233,981
Large Cap Value Fund 52,823
Balanced Fund 33,759
Equity Income Fund 24,807
--------------------------------------------------------
</Table>
FUTURES TRANSACTIONS - In order to gain exposure to or protect against
changes in the market, certain Funds may enter into S&P Stock Index futures
contracts and other stock futures contracts.
Upon entering into a futures contract, the Fund is required to deposit cash
or pledge U.S. government securities in an amount equal to 5% of the
purchase price indicated in the futures contract (initial margin).
Subsequent payments, which are dependent on the daily fluctuations in the
value of the underlying security or securities, are made or received by the
Fund each day (daily variation margin) and are recorded as unrealized gains
(losses) until the contract is closed. When the contract is closed, the
Fund records a realized gain (loss) equal to the difference between the
proceeds from (or cost of) the closing transaction and the Fund's basis in
the contract. At March 31, 2003, open long futures contracts for the Large
Cap Select Fund and Balanced Fund, were as follows:
<Table>
<Caption>
MARKET VALUE UNREALIZED
NUMBER OF COVERED BY SETTLEMENT GAIN (LOSS)
FUND CONTRACTS CONTRACTS (000) MONTH (000)
-----------------------------------------------------------------------
Large Cap Select
S&P 500 Index 9 $ 1,906 June - 03 $ 7
Balanced
S&P 500 Index 35 7,411 June - 03 26
Russell 2000 Index 12 2,187 June - 03 472
</Table>
FOREIGN CURRENCY TRANSLATION - The books and records of the International
Fund are maintained in U.S. dollars on the following basis:
- market value of investment securities, assets, and liabilities at the
current rate of exchange; and
- purchases and sales of investment securities, income, and expenses at
the relevant rates of exchange prevailing on the respective dates of
such transactions.
The International Fund does not isolate the portion of gains and losses on
investments in equity securities that are due to changes in the foreign
exchange rates from that which is due to changes in market prices of equity
securities.
The International Fund reports certain foreign currency-related
transactions as components of realized gains for financial reporting
purposes, whereas such components are treated as ordinary income for
federal income tax purposes.
FORWARD FOREIGN CURRENCY CONTRACTS - The International Fund may enter into
forward foreign currency contracts as hedges against either specific
transactions or fund positions. The aggregate principal amount of the
contracts is not recorded because the International Fund intends to settle
the contracts prior to delivery. All commitments are "marked-to-market"
daily at the applicable foreign exchange rate, and any resulting unrealized
gains or losses are recorded currently. The International Fund realizes
gains or losses at the time the forward contracts are extinguished.
Unrealized gains or losses on outstanding positions in forward foreign
currency contracts held at the close of the period are recognized as
ordinary income or loss for federal income tax purposes.
The use of forward foreign currency contracts does not eliminate
fluctuations in the underlying prices of the securities, but it does
establish a rate of exchange that can be achieved in the future. Although
forward foreign currency contracts limit the risk of loss due to a decline
in the value of the hedged currency, they also limit a potential gain that
might result should the value of the currency increase. These contracts
involve market risk in excess of the amount reflected in the Funds'
statement of assets and liabilities. The face or contract amount in U.S.
dollars reflects the total exposure the portfolio has in that particular
currency contract. In addition, there could be exposure to risks (limited
to the amount of unrealized gains) if the counter parties to the contracts
are unable to meet the terms of their contracts. There were no outstanding
forward foreign currency contracts at March 31, 2003.
79
<Page>
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
the 12b-1 fees, are borne by that class. Income, other expenses, and
realized and unrealized gains and losses of a Fund are allocated to the
respective class on the basis of the relative net assets each day.
OPTIONS TRANSACTIONS - When a call or put option is written, an amount
equal to the premium received is recorded as a liability. The liability is
marked-to-market daily to reflect the current market value of the option
written. When a written option expires, a gain is realized in the amount of
the premium originally received. If a closing purchase contract is entered
into, a gain or loss is realized in the amount of the original premium less
the cost of the closing transaction. If a written call is exercised, a gain
or loss is realized from the sale of the underlying security, and the
proceeds from such sale are increased by the premium originally received.
If a written put option is exercised, the amount of the premium originally
received reduces the cost of the security that is purchased upon exercise
of the option.
Purchased options are recorded as investments and marked-to-market daily to
reflect the current market value of the option contract. If a purchased
option expires, a loss is realized in the amount of the cost of the option.
If a closing transaction is entered into, a gain or loss is realized, to
the extent that the proceeds from the sale are greater or less than the
cost of the option. If a put option is exercised, a gain or loss is
realized from the sale of the underlying security by adjusting the proceeds
from such sale by the amount of the premium originally paid. If a call
option is exercised, the cost of the security purchased upon exercise is
increased by the premium originally paid.
SECURITIES LENDING - Each Fund may lend up to one-third of the value of its
total assets to broker-dealers, banks, or their 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 serves as the securities lending agent for the Funds in transactions
involving the lending of portfolio securities on behalf of the Funds. For
these services, the securities lending fees paid to USBAM from the Funds
for the six months ended March 31, 2003, were as follows:
<Table>
<Caption>
FUND AMOUNT (000)
----------------------------------------------------------
Real Estate Securities Fund $ 5
Technology Fund 28
International Fund --
Small Cap Growth Opportunities Fund 19
Small Cap Select Fund 26
Small Cap Value Fund 21
Mid Cap Growth Opportunities Fund 50
Mid Cap Value Fund 15
Large Cap Growth Opportunities Fund 37
Large Cap Select Fund --
Large Cap Value Fund 52
Balanced Fund 27
Equity Income Fund 63
----------------------------------------------------------
</Table>
USE OF ESTIMATES IN 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
ADVISOR FEES - U.S. Bancorp Asset Management, Inc. ("USBAM"), serves as
investment advisor to the Funds. Pursuant to an investment advisory
agreement (the "Agreement"), USBAM manages each Fund's assets and furnishes
related office facilities, equipment, research, and personnel. The
Agreement requires each Fund to pay USBAM a monthly fee based upon average
daily net assets. The annual fee for each Fund is as follows:
<Table>
---------------------------------------------------------------
Real Estate Securities Fund 0.70%
Technology Fund 0.70%
International Fund 1.10%
Small Cap Growth Opportunities Fund 1.40%
Small Cap Select Fund 0.70%
Small Cap Value Fund 0.70%
Mid Cap Growth Opportunities Fund 0.70%
Mid Cap Value Fund 0.70%
Large Cap Growth Opportunities Fund 0.65%
Large Cap Select Fund 0.65%
Large Cap Value Fund 0.65%
Balanced Fund 0.65%
Equity Income Fund 0.65%
---------------------------------------------------------------
</Table>
Under the Agreement, the fee paid to USBAM by International Fund is
based on the average daily net assets of the Fund equal to a rate of
1.10% of the average daily
80
<Page>
net assets up to $1.5 billion, 1.05% of the average daily net assets on
the next $1 billion, and 1.00% of the average daily net assets in excess
of $2.5 billion. Furthermore, the fees paid by Large Cap Growth
Opportunities Fund, Large Cap Select Fund, Large Cap Value Fund, Balanced
Fund, and Equity Income Fund are based on the average daily net assets of
each Fund equal to a rate of 0.65% of the average daily net assets up to
$3 billion, 0.625% of the average daily net assets on the next $2 billion,
and 0.60% of the average daily net assets in excess of $5 billion.
USBAM waived fees during the six-months ended March 31, 2003, so that the
total fund operating expenses did not exceed expense limitations described
in the Funds' prospectuses.
The Funds may invest in the money market funds that are series of First
American Funds, Inc. ("FAF"), subject to certain limitations. The terms of
such transactions are identical to those of non-related entities except
that, to avoid duplicative investment advisory fees, USBAM reimburses each
FAIF Fund an amount equal to the investment advisory fee paid by FAF to
USBAM related to such investments.
SUB-ADVISOR FEES - Clay Finlay, Inc. serves as sub-advisor to the
International Fund, and receives a fee, payable by USBAM. The fee is
computed daily and paid monthly at the following annual rates (as a
percentage of the Fund's average daily net assets): 0.25% of the first $500
million of the Fund's average daily net assets, 0.10% of the average daily
net assets in excess of $500 million.
CO-ADMINISTRATION FEES - USBAM and U.S. Bancorp Fund Services, LLC
("USBFS") (collectively the "Administrators"), serve as the
co-administrators pursuant to a co-administration agreement between the
Administrators and 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 administrative services including various legal,
oversight and administrative services, accounting services, transfer agency
and dividend disbursing services, and shareholder services to the First
American Family of Funds. The Funds pay the Administrators at an annual
rate, calculated daily and paid monthly, based on the average daily net
assets of all open-end mutual funds in the First American Family of Funds,
equal to each Fund's pro rata share of an amount equal to 0.25% of the
aggregate average daily net assets up to $8 billion, 0.235% on the next $17
billion of aggregate average daily assets, 0.22% on the next $25 billion of
aggregate average daily net assets, and 0.20% of the aggregate average
daily net assets of all open-end mutual funds in the First American Family
of Funds in excess of $50 billion. In addition, each Fund pays 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 and transfer agent
fees paid to USBAM and USBFS for the Funds included in this semiannual
report were as follows:
<Table>
<Caption>
FUND AMOUNT (000)
-----------------------------------------------------------
Real Estate Securities Fund $ 195
Technology Fund 127
International Fund 1,063
Small Cap Growth Opportunities Fund 385
Small Cap Select Fund 899
Small Cap Value Fund 550
Mid Cap Growth Opportunities Fund 1,253
Mid Cap Value Fund 389
Large Cap Growth Opportunities Fund 861
Large Cap Select Fund 10
Large Cap Value Fund 1,383
Balanced Fund 711
Equity Income Fund 1,610
-----------------------------------------------------------
</Table>
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, served as distributor for the
Funds for the six-months ended March 31, 2003. Under the respective
distribution agreement, the Funds paid Quasar a monthly distribution and/or
shareholder servicing fee equal to a rate of 0.25% of each Fund's average
daily net assets of the Class A shares, 1.00% of the Class B shares, and
1.00% of the Class C shares, which may be used by Quasar to provide
compensation for sales support, distribution activities, and shareholder
servicing activities.
81
<Page>
FAIF 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 the
average daily net assets of the Fund's Class S shares. No distribution or
shareholder servicing fees are paid by Class Y shares. Under the
agreements, the following amounts were retained by Quasar or paid to USBAM
and its affiliates for the six months ended March 31, 2003:
<Table>
<Caption>
FUND AMOUNT (000)
-----------------------------------------------------------
Real Estate Securities Fund $ 14
Technology Fund 42
International Fund 72
Small Cap Growth Opportunities Fund 42
Small Cap Select Fund 83
Small Cap Value Fund 52
Mid Cap Growth Opportunities Fund 151
Mid Cap Value Fund 30
Large Cap Growth Opportunities Fund 63
Large Cap Select Fund --
Large Cap Value Fund 180
Balanced Fund 221
Equity Income Fund 264
-----------------------------------------------------------
</Table>
OTHER FEES - In addition to the investment advisory fees, custodian fees,
distribution and shareholder servicing fees, and co-administration fees,
each Fund is responsible for paying most other operating expenses including
fees and expenses of outside directors, registration fees, printing
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.
SALES CHARGES - A Contingent Deferred Sales Charge ("CDSC") is imposed on
redemptions made in the Class B shares. The CDSC varies depending on the
number of years from time of payment for the purchase of Class B shares
until the redemption of such shares.
<Table>
<Caption>
CDSC 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>
Class B shares will automatically convert to Class A shares 8 years after
the first day of the month shares are purchased.
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.
For the six months ended March 31, 2003, total front-end and contingent
deferred sales charges retained by affiliates of USBAM for distributing the
Funds' shares, were as follows:
<Table>
<Caption>
FUND AMOUNT (000)
-----------------------------------------------------------
Real Estate Securities Fund $ 27
Technology Fund 36
International Fund 38
Small Cap Growth Opportunities Fund 25
Small Cap Select Fund 74
Small Cap Value Fund 53
Mid Cap Growth Opportunities Fund 85
Mid Cap Value Fund 33
Large Cap Growth Opportunities Fund 54
Large Cap Select Fund --
Large Cap Value Fund 67
Balanced Fund 118
Equity Income Fund 181
-----------------------------------------------------------
</Table>
82
<Page>
4. CAPITAL SHARE TRANSACTIONS
There are 420 billion shares of $0.0001 par value capital stock authorized.
Capital share transactions for the Funds were as follows:
<Table>
<Caption>
SMALL CAP GROWTH
REAL ESTATE TECHNOLOGY INTERNATIONAL OPPORTUNITIES
SECURITIES FUND (000) FUND (000) FUND (000) FUND (000)
- --------------------------------------------------------------------------------------------------------------------
10/01/02 10/01/01 10/01/02 10/01/01 10/01/02 10/01/01 10/01/02 10/01/01
TO TO TO TO TO TO TO TO
3/31/03 9/30/02 3/31/03 9/30/02 3/31/03 9/30/02 3/31/03 9/30/02
- --------------------------------------------------------------------------------------------------------------------
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
Class A:
Shares issued 905 1,076 933 1,656 8,181 17,671 624 3,446
Shares issued in lieu of
cash distributions 61 33 -- -- -- -- -- 4
Shares redeemed (464) (166) (1,114) (2,138) (8,877) (19,832) (887) (2,893)
Shares issued in connection with
acquistion of Fund
net assets -- -- -- 167 347 -- -- --
- --------------------------------------------------------------------------------------------------------------------
TOTAL CLASS A TRANSACTIONS 502 943 (181) (315) (349) (2,161) (263) 557
====================================================================================================================
Class B:
Shares issued 30 90 176 288 35 102 24 145
Shares issued in lieu of
cash distributions 9 7 -- -- -- -- -- --
Shares redeemed (38) (39) (357) (758) (164) (299) (41) (55)
Shares issued in connection with
acquistion of Fund
net assets -- -- -- 599 39 -- -- --
- --------------------------------------------------------------------------------------------------------------------
TOTAL CLASS B TRANSACTIONS 1 58 (181) 129 (90) (197) (17) 90
====================================================================================================================
Class C:
Shares issued 63 76 117 197 180 283 15 28
Shares issued in lieu of
cash distributions 4 1 -- -- -- -- -- --
Shares redeemed (18) (31) (228) (453) (351) (765) (8) (9)
Shares issued in connection with
acquistion of Fund
net assets -- -- -- 26 22 -- -- --
- --------------------------------------------------------------------------------------------------------------------
TOTAL CLASS C TRANSACTIONS 49 46 (111) (230) (149) (482) 7 19
====================================================================================================================
Class S:
Shares issued 114 76 276 217 322 946 42 72
Shares issued in lieu of
cash distributions 6 4 -- -- -- -- -- --
Shares redeemed (93) (15) (197) (188) (945) (523) (20) (45)
Shares issued in connection with
acquistion of Fund
net assets -- -- -- 401 6 -- -- --
- --------------------------------------------------------------------------------------------------------------------
TOTAL CLASS S TRANSACTIONS 27 65 79 430 (617) 423 22 27
====================================================================================================================
Class Y:
Shares issued 1,191 3,096 2,616 7,064 38,895 27,079 1,496 1,997
Shares issued in lieu of
cash distributions 166 86 -- -- -- -- -- 17
Shares redeemed (836) (1,752) (4,288) (8,911) (16,609) (27,326) (2,128) (2,748)
Shares issued in connection with
acquistion of Fund
net assets -- -- -- 2,708 6,391 -- -- --
- --------------------------------------------------------------------------------------------------------------------
TOTAL CLASS Y TRANSACTIONS 521 1,430 (1,672) 861 28,677 (247) (632) (734)
====================================================================================================================
NET INCREASE (DECREASE) IN
CAPITAL SHARES 1,100 2,542 (2,066) 875 27,472 (2,664) (883) (41)
====================================================================================================================
</Table>
83
<Page>
<Table>
<Caption>
MID CAP GROWTH
SMALL CAP SMALL CAP OPPORTUNITIES MID CAP
SELECT FUND (000) VALUE FUND (000) FUND (000) VALUE FUND (000)
- --------------------------------------------------------------------------------------------------------------------
10/01/02 10/01/01 10/01/02 10/01/01 10/01/02 10/01/01 10/01/02 10/01/01
TO TO TO TO TO TO TO TO
3/31/03 9/30/02 3/31/03 9/30/02 3/31/03 9/30/02 3/31/03 9/30/02
- --------------------------------------------------------------------------------------------------------------------
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
Class A:
Shares issued 373 2,175 262 1,106 191 476 113 365
Shares issued in lieu of
cash distributions -- 98 -- 404 -- -- 5 9
Shares redeemed (513) (579) (350) (1,654) (265) (536) (98) (378)
Shares issued in connection with
acquistion of Fund
net assets 1,906 -- -- -- 1,985 -- -- --
- --------------------------------------------------------------------------------------------------------------------
TOTAL CLASS A TRANSACTIONS 1,766 1,694 (88) (144) 1,911 (60) 20 (4)
====================================================================================================================
Class B:
Shares issued 85 387 49 220 24 93 23 115
Shares issued in lieu of
cash distributions -- 13 -- 156 -- -- 2 2
Shares redeemed (51) (112) (125) (217) (16) (22) (123) (157)
Shares issued in connection with
acquistion of Fund
net assets 357 -- -- -- 95 -- -- --
- -------------------------------------------------------------------------------------------------------------------
TOTAL CLASS B TRANSACTIONS 391 288 (76) 159 103 71 (98) (40)
====================================================================================================================
Class C:
Shares issued 174 320 44 146 296 48 14 56
Shares issued in lieu of
cash distributions -- -- -- 58 -- -- 1 1
Shares redeemed (56) (29) (143) (104) (51) (5) (46) (56)
Shares issued in connection with
acquistion of Fund
net assets 367 -- -- -- 128 -- -- --
- --------------------------------------------------------------------------------------------------------------------
TOTAL CLASS C TRANSACTIONS 485 291 (99) 100 373 43 (31) 1
====================================================================================================================
Class S:
Shares issued 284 627 53 40 171 224 38 8
Shares issued in lieu of
cash distributions -- 33 -- -- -- -- -- --
Shares redeemed (270) (255) (5) (3) (85) (55) (12) --
Shares issued in connection with
acquistion of Fund
net assets 46 -- -- -- 7 -- -- --
- --------------------------------------------------------------------------------------------------------------------
TOTAL CLASS S TRANSACTIONS 60 405 48 37 93 169 26 8
====================================================================================================================
Class Y:
Shares issued 13,115 15,652 2,834 8,466 7,155 6,630 2,596 3,949
Shares issued in lieu of
cash distributions -- 1,365 23 4,122 -- -- 84 138
Shares redeemed (5,322) (4,156) (3,734) (12,422) (4,263) (3,074) (3,106) (5,778)
Shares issued in connection with
acquistion of Fund
net assets 16,348 -- -- -- 5,734 -- -- --
Shares issued in connection with
acquisition of
Common Trust Fund net assets 10,235 -- -- -- 8,454 -- -- --
- --------------------------------------------------------------------------------------------------------------------
TOTAL CLASS Y TRANSACTIONS 34,376 12,861 (877) 166 17,080 3,556 (426) (1,691)
====================================================================================================================
NET INCREASE (DECREASE) IN
CAPITAL SHARES 37,078 15,539 (1,092) 318 19,560 3,779 (509) (1,726)
====================================================================================================================
</Table>
84
<Page>
<Table>
<Caption>
LARGE CAP
LARGE CAP GROWTH SELECT LARGE CAP BALANCED
OPPORTUNITIES FUND (000) FUND (000) VALUE FUND (000) FUND (000)
- --------------------------------------------------------------------------------------------------------------------------
10/01/02 10/01/01 1/31/03 (1) 10/01/02 10/01/01 10/01/02 10/01/01
TO TO TO TO TO TO TO
3/31/03 9/30/02 3/31/03 3/31/03 9/30/02 3/31/03 9/30/02
- --------------------------------------------------------------------------------------------------------------------------
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
Class A:
Shares issued 127 144 3 270 621 350 710
Shares issued in lieu of
cash distributions 3 2 -- 43 51 97 259
Shares redeemed (200) (264) -- (810) (1,851) (1,308) (2,634)
Shares issued in connection with
acquistion of Fund
net assets 2,908 -- -- -- 1,960 -- --
- --------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS A TRANSACTIONS 2,838 (118) 3 (497) 781 (861) (1,665)
==========================================================================================================================
Class B:
Shares issued 20 55 1 39 142 115 355
Shares issued in lieu of
cash distributions -- -- -- 9 5 20 63
Shares redeemed (33) (21) -- (354) (615) (596) (1,130)
Shares issued in connection with
acquistion of Fund
net assets 1,803 -- -- -- 729 -- --
- --------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS B TRANSACTIONS 1,790 34 1 (306) 261 (461) (712)
==========================================================================================================================
Class C:
Shares issued 118 41 -- 56 151 702 112
Shares issued in lieu of
cash distributions -- -- -- 2 1 4 4
Shares redeemed (25) (16) -- (135) (202) (155) (97)
Shares issued in connection with
acquistion of Fund
net assets 618 -- -- -- 5 -- --
- --------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS C TRANSACTIONS 711 25 -- (77) (45) 551 19
==========================================================================================================================
Class S:
Shares issued 187 104 -- 432 131 986 1,640
Shares issued in lieu of
cash distributions 1 -- -- 14 8 34 86
Shares redeemed (71) (95) -- (650) (335) (2,635) (1,572)
Shares issued in connection with
acquistion of Fund
net assets 460 -- -- -- 2,086 -- --
- --------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS S TRANSACTIONS 577 9 -- (204) 1,890 (1,615) 154
==========================================================================================================================
Class Y:
Shares issued 7,844 4,258 2,660 7,023 9,907 13,390 7,150
Shares issued in lieu of
cash distributions 43 18 3 348 411 391 800
Shares redeemed (7,755) (3,925) (3) (9,144) (32,111) (8,075) (12,860)
Shares issued in connection with
acquistion of Fund
net assets 21,251 -- -- -- 25,675 -- --
Shares issued in connection with
acquisition of
Common Trust Fund net assets 12,677 -- -- -- -- -- --
- --------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS Y TRANSACTIONS 34,060 351 2,660 (1,773) 3,882 5,706 (4,910)
==========================================================================================================================
NET INCREASE (DECREASE) IN CAPITAL SHARES 39,976 301 2,664 (2,857) 6,769 3,320 (7,114)
==========================================================================================================================
</Table>
(1) Commencement of operation.
85
<Page>
<Table>
<Caption>
EQUITY
INCOME FUND (000)
- --------------------------------------------------------------------------------
10/01/02 10/01/01
TO TO
3/31/03 9/30/02
- --------------------------------------------------------------------------------
(UNAUDITED)
Class A:
Shares issued 651 1,126
Shares issued in lieu of cash distributions 108 92
Shares redeemed (1,619) (1,430)
Shares issued in connection with acquistion of Fund
net assets -- 11,570
- --------------------------------------------------------------------------------
TOTAL CLASS A TRANSACTIONS (860) 11,358
================================================================================
Class B:
Shares issued 139 473
Shares issued in lieu of cash distributions 9 15
Shares redeemed (279) (391)
Shares issued in connection with acquistion of Fund
net assets -- 913
- --------------------------------------------------------------------------------
TOTAL CLASS B TRANSACTIONS (131) 1,010
================================================================================
Class C:
Shares issued 741 745
Shares issued in lieu of cash distributions 9 12
Shares redeemed (265) (274)
Shares issued in connection with acquistion of Fund
net assets -- 24
- --------------------------------------------------------------------------------
TOTAL CLASS C TRANSACTIONS 485 507
================================================================================
Class S:
Shares issued 892 459
Shares issued in lieu of cash distributions 24 21
Shares redeemed (3,191) (339)
Shares issued in connection with acquistion of Fund
net assets -- 3,648
- --------------------------------------------------------------------------------
TOTAL CLASS S TRANSACTIONS (2,275) 3,789
================================================================================
Class Y:
Shares issued 24,039 27,490
Shares issued in lieu of cash distributions 399 308
Shares redeemed (11,658) (11,132)
Shares issued in connection with acquistion of Fund
net assets -- 31,843
Shares issued in connection with acquisition of
Common Trust Fund net assets 24,188 --
- --------------------------------------------------------------------------------
TOTAL CLASS Y TRANSACTIONS 36,968 48,509
================================================================================
NET INCREASE (DECREASE) IN CAPITAL SHARES 34,187 65,173
================================================================================
</Table>
86
<Page>
5. INVESTMENT SECURITY TRANSACTIONS
During the six months ended March 31, 2003, purchases of securities and
proceeds from sales of securities, other than temporary investments in
short-term securities, were as follows:
<Table>
<Caption>
FUND PURCHASES (000) SALES (000)
--------------------------------------------------------------------
Real Estate Securities Fund $ 79,349 $ 57,624
Technology Fund 49,955 54,726
International Fund 475,718 336,636
Small Cap Growth Opportunities Fund 187,101 203,887
Small Cap Select Fund 559,984 505,060
Small Cap Value Fund 90,296 75,673
Mid Cap Growth Opportunities Fund 664,992 615,730
Mid Cap Value Fund 137,117 139,532
Large Cap Growth Opportunities Fund 431,948 411,985
Large Cap Select Fund 29,154 4,985
Large Cap Value Fund 473,847 508,370
Balanced Fund 438,240 409,151
Equity Income Fund 401,564 305,873
--------------------------------------------------------------------
</Table>
The aggregate gross unrealized appreciation and depreciation of securities
held by the Funds and the total cost of securities for federal tax purposes
at March 31, 2003, are as follows:
<Table>
<Caption>
AGGREGATE AGGREGATE FEDERAL
GROSS GROSS INCOME
APPRECIATION DEPRECIATION TAX COST
FUND (000) (000) NET (000) (000)
-----------------------------------------------------------------------------------
Real Estate Securities Fund $ 11,500 $ (4,125) $ 7,375 $ 142,425
Technology Fund 4,026 (40,968) (36,942) 120,810
International Fund 24,937 (137,729) (112,792) 867,058
Small Cap Growth
Opportunities Fund 26,353 (54,121) (27,768) 284,049
Small Cap Select Fund 49,572 (95,913) (46,341) 939,888
Small Cap Value Fund 64,794 (71,286) (6,492) 397,220
Mid Cap Growth
Opportunities Fund 78,661 (93,262) (14,601) 1,152,548
Mid Cap Value Fund 16,458 (23,325) (6,867) 288,999
Large Cap Growth
Opportunities Fund 91,029 (184,918) (93,889) 1,182,007
Large Cap Select Fund 761 (676) 85 26,135
Large Cap Value Fund 54,566 (120,326) (56,760) 1,020,628
Balanced Fund 24,937 (42,105) (17,168) 523,156
Equity Income Fund 85,642 (216,120) (130,478) 1,347,758
-----------------------------------------------------------------------------------
</Table>
The difference between cost for financial statement purposes and federal
tax purposes is primarily due to losses deferred from wash sales and
investments in limited partnerships and REITs.
6. OPTIONS WRITTEN
Transactions in options written for the six months ended March 31, 2003,
were as follows:
<Table>
<Caption>
NUMBER OF PREMIUM
CALL OPTIONS WRITTEN CONTRACTS AMOUNT (000)
- ----------------------------------------------------------------------------------------------
TECHNOLOGY FUND
Balance at September 30, 2002 700 $ 91
Opened 1,600 211
Expired (450) (70)
Exercised
Closed (1,850) (232)
- ----------------------------------------------------------------------------------------------
Balance at March 31, 2003
- ----------------------------------------------------------------------------------------------
</Table>
7. FUND MERGERS
On March 13, 2003, shareholders of the Health Sciences Fund, Large Cap
Growth Fund, Mid Cap Growth Fund, Emerging Markets Fund, and Small Cap
Growth Fund approved the Agreement and Plan of Reorganization recommended
by the board of directors, providing for the merger of (a) Health Sciences
Fund and Large Cap Growth Fund into Large Cap Growth Opportunities Fund,
(b) Mid Cap Growth Fund into Mid Cap Growth Opportunities Fund, (c)
Emerging Markets Fund into International Fund, and (d) Small Cap Growth
Fund into Small Cap Select Fund at the close of business March 14, 2003.
Under the Agreement and Plan of Reorganization, Class A, Class B, Class C,
Class S, and Class Y shares of each acquired Fund were exchanged for Class
A, Class B, Class C, Class S, and Class Y shares, respectively, of the
corresponding acquiring Fund.
87
<Page>
The following table illustrates the specifics of the mergers:
<Table>
<Caption>
ACQUIRED SHARES ISSUED TO ACQUIRING FUND COMBINED
FUNDS NET SHAREHOLDERS OF NET ASSETS NET ASSETS TAX STATUS
ACQUIRED FUND ACQUIRING FUND ASSETS (000) ACQUIRED FUND (000) (000) (000) OF TRANSFER
- ------------------------------------------------------------------------------------------------------------------------------------
First American Health Sciences First American Large Cap
Growth Opportunities (1) $ 15,899(2) $ 548,575 $ 1,077,544 Non-taxable
Class A Class A 240
Class B Class B 138
Class C Class C 139
Class S Class S 5
Class Y Class Y 300
First American Large Cap Growth 513,070(3) -- -- --
Class A Class A 2,668
Class B Class B 1,665
Class C Class C 479
Class S Class S 455
Class Y Class Y 20,951
First American Mid Cap Growth First American Mid Cap
Growth Opportunities (1) 218,741(4) 895,749 1,114,490 Non-taxable
Class A Class A 1,985
Class B Class B 95
Class C Class C 128
Class S Class S 7
Class Y Class Y 5,734
First American Emerging Markets First American
International (1) 49,553(5) 725,636 775,189 Non-taxable
Class A Class A 347
Class B Class B 39
Class C Class C 22
Class S Class S 6
Class Y Class Y 6,391
First American Small Cap Growth First American Small
Cap Select (1) 210,865(6) 656,515 867,380 Non-taxable
Class A Class A 1,906
Class B Class B 357
Class C Class C 367
Class S Class S 46
Class Y Class Y 16,348
</Table>
(1) Accounting Survivor
(2) Includes capital loss carryover of $315, unrealized depreciation of $2,164,
and distributions in excess of net investment income of $53.
(3) Includes capital loss carryover of $80,206, unrealized depreciation of
$94,007, and undistributed net investment income of $6.
(4) Includes capital loss carryover of $144,739, unrealized depreciation of
$12,121, and distributions in excess of net investment income of $465.
(5) Includes capital loss carryover of $8,263, unrealized appreciation of
$4,333, and distributions in excess of net investment income of $452.
(6) Includes capital loss carryover of $85,750, unrealized depreciation of
$18,040, and distributions in excess of net investment income of $536.
88
<Page>
On November 22, 2002, the Equity Income and Small Cap Select Funds aquired
substantially all of the assets of the Growth & Income and Emerging Growth
Common Trust Funds (sponsored by U.S. Bank), respectively, in exchange for
Class Y shares of the respective First American Funds. The following table
illustrates the specifics of the mergers:
<Table>
<Caption>
ACQUIRED SHARES ISSUED TO ACQUIRING FUND COMBINED
FUND'S NET SHAREHOLDERS OF NET ASSETS NET ASSETS TAX STATUS
ACQUIRED FUND ACQUIRING FUND ASSETS (000) ACQUIRED FUND (000) (000) (000) OF TRANSFER
- -----------------------------------------------------------------------------------------------------------------------------------
Growth & Income Common Trust First American Equity
Income (1)
Class Y Class Y $ 259,049 24,188 $ 1,088,937 $ 1,347,986 Non-taxable
Emerging Growth C Common Trust First American Small
Cap Select (1)
Class Y Class Y 129,674 10,235 604,122 733,796 Non-taxable
- ------------------------------------------------------------------------------------------------------------------------------------
</Table>
(1) Accounting Survivor
On October 25, 2002, the Large Cap Growth Opportunities Fund acquired
substantially all of the assets of the Equity Growth A and Common Stock
(KS) Common Trust Funds (sponsored by U.S. Bank) and the Mid Cap Growth
Opportunities Fund acquired substantially all of the assets of the Special
Equity Growth B Common Trust Fund (sponsored by U.S. Bank), in each case in
exchange for Class Y shares of the respective First American Fund. The
following table illustrates the specifics of the mergers:
<Table>
<Caption>
ACQUIRED SHARES ISSUED TO ACQUIRING FUND COMBINED
FUND'S NET SHAREHOLDERS OF NET ASSETS NET ASSETS TAX STATUS
ACQUIRED FUND ACQUIRING FUND ASSETS (000) ACQUIRED FUND (000) (000) (000) OF TRANSFER
- ------------------------------------------------------------------------------------------------------------------------------------
Equity Growth A Common Trust First American Large Cap
Growth Opportunities (1) $ 258,080 $ 374,478 $ 648,179 Non-taxable
Class Y Class Y 11,944
Common Stock (KS) Common Trust 15,621 -- -- --
Class Y Class Y 733
Special Equity Growth B First American Mid Cap
Common Trust Growth Opportunities (1) 245,348 611,311 856,659 Non-taxable
Class Y Class Y 8,454
- ------------------------------------------------------------------------------------------------------------------------------------
</Table>
(1) Accounting Survivor
89
<Page>
On May 14, 2002, shareholders of the Capital Growth Fund, Relative Value
Fund, Growth & Income Fund, and Science & Technology Fund approved the
Agreement and Plan of Reorganization recommended by the board of directors,
providing for the merger into the Large Cap Growth Fund, Large Cap Value
Fund, Equity Income Fund, and Technology Fund, respectively at the close of
business May 17, 2002. Under the Agreement and Plan of Reorganization,
Class A, Class B, Class C, Class S, and Class Y shares of the Capital
Growth Fund, Relative Value Fund, Growth & Income Fund, and Science &
Technology Fund were exchanged for Class A, Class B, Class C, Class S, and
Class Y shares, respectively, of the Large Cap Growth Fund, Large Cap Value
Fund, Equity Income Fund, and Technology Fund on a tax-free basis. The
following table illustrates the specifics of the mergers:
<Table>
<Caption>
ACQUIRED SHARES ISSUED TO ACQUIRING FUND COMBINED
FUND'S NET SHAREHOLDERS OF NET ASSETS NET ASSETS TAX STATUS
ACQUIRED FUND ACQUIRING FUND ASSETS (000) ACQUIRED FUND (000) (000) (000) OF TRANSFER
- ------------------------------------------------------------------------------------------------------------------------------------
First American Capital First American Large Cap
Growth (1) Growth $ 211,365 (2) $ 606,639 $ 818,004 Non-taxable
Class A Class A 7,834
Class B Class B 1,852
Class C Class C 1,516
Class S Class S 16
Class Y Class Y 52,493
First American Relative Value First American Large Cap
Value (1) 526,014 (5) 967,283 1,493,297 Non-taxable
Class A Class A 1,960
Class B Class B 729
Class C Class C 5
Class S Class S 2,086
Class Y Class Y 25,675
First American Growth & Income First American Equity
Income (1) 613,957 (3) 521,078 1,135,035 Non-taxable
Class A Class A 11,570
Class B Class B 913
Class C Class C 24
Class S Class S 3,648
Class Y Class Y 31,843
First American Science & First American
Technology Technology (1) 30,411 (4) 134,706 165,117 Non-taxable
Class A Class A 167
Class B Class B 599
Class C Class C 26
Class S Class S 401
Class Y Class Y 2,708
- ------------------------------------------------------------------------------------------------------------------------------------
</Table>
(1) Accounting survivor
(2) Includes capital loss carryover and tax losses deferred due to wash sales
of $147,379, unrealized depreciation of $30,566.
(3) Includes capital loss carryover and tax losses deferred due to wash sales
of $23,817, unrealized appreciation of $70,265.
(4) Includes capital loss carryover and tax losses deferred due to wash sales
of $73,530, unrealized depreciation of $769.
(5) Includes unrealized appreciation of $134,158.
90
<Page>
Board of Directors First American Investment Funds, Inc.
ROGER GIBSON
Director of First American Investment Funds, Inc.
Vice President, Cargo-United Airlines
LEONARD KEDROWSKI
Director of First American Investment Funds, Inc.
Owner and President of Executive and Management Consulting, Inc.
JOHN MURPHY JR.
Director of First American Investment Funds, Inc.
Retired; former Executive Vice President of U.S. Bancorp
RICHARD RIEDERER
Director of First American Investment Funds, Inc.
Retired; former President and Chief Executive Officer of Weirton Steel
JOSEPH STRAUSS
Director of First American Investment Funds, Inc.
Former Chairperson of First American Investment Funds, Inc.
Owner and President of Strauss Management Company
VIRGINIA STRINGER
Chairperson of First American Investment Funds, Inc.
Owner and President of Strategic Management Resources, Inc.
JAMES WADE
Director of First American Investment Funds, Inc.
Owner and President of Jim Wade Homes
<Page>
[FIRST AMERICAN FUNDS(TM) LOGO]
DIRECT FUND CORRESPONDENCE TO:
FIRST AMERICAN FUNDS
P.O. Box 1330
Minneapolis, MN 55440-1330
This report and the financial statements contained herein are submitted for the
general information of the shareholders of the corporation and are not intended
to be a forecast of future events, a guarantee of future results, nor investment
advice. Further, there is no assurance that certain securities will remain in or
out of each fund's portfolio.
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.
2052-03 5/2003 SAR-STOCK
<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
<Page>
persons other than the principal accountant's full-time, permanent
employees. N/A.
(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.
<Page>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
First American Investment Funds, Inc.
By /s/ Thomas S. Schreier, Jr.
----------------------------
Thomas S. Schreier, Jr.
President
Date: 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