<Page>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-8194
FINANCIAL INVESTORS TRUST
-------------------------
(Exact name of registrant as specified in charter)
1625 Broadway, Suite 2200, Denver, Colorado 80202
-------------------------------------------------
(Address of principal executive offices) (Zip code)
Traci A. Thelen, Secretary
Financial Investors Trust
1625 Broadway, Suite 2200
Denver, CO 80202
--------------------------
(Name and address of agent for service)
Registrant's Telephone Number, including Area Code: (303) 623-2577
--------------
Date of fiscal year end: April 30
--------
Date of reporting period: April 30, 2003
--------------
<Page>
Item 1. REPORTS TO SHAREHOLDERS
<Page>
INDEPENDENT AUDITOR'S REPORT
[DELOITTE & TOUCHE LLP LOGO]
TO THE BOARD OF TRUSTEES AND SHAREHOLDERS,
FINANCIAL INVESTORS TRUST
We have audited the accompanying statements of assets and liabilities of
the U.S. Treasury Money Market Fund, U.S. Government Money Market Fund and Prime
Money Market Fund of Financial Investors Trust (the "Trust"), including the
statements of investments, as of April 30, 2003, and the related statements of
operations for the year then ended, the statements of changes in net assets for
each of the two years in the period then ended, and the financial highlights for
each of the periods indicated. These financial statements and financial
highlights are the responsibility of the Trust's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned as of April 30, 2003, by correspondence with the custodian. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
U.S. Treasury Money Market Fund, U.S. Government Money Market Fund and Prime
Money Market Fund of Financial Investors Trust as of April 30, 2003, the results
of their operations for the year then ended, the changes in their net assets for
each of the two years in the period then ended, and the financial highlights for
each of the periods indicated, in conformity with accounting principles
generally accepted in the United States of America.
/s/ Deloitte & Touche LLP
DELOITTE & TOUCHE LLP
Denver, Colorado
June 2, 2003
[DELOITTE TOUCHE TOHMATSU INTERNATIONAL LOGO]
1
<Page>
STATEMENT OF INVESTMENTS
U.S. TREASURY MONEY MARKET FUND
APRIL 30, 2003
<Table>
<Caption>
FACE VALUE VALUE*
- ---------- -----------
U.S. TREASURY OBLIGATIONS 49.68%
U.S. Treasury Bills:
$ 5,000,000 1.17%, 5/8/03 $ 4,998,950
10,000,000 1.12%, 5/8/03 9,997,832
5,000,000 1.14%, 7/31/03 4,985,631
U.S. Treasury Notes:
11,000,000 5.25%, 8/15/03 11,111,045
5,000,000 2.75%, 10/31/03 5,033,328
4,000,000 3.63%, 3/31/04 4,085,792
-----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $40,212,578) 40,212,578
-----------
<Caption>
REPURCHASE AGREEMENTS COLLATERALIZED
BY U.S. GOVERNMENT OBLIGATIONS 50.26% COLLATERAL VALUE
- -------------------------------------------------------------------------------------------------------------------------
Agreement with Bear Stearns Companies, Inc., 1.27%,
dated 4/30/03 and maturing 5/1/03, collateralized by U.S.
Treasury Strip, due 11/15/09 with a repurchase amount
of $3,500,123 3,500,000 $ 3,575,568
Agreement with Credit Suisse First Boston and
J.P. Morgan Chase & Co. (Tri-party), 1.18%, dated 4/30/03
and maturing 5/1/03, collateralized by U.S. Treasury Notes,
1.63-4.38% due 8/31/04-11/15/12 with a repurchase
amount of $3,174,104 3,174,000 3,176,569
Agreement with Deutsche Bank and Bank of New York
(Tri-party), 1.28%, dated 4/30/03 and maturing 5/1/03,
collateralized by U.S.Treasury Note, 5.88% due
11/15/04 with a repurchase amount of $17,000,604 17,000,000 17,340,599
Agreement with UBS Warburg, LLC and J.P. Morgan
Chase & Co. (Tri-party), 1.28%, dated 4/30/03 and
maturing 5/1/03, collateralized by U.S. Treasury Note,
1.88% due 9/30/04 with a repurchase amount of
$17,000,604 17,000,000 17,340,455
-------------------------------
TOTAL REPURCHASE AGREEMENTS
(Cost $40,674,000) 40,674,000 41,433,191
-------------------------------
</Table>
2
<Page>
<Table>
<Caption>
VALUE*
------------
TOTAL INVESTMENTS
(Cost $80,886,578) 99.94% $ 80,886,578
Other Assets in Excess of Liabilities 0.06% 48,384
------------------------
NET ASSETS 100.00% $ 80,934,962
========================
</Table>
*See Note 1 to financial statements.
INCOME TAX INFORMATION:
Total cost for federal income tax purposes: $80,886,578
3
<Page>
STATEMENT OF INVESTMENTS
U.S. GOVERNMENT MONEY MARKET FUND
APRIL 30, 2003
<Table>
<Caption>
FACE VALUE VALUE*
- ----------- --------------
U.S. GOVERNMENT AGENCY OBLIGATIONS 46.39%
Federal Home Loan Bank
$ 7,170,000 2.50%, 11/14/03 $ 7,194,788
Federal Home Loan Mortgage Corp., Discount Notes
12,250,000 1.30%, 5/22/03 12,240,658
10,000,000 1.24%, 6/30/03 9,979,259
23,000,000 1.74%, 8/14/03 22,882,364
4,000,000 1.08%, 9/11/03 3,984,016
3,500,000 1.75%, 10/9/03 3,472,462
8,000,000 1.08%, 12/5/03 7,947,839
5,000,000 1.26%, 12/29/03 4,957,562
4,000,000 1.25%, 2/26/04 3,958,153
Federal National Mortgage Association, Discount Notes
25,000,000 1.24%, 5/7/03 24,994,819
25,000,000 1.25%, 7/2/03 24,945,984
15,000,000 1.23%, 8/8/03 14,949,162
5,000,000 1.24%, 9/8/03 4,977,659
15,000,000 1.15%, 10/1/03 14,926,618
10,000,000 1.16%, 10/1/03 9,950,662
8,640,000 1.49%, 10/17/03 8,579,341
10,000,000 1.28%, 12/23/03 9,915,948
--------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $189,857,294) 189,857,294
--------------
</Table>
4
<Page>
<Table>
<Caption>
VALUE* COLLATERAL VALUE
-------------- ----------------
REPURCHASE AGREEMENTS COLLATERALIZED
BY U.S. GOVERNMENT OBLIGATIONS 53.70%
Agreement with ABN AMRO Bank and Bank of New York
(Tri-party), 1.34%, dated 4/30/03 and maturing 5/1/03,
collateralized by Federal Farm Credit Bank Bond, 6.60%
due 7/7/06, Federal Home Loan Bank Bonds, 2.25-6.38%,
due 11/14/03-8/15/22, Federal Home Loan Mortgage Corp.
Notes, 1.88-6.38%, due 11/15/03-4/15/06, Federal Home
Loan Mortgage Corp. Gold Pools #B90283, C00933,
7.50-9.00%, due 11/1/27-3/1/30, Federal National
Mortgage Association Notes, 3.00-7.40%, due
7/1/04-9/25/12, and Federal National Mortgage
Association Conventional Loan Pools #375618, 573282,
653633, 655589, 669052, 6.00-7.50%, due
12/1/07-10/1/32 with a repurchase amount of $100,003,722 $ 100,000,000 $ 102,000,936
Agreement with Credit Suisse First Boston and J.P. Morgan Chase
& Co. (Tri-party), 1.21%, dated 4/30/03 and maturing 5/1/03,
collateralized by Federal Home Loan Bank Bond, 4.50% due
11/15/12, and Federal Home Loan Mortgage Corp. Bond, 5.95%,
due 1/19/06 with a repurchase amount of $4,806,162 4,806,000 4,905,772
Agreement with Deutsche Bank and Bank of New York
(Tri-party), 1.34%, dated 4/30/03 and maturing 5/1/03,
collateralized by Federal Home Loan Mortgage Corp.
Gold Pools #C65222, C90611, E8156, 6.50-7.00%, due
8/1/16-3/1/32, Federal National Mortgage Association
Conventional Loan Pool #535933, 6.50%, due 5/1/31,
Government National Mortgage Association Real Estate
Mortgage Investment Trust CMO, 6.72%**, due 5/20/03,
and Government National Mortgage Association U.S.
Department of Veteran Affairs CMOs, 6.75-7.25%, due
2/15/23-6/15/23 with a repurchase amount of $15,000,558 15,000,000 15,300,000
Agreement with UBS Warburg, LLC and J.P. Morgan Chase & Co.
(Tri-party), 1.33%, dated 4/30/03 and maturing 5/1/03,
collateralized by Federal Home Loan Bank Bonds, 2.25-5.80%
due 5/15/06-9/2/08 with a repurchase amount of $100,003,694 100,000,000 102,002,180
------------------------------------
TOTAL REPURCHASE AGREEMENTS
(Cost $219,806,000) 219,806,000 224,208,888
------------------------------------
</Table>
5
<Page>
<Table>
<Caption>
VALUE*
-------------
TOTAL INVESTMENTS
(Cost $409,663,294) 100.09% $ 409,663,294
Liabilities in Excess of Other Assets -0.09% (352,451)
-------------------------
NET ASSETS 100.00% $ 409,310,843
=========================
</Table>
* See Note 1 to financial statements.
** Floating rate security - rate disclosed as of April 30, 2003. Maturity date
represents the next interest rate reset date.
CMO - Collateralized Mortgage Obligation
Income Tax Information:
Total cost for federal income tax purposes: $409,663,294
6
<Page>
STATEMENT OF INVESTMENTS
PRIME MONEY MARKET FUND
APRIL 30, 2003
<Table>
<Caption>
FACE VALUE VALUE*
- ---------- --------------
U.S. GOVERNMENT AGENCY OBLIGATIONS 14.77%
Federal Home Loan Mortgage Corp., Discount Notes
$ 7,600,000 1.30%, 5/22/03 $ 7,594,204
420,000 1.87%, 6/19/03 418,919
Federal National Mortgage Association, Discount Notes
5,000,000 1.15%, 10/1/03 4,975,540
9,200,000 1.49%, 10/17/03 9,135,409
--------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $22,124,072) 22,124,072
--------------
</Table>
<Table>
<Caption>
DUE DATE DISCOUNT RATE OR COUPON RATE PRINCIPAL AMOUNT
- -------- ---------------------------- ----------------
BANK NOTES 2.00%
Wells Fargo Bank
5/27/03 1.26%** $ 3,000,000 2,999,914
--------------
TOTAL BANK NOTES 2,999,914
(Cost $2,999,914) --------------
CERTIFICATES OF DEPOSIT 34.04%
Abbey National Bank, PLC
5/2/03 1.25%** 5,000,000 4,999,670
Bank of Nova Scotia
10/3/03 1.18% 2,000,000 2,000,000
10/17/03 1.24% 2,000,000 2,000,000
Branch Banking & Trust Corp.
5/12/03 1.29%** 5,000,000 4,999,414
HBOS Treasury Services, PLC
7/17/03 1.31% 5,000,000 5,000,000
11/6/03 1.30% 2,000,000 2,000,000
Norddeutsche Landesbank
6/3/03 1.27% 5,000,000 4,999,988
Royal Bank of Canada
6/13/03 1.28%** 5,000,000 4,999,121
</Table>
7
<Page>
<Table>
<Caption>
DUE DATE DISCOUNT RATE OR COUPON RATE PRINCIPAL AMOUNT VALUE*
- -------- ---------------------------- ---------------- --------------
CERTIFICATES OF DEPOSIT (continued)
Societe Generale
6/6/03 1.26% $ 5,000,000 $ 5,000,000
6/10/03 1.29%** 3,000,000 2,999,740
Southtrust Bank National
Association
7/14/03 1.25%** 3,000,000 3,000,153
7/17/03 1.29% 5,000,000 4,999,842
Wells Fargo Bank
6/20/03 1.25% 4,000,000 4,000,000
--------------
TOTAL CERTIFICATES OF DEPOSIT 50,997,928
(Cost $50,997,928) --------------
COMMERCIAL PAPER 28.05%
Amstel Funding Corp.
7/21/03 1.32% 5,000,000 4,985,095
Diageo Capital, PLC
8/13/03 1.27% 4,000,000 3,985,288
Galaxy Funding, Inc.
5/27/03 1.27% 5,000,000 4,995,403
GE Capital Int'l Funding
5/12/03 1.25% 5,000,000 4,998,088
Gemini Securitization Corp.
6/12/03 1.26% 5,000,000 4,992,649
Grampian Funding, Ltd., LLC
7/25/03 1.27% 3,000,000 2,990,999
Independence Funding Co., LLC
6/9/03 1.29% 5,000,000 4,993,012
Liberty Street Funding Corp.
6/6/03 1.24% 5,095,000 5,088,676
Sheffield Receivables Corp.
5/8/03 1.25% 5,000,000 4,998,784
--------------
TOTAL COMMERCIAL PAPER 42,027,994
(Cost $42,027,994) --------------
</Table>
8
<Page>
<Table>
<Caption>
DUE DATE DISCOUNT RATE OR COUPON RATE PRINCIPAL AMOUNT VALUE* COLLATERAL VALUE
- -------- ---------------------------- ---------------- -------------- ----------------
CORPORATE NOTES 10.03%
Caterpillar Financial
Services Corp.
5/6/03 1.48%** $ 5,000,000 $ 5,009,160
Citigroup, Inc.
5/9/03 1.54%** 5,000,000 5,012,266
J.P. Morgan Chase & Co.
5/6/03 1.47%** 5,000,000 5,005,929
--------------
TOTAL CORPORATE NOTES
(Cost $15,027,355) 15,027,355
--------------
REPURCHASE AGREEMENTS COLLATERALIZED
BY U.S. GOVERNMENT OBLIGATIONS 11.13%
Agreement with Credit Suisse First Boston
and J.P. Morgan Chase & Co. (Tri-party),
1.21%, dated 4/30/03 and maturing 5/1/03,
collateralized by Federal Home Loan
Mortgage Corp. Bond, 5.95%, due 1/19/06,
and Financing Corp. Bond, 9.65%, due
11/2/18 with a repurchase amount of
$16,676,560 16,676,000 $ 17,015,341
---------------------------------
TOTAL REPURCHASE AGREEMENTS 16,676,000
(Cost $16,676,000) --------------
TOTAL INVESTMENTS
(Cost $149,853,263) 100.02% $ 149,853,263
Liabilities in Excess of Other Assets -0.02% (23,911)
----------------------------------
NET ASSETS 100.00% $ 149,829,352
==================================
</Table>
* See note 1 to financial statements.
** Floating rate security - rate disclosed as of April 30, 2003. Maturity date
represents the next interest rate reset date.
INCOME TAX INFORMATION:
Total cost for federal income tax purposes: $149,853,263
9
<Page>
STATEMENTS OF ASSETS AND LIABILITIES
APRIL 30, 2003
<Table>
<Caption>
U.S. TREASURY U.S. GOVERNMENT PRIME
MONEY MARKET MONEY MARKET MONEY MARKET
FUND FUND FUND
------------------------------------------------------
ASSETS
Investments, at amortized cost (which
approximates market value) (1) -
see accompanying statement of investments $ 80,886,578 $ 409,663,294 $ 149,853,263
Interest receivable 133,739 90,791 131,911
Prepaid and other assets 4,851 14,186 4,908
------------------------------------------------------
Total Assets 81,025,168 409,768,271 149,990,082
------------------------------------------------------
LIABILITIES
Dividends payable 63,361 381,637 115,551
Accrued investment advisory fee 3,256 13,781 4,754
Accrued administration fee 17,543 51,593 17,793
Accrued board of trustees fee 1,331 5,142 2,275
Accrued SEC registration fee - 1,954 -
Other payables 4,715 3,321 20,357
------------------------------------------------------
Total Liabilities 90,206 457,428 160,730
------------------------------------------------------
NET ASSETS $ 80,934,962 $ 409,310,843 $ 149,829,352
======================================================
COMPOSITION OF NET ASSETS
Paid-in capital $ 80,955,992 $ 409,403,284 $ 149,779,481
(Over)/Undistributed net investment income (9,178) 15 -
Accumulated net realized gain/(loss) (11,852) (92,456) 49,871
------------------------------------------------------
NET ASSETS $ 80,934,962 $ 409,310,843 (2) $ 149,829,352 (2)
======================================================
Shares of beneficial interest outstanding
(no par value, unlimited shares
authorized) 80,961,861 409,251,995 (2) 149,779,481 (2)
------------------------------------------------------
Net asset value and redemption value per share $ 1.00 $ 1.00 $ 1.00
------------------------------------------------------
</Table>
(1) Including repurchase agreements for the U.S. Treasury Money Market, U.S.
Government Money Market, and Prime Money Market Funds in the amounts of
$40,674,000, $219,806,000, and $16,676,000, respectively.
<Table>
<Caption>
NET ASSETS SHARES OUTSTANDING
------------- ------------------
(2) U.S. Government Money Market Fund
Class I $ 407,146,927 407,088,079
Class II $ 2,163,916 2,163,916
<Caption>
NET ASSETS SHARES OUTSTANDING
------------- ------------------
Prime Money Market Fund
Class I $ 98,079,427 98,037,999
Class II $ 51,749,925 51,741,482
</Table>
See notes to financial statements.
10
<Page>
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED APRIL 30, 2003
<Table>
<Caption>
U.S. TREASURY U.S. GOVERNMENT PRIME
MONEY MARKET MONEY MARKET MONEY MARKET
FUND FUND FUND
------------------------------------------------------
INVESTMENT INCOME $ 1,359,914 $ 7,023,670 $ 2,946,298
------------------------------------------------------
EXPENSES
Investment advisory fee (Note 2) 43,074 173,759 71,937
Administration services (Note 2) 600,002 691,170 365,151
Legal 3,139 7,780 4,542
Insurance 3,211 15,787 6,917
State Registration 1,443 - -
Class I - 785 476
Class II - 1 155
Distribution - Class II - 1,143 178,572
Board of Trustees 3,007 13,335 6,095
Other 3,940 3,175 3,634
------------------------------------------------------
Total Expenses before fee waiver 657,816 906,935 637,479
Expenses waived by administrator (373,518) (40,959) (99,344)
------------------------------------------------------
Net Expenses 284,298 865,976 538,135
------------------------------------------------------
NET INVESTMENT INCOME 1,075,616 6,157,694 2,408,163
------------------------------------------------------
Net realized gain on investments - - 39,921
------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 1,075,616 $ 6,157,694 $ 2,448,084
======================================================
</Table>
See notes to financial statements.
11
<Page>
STATEMENT OF CHANGES IN NET ASSETS
<Table>
<Caption>
U.S. TREASURY
MONEY MARKET
FUND
---------------------------------------
FOR THE FOR THE
YEAR ENDED YEAR ENDED
APRIL 30, 2003 APRIL 30, 2002
---------------------------------------
OPERATIONS
Net investment income $ 1,075,616 $ 2,397,737
Net realized gain on investments - 738
---------------------------------------
Net increase in net assets resulting
from operations 1,075,616 2,398,475
---------------------------------------
DISTRIBUTIONS
Dividends to shareholders from net
investment income (1,075,616) (2,397,737)
---------------------------------------
BENEFICIAL INTEREST TRANSACTIONS (1)
Shares sold 311,027,805 365,919,974
Dividends reinvested 1,072,820 2,506,590
Shares redeemed (319,560,904) (354,621,692)
---------------------------------------
Net increase/(decrease) in net assets
from beneficial interest transactions (7,460,279) 13,804,872
---------------------------------------
Net increase/(decrease) in net assets (7,460,279) 13,805,610
NET ASSETS:
Beginning of period 88,395,241 74,589,631
---------------------------------------
End of period* $ 80,934,962 $ 88,395,241
=======================================
* Includes (over)/undistributed net
investment income of: $ (9,178) $ 4,352
</Table>
(1) At net asset value of $1.00 per share.
See notes to financial statements.
12
<Page>
<Table>
<Caption>
U.S. GOVERNMENT PRIME
MONEY MARKET MONEY MARKET
FUND FUND
--------------------------------------------------------------------
For the For the For the For the
Year Ended Year Ended Year Ended Year Ended
April 30, 2003 April 30, 2002 April 30, 2003 April 30, 2002
--------------------------------------------------------------------
OPERATIONS
Net investment income $ 6,157,694 $ 12,426,208 $ 2,408,163 $ 4,248,706
Net realized gain on investments - - 39,921 16,112
---------------------------------------------------------------------
Net increase in net assets resulting
from operations 6,157,694 12,426,208 2,448,084 4,264,818
---------------------------------------------------------------------
DISTRIBUTIONS
Dividends to shareholders from net
investment income
Class I (6,153,506) (12,426,193) (1,979,015) (4,246,260)
Class II (4,188) - (429,148) (2,446)
---------------------------------------------------------------------
Net decrease in net assets from
distributions (6,157,694) (12,426,193) (2,408,163) (4,248,706)
---------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS (1)
Class I
Shares sold 1,050,300,725 1,579,906,523 588,986,769 573,229,827
Dividends reinvested 5,892,046 11,847,730 928,401 642,652
Shares redeemed (1,115,527,969) (1,469,127,820) (630,139,577) (555,999,597)
Class II
Shares sold 3,241,911 - 114,464,985 4,029,900
Dividends reinvested 2,620 - 7,646 2,221
Shares redeemed (1,080,615) - (65,321,686) (1,480,265)
---------------------------------------------------------------------
Net increase/(decrease) in net assets
from beneficial interest transactions (57,171,282) 122,626,433 8,926,538 20,424,738
---------------------------------------------------------------------
Net increase/(decrease) in net assets (57,171,282) 122,626,448 8,966,459 20,440,850
NET ASSETS:
Beginning of period 466,482,125 343,855,677 140,862,893 120,422,043
---------------------------------------------------------------------
End of period* $ 409,310,843 $ 466,482,125 $ 149,829,352 $ 140,862,893
=====================================================================
* Includes undistributed net
investment income of: $ 15 $ 15 $ - $ -
</Table>
(1) At net asset value of $1.00 per share.
See notes to financial statements.
13
<Page>
FINANCIAL HIGHLIGHTS
U.S. TREASURY MONEY MARKET FUND
Selected data for a share of beneficial interest outstanding throughout the
period indicated:
<Table>
<Caption>
FOR THE
YEAR ENDED FOR THE YEAR ENDED
APRIL 30, APRIL 30,
2003 2002 2001 2000 1999
---------------------------------------------------------------
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.01 0.03 0.06 0.05 0.05
---------------------------------------------------------------
DISTRIBUTIONS
From net investment income (0.01) (0.03) (0.06) (0.05) (0.05)
---------------------------------------------------------------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
===============================================================
Total return 1.26% 2.53% 5.92% 5.01% 4.90%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000) $ 80,935 $ 88,395 $ 74,590 $ 78,943 $ 90,862
Ratio of expenses to average net assets 0.33% 0.33% 0.33% 0.33% 0.33%
Ratio of net investment income to
average net assets 1.25% 2.51% 5.82% 4.85% 4.83%
Ratio of expenses to average net assets
without fee waivers 0.76% 0.69% 0.80% 0.72% 0.57%
Ratio of net investment income to
average net assets without fee waivers 0.81% 2.15% 5.34% 4.46% 4.59%
</Table>
See notes to financial statements.
14
<Page>
FINANCIAL HIGHLIGHTS
U.S. GOVERNMENT MONEY MARKET FUND - CLASS I
Selected data for a share of beneficial interest outstanding throughout the
period indicated:
<Table>
<Caption>
FOR THE
YEAR ENDED FOR THE YEAR ENDED
APRIL 30, APRIL 30,
2003 2002 2001 2000 1999
---------------------------------------------------------------
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.01 0.03 0.06 0.05 0.05
---------------------------------------------------------------
DISTRIBUTIONS
From net investment income (0.01) (0.03) (0.06) (0.05) (0.05)
---------------------------------------------------------------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
===============================================================
Total return 1.43% 2.87% 6.14% 5.27% 5.16%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000) $ 407,147 $ 466,482 $ 343,856 $ 223,152 $ 352,333
Ratio of expenses to average net assets 0.20% 0.20% 0.20% 0.20% 0.20%
Ratio of net investment income to
average net assets 1.42% 2.78% 5.96% 5.12% 5.01%
Ratio of expenses to average net assets
without fee waivers 0.21% 0.21% 0.21% 0.22% 0.24%
Ratio of net investment income to
average net assets without fee waivers 1.41% 2.77% 5.95% 5.10% 4.96%
</Table>
See notes to financial statements.
15
<Page>
FINANCIAL HIGHLIGHTS
U.S. GOVERNMENT MONEY MARKET FUND - CLASS II
Selected data for a share of beneficial interest outstanding throughout the
period indicated:
<Table>
<Caption>
FOR THE PERIOD ENDED
APRIL 30, 2003 (1)
--------------------
Net asset value, beginning of period $ 1.00
-----------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.01
-----------
DISTRIBUTIONS
From net investment income (0.01)
-----------
Net asset value, end of period $ 1.00
===========
Total return 1.03%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000) $ 2,164
Ratio of expenses to average net assets 0.45%(2)
Ratio of net investment income to
average net assets 0.92%(2)
Ratio of expenses to average net assets
without fee waivers 0.46%(2)
Ratio of net investment income to
average net assets without fee waivers 0.91%(2)
</Table>
(1) Class II commenced operations on June 18, 2002.
(2) Annualized.
See notes to financial statements.
16
<Page>
FINANCIAL HIGHLIGHTS
PRIME MONEY MARKET FUND - CLASS I
Selected data for a share of beneficial interest outstanding throughout the
period indicated:
<Table>
<Caption>
FOR THE
YEAR ENDED FOR THE YEAR FOR THE PERIOD
APRIL 30, ENDED APRIL 30, DECEMBER 10, 1998 TO
2003 2002 2001 2000 APRIL 30, 1999(1)
-------------------------------------------------------------------------
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.01 0.03 0.06 0.05 0.02
--------------------------------------------------------------------
DISTRIBUTIONS
From net investment income (0.01) (0.03) (0.06) (0.05) (0.02)
--------------------------------------------------------------------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====================================================================
Total return 1.42% 2.88% 6.23% 5.43% 4.82%(2)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000) $ 98,079 $ 138,272 $ 120,383 $ 140,005 $ 167,257
Ratio of expenses to average net assets 0.20% 0.20% 0.20% 0.20% 0.20%(2)
Ratio of net investment income to
average net assets 1.46% 2.74% 6.06% 5.37% 4.71%(2)
Ratio of expenses to average net assets
without fee waivers 0.26% 0.28% 0.33% 0.28% 0.66%(2)
Ratio of net investment income to
average net assets without fee waivers 1.41% 2.66% 5.93% 5.28% 4.25%(2)
</Table>
(1) Class I commenced operations on December 10, 1998.
(2) Annualized.
See notes to financial statements.
17
<Page>
FINANCIAL HIGHLIGHTS
PRIME MONEY MARKET FUND - CLASS II
Selected data for a share of beneficial interest outstanding throughout the
period indicated:
<Table>
<Caption>
FOR THE
YEAR ENDED FOR THE YEAR FOR THE PERIOD
APRIL 30, ENDED APRIL 30, DECEMBER 10, 1998 TO
2003 2002 2001 2000 APRIL 30, 1999(1)
-------------------------------------------------------------------------
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.01 0.03 0.06 0.05 0.02
-------------------------------------------------------------------
DISTRIBUTIONS
From net investment income (0.01) (0.03) (0.06) (0.05) (0.02)
-------------------------------------------------------------------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
===================================================================
Total return 1.02% 2.62% 5.97% 5.17% 4.55%(2)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000) $ 51,750 $ 2,591 $ 39 $ 32 $ 2
Ratio of expenses to average net assets 0.60% 0.51% 0.45% 0.45% 0.45%(2)
Ratio of net investment income to
average net assets 0.96% 2.17% 5.88% 5.11% 4.53%(2)
Ratio of expenses to average net assets
without fee waivers 0.66% 0.60% 0.58% 0.57% 1.24%(2)
Ratio of net investment income to
average net assets without fee waivers 0.91% 2.08% 5.75% 4.99% 3.74%(2)
</Table>
(1) Class II commenced operations on December 23, 1998.
(2) Annualized.
See notes to financial statements.
18
<Page>
NOTES
1. SIGNIFICANT ACCOUNTING POLICIES
Financial Investors Trust, a Delaware business trust, is registered under
the Investment Company Act of 1940, as amended, as an open-end management
investment company. The financial statements included herein relate to the U.S.
Treasury Money Market Fund, U.S. Government Money Market Fund and the Prime
Money Market Fund (the "Funds"). The financial statements of the remaining
portfolios of the Trust are presented separately.
The U.S. Government Money Market Fund and the Prime Money Market Fund offer
two classes of shares (Class I and Class II). Class I and Class II are identical
in all respects with the exception that Class II shares charge a distribution
fee and have a lower investment minimum. Each Class of shares has equal rights
as to earnings, assets and voting privileges except that Class II has exclusive
voting rights with respect to its Distribution Plan. Income, expenses (other
than expenses incurred under the Class II Distribution Plan and other class
specific expenses) and realized gains or losses on investments are allocated to
each Class based upon their relative net assets.
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. The
policies are in conformity with accounting principles generally accepted in the
United States of America.
INVESTMENT VALUATION: The Funds value their securities on the basis of
amortized cost which approximates market value.
REPURCHASE AGREEMENTS: The Funds' custodian takes possession of the
collateral pledged for investments in repurchase agreements. The underlying
collateral is valued daily on a mark-to-market basis to ensure that value,
including accrued interest, is at least equal to the repurchase price. In the
event of default on the obligation to repurchase, the Funds have the right to
liquidate the collateral and apply the proceeds in satisfaction of the
obligation. Under certain circumstances, in the event of default by or
bankruptcy of the other party to the agreement, realization and/or retention of
the collateral may be subject to legal proceedings.
FEDERAL INCOME TAXES: It is the Funds' policy to continue to comply with
provisions of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of their taxable income to shareholders.
Therefore, no federal income tax provisions are required.
At April 30, 2003, the U.S. Treasury Money Market and U.S. Government Money
Market Funds had available for federal income tax purposes unused capital loss
carryovers of $11,852 and $92,457 respectively, expiring between 2004 and 2008.
CLASSIFICATION OF DISTRIBUTIONS TO SHAREHOLDERS: Net investment income
(loss) and net realized gain (loss) may differ for financial statement and tax
purposes. 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. Also, due to the timing of
dividend distributions, the fiscal year in which amounts are distributed may
differ from the fiscal year in which the income or realized gain was recorded by
the Fund.
The Fund adjusts the classification of distributions to shareholders to
reflect the differences between financial statement amounts and distributions
determined in accordance with income tax regulations. Accordingly, during the
year ended April 30, 2003, amounts have been reclassified on the U.S. Treasury
Money Market Fund to reflect a decrease in accumulated net realized loss on
investments of $5,869. In addition, amounts have been reclassified to reflect an
increase in paid in capital of $7,661 and a decrease of $13,530 to
(over)/undistributed net investment income. Net assets of the U.S. Treasury
Money Market Fund were unaffected by the classifications.
EXPENSES: Most expenses of the Trust can be directly attributed to a Fund.
Expenses which cannot be directly attributed are apportioned among all funds in
the Trust based on average net assets.
OTHER: Investment transactions are accounted for on the date the
investments are purchased or sold (trade date). Dividends from net investment
income are declared daily and paid monthly. Distributions of accumulated net
realized gains, if any, are declared at least once a year. Realized gains and
losses from investment transactions are reported on an identified cost basis
which is the same basis the Funds use for federal income tax purposes.
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from these
estimates.
19
<Page>
2. INVESTMENT ADVISORY FEES, ADMINISTRATION FEES AND OTHER RELATED PARTY
TRANSACTIONS
The Financial Investors Trust Board of Trustees approved at their regularly
scheduled meeting on December 17, 2002, to enter into an interim advisory
agreement with SSgA Management, Inc. ("SSgA") pursuant to Rule 15a-4 (the
"Rule") of the Investment Company Act of 1940 (the "Act"). Effective January 13,
2003, SSgA assumed the investment advisory responsibility for the Financial
Investors Trust Money Market Funds. Pursuant to the interim advisory agreement,
SSgA is entitled to an advisory fee, based on the existing fee schedule with GE
Asset Management, Inc. ("GEAM"). The Funds have 150 days to have SSgA approved
by shareholders as the investment adviser. Once approved by shareholders, SSgA's
new advisory agreement will be in effect, at the advisory fees agreed to with
the Funds and approved by shareholders. Information contained in this report
prior to January 13, 2003, reflects the operations of the funds while GEAM was
the advisor.
<Table>
<Caption>
U.S. TREASURY U.S. GOVERNMENT PRIME
AVERAGE NET ASSETS MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET FUND
- ------------------ ----------------- ----------------- -----------------
First $500 million 0.05% 0.04% 0.04%
Next $500 million 0.075% 0.06% 0.06%
Next $500 million 0.10% 0.08% 0.08%
In excess of $1.5 billion 0.15% 0.08% 0.08%
</Table>
ALPS Mutual Funds Services, Inc. ("ALPS") serves as the Funds'
administrator. ALPS is entitled to receive a fee from each Fund for its
administrative services, computed daily and payable monthly, based on the
following fee schedule:
<Table>
<Caption>
U.S. TREASURY U.S. GOVERNMENT PRIME
AVERAGE NET ASSETS MONEY MARKET FUND* MONEY MARKET FUND* MONEY MARKET FUND*
- ------------------ ------------------ ------------------ ------------------
First $500 million 0.26% 0.16% 0.16%
Next $500 million 0.24% 0.14% 0.14%
In excess of $1 billion 0.22% 0.12% 0.12%
</Table>
*Subject to a minimum monthly fee of $50,000, $30,000 and $30,000 for the U.S.
Treasury Money Market Fund, U.S. Government Money Market Fund and Prime Money
Market Fund, respectively.
ALPS has contractually agreed to waive a portion of its fees so that the
total annual expenses of each Fund will not exceed the expense limitations
adopted by ALPS until at least April 30, 2004. After that date, the fee waivers
by ALPS are voluntary and may be terminated at any time.
Administration services include: fund accounting, daily pricing, custody,
registration, shareholder servicing, transfer agency, fund ratings, audit, and
printing.
The Trustees have adopted a Distribution Plan on behalf of Class II of the
U.S. Government Money Market Fund and the Prime Money Market Fund ("Class II")
pursuant to Rule 12b-1 under the Investment Company Act of 1940, as amended. The
Distribution Plan provides for payment of a fee to the Distributor, ALPS
Distributors, Inc. at the annual rate of .25% of the average net assets of Class
II of the U.S. Government Money Market Fund and .40% of the average net assets
of Class II of the Prime Money Market Fund.
Shareholders holding more than 10% of the Funds' outstanding shares as of
April 30, 2003, constituted 23.0 percent of the U.S. Government Money Market
Fund and 84.0 percent of the Prime Money Market Fund.
3. TRUSTEES (Unaudited)
As of April 30, 2003, the Funds are three of six separate series under the
Trust. The Trust's Board of Trustees oversees the overall management of each
series of the Trust and elects the officers of the Trust. The principal
occupations for the past five years of the Trustees and executive officers of
the Trust are listed below. Trustees deemed to be "interested persons" of the
Trust for purposes of the 1940 Act are indicated by an asterisk.
20
<Page>
INTERESTED TRUSTEES
<Table>
<Caption>
TERM OF OFFICE, LENGTH
OF TIME SERVED AND PRINCIPAL OCCUPATION DURING THE PAST 5
POSITION(S) HELD NUMBER OF PORTFOLIOS YEARS* AND OTHER DIRECTORSHIPS
NAME, ADDRESS & AGE WITH FUNDS OVERSEEN HELD BY TRUSTEE
- ------------------------------------------------------------------------------------------------------------------------------------
W. Robert Alexander (75) Trustee and Chairman W. Robert Alexander was elected Mr. Alexander is the Chief
(75) by the initial shareholder in Executive Officer of ALPS Mutual
December 1993 and oversees 6 Funds Services, Inc., and ALPS
1625 Broadway portfolios in fund complex. Distributors, Inc., which provide
Suite 2200 administration and distribution
Denver, CO 80202 services, respectively, for
proprietary mutual fund complexes.
Mr. Alexander was Vice Chairman of
First Interstate Bank of Denver,
responsible for Trust, Private
Banking, Retail Banking, Cash
Management Services and Marketing.
Mr. Alexander is currently a
member of the Board of Trustees of
the Hunter and Hughes Trusts.
Because of his affiliation with
ALPS Mutual Funds Services and
ALPS Distributors, Mr. Alexander
is considered an "interested"
Trustee of the Trust.
INDEPENDENT TRUSTEES
Mary K. Anstine (62) Trustee Mary K. Anstine was elected at a President/Chief Executive Officer,
special meeting of shareholders HealthONE Alliance, Denver,
1625 Broadway held on March 21, 1997 and Colorado; Former Executive Vice
Suite 2200 oversees 6 portfolios in fund President, First Interstate Bank
Denver, CO 80202 complex. of Denver. Ms. Anstine is
currently a Director of the Trust of
Colorado, Trustee of the Denver Area
Council of the Boy Scouts of
America, a Director of the Junior
Achievement Board and the Colorado
Uplift Board, and a member of the
Advisory Boards for the Girl Scouts
Mile Hi Council and the Hospice of
Metro Denver. Formerly, Ms. Anstine
served as a Director of ALPS
Distributors, Inc., from October
1995 to December 1996; Director of
HealthONE; a member of the American
Bankers Association Trust Executive
Committee; and Director of the
Center for Dispute Resolution.
</Table>
21
<Page>
INDEPENDENT TRUSTEES
<Table>
<Caption>
TERM OF OFFICE, LENGTH OF PRINCIPAL OCCUPATION DURING THE PAST 5
POSITION(S) HELD TIME SERVED AND NUMBER YEARS* AND OTHER DIRECTORSHIPS HELD BY
NAME, ADDRESS & AGE WITH FUNDS OF PORTFOLIOS OVERSEEN TRUSTEE
- ------------------------------------------------------------------------------------------------------------------------------------
Edwin B. Crowder (71) Trustee Edwin B. Crowder was elected at a Mr. Crowder currently operates a
special meeting of shareholders marketing concern with operations in
1625 Broadway held on March 21, 1997 and the U.S. and Latin America. He has
Suite 2200 oversees 6 portfolios in fund previously engaged in business pursuits
Denver, CO 80202 complex. in the restaurant, oil and gas
drilling, and real estate development
industries. Mr. Crowder is a former
Director of Athletics and Head Football
Coach at the University of Colorado.
Robert E. Lee (67) Trustee Robert E. Lee was appointed as a Mr. Lee has been a Director of
Trustee at the December 15, 1998, Storage Technology Corporation
1625 Broadway meeting of the Board of Trustees since 1989 and of Equitable of
Suite 2200 and oversees 6 portfolios in fund Iowa since 1981. Mr. Lee was the
Denver, CO 80202 complex. Executive Director of The Denver
Foundation from 1989 to 1996, and
is currently the Executive
Director of Emeritus. Mr. Lee is
also a Director of Meredith
Capital Corporation and Source
Capital Corporation.
John R. Moran, Jr. (72) Trustee John R. Moran was elected at a Mr. Moran is President of The
special meeting of shareholders Colorado Trust, a private
1625 Broadway held on March 21, 1997 and foundation serving the health and
Suite 2200 oversees 6 portfolios in fund hospital community in the State of
Denver, CO 80202 complex. Colorado. An attorney, Mr. Moran
was formerly a partner with the firm
of Kutak Rock & Campbell in Denver,
Colorado and a member of the
Colorado House of Representatives.
Currently, Mr. Moran is a member of
the Board of Directors and Treasurer
of Grantmakers in Health; a Director
of the Conference of Southwest
Foundations; a member of the
Treasurer's Office Investment
Advisory Committee for the
University of Colorado; a Trustee of
the Robert J. Kutak Foundation;
Director of the Colorado Wildlife
Heritage Foundation; and a member of
the Alumni Council of the University
of Denver College of Law.
</Table>
- ----------
* Except as otherwise indicated, each individual has held the office shown or
other offices in the same company for the last five years.
22
<Page>
INTENTIONALLY LEFT BLANK
<Page>
ANNUAL REPORT
INTERIM ADVISER (1/13/03-4/30/03)
SSgA Funds Management, Inc.
1 International Place, 25th Floor
Boston, Massachusetts 02110
INVESTMENT ADVISER (5/1/02-1/12/03)
GE Asset Management, Inc.
3003 Summer Street
P.O. Box 7900
Stamford, Connecticut 06905
[FINANCIAL INVESTORS TRUST LOGO]
ADMINISTRATOR, TRANSFER AGENT &
FUND ACCOUNTANT
ALPS Mutual Funds Services, Inc.
1625 Broadway
Suite 2200
Denver, Colorado 80202
DISTRIBUTOR
ALPS Distributors, Inc.
1625 Broadway
Suite 2200
Denver, Colorado 80202
LEGAL COUNSEL
Davis Graham & Stubbs LLP
1550 Seventeenth Street
Suite 500
Denver, Colorado 80202
INDEPENDENT AUDITORS
Deloitte & Touche LLP
555 Seventeenth Street
Suite 3600
Denver, Colorado 80202
CUSTODIAN
State Street Bank & Trust Company
of Connecticut N.A.
750 Main Street
Suite 1114
Hartford, Connecticut 06103
SUB-CUSTODIAN
State Street Bank & Trust Company
1776 Heritage Drive
North Quincy, Massachusetts 02171
Must be accompanied or preceded by a
current prospectus.
For more information, please call
800.298.3442 or visit
www.fitfunds.com
An investment in the Fund is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency. Although the Fund
seeks to preserve the value of your investment at $1.00 per share, it is
possible to lose money by investing in the Fund.
April 30, 2003
<Page>
[ARISTATA(TM) MUTUAL FUNDS A CLASS ABOVE LOGO]
[GRAPHIC]
ANNUAL REPORT
APRIL 30, 2003
THESE FUNDS ARE NEITHER INSURED NOR GUARANTEED BY THE U.S. GOVERNMENT, THE FDIC,
THE FEDERAL RESERVE BOARD OR ANY OTHER GOVERNMENTAL AGENCY OR INSURER.
INVESTMENT ADVISER
TEMPEST INVESTMENT COUNSELORS, INC.
1380 LAWRENCE STREET
SUITE 1050
DENVER, COLORADO 80204
ADMINISTRATOR, TRANSFER AGENT
& FUND ACCOUNTANT
ALPS MUTUAL FUNDS SERVICES, INC.
1625 BROADWAY
SUITE 2200
DENVER, COLORADO 80202
DISTRIBUTOR
ALPS DISTRIBUTORS, INC.
1625 BROADWAY
SUITE 2200
DENVER, COLORADO 80202
LEGAL COUNSEL
DAVIS GRAHAM & STUBBS LLP
1550 SEVENTEENTH STREET
SUITE 500
DENVER, COLORADO 80202
INDEPENDENT AUDITORS
DELOITTE & TOUCHE LLP
555 SEVENTEENTH STREET
SUITE 3600
DENVER, COLORADO 80202
CUSTODIAN
FIFTH THIRD BANK, N.A.
FIFTH THIRD CENTER
38 FOUNTAIN SQUARE PLAZA
CINCINNATI, OHIO 45263
MUST BE ACCOMPANIED OR PRECEDED BY A CURRENT PROSPECTUS.
FOR MORE INFORMATION, PLEASE CALL 1-800-644-8595 OR VISIT www.aristata.com
[ALPS DISTRIBUTORS, INC. LOGO]
<Page>
LETTER FROM THE INVESTMENT ADVISER
Dear Fellow Shareholders,
We are pleased to offer to you our annual report for the period ended April 30,
2003.
During the past twelve months unfolding world events related to the Iraq war,
lingering investigations of corporate malfeasance and recurring doubt about the
economy coalesced to create an environment of uncertainty. The combination of
these events has elevated everyone's anxiety. Hence, we believe investors should
take a long-term approach to investing.
The past three years have been an extraordinarily challenging time for the
economy, investors, and for the investment industry. Our commitment to the
Aristata shareholders remains focused on managing the assets entrusted to us
with an appreciation for understanding risks and a dedication for seeking
opportunities. Our investment disciplines and research efforts are centered upon
the principles of diversification to manage risk and strong research to identify
long-term values. All of us with TEMPEST INVESTMENT COUNSELORS, INC. appreciate
the trust and confidence you have placed in us as the investment adviser to the
Aristata Family of Funds. As always, we would enjoy discussing your questions.
Sincerely,
/s/ H. David Lansdowne
H. David Lansdowne, CFA
President
TEMPEST INVESTMENT COUNSELORS, INC.
1
<Page>
FUND REVIEW
ARISTATA EQUITY FUND
PERFORMANCE
The Aristata Equity Fund's total return for the fiscal year ended April 30, 2003
was -17.3%. The Standard & Poor's 500 Index registered a decline of -13.3%
during the same period. The majority of the decline occurred in the first half
of the year, while the fund experienced positive returns in the last month of
its fiscal year, April 2003.
The Aristata Equity Fund was underweighted in the technology sector and this has
dampened results recently. Looking at the last three years, however, presents a
different picture. After peaking in early 2000, the technology sector has
underperformed the broader market, and our underweighting in the technology
sector boosted returns.
For comparative purposes, the Value Line Index (a broader representation of the
equity market) was down -25.6% over the last 12 months.
EQUITY MARKET OVERVIEW
Since our last report to you six months ago, the stock market is up, with most,
or all of the gains realized in the most recent month (April). The Standard &
Poor's 500 Index was up 4.5% over the last six months, but this number includes
a rise of +8.2% in April alone. Excluding the month of April, the S&P 500 was
down over the last 12 months. Similarly the technology heavy Nasdaq index is up
10.1% for the last six months, including an increase of 9.2% in the month of
April alone. The Aristata Equity Fund followed this pattern, rising 6.4% in
April, and 6.5% for the most recent 6-month period.
DIVIDENDS - A COMING CHANGE IN THE TAX CODE?
Over the last century, dividends have been a significant part of the total
return on stocks. One outgrowth of the accounting scandals may be that companies
and investors will be encouraged to focus more on dividends. Unlike "earnings",
dividends require real cash to be disbursed, and no accounting tricks can change
that.
Our investment style at TEMPEST always has been favorably disposed towards the
dividend component of total return. This has resulted in the securities held by
the Aristata Equity Fund typically having dividend yields in excess of the
overall market.
2
<Page>
Of further interest to investors, one proposed change may include an effective
reduction in capital gains taxes. As Congress considers changes to the tax code
that would remove or reduce the double taxation of dividends and corporate
profits in general, we will be following these events closely.
PORTFOLIO UPDATE
The fifteen largest holdings represent approximately 43% of the total portfolio.
These fifteen companies have an average price-to-earnings (PE) ratio of 18.4x
based on earnings for the last 12 months and an average dividend yield of 2.5%.
In contrast, the S&P 500 has a PE ratio of about 30x reported earnings and a
current dividend yield of 1.8%.
[CHART]
ARISTATA EQUITY FUND
SECTOR PROFILE AS OF APRIL 30, 2003
<Table>
Telecommunications - 5.1%
Building/Real Estate - 6.9%
Consumer Durables - 1.6%
Consumer Staples - 8.3%
Electic & Gas Utilities - 6.2%
Energy - 10.3%
Financial - 10.0%
Healthcare - 16.1%
Technology - 11.3%
Industrial Products & Services - 12.8%
Transportation - 3.0%
Short-Term Investments - 2.9%
Basic Materials - 5.5%
</Table>
FIFTEEN LARGEST HOLDINGS(2) - AS OF APRIL 30, 2003
<Table>
<Caption>
SECTOR % OF DIVIDEND PRICE
COMPANY REPRESENTATION INVESTMENTS YIELD EARNINGS RATIO
- -------------------------------------------------------------------------------------------------------------------------------
AMGEN, Inc. Healthcare 3.9% 0.0% N/A
Abbott Laboratories Healthcare 3.8% 2.3% 23.2x
Questar Corp. Electric & Gas Utilities 2.9% 2.5% 13.1x
Westport Resources Energy 2.9% 0.0% N/A
Valero Energy Energy 2.9% 1.1% 13.7x
Int'l Business Machines Corp. Technology 2.9% 0.7% 27.0x
Marsh & Mclennan Financial 2.8% 2.3% 18.8X
Snap On, Inc. Industrial Products & Svcs. 2.7% 3.4% 16.7x
Verizon Communications, Inc. Telecommunications 2.7% 4.1% 16.4x
Emerson Electric Industrial Products & Svcs. 2.7% 3.1% 21.5x
Albertson's, Inc. Consumer Staples 2.6% 3.8% 9.5x
Ingersoll Rand Co. Industrial Products & Svcs. 2.6% 1.5% 19.2x
BellSouth Telecommunications 2.6% 3.0% 19.3x
BP PLC Energy 2.6% 3.5% 14.7x
Duke Realty Corp. Building/Real Estate 2.6% 6.6% 25.6x
FIFTEEN LARGEST HOLDINGS 43.2% 2.5% AVG. 18.4 x AVG.
STANDARD & POOR'S 500 1.8% 29.9
</Table>
3
<Page>
Comparison of Change in Value of $10,000 Investment in the Aristata Equity Fund,
the S&P 500, Value Line Composite, and the Lipper Multi-Cap Value Fund Index.
[CHART]
<Table>
<Caption>
ARISTATA EQUITY FUND S&P 500* VALUE LINE COMPOSITE LIPPER MULTI-CAP VALUE FUND INDEX
3/2/1998 $10,000 $10,000 $10,000 $10,000
$10,410 $10,513 $10,437 $10,449
$10,454 $10,620 $10,477 $10,508
$10,229 $10,431 $10,051 $10,275
$10,189 $10,856 $10,003 $10,264
$9,997 $10,743 $9,367 $9,867
$8,775 $9,188 $7,728 $8,358
$9,279 $9,775 $8,087 $8,704
$9,933 $10,575 $8,632 $9,420
$10,244 $11,214 $8,986 $9,827
$10,607 $11,861 $9,279 $9,990
$10,359 $12,360 $9,166 $10,025
$10,177 $11,972 $8,652 $9,792
$10,445 $12,451 $8,731 $10,062
4/30/1999 $11,435 $12,937 $9,518 $10,957
$11,598 $12,624 $9,634 $10,900
$12,001 $13,325 $9,981 $11,251
$11,718 $12,911 $9,721 $10,868
$11,490 $12,844 $9,303 $10,494
$10,886 $12,492 $8,984 $10,041
$10,897 $13,283 $8,932 $10,352
$11,083 $13,553 $9,044 $10,347
$11,326 $14,351 $9,311 $10,583
$11,001 $13,631 $8,864 $10,127
$10,677 $13,373 $8,712 $9,594
$11,639 $14,681 $9,296 $10,608
4/30/2000 $11,689 $14,240 $9,113 $10,588
$11,939 $13,943 $8,889 $10,735
$11,599 $14,290 $8,872 $10,502
$11,549 $14,069 $8,916 $10,591
$12,264 $14,937 $9,492 $11,263
$12,122 $14,148 $9,160 $11,107
$12,298 $14,088 $8,940 $11,371
$11,908 $12,977 $8,237 $10,951
$12,456 $13,041 $8,608 $11,603
$12,786 $13,504 $9,219 $12,041
$12,511 $12,272 $8,657 $11,712
$12,107 $11,495 $8,094 $11,301
4/30/2001 $12,894 $12,388 $8,636 $12,034
$13,239 $12,471 $8,861 $12,300
$12,539 $12,167 $8,781 $12,092
$12,526 $12,048 $8,544 $12,076
$12,249 $11,293 $8,108 $11,628
$11,135 $10,381 $6,851 $10,436
$11,371 $10,579 $7,180 $10,651
$12,107 $11,391 $7,812 $11,422
$12,337 $11,491 $8,164 $11,753
$12,159 $11,323 $8,017 $11,600
$12,144 $11,105 $7,792 $11,448
$12,594 $11,522 $8,377 $12,033
4/30/2002 $12,251 $10,824 $8,167 $11,679
$12,087 $10,757 $7,865 $11,668
$11,194 $9,991 $7,212 $10,775
$9,999 $9,212 $6,195 $9,881
$10,216 $9,273 $6,158 $10,038
$8,989 $8,265 $5,469 $8,950
$9,519 $8,993 $5,731 $9,429
$10,253 $9,510 $6,304 $10,131
$9,995 $8,952 $5,932 $9,684
$9,588 $8,717 $5,748 $9,484
$9,400 $8,586 $5,536 $9,241
$9,527 $8,670 $5,530 $9,276
4/30/2003 $10,138 $9,384 $6,078 $10,082
</Table>
*FUND BENCHMARK INDEX
PERFORMANCE
AS OF APRIL 30,2003
<Table>
<Caption>
AVERAGE ANNUAL TOTAL RETURN (1) 1 YEAR 3 YEAR 5 YEAR SINCE INCEPTION (3/2/98)
Aristata Equity Fund (17.25)% (4.63)% (0.61)% 0.27%
S&P 500 Index (13.30)% (12.98)% (2.45)% (1.22)%
Value Line Composite Index (25.59)% (12.63)% (10.32)% (9.19)%
Lipper Multi-Cap Value Fund Index (13.68)% (1.62)% (0.83)% 0.16%
</Table>
THE TOTAL RETURN FIGURES REPRESENT PAST PERFORMANCE AND ARE NOT INDICATIVE OF
FUTURE RESULTS. THE GRAPH AND PERFORMANCE TABLE DO NOT REFLECT THE DEDUCTION OF
TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF
SHARES.
4
<Page>
FUND REVIEW
ARISTATA QUALITY BOND FUND AND ARISTATA COLORADO QUALITY TAX-EXEMPT FUND
PERFORMANCE
The Aristata Quality Bond Fund's total return for the fiscal year ended April
30, 2003 was 8.93%. The Lehman Brothers Government/Credit Bond Index and the
Lehman Brothers Intermediate Government/Credit Bond Index registered returns of
12.42% and 10.74%, respectively. As of April 30th, net assets of the Aristata
Quality Bond Fund were $16.4 million. The Aristata Colorado Quality Tax-Exempt
Fund had net assets of $14.0 million for the same ending period, while its 12
month total return was 7.19%. Returns for the Lipper Municipal Intermediate Bond
and the Lehman Brothers Municipal Index were 7.24% and 8.50%, respectively.
FIXED INCOME MARKET REVIEW
The war with Iraq, threats of terrorism, and the possibility of renewed economic
weakness have kept bond yields low. Anxieties over the Iraqi crisis and rising
unemployment have dampened economic activity.
As the war with Iraq appears to be winding down, the bond market now appears to
be focusing its attention on the direction of the economy. In the months ahead,
we will continue to monitor the world events and their impact on the financial
markets. We continue to believe a well-balanced portfolio of fixed income
obligations can help manage the risks of uncertainty during these precarious
times.
The volatility in the stock market has continued to keep investors' demand for
bonds steady. The Federal Reserve most recently kept short rates unchanged but
acknowledged that it is unclear in knowing how to assess the current economic
conditions. The Federal Reserve has said it will closely monitor and stand ready
to aid a softening economy if need be. Also, tax cuts appear to be on the way,
although smaller than anticipated, and will possibly help stimulate the economy
moving forward.
5
<Page>
PORTFOLIO UPDATE
ARISTATA QUALITY BOND FUND
Several areas of fixed income have offered opportunities. We have maintained our
emphasis on high quality credit issues. U.S. Government agencies and high rated
corporates continue to offer income producing alternatives.
As of April 30th, the Aristata Quality Bond Fund held 58% in investment-grade
corporate bonds and 36% in U.S. Government and agency obligations. The Fund's
average maturity on April 30th was 7.3 years.
[CHART]
ARISTATA QUALITY BOND FUND
SECTOR PROFILE AS OF APRIL 30, 2003*
<Table>
U.S. Government & Agency Obligations - 36.0%
Communications - 5.1%
Electric Utilities - 0.8%
Financial - 21.1%
Industrial - 29.9%
Short-Term Investments - 6.3%
</Table>
* Other Assets in Excess of Liabilities 0.8%
[CHART]
ARISTATA QUALITY BOND FUND
QUALITY PROFILE (3) AS OF APRIL 30, 2003
<Table>
Aaa - 43.7%
Aa - 21.1%
A - 32.4%
Baa - 2.8%
</Table>
6
<Page>
Comparison of Change in Value of $10,000 Investment in the Aristata Quality Bond
Fund, the Lehman Brothers Government/Credit Bond Index and the Lehman Brothers
Intermediate Government/Credit Bond Index.
[CHART]
<Table>
<Caption>
ARISTATA QUALITY LEHMAN BROTHERS GOV'T/CREDIT LEHMAN BROTHERS INTERMEDIATE LIPPER CORP.
BOND FUND BOND INDEX* GOV'T/CREDIT BOND INDEX "A" RATED
3/2/1998 $10,000 $10,000 $10,000 $10,000
$10,030 $10,031 $10,032 $10,037
$10,069 $10,081 $10,082 $10,084
$10,158 $10,189 $10,156 $10,193
$10,218 $10,293 $10,221 $10,283
$10,251 $10,301 $10,256 $10,285
$10,400 $10,502 $10,418 $10,377
$10,636 $10,802 $10,679 $10,609
$10,585 $10,726 $10,669 $10,475
$10,602 $10,790 $10,667 $10,588
$10,641 $10,816 $10,710 $10,623
$10,687 $10,893 $10,769 $10,713
$10,537 $10,633 $10,610 $10,475
$10,599 $10,687 $10,690 $10,544
4/30/1999 $10,622 $10,713 $10,723 $10,578
$10,542 $10,603 $10,641 $10,458
$10,519 $10,570 $10,648 $10,407
$10,508 $10,541 $10,639 $10,361
$10,495 $10,532 $10,647 $10,332
$10,603 $10,627 $10,746 $10,431
$10,613 $10,655 $10,774 $10,447
$10,611 $10,648 $10,787 $10,454
$10,569 $10,583 $10,751 $10,406
$10,507 $10,580 $10,712 $10,384
$10,597 $10,712 $10,799 $10,494
$10,702 $10,867 $10,912 $10,636
4/30/2000 $10,652 $10,813 $10,887 $10,549
$10,663 $10,804 $10,904 $10,509
$10,862 $11,024 $11,096 $10,743
$10,916 $11,141 $11,180 $10,834
$11,044 $11,298 $11,312 $10,978
$11,139 $11,341 $11,415 $11,039
$11,149 $11,412 $11,468 $11,085
$11,303 $11,607 $11,624 $11,249
$11,483 $11,836 $11,838 $11,479
$11,647 $12,035 $12,032 $11,693
$11,779 $12,159 $12,146 $11,798
$11,863 $12,215 $12,239 $11,840
4/30/2001 $11,859 $12,123 $12,208 $11,773
$11,916 $12,194 $12,276 $11,851
$11,951 $12,252 $12,321 $11,899
$12,142 $12,557 $12,578 $12,169
$12,241 $12,718 $12,703 $12,306
$12,410 $12,835 $12,889 $12,354
$12,556 $13,161 $13,103 $12,620
$12,481 $12,945 $12,972 $12,467
$12,425 $12,843 $12,901 $12,373
$12,481 $12,936 $12,968 $12,460
$12,538 $13,046 $13,070 $12,553
$12,366 $12,782 $12,871 $12,352
4/30/2002 $12,552 $13,030 $13,084 $12,571
$12,664 $13,151 $13,216 $12,667
$12,808 $13,263 $13,330 $12,722
$12,973 $13,422 $13,487 $12,798
$13,113 $13,722 $13,688 $13,032
$13,299 $14,017 $13,933 $13,234
$13,287 $13,883 $13,879 $13,101
$13,210 $13,890 $13,865 $13,148
$13,466 $14,258 $14,167 $13,434
$13,451 $14,258 $14,165 $13,462
$13,625 $14,512 $14,365 $13,659
$13,587 $14,493 $14,380 $13,649
4/30/2003 $13,673 $14,648 $14,489 $13,801
</Table>
*FUND BENCHMARK INDEX
PERFORMANCE
AS OF APRIL 30, 2003
<Table>
<Caption>
AVERAGE ANNUAL TOTAL RETURN (1) 1 YEAR 3 YEAR 5 YEAR SINCE INCEPTION (3/2/98)
Aristata Quality Bond Fund 8.93% 8.68% 6.31% 6.24%
Lehman Bros.Gov't/Credit Bond Index 12.42% 10.65% 7.76% 7.67%
Lehman Bros. Intermediate Gov't/Credit Bond Index 10.74% 10.00% 7.52% 7.44%
Lipper Corporate Debt Funds A Rated Index 9.78% 9.37% 6.48% 6.43%
</Table>
THE TOTAL RETURN FIGURES REPRESENT PAST PERFORMANCE AND ARE NOT INDICATIVE OF
FUTURE RESULTS. THE GRAPH AND PERFORMANCE TABLE DO NOT REFLECT THE DEDUCTION OF
TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF
SHARES.
7
<Page>
PORTFOLIO UPDATE
ARISTATA COLORADO QUALITY TAX-EXEMPT FUND
Municipal bond prices have provided relative stability during the period under
review. The Aristata Colorado Quality Tax-Exempt portfolio remains invested in
high quality issues with several issues having bond insurance.
The Fund's average maturity on April 30th was 10.2 years with a broad
diversification of holdings. As we monitor the upcoming supply of Colorado
municipals, the Fund will continue to emphasize high quality issues, while
providing tax-exempt income to our shareholders.
[CHART]
ARISTATA COLORADO QUALITY TAX-EXEMPT FUND
SECTOR PROFILE AS OF APRIL 30, 2003*
<Table>
Prerefunded Bonds - 9.4%
General Obligation Bonds - 34.9%
Revenue Bonds - 52.0%
</Table>
*Other Assets in Excess of Liabilities 3.7%
[CHART]
ARISTATA COLORADO QUALITY TAX-EXEMPT FUND
QUALITY PROFILE(3) AS OF APRIL 30, 2003
<Table>
Aaa - 80.0%
Aa - 16.7%
A - 3.3%
</Table>
8
<Page>
Comparison of Change in Value of $10,000 Investment in the Aristata Colorado
Quality Tax-Exempt Fund, the Lipper Municipal Intermediate Bond Fund Index, the
Lehman Brothers Municipal Bond Index, and the Lipper Colorado Municipal Fund
Average.
[CHART]
<Table>
<Caption>
ARISTATA COLORADO QUALITY LEHMAN BROTHERS MUNICIPAL LIPPER MUNICIPAL INTERMEDIATE LIPPER COLORADO
TAX-EXEMPT FUND BOND INDEX BOND FUND INDEX* MUNICIPAL FUND AVERAGE
3/2/1998 $10,000 $10,000 $10,000 $10,000
$10,061 $10,009 $10,007 $10,004
$10,022 $9,976 $9,960 $9,942
$10,154 $10,121 $10,094 $10,098
$10,176 $10,161 $10,128 $10,132
$10,200 $10,186 $10,151 $10,153
$10,330 $10,344 $10,298 $10,303
$10,423 $10,473 $10,409 $10,426
$10,446 $10,473 $10,413 $10,401
$10,455 $10,510 $10,435 $10,441
$10,494 $10,536 $10,469 $10,458
$10,605 $10,662 $10,586 $10,565
$10,563 $10,615 $10,530 $10,503
$10,551 $10,630 $10,527 $10,502
4/30/1999 $10,564 $10,656 $10,556 $10,527
$10,517 $10,594 $10,493 $10,456
$10,410 $10,442 $10,350 $10,281
$10,464 $10,480 $10,399 $10,301
$10,440 $10,396 $10,352 $10,181
$10,460 $10,400 $10,357 $10,148
$10,415 $10,288 $10,284 $10,008
$10,478 $10,397 $10,372 $10,087
$10,446 $10,319 $10,325 $9,990
$10,418 $10,274 $10,279 $9,906
$10,506 $10,394 $10,358 $10,039
$10,620 $10,621 $10,507 $10,251
4/30/2000 $10,582 $10,559 $10,462 $10,190
$10,546 $10,504 $10,419 $10,118
$10,752 $10,782 $10,634 $10,374
$10,839 $10,932 $10,755 $10,512
$10,940 $11,100 $10,888 $10,665
$10,916 $11,042 $10,856 $10,607
$10,993 $11,163 $10,947 $10,717
$11,049 $11,248 $10,999 $10,788
$11,224 $11,525 $11,220 $11,071
$11,349 $11,640 $11,350 $11,129
$11,381 $11,677 $11,386 $11,181
$11,438 $11,782 $11,474 $11,266
4/30/2001 $11,374 $11,655 $11,370 $11,122
$11,479 $11,781 $11,487 $11,247
$11,549 $11,859 $11,558 $11,343
$11,641 $12,035 $11,698 $11,525
$11,786 $12,234 $11,875 $11,737
$11,794 $12,192 $11,858 $11,672
$11,887 $12,337 $11,972 $11,789
$11,810 $12,233 $11,848 $11,690
$11,728 $12,117 $11,758 $11,592
$11,893 $12,327 $11,929 $11,751
$12,010 $12,476 $12,063 $11,882
$11,820 $12,231 $11,844 $11,662
4/30/2002 $12,013 $12,470 $12,074 $11,863
$12,097 $12,546 $12,139 $11,931
$12,214 $12,679 $12,263 $12,049
$12,334 $12,842 $12,405 $12,202
$12,432 $12,996 $12,519 $12,324
$12,625 $13,281 $12,737 $12,584
$12,488 $13,061 $12,544 $12,341
$12,439 $13,006 $12,493 $12,287
$12,670 $13,280 $12,740 $12,552
$12,644 $13,247 $12,694 $12,492
$12,810 $13,433 $12,870 $12,668
$12,804 $13,441 $12,866 $12,668
4/30/2003 $12,877 $13,529 $12,948 $12,778
</Table>
*FUND BENCHMARK INDEX
PERFORMANCE
AS OF APRIL 30,2003
<Table>
<Caption>
AVERAGE ANNUAL TOTAL RETURN (1) 1 YEAR 3 YEAR 5 YEAR SINCE INCEPTION (3/2/98)
Aristata Colorado Quality Tax-Exempt Fund 7.19% 6.76% 5.14% 5.02%
Lehman Brothers Municipal Bond Index 8.50% 8.62% 6.28% 6.03%
Lipper Municipal Intermediate Bond Fund Index 7.24% 7.36% 5.39% 5.13%
Lipper Colorado Municipal Fund Average 7.72% 7.84% 5.15% 4.86%
</Table>
THE TOTAL RETURN FIGURES REPRESENT PAST PERFORMANCE AND ARE NOT INDICATIVE OF
FUTURE RESULTS. THE GRAPH AND PERFORMANCE TABLE DO NOT REFLECT THE DEDUCTION OF
TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF
SHARES.
(1) TOTAL RETURN IS THE CHANGE IN THE VALUE OF AN INVESTMENT IN THE FUND AFTER
REINVESTING ALL INCOME AND CAPITAL GAINS. IT IS CALCULATED BY DIVIDING THE
CHANGE IN TOTAL INVESTMENT VALUE BY THE INITIAL VALUE OF THE INVESTMENT. TOTAL
RETURN FIGURES ARE NET OF ALL FUND EXPENSES AND REFLECT ALL FEE WAIVERS. WITHOUT
THESE FEE WAIVERS, TOTAL RETURN WOULD HAVE BEEN LOWER. THE INCEPTION DATE OF
EACH FUND IS MARCH 2, 1998. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. THE TOTAL RETURN FIGURES REPRESENT
PAST PERFORMANCE AND ARE NOT INDICATIVE OF FUTURE RESULTS.
(2) THE FIFTEEN LARGEST HOLDINGS ARE PRESENTED TO ILLUSTRATE EXAMPLES OF THE
EQUITY SECURITIES THAT THE FUND HOLDS AT 4/30/03, AND MAY NOT BE REPRESENTATIVE
OF THE FUND'S CURRENT OR FUTURE INVESTMENTS.
(3) QUALITY PROFILE BASED ON EACH SECURITY'S RATING FROM MOODY'S. FOR THOSE
RATINGS NOT AVAILABLE FROM MOODY'S, S&P RATINGS WERE USED.
THE VIEWS EXPRESSED IN THIS ADVISER UPDATE REFLECT THE ADVISER'S VIEW ONLY
THROUGH 4/30/03. THE ADVISER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON
MARKET AND OTHER CONDITIONS.
9
<Page>
FUND REVIEW
DEFINITION OF INDICES
The DOW JONES INDUSTRIAL AVERAGE is an unmanaged price weighed index of 30 of
the largest, most widely held stocks traded on the NYSE. The index represents
principal only and does not include the effect of reinvestments. The index is
the sum of the current market price of the 30 stocks divided by a number that
has been adjusted to take into account stock splits and changes in stock
composition. The index represents asset types which are subject to risk,
including loss of principal.
The DOW JONES UTILITIES AVERAGE is a price-weighted average of 15 utility
companies that are listed on the New York Stock Exchange and are involved in the
production of electrical energy. The average as it is known today began on
January 2. 1929.
The LEHMAN BROTHERS GOVERNMENT/CREDIT BOND INDEX and the LEHMAN BROTHERS
INTERMEDIATE GOVERNMENT/ CREDIT BOND INDEX are unmanaged indices that are a
broad measure of bond performance that reflect the reinvestment of income
dividends and capital gain distributions, if any, but do not reflect fees,
brokerage commissions, or other expenses of investing. Intermediate indices
include bonds with maturities of up to ten years.
The LEHMAN BROTHERS MUNICIPAL BOND INDEX is an unmanaged index that is a broad
measure of tax exempt bond performance that reflects the reinvestment of income
dividends and capital gain distributions, if any, but does not reflect fees,
brokerage commissions, or other expenses of investing.
The LIPPER COLORADO MUNICIPAL BOND FUND AVERAGE is the average return of all
bond funds tracked by Lipper that limit their assets to those securities exempt
from taxation in the state of Colorado. The average return reflects the
reinvestment of income dividends and capital gain distributions, if any.
The LIPPER CORPORATE DEBT FUNDS A RATED INDEX is an unmanaged index that
measures the performance of funds that invest at least 65% of their assets in
corporate debt issues rated "A" or better or government issues.
The LIPPER MULTI-CAP VALUE FUND INDEX is an unmanaged index of funds, that by
portfolio practice, invest in a variety of market capitalization ranges, without
concentrating 75% of their equity assets in any one market capitalization range
over an extended period of time. Multi-Cap Value funds seek long-term growth of
capital by investing in companies that are considered to be undervalued relative
to a major unmanaged stock index based on price-to-current earnings, book value,
asset value, or other factors. These funds will normally have a below-average
price-to-earnings ratio, price-to-book ratio, and three-year earnings growth
figure, compared to the U.S. diversified multi-cap funds universe average.
The LIPPER MUNICIPAL INTERMEDIATE BOND FUND INDEX is an unmanaged index that
measures the performance of intermediate municipal debt funds (i.e. those with
dollar-weighted average maturities of 5 to 10 years). The index return reflects
the reinvestment of income dividends and capital gain distributions, if any.
The NASDAQ COMPOSITE INDEX is an unmanaged market capitalization price-only
index that tracks the performance of domestic common stocks traded on the
regular NASDAQ market, as well as National Market System traded foreign common
stocks and ADRs. The index includes over 5,000 companies with a market
capitalization over $2.3 trillion.
The STANDARD & POOR'S 500 INDEX (S&P 500) is an unmanaged index containing
common stocks of 500 industrial, transportation, utility and financial
companies, regarded as generally representative of the U.S. stock market. The
return per the total return index reflects the reinvestment of income dividends
and capital gain distributions, if any, but does not reflect fees, brokerage
commissions, or other expenses of investing.
The VALUE LINE COMPOSITE INDEX is an unmanaged equally weighted geometric
average composed of approximately 1700 stocks traded on the New York Stock
Exchange, American Stock Exchange, and over- the-counter that are tracked by the
Value Line Investment Survey. The index return reflects the reinvestment of
income dividends and capital gain distributions, if any, but does not reflect
fees, brokerage commissions, or other expenses of investing.
10
<Page>
INDEPENDENT AUDITORS' REPORT
[DELOITTE & TOUCHE LLP LOGO]
TO THE BOARD OF TRUSTEES AND SHAREHOLDERS,
FINANCIAL INVESTORS TRUST
We have audited the accompanying statements of assets and liabilities of the
Aristata Equity Fund, Aristata Quality Bond Fund and Aristata Colorado Quality
Tax-Exempt Fund of Financial Investors Trust (the "Trust"), including the
statements of investments, as of April 30, 2003, and the related statements of
operations for the year then ended, the statements of changes in net assets for
each of the two years in the period then ended, and the financial highlights for
each of the five years in the period then ended. These financial statements and
financial highlights are the responsibility of the Trust's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned as of April 30, 2003, by correspondence with the custodian and
brokers. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Aristata Equity Fund, Aristata Quality Bond Fund and Aristata Colorado Quality
Tax-Exempt Fund of Financial Investors Trust as of April 30, 2003, the results
of their operations for the year then ended, the changes in their net assets for
each of the two years in the period then ended, and the financial highlights for
each of the five years in the period then ended, in conformity with accounting
principles generally accepted in the United States of America.
/s/ DELOITTE & TOUCHE LLP
DELOITTE & TOUCHE LLP
Denver, Colorado
June 2, 2003
[DELOITTE TOUCHE TOHMATSU INTERNATIONAL LOGO]
11
<Page>
STATEMENTS OF INVESTMENTS
ARISTATA EQUITY FUND
APRIL 30, 2003
<Table>
<Caption>
SHARES VALUE*
------ ------
COMMON STOCKS - 97.05%
BASIC MATERIALS - 5.48%
AGRICULTURE - 3.29%
Archer Daniels Midland Co. 28,300 $ 313,564
Deere & Co. 11,000 484,330
-----------
797,894
-----------
CHEMICAL - 1.05%
DU Pont (EI) DE Nemours 6,000 255,180
-----------
PAPER/PACKAGING - 1.14%
Wausau-Mosinee Paper Corp. 26,000 276,640
-----------
TOTAL BASIC MATERIALS 1,329,714
-----------
BUILDING/REAL ESTATE - 6.90%
BUILDING MATERIALS - 2.16%
Vulcan Materials Co. 15,000 524,550
-----------
ENG./CONST./HOMEBUILDING - 0.85%
United Rentals Inc.** 20,000 206,000
-----------
R.E.I.T./REAL ESTATE - 3.89%
Archstone Community Trust 15,000 342,000
Duke Realty Corp. 22,000 602,800
-----------
944,800
-----------
TOTAL BUILDING/REAL ESTATE 1,675,350
-----------
CONSUMER DURABLES - 1.59%
HOUSEHOLD GOODS - 1.59%
Eastman Kodak Co. 5,500 164,505
LA-Z-Boy Inc. 11,400 222,642
-----------
387,147
-----------
TOTAL CONSUMER DURABLES 387,147
-----------
CONSUMER STAPLES - 8.27%
FOOD/BEVERAGE - 2.54%
Albertson's, Inc. 31,100 617,646
-----------
PACKAGED GOODS - 2.16%
Avon Products, Inc. 9,000 523,530
-----------
RETAIL - 3.57%
Dollar General Corp. 20,000 $ 290,800
May Department Stores 6,700 144,854
Target Corp. 12,900 431,376
-----------
867,030
-----------
TOTAL CONSUMER STAPLES 2,008,206
-----------
ELECTRIC & GAS UTILITIES - 6.18%
ELECTRIC UTILITIES - 3.32%
Duke Energy Corp. 20,400 358,836
Xcel Energy Inc. 33,190 448,729
-----------
807,565
-----------
GAS UTILITIES - 2.86%
Questar Corp. 23,000 694,600
-----------
TOTAL ELECTRIC & GAS UTILITIES 1,502,165
-----------
ENERGY - 10.26%
OIL FIELD SERVICES - 2.13%
Baker Hughes, Inc. 16,000 448,000
Veritas DGC Inc.** 10,000 68,500
-----------
516,500
-----------
OIL & GAS - 8.13%
BP PLC 15,780 608,161
Valero Energy 18,500 679,875
Westport Resources Corp.** 33,000 687,720
-----------
1,975,756
-----------
TOTAL ENERGY 2,492,256
-----------
FINANCIAL - 9.98%
BANKS/S & L/FINANCE/LEASE - 3.69%
PNC Financial Services Group 9,100 399,490
Wachovia Corp. 13,000 496,730
-----------
896,220
-----------
BROKERS/FINANCIAL SERVICES - 4.00%
Gallagher Arthur J & Co. 12,900 322,371
Marsh & McLennan Cos., Inc. 13,600 648,448
-----------
970,819
-----------
</Table>
12
<Page>
<Table>
<Caption>
SHARES VALUE*
------ ------
INSURANCE - 2.29%
Allstate Corp. 14,720 $ 556,269
-----------
TOTAL FINANCIAL 2,423,308
-----------
HEALTHCARE - 16.12%
DRUGS - 11.61%
Abbott Laboratories 22,100 897,923
AMGEN, Inc.** 15,000 919,500
Barr Laboratories Inc.** 6,000 333,600
Merck & Co Inc. 6,000 349,080
Mylan Laboratories 11,250 318,038
-----------
2,818,141
-----------
MEDICAL PRODUCTS - 4.51%
Cardinal Health, Inc. 9,000 497,520
Pall Corp. 28,300 597,696
-----------
1,095,216
-----------
TOTAL HEALTHCARE 3,913,357
-----------
INDUSTRIAL PRODUCTS & SERVICES - 12.84%
AEROSPACE - 1.01%
Boeing Co 9,000 245,520
-----------
ELECTRICAL PRODUCTS - 2.59%
Emerson Electric Co. 12,400 628,680
-----------
INDUSTRIAL COMPONENTS - 7.55%
Ingersoll Rand Co. Class A 14,000 617,120
Kennametal, Inc. 18,100 569,969
Snap On, Inc. 22,000 645,700
-----------
1,832,789
-----------
BUSINESS INFO/SERV. - 1.69%
Maximus Inc.** 17,000 409,700
-----------
TOTAL INDUSTRIAL PRODUCTS & SERVICES 3,116,689
-----------
TECHNOLOGY - 11.31%
COMPUTERS/PERIPHERAL - 4.88%
Hewlett-Packard Co. 31,100 506,930
-----------
International Business Machines Corp. 8,000 $ 679,200
-----------
1,186,130
-----------
ELECTRONICS - 3.77%
Anixter International, Inc.** 18,700 429,726
Flextronics International** 40,000 350,000
Motorola, Inc. 17,000 134,470
-----------
914,196
-----------
SOFTWARE/SYSTEM SUPPORT - 2.66%
Electronic Data Systems Corp. 14,000 254,100
FileNET Corp.** 25,500 392,445
-----------
646,545
-----------
TOTAL TECHNOLOGY 2,746,871
-----------
TELECOMMUNICATIONS - 5.15%
COMMUNICATIONS - 5.15%
Bellsouth Corp. 24,100 614,309
Verizon Communications, Inc. 17,000 635,460
-----------
1,249,769
-----------
TOTAL TELECOMMUNICATIONS 1,249,769
-----------
TRANSPORTATION - 2.97%
RAILS/TRUCK/MARINE - 2.97%
Teekay Shipping Corp. 13,000 493,350
U.S. Freightways Corp. 8,000 228,080
-----------
721,430
-----------
TOTAL TRANSPORTATION 721,430
-----------
TOTAL COMMON STOCKS 23,566,262
-----------
(Cost $17,241,897)
</Table>
13
<Page>
<Table>
<Caption>
SHARES VALUE*
------ ------
SHORT-TERM INVESTMENTS - 2.92%
MUTUAL FUNDS - 2.92%
Fifth Third C/P Fund *** 707,961 $ 707,961
------------
TOTAL SHORT-TERM INVESTMENTS
(Cost $707,961) 707,961
------------
TOTAL INVESTMENTS
(Cost $17,949,858) 99.97% 24,274,223
Other Assets in Excess
of Liabilities 0.03% 6,907
------ ------------
NET ASSETS 100.00% $ 24,281,130
====== ============
</Table>
* See note 1 to financial statements.
** Denotes non-income producing security.
*** Related party.
STATEMENTS OF INVESTMENTS
ARISTATA QUALITY BOND FUND
APRIL 30, 2003
<Table>
<Caption>
DUE BOND RATING** PRINCIPAL
DATE COUPON MOODY'S/S&P AMOUNT VALUE*
- ---- ------ ------------ --------- ------
U.S. GOVERNMENT &
AGENCY OBLIGATIONS - 35.98%
U.S. TREASURY NOTES - 10.43%
07/15/06 7.000% Aaa/AAA $ 650,000 $ 748,541
08/15/11 5.000% Aaa/AAA 690,000 755,766
08/15/12 4.375% Aaa/AAA 200,000 208,883
----------
1,713,190
----------
U.S. TREASURY BONDS - 2.77%
05/15/10 10.000% Aaa/AAA 390,000 454,792
----------
454,792
----------
FEDERAL HOME LOAN BANK - 12.32%
08/19/09 7.050% Aaa/AAA 120,000 128,077
01/12/10 7.155% Aaa/AAA 120,000 129,638
07/25/11 6.500% Aaa/AAA 85,000 85,952
04/15/13 5.050% Aaa/AAA 200,000 203,804
09/05/13 6.450% Aaa/AAA 100,000 101,700
02/09/15 8.000% Aaa/AAA 100,000 110,538
08/14/15 8.000% Aaa/AAA 100,000 101,860
08/10/16 6.700% Aaa/AAA 230,000 242,887
12/29/16 6.650% Aaa/AAA 50,000 51,565
02/13/17 6.700% Aaa/AAA 100,000 103,722
03/08/17 6.500% Aaa/AAA 100,000 103,737
08/14/17 6.350% Aaa/AAA 200,000 202,343
11/20/17 6.000% Aaa/AAA 200,000 203,383
01/24/18 5.740% Aaa/AAA 125,000 128,291
05/09/18 5.350% Aaa/AAA 125,000 125,000
----------
2,022,497
----------
FEDERAL HOME LOAN MORTGAGE CORPORATION - 3.68%
10/12/16 6.105% Aaa/AAA 190,000 197,587
10/03/17 6.000% Aaa/AAA 200,000 202,756
11/07/17 6.050% Aaa/AAA 200,000 203,345
----------
603,688
----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 6.78%
03/10/16 8.200% Aaa/AAA 55,000 74,209
10/25/16 6.100% Aaa/AAA 120,000 125,424
12/28/16 6.780% Aaa/AAA 70,000 77,740
04/24/17 6.500% Aaa/AAA 70,000 76,970
06/13/17 6.250% Aaa/AAA 70,000 70,345
06/27/17 6.610% Aaa/AAA 70,000 70,507
11/07/17 5.750% Aaa/AAA 200,000 206,728
</Table>
14
<Page>
<Table>
<Caption>
DUE BOND RATING** PRINCIPAL
DATE COUPON MOODY'S/S&P AMOUNT VALUE*
- ---- ------ ------------ --------- ------
FEDERAL NATIONAL MORTGAGE ASSOCIATION (CONTINUED)
11/13/17 6.040% Aaa/AAA $ 200,000 $ 207,146
12/19/17 6.060% Aaa/AAA 200,000 204,095
----------
1,113,164
----------
TOTAL U.S. GOVERNMENT &
AGENCY OBLIGATIONS
(Cost $5,507,212) 5,907,331
----------
CORPORATE BONDS - 56.91%
COMMUNICATIONS - 5.15%
Bellsouth Corp.
10/15/11 6.000% A1/A+ 120,000 133,614
New York Telephone Co.
02/15/04 6.250% A2/A+ 230,000 238,662
SBC Communications Inc.
03/15/11 6.250% A1/AA- 120,000 134,121
Southern New England Telephone Co.
12/15/03 6.125% Aa3/AA 330,000 339,725
----------
TOTAL COMMUNICATIONS 846,122
----------
ELECTRIC UTILITIES - 0.84%
Gulf Power Co.
08/15/04 7.050% A2/A 130,000 138,731
----------
TOTAL ELECTRIC UTILITIES 138,731
----------
FINANCIAL - 21.07%
AUTOMOBILE - 1.22%
Toyota Motor Credit
12/15/08 5.500% Aa1/AAA 180,000 199,972
----------
BANKS/S & L/FINANCE/LEASE - 9.14%
Bank of America Corp.
05/12/05 7.125% Aa2/A+ 230,000 254,008
Citicorp
08/15/05 6.750% Aa2/A+ 330,000 364,286
First Bank System
10/15/03 6.000% A1/A 230,000 234,809
National City Corp.
05/15/19 6.875% A2/A $ 280,000 $ 324,577
Wells Fargo & Co.
02/01/11 6.450% Aa2/A+ 100,000 114,919
Wells Fargo & Co.
11/15/14 5.000% Aa3/A 200,000 207,068
----------
1,499,667
----------
BROKERS/FINANCIAL SERVICES - 9.12%
Bear Stearns Co.
03/01/07 7.000% A2/A 120,000 136,619
Charles Schwab Corp.
03/01/10 8.050% A3/A- 210,000 247,824
Credit Suisse First Boston Inc.
11/15/11 6.125% Aa3/AA- 300,000 326,322
Goldman Sachs Group Inc.
01/15/11 6.875% Aa3/A+ 120,000 138,182
Merrill Lynch & Co.
04/27/08 7.000% Aa3/A+ 330,000 379,181
Morgan Stanley Dean Witter & Co.
01/15/07 8.330% Aa3/A+ 230,000 269,284
----------
1,497,412
----------
INSURANCE - 1.59%
Allstate Insurance Corp.
06/15/03 6.750% A1/A 260,000 261,565
----------
TOTAL FINANCIAL 3,458,616
----------
INDUSTRIAL - 29.85%
AEROSPACE - 4.69%
Boeing Co.
06/15/03 6.350% A2/A+ 230,000 231,191
Boeing Co.
02/15/13 5.125% A2/A+ 275,000 278,991
United Technologies Corp.
05/15/12 6.100% A2/A+ 230,000 260,066
----------
770,248
----------
BROADCASTING/ENTERTAINMENT - 1.54%
Walt Disney Co.
03/30/06 6.750% Baa1/BBB+ 230,000 252,444
----------
</Table>
15
<Page>
<Table>
<Caption>
DUE BOND RATING** PRINCIPAL
DATE COUPON MOODY'S/S&P AMOUNT VALUE*
- ---- ------ ------------- --------- ------
CHEMICALS - 2.94%
Dow Chemical Co.
02/01/11 6.125% A3/A $ 350,000 $ 377,081
E. I. duPont de Nemours & Co.
03/15/04 8.125% Aa3/AA- 100,000 105,778
----------
482,859
----------
COMPUTER/PERIPHERAL - 1.28%
Hewlett Packard Co.
06/15/05 7.150% A2/A- 190,000 209,257
----------
209,257
----------
DRUGS - 2.18%
Bristol-Myers Squibb Co.
10/01/06 4.750% Aa2/AAA 230,000 244,593
Eli Lilly & Co.
03/15/12 6.000% Aa3/AA 100,000 113,188
----------
357,781
----------
FOOD/BEVERAGE - 4.27%
Albertson's, Inc.
08/01/09 6.950% Baa1/BBB+ 70,000 79,214
Archer Daniels Midland Co.
05/15/03 6.250% Aa3/AA- 330,000 330,450
Coca Cola Enterprises Inc.
08/15/11 6.125% A2/A+ 140,000 157,471
Sara Lee Corp.
09/15/11 6.250% A3/A+ 120,000 134,466
----------
701,601
----------
HOUSEHOLD GOODS - 2.34%
Kimberly Clark Corp
02/15/12 5.625% Aa2/AA 350,000 383,987
----------
383,987
----------
METALS - 2.01%
Alcan Aluminum Ltd.
11/01/08 6.250% A2/A- 290,000 329,710
----------
PACKAGED GOODS - 2.96%
Fortune Brands, Inc.
04/01/08 6.250% A2/A 230,000 252,888
Estee Lauder Inc.
01/15/12 6.000% A1/A+ 210,000 233,113
----------
486,001
----------
PAPER/PACKAGING - 2.45%
Avery Dennison Corp.
04/15/05 6.750% A2/A $ 370,000 $ 402,851
----------
RESTAURANTS - 1.27%
McDonalds Corp.
04/15/11 6.000% A2/A+ 190,000 208,540
----------
208,540
----------
RETAIL - 1.92%
Target Corp.
04/01/07 5.50% A2/A+ 170,000 184,345
03/01/12 5.88% A2/A+ 120,000 131,181
----------
315,526
----------
TOTAL INDUSTRIAL 4,900,805
----------
TOTAL CORPORATE BONDS
(Cost $8,575,785) 9,344,274
----------
<Caption>
SHARES
-------
SHORT-TERM INVESTMENTS
MUTUAL FUNDS - 6.28%
Fifth Third C/P Fund *** 317,107 317,107
Fifth Third Treasury Fund *** 713,483 713,483
----------
TOTAL SHORT-TERM INVESTMENTS
(Cost $1,030,590) 1,030,590
----------
TOTAL INVESTMENTS 99.17% 16,282,195
(Cost $15,113,587)
Other Assets in Excess
of Liabilities 0.83% 135,700
------- ----------
NET ASSETS 100.00% 16,417,895
======= ==========
</Table>
* See note 1 to financial statements.
** Ratings - The Moody's and S&P ratings are believed to be the most recent
ratings at April 30, 2003. Ratings are not covered by the Report of Independent
Auditors.
*** Related party.
16
<Page>
STATEMENTS OF INVESTMENTS
ARISTATA COLORADO QUALITY TAX-EXEMPT FUND
APRIL 30, 2003
<Table>
<Caption>
DUE BOND RATING** PRINCIPAL
DATE COUPON MOODY'S/S&P AMOUNT VALUE*
- ---- ------ ------------- --------- ------
COLORADO MUNICIPAL OBLIGATIONS - 96.32%
PREREFUNDED - 9.40%
Cherry Creek County School District, FSA
12/01/17 5.750% Aaa/AAA $ 100,000 $ 118,056
Colorado Dept of Transportation, AMBAC
06/15/15 5.700% Aaa/AAA 250,000 292,890
Platte River Power Authority, Rev
06/01/18 5.750% Aaa/AA 900,000 901,944
----------
TOTAL PREREFUNDED
(Cost $1,074,433) 1,312,890
----------
GENERAL OBLIGATION BONDS - 34.91%
Adams County
School District #12, FGIC
12/15/09 5.250% Aaa/AAA 500,000 559,405
Adams County
School District #50
12/01/10 5.250% A1/AA 500,000 542,955
Aspen, Colorado
Housing, Series B
12/01/20 5.000% Aa3/NR 175,000 180,061
Basalt Colorado
Sanitation District, AMBAC
12/01/18 5.000% Aaa/NR 125,000 133,275
Boulder County Open Space
06/15/08 5.100% NR/AA 200,000 217,632
Boulder Valley
School District #Re-2, FGIC
12/01/13 5.000% Aaa/AAA 150,000 160,782
Carbon Valley Pk & Rec, AMBAC
12/01/19 4.650% NR/AAA 150,000 155,444
Clear Creek County
School District #Re-1, FSA
12/01/13 4.300% NR/AAA 125,000 132,289
Denver Colorado City & County
08/01/14 5.000% Aa1/AA+ 100,000 107,795
Denver Colorado City & County
10/01/16 4.000% Aa1/AA+ 125,000 125,425
El Paso County
School District #20, FGIC
12/15/07 3.750% Aaa/AAA 150,000 160,428
Garfield County School District, FSA
12/01/15 4.300% Aaa/NR $ 125,000 $ 130,123
Parker Colorado Property
District 1, AMBAC
12/01/12 4.550% Aaa/AAA 175,000 187,630
Pitkin County
School District 1, FGIC
12/01/20 5.000% Aaa/AAA 150,000 157,710
San Miguel County
School District #R-1, MBIA
12/01/06 5.200% Aaa/AAA 250,000 280,293
South Suburban Park &
Recreation District, FGIC
12/15/06 5.050% Aaa/AAA 500,000 530,785
Summit County
School District #Re-1, FGIC
12/01/07 5.250% Aaa/AAA 500,000 549,130
Thornton, FSA
12/01/07 5.150% Aaa/AAA 500,000 564,820
----------
TOTAL GENERAL OBLIGATION BONDS
(Cost $4,489,375) 4,875,982
----------
REVENUE BONDS - 52.01%
EDUCATION - 7.95%
Colorado EDL & Cultural
12/01/16 6.000% NR/AA 125,000 143,498
Colorado EDL & Cultural, AMBAC
06/01/20 5.000% Aaa/AAA 200,000 209,764
12/01/21 5.000% Aaa/NR 150,000 156,722
Colorado School of Mines, AMBAC
12/01/30 5.000% AAA/AAA 100,000 102,118
Colorado State Board of Agriculture
Research Revenue, AMBAC
12/01/10 4.300% Aaa/NR 175,000 180,194
University of Colorado Enterprise
System Revenue
06/01/16 5.100% Aa3/AA- 150,000 162,387
University of Colorado Enterprise
System Revenue, FGIC
06/01/24 5.000% Aaa/AAA 150,000 155,089
----------
1,109,772
----------
</Table>
17
<Page>
<Table>
<Caption>
DUE BOND RATING** PRINCIPAL
DATE COUPON MOODY'S/S&P AMOUNT VALUE*
- ---- ------ ------------- --------- ------
REVENUE BONDS (CONTINUED)
FINANCE - 11.63%
Aspen Colorado Sales Tax
11/01/10 5.000% NR/A- $120,000 $130,800
Boulder Colorado Sales Tax, AMBAC
08/15/13 5.150% Aaa/AAA 100,000 108,744
Delta CO Sales & Use Tax, FSA
12/01/11 4.000% Aaa/NR 100,000 104,910
Douglas County Sales & Use Tax, MBIA
10/15/07 5.250% AaaAAA 300,000 332,505
Douglas County Sales/Use Tax,MBIA
10/15/15 4.000% Aaa/AAA 100,000 101,687
Durango Colorado Sales & Use Tax, FGIC
12/01/16 5.500% Aaa/AAA 200,000 223,546
Greeley Co Sales & Use Tax, AMBAC
10/01/19 4.400% Aaa/AAA 125,000 127,246
Jefferson County Open Space, FGIC
11/01/19 5.000% Aaa/AAA 100,000 104,551
Larimar County Courts Certificate, FSA
12/15/11 3.800% Aaa/AAA 150,000 155,163
Pitkin County Sales Tax, FSA
12/01/11 4.000% Aaa/AAA 125,000 131,138
Vail CO Sales Tax, MBIA
06/01/08 3.350% Aaa/NR 100,000 104,142
----------
1,624,432
----------
HOSPITAL - 1.74%
University of Colorado Hospital Authority, AMBAC
11/15/09 5.000% Aaa/NR 220,000 242,858
----------
MISCELLANEOUS-OTHER - 2.22%
Boulder County CO (Atmospheric Research), MBIA
09/01/22 5.000% Aaa/AAA 200,000 207,600
Boulder County CO Open Space, MBIA
07/15/14 4.000% AaaAAA 100,000 102,348
----------
309,948
----------
POWER - 3.31%
Adams County Pollution Control, MBIA
04/01/08 5.625% Aaa/AAA 300,000 303,810
Pueblo County Pollution Control, AMBAC
01/01/19 5.100% Aaa/AAA 150,000 158,866
----------
462,676
----------
TRANSPORTATION - 6.06%
Arapahoe County
Highway E-470, MBIA
08/31/05 5.150% Aaa/AAA $250,000 $ 271,643
Colorado Department of Transportation, MBIA
06/15/09 4.200% Aaa/AAA 225,000 242,424
Denver City & County Airport, MBIA
11/15/16 5.750% Aaa/AAA 300,000 332,997
----------
847,064
----------
WATER/SEWER - 19.10%
Boulder Colorado Water & Sewer
12/01/12 5.300% Aa2/AA+ 125,000 140,312
Broomfield CO Water Activity, MBIA
12/01/22 4.750% Aaa/AAA 125,000 127,932
Colorado Springs Utility
11/15/21 5.000% Aa2/AA 245,000 255,402
Colorado Water Reservoir & Power
Development Authority
09/01/07 5.250% Aaa/AAA 250,000 281,725
East Cherry Creek Water
& Sanitation, MBIA
11/15/17 4.600% Aaa/AAA 250,000 261,875
Fort Collins Storm Drainage, AMBAC
12/01/20 4.875% Aaa/AAA 250,000 261,662
Fountain Valley Authority
Water Treatment
12/01/07 5.200% Aa2/AA 400,000 435,452
Golden CO Water & Waste
11/15/22 4.950% Aaa/NR 150,000 156,574
Little Thompson Water District, MBIA
12/01/18 5.800% Aaa/NR 150,000 171,191
Pagosa Area Water & Sanitation, MBIA
12/01/14 4.000% Aaa/AAA 150,000 153,653
Pleasant View Water and Sanitation District, MBIA
12/01/13 4.350% Aaa/AAA 125,000 132,081
Pueblo Colorado Board
Waterworks, FSA
11/01/09 5.250% Aaa/AAA 120,000 137,260
St. Charles CO Mesa Water District, MBIA
12/01/20 4.600% NR/AAA 150,000 153,428
----------
2,668,547
----------
</Table>
18
<Page>
<Table>
<Caption>
DUE BOND RATING** PRINCIPAL
DATE COUPON MOODY'S/S&P AMOUNT VALUE*
- ---- ------ ------------- --------- ------
TOTAL REVENUE BONDS
(Cost $6,774,668) $ 7,265,297
------------
TOTAL COLORADO MUNICIPAL
OBLIGATIONS
(Cost $12,338,476) 13,454,169
------------
TOTAL INVESTMENTS
(Cost $12,338,476) 96.32% 13,454,169
Other Assets in Excess
of Liabilities 3.68% 514,639
------ ------------
NET ASSETS 100.00% $ 13,968,808
====== ============
</Table>
*See note 1 to financial statements.
**Ratings - The Moody's and S&P ratings are believed to be the most recent
ratings at April 30, 2003. Ratings are not covered by the Report of Independent
Auditors.
***The Aristata Colorado Quality Tax-Exempt Fund had the following insurance
concentration greater than 10% at April 30, 2003 (as a percentage of net
assets):
<Table>
MBIA 23.48%
FGIC 18.62%
AMBAC 16.59%
FSA 10.55%
</Table>
19
<Page>
STATEMENTS OF ASSETS AND LIABILITIES - APRIL 30, 2003
<Table>
<Caption>
COLORADO QUALITY
EQUITY QUALITY BOND TAX-EXEMPT
----------- ----------- ----------------
ASSETS:
Investments, at value (Cost - see below) $24,274,223 $16,282,195 $13,454,169
Cash 0 0 317,711
Dividends receivable 33,915 0 0
Interest receivable 493 242,269 239,301
Receivable for portfolio shares sold 9,794 50,557 0
Prepaid and other assets 7,781 8,538 603
----------- ----------- -----------
Total assets 24,326,206 16,583,559 14,011,784
----------- ----------- -----------
LIABILITIES:
Payable for investments purchased 0 125,000 0
Accrued investment advisory fee 16,363 6,759 5,703
Accrued administration fee 10,274 5,137 3,082
Dividends payable 0 15,365 24,899
Other payables 18,439 13,403 9,292
----------- ----------- -----------
Total Liabilities 45,076 165,664 42,976
----------- ----------- -----------
NET ASSETS $24,281,130 $16,417,895 $13,968,808
=========== =========== ===========
COST OF INVESTMENTS $17,949,858 $15,113,587 $12,338,476
COMPOSITION OF NET ASSETS:
Paid in capital 19,573,837 16,063,044 12,835,507
(Over)/Undistributed net investment income 3,581 (224,341) 8,889
Accumulated net realized gain (loss) on investments (1,620,653) (589,416) 8,719
Net unrealized appreciation in value of investments 6,324,365 1,168,608 1,115,693
----------- ----------- -----------
NET ASSETS $24,281,130 $16,417,895 $13,968,808
=========== =========== ===========
NET ASSET VALUE PER SHARE:
Net Assets $24,281,130 $16,417,895 $13,968,808
Shares of beneficial interest outstanding 3,751,804 1,651,693 1,403,472
Net asset value and redemption price per share $ 6.47 $ 9.94 $ 9.95
</Table>
See notes to financial statements.
20
<Page>
STATEMENTS OF OPERATIONS - FOR THE YEAR ENDED APRIL 30, 2003
<Table>
<Caption>
COLORADO QUALITY
EQUITY QUALITY BOND TAX-EXEMPT
----------- ----------- ----------------
INVESTMENT INCOME:
Interest $ 14,358 $1,425,966 $668,153
Dividends 812,977 0 0
----------- ---------- --------
Total Income 827,335 1,425,966 668,153
----------- ---------- --------
EXPENSES:
Investment advisory fee (Note 4) 294,415 119,551 70,929
Administration fee (Note 4) 162,575 81,289 51,288
Legal 1,811 1,071 1,106
Printing 8,531 6,650 4,712
Registration 3,857 3,255 730
Audit 16,545 17,930 12,275
Custodian 2,420 1,743 1,234
Amortization of organization costs 6,712 5,449 2,543
Insurance 1,318 724 286
Other 10,520 14,847 9,396
----------- ---------- --------
Total Expenses Before Waivers 508,704 252,509 154,499
Expenses waived by investment adviser (Note 4) (48,846) (20,299) (28,735)
Expenses waived by administrator (Note 4) (14,520) (7,261) (4,357)
----------- ---------- --------
Net Expenses 445,338 224,949 121,407
----------- ---------- --------
Net Investment Income 381,997 1,201,017 546,746
----------- ---------- --------
Net realized gain on investments 4,597,536 1,103,817 8,795
Change in net unrealized appreciation/depreciation (18,777,911) 80,383 418,742
----------- ---------- --------
Net gain (loss) on investments (14,180,375) 1,184,200 427,537
----------- ---------- --------
Net Increase (Decrease) in Net Assets From Operations (13,798,378) 2,385,217 974,283
=========== ========== ========
</Table>
See notes to financial statements.
21
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
EQUITY FUND
-------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
APRIL 30, 2003 APRIL 30, 2002
----------------------- -----------------------
OPERATIONS:
Net investment income $ 381,997 $ 737,580
Net realized gain on investments 4,597,536 1,149,665
Change in net unrealized appreciation/depreciation (18,777,911) (5,330,742)
------------ -----------
Net decrease in net assets from operations (13,798,378) (3,443,497)
------------ -----------
DISTRIBUTIONS:
From net investment income (407,670) (716,846)
From net realized gain (2,115,710) (4,306,409)
------------ -----------
Net decrease in net assets from distributions (2,523,380) (5,023,255)
------------ -----------
BENEFICIAL INTEREST TRANSACTIONS (NOTE 2):
Proceeds from sale of shares 3,844,850 10,036,755
Reinvested dividends 2,123,577 4,166,631
Cost of shares redeemed (33,063,463) (6,745,326)
------------ -----------
Net increase (decrease) in net assets from
share transactions (27,095,036) 7,458,060
NET DECREASE IN NET ASSETS (43,416,794) (1,008,692)
------------ -----------
NET ASSETS:
Beginning of period 67,697,924 68,706,616
------------ -----------
END OF PERIOD* $ 24,281,130 $67,697,924
============ ===========
*Includes undistributed net investment income of: $ 3,581 $ 29,254
</Table>
See notes to financial statements.
22
<Page>
<Table>
<Caption>
QUALITY BOND FUND
-------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
APRIL 30, 2003 APRIL 30, 2002
----------------------- -----------------------
OPERATIONS:
Net investment income $ 1,201,017 $ 2,475,299
Net realized gain on investments 1,103,817 21,263
Change in net unrealized appreciation/depreciation 80,383 (56,473)
------------ ------------
Net increase in net assets from operations 2,385,217 2,440,089
------------ ------------
DISTRIBUTIONS:
From net investment income (1,509,224) (2,438,114)
------------ ------------
Net decrease in net assets from distributions (1,509,224) (2,438,114)
------------ ------------
BENEFICIAL INTEREST TRANSACTIONS (NOTE 2):
Proceeds from sale of shares 3,306,781 7,651,553
Reinvested dividends 1,067,814 2,080,332
Cost of shares redeemed (30,655,057) (10,310,936)
------------ ------------
Net decrease in net assets from
share transactions (26,280,462) (579,051)
NET DECREASE IN NET ASSETS (25,404,469) (577,076)
------------ ------------
NET ASSETS:
Beginning of period 41,822,364 42,399,440
------------ ------------
END OF PERIOD* $ 16,417,895 $ 41,822,364
============ ============
*Includes (over)/undistributed net investment income of: $ (224,341) $ 83,866
</Table>
See notes to financial statements.
23
<Page>
<Table>
<Caption>
COLORADO QUALITY TAX-EXEMPT FUND
-------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
APRIL 30, 2003 APRIL 30, 2002
----------------------- -----------------------
OPERATIONS:
Net investment income $ 546,746 $ 596,555
Net realized gain on investments 8,795 19,905
Change in net unrealized appreciation/depreciation 418,742 83,756
------------ ------------
Net increase in net assets from operations 974,283 700,216
------------ ------------
DISTRIBUTIONS:
From net investment income (546,152) (588,751)
From net realized gain (6,020) (25,572)
------------ ------------
Net decrease in net assets from distributions (552,172) (614,323)
------------ ------------
BENEFICIAL INTEREST TRANSACTIONS (NOTE 2):
Proceeds from sale of shares 1,634,243 1,460,346
Reinvested dividends 174,495 160,965
Cost of shares redeemed (1,612,115) (1,081,879)
------------ ------------
Net increase in net assets from
share transactions 196,623 539,432
NET INCREASE IN NET ASSETS 618,734 625,325
------------ ------------
NET ASSETS:
Beginning of period 13,350,074 12,724,749
------------ ------------
END OF PERIOD* $ 13,968,808 $ 13,350,074
============ ============
*Includes undistributed net investment income of: $ 8,889 $ 7,188
</Table>
See notes to financial statements.
24
<Page>
FINANCIAL HIGHLIGHTS - EQUITY FUND
Selected data for a share of beneficial interest outstanding throughout the
period indicated:
<Table>
<Caption>
FOR THE YEAR ENDED APRIL 30,
2003 2002 2001 2000 1999
---------- ---------- ---------- ---------- ----------
SELECTED PER-SHARE DATA:
Net asset value - beginning of period $ 8.22 $ 9.34 $ 9.34 $ 11.11 $ 10.44
---------- ---------- ---------- ---------- ----------
Income from investment operations:
Net investment income 0.07 0.10 0.11 0.12 0.14
Net realized and unrealized gain (loss)
on investments (1.49) (0.58) 0.78 (0.01) 0.81
---------- ---------- ---------- ---------- ----------
Total income (loss) from investment
operations (1.42) (0.48) 0.89 0.11 0.95
---------- ---------- ---------- ---------- ----------
DISTRIBUTIONS:
From net investment income (0.07) (0.09) (0.11) (0.12) (0.14)
From net realized gain (0.26) (0.55) (0.78) (1.76) (0.14)
---------- ---------- ---------- ---------- ----------
Total distributions (0.33) (0.64) (0.89) (1.88) (0.28)
---------- ---------- ---------- ---------- ----------
Net asset value - end of period $ 6.47 $ 8.22 $ 9.34 $ 9.34 $ 11.11
========== ========== ========== ========== ==========
TOTAL RETURN (17.25)% (4.99)% 10.31% 2.23% 9.39%
========== ========== ========== ========== ==========
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (000) $ 24,281 $ 67,698 $ 68,707 $ 73,076 $ 94,373
========== ========== ========== ========== ==========
Ratio of expenses to average net assets 1.29% 1.05% 1.05% 1.01% 0.95%
========== ========== ========== ========== ==========
Ratio of net investment income to
average net assets 1.10% 1.10% 1.14% 1.20% 1.41%
========== ========== ========== ========== ==========
Ratio of expenses to average net
assets without fee waivers 1.47% 1.17% 1.16% 1.09% 1.11%
========== ========== ========== ========== ==========
Ratio of net investment income to
average net assets without fee waivers 0.92% 0.99% 1.03% 1.12% 1.25%
========== ========== ========== ========== ==========
Portfolio turnover rate 17.82% 24.12% 27.47% 16.63% 25.26%
========== ========== ========== ========== ==========
</Table>
See notes to financial statements.
25
<Page>
FINANCIAL HIGHLIGHTS - QUALITY BOND FUND
Selected data for a share of beneficial interest outstanding throughout the
period indicated:
<Table>
<Caption>
FOR THE YEAR ENDED APRIL 30,
2003 2002 2001 2000 1999
---------- ---------- ---------- ---------- ----------
SELECTED PER-SHARE DATA:
Net asset value - beginning of period $ 9.75 $ 9.75 $ 9.32 $ 9.88 $ 9.97
---------- ---------- ---------- ---------- ----------
Income from investment operations:
Net investment income 0.51 0.57 0.60 0.59 0.62
Net realized and unrealized gain (loss)
on investments 0.34 (0.01) 0.43 (0.57) (0.08)
---------- ---------- ---------- ---------- ----------
Total income from investment operations 0.85 0.56 1.03 0.02 0.54
---------- ---------- ---------- ---------- ----------
DISTRIBUTIONS:
From net investment income (0.66) (0.56) (0.60) (0.58) (0.61)
From net realized gain - - - - (0.02)
---------- ---------- ---------- ---------- ----------
Total distributions (0.66) (0.56) (0.60) (0.58) (0.63)
---------- ---------- ---------- ---------- ----------
Net asset value - end of period $ 9.94 $ 9.75 $ 9.75 $ 9.32 $ 9.88
========== ========== ========== ========== ==========
TOTAL RETURN 8.93% 5.85% 11.33% 0.28% 5.49%
========== ========== ========== ========== ==========
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (000) $ 16,418 $ 41,822 $ 42,399 $ 42,408 $ 51,980
========== ========== ========== ========== ==========
Ratio of expenses to average net assets 0.94% 0.70% 0.70% 0.68% 0.65%
========== ========== ========== ========== ==========
Ratio of net investment income to
average net assets 5.02% 5.75% 6.25% 6.16% 6.10%
========== ========== ========== ========== ==========
Ratio of expenses to average net
assets without fee waivers 1.06% 0.77% 0.79% 0.75% 0.76%
========== ========== ========== ========== ==========
Ratio of net investment income to
average net assets without fee waivers 4.91% 5.67% 6.16% 6.10% 5.99%
========== ========== ========== ========== ==========
Portfolio turnover rate 20.41% 32.04% 15.72% 10.06% 9.79%
========== ========== ========== ========== ==========
</Table>
See notes to financial statements.
26
<Page>
FINANCIAL HIGHLIGHTS - COLORADO QUALITY TAX-EXEMPT FUND
Selected data for a share of beneficial interest outstanding throughout the
period indicated:
<Table>
<Caption>
FOR THE YEAR ENDED APRIL 30,
2003 2002 2001 2000 1999
---------- ---------- ---------- ---------- ----------
SELECTED PER-SHARE DATA:
Net asset value - beginning of period $ 9.65 $ 9.58 $ 9.35 $ 9.89 $ 9.94
---------- ---------- ---------- ---------- ----------
Income from investment operations:
Net investment income 0.38 0.45 0.46 0.46 0.49
Net realized and unrealized gain (loss)
on investments 0.30 0.08 0.23 (0.45) 0.04
---------- ---------- ---------- ---------- ----------
Total income from investment operations 0.68 0.53 0.69 0.01 0.53
---------- ---------- ---------- ---------- ----------
DISTRIBUTIONS:
From net investment income (0.38) (0.44) (0.46) (0.46) (0.49)
From net realized gain - (0.02) - (0.09) (0.09)
---------- ---------- ---------- ---------- ----------
Total distributions (0.38) (0.46) (0.46) (0.55) (0.58)
---------- ---------- ---------- ---------- ----------
Net asset value - end of period $ 9.95 $ 9.65 $ 9.58 $ 9.35 $ 9.89
========== ========== ========== ========== ==========
TOTAL RETURN 7.19% 5.62% 7.50% 0.16% 5.40%
========== ========== ========== ========== ==========
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (000) $ 13,969 $ 13,350 $ 12,725 $ 13,799 $ 17,502
========== ========== ========== ========== ==========
Ratio of expenses to average net assets 0.86% 0.50% 0.50% 0.48% 0.45%
========== ========== ========== ========== ==========
Ratio of net investment income to
average net assets 3.86% 4.57% 4.81% 4.85% 4.85%
========== ========== ========== ========== ==========
Ratio of expenses to average net assets
without fee waivers and reimbursements 1.09% 1.03% 1.04% 0.93% 0.91%
========== ========== ========== ========== ==========
Ratio of net investment income to
average net assets without fee
waivers and reimbursements 3.62% 4.04% 4.27% 4.41% 4.40%
========== ========== ========== ========== ==========
Portfolio turnover rate 17.79% 15.91% 9.29% 12.41% 7.86%
========== ========== ========== ========== ==========
</Table>
See notes to financial statements.
27
<Page>
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
Financial Investors Trust, a Delaware business trust, is registered under
the Investment Company Act of 1940, as amended, as an open-end management
investment company. The financial statements included herein relate to the
Trust's Aristata Family of Funds. The Aristata Family of Funds includes the
Equity Fund, Quality Bond Fund and Colorado Quality Tax-Exempt Fund. The
financial statements of the remaining portfolios of the Trust are presented
separately.
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. The
policies are in conformity with accounting principles generally accepted in the
United States of America.
INVESTMENT VALUATION: Securities of the Fund are valued as of the close of
regular trading on the New York Stock Exchange, normally 4:00 p.m. (Eastern
time), on each trading day. Listed and unlisted securities for which such
information is regularly reported are valued at the last sales price of the day
or, in the absence of sales, at values based on the average closing bid and
asked price. Securities for which market quotations are not readily available
are valued under procedures established by the Board of Trustees to determine
fair value in good faith. Short-term securities having a remaining maturity of
60 days or less are valued at amortized cost which approximates market value.
FEDERAL INCOME TAXES: It is the Funds' policy to comply with the provisions
of the Internal Revenue Code applicable to regulated investment companies and to
distribute all of their taxable income to shareholders. Therefore, no federal
income tax provision is required.
At April 30, 2003, the Aristata Equity Fund had available for federal
income tax purposes an unused capital loss carryover of $1,262,844 expiring
April 30, 2011. At April 30, 2003, the Aristata Quality Bond Fund had available
for federal income tax purposes unused capital loss carryovers of $89,177,
344,380, and 168,538 expiring April 30, 2008, 2009, and 2010, respectively.
EXPENSES: Most expenses of the Trust can be directly attributed to a Fund.
Expenses which cannot be directly attributed are apportioned among all funds in
the Trust based on average net assets.
DIVIDENDS: The Equity Fund will declare and pay dividends from net
investment income, if any, quarterly. Dividends from net investment income are
declared daily and paid monthly for the Quality Bond and Colorado Quality
Tax-Exempt Funds. Dividends from net realized gains, if any, are declared at
least once a year for each of the Funds. Dividends to shareholders are recorded
on the ex-dividend date.
CLASSIFICATION OF DISTRIBUTIONS TO SHAREHOLDERS: Net investment income
(loss) and net realized gain (loss) may differ for financial statement and tax
purposes. The character of distributions made during the year from net
investment income or net realized gains (losses) may differ from its ultimate
characterization for federal income tax purposes. Also, due to the timing of
dividend distributions, the fiscal year in which amounts are distributed may
differ from the fiscal year in which the income or realized gain (loss) was
recorded by the Fund.
The tax character of the distributions paid by the Funds during the last two
fiscal years ended April 30, 2003 and 2002, respectively, were as follows:
<Table>
<Caption>
EQUITY QUALITY BOND COLORADO TAX-EXEMPT
2003 2002 2003 2002 2003 2002
---------------------- ------------------------ ------------------------
DISTRIBUTIONS PAID FROM:
Ordinary Income $ 407,670 $ 716,846 $ 1,509,224 $ 2,438,114 - -
Tax-Exempt Income - - - - $ 546,152 $ 588,751
Long-Term Capital Gain 2,115,710 4,306,409 - - 6,020 25,572
----------- ----------- ----------- ----------- --------- ---------
Total $ 2,523,380 $ 5,023,255 $ 1,509,224 $ 2,438,114 $ 552,172 $ 614,323
=========== =========== =========== =========== ========= =========
</Table>
28
<Page>
As of April 30, 2003, the components of distributable earnings on a tax basis
were as follows:
<Table>
<Caption>
EQUITY QUALITY BOND COLORADO TAX-EXEMPT
----------- ------------ -------------------
(Over)/Undistributed ordinary income $ 3,581 $ (224,341) $ 8,889
Accumulated net realized gain (loss) (1,620,653) (589,416) 8,719
Net unrealized appreciation 5,966,556 1,232,598 1,175,352
----------- ---------- -----------
Total $ 4,349,484 $ 418,841 $ 1,192,960
=========== ========== ===========
</Table>
For the year ended April 30, 2002, the effect of certain differences was
reclassified. Accordingly, $5,252,075 and $1,033,957 has been reclassified to
paid in capital from accumulated realized gain (loss) on the Aristata Equity and
Quality Bond Funds, respectively.
OTHER: Investment transactions are accounted for on the date the
investments are purchased or sold (trade date). Dividend income is recorded on
the ex-dividend date. Interest income is accrued and recorded daily. Realized
gains and losses from investment transactions and unrealized appreciation and
depreciation of investments are reported on an identified cost basis which is
the same basis the Funds use for federal income tax purposes.
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from these
estimates.
2. SHARES OF BENEFICIAL INTEREST
On April 30, 2003, there was an unlimited number of no par value shares of
beneficial interest authorized for each fund. Transactions in shares of
beneficial interest were as follows:
<Table>
<Caption>
COLORADO QUALITY
EQUITY FUND QUALITY BOND FUND TAX-EXEMPT FUND
------------------------------ ------------------------------ ------------------------------
FOR THE YEAR ENDED APRIL 30, FOR THE YEAR ENDED APRIL 30, FOR THE YEAR ENDED APRIL 30,
2003 2002 2003 2002 2003 2002
-------------- -------------- ------------- --------------- ------------ ---------------
Shares sold 561,873 1,165,039 332,813 777,947 166,288 151,024
Shares issued as
reinvestment of dividends 320,954 510,929 107,672 211,573 17,732 16,659
Shares redeemed (5,369,477) (792,641) (3,079,605) (1,047,977) (163,977) (112,531)
---------- --------- ---------- ---------- -------- --------
Net Increase (Decrease) (4,486,650) 883,327 (2,639,120) (58,457) 20,043 55,152
========== ========= ========== ========== ======== ========
</Table>
3. UNREALIZED APPRECIATION AND DEPRECIATION ON INVESTMENTS
<Table>
<Caption>
COLORADO QUALITY
EQUITY FUND QUALITY BOND FUND TAX-EXEMPT FUND
------------ ----------------- ----------------
As of April 30, 2003
Gross appreciation (excess of
value over tax cost) $ 7,112,427 $ 1,232,679 $ 1,175,352
Gross depreciation (excess of
tax cost over value) (1,145,871) (81) -
------------ ------------- --------------
Net unrealized appreciation $ 5,966,556 $ 1,232,598 $ 1,175,352
============ ============= ==============
Cost of investments for income
tax purposes $ 18,307,667 $ 15,049,597 $ 12,278,817
</Table>
29
<Page>
4. INVESTMENT ADVISORY FEES, ADMINISTRATION FEES AND OTHER RELATED PARTY
TRANSACTIONS
Tempest Investment Counselors, Inc. (the "Adviser") serves as
investment adviser to each Fund pursuant to separate investment advisory
agreements (the "Advisory Agreements") with the Trust. For its services, the
Adviser is entitled to receive a fee, computed daily and payable monthly, at the
annual rate of 0.85%, 0.50% and 0.50% of the average net assets for the Equity
Fund, Quality Bond Fund and Colorado Quality Tax-Exempt Fund, respectively.
Prior to October 1, 2002, the Adviser voluntarily agreed to waive a portion of
its fees and/or reimburse fund expenses to the extent necessary for the Equity,
Quality Bond and Colorado Quality Tax-Exempt Funds to maintain a total expense
ratio of nor more than 1.05%, 0.70% and 0.50%, respectively.
ALPS Mutual Funds Services, Inc. ("ALPS") serves as the administrator
to each Fund. ALPS is entitled to receive a fee from each Fund, computed daily
and payable monthly, at the annual rate of .20% of the average net assets of
each Fund, subject to a minimum annual fee, effective October 1, 2002, of
$150,000 for the Equity Fund, $75,000 for the Quality Bond Fund and $45,000 for
the Colorado Quality Tax-Exempt Fund. In addition to administration services,
the administration fee also covers the costs of fund accounting, shareholder
servicing and transfer agency. ALPS has voluntarily agreed to waive its minimum
annual fees to $125,000, $62,500, and $37,500 for the Aristata Equity, Quality
Bond, and Colorado Tax-Exempt Funds, respectively, for the period October 1,
2002 to September 30, 2003. These waivers are voluntary and may be terminated at
any time. Prior to October 1, 2002, ALPS was entitled to receive a fee from each
Fund at the annual rate of 0.20% of the average net assets of each Fund, subject
to a minimum monthly fee of $15,000 for the Equity Fund, $7,500 for the Quality
Bond Fund, and $5,000 for the Colorado Quality Tax-Exempt Fund.
As of April 30, 2003, no shareholders of the Aristata Equity, Quality
Bond, and Colorado Quality Tax-Exempt Funds held more than 10% of the
outstanding shares of each respective Fund.
5. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from the sale of
securities, other than temporary cash investments, during the year ended April
30, 2003 were as follows:
<Table>
<Caption>
U.S. GOVERNMENT
SECURITIES ALL OTHER TOTAL
--------------- ------------ -----------
EQUITY FUND
Purchases $ - $ 6,039,114 $ 6,039,114
Sales $ - $ 34,088,787 $ 34,088,787
QUALITY BOND FUND
Purchases $ 3,390,235 $ 1,155,717 $ 4,545,952
Sales $ 15,735,036 $ 14,851,259 $ 30,586,295
COLORADO QUALITY
TAX-EXEMPT FUND
Purchases $ - $ 2,667,760 $ 2,667,760
Sales $ - $ 2,404,740 $ 2,404,740
</Table>
6. TRUSTEES (UNAUDITED)
As of April 30, 2003, the Funds are three of six separate series under
the Trust. The Trust's Board of Trustees oversees the overall management of each
series of the Trust and elects the officers of the Trust. The principal
occupations for the past five years of the Trustees and executive officers of
the Trust are listed below. Trustees deemed to be "interested persons" of the
Trust for purposes of the 1940 Act are indicated by an asterisk.
30
<Page>
INTERESTED TRUSTEES
<Table>
<Caption>
TERM OF OFFICE, LENGTH
OF TIME SERVED AND PRINCIPAL OCCUPATION DURING THE PAST 5
POSITION(S) HELD NUMBER OF PORTFOLIOS YEARS** AND OTHER DIRECTORSHIPS HELD BY
NAME, ADDRESS & AGE WITH FUNDS OVERSEEN TRUSTEE
- --------------------------------------------------------------------------------------------------------------------------------
W. Robert Alexander* (75) Trustee and W. Robert Alexander was Mr. Alexander is the Chief Executive
Chairman elected by the initial Officer of ALPS Mutual Funds Services,
shareholder in December Inc., and ALPS Distributors, Inc., which
1625 Broadway 1993 and oversees 6 provide administration and distribution
Suite 2200 portfolios in fund services, respectively, for proprietary
Denver, CO 80202 complex. mutual fund complexes. Mr. Alexander was
Vice Chairman of First Interstate Bank of
Denver, responsible for Trust, Private
Banking, Retail Banking, Cash Management
Services and Marketing. Mr. Alexander is
currently a member of the Board of Trustees
of the Hunter and Hughes Trusts. Because of
his affiliation with ALPS Mutual Funds
Services and ALPS Distributors, Mr.
Alexander is considered an "interested"
Trustee of the Trust.
</Table>
INDEPENDENT TRUSTEES
<Table>
Mary K. Anstine (62) Trustee Mary K. Anstine was President/Chief Executive Officer,
elected at a special HealthONE Alliance, Denver, Colorado;
1625 Broadway meeting of shareholders Former Executive Vice President, First
Suite 2200 held on March 21, 1997 Interstate Bank of Denver. Ms. Anstine is
Denver, CO 80202 and oversees 6 currently a Director of the Trust of
portfolios in fund Colorado, Trustee of the Denver Area
complex. Council of the Boy Scouts of America, a
Director of the Junior Achievement Board
and the Colorado Uplift Board, and a member
of the Advisory Boards for the Girl Scouts
Mile Hi Council and the Hospice of Metro
Denver. Formerly, Ms. Anstine served as a
Director of ALPS Distributors, Inc., from
October 1995 to December 1996; Director of
HealthONE; a member of the American Bankers
Association Trust Executive Committee; and
Director of the Center for Dispute
Resolution.
</Table>
31
<Page>
<Table>
<Caption>
TERM OF OFFICE, LENGTH
OF TIME SERVED AND PRINCIPAL OCCUPATION DURING THE PAST 5
POSITION(S) HELD NUMBER OF PORTFOLIOS YEARS** AND OTHER DIRECTORSHIPS HELD BY
NAME, ADDRESS & AGE WITH FUNDS OVERSEEN TRUSTEE
- --------------------------------------------------------------------------------------------------------------------------------
Edwin B. Crowder (71) Trustee Edwin B. Crowder was Mr. Crowder currently operates a marketing
elected at a special concern with operations in the U.S. and
1625 Broadway meeting of shareholders Latin America. He has previously engaged in
Suite 2200 held on March 21, 1997 business pursuits in the restaurant, oil
Denver, CO 80202 and oversees 6 portfolios and gas drilling, and real estate
in fund complex. development industries. Mr. Crowder is a
former Director of Athletics and Head
Football Coach at the University of
Colorado.
Robert E. Lee (67) Trustee Robert E. Lee was Mr. Lee has been a Director of Storage
appointed as a Trustee at Technology Corporation since 1989 and of
1625 Broadway the December 15, 1998, Equitable of Iowa since 1981. Mr. Lee was
Suite 2200 meeting of the Board of the Executive Director of The Denver
Denver, CO 80202 Trustees and oversees 6 Foundation from 1989 to 1996, and is
portfolios in fund currently the Executive Director of
complex. Emeritus. Mr. Lee is also a Director of
Meredith Capital Corporation and Source
Capital Corporation.
John R. Moran, Jr. (72) Trustee John R. Moran was elected Mr. Moran is President of The Colorado
at a special meeting of Trust, a private foundation serving the
1625 Broadway shareholders held on health and hospital community in the State
Suite 2200 March 21, 1997 and of Colorado. An attorney, Mr. Moran was
Denver, CO 80202 oversees 6 portfolios in formerly a partner with the firm of Kutak
fund complex. Rock & Campbell in Denver, Colorado and a
member of the Colorado House of
Representatives. Currently, Mr. Moran is a
member of the Board of Directors and
Treasurer of Grantmakers in Health; a
Director of the Conference of Southwest
Foundations; a member of the Treasurer's
Office Investment Advisory Committee for
the University of Colorado; a Trustee of
the Robert J. Kutak Foundation; Director of
the Colorado Wildlife Heritage Foundation;
and a member of the Alumni Council of the
University of Denver College of Law.
</Table>
* Trustees deemed "interested persons" of the Trust for purposes of the 1940
Act.
** Except as otherwise indicated, each individual has held the office shown or
other offices in the same company for the last five years.
32
<Page>
7. SHAREHOLDER TAX INFORMATION (UNAUDITED)
During the year ended April 30, 2003, 100% of the dividends paid by
the Aristata Colorado Quality Tax-Exempt Fund from net investment income should
be treated as tax-exempt dividends and 91% of the dividends paid by the Aristata
Equity Fund from net investment income qualify for the corporate dividends
received deduction. For the calendar year ending December 31, 2003, it is
estimated that 100% of the dividends paid by the Aristata Equity Fund will be
Qualifying Dividend Income.
33
<Page>
THIS PAGE INTENTIONALLY LEFT BLANK
<Page>
Item 2. CODE OF ETHICS
Form N-CSR disclosure requirement not yet effective with respect to the
registrant.
Item 3. AUDIT COMMITTEE FINANCIAL EXPERT
Form N-CSR disclosure requirement not yet effective with respect to the
registrant.
Item 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
Form N-CSR disclosure requirement not yet effective with respect to the
registrant.
Item 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. NOT APPLICABLE
Item 6. [RESERVED]
Item 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
N/A
Item 8. [RESERVED]
Item 9. CONTROLS AND PROCEDURES
(a) The registrant's principal executive officer and principal financial
officer have concluded that the registrant's disclosure controls and
procedures (as defined in Rule 30a-2(c) under the Investment Company Act
of 1940, as amended) are effective based on their evaluation of these
controls and procedures as of a date within 90 days of the filing date of
this document.
(b) There were no 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.
Item 10. EXHIBITS
(a) Form N-CSR disclosure requirement not yet effective with respect to the
registrant.
(b) The certifications required by Rule 30a-2 of the Investment Company Act
of 1940, as amended, and Sections 302 and 906 of the Sarbanes-Oxley Act
of 2002 are 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.
FINANCIAL INVESTORS TRUST
By: /s/ Edmund Burke
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Edmund Burke
President
Date: June 27, 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/ Edmund Burke
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Edmund Burke
President
Date: June 27, 2003
By: /s/ Jeremy O. May
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Jeremy O. May
Treasurer
Date: June 27, 2003