<Page>
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-7838
---------------------------------------------
American Select Portfolio Inc.
- -------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
800 Nicollet Mall Minneapolis, MN 55402
- -------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Robert H. Nelson - 800 Nicollet Mall Minneapolis, MN 55402
- -------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: 800-677-3863
----------------------------
Date of fiscal year end: November 30, 2003
--------------------------
Date of reporting period: May 31, 2003
-------------------------
Form N-CSR is to be used by management investment companies to file reports
with the Commission not later than 10 days after the transmission to
stockholders of any report that is required to be transmitted to stockholders
under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1).
The Commission may use the information provided on Form N-CSR in its
regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street,
NW, Washington, DC 20549-0609. The OMB has reviewed this collection of
information under the clearance requirements of 44 U.S.C. Section 3507.
<Page>
Item 1. Report to Shareholders
<Page>
[FIRST AMERICAN (TM) LOGO]
[GRAPHIC]
AMERICAN SELECT PORTFOLIO INC.
SLA
MAY 31, 2003
SEMIANNUAL REPORT
<Page>
[FIRST AMERICAN (TM) LOGO]
AMERICAN SELECT PORTFOLIO INC.
As you are probably aware, the board of directors for American Select Portfolio
Inc. (the "Fund"), as well as American Strategic Income Portfolio Inc., American
Strategic Income Portfolio Inc. II , and American Strategic Income Portfolio
Inc. III (collectively, the "Existing Funds"), has approved a proposal to
reorganize these four funds into the First American Strategic Real Estate
Portfolio, Inc., a specialty finance company that would elect to be taxed as a
real estate investment trust ("REIT"). Shareholders of the Existing Funds who do
not wish to receive shares of the REIT will have the option, subject to certain
limitations, of electing to exchange their shares for shares of First American
Strategic Income Portfolio Inc., a newly formed closed-end management investment
company with investment policies, restrictions, and strategies substantially
similar to those of the Existing Funds. This transaction is subject to review by
the Securities and Exchange Commission, approval by the Fund's shareholders, and
certain other conditions. There is no assurance that the transaction will be
completed.
OUR IMAGE-GEORGE WASHINGTON
HIS RICH LEGACY AS PATRIOT AND LEADER IS WIDELY RECOGNIZED AS EMBODYING THE
SOUND JUDGMENT, RELIABILITY, AND STRATEGIC VISION THAT ARE CENTRAL TO OUR BRAND.
FASHIONED IN A STYLE REMINISCENT OF AN 18TH CENTURY ENGRAVING, THE ILLUSTRATION
CONVEYS THE SYMBOLIC STRENGTH AND VITALITY OF WASHINGTON, WHICH ARE ATTRIBUTES
THAT WE VALUE AT FIRST AMERICAN.
TABLE OF CONTENTS
1 Financial Statements
5 Notes to Financial Statements
17 Investments in Securities
24 Shareholder Update
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
<Page>
FINANCIAL STATEMENTS (Unaudited)
STATEMENT OF ASSETS AND LIABILITIES May 31, 2003
.................................................................................
<Table>
ASSETS:
Investments in securities at value* (note 2)...... $190,266,015
Accrued interest receivable....................... 1,067,093
Other assets...................................... 79,966
------------
Total assets.................................... 191,413,074
------------
LIABILITIES:
Reverse repurchase agreements payable (note 2).... 46,469,737
Accrued investment management fee................. 38,726
Bank overdraft.................................... 79,501
Accrued administrative fee........................ 30,627
Accrued interest expense.......................... 40,966
Accrued reorganization expenses (notes 3 and 6)... 116,793
Other accrued expenses............................ 20,995
------------
Total liabilities............................... 46,797,345
------------
Net assets applicable to outstanding capital
stock......................................... $144,615,729
============
COMPOSITION OF NET ASSETS:
Capital stock and additional paid-in capital...... $153,233,654
Undistributed net investment income............... 270,652
Accumulated net realized loss on investments...... (15,203,685)
Unrealized appreciation of investments............ 6,315,108
------------
Total-representing net assets applicable to
capital stock................................. $144,615,729
============
*Investments in securities at identified cost..... $183,950,907
============
NET ASSET VALUE AND MARKET PRICE OF CAPITAL STOCK:
Net assets outstanding............................ $144,615,729
Shares outstanding (authorized 1 billion shares of
$0.01 par value)................................ 10,662,195
Net asset value per share......................... $ 13.56
Market price per share............................ $ 13.72
</Table>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
2003 SEMIANNUAL REPORT 1 American Select Portfolio
<Page>
FINANCIAL STATEMENTS (Unaudited) continued
STATEMENT OF OPERATIONS For the Six Months Ended May 31, 2003
.................................................................................
<Table>
INCOME:
Interest (net of interest expense of $752,547).... $ 6,399,906
Dividends......................................... 34,036
Dividends from affiliated money market fund....... 16,395
------------
Total investment income......................... 6,450,337
------------
EXPENSES (NOTE 3):
Investment management fee......................... 358,555
Administrative fee................................ 179,278
Custodian fees.................................... 14,342
Transfer agent fees............................... 15,064
Exchange listing and registration fees............ 42,342
Reports to shareholders........................... 26,381
Mortgage servicing fees........................... 70,437
Directors' fees................................... 12,450
Audit and legal fees.............................. 104,200
Financial advisory and accounting fees............ 52,441
Other expenses.................................... 25,879
------------
Total expenses.................................. 901,369
------------
Net investment income........................... 5,548,968
------------
NET REALIZED AND UNREALIZED GAINS (LOSSES) ON
INVESTMENTS (NOTE 4):
Net realized gain on investments in securities.... 740,768
Net change in unrealized appreciation or
depreciation of investments..................... 492,129
------------
Net gain on investments......................... 1,232,897
------------
Net increase in net assets resulting from
operations.................................. $ 6,781,865
============
</Table>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
2003 SEMIANNUAL REPORT 2 American Select Portfolio
<Page>
STATEMENT OF CASH FLOWS For the Six Months Ended May 31, 2003
.................................................................................
<Table>
CASH FLOWS FROM OPERATING ACTIVITIES:
Investment income................................. $ 6,450,337
Expenses.......................................... (901,369)
------------
Net investment income........................... 5,548,968
------------
Adjustments to reconcile net investment income to
net cash provided by operating activities:
Net accretion of bond discounts and amortization
of premiums................................... 6,992
Change in accrued interest receivable........... (78,924)
Change in accrued fees and expenses............. (200,724)
Change in other assets.......................... 15,188
------------
Total adjustments............................. (257,468)
------------
Net cash provided by operating activities..... 5,291,500
------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sales of investments................ 43,966,943
Purchases of investments.......................... (61,951,891)
Net sales of short-term securities................ 513,494
------------
Net cash used by investing activities......... (17,471,454)
------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from reverse repurchase agreements... 17,969,737
Distributions paid to shareholders................ (5,864,208)
------------
Net cash provided by financing activities..... 12,105,529
------------
Net decrease in cash.............................. (74,425)
Bank overdraft at beginning of period............. (5,076)
------------
Bank overdraft at end of period............... $ (79,501)
============
Supplemental disclosure of cash flow information:
Cash paid for interest........................ $ 766,326
============
</Table>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
2003 SEMIANNUAL REPORT 3 American Select Portfolio
<Page>
FINANCIAL STATEMENTS (Unaudited) continued
STATEMENTS OF CHANGES IN NET ASSETS
.................................................................................
<Table>
<Caption>
SIX MONTHS ENDED
5/31/03 YEAR ENDED
(UNAUDITED) 11/30/02
---------------- -------------
OPERATIONS:
Net investment income................... $ 5,548,968 $ 12,017,538
Net realized gain on investments........ 740,768 1,092,850
Net change in unrealized appreciation or
depreciation of investments........... 492,129 765,118
------------ ------------
Net increase in net assets resulting
from operations..................... 6,781,865 13,875,506
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 2):
From net investment income.............. (5,864,208) (12,794,634)
------------ ------------
Total increase in net assets.......... 917,657 1,080,872
Net assets at beginning of period....... 143,698,072 142,617,200
------------ ------------
Net assets at end of period............. $144,615,729 $143,698,072
============ ============
Undistributed net investment income..... $ 270,652 $ 585,892
============ ============
</Table>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
2003 SEMIANNUAL REPORT 4 American Select Portfolio
<Page>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
(1) ORGANIZATION
.............................
American Select Portfolio Inc. (the "Fund") is registered under
the Investment Company Act of 1940 (as amended) as a
diversified, closed-end management investment company. The Fund
emphasizes investments in mortgage-related assets that directly
or indirectly represent a participation in or are secured by and
payable from mortgage loans. It may also invest in U.S.
government securities and corporate debt securities. The Fund
may enter into dollar roll transactions. In addition, the Fund
may borrow using reverse repurchase agreements and revolving
credit facilities. Fund shares are listed on the New York Stock
Exchange under the symbol SLA.
(2) SUMMARY OF
SIGNIFICANT
ACCOUNTING
POLICIES
.............................
SECURITY VALUATIONS
Security valuations for the Fund's investments (other than whole
loans) are furnished by one or more independent pricing services
that have been approved by the Fund's board of directors.
Investments in equity securities that are traded on a national
securities exchange (or reported on the NASDAQ national market
system) are stated at the last quoted sales price if readily
available for such securities on each business day. For
securities traded on the NASDAQ national market system, the Fund
utilizes the NASDAQ Official Closing Price which compares the
last trade to the bid/ask price of a security. If the last trade
is outside the bid/ask range, and falls above the ask, the ask
price will be the closing price. If the last trade is below the
bid, the bid will be the closing price. Other equity securities
traded in the over-the-counter market and listed equity
securities for which no sale was reported on that date are
stated at the last quoted bid price.
Debt obligations exceeding 60 days to maturity are valued by an
independent pricing service. The pricing
2003 SEMIANNUAL REPORT 5 American Select Portfolio
<Page>
NOTES TO FINANCIAL STATEMENTS (Unaudited) continued
service may employ methodologies that utilize actual market
transactions, broker-dealer supplied valuations, or other
formula driven valuation techniques. These techniques generally
consider such factors as yields or prices of bonds of comparable
quality, type of issue, coupon, maturity, ratings, and general
market conditions. Securities for which prices are not available
from an independent pricing service but where an active market
exists are valued using market quotations obtained from one or
more dealers that make markets in the securities or from a
widely-used quotation system. When market quotations are not
readily available, securities are valued at fair value as
determined in good faith by procedures established and approved
by the Fund's board of directors. Debt obligations with 60 days
or less remaining until maturity may be valued at their
amortized cost which approximates market value. Security
valuations are performed once a week and at the end of each
month.
The Fund's investments in whole loans (multifamily and
commercial) and participation mortgages are generally not traded
in any organized market and therefore market quotations are not
readily available. These investments are valued at "fair value"
according to procedures adopted by the Fund's board of
directors. Pursuant to these procedures, whole loan investments
are initially valued at cost and their values are subsequently
monitored and adjusted pursuant to a U.S. Bancorp Asset
Management, Inc. ("USBAM") pricing model designed to
incorporate, among other things, the present value of the
projected stream of cash flows on such investments. The pricing
model takes into account a number of relevant factors including
the projected rate of prepayments, the delinquency profile, the
historical payment record, the expected yield at purchase,
changes in prevailing interest rates, and changes in the real or
2003 SEMIANNUAL REPORT 6 American Select Portfolio
<Page>
perceived liquidity of whole loans or participation mortgages,
as the case may be. The results of the pricing model may be
further subject to price ceilings due to the illiquid nature of
the loans. Changes in prevailing interest rates, real or
perceived liquidity, yield spreads, and creditworthiness are
factored into the pricing model each week.
Certain mortgage loan information is received once a month. This
information includes, but is not limited to, the projected rate
of prepayments, projected rate and severity of defaults, the
delinquency profile and the historical payment record.
Valuations of whole loans and participation mortgages are
determined no less frequently than weekly. Although we believe
the pricing model to be reasonable and appropriate, the actual
values that may be realized upon the sale of whole loans and
participation mortgages can only be determined in a negotiation
between the Fund and third parties.
As of May 31, 2003, the Fund held fair valued securities with a
fair value of $167,465,497 or 115.8% of total net assets.
SECURITY TRANSACTIONS AND INVESTMENT INCOME
Security transactions are accounted for on the date securities
are purchased or sold. Realized gains and losses are calculated
on the identified-cost basis. Dividend income is recorded on the
ex-dividend date. Interest income, including accretion of bond
discounts and amortization of premiums, is recorded on an
accrual basis.
WHOLE LOANS AND PARTICIPATION MORTGAGES
Whole loans and participation mortgages may bear a greater risk
of loss arising from a default on the part of
2003 SEMIANNUAL REPORT 7 American Select Portfolio
<Page>
NOTES TO FINANCIAL STATEMENTS (Unaudited) continued
the borrower of the underlying loans than do traditional
mortgage-backed securities. This is because whole loans and
participation mortgages, unlike most mortgage-backed securities,
generally are not backed by any government guarantee or private
credit enhancement. Such risk may be greater during a period of
declining or stagnant real estate values. In addition, the
individual loans underlying whole loans and participation
mortgages may be larger than the loans underlying
mortgage-backed securities. With respect to participation
mortgages, the Fund generally will not be able to unilaterally
enforce its rights in the event of a default, but rather will be
dependent on the cooperation of the other participation holders.
The Fund does not record past due interest as income until
received. The Fund may incur certain costs and delays in the
event of a foreclosure. Also, there is no assurance that the
subsequent sale of the property will produce an amount equal to
the sum of the unpaid principal balance of the loan as of the
date the borrower went into default, the accrued unpaid interest
and all of the foreclosure expenses. In this case, the Fund may
suffer a loss. At May 31, 2003, no multifamily or commercial
loans were delinquent.
Real estate acquired through foreclosure, if any, is recorded at
estimated fair value. The Fund may receive rental or other
income as a result of holding real estate. In addition, the Fund
may incur expenses associated with maintaining any real estate
owned. As of and for the six months ended May 31, 2003, the Fund
owned no real estate.
REVERSE REPURCHASE AGREEMENTS
Reverse repurchase agreements involve the sale of a
portfolio-eligible security by the Fund, coupled with an
2003 SEMIANNUAL REPORT 8 American Select Portfolio
<Page>
agreement to repurchase the security at a specified date and
price. Reverse repurchase agreements may increase volatility of
the Fund's net asset value and involve the risk that interest
costs on money borrowed may exceed the return on securities
purchased with that borrowed money. Reverse repurchase
agreements are considered to be borrowings by the Fund, and are
subject to the Fund's overall restriction on borrowing under
which it must maintain asset coverage of at least 300%. For the
six months ended May 31, 2003, the weighted average borrowings
outstanding were $50,539,271 and the weighted average interest
rate was 2.66%.
SECURITIES PURCHASED ON A WHEN-ISSUED BASIS
Delivery and payment for securities that have been purchased by
the Fund on a when-issued or forward-commitment basis can take
place a month or more after the transaction date. During this
period, such securities do not earn interest, are subject to
market fluctuation and may increase or decrease in value prior
to their delivery. The Fund segregates, with its custodian,
assets with a market value equal to the amount of its purchase
commitments. The purchase of securities on a when-issued or
forward-commitment basis may increase the volatility of the
Fund's net asset value if the Fund makes such purchases while
remaining substantially fully invested. As of May 31, 2003, the
Fund had no outstanding when-issued or forward commitments.
FEDERAL TAXES
The Fund intends to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and
not be subject to federal income tax. Therefore, no income tax
provision is
2003 SEMIANNUAL REPORT 9 American Select Portfolio
<Page>
NOTES TO FINANCIAL STATEMENTS (Unaudited) continued
required. The Fund also intends to distribute its taxable net
investment income and realized gains, if any, to avoid the
payment of any federal excise taxes.
Net investment income and net realized gains and losses may
differ for financial statement and tax purposes primarily
because of the timing of recognition of income on certain
mortgage-backed securities. The character of distributions made
during the year from net investment income or net realized gains
may differ from its ultimate characterization for federal income
tax purposes.
The tax character of distributions paid during the six months
ended May 31, 2003 (estimated) and the fiscal year ended
November 30, 2002 were as follows:
<Table>
<Caption>
2003 2002
---------- -----------
Distributions paid from ordinary
income................................ $5,864,208 $12,794,634
========== ===========
</Table>
At November 30, 2002, the Fund's most recently completed fiscal
year end, the components of accumulated earnings (deficit) on a
tax basis were as follows:
<Table>
Undistributed ordinary income..................... $ 585,892
Accumulated realized losses on investments........ (13,520,601)
Unrealized appreciation of investments............ 3,399,127
-----------
Accumulated deficit............................... $(9,535,582)
===========
</Table>
The difference between book basis and tax basis unrealized
appreciation and accumulated realized losses at November 30,
2002 is attributable to a one time tax election whereby the Fund
marked appreciated securities to market creating capital gains
that were used to reduce capital loss carryovers and increase
tax cost basis.
2003 SEMIANNUAL REPORT 10 American Select Portfolio
<Page>
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from net investment income are made monthly and
realized capital gains, if any, will be distributed at least
annually. These distributions are recorded as of the close of
business on the ex-dividend date. Such distributions are payable
in cash or, pursuant to the Fund's dividend reinvestment plan,
reinvested in additional shares of the Fund's capital stock.
Under the plan, Fund shares will be purchased in the open market
unless the market price plus commissions exceeds the net asset
value by 5% or more. If, at the close of business on the
dividend payment date, the shares purchased in the open market
are insufficient to satisfy the dividend reinvestment
requirement, the Fund will issue new shares at a discount of up
to 5% from the current market price.
REPURCHASE AGREEMENTS AND OTHER SHORT-TERM SECURITIES
For repurchase agreements entered into with certain
broker-dealers, the Fund, along with other affiliated registered
investment companies, may transfer uninvested cash balances into
a joint trading account, the daily aggregate balance of which is
invested in repurchase agreements secured by U.S. government or
agency obligations. Securities pledged as collateral for all
individual and joint repurchase agreements are held by the
Fund's custodian bank until maturity of the repurchase
agreement. Provisions for all agreements ensure that the daily
market value of the collateral is in excess of the repurchase
amount, including accrued interest, to protect the Fund in the
event of a default. In addition to repurchase agreements, the
Fund may invest in money market funds advised by USBAM.
USE OF ESTIMATES
The preparation of financial statements in conformity with
accounting principles generally accepted in the United States
requires management to make estimates
2003 SEMIANNUAL REPORT 11 American Select Portfolio
<Page>
NOTES TO FINANCIAL STATEMENTS (Unaudited) continued
and assumptions that affect the reported amounts in the
financial statements. Actual results could differ from these
estimates.
(3) EXPENSES
.............................
INVESTMENT MANAGEMENT AND ADMINISTRATIVE FEES
Pursuant to an investment advisory agreement (the "Agreement"),
USBAM, a subsidiary of U.S. Bank National Association ("U.S.
Bank"), manages the Fund's assets and furnishes related office
facilities, equipment, research, and personnel. The Agreement
provides USBAM with a monthly investment management fee in an
amount equal to an annualized rate of 0.50% of the Fund's
average weekly net assets. For its fee, USBAM provides
investment advice and, in general, conducts the management and
investment activities of the Fund.
Pursuant to a co-administration agreement (the
"Co-Administration Agreement"), USBAM serves as co-administrator
for the Fund (U.S. Bancorp Fund Services, LLC, a subsidiary of
U.S. Bancorp is also co-administrator but currently has no
functional responsibilities related to the Fund) and provides
administrative services, including legal and shareholder
services, to the Fund. Under the Co-Administration Agreement,
USBAM receives a monthly fee equal to an annualized rate of
0.25% of the Fund's average weekly net assets. For its fee,
USBAM provides numerous services to the Fund, including but not
limited to, handling the general business affairs, financial and
regulatory reporting, and various record-keeping services.
Separate from the Co-Administration Agreement, USBAM (from its
own resources) has retained SEI Investments, Inc. as a
sub-administrator to perform, among other services, net asset
value calculations.
The Fund may invest in money market funds that are series of
First American Funds, Inc. ("FAF"), subject to certain
limitations. The terms of such investments are
2003 SEMIANNUAL REPORT 12 American Select Portfolio
<Page>
identical to those of investments by non-related entities except
that, to avoid duplicative investment advisory fees, USBAM
reimburses the Fund an amount equal to the investment advisory
fee paid by FAF to USBAM related to such investments. For
financial statement purposes, this reimbursement is recorded as
investment income.
MORTGAGE SERVICING FEES
The Fund enters into mortgage servicing agreements with mortgage
servicers for whole loans and participation mortgages. For a
fee, mortgage servicers maintain loan records, such as insurance
and taxes and the proper allocation of payments between
principal and interest.
PROPOSED REORGANIZATION EXPENSES
As discussed in Note 6, the Fund has taken certain steps to
reorganize along with certain other similar entities managed by
USBAM. As set forth below, certain costs and expenses incurred
in connection with the proposed reorganization of the Fund
(including, but not limited to, the preparation of all necessary
registration statements, proxy materials and other documents,
preparation for and attendance at board and committee,
shareholder, planning, organizational, and other meetings, and
costs and expenses of accountants, attorneys, financial
advisors, and other experts engaged in connection with the
reorganization) shall be borne by the Fund, American Strategic
Income Portfolio Inc., American Strategic Income Portfolio
Inc. II, and American Strategic Income Portfolio Inc. III
(collectively, the "Existing Funds"). The Existing Funds as a
group will bear the first $3,400,000 of such expenses and will,
subject to certain exceptions, equally share all transaction
expenses in excess of $3,400,000 with USBAM. Such costs and
expenses will be allocated among the Existing Funds based on
their relative net
2003 SEMIANNUAL REPORT 13 American Select Portfolio
<Page>
NOTES TO FINANCIAL STATEMENTS (Unaudited) continued
asset values whether or not an Existing Fund participates in the
reorganization. Additionally, costs and expenses incurred in
connection with the legal representation of USBAM's interests
with respect to the reorganization and related matters will be
borne by USBAM. The current estimated costs and expenses related
to the reorganization are $4,500,000. Based on the net asset
values of the Existing Funds as of May 31, 2003, the Fund would
bear approximately 21% of the total expenses of the
reorganization. During the six months ended May 31, 2003, the
Fund incurred $145,493 in reorganization expenses.
OTHER FEES AND EXPENSES
In addition to the investment management, administrative, and
mortgage servicing fees, the Fund is responsible for paying most
other operating expenses, including: outside directors' fees and
expenses, custodian fees, exchange listing and registration
fees, printing and shareholder reports, transfer agent fees and
expenses, financial advisory, legal, auditing and accounting
services, insurance, interest, expenses related to real estate
owned, fees to outside parties retained to assist in conducting
due diligence, taxes, and other miscellaneous expenses.
During the six months ended May 31, 2003, fees for custody
services were paid to U.S. Bank.
(4) INVESTMENT SECURITY
TRANSACTIONS
.............................
Cost of purchases and proceeds from sales of securities and real
estate, other than temporary investments in short-term
securities, for the six months ended May 31, 2003 aggregated
$61,944,899 and $43,966,943, respectively. Included in proceeds
from sales are $736,436 from prepayment penalties.
2003 SEMIANNUAL REPORT 14 American Select Portfolio
<Page>
(5) CAPITAL LOSS CARRYOVER
.............................
For federal income tax purposes, the Fund had capital loss
carryovers at November 30, 2002, which, if not offset by
subsequent capital gains, will expire on the Fund's fiscal
year-ends as indicated below.
<Table>
<Caption>
CAPITAL LOSS
CARRYOVER EXPIRATION
- ------------ ----------
$13,489,685 2003
30,916 2010
- -----------
$13,520,601
===========
</Table>
(6) PROPOSED
REORGANIZATION
.............................
A combined proxy statement/registration statement, last amended
on April 22, 2003, has been filed with the Securities and
Exchange Commission ("SEC") in which it is proposed that the
Fund, along with American Strategic Income Portfolio Inc.
("ASP"), American Strategic Income Portfolio Inc. II ("BSP"),
and American Strategic Income Portfolio Inc. III ("CSP"),
reorganize into First American Strategic Real Estate Portfolio,
Inc., a specialty real estate finance company that would elect
to be taxed as a real estate investment trust ("REIT").
Shareholders of the Fund, ASP, BSP, and CSP who do not wish to
receive shares of the REIT will have the option, subject to
certain limitations, of electing to exchange their shares for
shares in First American Strategic Income Portfolio Inc., a
newly formed closed-end management investment company with
investment policies, restrictions and strategies substantially
similar to those of the Fund, ASP, BSP, and CSP. This
transaction is subject to review by the SEC, approval by the
Fund's shareholders, and certain other conditions. There is no
assurance that the transaction will be completed.
2003 SEMIANNUAL REPORT 15 American Select Portfolio
<Page>
NOTES TO FINANCIAL Statements (Unaudited) continued
(7) FINANCIAL HIGHLIGHTS
.............................
Per-share data for a share of capital stock outstanding
throughout each period and selected information for each period
are as follows:
AMERICAN SELECT PORTFOLIO
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED NOVEMBER 30,
5/31/03 ------------------------------------------------
(UNAUDITED) 2002 2001 2000 1999 1998
----------- -------- -------- -------- -------- --------
PER-SHARE DATA
Net asset value,
beginning of period.... $13.48 $13.38 $12.85 $12.67 $12.96 $12.88
------ ------ ------ ------ ------ ------
Operations:
Net investment
income............... 0.52 1.13 1.13 1.01 1.02 1.06
Net realized and
unrealized gains
(losses) on
investments.......... 0.11 0.17 0.47 0.18 (0.26) 0.12
------ ------ ------ ------ ------ ------
Total from
operations......... 0.63 1.30 1.60 1.19 0.76 1.18
------ ------ ------ ------ ------ ------
Distributions to
shareholders:
From net investment
income............... (0.55) (1.20) (1.07) (1.01) (1.05) (1.10)
------ ------ ------ ------ ------ ------
Net asset value, end of
period................. $13.56 $13.48 $13.38 $12.85 $12.67 $12.96
====== ====== ====== ====== ====== ======
Market value, end of
period................. $13.72 $12.86 $13.54 $11.50 $11.69 $12.13
====== ====== ====== ====== ====== ======
SELECTED INFORMATION
Total return, net asset
value (a).............. 4.76% 10.13% 12.83% 9.87% 6.03% 9.51%
Total return, market
value (b).............. 11.16% 3.91% 28.22% 7.49% 5.21% 13.12%
Net assets at end of
period (in millions)... $ 145 $ 144 $ 143 $ 137 $ 150 $ 155
Ratio of expenses to
average weekly net
assets including
interest expense....... 2.31% (d) 2.82% 3.02% 3.55% 3.28% 3.34%
Ratio of expenses to
average weekly net
assets excluding
interest expense....... 1.26% (d) 1.47% 1.02% 1.14% 1.11% 1.09%
Ratio of net investment
income to average
weekly net assets...... 7.70% (d) 8.41% 8.56% 7.98% 7.88% 8.08%
Portfolio turnover rate
(excluding short-term
securities)............ 23% 31% 28% 44% 24% 41%
Amount of borrowings
outstanding at end of
period (in millions)... $ 46 $ 29 $ 47 $ 46 $ 51 $ 57
Per-share amount of
borrowings outstanding
at end of period....... $ 4.36 $ 2.67 $ 4.44 $ 4.28 $ 4.30 $ 4.77
Per-share amount of net
assets, excluding
borrowings, at end of
period................. $17.92 $16.15 $17.82 $17.13 $16.97 $17.73
Asset coverage ratio
(c).................... 411% 604% 401% 401% 394% 372%
</Table>
(a) Assumes reinvestment of distributions at net asset value.
(b) Assumes reinvestment of distributions at actual prices pursuant to the
Fund's dividend reinvestment plan.
(c) Represents net assets, excluding borrowings, at end of period divided by
borrowings outstanding at end of period.
(d) Annualized.
2003 SEMIANNUAL REPORT 16 American Select Portfolio
<Page>
INVESTMENTS IN SECURITIES (Unaudited)
<Table>
<Caption>
AMERICAN SELECT PORTFOLIO May 31, 2003
Date Par
Description of Security Acquired Value Cost Value (a)
- ------------------------------ -------- --------------- ------------ ------------
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS)
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES (B) (14.4%):
FIXED RATE (14.4%):
FHLMC, 5.50%,
1/1/18.............. $ 7,724,965 $ 7,994,137 $ 7,999,976
FHLMC, 7.50%,
12/1/29............. 2,194,654 2,152,556 2,335,244
FNMA, 5.00%,
11/1/17............. 2,838,470 2,855,506 2,946,091
FNMA, 6.50%, 6/1/29... 6,355,848 6,311,497 6,637,921
FNMA, 7.50%, 5/1/30... 603,354 582,618 642,759
FNMA, 8.00%, 5/1/30... 193,728 191,226 208,862
------------ ------------
Total U.S. Government
Agency
Mortgage-Backed
Securities.......... 20,087,540 20,770,852
------------ ------------
CORPORATE NOTES (E) (3.5%):
FIXED RATE (3.5%):
Stratus Properties,
9.25%, 1/1/06....... 12/28/00 5,000,000 5,000,000 5,050,000
------------ ------------
WHOLE LOANS AND PARTICIPATION MORTGAGES (C,D,E) (112.3%):
COMMERCIAL LOANS (41.3%):
7 Broadway Place,
6.91%, 5/1/06......... 04/30/01 3,384,045(b) 3,384,045 3,485,566
Advanced Circuits and
Hopkins II Business
Center,
7.40%, 12/1/04........ 11/08/01 3,778,975(b) 3,778,975 3,816,765
Best Buy,
8.63%, 1/1/11......... 12/29/00 1,893,907 1,893,907 1,988,602
Canyon Portal,
10.38%, 1/1/07........ 12/27/01 1,989,522 1,989,522 2,049,208
Career Education
Corporation,
7.50%, 6/1/07......... 05/15/02 3,350,091(b) 3,350,091 3,517,595
Community Coffee Office
Building,
6.91%, 5/1/04......... 04/30/01 4,904,413(b) 4,904,412 4,953,457
Galtier Plaza,
9.19%, 3/1/05......... 02/02/00 4,692,265 4,692,265 4,786,110
</Table>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
2003 SEMIANNUAL REPORT 17 American Select Portfolio
<Page>
INVESTMENTS IN SECURITIES (Unaudited) continued
<Table>
<Caption>
AMERICAN SELECT PORTFOLIO
(CONTINUED)
Date Par
Description of Security Acquired Value Cost Value (a)
- ------------------------------ -------- --------------- ------------ ------------
Landmark Bank Center I,
7.90%, 6/1/07......... 05/30/02 $ 4,060,098 $ 4,060,098 $ 4,263,103
Landmark Bank Center II,
14.88%, 5/1/07........ 05/30/02 817,500 817,500 858,375
Northlynn Plaza,
7.65%, 9/1/12......... 08/22/02 3,964,777(b) 3,964,777 4,163,016
Parkway Business Center,
7.65%, 11/1/03........ 10/22/98 3,622,770(b) 3,622,770 3,622,770
Peony Promenade,
6.93%, 6/1/13......... 05/12/03 5,250,000 5,250,000 5,512,500
Point Plaza,
8.43%, 1/1/11......... 12/14/00 6,255,860(b) 6,255,860 6,568,653
Poway Library Plaza,
7.40%, 1/1/10......... 12/19/02 2,986,192 2,986,192 3,135,502
Town Square #6,
7.40%, 9/1/12......... 08/02/02 4,063,837(b) 4,063,837 4,267,028
Victory Packaging,
8.53%, 1/1/12......... 12/20/01 2,572,219(b) 2,572,219 2,700,830
------------ ------------
57,586,470 59,689,079
------------ ------------
MULTIFAMILY LOANS (71.0%):
Casa del Vista
Apartments,
8.40%, 1/1/08......... 12/15/00 2,951,681(b) 2,951,681 3,099,265
Castle Arms Apartments,
8.00%, 4/1/06......... 03/19/99 940,368 940,368 968,579
Centre Court, White
Oaks, and Green Acres
Apartments,
8.65%, 1/1/09......... 12/30/98 3,907,080(b) 3,907,080 4,102,434
Churchill Park
Apartments I,
6.53%, 2/1/06......... 12/23/02 8,650,000(b) 8,650,000 8,909,500
Churchill Park
Apartments II,
9.88%, 2/1/06......... 12/23/02 375,000 375,000 386,250
El Conquistador
Apartments,
7.65%, 4/1/09......... 03/24/99 2,782,465(b) 2,782,465 2,921,588
</Table>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
2003 SEMIANNUAL REPORT 18 American Select Portfolio
<Page>
<Table>
<Caption>
AMERICAN SELECT PORTFOLIO
(CONTINUED)
Date Par
Description of Security Acquired Value Cost Value (a)
- ------------------------------ -------- --------------- ------------ ------------
Evergreen, Northview,
Greenwood, and Fern
Court Apartments,
9.40%, 6/1/05......... 05/22/00 $ 4,528,756 $ 4,528,756 $ 4,755,194
Greenwood Residences,
7.63%, 4/1/08......... 03/12/98 2,273,853(b) 2,273,853 2,387,546
Hidden Colony
Apartments,
7.90%, 6/1/08......... 03/22/94 2,985,305(b) 2,964,335 3,134,571
Hunter's Meadow,
7.80%, 8/1/12......... 07/02/02 6,439,981 6,439,981 6,761,980
La Casa Apartments,
6.80%, 1/1/06......... 12/30/02 5,082,713 5,082,713 5,235,195
Lakeville Apartments,
7.90%, 5/1/08......... 04/24/98 2,352,986(b) 2,352,986 2,470,635
Lambert Gardens
Apartments,
6.90%, 2/1/08......... 01/17/03 4,531,765(b) 4,531,765 4,758,353
Park Vista Apartments,
8.58%, 9/1/05......... 08/30/00 2,200,000(b) 2,200,000 2,198,014
Parkside Apartments,
5.43%, 5/1/08......... 04/14/03 6,575,000 6,575,000 6,903,750
Revere Apartments,
7.28%, 5/1/09......... 04/22/99 1,245,213 1,245,213 1,307,474
Sheridan Ponds
Apartments,
8.63%, 1/1/07......... 01/17/02 6,998,888(b) 6,963,894 7,278,844
Signature Park
Apartments,
9.90%, 12/1/07........ 11/14/02 4,725,000 4,725,000 4,725,000
Sterling Court
Apartments I,
6.90%, 2/1/06......... 01/14/03 3,700,000(b) 3,700,000 3,848,000
Sterling Court
Apartments II,
12.38%, 2/1/06........ 01/14/03 460,000 460,000 478,400
Summit Chase Apartments
I,
4.23%, 5/1/06......... 04/15/03 8,200,000 8,200,000 8,431,650
Summit Chase Apartments
II,
9.88%, 5/1/06......... 04/15/03 1,647,000 1,647,000 1,554,648
The Oaks of Lake Bluff
Apartments,
8.40%, 2/1/06......... 01/24/01 3,845,588(b) 3,845,588 3,960,955
</Table>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
2003 SEMIANNUAL REPORT 19 American Select Portfolio
<Page>
INVESTMENTS IN SECURITIES (Unaudited) continued
<Table>
<Caption>
AMERICAN SELECT PORTFOLIO
(CONTINUED)
Date Par Value/
Description of Security Acquired Shares Cost Value (a)
- ------------------------------ -------- --------------- ------------ ------------
The Willows Retirement
Apartments at
Bellingham,
9.38%, 3/1/05......... 02/14/02 $ 1,492,042 $ 1,492,042 $ 1,496,646
Woodstock Apartments I,
7.43%, 1/1/05......... 12/06/01 8,300,000(b) 8,300,000 8,466,000
Woodstock Apartments II,
13.38%, 1/1/05........ 12/06/01 1,000,000 1,000,000 994,444
Woodvine Park
Condominiums,
8.48%, 4/1/10......... 03/31/00 1,134,765 1,134,765 1,191,503
------------ ------------
99,269,485 102,726,418
------------ ------------
Total Whole Loans and
Participation
Mortgages........... 156,855,955 162,415,497
------------ ------------
PREFERRED STOCKS (0.3%):
REAL ESTATE INVESTMENT TRUSTS (0.3%):
AMB Property............ 5,000 125,399 126,550
Archstone Community
Trust, Series D....... 3,525 91,862 95,845
CarrAmerica Realty
Trust, Series B....... 665 15,807 16,825
CarrAmerica Realty
Trust, Series C....... 5,000 117,737 125,950
CarrAmerica Realty
Trust, Series D....... 5,000 118,823 126,000
Duke Realty Investments,
Series E.............. 625 15,506 16,219
------------ ------------
Total Preferred
Stocks.............. 485,134 507,388
------------ ------------
</Table>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
2003 SEMIANNUAL REPORT 20 American Select Portfolio
<Page>
<Table>
<Caption>
AMERICAN SELECT PORTFOLIO
(CONTINUED)
Description of Security Shares Cost Value (a)
- ----------------------------------- --------------- ------------ ------------
RELATED PARTY MONEY MARKET FUND (F) (1.1%):
First American Prime
Obligations Fund........... 1,522,278 $1,522,278... $ 1,522,278
------------ ------------
Total Investments in
Securities (g)............. $183,950,907 $190,266,015
------------ ------------
------------ ------------
</Table>
NOTES TO INVESTMENTS IN SECURITIES:
(a) Securities are valued in accordance with procedures described in note 2 in
Notes to Financial Statements.
(b) On May 31, 2003, securities valued at $107,728,689 were pledged as
collateral for the following outstanding reverse repurchase agreements:
<Table>
<Caption>
NAME OF
BROKER
ACQUISITION ACCRUED AND DESCRIPTION
AMOUNT DATE RATE DUE INTEREST OF COLLATERAL
- --------------------- ----------- -------- --------- -------- ---------------
$17,544,847 5/15/2003 1.33%* 6/10/2003 $11,019 (1)
28,924,890 5/15/2003 2.19%** 6/16/2003 29,947 (2)
----------- -------
$46,469,737 $40,966
=========== =======
</Table>
* RATE IS A NEGOTIATED FIXED RATE.
** INTEREST RATE AS OF MAY 31, 2003. RATE IS BASED ON THE LONDON INTERBANK
OFFERED RATE (LIBOR) AND RESET MONTHLY.
NAME OF BROKER AND DESCRIPTION OF COLLATERAL:
(1) MORGAN STANLEY;
FHLMC, 5.50%, 1/1/18, $367,233 PAR
FHLMC, 7.50%, 12/1/29, $2,194,654 PAR
FNMA, 5.00%, 11/1/17, $2,838,470 PAR
FNMA, 6.50%, 6/1/29, $6,355,848 PAR
FNMA, 7.50%, 5/1/30, $603,354 PAR
FNMA, 8.00%, 5/1/30, $193,728 PAR
(2) MORGAN STANLEY;
7 BROADWAY PLACE, 6.91%, 5/1/06, $3,384,045 PAR
ADVANCED CIRCUITS AND HOPKINS II BUSINESS CENTER, 7.40%, 12/1/04,
$3,778,975 PAR
CAREER EDUCATION CORPORATION, 7.50%, 6/1/07, $3,350,091 PAR
CASA DEL VISTA APARTMENTS, 8.40%, 1/1/08, $2,951,681 PAR
CENTRE COURT, WHITE OAKS, AND GREEN ACRES APARTMENTS, 8.65%, 1/1/09,
$3,907,080 PAR
CHURCHILL PARK APARTMENTS I, 6.53%, 2/1/06, $8,650,000 PAR
COMMUNITY COFFEE OFFICE BUILDING, 6.91%, 5/1/04, $4,904,413 PAR
2003 SEMIANNUAL REPORT 21 American Select Portfolio
<Page>
INVESTMENTS IN SECURITIES (Unaudited) continued
EL CONQUISTADOR APARTMENTS, 7.65%, 4/1/09, $2,782,465 PAR
GREENWOOD RESIDENCES, 7.63%, 4/1/08, $2,273,853 PAR
HIDDEN COLONY APARTMENTS, 7.90%, 6/1/08, $2,985,305 PAR
LAKEVILLE APARTMENTS, 7.90%, 5/1/08, $2,352,986 PAR
LAMBERT GARDENS APARTMENTS, 6.90%, 2/1/08, $4,531,765 PAR
NORTHLYNN PLAZA, 7.65%, 9/1/12, $3,964,777 PAR
PARK VISTA APARTMENTS, 8.58%, 9/1/05, $2,200,000 PAR
PARKWAY BUSINESS CENTER, 7.65%, 11/1/03, $3,622,770 PAR
POINT PLAZA, 8.43%, 1/1/11, $6,255,860 PAR
SHERIDAN PONDS APARTMENTS, 8.63%, 1/1/07, $6,998,888 PAR
STERLING COURT APARTMENTS I, 6.90%, 2/1/06, $3,700,000 PAR
THE OAKS OF LAKE BLUFF APARTMENTS, 8.40%, 2/1/06, $3,845,588 PAR
TOWN SQUARE #6, 7.40%, 9/1/12, $4,063,837 PAR
VICTORY PACKAGING FACILITY, 8.53%, 1/1/12, $2,572,219 PAR
WOODSTOCK APARTMENTS I, 7.43%, 1/1/05, $8,300,000 PAR
THE FUND HAS ENTERED INTO A LENDING COMMITMENT WITH MORGAN STANLEY. THE
AGREEMENT PERMITS THE FUND TO ENTER INTO REVERSE REPURCHASE AGREEMENTS UP TO
$60,000,000 USING WHOLE LOANS AS COLLATERAL. THE FUND PAYS A FEE OF 0.15% TO
MORGAN STANLEY ON ANY UNUSED PORTION OF THE $60,000,000 LENDING COMMITMENT.
(c) Interest rates on commercial and multifamily loans are the rates in effect
on May 31, 2003.
(d) Commercial and multifamily loans are described by the name of the mortgaged
property. The geographical location of the mortgaged properties is
presented below.
COMMERCIAL LOANS:
7 BROADWAY PLACE - ALBUQUERQUE, NM
ADVANCED CIRCUITS AND HOPKINS II BUSINESS CENTER - HOPKINS, MN
BEST BUY - FULLERTON, CA
CANYON PORTAL - SEDONA, CA
CAREER EDUCATION CORPORATION - ORLANDO, FL
COMMUNITY COFFEE OFFICE BUILDING - BATON ROUGE, LA
GALTIER PLAZA - ST. PAUL, MN
LANDMARK BANK CENTER I - EULESS, TX
LANDMARK BANK CENTER II - EULESS, TX
NORTHLYNN PLAZA - LYNNWOOD, WA
PARKWAY BUSINESS CENTER - POWAY, CA
PEONY PROMENADE - PLYMOUTH, MN
POINT PLAZA - TUMWATER, WA
POWAY LIBRARY PLAZA - POWAY, CA
TOWN SQUARE #6 - OLYMPIA, WA
VICTORY PACKAGING FACILITY - PHOENIX, AZ
MULTIFAMILY LOANS:
CASA DEL VISTA APARTMENTS - CARSON CITY, NV
CASTLE ARMS APARTMENTS - AUSTIN, TX
CENTRE COURT, WHITE OAKS, AND GREEN ACRES APARTMENTS - NORTH CANTON AND
MASSILLON, OH
CHURCHILL PARK APARTMENTS I - SAN ANTONIO, TX
CHURCHILL PARK APARTMENTS II - SAN ANTONIO, TX
EL CONQUISTADOR APARTMENTS - TUCSON, AZ
2003 SEMIANNUAL REPORT 22 American Select Portfolio
<Page>
EVERGREEN, NORTHVIEW, GREENWOOD, AND FERN COURT APARTMENTS - BUFFALO, MN
GREENWOOD RESIDENCES - MITON, WA
HIDDEN COLONY APARTMENTS - DORAVILLE, GA
HUNTER'S MEADOW - COLORADO SPRINGS, CO
LA CASA APARTMENTS - SPOKANE, WA
LAKEVILLE APARTMENTS - LAKEVILLE, MN
LAMBERT GARDENS APARTMENTS - PORTLAND, OR
PARK VISTA APARTMENTS - REDMOND, WA
PARKSIDE APARTMENTS - MORENO VALLEY, CA
REVERE APARTMENTS - REVERE, MA
SHERIDAN PONDS APARTMENTS - TULSA, OK
SIGNATURE PARK APARTMENTS - BRYAN, TX
STERLING COURT APARTMENTS I - KANSAS CITY, MO
STERLING COURT APARTMENTS II - KANSAS CITY, MO
SUMMIT CHASE APARTMENTS I - CORAL SPRINGS, FL
SUMMIT CHASE APARTMENTS II - CORAL SPRINGS, FL
THE OAKS OF LAKE BLUFF APARTMENTS - LAKE BLUFF, IL
THE WILLOWS RETIREMENT AT BELLINGHAM - BELLINGHAM, WA
WOODSTOCK APARTMENTS I - DALLAS, TX
WOODSTOCK APARTMENTS II - DALLAS, TX
WOODVINE PARK CONDOMINIUMS - HOUSTON, TX
(e) Securities purchased as part of a private placement which have not been
registered with the Securities and Exchange Commission under the Securities
Act of 1933 and are considered to be illiquid. On May 31, 2003, the total
value of fair valued securities was $167,465,497 or 115.8% of total net
assets.
(f) This money market fund is advised by U.S. Bancorp Asset Management which
also serves as advisor for this Fund. See note 3 in Notes to Financial
Statements.
(g) On May 31, 2003, the cost of investments in securities was $183,950,907.
The aggregate gross unrealized appreciation and depreciation of investments
in securities, based on this cost were as follows:
<Table>
<Caption>
GROSS UNREALIZED APPRECIATION..................... $ 6,415,002
GROSS UNREALIZED DEPRECIATION..................... (99,894)
------------
NET UNREALIZED APPRECIATION..................... $ 6,315,108
============
</Table>
FHLMC-FEDERAL HOME LOAN MORTGAGE CORPORATION
FNMA-FEDERAL NATIONAL MORTGAGE ASSOCIATION
2003 SEMIANNUAL REPORT 23 American Select Portfolio
<Page>
SHAREHOLDER UPDATE (Unaudited)
ANNUAL MEETING RESULTS
An annual meeting of the Fund's shareholders was held on October
1, 2002. Each matter voted upon at that meeting, as well as the
number of votes cast for, against or withheld, the number of
abstentions, and the number of broker non-votes with respect to
such matters, are set forth below.
(1) The Fund's shareholders elected the following eight
directors:
<Table>
<Caption>
SHARES SHARES WITHHOLDING
VOTED "FOR" AUTHORITY TO VOTE
------------- ------------------
Roger A. Gibson......................... 9,729,987 249,267
Andrew M. Hunter III*................... 9,852,469 126,785
Leonard W. Kedrowski.................... 9,845,115 134,139
John M. Murphy, Jr.**................... 9,729,882 249,372
Richard K. Riederer..................... 9,853,108 126,146
Joseph D. Strauss....................... 9,844,034 135,220
Virginia L. Stringer.................... 9,843,658 135,596
James M. Wade........................... 9,851,039 128,215
</Table>
* ANDREW M. HUNTER III TENDERED HIS RESIGNATION FROM THE BOARD OF
DIRECTORS, EFFECTIVE DECEMBER 2002.
** JOHN M. MURPHY, JR. TENDERED HIS RESIGNATION FROM THE BOARD OF
DIRECTORS, EFFECTIVE MAY 2003.
(2) The Fund's shareholders ratified the selection by the Fund's
board of directors of Ernst & Young LLP as the independent
public accountants for the Fund for the most recently
completed fiscal year ended November 30, 2002. The following
votes were cast regarding this matter:
<Table>
<Caption>
SHARES SHARES BROKER
VOTED "FOR" VOTED "AGAINST" ABSTENTIONS NON-VOTES
- ------------- ----------------- ----------- ---------
9,765,437 124,770 89,046 --
</Table>
HOW TO OBTAIN A COPY OF THE PROXY VOTING POLICY
A description of the policies and procedures that the Fund uses
to determine how to vote proxies relating to portfolio
securities is available (1) without charge upon request by
calling 800.677.FUND; (2) at www.firstamericanfunds.com; and (3)
on the U.S. Securities and Exchange Commission's website at
http://www.sec.gov.
2003 SEMIANNUAL REPORT 24 American Select Portfolio
<Page>
BOARD OF DIRECTORS
ROGER GIBSON
Director of American Select Portfolio Inc.
Vice President, Cargo-United Airlines
LEONARD KEDROWSKI
Director of American Select Portfolio Inc.
Owner and President of Executive and Management Consulting, Inc.
RICHARD RIEDERER
Director of American Select Portfolio Inc.
Retired; former President and Chief Executive Officer of Weirton Steel
JOSEPH STRAUSS
Director of American Select Portfolio Inc.
Former Chairperson of First American Investment Funds, Inc.
Owner and President of Strauss Management Company
VIRGINIA STRINGER
Chairperson of American Select Portfolio Inc.
Owner and President of Strategic Management Resources, Inc.
JAMES WADE
Director of American Select Portfolio Inc.
Owner and President of Jim Wade Homes
<Page>
AMERICAN SELECT PORTFOLIO INC.
2003 SEMIANNUAL REPORT
U.S. Bancorp Asset Management, Inc., a subsidiary of U.S. Bank National
Association, is a separate entity and wholly owned subsidiary of U.S. Bancorp.
[RECYCLED SYMBOL] This document is printed on paper containing 10% postconsumer
waste.
7/2003 0100-03 SLA-SAR
<Page>
ITEM 2 - Code of Ethics
RESPONSE: Not applicable to semi-annual report
ITEM 3 - Audit Committee Financial Expert
RESPONSE: Not applicable to semi-annual report
ITEM 4 - Principal Accountant Fees and Services
RESPONSE: Not applicable to semi-annual report
ITEM 5 - Audit Committee of Listed Registrant
RESPONSE: Not applicable to semi-annual report
ITEM 6 - Reserved
ITEM 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies
RESPONSE: Not applicable to semi-annual report
ITEM 8 - Reserved
ITEM 9 Controls and Procedures
RESPONSE:
(a) The registrant's Principal Executive Officer and Principal Financial
Officer have evaluated the registrant's disclosure controls and procedures
within 90 days of the date of this filing and have concluded that the
registrant's disclosure controls and procedures were effective, as of that
date, in ensuring that information required to be disclosed by the
registrant in this Form N-CSR was recorded, processed, summarized and
reported timely. Notwithstanding this conclusion, the registrant's
Principal Executive Officer and Principal Financial Officer seek continuous
improvements to its disclosure controls and procedures.
(b) There were no significant changes in 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
10(a) - Code of Ethics
RESPONSE: Not applicable to semi-annual report.
10(b) - Attach certifications (4 in total pursuant to Sections 302 and 906
for PEO/PFO).
RESPONSE: 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.
American Select Portfolio Inc.
By /s/ Thomas S. Schreier, Jr.
---------------------------
Thomas S. Schreier, Jr.
President
Date: August 5, 2003
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By /s/ Thomas S. Schreier, Jr.
---------------------------
Thomas S. Schreier, Jr.
President
Date: August 5, 2003
By /s/ Robert H. Nelson
--------------------
Robert H. Nelson
Treasurer
Date: August 5, 2003